REQUESTED STUDY ON THE CHINESE COMMUNIST GRAIN CONTROL PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01049A001100020004-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 54
• Document Creation Date: November 16, 2016
• Document Release Date: January 27, 2000
• Sequence Number: 4
• Publication Date: September 16, 1954
• Content Type: MEMO

25X1A
STANDARD FORM NO. f34
SECRET
k roved For Release 2,111)0/05{1: EttAwatim049A09;1100020004-3
Off-ice Memorandum e UNITED STATES GOVERNMENT
TO : Chief,
THRU 119,91RE
Acting Chief, DIN, ORE 4?e
FROM : Acting Chief, mkka, ORE
DATE: 16 September 1954
2/Jo,
SUBJECT: Requested Study on the Chinese Communist Grain Control Program
REFERENCE: Case #K-91114
25X1A
1. This report is a survey study in response to a series of
questions, the answers to which, were desired by Many
of the answers given in this study are to questions whichdeserve
a full scale study in themselves. Within the limits of time
available and the tremendous scope of the subject matter, it is
felt that this report makes a significant contribution to the
understanding of the Chinese Communist Grain Control Program.
2. Every effort was made to give an answer to each question
asked. Frequently, only a general answer could be given. In
many cases information was lacking as to details.
3. In the WAG, meeting of 28 June 1954 which
discussed this project, it was agreed that documentation of the
finished study was nonessential.
4. 11111111wishes to consult with WAG on any aspect of
this study e responsible analyst in M/AG will, be available to
for that purpose.
50 No important procedural or substantive problems developed
in the preparation of this report.
Enclosure
BM:se
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?1.4.11 rrritl
IrrIna -411,', Child% Econmio:t Roonnueh
of Research nnd HoroilA
j*tts. 16 September 1994
tq,,t3)Riau-IIN To THE OfiiTP,F.: ROCtIr..V.fiC REST.+11?..C'fi
;?? t*?,t,7?nti g Chief Planni r!' Find. Review Staff
Trensmissi on or Dret, ,Pivoort, OYA,, Project No?,
Alittoir;
Chinese Communist Grain Control Program.
77=LOSUPSA Subject draft report CarigInal and 2 cvnisa),
%k11.004,re Is forwar0 jorewith f wr and r
aa YR
ef;atagr ITM
L2/
21.308
Ztet>ement of coordination attachedi, with initials of indisiduale mad
Non.
,tlxv-ur,,opmente for marts or grapMos tough writh Gartograpt.
DIvielm? None
0,
agency?
Beommemded Dissemination;
tandard
otnnuts ONLY E_
IC Subcommittee
t. ate gat* It04er
stmssatsrom,,,,e'
dee.
z=7.7 Other, foreign etc
f.,ittao! lint)
fiao informatiou on U3 military end product!? or manpower been mod? r
No
Ha* direct msa boon ;node of the illtallirpticte or information of kilvykrt,er
No
n:L1 nourcos boon considered in
Yes
140tirs utilised by this dision
ZrFz.nothes of oiler ORR Divisions oexiitribut,ing
marjjr iJ,ed by each g
the aration of t'Als roport7
in producing this reports
to ills report,, and (if al. 11010 ,1
? -9 -
4.5. Ima-rircleolo
9? Tho analyst responsible for consultation
25X1A
El CoarKents
None
f
v-M109)
MAG 3819
ill?WILACItri-Te712;11.111Ksi
let"
Of this tronsmittal shoot mill. ohanged, v.,onror to
tha draft reporft villeb it covera:?
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1.!A,F et XNVATS
eru ?reqientl Usoa in Taxation
U. Methods of Obtaining revenue from Agriculture ....
. ???4 041
III. ()opera' Points RgArding A-Ticultural Taxation in Communist- China
Tax it
3. 43ministrative tructure iciating to Anance
C. Levying of Aijqoultural Taxes
D. National TAX Yield and Avorage National Tax Kilte
IV. State Purchase of Lrain
A. urdor or Aanned Airallase
.. 0.00
???????
? ? ? ? ? ? e
and Planned Supply of 3rain . ?
V. Specific :4uestions on the Chinese Communist Grain Control ProF:raa .
A. ,,enera"
i. Specific
1. :-uosrvision of INrvestini!, .........
? ???? ? ........... S ..... ?
.. ? .
