The Communist authorities will shortly issue bonds with a face value of two billion U. S. dollars and will force subscription upon the people, according to the Ministry of National Defense of the Government of the Republic of China.
The report stated that farmers would have to purchase a set quota of bonds with goods in kind while laborers would be compelled to subscribe 20 to 30 per cent of their wages. The rest would have to be absorbed by the business enterprises.
The same source reported that the bonds are being issued to enable the Chinese Communists to meet mounting costs, presumably as a result of the Korean War which has been a severe drain on the treasury of the puppet Peiping regime. --(A P)
Communists Prepare for War
As a result of recent developments, including the increased Allied pressure in the Korean War and the deneutralization of Taiwan, the Chinese Communists in Northeast China are feverishly engaged in defense preparations to cope with the new situation.
In accordance with orders issued by Mao Tse-tung, the Communists in Northeast China have completed a most up-to-date defense line along the bank of the Yalu River to as far south as Dairen and Port Arthur.
The entire project was mapped out and supervised by Soviet military and technical experts. The immensity of the work may be gauged by the fact that 120,000 members of the "Anti-America Aid Korea" secondary defense group were mobilized in addition to the forcible conscription of countless civilian workers. A maze of fortress like structures as well as an elaborate system of machine-gun nests have been constructed in the immediate defense areas, while shelters against bombing attacks and storage spaces have been provided in a network of underground tunnels.
Meanwhile, the Communist military authorities have designated specific areas such as Anshan, Liaoyang and Mukden to be "battle zones" in anticipation of the decisive battles for the control of the railway network, steel factories and coal mines in that region. At the same time, the civilian population and thousands of students of the technological schools in the defense zones have been forcibly evacuated. Important machinery and materials have likewise been shipped by train to safer places further north. Civilian property and life are completely disregarded. In the villages, peasants are compelled to sell their livestock and forego what little land they had acquired during the agrarian reform to evacuate to the Peiman and Shanhaikwan regions. Those who show reluctance in complying with the evacuation orders were branded as "American collaborators." On the other hand, able-bodied men, militiamen and members of farmers associations are not permitted to leave.
At present, in the mountainous areas in the southeastern part of Liaoning, the Communist authorities have dispatched groups of plain clothes party workers to join members of the civilian defense corps in the preparation to engage in guerrilla warfare. The Soviet Red Army Command in the Far East has allocated 200 T34-type armored tanks to the Chinese Communists for the defense of the outer perimeter of Mukden.
In the daytime, the streets in the principal cities of Northeast China, including Mukden, Harbin, Changchun, Anshan and Dairen are practically empty. When night falls, women of loose morals attired in Lenin-type suits and other "volunteer" uniforms may be seen consorting with Soviet officers and men--(China's Voice)
Communists Sell Mineral Ores
In the past six months, Red China has been selling, on a large scale, various types of minerals mined in different parts of the country.
Since the latter part of last year, the Chinese Communists have been urging the people to register their mineral claims with the "government". Furthermore, in his recent report, Communist Finance Minister Po I-po pointed out that investments in mining during the year of 1952 had increased by over 600 per cent over the previous year. This statement goes to show that the Communists are energetically striving to develop the mining industry to the fullest possible extent, probably with the aim of balancing their huge expenditures.
According to the February 22 issue of the Peiping Kwanming Jih Pao, the Communist authorities are concentrating their main energies on the development of the mining areas in North and Northwest China, while petroleum deposits in the northwestern part of the country will also be fully exploited.
Despite the fanatical Communist efforts to exploit these resources, many problems of technical know how and equipment remain to be solved. Indications are that the job of mineral exploitation will eventually be taken over by the so-called Joint Sino-Soviet Mining Enterprises, and that the profits to be derived from these undertakings will be evenly divided between the Chinese Red regime and the USSR. In all likelihood, the entire lot of the ores thus produced will be shipped to Soviet Russia - (Democratic Review)
Russians on China Mainland
Large additional numbers of Russians have arrived in continental China since the beginning of this year, placing the total number of Russians working as advisers to the puppet Peiping regime at about 100,000.
Last November, as the Communist first Five-Year Plan was about to be launched, a nationwide Sino-Soviet Friendship Month was officially sponsored by Peiping. The importance' of Russian technical advisers was stressed in the official propaganda campaign during the month. This was later understood to be an effort to get the public psychologically prepared for the arrival of more Russians.
