INDICATIONS OF PSYCHOLOGICAL VULNERABILITIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000300010005-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 12
• Document Creation Date: December 12, 2016
• Document Release Date: January 30, 2002
• Sequence Number: 5
• Publication Date: June 20, 1952
• Content Type: REPORT

NOV 1951 -
Approveeakaagnis2052/131028 NEFIARREM81-04864A000300010005-2
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY COMMUNIST CHINA
SUBJECT INDICATIONS OF PSYCHOLOGICAL VULNERABILITIES
PLACE ACQUIRED BY SOURCE
DATE ACQUIRED BY SOURCE
DATE OF INFORMATION
CHANGE TO
UNCLASSIFIED
PER REGRADING
BULLETIN NO._2.4)
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE 'UNITED STATES, WITHIN THE MEANING OF TITLE 18, SECTIONS 793
AND 790, OF THE U.S. CODE, AS AMENDED. ITS TRANSMISSION OR REVE-
LATION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHORIZED PERSON IS
PROHIBITED BY LAW. THE REPRODUCTION OF THIS FORM IS PROHIBITED.
THIS IS UNEVALUATED INFORMATION
SOURCE Monitored Broadcasts
REPORT NO.
RESPONSIVE TO
1
2
3
CD NO.
00/C NO.
ORR NO.
SI/DAS NO.
DATE OF DISTR
NO. OF PAGES
NO. OF ENCLS.
(AT END)
0t1
SUPP. TO
REPORT NO.
CPW Report No. 22 -- COMMUNIST aum
(May 12 - 18, 1952)
SUMMARY
Austerity Committees and People's Tribunals work diligently to settle corruption cases;
workers are urged to help their employers restore production and State comparies to give
busineSs to private firms, and businessmen are offered refunds on taxes and fines if only
they will get business back to normal. Yet despite this anxiety to have done with the
anticorruption drive, the apparent No. 1 aim of the broadcasting stations is to convince
listeners that the drive has strengthened both capital and labor. Workers are c:redited
with improving techniques, becorrt'ng more efficient, and achieving a higher plane by
becoming "supervisors" of their employers. "Model accusers" and 4mode1 informers" who
were rewarded with promotions are represented as accomplishing miracles in business,
though it was admitted only a few weeks ago that many of them were unable to "handle their
new jobs. Workers are promised higher wages, new houses, and better living corglItions from
the gains of the drive. The need for new houses is apparent from a EUnming admission
that "no regular housing is available" for 90 percent of the city's workers; further
disappointment may be in store, for in the Northeast higher housing allowances now are
offset by higher rents.
One noticeable result of the drive is the rising iqportance of the Youth Corps, which has
strengthened its membership with thousands Of enthusiastic anticorruption workers,, many
of them now assigned to Government positions, and seems to have assumed the tecelr of
supervising capital through its nevmembers. Many of these are given special courses in
business, along with political indoctrination. Another obvious result of the drive is
the disclosure of inefficiency among State trading companies, which in some areas fulfilled
only 80 percent of their 1951 contracts. A tightening of controls over these concerns
is seen, with all major purchasing to be done through Central GOvernment agencies and
- CONFIDENTIAL - - - -
SECURITY INFORMATION
1952
DISTRIBUTION
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cooperative. limited to small local operations.
Cadres get their Lionel quota of criticism for farm ills, especially in the Southwest,
where in one district they distributed loans equally among all farmers, irrespective
of need, and where drorght, flood, insects, and livestock disease are serious. 'Even
more serious is the farm situation in southern Kiangsup where only about half the
cotton land is under .cultivation. Medical workers are singled out for special censure,
as they do not want to work for State organs; schools are accused of being reactionary;
and new attacks on missionaries are disclosed.
CONF1DEDLUAL
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NOV 1951 ?
COUNTRY
SUBJECT
Approved F9Lpelease 2002106/218':10WPOP404864A000300010005-2
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
FOR OnICIAL USE O REPORT NONLY
PLACE ACQUIRED BY SOURCE
DATE ACQUIRED BY SOURCE
DATE OF INFORMATION
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES, WITHIN THE MEANING OF TITLE 18, SECTIONS 793
AND 794, OF THE U.S. CODE, AS AMENDED. ITS TRANSMISSION OR REVE-
LATION OF ITS CONTENTS TO OR. RECEIPT BY AN UNAUTHORIZED PERSON IS
PROHIBITED OY LAW. THE REPRODUCTION OF THIS FORM IS PROHIBITED.
THIS - IS -UNEVALUATED- INFORMATION
SOURCE Monitored Broadcasts
DISTRIBUTION J STATE
25X1A
RESPONSIVE TO
1
2
3
CD NO.
00/C NO.
ORR NO.
SI/DAS NO.
DATE OF DISTR.
? NO. OF PAGES
NO. OF ENCLS.
(AT END)
SUPP. TO
REPORT NO.
CPW Report No. 22-A -- COMMUNIST CHINA.
(May 12 - 18, 1952)
CONTENTS
ARTIWASTEt ALTICORRUPTION0 ANTIBUREAUGRACY
00000004 00
1
CO !for CE AND INDUSTRY.. 6000000000000001
000000 00
2
AGRICULTURAL PROBLEMS.....
....m.o.
6
PROPAGANDA AND INDOCTRINATION........................ .
