JPRS ID: 10162 CHINA REPORT ECONOMIC AFFAIRS

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000400080016-2
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 17
• Document Creation Date: November 1, 2016
• Sequence Number: 16
• Content Type: REPORTS

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JPRS L/ 10162
4 December 1981
~ Chin~ Re ort
p
" ECONOMIC AFFAIRS
~~ouo 4ia 1 ~
,
~g~~ FOF~EIGN BF~OADCAST INFORMATION SERVICE
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JPRS L/10162
4 December ~.981
CHINa REPORT
ECONOMIC AFFAIRS
(FOUO 4/81)
CONTENTS
PEOPI,E'S REPUBZIC OF CHINA
NATIOrdAL POLICY AND ISSUE S
People's Commune System Pexceived as Failure
(Goro Tagawa; THE DAIZY Y(lMIURI, 22 Sep 81) 1
ECONOMIC MANAGII~IENT
Growth of FY~ee Markets Examined
(Masaru Maxuyama; TI~ DAILY YUMIURI, 20 Oct 81) 4
FINANCE AND BANKING
Bank~ s Pla,n Att~ acts Hidden Cash
(Yoshio Matsui; THE DAILY YOMIURI, 27 Oct 81) 6
FOREIGN TRADE
- Delivery of Plant Orders From Japan Examined
(Swadesh De Roy; THE DAILY YOMIURI, 1 Sep 81) 8
Sino-~Japanese Economic Cooperation in Perspective
(Yoshio Matsui; THE DAILY YOMIURI, 20 Oct 81) 10
Briefs
Fertilizer From Japan 11
LABOR AND WAGES
Youth Employment Situation Viewed
(Masaru Maruyama; TXE DAILY YOMIURI, 13 Oct 81) 12
- a - (III - cC - 8~ Fouo]
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NATIONAL POLICY AND ISSUES
PEOPLE~S COMMUNE SYSTEM PERGEIVED AS FAILURE
Toky~ THE I~ILY YOMCURI in English 22 Sep 81 p 5
~Article by Goro Tagawa: "Collapse of People's Co~ne Syst-em"~
~Text1 One of flrst destinatlons "In Sichuan Province," he
of the Yomluri reporters' sald, "experiments are under
trip was Sichuun Province. way t0�~nd out ways fi~r re-
Btretc}iln~ in the upper forming the comtntu~e' ay�-
- reaches of Lhe Yangtze ~m.~ , .
rlver, t:~e pro~�ince is known ~e people'a commuile can%
as the nativr place oi VSce- ~ de9ned aa an 'all-inclu='~
~ Premicr Deng ~iiaoping, the sive rural cammunitq com- ;
architect of China's mod- petent of deaitng with any
ernization drive and the aPtatrs ranging irom agri-
mentor of newly insta]led cultural and industrfa] pro-
Chairman Hu Yaobang. duction, commercial ' activi-
The trip to Sichuan, about tiea, medical services, edu�a-
1,600 kllometers southwest tion t~ milltary exercises.
of Peking, came at the To put more simplY, it
strong suggestion of Vice- ~n ~~ened to a com-
Prem7er Wan Li - one oi
Deng's right-hand men in bination o! an agricultural
� charge of executing the en- cooperative as seen in Japan
~ and a local adailniatration, ~
visioned "readjustment' of
the Chtnese natlonal eco- i~s land is , collectively
nomic pro~;rams. owned and the earnin~s ob-
In an exclusive interview tained through joint t~bor
with thc Ycmiuri reporters of L3~e cA~mune members
given in June at the Great are shared on a ur1lform
Hs?11 of the People !n Peking, basis.
Wan Li a~as surprSsingly Since ite inaugvration in
bold in crit,iciaing "defects" 1958 wfth a fanfare of an
of thc pcople's commune "experiment of the century"
syslen~, u�lilch w~as conven- ior materlalfzing the cotr_-
tfonally constdered the basls munist ideal, the system h~
of the Ct~inese communlsm. now tuken root in ru..
