ECONOMIC DEVELOPMENT OF COMMUNIST CHINA, 1949-54: PART I, NATIONAL ACCOUNTS ANALYSIS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01149A000500010005-6
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 88
• Document Creation Date: November 9, 2016
• Document Release Date: July 23, 1998
• Sequence Number: 5
• Publication Date: November 3, 1955
• Content Type: REPORT

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US Doc. No. C-1
io, 702,7
This paper consists of 83 pages.
Copy _a, of copies. Series A.
ECONOMIC DT OF CO? ![}NISI gIII1TA c 1949:.:54:
PART I. NNTIONAL ACCOUNTS ANAUTSIS
This report was prepared as part of the US contribution to the
NATO study comparing economic trends in the Free World and the
Sine Soviet bloc. The other two parts of the study which r elate
to Communist China are: Part II, Lo-atior!z,M iO. were, and
Physical roduction and Part III., Foreign Trade,
November 3, 1955
4Q? ,g:riculture. The index of agriculture, forestry, and fishing
is an average of production series for primary food crops, 'meat dnd fish
weighted by 1952 prices, of industrial,,crops move.d,by estimated
trends, in output of raw cotton, 'and fores`~rylproducts moved by: 4
production series for fuel wood and industrial wood,
Present estimates are consistent with Communist claix}s.that food
output in-.1952 was 8 percent higher than in 1936. The Colnunists
claim greater increases in agricultural output for the years from. 1949.
to 1952 than. are indicated by the food crop:'.iodex. .-It'- is likely,
however, that the Communist statistics reflect increased coverage
for reports of agricultural output in addition to actual:. increases in
agricultural output. The official claim of a slight increascin 1954
over 1953 is discounted. because of the admitted damage done by the
extensive floods in ,1954.
b : Industry, The index of modern industrial -output is a
weighted average of production series for industrial commodities.
Recent Communist announcements provide the basis for estimates of
production of pig iron, steel, cotton yarn, cement, coal, machine-made,
paper, metal-working machines, and electric power for the years from
1949 to 1954.* The announced figures for coal, cement, and cotton yarn
seem to be high in relation to present estimates of Chinese industrial
capacity. Difficulties raised by recent announcements, however, are
not considered sufficient to reject the new output estimates. Official
claims regarding increases in output may reflect in part improved
coverage in statistical reporting for the commodities concerned, in
particular, output from what was formerly handicraft production and not
counted, in pro-Cortuunist statistics. To the extent that statistical
coverage has been improved, these indexes overstate the industrial.
growth that has actually taken place.
Individual commodity:series were weighted by.1952 prices in
computing indexes for industrial categories. The overall index for
modern industry was then obta.incd by weighting the category indexes by
the estimated 1952 value added. As percentages of total value added in
modern industry, these weights are as followsr. nonferrous metals, 1..4;
ferrous metals, 13.1; coal, 10 3;. petrolewn, 0; electric power, 9.0;
general machinery, 4.7; electrical equipment, 3.0; railway equipment,
1.8; shipbuilding, 2.4; weapons and'amthunition, 4..6; food, processing,
4.7; chemicals, 2.4; rubber products, 2.6; cement, limestone, and
miscellaneous minerals, 4.9; : salt, 1.7; paper,, . 2.8;. "cigarettes, 1.5,,.
textiles, 21.0; ceramics, 2.; and printing, 2.2
c. S.~':ldicraft, transportation, and construction indexes., The
index for food processing and handicraft is an avcrage of indexes for
food crops, cotton yarn,., and other inputs. It was estiacitcd,that 80
percent of food processing was done in the handicraft sector, and 2d'
percent in modern industry (See above). Postal services and tele-
communications were moved by an index of estimated gross revenue.. !the.
index for modern transportation was based on series of ton-kilometers
of freight weighted by estimated value added in railway, water, and ,
* 954 figures are still in :a number of cases plan figures.
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highway-transportation. The index of . cement production was used as
a rough indicator of construction activity.
d. Index for trade, native transportation, and distribution
services. The index for =franc and related services is ai
composite index based on the indexes of agricultural; industrial, and
handicraft production. Weights are derived from estimates of gross
revenue in trade and transportation, excluding commodity taxes, and are
distributed as follows: agriculture, 47 percent; modern industry except
food processing, 22 percent; food processing, 23 percent; and other'..
handicraft, S. peY.cent.
e. Government index The index of government services was
obtained from indexesTof service categories weighted with their share
in the 1952 budget.
