CPW REPORT NO. 15-A -- COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000200110004-2
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 17
• Document Creation Date: December 20, 2016
• Document Release Date: May 10, 2006
• Sequence Number: 4
• Publication Date: September 1, 1999
• Content Type: REPORT

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FOR OFFICIAI, USE ONLY
CPW Report No. 15 A -- CC~AANIUNIST CHINA
(Mar. 24 =~30, 1952)
DATE PUBLISHED:
SOURCE: Monitored Broadcasts
CONTENTS
THIS IS T;TNEVALT:JATED INFORMATION
AN7:IWAS'.CE, AN'~?ICORRUPTION, . ,~,,I~,~,~~1.REAUCRACY . ,,......... l
RESISTANCE TQ,~,.ARIVE ...... ~q ~e ~y~t~;..,........... ~,~:~.......... 6
CASES OF CORRUPTION .................................. S
ECONOMIC PROBLEMS ,.............99...,......,.,,,x.,_....... id
.WAR PRO$LEMS...R?l..-stir..e...9,.ee..es..es..e.e.e.s..q..?e,e+....? l5
LAND REFORM ,,.;~..~+.-~~~,._~ ., ..............; ? ~.?..?,w?.~-
ANTIWASTE, ANTICORRUPTION, ANTIBUREAtJCRACY
Promotion of Drii~e. The Anshan radio announced (Mar. 2$) that an on-the-spot anti-
corruption rs.lly would be broadcast Mar. 29 under the auspices, of the local Austerity
Committee. Listening groups were asked to file reception reports and were given
seven '~e'~.ephone numbers where they could phone urgent comments. Chungking announced
(Mar. 27) that an on-the-spot broadcast of a local anticorruption rally would be
broadcast that day and urged Listening groups t`o make reptart's .
Anshan reported (Mar. 27) that the local"Austerity Committee vva.s opening an anti-
corruption exhibit, and urged all Party and Youth Corps committee to organize corrupt
elements ~rh? had not made satisfactory confessions to view the display. Hofei
asserted (Mar. 29) that the '"political consciousness of the masses was greatly
heightened" by the anticorruption exhibit held at Huainan Ma'r. 26, which showed
specimens of fake drugs, gold and other bribery items, documents on-theft of economic
information, and ways of defrauding the Government. Wuhsi stated (Mar. 26) that
more than 609000 persons already had seen the anticorruption exhibit at Wuhsien,
and after visiting the exhibit the workers "de~tanded severe punishment for corrupt
merchants who defrauded the Government and injured the Chinese Volunteers."
Taiyuan reported (Mar. 2.7) that the SHANSI JIH PAO carried reports on the Taiyuan
anticorruption exhibit: and the adjudication of corruption cases by the Taiyuan
Austerity Committee.
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Kaifeng declared (Mar. 27) that an article in the HONAN JIH PAO showed how-the r~.nti-
corruptian drive promoted the political consciousness of the people and gave them a
better understanding of the tenets of Marxism-Leninism and Mao Tse-tong's theories.
The editorial also called upon workers to organize more meetings, t~so they not only
would educate the masses, but also themselves," and emphasized the.role of sYiop
clerks in the anticorruption drive. Canton reported (Mar. 25) that Chen Yu~nin, a
14 year-old student in the Chenkuang Junior High School, had written a letter accusing
her uncle, merchant Chiu Te-ling, of corruption, "because she wanted to become a
Mao Tsemtung student." Kunming asserted (Mar. 25) that since Kuo Chi-wing, accountant
in the Yunnan Department of Finance, had been pardoned following a full confession to
charges of corruption, he was improving his working efficiency 'yin order to redeem
himself . ?~
Confession and Accusation Meeti s. Chinese regional broadcasting stations, in the
period under review, gave morn attention to reports of accusation and confession
meetings than in any other period during the past month. Anshan reported (Mar. 26j
that at a rally Mar. 22 major corrupt elements Tan Tai-ho, Yung Yu-kuei, and Liu
Min-span confessed and were pardoned, "after indoctrination by workers of the Anshan
Metal Works,;' while 65 persons accused of Minor corrupt-ion also-were pardoned.
Shanghai announced (Mar. 25) that 3,000 persons attended a rally called by the.
Shanghai Austerity Committee to hear Mayor Chen I report on the anticorruption drive
and announce eight regulations for conducting the drive. Shanghai added (Mar. 28)
that small and medium contracting firms in Nanking recently made 160 accusations
against larger firms. Ho Tung-chi attacked corruption among the larger firms, and
pointed out that -the small firms could hope to remain in business only if they
cooperated with the Government in wiping. out major carruiition. Shanghai reported
(Mar. 29) that at a Hangchow rally Mar. 16 nine merchants who declined to confess were
arrested on the spot, while 63 who confessed received lenient treatment.
Tsinan stated (Mar. 29) that after the Tsingtaa Austerity Committee sponsored a
confession meeting many top grafters studied various documents relating to the anti -
corruption campaignp "experienced thought sts?uggle,r' and began to confess. Between
Mar. 13-19 confessions of corrupt elements numbered $Og, while 3g9 grafters added
to their previous confessions. Hangchow reported (Mar. 2!~) that the training school
of the Chekiang Department of Agriculture called a meeting and offered leniency to all
those accused of corruption amounting to not more than one million yuan. However,
Chin Wei-hsiung was held for investigation when he refused to confess to new charges,
denied his former confession, and insisted that he had been falsely accused. The-
Chekiang Department of Posts and Telegraph held a rally Mar. 22, when corrupt elements
ware given a last chance to confess. Chen Hsin ya confessed to taking x.00,000 yuan,.
while Li Yung-han refused to confess and was arrested. Hangchow added (Mar. 25) that
the Chekiang Federation of Cooperatives called a meeting of workers, at which Cheng
Wei-liang was pardoned following his confess~.on that he connived with his uncle,
Cheng Wei-neng, to embezzle 31 million yuan. Shi Feng-chun and Chou Chu-ching were
ordered demoted for fai~.ure to make full confessions. Hangchow announced (Mar. 26)
that, at a rally called by the local Austerity CQmm~ittee on Mar. 25 to give business-
men. a last chance to confess, firms cleared because of full confessions totaled 60,
while the managers of the Kuanghua Match Factory, the Liangche Bank, and the Chifu
Photo Shop were arrested and held for investigation. Hangchow said (Mar. 29) that
all-eight of the "big culprits" in the local merchandise and clothing trades had been
rounded up and "obliged to confess.''
Hofei announced (Mar. 25) that at a rally of the Huannan Huanpei Administration,
Anhwei, Industrial Department, Mar. 19, pardons were granted to 13 persons. Yao
Fumtan, who formerly confessed to corruption of "7 million yuan, raised the amount -t,o
10 million with the explanation that he had held it to 7 million the first time
because he "did not want to be a tiger." Chang Yung-chin confessed to corruption of
... ..:.~
163 million yuan and offered ~'~o return the money. Hofei ac`~~'ed (Liar. 26) that at 'a
Pengpu confession and accusation rally engineer (Hsueh Hsi-fen) of the Bureau of Water
Conservancy had been held far trial and deprivod of memborsn.p in the Yciuth Corps
because he refused to confess to embe221em@nt of 11,000 cattier of rice; four merchants
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were held for trial9 two tax evaders were pardoned; and notice was served pn 54
fir~as that they must confess or face heavy penalties. Hofei reported (Mar. 27) that
at a rally honoring veterans of the Korean war, "when patriotic fervor was at a high
..pitch, Wang Hsiao-hsin s wife made 12 accusations and prevailed upon her husband to
confess to corruption on .his job with the Huainan Railway. Yang Feng-hai, cadre in
the North Anhwei Marine Products Compares, confessed to making fake gold bars and
silver dollars.
