INDICATIONS OF PSYCHOLOGICAL VULNERABILITIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000200090001-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 23
• Document Creation Date: November 16, 2016
• Document Release Date: October 21, 1999
• Sequence Number: 1
• Publication Date: February 14, 1952
• Content Type: REPORT

CENTRAL INTELLIGENCE AGENCY REPORT NO.
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY CO11MUNIST CHINA
SUBJECT INDICATIONS OF PSYCHOLOGICAL VULNERABILITIF S
ANTr'i AIC11'T;ty,,a ` I'ICORRUPT.ION, AN1 I'BUREE.ATTCRACY ? m m
HOW DATE DIST. 1 February 1952
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES WITHIN THE MEANING OF ESPIONAGE ACT SO
U. S. C.. 31 AND S2, AS AMENDED. ITS TRANSMISSION OR THE REVELATION
OF ITS CONTENTS IN ANY MANNER TO AN UNAUTHORIZED PERSON 15 PRO-
HIBITED BY LAW. REPRODUCTION OF THIS FORM IS PROHIBITED.
SOURCE MO TORED iROADCASTS
CPW Report No. 6 - Communist China
(10-20 Jan.. 1952)
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COUNTERREVOLUTIONARIES ....... o m e! o s s o a m o a m a e e w? e m n m 20
PREFERENTIAL dRF- THE Nl ................... n s o n a m r m ~- s 22
MISCELLA.NEOT om eq moo, .o em o.. m. eoeo eoo 'aeao In oo ?!?s 22
During the period 10-20 January 1952 the Chinese Communist radio programs beamed to the home
audience reflected a marked intensification of the drive to eliminate waste, corruption and
bureaucracy, with the original aim of increasing production seldom mentioned. The Peking
radio and virtually all regional stations broadcast daily reports of meetings called to
push the drive. Some of the meetings were local, on the city or Chu level, while some were
province-wide, Most of them were called by Government units or Communist Party Committees.
Many areas moved into what was spoken of as the second stage of the drive--the confession-
and-accusation stage. People of all circles were admonished to first confess their own
shortcomings, then report waste, corruption, and bureaucracy in all offices and business
firms, At confessional meetings an old-fashioned revival atmosphere prevailed, with
cadres and business n lined up waiting to confess their wastefull and corrupt practices.
At one meeting it was reported that a third of those present made confessions.. All were
warned to confess if they wished leniency, and numerous cases of punishment when victims
refused to confess were listed. As refusal to confess seemed to be a worse affront than
the actual corrupt practice,' there is a suspicion that many confessed simply to get free
of the subject under discussion. Many cases of graft, tax evasion and other corrupt
practices were broadcast, with names and figures. Some claims were made of successful
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economic measures, along with a limited number of admissions of weakness and failure.
Though the antiwaste and anticorruption drive overshadowed all other subjects, the
need for though-6 reform in the 6chools, churches and industrial plants received some
stress., with the winter school program for adults both praised and criticized. Enforce-
ment of the marriage law, land reform, and problems facing agriculture received consider-
able attention, with reports of severe punishment meted out to landlords. The number
of counterrevolutionary acts, and number of counterrevolutionaries arrested and punished,
showed only a slight increase, but several cases of summary execution following a public
trial were broadcast. Claims of progress in gaining the cooperation of the national
minorities were made, especially in Sikang, where the Tibetans were pictured as anxious
to aid the Chinese A`ywhich invaded Tibet, and where minority groups were said to be
enthusiastic about delivei g grain to the Government and watching propaganda
Steps to implement preferential treatment for Army dependents i the spring gracuas
festival were reported from all parts of China., butsevere criticism of te lag in
preferential treatment work came from the Dairen radio, Among the interesting new
miscellaneous items were reports of suffering and necessary relief measures 'because
of floods and the spread of the. hoof and mouth disease., and reports of violent conflict
between employers and employees.
ANTIWASTE,, ANTICORRUPTION, ANIIBUREAUCR.ACY
Development of 2Kivea What started out as a drive to increase production of economic
goods in China now has 'become a Nation-wide effort to wipe out wasteful and corrupt
practices in Government offices., industrial plants, retail establishments, and even
in the Party and its affiliates. Stress first was placed on the elimination of waste
as one method of increasing defeat of waste and corm t
immediate goal Y ~ production, p on became the
with an increase in production seemingly only incidental. 'During the
period 10-20 January the Chinese radio made only rare mention of increased production,
while the drive against graft, corr?uption, and illegal business activities was given the
greatest attention. Government and Party leaders attacked the,problem with a religious
fervor which apparently spread to the lower-level cadres and office workers, with the
result 'that confessions of dishonest and corrupt practices have become eormlonplaee,
and those who make such confessions are given little punishment, none at all, or
even praise for confessing,
Meetings to spur the drive against waste, corruption, and bureaucracy were reported by
the dozens each day over the regional broadcasting stations. Government and Party
officials convened meetings of. cadres on the municipal, hsien and
In addition., rallies of busiiiessm~en, industrialists workers 9wolne npsogro=lps, and
Youth Corps units were held , On 11 January m?ere nit
A cheek on 15 fan r"y reports of 25 such. meetings were monitored.
January revealed a similar number. At all of these meetings the audiences
were admonished to `be alert to detect corrupt practices, and report 'the.m to tie
authorities.Tti make such reporting eas er?9 special. offices were opened and special
collecti rn boxes installed
`oochow reported (16 Tan,) that the Fukien Supervisory Committee had set up an
office at No,, 11 Wenghai Road, Foochow, to receive reports of corruption; but if informers
did not wish to appear in person, they could send their reports to Post Office Box 405,
with the Committee paying the postage, As a further inducement, "informers will be
given
a percentage of monies recovered by the Government."' Wuhsi announced (18 Jan.) that
the South Kiangsu People's Supervisory Committee had opened an informers' office in
the Hsinhua Store, Chochan Road, Wutsin, where oral or written. reports would be received
each day from 8-110O am. and from 1-5-00 p.m, In addition, informers' boxes had
been set up in Wutsin at the doorway to the Kinghu. Hotels at the gate of the parks
and at the north end of Nanchiao Bridge,
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Hotel stated (12 Jana) that the .Anhwei Communist Party Secretary would personally receive
information. in Post Office Box No. 7 of Hofei, Wi iu, Pengpu, or Anking. Tsinan said
(12 Jan.) that the mayor of Tsingtao had provided Post Office Box 617 for informers,
and threatened dire punishment for 'those who sought to take revenge upon informers?
Kaifeng reported (11 Jan.) that the Honan Committee on Increased Production and
Austerity had selected 10 places for boxes: Tanan. Gate, Hsiaonan Gate, Assembly Hall
doorway, Statehouse doorway, Drum Tower, Tu Street, and the corners of east-west arterial
roads. Yangchow reported (11 Jan.) that in Nantung cadres soon would make personal
investigations to uncover corruption, and that,, in. the meantime, information could be
sent through Post Office Box 100, The same radio said (15 Jan.) that in Su Hsien,
Kiangsu, inforst boxes had been widely distributed and that collections would be made
daily. Hangchow announced (10 Jan,) that the Hangohow Supervisory Committee had opened
a "People's Informer Guidance Center'! at No, 8 Chuang Yuan Building, Minchung Road, and
that in Hangchow, Chekiang Governor Han had designated Post Office Box No. 7 for
informers The same radio (18 Jan,) said that Chen Li-wei, Deputy Chairman of the
Hangchow People's Supervisory Committee
, had established an infor'mers' box at 19 Min
Cht,an Road, and would personally attend to all reports.
Wuhan stated (16 Jan,) that the South China Procurator's office had opened an informers'
booth and had promised to reward and protect all informers. Canton announced (11 Jana)
that the Kwangtung Province Procurator's office had set up informers' boxes at the
People's Palace of Culture on Weraing Road; at the door of the office used by the
Kw.gt`aung Committee on Increased Production and Austerity; at the Youth Palace of
Culture, North Hanchung Road; Canton Civic Association, Chihsiang Road; Kwangtung
Transport Service, South Haichu Road; Navigation Bureau, Tinghai Road; Kwap,r i J
Transport Station; Huangsha Railway Station; and Hunghsing Wharf'. Canton said
(18 Jan.) that Mayor Yeh Chienmying and the Cantor: Increased Production and Austerity
Committee had designated Post Office Boxes 34 and 36, respectively. A broadcast
(19 Jan,) also said that the Cantor,. People's Court had placed informers, boxes at 'the
entrance to Chungyang Parks the Palace of Culture, East Lotung Road; the Kwangtung
Hotel, Taiping Road; the entrance to the city wharves; and on Yunghan.and Tl,nngh.sin.
Roads, Also, information could be reported on Phone 13633.
