INDICATIONS OF PSYCHOLOGICAL VULNERABILITIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000200120007-9
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 13
• Document Creation Date: November 11, 2016
• Document Release Date: August 13, 1998
• Sequence Number: 7
• Publication Date: April 27, 1952
• Content Type: REPORT

Approved FgrCENTRAL INTELLIGENCE AGENCY REPORT NO. -F-245
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
s,
COUNTRY DOWD FL3T CHINA DATE OF Apr. 21-27, 1952
INFORMATION
- SUBJECT INDICATIONS OF PSYCHOLOGICAL VULNERABILITIES
HOW
- PUBLISHED
WH ERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
r".L;: REGRADING
BULLETIN
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES WITHIN THE MEANING OF ESPIONAGE ACT 50
U. S. C.. SI 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 Monitored Broadcasts
DATE DIST. 20 1.111V 31.
NO. OF PAGES 13
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
CPW Report No. 19 -- COMMONIST? CHINA
(Apr. 21 - 27, 1952)
SMEARY
A determined effort was apparent to stress gains from the anticorruption drive
minimize the lo-see, hut evidences of dislocations in the economy still existed, --
State trading companies went out of their way to place ordere, with private firms
revive busineas," workers were urged to.put increased production above tiger-hunting,
and inefficiency of newly promoted workers was admitted. An engineer trained in
America, depending on textbook theories and overlooking facts,, was pictured as the
symbol of reaction, while an old worker was the progressive element, insisting that
superior Soviet methods he adopted. All industrial gains were represented as
synonomous with workers 2 direction of business, and aeceptaaee of this by the owners.
One revealing broadeast told of a worker-manager agreement allowing factory operatiras
to resume, with the workers promising to get to work on time, stay on the job, and '
not "hang around the front office talking and reading newspapers," which might give
an accurate picture of conditions that have existed in many business houses.
Boasts of reduced costs and lower prices mentioned a cut of 11 percent in flour
prices and of 21 in Szechwan charcoal. The Shangh i market quotations showed no
such reductions, while Chungking quoted actual rises in flour, rice, yellow beans,
millet, and eggs, with pork and wheat reduced and charcoal unehanged. Lower wheat
and higher flour prices indicate that the farmer rather than the consumer might be
feeling the effects of lower prices. Northeast officials demanded improvement in
transport, though a Peking broadcast credited Soviet technicians on the Chinese-
Changchun Railway with building a model for all China in transport operations;
fishermen had to be supplied with food and funds before they could proceed with
operations; State trading companies were asked to reduce prices for famine
, sufferers; and warehouse losses through defective management were reported.
CLASSIFICATION
1.116111,01141ZZL
STATE
NAVY
ARMY
AIR
NSRB
FBI
DISTRIBUTION
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CONFIDENTIAL 00-F-245
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Kiangsi complaints said cadres gave too much attention to spring farming, allowing
landlords to cause trouble, while from Yunnan cadres were criticized for placing
land reform ahead of spring farming ignoring shortages of food, seed, and tools.
The confused farmers, condemned by cadres for indifference toward land reform,
were represented as becoming even less enthusiastic. Sian complained that in the
old revolutionary bases the antidrought fight had lagged because of poor leadership,
while East China reported considerable concern over the combined menace of drought
and insects.
CONFIDENTIAL
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FOR OFFICIAL USE ONLY *48.1 00-F-245-A
CPW Report No. 19-A -- COMMUNIST CHINA
(Apr. 21 - 27, 1952)
DATE PUBLISHED:
SOURCE: Monitored Broadcasts
CONTENTS
THIS IS UNEVALUATED INFORMATION
ANTIWASTE, ANTICORRUPTION, ANTIBUREAUCRACY 1
COMMERCEAND INDUSTRY 00000041.00e0OODe000,00040.000 4
AGRICULTURAL PROBLEMS 0000**000000000000Thee000.0 8
MISCELLANEOUS00000-00000" 00,0000.004/0.0000000000000 10
ANTIWASTE, ANTICORRUPTION, ANTIBUREAUCRACY
-Continuation of Drive. Anshan announced (Apr. 21) that the localYouth Corps on
Apr. 20 held initiation in Chungshan Hall for 58 who "demonstrated their ability"
in the anticorruption drive. Tainan reported (Apr. 24) that the local Austerity
Committee sponsored an anticorruption exhibit "demonstrating the powerful attacks
against the working class by capitalist elements," with 47 organizations participat-
ing. Shanghai stated (Apr. 25) that workers in Hofei held an anticorruption rally
Apr. 17, when 6,000 persons heard workers praised for their enthusiasm in the drive,
and model workers called upon their fellows to increase production. In Pengpu 80
percent of the Youth Corps membership took part in propaganda work for the anti-
corruption drive. In Tainan 100 percent took part in the drive and made accusations,
while Youth Corpsman Tung Yuen of the Takang Pharmacy, Shanghai, "bravely accused"
his employers of selling false drugs to the Chinese Volunteers.