These advisers are working closely with the Chinese Communists at all levels ranging from policy-making organs down to minor governmental agencies and factories.
The functions of the Russian advisers were recently revealed at a public rally held in Peiping by Po I-po, Communist Finance Minister. He said that "every important step affecting China's economic life in the past three years had been guided by Soviet advisers." The vast and various fields wherein Russian advisers are working, according to him, include policy and law-making, financial and monetary affairs, education, communications" transportation, industry and mining, agriculture and irrigation, trade and cooperative enterprises, railroad and highway administration, planning and surveying, propaganda and broadcasting, etc.
Po I-po also disclosed that Russian advisers are searching vigorously for China's mineral deposits, especially petroleum. They have discovered a number of hitherto unknown petroleum deposits and proved that China is rich in petroleum resources," the Communist Finance Minister said.
In the field of education, the opinion of Russian advisers plays a decisive, part in shaping the Chinese Communist education policy. The nation-wide reorganization of colleges and universities which took place last year was suggested by Russian advisers, and Russian-edited text books will be gradually introduced into colleges and schools on the Chinese mainland, according to Po I-po.
Observers are inclined to believe that the number of Soviet advisers attached to the Chinese Communist armed forces exceeds the number of advisers working in the economic and political fields. According to authoritative sources, the Soviet military advisers are working under the supervision of General Kotoff, senior military attache of the Soviet Embassy in Peiping. The General, who came to Peiping when the Red regime was established in 1949, is said to be one of the top Russians permanently stationed in Peiping. -(Hongkong Standard)
Reds Admit Famine Conditions
A million or more peasants are suffering from starvation in Southwest China, according to official Communist sources. The seriousness of the situation has been emphasized in official Communist reports reaching Hongkong.
These reports disclosed that the authorities in the four provinces of Sikang, Yunnan, Szechuan and Kweichow had to neglect other tasks in order to fight the famine.
Far from having been checked, the famine is not expected to be relieved until the spring harvest. “An appeal to the masses” has been published by the Southwest regional "government" asking the people to help themselves by increasing production of subsidiary staple foods. Although a sum equivalent to US$2,000,000 has been allocated to fight the famine, the appeal hinted that relief grain would be distributed to selected victims only.
These reports appear, to run counter to the optimistic statements of Communist Agriculture Minister Li Shu-cheng in Peiping last September just after the summer harvest. Li said that grain production in 1952 had increased by 5 to 20 per cent all over continental China over the 1951 production figure, and that for the first time in 200 years, China could exports grain to aid other countries.
The Chinese Communists exported 100,000 tons of grain to India in 1952 and promised to ship 250,000 tons of rice to Celyon this year in exchange for rubber and other non-edible commodities. Among other items, grain was also promised to Hungary in exchange for machinery through a trade agreement signed at Peiping on March 29.
Reports from the southwest area did not attribute the famine to any natural phenomenon, giving the impression that it was probably due to the excessive amounts of grain collected by the Communist authorities from the farmers-(China News)
Military Base at Hainan
After their occupation of Hainan, the Chinese Communists made elaborate plans to build the island into a large naval and air base from where large quantities of military supplies may be shipped to the Communists in the Philippines, Indo-China and elsewhere in Southeast Asia. Last year, a large number of Soviet experts and slave laborers were sent to this island to convert it into a military stronghold.
According to the latest information from the mainland, however, the Communist authorities have now abandoned their scheme for this South China island. The following factors are believed to be responsible for the sudden change of plans :-
First, transportation problems pose almost insurmountable difficulties. The Communist authorities, failing to secure sea communication between Hainan Island and ports in North and Central China, have to rely solely on overland routes through Kwangtung Province for their supplies. Furthermore, following the de-neutralization of Taiwan, Hainan Island has become one of the main targets of possible attacks by the Government of the Republic of China.
Secondly, as a naval base, Yulin harbor possesses facilities adequate only for the construction and repair of ships below 500 tons. In the waters surrounding Hainan, there are only three or four Communist vessels on patrol duties at anyone time.
Thirdly, the inability of the Communists to negotiate successfully with foreign shipping companies to transfer the iron ore mined on Hainan direct to either Anshan in Northeast China or the USSR, thereby necessitating the suspension of mining operations.