Mukden armor. ced (12 Jan.) that the Northeast Procurator's Committee had called a
smear i ~g of procurator-informers to plan for intensifying the reporting of corruption
and to explain the information net1,work established by the Committee. Hang,^hcwe said
(15 Jan.) that police cadres, finding people did not make reports, because of fear of
reprisal, had organized street committees to emphasize the move. As a result: 82 reports
of corruption were received at once by the Hsinmiri Road Police Station, Yiuhsi said
(12 Jan.) that Soochow Communist Party Secretary Li Ling had called for an expose of
all rcorraptionj, but "especially of Party bureaucracy." Taiyuan reported (17 Jam.)
that Party cadres were going into the rural, areas to promote the drive.. I` uban
(20 Jan.) stressed the importance of shop clerks in the drive, "as they know many of the
corrupt elements in government and trade," Chungking reported (10 Jan.) that the `wade
Bureau of the Southwest China Military and Administrative Committee, the China Food
CoRmpaw, the Chungking Construction Company, and the Army Service of Supplies had
published large notices in the daily press, calling on the people to report
irr?eg''larities and offering to send representatives from the concerns to interview
those wishing to give information, in addition to promising rewards. Sian said
(19 Jan.) that in Sinkiang Province the task of giving emphasis to the drive was
2gely the responsibility of the People's Liberation A.z , and that Commander Chen
Wen in December had called on all units to take up the work.
FTow,vcr? 1a,_,k of enthusiasm, for the drive against waste and corruption was apparent
in some quarters. Shanghai reported (12 Jan.) an emergency, smeeting of local trade
circles 11 January, at which Party cadres warned businessmen that they must support
the program, and accused them of using "strong-arm tactics" 'to defraud the Government.
Wuhan said (18 Jan.) that some merchants were engaged in illegal practices and at the
same time were disseminating theories aimed at creating a public opinion that would
conceal their activities and undermine the drive. Industrialists and merchants were
waisted that, although they receive less political education than some other groups, they
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are by no means exempt from the common program.
Sian reported (19 Jan0) that at a 16 January meeting called by the Shensi Government,
cadres were charged with "suppressin democratic speech," meaning that they had
discouraged informers, and merchants were charged with resisting the program. A second
meeting of merchants was held the following day, They were warned that they must change
their attitude. Chungking reported (13 Jan.) that the Communist Party Comml.ttee in
north Szechwan had called a cadre meeting "because of laxity" in the campaign.
Cadres were ordered to set up an elaborate system of informers' boxes, to organize
inspection teams, and to "instruct the masses in making accusations e" Party cadres
now are checking on the local inspection committees.
Chinchow announced (20 Jan.) that a meeting of factory and mine cadres had been called
in Fushun Hsien, Liaosi, because the drive was "not progressing satisfactorily" and
because laxity was obvious among both old and new cadres. An earlier 01-;;nohow broadcast
_(17 Jan,) complained that though the drive had been under way for
cadres still were lax. Dairen announced (16 Jan.) that the Peoples s~uperu soryT
Committee of Dairen-Port Arthur called a meeting 15 January of "inspection
correspondents~ax The chairman of the meeting, Hu Chung-Tai, reported that the
campaign was "meeting with numerous obstacles" and that the inspection. correspondents
should intensify their work, at first making certain that "they themselves are not
guilty." Mukden said (14 Jane) that little had been accomplished in Changohun
because of leading cadres' laxity and ignorance. The strongest indictment was
carried in a Dairen broadcast,, quoting the Dairen-Port Arthur People's Consultative
Council:
Basically the movement has not begun in the area. Many organiza-
tionxs have done absolutely nothing. The movement is growing only
spasmodically. There is nothing worth noting about
the movement
..e Cadres in the Public Utility Department have given no
support to the movement and are suppressing democratic informers.
The masses are frightened and prevented from making accusations....
Nothing has been done about the movement in the Medical Section*
'the Tax Bureau, and the Shipping Bureau, The movement already- is
several months old; why have these organizations not, roused 1.71-
masses., but instead have left the masses alone? n,.
_
indifferent cadres are taking a c o ma:
C a bureaucratic= attitude toward rd rc~ this
movement. They have no understanding of the noble spirit of the
movement .... Manny cadres are themselves highly corrupt, ~''ur'twau.~eradu1.l`9. . e e o v `~ wasteful,
Yet they are afraid to reform, so they dare
not, arouse the masses to action e At the presentt, time this attitude
has become a serious obstacle to the movement. These cadres do not
realize that the antiwaste, anticorruption, antibureaucracy campaign
is a vitally important step in the building of a new democratic
society. They must struggle fiercely with their ideology and
political consciousness .... For., if this move is permitted to fail,
there is great danger of losing the Nation, losing the Party, and
losing oneself, The Central and Northeast Party and Government
offices have repeatedly issued directives to expand this movement.
As members of the Party, all cadres must give the organization their
full support e Those who do not do so have shown by their attitude
that they do not recognize their loyalty to the Party. (Dairen,
Dairen-Port Arthur Regional Service, 11 Jan.)
Wuhan reported (14 Jan.) that 670 Party cadres in the Central and South area met
with 29000 delegates from various circles under the chairmanship of Governor Yeh
Chien-ryii g . in pleading with the cadres not to let the campaign fail, Governor
Yeh used the same language quoted above from Dairen, to the effect that failure
would bring a danger of "losing the Nation., losing the Party, and losing oneself."
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Confessions and.Accusations~ The first stage in the antiwaste, anticorruption,
antibureaucracy drive was a period of study, preparation, and organization. The
second is the confession-and-accusation stage. Wuhan announced (12 Jan,) that
cadres of all circles in Wuhan, after a period of study and indoctrination, were
prepared to advance to the second stage, when cadres would lead the masses in
making confessions and accusations. Wuhan reported (13 Jan.) that the first meeting
under the second stage was held. After Hu Feng, Social Affairs Bureau Chief, made his
plea, ""50 cadres came forward to make confessions." Hu Chieh, Chief Procurator,
then made a confession of his own errors in thinking. Wuhan announced (14 Jan.)
that representatives of organizations in Hunan Province and Changsha met to start the
second stage, and (16 Jan.) that in Hupeh the confession-and-accusation stage had.
been reached, with four accusation groups organized to inspect all Government offices,
more than 200 confessions of corrupt practices received, and "some arrests made."
Shanghai announced (14 Jan.) that the second stage of the drive had been reached in
Nanking, where the masses were asked to make accusations. However, leniency or free
dom from punishment were promised those who confessed their misdeeds. Businessmen
in :Nanking immediately reported 500 instances of corruption. Yangehow reported
(14 plan.) the second stage had been reached at Taichow and in north Kiangsui. In the
north Kiangsu hsien of Huaiyin, Suching, and Furring, Yangchow said (19 Jan.) local
cadres were leading the masses in confessing their own errors, "so they could make
accusations.'" Hofei said (19 Jan.) that the second stage had been reached in
Arc'aw i Province, where Cheng Ching-fa confessed to a corrupt deal in which he netted
4,4, million Yuan. Other announcements that the drive had reached the second stage
canK- from. Dairen (16 Jan,), Chungking (16 Jan.), Sian (18 Jan.), Kaifeng (19 Jan,),
and Vuhsi. (20 Jan.) ,
Businessmen presumably were not as ready in all cities to admit their corrupt
practices as Shanghai reported they were in Nanking. Peking in numeral code
(17 Jan.) quoted from a 15 January editorial in TIENTSIN JIH PAO- "The City's
Merchants Should Take Positive Steps to Promote the Movement Against Corruption,
Tax Evasion, and Misappropriation of Government Property." The editorial pointed
out that 50,000 Government employees, students, workers, and the broad masses were
supporting the movement, that 14,000 cases of tax evasion had been reported by shop
workers, and that "wives were talking their corrupt husbands into mating public
confessions." However, the merchants still were obstruetin, the movement by
creating the feeling among the masses that it concerned only Party and Government
cadres. The editorial emphatically denied the fallacious idea of the merchants that
""the program of the People is Democratic United Front has changed.`" It further pointed
out that capitalism still has a place if it helps to increase pro'uction and divests
itself of such feudalistic thoughts as are exemplified in the following quotations:
"Bribery ' i?as existed since history began; give first if you want to take- officials
never prosecute bearers of gifts; and, times are hard, business is bad." The
editorial stressed, however, that the giving of a cigarette or a cup of tea to a patron
in only good business and should not be interpreted as bribery, even though the
patron does happen to be a leading cadre.
