INDICATIONS OF PSYCHOLOGICAL VULNERABILITIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000500740026-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 23
• Document Creation Date: December 15, 2016
• Document Release Date: September 14, 2000
• Sequence Number: 26
• Publication Date: February 14, 1952
• Content Type: REPORT

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CLASSIFICATION CONFIDENTIAL SECURITY !1TrC Q,%'IION
CENTRAL INTELLIGENCE AGENCY REPORT NO.
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY COt.MU2iIST CHINA
SUBJECT INDICATIONS OF PSYCHOLOGICAL WTUTM-ABILITIES
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
DATE OF
INFORMATION ].u nn. i? 2
BUttETIN
1"1100 CUNXNT CONTAINS INFO A NATION AFFICTIIM TBE NATIONAL D{F1lll
or TN1 UNITED 1TAT1l AIT111 THE NIANINI OP 1IPIOIA11 ACT 10
V. , C. 11 AND 11. Al ANINDEU. ITI TRANSMISSION ON THE RIVELA71 ON
Of 113 CONTENT{ IN ANY 1A11111 TO AN UNAUTHORIEID P11101 I1 PRO?
n111T1D IT LAM. A&PRODIICTION ON THIS FORM 11 PNON111TiD.
ebr,unry 1952
QUv
SUPPLEMENT TO
REPORT NO.
CP~" Report No. c - Communi St
(10-2:: .Tan, 1952)
CONTEIrI'S
Ar1TIi!AS'IT, . ~]d 'ICQRRUPT ICN. A14TIHIM. ,1,11,,1PAC" ..... .
IDEOLOGICAL !:D.TUSTF.tiNh". ........................ , . 1.
RURAL REFOR.E ................ ...................... i,
COUNTERREITOL.,UTIONARIFS ... ............ . ............. 2
NATIONAL MINORITIES ...............................
ZEF ERENTIAL `IRTAAThCNI .............................. 22
MISCELLANEOUS ...... ................................ 2?
SiS ARY
During the period 10-20 January 1952 the Chinese Communist radio pro-rams 1cased to the home
audience reflected a marked intensification of the drive to eliminate waste, corruption and
bureaucracy, with the original aim of increasing production seldom mentioned. The Pekin;
radio and virtually all regional stations broadcast daily reports of meet.in.Js called to
push the drive. Some of the meetings were local, on the city or chu level, *nile some were
province-wide., Most of them were called by Government units or Communist Party Co,mnittees.
Mary areas moved into what was spoken of as the second stage of the drive--the coniession-
and-accusation stage. People of all circles were admonished to first confess their own
shortcomings; then report waste, corruption, and bureaucracy in all offices and business
firms, At confessional meetings an old-fashioned revival atmosphere prevai.led, with
cadres and businessm lined up waiting to confess their wastefull and corrupt; practices.
At one meeting it was reported that a third of those present made confessions. All were
warned to confess if they wished leniency, and numerous cases of punishment when victims
refused to confess were listed. As refusal to confess seemed to be a worse affront than
the actual corrupt practice, there is a suspicion that many confessed simply to get free
of the subject under discussion. Many cases of graft, tax evasion and other corrupt
practices were broadcast, with names and figures. Some claims were made of successful
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ecOnCmme measures, alone with a li.mit?_?d number o_ admission of weak ess ailtcre.
Though tlrc antiw?]ste and anticorruption drive overshadowcdll all otncr
need far t.L::.'irgbL reform in 'Lac ~,Cii0OiS, churches and Lr.dcis::ial plan-.'s r@Cr?i.l'P(1 some
stress with the winter scnool pro;_:rarn for adults 'both pr'a', ed and :nforce-
ment of the marriage law, land Teform, and problems ' aci r r ,.:l i.'_r! rn ' d o tsider-
t to a
t.o landlords.
able . t.trntion, with reports of severe pin .itire r, inol-d o , , r
of eOu~,*erTevolutionary acts, and number of OtLr,terrt?'roll ~bnaries Arrer:'ed n -d r rsned,
snowed Only a slight increase, but several cases of surmar:' execut on ollcm. n.-. Cl p12bli.c
trial were broadcast. Claims of progress in -a ,. n i n _ coperat : o-. o
minorities were made, especiall- in gikan; , where t hl f .i_e'.ians w, r!? p .r d ai' a"ryOus
L:c-
to aid the Chinese hrrfitwnic',, invaded Tibet, and where [r.; r.or i,t,; rcu.p:. w---T-r- .7,a7 d to
ent.htt"iastic about delive....,, rrrair] to the ('overnmen-t and watch n T)ropri a::da dramas.
Steps to implement preferential treatmer`. far teat, depen(re rrt;e dui ,h spT r
festival were reported from all parts of China, but tie reie cri_t _e-_. rr, o la ' i*
preferential tr(aatmen' work camp from the LIa'irc-n rati o. t,Zpni"' _he '^tprr in r e w
1e r .as 1r r '1_ E : ca '..ir- c N.:,?
misce'llaneau't items were reports of su.;fferin;' and
of floods and the spread of the hoof and mouth (ii:?~as, ac:r' reports of `o1e. or '1d c.
between employers arid employees,
AP:Tr,'!r,,TE, ANTICORRUPTION,
TJevc:log?nt of Drive. Ghat started out as a dri' re to increase prod'u::t:o;-: o" e=.cror:omi'c
goods in China now has become a Plat ton-wide effort to wipe but wasi ^;l a ore p'.
pI'gc''.i"es in Government offices, i rdiusatrial plants, r:-tn 1 i sta 1 >:anr'r a ?(1 E (': 1
in tiie Part;, and its affiliates, tress first was p1ac.'d on tie o: waste.