8
MISCELLANEOUS.... octootoe l000ci000moottoode
oo.50.000000
9
ARMY
SECURITY INFORMATION
I NAVY
!AIR
FBI
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ALITIWTEp ANTICORRUPTION, ANTIBUREKUCRACY?
Development of Drive, Tsinan reported (May 12) that 136,000 persons visited the
local anticorruption exhibition. Dairen announced (May 16) that Dairen and Port
Arthur authorities arrested hoo corrupt elements in a 20-day roUtaMM, and that
during the drive workers had made 100,000 accusations. Wuhsi said Nay 13) that in
Changchou the China General Merchandise Co. called a meeting of Go model workers
to publicize price reductions and "strengthen the determination of the workers to
-promote" the anticorruption drive. Wuhsi reported (May 12) that in mobilizing
its forces to persuade corrupt merchants to confess the Wuhsi Women's Democratic
League had called together family members of the merchants to hold discussions
until the corrupt elements were ready to confess. In this way the owner of the
Chungming Machine Shop was prevailed upon to confess and seek leniency.
Anshan announced Nay 18) that 19 active shop clerks had been taken into the local
Youth Corps at a ceremony May 80 after which a rally was held May 13 to "strengthen
the unity" of Youth Corps members in their surveillance of the capitalist class*
More than 800 cadres were told that it was their duty to watch capitalists and
prevent them from carrying on illegal operations&
Adjudication and Settlement. Shanghai reported Nay 12) that at a May 10 meeting
of the City Council a decision was made to set up a People's Tribunal to handle
serious corruption cases, while Mayor Chen called for a settlement of the cases
"in the spirit of magnanimity shown by the Central Government directive, so
that production could be encouraged." Shanghai said (May 13) that at a meeting
of all circles in Tsinan the Mayor declared that all private traders would be
given lenient treatment if they were willing to increase production, promised
that corrupt elements would not be fined if they agreed to confess and resume
production, but asserted that those who refused to confess would be fined heavily.
Hangchow declared Nay 13) that the local Austerity Committees in the city were
reviewing thr cases of firms whose corruption had been adjudicated, with the
idea of granting greater leniency. The case of textile merchant Jen Yeh-chai
was reopened and the firm reclassified as law-abiding because Jen war -Tilling
to invest more capital and encourage production, although he had formerly
obstructed the drive and had been given a heavy sentence. Chang Shui-chien0
a worker in the HUafeng Textile Mills, reported that the workers had reduced
the percentage of defective goods "in order to help the mill owners." Hangchow
reported Nay 14) that the Hangchow People's Tribunal May 12 sentenced Kho I-jen
of the Te Hsin Construction Co a to lift imprisonment for refusing to confess,
forming mutual alliances, cheating on defense construction contracts, and stealing
4,000 trees during the Kuomintang regime; Han Erh-lao of the Han Chang Hsing
contracting firm, charged with cheating on military contracts during the Chushan Island
invasion, was pardoned when he confessed and made restitution; Tu Cheng was sentenced
to 7 years and Yang Te-fn to 5 years; and 10 other cases were settled. The People's
Tribunal of Chinhual Chekiang, ordered the arrest of ham dealer Wang Yeh-fa
because he refused to confess, and allowed lenient treatment for Li Shao-yuan,
dwho embezzled 220 million yuan, because he confessed and made restitution.
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NUhsi announced (May 12) that the local Austerity Committee had called a meeting of
all district subcommittees to discuss plans for complete adjudication of all cases
in order to bring the drive to a close and "change the emphasis to production." In
Wuhsien, Kiangsul workers in the transport, hardware, textile, and food trades were
expediting investigations in order to adjudicate rapidly all corruption cases, with
105 cases being investigated under the five-antits program and 3,000 adjudications
already completed. Yangchow stated (May 15) that in Nantung, Kiangsu, 3,646 firms now
had been classified under the third stage of the five-antis drive, with 95.22
percent of all cases settled. Most lawbreaking capitalists had confessed and resumed
legitimate busineSs under the leadership of the working class.
Kunming reported (May 14) that the People ,s Tribunal of the Chaotung Special
District, Yunnan, allowed lenient treatment on May 7 for eight corrupt elements
who confessed and made restitution, while two others were sentenced to prison for
refusing to confess. Kunming stated (May 18) that the Kunming Ansterity Committee
had ordered cadres in the Yunnan Postal Telegraph Bureau to make a full investigation
of oorrupt elements in the Bureau, as there had been laxity in seeking the return of
embezzled property.
COMMEICE MID INDUSTRY
Gains from Anticorruption Drive. Peking reported in numeral code (May 13) that as a
result of the anticorruption drive officials in the State-owned Kalgan Mining
Equipment Co* now consulted the workers in mapping production plans, had installed
requisition, inventory, and operational systems to eliminate waste, and had increased
production 28 percent. The anticorruption drive had disclosed that the company
operated without any definite procedure, filed work plans without consulting them:
was regularly short of materials and loaded down with lead stock: regularly wreckea
machines by overloading and operating at high speeds, and wasted enough in the past
3 years to pay for construction of a new factory*
Dairen asserted (May 18) that the norms at the No. 2 Power Plant had been raised 300
percent after progressive cadres had demonstrated that older workers were wrong in
saying that production could not be Increased. Tainan declared (ANy 12) that as a
result of the anticorruption drive the Taifeng Machine Shop had increased production
33 percent and the Chunglite Machine Shop 30 percent. Private businessmen were
increasing their capital and putting in more machinery, as well as allowing workers
to inspect their books and offer suggestions. Shanghai stated (May 12) that in Taengtao
the Hsin Bin and Nin Pen Flour Mills had improved production both qualitatively and
quantitatively after the anticorruption drive had led workers to sign new compents.