2. Weighing and ixaminiAtion of rfraln
? a
? ?
? IP
3. Amount of Total Crop Collected iroal fnalvidual i'sasant
4.
5.
6.
7.
Opendix I
eAorJendix II
Appenriix III
&yrnaflt for Rice Collected ...
a**404,00*
Collecting -ency . . . . . .
.. .. ? ? 0 ?? ?
3tora48 .A.0.4ncy ........
, ......?.?.
Distribution
. ? ?
Appendixes
Pais
1
3
3
? 5
?
? 9
10
? 11
? 13
? 13
? 17
? 17
18
?
20
? 23
? 25
? 23
? 30
35
45
50
CAC Directive on irioultural Taxation During 1953- . ? . ? .
Order of CAC for Knforcement_ of Planned l'urcnaso and
Planned !'.;Unply of rain
CAC Issues Provisional Measures for Control of Grain Market .
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1. Toriw :revently Jsed in Taxation.
9ofinition
ain ter 1.)1,t, are fregiently uaeo in thissurvey or the
ChiCom Grain jontrol program are as follows:
krain - i3 L' 0 standard eesi na610n of grain 4nat is
collected by the avernment as taxes.
b) Surplus rain is the standard deaigmtion of :4rain. that is
purchased from the peasant by state organs.
c) Normal annual yield - an average yield concept .which, in theory,
takes acount of the uniity of the soil, "norial"
weather, irri&ation, manpower, animal power, number
of harvests and prevailing cultural practices of the
locale in question. Taking account o. these fctra
an uverae output is established for each plot of
land. This averae output 13 tamed: "normal annuli
yield."
d) Province the adminis
analog the .'1:nited
'tates. hith the abolition o1' admini5traUve regions
in 19544 the province is the next adminisizative
echelon bioj the central government at Peking.
e) ffsien ?-? the-administrative unit naiogous to a county in the
Uni
'tatos.
an administr:itive district within a hsieu.
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g) 1tang an administrative unit, usuelly covering several villeoeo,
within a Chiluo This unit is oeneraily the lowest
administratiVe or-n of he Chinese Communist Lototo.
The vi1iae itsoli? of course, has ridiwntary
administrative ora ns and functions but the hsiang
is the smallest unit tit normally reflects the
characteristics of the monolithic $trctura h1ch is
patterned on the Central i:,overnment at Peking.
11. thods of Obt 'n ng evene from Aoricalture.
The Chinese Com,. nit C000rnment secures control of aoricultural products Oy-
a number of methods.. Three dl rerent methods of acquisition are of major importanroo
Taxation in Kind is the nost important method of acquirino revenue
he- a,
7
Oe state. Purchase of orain bo state oroano is almost equally imoortant, in
terms of aOsolute volume, in gaining control of ooriculturol oroOaco. Thisourchase
ani. sales program il also relatively iTportant as a revenue producer for the s
as ,rain is pirehaec3t prices llxed by the state and sold under eri prices.
The maroin 1s uffic1ent to yield a con31drab1e surplus which is reoarded as:
general revenue in the budoet. The third method of securing control of wealth is
in drives for donations, such as the "resist America, aid Korea" ?4ovomont, and
in the sales of bonds such oo doe r"
y bond" and constru tion bond." This last
method in terols of volume is relatively small as compared to the taxation and planned
purchase proorams.
Obreover, this last method extracts - evith fron both the arban
and rural population. For the purposes of disoussion of the Chinese Colunist
orain Oont 1'oroora it should he suificient to Oisouos aspects oL'
taxation ond aspocts of the otate purchf;se of aoricultural products.
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U. S. a L
Ifl. eneral
rain g ri
TfIT01049A001100020004-3
Taxation in Communist Chine.
it must be recohlized th,t durin: the 1:5-zis yearti the .;emn
regime has been underoin the process or growth and development. In this process
ohysical and economic_ conrxol or resources has become 'teadily razer, administnitive
experience hos grown, trainin:;- and experience or crAreo has 1ncreied, ld
;tics on resources have been improved. s a result of these and other
factorn the tax pro-ram has chnived over ti,4e. Also, Decal e o.k. the3o and other
factor;, the pro ram has wried py areas urin any ,iven time pe
eppliction has varied widely between areas even where the intent of the central
....ovornnent as uniform. These calmunts servo a,..5 notice that the I1ing. sualary-
description of _aricultural taxation_ in China 13 ra1itd 4nd that deviations
fro this i.e&criction Aay occur- in a speciric locale.
