COPIES OF NEWS DESPATCHES BY CHANG KUO-HSUN ABOUT COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00415R005000120003-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 36
• Document Creation Date: December 15, 2016
• Document Release Date: September 13, 2001
• Sequence Number: 3
• Publication Date: April 22, 1953
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
CONFIDENTIAL
SECURITY INFORMATION
26Ad COF INFO.
PLACE ACQUIRED
25X1X
Copies of News Despatches by
CHANG Kuo-hsun about Communist China
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.
REPORT NO.
DATE DISTR.
0 pri 53
NO. OF PAGES 1
REQUIREMENT NO. RD
REFERENCES
1. Attached herewith are a series of articles prepared by CHANG Kuo-hsun,
who traveled for about four months in Communist China in 1949 and 1950.
2. This enclosure is for your retention.
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ARCTIIVAL P r rQRD
PLEA,?; _1Ey J N TO
AGENCY AU,,--,-_ -
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1hi5iSANEEC
AO KOT DET. Ca
RUSSIANS GIVING TECHNICAL HELP TO RED CHINA
Soviet Russian military and technical advisers are being des-
patched by the hundreds to Red China to help the Chinese Communists
sovietise their country and assist in its incorporation into the
Soviet military strategy.
Soviet advisers are helping to plot the invasion of Taiwan,
which will be launched in summer of the latest with land, sea and
air forces- , according to authoritative Communist informants.
It is estimatted that the Chinese Communists will be able to
muster at least 100 fighting planes and 30 warships for the inva-
sion of this last Nationalist stronghold.
General Chen Yi, mayor of Shanghai, whose Third Field Army
has been given the task of invading the island, is at present
marshalling a picked force of 160,000 men for this three-dimension-
al operation. This task force is concentrated around: Shanghai
and along the Chekiang coast, undergoing special amphibious train-
ing.
One important part of the training programme is making the
soldiers into good sailors. About 30 miles North of Shanghai, the
Chinese Communists have erected an ingenious device consisting of
nets supported upon high poles. Small groups of soldiers climb
into the nets which are then rocked like a ship in order to ac-
custom them to the sea motion.
Soviet instructors are also helping to train Chinese Communist
pilots and naval crews in Manchuria according to informants.
These sources said that about 20 Russian shipbuilders arrived
in Shanghai lust month to work in the Kiangnan Dockyards. Follow-
ing the arrival of the Russians, several Americans employed by
the dockyards, which were formerly operated under the Economic
Co-operation Administration, were told to hand in their resignations.
MISSION IN CANTON
A Russian-language- nur,e:s' training school has been established
inside Shanghai in order to train Chinese personnel for service
with the Soviet military missions.
There are a number of such missions all over China, including
at least one film unit which is filming strategic areas. This
unit is accompanied by specially indoctrinated Chinese officers,
whose task it is to familiarise the Russians with China's defence
problems.
Most of the Soviet officers are at. present stationed in Man-
churia which has presumably been turned into a laboratory for test-
ing the introduction of Soviet Communism Into China. Soviet
missions are, however, also encountered in Shanghai and as far
South as Canton.
Although there has never been any evidence of direct material
Soviet aid to the Chinese Communists, Manchurian observers believe
that the Russians have supplied their Chinese allies with Japanese
arms and replacement parts, made with the Japanese machinery which
the Russ-i:ans stri,.)ped from Manchurin d removed to within the
Soviet border. An estimated 750,000 tons of Jcp-nese arms have
been turned over to the Chinese Communists by the Russians.
BRIDGE BUILDERS
One high-ranking Chinese "democratic personage"- meaning a
pro-leftist who is not a Party member - declared that the latest
technical mission which arrived in Manchuria recently comprises
about 300 experts. Another mission of about 70 Soviet railway
engineers is' attached to the Chinese Communist railway repair corps.
The nine-arch steel bridge at Pengpu, 50 miles North of Nan-
king, has been repaired by Soviet eng_neers. The bridge spans the
Hwai River. It is one of China's most spectacular engineering feats,
and was originally designed and built by British engineers. It was
badly damaged by the retreating Nationalist troops In December 1948.
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Chinese engineers who assisted the Soviet team, said that
Chinese and Russian engineers were segregated and that liaison
was conducted through Chinese Communist officials.
