CPW REPORT NO. 10-A - COMMUNIST CHINA (FEB. 18 - 24, 1952)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000200090011-8
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 19
• Document Creation Date: November 16, 2016
• Document Release Date: August 27, 1998
• Sequence Number: 11
• Publication Date: February 24, 1952
• Content Type: REPORT

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CPW Report No. 10-A -- Communist China
(Feb. 18 - 24, 1952) ,
DATE PtTBLISFFD:
SOURCE- Monitored Broadcasts
THIS IS UNEVALUATED INFORMATION
ANTEIIASTE,. ANTICORRUPTION, ANTIBUREAUCRACY ....... 1
RESISTANCE TO DRIVE .............................. 6
CASES OF CORRUPTION .....................?....,... 10
ECONOMIC WEAKNESSES .............................. 16
IDEOLOGICAL,ADJUSTINT ........................... 17
LAND REFORM ...................................... 17
NATIONAL MINORITIES ................. ..... 18
MISCELLANEOUS ......... .......................r?.? 19
ANTIV"IASTE, ANTICORRUPTION, ANTIBUREAUCRACY
Promotion of Drive . New promotion methods still were being adopted to hold the
interest and spur action in the Nation-wide drive of the Chinese Communists to wipe
out corruption in public offices and private business. Hangchow announced (Feb. 22)
that more than 80,000 workers, students, shopkeepers, and others listened to an
"on-the-spot" broadcast of a confession and accusation rally at which 20,212 cases
of corruption were reported, many by phone or messenger. Kunming reported (Feb. 23)
that a local rally would be broadcast Feb. 24 at 7t30 p.m. Wuhan said (Feb. 21)
that since setting up Post Office Box 170 for receiving accusations, Central and
Couth China Deputy Chairman Teng Tzu-hui had received 734 reports, which he had
handled personally or turned over to his staff. Wuhsi announced (Feb. 22) that the
South Kiangsu People's Consultative Committee had set up Post Office Box 3 to
receive accusations against businessmen who cheated in filling contracts for supplies
for the Chinese Volunteers. The same radio said (Feb. 23) that since setting up a
reception office and information box the South Kiangsu Supervisory Committee had
received 169 reportst all of which had been investigated.
Taiyuan reported (Feb. 18) that the SHANSI JII-I PAO had carried numerous letters rom
readers concerning the drive. Hangchow announced (Feb. 21) that the CHECHIA?G JIH
PAO had received a letter from the Hangehow Volunteer Medical Corps urging an
intensification of the drive. Hofei reported (Feb. 21) that the. local Youth Corps
had sent a letter to Mao Tse-tung concerning progress made. Canton announced (Feb. 19)
that the Canton Government had issued cards to be carried by anticorruption investi-
gators, with all factories and stores obligated to assist bearers of the cards.
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Canton said (Feb. 19) that the local Chungshan Library had enlarged its reading
facilities in order to promote the drive, and had literature on the subject from all
parts of China on display, as well as clerks to answer questions. Canton said (Feb. 2)
that the Canton Austerity Committee had organized a liaison section to coordinate
accusations against corrupt elements, and all accusations must in the future be
handled through this office. The same radio said (Feb. 18) that local banks, includ-
ing Chungkuo, Shanghai, Kuohua, Chungnan, Chincheng, and Yangcheng, had changed
banking hours to 11-4:30-Monday through Friday, and 10-12:30 on Saturday, to
coordinate with the anticorruption drive.