Nantung reported (Apr. 24) that the local press carried an article by the Nantang
Party Committee calling upon city authorities to fully implement the drive by
rounding up all major corrupt elements, pointing out that "known corrupt merchants
still walk the streets untouched." Yangchow said (Apr. 26) that 14,000 shop clerks
.in Nantung participated in the anticorruption drive, making brilliant achievements
in exposing corrupt merchants and Government officials. Wuhsi reported (Apr. 22)
that local workers held a rally Apr. 17 to review achievements in the anticorrup-
tion drive and welcome May Day by increasing the effort to catch tigers and to
increase production. Wuhsi stated (Apr. 23) that 253 textile workers completed a
5-day indoctrination course, and with their increased political consciousness soon
made 456 accusations. A 60-year-old worker, Hsu Lan-seng, announced that he would
willingly support the drive, and accountant Wang Ching-kao of the Liseng Cloth
Factory made accusations against his employer.
Wuhan announced (Apr. 22) that the local Austerity Committee had issued a directive
calling for organization of groups to see the anticorruption newsreels in Wuhanvs
seven theaters. Wuhan said (Apr. 23) that at a gala meeting Kuan Hain-chung of the
Austerity Committee presented medals to members of the Chinese Volunteer delegation
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for their 'Nark in the drive, Liu Lao-aeng was so affected that he confessed immedi-
ately and handed over 100 ounces of gold. Wuhan added (Apr. 26) that the exposure
of corrupt merchants by the Chinese Volunteers and Korean soldiers during their
promotion of the anticorruption drive in Central and South China led one clerk to
accuse a merchant of embezzling 400 million yuan; that their visit to the Pinghsiang
Colliery resulted in new production records; and that their presence in Huangpei
caused power plant workers to adopt progressive Soviet techniques.
Kunming announced (Apr. 23) that the second training course for 280 shop employees,
including !senior clerks and accountants, had been completed with organization of new
tiger-hunting teams to take part in the five-anti's drive. The clerks, as a result
of their increased political consciousness, exposed 87 cases of mutual alliances
between clerks and employers, and agreed to "push the anticorruption drive to a
victorious finish." Kunming said (Apr. 25) that workers in the Minchung Ironworks
and the Hungfu Cigarette Factory enthusiastically welcomed the Kunming Austerity
Committee, gathered information for the Committee, and adopted a new slogan
"Increase production to welcome May Day."
Adjudication and Settlement. Anshan reported (Apr. 21) that the local Austerity
Committee Apr. 16 disposed of 11 corruption cases, pardoning five corrupt elements who
confessed to corruption of less than 5 million yuan. Anshan added (Apr. 24) that
the Anshan People's Tribunal tried 21 cases, including that of Wang Yu-chai,
pardoning those who confessed and arresting several who refused to confess. Anshan
said (Apr. 27) that the People's Tribunal had given lenient treatment to 28 corrupt
elements in return for confessions, but had arrested Wang Kuo-chings Wang I-ehao,
Liu Wan-hsins and Lo Hao. Tsinan stated (Apr. 27) that many corrupt e2ements had
come to the 10 People's Tribunals to confess and make restitution, and had received
lenient treatments while others who refused to confess had been rrested even though
their corruption was minor.
Shanghai announced (Apr. 23) that 27906 more firms in the city had received notices
classing them as law-abidings while 12,489 had been classified as basically law-
abiding. Shanghai said (Apr. 25) that in the third stage of the drive in Shanghai
4,500 confessions had been received by Apr. 24s with 54,600 of the 55,100 corrupt
firms classified as basically law-abiding and joining in the attack on nonconfessors.
Yangchow reported (Apr. 27) that cadres in First Class Government offices of northern
Kiangsa had arranged restitution rallies, with corrupt elements who confessed and
made restitution pardoned and the others arrested. Families of corrupt elements had
proved a great help in forcing the return of stolen funds and goods. Hofei stated
(Apr. 27) that in Fengpu, Anhwei, 4,170 firms had been given lenient treatment follow-
ing adjudication of their cases, with only a few top grafters held for trial.
Huainan reported (Apr. 21) that the local People's Tribunal an Apr. 18 pardoned 12
persons who confessed and made restitutions and arrested three others.
Wuhan announced (Apr. 21) that local workers and shop clerks had organized to promote
the return of stolen funds and property. In Changsha, Hunan, corruption cases had
been adjudicated among 91 percent of the city's business firms. Wuhan (Apr. 25)
reported a workers meeting at which the Wuhan Austerity Committee urged that consulta-
tive worker-employer meetings be held to impress corrupt merchants with the need to
confess and receive leniency, asked that workers supervise firms processing goods
for the Government, and accepted restitution of embezzled property from 230 corrupt
elements. The Austerity Committee of Canton recently arranged 125 worker-manager
consultation meetings to obtain confessions, and adjudicated 52 cases.
Chungking announced (Apr. 21) that the local Austerity Committee had disposed of
36,000 corruption cases involving 95 percent of the city's firms by Apr. 14, granting
leniency to all violators who confessed, and leaving only the most serious cases to
be adjudicated. Kunming announced (Apr. 21) that the local Austerity Committee had
issued a directive restricting the right of search, seizure, and trial in connection
with corruption cases to the Austerity Committee and the People's Tribunal. In Mengtzu
Hsiens Yunnan, corrupt elements returned embezzled funds and paid evaded taxes at a
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rally, when Chiang Chin-shan and Chao Chi-ko confessed and were pardoned, while Chao
Shui-liang refused to confess and was arrested. Kunming added (Apr. 22) that corrupt
elements from the Yunnan Department of Industry, Department of Agriculture and People's
Bank made confessions and offers of restitution. Kunming announced (Apr. 24) that
10 People's Tribunals had been set up for Yunnan Province, and another 10 for Kunming,
with a People's Tribunal Committee of 11 persons with Chou Pao-chung as chairman and
Liu Hung and Tao Yu-tseng as vice chairmen. Kunming said (Apr. 26) that the Southwest
branch of the China Insurance Company had been very successful in regaining stolen
property and funds through working closely with dependents of corrupt elements.