7,el t.;ie
as one m thud of inc.reasina,. prodii ion. Chen, der 'e, of "waste and c r'p n; a
itm iedi,ttte goal, with an increase in product 'on seem . 1'' 0' 1; r ::.` (s _i . .ri: he
period 1O 20 .January the Ci'? nesi rTidlo made oral; re e mr=rior, i. n rvaso(i prod OTn
while the drive against graft; ~`orrt.ption, and _11e al 'Canniness .ect _t :?s' was ::?r, the
greatest attention. Government. and Part,- leaders att 2 };C'C! he pro rn Y!!'.., r T'?11'. sous
fervor which apparently spread to tiie lower-i_ v7 pOr . 'd I'Iby
, .=i.3'.LOn'. G'oderrmcnl ^rld art-
lthe dozen Ci Ci day Over the re torii:l broa(li.ast rl; 3
officza1:?`1c.onvened meetings of adre: on t.ri. m'un.iclpal, hs(en, and pro?r''.,.:'.al`
In addition, 'rallies of hrti;1nessmen, :industrial i ts workers, worru271S re p!i, ~d report. t :.em i 1r
author To make suci-i reporting easier, spec special -a - r were opened a ! ip.. - i a
r.olle ::.ion boxes installed.
Foo_h: re xted (16 Tan.) that the Fukien f'upervi. ior - Cam 1ttee had set, ':p an
office at :N . 11 Wanghai Road, Foocnow, to receive r'-ports~oi corruption; if ,.rifornters
did not wish to appear' in person, tney could send their ?repprt- TO Pose, '~ t ie e :'ax 105.
w1i.n Cormnitte?e paying the postage, As a further ind?_i.;ment, ormer., vv;ll given
a percentage of monies recovered by the Gover'nmmeri* i'rli1S an'n0!]nc d Ile, lan. I [ r',a
the South K1angau People I s J'.ipe:r visor`' C onii i. t.t;ee had apene an irii orTnr?rs 1 of f i::e - 1,
the 11=s1ihua Store, ChochariRoad. './utsin, where oral or 'wr-itten reports would ?:? received
each day fYost 8-110 3Ct a.m. and from l-5~ 30 P.M. __ n addi.t ibr,, informers' rot'e'" tad
been net i;p in Wutsir, at the doorway to the r: iri',ru ltot F.1 ; t the a' ! of park
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are by no means exempi. from the coTtunon pro;'ram.
,:',ian reported (19 Jflrt.) that Tanutlr,: re.eriTl; C?al1E:t? L, ";}c? :;lt'Ii::` ` Overtime?L,
cadres were c'..ar(-ed wi'Ln "suppressl:. demJC ra ^pt t " m ai 1 i !:8 C1
dis: our,iged informers, and mer an .s were ?:tiat Cd w re _s,,:'1 pro rtm!. rt s' cond
mee't': - or merchants was 1"!-:1.d fc1iOW I: ' da,' The" were War-led '. at. :dust Cban:-e
1..^.~ir a,tii!ude. ChLigkiri;_' repor-=?'. i i~ l1n1:1., i-ihT he ''-OlSllln S'1. ari, n
north S ech an had called a cadre Fe' in nei--ause of lax -i~I:r ' '!?
C'adr--s wer ordered to set up an ' lcl. or l .. s..-em of :inform _ rs or -an_.ze
inspection teams, and to 11 ins try ir- t 1.i":e m:as es in m+ak :1v.' ac,`':sn' ons :. .;8r' . :adres
now are c'her_king, on the loni1 'rtspc:-?-.i.o:! cO-arm' t o,s.
Cnif_:fhCAi announced (2C) .T all .1 l i'-* n'eP t :li o~ fn or',' an;`.- in - n,! '_ ur!r:: s ' inc! ece: 7a11ed
in '-'-s nun t_Si, n, Liaosi, [;r till .,= T r' ai : v . was ',lo! co n '1i- Z' 1 Pnd
he'n''nF Lnxit:1 was oovious Got.r. old n-i .n-Yl :?3eros.. . ri cni'lii.r ''r...i.t?S .)T'oadcest
(1Jan. ) ^,.oriplained that ? flo14h drive had L'ileri 1 Ide'.r w 1 . ' or ,
--ath- etill were lax. Dairen ;nnon~need , 16 u, i'POpl? s ;per J i Sor'"
Conttii '_r,_e of Dairen-Port Arthur' (called a m ct_It- 1:15 .Tame--! anticcn7''.tption drive.
:^:ccordinr* to Yangchow radio (20 Jan.), two dealers ',adl been arrested for tri.c.er: ,
frtojr], illegal profits, selling diluted g,asoli.n,e, and 1It.emn`i.,r cadres.
i11.e =:1 profits in the past 6 months caused 54 nccidents, and caused a zransportat.ion
to tole 10 million Yuan. Chen Fu-chen :, ^:tairtn$rh of tile hoard of Trade, told
Tt:=:rchartts at a meeting 18 January that the Government lad suffered ttu e losses in the
pr-c.cessi.T',.t of -rain because of corr. option in the North is i.a. su Branch, China rood
Corporation. !7u Pang-ling, Kwari? .';ei-shen; -t'.iu z,; and Pe..-:, .. made
c or. 'E S^'.O of t i-ei:r tax evasions, speculations, sr-2: '-j j o false mec. i c i nem, and o , Trier
o_rTupt acts, in the hopes of getting: leniency,
'= l::k nv (11. Jan.) said that the V.1ifnan People's C'ove.rnme i; !,ad d:ism`sled ;.ollonin
to>rci. sc of corrupt activities: Yang, Wen-ping, mane eri, `.Cuban i;lll i er Ccmpan, ; tisu
'Ten.-r.s:iarg mana:ge:r, Wuhan Department Store; Stan, Kai-IShiit, IIIa^.a;,or, Waterworks;
:ii.c- manager, Ciuhan Llectrical SLlppl Compau; ; Ho Lii,-mir1 -, tax ?ollector,
F ,_uaan Bureau; Lu Wen-hsiani ,. special officer, Vluhar. Public fa!'er. Pu.Ireau;
4ti
L.i. an -cnir,chief' of Id f;;ubs?tation, Public Cafetr F.ureau; 11o Chtrv:, of'
Safety Bureau; 1~`an chief of heaciq,uar-ters le al section,
uc11r. :'a! ?=t Bureau; IIo Frt- jen, captain of police, 4th Distr:L_. t, 3d and
severrl.l of _ Leers in the 8th Distric'. police station, lanitow reported (1 'an.)