'~Under the people's com- areas throughout Chlna.
munc syst,em as it is, no � Should the people's com-
development of our coun- munr system be reformed
try's agriculture could be drastically as suggested by
hoped for," Wun declared. Vice-Premier Wan, wha~
"This is because an ab- changes would entail in
� surdly large number of ad- Chinese rural communities?
ministrutlve orders and re- May it be that the Ch1-
~ulattons bcinF issucd by nese C3overnment has been
u{~E~cr orE~ans huve im4wsed detcrmined to do aa~uy wlth
tcN~ hc~:iv~� burdci~s on larm- the commune-buscd poU~y
cr:; of th~ communcs," he 11ne that hus becn cot~slder-
~ sti~t.cd. ed for more than tw~o de-
1
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cades to be o! plvotul 1m- are little rewarded economi-
portance for the Chtnese- cally ior thelr eSorts under
type So~ia1ism? the .comanune's collectiviam.
Indicating the directlon !n ~ a result, many com-
which the commune reform mune members seem to be
: is envisaged, Wan sald. p~ne. to lose their wiliing-
Flrst priority should be ness to work di111gently.
'given to what is needed for ~y be~use bf.thE lack
promoting farmers' awn o1 incentive for work under
beneflts irom the com- the commune syatcm, Chi-
~uIns order to etiect this, na's agrlcultural productlon
the economlc function of 1~e6an dropping aharply im-
the people's cornmunes must inediately after . t~e 1958
inauguration of the system, .
be clearly separated irom forcing the countrY to ~11
their administrative and the Chmnlc need wlth lm-..
- other functions," he pointed ported grains.
out. Chinese leadera may well
As Japanese eaperts ln have felt impatlent oi thg
Chinese affairs see it, the stagnance of agrlcultural
people's coffimune system production, because China
has done much lndeed in haa been forced to import
eliminating dLsparlty in morc than 10 mlllion tona oi
wealth among ~ faraners and grains annually despite the
~ also in un~formly ralsing .isct that about 80 percent
and stabiliztng their living ~ o! '#,~e Chinese population
standards. . , cdm~ilset of farpncrs. , .
- Ivot a few.demerits, how- ~~Under, the cirCUtnstances,
ever, have been dted. They . t~e'~Pe~B 8b~~snt has
are mainly attributed to the �~o~ = ex~~-
iact that the communes' mental ~attempta to reiorm
eronomic and adaiinistrative the people's oommnae aetup.
- activities have been func- 8hown to t,he Yomturi re-.
!loning on a mixed basLs. 3~r~~~ &~?nan trlp.
For one thing, there were were experiments bein8
reportedly a' numbex of in- undertaken in the people s
stances where commune communea of C3uaghan I're-
farmers were obliged under fecture, about 50 ldlometers
administrativ~ orders to en- north of the provinclal cap-
_ gage !n construction lubor ital 01 Chengdu.
for nothing in public works This was the flrst tlme
proiects nnd ev~ n to have that the Chineae Govern-
~lots of their communes put ment had allowed ioreign
under requisttion. reporters t0 huve a look~~at
Another report said an of- the 7~t-started reform of
fleial asslgned by the cen- people'a communea.
tral government to the top ~a~d ~ a I~?teau with
post of a Shunghll peopie's a a~de epread of paddy
commune was a sheer ama- Selds about 400 metera
teur about economic mat- above sea level, the prefec-
ters,'but he we~it recklessly ture has a total 01 21 peo-
: in drawing up the com- Pl~'s communes ocith a com-
mune's production plans, bined populAUan of 480,000.
prefecturul C3ovemor Shu
creating serloua problema Z~lang spelled out uiea-
for the commune members ~s ~Q ior a
because of his blundera. thomughgola8 re~amP~B oi
On top oi theae bureau- the pr~fectul'e's''communes.
cratic evlls, Lhe worst o1 ~nstead of the Convention-
demerits of the conventional al .om~ifunetional aetup oi
people's commune system !a the psople oommuaea, every
consldered atemmtng irom one of them in the prefec-
the fact thsst thoae com- tur~ bas now been "d1vlded"
mune members who are into three lndependent divi-
more competent or work s:ons dealing tespectlvely
harder than other membera with agricultural, industrial
. 2
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and commerctai afiairs. Shu so-called "private plot~s;'
said. where , iarmers are a2lowed
To coc>rdinate the activi- to m1~-t3ieir.owa,~beaides
Ucs of th^se trircc ~:~~isioii;. ~alloplri ~ ~'~aTmera.. ta
a ncw or anlzatlun, called en s' ezClu-
F ' �
the Agriculturai, Industrla.l slve~y? ch'yll~abQ;