'Kunming reported (Apr. 27) that Chairman Ma Hsi-hung of the Kunming Austerity Committee
told a rally Apr. 26 that 300 cases of corruption had just been adjudicated with
leniency, but that 400 firms still had not made satisfactory confessions. May Day
was set as a deadline for many firms.
reangsnann'on. Chinch ow announced (Apr. 26) that at a meeting Apr. 22 the
Shanhaikuan Austerity Committee exposed the corruption of 11 business firms out of
31 accused. Hofei reported (Apr. 26) the arrest of Tao Feng-ehen and Tso Feng-hsien,
jute bag merchants of Pengpu, Anhwei, and quoted the HUAN NAN HUAN PEI JIH PAO in
telling haw they broke up a worker-management meeting by beating up five workers.
Nantung said (Apr. 25) that Chang Chi-jen, owner of a local drug store, had been
arrested by the Austerity Committee on charges of selling 20 million yuan worth of
fake drugs and causing the death of several people. Nantung drug dealers had been
accused of selling 190 kinds of fake drugs. Kunming announced (Apr, 26) that local
Merchant Fen Tzu-tan had been arrested Apr. 11 on charges of making 5 billion yuan in
illegal profits and defrauding the People's Liberation Army on processing contracts.
Peking in numeral code (Apr. 21) transmitted an article by Chang Chia-chi, "Shanghai
Speculators Who Fear that the World Will Not Be in Confusion." Shanghai was described
as the former bastion of bureaucratic capitalists and imperialists, where a speculator
with nothing bat a telephone line could "snatch millions of jen min piao in one
night," and where, even after the Liberation 220,000, persons relied on speculation
for a living. These speculators utilized every wild rumor to cause gyrations in the
market, manipulating a jump in rice prices in 1950 because floods disrupted transporta-
tion on the Chekiang-Kiangsi Railway, and spreading rumors of a third World War in
October 1950 to cause anthracite coal prices to jump from 410,000 to 800,000 yuan a
ton. Part of the time people could not even buy coal. State trading companies,
welcomed by the masses because they stabilize prices, have been "bitterly opposed"
by the Shanghai speculators, who infiltrated these companies to undermine thenl, at
the same time crying that they had destroyed their freedom of business, Nine State-
awned eowpanies discovered that their main business departments had been usurped or
undermined by Shanghai speculators.
When American imperialists declared a blockade of the China coast in 1950 the speculators
raised prices on hardware and drugs, and when American-Chiang planes bombed Shanghai
they hoarded kerosene, candles, lamps, and even sand, so that adequate protection
against enemy aircraft could not be provided.
In the Shanghai Coal Company and Shanghai Mining Equipment Company 51 cadres were
found to be agents of Lita, Chenye, and other private coal dealers. The live hog
section of the East China office of the China Native Products Company was found to
have been completely usurped by Chientahsin, Chengta, and Yangshunho hog firms, who
set up six buying stations close to the State company's one in northern Kiangsu,
making it impossible for the State company to buy hogs. Then pork prices were
raised to 16,000 yuan a catty, while the State price was only 7,800 yuan. These
speculators have received hard blows in the past 2 years, but the speculative
nature of the capitalist class of Shanghai is very stubborn," Among the criminal
merchants were Tsou Shao-lin of the Hsintai Yarn Company;, Cheng Shun-kang and Chi
Mei-chuan of the Shanghai Food Guild; Weng Min-ju of the Shanghai Hardware Guild;
and Hsia Ying-kuei of the Tachunghua Electric Appliance Company, the "tungsten wire
king," arrested recently for hoarding 3 million meters of tungsten wire with no
book accounts. Much of the speculative capital had gone underground, as was
?
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demonstrated when a checkup showed the Yungcheng Hardware Shop, a small store, had
3 billion yuan worth of supplies hidden in a secret warehouse.
Rules for Emighatnl. Peking reported in numeral code (Apr. 21) that the Central
Government Administrative Council had approved the following schedule of punishment
for corruption g Corruption of 100 million yuan or more, 10 years or more in
prison, death if the crime was of a serious nature; 50-100 million yuan, prison term
of 5-10 years; 10-50 million yuan, prison term of 1-4 years, penal servitude 1-4
years, or surveillance of 1-2 years; and under 10 million yuan, penal servitude or
surveillance of one year, administrative punishment, or warning. Money and articles
obtained illegally should be reclaimed, and a person's property should be subject to
confiscation in whole or in part if the crime was of a serious nature. Heavier
punishment might be imposed in special cases, such as the stealing of economic
intelligence, group corruption, incomplete confession, or attempt to hide evidence by
destruction of Government property. Lighter punishment might be assessed if there
was complete confession, sepentance, return of funds, and "achievement of merit
through accusation." Confiscation of property, in whole or in part, was approved when
bribery of Government officials was involved. Payment of commissions in business
deals because of "bad social custom" should not be considered as bribery if the act
was committed in the past, but in the future should be considered as bribery.
