ECONOMIC CONDITIONS, TIENTSIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A004300260010-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: December 16, 2005
• Sequence Number: 10
• Publication Date: June 11, 1954
• Content Type: REPORT

Approved For Release 2005/12/24: CIA-RDP80-00810A004300260010-5
IENTRAL`INTELLIGENCE AGENCY
NFORMATION REPORT
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
CONFI lEM /CONTROL - U. S. OFFICIALS ONLY
=OUNTRY China
SUBJECT Economic Conditions, Tientsin
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REPORT NO.
DATE DISTR.
NO. OF PAGES
REQUIREMENT NO.
REFERENCES
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National Construction Loans
1, In Tientsin, Communist authorities have been intensifying their drive
among the people for subscriptions to Construction Loan Bonds. Out of a
total quota of JMP 6,000,000 million for the entire country, the quota
for Tientsin was set at JMP 326,000 million. The Communists claim that
this is extremely small and only a fraction of. what the people of Tientsin
can afford to subscribe. Actual subscriptions in Tientsin have reached
JMP 432,000 million, which is in excess of-the original quota. This means
that about 80 percent of the people's savings will go into government
hands because, according to an announcement made at a public meeting in
Tientsin, the total of the people's deposits in all the banks in Tientsin
amounts to only about JMP 500,000 million. Actual payments for the pur-'
chase of Construction Loan Bonds are to begin on 1 April,.and the deadline
is 30'June 1951..
Banks in China
2., The four banks now operating in Communist China area the People's Bank,
the Bank of China, the Bank of Communications, and the Government-Private
Joint Bank.l The People's Bank controls all the other banks on behalf of
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the government. The Bank of China handles all,thecountry's foreign exchange.
The Bank of Communications handles all loans to farmers and collective farm-
ing centers. The Government-Private Joint Bank takes care of all financial
requirements of factories, both state and privately owned.
Food Situation in Tientsin
3.
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In Tientsin good quality rice, like that produced in Hsiaochan (N 38-55,
E 1.1.7-26), and wheat flour are rationed at eight catties per person per
month, procurable only by presenting a Food Purchase Certificate. The food
purchase record is issued on the basis of census registration. Low quality
foodstuffs and grains are still obtainable in any quantity desired,3 but no
one buys more than his actual minimum requirements for fear that the autho-
rities might question the reason for the purchase. During the Chinese
'New Year, the people were permitted to buy one,catty of Hsiaochan rice.
Pork is scarce. Almost all crops and grains are being collected by the
government. Between Fengt'ai and Canton the railway zones are stoc '+~piled
with huge quantities of food awaiting shipment to the Soviet Union.
Market conditions in Tientsin are poor in comparison to pre-Communist days.
There is a shortage of rice and vegetable oil. Two popular Chinese
wines, Wu Chia P'i (oo63/05o2/1a22) and Pai Kan (+101/1626), are diffi-
cult to Obtain in a good qualityand people are making a potato wine by
a native process. About 9 p.m. daily all shops are closed and the city
is dark.
Population of Tientsin
5.
The population of Tientsin rose from 1.8 million in 19+9 to about 2,3
million in February 1954. The increase was largely a result of the heavy
influx of people from the countryside who could not make a living in the
country and moved to the city to seek employment.
Foreign Trade
6.
Prior to the five-anti's campaign, there were about 300 import-export
firms in Tientsin. Only about ten percent of these firms are now able
to continue operations and survive without debts. The rest are all in
debt, including, for example, the China Chemical Industry Company, once
worth more than half a million U. S. dollars. During the five-anti's
campaign, this company was found guilty of concealment of taxes and
fined JMP 2,100 million, of which only 3 750 million has been paid.
Recently LI'Chi-shen and TS'AI T'ing-k'ai, former owners of the Ta Ch'eng
(1.129/2052) Company, gave up the company voluntarily to the government.
Subsequently, they opened an iron factory with a capital of JMP 21,000
million in Tientsin.
Domestic Trade
7.
Tientsin businessmen engaging in domestic trade are having difficulties.
The majority have already been driven out of business by government
organizations. The sale of consumer goods is centered in cooperative
societies and government retail sales companies. Private merchants are
still allowed to continue business but are having difficulty in obtain-
i.ng transportation facilities, which are given to government-operated
companies on a priority basis0 On one occasion a group of Tientsin
fresh fruit merchants ordered a large stock of banaxmcs, oranges, and
other fresh fruits from Canton. Then they applied to the railway for
freight cars, but had to wait until all government company shipments of
fruits were completed. As a result, their fruits were damaged or spoiled.
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Grain merchants can go to the country to buy from farmers, but if they pay
prices slightly higher than official prices, they are accused of misconduct.5
Laboring ,Class
8. The laboring class, who are generally better off than others and are the
main customers for amusement centers and theaters, have an average wage
of about JMP 700,000 to JMP 800,00 per month. Some skilled workers are
getting even higher pay. The minimum wage of the laboring class is higher
than that of minor white-collar employees in banks, who earn about JMF
300,000 to .JMP 400,000 per month. Because workers are encouraged or re-
quired to exceed their production quotas and often exert themselves
beyond their physical strength, their health in general has been greatly
impaired. In the China Textile Corporation, for example, which is one of
the largest state operated weaving and spinning mills, $ver 60 percent of
the workers are sick from malnutrition or tuberculosis.
Dias osal of JMP at Border
Before travelers leave the border at Kungpeikuan (N 22-12, E 113-32) to
proceed to Macao, they are "advised" to leave.their unused JMP within the
country or to donate the money to a box labeled "anti-America and help-
Korea." The Communists explain that this measure will prevent any
foreigners from counterfeiting JMP money.g
Comments
the rationing of flour in
Tientsin as instituted as of 1 November 1953. The explanation given to
the people for the shortage of flour was that the standard of living of
,the workers had been raised under Communism, consumption had therefore
increased, and there was a greater demand placed on available stocks of
flour. Rice, although not rationed, was scarce; and the rice available
on the Tientsin market contained about eight percent impurities per unit
of measure. Of the essential foods contained in the normal Chinese diet,
only vegetables could be had without any trouble.
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Prices increased in September 25X1
in Tientsin and again in October. The price of rice did not increase,
but the quality of the rice was inferior. 25X1
Comment. the shipments are presumably
or payment opt pure urchasee by the Chinese Communists.
Comments
I
the state of private business was very bad in December 1953. There were
still, private shops open and doing business in Tientsin, but the number
of these was diminishing constantly. Basic reasons for the difficulties
encountered by the private businessman were high- government taxes and
the necessity of buying most goods from government sources.
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the workers as a class
well o f.
11 were no a er very happy or particular y
I l'i1C 111 c J.4.4 .. '-.
weaving mills, because of the production standards-established under
the Russian Stakhanovite methods. Workers were hard presseedttotfill
their quotas, and the finished products contained many
were covered up by the workers in order to maintain output. Salaries
were not high, and jobs were scarce in the Tientsin area.
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Approved For Release 2005/12/24: CIA-RDP80-00810A004300260010-5