Another numberal code transmission from Peking quoted from a speech by Mayor Huang
Ching of Tientsin before a confession-and-accusation rally. Excerpts from the
speech follow-
Industrial and co nercial circles still. are gripped b-j selfishness
and self-interest. They have often practiced graft to lead our
cadres toward corruption ,.., Tax Bureau cadre and People's
Liberation Army combatant Wed ang Shih-li was an unspoiled young man
when he first joined the Tax Bureau, before the wicked merchants
ruined him by vicious means .... Please think for a moment, Have
you not netted some profit during the past 3 years? You can
develop your business and make money without practicing graft, tax
evasion, or other fraudulent acts .... It is a plain fact that
you have made more profit than during the Japanese or Kuomintang
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regimes .... The Government controls only those enterprises
which have a direct bearing on the people's livelihood, and
let you develop, for your own benefit, other enterprises ....
The Government has extended you loans when you needed money,
distributed raw materials when yours ran short, and purchased yatir
unmarketable goods .... Some businessmen still are not satisfied
with what the Government and fellow workers have done for their
benefit, despite their mounting profits, and have engaged in
various lawless activities .... We must rise to catch those
thieves and robbers We must expose such rumors as, You
are not allowed to eat good food or wear good clothes; we are
not allowed to entertain or send gifts to friends; we cannot eat
white noodles or fried vegetables; we are not allowed to permanent-
wave our hair or make any more new clothes." The Government never
seeks to interfere with people's private lives or their social
engagements .., To prevent unwise spending among Government
cadres does not dean to lower their standard of living. (Peking,
numeral code, 18 Jan.)
Wuhan (20 Jan.) devoted an entire program to a rebroadcast of the Tientsin mayor's
speech. Wuhan reported (15 Jan.) that the Central and South China Supreme
Procurator's office had called on the people to expose "lawbreaking merchants."
Again, mitigation or exemption from punishment was promised to those who confessed.
Another broadcast from Wuhan (13 Jan.) quoted the Wuhan shop clerks' organization
demanding an expose of corruption involving merchants and Government officials.
Clerks in the Chunghua Pharmacy and the Liuhsin Tea Shop exposed employers'
irregularities. Wuhan also announced (11 Jan.) that Li Yi-an, Commissioner of the
Hsiangyang Special District, had confessed in public to a bureaucratic attitude, and
exposed .further corruption in his district. Wuhan reported (15 Jan.) that 1,200
persons at a meeting of representatives from 10 Wuhan organizations heard Hsieh
Chih-ehao of the Property Control Bureau accuse fellow-worker Chen Chung-ming of
corruption. Wang Chien-feng of the Tax Bureau accused superior officers Rung Chen -
hsiao and Kung Chen-ling and 14 other officials, including Li Chih-hao of the Tax
Bureau, Li Teh-hsien of the Grain Bureau, and Wang Li-,den of the Property Control.
Bureau. The mayor warn all corrupt elements to confess if they expected leniency.
Wuhan (16 Jan.) told of a joint meeting of women's federations from Changsha City
and H man Province. Hunan officials pointed out "women's erroneous ideas" and called
on the "broad masses of women" to report incidents of corruption. "Married woven
especially cast strictly investigate their husbands who engage in corruption, and must
ask them, to confess or report." Wuhan also reported (17 Jan.) that cadres of the
Wuhan Paper Works made 29 confessions and then pointed out 38 corrupt elements.
"Several of these refused to confess and were imprisoned." Hofei reported (14 Jan.)
that the staff of the Luan Hospital admitted corrupt acts and was pardoned; Hsia
Yeh, local official, refused to acknowledge errors and was jailed. Hofei said
(13 Jan.) that the Hofei Communist Party Committee had called on cadres to become
"model accusers and confessors." Cadre Chao Chang-kan then confessed to fraud involv-
ing 1.6 million yuan and the waste of 490 catties of wheat, and of receiving wrist
,watches and bicycles as graft. He also confessed to employing gangsters an6
feudalistic elements among the cadres and of feasting with them at public expense.
Another cadre, Ho Fei-fa, admitted accepting a bribe of 80,000 yuan. Youth Corps
cadre Lo Chao-tung then accused secretaries of the South Anhwei Administrative
Office of soliciting bribes. The broadcast does not indicate whether these cadres
achieved the honor of being called "model accusers and confessors."
Wuhsi announced (11 Jan.) that on 9 January, 30 persons.in the Changchou Tax Bureau
had confessed to corruption involving 15.75 million Yuan. Hankow reported (11. Jan.)
that engineers and construction workers of the Wuhan Municipal Construction Depart-
ment had made confessions of corrupt practices. Hangehow announced (19 Jan.) that
the Chekiang Broadcasting Station would run a 3-day "voluntary confession program,"
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giving persons a chance to expand their audience when making confessions. Hangehow
(20 Jan.) quoted the city mayor as warning merchants that they had better confess their
corrupt acts if they wished to purg1ase leniency. Nanchang reported (18 Jan.) that
by 17 January more than 2,000 Government workers in Nanchang and Kiangsi Province,
as well as several hundred merchants and industrialists in Nanchang, had made public
confessions. In addition the illegal behavior of several hundred Government workers
had been disclosed, "but still anumber of corrupt elements refuse to confess."
Officials were warned that they must get results by 20 January or "responsible officials
of these units will be dismissed from their posts, irrespective of their past qualifica-
tions and positions."
Shanghai reported (14 Jan.) that leading cadres were lax, and had slowed the drive
considerably. Yet at a rally on 14 January, five employees of she Shanghai District
Railway Administration were accused, of being "undemocratic," an official in the East
China Military Control Commission was discharged because of an 'incomplete confession,"
46 persons from the State Electrical Supply Company made confessions, 119 persons
were lined up at one meeting waiting to confess, and 583 letters had been received
through the informers' box. Shanghai announced (13 Jan.) that Liu Wen-chuan, chief
of the Changehow Tax Bureau, had confessed to bureaucracy and had called on his staff
to join him. Shanghai said (18 Jan.) that Wang Yen, chief of the East China Cultural
Bureau, claimed he was never involved in corrupt practices, and considered himself
above becoming involved in such problems. Keh Li-lien, Health Department deputy chief,
told his employees "they should not say much if they did not know much about, the
situation," thus "suppressing democratic expression." After undergoing "thought
struggle," both men changed their attitude and Wang admitted he had been living
luxuriously.
Dairen reported (18 Jan,) a meeting of the North Sea Zone Marine Transport Control
Bureau, where the leading cadres themselves were found to be corrupt. Director Litz
Ten-ch':nxg made a public confession of his errors, which was followed by 150 other
confessions, involving a third of those present. Dairen -eported that Leng Yih, deputy
secretary of Huashatso Chu, Dairen, heard his brother, an Army;-man, say that if his
superiors did not discover what he, was doing he could make 600,000 yuan in an illegal
transaction, Leng told his brother that as a good Party member he, Lend;, must report
him, and wrote a letter of accusation to the authorities in Mukden. On 31 December
Leng received a letter of praise from the Youth Corps and reporting that his brother
had illegally obtained 2 million yuan and had been sentenced to prison. Another
Dairen broadcast (17 Jan.) told of Chien Chih-fang of the People's Bank, who learned
that a fellow employee, Li Hsing-liu, who was fond of good living and feared his
superiors, was frightened by the anticorruption campaign. Chien "worked on" Li 20
times, and finally obtained a confession. Now, "Li is a happy man" and Chien has
been honored by the Youth Corps, Another Dairen broadcast (17 Jan.) reported that
at the Dairen Oil Works the drive was stalemated because no one dared to inform on the
assistant manager, Wang Yu-wx, who told cadres there was no corruption and that it
was best simply to "let the uproar blow over.." After political indoctrination Wang
realized. the error of his ways and publicly confessed -to a long series of corrupt
acts, "This rocked Dairen," The manager of the Oil Works said that since Wang
confessed, he must do the same. Cadre Han Fu-ching also confessed to cheating to the
extent of 9 million yuan and promised to return the money.
Sian declared (20 Jan,) that top officials in the offices of the Northwest Military
and, Administrative Committee are taking the lead in making confesssions and accusa-
tions. Sian reported (12 Jan.) that at a Sian Railway subbureau rall.,r. fan Ho-cr~~r.
Cho Chung-ken, Hua Lo-su, Chang Wen-cheng, Chang Wen Tsang, an(. Chang Wen-hsien made public
confessions and were let off with a warning. Wang Yao-tang refuge, to uoa.Less and eras
summarily discharged. Canton reported (13 Jan.) that units of the Peoplets Liberation
Army had begun confessions and accusations, and that cadres had been warned to make
no attempt to hush public expression.