that 3.E:i Tien-hsiang, official in a Government ccmrpan: i was accused of accept?in,. a
bribe of 1.5 million yuan. Liu Chum, former director of tin ,:u;ial, Civil :._fa.Lt?s Bureau
o,J.ndling :Lome, was exconnnunicated from the (,i:ITInumist art.:- and I-nd7ct.ed or mis-
namber of orphans, and
appropriat:aon of 400 million ;;uan, cat.ISirI. the death z r,
disaol'"iw- the workers union and dismissin:: 40 emplo? ees. . an stated (14 )an,)
that the 1'It.tharh Conununist Party, wi. ti; the approval of the ien t.ral and . ou t.h China
Pal sy office, had decided to expel '.ii Chi-Ictani;, former depu_It_ ma or, "because of his
degeneration." The same radio reported (19 'an.) t :hai, a p.Ibli.c trial had been held
t- fore 12,000 persons in Chttrlgshan Park for seven ' t:.n; businessmen," one of
whom "squcozed" 179 million Yuan as head of 'the ',lu.har_ h*npor:i t_ue, and another o'whom
Was guilty of erribezzlirrg 500 million Yuan as manager of a paper factor, , tlo sentences
we:r?e passed.
A Wuhan commentary (19 Jan.) told of the trial of corrupt Go' ernment officials,
including Chen Cheng-mo, Wu Yu-tien, and \t-ang; hwan-sung, and warned that `?-the
revolution is being seriously endangered by he corrapt:i.n,_ influence of cadres
wno s';ill have bourgeois thoughts." Peking reported in rauneral code (20 .Lan.)
that be rween 10-16 January, 1,742 cases of graft and lIax evasion were exposed in
?t.than, At. a meeting 17 January, nine persons admitted tax evasion, i-raft, and
unscrupulous production, including ;:to flen ;--fu, chairman, Preparatory- Cormnittee of
the l"u.han Federation of .Industrial and Conunerc:ial C'rcles, and manager of the Chien
Chang i rading Company.
Han. rehatr r. eparted (11 Jan.) that Chen Tien-lrwei, ac.ti.rer, chief of* the service section,
HangchoR Broadcasting Station, had been involved in corrupt a; reeirrents with private
merchants,. As a result, he had appropriated (10 million :-uan, received br i. -.;es from
the Yungchie Radio Company, and I-Iangchow and iltul ,; an,; companies in Shanghai., and had
misappropriated public funds. He refused to confess, Ilany;chow said (12 Jan.) that
Chen Yen-hsin, manager of the publicly operated 17tumin,7 Cloth Conrpan y, had been turned
over to the People's Court for "severe punishment," Ife stole and sold 10,0':' Yvan
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11 tth.=. ? G L+Yi
wor of 111vernment property, and also si-`elded landlorc'.s and counterrevolutionaries.
L'. Ju-^hen,.;, official in the Chiiihua Shop -'mpio: ees T_'nior:, em:>ezzied 1.9 million
-nnc,n in arns donations, misappropriated (90,000 ??uan of p-,ibli.c Bands, 4.2'5 ounces
of ol.d, and 10 silver dollars,, liar,-chow said (13 an. ! that the llir: --'en;. Paper
Far or: had been found -uilt_.- of withholdin,-. `5 percent. o e sist-..^er"ire, ;d-
:;urea arms donations. An a;_reement bad been made wi'i) workers t;r.at t1,P mone-
tiouid 'oe vred to develop production. However, ',he commnr: Croke the a,;reement,
The Ckeki 8.n^ branch, China Cotton, Yarn and Clod.':, C,-,tnan. , paid the -tan,
Construct ion Compare 240 million uan to build i.wo fac tor `,mss .n ;I;,,ao and I1si aoshan
ctsi.-n, Ccn tructian of the factories was delayed 2 :goutl"is, and i was discovered
'.>> the money had been used secretly to build a fac:t-or: for another firm. .''tan chow
1'1:1r~,tnced (16 Jar.?) that Chen Te-min;_, Foodstuff Bureau worker, t:Ad beer: d_sm.issed
`f_*'crt, ousted from the Party, and arrested on char :&n of corrupt toll.
i_ t?roadcast (19 ....) that 14,000 cases of corrt:p~ion arnor:;, local merchants
we:r-_ ?ir:L checked, and repeated newspaper complaints t_lat merchants were not
caon:ratii in the drive. Sian announced (10 ,Ton.) t'aa- the corrupt practices of
Marc :ir 1,000 firma in the cit had been exposed, and another broadcast (14 -'an.)
,,n r:? '.Pir c !ise of corruption amour- local offi:cl.al.s tic I ,j, an reported (15 Tan.)
that in i i :nshui. Government or gans had been acc!ised of se.Tlin;, lovernment; ;-asoline
for h;:r'sonc l profit.
Cl-:,a, h.i:I. t,.Iu,ounced (12 Jan.) that 373 cases of c:orr,apt'on had 'Teen exposed at, a
PIE-".in,' J:''n'uar,' of representatives from 25 trades in ::..rile ai. a s-hmilar
RK'c' 1 n' in 1.1,_:-r ':.hiIni.` Hsien, izenhwan, many cases of i:ax `rand and 7Me-a1 rl='i:ateS
wet ravealc d . T'r,e r'ad'io reported (14 Jan.) that re-i . ,ran, C' il:lr. Chi , ;'stun rrsi.n,
tier.;` and Ta Lai, local -,ontractors, had charted excessive prices, cu` materials,
and cneatcd in us.1,or in fulfillin:J Goverruneni; cont,ra~'is. ikin;: sa'd (la_,
r (Yu Ilan-chirpy) of the 7atun: Cloth l'acor- hoc' misappropriated more
ru=in 4/. t,i:].lion Yuan in union funds. The Chin compact also was of n115i.r'rr~.'tin), workers by delaynr- payment of wa'es and f'orcili purchase of ?'actor;
shares. Tl-Be manaCer of the Tukin`: Pharmac;.?, Clien;,tu, connived with old ern l.o; gees
of i l- ' People ' s Bank in Ce t t,:iny loans on empty drub- ,orri.a i ners in order to obtain
Curds for speculation. Cntin;- Merl-pin:;, native products dealer, connived eii t h but: ers
to profit, hems fraudulent merchandise? Chunykinf.- shop clerk:; reported 3,390
sus arl?:es of corruption, despite threats made a'ainst some of ;._,e clerks; and in
lean llisi,_?r- shop clerks exposed 303 cases. However, 'man" of ti~em still are
Ie'udaiistr:. in their thinkinjf and have not (Laken the movement ser'iously,"
C"n L.,_.kin reported (17 Jan.) that the Yi.tai and Chincili Oil Companies had been
!is'r ,nldilutini; Gasoline; Yani' Chien-tu, mana,::er of the ? "in,;li. Steamship ar:d
Tr-anspara.ion Comnhny, ewbenzled Governnieni. propert;-, 100 tons of d .esel
oil 7_,d Co,,- tires; :sus Yunt;-kuar., owner of the Karlf,c1-1a:,;;fu (.arpentr, (fl",op,
coil i. nat?:,i wtt:u: tax officials in evadint; 12 million ,-uar, in taxes; the "icilan
Dried VeC,etaule Store sent laCkeyS into the China flai.ive erode,: is Compan:' to
co1.1 first-(sand information, then indul_,ed in speculation to create market
di i.a:L,n s and caused the State concern to lose 100 million ;.pan. ::orce ille!-al
dealler_ hl:+u tempted Government worker's wit", women; used all sorts of means to
tempt tax collectors; and stole Goverranent property.. Chu..tn;:kinf said (19 Jan.)
