INDICATIONS OF PSYCHOLOGICAL VULNERABILITIES

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CIA-RDP78-04864A000200110005-1
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C
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December 20, 2016
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May 10, 2006
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September 1, 1999
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REPORT
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. Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 CLASSIFI( 'ION ,CO SECURITY I19F" 4ATION CENTRAL 'INTELLIGENCE AGENCY REPORT NO INFORMATION FROM FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO. COUNTRY COMMUNIST CHINA SUBJECT INDICATIONS OF PSYClIOLOGICAL VULNERABILITIES HOW PUBLISHED WH ERE P BLISHED DATE CHANGE TO U CLASSIFIED PER REGRADIN~ BULLETIN NO,_r _-.. PUBLISHED LANGUAGE THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE MEANING OF ESPIONAGE ACT E0 U. S. C., 81 AND 32. AS AMENDED. ITS TRANSMISSION OR THE REVELATION OF ITS CONTENTS IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PRO- HIBITED BY LAW. REPRODUCTION OF THIS FORM IS PROHIBITED. SOURCE adtored Broadcasts DATE DIST. d-9 APR S;U NO. OF PAGES Il SUPPLEMENT TO REPORT NO. THIS IS UNEVALUATED INFORMATION CPW Report No. 16 -- COMMUNIST CHINA (Mar. 31-Apr. 6, 1952) SUMMARY .Broadcasts to the Chinese people during he week ending Apr. 6 shoved unmistakably, both %uantitatively and in subject matter, that the anticorruption drive was being brought to an end as rapidly as corruption eases could be settled. A statistical survey of regional.broadcasts disclosed that 703 news items were contained in the 148 clear news programs monitored from 21 regional stations. Of this total, 162'items, approximately 3 percent, had to do with the anticorruption drive, This compares with 42 percent devoted to the drive in the week ending Max a 9, with 58 percent in a survey made Feb. 21+, And with 63 percent Feb. 10 a AiiAZer subject now has taken, precedence over the drive, for during the week 232 news its, approximately 33 percent of the total, were devoted to agriculture -- spring cultivation., drought prevention, production quotas, irrigation, insect control, and so forth. Reports of confession and accusation meetings still were broadcast. However, the main p se of the meetings apparently was to wring confessions from businessmen who already had bee ccused and therefore must confess in order to be pardoned. Pardons were granted at most of the' meetings., although many victims were arrested because they stubbornly refused to admit their guilt. A secondary aim of'the meetings seemingly was to get businessmen who had been pardoned or given lenient treatment to join more wholeheartedly in the five-anti's drive against bigger and more corrupt businessmen-the 5 percent mentioned by the Shanghai :'Promises of reward for all-out effort to ey Mayor the previous week. xpose corruption during the drive were being fulfilled. The special People's Tribunals suggested the previous week by Peking were organized in numerous places for rapid adjudication of corruption cases. The East China Military and nistrative Committee even went further and set up a "Tribunal Inspection Committee" to supervise the work of the People's Tribunals. Another new tool for rapid adjudication was adopted by Tientsin in'the form of a "technical committee" to study cases appealed from the Austerity Committee, make recommendations, and assemble "technical data," such as "statements of accounts," to be used as evidence. In spite of severe, punishment meted out to some offenders, broadcasts also reported some astounding instances of leecy. One Hangchow businessman was pardoned when he confessed.`to corruption amounting to 83o million Yuan and refunded. the money. Other evidence of appeasement of CHANGE TO UNCLASSIFIED IAL] PER,REGRAD G CLASSIFICATION BULLETIN NO. _ a__ I Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 DATE OF Mar. 31 -- INFORMATION Apr. 6, 1952 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 CPW Report No. 16-A -- COMMUNIST CHINA (Mar. 31-Apr. 6, 1952) DATE PUBLISHED: 3OURCEa Monitored Broadcasts THIS IS UNEVALUATED INFORMATION CONTENTS ANTIWASTE, ANT~ICCORRUPTION~,7p7~ANTIBUBEAUCRACY...:.......... +1 ADJUDICATION AND ,. 7ETTLEMENT........ ...O..q.a . ..a. 2 CASES OF CORRUPTION ............. ............f..bbre.bs. ECONOMIC P '~BLEMS. ................... aq..a,..e.ee...e~a.. TWAR .. O f e g q q O O. O O. O 0 4 0 b 4. O, b.!. o. O d.. 'LAN +""+~+r~ . tl b. 0 6 6 b. O ..' . O. O O 6 O 4 O O O g 0 0 0 O O O b q~ . O O O p O f d O?? y MISCELLANEOUSOO..000...O00....OOO.bq.q.O0*00.00400b.O.. 10. UTIWASTE, ANTICORRUPTION, ANTIBUREAUCRACY onfessions and Accusations. Dairen reported (Apr. 2) that local hardware shop clerks were romoting the anticorruption drive by exposing corrupt merchants. Hardware merchant Chou ning-wu at first refused to confess, because he did not believe that his brother, Chou ei-Chien, had exposed him. Hardware merchant Li Kuo-thing refused to confess until he was Kposed by his accountant, Cheng Chi-vu. Tsinan announced (Mar. 31) that several persons were ardoned after they made full confessions and returned their embezff1ed funds at a rally of the 3inan branch of the China Department Store. Two corrupt elements were arrested when they Bfused to confess. Tsinan added (Apr. 4) that the Government in Hsite Hsien,_Shantung, ailed a rally Mar. 30, when several corrupt elements were pardoned following confessions, file those who refused to confess were arrested. aanghai announced (Apr. 1) that 3,000 persons attended a rally called liar. 31 by the Shanghai A.sterity Committee "to conclude the first stage of the drive and start the second." Workers dd clerks were urged to "intensify their efforts and not relax until all corrupt elements are Dunded up." -Nanchang said (Apr. 3) that a rally was held in Chintecien City, Kiangsi, Mar. 26, ten several minor grafters were pardoned and six persons were arrested for refusal to confess. than reported (Apra 3) that the Wuhan Bureau of the Construction Austerity Committee had -ganized women cadres and dependents of workers to uncover evidence against ,corrupt elements. Than said (Apr. 6) that 20,000 workers attended a rally to hear members of the Chinese ?lunteers accuse corrupt merchants of defrauding the Government on Army contracts and to -ar clerks make accusations against corrupt shop owners. Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 ...y CONFIDENTIAL - 2 - '""capitalists" was apparent. Tientsin Mayor Huang Chin in a public statement warned that the drive "was not aimed to destroy private enterprise," spoke of the danger of "wounding friendships with heated accusations," and suggested that corrupt merchants might even be friends rather than enemies. A''new note injected into anticorruption drive broadcasts was the effort to regain funds taken from public organizations by corrupt elements. Peking outlined a Central' Government directive calling for "restitution in principle," and repayment of funds, or even promises to repay, went a long way toward gaining lenient verdicts for offenders. Cadres were urged to see that corrupt elements repaid stolen funds, a new angle, for, as Wuhsi explained, "Many of the cadres had stopped when corrupt elements confessed, failing to ask for restitution." Though concentration on businessmen was apparent, several important cases of corruption among officials were noted.. Hangchow told of a 10-year prison term for one official who embezzled Resist-America, Aid-Korea donations and relief allotments for Army dependents. Wuhsi reported expulsion from the Party of a department head. who had been a Communist for 10 years. Peking said that Ho Heng-fu,, high official in the Central and South China Government, had been dismissed for corruption. Complaints of economic dislocation as a result of the anticorruption drive were heard less frequently, and claims that the drive had promoted production were made more often. However, there still was considerable evidence of dislocation. Tsinan stated that the local Railway ?ureau had sent 1,500: cadres out to "solicit business" from merchants and cooperatives. The Aaftchow Austerity Committee was quoted as exhorting businessmen "to carry on business as usual erdless of their investigative status" and-to "drop their wait-and-see attitude." State tZading companies still were reported placing orders with private business to revive trade. Tamine and food shortages also were apparent, as well as a shortage of seed for spring sowing. ganchang reported "44 percent of the villagers" in one Kiangsi hsien short of food, and Foochow, where evidences of trouble had been noted for weeks, said "relief had been rushed to 458 foodless :families" in the city's suburbs. Worry over deficient warehouses and a resulting spoilage of scarce grain was reflected in several broadcasts. With promotion of spring farming now the chief concern of the broadcasting system, some difficulties were noted. Farmers in one area failed to take delivery of fertilizer they had ordered "because they had no money." One office complained that the "peasants have not enough confidence.." Some farmers were "afraid to make loans for fear of being upgraded..," In one area of Fukien paddies were reported drying up, endangering the spring rice crop. - ikden reported a campaign to "popularize horse-drawn implements" on farms., and said that the first ones manufactured in China were now in use. Tsinan told of plans to develop a whale and seal industry off Shantung shores. Wuhan criticized land reform cadres in Hupeh for having no confidence in "poor and hired farmers," -nd. announced that a land reform exhibition in Wuhan would "demonstrate the leadership of the '''ommunist Party in the rise of the farming class." Resistance to the land reform program still ias reported from Kiangsi and Yunnan, with Nanchang describing one Kiangsi community as a 'reactionary stronghold." 'he propaganda campaign against American use of bacteriological warfare seemed to be dying out. reports of protests broadcast by the regional stations were few, and Peking made no new charges of germs dropped over China. A new type of broadcast was heard from Chungking when the names of .2 Szechwan soldiers in Korea who had been "gloriously martyred" were given, along with renouncement of their awards and descriptions of their heroic exploits. CONMENT , Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 NNW, - 2 - Canton announced (Mar. 31) that the Canton Power Bureau sponsored an anticorruption exhibition Mar. 29,in the Palace of Culture. Canton declared (Apr. 2) that workers in the rice trade were getting organized, with 19 workers in the Kuanghsing Rice Mills already busy collecting informa- tion for use in making accusations. Canton added (Apr. 4) that "because of the huge attendance," the anticorruption exhibition sponsored by the Trade Control Office would be extended for 3 days, until Apr. 7. Kunming reported (Apra 2) that Kunming shop clerks held a rally to urge "middle- class corrupt firms" to join in the drive and help assemble information for making accusations against big merchants. Accomplishments and Rewards. Anshan announced (Mar. 31) that the local. Youth Corps called a meeting to review the records of members who participated in the anticorruption drive, and honored 37, including Lan Erh, Lu Pi.-hsiang, and Wei Ke-cheng. Anshan added (Apr. 2) that the Anshan Federation of Labor held a symposium Mara 30 to "exchange experiences" and promote the drive to a "successful end." Anshan reported (Apr. 4) that 200 workers recently graduated from a "workers' indoctrination class," and a second class had been started to "reveal the attacks of capitalists upon the working class." Anshan said (Apr. 6) that the Anshan textile mills Austerity Committee had reported that women took an active part in promoting the anticorruption drive by accusing their husbands and sons,. and as a result "many active women cadres" emerged from the drive. Yu Lan-kuei made more than 700 accusations, after confessing to corruption herself, and encouraged many other women to make accusations. Chinchow (Apr. 4) quoted the local Austerity Committee as saying that 2,400 shop clerks and 130 Youth Corps members were engaged in making accusations inChinchow. Tsinan announced (Apr. 2) that the Tsingtao office of the People's Bank reported the capture of two big tigers and five small tigers during a 3-day search for nine big tigers. Shanghai reported (Apr. 1) that investigation teams in Shanghai had reported more than 60 serious cases of corruption in 3 days, including that of one merchant who hid his stolen property in an underground vault until he was exposed by a clerk. Shanghai said (Apr. 3) tlat??senior clerks were taking part in the "third attack" upon major corrupt elements, with steel trade accountants Yen Seng-yung and Weng Ming-seng exposing tax evasions of their employers upon 280 million yuan worth of business. Shanghai added (Apra 4) that workers had held a "monster parade" calling for a victorious conclusion to the second stage of the anti- corruption drive, and had been joined by "corrupt merchants who were pardoned in the first stage and have now joined the struggle" to expose other merchants. Hangchow announced (Apra 2) that the anticorruption drive had been "victoriously concluded" in the Hangkiang Textile Mills, -where Party Secretary Li Chu-cheng led the drive and brganized active cadres. A Party-worker rally was held in the mills to "accuse the leadership of bureaucracy" and urge cadres to work -with the masses to wipe out corruption. "Yangchow announced (Mara 31) that 52 shop clerks with "outstanding performances" during the anticorruption drive were initiated into the Youth Corps Mar. 27. Wuhsi reported (Apr. 1) that workers in the Wuhsien Flour Mills made 120 accusations, and that 80 percent of them joined the tiger hunt and achieved records both in tiger hunting and in promoting production. ]Caifeng declared (Apr. 3) that the anticorruption drive was being promoted in the Honan Transportation Company, the Chengchow Power Factory, the Honan Machine Tool Factory, the No. 2 Tobacco Factory, and the Honan Post Office. Kaifeng reported (Apr. 4) that 50 Kaifeng workers listened to a broadcast of the trial of merchant Li Yu-cheng and his accomplices who killed a shop clerk, and then sent a letter to the broadcasting station expressing their determination to support the anticorruption drive. 