Mukden announced (Feb. 21) that as part of the drive workers in the Shu Yu-hai
Brigade had carried out safety measures in the Anshan Colliery. Dairen said
(Feb. 18) that two facts had been learned from the drive: If a factory worker owned
a shop or was a former merchant he should be investigated thoroughly; and "by first
getting hold of the tiger's tail, the tiger can easily be uncovered." Shanghai
said (Feb. 21) that Tsinan had carried out the first stage of the "Five Anti's"
campaign, inspection, and had obtained information on graft, tax evasion, speculation,
cheating, and stealing of information, from 117 factories and business firms, showing
loss to the Government of 117 billion yuan. Now it was time to approach the second
stage: "Down with the propertied class." The same radio reported (Feb. 22) that
in Amoy 46 street union anticorruption committees had been organized, with 80 per-
cent of the people receiving indoctrination. Women had been especially urged to
expose their husbands' corrupt acts, and Yu Chi-ying, a housewife on Tatung Road,
had exposed her husband for tax evasion, answering his protest that he might have to
go to prison by saying she willingly would go with him "but could not permit the
Government to be cheated." Hangchow reported (Feb. 181 :that at a 3-day meeting of
Chekiang cadres Party Secretary Kuan Cha declared that."State industries are a
great source of corruption, and no effort should be spared to clean them out."
Yangchow asserted (Feb. 23) that the newspaper published by the North Kiangsu
General Merchandise-,Company had forced several major corrupt elements to confess.
When Secretary Yu Yang-chu refused to expose major corrupt element Hsu Ying because
of his own misdeeds, some of the 24 propaganda workers and 96 reporters in the company
exposed Yu through the newspaper, bringing the matter to the attention of the lead-
ing cadres. Wuhsi reported (Feb. 21) that in Soochow, where corrupt elements had
been given until Feb. 27 to confess, several meetings had been called for an
"exchange of experiences in tiger hunting." Nantung declared (Feb. 18) that,
though 285 tigers had been arrested in the,Nantung Special Administrative District,
29 of them large ones, "An all-out offensive, more raging than before; soon will
be started." Wuhan announced (Feb. 22) that cadre Li Huan-chen had been called to
the office of Party Secretary Teng Tzu-hui to "receive a commendation for his
excellent work in making accusations against corrupt Government officials."
Chungking reported (Feb. 19) that in Luhsien the Government assisted "noncorrupt
merchants" in organizing workers emergency control committees "to take over the
stores and factories of corrupt merchants." Peking said in numeral code (Feb. 20)
that the Nanking Austerity Committee had persuaded wives of proprietors in the iron
and steel machinery trade to "advise their husbands to confess."
Confessions and Accusations. Many reports of confessions and accusations were
broadcast, but fewer details were given concerning confession and accusation rallies,
especially the number of persons attending. Chinchow reported (Feb. 22) that Chien
Ching-wen had accused his brother-in-law of tax evasion on 11 million yuan worth of
drugs handled, and had urged his sister to confess to other tax evasions. Hangehow
announced (Feb. 18) that at a rally in the Chinhua Special District, Chekiang, on
Feb. 18 announcement was made of the capture of eight tigers and 33 corrupt elements.
Hangehow reported (Feb. 22) that at a rally attended by 15,000, and broadcast
locally, 30,000 accusations were made, bringing the total for the campaign to
110,000. Corrupt merchants W Vang Te-fu, Tu Cheng, and Ma Ying-chai were arrested
"upon the demand of the people," announcement was made that Kung Chi-tai, Shen
Chen-ju, Chin J'ih-hsiang, Chou Shi-lo, L3 Kuei-seng, Chu Chia-ying, Ching Peng-fei,
and Chang Pao-hung were being investigated, and Mayor Wu reported that the confession
deadline for merchants had been extended 10 days.
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Huainan announced (Feb. 19) that at a rally in the Huainan Mining Administration
Hall, Shen Li-ping, director of the local reception center, confessed to minor
corruption, but in the face of accusations increased the total of his corruption by
several million yuan. Huainan said (...2) that the Mining Administration supply
office held a rally Feb. 20 to accuse. employees Ivan Yang-chu and Chang Wen-chu of
receiving bribes and conniving with corrupt merchants to defraud the Government.
Yangchow announced (Feb. 22) that the people of'Chenchiapa, Nantung City, held a
rally Feb. 18 to accuse grain merchants Yu Chi-fu, Hu Te-li, and Chaff Wen-wei of
conniving with the Grain Bureau to defraud the Government of 86,654 catties of grain.