that Li Citr?nf;-fen of the Chungking branch, China General Merchandise Col;rpan:-, refused
to :.oniess to his corrupt acts until he was exposed by his clerks. A facet of the
conies:nious of frmttd is indicated in the statement that 1,700 Chun;kin? merchants
sent in letters of confession "in fear of ultimate exposure L;: their clerks."
Kinunirug announced (18 Jan.) that the Yunnan Department of industries published
16 i uruarZi a second list of 22 "corrupt elements," 20 of whom were exempt from
puns. our rct because of confessions, Between 11-15 January, 178 cases of corruption
were revealed, most of -them conspiracies between merchants and cadres, involvi.n,
100 million Yuan misappropriated and 300 million :,u-an in waste. The most, serious
case appears to have been that of Kao Chant-wu of the Kurt. in._- Public ecuri t . Bureau,
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.~ J .w s ..
C1 IPEfl I.I~L
~4 January to have extorted several hundred million ;-uan from
who was discovered I
opi,t*h,nrtglers in return for protection, and of having "sold the secrets of national
atf ai:rs to reactionary elements." hunmin; reported (19 Jan,) that Vice Lana, ers
flan ',, ',C?lien-.^!r+zng an Chang Chung-fan of the ` unnan Department of Finance prh tin;;
plan, and Operations ,,Chief Lo Chin":-teh, were indicted lS Januar: for corrup acts and
refusal to confess, Shang Li-ming, corrupt element in the Kuraain Hsieh :7overnment,
re!'us~d to make a cession and was charged L;- tThe People's Court with stealing and
selling Government property. A cadre rail;,- decided to "punish, several;;-" 1...1 i;uei.-pin,
Chu .Ten_.,-hieh. and , !Pei-yuan for misappropriatin - public funds, visi ti n- prosti cu-
tion ho'"ses, shield g special agents, and obstrucing closure of opium houses, The
radio reported (20 7en.) that a Public Safet;- cadre had sold 340,000 1 ,an worth of
Go"'c'rnment gasolineand that a postal employee had taken (,0,000 Yuan worth of
Govt rnme:rt property Li Yu-shah, chief of the transport section, Yunnan Food Company,
w, paid 150,000 ;,u:~n and two skits of clothrs by merchant Chang Pao-tien in
c c tang- for favors Ir As Chang's hold on Li grew stronger, he even obtained compact;
fundsf 07 `p culati n,
iut~'.^1=n reported 1.1$ Jan.) that Han Chung-'c:hu, ?janit.or at. the Loshan Technical
ool. :.-:old ?0,009 Yuan worth of school property, Another employee, '',:uo I:o-t,i.n:;,
stole r0G,1~10 yuan. When Chen An-hsin, Public Ca1'et;chief, finall; confessed to
r-.::e ivin;; bribes an~ handed them over, other safety officers f'ollowed this lead and
ga, = "P 2;3 wrist watches, 22 fountain pens. 2 water straps, `0 bottles of redi-:Ine,
and a radio, all received as bribes.
Lax:7 Writ.-. and ~Xtravaganre. !iltl,ough not as common as wi.lfull corruption,
ltw' cuc -3'?'s of a av'aganCe, laxit;;, and waste resulting from DureauCra'._C
rrtet rd:; wer_ report d' by the radios, Dairen announced (16 la-n.) that ,'?heh',
neara~:,er ,t t'ne Dair n Chemical Works, and his : h'e:' secretar." . Yen Ch en and
M after in the Dair n' Textile brill, the Dairen .steel Mill, and the 21sT. Plan!, of the
Prirrting i,axesu, ha been charged with laxity and lack of Interest in the antivaste
carpsll;;r_. Tslnan s d (13 Jan.) that, the hantur,;; Department of Construction had
bet-n: lax in carrying out the campaign, did not investi[;at.e rases reported to it,
and :did not: call co ession-'and-?acr_usation meetings.
Harr,'' ; reported (' Jan.) that Yan_* Mine--., i, deputy chairman of the Textile
lisso'cia`.ior., Ningpo'office, did nothing to push the hao chien--hsi,.u -technique even
after at ty-=dini a c erence in Tsin;;tao to learn about it, and caused man:, Workmen
even: to do'it't, the e stence of such a techniq_re. tY ban (14 Jan.) quoted from a
CiihtP. YOUI'ii DAILY a itorial which asserted that although the drive was making progress,
mart;! Yc.urth Carps cadres, especially those in educ:at-ion, had been lax. Some soups
had 1# f The matter in the -talking stage and had done nothing; to promote confessions
aridar:rosafions. Scene cadres were guilt;- of ,-rave errors in thinking, and favoritism
was rc>nanorr ir_ some offices. The editorial warned that more positive steps must be
take'rr, "or the YoutCorps would lose its reason for existing." Chun;,kin;_- announced
(17 .Jan.) that in north Szechwan the Conan,.inist Party Propaganda Department had
retr iir_:d _10,500 cdres since July under a rotation system "to correct thoughts of
cururlaceney prevailing among village cadres."