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Chungking stated (12 Jan.) that the local shop clerks had sent reports on 1,000 cases
of corruption to the local press, As a result, members of the rubber, electrical
supplies,'s ippin.g, and clothing trades organized their own committees to check on
Corruption. Chungking said (14 Jan?) that at the People's Assembly meeting in
Chengtuon 10 January, Deputy Mayor Lu Chien-fu and others made accusations against
merchants and public officials, after which Chow Hsiao-feng, manager of the Weifeng
Hardware Company, and Hsu Tien-yi, manager of the Tshanghai Radio Company, confessed
to illegal dealings with officials. Then two members of the People's Assembly were
accused of tax evasions, and, when they refused to confess, were stripped of their
,positions. The Assembly received 480 letters reporting corruption. Chungking also
announced (14 Jan,) that 2,600 representatives of Kweichow business circles met
10 January, when, three merchants confessed to corrupt dealings with officials. Several
accusations were made.
Kuxrmn.ing reported (18 Jan.) that employees of the local Tax Bureau were aware of
corruption, but were afraid to report. Chao Chang-ken of the Telephone Bureau was
accused of stealing Government property and forcing others to assist him. Kuruning
an
also said (20 Jan.) that Wang Wei-Ching, woman owner of the Tienpien Shop, 23
Road, was accused by her clerk of being a saboteur, counterrevolutionary, and opium
dealer. She refused to confess, threatened to charge Li in court with raping her, by
way of reprisal, and had her son impersonate a Youth Corps member and threate-n Li.
Wang Wei-ching's fate was not revealed.
Grad Corruptions Reports of graft, corrupt practices, and illegal activities--
where public confessions and accusations were not involved--were monitored from 15
regional stations 10-20 January. The Southwest furnished the greatest number of
reports, the Northeast supplied the smallest number, and none was heard from the
primary Northeast regional station at Mukden,
Chinchow announced (14 Jan.) that Wang Chih-chai, manager of the Tsingtao branch,
China Salt Company, was charged with corruption and handed over to the People's
Court. Merchant Wu Shao-ting was arrested as his accomplice. Chinchow said
(19 Jan.) that the local People's Information Office received 107 letters during
1951 repor^'tirg corrupt cadres, Dairen reported (14 Jan.) that Labor Bureau Deputy
Chief Liu Wei.'ta had been conniving with other cadres to conceal his corrupt
activities. Dairen said (19 Jan,) that Chu Te-fa, head of a workshop in the Dairen
Ship Repair and Construction Plant and formerly a foreman under the Japanese and the
Kuom in.tang, had been dismissed and expelled from the Corruinmist Party for bureau?-
cratic action. At the Dairen Chemical Works, accountant Shen Yuan-fa was found to
have connived with merchant Kuo Chien-Chung to receive a five percent kickback on a
200-million-yuan Ga?rern nt leather contract.
Tsinan reported (13 Jan.) that the Hwata and Yufeng Silk Shops of Hsuchow broke an
agreement with the State Trading Company to limit their gross profits to 10 percent,
and illegally raised prices to add to their profits. Each was fined 10 million Yuan
and its illegal profits confiscated, Party Secretary Kuo reported that cadres in the
Tsinan Railway Administration had been guilty of 455 cases of corruption since 1949,
in addition to extravagant living and a waste of 1.55 billion yuan of Government
money, Tsinan announced (15 Jan.) the dismissal of Trade Bureau Director. Tang Chen,
City Power Company Manager Chang Chid-jen, and City Textile Company Manager Chen
Chien.. Nine minor officials were removed pending investigation. The Consultative
Council reported the dismissal of Mayor Hsu Chien for corruption. The same radio
said (19 Jan.) that Shantung colliery cadres held a meeting to discuss the situation
in the coal mines, "where corrupt elements have seized control and are unwilling to
give way before the drive.?
Shanghai reported (13 Jan.) that at a meeting of 2,000 cadres it was revealed that
Chen. Wan-yi, Power Bureau deputy chief and manager of the Shanghai Power Company,
had been charged with corruption and waste, discharged from his position, and
imprisoned, Kaifeng announced (10 Jan.) that Liu Feng-Chang, employee of the Loyang
Postal Telegraph Office, had been charged by the Huapei Electrical Suppl;r Shop with
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attempting to sell motors, batteries, earphones and electrical supplies stolen from
Government supplies 19 December, Kaifeng said (16 Jan.) that losses to the uovernrnent
in Chueh.shanHsien, Honan, totaled 19 million yuan in 1951, and that Tung Teh,
assistant station master in that hsien, had been indicted for conniving with
unscrupulous shippers to defraud the Government of 1,7$5,300 Yuan. Nanchang announced
(20 Jane) that nine "corrupt elements," including the deputy director of a joint
industrial and commercial association, the owner of a lumber mill, the director of a
guild, a manager, and an engineer, had been arrested and turned over to the People?s
Court. They kept faulty records, connived with other corrupt elements, and undermined
the anticorruption drive 8
According to Yangehcwt radio (20 Jan.), two dealers had been arrested for bribery,
fraud, illegal profits, selling diluted gasoline, and tempting cadresn Their
illegal profits in the past 6 months caused 54 accidents, and caused a transportation
company to lose 10 million Yuan. Chen Fu-cheng, chairman of the Board of Trade, told
merchants at a meeting i$ January that the Government had suffered huge losses in the
processing of grain because of corruption in the North Kiangsu Branch, China Food
Corporation. Wu Pang-ling, Kwang Wei-sheng, Yu Wu-chenf, and Yu Pei-ti made public
confessions of their tax evasions, speculations, selling of false medicines, and other
corrupt acts, in the hopes of getting leniency.
Hankaw (11 Jan.) said that the Wuhan People?s Government had dismissed the following
because of corrupt activities: Yang Wen-ping, manager, Wuhan Rubber Company; Hsu
Wen.-.hsiang, manager, Wuhan Department Store; Yang Kai-shih, manager, Wuhan Waterworks;
Chung Jih-cheng, manager, Wuhan Electrical Supply Company; Ho Lihmming, tax collector,
Wuhan Finance Bureau; Lu Wen-hsiang, special officer, Wuhan Public Safety Bureau;
Li Fan thing, chief of 3d Substation, Public Safety Bureau; Ho Ching, chief of 4th
Substation, Public Safety Bureau; Fan Hsing, chief of headquarters legal section,
Public. Safety Bureau; Ho Fa,- jen, captain of police, 4th District, 3d Substation; and
several officers in the 8th District police station. Hankow reported (13 Jane)
that Ma Tien-hsiang, official in a Government company, was accused of accepting a
bribe of 1.5 million yuan. Liu Chun, former director of the Wuhan Civil Affairs Bureau
Foundling Home, was excommunicated from the Communist Party and indicted for mis-
appropriation of 400 million yuan, causing the death of a number of orphans, and
dissolving the workers union and dismissing 40 employees. Wuhan stated (14 Jana)
that the Wuhan Communist Party, with the approval of the Central and South China
Party office, had decided to expel Yi Chi-kuang, former deputy mayor, "because of his
degeneration." TThe same radio reported (19 Jane) that a public trial had been held
before 12000 persons in Chugshan Park for seven "grafting businessmen," one of
whom "squeezed" 179 million Yuan as head of the Wuhan Emporium, and another of whom
was guilty of enibezzling 500 million Yuan as manager of a paper factory. No sentences
were passed.
A Wuhan commentary (19 Jan.) told of the trial of corrupt Government officials,
including Chen Cheng-mo, Wu Yu-lien, and Wang Kwan-sung, and warned that "-the
revolution. is being seriously endangered by the corrupting influence of cadres
who still have bourgeois thoughts." Peking reported in numeral code (20 Jan.)
that between 10-16 January, 1,742 cases of graft and tax evasion were exposed in
Wuhan. At a meeting 17 January, nine persons admitted tax evasion, graft, and
unscrupulous production, including Ho Heng?fu, chairman, Preparatory Committee of
the, Wuhan Federation of Industrial and Commercial Circles, and manager of the Chien
Chang Trading Company.
iangchow reported (11 Jan.) that Chen Tien-kwei, acting chief of the service section,
Hangchow Broadcasting Station, had been involved in corrupt agreements with private
merchants, As a result, he had appropriated 60 million yu.an, received bribes from
the Kungchie Radio Company, and Hangchow and Hungying companies in Shanghai, and had
misappropriated public funds. He refused to confess. Hang-chow said (12 Jan.) that
Chen Yen-hsin, manager of the publicly operated Flaming Cloth Company, had been turned
over to the People's Court for "severe punishment." He stole and sold 10,077 ytaan
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worth of Government property, and also shielded landlords and counterrevolutionaries.
Li Ju-cheng, official in the Chinhua Shop Employees Union, embezzled 1.9 million
yuan in arms donations, misappropriated 690,000 yuan of public funds, 4.25 ounces
of gold, and 10 silver dollars. Hangchow said (13 Jan.) that the Ming-feng Paper
Factory had been found guilty of withholding 5 percent of the Resist-America, Aid-
Korea arms donations. An agreement had been made with the workers that the money
would be used to develop production, However, the company broke the agreement.
