"STATE PRIVATE TRADE IN COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000500790276-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 19, 2016
• Sequence Number: 276
• Content Type: REPORT

=a 116-41111
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Approved For Release 2006/10/20: CIA-RDP80-00809AO00500790276-6
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
W Communist China
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* J(CT "State Private Trade" in Communist China
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DATE oisTR. 26.26 Jan 54
NO. OF PAGES 1
NO. OF ENCLS.
SUPP. TO
REPORT NO.
1. Pop some time there hats bcdii a rcctunption of a kind of state and private
combined trade i. Communist China. An example is to be found in the river shipping
line, the NJ.ng .ung Company, This is now operating with ninety-six steamers
and forty large barge:; on southern Chinese waterways, especially on the
Yangtze and the ':zachuaA. The board of directors consists of fifteen
governmental representatives and ten private individuals. The general director
of the firm is a government official. The seamen employed by the firm and
the private ntocl:holdcrs are both cut into a share of the profits.
2. After iti+ oxtraordinaiy experience with this river sh:'pj;ing comnar.;:, the
Comrouniat Government has now made up its mind to set up two steel works e.long the
ammo linos, during the course of the present yetr, with a "mixed economy."
It In hoped, through the participation of the workers, ospeaially the labor
tonfga, to increase the productivity of the industry. An increase of productivity
reaching forty percent is now promised, based on experience with the Ming Sung
Shipping Compan;,, though such an increase is probably little more than a
pious hope.
3. 2/ui'thor Hans loolc to the cxtun..;.lon of the already existing state chain stores
and consumers' coca erative:;, along the same liner. In north China there are
already 18,000 of these consumcrst organizations and in southwest China about
11,000.
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It these intentions of the t;jvernnent are carried out, it i. , obvious that there
will be a considerable relief i'rom, and a.'1 so a considerable tens'ors with, the
previous governmental lacasure:s, which have been of entirely Communist inspiration.
A relaxation in 'he s;ocializinZ tendency rnry in this way become possible. These
developments cannot be too eagerly antic..Fated, however. One thinks at once of
the NEP period in the USJR, which lasted none too long.
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