Nanchang stated (Mar. 30) that trade circles in Fuliang, Kiangsi, held a rally Mar. 2I,
when Chen Tao-hung of the Grain Bureau and Chen Ta of the China Department Stare were
arrested far refusal to confess, while Wang I wing of the Fuliang Normal School was
pardoned when he confessed to corruption and offered to return the money. Wuhan
reported (Mar. 27) that at a meeting Mar. 2l~ the following were pardoned after
confessing to corruption ranging from 90 to 900 million yuan and accusing others;
Wu ~ih-chang, Yao Hsin vru, and Lo Chung-scan. of the city bus companyp Li Mu-span and
Tao Ming-i of the city navigation company9 Hsiang Ching-j u, Chang Liang-ehen, Wang
Yu-Chang, Chen I-shi, Wang Yung-seng, and Ti Hue-Chang of the local branch China
Department Storey Chen Ming-jo and Liu Pai-chuan of the China Native Products Company;
and Tao Chu wing of the city supply eompa~r. Wang Cheng wing, chief of the Wuhan
Bureau of Trade, listed 100 firms as law abiding and announced the arrest of two
major corrupt elements, Kuo Liangmkuo of the city rubber works and Li Ming of the Grain
Bureau, for failure to confess. Wuhan added (Mar. 2$) that the Central and-South
China Party Committee sponsored a rally Mar. 25 attended by 1,000 persabs, when nine
corrupt elements were pardoned, four accused, and one arrested.
Kunming a:nnouneed (M~r. 25) that at a rally Mar. 1$ called by the Yunnan Department
of Trails 74 tigers were exposed, while ~, persons were pardoned when they confessed
and exposed others. The Kuxmaing Austerity Committee called a ra11y Mar. 1$ to give
cor~?upt elements a last chance to confess, and 20 1;igers who refused to confess were
arrested. Mare than 500 women shop clerks in Kunming held a rally to expose corrup-
tion among their employers. Kunming added (Mar. 27) that at the second anticorruption
~?ally of Kunming shop clerks businessmen in the transport trade praised the arrest
of Chang Shu-tzu and confessed to their own corruption. Kunming s~.id (I~ar. 30) that
shop clerks-held a rally Mar. 2$, attended by 3,000, when corrupt elements were
accused of not making confessions, and their arrest demanded.
Adjudication Proceedings. Mast of the regional broadcasting stations devoted eon-
siderable attention to attempts at final adjudication of corruption cases. Anshan
announced (Mar. 26) that workers in the Anshan-Steel Mills were studying documents
in connection with the Central Government directive on 'immediate adjudication in
order to promote productian,r' that many corrupt elements had made confessions in order
to gain clemency, and that 1$ cases were adjudicated Mar. 22, when 9 were pardoned
and 9 arrested because of refusal to confess. Dairen reported (.Mar, 30) that the
local Austerity Committee had called an adjudication meeting, at which all cases
involving not mare than one million Yuan, and those between 10 and 100 million where
full confessions were made, were pardoned. Yao Tung pang and Wang Chien-ehou were
pardoned because they confessed and exposed others, while Yang Chinmchi was held for
investigation because he refused to confess. Chinchow said (Mar.'25) that the
Chinchow Austerity Committee called an adjudication meeting Mara 18, pardoned Chang
Yu-cheng and Chao Wei men after full confessions, and arrested merchants Li Tao Yuen
and Wang Chun-fang .for refusal to confess. Tsinan announced (Mar. 29} that Chairman
Wang Shao wing of? the Tsingtao Austerity Committee had said the check-up of carrup-
tior~ cases in the four important trades of Tsingtaa had been completed Mar. 25.
Shanghai reported (Mar. 25) that steps had been taken in all the large trade centers
of East China to carry out the Central Government directive for adjudication.
Nanking had issued its first list of law abiding firms; Fiangchow had given out a
oomplete list of classificationse and Nanturag had classified 1,000 firms. Shanghai
added (Mar. 2'7) that although the Nanking Austerity Corrunittee was trying to
adjudicate cases, an average of 64 new ones were being repeived dai],y. In Chu 3,
out of 130 grain firms, 70 had added to their original confessions, while in Chu b
additional accusations had added 600,000 catties to the amount of grain embezzled,
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Shanghai, said (Herb 2$) that in Tsinan 347 uses involving 13.4 billion yuan had been
settled, with. minor violators pardoned following confessions and major violators
ordered to make immediate confessions if they hoped for leniency. The Shanghai radio
added (Mar. 30) that the Nanking Austerity Committee now had handled 24,606 cases out
of the city's 25,$10 firms, with 95 percent of the .firms -now cleared and the 'stage
set for the attack against major violators." Semi-law-abiding firms were begin~-ing
to pay back the funds embezzled or the taxes evaded.
Hangchow announced (Mar. 25) that the Chiangshan Railway Shop tiger hunting team had
settled all cases involving one million Yuan or less, and had pardoned a number of
violators, including Liu Chang-i and Chou Hsi-na, following confessions. The Hangchaw
Austerity Committee called a meeting ,Mar, 23 for adjudications proceedings and
reported that most of the 1$Ci,t~00 corruption cases in the city had been settled.
Hangchow added (Mara 27) that at an adjudication meeting of the Chekiang Department
of Trade one cadre was a~?restecl for refusal to confess; Chen Yuen-cheng handed aver
5 ounces of gold; Chang Hung-la confessed to corruption of 10 million Yuan and handed
over ~ ounces of gold and 50 silver dollars; and Kuan Yeh-ju confessed to corruption
imrolving 90 million Yuan. Hangchaw stated (Mar:'30) the:t Local Department of
Health had completed adjudication of its cases. Kuo Shou Yuen was held when he _
refused to ec?nfess to acceptixig a bribe of 2.?73 million yuan; Ling Y'u-hsiung was
pardoned when he confessed to corruption of 30 million;-Chou Li-yun confessed ~o
taking 5 million Yuan and returned the money to the orphanage; and Shao Yun wei was
pardoned after he promised to pay back the funds he embezzled.
Yangchow announced (Mar. 24) that the Austerity Committees of Yeneheng and Taichou
had called adjudication meetings. Yaflgchow added (Mar. 2$) that Huaiyin Hsien called
an adjudication meeting Mar. 23, dismissed cases-of from 10 to 100 million Yuan
following confessions, and arrested Tung Hsin-lei far refusal to confess. The North
Kiangsu Austerity Committee announced that firms which had `been pardoned were pa i
back taxes, embezzled funds, and fines to the Yangchou branch of the People's Bank of
China. Ho Li-cheng confessed to 110 million Yuan of corruption and was pardoned,
along with several others in the rice and oil trades. Wang Tzu-Chung, Ma Yung-nien,
Ma Yung-hsin,-and Yang Po-Chang, were arrested far refusal to confess. Yangchow said
(Mar. 29) that at.a Nantung adjudication meeting of shop clerks Mar. 25 numerous eases
wars settled9 while the clerks-were told "not to stop or s]:aeken their efforts until
all major corrupt elements are rounded up.t'
Wuhsi reported (Max^. 25) that the Wuhsi Austerity Committee met Mar. 23 to adjudicate
3,642 cases of corruption. Among major corrupt elements"arr~eted for refusal to
confess were Shen I-sang, leader of the hardware trade; Hua Chung-chi, leader of the
textile trade; Yu Temli and Chang Ke-min, leaders in the building trade; Chao Tzu-
chiang, who gave 1.6 billion yuan in bribes; Chou Te ming, who used women to get Arty
contracts; and Chang Hsuehhsin, Hua Fang-te, Hu Te-cheng, and Hu Shoo-sting, speculators
in gold and commodities. Wuhsi added (Mar. 30) that clerks were busy gathering
material for final adjudication. One businessman who defrauded the Government on
Army contrasts still got a semi-law-abiding rating because of his complete confession.
