CPW REPORT NO. 12-A--COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000200100005-3
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: November 11, 2016
• Document Release Date: November 18, 1998
• Sequence Number: 5
• Publication Date: March 9, 1952
• Content Type: REPORT

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FOR OFFICIAL USE ONLY
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DATE PUBLISHED:
SOURCE:
CPW Report No. 12aA -- COMMUNIST CHINA
(Mar, 3-9, 1952)
CONTENTS
THIS IS UNEVALUATED INFORMATION
ANTIWASTE0 ANTICORRUPTION, ANTIBUREAUCRACY 1
RESISTANCE TO DRIVE 4
CASES OF CORRUPTION ....................,* ***** *.... 7
ECONOMIC. WEAKNESSES -0400004,00.40040,000000044040.4004**** 10
LAND REFORM *****
***** 040000400.0.0.0 12
KOREAN WAR PROBLEMS ? ? ?... ? ? ? ? ? 12
WOMEN TS ACTIVITIES ?sa ? a *a 4444**** ***** anha ? 0 4400?00 14
TESCELIANEOUS 404,0-009 ****** 4,000.6*******0.00.00.000,000-0. 14
ANTIWASTE, ANTICORRUPTION, ANTIBUREAUCRACY
Promotion of Drive. Old propaganda methods still were being used, and some new ones
were adopted in pushing the anticorruption drive. Dairen asserted (Mar. 8) that
workers in the Hoping office of the Luta Transport Company had greatly reduced their
accident rate to promote the drive. Mukden said (Mar. 6) that the Kirin Railm
Bureau had promoted a number of cadres so they could take the lead against corruption,
with the resulting exposure of several corrupt elements in the Bureau. Yanachow
announced (Mar, 5) that the North Kiangsu Austerity Committee had issued a notice
to all cadres saying that those who made good records in the drive would be given
recognition at the end of the campaign. Nantung reported (Mar. 6) that in the
Nantung branch, China Food Workers Union, 64 workers were taking an indoctrination
course to promote the drive, and had been organized into 14 teams for active
participation. Sian said (Mar. 7) that the Party Committee of the Northwest Railway
Bureau, and the Ninghsia Province Party Committee, had called general cadre meetings
to push the anticorruption drive during the last part of March.
Wuhan stated (alr. 3) that an inspection team in the Wuhan Austerity Committee had
issued a six-point directive on arranging challenges among groups in order to
promote the drive, at the same time stressing "the need to eliminate rightist
thoughts and work closely with the masses." Propaganda teams to arouse the masses
had been set up by 100 workers in Wuhan steel mills, and with "the elimination of
rightist thinking" among cadres in State-operated companies, the drive was making
headway. Wuhan announced (Mar. 4) that Inspection Committee Chairman Wang Jen-chuna
was preparing a report for Chairman lialADI which would show that the Committee had
processed 25,000 minor, 18,000 medium, and 1,500 major corruption reports, with
punishments ranging from mere warnings to arrest and confiscation of property.
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Wuhan asserted (Mar. 7) that workers in one steel mill had promised to promote the
drive by saving 100 billion yuan worth of materials in 1952 "by using advanced
Soviet methods." Kunming announced (Man. 3) that the Kunming rally held Mar. 2
would be rebroadcast Mar. 4. Kunming said (Mar. 3) that the Southwest China Youth
Corps Committee had issued special commendations to members Wu Lien-sung and Liu
Chien-hsing for their "outstanding service" in connection with the anticorruption
drive. The same radio reported (Mar. 7) that Yang Kuang-ta, Liu Chi, and Fan
Chin-pao, Kunming export-import workers, had been commended by the Austerity
Committee.
Confessions and Accusations. Dairen announced ()War. 3) that the deadline or
confessions would end Mar. 4 and would not be extended. Inspection committees and
teams would immediately start rounding up persons who had failed to confess,
including corrupt elements in the Hsinhai Metal Works, Changchi Metal Works, and
Kuanghsia Company, where corruption had "run into hundreds of billions." Dairen
stated (War. 5) that at a recent rally by the Department of Post and Telegraph,
Chang Shen-chi and Chu Ying-pei were arrested because they refused to confess,
while cadres Wang Yung-ching and Wang Chung-chien finally made complete confessions
and were pardoned. Tsinan announced (Maw. 3) that 26,944 reports of corruption had
been obtained, reaching into many other, cities. The greatest number of accusations
were within the export-import, lumber, and construction trades, with hardware,
textile, and food industries following.
Bangchow announced (Mar. 8) that at a Mar. 5 rally in the Chekiang Department of
Industry, Sun Yang-seng confessed to corruption and accused cadre Hsu Chu-ling of
corruption amounting to 200 million yuan. Chang Chi-hua confessed to selling one
billion yuan worth of Government property. Yang Ban-chang of the handicrafts
section was arrested for refusing to confess, and Wang Chin of the Chekiang
Construction Company was held because of his incomplete confession. Hangchow added
Mar. 4) that at a Chekiang Department of Supplies rally Tai Pao-shan was pardoned
because he made'a full confession; Wu Yung-chi was pardoned because he confessed
and urged others to confess; while Chang Heng-sung was arrested because he refused
to confess to embezzlement of 500,000 tan of salt. Hangchow reported (Mar. 6) that
with the end of the 10-day extension of the confession deadline Mar. 3 the city
Austerity Committee had called a rally to hear confessions by 262 merchants. Those
who confessed were immediately pardoned, while the former chief of the Hangchaw
branch, People's Bank, was arrested for refusal to confess. The Mayor announced a
new 3-day extension of the confession deadline.
Wuhsi reported that Communist Party and Youth Corps cadres held a rally Mar. 3 at
which Party Secretary Shen I-kuei confessed to bribes and embezzlement totaling 12
million yuan; Kling Shou-ping of the Farmers Association confessed to taking 16
million; and both were pardoned. Chou Cheng of the PEOPLRIS PRESS was accused of
an incomplete confession and destroying of the evidence, and vas expelled from the
Youth Corps. Hankow said (IW:cr. 6) that Cheng Hung-chou, Wuhan contractor, confessed
Feb. 25 to taking 300 million yuan, and was arrested. "He realized the error of not
confessing," so on Feb. 28 made a full confession and was pardoned. He had bribed
cadres and cheated on materials in constructing city buildings. Kunming reported
(Mar. 3) that at a rally in Chu No. 50 Kunming, people made 3,200 accusations against
corrupt merchants who illegally transferred 19 airplanes, 20 airplane motors, 7,000
catties of electric wire, 20,000 ounces of gold, 800 ounces of opium, and other
items, the total amounting to 5 billion yuan. Kunming announced (Mar. 6) that the
Austerity Committee had received 10,750 accusation letters, and had adjudicated
1,251 cases.
Workers Versus.. Dairen announced (Mar. 4) that the Hsikuan Chn. Youth Corps
Committee of Dairen had awarded honors to Shop clerks Pien Chi-hslang, Yu Tso-chang?