The same source said that Soviet advisers are also attached
to the Health Ministry in Nanking.
(Peking radio recently reported that Russian doctors and
scientists helped to combat the plague epidemic in Chahar pro-
vince in Manchuria).
CREATING AN IMPRESSION
The source said that the Russians are taking special precau-
tions to create a good impression among the Chinese. For example,
in accordance with specific instructions from Stalin, the members
of the anti-plague corps wore Chinese Communist Army uniforms,
lived in Chinese barracks, and ate Chinese "Liberation Army"
rations.
Informed sources said that Russian engineers also helped to
refloat the cruiser "Chungking" and the destroyer "Chang Chih,"
which were sunk by Nationalist bombers after the crews had de-
fected and sailed the vessels into Communist ports.
These vessels will presumably participate in the forthcoming
invasion of Formosa, the sources revealed.
British-trained Admiral Teng Chao-hsiang, skipper of the
"Chungking" when she defected to the Communists in March, - only
a captain then - has been restored to his command of the cruiser
with the rank of admiral.
REDS SEEKING TO EDGE FOREIGIIERS FROM CHINA
The Chinese Communists' policy towards foreigners appears to
be to edge them out of China - at least from the interior, writes
Chang Kuo-sin, United Press staff correspondent who has just
arrived in Hongkong after an overland trip from Shanghai.
A number of foreign missionaries, after observing Chinese
Communist rule during the past few months, are given to pessimism
as regards the future.
One prominent American missionary, who for obvious reasons
cannot be identified, told me that the Chinese Communists, al-
though avowedly guaranteeing freedom of religious belief, are
out to eliminate freedom of religious action.
He said that the first blow against the Church has already
been struck by the Chinese Communists, who closed 80 percent of
the rural churches in Shantung Province, and over 50 percent in
Manchuria and Hopei. Officially, the Shantung churches were
sealed because they were "private organisations", which are not
permitted to exist, while no official reason has been given for
the closure in Manchuria and Hopei.
HANDY VJE:PON
A similar policy scams to be followed as regards foreign
businessmen despite Mao Tse-tung's assertions that the Reds
welcome foreign trade. according to all indications, the Reds do
not intend to expel the foreigners officially, but make life so
lt that they will leave voluntarily.
diffi
cu
One of the handiest weapons are travel restrictions, whereby
foreigners living in the coastal cities are not permitted to
tation or make business trips to other cities. For
t
-s
visit ou
example, the British manager of a large export firm in Nanking was
unable to take his home leave because the Communist authorities
did not allow his colleague in Hankow to travel to Nanking to
replace him. They told the latter that he could have a permit to
leave China but not one permitting transfer from one city to an-
other.
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COMPELLED TO SELL
Most foreigners behave that they will in the future be permit-
ted to continue in business, but only in the larger cities and
ports where they would do all the buying and selling. They believe
that they will not be permited to travel in the interior or main-
tain branches there after the present staff leaves. They believe
that foreign firms with large properties in the interior of China
- mostly British - will eventually be compelled to sell out to
Chinese interests.
Missionary informants said that they have protested to Premier
Chou En-lai against the closure of churches. The latter replied
that the government would investigate, but no official action has
been taken to reopen the churches. Some congregations have not
been interfered with, but others are required to follow various
regulations. Religious instruction has been banned in some schools,
but elsewhere it is allowed to continue as a voluntary course.
In addition to the closing of churches, the Chinese Communists
are alsee restricting the activities of missionaries. Some mis-
sionary sources said that this may be designed merely to eliminate
foreign influence but to permit the indi,.onous clergy to remain.
NO LEGAL. STANDING
At the present time, the Church has no legal standing, and
some. missionaries were told that they will have no legal protection
as long as foreigners remain on the mission staff.
Travel restrictions are placed on foreign missionaries as well
as foreign businessmen. Some missionaries in Anhwei province were
not allowed to travel to Nanking even for medical treatment. How-
ever, they are being permitter? to leave China altogether. Mis-
sionaries in Antung province are not allowed'_ to move at all.
American missionaries in Nanchang were questioned whether they were
agents of the American government.
Apparently a great deal of authority is placed in the hands of
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different ways.
CHIT_Its EXPERIENCING WORST FAMINE FOR LA'AST FEW DECADES
Communist China is at present in the midst of a very grave
famine affecting an estimated 50 million persons.
