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XeacNo.2. for September 19529
BEPURT FROM CHINAs
Early next month, Red China is celebrating the third anniversar
of its present communist-controled regime. Although a vast country,
with one of the oldest civilizations and traditions in the world, and
with a heavy weight aff inertia and of conservatism, China has undergone
in those three years a doubthessly unprecenfied revolutionary trans¬
formations In its past history, it would have certainly take, the country
many centuries to reach a similar degree of change, at least in outward
appearance, organizational setting and public policies.
— oe ae
icgonomic reorganizations
The first three-year plan, set forth by the Mao Tse-tung
regime is nearing its ende Its main goal was the rehabilitation of war
damages and the rising of China's economy to its pre=war level. Vice¬
Premier Chen-Yun, as head of the Committee for Economic and Financial
Affairs in Peiping, carries the main responsibility for the achievement
of that aim. Official statements Chaim that pre-war pmuudsurtimn outlay is
already reached by somé’foutry's basic productions, such as cereal and
Soyabeans, tea and rice, leather, cotton and textiles, coal, iron and
S@&at. According to most reliable sources, these statements correspond to
reality; serious doubts however are expressed as to transportation
facilities and the functioning of power plants. The Korean war and the
damages inflicted on Yalu River installationshave lead to overtaxing of
the available transport and electrical sources. This, in turn, has places
Severe restrictions on all the other aspects of economic life, especially;
on the expansion of heavy industry in the North-Eastern part of the
country.
The second aim set forth in Peiping's economic planning, =
besides and above the restoration of pre-war production levels, - is the
complete public control over all the pkases of China's economic lifes
In cities and industrial centers, private capital, industry ani
trade are being taken over by governmental trusts and companies. Private
business was liquidated on the basis of the "five anti" campaign. Launch
by Premier Chu-En=Lai early in January, this nation-wide movement had to
detect and kill the five economic evils: namely fiscal fraude; bribery;
deceit in work or production especially in case of public contracts;
theft of economic secrets for profit-making purposes; alienating of Stat
propertye Called off in June, this six-months honesty campaign had
cleaned out most of the remaining private urban enterprises. The means
used for enforcing that goal were the well-known communist practices:
accusations and confessions, refunds of "stolen" goods or confiscations,
Suicides, sentences to forced labor or executions.
já in rural areas, especially in the ágricultural West, the “land
reform is carried out speedilys With the exception of the most isolated
areas s such as parts of the Sinkiang Province in the northwestern
frontier region - the nationalization and redistribution of the land is
completed, according to official statementse Landlords are liquidated.
vmership is tummed over to State farms, State companies, peasants!
associations and cooperatives. About 80% of the total population - rougl
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