Shanghai said (May 17) that the Nanking Railway Administration had improved pro; tion
because of the promotion of active cadres to positions of leadership and had
established a record of 10 minutes in crossing from Hsiakuan to Pukou.
Peking said in numeral code (May 12) that in Canton the success of the anticorruption
drive led to worker-capital consultative meetings and increased production. The canton
Textile Factory No. 2 set a new production record in February; production in the copper
department of the Chieho Iron and Steel Factory for February and March was 25 percent
higher than in November and December, with a drop of 70 percent in defective goods; and
rice processors had increased their productivity efficiency 20-30 percent. Anshan asserted
(May 14) that a "new atmosphere" pervaded the Bureau of Industry Machine Factory because
of dismissal of the director, production section chief, and accounting section chief:
"promotion of a number of enthusiastic workers," and resulting new production records.
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Wuhan reported (May 13) that because of improved management following the anticorruption
drive local transactions in rice increased 8 percent, wheat 500 percent, and increases
were recorded in yarn, cloth, salt, and oil. According to Hangchow (May 14) the bureaucratic
manager of the China Good Company's Hsincheng Rice Mill at Chiathsing, Chekiang, had
refused to cooperate with the morkers, causing frequent shut-downs. and mechanical diffi-
culties that led to huge Government losses. During the anticorruption drive the Ansterity
Committee removed the manager and replaced him with Ling Chi-seng, with the result that
the factory now was increasing production.
Shanghai stated (May 12) that with adjudication of corruption cases and increased super-
vision by workers the Shanghai Satheing Textile Nills,,Huafu Chemical Coe, Changfuchi
Hardware Co., and Changhua Pharmacy had cleared out dead stock, cut costs, improved
quality of goods, and bettered working conditions. Peking reported in numeral cede (May 12)
that after the five-antigs drive established a system of examination for factory products
the Shanghai Pencil Factory was producing fewer pencils belay standard and with broken
leads; the Kungyu Dyestuff Co. had changed from a wholesale to a retail business; and
the Huaming Tobacco Factory, which formerly sold only in Shanghai, Nanking, and neighboring
areas, had sent agents to Nantung, Yinheien? and Shaohsing, and had made plans to eet up
sales offices in Sian, Canton, Hankow, and Tientsin. Shanghai asserted (may 13) that the
success of the anticorruption drive had made it possible for the East China Inland
Navigation Co. to recleee freight charges between Shanghai and langchaa 38.2 nereeat on
cloth, soap, oil, ane kerosene.
Hangchow stated (May 14) that with the reopening of five private factories Inthe city the
workers increased production and cut costs because of their increased political conseiollea
nese, while the factory owners were encouraged to increase their capital investments.
Withal reported (May 18) that the owners of the Chengmei Pharmacy of WUhaien lost interest
In keeping the business running when they were accused during the anticorruption drive of
selling fake drags. However, when the workers cooperated with the owners and devised
mays to !increase ales and stock turnover, the owners were encouraged to invest more
capital in the busineas. Wuhan asserted (day.13) that workers in Canten no held regular
sessions with shop owners to map production plans and check on proper fulfillment of
Government contracts, and as a result had cut costs 10 percent while still protecting
"the legal profits .of their employers. Wuhan reported (May 18) that Chairman Cf.hang
Nan-hsien of the Opium and Narcotic Suppression Committee of Central and South China
pointed ,out in a meeting May 13 that corruption cases involving narcotics had been
exposed during the anticorruption drive?-opening the way for final ouppreesion ef the
traffie.
Sian ;warted (May 17) that Sining merchants had so changed their thinking dariaz the anti
corruption drive that they had drawn up compacts promising Lot to cheat on labor and
materials in processing eeniracts. Sian said Nay 16) that Northileet 'eading zempaei a
had reduced prices on wheat, rice, flour., oil, salt, and other daily neeeseitree as a
result of gains made during the drive. The Shanghai market report for East China cities
(May 14) showed edible oil down 2.1 percent and newsprint down 3% percent In Nanking.
Edible oil as up 2.5 percent in Tsinan, salt up i9 percent in Teingtae, and yellow
beans up 2.4 percent in Nanking. No other items were changed since the last quotations.
Peking stated in numeral code (May 12) that trade had inereased greatly in Channjcirg
because most merchants expanded their operations when they were granted lenient treatment.
In order to encourage the merchants, Chungking workers and shop clerks recently called a
meeting to devise plans for increasing production. Chungking reported (May 12) that in the
Kmeichow branch of the China Cotton and Yarn Co. new and progressive cad-'es in the Ancount-
ing Department had audited and corrected the books, while new cadres in the Pracessing
Department had reduced the amount of cotton reqaired in a skein of yarn from 425 to '295
catties, and had increased the cloth output. In the nnnan Import-Export Co. effl-ency
had so improved that now five persons did the work formerly done by 18 in the Trading
Department, in spite of the increased volume. Chungking said (May 17) that as a result
of the anticorruption drive Chou Chi-ling had been put in charge of the Statistics
Department of the Sikang Tea Co., and immediately vas able to bring order out of chaos
and improve business.