'Wuhan asserted (Apr. 3) that Canton clerks had made 100,000 accusations and "completed preliminary preparations for an intensive" anticorruption drive. The city Government had called a meeting of clerks to assure them of legal protection in making accusations. Canton declared (Mar. 31) that 296 active cadres took part in the anticorruption drive from the food processing industry and "made brilliant records." Canton said (Apr. 2) that more than 85 percent of Canton rice trade workers and their families took part in the anticorruption drive, accusing 90 merchants of "embezzling 30 billion Yuan. Canton clerks, who reported 90 percent of the corruption cases in the city, had produced 300 "active elements." Adjudication Machinery. Shanghai announced (Mars 31) that the Nanking Government. had called a meeting of all circles to make plans for organization of a People's Tribunal to adjudicate corruption cases in accordance with the recent Central People's Government directive. Shanghai Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 -3- added (Apra 1) that on Mara. 31 the East China Military and Administrative committee organized an East China Tribunal Inspection Committee to supervise the work of the People's Tribunals in the area-under the chairmanship of Wei Wen-po. Hangchow reported (Apra 5) that the city Government offices held a meeting Apr. 3 and organized five People's Courts to hear confessions and receive restitution. Nanchang said (Apr. 3) that the Kiangsi Communications Department had set up a People's Tribunal to handle anticorruption cases. On its first day the new court released seven, arrested two, and approved 61 promises for repayment of embezzled funds. Wuhan announced (Mara 31) that the Wuhan People's Court had set up a "summary court" to adjudicate corruption cases, which had granted pardons, along with confessions and full restitution, to Hu Chin-fan, Chang Nai-i, Yang Ting-kuan, Tung Tzu-yu, Yeh Chin-fu, Chou Jen-Ching, Li Wei-hen, Wang Han-Ching, Tang Wei-chin, Yeh Sou-chin, Chin Jih-ju, Yu Ken-ching, Shen Jih-an, Chao Tzu-cheng, Liang Shan-kang, Liang Shan-Chang, and Liu Yao.' Peking announced in numeral code (Mara 31) that the Tientsin Austerity Committee had ordered the'organization of a "technical committee" to assist in adjudication of violations by businegs- men,under the leadership of Wu Yen-nung and Tu Hsin-po. Subcommittees were to be organized at the chu'level, each with an office and a staff of experts. The primary function of the new committee and the subcommittees was to study appeals from the Austerity Committee, propose settlements, and present technical information, such as statements of accounts, for use by the Austerity Committee in settling cases. At a meeting of all. circles called by the Tientsin City Government, a People's Tribunal was organized in accordance with the recent Central, People's Government directive. In..addressing the meeting Mayor Huang; Chin pointed out that the anticorruption drive was intended to "reform private enterprise and Government cadres and create a new social atmosphere in order to. build a healthy State." He urged that leniency be granted corrupt merchants, warning that the drive "was not intended to destroy private enterprise," and touched upon the dangers of wounding friendships with "heated accusations," adding. "This is an internal struggle, and is entirely different from one toward our enemies." Adjudication Procedures. Anshan announced (Mar. 31) that proceedings of the Anshan Austerity Committee, with. ie adjudication of corruption cases, would be broadcast Apr. 1. Anshan reported (Apr. 2) that the Austerity Committee had declared 108 firms law-abiding, 995 "basically law-abiding," 128 semi-law-abiding, and 6 non-law-abiding. Anshan added (Apr. 3) that the managers of the Yingmi Ironworks and the Chincheng and Fucheng Furniture Shops had ?expressed their gratification" for Government generosity in pardoning them for their corrupt acts. Tsinan announced (Mar, 31) that the Tsingtao People's Tribunal had tried nine corrupt, elements, including Chen Chia-tsun, Liu Yu-sen, and Huang Kuo-chai, pardoning two after confessions and restitution,-'sentencing two to 2 years of surveil.lance;.sentencing three to 3-5 years in prison; and sentencing one to 5 years in prison for refusing to confess. Tsinan reported (Apr. 3) that the Tsingtao Austerity Committee had urged city firms to check upon each other and report violations, and said that the Workers Adjudication Committee had settled the cases of 1,090 firms. Tsinan said (Apra 6) that the various Shantung Austerity Committees were implementing the Central Government directive on adjudication of corruption cases. Shanghai reported (Apr. 1) that the Tsinan Austerity Committee had arrested 13 corrupt elements and passed sentence on 800 firms in the.export-import, construction, lumber, and furniture trades, giving most of them lenient treatments Shanghai said (Apr. 3) that the Shanghai Austerity Committee had called together 71 corrupt merchants, to inform them that they "must redeem themselves by making accusations and increasing production." The Hangehow Austerity Committee on Mar. 29 classified 122 firms as serious lawbreakers and took steps to punish them, at the same time gathering evidence to indict another group of firms. These 122 constituted 60 percent of the non-law-abiding firms in Hangchow and were guilty of corruption amounting to 400 billion yuan. Hangchow reported.(Apr. 1) that the local Austerity Committee had sent out 100 inspection teams to check on semi-law-abiding firms, uncovering corruption by 420 firms amounting to nearly a half billion Yuan. The Chekiang Department of Trade called an adjudication meeting Mar. 21, when Chen Cheng was accused of corruption amounting to 830 million yuan and pardoned when he confessed and offered restitution; Wang Shou-chang of the Construction Department saw the error of his ways, confessed, and agreed.to pay back 6o million yuan, and was pardoned; while Po Yen-po was arrested for refusing to confess and threatening those who accused him. At an adjudication meeting in Chungcheng Chu, Hengchow, Mar. 30, clerks and shop owners were asked to sign amity pacts and "work together to revive business." Wang Yang refused to confess, and was arrested for obstructing the anticorruption drive Hangchow announced (Apra 4) that the Hangehow People's Tribunal adjudicated 11. cases at a public hearing attended by 2,000 Mar. 27. Chou Tung-pao of the city Health Bureau and Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 -4- Yeh Chin-ying of the Civil Affairs Bureau were pardoned when they confessed and promised restitution. Kaifeng reported. (Apr. 4) that the local Austerity Committee had passed sentence upon 23 pharmacies and announced the pardoning of the manager of the Kuangchi Drug Store, who