Anshan (Apr. 24) asserted that workers had expressed their "enthusiastic support" of
the Central Government regulations, and cited them as another example "of the
brilliant leadership of the Communist Party." Some quotes from the regulations
Callon
Chairman Mao has said in the past g "Be lenient toward the
past, but severe toward the future; be predominantly lenient
and seldom severe; grant leniency to confessors, but treat
nonconfessors with severity; be lenient with non-Government
officials except in cases of flagrant violation, but severe
with Government officials." These are the summations made by
Chairman Mao from a study of collected cases of the Three-
antius and Five-antivs drive Therefore this directive can-
not but contain n great deal of leeway. This leeway means that
the small group of flagrant violators, obstructionists, and those
"refusing to recant unto death," or those guilty of corruption
or theft during or after the three-antigs or five-anti's drive,
must be handled with severity, or even extreme severity .... In
minor cases of bribery there should be no fines or prison sentences;
a warning is enough. But after this violators will be severely
punished .... Our principle is to overlook the past and punish
future violations with severity. (Peking, numeral code, Apr. 21)
COMMERCE AND INDUSTRY
Lains frmAILLgormin112112stm: Shanghai asserted (Apr. 21) that the economy of
Shantung Province had been greatly strengthened by the anticorruption drive. Bank
deposits in January showed an increase of 2,28 percent, in February 6.85 percent,
and in March 36.25 percent. In 10 Tsingtao companies retail sales increased 52
percent in March over February. Huainan claimed (Apr. 27) that as a result of the
anticorruption drive workers in the Hu inan mines increased their political con-
sciousness to the extent of accepting the idea of division of labor, with a marked
increase in production.
Peking stated in numeral code (Apr. 24) that in the Yaohua Glass Works of Chinhuangtao,
Hopei, the making of glass from mountain sand rather than sea sand increased produc-
tion to an index of 157 for 1949, taking 1948 as 100. However, with the elimination
of graft and bureaucracy through the anticorruption drive, the index now stood at
297. Chief Engineer Wang En-ming of the melting and refining section, who was
trained in Arkerica, and engineer Wang Hsing-i, refused to listen to old worker Chou
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Chen-ming when he advised calling in Soviet experts. This attitude was corrected
by the drive, Soviet technicians were asked to help solve production difficulties,
and plant engineers now work closely with the workers rather than depending upon
theories from books. Peking claimed in numeral code (Apr. 25) that the increased
political consciousness of workers on the Chengtu-Chungking Railway construction
project during the anticorruption drive led to the replacement of outmoded bridge
construction techniques with progressive Soviet methods at a saving of 7,600 yan per
cubic meter under the old figure of 33,600. Adoption of the Soviet Kovalev technique
increased production of nuts from 240 per hour to 670, and instead of wasting
material the workers now collect and reclaim waste during their spare time.
Engineers no longer depend upon textbook theories, but consult the workers, who
already have helped them repair a collapsed roadbed and enlarge a wharf.
Peking asserted in numeral code (Apr, 23) that workers in Wuhan ironworks have
participated in implementation of Government contracts since the anticorruption drive,
with the result that the Government has saved 13.3 percent, and not one of the 100,000
items made for the Chinchiang flood control project was below standard. Workers now
go to work early and stay late, so that between Mar. 10 - Apr. 20 the 800 ironworks
of Wuhan produced 105,234 units of tools and parts of standard quality. "During the
3 years since the Liberation this is the first time such an achievement was reported."
When the Jih Shun Chi Ironworks made 30 substandard hoes the case immediately was
reported by a worker, and the Ho Sheng Chang team helped employers buy angle iron
for 4,000 yuan a catty instead of the contract price of 12,000, permitting a revision
of the contract that saved the Government 65 million yuan.
Peking claimed in numeral code (Apr. 24) that the Sian Federation of Labor discovered
through the anticorruption drive that cadres in the law-level unions were weak in
their class ideology, corrupt, or agents of capitalists. Most cadres in the workers
union of the Chienhua Transportation Company were agents of capitalists, and in the
Teheng Canvas Factory the head of the factory union and other cadres became capitalist
agents when Manager Liu Kuei-yuan promoted them to administrative positions. With
the success of the anticorruption drive these elements were purged and the unions
reorganized with an increase in membership. Peking stated in numeral code (Apr. 27)
that the same capitalist dominance had been discovered among low-level unions in
Shanghai private industries, especially in the Hua Hain Educational Supply Company,
the Nanyang Electric Cord Factory, the Hua Fu Fu Dyeing and Weaving Company, and the
Cheng Chung Rubberworks. In a certain rubber factory on North Szechuan Road the
union deputy head, Huang Wen-yuan, a capitalist agent, used his position to prepare
a list of progressive elements in the union for dismissal, and "helped the manage-
ment in buying over senior workers." As a result of the anticorruption drive
Huang was dismissed and the union reorganized.
Other claims that the anticorruption drive increased production and improved working
conditions through increasing the political consciousness of the workers, eliminating
corrupt cadres, and promoting "progressive elements" were monitored from Anshan
(Apr, 24), Chinchow (Apr. 21, 23), Dairen (Apr. 22), Tsinan (Apr. 21), Shanghai
(Apr, 21, 23), Hangchow (Apr. 26), Wuhsi (Apr. 22), Hofei (Apr. 24), Wuhan (Apr. 22,
23), and Chungking (Apr. 25).