Wuhan announced (Mare 26) that in Changsha workers had made 70,000 accusations, with
4,700 cases adjudicated by Ma,r. 15. Even serious cases of corruption were dismissed
if confessions were satisfactory ??but nonconfessors were given na leniency.~~ Wuhan,
added (Mar. 29) that the Wuhan Austerity Committee had announced the arrest of a group
of merchants who had refused to confess; reported that 20,26q firms had been taken
care of in adjudication proceedings, more than 50 percent of those in the city; said
that corruption in Wub.an amounted to 3$4,5 billion yuan; and claimed that 90 percent
of the, city?s shop clerks took part in making 3$4,500 accusations.
Chungking announced (Mar. 24) that the Chengtu Austerity Committee ad^udicated 6,000
cases of corruption by Mar. 20 and ordered the arrest of-22 merchants who had refused
to confess. Chungking said (Mar. 29) that iri Kunming 60,000"cases of corruption had
been reported and most of them-settled. Kunming reported (M'ai?. 26) that Kunming
shop clerks had submitted a list of law-abiding firms for release. The Kunming
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Austerity Committee called a meeting to pass on corruption cases in 1,066 firms, 212
of which had been classified as law-abiding. Chin Chu-ju, chairman of the People's
Court, ordered the early release from prisan'of Liu Min-thing, Chin Seng, and Chu.
Chen of Transport Compar.,y No. 302 for their "professed willingness to cooperate with
the working class and accept the leadership of State industries." Chang Chou-chi of
.Transport Company No. 306,,Chang Tzu-Chiang, a~d Chang Chung-shan were ordered
arrested for obstructing the anticorruption drive. Kunming added (Mar. 27) that clerks
and workers in the transport trade recently Checked 4,611 firms, turning down 136.
Chino Chinwei of the hardware trade was charged with underestimating his taxes,
and Ku An-Chang of the transport trade was Charged with not confessing in full his
smuggling activities. Both were held for investigation, Government offices in
Kunming, the Kunming radio said (Mar, 2y)-,.had settled all Corruption cases involving
less than one million Yuan "to Clear the way for exposure of major Corrupt elements,"
and had ordered the latter to confess ~at `once if they hoped for leniency.
Special Gourts. Peking announced in numeral Code (Mar. 24) that the Central Government
Administrative Council had adopted on Faro 21 new regulations for adjudication of
corruption Cases. In cities where the cases were many., special tribunals were to be
-set up, consisting of regular Pevple~s Court judges as well as special appointees.
These tribuns..ls were to operate under the~,Munieipal Governments, with Chu tribunals
also to be organized if desireda and were ~o `6e~ disbanded at"`tle end of the five-antis
Campaign. The special tribunals were given fuYl power to arrest, try, and punish,
though judgments involving 10 years or more in prison or the death sentence were to
be reviewed by the hsien or municipal government. Cases of law-abiding or semi-law-
abiding firms were to be handled by the Austerity Committee with right of appeal to
the special tribunal. In localities where the Corruption eases were few in number
they here to be handled by the People?s Court of city or hsien.
Wuhan reported (Mar. 28) that the Central and South China Department of Trade called
a meeting Mar. 21 and set up"a f?temporary People's Court" to adjudicate corruption
cases. The Court pardoned a large number of firms and arrested Kung Chi and Chou
Shag wen for` refusal to cox~"ess. Sian ~annou:need {Mar, 30)'`that the local People's
Court had organized a "summary Court" to try. corruption Cases,. consisting of the Chief
~ustiee of the Sian People?s Court, the head of the Federation of Labor Unions, chair-
man of the Board of Trade, and delegates from-other groups.
Chungking reported (Mar. 28) tY1at, "in accordance with the Central Government
directive on the adjudication of corrupt 'Cases ," the People's Court of the Southwest
Military District, in Conjunction with six other organizations, set up a ~'surrunary
Court" Mar. 27 to try Corrupt cadres accused by eight Government offices. Chang
Yun-Chu, Chang Kun yun,,Li Chin Gruen, and Chu Chung "were sentenced to immediate
execution for refusing to make confessions." Two others were sentenced to death with
a stay of execution, one-was given a life prison term, two were released, and the
others were remanded to their own off ices for trial.
~hif- ive Anti's Drive. Peking reported at length a statement made by Shanghai
-Mayor Chen I to Increased Production and Economy Committees~of the city and various
Chu, extracts from which follow;
I hereby announce the formal initiation of the struggle against
bribery, tax evasion, embezzlement of National property, cheat-
ing on contraeta, and stealing of State economic information, in
Shanghai .... We .must warn all lawbreaking Capitalists that the
People?s Government and the people cannot tolerate any more their
- crimes. Linless they ~?epent, adhere to the laws of the People's
Government, Completely confess, give up their stolen funds and
materials, and pledge not to commit violations again, the People's
Government and the people will n?t forgive them ...> Regardless
of their status in the People?s Governffient, their scale of
business, their-skill in handling production, their factions and
.their strength, their falsification of accounts, their formulation
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of offensive and defensive pacts, and their running away and hiding,
the People?s Government has the complete authority and confidence
to give them complete sanctions .... The outrageous inroads into
the Chinese Communist Party and the working class by the Shanghai.
lawbreaking capitalist class are more organized and well planned
than those by the capitalist class of other communities. Their
techniques of attack are smarter, and therefore more devastating ....
I am of the opinion that the success of the five-anti?s struggle
of the Nation hinges on the five-anti?s movement of Shanghai ....
It is hoped that the broad masses of Shanghai will respond to the
Government, take up their combat positions, and wait for orders to
act .... The f ive-anti?s struggle is not the liquidation of the
capitalist class, as the land reform struggle is liquidation. of the
landlox?d classo The f ive-anti?s movement is the liquidation of the
harmful actions of the capitalist class which endanger the national
economy and the people?s livelihood .... They are permitted to
engage in legal business and reap legal profits, and in addition
will r~egceive~}the protection of-the Government. (Peking, numeral
c?de, Mara 2$)
Chen I explained in detail that there was no change in the position of the Government
on the status of the capitalist class. The revolution still must be carried out by
a union of the three classes working together- workers, peasants, and the petty
bourgeois.
Hofei announced (Mar. 29) that in Huainan the five-anti's campaign exhibit had been
opened Mar. 26, ?lafter one month of preparation." It showed, amore other things,
'the bribes given cadres by capitalists and un~rholesome drugs :se~ld .~zi the market.
RESISTANCE TC? S~tI~TE
Capitalists and Businessmen. .Dairen reported (Mar. 30) that'in the .settlement of
39400 cases of corruption among local industrial and commercial firms the arrest was
ordered of "12 treacherous merchants".who committed enormous crimes and "resisted
the drive.' Chinchow announced (Mar. 28) that the ChiAChow Austerity Committee had
accused x.00 merchants of obstructing the drive by holding back t~00 million Yuan in
wages from 1,000 workers. Hangehow reported (Mar. 25) that workers had demanded the
arrest of merchants Tang Chien ping, Chen Tzu-Bang, and Chou Ping-kuei of Wenehou for
mistreating workers during the anticorruption drive, holding back wages, and using
defective machinery,. allowing one worker to be killed by a broken belt. Workers in
the Hangchow silk mills held a meeting in an effort to "smash the schemes of capitalists
who tried to obstruct the antiwaste, anticorruption, antibureaueracy drive." Among
1,011 small silk-mills, 259 had stopped operations and cut off meals and wages.
Workers organized teams to consult with factory owners in an attempt to get work
resumedy and succeeded in 94 eases. The Austerity Committee charged Han Tzu wen,
Y?h Chi feng, and six others with stopping work, and ordered them to resume operations
at once. Hangchow added (Mar. 29) that the local increased Production and Economy
Committee called a meeting, Mar. 26 for "prohibition of illegal suspension of opera-
tions, or closing down of business," by r'lawless merchants leniently treated."