Fourthly, the effective anti-Communist raids carried out by guerrillas on the network of highways on the island.
Due to the length of the South China coastline, coupled with the lack of modern warships to oppose the Nationalists in sea battles, the main strength of the Communist South China Fleet is now concentrated partly at the estuary of the Pearl River and partly in waters near Yulin in Hainan. M-type Soviet submarines patrol the waters in the Swatow area on the lookout for possible Nationalist counter-attacks.-(Democratic Review)
Anshan Iron & Steel Company
For nearly half a century, the Anshan Iron and Steel Company in Northeast China had been the object of a bitter struggle between the USSR and Japan.
After the Russo-Japanese War of 1904, Japan took over the management of this plant, and succeeded in transforming it into the second largest iron and steel works in the entire Northeast Asia.
In those peak production days, the plant was responsible for the output of 87 per cent of all of China's iron and 93 per cent of its steel. After the outbreak of the Sino-Japanese War and the subsequent Pacific hostilities, Anshan's contribution of steel to the Japanese war machine was immense. In July, 1944, Allied warplanes specifically selected this plant as the main objective of their bombing.
Immediately after the conclusion of World War II, the Soviet Red Army entered Northeast China and destroyed as well as looted a very large part of the machinery in the plant. After two years of extensive repairs by the Chinese Government, the plant was able to resume operation. But on February 22, 1948, after the Chinese Communists had occupied Anshan, they proceeded systematically to loot the plant, because they were uncertain as to whether they could hold the city for any length of time.
According to the latest reports, the Anshan Iron and Steel Company is now rolling out large, quantities of rail tracks for Soviet and Chinese railway networks, a task which is part of the USSR's Five-Year Plan. The Korean War has apparently upset Russian plans to utilize the Anshan plant to produce the necessary track equipment to complete the railways linking the USSR and continental China in the northwestern part of the country and those connecting Russia with points in Central Asia Minor. The Russians had hoped to strengthen their military ties with the Chinese Reds by the completion of these railway systems.
At the same time, the Russians cannot expect to produce tracks without cutting into their production of armaments. The question now is which of the railways the Russian and Chinese Communists want to complete. In Northeast China alone, the Chinese Communists have at least 5,000 kilometers of railways yet to complete. --(China's Voice)
New Marriage Law
Although the Chinese Reds' Marriage Law was promulgated as early as 1950, they found it necessary to launch an intensive propaganda campaign in March, 1953, to make this law thoroughly known and acceptable to the people. The law contains 27 articles in all.
In their new Marriage Law, the Communists have made divorce a very much simplified matter. But, in the three years that the law has been in effect, it has not only failed to liberate women from their "bondage," but has actually increased their suffering.
The extent of the havoc that the Communists have caused can be gauged from some of the figures that the Communist press has published. In Central Kwangtung Province alone, at least 5,000 divorces have been granted since the promulgation of the new Marriage Law.
The Chinese people have always regarded marriage as the beginning of a happy period in life. The Chinese Communists, however, do not look at marriage in the same light. They consider divorces and the breaking up of the home as happy events and look upon the abnormal as something normal.--(China's Voice)
Peiping Slows down Land Reform
The Peiping regime has decided to slow down its land reform program to give Communist farm leaders time to "educate" the peasants, according to reports from Hongkong. The Communist regime issued a directive early in April ordering rural Party officials not to hurry the peasants into the collectivization of their farms.
Saying that the "collectivization and socialization of agriculture" was a "prospect for the future," the directive warned against "precipitous haste regarding development of the movement." There is a "need for patience in helping and educating the individual peasants," the directive added.
The directive further conceded that many peasants had resisted joining "mutual aid" teams and concluded that individuality among the farmers, "will prevail for a considerable period of time." --(China News)
Capacity to Take Insults
Hsieh Wu-ye was by nature very rude. Being offended at a certain affair, he went in person to pick a quarrel with Wang Shu. Wang was cornered, facing a blank wall and daring not to budge. After Hsieh had gone a way for quite a long while, he turned his head and inquired of his servants, "Is he gone?" "Yes, he is gone." Then dared he go back to his seat again. He was greatly admired for his capacity to take insults in spite of his quick-temper.
-From Shih Sho Hsin Yu