Lu Heng-chul Jen Ssu-jen, Wang Chin-hang, and eight others for "their individual
efforts in exposing corrupt merchants." Shanghai reported (Mar. 3) that a rally of
shop clerks was held, at which the Mayor explained the program for handling cases
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of corrupt merchants, including severe punishment for those who refused to confess,
and urged the clerks to redouble their efforts. Hanachow asserted (Mar. 5) that
"after attending indoctrination meetinas" senior clerks were making face-to-face
aceasations of corrupt merchants. Fang Yeh-an, senior clerk in the Huasa Cloth Shop,
and Wang Chen-ming, accountant in the Taihsing Cloth Shop, both accused their employers,
"even though they were related to them."
Yangchow stated (Mar. 2) that 1,200 workers attended a local rallaMar. 60 at which
2,265 reports of corruption were received and a resolution was adopted to send a
message to Chairman Mao, Wuhsi reported (Mar, 3) that at a Wuhsien rally Ho Chi-chuan,
a bookkeepar? made accusations against his uncle, while other senior clerks made
accusations. "Many clerks who worried about their jobs or who had close ties with
their employers, have corrected the errors of their thinking." Wuhsi said (mar. 4)
that shop clerks in Changchou were holding propaganda meetings "to indoctrinate
the people," with the result that many corrupt merchants had confessed. Wuhsi stated
(Mar. 9) that in Nantung 100 tiger-hunting teams had been organized by shop clerks,
and by Mar. 3, 50800 cases of corruption among merchants had been exposed.
Wuhan reported (Mar. q) that Yen Hua, chairman of the Nanchang Federation of Labor,
called a meeting of 17 shop clerks who had "earned merit" in making accusations,
praised them for their work, and told them "not to worry about losing their jobs."
Canton stated Mar, 3) that 10,000 Canton shop clerks staged a rally Mar. 2 at which
Liu Chang-ching was accused of bribery and refusal to confess; Yu Chai was accused
of evading taxes and defrauding the Government; and seven other merchants were
accused, They were all ordered held for investigation. Sian asserted Mar. 9)
that shop clerks in Paochi, Tienshui, and Chiuchuan, as well as other Northwest
cities, were "strengthening their drive" against corrupt merchants.
Tiger-Hunting Operations. Dairen announced (Mar. 6) that six tigers had been exposed
in the Dairen branch, China Food Company, "after a 3-day struggle," All were warned
to confess if they hoped for leniency. Kao Feng-chi and Chang Kuo-ching at first
refused, then made full confessions and were released. Chinch ow asserted (Mar. 5)
that on Feb. 150 15 tigers had been captured in the Chinch ow Oil Works, and accused
of corruption amounting to 1.2 billion yuan. With this success, "the workers are
now increasing production." Tsinan reported (Mar. 5) that the Tsingtao mayor issued
a directive at the start of the second stage of the tiger hunt, in which he urged
cadres to "sever all ties with corrupt capitalists and eliminate all rightist
thinking," In an effort at reform within its own ranks, the Tsinan Public Safety
Bureau "called upon the masses to report all cases of corrupt police." Three police
officers had been arrested following receipt of 2,000 letters. Huainan said (Mar. 9)
that in the Chiulungkana Power Station, Huainan Railway Bureau, cadres had captured
several tigers "after indoctrination and correction of rightist leanings."
Yangchow reported (Mar. 4) that cadres in the North Kiangsu branch, China General
Merchandise Company, had "signed pacts to gain merit by capturing tigers." Yanachow
added (mar. 6) that in a number of State organizations, including the North Kianasu
Department Store, the Native Products Company, the Postal Administration, and the
People's Bank, meetings had been held "to discuss coordination of business operations
with tiger hunting," Wuhsi declared (Mar. 4) that "even though tigers hide in high
mountains and deep forests," cadres in southern Kiangsu had organized special teams
to find them,
Nantung announced (Mar. 6) that the city Austerity Committee had called a meeting
to discuss the "third campaign against tigers." Government representatives had
formed a tiger-hunting headquarters, with several teams organized. Wuhan reported
(mar. 3) that 4,000 workers in 78 local State enterprises had captured 170 tigers.
Sian announced that in Chiuchuan, Kansu, tiger-hunting teams had been organized,
and Wang Yu-cheng was arrested when he refused to confess.
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Nanchang reported (Mar. 3) that cadres in Kiangsi had organized hunting teams, and
were mapping plans for attack after "wiping out aid rightist thought." They were
reminded that small tigers will be pardoned after confession, but big tigers "who
refuse to confess must be exposed and arrested." Nanchang stated (Mar. 4) that in
Changtzu village of Nanchang, 52 tigers already had been captured by the workers,
and at a rally Mar. 2 Hu Yu-ming and nine other tiger hunters were "cited for their
excellent work." In Shangjao 32 tigers had been caught by Feb. 27, and lead were
being followed up on 62 more; Yu Hai-tang accused his father, Yu Tzu-yang, of
evading taxes; Hsu Feng-chi accused his father, Hsu Yung-hua, of defrauding the
Government; Hsu Chung-chien urged her husband, Kao Chung-ling; to confess and expose
others, "in spite of his mutual alliances" with corrupt elements; and Yen Chu-ming
accused her husband of eorruption. Nanchang said (Mar. 7) that the Kanchou Postal
Telegraph Broadcasting Station held an anticorruption rally, with the city's entire
20,000 persons hearing the program over seven loudspeakers. Mayor Chu claimed that
the corrupt merchants had cost the city 20 billion yuan, and announced that 600
persons had been organized into tiger-hunting teams to find the corrupt elements.
Lgnient Treatment. Tsinan announced (Mar. 6) that the city Austerity Committee had
made public a'definite schedule for treatment of the 3,633 corrupt business firms
among the 4,252 investigated. If the corruption amounted to 500,000 yuan or less,
there was to be no punishment. If the amount was not more than one million, punish-
ment would be "in accordance with the gravity of the crime and the attitude on
confession." On tax evasions no punitive action would be taken On eVasions prior to
1951, and none for evasions in 1951 and 1952 on amounts under 500,000 yuan. If the
evasions totaled between 500,000 and one million, half the amount must be repaid.
The Austerity Committee received many thanks "for its lenient attitude toward law-
breaking merchants." Hangchow announced (Mar. 5) that the local Austerity Committee
had made clear a policy of leniency toward corrupt merchants who had confessed, "so
they can get back to production." The Committee also cited the Chinchi and Sanhsing
towel factories for their freedob from corruption. Hangbhaw stated (Mar. 9) that
the Austerity Committee extended its commendation to 1,000 firms which had no corrup-
tion or only minor cases. Ma Ta-hsiang was well treated because he sincerely confessed
to tax evasion, and the owner of the Jentai Shop was pardoned because he made 15
accusations against corrupt elements in his awn trade.
Huainan reported (Mar. 7) that at a rally Mar. 3 Chang Ming-shan, Huainan Mine
Hospital employee who had sold hospital drugs and supplies, was pardoned because
he made a full confession. However, Tang Cheng-chi was held for investigation because
he did not make a full confession "and did not expose others." Sian said (Mar. 3)
that the Sian Austerity Committee exposed 38 cases of corruption in 11 firms, and
then revealed terms for lenient treatment following full confession which induced
many merchants to confess.
For their convenience the Committee set up a special office in the Chu No. 5
precinct police station. Wang Yu-chien confessed to evasion of 80 million yuan in
taxes and the making of hundreds of millions of yuan in excess profits. Kunming
reported (Mar. 5) that the local Austerity Committee had taken Special steps to
adjudicate cases of corruption among merchants. The buainessmen had been divided
into three groups, with punishment for each class outlined, and lenient treatment
promised following complete confessions.