Technical awevements. M41cden asserted. (May 13) that adoption of the Soviet system of
specifications and requisitions had greatly increased production in the Makden No, 3 Machine
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Shops'endthe Chinahow Textile Mille, as yell as in other enterprises under the Northeast
Bureau of Industry. The Northeast Machinists Union and the Power and Machine Industry
Administration set up a committee to promote progressive methods; planned a gartered.
meeting for May, and had 70 cadres undergoing training in advanced teehnignes. MUkden
said (May 14) that miners in the Northeast had been called upon to emulate the lit,
Wen-chi mining team; which set several production records after adopting the Soviet
method of coal drilling.
Dairen reported (May 13) that the Dairen Conetruction Co. and the Dairen Construction
Workers Uhion held an exhibition at which model workers demonstrated the use of new tools
and new operational techniques . Chinchow stated (Amy 14) that in the Chinchow Cennral
Telecommunications Station the technicians no longer considered themselves above ordinary
workers since the anticorruption drive, and assisted the workers, in building machines
just as good as imported ones g for instance, the air-raid alarmlanat by Tang Esi-an in
20 days. of effort. Peking aaeounced in numeral code (May 13) that Northeaat Mamhine Shop
No. 20 constructed a Model 080 small-sized experimental locomotive weighing 18 tonm?
capable of pulling 160 tons, for use in collieries and lumber nOals. Sung Jen-yran ef the
Water Supply Department of the Shanghai Bureau of Public Utilities was awarded talion
yuan for inventing an instrament, more simple and batter than the Ameriean type; tsr
checking leaks in water pipes.
Peking reported in numeral code (May 18) that the Changsha Railway Shop hal succeeded in
applying the "polished surface and tight joint" technique of fleod gate constantatian
introduced into China by Soviet experta. Wuhan said (May 16) that workers and t,echeiclans
in the Esitsun Power Plant of Canton -worked 20 months to rehabilitate a 15;000-knlmwatl
generator 20 years old, worth 4 billion yuan, placing it in service May 6.
acallanlInn and Control. kden announced Nay 12) that large relmere of eadree 'earl teen
given ideological indoctrination and commercial training to wor at trade cadres ie
Government trading companies in order to strengthen State enterprisea. Makdea 0Aas :!,(3)
quoted the EUOCHEUAO; official organ of the Northeast Railway dminietration; ae easeleg
the Railways Commission Office had been reorganized as the Northeast Office of tae
Ministry of Railways, neder Liu Chi-ying. Shanghai announced. May 13': that thm Esmt 'China
Military and Administrative Committee had organized, after 6 months *f pnevaentfrLna; the
East China Electric and Power Adnamistrative Bureau to centralize eentrol of all power
Wire in East China and provide power for large-acale construetion needs. Tittint
14) that the chief of the Lake Tal Coneervaney Bureau had been namei
chief of the Hnangshan Port Rehabilitation Office of Chiangyin Besiea? Kiaamsua afatea
will be in operation by the end of the year.
Wuhan announced (May 15) that in all Central and South province e exeept Honan? breeseries,
distilleries; livor saleamen; liquor storehouses, and. peddlers:, mmst regiaUar with local
monopoly offices and pay taxes in proportion to their profite. Only peaeanns Aamnaaatnring
less than 300 catties were exempt. The idea of the new regnlation was 'te :'ersenease
Government revenue and eqealize peodultion and consnmption." in Roaaa the ii or iudaetry
was a State monopoly; while in Nanning,' Rawngei; it had been a jovernmental monopoly an an
experimental basis since last year, with an increase in revenue of i erceet. Chetrnking
reported (May 12) that all purchasing operations in the Southwest would hare te be
approved by the Finance and Economy Committee, with all existing organizatioaal paJng
offices reqpired to get permits at once or close. In leading cities such as (enatoe or
Shanghain, purchaeing would have to be done through Central Government ageneies, while low-
level Government offices would purchase locally. Chungking stated 04Na 16) that wnrkers
in private Chungking textile mills were coonerating with the capitalists to promote
efficiency; and had set up work specifications and quality standarde, and cost accounting;
systems?
Peking announced in numeral code (May 12) that, in order to encourage air transport, the
Civil Air Transport Bureau had reduced passenger fares fram Chungking to Hankom by
500;000 yuan, making the new rate 2.3 million yuan; and had cut the rate from Chungking to
Kunming fram 3.5 million to 2.52 million yuan. Cheingking-Renkow freight rates Were eut
from 42:000 to 23,000 yuan per kilogram, and Chengking-Kunming freight rates from 520000
to 15;100 yuan per kilogram.
Appeals to Workers. Chinehow stated (May 14) that workers Ma Yu-bna and Kae 1eprmf,,kled
Chairman Mao and promised to increase production when the No. 2 Flout Mill ineream,?d wages.