I~aifeng quoted (Mar. 25) from an editorial in the HONAN JIH PAO which exposed attacks
by the capitalist class upon the Nation?s economic structure, warned of capitalist
.trickery, and called upon the masses to "organize themselves for a death struggle
with the forces of corruption." Hofei reported (Mar.. 29) that Cheng Kuo,chuan and
Wu Chi hsing, owners of the Hsiehchang Trading Compar~y, connived with worker Huang
Chang-thing to force worker Huang Hung-fa to cc3II?nit suicide because he exposed the
corruption of the management.. This was the third case of murder or suicide caused
by businessmen obstructing the anticorruption drive. The HUANNAN HUANPEI dIH PAO
carried an article demanding severe punishment for corrupt capitalists who caused
the deaths of workers.
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~Iuhsi announced. (Mar. 2~) that I{u Kuo-an, Wuhsien merchants had been arrested for
infiltrating cadre I~ao I wing into the Wuhsien branch of the China Department Store
to defraud the Ooverr~ent and gain inside inforanation to use in speculation. Yard
goods prices were raise?1 so arbitrarily in the store that "the anger of the public
was aroused.' In addition, K u and his accomplice contrived to sell 62 bolts of
Govera~ment cloth and tie up capital. In the first 3 months of 1951 yard goods sales
in the State store were only 46 percent as high. as in private stores, yet the State
store?s capital was six or seven times as high. Wuhsi said (Mar, 27) that Chang
Ming?chi, cocoon merchant and vice chairman of the Board of Trade, had been dismissed
from the latter job because he formed alliances with other cocoon merchants to clflse
up shop and force wo~?kers out of ~job~. His accomplice, Chen Chi-shen, also was
arrested. WuYasi asserted (Mar. 2~) tYaat the Wuhsien State textile mills had purged
the~aselves of capitalistic eleffients that had infiltrated into the mills to cheat the
Government and obstruct the anticorruption drive.
Kux~aing reported (Mar. 27) that the Yunnan Bureaix of Trade discovered recently that
more than 20 percent of the cadres enrolled for training had been sent by capitalists
to infiltrate into State enterprises, some merchants even paying the cadres to become
trainees. Ma Wei confessed that he was sent by his uncle, a salt merchant, so that
when he got a job in a Oovernr~ent trading compa~Igr he could furnish his uncle with
inf ormation. Chang Chia-kou confessed that he was an agent of corrupt merchant
Feng Chienmhua.
Cadres and Workers. Anshan asserted (M~?. 25) that despite attempts by corrupt
merchants to enlist the cooperation of s~+nior clerks, "most of therm' now were making
accusations against merchants. Wang Te-thing offe~?ed-Yang Han-thing a share in the
business, but instead Yang exposed his e~aployer. Chinchow declared (Mar. 27)-that
gas a result of their indoctrination," Chinchow senior clerks and technicians, "who
formerly had identified their inte~?ests with the capitalists,?' now had joined the
workers. Accountants Liu. Wei Yuen of the Weisseng Ironworks, Liu Yu-fen of the
Mengchi Processing Mi11s, and Li Ming~chu of the Chinchow Textile Mills, all accused
their ~er~pleayers .
Shanghai reported (Mar. 2!~) that Chen Hua~,ing, head of the Chinhua, Chekiang, office
of the China Textile Compaq, had been removed for obstructing the drive. He pardoned
his clerk, Chang Hsin-dui, and kept him on the job-after he confessed to embezzling
15 million Yuan, when actual he had taken 120 cni~.lion. Hangehow said (Mar, 25)
that the Hax9gchow Federation of Labor held ~n indoctrination. course for senior
workers Mar. 12-22 in order to increase their support for the anticor~?uption drive
and "overcome their reticence." Yang Wan-thong then confessed to writing a false
letter of confession for his employer and accused him of embezzling 200 million Yuan.
Fiangchow added (Mar. 26) that staff members at Chekiang Uraive~?sity had promoted the
anticorruption drive with criticisms and self mcriticisms "which were either weak or
pointless." After indoctrination "many who were above politics," such as 67-year-old
Prof. Chin Ssumchien, took a great interest in the drive, "and those who still are
lukewarm in their political interests have been warned to correct their thought."
Huainan announced (Rdar. 25) that the anticorruption drive in the Huainan branch of
the People?s Bank had gained momentum following suspension of Chau Ching and den
Lien-chin, managex? and deputy manager, respectively, "who obstructed the drive."
Kunming reported (Mar, 25) that the Austerity Committee of ~'haotung Hsien, Yunnan,
had called a meeting of cadres to "correct rightist thought" among those vPho said
that no cos~ruption existed, and that if it did it easily could be taken care of by
confessions. Kunming said (Mar, 26) that cadres in Szemao Hsien had been accused of
rightist leanings in carrying out the drive, and in order to "overco~ae these incorrect
thoughts," other cadres had been sent to the hsien to hold rallies. The new cadres
exposed the tricks of Chang Mu-yuen and acett~~ed him of major corruption. Kunming
complained (Mar.:30) that fn the Kuxuning Te~ctile Mill the "five anti ?s movement was
not carried out successfully," because after preliminary tiger hunting was su~cess-
ful the management ordered the workers to take part in the "campaign against waste,
ox same other kinds of difficult work." Instead of these replaced cadres other tiger
hunters. were named, who "have not achieved any remarkable results .T'
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Private Businessmen. Chinchow reported (Mar. 29) that (Ching Pai-span) of the
Chinchow Mowing and Transport Company had been spared criminal punishment, but must
refund the 133 million yuan.he confessed to taking. (Meng Chia-pu), who grafted 19
million yuan, must repay the money and serve !~ years in prison, Peking announced in
numeral code (Mar. 24) that Tu Hsueh-pin, manager of the Tung Hsu Rice Processing
Company, Mukden, stole Government goods, largely through substituting poor rice for
good, and evaded taxes. ,As he confessed, along with his partner and four others, he
xas required to ref and the goods and the evaded taxes, but received no other punish-
ment. The same procedure was follov~ed with Tien Yu-huan, submanager of the Yung I~ou
Furniture Store of Mukden, who made illegal profits through selling furniture to the
Govera~aent and waded taxes .
Shanghai reported (Mar. 24) that Yang Chin-sheng, chairman of the Shipbuilders Trade
Association, and den Tung?sheng, owner of the Hofeng Shipyards, corrupted engineers
Jen Kung ~vu and Fei Ming-kao of the East Ghina Navigation Department, and were able
to make one billion yuan out of a Government contract for 2 billion. -They also
defrauded the Goverrunent of 60 billion yuan in other contracts, and 80 percent of the
barges they made now are tied up on the Huangpu River because they cannot be used.
Shanghai said-(Mar. 25) that Wuhsi merchants Mu Li-chin and Chico Chu-cheng defrauded
the Goverrunent of 160 million yuan in making woolen blankets. Kuo Yeh-thing was
accused `of organizing private industry to oppose State industries. Shanghai declared
-(Mar. 26) that workers in Shanghai had demanded severe punishment for Chieg Fu-chi
for defrauding the Goverru~ent in contracts for construction on the Huai River project.
Cheeg organized 16 firms in bidding on the contract, causing the Government to lose
450 million yuan. In turn, as a result of weak embankments, the sidewalls of one
dam developed leaks, causing the loss of a freight train valued at 330 million. Most
of the flood gates. crumbled, forcing the Government to spend huge sums on repairs.