RESISTANCE TO DRIVE .
Cai-t,2_.1Atinfil.tra-Lian.. There still were frequent charges that Private business?
men had infiltrated into State organizations, planting cadres or dorrUpting those
already there, to defraud the Government And to destroy the effectiveness of the
anticorruption campaign. Chinchow asserted (Mar. 8) that organized rings of corrupt
merchants in the State-controlled cloth industry alone of that area had robbed the
Government of 11.23 billion yuan in processing contracts. Tsinan asserted (Mai'. 8)
that agents of the capitalists had infiltrated into all State organs, and that in
the Shantung Construction Company it was discovered that 30 percent of the cadres
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wrre .former merchants who had maintained their former connections to defraud the
Government and disrupt the anticorruption drive.
Hangchow reported (Mar. 8) that six corruption rings had been exposed in the Chekiang
Lumber Company, and eight auto parts dealers were found employed in the repair shops
of the Chekiang Transport Company. Hofei stated (Mar. 3) that Pei Shiao-shan had
infiltrated into the Tungling branch, China Food Company, to undermine the drive, and
that similar instances had been revealed in numerous State enterprises of several
cities.
Wuhsi claimed (Mar. 3) that confessions by cadres in the Chenchiang Tax Bureau,
Kiangsu, had exposed a ring of merchants organized to bribe cadres. Wuhsi reported
(Mar. 5) that Tsao Hua-ting, woman proprietor of the Huating Bookshop, South. Street,
Changchou, had connections with buyers in 18 of the 22 Government offices, and had
regularly paid them a 20 percent kickback, in addition to wining and dining them
and borrowing Government funds from them for speculation. She formed mutual alliances
with corrupt cadres, and refused to confess even when exposed by them. Kunming
complained (Mar. 5) that local businessmen had made a "powerful attack" against
State enterprises, in spite of the "great upsurge" of private business following the
Liberation. Under the Kuomintang many small Kunming firms were forced to close, but
had recovered under the new regime. and had increased from 7,972 to 12,516 during
1951 alone, Yet losses to the State Import-Export Company and Cotton and Textile
Company in 1951, caused by infiltration of corrupt businesemen, was 20 billion yuan.
One cadre in the Cotton and Textile Company, Ling Kan-ching, confessed to taking
160 million yuan in bribes, with a resulting loss to the Government of 17.8 billion.
Kunming asserted (Mar. 7) that in Chaotung Hsien, Yunnan, capitalist elements had
penetrated into all parts of the Department of Trade and Transportation. "These
merchants turned cadres" had defrauded the Government and made huge profits through
speculating with Government funds, as well as obstructing the anticorluption drive.
A leader of the ring, cadre Yang Yu-hua, who cost the Government 150 million yuan in
losses, had been arrested.
Peking broadcast in numeral code (Mar, 7) a report from Chungking quoting Mayor Tsao
Ti-chiu in telling of the capitalists! "organized attacks on the working class, the
Communist Party, and State organizations." Mayor Tsao claimed there were 1120 kinds
of illegal organizations" aimed at undermining State enterprises in Chungking, and
described in some detail the "Monday gathering," in the library and educational
supplies industry; the "Tuesday gathering," aimed at the Salt Bureau; the "Thursday
gathering" and the "Friday dinner gathering," organized for infiltration into the
iron and steel industry; the "New Friday dinner gathering," attacking the Southwest
Bureau of Railways; the "vessel manufacturing team," aimed at the Bureau of
Navigation; the "accounting symposium," organized to evade taxes; and the "Sunday
dinner meeting," which planned infiltration into the liquid fuel industry.
Obstructionist Tactics. Tsinan reported (Mar. 4) that a mutual alliance finally had
been broken in the Tsingtao branch, Peoples Bank, with confessions by some of the
corrupt ring who had connived with merchants to use the bank funds for speculation.
Bank officers Wang Pi=wen? Yu Kuo-hua, and Chang Fu-jen were involved. Shanghai
announced War. 3) that the Nanking Austerity Committee had ordered the arrest of
merchants Yang'Ping-sham and Li Tsu-hsianE for obstructing the anticorruption drive
by beating up their clerks who exposed them, Hangchow announced (Mar. 3) the
arrest of Yang Hao-seng, owner of the Hungta Cloth Shop, and Nieh Yung-tai, owner
of the Tahua Cloth Shop, both of Wenchow, Nieh fired his clerks or stopped their
food when they accused him. Nantung reported (Mare 6) that with the confession of
several workers, Yeh Hung-chao had been charged with forming mutual alliances.
Wuhan stated Warp 3) that merchant Li Yen-ping had been arrested for defrauding
the Government and exploiting his workers until they became sick, Wuhan announced
(Mar. 4) regulations prohibiting merchants from oppressing their workers or closing
their shops during the anticorruption drive. Wuhan said (Mar. 5) that 21 corrupt
capitalists in Ocheng Hsien, Hopei, had been arrested for charging high prices and
opposing establishment of a branch of the China Department Store, Canton announced
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(Mar. 5) that Canton workers had organized an inspection committee to report on
merchants who oppressed clerks in an effort to obstruct the drive. In Chanchiang,
Kwangtung? merchant Yang Jih-chin had been arrested on charges of corruption and
beating up his clerks to obstruct the anticorruption drive. Canton reported (Mar. 6)
that Chang Chieng had been sentenced to 2 years in prison for exporting gold, beat-
ing up his clerks, and refusing to confess. Merchants Liu Hua-ching, Liu Ping-chi,
and Yeh Han-yuen had been charged with corruption and obstructing the drive.
Sian announced (Mar. 5) that the mayor of Sian had exposed merchants Jen Pao-chu and
Tai Wei-hsin for stopping food supplies to their workers during the anticorruption
campaign. Clerks Union Secretary Ma Jen-shan charged that there were 210 such cases
in the city. Kunming announced (Mar. 3) that Yeh Chien-chung, head of the Kunming
Interurban Trade Committee, had been arrested by the Militia Feb. 26 when he attempted
to flee. He was charged with helping counterrevolutionaries, taking bribes, and
obstructing the anticorruption drive. Kunming stated (Mar. 4) that Han Chia-ping,
Labor Bureau deputy secretary, had declared that the anticorruption drive offered
corrupt merchants a chance to reform, and if they did not do so they would have to
be arrested, He cited the following cases of obstruction of the drive and violation
of regulations in regard to the drive: 56 woodenware merchants illegally closed
their shops; 6 refused to pay wages; 2 refused to furnish food to workers; and 40
did not maintain full staffs or full work schedules. Yu Chi-ta, chairman of the
Woodenware Trade Association, was arrested for firing his workers and refusing to
pay them, and merchants who closed their shops were given 2 days to resume full
operations, Kunming said (Mar. 5) that the rnnagers of the Tungfu Department Store
had been accused of threatening their clerks and of refusing to confess ?to corruption
of cadres,
Negative_Lesistance. Considerable evidence of less positive resistance to the anti-
corruption drive was apparent, especially among cadres and shop clerks. J)" ren
charged (Mar. 5) that in the Dairen Ice Company the drive made no progress because the
leading cadres formed mutual alliances, suppressed accusations, and said LJ corruption
existed, Tang Ting-ling and Li Mao-kuei of the Austerity Committee were arrested
and held for trial. Tsinan reported (Mar. 9) that the Tsingtao Federation of Labor
called a rally Mar. 5 to "urge backward workers" to accuse merchants. The Shantung
Austerity Committee called a meeting of technical workers Mare 7 and charged them
with "bourgeois leanings" as portrayed in their "lack of interest in politics, aloof-
ness from the masses, overweening pride of their knowledge, intense selfishness,
and lack of consideration for the public good," and pointed out that the present
drive offered them an excellent chance to reform their thoughts.