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Dairen' reported (May 13) that in the Dairen Vb. 2 Power Plant corrupt cadres had been
replaced by active anticorruption drive workers, with at least a dozen of the latter now
in positions of leadership. Tsinan reported (May 13) that 155 workers, including model
workers, senior workers with 10 years of experience, and enthusiastic supporters of the
anticorruption drive, had been promoted to high positions, including shop foreman: by the
Tsingtao Bureau of the East China Textile Administration. WUhei seed (Nay 13) that in the
Government-owned WUhsien Dyeing and Weaving Co.? workers had been badly treated by the
capitalist agents that ran the plant, and produced only 14. bolts of cloth per day: half of
which was of inferior quality, on the 33 machines, Since the anticorruption drive, workers
. had received meat with their meals each day, beds in their dormitories, and educational
and health facilities, with the result that production had been raised to 24 bolts :per day,
only 10 percent of inferior qaality.
Kunming stated (Nay 12) that workers in the Knerdng Power Plant had no interest in anioa
membership befoev the anticorruption drive, but after the union adjusted their wages they
became enthusiastic members. Chungking said (May 18) that 16 labor unions in ChultOtng
had been reorganized, and had increased their membership by 6000 folloving meetirks7' en
which the unions overcame the hesitancy of members in making aceussatione against seerupt
cadres, Formerly the unions in the Szechwan hsien of Mao, ChenAta: Mieseyang, and, ZeaSning
had been in the hands of corrupt elements who exploited them for persoaal gaie,1 f
the 185 law-level unions in Nienyang Hien being corrupt.
Dairen announced Nay 18) that local office space had been reallocated to make fIff417,6
available for workers unions and make buildings available for workeret dormitemiee.
Tsinan reported (May 17) that the National Committee of the China Teatile 4orkere
Federation would complete at Tsingtao in Aagust a workers 2 sanatorium to aeeemMneafea 300
persons, at a cost of 10 billion yuan. Shanghai announced Nay 16) that a wsrkerev
housing project of 64 units was being constructed in Tsingtao at a cost of 100 milliea
yuan. It would eventually provide quarters for up to 1,000 workere? arsi eersme,e1
facilities, including a school for 1,000 pupils. Chungking repolted-(Nay 16) that the
Kunming Government had started construction on Taino Road of a workers g dormitory to
house 500: and was bending workers t dwellings to tae care of 300 each at Farah:Lame,
Changliying? and Hsiaochangtsun. In Kunming no regular housing lesa at present aseeaselebia
for 90 percent of the workers.
Dairen announced Nay 16) that Dairen and Port Arthur authorities, acting under a eieective
by the Northeast Peoples Government, had raised rents on Government housing ter State
employees and factory workers to save 200 million yuan to be applied, on eonstruetion and
repair of houses., An increase in housing allowances had been tg'azited. in Anril.
Weaknessee and Saortcomiaz. Peking reported in numeral code Oiksr theF ;Worth Cbitia
---E?T?'?trangconpezi.Lesdrae 1,153 sales contracts in 1951, of which ;30 peeeent e fnlfilled.
In order to systematize the native goods trade, it had been decided to limit large salts at.
distant markets to State trading companies in 1952, and allow cooperaileee to ha:Leile smad2
local sales. To facilitate the interflow of goods, Fingyaan Provinee erfesaized s svetem of
stations to accommodate travelere handling goods. Peking said Oise 15) that the c'eneract
Arbitration Committee of the North China Trade Oonference had cited the Northeast erediag
organizations for their failure in 1951 to fulfill contracts, Some failures resulted from
a disregard for marketing conditions. For instance, Pingyuan Province 'eought 60C.:00
catties of licorice +from Suiyuan: where it was highly marketable, and stocked eneuas:a of the
material to laet for 3 years, while Chahar bought peppers and, tobacco on the higher-priced
Pingyuan market, The Pingyaan Native Products Co. bought 580,000 eatties of tune oil In
Hunan for 635o yuan per catty, while the Pingyaan Oil Col bought the same vroduee in
Haekow at 5,445 yuan per catty, In another instance Chahar rejected an order of native
cloth from the Hopei Federation of Cooperative because of substandard luality, theugh the
contract said nothing about quality.
Tsinan reported (May 12) that the Austerity Committee of Chaicheng Tsingtacv F-_;,7 a
meeting called to persuade factory owners "to resume business," pointed cat that State
trading companies had placed processing orders, workers had increased their enthusiasm for
production, and financial assistance had been offered, even to the refunding of evaded
taxes and fines. Tsinan announced (May 16) that relief workers in Laiwu, TUngping?
Feicheng, and Wehnshan Hsien$ Shantung, had been employed in transporting goodr: ard in
walking straw mats and bags* Shanghai reported Nay 12) that Shanghai State trading
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companies had greatly increased" their orders with private fir ms0 with the result, that
trade was making progress, while bank loans were 10 times as great as last year. Shanghai
said Nay 14) that the East China branch of the China General Merchandise Co. had signed
Processing contracts with 53 private firms that "made satisfactory confessione dewing the
anticorruption drive and were producing high-quality merchandise
Hangchow reported (May 14) that the Chekiang Finance Department had ordered warehouae cadres
to Make careful checks of stocks to prevent epoilage? which had been heavy, because sone;
cadres 'mew nothing about warehousing, and through "erroneous thinking of cadres that they
should conoentrate on the anti-waste, anticorruption, antibureaucraey drive aad drop evexys
thing else." In Chuchou Haien Hsu Liang and Pao Wei-kang? cadres later removed for
corruption, left 2,000 logs to rot in the water, and in Chiangshan Haien a cadre eheaght
It 'only natural When rain leaked through the warehouse roof, and did nothing ab:It.