Prableingsg.nfi. Anshan reported (Apr. 24) that the local Austerity
Committee had met with workers to urge that they cooperate with manufacturers to
increase production and cut costs in fulfillment of processing contracts by private
businessmen. Chinchow said (Apr. 23) that the Chinchow Austerity Committee had
urged workers to pay attention both to tiger-hunting and production. Tsinan stated
(Apr. 27) that 45 cadres in the Tsinan Industrial Company had been promoted, while
"progressive elements" of the anticorruption drive had been promoted to responsible
positions in Tsingtao State trading enterprises.
Hangchow announced (Apr. 26) that the Chekiang Government had organized a committee
of 11 persons with Shi Chi-yuan as chairman to supervise all Government orders with
private firms, fixing wages, prices, and processing contract terms, and that
contracts already had been let with silk, colth, daily necessity and food manufacturers.
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? Yangchow reported (Apr. 21) that the Yangchow branch of the North Kiangsu General
Merchandise Company had called a meeting to discuss normal business operations and
instructed cadres to carry on normal buying and selling during the anticorruption
drive. Nantung stated (Apr. 24) that cooperatives recently placed large orders for
goods and banks increased their production loans "to strengthen the people's economy
and revive industry," and that State trading companies had lowered retail prices
and increased the number of processing orders with private businessmen.
Hofei announced (Apr. 24) that clerks in local native herbs shops had called a meeting
to promote the anticorruption drive and "revive production." Clerks agreed to make
investigations of shops to eliminate fake drugs, while worker-employer consultative
conferences would be organized to "find ways of conducting normal business operations
Wei said (Apr. 27) that after the owner of the Chingpu Drug Company had been induced
by his clerks to confess his tax evasions and make restitution he received lenient
treatment, and in appreciation added 41 million yuan to his wcrking capital and
produced 22 million yuan worth of hidden goods "to reopen his business." Huainan
admitted (Apr. 27) that in the Chiulung Colliery many workers holding technical
positions were found deficient in their knowledge of the work required, and failed
to produce the desired results. "In some cases workers using new techniques did
not equal the production records of the regular old-time workers."
Wuhan announced (Apr. 26) that workers and managers in 10 private firma which had
been given Government processing contracts were holding meetings "to resume normal
business operations." Under this arrangement the Chienkang Factory had taken a new
lease on life with an increase in capital investment, and the Chungho Factory had
proposed changes which would reduce the cost to the Government. Sian reported
(Apr. 23) that local shop clerks held a rally Apr. 19 when Party Secretary Ma Han-san
advised them "to return to their places and engage in production," as this was the
best way to gain from the anticorruption drive.
Peking stated in numeral code (Apr. 25) that workers in the privately-owned Hsinglung
Ironworks persuaded its owners to confess their corruption and gain leniency, through
worker-manager consultations "were able to overcome the defeatist attitude of the
management toward production," and urged that capital investment be increased "so
?that,vrkers would not stand around idle." Workers agreed to arrive and leave at
designated hours; not to be absent without cause or leave their jobs daring working
hos; to inform the management on personal circumstances; and not to hang around the
front office and talk or read newspapers without good reason for doing so. As a
result of these agreements the factory fulfilled a contract with the Mukden office
of the China Equipment Company at a reduction of 18 percent in cost and with no
defects among the 30 items processed.
Reduced Costs and Prices. Shanghai asserted
corruption drive the Nanking Power Plant had
cent, while in the Chishuyen Railway Shops 1
quarter of 1952. Yangchow claimed (Apr. 21)
workers to reduce costs the prices for goods
companies had been greatly reduced.
(Apr. 24) that as a result of the anti-
been able to reduce costs 12-18 per-
.5 billion yuan was saved during the first
that because of the willingness of
processed by private business for State
Tsinan stated (Apr. 27) that as a result of the anticorruption drive the Shantung
Department of Commerce had ordered a reduction in flour prices averaging 10.16
percent, and had cut Pa-i brand flour from 14,000 to 11,000 yuan a bag in Tainan, and
from 18,500 to 15,500 yuan in Tsingtao. Wuhan announced (Apr. 26) that all depart-
ment stores in Wuhan had offered a 5 percent discount on sales for 4 days starting
Apr. 27. Chungking stated (Apr. 23) that in eastern Szechwan the drive had brought
charcoal prices down 21 percent, leading to a drop in other prices. Chungking said
(Apr. 24) that the China Medicine Company, Southwest branch, had cut prices on 230
kinds of medicine 3-57 percent.
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Peking reported in numeral code (Apr. 21) that Huang Yen-pei told the Central Govern-
ment Administrative Council Apr. 19 that the "impact of the three-anti's and five-
anti's drives on the Nation will have a lasting affect," and stated that not only
had the Nation's price structure been stabilized, but it also had started a downward
trend. Peking stated (Apr. 23) that all China General Merchandise stores had been
instructed to cut prices 5 percent for 4 days starting Apr. 27. Peking reported
(Apr, 27) that the German press had carried considerable comment on price reductions
in China.