Wuhsi announced (Feb. 20),that at a rally in Soochow attended by 3,000 Li Ying-wei,
Chu Chia-chien, and Yang Kan-shen were arrested; minor corrupt elements Chang Tung-yao,
Chu Kung-pu, and others were pardoned after complete confessions; and Mayor Wang
announced extension of the confession deadline to Feb.. 25. The sap radio said
(Feb. 21) that at another Soochow rally Chang Li-neng, owner,of the Yachou Pharmacy,
confessed to corruption and was pardoned, while merchants Ling Shao-i and Ke Ping Yuen
were given 2 days more to make complete confessions, Wuhsi-announced (Feb.. 23) that
the South Kiangsu Supervisory Committee had received 169 reports of corruption, all
of which had been processed.
Wuhan announced (Feb. 21) that 5,000 persons attended a rally in Nanchang Feb. 15 to
hear merchants Shen Han-ping, Ma Ching-han, and Ling Ssu-chuan make full confessions
and receive pardons "after exposing other corrupt elements.." Canton announced
(Feb. 18) that the Canton Women's League held a rally and organized teams to call on
corrupt elements to urge that they confess. Sian reported (Feb. 22) that the local
People's Consultative Council called a rally Feb. 21 "to urge the people to support
the cadres" in the drive. Kunming reported (Feb. 18).that in Chaotung Hsien,
Yunnan, all cadres had organized to urge corrupt elements to confess "and expiate
their crimes by making accusations against other corrupt elements." Cadres in the
Chaotung Food Bureau had intensified their attack on corrupt merchant Wang Wen-an
"because he refuses to confess." Kunming announced (Feb. 20) that Cheng Hsiao-hua,
manager of the Hung Chang Pipe and Electrical Supply Company,. had been pardoned when
he "made a complete confession and exposed others."
Chungking announced (Feb. 18) that accusation rallies were being held in all hsien
of the Peipei area, eastern Szechwan, with merchants who had evaded confessions being
"rounded up for punishment." A rally had been called for Feb. 20 for confessions
and accusations from among military personnel in the Southwest Military District.
Chungking reported (Feb. 19) that Luhsien merchants in 55 of the 72 trades had
organized a team of 130 cadres to check on corrupt merchants, and that several
corrupt elements had been arrested. Altogether, 1,100 cases of corruption, amount-
ing to 28 billion yuan, had been reported in Luhsien. In southern Szechwan tiger-
hunting teams had uncovered several corrupt elements who were "leftover Kuomintang
employees and businessmen," while in western Szechwan several public employees
engaged in corruption, "who were remnant Kuomintang workers," had been detected.
Rallies had'been held in Yaan and Tienchuan Hsien, Sikang, with a number of major
corrupt elements exposed, while the drive had made progress in the national minority
areas of Sikang and Yunnan.
Workers yVersus Emulovers,. The organization of shop clerks in opposition to their
employer merchants has continued, but has been expanded to take in other worker
groups. Anshan announced (Feb. 18) that the Anshan Federation of Labor had called
a meeting of 1,700 shop clerks Feb. 16, at which 42 clerks exposed.corruption of
their employers and attempts'bythe merchants to bribe them. Tiger-hunting teams
of the Hangchang Iron Works, the Chienkuo Iron Works, the Hardware Trade, and nine
other groups, challenged each other to an accusation contest. Dairen reported
(Feb. 23) that, after hearing speeches by Chinese Volunteers from Korea, workers in
the Dairen Railway Bureau had stepped up their drive. Shanghai announced (Feb. 18)
that at a Techou rally Feb. 11 numerous workers mounted the platform to make
accusations.. Shanghai said (Feb. 20) that 2,000 workers in silk shops held a rally,-
heard a report that shop clerks in Shanghai had reported 246,000 cases of corruption,
and listened to Mayor Chen I praise the workers for their part in the drive.. Shanghai
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reported (Feb. 21) that the Wuhsi Federation of Labor had held a rally of^2,000
workers Feb. 20 to promote the drive "among workers in all trades."