Tsirian reported (1' Jan.) that in the Taisi Special D istri.ct, Shantung, where 350
persons were -,a-rested on corruption charges involving 90 million ,Aran, five public
off i.c?s wasted 625,939,000 Yuan in 10 months of 1951. Factories in the Fast China
Dc_pai t.mrent of .Industries, Shantung branch, Hopei area, wasted 42,426,000, or 21 per.-
Lent: of -Liareir capital. Tsinan announced (12 Jan.) that cadres of the Tsin;,tao
Trading Carpariy had charged the company with wasting 2.5 billion ;;uan. Tai;,'uan
reported (18 Jan.) that Party cadres of Government mininug companies met 12 January
and charged the c ponies with wasting 15 billion ylran, Kaifeng reported (10 Jan.)
that the Chengehc People's Bank held an antiwaste exhibition, where it was admitted
that the bank wasted 700 million Yvan on additions to its buildings, and 180,000
on printed pamrphle'ts prepared before a visit of the auditing coimnittee.
CONFIDENT IAL
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IIO'.' _: t,.3'. d (lb ,l an .?) that the cit;," i':ErI]ine :ht had "all C} a 'o d'sc:.:SS the
el' n :fl 10.1 of red tape after 5' was demons ra ed a,. SC:.It: of es :eed1e si ?field
;?p d , ~c r.. s and handled thtem csrelessl:' . 7.: on 1 of U: l had
been written as 100. ;;ha l .hai repor-ed (1' lax c cale waste
had tc.r ,:,r-o%rTed on construction projects, In Fukien Pro Lice u00,000 uan were wasted
on one project. rnochow admitted (10 ?an.) that the Chan ;10 : si en Food Pureau wasted
two he ro;,.,sS'i.', ' pia .` s c;. 11 r: no' be ?sed
Mon cr. 1?E F] albs and warei.ouses . p -
be'-'se i''e conve,, or machiner;, was ?.mproperl?, iris" alled , a::r! a 2-m: -1 i o:1 ca ' ;
'Fare- ",had to he abandoned because of its poor 1oca,' or., occac r ar:r.o,l::ctrl (13 fan,)
i' nrtiai 0, o!' i?e na Transporta-
7: , u;> T Jng sun} , actin c- chairman o_ the oo
or.pan:
? o! r'::ior, and Chun;; Chun-mini;, manager o T-tie ooc ovr ranspcr .a on
l ad 1.)-ern -removed from office for wasteful and curea.icra' < prat es, and .::at appro-
plinarY measures would be considered t Car'.,
7,t''h reported (11 Jan.) that the South China Cul, -ral '.al 'on had ras'.ed 1,
1, ! 1 L i on arl, with the cadres themselves the Chie _ r_:lpr t s . :ar: sa .d i..n. )
A i Ciina ('rain Compan;', Honan hra:ric'::, bad teen c, a ed r; th wasti C3 .3E
i 1.i on :a.n in 1951, and that the :ionan Irad i n dorrrpc more- ~rom relatives
to L-,,;' ;?if' Luhsien~ announced (18 .Tan.) ti,at, 51-3 !` 1i t iamen in Cetchian~? 1islen,
South St.eci:wan, had been assembled for special edireat.torl 'ti-cause of and
eompl;,ceac; following bumper harvests.
-ax v- s-ions. Peking e_ported in numeral code (i' T-ic.) that at a L ukden federation
of Labor Trrt ting 16 January, with l.t 0 present. 7't _'aSes of tax evasion and br ber,;?
e'ree exposed, and Chat. an Chan;- fat announced that 0':9 snrf. cases had teen reported
in private firms since the drive started last ear -r?ter ''_ n "'en-j:i that at
the Cheng;fa Tron Vlorks the workers refused a proffered r'a e Increase ];ecause the
proprietor was attempting to account for 2 million -_Ian 1 !.ad ' alsel; reported as
labor expens--es. As a esul.t of their refusal to accept the none,.' i t. had to %;e -'.1.Lrned
over to thrr Government. Manager Hsu Chan-hna of the Tali i:ubber td'11 stole materials,
evaded irix?'s, and bribed cadres. The proprietor of the i:en_ 111iil was accused
of tax r-vi -ions, tribels, and thefts totali n: 100 million : i-an .
Tsiutm r~-?pcxr?t.ed (19 Jan.) 1,Yiat in December 421 cast--.^; of tax evasion and corruption
rr it x o Id in Meifati~;, and 1'72 in Flsuchow, man 1 enro irtced (1int..) that f n,_-
.aril-pir~ , e:a!"?ager of the F'fuamiri rriritirt+, Cocrpar,,, , 'o`if e sserl to -Lax evasions,
2iafh i. rported (15 Jan.) that Lt Wen-tel:, owner of ftcc hi-n,, Jlo'!h ::M, was
guilty of ,v-iding taxers amounting to several tens of million.- of ::east., '.oardlr.,,
_:,t t-r., - ?ifig comlpany funds for spe_ulat.ion., den To:: ,.n The evidence. tr;;'irg r.o
escape- ;--nd epreadi mot's that the Te.x Bur-eau was t.r1rir,r 1.o kill him. . citisi
report d (jO Jan,.) ti.]~t 800 attended the public trial of Di ?nao-:;L:, miner of the
Stop. 1du9weI f3sien, Ttiangsu or, tirades of tax evasions. ianr,Chow
?epor'!ed (.i0 )an,) that 1(u Kwang-sh-ih and Ilan 1isiao?-lo, operators o the ?til Sen Tobacco
S11op, wn:'r a ttentenced to 10 and 5 yea.r-s, r aspe< lively , a t. a public 'trial 22 f ecenlier.
:ttt..ndr-?d 'h,, 400. The cheated the Government out of 14 million i-uan.