WYaen defective embanl~nents caused floods in 1950, corrupt merchants contracting to
furnish 22,000 gunny sacks took advantage of the situation and raised the price from
6,000 to 9,000 yuan each. Shanghai added (Ma~?. 27) that Cheeg and other contractors
on the Huai River project cheated on labor and materials at a cost to the Government
of 850 million yuan.
Hangchow related (Mar. 25) that Ling Heng-kang9 rice merchant, bribed cadre Hsiao
Ming of the Yinhsien office of the China Grain Co~npar~y and then speculated in grain,
forging the price up. Merchant Chien Chin-fu bribed cadres and defrauded the
Government of 500,000_catties of rice in $ months. Hofei announced (Mar. 25) that
Tu Tung wing, Wuhu lumber merchant, had been charged with defrauding the Government
in cantracts for building post offices, and bribed cadres so that he could speculate
in lumber. Huainan reported (Mar. 25) that Hsu Yu-san, manager of the Shirring Rice
Mi11; Wang Ta-Wien, manager.af the Changchiang Rice Mill;-and Hsu Shou-po, manager
of the Hsinsheng Rice Mill, had been arrested for defrauding the Gove~?runent on rice
contracts for the Huai River pro~eet.
Kaifeng reported (Mar, 26) that Tao Chun-tiers had been charged with illegally
slaughtering more than 1,000 oxen in the past 3 years and evading l0a million yuan in
taxes. Kaifeng said (Mar. 27) that merchant Hsieh Ping-~ju had been charged with
selling fake drugs. Kaifeng reported (Mar. 29) that the CHENGCHOU JIH PAO carried
letters from all circles attacking Yu ~'ih-cheng, owner of the Hengta Pharmacy, who
killed his clerk, Chang Wenmchang, Mar. 10 for exposing Yu's corruption. Wuhsi
announced (Mar. 27) that Li Meng-chi, Yu Yu-chin, and Nieh Shou-ts had been
arrested Mar. 23 as leaders of a corrupt ring of eight Wuhsing hardware merchants
rho regularly defrauded the South Kiangsu Industrial Bureau by selling substandard
materials at high prices, and embezzled 3 billion yuan in 21 months. These hardware
dealers gave bribes of 3'70 million yuan to cadres in the supply section, and in 1949
sold pipes of-300 pounds pressure to the Hsiyehan Railway ,Shops, representing them
as 500-pound-pressure pipes, thus endangering the safety of the workers. Ku Cheng-
ping also tPCOrrupted all the cadres'" in the Wuh.sing Tax Bureau so that he coula. evade
taxes on one billion yuan worth of business. In Wuhsien 106 wine shops defrauded
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the public with cheap goods, and defrauded the Government by evading 16 billion yuan
in taxes. Chin dih-ju and Chang Chia-shun of Wuhsien organized a corruption ring of
merchants who connived with counterrevolutionaries to "endanger the Nation," and
tried to obstruct the anticorruption drive by forming mutual alliances. Wuhsi said
(Mar. 2$) that Kuo Chi-jen, owner of the Tanking Pharmacy, Chenchiang, Kiangsu, was
charged with selling fake penicillin. Wang Te-herd, t1the king of fake drugs,?' sold
drugs which caused patients to die, and other druggists in Chenchiang were charged
with handling 3p kinds of fake drugs which consisted principally of water.
Nanchang asserted (Mar. 26} that Wang Chin hai, Nanchang sugar merchant, had illegally
raised prices, undes~[tinzng the People's Cooperatives. When model farmer Wang Chin-lin
was selling sugar to the Shangjao Cooperative for l~10,000 yuan, Wang offered him
~3?,000, but his offer was refused and he was exposede Nanchang added (Mar. 29}
that merchant Hsu Mu~ling of Yunghs.iu Hsien, Kiangsi, had been arrested for setting
fire to 1,000 mou of forest land. Canton reported (Mar. 25} that the Chinchiang
Construction Company had been charged with cheating on labor and material in building
the Tachung Workers Primate School in Tashatou Chu, endangering the lives of 300
pupils. Canton added (Mar. 2q}.that (Chou Jih and Liang Cheng-lung) of the Ichung
Construction Company cheated in building a dam, causing enormous loss to the peasants.,
and thx?eatening 330,000 mou of land with inundation.
Kunming stated (Mar. 26) that farmers in Hohsi Hsien, Yunnan, were demanding cor~nensa-
tion for their losses in using water pu~aps made by Yeh Chum-chi, edrrupt smith who
also cheated the Government by using old parts in making repairsa His pumps wc3u].d
water on1;y 200 mou instead of the expected 1,000, causing a loss of 160,000 ca~ties
of grain. Kunming announced (Mar, 27) that Chang Shu-chi had been arrested f oar bribing
cadres in the Yunnan Military District office and using Government funds for specula-
tion. Chang Chi-hsin also was arrested for stealing Government property, and Chang
Hsieg-chang for stealing 127 billion yuan worth of Government aviation and motor
truck supplies.
Peking announced in numer~.l code (Mar. 21~) that two gangs of large?scale smugglers in
gold and narcotics had been arrested in Wuhan. Chang Tao, former Wuhan dealer in
gold and silver, was the organizer of one ring, which actually was operated by his
brother, Chang Po-chiao. The ring purchased gold through 30 dealers and held Chang
Liang hao responsible for secretly exporting gold and .importing narcotics. Using
railway workers by giving theaai shares in the loot and by bribery, Chang handled
14,$00 Jiang of gold and 1,100 silver~dallars. Leading members of the other ring,
which was organized by Shen Shao a~in, Wuhan gold dealer, included J'ui Shih-yu,
finance comTnissioner at the Yuhua Textile Factorys Chen Yung?fu of the textile trade;
Shen Chi-yen, manager of the Hankow Hochang Cotton Stores Kuo Chu, deputy chief of the
finance and accounting section, Trade Department, Central and South China Military and
Administrative Committees Chou Tsu-i, clerk in the Trade Departments and Li Ghao-tsung
of the Fuhua Antiseptic Cotton Factory. The rir~ had a combined capital of 2,000
Jiang of gold under the name of the Hochang Cotton Store and connections Frith the
Chen Yung-fu gang in Shanghai, The outfit also used Kuo Chu and Chou Tsu-i to steal
information pertaining to the cotton and yarn industry, and profiteered on 1_,200
bales of cotton shipped to Canton. Six of the smugglers, including the organizers
of both gangs, already were reported arrestedo
Kaifeng announced (Mar. 2$) that Yu Yung-fa, factory owner, had been arrested for
obstructing the anticorruption drive-and for smuggling z7a.rcoticse He corrupted mares
cadres on the Canton~Iankow Railway and forced them to participate in his illegal
activities, which cost the Government 2 billion yuan.
Government Emx~lovees. Tsinan asserted (Mar. 25) that Chu Ko-f u, manager of the East
China Colliery, had been removed fvr corruption, ?'an act which greatly increased
the productive enthusiasm of the workers . /? In the Tashanghai ~Vfat ch Factory of Hsuch.ou,
Shantung, a corruption ring led by cadre Hsia Chiu-ssu was exposed which robbed the
Government of 361,697,000 yuan on 1850 lumber contracts. Tsinan said (Mar. 2g} that
Deputy Mayor Hsu Chen of Tsinan and Deputy Chief Hsu Ming of the Shantung Public
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Security Department had been dismissed for corruption and misbehavior in office.
Shanghai reported (Mar. 2~) that Yang Ping-shi, business ffianager of the Chenchiang
branch. of the People4s-Bank, had connived with corrupt merchants to lend the bank
funds for speculation. In 1951 the Government lost 40 billion yuan as a result erf
activitids of 21 city grain firms, which used 7 billion yuan of Government money to
finance their activities.
Hangchow announced (Mar. 2~) that cadres Wu Ssu-.fa and Yu Pi hua of the Nahsienehiao
branch of the People?s Bank in Hangchow had been arrested, along with merchant Chin
Y'av-Chien, for using Government funds to speculate and disturb the lumber market.