According to Hangehow (Feb. 18) transport workers in Wenchaw held several rallies
and organized committees to go.after "local smugglers and corrupt merchants."
Workers in the Hangchaw machinery trades attended a rally to hear reports from
Wang Yu-ching and Tang Chin-ming of the Yungii Machine Works that the various trade
unions in the area had reported 4,330 cases of corruption. Hangchow announced
(Feb. 19) that all Hangehow workers had organized 22 inspection teams and had made
50,000 accusations.. The same radio said (Feb. 23) that in the Chekiang Transportation
Company three tigers had been caught. Wuhsi announced (Feb. 19) that in.Soochow
the local government had issued a directive prohibiting merchants from closing their
shops and demanding that they furnish pay and food regularly to their employees.
Wuhsi (Feb. 21) quoted the SUNAN JIH PAO in attacking merchants for bribing cadres
and calling upon the workers to intensify the drive. The paper reported that it had
received letters from workers accusing shop owners of evading taxes and bribing
cadres.
Canton announced (Feb. 18) that workers in local factories were preparing reports
on tax evasion and cheating on labor and materials for the next rally.. Clerks in the
San Hsing Hotel accused the manager of evading taxes and bribing cadres. Canton said
(Feb.. 20) that the manager of the Chungnan Flour Mill confessed to cheating on
Government contracts when faced by accusations from his workers, with his confession
leading to other revelations of corruption. Taiyuan reported (Feb. 22) that the
SHANSI JIH PAO carried articles on the "attack of the capitalist class. on the working
class," and exposed cheating in contracts for hospital beds by local metal factories,
Kunming announced (Feb. 23) that families of workers in the Yunnan Electricity Bureau
had joined in the anticorruption drive and sent in 30 accusation letters. Kunming
said :(Feb. 24) that Party Secretary Ma Chi-kung had called upon workers in Kunming
power plants to expose their employers.
Dairen asserted. (Feb. 21) that shop clerks in the area had intensified their drive
after learning of cheating on Government food and supply contracts. Shanghai reported
(Feb. 22) that in Nanking 140,000 letters had been sent in accusing merchants. In
Tunchi City, Anhwei, 240 letters accusing merchants were received during the first
20 minutes of a rally, and 117 deceitful merchants" arrested on the spot. Hangchow
reported (Feb. 19) that in Ningpo a five-point Government directive on tax. evasions
had "received the. wide acclaim of the city's shop clerks." Hangchow- said (Feb. 20)
that in Hangehow 4,000 cases of law-breaking merchants had been exposed in 5 days.
Kaifeng reported (Feb. 19) that in Fukou, Honan, a letter from shop clerks accused.
merchant Yen Yu-ling, owner of the Hochi Shoe Shop, of corruption, evasion of taxes,
and the holding back of workers' wages.
Yangchow announced (Feb. 21) that the Nantung Shop Clerks Union had sent' a letter to
Mao Tse-tung expressing determination to make the anticorruption drive a success,
and had issued a challenge to shop clerks in Tientsin to beat their record of 4,600
accusations. Wuhan reported (Feb. 22) that at a rally to accuse merchant Tung
Chi-ching of fraud, clerks in. 397 stores made accusations against their employers.
Canton announced (Feb, 19) that the magazine KWANGCHOU KUNG JEN WEN I had issued a
special edition "for the benefit of shop clerks engaged. in the drive," Canton
announced (Feb. 20) that local shop clerks had expressed their support of the arrest
of corrupt merchant Chang Tung-zning, accused of evading taxes and threatening clerks
who exposed him, and had made 3,000 accusations against merchants in 10 days. In
Swatow the shop clerks made 33,900 accusations, more than 80 percent of those made
by workers, and had "organized teams to convert other workers" to intensifying the
drive. Canton announced (Feb. 24) that 50,000 local shop clerks had accepted the
challenge of the Tientsin.clerks. Shop clerks in the Western medicine trade accused
Su Chung-chuan, assistant manager of the Huanan Pharmacy, of evading taxes, selling
false drugs, and making excessive profits.. He was arrested.