The military services index was moved by the estimated number
of regular troops in each year, including adjustment for naval and air
forces. The index of administration was obtained. by deflating
expenditures on wages of administrative personnel. by means of a price
index. For educational, medical and cultural expenditures, budget
expenditures for 10,50 to 1954 were deflated by a price index. The
index for 1936, however, was based on comparative figures for the
number of teachers, doctors, and other cultural employees.
f, Index for house rent and miscellaneous consumer services.
Rural expenditures for house rent and services were assumed to be pro-
portionate to changes in rural income as measured. by the agriculture,
forestry, and fishing production index. For urban rent and services,
the trade index was used as the best single indicator of trends in
urban income.
2. Indexes for GNP by End Use
a. Index for available consumer goods. An index of available
consumer goods was obtained by averaging series representing categories
of consumer expenditures, Weights were based on estimates of the value
of production of goods and services entering these categories and on
budget studies. The following pattern of consumer expenditures was
calculated and served as weights for the individual series: food;
62.0 percent; clothing, 10.9 percent; fuel, 2.2 percent; tobacco,
4.1 percent; wine, 2.7 percent; printing, l.L.i, percent; other goods, 1.9
percent services, 7.5 percent; and rent, 7.3 percent. The food
crop index was used to move food, wine, and other miscellaneous
commodity purchases. The yarn index was used for clothing, the coal
index for fuel, and the cigarette index for tobacco. Services and
rent were broken down into rural purchases moved by the.agricultia.re
index;... nd::'urbah purchases moved by the trade index.
b. Index for final sales to government. The index of final
sales to government was constructed from the same indexes as those used
for computing the index of income originating in the government
sector with the exception of military expenditures. The index of final
military expenditures includes expenditures on military materials and
equipment. This category is moved by indexes of goods essential to
production of military end items .and other comm.od.:ities weighted by
their estimated use pattern.
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..c. Index for investment expenditures.- The index for cement
output was used as an extremely crude indication of trends in con-
struction and installation of equipment for 1936 comparing with 1950-
1954. Budget provisions for working capital in 1952 were moved by the
trade~ibdex to serve to indicate the yearly change in inventories.
Peasant investment was moved by the index for agricultural' income.
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IV. APPENDIX. TO ESTIMATE A
Summary Tables A 'and B below show in brief form the estimates of
income and cost components for a;riculture and industry for the years
1950,-b4, The 1963 .income from other sectors is roughly estimated in the
text following the Summary Tables C and D of the 1953 value of output
from agriculture, and industry and Summary Table E of income from government
enterprise and taxes for 1953. Detailed estimates of the agricultural and
industrial production components for 1953 are shown in Tables 1-6 while
similar information for 1950-54 in less detail is shown in Tables 7-13.
Summary Table i.
1 STITTATED INCOP'ia M.".OT,'.i AGRT:CULTURE AED INDU TRY, 1950-1954
(In billion 1953 yuan)
rreim
1952
1953
1954
Agriculture.
Gross output
47.3
48.1
50.7
50.8
50.6
Deduct
20 of g.ro.ss output
for costs
9.5
9.6
10.1
10.2
10,1
Taxes on timber and
aquatic products
.insig
.1
.1
.2
.3
GNP component at factor'owst
37..8
38.4
40.5
40.4
40.2
Industry
Gross output
17.4
22.2
27.0
35.5
41.5
Deduct
Cost of materialsa
9.0
12.1
15,5
19.0
21 4
Commodity. taxes
1.8
2.1
2.7
4:11
4.8
Other costsa
0.8
1.2
0.2
0.5
0.6
Gi,TP at factor cost
5.8
6,8
8.6
11.9
14.7
Profits and depzreciation )
)
)
2.7 )
0.8 )
1.2 )
2.4
)
5.6
Business and income taxes)
)
)
1.1 )
l a,;;es and other labor income OL
5,0
5.6
6.2
8.1
9.1
a. Cost of materials are estimated in detai in Summary Table B, No
data are available on changes in cost structure for the years 1950-52.