Yangchow reported (Mar. 26) that Hsu I-po and 10 other cadres in the Taichou branch
of the China Food Company, Kiangsu, connived with corrupt merchants to defraud the
Gvver~aent ~ of 3 billion Yuan.
Hofei reported (Mar. 28) that cadres Chang Ming-kuang and Hsu Chung-Wien of the
Huainan Mining Ad~ainistration had been arrested for conniving with corrupt merchants
V9ang Ling-f u, Wang Tem3en, and Cheeg Chin-pao to defraud the Governartent on lumber
contracts to the amount of 3 billion yuan. The merchants regularly used the money
of the Mining Administration to speculate in yarn, gold, and silver dollars, not only
disrupting-the market., but also failing to deliver lumber tv'the mines on time. Hofei
added (Mar. ~0) that in the Liuan District Ar~inistrative Office (Chu Ming-Chu) had
bean arrested for grafting 68.`76 million yuan and 80,000 cattier of rice. In his
position as chief of the construction section he connived with lawbreaking merchants.
Huainan announced (Mar. 26) that Wu Chaan hsien and Liu Pei hua h~.d been expelled
frogn .the Youth Corps for corruption.
Nanchang-reported (Mar. 26) that Peng Chia-lun, chief of-the propaganda section of the
Kiangsi Party Ccrtittee, had been expelled from the Party for conniving with former
Kuomintang Ara~ymen to make illegal profits9 Li Li, Party Secretary of Chian Hsien, was
expelled for conniving with corrupt elements to defraud the Government; and Yuan
Chin~aing, member of the Chian Hsien Party Co~nittee, was expelled for misusing
Gvverrutaent funds and ordering roads built so he could use his private ear. Wuhan
-said (Mar, 2'7) that workers and shop employees had demanded severe punishment and
confiscation of-the property of (Ho Heng-pu), former chairman of the preparatory
committee of the Industa~r and Coerce Joint Association of Wuhan, for organizing a
ring to steal Government economic information. Chungking announced (Mar. 21~) that
Mang Shao-den, PeopleQs Bank cadre, had been charged with corruption amounting to 10
billion Yuan and with helping corrupt merchants steal another 21 billion Yuan. Chen
Ghi-dui, Ghina Department Store cadre, was_oharged with embezzling 25 billion yuan.
.. ,...
Effects of Drive. A conside~?~"~'~o number' o" broad:casting~"se'a't-dons continued 'to insist
that the anticor7?uption drive had increased, rather than decreased, production in many
shops and factories. Peking in numeral code (Mar. 29) asserted that the Peking office
of the China General Merchandise Co. had announced a out of 5 percent in the average
prices of 560 articles as a result of reduced costs brought about by the anticorrup-
tion drive, which "streamlined businesses," placed workers in charge of inspection,
and out out the squeeze going to corrupt ele~aents. Shanghai announced (Adar. 25)
that locomotive engineer Liang Limchun of the Nanking Railway Administrat:ton drove
Locomotive~No. 559 through heavy weather from Nanking to Shanghai during the drive
to set a 21~-hour safety record. Wuhsi claimed (Mar. 26) that pipe fitters had greatly
increased their efficiency, as a x?esult of the drive, and completed inst~llativns
in the Wuhsi Paper Mills~in record time. "Engineers no longer look upon pipe- fitters
as beneath theme but often work closely with them.'1
Chungking asserted (Mar. 30) that in the Chengtu engineering section of the Chungking-
Chengtu Railway the efficiency of the workers was higher than before the drive, ~~.nd
now they had pledged to complete the construction of the ~?ailway by July 1. In the
No. 601 Textile Mill of Chungking production had increased as a result of the drive
because "corrupt bureaucratic elements were expelled." Kux~riting claimed (Mar. 26)
that in the Yunnan branch of the People?s Bank, efficiency of ope~?ations had improvE=d
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noticeably as a result of the drive, with the time required for calculating interest
on deposits cut from 5-7 days to 4, and the time required to balance-the books of
individual accounts cut from 7 hours.to I. Other claims of improvement in production
as a result of the anticorruption drive were monitored from Mukden (Mar. 24), Sian
(Mar. 21~), Shanghai (Mar. 25), Hangehow (Mar. 26), and Chungking (Mar. 29-30).
Other broadcasts, while not claiming positive gains in production from the anti-
-corruption drive, maintained that production had been held to normal or improved
as a result of adjustments recently made. Anshan declared (Mar. 29) that in the
Anshan Ironworks Youth Corps members had taken the lead, were improving production
duria~ the day?"as a result of their political indoctrination" during the drive, and
were carrying on their tiger hunting at night. Hangehow claimed (Mar. 29) that
production in the Hungfeng Silk Mills now was up 26.1 percent through "coordination of
the antiwaste, anticorruption, antibux?eaucracy drive with the production drive."
Huainan reported (Mar, 2'7) that workers in the No. 9 Colliery had "voluntarily
increased" individual work quotas by !~ percent. Sian said -(Mar. 29) that Government
offices and trading companies in the Northwest had reassigned part of the cadres from
the anticorruption drive to maintain normal operations. As a result both drives were
gaining, and other gains had been registered by uncovering during the anticorruption
drive "a large number of useful cadres who have been added to the forces of the
Peopleos Revolution."
Chungking' asserted (Mar. 24) that on the Chengtu Railway workers had mapped out a
plan to coordinate the tiger hunt with the production drive by "letting day workers
hunt tigers by night, and-night workers hunt tigers by day." Chungking said (Mar. 27)
that in the Kweichow Province branches of the China Grain Company and the China Lumber
Company' production records had been established in January and February, but in order
to "further promote normal operations," more and more cadres had been allocated from
the tiger .hunt to normal business operations. Chungking reported (Mar. 30) that in
the State trading Companies of northern Szeehtwan, cadres who "showed their political
awareness" during the anticorruption drive had been promoted to responsible positions,
and now were 9?arranging contracts with private merchants for processing goods on an
honest basis.'' Kunming declared (Mar. 2?7) that after the arrest of Yeh Kung-chi,
manager of the Kux~ning Pour Plant, the workers had increased production and now had
promised to complete the Kunming Hsien conservancy project by the end of April..
Sti11 other broadcasts frankly admitted that production had been hurt by the anti-
corruption drive. ,Anshan admitted (Mar. 25) that although workers in the Anshan. steel
mills made "brilliant achievements in tiger hunting," production had lagged far
behind schedule during the past few months 90because of the preoccupation of the
cadres .'+ Mukden announced (Mar. 21,) that the Mukden Party Committee had called two
meetings of factory workers to "coordinate the tiger hunt and production drive," as
"cadres had neglected production by paying too much, attention" to-the anticorruption
drive. Tsinan declared (Mar. 26) that "as a result of all the cadres spending-their
time making achievements in the tiger hunt," the Hsuchou Tobacco Company "completely
ceased operations" Feb. 2. ~In order to resume o erations the com a
p a pr.~Yissueda
directive on Mar.. 10 allocating cadres to normal business operations. Tsinan added
(Mar, 30) that in the No. 1 Factory of the Shantung P?~per Company indoctrination by
leading cadres was necessary, as "workers had paid all theii? attention to the tiger
hunt so that production suffered."
Hangehow declared (Mar. 24) that in the Hengfeng Textile Mills of Yinhsien the Govern-
ment had..suffered a huge loss. The China Cloth Company had given processin~7 orders
to the mills "in an attempt to maintain the livelihood of the workers," but a,s a
result of the anticorruption drive the mills started production only Mar. 13, and
then "defective yardage reached 25 percent because of the unrest among the work.ers."