Wuhan announced Nay 13) that State trading companies had placed orders with 312 fiema
in 13 Wuhan trades "to tide them over the dull season.' Wuhan added Nay 16) that ehe
Government had placed orders with 800 firms in 11 trades "to revive private trade."
Chungking reported (May 15) that Chungking workers had called numeroas meetings with
capitalists to urge them to expand production to promote the national ecaaagy aad
support the Korean war." Processing charges of private merchants had been red 5-30
percent. Kunming stated Nay 14) that in a meeting of leading cadres in State aal private
industries May 7 to review the achievements of the anticorruption drive, the local Party
Committee criticized cadres in the Yunnan Textile Mills, No. 203 Factory., Taifeng Faetory?
Yuanfeng Mills? Yunnan Tobacco Co., and Yunnan Power Co., for "failere to work elesely
with workers, and assuming a superior attitude.' 'Dinning asserted (May 14) that ears in
the Kunming Labor Bureau had shown bourgeois leanings during the antieorrption delere.
On the plea that they were busy, they ignored the protest of Miming Bristle Paetata
workers then the owners stopped their food; and they strengtheued the posleiaa ef the
capitalists by refusing to act when owners in the hardware and traeaport trade e selfSheld
workerst wages and bonuses.
Peking asserted in numeral code Nay 13) that many of the 447 exportaimpari firms iA
Canton, which made up 50 percent of Cantonls private firms, had brazenly floated Ole
laws by engaging in illegal smuggling. ln March, 15 of these alwiggling riage? doine an
estimated business of 130 billion yuan in the past 2 years, vane appeehended. Theea
export-import firms included manly former bureaucratic capitaliats, eesipraderea,
landlords, gangsters, and bandits of the 'three mountains and Its peaks grips. " They
depended upon 10,000-200000 'water travelers" who moved about like ants, emuggitag soede
and peddling narcoties. They retained "smaggling specialists" who laid out routes., depleyti
smugg1ers0.and bribed customs officials. The varioue rings smuggled out sole, eli-r=T0
oxen, rice, wolfram, tin, antimony, and other item useful to imperieliet eggreeeesa, and
brought in such things as merphiue and opium. They iajured the farm eea heavily by al-Upping
out tung oil and cassia oil when the prices were to be peggedo depreaaieg the 'selrll market.
AGRICULTURAL,
PROBLEMS
Plans and Sian announced (May 16) that the Viughela Party Committee had aEnt 44
cadres to the nomadic areas to lead in developing the livestock iadaatry throagh vateriaarran
stations and attacks on preying wolf paeks. Peking reported in numeral cede Nay le) that
the Northwest Government had called upon the Governments of Shenai? Kanus and Niegasta to
improve the economy of the old revolutionary- bases by spending 5.7 billion yuan ue educa-
tion and, health; implementing the preferential treatment programe at' a aeveloping t'areatry?
agriculture, and the livestock industry. Shanghai announced Nay 14) that tae Eaet Ch-124
Government would issue 1.2 billion yuan in production subsidies and 4 billiae Noma in
relief to people of the old revolutionary bases in Fukien Province.
Wuhan reported Nay 18) that various lo'alities in Kwangtung Province had held me,-tIngs
attended by 7,000 cadres to prepare them for the coming work in igplementation ef lard
reform, and to promote 307 cadres and make cadres of 124 active elements. ChunakSas
announced Nay 12) that in Hsinfan Haien, Szechwan, and in Fueichu0 Tsuriyi,
Chinglung, Chinsha? and KWeiyang Hsien? Kweichow, the old feudalistic methods et" water
distribution had been abolished, with farmers signing 'water rights agreements" to -3e1- ep
a rational ystem. Wuhan reported (may 15) that the Panchiao Water Reservoir on the upper
Ju River, the second largest reservoir an the Haai River project, was completed May 1.
Built with 145,000 civilian laborers working 6 months, the new reseryoir would otare 244
millinn cubic; meters of water and. irrigate 150,000 =U.
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Drought.Floods? and Feats* Kunming reported Nee 14) that because of the long drought in
the Wenshan Special District of Yunnan, crops were rapidly dying and cadres were 'sorking
feverishlY" to lead the farmers in digging wells and opening irrigation systems. cadres
throughout Yunnan were warned that although the antidrought campaign had been "basicelly
completed?" they must avoid complaceney and continue to lead the farmers in assuring a
steady water supPlys
Hangchow announced Nay 14) that 5)000 171011 of wheat and 130 mau of rice had been lost in
Lungyu Hsien, Chekiang, because of defective dikes and flooding, while farmers were till
battling to save the crops in Chinhua, Linen, and Chuchou Special Districts. Wuhan reported
Nay 13) that Central and South China cadres had been warned to "overcome their indifference"
and take immediate action to repair dikes and drain swamps, while positive steps had been
taken to guard against floods in Kwangsi, Kwangtung, Hainan, and Bhpeh. Nanchang stated
(y12) that in Loping Bsien, Kiangsi, the Office of Production had issued an urgent
directive to farmers to plant emergency crops to replace the rice ruined on 50,000 MOU
of flooded farmland. Nanchang added Nay 13) that in Shangjao Bbien, Kiangsi, the laxity
of cadres in failing to lead the peasants in building flood-prevention dikes had been
responsible for the failure of hundreds of dikes and the floodJeg of 3,000 mow. Water-
wheel groups had been organized by 190 peasants in an effort to drain the flooded paddy
and save the spring rice crop.
