POLITICAL AND ECONOMIC INFORMATION: CONDITIONS IN CANTON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R000600350008-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 15, 2016
• Document Release Date: March 19, 2003
• Sequence Number: 8
• Content Type: IR

WX--T Approved For Release 2003/08/05 rMT7tMjN01
This' document contains information
affecting the national defense of to
United States within the meaning
of the `'srpionage fit, 50, CONFIDENT A(
U2S.C. 31 and 32, as amended.
.L-c,ai ersaurWrNamssuU vmr siaaa
revelation of its W- ITRAL INTELLIGENCE GROUP
contents in any manner
to an unauthorized person INTELLIGENCE REPORT
is prohibited by law.
COUNTRY Chia
SUBJECT Political and onn atc I a.:or i ion: Conditions
-7klGif
25X1 DISTRIBUTION
in Canton
Document No.
NO CHANGE in Class.
Q
Class. CHANGED TO: TS S
x
NAY?
JUST CE
DATE
INFO.
25X1A2G
25X1A6A
DST. X ley 1947
PAGES 1
SUPPLEMENT
25X1
1. A recorrsendation that Canton become a special municipality has been passed by the
Ce, atral k; ecutive Coi, ittee and the National Defense Council and should become
ecti immediately. Under a special ma. -nicir lAty, Canton's mayor will have
wa
more direct power and. will have fewer levels of government to con.atend ex ..th in
transacting husineso.
2., As a special municipality, Canton will. collect its own business and land taxes,
3.
e
e
C)vW
Sh reen property, owned by the British and French, as well as on other city pr)perty'`
it was thirteen billion /CNC V. The mayor has be d ~y* , ` cutivee Ia acr. as
chairman of a committee to verify ownership of Shameen. property, which was turned
China e Gove , ent at the end of the war. Taxes will ba levied on
t th
'
retaining 75% and turning over 25% to the Centr"a. Government. But as an orduiary
city, it retains only 5C% of these tax es, while 3(y% is turned over to the Central
Government, and 20% goes to the province.
u aZLci .l. venue comes pair r:L y from nausea nt taxes (theaters, dancing, etc ?),,
and while no new taxes have been levied, improved collecting methods have greatly
Ln r ascd the m e pal into=w.. Other taxes include those on restaurants and
cafes, business taxes on profits, and land and building tars. When the mayor
assumed office last July, the city's income was two bLAI a month; by December
40
Caton, though appearing prosperous, is in a period of depression resulting from,
limitations on imports and exports. Trade has recovered to only 4 of the prewar,
level. Smuggling;,, including imports of cloth, gasoline., kerosene, canned goods,
and other foreign goods, and exports of rice, firewood, wolfram, silk, etc.,
accounts for less than 50% of the present trade. The British are cooperating
to reduce smugg1iing, but the extent of the small rivers and the size of the border
employees? receive better pay than private shhool teachers.
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CLASS 9CAT ION
Approved For Release 2003/08/05 0457 10600350008 3
rdoNFIDEN IAA
make Up to 3,000 LONG a day; carpenters, about 8,C to },, a clay. Firs
quality rice is about $93,000 a picul. The a ost of living in Canton has risen
about 6,O0since 1936, as compared with an BOOT, to 90CO),%aincrease in Shanghai.
7? Before the war, 100 grammar and eight high schools were operating in Canton.. but
halt of these were closed during the occupation, There are now 74 grammar and
three high schools open, but these are; far from eenoreh for Canton0s present popu-
lation. There is a great"need for improvement in public education. Municipal
school teachers, whose income is comparable to that of municipal and provincial
a
cozaatt
fessional categories,, private industry follows government rates in general. Coolies
t
6,, There are about 50,000 industrial wor -!? in Canton now. Government wages for
borers are crass than private wageaa for the laborers, but i pro.-
l
it almost impossible to stamp out. The Central Government is sending addi.-
tional troops to suppress smuggling.
The population of Canton., which was 1,200,000 last August, has grown to 1,,300,9000
at this time, largely a result of refugees returning to the city. About 100,000
persons live on samna.