Hangchow said (Mar. 3) that shop clerks in Shangcheng Chu had made more than 5,600
reports of corruption, but "because of the laxity of the cadres" they had now slowed
down, "and frankly state that they are tired and are looking forward to the end of
the drive," Hangchow reported (Mar. 4) that Jen Tai-shanE, head of the Hangchow
branch, China Edible Oil Company, had been arrested, and his cadres charged with
"strong rightist tendencies and bureaucratic refusal to acknowledge the presence of
corruption," Leading cadres were said even to have pointed to corrupt elements and
described them as "able and worthy of emulation." The CHECHIANG JIH PAO and the
TANGTAI JIH PAO called a symposium Mar. 2 of active senior clerks and urged them
"fearlessly to attack capitalists in order to gain merit in the eyes of the people."
Hangchow announced (Mar. 7) that the local Party Committee had called a meeting of
cadres Mar. 6 and "accused them of having rightist thoughts."
Yangchow reported (,1ar. 3) that Nantung shop clerks, after reporting 5,200 cases
of corruption, were holding rallies to "urge senior clerks to join them" in exposing
corrupt merchants. Yangchow said (Mar. 5) that the North. Kiangsu Austerity Committee
had ordered cadres in the Yencheng Special District to "correct their rightist think-
ing and promote" the drive, pointing out that two-thirds of the cadres had not
joined the tiger hunt, and that the drive had made no progress. Yangchow stated
(Mar. 7) that in the North Kiangsu Public Security Bureau, the chief of the Bureau,
Teng Yu-hop had taken personal charge to "arouse the cadres to overcome their
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complacencysF Nantung reported (Mar. 9) that in Nantung senior clerks were urged to
"overcome their hesitancy," and accuse corrupt merchants, even though the merchants
were their relatives or business associates. With "elimination of their rightist
thinking," many senior clerks had become active. Wang Yu-ching and Wang Fa-ching
exposed their employers, who had obstructed the drive.
Wuhan said (Mar. 4) that the Hankow Federation of Labor had called a rally and urged
cadres to "change their thinking and fearlessly attack capitalists." Kunming
asserted (iar. 9) that senior clerks in the city now were making accusations against
merchants, following indoctrination they received at a rally Mar. 8, when the;: were
urged to "support the drive by overcoming their hesitancy."
Hangchow announced (Mar. 5) that local merchants were "lax and even recalcitrant" in
paying their 1951 income taxes, though the Tax Bureau had issued notices for panment
in December.
CASES OF CORRUPTION
Bi.,g Tigers, Dairen reported (Mar. 7) that Kao Fang-chiu, Liu Ho-chang, and Chung
Hsi-yuen of the Dairen Tax Bureau had been exposed for corruption. Kao caused the
Government to lose 450 million yuan; Liu connived with merchants to speculate with
Government funds; and Chung speculated and caused the Government to lose 400 million
yuan. Shanghai announced (Mar, 5) that Yu Hsiu-chuan and Wu Kuo-heng, salt merchants
of Foochow, had been held for trial on charges of illegally dealing in salt and of
evading taxes amounting to 3.7 billion yuan. Hangchow stated (Mar. 4) that Keng
Te-sheng, Party member and deputy director of the personnel section, Chekiang
Department of Industries, had been removed for corruption when a merchant confessed
to making an illegal profit of 1.5 billion yuan through his assistance. Holdi
announced (Mar, 3) that the Government had ordered the arrest of Wang Cheng-chi and
Chang Yung-ching, leather merchants who became owners of a huge factory through 2
years of supplying the People's Liberation Army with substandard belts, bags, and
shoes, and who utilized their Army contacts to ship goods all over China for illegal
gains. They were charged with defrauding the Government of 4 billion yuan on Army
contracts, and of evading 1.5 billion yuan worth of taxes. Hofei added OMar, 6) that
Yen Ching-kuo, South Anhwei State Farm cadre, had been arrested for selling 100
million yuan worth of Government property.
Wuhsi announced (Mar. 4) that in Chenchiang City, Kiangsu, Chang Hsueh-kuen, a
contractor who built his 7-million-yuan business into a 5-billion concern by cseat-
ing the Government, had been arrested, His Chunghua Company robbed the Government
of 200 million yuan in building a grain warehouse. Also arrested after refusal to
confess were contractors Wu Shan-liang and Chai Ping-chi. The same radio said
Mar.'n) that merchant Hsu Chien-yung had been arrested for using State economic
information to speculate and rob the Government of hundres of millions of yuan.
Wuhsi added (Mar. 6) that lumber merchant Yu Meng-yu of Changchou had been accused
of makirg 2 billion yuan on lumber contracts while ships were being built for the
Chushan Island campaign in November 1049. Wuhsi reported (Mar, 7) that Changchou
merchants Hsi Chung-ching and Chou Yu-seng had defrauded the Government of 100
million yuan in gunny sack contracts by selling inferior sacks, bribing cadres,
and evading taxes. Wuhsi stated (Mar. 8) that another Changchou merchant,
Yu Mao-yu, had made illegal profits of 170 million yuan by selling rotten lumber
to the South Kiangsu Conservancy Bureau for construction of sea walls at Nanwei and
Paoshan. In Wasi, Lung Pan-huang, manager, Liu Cheng-chun, secretary, and Cheng
Hsiao-chuan, accountant, of the Wuhsi branch of the People's Bank, were arrested
for dealing in black market gold, using inside information in speculating, and
holding up agricultural loans, thus robbing the Government of 800 million yuan.
Wuhsi reported (Mar. 9) that Chang Feng-hsiang and Chen Kuo-seng, owners of the
Kaiyuen Machine Shop, Wuhsi, defrauded the Government on. a contract for 24 12-ton
truck frames, causing a loss of 200 million yuan.
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Foochow announced (Mar. 9) that in Amoy the proprietors of the Livan, Linanan,
Kiangyung, and five other firms, had been arrested on charges of defrauding the
Government of 1.4 billion yuan on food fiaacessing contracts. Nanchang reported
(Mar* 3) that in the Yuanchou Special District, Kiangsi, the Austerity Committee had
ordered the arrest of leading cadres in the Cooperative and Grain offices, including
Ghia? Chung-te, Chi Jih-ju, Tung Yen, Wang Yuan-chiu, Wang Chung-hsiao, and Chang
Shu-kuang, an charges of embezzling 8 billion yuan. Nanchang said (Mar. 5) that
merchants Chang Hsueh-ming and Yu Wen-yuan, Nanchang, had been accused of evading
100 million yuan each in taxes. Nanchang stated (Mar. 8) that Chen Chien-fu,
accountant in the Nanhsin Silk Shop, Kanchou, Kiangsi, had connived with corrupt
merchants to evade 300 million yuan in taxes.