Chungking reported Nay 14) that Government cadres, teachers, and students had joined in
a mass pest extermination campaign in Tel, Chiunglai, and KVanghan Haien of western
Szechwan, Tungchiang Hsien of northern Szecuwan, and Fushun and Changning Helen of
southern Szechwan. Chungking added Nay 15) that Party Committees in various areae of the
Southwest had called for all-out action on eradication of pests, pointing out that crops
were seriously infested in Chinfu and Shuangliu Haien, Szechwan, while caterpillar end
other insects were attacking crops in other parts of Szechwan, in Sikang, Yunnan, and
KWeichow. Chungking reported Nay 18) that livestock plague prevention station had been
set up in the Chengtu and rilienyang areas of western Szechwan since the outbreak of plagoee
among the hogs, which killed 17 percent of the 59,000 hogs in one hsien.
Resistance and Weaknesses* Peking stated in numeral code (May 15) that peasants of Shun
Helen, iirin Province, had been accused of spending their time in "sideline eeonomie
activities" rather than in farming, under the erroneous idea that they eould find an
easier way to make money. Nirteal-aid teams had made large sums of money and stored large
quantities of grain, which the peasants used as capital and blindly engaged ia trade at
the expense of farming operations. The Liu Cheng-cbang mutual-aid team organized 6
farmer cooperative, but instead of buying fertilizer and farm tools, they used 2 million
yuan to open a sugar and flour shop, and when the bean crop failed they did nothieg about
it. In many cases such cooperatives were stocked with items that moved slowly., causIng
losses of millions of yuan.
Tsinan reported (May 16) that the Shantung Work. Relief Committee called a meetins to review
relief werk? and dispatched cadres to inspect conditions in Techou, Huimin, Taien? and
Teng Helen, and the Linyi Special Administrative District. Although natural disasters
decreased in intensity in April, storms had damaged crops, native products had not been
salable, and the cadres had been lax, leaving many peasants in a precarious condition.
Tsinan said Nay 18) that in Tangyi Hsien, Shantung, the cadres had shown irresponsibility
in organizing mutual-aid teams, holding constant meetings without accomplishing anything
until the peasants refused to attend the meetings. According to Shanghai Nay 13) the
production program was failing in the southern Kiangsu cotton-growing region, with only
1.2 million mou in 10 hsien? or 50 percent of the farm land, under cultivation, with only
4o percent being farmed in the entire area, and only 10 percent planted in some major
producing centers. Yangchow announced Nay 12) that four inspection teams had been sent
to check warehouses in northern Kiangsu, where damp weather had caused rotting, and there
was considerable damage from insects and rats. Yangchow reported Nay 13) that beeause
cadres had not adequately carried out the preferential treatment program, inspectioe teams
had been sent to Hsinghua Hsien? Kiangsu, to correct the situation.
Nanchang declared Nay 12) that in Lunghsi village, Shangjao Helen, Kiangsi, the cadres
had neglected to lead the farmers, saying that farming was not their concern, while the
peasants had caused crop shortages by failing to prepare for spring farming. le addition,
well-to-do farmers refused to take part in communal affiars or aid the poor farmers.
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In Paawen Hsiang, Nanchang Hien, peasants were skeptical of the Government issue J1!
commercial fertilizer, steadfastly refusing to believe the cadres who tried to get them
to use it, until farmer Mao Hsta-Apn finally decided to experiment .by using the commencial
fertilizer on half a mon and regular fertilizer on a similar area Hancheng reported
(May 13) that in the Pinghsiang Hall of Culture, Pinghsiang Haien, Klangsi, an eXhabition
was held recently to show how local landlords and despots had caused suffering aad death
to the peasants until these evils were corrected by land reform.
Kunming aseerted, (May 13) that in Yuchi Helen, 'Taxman, cadres qaited the peasants i fears
of reprisal from ruffian landlords and thus broke down their reluctance in aoteating
the landlords-I assetro Chungking announced (May 14) that the Agricultural Affairs
Office of the Southwest Finance Department had ruled that grain levier should be fixed
-locally because of various calamitiel? should. be limited, to wheat, should be eliminated.
entirely Where the crop was a total failure? and should normally be fixed someatere
between 5-25 percent. Chnngking reported Nay 17) that although 90 percent of the agri-
cultural loans had been alloted in 53 hsien of Kkeichowa the cadres had been aarelees
in distributing the money. In Shun Haien loans vent only to a few peaeants; in Chibahin
Haien rich farmere and landlords got the loans; and in Tungtza Haien every peasant as
alloted the same amount, regardless of his needs.
Chunking reported (May 17) that, in Wan Hsien, Szechwan, peaeants had been charged with
abusing their oxen. MA Chineyung of Paiyaag Hsiang received an ox from confiscated assets
and almost worked it to death in half a day; Pei Wenahsien of Knng Chia village alti work
his ox to death; and Ya Fangali slaughtered his ox when it died from diseaae0 eoll the meat,.
and caused all the villagers to become ill. In Chu 2 the peasants sigued. a mntual pact to
protect their oxeh.
