COMMUNIST PARTY CONTINUES TO PURGE OFFICIALS GUILTY OF CORRUPTION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600370599-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: September 26, 2011
• Sequence Number: 599
• Publication Date: January 25, 1951
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/27: CIA-RDP80-00809A000600370599-7
1
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CO NO.
COUNTRY China
SUBJECT Sociological - Corruption in office
HOW
PUBLISHED
WHERE
CLASSIFICATION CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY REPORTI
PUBLISHED Peiping; Mukden; Hankow
DATE
PUBLISHED 24 - 31 Oct 1950
LANGUAGE Chinese
TM IS DOCUMENT CONTAINS INFORMATION APIECTI NO THE NATIONAL PRISMS It
OP THE UNITED STAIRS WITHIN THE MEANING OF ESPIONAGE OCT 90
Y. S. C.. 1 1 A"111.11 AMENDED. ITS TRANSNISIION O P T NR REVELATION
OP ITS CONTENTS IN ANT MANNER TO AN UNAUTNOOIORU PERSON IS PRO'
MISITOD By LAW. REPRODUCTION or THIS FORK is PRONINIIAD.
DATE OF
INFORMATION 1950
DATE DIST..s'Jan 1951
NO. OF PAGES 3
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
COMMUNIST PARTY CONTINUES TO PURGE
OFFICIALS GUILTY OF CORRUPTION
Communist officials, despite discipline, are found wasting re-
sources and embezzling public funds to an alarming degree. Mer-
chants are engaging in illicit traffic under the Communist regime.
OFFICIAL EXPELLED FROM PARTY -- Peiping, Jen-min Jih-pao, 24 Oct 50
Chou Shu-fan (1) fniumbers refer to appended characterj magistrate of 71n-
k'ou Hsien in Sungkiang, has been found guilty of corruption, disregarding
policies, and neglecting party work. He has been expelled from the party and
is up for trial in the courts. Chou, a native of Hopei, is 35 years old, and
joined the party in 1938. He misappropriated public property and funds amount-
ing to more than 31,400,000 Northeast yuan. He set up a private storehouse
worth 41,900,000 yuan. All this was done by falsifying accounts and by collu-
sion with cadres. He also accepted bribes.
Chou used the cadres through personal attachment rather than according to.
regulations, thus causing complaints and hindering party work. A cadre named
Hsieh gave Chou gifts and was rewarded with a job as granary chief. Hsieh
falsified his accounts and, when he was discovered, Chou protected him. When
other cadres complained, Chou said, "This is a matter for the higher officials
and no concern of yours."
A people'. mass meeting was called for Lin-k'ou Hsien, at which the magi-
strate was expected to report.. Chou sent someone else to report for him.
In May insect pests appeared on the state farm, but Chou paid no heed and
nearly 300 mou of soybeans were lost. He used his office to annoy women com-
rades and be..n t.. live with Ma Ya-chun, a department store employee who had
been dismissed for dishonesty. When questioned by superiors, Chou was defiant
and tried to hid his misdeeds.
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CONFIDENTIAL
FARM OFFICIALS GUILTY OF WASTE -- Mukden, Tung-pei Jih-pao, 31 Oct 50
Yang K'un (2) former manager of the Pan-shan Farm, and his wife, sun Lan (3),
Yang K'un and his wife Sun Lan are both Communist Party members and have
taken part in war work. During their year and a half at the farm, they lost their
comforts to the great detriment of the farm enterprise. For instance, through
poor irrigation, 1,500 hsiang fne hsiang is roughly equivalent to seven mou
During their term of office, Yang and Sun spent their energies in commercial
activity, speculation, and smuggling. In April 1949, they marketed 2,130,000
catties of grain from the farm, using as an outlet the Farm Promotion House in
Ying-k'ou, which was managed by Sun Pao-hsing, Yang's brother-in-law, with Yu
Sheng-yu as assistant. They gathered around them some 20 dishonest traders,
mostly their fellow townsmen and friends. There were similar outlets in other
large cities, who'by using the farm's,, name played the market ahd7.sgluggled.
In 1949, the Farm Promotion House sold 265,000 catties of ammonium sulfate which
was to have been loaned to the farmers. By exporting it and by deceiving the
customs, they made a profit of 1,300,000,000 yuan on the transaction.
The Farm Promotion House was discovered to be 800 million year in arrears
in taxes last year, to which was added a penalty of 1+00 million. Last year, the
province invested more than 10 million catties of grain in the farm; but after
the fall harvest, Yang and Sun sold the crop for cash and gave the Farm Promotion
House 22,300,000,000 yuan to buy gra._n in North Manchuria (where it was cheaper)
to use as payment to the province.
Yang and Sun embezzled an amazing amount of the national wealth, more than
100 million yuan. When an investigation was started in February of this year,
Yang and Sun concealed their misdeeds and fooled their superiors. But evidence
mounted against them, and on 13 July they and their confederates were sent to
the People's Court for trial.
RELIEF OFFICIAL PUNISHED FOR DEFALCATION -- Hankow, Ch'ang-chiang Jiii-pao, 24 Oct 50
Huang Ting-ch'uan (4), head of a relief group to help the unemployed in
Wuhan, who misappropriated relief grain and absconded, has been sentenced. Huang
was formerly unemployed, but later became head of a band of KMT guerrillas. He
then got into relief work as a minor official. He sold the grain with which he
was entrusted, and ran away to Huang-p'o. Caught and brought to Hankow, he
pleaded guilty and was remanded for punishment.
THREE PUNISHED FOR ILLEGAL TRAFFIC IN GOLD -- Peiping, Kuang-wing Jih-pao,
25 Oct 50
Three men guilty of dealing in gold have been sentenced by the local courts.
One of these, Ts'ao Sung-t'ing (5), was manager of the Lao Feng Hsiang gold shop
until it was closed in August 1949. Then, posing as a cloth merchant, he secretly
carried on traffic in gold with Chang Yu-feng (6), and Tu Chin-sheng (7). In
July, Chang and Tu,-the salesmen, brought 31,880,000 yuan from Shanghai and sought
out Ts 'so to buy more gold to be sold in Hong Kong and Shanhai. Police intercepted
the three and brought them to court.
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They were found guilty of acting contrary'to the people's interest and
violating the national law against traffic in gold. Ts'ao was sentenced to
2 year's imprisonment and fined 15 miiiian yuan; Chang got a year and 6 months;
Tu was given one.year. The gold and cash iit the ceae were all confiscated.
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