Wuhan reported (Mar. 5) that contractors Chen Yu-shou, Lu Hai-seng, Ho Liang-mo,
and Chao Shou-feng used low-grade materials in building dams and retaining walls on
the Huai River Conservancy Project in 1950, with the result that the constructions
already had deteriorated badly. Loss to the Government was estimated at 580 million
Yuan* Kimining announced (r1ar. 4) that Su Chin, Kuchiu Farmerp Association secretary,
Yunnan, had been arrested as leader of a corruption ring which embezzled one billion
yuan from the organization. Chang Ssu-wen? Loping Hsien Cooperative official, was
arrested for conniving with corrupt merchants to defraud the Government of 250
million yuan, In 1951 he bought salt at Government prices and later sold it at
high prices,
Buaillessma. Dairen announced (Mar. 3) that Wang Ke-heng, who stole drugs after
the Liberation and organized the Fuhsing Drug Company, had been arrested for selling
fake drugs. Altogether 168 complaints had been filed against him, and he was said
to have caused 12 deaths. Dairen said (Mar. 6) that Liu Hai-chen and Chen Hai-fena,
managers of the Chienhua Iron Works, had been charged with corrupting cadres and
defrauding the Government on contracts, Tsinan reported (Mar. 3) the arrest in
Weifang lasien? Shantung, of Lu Ying-ling, merchant, and Qommnnist cadre Wang Ling-shan,
his accomplice, for corrupting cadres, stealing Government property, and oppressing
workers. As Government buying agent, Lu so exploited the tobacco farmers that he
"caused dissatisfaction against the Government among the farmers." He also .Lit daily
wages from 6,000 to 1,000 yuan last year, forcing workers to commit suicide, Tsinan
said Mar, 6) that coal merchant Liu 1-ming had been arrested for cheating on coal
weights and mixing rocks with the coal.
According to Shanghai (Mar. 3) Wang Tsu-chien and Wang Tzu-nan, Foochow drus, merchants,
were arrested for selling fake drugs to treat diptheria. Shanghai said (Mar. 5)
that Hofei merchant Wang Hung-seng had been arrested for taking Government property
during the fighting in Hofei, and exploiting the refugees by selling them bad seed.
Hangchow reported (Mar. 4) that cement merchant Chang Mo-i, Yinhsien, had been
arrested for defrauding the Government on 400 bags of cement in national defense
conatruction along the coast. He paid 37,000 yuan a bag and charged 2709000.
Hangchow asserted (Mar. 7) that Chekiang businessmen continued to adulterate their
goods, despite pure food laws. The Sanhsing Flour Nails put two pounds of talc in
each tan of rice it processed for the Grain Bureau; the Yuhua Shop used lime and
other improper ingredients in making Weiseng soy sauce; the Yushan Salt Shop,
Shangkuan Chu, sold salt sweepings as first-grade salt, and used lime with the salt
to "improve the color"; and the Hangchow Joint Wood Sales Office adulterated wood,
and took 10 catties out of each bundle by hollowing the logs.
Yangehow announced Mar, 9) that hantung merchants had confessed to 11 billion yuan
of tax evasions ?in the past 3 years. Nanchang reported (Mar. 3) that merchant
Wu Chung-kan denied six times that he was guilty of any further corruption. With
each denial he was returned to jail until he was ready to confess more, and finally
raised the total of his corruption from the original 600,000 yuan to 13 million.
Nanchang stated (Mar. 5) that merchant Chou Fu-seng of Ningtu, Kiangsi, had been
charged with evading taxes and corrupting cadres; Lo Shou-chin and Hsu Feng-li also
were arrested for evading taxes, Sian reported that four local owners of printing
plants, including Liu Hai-chin, were arrested for defrauding the Government on print-
ing contracts, after their refusal to confess and exposure by cadres they had bribed.
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Wuhan asserted (Mar. 3) that after the arrest of hardware merchant Liu I-po, the
workers' committee which took over his business was able to reduce prices from 10 to
40 percent, Canton reported (Mar. 6) that the Canton branch of the National Medical
Association, the Medical Workers Union, and the Canton Drug Dealers Association,
had charged the Teta Drug Company with selling false drugs, Chungking announced
(Mar. 3) that 1000000 cases of corruption had been reported in the city by Feb. 19,
and that Chungking merchants evaded 150 billion yuan worth of taxes from Januar, to
October 1951. Ku Yu-chai, Ipin Hsien? Szechwan, grain merchant, was arrested for
stealing grain in connection with Government processing contracts. Chungking said
(Mar. 6) that the Chungking Austerity Committee had processed 164,211 accusations
against local businessmen, and found corruption involving 690 billion yuan. Major
cases numbered 534) with one firm in Chu No. 5 taking 16 billion yuan. The salt
trade was especially corrupt, as it was controlled by four dealers, who bribed
cadres and manipulated prices.
Government Officials. Hangchow reported War. 3) that in Hangchow City office
tigers captured included four agents of capitalists in the Cooperative office and a
corruption ring in the Civil Affairs Bureau that had embezzled more than 5 billion
yuan of public contributions. The radio added (Mar. 6) that the Austerity Committee
had called a rally to adjudicate corruption cases, while the Party Committee had
announced expulsion from the Party of Tsao Hsin-yung, Police Department; Chien
Ssu-fang, Land Department; Chang Kuo-yung, Hangchow Hospital chief, Chang Chang-hua,
city Department Store chief; and Yu Wen-shan, medical officer of the Police Hospital,
Hangchow said War. 5) that Chang Tzu-chien, deputy director, Taichou Special
District, had been removed for corruption and failure to promote the anticorruption
drive, He introduced 25 corrupt elements into his office, and used public funds
to build his own house. Hangchow stated (Mar. 7) that Deputy Mayor Chen Hui of
Huchow, Kiangsu, concurrently vice chairmen of the Provincial People's Consultative
Council, had been expelled from the Party and held for trial on charges of taking
the side of the capitalists in a strike at the Yenhua Factory; of squandering 7
million yuan in Shanghai with Cheng Wen-shu0 owner of Yenhua; of bringing people of
doubtful background into the Government; and of thrice seducing a woman colleague
before sending her away.
According to Hofei War, 4) Youth Corps cadre Liu Chi-mei, southern Anhwei branch,
China Food CoMpany, was arrested for embezzling food and accepting bribes. Huainan
reported War. 7) that, following "additional indoctrination for rightist cadres,"
their accusations had resulted in the removal of Huainan Collieries cadres Wang
Tung-yuen, Cheng Tao-jen, Yang Pao-hua, and Wang Kuo-jen, Chao Wen-ping, corrupt
cadre, was arrested when he refused to confess, even when faced with facts collected
by tiger-hunting teams. Nanchang stated (Mar. 3) that cadres in the Tunghsiang,
Kiangsi, granary had been charged with wasting Governreat nssets by leaving 3,000
catties of grain to rot in the warehouse and later dumping 't in a swamp. Nanchang
said War. 4) that in city offices 12 tigers had been caught in the Department of
Trade; 18 in the Highway Administration; and 5 in the People's Court. Nanchang
reported (Mar , 5) that Kuo Chin-yu, Changshu, had connived with salt merchants to
rob the Government of tax money, and had illegally dealt in salt. Cadre Wang Chin-sham
connived with him to forge salt bills to embezzle Government property. Li Ke-cheng,
truck driver with the Shangjao branch, State Trucking Company, sold Government
property worth 32 million yuan. When he made a complete confession he was pardoned
and allowed to remain at his job.