Official Chinese Communist sources report changes in labor productivity
and costs of production in the state-owned industry for 1952-54 as
follows:
(Continued on next page)
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(Footn-:)tes for Summary Table'A., Continued)
Index 1952 = 100
in labor Decrease in cost
productivity of production
1953
1954 , .129
90,4
Using the estimate in Summary Table E for cost of materials, labor, and
other production costs for 1953 as the point of departure, cost structure
in industry is estimated for 1952-54 by applying the above indices of pro-
ductivity and production costs to the state sector and assuming no change :in the
other sectors of. industry. The 1950 and 1951 estimates assume a higher
cost of labor in relation to gross output (25% for 1951 and 2e for 1950
as compared to 23%% for 1952) and that production costs total 85% of gross
value of-output in. 1950 and 1951 (compared to an estimated 81% in 1952).
The following table is based on the above data and assumptions;
In billion Y
Cost of
materials
Labor
costs
Other
production
costs
Total
production
costs
Gross
value
1950
9.0
5.0
0.8
14,8
17.4
195'1
12.1
5.6
1.2
18.9
22.2
1952
15.5
6.2
0.2
21.9
27.0
1953
19.0
8.1
0,5.
27.6
35.5
1954
21.4
9.1
0.6
31.1
41.5
In percent o f gross value
1950
52
29
4
85
100
1951
55
25
5
85
100
1952
57
23
1
81
100
1953
54
23
1
78
100
1954
51
22
2
75
100
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Summary Table B
ESTIMATED COSTS OF MATERIALS FOR INDUSTRY, 1950-52 and 1954
(in billion 1953 yuan)
Total value of output
Tobacco
.1
.4
.3 `
.3
Timber
.5
.9
?l.O
2.1
Steel ingot
.3
.5
.7
1.1
Coke
.1
.1
.2
.2
Acids and sodas
.2
.2
.3
.4
No.-ferrous metals
n a
.1
.1
n a
Electrfc'power
.5
.6
.7
1.1
Cotton yarn
1.8
210
2.7
3.4
Percent of output based on
1953 distribution
90% of the value of flour and
edible oil output
0.9'
1.0
1.8
2.8
Ginned cotton less Y 0.7 billion
0.5
1.0
1.4
1.1
1/3 of the value of "other"
consumer ,,,,oods
1. C3 ?
1.0
1.7
2.7
Pig iron less : 0.2 billion
--w
C).1
0.3
0.4
50% of petroleum output
0.1
0.1
0.2
45% of coal output
.0.6
0..$
1.0
1.3
35% of salt output
0.1
0.2
0,4
0.4
50% of paper output
0.1
0.1
0.2
0.3
Plus 20% for distribution
1.5
2.0
2.6
3.6.,
Estimated cost of materials
9.0
12.1
15..5
21.4
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Summary Table C
AGRICULTURAL COMPONENT OF GNP, 1953
(In millions W)
Gross value of agricultural output
50, 800
Deductions for feed, seed;
in grains and oilseedsa
and waste
6,290
Interest on loansb
94
Chemical fertilizersc
504
Other costsd
3312
Subtotal
10,200
Agricultural component of GNP
400600
Utilization of income
Consumption
36, ~i95
Home consumptions
Grains and oilseeds0
19,080
Cottone
601
"All other"
1,569
Purchases from trading organsf
15,145
4, 205
Agricultural taxesg
4,000
Tax on unprocessed'timberh
167
Tax on aquatic productsh
'
38
a. See able 24)
b,'Monthly rates of interest?on agricultural loans vary between .75% for
equipment loans, 1.00% for'productive loans., and 1.50% for temporary
loans. Productive loans (those made at the planting season to furnish
capital for seed, fertilizer, and other necessary materials, and-repaid
after the harvest) have an average length of approximately six months
and consume the largest part of the loans to peasants. Therefore, the
interest charges on loans to peasants of X 1,567 million are calculated
at Y 94 million.
o. Consisting of 200,000 tons of domestically produced ammonium sulfate
and 400,000 tons of imported at a price of 840 per ton.
(Footnotes conti.iued on next page)
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(Footnotes for Summary Table C continued)
Other costs, such as materials for farm maintenance, supple,rnentary
feed for animals, soybean cake for fertilizer (3.0 million tons),
processing costs for home consu ed goods as well as costs for timber
cutting, fishing, and Lung oil processing, are shown here as a residual
between itemized costs and total estimated costs of 20% of Gross agri-
cultural output,
e. See Table 2 for detailed estimate.
f, estimated as 80% of trade sales to rural areas.
g, Value as estimated in Table 2. Government budget reports show agricul-
tural taxes to be W. 2,715 million. Presumably, the diff?rence of
41 1,285 million appears as gross income from state trade.
h. See Table 4.