A. IX.1;ates.
In practice there were at least two district systems of ing the
a6rici1tura1 tax up through the crop year or 1952. The C1 rt and oldoht method
WI& a proportionate system unoer Which the tax --sievitxL on a percentae of the
cron or of the acreage and: no exeAption was calculated. This system was used in
the Nertheast in 192. The tax rate waried from a low Of 15 pereent in jehol
rovince to a hiRh of 23 percent in P;eilankiang, Sunjciang, and Kirin. It is
not known whe -er the proportionate system was .aain used in this area in 1953.
The second. "IA
or r
tax system is the progressive systen, in whic
tax is levied accordin to fixed rates deti3rmined by per capita in
1950 and 1951 in china, Central-South China, :And -3outhwest China the t;-x
was levied according to a set oC re=ulations oramulc,Ated by .he centrvl authoritio
in 4,Ttamber 1950. These areas were covered by a sliFhtly difforent sst of
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re#zulAtions in 1952. The schedule of ,i-ricultural tax rates for 1952 e!.re as follows:
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Classification
of To(able Income
5
6
7
9
10
RET
kair0301049A001100020004-3
rae -p,ricultural incole oi
tach gembar of the iamily l'ax Rate
Unurocesed teood Prodacts) (Percenta?A
!wdow 16q
165 to 220
220 to 275
330 to 385
385 to 440
440 to 49$
495 to 550
55o to 6o5
6o5 to 660
66o to 715
,-,xf,?,mntod
11
715 to 82?,
17
12
825 to 935
13
935 to 1045
19
14
1%5 to u55
2?
15
1155 to 1265
21
16
1265 to 1375
22
17
1375 to 1435
23
18
1485 to 1595
24
19
1595 to 1705
25
20
1705 to 1815
21
1815 to 1925
27
22
1925 to 2035
8
23
2035 to 2145
29
24_
above 21h5
30
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a S. OFFICIALS LY
In the 3enera1 'd71n1str'Ative Coulon. dir tive on ,:ricultlral ;',,xation
durine 1953 (5 June 1953) it was stated: "The 1953 t%riff of a, rjcu1turcj. tax shall
generlly be based- on the Tariff- l'or 1952. Hodever, if the tariff rates for 1952
are found to be not. in keeping with local conditions, tht provinia1 and municipal
people's governments nay draw up seberi,te ones to be athxaitted to the. Adminisrative
Committee of nAministrtive regions for approval an to the Ministry of I-Ina:nee
;latio -rd.." Thus,except for local cirowistances the above 1952 tariff
schedul.-; waa a:)parently opertive in 1253. No neg La
known.
next tfOi
LLL se iie for 1954
The 19';3 directive on aricu1tura1 taxation also st,tej tnit "f
Pi 1 he tar_et of a ricultural taxation should be stabilized at the
level of actual tax collections of 1952 and should not be im,:reased any further."
ihis wolld innr, to, v,taer with the observations on the tdriff schedule, 4b.t
is a good probability that the tariff rates All remain as Ahown throlzh
B. Administr:Aive ';itructure -elatin to Finance.
The organs' of administration of the aricultural tax are as follows:
The highest authority in Chia, before the elction of tne Ali-China Peoplats Congress.,
is the
nar
session of the Chinese Fe pie's Political Lonsaltdciv
-e nee (PGC).
The PPX elects the Central People's Government Council and vests the Council 7,4th
the power of exercising st..7:.te authority. Under the Hirection of th PPCC, the
Central ecople's GovrrreAt Council sets up a 'iovernment ;-',dministrutiveouneii (c;
as the IlLrhe3t national executive bor . Per 4he direction of national finance ..;4nO
econorv, the (AC sets uo a Committee of ..coni e Lind 1,inancia1 -ffairs. This
Committee is accountable to the _)?,C": an drct3 the work of va
OU
ministries such
as the inistry of .&-inance, Ainistry of Wood inlastry, Ainistry of:
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0_3 UMV
andisherjs
(.30raraittoo
4
and
hers. To cart., out the orders of the
Affa
'3
pedal unit of. Cinancial
rnjntj echelon. 5het1ca
,linistry of iinance - Nation61 cioverawnt
I II
tinistry of Finance - ?iaj or Almiras ative
C;04Mi.,53 on of Anance -1?Ovinee
pzrLnt,of :1nanc Hsien
ince aricultural taxes are collected in kind a Bureau. of Food
qnit is another or,Laniza
fl en
ion at each 1cwi1.
tled the LrIjon of :;z.,?ricz1tttra1
ion
tj on
,eneri overall riationships are indicated sche fically in the chart on the next
page.