CaIi':ir: ar!e:rl-Ql?_:'_'d (19 Jar!.) that in Tiaikang Hsieh, T;wantumf, u 3 j stores of 2C, trades
admit-t:d tax evasions totaling 2 billion yuan, i(urrrnin;_ reported (19 Jan.) that
Tang Sna?-ho x-d lie KirQ in~y proprietors of the 'T&chiri yan;_ shop, had beer, arrested
and eteir?ged with misuieating clerks Pang Cheng-kilo and Chem i-ic> when the? reported
the mercnani:s' tax evasions,. Tsiriar: quoted Fox, Chi.h-chan,y, IisucuOv Tax ::'.Lreflu director,
as telling a business meat's meeting that his ofifice handled 2,000 cases or' 'i:ax
evasion in 10 munt:i"i8 of 1951. At the m:etirig 4) Mt:_ TI to evasions, and the
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and Failures. Pok"i:n' arlnol need !I_ ntuneral code (2CI Jan.) that the
p1n.n f'or GI1Si'r nznc-nt of car;oes to railways broke down, so that z the first 3 days
of .T'!?1n"'rv L!-C sCi:edule quota was fulfilled on].:," 83,pr?rreni i1an c'hovl reported
(10 T-"cn.,) that workers at the Chiahsini- Textile i_ l.ls re:"used to make inventories on the
,.row-ri- i was unnecessary. A check slowed `5 million roan tied up in dead stock,
w7111, orrn, 1i needles in the warehouse to last ;ears and other items to last. 10. ^uhan
anno'7T7"nd (16 Jan.) that 5.5'7 million cat?tics c,' rood stored 'n six warelhoi ses of the
Foodstuff Company, Kwangsi, deteriorated been.-is.' of heat, -norms and fermentation,
oar t11 because of the poor conditions of the rare' o.jses and partly because of the
irenpon:-,ibility of the cadres. Hofei reported (13 inn.) ti":at the China '-oodstuffs
Company and the Public Safety office in llsuan-:.hen- Iisien, Lnhwei,llost 20,000
ca?times of Tice because they "blindly trus*=-d" a private foodstuffs compan- ?_a11ed Tien
ru to uy and process rice. The company was -iver. 1,'.2 1.):l ton y'aan to t.,",.. 790,000
catties of race, but much of the money was spent on pa,- `n debts and huh' now
eq ~1i priori t
Sher.giiai announced (13 Jan.) that the Food Bureau in :^:u risien, north _nine; , let -rain
bags rot at a loss of 380 million Yuan. Shan,-l---a-i. said (12 .Tan.) that fundamental
construction in the salt fields of Fast China was onl?' 1180 percent li perfec ." In some
places the idea of ' desi,n and plan first, and tlhen work" was not' carried out, with
serious losses resulting. Yangchow reported (16 Jan.) that the China Foodstuffs Compan,;
branch in Taichow city, I:iangsu, notified. 't e br'anc'h in i,i-cilia-shih 29 `'eptember to
raise- the market price of' wheat 10 to 15 -;uan. Throw lh carelessness the branch
notli'ied nine other offices to use the price established 26 . eptemher, with a~resultin,
loss of :1 ? 3?1,1?'0 uari in one month. Ian',-:'how said (18 Jan.) that' at a meeting
12 Tar,ii,rv a cadre from S'-ching Iisien, Kian,;su, reported i?bat in ciheck"in~_ on 39
g-rai-iric?s, he discovered 31.2,000 cait.ies of ;nreccor?ded , rain, in addition to unrecorded
funds of 18, 852,000 y iari.
Claimssof Su cess. Among the relatively small number of economic iains claimed b
the r'hinese Communist radio, some are accredited to improved personal relations in the
factori.es, some to adoption of Soviet methods, and the. remainder to cban_es and
improvfem.ents in methods, VYeaknecses are. apparent in most, of then','',
Canton claimed (10 Jan,) that production had increased reatlr in the iwanwt ng
Rubber Shoe Factor;; after "feudalistic cir?men-! s in the factory were destro -ed by
democrat i.C refar?m:r." 1'!?:,lhsi said (10 Jan.) that, a great. improvement had been noted
in the accomplishments of the 2,000 Chi:;ehan transport. workers "since e1itnine'.ion of the
boss system through democratic reforms." Canton said (13 .Jan.) that since marr.-
senior wo.rk:e rs had been reformed, friction had been e11.minated between them and the
new worke-e, with 37 plants, including the Canton `I'aterworks, 11ie'7un,:::'ao a.nd the
Hsinha-,.-t fer,tories, having reached the democratic unit:. st.a;e. Cihungkiru- reported
(19 Jan,) that the Sanhsi Coal Mine, west Szechwan, had -reatl,- improved ts li
production since the "feudalistin bosses were thrown out last 7unel' and a democratic
connnittee of 130 cadres set up. Shanghai said (13 Jan,) that ''u Chin,,--l-n' had
been permitted to join the Communist Part "because of his bravery~'" As a crorker
in charge of handling cargo in the Markham Road Failwa- Stath_on lie, refused many
bribes, though he had a family of eight and made onl.;- 4,000 to 5,000 :,ban a month.
He reported smuggling cases, caus-in; the smugglers to lose 50 million --ban on one
cargo, was beaten, and his life was threatened.
Mtitden announced (1.0 Jan,) that under the direction o' .".ovi.et technicians train
operation efficiency had been greatly improved at. the 1.'nkden South ' Station. Wuhan
asserted (17 Ian,.) that workers on the Chenfchow Rai.iwa;i bad achieved excellent
results through emulating Soviet methods in operati.n-- frei -:t trains. Locomotive
teams 3314 and 3384 had set new freight transport records in moving 25,000 tons at a
saving to the Government equal to the cost of operatin"? 20 locomotives.
!lr~ i`1 ~1i' 1h
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rip!I,, ?Drr;?` Tr -L
Chinchow announced (18 ,;an.) that pease:+:s :.n one v ila, t- had dec'ded to spend no
money buying "supers';itious items" dttrin the com-i n spr-i ! fcs ii val ?ui,si said
(18 Jan.) that farmers in Chanfchaw read decided tc sa Crone;;- h:? refrainia~ from
observing ancient customs during the sprin, festival. Feast in;: and reli. io'_is observances
will be kept at a' minimi.tm.
