OCR
no er— X.4.9.O0et.52o torial reserve corns, both for the young people to receive a paramilitary training and for the ex-serviece men to maintain a standard of necessary military knowledge. This very necessary renovation of the organizational seheme of the Chinese Army and for the modernization of the active forces has now been made the special duty of a new Modernization Service headed by Generais Lin Piao, who is especially dealing with the question of the integrstion of the newest Russian weapons into the Chinese Forces, and General Liu-Po-cheng who will have in his competence the reorganization of the forces and the new system of conscription. Lin Piao's services are especially concerned with the increased furnitures made by the USSr, furnitures which are paid for by China partly through barter arrangements, partly through the utilization of Soviet loans. The supplies furnished by the Buropean People's Democracies, especially Czecho-Slovakia and Poland, are to roughly 30% on a cash basis and to the rest is also on a barter basise The supplies arriving at present are in order of importance ¢ anti-aircraft equipment, including radar and electronic equipment 3 tanks 3 ertillery, including rocket firing equipment ; fighter planes plus a few bombers § some infantry weapons. It is interesting to note in this connection, that since the beginning of this year Lin Piao's services have also rez ceived a certain amount of equipment for the atomic industry of China. We could not learn either the exact nature nor the exact . gmount of this top-secret equipment. It is nevertheless interesting to note, that obviously in China the atomic questiobs are handled rather by the Army than by any speciel organization, such as Beria's sorvices in Russia or the AEC in Amorica. This vast exchange between China end the People’s Demoeracies in military matters is, by the way matched, by similar exchanges in the economic field. It has been thus revealed, retently, that the Soviet Union sent 20% of China's imports in 1950 while already in 1951 this sum had risen to 45%. The European People's Democracies had furnished in 1950 1% of China's imports against 25% in 1951. In China's exports Russia had received 25% 4n 1950, against 51% in 1951 3 as to the European Satellites, they rose in the same period of one year from 3% to 26% of China's export. In the same period the trade with Mestern dropped from 60% to 22%. This year this trend ought to be even greater. In fact, though, Western Exports to China can be a bit greater than officially indicated, since China maintains a clandestine or semi-clendestine trade with the West in order to obtain much-needed supplies. Much of this trade goes via Berlin, where especially the 2 "Inter-Agra" corpcration is active on ja ng of China, and enjoys the favours of the Red authori94.