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Summary Table D
ESTPIATED TAXES AND INCdM?E, FROM STATE ENTERPRISES, 1953
1953
Total
Total industrial. and commercial taxes
9,252
Industrial taxes
5,444
Business
198a
Commodity turnover
2,415 b
Commodity
1,9430
Income
888d
Other taxes
3, 808e
Income and depreciation of
government enterprises
7,669
Industrial enterprises
2,000
Railways
529
Other income
5,1400
a. The base of the business tax consists of all gross income from
industries producing goods upon which no commodity turnover tax
or commodity tax is levied.: The tax rate differs between 1% for
industries turning out producers goods, 2% for most consumer goods,
and 3% for so-called luxuries. To estimate total business tax for
1953, a rate of 1% for heavy industry, and an average rate of 2.5%
for light industry is used as ahown below.
Total revenue
less$ revenue in industries where
commodity turnover or commodity
tax is assessed
Revenue subject to business tax
Rate of tax applied
Business tax on industry
(Footnotes continued on next pare)
fi-
(in million x)
Heavy
Industry
Light
Industry
14,600
20,900
5,073
17,220
10,627
3,680
1
2.5%
106
92
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(Footnotes to Summary Table D continued)
Of which 2,248 is levied a.-ainst the industry account in CNP and 167
against the agriculture, forestry, and fisheries account as a tax on
unprocessed timber.
c. Of which 1,905 is levied against the industry account in GNP and 38
a,',ainst the agriculture, forestry,and fisheries account as a tax on
aquatic products.
d. Intone taxes on industry are roughly estimated using a base of l0/ of
the gross industrial output of X35,500 billion as net income, and a
tax rate of 250.
e. Of the total residual taxes and income from '^overnment enterprises,
the following table indicates the rough division by source of origin-
iilli.on '
State trade 3,200
Goristructi_on 905
Transportation and communications 1,500
Subtotal 5,605
Difference between market value and
budget value of agricultural taxes 1,285
Income and taxes from other operations 2905 8
Total 8,948
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Summary Table E
Value of Industrial Output, 1.953
Million.
New Y
Gross value of industrial output
35,500
Cost of materialsa
18,952
Wage ab.
7,455
Management costs 0
468
Labor insurance allotment 'sd
224
Other costse
500
Taxesf
5,239
Profits and depreciation
2,662
Industry component of GNP
At market prioesg
16P043
h
At factor cost
11, 695
See Table 5 f'or details' '~
TT_
b. According to information contained i n ..official Chinese Communist
reports, occupations are divided into five categories for wage purposes
with coal mining and smelting being in the highest category and con-
sumer goods processing in the fourth and fifth. Skills of workmen are
divided into eight classes in each category.
No details on category '5 are available. However, the highest pay
rate (grade 1. of category 1) is 315 fen per month, and lowest reported
(grade 9 of category 4) 88 fen.
An estimated 1 fon per 'month (which is between the trades 5 and
6 of category 1 and between grades 4 and 5 of category 4) for an
average appears reasonable because: 1) the larger number of employees
in consumer goods industries suggests a predominant wage rate in those
categories; 2) the reported practice is for a..n average age rate below the
median in the category.
Values of the fen in different cities and at different times in
1953 varied between Y .2213 and .2854. A rough average indicates
about Y. .25 per fen. Based on the average of 150 fen per month, this
indicates an annual average wage of 4450 for the 5.9 million employees
in industry and mining.
(Footnotes continued on next page)
~!~!lI.IiTiifii`
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(Footnotes to Summary Table E continued)
Little information is available to estimate the wages of the
estimated 20 million handicraftsmen. Labor productivity based on the
Communist figure of Y 9.6 million as total value of handicraft output
in 1953 (Table 13) would equal 480 of which labor income is a large
part probably approximating one-half assuming a subsistence level of
wa,:;es., Very roughly the total wage bill is estimated at=
Industry and mining
2$655
Handicraftsmen
4,800
Total
70455
c. According to "Principles and Practice of Economic Planning; in Chinese
Industry," Shangha , o ,ha pr po-FH i of nmanagement costs n light
industry is 15% and labor costs 85j. Using these proportions as a
rough approximation for all large-scale industryy management costs
are estimated as g 469 million.
d. Allotments for labor insurance in 1952 were reported as 160 million
or 8.66a of the payroll and increased by 40% in 1953.
e. This is a residual after costs, taxes, profits and depreciation were
estimated, and probably consists largely of interest charges, insur-
ance costs, and costs of goods spoiled during manufacture or processing.