Peking in a n;iiaeral code transmission (13 Jan.) asst-r-ed that the Nor :east Department
of Industryvill use 25 percent less lumber in 1952 than was required last year "with-
out affecting constractior. requirFements." Floors and '-eilin-s of ordinary dormitories
will not bis made of wood, arid substitutes will, be u.ised whenever possible. ..mall
discarded iooards will not be used for firewood or sold, fs:~ of limber at construction
sites for corridors and sidewalks "is strictly proh il., .' ed ." r'ekin said in numeral
code (14 Ian.) that after successful experiments with cement; in the Northeast it had
been decii(ed to use "medium grade a,ment," h'ukden er,:;oi.t*:cer:! (12 Jan,, that the North-
east Department of Industries nad e.cclaimed two techn_cians'for production
costs by using more reclaimed rubber, thus rechicin;_ new ribber from 38 to 30 percent,
"and impro'ring the quality of the product.""roll m roar; f i ?tr es prepared at the
Number 4 Rubber Factory indicate the savini. will amount to 4', i million --,,an annually.
Doubt is Last on these claims through the statement -.na'. the _''Department is urging
technicians to continue to study the problem "in order io attain the standard set by
the Sot,iet Union." Tsinan announced (12 Jan.) that the ;hantun; branch of the
Coammttiist Party has issued a directive calling on all oft i r..s to save rubbish and
deliver it weekly to the state, paper factors, for use in making paper at an estimated
saving of 20 million Yuan annually,
Hangehow announced (12 Jan.) that a winery was than,!. n i.'.s business, and now will
process sugar? At the Number 7 ,hop, Chekiang; Woolen P!i ll.s, workers have set. up an
"honor-system mail box" with stamps and cnan_ge in order ?..o save workers from usin;-; the
20 minutes required to go back and fort!, to the Post iar;_,ciiow said !1? Tan,)
that the Ta-Sheng Cloth Fac. tory , Nantung, T?: i. Fl, _;su, i c carr;: i:ni : out a saving campai ;rL
by selling old stocks in the warehouse, thus iacreasin;- i;ite 'turnover capital and
saving 250 million yuan in 3 months. Pekin armounc c-d it numeral code (11 Jan,,) that
by using a high-speed metal-cuttin_, process, 10 meci:irie i'ccf'ories in -'harpiiai,
including Tungyung, t?usunig and Chiuchian;, have raisr'd trii-irj effigy:i'nc from two to
nine times. In. the ChiitnFhan .fhiphu'ilding ! ec for 1dr.-L )r--r 2,'Wuhan , which has old-
model leather belt lathes, the increase was one to three Ti_mes. Pekin_-. said (13 Jan..)
that the Northeast Dyeing Factory has adopted the rationalc.c''ed suggestion of "reconvert-
ing dye fluid wastes" which "had been suppressed for one ear-" ;.i,>kden a:,_r,ou_m_ed
(10 Jan.) that the Mukde:n Communist Party had called :1 meet.in, of factory authorities
to "populaxrize the multi-knife metal- cutti.rt~; device,"
Schools and Teachers, Thought reform was largely ner_le: t.ed Lecause of the 'beaty,-
emphasis on the anti waste, anti-cor.ruption, anti-bureaucracy drive, iowever, some
attention was given to schools and teachers, with the emphasis on teachers in hig-her
institutions. Hangchow stated (10 Jan,.) that the Last China 'Study Committee held its
first meeting 9 January to discuss thought reform, and will start its program with
the colleges and universities of Shanghai.
Shanghai said the same day that teachers in higher ins tit.,iti.ons of Tsinan started a
thought reform program in November,. Sian announced (11 .Tan.) that delegates from
local institutions of higher learning met to discuss the program, 7 .Tcnuar;::. Peking
announced in numeral code (11 Jan.) that, teachers in ! unr kihf, hi(_;her institutions
had launched their thought reform drive "with enthusiasm."
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15uhsi said (12 Jan,) that 53 students of the I:ian -s _: L',ed :al College, Chenchiar.; ,
sent u letter to the SUIIMI JIH PAO call:in;; for thou .reform' in the colle,_e teael in;
staff "St'rbborn professors were warned to chas:r'e tr:eir a:ctrL?tude," V.'uhs; earlier
said (11 Jan.) that the i:iani su School o_ Fine Arts called a' meeting: to discuss
thought reform among the students, too man;- of whom are interested in l.,x1.tr1-- and
"adhere to P.merican ideals of materialistic comfort." ..^_not:er 7'uhsl. broadcast (20 Jan.)
reported that. the South Ki.an su Normal Sc Fool held a neet.inr~ to consider t'1ou4''ht reform
mon,; the leachers, who were trr[-ed to "stud;; 1.'ao i se- tun, 's theories."
Yan(;circ'w announced (11 Jan,) that the Culture and '.:duwatior, ommittee of "orth Kien; su
held ? rympositne on thought control, with (A persons presentl, whic:i decided that `n
1952 the thought reform movement must be carried out to the !3,000 middle and 30,000
primary school teachers in north Mangsu, "so as to wipe out the linerin? influences
of imperialist and feudalistic thought and establ'.sn the conception of' serin.- the
people." Yangchaw said (12 Tan.) that studont and ; -outih or anizat.ions ! n north
Kiar,gsu had issued a joint statement calling on their membership to support thou;-hl reform.
Iiangcihow reported (15 Jan.) that the local Civil t 'fairs !:-opartnient had called on all
high schools to accept students from the rural areas, even the' were not up to
the entrance requirements. No explanation was :aver, of the reason for this order.
Pekinfr's home service network announced (20 Jan.) that tiro Gent ral Government
Admini itrative Council had approved a directive raisin;- the pay of primary school
teachers. Peking in numeral' code (16 Jan.) quoted from C1111l;A Y0?ilea on thou:--ht reform
in the schools. Some sib*nificant quotations from the article follow-,
CPYRGH It is impractical to' carry out the thou ,lhrt. strut r 1e :impalsivel:-
if circumstances still are not matured for such a movement. In
broadening the thought strug;;le a on;~ schoo'.s, it is nccessar;;
to avoid letting it 'become a form without s J?s-tance .. ~. Youth
Corps committees and', student associations in each 1.rrliversit;r should,
1.rndcr the leadership of the Party, endeavor to understand the
trend of thinking among the students and se 1.1e related problems . ,.
