OPINION ON CHINESE COMMUNIST GOVERNMENT POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R008300600002-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 16, 2016
• Document Release Date: April 4, 2000
• Sequence Number: 2
• Publication Date: September 11, 1951
• Content Type: REPORT

Approved For Release 2000/05/22 : CIA-RDP82-00457R0083
25X1 A CLASSIFICATION SE LY
CENTRAL INTELLIGENCE AGENCY
INFORMATION RE-PORT
COUNTRY Ch:Lna
SUBJECT Opinion on Chinese Communist
Government Policy
25X1A
PLACE
ACQUIRED
25
DATE OF
INFO.
ONFIDEINI
CD NO.
DATE DISTR. SEP 11 10
NO. Of PAGES 2
NO. OF ENCLS.
(LISTED BEtoW)
SUPPLEMENT TO
REPORT NO.
1. The promulgation of the law meting out capital punishment to counter-
revolutionary elements was timed with the land redistribution. program
along the Yangtse valley and sout1m.rd, so as to snuff out guerrilla and
other anti-Communist activity. The Communists expected to take advantage
of the newly constituted peasant proletariat as defenders of the regime
and as informers. Promulgation of the law was also designed to frighten
dissident elements within the regime into submission and to be used as a
weapon in a purge if necessary.
2. Although the promulgation of the Organic Law at the time of the foundation
of the Communist Government in October 1949 promised the. continuation of
the use of bourgeois capital, by permitting the distribution to shareholders
of eight percent on invested capital and additional dividends in more
profitable enterprises, refugee capitalists are skeptical. Most of source's
friends of this type do not wish to return to China. One told him he had
written off his investments around Shanghai; another tivho had always been
optimistic is now ready to go from Hong Kong to Japan at a moment's notice,
seeing now that the Communists are not working solely for the benefit of
the Chinese.
3. The British in Ilong Kong take a lenient attitude toward the Communists,
and as long as they retain this attitude, Icon; Kongle status-Will not be
disturbed. The Communists are still obtaining some materials through
Hong Kong, but are interested in keeping things as they are, more because
from Hong Kong they maintain communication with Southeast Asia. From
Hong Kong they distribute personnel and direction for subversive activities
all over Southeast Asian
The Communist leadership views the Korean war as fighting a fire in a
neighboring house. There is no rift in the leadership; there will be no
Tito. The leadership believes fanatically that faith will move mountains,
that the Chinese Comrm'mzists will be able to throw the United Nations into
the sea or make them Live up. If the United Nations bombs Manchuria they
believe that the Soviets must intervene, and that the United States wall
_._
not risk a world war over Korea. +d p y
25X1X
 Approved For Release 2000/05/22 : CIA-RDP82-00457R008300600002-6
25X1X
It would be naive i state that the Soviets do not exert a tremendous
influence on the Goverment,, but it i a sound conclusion to state that
they collaborate as ccxradoe and not as uasterc The Chinese Canomnista
are very sensitive about being treated as equals in their dealings vith
the outside world,
6* Popular opposition to the Goverment is lessening rather than bTovd.ngv
as the peasants,, eapeci..a.:ly, find the Goverment is trying to improve
their lot and raise their stmidard of living; through increased production
and control of in iti rn
7$ The zu . acxrco is Bauch exaggerated as reported in the ncwspap r The
people do not hold -the purge a a3.nst the Government., as those killed
are mostly suspicious characters, feudalistic landlords? and vre11-know
racketeers. Some blame the Nationalists for the unjustifiable killi.n o$'
some victims , since the Nationalists are prematurely announcing plans ,for
the Invasion of the to nlanda There is no puree in the Chinese Coi iurd.st
Partym
25X1 C
were idTtten ji~ro_r to the mass arrests starting 27 April.
These opinions, especially that part in paragraphs 7,
OoNFIDE TlAl3
Approved For Rele _ 08300600002-6