had been accused of corruption amounting to 140 milJ,ions selling 92 kinds of fake drugs, and bribing 4+2 cadres in 32 offices. Wuhsi announced (Mara 311 that the second batch of corrupt firms had been adjudicated in the city, with 29 semi-law-abiding firms given pardons and five given severe sentences for failing to confess. Yao Chungmseng, oil merchant, was fined heavily because he refused to confess to charges of evading 225 million yuan in taxes.. Wuhsi stated (Apr. 3) that 4,000 workers in Wuhsien held a meeting to study the Central Government directive on adjudication of corruption cases. Some workers thought the principle laid down by the Central Government "too liberal," and felt it necessary to make a careful check of corrupt merchants so none could escape punishment. Wuhan announced (Mara 31) that the Central and South China Resist-America, Aid-Korea Association had called upon all local branches immediately, to organize auditing committees to check on contributions handled by the groups, and to complete their checks by the end of May. All documents were to be sealed following inspection and reports made to the headquarters office, and all cases of corruption reported at once to the proper authorities. Wuhan reported (Apr. 1) that the city People's Tribunal for adjudicating corruption cases met Mar- 31 and passed sentence on 22 corrupt merchants. Sian announced (Mar. 31)-that business circles in Sian held a meeting to "wind up outstanding corruption cases." Peking said in numeral code (Apr. 1) that in Sian adjudication of 90 percent of the city's business firms had been completed, leaving only the non-law-abiding firms, and the task of rounding up major corrupt merchants. Sian reported (Apr. 4) that the Lanchow Austerity Committee in March disposed of 9,900 corruption cases, which included 96 percent of the city's business houses. Restitution of Funds. Peking announced in numeral code (Mare. 31) that the Central Government Austerity Committee had issued a 7-point directive on restitution of Government funds and public property by convicted corrupt elements. The directive demanded restitution in principle and set a scale for evaluation of embezzled funds and property, ordering further that funds taken from units of the Communist Party, the Youth Corps, cooperatives, the Resist-America, Aid-Korea Associations, tax bureaus, and other public organizations, be returned to the organizations. Local austerit-i committees were charged with implementing the directive, and local authorities given broad powers to adjudicated Peking in numeral code (Apr. 2) quoted from an article in'the J EN JIH PAO, "Perfect the Work of Restitution," which called upon the masses to intensify their checks on corrupt elements and see that restitution was carried out. Anshan reported (Apr. 5) that, "in order to take advantage of Government leniency," confessions and promises of restitution were made at a rally by merchants Li Wen-chu, Li Chien-ssu, Hua Chung-Shang, Tan Te-jen, Li Chang-hsia, and Wang Yao-shi. Hangchow stated (Mar. 31) that pharmacist Chang Pai-liang had promised to repay the 50 million yuan taken by him through fraud, but many corrupt elements had refused to make repayments. Therefore the State Pharmaceutical Company was making an investigation to uncover funds of corrupt elements. Hangchow announced (Apr. 1) that in the Wenchow Special District, Chekiang, Cadre Chang Kuang-yung of the People's Bank confessed,, returned the 100 million yuan taken, and was permitted to retain his posts. Nine others confessed and made restitutions, 73 offered to confess, and 127 refused. Hangchow said (Apra 5) that the city Government had issued a directive ordering corrupt elements to hand over stolen cash and valuables to the Austerity Committee, and urging the people to report any cases of evasion. Hofei announced (Apr. 2) that 54 local firms accused of tax evasions had made good their shortages by Mar. 30. Yangehow reported (Apr- 3) that the North Kiangsu Party Committee met to hear a report on the "fifth tiger hunt," which started Apr. 2 and ends Apr. 15, and to discuss the drive to seek restitution of stolen funds and Government property. Wuhsi stated (Apr. 1) that. the Wuhsien office of the People's Bank had called upon cadres to seek restitution from corrupt elements, as many of the cadres had stopped when the corrupt elements confessed, failing to ask for restitution. In some cases there had been resistance. For instance, Chen Kuen-lun's wife refused to let him repay the funds embezzled, and only after indoctrination did Yao Ta-yuan repay 300 ounces of silver and Chen Kuen-lun repay 60 ounces of gold and 100 silver dollars. Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 -5- 25X1 Sian reported (Apr. 1) that 3,000 workers and their families on Mar. 27 attended a rally called by the Lunghai Railway Administration, when 100 persons made confessions and repaid 6o million yuan in order to take advantage of the promise'of leniency made by the Sian Peoplets Tribunal. Another 1.3 billion yyuan. was returned by corrupt elements the following day. Wuhan stated (Mara 31) that in Hupeh the Farm Equipment Company called a rally Mar. 27 to demand restitution from corrupt elements. Several minor embezzlers returned their loot and exposed others, while ChengChen-hue, gave back half of the 10 million yuan he took through graft and promised.to return the remainder. Wuhan reported (Apra 5) that in the Wuhan Federation of Cooperatives 75 percent of the grafters had made restitution, while some who at first sought to evade repayment had voluntarily changed their attitude and made restitution through fear of exposure by the investigation teams. CASES OF COBRUPTION Private Businessmenm Anshan announced (Apr. 4+) that the Anshan. Austerity Committee on Apr. 3 ordered the arrest of corrupt iron merchants Hsu Te-seng and Chiang Chi-chat, who had refused to confess. Chang Tien-kuei was given 2 days to confess or face arrest. `Chinchow stated. (Apra .) that the Austerity Committee had charged nine rice-mer?chants with hoarding 100,000 tan of rice and causing the price to rise 27 percent in 1951 wfhen 600,.000 persons were suffering, from famine; had accused leather merchants of causing a Government loss of 260 million Yuan through hoarding; charged kerosene dealers with creating an artificial shortage in January 1951. by shipping out 3,300 cases of the 6,000 in stock at an illegal profit of 500 millions; and accused corrupt merchants of organizing a joint sales office for jointly bribing cadres and regularly dealing in opium, gold, silver, and other contraband goods. Tsinan announced (Apr. 1) that Tsinan tea merchants Mu Shan-then and Wang Chin-san had been arrested for forming eight tea trading firms to defraud the Tsinan branch of the China Tea Company of 9 billion yuan. Tsinan reported (Apra 3) that Tsingtao merchant Lu Shan-chang corrupted Cadre Li Chi-ehan, head of the supply section of the Tsingtao Water Works, and cheated the Government out of 500 million yuan on the purchase of supplies.. Tsinan added (Apr.. 5) that Tsingtao merchants Li Chin-kuei, Wang Chien-chi, and. Lo