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Chungking reported (Feb. 18) that clerks at a rally in Yueh Chi Hsien, northern
Szec uan, accused merchant Liu Yung-chi of corruption amounting to 360 million yuan,
leading to his arrest. Chungking said (Feb. 24) that in Kweiyang, Kweichow, the
Austerity Committee had called upon shop. clerks to accuse. merchants., with the result
that inspection teams were organized and the Chungnan Rubber Works was charged with
defrauding the Government of 37,700 yuan on a contract to process 40 tires. Chungking
reported (Feb. 24) that in Kunming 1,000 accusations have been made against merchants
by shop clerks, and special tiger-hunting teams had been organized.
Slor~tcomi n s of the Drive. Mukden announced (Feb. 18) that the Sungchiang Party
Committee had issued.a statement,, calling on workers "not to decrease production
durin the drive," and outlining a procedure for assigning to definite cadres the
respQ1si_bility for seeing that major projects are carried out on schedule. The
TUNGPEE JIH PAO carried an article calling upon workers to "continue their production
norm" during the drive. Mukden pointed out (Feb. 19) that '?in spite of the efforts"
spent in the anticorruption drive, Mukden Factories Number 106, 161,and. 193 overful-
filled their January quotas. Dairen asserted (Feb. 23) that "cadres with rightist
thoughts in the Dairen-Port Arthur Transport Bureau have overcome their errors in
thinking and are,.intensifying the drive." Tsinan reported (Feb. 19) that the local
Party Committee had ordered the arrest of corrupt elements, and at the same time
called upon cadres to "increase their efforts in the antiwaste, anticorruption, anti-
bureaucracy drive and not hesitate because of ideological misconceptions."
H .ngchow announced (Feb. 18) that the Chekiang Austerity Committee had issued a
directive pointing out that "production should not stop" in the course of the drive,
and cited the "case of the Hangchow City Transport Company, which ceased operations"
as a result of.the drive, as well as the Chekiang General Merchandise Company and the
Chekiang cooperative organizations, "which stopped taking soap from the Tungaan
Soap Company because of the antiwaste, anticorruption, antibureaucracy drive, causing
the latter to pile up an inventory of more than 10,000 bars of soap." Cadres in
Chekiang Government offices were urged to intensify their efforts, "as many cadres
.thought their offices already were cleared of corrupt elements," though the Chekiang
Department of Construction uncovered 38 cases of corruption involving 100 million
Yuan or more. In the Hangchow department stores 1,100 shop clerks signed the ' Tlu
Fan Compact" to. support the drive, "though many senior clerks held back for various
reasons" prior to indoctrination. More than 250 workers attended the Construction
Workers Union indoctrination class, where they were told to "overcome their hesitancy
in exposing corrupt elements and to have no fear of their foremen." Hangchow said
(Feb. 19) that the Chekiang Party Committee had called'a meeting of cadres to plan
the drive in publicly owned factories, where "workers claim there is no corruption,"
but actually "there is a great deal of it." The Chiahsing Party Committee called a,
meeting and told cadres "to overcome their hesitancy." Hangehow declared (Feb. 23)
that prior to the Feb. 22 rally clerks who "thought that the drive had. gone. far
enough" changed their minds. "They now know the tricks of-the capitalists and are
determined to wipe them out.,,
Hofei: reported (Feb. 19) that Government organs in Anhwei held a meeting Feb. 15 at
which cadres were "warned against taking a bureaucratic attitude and accepting the
blandishments of capitalism." Huainan said (Feb. 18) that the local Party Commmittee
"reorganized 150 cadres" Feb. II, charged them with laxity, and "instructed them to
correct their thinking and drop their bureaucratic and self-righteous attitude."