The Chekiang branch, China Cotton, Yarn and Cloth Company, paid the Yanghuang
Construction Company 240 million yuan to build two factories in Yuyao and Hsiaoshan
Hsien. Construction of the factories was delayed 2 months, and it was discovered
that the money had been used secretly to build a factory for another firm. Hangehow
announced (16 Jan.) that Chen Te-ming, Foodstuff Bureau worker, had been dismissed
from office, ousted from the Party, and arrested on charges of corruption.
Taiyuan broadcast (19 Jan.) that 14,000 cases of corruption among local merchants
were being checked, and repeated newspaper complaints that merchants were not
cooperating in the drive. Sian announced (10 Jan..) that the corrupt practices of
more than 1,000 firms in the city had been exposed, and another broadcast (14 Jan.)
gave the cases of corruption among local officials as 370. Sian reported (15 Jan.)
that in.Tienshui, Government organs had been accused of selling Government gasoline
for personal profit.
Chungking announced (12 Jane) that 373 cases of corruption had been exposed at a
meeting 9 January of representatives from 25 trades in Chengtu; while at a similar
meeting in Nanchung Hsien, Szechwan, many cases of tax fraud. and illegal rebates
were revealed. The radio reported (14 Jan.) that Fei Yuan, Ching Chi, Chung Hsin,
Hang Fang and Ta Lai, local contractors, had charged excessive prices, cut materials,
and cheated in labor in fulfilling Government contracts. Chungking said (16 Jan.)
that Manager (Yu Han-Ching) of the Yatung Cloth Factory had misappropriated more
than 44 billion yuan in union funds. The Chih Li Match Company also was guilty
of mistreating workers by delaying payment of wages and forcing purchase of factory
shares. The manager of the `Puking Pharmacy, Chengtu, connived with old employees
of the People?s Bank in getting loans on empty drug containers in order to obtain
funds for speculation. Chung Wen-ping, native products dealer, connived with buyers
to profit from fraudulent merchandise, Chungking shop clerks reported 3,390
instances of corruption, despite threats made against some of the clerks, and in
Wan Hsien, shop clerks exposed 303 cases. However, "many of them still are
feudalistic in their thinking and have not taken the movement seriously."
Chungking reported (17 Jan.) that the Yitai and Chinchi Oil Companies had been
habitually diluting gasoline; Yang Chieh-tu, manager of the Mingli Steamship and
Transporation Company, embezzled Government property, including 100 tors of diesel
oil and fou tires; dsu.i Yung-kuan, owner of the K.angchangfu Carpentry Shop,
collaborated with tax officials in evading 12 million yuan in taxes; the Yichang
Dried Vegetable Store sent lackeys into the China Native Products Company to
collect firsthand information, then indulged in speculation to create market
disturbances and caused the State concern to lose 100 million yuan. Some illegal
dealers ale(, tempted Government workers with women; used all sorts of means to
tempt tax collectors; and stole Government property, Chungking said (19 Jan.)
that Li Cheng-fen of the Chungking branch, China General Merchandise Company, refused
to confess to his corrupt acts until he was exposed by his clerks. A facet of the
confessions of fraud is indicated in the statement that 1,700 Chungking merchants
sent in letters of confession "in fear of ultimate exposure by their clerks."
Kunming announced (18 Jan.) that the Yunnan Department of Industries published
16 January a second list of 22 "corrupt elements," 20 of whom were exempt from
punishment because of confessions., Between 11-15 January, 178 cases of corruption
were revealed, most of them conspiracies between merchants and cadres, involving
100 million yuan misappropriated and 300 million yuan in waste. The most serious
case appears to have been that of Kao Chung-wu of the Kunming Public Security Bureau,
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who was discovered 14 January to have extorted several hundred million Yuan from
opium smugglers in return for protection, and of having "sold the secrets of national
affairs to reactionary elements." Kunming reported (19 Jana) that Vice Managers
Wang Chien-chung and Chang Chung-fan of the Yunnan Department of Finance printing
plant, and Operations Chief Lo Chung-teh, were indicted 19 January for corrupt acts and
refusal to confess. Chang.Li-ming, corrupt element in the Kunming Hsien Government,
refused to make a confession and was charged by the People's Court with stealing and
selling Government property. A cadre rally decided to "punish severely" Li Kuei-pin,
Chu Jen-nhieh, and Li Pei-yuan for misappropriating public funds, visiting prostitu-
tion houses, shielding special agents, and obstrucing closure of opium houses. The
radio reported (20 Jan.) that a Public Safety cadre had sold 340,000 yuan worth of
Government gasoline, and that a postal employee had taken 50,000 yuan worth of
Government property, Li Yu-shah, chief of the transport section, Yunnan Food Company,
was paid 150,000 yuan and two suits of clothes by merchant Chang Pao-tiers in
exchange for favors. As Chengss hold on Li grew stronger, he even obtained company
funds for speculation.
L. sien reported (19 Jan.) that Hari Chung-chu, janitor at the Loshan Technical
School, sold 270,000 yuan worth of school property. Another employee, Kuo Ko-ting,
stole 500,000 Yuan. When Chen An-hsin, Public Safety chief, finally confessed to
receiving bribes and handed them over, other safety officers followed his lead and
gave up 23 wrist watches, 22 fountain pens, 2 watch straps, 50 bottles of medicine,
and a radio, all received as bribes.
Laxi.ty, blast^and Extravagant e A Although not as common as wilfull corruption,
numerous cases of extravagance, laxity, and waste resulting from bureaucratic
methods were reported by the radios. Dairen announced (16 Jan.) that Chen Chung-ta,
manager of the Dairen Chemical Works, and his chief secretary, Yen Chien-thing, and
leaders in the Dairen Textile Mill, the Dairen Steel Mill, and the 21st Plant of the
Printing Bureau, had been charged with laxity and lack of interest in the antiwaste
campaign. Tsinen said (13 Jan.) that the Shantung Department of Construction had
been lax in carrying out the campaign, did not investigate cases reported to it,
and did not call confession-and-accusation meetings.
Hangehow reported (14 Jan.) that Yang.Ming-yi, deputy chairman of the Textile
Association, Ningpo office, did nothing to push the hao chien-hsiu technique even
after. attending a conference in Tsingtao to learn about it, and caused many workmen
even to doubt the existence of such a technique, Wuhan (14 Jan.) quoted from a
CHIN. YOUTH DAILY editorial which asserted that although the drive was making progress,
many Youth Corps cadres, especially those in education, had been lax. Some groups
had left the matter in the talking stage and had done nothing to promote confessions
and accusations. Some cadres were guilty of grave errors in thinking, and favoritism
was common in some offices. The editorial warned that more positive steps must be
taken, "or the Youth Corps would lose its reason for existing." Chungking announced
(17 Jan.) that in north Szechwan the Comaunist Party Propaganda Department had
retrained 20,500 cadres since July under a rotation system "to correct thoughts of
complacency prevailing among village cadres."
Tsinan reported (10 Jan.) that in the Taisi Special District, Shantung, where 3.50
persons were arrested on corruption charges involving 90 million Yuan, five public
offices wasted 625,939,000 yuan in 10 months of 1951. Factories in the East China
Department of Industries, Shantung branch, Hopei area, wasted 42,4.26, 000, or 21 per-
cent of their capital. Tsinann announced (12 Jan.) that cadres of the Tsingtao
Trading Company had charged the company with wasting 2.5 billion yuan. Taiyuan
reported (18 Jan,) that Party cadres of Government mining companies met 12 January
and charged the companies with wasting 15 billion yuan. Kaifeng reported (10 Jan.)
that the Chengchow People's Dank-held an antiwaste exhibition, where it was admitted
that the bank wasted 700 million yuan on additions to?its buildings, and 180,000
on printed pamphlets prepared before a visit of the auditing committee.
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Hofei stated (14 Jan.) that the city Government had called a meeting to discuss the
elimination of red tape after it was demonstrated that some offices needlessly held
up documents and handled them carelessly. In. one list, 600 catties of oil had
carelessly been written as 100. Shanghai reported (17 Jan,) that large-scale waste
had been uncovered on construction projects. In Fukien Province 600,000 Yuan were wasted
on one project. Foochow admitted (10 Jan.) that the Changlo Hsien Food Bureau wasted
money cn three plants and two warehouses. The processing plants could not be used
because the conveyor machinery was improperly installed, and a 2-million-catty ware-
house had to be. abandoned because of its poor location. Foochow announced (13 Jan.)
that Keng Tung-sung, acting chairman of the Foochow Committee of the China Transporta-
tion Union, and Chung Chung-,ming, manager of the Foochow Transportation Company,
had been removed from office for wasteful and bureaucratic practices, and that appro-
priate disciplinary measures would be considered by the Commi-mist Party.