Shanghai's market quotations (Apr. 24) showed a reduction in the past week of 2.7
percent in the price of flour at Tsinan, and 3.7 percent in Hangchaw. Yellow beans
dropped 0.6 percent in Nanking, while newsprint dropped about 5 percent in Tsinan,
Nanking and Hangchow. No other quotations showed any change, and no reports were
given from Foochow. Market quotations broadcast by Chungking (Apr. 25) showed flour
68,000 yuan per bag, an increase of 1,500 yuan since Apr. 15; medium grade rice
94;000 yuan per 100 catties, an increase of 8,000 yuan; yellow beans 97,000 yuan, an
increase of 3;000; wheat 80;000; a decrease of 3;000; first grade millet 83,000, an
increase of 4,500; pork 340,000 yuan per 100 catties, a decrease of 20,000 yuan;
eggs 25,000 per 1009 an increase of 1,000 yuan; and salt; vegetable oil, sugar,
cotton, cotton yarn, and charcoal showed no change in price since Apr. 15.
rodc-tinsand Aims. Chinchow announced (Apr. 27) that workers in the Chinchow
Power Equipment Bureau would use waste materials to construct a transformer as their
gift to the Nation on May Day. Sian claimed (Apr. 23) that workers in the Lanchow
Power Plant had produced an electric pump that would irrigate 3 mou of land per day.
Peking said in numeral code (Apr. 21) that Li Chi-lin, technician at the Fukuo Mine
of the Hsian Colliery; Northeast China, had invented an aerodynamic mine shaft
ventilator weighing only 20 kilograms; and a powered rock sprayer to prevent mine
shaft explosions.
Mukden announced (Apr. 25) that the Northeast Department of Industry would start a
surveying training class with 70 students Apr. 11 under the direction of Soviet
technician (Shubakov), who would teach them progressive Soviet industrial engineer-
ing techniques. Shanghai asserted (Apr. 27) that 339,000 workers in 720 Shanghai
factories now were covered by insurance, were provided with health, sanitation, and
hospital facilities, including new worker sanatoria at Hsihu and Chingtao, and enjoyed
new worker housing in West Shanghai.
Nnkden reported (Apr. 27) that in mid-April the "Northeast Conference on the Coordina-
tion and Equalization of Labor" met and decided to call up 140,000 laborers to work
, on National defense and industrial projects in 1952, with 20,000 laborers to be
enlisted by the Northeast Government and 120,000 by local construction offices.
Peking in numeral code (Apr. 25) quoted Kao Kang as telling the Northeast Conference
the 140,000 laborers would be divided into three groups, to work on National defense
and heavy industry projects; on light industry projects; and on all other types of
projects. He called upon workers and administrators to make the work "fast, good,
and cheap," to eliminate graft and shoddy work, and to cut costs on all projects
10-15 percent. He also urged careful planning an all projects and attacked the
"gang leader system" which exists among workers,
Losses and lures, Anshan reported (Apr, 22) that the KONG JEN SENG HO RAO had
demanded an immediate tightening of security measures at the Anshan Steel Works,
where woman worker Alt Wei-li recently was killed in an accident; a worker named Ho
was killed and others injured in an explosion Apr. 14; an explosion Apr. 13 held
up production 7 hours; and a huge fire Apr. 15 in the plant and workers quarters
held up production and caused material damage. Nnkden announced (Apr. 21) that the
Northeast People's Economic Planning Commission had demanded improvements in the
railway transport of the area, especially in the transport of lumber. Tsinan said
(Apr. 27) that at Changwei, Shantung, cadres implementing the work relief program
had been charged with bureaucracy and indifference to the needs of the people, while
State trading companies had been asked to sell goods at reduced prices to famine
sufferers.
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Shanghai announced (Apr. 23) that Mao Shang-chi and Mao Hsi-seng of Kuanglu Hsiang,
Paoan Chu, Hsiaoshan Hsien, Chekiang, were arrested for setting mountain fires
Apr, 17 which burned over 10 IODU of timberland, destroying 23,000 trees worth 300
million yuan. Shanghai reported (Apr, 27) that\1,000 fishing boats left Shenchiamen
to bring in the annual catch after economic organizations had helped the fishermen
tide over their difficulties by advancing 30,000 catties of rice, salt, and money.
Yangchow revealed (Apr. 23) that in the Nantung Textile Factory a shortage of
materials had held up production, so substitutes were used in the making of canvas
belts.
Peking said in numeral code (Apr. 23) that the bureaucratic attitude of warehouse
cadres caused considerable loss last year, so steps had been taken this year by the
Chungking branches of the China Grain Company and the China General Merchandise
Company to clean the warehouses of weevils, air the grain, and organize special sales
forces to move perishable goods. Wuhsi announced (Apr, 23) that in the Changchou,
Kiangsu, branch of the China Food Company a "protect the grain" movement had been
launched, with grain now aired 8-9 times a month instead of the former 5-6. Chungking
reported (Apr. 27) that warehouse cadres in Chengtu and Huayang Hsien, Szechwan, and
Yaan Hsien, Sikang, had been charged with gross negligence in care of Government
property when grain in four Szechwan warehouses was found rat-infested, mildewed, and
full of weevils, while wheat, rice, and barley in Yaan was badly infested and
germinating.
AGRICULTURAL PROBLEM
aLag.211...4_ouction_, Shanghai asserted (Apr. 22) that cadres in Maehang Chu, Ssuyang
Hsien, Klangsu, were dissatisfied with their farm production quota of 4.8 million
catties, had it raised to 10 million, and then to 38 million when a check disclosed
bumper crop conditions. Wuhan announced (Apr. 27) that 27,000 men of the conservancy
and civilian labor corps had been mobilized to push conservancy work in Hunan Province,
where they were organized into work teams and were challenging each other.
