(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000200090010-9
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: November 16, 2016
• Document Release Date: August 27, 1998
• Sequence Number: 10
• Content Type: REPORT

Approved For Release 2000/04/14: CIA-RDP78-04864A000200090010-9
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Evidence was apparent that results of the present anticorruption drive, which was an
outgrowth of the original effort to increase production and eliminate waste, were in
some cases directly counter to the original aims. Several regional broadcasting
stationeNroed that "production not be decreased" during the drive, and Mukden even
pointed with pride to several factories that had met their quotas in spite of" the
drive against corruption. Hangchow singled out some cases where business activity
had come te_a complete halt as a result of the fight against corruption. Both the
East China and the Northwest China Military and Administrative Committees took the
dr action action of ordering the antiwaste, anticorruption, antibureaucracy movement
halted "until after spring farming" in the rural areas, revealing unmistakeable indica-
tions that the drive in many instances actually had cut production rather than
increasing it.
There also was a clear indication of considerable reluctance anion o some emplusees,
including shop clerks, to take part in the charges and accusations against employers.
MaillifiskiWAIgkoof clerks and workers were reported at which the employees meye, warped
to 'correct their thinking," "overcome their rightist thinking," "resist the blandish-
ments of capitalists," "overcome their hesitancy," or "overcome their fears."
Especially was this reluctance reported among the accountants and senior clerks, but
there also was evidence that the general public had lost some of its enthusiasm. Sian
reported a special meeting called by officials to "urge the people to support the
cadres" in the drive. Sian also reported that when lenieat, treatment was announced
for accused merchants in 21 local stores, there was new enthusiasm for prdmotine
the drive.
In wElfull resistance to the anticorruption drive, however, broadcasts seemed to
stress the efforts of capitalists to penetrate into State organs and win over the
assistance of Government employees. Numerous plots of businessmen to plant their
agents in Government units were reported, and numerous public employees were branded
as agenta" of capitalists. However, there were still numerous reports of pressure
exerted by businessmen on their employees to prevent exposure, and the forming of
mutuaiealliances still received considerable attention. Most of the resistance is
assume to be from the industrial and commercial interests, although there was a
growing liet of public officials accused of collaborating with the capitalists.
Several MO officials in the Wuhan City Government, including the Mayor and Vice
Mayor, were dismissed, supposedly for their "mishandling" of a corruption case in a
WuLan hospitN_ Also dismissed was the Mayor of Chiangmen, Kwanotuno, her "riohtist
thought" was said to be serious, and nothing had been done about the corrupt
practices of dishonest merchants. This Mayor had previously been reported as
dismissed, by the Wuhan radio Jan. 30, for extravagance and his "openly expressed
dissatisfaction" with the Government. Several other important officials, regret-
fully described as "old Party members," or men who "had engaged in revolution for
20 years," were dismissed because of their opposition to official policies.
A srowing tendency was noted toward playing up corruption among businessmen oepplyjne
the Chinese Volunteers in Korea, and placing the blame for failures in Karen upon
busieeemmen at home. Propaganda efforts to play up the cases reported last ee& %ele
apparent, along with a new and longer list of cases. Frequent mention was made Of
letters from the people protesting the corruption already exposed, and demaeds ror
severe punishment. Corrupt activities mentioned in the new reports were described
as "affecting adversely tie needs at the front," "seriously undermining the Chinese
Volunteers in action," "increasing the difficulties of the Chinese Volunteers," and
"seriously hindering the military transport mission of the Chinese Volunteers."
Corruption in the building of a hospital was said to have "cost the lives of brave
Chinese Volunteers, who escaped from the fiery hell of Korea to meet their death
at home
An extension of these charges that corruption had hindered the war effort
fields el-lovas noted. Chungking reported that tents and artillery covers /ARO? for
the Amy- going into Tibet were inferior. Canton reported that in Chlanzmen, bore
the Mayor was dismissed, officials in the Resist-America, Aid-Korea Association had
embc:',1e money "contributed for the purchase of hand grenades." Announcement of
the early publication of reports on these contributions in various localities might
be openin(; the way for new charges of corruption in handling the donations.
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In the radio reports of persons arrested for corruption, big tigers seemed to predominate
this time. Big tigers were previously described as those who took 100 million yuan or
more, caused the Government to lose 100 million yuan or more, or stole Government economic
information. The prize big tiger case was that of businessmen, collaborating with
Government employees, who furnished faulty equipment and materials for the Huai River
harnessing project, "seriously and adversely affecting the prosecution" of the project.
Most of the big tigers were businessmen, but a considerable number of Government officials
were included. Among the smaller cases of corruption, Government employees predominated.
Considerable alarm at prospects of excessive drought in 1952 was apparent, linked with a
fear that spring farming might be delayed. Farmers were ordered to "intensify their
efforts" in reconstructing irrigation systems, and in one area in Shansi farmers were
reported busy piling snow on 10,000 mou of land. Broadcasting stations in the Northeast,
North China, and even in Szechwan, reflected this fear of drought. Other farm shortages
were admitted. It was reported that in northern Kiangsu rice and cotton production during
the past 2 years "almost reached" the prewar level, while in some parts of Fukien
Province 30 percent of the peasants were said to be short of food. A shortage of plow
oxen was also reported from Fukien as well as a shortage of seed.
Other indications were seen of possible difficulties in Fukien. Among all the 22
regional stations monitored during the period under study, only Foochow failed to mention
the anticorruption drive or to devote considerable attention to it. In the past no
such difference was noted. Also, a list of current prices in East China cities broadcast
by Shanghai showed only Foochow deviating considerably from the norm. Prices on all the
items mentioned were about the same in the other cities, but in Foochow, while such items
as soap, matches, and newsprint were much cheaper, such essentials as cloth and yarn,
rice, flour, salt, and edible oil were much higher than in the other cities. The
price of flour was nearly 35 percent higher in Foochow than in Nanking.
Another indication of the concern over possible food shortages in various parts of
China is seen in a Taiyuan broadcast, quoting a directive on spring farming in Shansi
which urged that potatoes be planted. Potatoes ordinarily are not considered as a
standard food crop in that area.
Considerable attention was given to land reform, with little of significance except the
continued evidence of resistance in the Southwest, where sympathy with the landlords
was noted in several instances, both in Yunnan and Szechwan. Mukden again revealed
official interest in the development of collective farming in the Northeast.
Kunming announced that the morning exercises would be broadcast at 8:30 each day
starting Feb. 21. These programs, introduced by Peking Dec. 1, 1951, with considerable
fanfare, had received rather a cold reception, and the Kunming announcement was the
first reference noted from the regional stations in nearly 2 months.
CONFIDENTI
' CONFIDENTIAL
Approved For Release 2000/04/14 : CIA-RDP78-04864A000200090010-9