Yangchow reported (Feb. 18) that the North Kiangsu Administrative Office had its cadres with laxity because they "felt that the drive had gone on long enoug,11 with
the arrest of a few tigers." They were organized and "told not to stop their Lig:er
hunting without orders to that, e f fect ." Yangehow said, (Feb . 21) that at a Nantung
rally of shop clerks, "cashiers, accountants, and senior clerks, were called upon
to join the drive.'' The same radio reported (Feb. 22) that the Huaiyin Party
Committee called a.cadre meeting Feb. 17, attacked the cadres' laxity, and urged
them to "correct the errors of their thinking,." Yangchow announced (Feb. 23) that
the Yangchovr branch, North Kiangsu Transport Company, held a rally to "overcome
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the rightist thinking among the cadres and their complacency." Nantung reported
(Feb. 24) the shop clerksfi rally to urge senior clerks to join the drive, and mentioned
the case of Yu Yu-ling, an old bookkeeper who "at first refused to accuse his employer
because of past favors, but now has corrected his thinking and is making accusations."
Wuhan announced (Feb. 18) that 200 cadres had attended a rally called by the Party
Conanittee, when "cadres were urged to overcome their hesitancy and remnant capitalistic
thinking," and to "resist the blandishments of capitalists and fearlessly attack major
corrupt elements.", Wuhan said (Feb. 19) that shop clerks in Changsha had organized
teams to "urge accountants and other senior clerks to make accusations." Canton
asserted (Feb. 24) that in the textile mills workers were attacking the.capitali.sts,
and "senior workers who have rightist thoughts are being reformed."
Sian declared (Feb. 19) that several local cadres who "had been hesitant about making
accusations have overcome their fears and are prepared. to make accusations against
merchants who bribed them." In Sinkiang the Government offices held a rally where
"all cadres were called upon to change the error of their thinking that the drive
has gone far enough and it is now time to relax." In the Tihua branch, People's
Bank, several tigers recently were exposed,. Sian reported.(Feb. 20) that in Shensi
Province a meeting of hsien committee secretaries was held, where cadres were told
to "overcome their laxity." Sian said (Feb. 24) that the city government had
announced lenient treatment for "law-breaking merchants in 21 stores and factories,"
and that "after hearing this news, people of industrial and commercial circles in
Sian enthusiastically expressed their determination to support the five-anti's
movement . "
Chungking complained (Feb. 18) that peasants in Lungehang Hsien, Szechwan, were
extravagant in their living habits, and that, "because of the laxity of local cadres,"
farmers were wasting hundreds of millions on feasting and celebrations. "Even the
Farmers Association regularly holds feasts." The same radio said (Feb. 19) that in
a number of hsien of Kweichow and northern Szechwan food was wasted.during the spring
festival and is regularly wasted at wea(iings Kunming reported (Feb. 24) that the
Y nnan Military District Party Committee called-a meeting, when it was pointed out
that "many offices are bureaucratic and not fully promoting the drive." Cadres were
urged "not to pass over the drive lightly," and to take the lead in exposing tigers.
RESISTANCE TO DRIVE
Capitalist Infiltration. Peking in numeral code (Feb. 18) announced the arrest. of
Ti Hua-feng, engineer, and Mao Ching-pu, acting chief, of the production enterprise
section, Anshan Government; Chang Tzu-ming, manager, Chienkuo Iron Works; Chang
Shou--i, manager, Icheng Iron Works; and Wang Shih-shan, manager, Yushan Iron dorks.
All of these r-c;n were involved in the organized stealing of more than 10,bill5.oti
Yuan by the "joint Production Office of the Private Smithy Trade of Anshan," an
organization., promoted by eight large iron works to crowd out small businesses and
monopolize Government...proce ?s ng contracts. When the.,Bu.1;eatt' bf*J- ndustries and
Commerce set up the production enterprise section to distribute fairly proces inv
contracts, the eight companies first won over Mao,. then sent Ti, as well as other
of their men, including Li Mao-sham., Ping Cheng kang, and Ai Ping-kai, to i~or3... in
the section, The' men gradually won over other Government employees; Chang `."z ,