Chungking announced (Apr'. 21) that the Sikang Party Committee had issued a directive
calling upon the people of all nationalities to promote the spring farming program
by repairing irrigation systems, expanding acreage, and increasing flocks and
herds. Chungking reported (Apr. 23) that the Production and Drought Fighting Office
of southern Szechwan was planning a Production and Drought Fighting Day, when
2,500 teachers and students would assist the peasants. Peasants 1n Wanhsien,
Szechwan, were reported busy carrying out the preferential treatment program by
doing farm work for dependents of Armymen. Chungking said (Apr. 25) that a special
program would be broadcast Apr. 26 by the Southwest Production and Drought Control
Office, with Government officials discussing irrigation, work relief, and spring
production. Farmers in Sikang had been instructed to carry out the preferential
treatment program on the farms, with local Government offices instructed to
implement and check the program.
Land Reform. Nanchang reported (Apr. 22) that cadres in Kuangfeng Hsien, Kiangsi,
had "lapsed into indifference" after land reform, with two Militia leaders resign-
ing and liberated peasants falling under the sway of the landlords, who continued
their activities against the people. In Linchuan Hsien cadres relaxed their
vigilance and spent too much time promoting spring farming, with the result that
landlords refused to farm the land, and damaged Government property by destroying
trees and waterwheels. Nanchang said (Apr. 27) that in Tungchin Hsiang, Yunkan
Hsien, Kiangei, landlords still were trying to sabotage production, and had put
fertilizer in peasants drinking water to make them sick.
Chungking reported (Apr. 25) that in eastern Szechwan hsien many peasants had
solved their spring production problems by selling the assets received from land
reform to buy farm equipment and fertilizer, but that some had used these assets
for wining and dining, a practice the cadres should stop. Peking reported in
numeral code (Apr. 22) that as a result'of land reform Han farmers in Wutang Chu,
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Kueichu Helen, Kweichow, assisted Miao tribesmen in Mao Tsao Tsun with gifts of
clothing, tools, oxen, and 24 million yuan which they obtained from confiscated
assets, and helped them to plow and irrigate their land.
Kunming asserted (Apr. 22) that in Yuchi Hsien, Yunnan, the landlords had been
exterminated and the confiscated assets used by the peasants to buy oxen and
implements for spring farming. Kunming added (Apr. 25) that the Yuchi Hsien Party
Committee had organized an indoctrination class for women so that they might under-
stand the importance of land reform and hear talks on mutual aid teams, the People's
Militia, and the marriage law. After indoctrination 183 progressive women joined
rural work programs. In Luliang and Lunen Helen, Yunnan, new cadres were not sure
of their position and failed to completely liquidate the landlords, who continued
to prey upon the ignorance of the peasants and say the land distribution was unjust.
As a result the leadership had to be strengthened so the landlords could be extermi-
nated and their assets confiscated.
ChInchow reported (Apr. 23) that peasants in Ihsien Helen,
Liaosi were 400 mou short in their cotton planting, while those in Heishan Helen
were 86 moi short. Therefore cadres were ordered to strengthen their leadership and
"overcome the indifference of the farmers." Yangchow announced (Apr. 24) that in
one hsiang of Huaian Hsien, Kiangsu, the Party Committee mobilized 800 peasants to
catch locusts which were damaging farm crops. Yangchow said (Apr. 27) that rural
cadres in northern Kiangsu had been ordered to take more positive steps in directing
the farm program, as "farmers are doing very much as they please and not promoting
the farm production program."
Wuhsi ennouneed (Apr. 24) that cadres in Chiangyin Hsien, Kiangsu, had been .
instructed to fight the plague of red spiders, which had attaeked 21,165 mou of
wheatland. Shanghai said (Apr. 27) that the wheat crop in 11 hsien of East China
was endangered by the red spider attack, and quoted the CHIEH FANG JTH PAO as warn-
ing that "East China's double catastrophe of drought and inseet plague have greatly
endangered this year's crops, and emergency measures must be taken at once to save
the situation." Serious drought conditions had been reported from Tungyang, Sheng,
and Linhai Helen, Chekiang, with farmlands rapidly drying up and crops withering,
and 70 percent of the farmland in 52 hsiang of Sheng Hsien without water, half of
it already eaked.
Nanchang reported (Apr. 24) that in Tuanhuang Hsiang, Yingkan Chu, Yuchiang Hsien,
Kiangsi, farmers had been urged to lend grain to "destitute and hired peasants to
help them tide over the spring famine." Dependents of martyrs and military
personrel also had been criticized "for not endeavoring to rescue themselves and
for awaiting Government relief." A farmer named Wang Shui-feng was singled out as
a typical example of the complacency "representative of the backward thoughts of
petty agricultural producers," who emphasized production and neglected the study
of politics, minded his awn personal interests and neglected the integral benefits
of the State, and made cadres realize the necessity of continuing the class struggle
in rural areas. Nanchang said (Apr. 27) that the Kanchou Distriet Commissioner,
Kiangei, had ordered rural cadres to improve their construction and inspection of
conservancy projects, as a checkup in Tsuncheng Chu, Tayu Helen, and in Hsinfeng
Helen, had shown a large number of projects destroyed by spring rains.