Chin-shan had been exposed by the local Austerity Committee after an investigation of 20 days for forming mutual alliances to cheat the Government out of 1.8 billion yuan through contracts for supplies for the Tsinan Railway Bureau. Shanghai announced (Mara 31) that Wuhsi merchants had been charged with stealing 10 billion yuan worth of electric power since the Liberation. Shanghai reported (Apra 5) that in Tsinan tea merchants Peng Chung-nien, Yeh Cheng-fan, Wang Chin-shan, and Pi Chi-yuen had been exposed as the ringleaders of the corrupt ring which infiltrated cadres into the China Tea Company to steal 9 billion Yuan and exploit information for speculation. Hangchow stated (Apr. 5) that When.Peng-chai, owner of a lumber yard, had been charged with making illegal profits of 1.5,. billion yuan; that the President of the Hangchow branch of the China Tea Company embezzled 7 billion yuan; and'that Chinhua construction firms defrauded the Government of 100,000 catties of rice in constructing buildings for the railway station. Chang Chang-ken, owner of a scissors shop, was executed Apr. 2, following confirmation of his sentence by the East China Superior Court,, for killing his worker, Chen Lien-tango Chang objected to Clients union activities, and killed him Jana 11; he was sentenced to death Jana 25 by the local court. Hofei reported (Apr. 1) that the Hofei Federation of Labor had demanded severe punishment for merchants Chen Kuo-chaan and Ling Shi-chi, who caused the death of shop clerk Wang Keng-fa. Kaifeng announced (Apra 4+) that Yi Chien-i, drugstore owner, had been arrested for refusing to confess to charges by his clerks that he-sold fake drugs to the Government. Yao Fang-chi was arrested on charges of corruption amounting to 20 million Yuan, selling 20 kinds of fake drugs, evading taxes, and corrupting nine cadres'. Wuhsi reported (Apr- 3) that corrupt merchant Li Chao-ling of Nanhut Helen., Kiangsu, was given a public trial attended by 3,000 persons Mar. 30 and immediately executed for killing his clerk. When Li was originally sentenced by the Nanhui Peoples Court he appealed to the Superior Court,: when he was paraded through the haien with the people demanding his death. After the Superior Court upheld the verdict the public trial was called. Wuhsi said (Marv 31) that Yen Chuen-ming, "res tionary gangster" accused of corrupting cadres and illegally dealing in gold, had been arrested. In Kiangnan Helen, Kiangsu, Chung Pi-shan was charged with infiltrating his. relative, Yang Ping-pao, into the helen cooperative to use the organization as a tool to exploit the peasants. He used inside information for speculation,'used cooperative funds to deal:in gold and Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 -6- silver, and caused the capital of the cooperative to drop from 4 billion to 2 billion yuan,' Through Yang other cadres were cr?-rupted$ with the ring causing the Government losses of more than a billion yuana Wuhsi said (Apr. 4) that a dozen.Wuhsi rice processors had used various devices to defraud the Government of 1 billion yuan in 3 years, in addition to evading taxes. Nanchang reported (Apr. i) that several local butchers had been arrested for illegally slaughtering 19,000 oxen in the past 2 years and evading 101 billion yuan in taxes. Nanchang stated (Apr. 5) that Hu Ping-chuen, accused of corruption amounting to 4O0 million Yuan, and Li Swing, Chen Yu-Chang, Yang Tzu-ching, and Hua Chia-Chiang, had been arrested in Puchou, Kiangsia Wuhan announced (Apra 2) that 50 persons had demanded severe punishment for Chang Heng-fu., who defrauded the Government of 500 billion yuan. Wuhan reported (Apr- 3)' that corrupt merchant Li I-cheng,, his wife, Ma Chin-hsi, and fellow merchant Wang Ling-seng, had been executed for the murder of Chang Lan-cheng, a shop clerk who exposed their corruption.. Canton announced (Apr. 2) that Canton druggist Chu Chien-hsiung had been charged by his entire staff with bribing 28 cadres in 21 offices and selling fake drugs. Canton said (Apra 3) that the Chengchang Edible Oil Company had been charged with making 101 million Hong Kong dollars in the*past 2 years by using inside information for speculation and by violating national trade -policy. Chungking reported (Apr. 1) that lumber merchant Ho Ku-tan had been accused of illegally cutting lumber in the Erhiang Mountain area reserved for Government use and selling it at exorbitant profits in Tienchuan Usien, Sikango Peking in numeral code (Marv 31) quoted Tientsin Mayor Huang Chin as saying eiraded taxes in the city were as large as 30 percent of the Tientsin revenue; cheating on labor and material by contractors cost the Government as much as 30 percent of the revenue; and construction contractors cheated the Government out of ins much as they paid in taxes. Public and Party Officials. Dairen reported (Apr. 4) that in the Dairen branch of the China Cotton Textile Company more than half of the cadres had been charged with Conniving with corrupt merchants to defraud the Government of 5.8 billion yuan, one cadre alone, Yang Hai-jen, taking hundreds of millions in bribes. Hangchow announced (Apr. 2) that King Tao-,den, Party member, had been expelled for corruption, and three others given a short time to make confessions to avoid arrest. Hangehow said (Apr. 4+) that Lin I-chiao had been charged with embezzling 4.2 million yuan in Resist-America, Aid-Korea contributions and in relief allotments for Army ftependents. Lin was sentenced to 10 years in prison for refusing to make restitution. Cadre Pao Yuan-chi was sentenced to 15 years for refusing to pay back 20 million yuan, Yangchow asserted (Apr. 2) that Government offices in northern K engsu had been successful in seeking restitution from corrupt elements through indoctrination and the organizing of teams to check Dn stolen funds. However, Wang Chin-hai was arrested for refusing to make restitution. Wuhsi announced (Apr. 3) that Judge Hsu Chia-ling of the Wuhsien People's Court had received presents and favors from convicts Ku An-yung and Wang Yu-hsun, inducing him to reduce Hsu Chin-erh's fine t'om 8 million to 1.5 million Yuan and to sell confiscated goods worth 6 million yuan for one uiiliono Wuhsi said (Apr. 4) that the South Kiangsu Party Committee had expelled Ho Luang-chi, read of the Wuhsien Bureau of Construction, for defrauding the Government of 300 million yuan, Living luxuriously, and refusing to obey the Party mandate to reform. Ho had been a Communist ?arty member for 10 years. 3ofei reported (Mar. 31) that Yang Chun-fang, cadre in the Kueichi, Anhwei, office of the People's Bank r'-f China, had been charged with embezzlement of 131 million Yuan and causing the Government :o lose 265 millions in July 19+9 when he took relief funds allocated for the relief of flood rietims_in southern Anhwei. Nanchang stated (Apr. 3) that in Chinteehen city, Kiangsi, Yang ?a-Jen, Wang Chin-lung, Chin Shao-lao, Chao Chin-hua, Yang Huen-hsiang, and Hua Ming-hai had been irrested for refusing to confess to corruption amounting to more than 10 million yuan each. F han announced (Apra 3) that the Wuhan University Austerity Committee on Apra 2 handed over the read of the chemistry department for trial on. charges of corruption. Chungking reported (Apra 1) ;hat Ti Chan-pei, cadre in the Wuchiang Lumber Company sawmill of Chengtu, had been charged with. !mbezzling Government lumber. Peking said in numeral code (Apra 4) that the Government _dministrative Council of Central and South China.had affirmed the dismissal for corruption of Ho Heng-fu, high official of the Central and South China Military and Administrative Committee. Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 - 7 - Chinchow reported (Apra 5) that workers in the Number 5 Cement Plant had set new production xecords since the arrest of Yang Ssu-cheng, head of the packing section. Yang had urged workers to increase production, and last September more than 1,000 tons were produced, but not until Yang was arrested for embezzlement of Government property did the workers learn where the cement had gone. ECONOMIC PROBLEMS Effects of Anticorruption Drive.. An increase. was noted in claims that the anticorruption drive had improved efficiency and increased production. Dairen asserted (Apr. 1) that workers in the Dairen Jute Bag Mills', Dairen Shipyards, Port Arthur Machine Shops, Dairen Textile Mills, Dairen Railway Shops, Dairen Chemical Works, Dairen Glass Works, Dairen Power Plant, and Dairen Steel Hills had "increased their political consciousness" as a result of the anticorruption drive,'and had improved their efficiency and increased production to "show their patriotism." Tsinan stated (Apr. 5) that 80 workers in the No. 2 Steel Mill of Tsinan as a result of the drive increased their political consciousness, and "now realize the attacks of the capitalists upon the working lass and are united in their support of workers.' unions." Wuhsi claimed (Apra 4) that the No. 1 Processing Mill of the South Kiangsu Food Company was establishing records In production as a result of the drive, as the workers "now realize the factory belongs to them, and they must not be wasteful." Pan Chin-ho, who used to be a trouble- maker, now was leading the workers in increasing production. Wuhan asserted (Apr. 5) that "to promote the drive" the Hsinhsiang Mining Bureau of Hunan reduced its accident rate and overfulfilled Its February quota .013 percent and its March quota 2.6 percent. Chungking said (Apr. 1) that workers in the Nos. 1, 2, and 6 plants of the No. 101 Steel Mill., the No. 501 Power Plant, and the No. 619 Textile Mill of Chungking, in the Tahua Textile Mills of Itian:gyuen, and in the Cfweiyang Power Plant of Kweiyang, all overfulfilled their quotas as a result of the drive. Similar claims of general improvement in production as a result of the drive were monitored from Anshan (Apr. 4);; Mukden (Apr. 3-5); Dairen (Apr. 4+); Tsinan (Apr. 4+); Yangchow (Apra 2); .Tuhsi (Apr. 4); Sian (Apr, 1); and Wuhan (Apr. 2-4). )ther monitored broadcasts still admitted negative effects on production as a result of the anticorruption drive, or the necessity of reorganization and change to maintain production. 'ukden reported (Apr. 1) that the Northeast Federation of Cooperatives called a meeting recently :o discuss distribution of goods to hsien cooperatives, when it was pointed out that local units should assign cadres to carry out normal business operations. Tsinan stated (Apr. 2) that the L"sinan Railway Bureau sent 1,500 cadres out to solicit business from merchants and cooperatives, booking 116.,000 tons or cargo, including sand, stone, and lumber for construction and irrigation. Shanghai reported (Apr. 4+) that the Hangehow Austerity Committee issued a statement exhorting Dusinessmen to carry on business as usual "regardless of their investigative status." The ^nticorruption drive "was not designed to eliminate the capitalist class," so businessmen should 'drop their wait-and-see attitude." The Shanghai Talien Machine Shop contracted to produce sachinery for the Huai River project, but found that as a result of the anticorruption drive the machinery could not be completed on time until the Austerity Committee gent to*the shop and irged the workers to step up their production efforts. Hangehow asserted (Mar. 31) that the langchow Transport Workers Union had organized teams to check on bus and truck operators to see that they operated productively. Hangchow said (Apr. 2) that in the Chekiang Ironworks special _arees had been assigned to "promote normal operations." -angchow announced (Apr. 3) that several hundred cadres had been sent to the Huaipei Salt Fields to _ncrease production when the anticorruption drive stopped the middle of March. Wuhsi asserted Apr. 1) that Tu Ya-lin, worker of 38 years' experience in power production, had been promoted to -ead the supply section of the Chinchiang Power Plant as a result of the anticorruption drive, .nd in gratitude introduced changes to save the plant 200 million Yuan. Wuhsi said (Apr. 4) that -n the Hsinyi Textile Mills of Changchou the workers had set norms for tiger hunting and production -o the latter would not suffer. Wuhan announced (Apr. 4) that 3-40O00 shop clerks attended a meet- ng, when they were urged to promote production during the anticorruption drive, and check on _erchants to see that they continued their productive enterprises. Kunming reported (Apr. 2) that he Yunnan Trade Department was promoting business by expanding operations in the rural areas., were large quantities of tin for export, sausage casings and bristles had been collected. Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 _8_ Peking announced in numeral code-(Mar0 31) that "reformed" Nanking merchants were receiving orders from the China Food Company, the China Cloth and. Yarn Company, and the Nanking Trading Company. FFamine and Shortages0 Hangchow stated (Apra 1) that 369 peasant families in Chinhai Hsien, Chekiang, were suffering from famine, in the same area which suffered severely from famine last year. As "cadres were reluctant to do anything," model farmers had been sent into the area to organize the farmers for relief work by making fishing nets, while 8,000 catties of relief grain had been distributed. Kaifeng complained (Apra 3) that 1,893 households in Pingyang Hsien, Honan, were found to be short of food, "while cadres took no action to promote the antidrought and farm production programs." Nanchang reported (Marv 31) that the Party'Committee of Linchuan Hsien., Kiangsi, had called a meeting to organize relief because "40 percent of the villagers are short of food and have no fertilizer or seeds for spring farming." Because of last year's. drought the peasants already were 50 million catties short of grain, and this year's heavy snow destroyed 100,000 mou of ripe crops. Nanchang said (Apra 3) that the Party Committee of Shangjao Hsien, Kiangsi, had issued a directive calling upon cadres to save daily rice rations for relief of famine sufferers, and estimating they could save 4.50,000 Yuan and 400 catties of rice by refraining from eating noodles or soup. Foochow announced (Apr. 3) that relief had been rushed to 458 families in the suburbs of Foochow, where 1,020 