25X1A
PROPAGAMA AND INDOCTRINATION
Th2Rght Control0 aangking announced. Nay 18) that in Kweiyang0 Kaeiahow0 the anti-
corruption drive had ieached the stage of eradication of oapitaliet thoaglit amoag wnekene
and correction of bourgeois leanings among physicians. Medical personnel, at Paocheaa,
Hospital were charged with indifference in their care of patients? and with prefenring
to become capitalists engaged in private practice, or to work with private firmer rather
than accept positions with public organizatione.
Kunming stated Nay 13) that a Dratch Catholic missionary named Anderson had 'been arrested
by the security police in Kaiyuan Balen? Yunnan, and tried for eedition. After he signed
a confession he was senteneed to banishment. FUaming announced Okay 16) that ao American
missionary named Mrs e was arrested for deportation by the Yunnan Baceau a.t Patti. Safety,,
Morse first arrived in Sikang in 1921, coming ta Yannaa in 1926. Aftar be ahstnatati7d the
Peoples liberation he was arrested in Chuchi Helen in May 1951 and sentenced to A a'ear
in prison for statutory rape0 to whicth he confessed. &Inning aaaoanaed (May :hi) aaa4.
the Yunnan Catholic Association had called upon all Catholics to aeaee religiaain
activities during the land reform procedures.
Indoctrination Proceduree. Dairen announced (May 18) that the local People ge ::+carerament
EarraWrrairec axe cpOling upon the people to implement the preferential treatment
program by providing educational faailities for dependents of Armymen. Ohinahom
reported Nay 13) that a propaganda corps at the Paicheatzu Railamy Station in Taoaa hSien?
Liaosi, indoctrinated 50,000 railway passengers on the antigerm warfare eampaign. T'ainan
announced Nay 14) that the Shantung Government had issued a directive calling npon all
local Governments to give proper burial and erect suitable memorials to martyrs of 7,he
war against the Japanese and the War of Liberation, the memortala to include malt;
properJr - constructed for the storing of martyr rolls and records. Tsinan reparheA
Nay 17)
that the anticorruption exhibition sponsored by the eahoale closed. May 16.
It exposed imperialist ihfiltration of China eduaational institutions for gathea?ing
intelligence and enslaving the people; exposed the waste in schools, with large
quantities of equipment stored away and rotting; and exposed the bureaucratic
management of the schools.
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Pekingiemeral code Nay 14) qaoted from an article by the Soviet adviser, (Rosnenko),
in the PEOPLEIS DAILY On Agricultural Techniques." The article attacked "bourgeois
scholars" vho hold the opinion that "human population grows trich faster than production,
and to supply human needs the excess people ahead be exterminated." This reactionary
theory vas described as a fabrication of Wall Street varmnngers.
Chinchaw announced Nay 14) that 17 "progressive workers" who) shoved an "active interest"
in the anticorruption drive had been selected fram among local State and private
industriea to enter the Northeast Workers Institute of Political Science. Peking
reported in mural code Nay 18) that 100 cadres from the Northeast Party school had
been assigned to positions in State trading companies following an 8-morath course in trade
subjects and indoctrination aimed at correcting "their erroneous thinking that trade is
beneath them and not easy to leara." Bangchaw announced Nay 15) that the local
Federation of Labor was holding classes for low-level cadres Vho were outstanding in
the anticorruption drive, giving them indoctrination to increase their class-
consciousaess. Shanghai said Nay 17) that several thousand cadres were attending the
Hangchow classes. Sian announced May 15) that 28 Ninghsia Youth Corps members had,
been awarded citations in Yinchuan for "model behavior in various fields of endeavor.'
In Sian the Central Ministry of Education granted a scholarship for stud in Nankiaa
to factory school teacher Cheng Shou-te.
NISCEZLANIEDUS
Nat tgataISA21.,a Sian announced Nay 12) that a Uighur mutval-aid team in Tiduag
W3g0 had i gued.a bumper crop challenge to cotton farmers. Sian said Nay 16)
that lloo Han, Uighur, Mbslemg and Kazakh children were attending the school for aZ1
nationalities organized in Tihua by the kolkhozes. Kunming stated Nay 13) that a
national 'minority autonomous district Government recently was organized in the Liaatg
Ho area or Tolmari and immediately sent a message to Mao Tse-tung expressing the
gratitude of minority peoples. Peking reported in numPral code Nay 15) that the Tibetan
Peopless Autonomous District of Sikang had established small-scale State farms in 14
hsien.
InternatiOnal Trade. Mnleden stated Nay 12) that the Pashun Colliery had rea 'Aad a
Tlagni7G7711;75Trush
workers' delegation touring China offering thanks fcr the aordial
velcaMe extended them and expressing a determination to struggle for interracial:et*:
comity among the working class." Peking reported in numeral code Nay 12) that
Robert dhamheiron, secretary general of the Committee for Promotiou of Mnternational
Trade, aatended the meeting May 4 when the China committee of that oagenizatidaeaa
established under the direction of Chairman Van Han-chen and Secretary General C,1
Chao-tiaga
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