According to Peiping,NCNA, August 5, 1954, "In the manufacture of
industrial products, some 70% of their cost goer for raw materials,
fuel, electricity, and. related expenditures," and from Kung-yeh Ch'i-yeh
Ching-chi Huo-tung Fen-,hsi, 1953 "Wages constitute an average of .22-23
percent of the cost of an industrial product." The total cost of
industrial production for 1953 is estimated at. 3G 27,599 million
(gross value less taxes, profits,'and depreciation).
Percent cost Estimated Percent of total
aooo'di.ng to costs .in costs as esti-
Chinese Communists million = mated above
(state industry) (a?Lridusry nclu ang an crafts)
70
Wages and other
.labor costs '
22
8,147
Other costs
27,599
f. As estimated in Summary Table B, profits and 'depreciation estimated
'
busirr'ess tax of 25%.
as 10%' of gross output less the estimated
The sum of wag?s and other labor costs.' all taxes, profits and,
depreciation.
h. Industry component of GNP at market prices less indirect taxes, i.e.,
commodit' and commodity turnover .taxes..
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Notes on Estimates of Income from Other Sectors
Income from 'Construction 1953
.No data are available which indicate the profit accredited to state
construction companies. It'is'probable that the 1.7 million construction
workers.' wanes average somewhat less than those of industrial workers,
i.e., 350 annually, making the wage bill-for 1953 construction of g 595
million to which rust be added the income of the statd building companies,
making a total of perhaps s 1,500 million as income from construction
during 1953.
ArV estimate for the years 1950-52 and 1954 is even more tenuous.
Probably the best guide available is the number of workers employed by
construction companies, which according to NCJJA,Peiping, January 16, 1954
numbered about 1.0 million in 1952 and 0.6 million in 1951. Using employ-
ment as a rough guide (and with no estimates of employment for 1950 or
1954) for comparison with the 1953 estimate, income from construction is
very tentatively estimated- as follows;
In billion y.;_,a,n
1950
0.2
0.5
1952
Income from Zrans ortation and Communication. 1953
The tra.nspo.rtaLion and communication component of GIP for 1963 is'
estimated at Y 1,&60 million as follows:,- . . .
Profit from: -railway operations in 1953 1:3,-estimated at `4 529 million
out of total revenue of'Z:1,552 million. Total revenue from. all types
of freight transport amounts to x. 2, 964 million.as estimated below in the
section on trade. ,No estimate:is available .for the income from communica-
tions. However, total profit from all of these services may approximate
three times the profit from railroad operations, i.e., about 1,500
,million most of which is iz come from state-:oparated companies,
The total number of employees in transportation and communication
operations.,in 1953 was 800,000, whose wages probably averaged about the
same as factory workers as estimated in Summary Table C, i.e., U. 450 per
year or a total wage bill of Y. 360 million.
The 1953 trade component of GNP is estimated at = 7,755 on the pbasis
of the following estimates and from Chinese CoTwjuriist announcements.,.
The difference between wholesale purchases of agricultural' and
industrial products.( 58,750 mi:llion) and sales t6 end-users ( 72,015'
million) as estimated in Table 5 amount-s to-'.. 131"26,5. ": Expenses of trade
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are estimated at 11.80 (1c 8,500) of total estimated sales to end-usersl
leaving 9 4,765 as profits and taxes from trade of which private trade
income, may approximate one-third. To this total must be added about
4 100 million which appears as depreciation in the expense estimate.
Total income and taxes from trade are thus estimated at = 4,865 million.
Employees in co aercial enter, rises are paid at a much lower rate
than the average in industry. Wages of the 3.3 million employees in
commerce are estimated at 14 300 per year or a wage bill of. 4 9.90 million.
In addition to these employees, there are some 10 million self-employed
tradesmen, such as hawkers and stall-keepers,, who on the average earn
relatively low wages, perhaps 200 annually at the most, making a total
of 1& 2,990 million labor income from trade. The remaining expenses of
trade are roughly divided between 4 2,800 million for transportation, and
2,710 .,n for int;.tre: t, .nsururace, and other costs.