families were short of food. Shanghai announced (Apra 5) that the Wuhsi Food Bureau had ordered cadres to take better care of grain._ Inspection teams reportedly had revealed many granaries in the area were in bad repair, were leaking, and much grain had spoiled. Nanchang reported (Apra 5) that the Kiangsi Government had issued a directive Apra 2 ordering half the cadres in various food bureaus to work with hsien rescue squads to repair granaries and save grain. In Chian and Hsaichiang Hsien many granaries were reported in disrepair, with much grain infected and rotting. Foochow said (Apr. 1) that the FUKIEN JIH PAO had published an attack on public grain warehousemen for neglect of duty, demanding punishment,improvement in warehouse inspection, and'structural improvements in the warehouses. Much grain was reported rotting in Pacheng, Chienyang, Wuping, Changping, and ShanghangHsiena Hangchow reported (Apra 1) that because of a seed shortage among one-fourth of the families in Haiaoshan Hsien, Chekiang, cadres had called the farmers together to indoctrinate them with the need to cooperate to achieve maximum production. Farm Production. All of the radios stressed the spring farm production program, with attention given to emulation plans, production quotas, bumper-crop models, fertilization programs, the digging of wells, building of water wheels and irrigation systems, organization of production offices and mutual-aid teams, and control of insects. Indoctrination of peasants was asked in some areas, and other difficulties were admitted. Hangchow announced (Apr. 1) that cadres in Wuhsing Hsien, Chekiang, "had been ordered to correct their misconceptions" of the Government fertilizer policy. They had stopped the use'of natural fertilizers and ordered farmers to buy fertilizers in accordance with the size of their farms or the number of persons in their families, with the result that orders for fertilizer had reached, only 365 percent of the plan. Hangchow said (Apra 2) that 67 farmers of Wuchiatun village, Shouchang Hsien, Chekiang, had ordered 22,400 catties of fertilizer, but failed to go through with the transaction because they had no money. The local Party secretary called a meeting and explained that the Government "favored a policy of private borrowing and lending among the peasants." Hangchow reported (Apr. 2) that the Wuhsien Special District Administrative Office called a meeting of directors, of peasants associations and explained that "peasants have not enough confidence," and that better leadership at the hsiang level was needed, as well as markets for native products and better drought prevention. Nanchang stated (Apr. 2) that in Hupei Hsiang, Shangjao Hsien, Kiangsi, spring farm production was being promoted by private borrowing and lending of grain,,but that some farmers with surplus grain "went around complaining of poverty, and were afraid to make loans for fear of being upgraded." Foochow complained (Apr. 2) that cadres in Yunhsiao Hsien, Fukien, "failed to show any solicitude-toward the farmers." When one peasant sought the help of a cadre in borrowing an ox for spring farming the cadre said to him-. "The Volunteers at the Korean front have overcome greater difficulties; why can't you do something?" Foochow reported (Apr. 3) that cadres had been sent to Chinchiang Hsien, Fukien, where 27,000 mou of paddy was in danger of drying up, with the loss of the spring rice crop. Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 -9- .Sian announced (Apr. 3) that i Lantung Hsiarg, Kaolan Hsien, Kansu, 50 mutual-aid teams had been set up to overcome the shorta of seeds and foodstuff. In one area of Kansu 210,000 catties of fertilizer was purchased "after general study to correct the misunderstanding of peasants and working cadres regarding chemical fertilizer." Chungking stated (Apr. 1) that in Tzuchung and I'ingsban Hsien, Szechwan, after the Government policy on lending was explained, "many farmers overcome their hesitancy" and were willing to lend grain to poor farmers. Kunming said (Apr. 2) that in Chaotung.Hsien, Yunnan, cadres had been lax in promoting spring farming, had taken is do-nothing attitude toward the antidrought program or had obstructed the work, and in Chu 6 even took an allocation of 10,000 catties of relief grain, converted it into cash, and deposited the money in the bank, Plans for irovement. Peking announced in numeral code (Mar. 31) that the Northwest and Southwest Military and Administrative Committees had set up committees for control of Government enterprises in accordance with the Central Government directive. Wuhan reported (Mar. 31) that the Central and South China Military and Administrative Committee had appropriated 50 billion Yuan for construction and repair of Government dormitories, with work to start within a month; 10 billions for Wuhan road construction; and 4 billion yuan for relief, to be issued at once. Peking announced in numeral code (Apr. 3) that the Tientsin Government had allocated funds for construction of the first 30,000 of 50,000 workers" houses, with building of 10,000 to start in April. Mukden announced (Apra 4+) that commercial shipping service. between Harbin and Shaoyuan and Tungho could be inaugurated Apr, 11 "to encourage the interflow of goods." Mukden reported (Apr. 3) that officials of the Northeast Agriculture Department on Mar. 29 inspected and tested the first lot of horse-drawn farm implements to be produced in China. Agencies had been asked to popularize Horse-drawn implements, as well as trailer-tractors, in the next 5 or 6 years, and present plans called for another 500 horse-drawn implements to be put into use this year, 200 to be imported and 300 made by the Mukden Implement Factory. rsi.nan announced (Apr. 1) that coastal hsien of Shantung Province had reported the presence of two -.ales nd a number of seal, and that "steps would be taken to develop this source of marine production." Hangchow reported (Apr. 3) that spring afforestation had been completed in the Jhinhua Special District of Chekiang, with 3 million trees planted on 100,000 mou of land. 'uchiang Hsien had planted lad- million trees, Lanchi Hsien 1300,000, and Tungyang Hsien t50,000. germ Warfare Propaganda. Peking announced in a home service broadcast (Apr. 3) that the Inter- aational Association of Democratic Lawyers had released its conclusions on the use of bacteriolo- gical warfare and "other American war crimes in Korea.,"-said that the Commission for Investigating %merican Use of Bacteriological Warfare had returned to Peking following its investigation in Wortheast China, and charged that American planes continued to spread germs in North Korea 2r. 11-20 "hinchow asserted (Apr. 2) that large swarms of typhoid-bearing mosquitoes of the type found in !amagata Prefecture, Japan, had been detected by the plague-prevention team of Chu 6, Chinchow, - 'lar 5 Lceording to Yangchow (Mar. 31) the local Party Committee called a meeting of all propaganda cadres .o indoctrinate and urge them in using all their efforts to promote the antibacteriological warfare ?ampaign. Foochow reported (Mara 31) that the militia of Fukien Province had issued a protest tgainst American use of germ warfare. Foochow added (Apr. 2) that units o? the People's Liberation y and other organizations in Fukien had protested. Sian stated (Mar. 31) that in Yinehuan., iringhsia, and Sining, Tsinghai, the "broad masses" had held. rallies to protest use of germ carfare. 