C.
below.
017, tuidr the existin
es should follow a
at n 1 the col ections of
ich a roximate3 the description
two tax collection p'erlods during the yr.o
lerltion perio, which be,,
late July and runs up to thn idd1e of Actg.-
fne secor period is the autuln tax priod, rJanerally this period will bo.in In
--ptember and extend throh Oc.
r.
ca1c1 ted. as foil(
e Haien levol---called the Land 'iurvey a. d tput 4usess.
(Ojtee is
for the dotcr!intjon of norma/ annual output, i as
Abolis in 1954 and their functions
municipal. 1ive1s.
o the provincial and/or
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Hsien -
Peoples
Governnent
Demxtmont
of Finance
Bureau of
food
-ditinistration
i'ormal Structure of Oovernmantal Units ealintz
ith ik,riculiAiral Location in Comfflunint China
People' Politic :onsul;-. tive ,::onference
Central .reoplets urirvnb ouncil
Wvernlae nistrtive Corncil
Administrative*
r-,ekions
Provincial
Peoples Ministry o
r_overnment Anance
Commission
of rinance
'Bureau of
Food
Aministration
Livisfon of
Division of A ,ricaltaral
,a-Kation
fexation
Bureau of
iood
Adidnistration
jivision OL
:Aira
:taxation
3ureau of
rood
.olministrtion
Division of
Atriculural
Taxation
* Abolished in 3:34Thnd their functions Lr,-,nsforred to the provincial anO/or
municipal levels.
either a ahlu or Hsiang a:xicul,ural tax survey and evaluation committee who is
P .111ittee
of
Financial
Lind
conomic
responsible for the actual surrey of 1 rie.itural popul;-,tion ard iantaraa. There
is aloo a P.ovincial1ntt survey mil ouLout asse,s:aent co7mittec -which ha the
duty or Dromoting 1-ad assisting the Hsien Conmittee in IV: work -4nd in sett
apputes ano wjustiri. land-outout assessment 'eteen Hsien, rhe bi_gest talk of
these vnrioas con,mi,t,tes Izass of course, finisned in he early days of the Cunist
reiihri tax os in a p,r'ticult-Ir area were collected fur Vie first ti. lior*evr,
the coLe havu continued to function in oacn tax- co leci," p.lriod in order
Lo imprgve or ma-e uniform the output assostirmm work -- Witch 1.as obviously
hurrielly done the T:ii-7t time around.
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U. S. (VMS Nu
ch unit of land. is Lvan i nornal annua yi
theory- munt
theylome
- oad Et public mectinrs
i.e.. dem
e normal an3iliul yield is
a pean
chou1i then know it tax base. The normal annual yield of tht3 1m1 comroI1tci
by the peasant householddivided by the nimbzr of meMburs of he househol .
then detrinec the triLf rate apellcaI e.
7.11e resaltint 4 1
.or 1/4:eel etr of he hoase old and
liability per hear, whin a:6,J to her, :ives the
ay be above or
afi
u
ual yield but tax 1iabilL1y
wever,
L. the. actual harvest is below tno norTL annua
Ls beyond the contro
other advi3rse conditions,
feneral fram.
c:LT verning
the peasant, such as druuLht, flood disaster or
tits aal exemptions are provided for in
actice, local level tax collection, gate rriq1eft1y deVIates
rk a ivnn a, In part this is only
ive of the is to SIZ Ale
sinue tne basic
irterily contra
total tax yield for the nt1ii is us itated.,br bud rry purpoaas
e C
or less of a
Provincial and.hsien quotas became
n order to reach the rtiona1 tax yielci to n .