Wuhsi announced that Yang Chu-ming and Chang Yung, cadres in the Chenehiang,
Kiangsu, Water and Power Bureau, had been expelled from the Party and arrested.
Yang took public funds to lend at a high rate of interest, and connived with merchants
to defraud the Government; Chang made 76 million yuan by conniving with merchants to
evade 280 million in taxes. Wuhsi added (Mar. 6) that cadre Wang Hung-te had been
charged with cheating on labor and materials in constructing college buildings at
Chenchaing Medical College. Be gave Chao Chen, college administrator cadre, 20
million yuan to assist hin and form a mutual alliance. Cadre Yeh Shan of the
Changchou Lumber Company was arrested for conniving with corrupt lumber merchant
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Yen Hai-po to defraud the Government by dealing in rotten lumber and using secret
economic information for speculation, Wuhsi said (Mar. 7) that cadres Li Ling-san,
TungWen-i? and Tsao Chin-ju had been arrested in Wuhsien for corruption in connec-
tion with Government contracts, Wuhsi stated (Mar. 8) that a corrupt ring including
cadres Pao Ying, Chu Wei-ko? Hsu Yung-chi, and Hsieh Shou-yuen had been broken up.
The ring gave false drugs to sick people, cut their food allowances) stole medical
supplies, and embezzled Resist-America, Aid-Korea donations.
Kunming announced (Mar. 3) that cadres i4 the inspection office of the Kunming Tax
Bureau had caused the Government huge losses for 2 years through assisting corrupt
merchants, often relatives, in evading taxes. Regular meetings for that purpose
were held, Peking reported in numeral code (Mar. 7) that the Government
Administrative Council had announced the removal from office "for breaking the law
and being derelict in duty" of the following: Pu Sheng-kuang? Central and South
China Publicity Director and member of the Central and South China Military and
Administrative Committee; Chien I-min, Deputy Publicity Director and member of the
Central and South China Legal Committee; Wang Sheng-jung, Deputy Director of the
Central and South China Industrial Department and Director of the Nonferrous Metals
Bureau; and Chou Chi-fang, Deputy Director of the Central and South China Civ'l
Affairs Department.
ECONOMIC WEAKNESSES
Losses from Anticorruption Drive. Chinch= reported (Mar. 3) that "because of its
failure to coordinate the antiwaste, anticorruption, antibureaucracy drive and the
production drive," the No. 5 Cement Factory of Liaosi Province failed to fulfill its
quotas and had 19.accidents. After 13 cadres took over the leadership and "increased
the consciousness of the workers on the importance of National production," the
factory had begun to fulfill its quotas. Tainan announced (Mar. 6) tat the Shantung
Federation of Cooperatives called a meeting Mar. 1 of all cadres
"to allocate cadres from the antiwaste, anticorruption, antibureaucracy. aril/0 .c
the production drive." An inspection team of 40 cadres was chosen to check on
production and to "adjudicate all disputes on the spot."
Shanghai stated (Mar. 3) that the Trade Department of the East China Military and
Administrative Committee had issued a directive calling upon all companies and offices
to organize special committees to "promote business operations" along with the anti-
corruption drive. Various State companies were ordered to "designate active cadres
to order, process, and push the sale of goods at reasonable prices." Shanghai said
(Mar. 6) that the Yangchow branch, China Food Company, was improving its operations
by "carrying on regular business activities during the forenoon and conducting
tiger hunts in the afternoon,"
Hangchow reported Mar. 5) that the Chekiang Finance Department called a meeting
to discuss normal operations and the anticorruption drive, It was decided that one-
third of all cadres should confine their attention to normal operations, "and
positions vacated by corrupt cadres must be filled at once." Cadres also were
ordered to assume normal lines of command which were disrupted during the anticorrup-
tion drive. Yangchow admitted (Mar. 5) that "as a result of the cadres focusing
their attention" upon the drive, the Huachiao Store of the China Food Company in
Yangchow was closed for a week, causing rice prices to rise 10 percent. Because
of the drive the Yangchow Flour Mills of the China Food Company produced only 6
percent of its capacity, causing a loss of 50 million yuan. Cadres were ordered
not to let the anticorruption drive interfere with normal business operations.
Yangchow announced Mar. 9) that 30 percent of the cadres in the northern Kiangsu
cooperatives had been allocated to "operating teams, to push normal business"
while the tiger hunts were in progress,
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Wuhan announced (Mar. 3) that the Central and South China Department of Industry had
Issued a directive on "strengthening operation of State-owned companies by assigning
special personnel," to prevent breakdowns. The Honan branch of the China General
Merchandise Company reported that, "as a result of the antiwaste, anticorruption,
antibureaucracy drive" it had suffered "huge operational losses." Therefore, it
would be necessary "for all clerks to get back to business." Wuhan said (Mar. 4)
that the Hupeh. Department of Finance and Economics had called a meeting of cadres
Mar. 2 to promote trade throughout its organizations, "as the antiwaste, anticorrup-
tion? antibureaucracy drive had disrupted activities."
Claims of Success, Some broadcasts apparently attempted to deny that the anti-
corruption drive had disrupted normal operations, and made claims of higher prodiption
during the campaign. Mukden asserted (Mar. 3) that "in order to promote" the
anticorruption drive, the Fushun Machine Repair Factory, the Peipiao Mining Bureau,
and the Mukden Chemical Factory "overfulfilled their February norms and cut down the
number of factory accidents. Mukden added (Mar. 6) that railway workers in Chichibar,
Kirin, and Mukden stations overfulfilled their loading quotas "to promote the anti-
waste, anticorruption, antibureaucracy drive." Chinchow declared that factories
in Liaosi Province improved their production and overfulfilled their quotas "to
promote" the drive.
Tsinan asserted (Mar. 4) that workers in State and private enterprises in Tsingtao
"have decided to promote" the drive by increasing productiqn and reducing waste.
Tsinan said (Mar. 8) that workers in the Pohai Alcohol Works, Shantune, had "greatly
increased their production in order to promote" the anticorruption drive. According:
to Shanghai (Mar. 4) textile mills in Shanghai and flour malls in Chenchiang were
increasing production to promote the drive. Shanghai declared (Mar. 6) that the
Shanghai Railway Administration was promoting the drive by aincreasing the productivity
of its regular operations," Hangchow stated (Mar. 5) that the Hangchow Railway
Administration had reported a great increase in traffic and a "decrease in the
number of cars" as a result of the "successes of the antiwaste, anticorruption,
antibureaucracy drive," with workers making 210 proposals to eliminate bureaucracy
and prevent waste, Haagchow added (Mar. 9) that workers in the Hsiaoshan Helen
Equipment F etory, Chekiang, had greatly increased their production,
Wuhsi announced (Mar. 3) that workers in the Wuhsi flour mills had set up a program
to increase production "while the tiger hunt still is in progress." Nanchang
declared (tlar. 3) that peasants in Chian Helen, Kiangsi, had delivered 10,000 catties
of grain without loss "to promote the antiwaste, anticorruption, antibureaucracy
drive and expose the wastefulness of corrupt merchants." According to Wuhan (Mar. 9)
shop clerks in Wuhan had organized a propaganda corps to promote tiger hunting,
while workers in the Kiangan Railway Shops were promoting the drive "by increasing
production. Peking asserted in numeral code (Mar. 5) that in the State-owned
Kagan Tobacco Factory the workers had set new production records, and "in their
leisure hours" participated in tiger hunting. Workers Chang Wen-fa and Man Yung-
hung uncovered the hidden spoils of "big grafter" Hu Chun, former head of the
materials section of a privately-owned tailor shop. Kunming said (Mar. 6) that
workers in the Kunming electrical trades were promoting the drive "ba increasing
production while they are hunting tigers."