The management had issued a blackboard notice telling the workers "to work more and
do less arguing.+' Government losses resulted from spoilage and from the higher i.ocal
costs over Shanghai costso Hangehow added (Mar. 25 ),.,that the Chekiang branches oi`'
the State companies handling native px'oducts, silk,~tea, general merchandise and gZ:ain,
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"which were interrupted by the antiwaste, anticorruption, aritibT.zreaucracy drive, have
resumed normal operations?" It was claimed that the China Grain Company was "working
under serious difficulties because of a shortage of transport," but that the companies
were buying native products from the farmers and furnishing them with the daily
necessities?. Hangchow admitted (Mar. 30) that in Hang Hsieh, Chekiang, the Federation
of Cooperatives called a meeting with branch cooperatives in an effort to strengthen
the interflow of native and special. products, "as 800,000 catties of sugar cane and
300,000 piculs of water chestnuts are not yet marketed."
Hangchow announced (Mar. 28) that the Hangchow Austerity Committee had called a meeting
of trade union members Mar. 23 "to urge them to take the lead in reviving normal
business operations of shops affected by the antiwaste, anticorruption, antibureaucracy
drive?" Changes were adopted "under the leadership of the workers," which increased
the operating capital of ~;ome'" dhops, and `tHa`"Y~tahsiang Cldtf~ Shop was reclassified
from a major non-law-abiding firm to a semi-law-abiding firm, Hang chow added
(Mar. 30) that workers in the Hangchiang 'Textile Mills had "overcome their rightist
leanings which resulted from" ~ sudden drop iii" production'' ~dt~s^ing the anticorruption
drive, and had increased output and decreased spoilage.
F oocho~r reported (Mar? 27) that in the printing machine factory of the Fukien Printing
Machine Department, some workers, '''due to a lack of leadership, overindulged in tiger
hunting," a mistake that was rectified when the director of the factory himself
assuubed the leadership of the drive. Chungking said (Mar. 24) that after a meeting
to coordinate the anticorruption and production drives, "production is again waking
headwayf? in the trade and financial organizations of northern Szechwan. As a result
of this reorganization, the People's Bank had` started making`'`Ioans to "confessed
corrupt merchants," while the China Cotton and Yarn Compar.~y, and the China Food
Company had begun letting processing contracts to private firms. Kunming stated
(Mar? 25) that in the 'Yunnan Power Plant new cadres had been appointed, and others
promoted, to "take over positions vacated by corrupt elements," and that, "in spite
of the current difficulties," the new :men had been able to do the work. Chang Chin-
tang proved to be wrong when he maintained that only he could operate certain machines,
and that the plant could not do without him. When Liu Chian hue, head of the
materials section, was removed he was replaced by his deputy, Pi Huan-chi, and by
Pu Kuo-Chiang of the purchasing office, Chang Chin-tang, head of the supply section.,
was replaced by ,Liu Ya?fa, former transport -head,
Shortages and Famine, Wuhan announced (Mar? 25) that "in view of the serious f~.mine
in Kiangsi last year and the prospects of a spri famine this
Government had issued 20.$ billion uan for relienfg there. year,." the Central
y Similar steps had been
taken to care for Hupeh, Hunan, Kwangtung, and Hainan Island. Nanchang said (Mar. 25)
that cadres in the drought areas of Kiangsi had taken the lead in aa~ranging loans
in Shangjao Hsieh, where sufferers had received 30 tan of grain, and in Kan Hsieh,
where they had received 91 tan. This action ''quieted the fears of the wealthier
farmers, who at first feared to make loans at interest?" Nanchang added (Mar. 29)
that the "new damage to winter crops aggravates the situation" in the Loan, Shangjao,
and Hsinyu localities, The Kiangsi Production Committee for Relief of Disaster-
Stricken People and the Kiangsi branch of the Chinese People's General Relief
Association had called upon working personnel to save ohs Jiang of rice each day
from Apr. 1 to July 30 to relieve Kiangsi people "stricken by natural disasters e"
Foochow announced (Mar, 29) that in the Chinchiang Special District, Fukien, the
presence of sprir~ famine "has aroused the serious attention of the local Governments,"
which were intensifying their production policies and promoting "free lending and
borrowing" to tide over the difficult times, Shanghai (Mar? 27) listed the latest
price quotations in several leading cities of East China, Except for the high price
of new rice, 172,000 yuan~ in Tsingtaoq only Foochow showed wide variations from
the other cities, Cotton yarn was quotes at 8.7 million in Foochow, 7.5 million
in Hangchow9 fine cloth 322,600 in Foochow, 288,000 in Hangchow9 yellow beans
166,300 in Foochow, 86,000 in Nanking9 edible oil 640,000 in Foochow
Tsinan; salt 127,000 in Foochow, 85,000 in Tsi tao? ' 400,000 in
only in newsprint and matches, while new rice ~s Quotations were low for Foochow
115,000 in Hang chow, though it was still higher ingTsingtao?136,200 for Foodhow and
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Chungking announced (Mar., 30} that the North Szechwan Administrative Office Mar. 23
allocated 100 million Yuan. and 10 million cattier of food to .four special districts
under the jurisdiction of the office, with instructions that the food be distributed,
without delay, "to food-deficient areas." Kunmixag reported (,Mar. 2`7} that workers
in the Yunnan Machine Y~oxks had developed a technique for making molds out of salt,.
lime, and charcoal, "to aloLeviate the shortage of materials in Kuruming.~'
F~ ~?roduction, Wuhan announced (Mar ~ 27) that 60 teachers and, students from Y~uh~n. ~.e?t
for the rural areas to promote.the spring farm production progx?am.. Chinchcm~'
said (R2ar. _21,.} that cadres in Lirhu axsd Hsinmin Hsien, Liaori Province, had been sent
to the rural areas to ascertain. needs. of farms for spring operations. In Taan Hsien
model farmers were organizing wcanen to promote the spring farm program.. Foochow reported
(Mar. 25) that cadres in the rural areas of Fukien were promoting the spring farm
programs .; ~ioldi~ag meetings, orgs~~~-ng .mutual aid teems, .~;,:di~tributing fertzliz~r,
Sian. azua~aur~ced (~2ar . 24) that, in. order to release men.. for_ :work Pn antidrought prq~eets,
women were doing the work in the ~rheat fields,. and day nurseries had been set up to care
for children while their mothers worked in the fields. 2n .Sinkiang 2,000 laborers and
personnel of the- People a s Libexat.o~. ~.r~y s?tarted work on .the.., Twata Reservoir.;, which.
will, irrigate 50,000 moo. Yangchc~v said (Mar, 21~} that the Nantung Special District
had reported 1,991 temporary and 5:79 permanent mutual-aid teams organized. Chitung
Hsien p7:anta.~d , ?to organize 35 ~ercer~t of its facet labor fores', ~.xato mutual aid teams.
Other broadcasts telling of action to get spring farmin`?; under way, build and repair
irrigation ,systeatts, reclaim ws.steland, supply fertilizer, organize mutual aid teamsq
and provide :Loans for farmers, were. monitored from ~V(v~den, Peking, Chinchaav, Tsina~.,
Shanghai,. Hangehow, Hafei, Yangchow, Taiyuan, and~Chungking... "Taiyuan reported
{Mar, 25} t~a?t another group of 25 cadres in Hsin Hsien, Shansi, had been taken off
the anticorruption drive and sent to the rural areas to aid with spring farming
following indoctrination. Foochow said (Mar. 2$} than in Yungchun Hsien, Fukien,
Party and Gove~unent cadres had been .lax in promoting spring I'ax~aing because they
were too busy with. the anticorruption drive. In Pingtai Hsien cadres met Mar. '7,
-but t?ok no action tcr~rard aiding the farm program until Mar.. I4.