417)p1icat n. the chedi1ed taritr may or may not yield the qiQta established for
chlu r haien as the case may be. Ale co ion ..or
tax-oLLection
hen it i to observe
hi level is
ctr to achieve the itar.
rei1at.iorzs. a ruIt the
squeezed to a vegree vhich is not reflected. in the decree:3 establisrdiv the
Another
problem practice, 15 the tbii8hneflt oT the norms'
J. ouput fiire. .3ses3ment units are Iruoaently inexperieacefi. The normal
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annual yield for a hien or chat is either set too hirh or tocnlow. If set to
hi nh protests of peasants at the farmers oi:cussion conferencs are often ignorn .
If set too low. the farmers repre3entati
ns filler district do not object
aad this may place pressure on other areas to achieve tarnets - when actu-,11y there
exists justification for exemptions or for A more realistic npnraisal of normel
annual yiuld in other are. Then finally, there is the Ultimate problem of
Htomnannism" or "leftist deviationff among the tax collecting unins. such attiLudes
lead
o r
on of lejtimate ,nne-
, adjustmentn in normal
annual yields, and to over collection for the personal glory- of the cadres concerned.
Tax Yield and ara,e hational Thx Rate.
Within this general fraalexork the task of curjnr, pub c grain t.iy the
:;hinese- nommunints has been qwLte nuccensful. It is- estimated that the tax yield
of public grain amounted to anprowlmately 30 million tons in both 1952 and 1953.
fhis would indicate an averano tax: yield rate of about 27 percent in turns of irain
production. Taking foodstuffs production as a base the ,-, enational tax yield
would he approximately 21.5 n,eronnt.
orain produntion bein defined as wrie,t, rice, corn, ksoliang, millets, oats,
and 1)41-1ey?the toLal of ollicu .as ostimat*d at afproxtrlately 112 million tons
in 1952 and 110 nilLion tons in 1953.
This avera.e rate is oared on a foodntuffs nroduction finure of 141 million
metric tons. This amount is representative for both 1952 and 1953. This
datuali would repreaent the nrain s plus the pulses, soybeans, poanuts? certain
or the oilseeds, and potatoes on a nrain equivalent basis. The 140 million
metric tons is ac-raximately the figure reported by the ',merican Oonsal
nerpl irem 1;ong or. and is rouhly 25 million tons below the Zoo tris
figure officially reported oy the Communiots. Ose at the Conuaunist official
figure of enproximately 165 million metric tons would yield an avere,o tax
rate of 13 nercent.
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IV. Its ?sse of Orain.
Yrom the time the (o unit contros of lain'. nd h1na, vari
orns have purchased a.Ticultural ij,400C13 from thopeasant. In thT7A-,-, four years
this state purchasing program has iTown stem-Jay in sizes in terms or volume
purchased, lnd in late 1953 became almost the only outlet through hich t
peasant could dispose of any marketoble produce.
Prior to 1953 the
coo :e rdtives. These
op
Ti;; -roun uas the suohly and makreting
.ntives are, in effect consumer cooperatives, whose m4jor
purpose wis he distribution of- ,:,:ocrls, in both rural End arben areas. Sinc Olese
--
cooperAive- sold. staple foods -- rico, wheat, cooking exanple-
oil, and sa
they had purchasing Aloartments ecsignod to sup1y ecoth ties to th., cooperatives:
for resale. It is unclear as to whether, prior to 1952, purchasc of commoOlties
oy the cooper tives qere at the dispo.el of tLe uovc,rnmorit in the
sens-F, tLt
public ,rain 1,:an at the dipoa1 of the governmont, or hether the cooperative
purchases should be considered in -..hfl light o a araight merelandizing transaction.
This point, - #ever, is liLtla more than a technical quibble ince the Po1d1nga
of cooperatives were, for to budtry purposes of the natioral :?,,overnmont -4
as assets in, the national account.
.4nother purchasing unit, whid by 1953, attained .considerable importa-ice was the:
stAm -rain ency. These a?,encies are possibly under the Ministry o: t'inance 4nd
apparently have little or no connection ri_th coopertives.
the coonerative purchasing points are much more numerous than the purchasing
-ointe of the state ,?rain agencies. for eramhle, in iist China, during the sum-lor
This is based on reports tnIt stte train a, ehcies and cooperAives have en ,ed
in price competition in the purchasin_ ot rain. it has alho been rerte.1 thot
state -rain agencies pay cooperative purcnasing departments a com-ltssion fee i:or
contract purchasing for the a, ency. This, ith other minor evideLc-,
the possibility that htste _rain erciee nay be unher the ;A104 Control wreaus
of k,he '.finistry of iinance.