Agricultural Problems, Fear of drought and a food shortage in the North and North-
east still was reflected in a large number of broadcasts. Reports of the setting
up of drought-prevention offices were carried in broadcasts from most stations in
those areas, Hangchow reported (Mar. 5) that the Chechiang Federation of Cooperatives,
Chekiang Province, had withdrawn 60 cadres from the anticorruption drive to
implement the fertilizer supply program for spring farming. Shanghai announced
(Mar. 9) that the East China Military and Administrative Committee had issued a
directive suspending the anticorruption drive at the hsien level "in order that
cadres can devote their attention to promoting the spring farmina.production
program."
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Chinchow reported (Mar. 3) that the Liaosi Party Committee issued a directive on
the importance of cadre leadership in spring farm production "as a vital part of
the antiwaste, anticorruption, antibureaucracy drive." Hofei,reported (Mar. 3)
that an inspection by rural cadres in Hsuancheng Hsien, Anhwei, showed that irriga-
tion systems there were in a bad state of repair, and "farmers were not going ahead
with the spring planting." Local cadres were charged with bureaucracy, and Liu
Shu-fang and other cadres removed,
Hangchow admitted (Mar, 3) that "because of the complacency of rural cadres," the
pest-control program in the Ningpo Special District, Chekiang, had "made little
headway," In Tzuchi Hsien insects took 85 percent of the harvests, while losses in
the entire district amounted to 8 percent of the early crop; 20 percent of the second;
and 18.4 percent of the late crop. To correct this condition, cadres had been sent
to the rural areas to lead the farmers in pest control, Hangchow announced (liar. 4)
that farmers were taking out insurance on their oxen to protect themselves, as 10
died in a single day, Feb. 23, in the Ningpo Special District, and 10 in Fenghua
Hsien. Hangchow reported (Lar. 9) that cadres engaged in afforestation work in the
Yinhsien area, Chekiang, were instructed to correct abuses, as lumber dealers in
Yinhsien had been conniving with peasants to cut pine trees.
Chungking said (Mar . 5) that rural cadres in Kaiyang and Suiyang Hsien, Szechwan,
had been ordered to "desist from forced organization" of production mutual-aid teams,
as this was "contrary to political principles and destructive of production
enthusiasm.". Cadres in this area had taken it upon themselves to organize farmers
associations into 58 teams "against the will of the peasants."
LAND REFORM
Nanchang announced (Mar, 4) that land reform cadres in Kueichi Hsien, Kiangsi, called
a meeting of village cooperative members to "expose the corruption of reactionary
landlords," Farmer Wang Hung-yen accused landlord Li Shou-cheng of "oppressing him
during a drought." Nanchang added (Mar. 7) that peasants in Shengli,Hsiang, Chian
Hsien, were afraid to report to the land reform cadres that they had hidden goods
for the landlords, "but after reindoctrination" 17 peasants stood up in a public
meeting to expose the corruption of the landlords who had been threatening them,
reporting the location of 45 boxes of goods, 2 ounces of gold, and much furniture.
Land reform was completed in Paishui Hsiang, Taiho Hsien, in 19500 "but cadres and
peasants had been so lax that the landlords had regained their former power," and
the peasants now were demanding stronger measures of control. Cadre Tai Ching-chou
was poisoned by landlords because of his attacks on them.
Chungking reported (Mar . 3) that land reform had begun in 38 hsiang in Arming Hsien,
Yunnan, while landlords had been arrested and their property confiscated in. Kunyang
Hsien, However, in the more backward areas of Yunnan, "landlords still are obstructing
the program," Kunming asserted (Mar. 2) that in the Chaotung Special District,
Yunnan, land reform met with strong opposition from the landlords at first, but
"with the increase in political consciousness of the peasants after indoctrination
by the cadres," the farmers overcame the landlords and were successfully carrying
out the reforms. Kunming added (Mer. 4) that in Hohsi Hsien land reform cadres had
been charged with laxity, but after an indoctrination meeting the cadres "were able
to overcome their rightist thinking," and organized the masses to liquidate land-
lords and counterrevolutionaries.
KOREAN WAR PROBLEM,
Corrupt Contractors. The attack on contractors who delivered faulty goods and
equipment to the Chinese Volunteers continued, the broadcasts coming from all
sections of China a Dairen announced (Mar, 7) that wounded veterans in a local
hospital had issued a statement attacking corrupt merchants who cheated on contracts.
Chinchow reported (Mar. 4) that Wang Tzu-chung, Chinchow garage owner, defrauded
the Government of 200 million yuan in repairingtrucks for the Korean front; stole
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parts from the trucks and replaced them with worn parts; and connived with Han Chi-wen,
chairman of the Truckers Association, who embezzled Resist-America, Aid-Korea
donations. Chinch added (Mar. 5) that the Tehsin Metal Works used old materials
in making car parts for the Chinese Volunteers; the Talu Metal Works used defective
materials in work on the Chinch ow Railway; and the Chunghsin Metal Works used
defective materials in constructing the Talingho Bridge, which collapsed with the
first flood. The Hsinhua Bakery, Chiehfang Street, Chu No. 5, increased the weight
of biscuits made for the Chinese Volunteers by packing them wet. When they were
returned the bakery merely scraped off the mould and repacked them in new boxes.
Shanghai announced (Mar. 3) that Wu Ting-chang and Tung Han-chang, Wuhsi drug
merchants, were arrested for defrauding the Government of 200 million yuan and for
selling false drugs to the Chinese Volunteers. Shanghai added (Mar. 6) that
organizations in Wuhu were demanding punishment for Chin Hui-chuan, who furnished
the Meiling Canning Company of Shanghai with rotten beef for use in filling Army
food contracts. Nantung announced (Mar. 9) that Jen Tao-kang and Chu Yu-shan, local
merchants, heel been arrested for defrauding the Government in processing 400 quilts
for the Army Hospital,
Nanchang asserted (Mar. 6) that people of all circles were demanding punishment for
corrupt contractors who supplied the Chinese Volunteers with faulty goods, including
Chang Hsing-keng of Shanghai, who sent rotten beef to feed the soldiers. Wuhan
announced (Mar. 3) that workers in the Chunghua Textile Company had sent a letter
to wounded veterans attacking merchants who cheated on contracts, and promising to
increase production at home to back up the Korean front. Wuhan added (Mar. 4)
that "by popular demand" 17 corrupt merchants in Canton had been arrested, including
Shen I-chaos who "exported goods to the American imperialists for use in Korea";
Tung Cheng-chi, who sold fake drugs; Chin Chun-hua, who defrauded the Canton Railway
Bureau; and Chao Yu-tuan, who defrauded the Government on contracts.