Incomo from Finance - 1953
Income arising from financial institutions is estimated at 4 632
million in 1953. According to-the government budget, the income from:
credits, loans, and insurance was 492 million in 1.953. Most of this
was presumably income of finance and insurance agencies. employees in
financial institutions are less well-paid than are those in industry.
However, they probably receive more than do those in trade. Therrefore.,
an,average wage .of : 350 annually is estimated for the 400,0,00 persons
or a wage bill for 1953~of Y 140 million.
Income. from Other Services " 1953
Services other than those previously discussed
are valued
at Y 9,315
million during 1953 and include the following categoriess
Government administrators
1$640
Military personnel
1,827
Eduo,o.tional and health workers
960
Workers in economic enterprises not
otherwise accounted for
480
Those rendering personal services
500
Rent
1,850
Profits and taxes from ,;overnn.ont activities
not otherwise accounted for (Summary Table D) 2,058
Total 9,315
1. In 1953, freight charges anal miscellaneous expenses constituted 33.8`73,
of total trading charges and3~; ~~ )f the total value of state commerce
as a whole (Tientsin Ta Kung Pao, August 19 954). Therefore, total
trading charges amounted to 11.8jo of the value of total state trade.
Trading charges were in 1951 (Chin -.chi Chou-pao, Vol. XITI, no. 24,
1951), divided equally between: 15 transportation costs, 2) labor costs
such as handling, custodian fees, grading, packing, wages for store
employees and maiiag;ement, and 3) costs of insurance, interest,
spoilage, and depreciation.
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 Approved For Release 1999/09/21 AIAWNWil"01
54
Government payments for the 4.1 million persons involved in general
ad ,tinistration vary widely, from the highest level, ad?ninietrators to the
low'war6s of full-time cadres at the hsiang. level. An average wage of
400 may be representative (assuming tat about 10`% receive Y. 1,000,
another.,20%, about X 500, and the remaining lower level administrators
about 4 300 ), or a total wage bill of I 1, b4Q .m:i l1ion. Cor).sum.pAt 1 oh ods for
military personne:l.are estimated in Table 5 at s 1,827 million which
avera'go.s about Y. 500 annually for the 3.,5 million in the armed forces.
No additional allowance is made for income of the armed.forces since the
above estimate is certainly adequate for consumption needs and m:ay overst?.te
such income. The pay scale for teachers and others engaged in cultural,
educational, and health work is' relatively high according; to interrogation-
of persons leavin: Communist China. however, a large number of teachers
are employed in rural areas where wage scales would be considerably lower
than that in urban districts. Therefore, a wage rate of 4 400 -- below
industrial workers but above, most other employees -- is used for estimating
the wa^.o bill of l= 960 million ,for the 2.4 million en~,agod in "cultural"
work in Communist China. Workers in government agricultural and forestry.
departments and other economic enterprises not included above number, about
1.6 million An estimated, average; wage of Y. 300 per year indicates.a,
wa._;e 'bill. of about 1 480.
As many as 6 million. are believed to be employed;in various service
occupations. The inco"e from these occupational -pursuits is minimal and
is probably less than that of self-employed tradesmen ('4.100 annually) as,
estimated above or providing a total wage bill' of 1 500 million.
Rental income for 1952 was estimated as *4 1,850 million. The same
estimate is used for 1953 in the absence of additional data.
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 Approved For Release 1999/09/
CIA-Foffl DP79 01149A000500010005-6
opopm
.;;5
able, ? CTRU"SS V!,._ U 0" OUTPU'' T'RUi 1 C:`tICUT,r `U-I
Physical
output
(in riillion ton,: )
T''ood cropsb
Tobc,,cco
Ginned cotton
euatic products
limber for industrial uoodsc
1 irewoodc
Tung Oild
:111 othere
171.Ob
.202.
1.17
16.66
15.0
0.1
?Tholesaie
price
(in ,ri
a n )
200
1,614
1,542
400
100
6
7.ls0
Gross value of
output
(in million jT)
34,200
326
1,-)0/",
756
1,666
90
7C
11,O 0
50,(-)00f
a. Prices are generally for J.953 as translated and reported by the Chinese
Comunists. Physical output end total value of output are in ~.,eneral
based on Chinese Communist claims,
b. Physical output as estimated in Part II. The amount reported by the
State i_~tatistical Purepu for unhusked grain including the. Crain equiv-
alent of sweet - oteItoes and oilseeds was 165.0 million tons. T'arious
statements indicate that the Chinese Goru.:unists value millet at about
. 200 per ton. Since the reported food Output is e:: ressed in gr6
.100
o
139.2
I
.
um~lsu
p
ate
I
50
57
00
100
132.0
ron ore
43
6;
04
100
131
0
Coal
C
50,
a
~
74
0,2
100
.