Wuhan reported (18 Jan.) that the South China Cultural Association had wasted 1.5
billion yuan, with the cadres themselves the chief culprits. Wuhan said (19 Jan,)
that the China Grain Company, Honan branch, had been charged with wasting 63.38
billion yuan in 1951, and that the Honan Trading Company had tied up 72 billions in dead
inventories. Hangchow reported (10 Jan.) that the Chekiang Provincial Government had
sponsored an exhibition showing "100 kinds of official red tape,' with 3,000 office
secretaries ordered to attend, "The undemocratic treatment of documents by officials
was stressed'." Hangehow said (12 Jan.) that the Chekiang Department of Con unications
had disclosed that bridges in Teng Hsien were a complete loss because they were not
repaired following the floods that engineers wasted 6 million yuan from July to
November; and that official documents sometimes required 27 actions, 65 signatures, and
were held -up for 8 months, 21 days. Hangchow announced (15 Jan.) that Hsu Cheng,
manager of the Chekiang branch, China Pharmaceutical Company, had been dismissed when
it was discovered that his company had wasted money in 45 rays. Instead of dismissing
corrupt employee King Nai-yuan, Hsu promoted him and increased his salary In an
open meeting, Hsu declared: "I know I am bureaucratic. I did not investigate the
corruption of others, In China there is only Chairman Mao; in this company there is
only the .manager- myself ."
Kaifeng (19 Jan.) accused the Communist Party Committee in Shenchow with extravagance
in spending 5,303,000 yuan. in a 28-day meeting in addition to 384,900 spent even
before the meeting opened. Many cadres traveled to the meeting in private cars. Foochow
charged (1.4 Jan.) that Chen ?Ta-fen, farmer and deputy village magistrate, Tungtao
.Hsiang, Third Chu, Kutien Hsien, Fukien, wasted enough on his wedding to provide for
his living for six months. He gave a wedding feast of eight tables, thus wasting;
1,000 catties grain. Another three couples spent 6 million yuan for 50 tables, at
120,Ouu yuan per table, for their wedding feasts--50 percent more than the 4 million
they must borrow for their spring fanning. Nanchang told (18 Jan?) of the former
poor peasant Yeh Hao-seng, Wangping Hsiang, Sixth Chu, Wanan Hsien, Hopei, who joined
the Youth Corps and, after land reform, became prosperous. He built a large house,
and celebrated 24 December with a 12-table feast, using 20 catties of strong wine and
20 tan of grain. Soon he had wasted all he had and was . forced to borrow to live,
delaying the work of 60 people.
Wuhan said (15 Jan.) that Hunan farmers also are extravagant, One Shuchow farmer
wasted 8 million yuan on feasting, and Li Li-chi of Nanling wasted 9.32 million
yuan on his mother's birthday. Wuhan also said (16 Jan.) that the bumper crop led
to extravagances in Paiching Hsiang, Chuchou city, Hunan, where 50 households were
guilty of wasting grain at parties. Chungking reported (11 Jan.) that farmers in
Suining and Nanchang Special Districts, and Langehung Hsien, Szechwan, were guilty
of extravagant eating and drinking. A farmer in Village No. 1, Yitiao Hsiang,
Yingshan Hsien, spent 240,000 yuan, his income from one crop, in feasting, Lingtao
Hsiang, Fengan Hsien, slaughtered 1,100 hogs, or one to the person, Chungking added
(13 Jana) that farmers in south Szechwan continue to waste money on lavish eating
and drinking, For example, people in Yichang Hsiang, Mienyang Hsien, formerl7
consumed half a hog daily- now they use 13. Rich farmer Ma Ken-nun:, Chunghsi Hsiang,
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spent 1.1 million Yuan in feasting; Farmers Association President Wang Teh-ho,
Kdoshanpa, Spin Hsien, spent 1.1 million yuan feasting during an association meeting;
Yu Ling:wang, Farmers Association organization chief, spent the proceeds of his firewood
sales on wine. Chungking reported (16 Jan.) that following the "remarkable autumn
harvests" in north Szechwan, peasants in Kuangyuan Hsien alone spent 140 million
yuan in sending gifts and entertaining friends- peasants in Shehung Helen ate 200
pigs within 36 days- a farmer in Suining Hsien, director in the Farmers Association,
spent 1,2 million Yuan on his son's wedding, and even borrowed money from relatives
to buy gif?tos, Luhsien announced (18 Jan.) that 513 Militiamen in Neichiang Hsien,
south Szechwan, had been assembled for special education because of lethargy and
complacency following bumper harvests,
Tax Evasions. Peking reported in numeral code (18 Jan.) that at a Mukden Federation
of Labor meeting 16 January, with 1,600 present, 78 cases of tax evasion and bribery
were exposed, and Chairman Chang Kai announced that 959 such cases had been reported
in private firms since the drive started last year. 'Worker Chu Wen-?jui said that at
the Chengfa Iron Works the workers refused a proffered wage increase because the
proprietor was attempting to account for 2 million yuan he had falsely reported as
labor expenses. As a result of their refusal to accept the money it had to be turned
over to the Government, Manager Hsu Chan-hua of the Talu Rubber Mill stole materials,
evaded taxes, and bribed cadres, The proprietor of the Shuncheng Oil Mill was accused
of tax evasions, bribes, and thefts totaling 100 million yuan.
Tsinan reported (19 Jan.) that in December 421 cases of tax evasion and corruption
were exposed in Meifang, and 172 in Hsu.c'how, Shanghai announced (17 Jan,) that King
Shi-ping, manager of the Huaming Printing Company, confessed to tax evasions,
Shanghai reported (15 Jan.) that Li Wen-teh, owner of the Heng Feng Cloth Mill, was
guilty of evading taxes amounting to several tens of millions of yuan, hoarding
cottezn. yarn, using company funds for speculation, destroying the evidence, trying to
escape, and spreading rumors that the Tax Bureau, was trying to kill him. Wuhsi
reported (10 Jana) that 800 attended the public trial of Lu Shao-yu, owner of the
Tifeng Cloth Shops Nanwei Hsien, Kiangsu, on charges of tax evasions. Yangchow
reported (1.r) Jane) that Ku Kwang-ship and Han Hsiao-1o, operators of the Ta Seng Tobacco
Shop; ware sentenced to 10 and 5 years, respectively, at a public trial 22 December
attended by 400, They cheated the Goverment out of 14 million Yuan.
Canon announced (19 Jan,) that in Haikang Hsien, Kwangtung, 633 stores of 26 trades
admitted tax evasions totaling 2 billion yuan. Kunming reported (19 Jan.) that
Tang Sha-ho and Ma King-vu, proprietors of the Tachingyang shop, had been arrested
and charged with mistreating clerks Pang Cheng-kuo and Chow Ho when they reported
the merchants' tax evasions. Tsinan quoted Fang Chih-chang, Hsucho w Tax Bureau director,
as telling a business ten's meeting that his office handled 2,000 cases of tax
evasion in 10 months of 1951. At the meeting 40 men confessed to evasions, and the
detailed example of one case follows:
In his confession, cloth dealer Li Chih-nan confessed that in
1951 he failed to pay tax on 80 to 90 bolts of cloth. He felt
this deed might cause him trouble, so he contacted Comrade Wang
Chien-yang in Section 3 of the Tax Bureau. Comrade Wang proved
helpful in checking on tax payments, and borrowed 40,000 yuan from
him two times. Wang never offered to repay., and Li never asked
pay?.nt. Li never asked for payment, for Wang was directly in
charge of collecting Li's taxes. Wang was very helpful. Each
time he helped it cost Li 40,000 yuan. (Tsinan, Shantung
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Econoric Weaknesses and Failures. Peking announced in numeral code (20 Jan.) that the
plan for consignment of cargoes to railways broke down, so that for the first 3 days
of January the schedule quota was fulfilled only 83.5 percent, Hangchow reported
(10 Jana) that workers at the Chiahsing Textile Mills refused to make inventories on the
groomd:s it was uxlnecessary. A check showed 552 million yu.an.tied up in dead stock,
with enough needles in the warehouse to last 5 years and other items to last 10, "tuhan
announced (16 Jan.) that 5.57 million catties of food stored in six warehouses of the
1-?shan Foodstuff Company, Kwangsi, deteriorated because of heat, worms and fermentation,
partly because of the poor conditions of the warehouses and partly because of the
irresponsibility of the cadres. Hofei reported (13 Jan.) that the China Foodstuffs
Company and the Public Safety office in Hsuan?cheng Hsien, Anhwei, lost 200,000
catties of rice because they "'blindly trusted" a private foodstuffs company called Tien
Fu. to buy and process rice. The company was given 18.2 billion yuan to buy 700,000
catties of rice, but much of the money was spent on paying debts and buying new
equipment,
Shanghai announced (13 Jan.) that the Food Bureau in Su Hsien, north Anhwei, let grain
bags rot at a loss of 380 million yuan. Shanghai said (12 Jan.) that fundamental
construction in the salt fields of East China was only 1180 percent perfect:." In some
places the idea of "design and plan first, and then work" was not carried out, with
serious losses resulting. Yangehow reported (16 Jan..) that the China Foodstuffs Company
branch in Taichow city, Kiangsu, notified the branch in Li-chin-ship 29 September to
raise the market price of wheat 10 to 15 yuan, Through carelessness the branch
notified nine other offices to use the price established 26 September, with a resulting
loss of 1,321,170 yuan in one month. Yangchow said (18 Jan.) that at a meeting
12 January a cadre from..Suching Hsien, Kiangsu, reported that in checking on 39
g?ana:ries, he discovered 31.2,000 catties of unrecorded grain, in addition to unrecorded
funds of 18 9 852, 000 yu n .