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rin parchssirw work of 1953, the coopor,Itives established 6,730 in purcho
points as comp,red to ebout -1-a1n purchase points ander the control hf the
stte rain a.,encies. It is aparently national. policy VAt, in general, st;:itc
a-encies should andertake purchasin- in the markets oL lr nnd medium cities
and in iajer six ci
r;ontrol purchasing in s11 hslen
clties ind In first class marlults belov, the hsien level.
Order ,:or the :Planned Purc'Isse and Plenned Ay of ,rain.
Up throlv:
.Rr of 1953 private -.,raTers, coopenitives, and hUte rain
aencies provided mar'ets for the surplus comnodities of the raral producer. -hila
oresshre waS undoubtly morale to the peasant to sell his surplus to
coru.roit{i orga:e, a certain measure of choice apeared to exist.
i-n',-Aovembor of 1953 the :-overnrvrit Administrtive Council ad o/
for rAllorcellent
xin d nurchase rInd planned supply of a L. finis lor
prictical ,)arposes? eliminated i,11 priv&te merchant,s. It , lo p aood all
mark* ts in cides ,nd tarket tons uoder st.te spic n.i sets-up a compulsory
marketing ;iota for the peasant.
The r,roces-,. of determining how much the peasant ma the state iv,
ancler the reuletions, AS iollows:
a. rie peasants should be mobilized to sell as much h_rPlas r-in to the
state&s noib1e. this is to be done throucn a uot,a system farmuleted
at hi hr love's" with a menent rosohnd at leaer levels" through
"dk.mor.r.:tic 1Lscussion" and Rny chan nlerred beck to hl,hr
authori lea for ?a:wirvel.
b. ch aricu1tra1 h oll is ,,reated as h unit.
c. The amount ol surplus raln is to be oet0,-ined as follows:
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13.
S. /00
actual _rain production ot' the household minus
1. public grain (the tx 1iai1ity of the household).
2. the amount of train to oe ase,J as saed.
3. the lint of crain to oe used br consumption in the household
(appareatly till the next crop h s ).
ear s to who is to make these determinations although the a' inistrativd
level at which they are to be made is f,
in. In the only grain directive
which is known to cover Ulet:e details, the provincial ,overnments are ch'r d-?ith
the responsibility of formulatinc the guneral consumption standard .
ihisgeneral
standsrd may be adjusted by the district or hin government in eccordaacri with
local conditions. The hs in is the administrative level char?,ed with the
aatermination a.: the amount of grain to be loft the peasant for ,..ieeding.
stanthniized seedirw; rate of the crop for the hien is to be determined with
consideration to he given to :he soil, the ,,i-ether, and the prevailin, a-rieultural
working methods. The s!or. committee ielich determines the normal annqa yield for
tax pur4oses z.pparoty isalso i-oing to c1cu1te the 7.?ctiia
n or the
unit. The peasants or Vie peasants representAdves are apparently to Op conoul
in this process alvi the determination of actual output is "sub,
by the hsiang government 111(1 norov,i1 of the chili ;;overnment.
te
Lack of information on these points 13 not surpr.aing once the circumstances are
known. The order as issued i4overaber 19, 1953. it was apparently forced on
the Ci.A0 because the s,..,Amernment grain purchasing program was badly L7,enind scheCule.
This is the most likely case--or if the action was not of an emerency nature the
order wou.I.1 hAve loOcally been made well. before the auturm harvest. Thi a order
was not released in the general press till Feb. 1954. By this iin most of the
4rren4ements and most of the compulsory purchasin of tile 1953 autumn crop had.
been comolnted. Thus, the sommer crops of 1954 were Uhe first on which my details-
coald be logically expected. In much of the country, the su;fraer purchase program
was not emphasised becJuse of the flood emerency th..at began in the latter half
of =lune. The Summar :rain flirective, from ,qhich Jul above details are taken is
that of the %orthwest .2;ht,Tia idminietrdtive Aion. the Arective ,oas publishee
in the Far Kast 0.Aily of i5 June 1954.
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thec det11s it would tpa,ir to be
Cs that the
aemin1str4tiveIin of control for bee datermim,tions of compulsory sdlling
tas i much the me for t,
nibiUty is probably
tax levy. Th& is to sa:,, th t
Ea.ureit of Food Aministnttion of
nttry of einanc .
