POLITICAL INFORMATION : GENERAL CH'EN CH'ENG'S ANTI-CORRUPTION CAMPAIGN IN MANCHURIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001200380001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: April 18, 2001
• Sequence Number: 1
• Publication Date: January 8, 1948
• Content Type: IR

Approved For Release 2001/11/23: CIA-RDP82-00457R001200380001-0
CONFIDENTIAL
COUIRTRY Chine
CENTRAL INTELUGENCh GROUP 11111111.
INTELOGENCE REPORT
SUBJECT Politica/ Information: General GW EN Chieng's
Anti-Corruption CAmpaign in Yalehuria
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DATE: pyynr
INFO. Sge beicw
DIST. %.\ Januar, 1948
PAGES 3
SUPPLEMENT
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25X1A Not.v: 5Jnre OH=EV LI-1'1rp vas arpoin
fcr eatv::,uris e hAve'sprierao ;11 the InnAl Tr -me mr,n7 tA0:77f.aa a L.7...; cemie4t.A4
aCainst Coin L(' A oltitep Pr .9a 14o1k fruv, Nankinr dated :31 anrugt gav.
the follow accovint: ".,,Administratively Chen said hs will stow no mt.rcl-
to7..ard GorrutAion ar4 alro.5e of posor. He in-ic4t(.4 Le woulc meta cut
r;a-ital runishment to cul2rit6. He said Ito $4ile tho poorle we must k::11 people.'
vhen be in Lul:f:L,:n tL,1 bult time, rcd,:, cases of aorrurtion nostly
in
Cunittee of Cor,16ned SPrvie s rk.rt. oroufft to hiP, attention such as coereive
ox.urt5on of factori,s and ttex..!_. by arnY MC1, WaAltWO oi eMmuaiti4n and CthaT
114clies and sale f.f 1,:oT_rTy Zor trzte-rof;t. 'V said corrupt c,ff:Iclais;
emitted abot ten bial5cr ,363ars runvhly to t!-,el.r families in CBra
A
United Press r_jort frorr Pe.lping doted SoTtcmber 1(.. and arrearinr in the attaxavd
id :Etc:4 :4;tates: ??rass r,Jnorta Crow LOden ;Asid todvy General CA41.1.1 Ghent::
bewirluartra in the Northoast, had acted acsinet
el,sertegism wionrr rovernmnt r,ff:;P;o;s, .4!1?Int.T, without Ti4arn11g in various
povornmo-lt offices, !,he 61tilq i.biw rlly called the roll and
c.At,red summary diemiasal of a1J, elfficials Th- Ij, .51,511 kAct d`All a
rvat, all orficils now cew4t rk on 1.1ma ?Siraragrapb 7,
There Imvo b,:an oth.ir Mew() si,orie3 re-countine. Lhe execution of military officiary.)
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IMO
lnti-corrrl;tion oamTa:wn f?ears to be in earnest in that several
ar,:zte :,ve been made and oone ofncers have beeu executed but
no pajor fi,gure has bean held, i3'"%lr; atterpted to hanieh CHAO Chia...bsisng
( /14 ANL ), fsrmer CtA:if of :3teff of the ri,C(.), nrd General KNG Pi-shenF
( tAdef) te FDedIOOre loaitiona in
IJAnchou and Chanechun but ht. 1-14.cc1 Nore c lama forced to recall them to act
RS MOiatCrS with th nri lique wen who control mont of the Nationalist troofo
in Manchuria. CIPI41 etticired o ,,et r1d of CHAD bectiuc of the latter's corrupt
activities on behalf of Ce:,loral TU rr, axu)'n ri and other top-ranking
generals who could not effcrd to avc.: -persona1 contiK.t with praft.
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a -Ow purrreas Of -Mc Uenerall_seioreoeuo (etamr) tr17 tm
o4J,,ratinr with CH'LN.
VvIchuria wao tc repTimaryi the Buangpu 7arRira:ia for
, CLAM cri CAT! CONFIDE/CLUJ
Document No.
NO CHANGE in Class. rir
DECLASE1:537.)
Class. c: Tlt 23 0 0
no t
14-PI74 "ig 77 CONFIDENTIAL
Auth: rDA ESO
Date: APR prwil For-Mame 2001/11/23 : CIA-RDP82-00457R001200380001-0
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Approved For Release 6ONFIDERTFIAL
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CONY1D eeT1AL . ?
