CHINA'S BUDGET/ECONOMIC TREND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000500030191-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: December 15, 2016
• Document Release Date: January 15, 2004
• Sequence Number: 191
• Publication Date: April 29, 1953
• Content Type: REPORT

Approved For Release 2004/02/11 : CIA-RDP80-00809A000500030191-4.
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CENTRAL INTELLIGENCE AGENCY
SUBJECT China's Budget/Economic Trend
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DATE DISTR. AApr 53
25X1 this clearly shows that the national soon a life o na
: :? :now tc d to beco: = on: : nd the time. For ez mle, in announcing the
budget, the Finance Minister PD'I-pa pointed orit that 60%'of receipts are from earnings
25X1 esld taxes from state-oporated industries and ccoperatives., bnd that total expenditures
in "reconstruction" investments are elso 60%.
INFORMATION REPORT
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AND TH.O1 THE U.S. coot. .f *??.W~f. i G. o ...P
1.T101 Of ITS co.TtTr T. 4? .[C[1.T .? .? ub.YT.G?IZCO ?[5100 If
THIS Is UNEVALUATED INFORMATION
NO. OF PAGES 1
NO. OF ENCLS.
SUPP. TO
25X1 REPORT NO.
1. Red Chines budget for 195 was announced on l2 February 1953? The total v" act at
Y 233,499,100,000,000 (J)? This amount is oQuival.ent to U09,Q66,000,000 at the
official rate. For the salve of convenience,, it is generally put down as UOW10 bi111oIa,
an increase of US$2 billion over the previous budget.
2. By US standards, it is really not too large a budget. However, from the Chinese stand-
point, it is indeed tremendous, especially when the national income on the mainland _
25X1 has been estimated at no more than US$15 billion. This means that the 1453 budget eon-
25X1 3? the ownership of property in Red China has undergone a fu d.a.-
that is, the state economy is expanding without any limit while private
mental change
,
industry is steaTily, disappearing. In the past three years, the state-owned industries
have increased from about 30% to over 60%, whereas private industries have dropped from
70% to less than 30%. Ting predicts, therefore, that at the conclusion of 'the first
"Five-Year Plan", which was inaugurated this year, prix!:. aatWrpil.Oas will have vanished
completely.
4. The Reds have designated 22% of the budget for military expenditures and about 60% for
"national economic reconstruction and social, cultural and educational reconstruction".
The administration takes about 20% of the total expendi ores. However, in "economic
reconstruction" what they aim to do is to build up defense and heavy industries. There-
fore, 60% of the budget in military in nature, making it
25X1 primari1Y a war et.
5. In the light of the present "peace" offensive, it is quite probable that Red China wants
a breathing spell in order to inaugurate its industrial plan for another adventure in
the future.
?.? cad -
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CONFIDENTIAL
pISTRIeUT1oN s ARMY NAVY AIR I
This reporLrie for the nee within the USA of the; Intelllgenca components of to or
Agencies indicated above. It is not to be transmitted overseas without the the
originating office through the Assistant Director of the Office of Collection and Dissemination, CIA.
Approved For Release 2004/02/11 : CIA-RPP80-00809A000500030191-4
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