It ha been astima ed that in 1953 this procurement pro,yaA
contra ver 2-3O million metric tons of foodstuffs. this
the 30 m
n metric tone raised
the tr
Ue of food goods and their vnry.size tends to arouse 3ome
natural
addition
are trene lous
ad the readGnaibility a. cAi3tribzion of fd
opiat1ons in rural ared which engi-ip
and :,res 3hart of food bacause
?
izA crop
failure or froze other
of 1954 the totals of thee populations- were
apprcxirnath 200 million persons.
context 60 million tons
of' i-oodstuffs ioid al..:poitr more in terms of a idniiwm neoessary forthe state to
01
to meet the d
,itn 9hih i was fac,ei.
acific 'Zuestions on the Chineo iinuni Urin Con..ro1 Proram.
Oeneral.
(1) Chine3e c umite n inist_ tive 0o- cil
and 'tconomic affairs policy sta A coiern1ng,and 12.e ;16
authority for,
storage, and
ibution of
and Klan rau.
of
In the provinces
anic-decrnu:-; reLaUn, o trJ: colloction anitDcompulso., sales
are attached a Apptmdie?s I
. hi1 a crtmLn ru of latitu
allolved to lower artanistr,tive units, the n,tional decrees 41i determine the general
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As indicated in the general text 4h1ch prefaces this section, tax
. collection is under the 4.1.nistry of Finenc. !pecifically, tax collection is
under- the Division of Agticultural Taxi-Aion of the 14Ood Stureau of the tftni,try of
iinance. 3toree respells fb: y for public ?:-Tain is also lodged with the food
1-Jureau of the anis try of finance. The gen
te
ca
proo eAe A. and storave of surplus train prb3b1y follwed the sme chain of
au ? or ty. However, this pointhas not been positively catablished.
It was 44-80 pointed out that Supply and Marketing Coopemtives
purchased grain. The in and Markting Goopir are under the :Hinistry of
Trede. In the merchandisin process these co,:perAives are also responsible for
Lrain store.
Di3tribut1on of public rai, ann probably of surplus fTin under
authoriw of the 'iinistry of Finance. The linistry of Trade is engel in distr
oull the 3u2ply and Xarketint r;ooporA;tives. Itocics required for cooper-,_tivs,
in so far as tney nre not obtai ed under the coowlr,tive parchee1ne2,: f?Nroram, are
probably aciluire,71 from th Ministry of i2inance ander a ILinistry or I-Ina-nee and
Ministry of :rade internal ?.707 rr Lizement. .he coop
f?,
or the ballc or the ,rain Bola at retail.
are the
(2 rnunt structur (s) established for the implementation o: theso
policy staterrents and directives; i.e. co-ppr-itives, natual-ald teams, state
rfs ,-?ssocicions, etc.
Aiiricaltural producer cooper,tiv-Is ut1 aid teat, stz,te
far
tc collectives are production ar:,.aizations not
tive units. They are
taxed mndit de iver surpl ,rains um-rer the sa.ae rL:1aion ich overn
peasant proOucer. Tax concessions kre made to these units, however.
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Collectives- and. "itate FArms are taxed but under rate corQe1ona tlot may exceed
5, percent of the rates applicable to an indivudua peasant. ,1.2r
Producer cooperatives, and mutual aid t.OaT3 also receive tax cwicesions. Yor
these. oroanizations the x concession may not (mooed 5 percent of the olnrol tariffs.
State iarms are. required to turn their profits over to ale M.irbtry of finance.
iarmerls associations are in a different classification. In theory,
and probably to soe degree in practice, the hsiin land survey and n
output. asseasment con-ittees consult with the Formerls Association
la as
in the :termination of normal and act,a1 output for in:117A al peasant holdince.
This is the level at which ,"democratic discussion" is held. Leadors of
lotrmeris ,ssociations nay a
teams at the hsiang level.
(3)
ua
lly be on the land survey and output assessmont
glents of aociety to whom authority hs been dosign,Ited for specific
aspecto- of thi5i er-ail program, as follows:
(a) Supervision of harvesting.
s quotas for D1b1ir, orain rui surplos 4rain are detemined
for each peasant household the supervision- of harvestino is not necessary. A,5
. -
is known, no systematic system ofi arvesting axis s.