CeNTRAL INTELI.IGeNag GIMP
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FD Tsung-iiang (I ), Commanding Officer of the ke8CO Preservation Corps
Unit which defended the rtirfe1d during the battle of c:rer,ingchieh in June 1947,
Aaa one of a group of officere ordered arrested by General CHVI Chiang on 7 Septeme
ber 1947. The order for this arrest appeared in the MukdLa newspapers on 7 eeptem-
bore but no move was made to peck up tne in until 10 Slptember. py that time Gee-
eral FU had escaped to Shanghai. Li Hein-yet: (1r-, Director of the Japan-
ese Civilian and Prisoner of 'ear Adminietretion (? of th..e MSCC 7) was in Peiping
at the (-lee the arrest order waa published. he Wife, in Mukden. wired him to
reffialn in rtipina and she flew there to join him. LI 144-t.1.4, aktionslist commander
et Penchihu, remained in Mukden and is now in pawn. Hie oar and house have been
onfisoated althoegh servants are allowed to remain in the house until it is as-
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'I.o nother . pereon.
General C1 Ch'cng has wired General SUN Liait-litulK in Peiping requesting that
em (Thiene, former chief of G-2 of the N4CC, be returned to Lukdea to be geettioeed
eeleeeIeg eeeeueelen, Ne reply Ma boon received from General SUH and 16 le be-
lieved that WEN is in hiding.
IVEN will be askeo about a recent deal regarding six carloane of soya beane snipped
to Tientsin in exchange for eigareteee ehich rere sold in Idukdon at a gee. prerit.
1111111 Note: At preaent there te Ct drive tn Lueden to stop the sales of imported 25X1A
cigarettes; this is in line with the overall policy of prohibiting sale Of luxury
goods.)
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A friend of AILN Chiang told that General CHilin Chiang ordered
Voal to turn over to him evidences of of General TU Yu-ming.
ince W1N refused to do this, there has developed an unfriendly feeling- between him
and CH'SN. On U. October a Nationelist general there was an un- 25X1X
confirmed rumor that WEN had been arrested. en 2]. Uctober, a HIS agent in Peiping
W4N had been released from arrest and was in Peiping and that he
woeid be given EA Han-sante present position. mom Note: MA's position in 25X1A
intelligence work, civil administration, or both?) LA will be promoted because
of his recent good work in connection with the arrest of Communists in Peiping.
WN will go to Peiping from Mukden to be Chief of the Peace Preservation Office.
indicates that WEN failed to return to
Mukden and is reported to be in Nanking.) 25X1X 25X1X
General CRIa has appointed 'a special investigator to check all banks in Lukden
to secure the name of persons who have remitted money to China proper or who
have borrowed large sums. kany persons have been arrested as a result of this
25X1A investigation. ,in investigation of officers' billets has been started. This has
resulted in the turn-over of certain buildines to their original. owners. A number
of high-ranking officers have left the Yamato Hotel as it is probably impossible
for these persons to explain how they can afford to live there on their :military
pay. The austerity program is being enforced. kilitary oersonnel have been
ordered to stay away from restaurants and dance hells. If the military are pre-
vented from spending money in this fashion it is possible that one temptation toward
corruption will be removed. dot one of all tioae arrested has been brought to trial.
CONK))4TI AL
kifERENCE CENTER L1r6R4I
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(2fieL INTeJ.LeeseGe GROUP
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C '614 aseumed commend in eanenuria, one of his first acts was the reer 7.a-
of te G-2 and G-e sections, Pereonnel from the NECC, from General HS UNG's
adquartera, and from Nanking were incorporated into' 3 eroup which theoretically
d be far superior to the old G-2 end G-3 aectiens. Many key WW1 were removed
an(4 nent to the field because they had been too closele eecociated witl General
TU Yu-ming and General HSIUNG. The6a men were the ones who had been reaning the
sectione, and these who recained had never done much ol .nu work. The loyal group
brought from Wanking by CU'EN were not sufficiently feejl."%er with the eituation,
and yet, ell decisions rested with them. Those who remined en the ecetione were
bitter beenuse their friends !fee, been banished and they believe .that teey, too,
will be dropped when the Nanking group is able to operate without thole' assistance.
Under the NECG the 0-2 and 0-3 sections were notoriouely inefficient and most of
oe, work ilf5 clrne byP fdi!Im per sen eith tele ethers putting in time. New, all =elm
bora of theme eeetions appear to ee oceepied, bet it is merely e anow eo impress
et-to erten rakes eurerioe 'elaitu. The euality of Information from 0-2 haa
eetoriorated greatly, and there probably are no really -capable men in .he 0-3
seution, The old group appears to oe eontent to carry on as usual .rid let the
leeklee eesup alcug uiVri as little ateistance as*possiele. 25X1X
General TU Yu-eing, in an inview on 21 October, expr4seed the opinion that
CH' EN Ghleng was making a great mistake to attempt political and economic reforms
in Uanchuria before the Nationalists were saaters of the military situation.
General TU stated that he hoped to be back in Manchuria within mix =webs.
This document contains information
affecting the national defense of the
United %;tates within the meening of
the Espionage Act, 5o, U.S.C. 31 and
32 as amended. Its transmission or
the revelation of its contents in any
manner to an unauthorized person is
prohibited by law.
CONFIDENTIAL
Approved For Release 2( F20Etighttb_00457R001200380001-0