CHINA: 'SOCIALIZATION' SPEED-UP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000700040019-6
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: January 31, 2002
• Sequence Number: 19
• Publication Date: April 4, 1956
• Content Type: BRIEF

Approved For Release 29Q32 : CIA-RDP79R0089OA000700040019-6
NSC BRIEFING
4 APRIL 1956
CHINA: "SOCIALIZATION" SPEED=UP
1. Peiping claims 90% peasant now in "cooperatives", as compared
with 15% ('55), 33% (Planned '57),
A. 50% of these "fully socialist" (ie: collectives)
II. Private business also down: 2% of total (although 1 S1o planned '57)
III. Claims seem reasonable (compare USSR).
IV. Production goals to rise:
A. Five Year Plan to take 4 to 4 1/2 years.
B. Agriculture in '56 to top '57 plan.
V. Effect',on popular support:
A. Far opposition not effective,
B. Urban opposition even less.
VI. Effect on Sino-Soviet relations:
A. Intensifies economic dependence, but China's "individuality"
continues.
VII. Conclusion:
Speed-up is further evidence consolidation Communist control.
Approved For Release 2002/02/12 : CIA-RDP79R0089OA000700040019-6
 Approved For Releas , E 12 : CIA-RDP79R0089OA000700040019-6
NSC BRIEFING 4 April 1956
CHINA: SPEED-UP IN "SOCIALIZATION"
1. Peiping claims that the abolition of private farming and
private business has been almost completed in Communist China. This
claimed acceleration of socialization during the past year has been
followed by sharp increases in government goals set for agricultural
and industrial production.
2. The Chinese Communists now say that 90% of all peasants
in China, are members of farm cooperatives, as compared with 15%
in July 1955 (and 33% originally scheduled by the end of 1957,
under the Five Year Plan). Although some of these cooperatives
are described as only "semi-socialist" in character (with the
peasant retaining theoretical title to his land), more than 501
of the peasants are now said to be members of "fully socialist"
cooperatives (ie: Soviet-type collectives). Most of the remainder
will probably be enrolled in collectives by next winter. Mao
Tse-thng is apparently staking his own position on the success
of rapid collectivization. He personally interceded last July
to change the party's more gradualistic policy.
3. The Chinese claims do not appear unreasonable in the light
of Soviet experience. The USSR originally planned to collectivize
10% of its peasants by the end of its first Five Year plan ('28-'32).
Actually, over half of the USSR's peasants were forced to join
collectives during the winter of 1929-30.
Approved For Release 2002/02/12: CIA;R,[ EZ9_R00890A000700040019-6
 Approved For Release 2Q #62112: CIA-RDP79R0089OA000700040019-6
4. In addition to the peasantry, businessmen in all major
Chinese cities have undergone "socialist transformation" during
the past winter. This is to say, they have been forced to accept
"joint state-private" ownership of their firms. By the end of
January 1956, private industry accounted for only 2% of China's
industrial output, as against 16% at the beginning of latt winter,
although the Five Year Plan had envisaged private industrial output
as still some 12% of total industrial production in 1957.
5. This "high tide" of socialization, according to Mao
Tse-tung, has created "favorable conditions" for a new rise in
Communist China's national economy. The Five Year Plan, begun
in 1953 and made public in July
years, according to Chou En-lai.
'55, is to
be completed in 4 to 4 1/2
Although the construction program
of the first three years of the
has failed to meet quotas in each
GOAL
Plan, a dramatic 66%,increase
This increase would more than
that socialism is superior to
has been announced for
1956 over 1955.
make up for past delays.
To "prove
individual small-farm economy,
Peiping has set an agricultural production target for this year
which exceeds that originally set for 1957.
6. Significance for popular support of Peiping regime.
Peiping has avoided trouble in its drive by not emphasizing the
formation of "fully socialized" collectives until the end of 1955.
Before that, Peiping had prepared popular attitudes first through
land reform (giving the poorer peasants land formerly owned by land-
lords and rich peastnis); then by having the peasants join mutual
aid teams (exchanging labor with each other but retaining the harvest
o
f his own land); then by converting the mutual aid teams into semi-
NW&A
Approved For Release 2002/02/12 : CIA-RDP79R0089OA000700040019-6
 Approved For Release 2002162/12;' c1A-RDP79R0089OA000700040019-6
socialist cooperatives (working all lands in common but allowing
each peasant to retain legal title to his own land and to receive
rent from the cooperative for the use of his land). Much of China's
success to date can also be attributed to the regime's strong police
controls, and popular opposition does not seem sufficient to slow
Peiping's drive for rapid progress in this program. Dissatisfaction,
however, is proba.bly widespread, and some peasants have reacted to
the collectivization drive by slaughtering livestock. Opposition to
socia.liza.tion in the cities will.be even less effective than in
the countryside.
7. Significa.nce for Sino-Soviet relations. Peiping's
socialization and industrialization program will intensify China.'s
economic dependence on the Soviet Union. Soviet support for the
program may be a topic of conversation during the Mikoyan visit to
China. But China's individuality in the Orbit shows no signs
of suffering.
of the
For example, Peiping has reprinted Soviet criticism
wa. input comment, while
continuing to refer to Mao Tse-tung in adulatory terms and now
crediting Mao with theoretical
to Stalin.
8. In conclusion,
contributions
Peiping claims
formerly
that socialist
in China, will be "pea.ceful"--a euphemism which cloaks
dissatisfaction in the country but which nevertheless
regime's confidence that it will not meet the violent
countered by the Soviet collectivization drive of the
Acceleration of the drive offers further confirmation
attributed
tra,nsforma,tion
widespread
reflects the
resistance
1930's.
of Communist
success in consolidating political, economic, and military control
over the ChineAppi&tB Rdkelease 2002/02/12: CIA-RDP79R0089OA000700040019-6