116.0
opper
L
d
n
56
174
100
n
a
ea
Ti
n a
40
57
100
-
n a
n
P
t
l
n a
n a
92
100
n a
e
ro
eum
h t
32
40
6%
100
127.0
eac
he tools
G
t
20
35
67
100
Y1 a
enFre
ors
l
t
n a
48
51
100
n a
ec
ric motors
_
n a
24
70
100
n a
lectric power
50
63
7C'
100
0
Cement
64
'
11,,.0
Industrial woode
2ce
7f
100
119.0.
54.
60
100
127.0
Light Industry
Cotton yarn
59
65
100
112
5E
Cotton cloth
n
45
57
0&
100
.
121.0
Sa 4Oi wr4 CI)
'~ Cd a i S? 0 1= H ri U 0 -N Ch
~'
.
w f + O to ~i ?i 09 k E CtS - cu to H
I} CO ?r1 ri 0 0 (1) 0 5' S", Si ri Cd
0 .p 4 - $- 4 r(; r'> Cr Ik -13 C9 0 1 0 0 F-i F-I
} 'f.'' EtO 0, d-' O 0 U 0 f"a ri ?ri ?rI .r-I N Q)
5a o ri a,' t i O C) 1 "Cl U) r-I iS U ?1' 51
S-I -~ T~ Q1 -IFS -q 0 c 0 Cd'd .1
4.3 0
~CI4-AMT0114bA0605`0Y00' O86'
C) O Ca C-I
 Approved For Release 1999/09/21 79T01 149A000500010005-6
(Footnotes for Table 11)
a. -,timates for 1054 account and budgeted 1055 revenues and expenditures
are derived from the report delivered by F finance i inistor ?,i -1 Isien :Wien
to the Chinese People's National Congress on duly b,; 1055. 1054 budget
figures and receipts and expenditure accounts for previous years are
based on figures contained in, an article in Tientsin Taa lsung Pao, en-
uary 27, 1955 entitled "Our i~Tational Finance; by Tang Tzu-ying, director
of the .editing Office of : inistry of Finance, and on estimates -contained
in former Finance I sinister Tong's budget speech of dune 16, 1954.
b. The reports on revenue,, and expenditures for 2.950-53 did not distinguish
between total :revenue (including carry-over of surplus from previous
years) and current revenue. subsequent revisions of government finances
for these years have been announced but without sufficient detail to
reconcile the differences between the total revenues and total expendi-
tures. The source of the reported surplus in the budget (Y 4,283 million)
and accounts ( 4,509 million) for 1954 cannot be satisfactorily explained
because the sum (including the deficit for 1050) of the previous years'
surpluses comes. to only 1,823 million.
possible explanation is that
the reported "surplus from previous years" as shown in the 1954 and 1955
budgets arose from deficit financing through monetary issues accounted
for in previous year reports outside the government budgets.
Including expenditures for credits, loans, and insurance.
Approved For Release 1999/09/21 :; CIA-RDP79TO1149A000500010005-6
 b1
4> 0-~ to I to
1
Approved For Rel~askb 09
/091 :~PA%UjbO
U bo
4.)
o 01 CU
U
C131 LOI
rl t--1 ~ CV
C()
rnt NI r4 M~ CU 1I F--I
Cd h 3l
Ir?I I N
i 3 K l CU
C\j
Ol -
LCl ^
r l r-1 '
O
bo
't0
C)
Q
Ir\{
3I CU
3I
C,
Mi
'.O
N
rI
O1
G,)
Z
N,
r-i
I
%,D
t I
0 to 7t
C3 I Lf1
3
0,1%
CU
W
t;1 lf\
O
-
d
CV
- r-I -
.0
'
r!
%-U
,% C
$ I
1 --
r:
CU
H r-1
Mm
r0
r-1 H LCl
Lc't C-1 1.0
C71 LS\ 0
~,
Lc'
Nm
CU
0--4.
r--
G'1
i -
Lfl r-!