Canton reported (Mar. 5) that workers in the local Textile Mill No. 2 had issued a
statement attacking the Huanan Drug Company for selling false drugs to the Chinese
Volunteers, and promised to increase production at home. Sian stated (Mar. 3) that
dependents of service men in Sining issued a protest against corrupt merchants who
sent rotten beef to the Chinese Volunteers. Chungking announced (Mar. 3) that
Ku Yu-chai, Ipin grain merchant, Szechwan, had been arrested for stealing gran which
he was processing, and for adulterating grain destined for the Chinese Volunteers.
Preferential Treatnient. Dairen announced (Mar. 4) that more than 120 service men's
dependents had been given jobs, Yangchow reported War. 3) that peasants in naian
Hsien, Kiangsul were carrying out the preferential treatment program by aiding
families of service men with spring farm work. Yangchow said (Mar. 4) that students
in Tai Hsien, Kiangsup had been carrying out the preferential treatment work with
great success,.. Yangchow added (Mar. 8) that in Kaoyu Hsien the preferential treat-
ment program was being carried out, with concentration on assistance in spring
farming. Nantung reported War. 5) that rural cadres in Tai Hsien, Kiangsu held a
meeting to review the preferential treatment program for 1951 and make plans for
1952, In 1951 20,000 mou of land was plowed for dependents of servicemen, and it
was decided that great emp4asis would be placed on this phase.of the program in
the spring of 1952.
BacterioloRicalWaxtare. Regional broadcasting stations in Communist China still
devoted nearly 10 percent of their broadcast items to charges that the U.N, fighters
had used bacteriologic 1 warfare in Korea. These broadcasts consisted, for the
most part, of statements that certain groups had issued protests against the use
of bacteriological warfare, and demands that steps be taken to meet the challenge.
Sian announced War, 4) that the Sian Medical Workers Association had issued a call
for medical personnel to volunteer their services to fight bacteriological warfare
at't,le Korean front. Tatylan'tnnounced Mar. 6), quoting the SHANSI JIH PAO, that
the first antibacteriological warfare medical unit had left for service at the
Korean front.
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WM:NIS ACTIVITIES
Womenls meetings were held throughout China Mar. C in celebration of the Communist
International Women'sDay, while radio stations all gave time to the occasion, Prior
to Mar. 8 frequent mention was made of the coming celebration. In broadcasts prior
to the meetings, as well as in broadcasts M?Pr. 8, the tendency was to tie in women's
activities with current Communist problens, especially the anticorruption drive.
Chinchow reported (Mar. 9) that 1,400 persons attended the public trial of Liu
Yu-cheng Mar. 7, when he was sentenced to 5 years in prison after eight women accused
him "of violating woments rights." Dairen said (Mar. 6) that a meeting of business
menta wives was held, when they urged to expose their corrupt husbands and
prevail upon them to confess. Dairen added (Mar. 8) that after hearing speeches by
returned veterans of the Korean war, local women increased their activity in the
anticorruption drive. Yu Wei-fang, model woman worker, accused two corrupt merchants;
Li Wei-chu exposed her husband: who embezzled 30 million yuan while working in the
Railway Bureau; and Yeh Yung-fang, bookstore clerk, exposed her employer. Tsinan
announced (Mar. 9) that women in Tsingtao had made 120 accusations against corrupt
merchants.
Hangchow stated Oftr. 7) that a woman member of the Youth Corps in the Chekiang Oil
Company, Tung Wen-ya, delayed her marriage in order to expose corrupt elements;
woman cadre Chang Wen-yuen led the attack upon corrupt elements in the Chekiang Oil
Company; Chiang Wen-lung, Agriculture Department trainee, exposed Shen I-ken and Lu
Shou-njon; and Wang Han-ken, who stole 100 million yuan from the Conservancy Bureau,
was exposed by his mother, "These examples demonstrate the importance of women in
the antiwaste, anticorruption, antibureaucracy drive." Other examples were those
of Weng Wen-chien, Tao Nai-ya, and Hsiu Chung-nei of the Kuangseng Mills, who accused
factory and union officals, and Mao I-yen, who accused members of her own famil- of
evading taxes, "However, women have been backward in making accusations; they must
help build New China by being more active."
Wuhan said (Mar, 6) that the Wuhan Committee of the Woments Democratic League called
a recent rally to urge women to take an active part in exposing corrupt merchants
and their own husbands. Wives in Chu No. 5 organized teams to urge husbands to
confess, and "under the influence of his wife" cadre Ho Lan-chu confessed everything
and was pardoned, Canton announced (Mar. 8) that the new marriage law exhibit
held in connection with International Voments Day "attracted huge crowds."
Sian reported Mar. 5) that more than 300 Sian women had organized teams to call on
corrupt husbands and urge them to confess: and as a result "gained much information"
on corruption. Women in Yinchuan and Chiuchuan exposed corrupt elements. Sian
added (Mar. 8) that women in the Northwest had reported 130 cases of corruption,
and had influenced members of their families to make 700 confessions. Kunming
stated (Mar. 8) that Kunming women workers had reported 100 cases or corruption
among merchants. Wang Wei-cheng, sales clerk, reported the manager of her shop,
who had in his possession 1,000 ounces of opium and 400 ounces of gold; 70 percent
of the 22 women clerks in the Kunming branch, Peoples Bank, are members of tiger-
hunting teams; and Liu Hao-ying left her two children alone at home so she could
work with tiger-hunting teams.
MISCELLANEOUS
Counterrevolutionaries, Hangchow reported (Mar. 5) that Shao Ma-ham and Shao
Ma-hain and Shao Kuan-hsin, counterrevolutionaries in Chingkung Hsiang, Hsiaoshan
Helen, Chekiang, had been sentenced to death for killing cadre Shao Chin-kang in
1949. Wuhan asserted (Mar. 3) that the drive "against gangsters" in Wuhan Chu
No, 5 had made great headway after cadres "had indoctrinated the masses in the
dangers of reactionary groups." Wuhan added (Mar, 7) that in 64 hsiang near Wuhan
local despots and bandits had been successfully eliminated, with many "active cadres"
emerging from the campaign and all members of reactionary organizations forced
to register,
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National llinorities. Wuhan reported (Mar. 8) that Kwangsi Province had allocated
80.9 billion yuan to promote production among minority groups. The Nationality
Affairs Committee met in. February and organized local production committees to
carry out the program. Sian said (Mare 9) that in the Tibetan Autonomous Region of
Tsinghai the people celebrated the Spring Festival in accordance with their own
customs.
Epidemic Danaers. Dairen stated (Mar, 3) that local medical teams had been
organized to handle outbreaks of measles, typhoid and diptheria. Nanchang said
Olar. 9) that 31 cadres were being trained in the Pingyuan Chu Health Center,
Kuangfeng Hsien? Kiangsi, to carry out the Government program of eradicating
smallpox in 3 years.
tionEui Kunming announced (Mar, 9) that the Kunming Military Control
Committee had issued a directive calling for the registration of all civil aviation
equipment, which would be subject to requisition by the Government upon demand.
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