OCR
“a X.A.N2 3 for June 1952. REPORT FROM RED CHINA. While in the political field of the evolution of Red China little can be reported for the past few weeks - except for minor moves in the field of pawty orgenization and purification of the administration - there are on the other side clear indications in the economic field as to the intentions of Red China's leaderse All economic reports and all directives of the Economic Ministries are showing one thing : the emphasis is rapidly shifting from peacetime production to the ever increasing needs of National Defense Industries. The sustem of new priorities, which has been in operations since the end of the whmter is significant 3 even uitilities - except for those electric projects which furnish much needed current Bor heavy industry - are no longer in the class of top priority for the furniture of fuel, machinery and raw materials, Only the heavy industry affected to the armament count any more. fmong these industries again, there is a very marked distinction in favour of the industries established in Mandchuria. The industries in Mandchuria, mostly established by the Soviets, are starting to operate again at the speed in which they were working at the Japanese time. It is also significant that the Russians have, during this winter, returned numerous machines which ariginaliy had been taken to the Soviet Union from the area after the dismantling of industries following the Japanese surrender. It only tends to show the fallacy of Western propaganda and wishful thinking, that the machinery thus returned by the Soviets has been given back in very good shape 3 proof, that the Soviets tcok good care of the material they stole in other countries. With this machinery also arrived an impressive number of Chinese technicians, who after several years of training in Mgsia are now taking over the factories and are running them with great efficiency. In fact, the number of Russian technicians in Mandchuria has sharply dropped since this winter ; and this has, at least in the interested circles, been a great advantage for the Soviet friendship, since those technicians often antagonized the intense nationalism of the Chinese, while their departure received much friendly commente And the Russian-trained Chinese technicians, who now take over the factories, are in their, majority do,