LCl
r-1
r-1
?ri
U
CU I I * 3 4b 0
r-1 I ?: m
C1) ?0 a) r-i 1
a) :i 1
'~ rL] 0 Q)
All
C-) U U -I-)
a) CU o $4
(3) F+ >~ rd 4.3 (1)
w -w , 4'
LI
S
?
?
rd H rd ?rt
43 ?r-i 0 W
co a) Fi P
0 0 0 0
Fri C) 4-1
U r-1
CA ~ #s' ~? ?'f'3
Pl
d0
r/a rr a 3 14 .
1-i 1-i 0 t) a, Sy
??~ ?1.7 to t}-i rd -ri
in ED g! ~q r{ 0 0 1N-4 4--
11 rd r1 m 0 3 ~H 43 9 1?i
u) ? cad cdd P cU N .#i
U 0 i' 1-1 a) 0 4' ?N .
0
H 43 1+? ?IIi r-1 P a) 114 U Cl)
Cb v1 ca LlJ ?ry ?;'{'r U ? 4 a) U r> 'Ld
ri
c,Ci r w i i o P! u O H r, 3
?L- 0 -4 C7 C,
Approved For Rel ase 1999 09j1 : CIA-RDP79T01149A000500010005-6
 Approved For Release 1999/09/21 : OW4jjW 149A000500010005-6
X32
(Footnotes for Table 12)
a. Except as indicated below, the sources of d.ta are as follows: The
estimates for 1954 accounts and ,budgeted 1955 revenues and expenditures
are derived from the report delivered by Finance mister Ii Isien nien
to the Chinese National People's Congress on ,July 6, 1955; the 1954 bud-
get figures and. receipt and expenditure accounts for previous years are
bused on figures -contained in an article in the Tientsin Ta Lung Pao
January 27, J 55, entitled "Cur National Fim nce," by 1.;angg Tzu-ying,
director of the auditing Office. -of the iiinistry of Finance, and on
estimates contained in forE er Finance hiriister Teng Usi o-ping's budget
speech of June 16, 1954.
b. According to eoale! ss 2ai V, Peiping, :: eptember 16, 1954, the following
indices applied to investment:
1950
1951
1052
1953
Industrial construction ?
100
166
341
668
_eans of production (heavy industry)
100
148
326
653
d. Investment in 10,52, according to the State statistical 3ureau's report
for that year, wrs divided as follows:
Industrial ministries --- 56 ,, comriuriications and transport - 28`?, and
agriculture and water conservancy ---6i.
e. according to ~-isin Chian-she, Vol.2, No. 9, agriculture made up 30
the 1950 government investment.
f. re le!s Nails editorial, Peiping, lay 5, 1955 (FBI$, I ay 11, 1955,
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 Approved For Release 1999/09/21
~149A000500010005-6
83
Table 13. C. I COQ : UL? I;jT DIM2 A 017 ! "R0 to V_ .Y"UL
CUM-UT .:!,.W
(in billion new Yuan at 1952 prices)
Plan
'1..an
1949 1950
1952
1953
1'1'-"'4
1955
1957
Gross output
Industry and .i griculture
42.5
75.4
(-)6.-3
94;..4
1.01.0
113.2
Industry
9e
27.0
35.5
41.5
44.7
53.5
L.,griculture
32.6
42.4
50.8
52.9>
56.3
59.7
Industry: by type
%odern
7.2
20.1
25.9
31.2
34.0
3,1' .1
I .andicraft
2.7
6.9
9.6
10.3
10.7
15.4
By type of output
Producers goods
2.9
1.0.7
14.6
17.6
20.2
24..3
Consumers goods
7.0
16.3
20.9
23.
24.5
29.2
By owners lip of industry
State
14.2
19.x:
24,5
26.5
32.7
Coop
3.6
0.9
1.
1.6
1.9)
14
2
Joint
1.4
2.0
5.1
6.9 )
.
Private
6.3
10.5
13.1
1.0.
9.4
6.6
18.0
27.7
35.0
3';.2
42.6
49.8
State and Coop
9.4
1/...
22.7
22.0
27.3
Private
1.2.3
20.6
16.5
20.6
22.5
x ?ura 1
15.4
1.9.0
22.2
30 .~
Urban
12.3
16.0
17.0
19.0
3tate -.- PD, 1Jas' in;tan. D.C.
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