'referential Treatment. Dairen reported (Apr. 13) that the local Department of Civil Affairs had osstted a directive calling upon all local governments to promote the spring farming preferential :reatment program. Mukden said (Apr. 2) that the TA KUNG PAO had stressed the importance of assisting dependents of servicemen with spring farming. The Heilungkiang Department of Civil 'ffairs issued a directive on helping servicements families on the farms, Mukden added (Apr. 6) that the Northeast China Military and Administrative Committee had issued a directive on the subject. Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 ., Shanghai announced (Mar. 1) that mutual-aid teams, poor farmers, and dependents of servicemen would be given priority on a 9-billion-yuan farm loan in Anhwei for purchase of old=type farm tools, and 2 billions for the purchase of modern tools. Foochow announced (Apr. 1) that the Fukien Department of Civil Affairs had issued a directive calling upon the masses to assist dependents of Army men with their spring farming "as part of their patriotic obligations." As a result, peasants in Changlo Hsien organized labor teams at once to carry out the preferential treatment program. War Heroes. Chungking announced (Mar. 31) that honors had been bestowed upon 32 natives of Szechwan who had been "gloriously martyred" with a certain division of the Chinese People's Volunteers in Korea. Six of the group received the Second Class Loyalty Award, as follows: Chu Hung-chuen, Wanhsien; Chen Hua, Pihsien; Lo Chung-hua, Hsuyung Hsien, Li Han-chang,.Lohsien; Lo Te-hsun, Sheyung Hsien; and Ling Chien-fu, Anyeh Hsien. The remaining 26 received Third Class Loyalty Award, and included Pvt. Wen Chang-kuei, credited with shooting down an enemy plane with 12-shots; Li-Chi-i, credited with shooting down an enemy plane with 10 shots from an antiaircraft gun; Pvt.. Chou Hua-chi, who demobilized an enemy tank with 4 shots; and Chou Kuo-chiang, who damaged an enemy tank with 6 shots. Cpl. Ling Chien-fu, winner of the Second Class Award, held Hi11.916for 10 hours against 50 of the enemy, killing or wounding 4+2 of them. IAIZ REFORM Wuhan announced (Mar. 31) that the Central and South China Party Committee had issued a directive calling upon rural cadres to promote spring farming, intensify and complete the land reform program, land reform reinspection, and landlord liquidation by the end of May. Party Secretary Shao Ping-hsiang of the South China Bureau of the Party called upon cadres to "overcome their complacency" and complete the land reform program. The Hupeh Party Committee issued.a directive ordering cadres to work with poor farmers to complete land reform, and criticized the "erroneous thinking" of some cadres that "poor and hired farmers cannot be relied on, and therefore there is no need to give them any attention." Wuhan said (Apr. 4+) that several villages in the Wuhan suburbs had held exhibitions of goods confiscated from landlords, "exposing the trickery of landlords in hiding their goods." Wuhan announced (Apr. 6) that the Land Reform Committees of Central and South China, Hupeh, and Wuhan would jointly sponsor a land reform exhibition in May "to demonstrate the leadership of the Communist Party in the rise of the farming class." ianchang reported (Mar. 31) that in Chienchin Hsiang, Chu 6, Kaoan Hsien, Kiangsi, "a'reactionary stronghold," connterrevolutionary Chu Nien-pao recently was executed for poisoning Village Chief Lo Ssu-fu, Although major lawless landlords in the area had been eradicated,, "remnant reactionary elements" were able to remain underground "because of the anxiety of the cadres to wind up their urork'there." Nanchang asserted (Apr. 2) that 32 families in Liwu Hsiang, Chingho Hsien, Kiangsi, had-re they paired the area's irrigation system and increased production "because of the benefits received from the land reform program." Nanchang added (Apr. 3) that in Shangjao Hsien, Kiangsi, tailors,ecarpenters, household servants, and blacksmiths had been carefully questioned in the search for the hidden wealth of landlords, with the result that 70 peasants delivered up goods nidden with them. In Shangyi Hsiang, Chu 1, Shangjao Helen, 600 farmers met to organize .a - farmers association as a celebration of completion of land reform Mar. 18.. :Knming reported (Apr. 2) that in Milo Hsien, Yunnan, the Party Committee called a meeting of cadres to "overcome their hesitancy in confiscating landlords" assets." The cadres complained that the work was hard, "the masses uncooperative, and the landlords severe." After indoctrination :he cadres returned to organize the farmers and proceed with the confiscation work. ilational Minorities. Chungking announced (Mara 31) that a Tibetan delegation from Sikang, which la Led o tour China and call upon Chairman Mao, arrived in the city and was welcomed by high Dfficials. Chungking said (Apr. 1) that Tibetans in Sikang, Szechwan, and Yunnan had organized 3orse transport caravans to promote tea, sugar, hides, Fool, and herb trade, and had expressed :heir appreciation to the People's government and the People?s Liberation Army for being allowed :o carry on this trade in peace and harmony. Kunming said (Apr. 6) that the Southwest Nationalities '.ffairs Commission had issued a directive on,its 1952 program, calling for more cadre and cultural Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1 ~.r N 25X1 training and establishment of autonomous areas. Canton announced (Apr. 4+) that. the 2d Medical Team of the Chinese Red Cross had trained 277 midwives for work in Hainan, and now was carrying on plague-prevention work there among the minorities. Mao Tse-tung Essay. Hangchow announced (Apra 3) that the C 1NG JIH PAO had carried Mao Tse-tung's essay, "Contradictions," along with a commentary by the Mao Tse-tung study class urging cadres to study the essay for a better understanding of Marxism-Leninism and Mao Tse-tung?s theories. Taiyuan reported (Apra 3) that the SHANSI JIH PA4 carried. "Contradictions and urged all cadres to study it carefully. Visit to USSR. According to Kaiferig (Apr. 3) model farmer Chao Pai-i was puzzled when he received a summon.from the Nanyang Hsien,_Honan, Party Committee, but later learned he. had been selected to tour the USSR and "learn the advanced farming techniques of our Soviet elder brothers and transmit them to the Chinese. Molested Graves--Nanchang said (Apr. 1) that cadres in Ani Hsien, Kiangsi, had been ordered immediately to "correct a serious situation" in connection with construction of an irrigation pro,~ecto The work resulted in exposure of the graxes, "much to the indignation of the villagers," and "bad elements. are taking advantage of the situation to rob graves." Approved For Release 2007/10/23: CIA-RDP78-04864A000200110005-1