The Chinese Communist rovernment officially admitted on Decem-
ber 22 that 9,000,000 Chinese are "starving or half starving".
The announcement, which I later found had not been distributed
abroad, described the famine as "the worst for the last few decades."
The announcement called on all local authorities to g_;ive pri-
ority to relief work. One of the most important measures was the
organisation of refugees into farming and handicraft units for pro-
ductive work.
Mao Tse-tung recently called upon Chinese Communist army units
similarly to form themselves into co-operative units, which offered
handsome incentives for boosting the production of food.
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Reliable sources estimated that between 30 and 40 per cent of
Red China's arable land has been damaged by droughts, floods and
pestilence during the latter half of this year, while undamaged
areas yielded only half of the normal crop.
Reports from rural areas North of the Yangtse River said that
the most fortunate people there were down to two meals of congee
(rice gruel) daily.
SHANGHAI INFLUX
Many starving villagers are flooding the urban areas for food.
Famine in the rural areas has caused the complete nullification
of the Red's policy of dispersing "non-productive" residents from
over-crowded Shanghai.
The Reds have now abandoned this policy because every man sent
back to the villages returned to the city with many more.
One of those returners told me that he was unable to remain in
his village because he had nothing to eat; he had to bring back
his relatives because they were likewise starving.
Qualified sources said that there are about 120,000 foodless
and homeless refugees in Shanghai alone, with the authorities
unable to,help. The number of beggars has risen sharply, and they
are found in every street and alley begging from pedestrains and
rickshaw passengers.
The famine has also caused widespread deterioration of public
safety, with a sharp rise in the number of hold-ups and robberies.
Communist trade bureaux have up'to now succeeded in keeping
the cities supplied with food, but the effects of the famine are
beginning to creep into the urban areas, causing inflation and
other dislocations.
The Chinese Communist New China Nevis Agency admitted that
famine was the primary cause of the violent price fluctuations
in October and November wherein the government dumped thousands
of tons of rice and other commodities on the Shanghai market in
an attempt to half the runaway price spiral. (Recent economic
reports from Shanghai indicated that the Communist currency has
been inflated between 1,000 and 1,500 per cent within the past
two months.)
Famine is considered one of the most serious problems the Reds
have yet encountered in the consolidation of their political rule,
and one which - in view of their foreign policy - will have to be
solved without - outside help.
Soviet Russia, to which country the Chinese Communists seem
now definitely conjoined, is not only in no position to help, but
has aggravated the situation by requiring shipments of Chinese food
in exchange for Russian machinery under a one-year barter agreement.
The food Situation in Manchuria appears to be slightly better
than in China proper. Communist Press reports said that Man-
churian rice would soon be shipped to North China to help alleviate
the famine, although this does not necessarily indicate a Man-
churian surplus.
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was also required to set up a seven-man editorial committee, con-
sisting of Communist-trusted persons, to examine the articles
before they were printed.
The Shanghai "Tai Kung Pao," which formerly was known as the
best independent Chinese daily, is also now under the control of
the Communists. One of the changes which the Communists made in
its traditional editorial policy is to bring editorials of the
official New China News Agency on the front page. The old edito-
rial staff made an attempt to resist this change, but to no avail.
Only the news service of the New China Agency an the Soviet
Tass Agency are made available to the newspapers. Consequently
their contents are similar every day.
STATE MONOPOLY
Publication of books is now virtually a state monopoly in the
hands of the Communist new China Book Publishing Company. There
are several small privately-owned publishing houses, but like the
privately-owned newspapers they are controlled by the Communists.
The New China Company now has 375 branches. A plan has been mapped
out to expand the company to the extent of having one branch in
every hsien (county) in China.
Education is controlled through the appointment of teachers and
professors and the alteration of the curriculum. Political courses
are included in the curriclum even for primary schools. In uni-
versities, Communist leader Mao Tse-tung's New Democracy, the his-
tory of social development and Marxist dialectics are compulsory
courses for all, even for engineering students.
English translation of Mao Tse-tun 's speech on "The people's
Democratic Dictatorship" on July 1, 19L9, is now the first lesson
in freshman English.