Tr';,t: the tho ;ht, struggle should become a ?ar-?rea.-'.ping movement
among primary and middle schools and in the c ,~t_Les is a wrong,
at t i trade .... Patriotic education amonf t!,e middle schools
hinges on the thought reform of the teachers. !?ek:ing;,
Winter 5clhools. Nanchang reported (20 Jan.) that winter schools in the First. and
Sixth Ch': of Timghsiang lisien, Kiangsi, had a succecsf ul searon with 3,419 students
in 66 schools. Sian said (15 Jan.) that 354,000 peasants attended the schools in the
Northwest, where "the principles of land refotm were tau?hi; " VIuhsi reported
(17 Jan.) a successful conclusion of the winter school program with inau,_vu?at.ion of
"newspape.r reading classes for the indoctrination of the peasants," Chunking said
that south Szechwan had a good winter school program, with 40,000 enrolled, "after
an intensive propaganda campaign."
Emphasis here was placed on teaching Soviet culture "in order that the masses could
have a glimpse of their future happy life," Shanghai announced (14 Jan.) that
10 million farmers attended 'winter schools in Shantung , Fukien, and Anhwei. The
18 million in East China far exceeded expectations. "Cost of the schools was cared
for by the farmers' sale of isuppleneentary products." Yangchow said (15 Jan.) that
the Huaiyin People's Government had called for a list of model winter school
administrators, teachers, and students so they could be honored..
Hangchow announced (10 Jan,) that the 150 students enrolled, in the winter schools
of No. 2 Village, Tayuan Hsiang, Kiangshan Hsien, Chekiang, had ":issued a challenge
to other schools on their record of good behavior," This is of special interest in
view of the report from Yangchow (19 Jan.) thai. in :?hiricanrJ Chu, tiantun_;, hi.anrsu,
corporal punislvnent had been inflicted on students for absence or late arrival,
CONFIDFNT'IAI,
I+~4~~?'=- -~~Y b Cap.
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cc ?rF Il)ENT 1J'-l.
"arousing the dissatisfaction of the people." liofei (20 Jan.' clarified further the
evidence of resistance to the winter school prosraai b:; report',.n;; that in two administra-
tive_ districts of north Kian;gsu, cadres "forced the peasants to er:.er the winter
schools without proper propaganda." Those who did not enroll were punished, and
Militiamen were posted around the schools to "force the students to stud--;,." The
broadcast added that "the peasants protested."
Religious Countermeasures, i-4-deli, scattered attempts to oust forei;,n Catholics from
China, take over missionar,( institl.itions, and i.n` 'ltrate an!' control the local
churci-_es are still reported. Peking reported in numeral code (13 ?,-n,) that. "local
lay Catholics" in Taiyuan had accused Italian nationals r1rchhlshop L' Lu-chia, 'ister
Tsui Yu-?li, Fathers Ku Kao-loh, Teng Ya-i, PenC Tsai Loh-sewg, and Tao
Tien-chueh of organizing the subversive Le ,ion of L'ary, Police searched two Catholic
churches and found small arms, ammtmit.ion, and radio parts.
On 24 December, 330 Taiyuan Catholics organized a coirunit-tee to support the three-point
re#or-rn indeperdenoe movement under the leadership o;' Chen Tsao Tao-cnien, and
25 of ers. Vice Bishop Ito Nai of the Taiyuan Diocese addressed the tweet. ', swing
he would reior'm himself and support the movement, in addition to expelling Fan Lan-wang
and other counterrevolutionaries from the church,. The meeting also adopted a member-
ship oath and petitioned the People's Government to permit the association to take
over the Joseph and Tung Leh-kou hospitals and the 1_iin ,.n.utn, Chiala, and (is i.n;k'iari
miss2onaTy schools.
Hangr how reported (12 Jan.) that. "imperialist' ' !;'lei Tsang-1o ei. was indi .--t:ed for
subversive actirrities at a rally attended by 400 under the chairmanship of Tsao MM,tao-kin.
The crowd, corrrposed of Catholics, Protestants and i~'_iddb sts, and includ ..n People's
llsoemblwnen 1-lu Hai-;hoer and Li.u.1 Chit-fang, heard and Li :' hsin accuse
Mei of oT.ganizirrg the Leg-ion. of I.Iar,r and opposing the Catholic i-:eform I.ioremer.
Sian said (15 Jars.) that Catholics in Shensi Province had organized a reform committee
to "drive on, imperialist, elements masquerading as relit io s elements." The People's
Co.rr?t crrdc-red the banishment of two imperialist elements and imprisonment of their
"running dogs." Sian announced (19 ;tan,) gnat. six stud;r groups for thocil.h` reform
had been set l:;.p by 240 Catholics of Ping 1.inL Chi rc:r, Lanchow 1t?,-. Tnir'; Patriotic
Catholics reported a number of imperialist elements in the Church, and several cases
of criminal activity were discovered daring the stud
Prayar-tinda N twork. Chinchow reported (ll. jarL.,) t r-iat 59 percent of the Corrrmmist Party
S1bcorubittees in tiaosi Provin: e have established propa .;and'. ne tworLs. The Province
now has 82,515 propagandists and 1,659 reporters. "Tt:e policy for 1952 is to
further expand and consolidate the propaganda network." Peking announced in numeral
code (13 Jana that there are 4,100 rural propaganda and instruction stations in
Hopei Province, with the stations regularly vin_.- two lessons a month to propagandists.
Propagandists in only two of eight ad jacenr villa; es could stud-- rerulaT'1; before
establishment of the Kengchi.:ang-chiao Instr-iction :station, Third Chu, JJ iri('chin now all
eight villages are in reach.. 1'Juhsi announced (lt Jan,) that Communist Party cadres
in Ihsing Hsien, Kiangsu, have organized 700 newspaper reading programs to promote
political education >amcmg the peasants. Canton (20 Jar,.) quoted the 'watcw City
Party ser..ret?oinr as sr,