Claims of Success. Among the relatively small number of econs nic gains claimed by
the Chinese Communist radio, some are accredited to improved personal relations in the
factories, some to adoption of Soviet methods, and the remainder to changes and
improvements in methods. Weaknesses are apparent in most of them,
Canton claimed (10 Jan,) that production had increased greatly in the Kwangtung
Rubber Shoe Factory after "feudalistic elements in the factory were destroyed by
democratic reforms," Wuhsi said (10 Jan.) that a great; improvement had been noted
in the accomplishments of the 2,000 Shiyehan transport workers "since elimination of the
boss system through democratic reforms." Canton said (13 Jan.) that since man;
senior workers had been reformed, friction had been eliminated between them and the
new workers, with 37 plants, including the Canton Waterworks, the Yung~yao slid the
Hsintxau factories, having reached the democratic unity stage. Chungking reported
(19 Jan,) that the Sanhsi Coal Mine, west Szechwan, had greatly improved its ,
production since the "feudalistic bosses were thrown out last June" and a democratic
committee of 130 cadres set Up. Shanghai said (13 Jan,) that Yu Ching-lire had
been permitted to join the Com uxrist Party "because of his bravery .t1 As a worker
in charge of handling cargo in the ' arkham Road Railway Station he refused many
bribes, though he had a family of eight and made only 4,000 to 5,000 yuan a month.
He reported smuggling cases, causing the smugglers to lose 50 million ruan on one
cargo, was beaten, and his life was threatened.
Mukden announced (10 Jan,) that under the direction of Soviet technicians train
operation efficiency had been greatly improved at the tukden South Station. PWuhan
asserted (17 Jan.) that workers on the Chengchow Railway had achieved excellent.
results through emulating Soviet methods in operating freight trains. Locomotive
teams 3314 and 3384 had set new freight transport records in moving 25,000 tons at a
saving to the Government equal to the cost of operating; 20 locomotives
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Chinchow announced (18 Jan.) that peasants in one village had decided to spend no
money b ing "superstitious items" during the coming spring festival, Wuhsi said
(18 Jan,) that farmers in Changchow had decided to save money by refraining from
observing ancient customs during the spring festival. Feasting and religious observances
will be kept at a mime.
Peking in a numeral code transmission (13 Jan.) asserted that the Northeast Department
of Industry will use 25 percent less lumber in 1952 than was required last year "with-
out affecting construction requirements." Floors and ceilings of ordinary dormitories
will not be made of wood, and substitutes will be used whenever possible. Small
discarded boards will not be used for firewood or sold. Use of lumber at construction
sites for corridors and sidewalks "is strictly prohibited." Peking said in numeral
code (14 Jane) that after successful experiments with cement in the Northeast it had
been decided to use "medium grade cement." Mukden announced (12 Jan.) that the North-
east Department of Industries had acclaimed two technicians for cutting production
costs by using more reclaimed rubber, thus reducing new rubber from 38 to 30 percent,
and improving the quality of the product," Preliminary figures prepared at the
Number 4 Rubber Factory indicate the saving will amount to 478 million yuan annually,
Doubt is cast on these claims through the statement that the Department is urging
technicians to continue to study the problem "in, order to attain the standard set by
the Soviet Union." T s .nnan announced (12 Jan.) that the Shantung branch of the
Comnunis't Party has issued a directive calling on all offices to save rubbish and
deliver it weekly to the state paper factory for use in making paper at an estimated
saving of 20 million yuan annually,
Hangchow announced (12 Jana) that a winery was changing its business, and now will
process sugar. At the Number 7 Shop, Chekiang Woolen Mills, workers have set up an
"honor-system mail box" with stamps and change in order to save workers from using the
20 minutes required to go back and forth to the Post Office, Yangehow said (15 Jars)
.at the Ta-Sheng Cloth Factory, Nantung, Kiangsu,' is carrying out a saving campaign
by selling old stocks in the warehouse, thus increasing the turnover capital and
saving 250 million yuuan in 3 months, Faking announced in numeral code (11 Jan,) that
by using a high-speed metal-cutting process, 10 machine factories in Shanghai,
including Tungyung, L lusun.g and Chiuchiang, have raised their efficiency from two to
nine times. In the Chianghan Shipbuilding Factory Number 2, Wuhan, which has old-
model leather belt lathes, the increase was one to three times. Pekin-- said (13 Jan.)
that the Northeast Dyeing Factory has adopted the rationalized suggestion of "reconvert-
ing dye fluid wastes" which "had 'been suppressed for one year o" Mukden announced
(10 Jags) 'that the Mukden Comml_ iist Party had called a meeting of factory authorities
to "popularize the multi-knife metal-cutting device."
IDEOLOGICAL, ADJUSTt ENTS
Schools and `Teachers, Thought reform was largely neglected because of the heavy
emphasis on the anti waste, anti-corruption, anti-bureaucracy drive, attention was given to schools and teachers, with the emphasis on teachersvinghigher
institutions. Hangehow stated (10 Jane) that the East China Study Committee held its
first meeting 9 January to discuss thought reform., and will start its program with
the colleges and universities of Shanghai.
Shanghai said the same day that teachers in higher institutions of Tsinan started a
thought reform program, in November. Sian announced (11 Jan.) that delegates from
local institutions of higher learning met to discuss the program, 7 January, Peking
announced in numeral code (11 Jana) 'that teachers in Chungking higher institutions
had launched their thought reform drive "with enthusiasm,"
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Wubsi said (12 Jan.) that 53 students of the Kiangsu Medical College, Chenchiang,
sent a letter to the SU N JIH PAO calling for thought reform in the college teaching
staff, "Stubborn professors were warned to change their attitudes" Wuhsi earlier
said (11 Jan.) that the Kiangsu School of Fine Arts called a meeting to discuss
thought reform among the students, too many of whom are interested in luxury,; and
"adhere to American ideals of materialistic comfort." Another &luhsi broadcast (20 Jan.)
reported that, the South Kiangsu Normal School held a meeting to consider thought reform
among Mahe teachers, who were urged to "study Liao Tse-tung's theories."
Yangchow announced (11 Jan,) that the Culture and Education Committee of North Kiangsu
held a symposium on thought control, with 60 persons present, which decided that in
1952 the 'thought reform movement must be carried out to the 3,000 middle and 30,000
primary school teachers in north Kiangsu, "so as to wipe out the lingering influences
of serialist and feudalistic thought and establish the conception of serving the
people." Yangchow said (12 Jan.) that student and youth organizations in north
Kiangsu had issued a joint statement calling on their membership to support thought
reform.
Hangchcw reported (15 Jane) that the local Civil Affairs Department had called on all
high schools to accept students from the rural areas, even if they were not up to
the entrance r?equir?ements. No explanation was given of the reason for this order,
Peking's home service network announced (20 Jan,) that the Central Government
Administrative Council had approved a directive raising the pay of primary school
teachers. Peking in numeral code (16 Jan.) quoted from CHINA YOUTH on thought reform
in the schools.,- Some significant quotations from the article follow-
It is impractical to carry out the thought struggle impulsively
if circumstances still are not matured for such a movement. In
broadening the thought struggle among schools, it is necessary
to avoid letting it become a form without substance .... Youth
Corps camittees and student associations in each university should,
under the leadership of the Party, endeavor to understand the
trend of thinking among the students and settle related problems
That the thought, struggle should become a far-reaching movement
among primary and middle schools and in the cities is a wrong
attitude ?a Patriotic education among the middle schools
hinges on the thought reform of the teachers. (Peking,
Numeral Code, 16 Jan.)