Ccmmun1Gt control in this field is so rigidly enforced that in
,areas where u:,t.. nated a special area. This correspon-
dent has seen a Communist map in which Manchuria was coloured
differently from the rest of Chino. Chinese may travel to any
part of China with relative freedom, but travel to Manchuria is
strictly controlled. A special permit h7a to be obtained from
the local authorities with the approval of the Manchurian Com-
munists in Shanghai suspended the issue of perms to visit
Manchuria, t-iving the cold weather there as the reason.
Dairen and Fort Arthur, which are virtually completely under
Soviet domination, have been made super-special zones. Travel
restrictions to the two ports are even stricter than those
applying to other parts of Manchuria. The Changchun Railway,
which ends at Port Arthur, does not maintain a direct service to
the two ports. The train runs only as far as Wuliho, which is
about 50 miles northwest of Dairen. The passengers have to alight
from the train, walk a short distance, show their permits to the
Chinese Communist and Soviet euerr's and then board another train
for Dairen.
.24,,,." ;* TAM QM PUI %, Q %;
Manchuria is now being ruled on the lines of Soviet Communism.
All private property in the rural areas has been expropriated.
Private property is still permitted in the urban districts, but
it is now being gradually squeezed out by large state monopolies
and crippling taxes and levies. No private banks exist there now.
According to the pro-Communist Hsin Min Pao in Shanghai, the
ratio between state and private-owned industries in Manchuria
now is 46 to 52. The production ratio this year in terms of
Keoliang is 10,240,000 tons for the state-owned and 1,000,000
tons for private-owned industries.
LOW I'RODUC T ION
The Communists, with Soviet technical assistance, have map-
ped out a three-year plan which will be started this year, for
the restoration of Manchurian industrial and aericultural pro-
duction to the 194 level. Li Fu-chun, vice-chairman of the
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a re port on `December 2
es so ha re been restored
esgecia 'JTV of food, is "very
unica ns 1 %Oft #mpletely restored
la orms
rden. far .10 We
,
na
ffUUilL Vyii1Gi1 LLi UZI. faxes on their sand production. They sai~a that this has reduced
the farmers toe new low in poverty and that a man possessing one
ounce of goldis considered a rich man.
The Comm i.tiist New China A ency reported on December 5 that
commodity prices in Manchuria have risen only 80 percent during
the whole of 1949- If this is true, it would seem that Communist
rule has at least brought about economic stability in the North-
east.
The Communists in Manchuria are short of technical and skill-
ed workers for their programme of industrial rehabilitation.
Recently, several missions went to Nanking and Shanghai to recruit
Chinese technicians, but less than 200 trained en;Yineers and. work-
ers responded to the call, though there are thousands of these
people now jobless in the two citiss. The main cause of this
poor response is considered to be a general fear that once a man
goes to Manchuria he would get a job but would lose his indivi-
bea e brun-
Ae ording, to
CIVIL LIBERTY
o J.
.
churian towns are deserted except on week-ends, the people being
made to work all day long In the factories. Vice-chairman Li
said..the livinc, conditions of the workers are improving, but
teed their salaries are still lower than the level in China
Proper.
The favourite Communist weapon of travel restrictions has
also been clamped on the people in Manchuria. i. police permit
has to be obtained even for short-d'.is tance travel from one
village to another.
Anyone having, an overnight guest at his home has to report
to the Police. Even persons entering; hospital for medical treat-
ment have to do the ~ ame. In the Great Wall Pass of Shanhaikwan,
the Communists at 6,Ke.:, time even laic'. down re _ ulations governing
what time the people should -o to bed and what time they should
?et up. People eating at restaurant or drinking,, tr,a in cafes or
conversing in twos or threes are questioned.
Travellers sail because of the necessity of r:ettinF photo-
graphers for the many police permits, photorrs~phic shops in
Mukden are doing a roaring business.
ed. Th' population had been rer?imen+ett""'to k and produce
f the state Travellerg said that the streets in most Man-
g work there,. 1 v f9 i sanne ar-._
s
e
work s who atten e decision about
inves cation mission to Manchuria before makin-; a
V CJLLG
d that thev be permitted to send. an
k
d d
ried out throughout the country, but the
p
,mac ; Q q+-.411 high because they are being made
hinese ~travellers the farmers, like their
C
are subjected to heavy levies and
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dual freedom.