(b) Weighinr and examination of
Public zrain is weighed. and Examined by cadres oorkino, under
the aut1or1r ozo the r1cu1ura1 Tax Division. The tax work imposes a: twice a
year peak work burden on the oriAns of the Ministry of iinances. L it this
workload the Ministry of tinance is authori7ed to ao ;personnel frota administrotive
as
:er
the au
nority of other linistries such as aoriculsaral and trade. ;No
local level tax enforcement and collection teens are usually hru-dfA by a re.ular
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employee at the Anistry of /inancs from the hien administrative level.
(quota).
(c) Amount of total crop collected from the individual peasant
In theory the amount collected should vary from peasant house-
hold to -peasant household in line with the tsriffs shown in tIle general text snd
with the application of the tariffs to the assessed normal r.nrni yield of the
Innd farmed by the. peasant. In prsotise wide d4viat1on occar bc3e of variations
in the establishment of the normal annual yield aSsessment. slso it is ssparsnt
that Sariff sencOulsa are ignored, as are legitimate exemptions, when the rites
yield a total of pub
n a: particular area -which is loser than the esses ed
quota total for that area, The amount of the Sotal crop coils-stud from the
individual peasant may vary from nothing (probably a rare case) up to 70: to dO percent.
Because of the recent imposition of the compulsory pur?ae
program little is known as to sales qts for individaal peasasts. The general
pattern will orobably have many of the characteristics of the tax collecti
It is known thst attempts are being iade to coordinate the to programs and etZrt
are being made to operate then together.
(d) Payment by colleoting anoy -fOr rice collected.
No payment 1made for publie
Surplus srain is purchased at prices set by the govormunt.
These prices are artifically low. it is roughly estimated that the governme t
purchase price is anywhere from 35 to 45 percent below free market prices or what tne
supply and demand circumstances would normally dictate. The payment for surplss
grain is made at the time of delivery to the purchasing point. Pressure: is placed
on the peasant to deposit sales- receipts with ta te banks or credit cooperatives.
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This preisure is of
nature, propa,-anual advice, 2.7tass
well wjth local cadres and party officials. Prior to the compulsory purchase ereram--
sales to cooperAives Yere also made at fixed brics and the payment iere often
in oode and cash?Terhaps on * 50..50 bats.
(e) Collecting agency
Local units and tnams of organs under the Ministry of iinance.
This refers- to public grain, probably the same is txue of surplus rain bia?, this
is not !iefinitely known.
(f) Storaeo aency
The Food "5ureau of the ninistry of Finance.
Distribution aency
Distributed under the authority of the Ministry of Yinance.
Coopertives are the retail outlets, in lar ?art, for sale of .r6in to the
pub
,r-tives are =Ger the ministry of Trade which probably secures
cooper:417e stocks by dealin, ,itLt the Ministry of -inance.
. Specific.
1. Supervision of harvestinL.
) ?last Lrain harvesting bo supervised?
No.
(b) fly whom supervised?
Not apolicable - see (a) under 1 &Jove.
(c) isciplinary action taken and by whom) in event rain i
harvested without, sup on?
Not applicable - see (a) under 1 above.
indicates questions that requester indicated as being of particular interest.
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2.":4eihing and examination of grain.
(a) is all ,,rain weighed or only that portion d6signated for
state collection?
Only the portion designated for pablic grain was
ed prior
to the 1953 autumn harvest. Ath the compulsory purchase prorr, -which was
established in late 953weigh the amount designated as
surplus erain. Under this program it is necessary to
acttial output of the
peasant household. It is very imprObablethAt th.i8 atttnate of actual output is
actually weighed after the harvest. In. sum, even with the new- program, it is
improbable that all grain is. weighed.. /ts in the case of many general practices
local deviations may occur but in this case the- weighin of all grain would
be a relatively rare phenomenon.
(b.) What- weight unit is used?
Nay vary locally to a considerable extent. etartdard weLht
unit in most es idil be the shih catty which is 500 :rams or one-half 01 a
ortion oi rice weighed desienated tor seed-rice for
subsequent plantings?
See (a) under 2 above for he general conditions bearing on this
question. 141th the compulsory purchase proram it has bacocc rzeceaDy to establish
an estimate of zeed requirements. noted in the, fsneral text this: standard
establ
3
e