Winter Schools. Nanchang reported (20 Jan.) that winter schools in the First and
Sixth Chu of T mghsiang Hsien, Kiangsi, had a successful season with 3,419 students
in 66 schools. Sian said (15 Jan.) that 354,000 peasants attended the schools in the
Northwest, where "the principles of land reform were taught." Wuhsi reported
(17 Jan.) a successful conclusion of the winter school program with inauguration of
"gnewspaper reading classes for the indoctrination of the peasants o" Chungking said
that south Szechwan had a good winter school program, with 40,000 enrolled, "after
an intensive propaganda campaign."
Emphasis here was placed on teaching Soviet culture "in order that the masses could
have a glimpse of their future happy life." Shanghai announced (14 Jan.).that
10 million farmers attended winter schools in Shantung, Fukien, and Anhwei. The
15 million in East China far exceeded expectations. "Cost of the schools was cared
for by the farmers' sale of supplementary products." Yangchcwr said (15 Jan.) that
the Huaiyin People's Government had called for a list of model winter school
administrators, teachers, and students so they could be honored.
Hangchow announced (10 Jan.) that the 150 students enrolled in the winter schools
of No, 2 Village, Tayuan Hsiang, Kiangshan Hsien, Chekiang, had "issued a challenge
to other schools on their record of good behavior." This is of special interest in
view of the report from Yangchow (19 Jan.) that in Shihkang Chu, Nantung, Kiangsu,
corporal punishment had been inflicted on students for absence or late arrival,
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"arousing the, dissatisfaction of the people," Hofei (20 Jan.) clarified further the
evidence of resistance to the winter school program by reporting that in two administra-
tive districts of north Kiangsu, cadres "forced the peasants to enter the winter
schools without proper propaganda>" Those who did not enroll were punished, and
Militiamen were posted around the schools to "force the students to study." The
broadcast added that "the peasants protested."
Re _i-viot,s Countermeasures Widely scattered attempts to oust foreign Catholics from
China, take over missionary institutions, and infiltrate ane control the local
chinches are still reported. Peking reported in numeral code 13 Jan0 , ""
lay Catholics" in Taiyuan had accused Italian nationals Archbishop Li Lu-chia, Sister
Tsui Yu-1i, Fathers Ku Kao-loh, Teng Ya-i, Peng Yu-ling, Tsai Loh-seng, and Tao
Tien-chueh of organizing the subversive Legion of Mary. Police searched two Catholic
churches and found small mss, ammunition, and radio parts a
On. 24 December, 330 Taiyuan Catholics organized a committee to support the three-point
reform independence movement under the leadership of Chen Sui, Tsao Tao-?chien, and
25 others. Vice Bishop Ho tai of the Taiyuan Diocese addressed the meeting, saying
he would reform himself and support the movement, in addition. to expelling Fan Lan?wang
and other counterrevolutionaries from the church, The meeting also adopted a member-
ship oath and petitioned the People's Government to permit the association to take
over the Joseph and Tung Erh.- kou hospitals and the Ming, aan, Chiala, and Hsinglojanti
missionary schools
Hangehow reported (12 Jana) that "imperialist`" Mel Tsang-kwei was indicted for
subversive activities at a rally attended by 400 under the chairmanship of Tsao Mao-kun,
The crowd, composed of Catholics, Protestants and Buddhists, and including People's
Assemblymen H?u Hai-,chow and Liu Chia -fang, heard Chow Su..ying and Li Yung-hsin accuse
11
Mei of organizing the Legion of Mary and opposing the Cath
olic Reform. Movement.
Sian said (15 Jan,,) that, Catholics in Shensi Province had organized a reform committee
to ""drive out imperialist elements masquerading as religious elemrments e" The People's
Court ordered the banishment, of. two imperialist elements and imprisonment of their
""running dogs." Sian announced (19 Jan,) that six study groups for thought reform
had been set up by 2.40 Catholics of Ping Ling Church, Lanchow City. Thirty patriotic
Catholics reported.a number of imperialist elements in the Church, and several cases
of criminal activity were discovered during the study.
I'roxsa arsda IetXork n Chinchow reported (11 Jan.) that 59 percent of the Communist Party
subcoamittees in Liaosi Province have established propaganda networks The Province
now has 82,515 propagandists and 1,659 reporters, "The policy for 1952 is to
further expand and consolidate the propaganda network," Peking announced in numeral
code (13 Jan d) that there are 4,100 rural propaganda and instruction stations in
Hopei Province, with the stations regularly giving two lessons a month to propagandists.
Propagandists in only two of eight adjacent villages could study regularly before
establishment of the Kengchuang.chiao Instruction Station, Third Chu, Ningchin, Now all
eight villages are in reach. Wuhsi announced (16 Jan.,) that Communist Party cadres
in Ihsirig Hsien, Kiangsu, have organized 700 newspaper reading programs to promote
political education among the peasants. Canton. (20 Jana) quoted the Swatow City
Party secretary as saying, "reactionary elements in the city still are resisting
demmocrats c progress,'" and calling on all cadres to wipe out feudalistic thinking.
Special 11'oups. Canton announced (15 Jana) that the Canton chapter of the China
Medical Association called a meeting 23 December to discuss thought reforest among
medical workers, A resolution was passed to send letters to medical workers in Hong
Kong and Macao calling on them to carry out the teachings of Mao Tse-tung,
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Nanchang reported (18 Jan.) that the Militia in Huihsin Hsien, Kiangsi, was spending
"day and night" in self-inspection to correct the thinking of the individuals. Cadres
who formerly took no interest in politics now are "active elements."
Mukden announced (14 Jan.) that 2,000 Youth Corps members in local classes and 700 in
Harbin had received indoctrination in the theories of Mao Tse-tung. Yangchow reported
(12 Jan.) that the North Kiangsu. Committee for the Study of Mao Tse-tu:ng ? s theories
was organized recently, and will work in Nantung, Yangehow, and Taichow Hsien, first
indoctrinating the city masses and then moving into the rural areas. This frequent
mention of Mao Tse-tung's theories, to the exclusion of "Marxism-Leninism," could
indicate a new emphasis on the revolutionary problems peculiar to China, as the
common quotation in the past has been "Marxism-Leninism and the theories of Mao
T se -tung ."
RURAL REFC RtE
raage Law. A marked drop in radio time given to the new marriage law is noted, but
s probably results from the greater stress placed on the anti-corruption drive.
There is no evidence that it indicates a significant change in policy. Hangchow
reported (10 Jan.) that 19 marriage oases were adjudicated and three prison sentences
meted out when the People's Court of Wenchow and the Women's League held a meeting
attended by 80 cadres and 200 spectators. Wuhsi announced (17 Jan.) that the radio
talks on the marriage law by personnel of the People's Court had been continued
"because of popular demand."
Wuhan reported (18 Jan.) that the Kwangsi Province People's Court reviewed one
marriage law case "upon the demand of the people and orders of the Central and South
People's Court." When the case was reopened, Ho Teh-chung, Laiping Hsien, accused
of causing the suicide of his wife, Pan Tse-lai, was given a long jail sentence
His land reform ;padre accomplice, Liang Yu-keh, was given a one-year sentence in
place of the original 6 months. Chinchow reported (14 Jan.) that cadres had been
sent into the villages of Faku Khien, Liaosi, to explain the marriage law, "as many
feudalistic cases were found to exist." Older people at first refused to accept the
law, but were enthusiastic after indoctrination.
Foochow complained (20 Jan.) that many peasants still do not understand the significance
of the economic advantages of the new marriage system. Therefore all leading cadres
in the chu and hsien were ordered to step up publicity in such a way as to lead the
peasants to invest in increased agricultural production the money saved on marriage
ceremonies. Nanchang said (20 Jan,) that in Wanshou Hsiang, Yukan Hsien, Kiangsi,
there was aT y a vague understanding of the marriage law, and little attention was
paid to it. Divorces were illegally hindered, and the parents of one 16-year-old
youth secretly arranged his marriage in violation of the law. All local governments
in Kiangsi were warned to take action against violations.
Land Ref"orx n Wuhan announced (11 Jan,) that the land reform program in Kwangsi
Province would be brought to a close at the end of the month with completely success-
ful results and the final overthrow of feudalistic landlords. The broadcast added
that a landlord in Hsiang 16, Chu 14, Lo Jung Hsien, had been arrested and his 20 guns
and 10,000 rounds of a mr"xnition confiscated.
Nanchang announced (19 Jan.) that Militia Captain Fan Yu-sheng, Kuxigping Hsiang, had
exposed local landlord Pan Chung-tao, who had hidden his wealth. As a result, a
campaign to expose landlords was being revived in rural areas "where landlords
supposedly were liquidated.'" On 22 December farmers in the Seventh Chu, Nanchang
Hsien, Kiangsi, held a struggle rally against local landlords. Landlord Yen Mi-ling
was accused by his son of oppressing peasants.