Sian complained (Apr. 23) that in the old revolutionary bases the work of increas-
ing production and fighting drought had not been carried out successfully because
of poor leadership? Sian said (Apr. 26) that the Northwest Department of
Agriculture and Forestry had called upon rural cadres to train peasants in the use
of insect sprayers, as farmers in Sanyuan Hsien, Shensi, were reported to have
discarded their sprayers because they were damaged and never repaired. Chungking
reported (Apr. 25) that cadres in Pan, Yinchiang, and Tushan Hsien, Kweichow, had
been ordered to "correct their erroneous attitude of concentrating on the struggle
against feudalism at the expense of the spring production drive." Chungking said
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(Apr. 27) that in southern Szechwan various hsien Governments were distributing relief
grain and People's Banks were making food loans, as hailstorms had destroyed rice
seedlings and brought on spring famine.
Kunming stated (Apr. 22) that in Huihsi Hsien, Yunnan, cadres had sent 1,000 families
to engage in supplementary production "instead of distributing relief food," but were
overcoming their indifference to spring production and famine relief. Kunming said
(Apr. 23) that in Kuchiu Hsien, Yunnan, cadres had been ordered to correct their
thinking, as they had placed land reform above production, stopping farmers who were
busy on their farms and accusing them of backwardness for not paying sufficient
attention to land reform. In Hsiang No. 1, Liushun Hsien, and in Yuchi Hsien, cadres
neglected the "basic concept of production" and the necessary coordination of land
reform with production. They paid no attention to peasants' difficulties, such as
shortage of food, seed, and tools, with the result that "the struggle against the
landlords achieved only preliminary results because of the peasants low enthusiasm
for fighting the landlord class."
MISCELLANEOUS
Na:_241-LogeInties. Wuhan announced (Apr. 24) that 170 students of 11 nationalities
from the Central and South China branch of the Institute of Nationalities left for
Peking under the leadership of Chang Ling-han for a tour of the Nation. Chungking
reported (Apr. 23) that 500 students, 97 of wham already were Youth Corps members,
graduated Apr. 15 from the Szechwan branch of the College of Nationalities after
thorough indoctrination in Marxism-Leninism, the theories of Mao Tse-tung, and the
concord of nationalities. Peking stated in numeral node (Plpr. 24) that the Central
Ministry of Health had organized 117 health centers in minority areas, and had
dispatched more than 45 medical and epidemic control teams to such places as Kangting,
Kantzu, and Patang, Sikang; Chuehlo, Tsinghal4 and the plains of eastern Szechwan.
Peking reported in numeral code (Apr. 27) that more than 15,000 Han and Mongols of
Ikechou League recently commemorated the death of Genghis Khan.
aanterrevolutimaries. Nanchang announced (Apr. 23) that eight counterrevolution-
aries, including Chen Cheng-peng and Chen Chu-cho, were executed following a public
trial in Chu 5 of the city Apr. 4. Chen Cheng-peng was supervisor of the Nanchang
Committee of the Kuomintang, killed more than 10 persons while operating underground
against the Communist Party, secretly carried arms, and refused to register as a
Kuomintang member. Rimming reported (Apr. 23) that the Yunnan Department of Safety
had arrested several "running dogs of the imperialists," and would expel at once
French imperialists Wu Chi-chun and Tai Yu-kuang of the Kunming St. Paul's
Orphanage, and Italian imperialist Peng Te-chu of the Catholic Orphanage in Tali
Hsien, accused of causing the death of 200 Chinese orphans while serving American
imperialists. Chinese lay workers Chen Chin-hua, Chao Yu-liangs Liu Runs and Chou
Chi-tan were imprisoned.
Russian,akagAbip. Peking reported in numeral code (Apr. 27) that on the second
anniversary of the founding of the Chinese-Changchun Railways Minister of Railways
Teng Tai-yuan praised the united efforts of Soviet and Chinese workers in completing
transportation, norms 23 days ahead of schedule, and declared that the "Soviet
comrades have faithfully and gradually put into practice the Soviet system of rail-
way administration." He declared that the Chinese staff had "systematically and
collectively" learned from their Soviet comrades, and in turn taught these
techniques to "comrades of other railways who were assigned to train with the
Chinese-Changchun Railway." Hofei announced (Apr. 24) that a model coal miner
from the Tatung Mines was given an ovation as he left for the USSR to participate
in May Day celebrations.
Mili, Sian reported (Apr. 26) that workers and public organiza-
tions in Lanchow, Kansus held a celebration in honor of Chang Tao-jen and 96
workers who left for the Korean front. Veterans of the Korean war recuperating
in Sian hospitals were recently awarded Resist-America, Aid-Korea medals. Kunming
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announced (Apr. 23) that the local Garrison Command Headquarters had scheduled air-
raid practice from 11 a.m. to 12:30 p.m., when one plane would make a test flight.
Residents were warned not to become frightened. Wuhan announced (Apr. 21) that
soldiers of the People's Liberation Army were working on the Chinchiang Conservancy
Project. A Peking home service broadcast said (Apr. 24) that according to a TASS
report from Tokyo a virulent diarrhea was spreading in Japan as a result of the
use of bacteriological warfare in Korea.
Nualmajay. Kunming reported (Apr. 21) that Chang Chin-fa-and Lu Han-sang, Yuchi
Hsien cadres, had been ordered arrested for interfering in the marriage of Li
Chin-sano woman delegate, and forcing her to commit suicide. Several women delegated
and cadres had been involved in marital mixups which led to tragedy.
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