A considerable number of other broadcasts x?efleeted difficulties experienced in prdmot-
ing faun produ.etioa~ o Chincho~ reported (bear. 26} -that `because of the cold weather
only '70 militiamen responded to-the call to dig ice from the river for irrigation in
Ihsis~i, Liaosi, but after indoctrination 200 reported d obtained enough to water
110 moo. Pel~ing said in nuaneral code (Hard 2$} than in Liyang, Ihsing, Lishui,
Chintan, and Chiangning Hsien, southern Kiangsu, 190,000 moo of wheat had been
flooded. from. the sold rain of the past few weeks, Most of the wheat was ttaxning
yellvv~, while rape, horsebean, and-other crops had been affectede
Hangchc~ announced (I~lar a 21~} that the Yuhang~ Chekiang, Party , Com~aittee had called
a meeting in an attempt to c~verco~ne the difficulties faced by ?~he middle class farmers
a~ allow them to proceed with production. Middle class farmers. had made loans of
19,00 cattier of grain, 55 plow oxen.,.. .and large quantities cif rice seedlings. to 200
poor farmax~s, wlza now were vxiable to pay back~the Toans. Han~cha~ said (Mar. 2~}
that the Chekiang V~omenfs Democratic League had called upon woxr~en in the rural areas
to 'overcome their reluctance in prama?ting spring farm.px?oductian" and participate in
mutual.-ai.d teams. Hangchcrt~ added {Mar. ~t3) that the Pa~?t~r Cou~ttee in the Ynhsien
Special District. had called an indoctrination meeting for cadges, as they had baen
lax in promoting spring farming, .with, l0-20 percent o~ the land atilt not beipg
worked,
Yangchow reported (Mart 29) that in Ssuyang Hsien, northern Yangsu, cadres had been.
ordered.?to "overcome their shortcomings' and get produ.etion under-way.. Instead of
attempting to fulfill their quota of loS million. cattier of grain, they called the
quota useless and made no attempt to support it; Foochc~v statee~ (M~`r?. 2$} that a
meeting had. been called in the Chinchiang Special District, Pokier., ~[ar. 7 to "rectify
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the neglect" in leading spring cultivation. In Lungchi Hsien the Drought Prevention
Corrc~smmittee called attention to the fact that rice seedlings were rotting in five
hsien because of a lack of care. Nanchang reported (Mar. 25) that in Wuchiang Hsiang,
Chu 4, Loping Hsieri~ Kiangsi, ~ar'res had to indoctrinate the peasants in the benefits
~of providing irrigation systems before they overcazme their reluctance and began
corkst~?uction. Nanchang added (Mar. 26) that ix~ Chinkan Hsien cadres had to urge
farmers to land 400,000 yuan and ~+5 piculs of rice so many of the peasants could
start their spring farming, Farmers were "reluctant to land grain for fear of being
accused of being rich fanners ."
Wuhan declared (Mar, 30) that in Hupeh Province the cadres must ?'overcome their
attitude that fa~a~ production needs no guidance 9" and take the lead in organizing
mutual ofd tesms9 encouraging patriotic productiang "exterminating rumors, and break-
ing down ideological deviations," The Hupeh Government had isscted a directive
calling upon all local Governments and cadres to become more active in order to
prevent famine. Chungking reported (Mar. 21,,) that in I,u Hsien9 Szechwan, cadres-had
organized antidrou,ght teams "after overcoming rightist leanings among the peasants."
Chungking said (Mar. 29) that in the tNanhsien Spacial District; Szechwan, peasants
were planting early maturing cropsa such as beans and pumpkins,-but that recant
rains had caused early spring crops ?'which had showed signs of withering9" to turn
green again.
~r ~~ization and Man?,,~ement. Mukden announced (Mar, 25) that the Northeast China
PtopleP~ Gr~vernment had named Lin Fang, vice chairman of that Government; and Ku Cho-
hsin~ Minister of Finance, as chairman an deputy chairman9 respectively9 of the.
newly created Northeast Committee for Control of Government ~a~terprises. The Committee
issued registration forms to all Government enterprises and instructed workers to make
raportd. Shanghai announced (Mar. 2b) that in East China the new committees for
unif ied management of publicly owned economic enterprises would start to function
:Apr. 19 and would complete the takeover by Apr. 30. Peking said in numeral code
(Herb 27) that $'in a certain oil refinery in the Northeastf' it had been discovered
that, r~ueh of the profits had been lost through corruption and inefficient ttele of
equipment. As a result managerial. expenses would be cut 21.1 percentq basic construc-
tion 50 percent9 and the budget would be increased 17 billion Yuan. Distilling machinery
had bean improved ^~ i.t would produce 34 percent-above "the standard as established
by-the Americans9P' and the monthly oil production would be doubled.
Shanghai announced (Mar, 25) that natal trades firms of Nanki, includi t, ?
Hsintechuen9 Liangte9 and G~uchiexi4isin Iron Foundries were bye ~~t ~"~
-from State companies. Shanghai said (Mar. 29)-that workers~,in the Hungta~,Paper Mills
had accused the management of dela~ring production in order to make greater prof its.
Peking reported in numeral code (Mar. 27) that the Mukden office of the China Textile
Company held consultations with factory workers and managers before letting-out
processing contracts to private fir~rus, and as a result reduced the quantity of cotton
yarn and dyestuffs. Scar, stated (Mar. 2l~) that Government trading companies in Lanchow
vu'ere placing orders with 1?cal businessmen "which will solve the livelihood of more
than 10,000 workers and supply the needs of more than 20000 dependents." The China
Grain Company employed 1p079 carters to transport grain processed by 662 flour mills
-and 3,000 noodle makers9 the China Farm Implement Company made advances to 53
implement firms on processing ordersa and tkae China Native Products Company hired 200
women workers.
Chun~ki`i?~g s.rinciunced (M~?.2 '~~t Fan Tdi""~;~'"csident~ :tae China Depart"e~,~""~.
Store9 had called a meeting of private firms to discuss the granting of processing
contracts. Fan declared that his company actually did not need to give contracts
to private firms, but eras doing so "in order to revive private business." The
Chungking Burer~.u of Trade told the firrt~s that "in giving them contracts in spite of
their known cr~rruption, the Government has fully proved 'ts solicitude fox? private
business~aen.+'a Kunming stated (Mara 2q) that the Yunnan office of the China Food.
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Company had issued contracts to 21 firms "in. can.su].tation with workers in order to assure
honest f~l.fillment of the contracts o"
Yan.gchow announced (Mara 2~+) that four Government administrative and transport offices had
issued a joint directive to local Governments to organize workers in the Huang Ha flood
area and the tidelands to prepare far spring floods, The local ~vernments were advised
to "arrange insurance for the life and property of the workers whenever possible,"
Chu~agk~ing complained (Marv 27} that authorities in the Nanchang Hsieh area of northern
Szechwan had shown incompetent leadership" in the reservoir construction px?ogramd
Hesex?yairs were improperly located, and there had been a great deal of cheating in:
labor and materialo
Nanchang announced (Marv 28) that the Nanchang Special I2istrict Administration, ar~d Party
Comar~ittee, had issued. emergency directives to local Governments to organize teams at once
to combat t'7Lood conditions along t13e Kmn River system9 where the dikes already were in
dangero Nanchang added (Mara ~?) that the Nanchang Special District Administration had
issl~ed another emergency directive ordering cadres to .protect
heavy rains as ma grain supplies against the
a ny warehouses were in need oi' repairo Hsieh. Governments were ordered to
organize teams to purchase and bag all loose graino
WAF3 PRf~3T but
N& i~opagandae Peking4a home service broadcasts said (Marv 29} that-the 3nter~-
national Association of Democratic Lawyers had completed its investigation of American
bacteriological wa~ri'are in Northeast China, and the Chinese and foreign press group
investigating the matter had issued a statement, ,American planes in 71