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3/22/1948 - Shansi Province; Taiyuan and Taiku by A. Doak Barnett

INSTITUTE OF CURRENT WORLD AFFAIRS ADB Ta Hsueh Chi Peiping China Waer So Rogers Institute Current World Affairs Fifth Avenue New York New York Dear Rogers This report I apologize length however because I believe details relevan general picture I described I repor existing conditions Shansi Provinceo On Peiping Taiyuan capital Shansi close friend younger members UoS consulate Peiping Eactly later returned Peiping The which Shansi I believe obtained sccurate picture unusual aspects Governor Yen Hsi regime Before going inteviesd number People Peiping familiar Shansi consequently significant things watch The spent interviewing officials provincial government We interviews Governor Yen Hsi Kuo Tsung Yen Chief Of Saf Liang Provincial Commissioner Po Y hsiang chiefo Land Breau Wang Ch Economic Control Breau P Shih Director Northwest Industrial Company others From Taiyuan overnight smaller Taiku miles south On advice people Peiping slayed foreign missionaries Taiyuan Taiku This fortunale Through these missionaries introductions people Peiping contacted talked persons different picture conditions obtained officials We ourselves things going Taiyuan Taiku country between Before short suburbs Taiyuan visit refugee camps This letter report conditions I heard about perspective present conditions I added certain amount general background material various written souoes In I leave Peiping I informed subsequent moves Sincerely yours Doak Barnet Neles Shansi Thirty seven years October revolt stirred Nationalist Revolution Central China reached Taiyuan Shansi Province On young colonel named Yen Hsi important decision revolution Imperial troops under command Since career Yen Hsi history Shansi Province virqally inseparable Yen living China still rules Taiyuan capital S hansi Shansi distinct geographical entity heart North China It exensive higands China north northwest which distinguished their coverin yellow blown loess Shansi naral boundaries which delimi province rather distinctly ountains Taihang Shan Shah cover province except Taang plain north Fen River valley south Taiyuan Chiehchow plain southern province Plateaus intersperse mountain ranges bheyarecuby eepgorgesandvalleyswhichliebetween vertical walls loess andthe plateaus almost rugged mountains hemselves T mountains abruptly North Ohina plain Shansi border follows terrain The province western boundary clearly defined norlh south course Yellow River The Yellow River curves forms southern boundary province The inner Great Wall forms northern province special southern branch separates Shansi Hopei The munLnous terrain Shansi province ounding areas isolatei opographically This isolation resuled distinc Shansi dialects customs Isolation possible leader Yen Hs control provincial regime which maintained large degree political independence There TAmes during thirty aeven years inclusion Shansi within Nationalist China nominal Presen Shansi canno understood without knowledge background dominating personality Marshal Yen Yen Hsi Wutai disric northern Shansi His basic educa completed military instigation Taiyuan there infantry courses ilitary Cadets Academy until While Japan joined T Meng Hui forerunner Kuomintang first contacts revolutionary Chinese leaders After returning Taiyuan started model igade province Then spark Naionalis Revolution presented opportunity seize power He quickly achieved military control province gained recognition Nationalist leaders In Marmh appointed Military Governor Shansi In June general special title TUng Wu In September appointed acting Civil Governor Shansi Over years success additional titles honors In Autumn officially designated Model Governor China curren National Governmen Peking In January awarded First Order In February general November became arshal These titles appoint merits hwever merely belated recognition successive national authori Yen unshakeable position province National regimes other local leaders during chaotic period China history remained control shansi Yen focused attention refrain pletely participating national politics He shrewd msing oppor1nisluapolitical alliances other Chinese leaders srenghen position From moral support Presiden Tuan Shih desert losing power Dring years until supported Chi Anfu Clique When clique position power Yen sided Anfu warlord Pei helped Wu former subordinate Feng Yu nsiang In Yen formed political alliance anchurian warlord Chang Tso defeated Wu Pei wheneKuointang successfully fough northward capital Nanking Yen terms Chiang Kai These maneuvers enabled Yen maintain power Shansi Province As result Shansi experienced unusual degree peace stability while North China gulfed civil between nuaerous warlords Dring period Yen carried extensive eforms Shansi He reorganized provincial administration villages reformed school system built roads launched campaigns against queue wearing binding encouraged irrigation development agricultural improvement Accounts written Visitors province during those years indicate progress evidently popularity among Shansi people Shansi previously considered usual backwardness Chinese folklore explanation undoubtedly being mountain isolation Confucious reputed traveled point miles Taiyuan arned disgus ignorance people Into Yen introduced reforms particularly emphasizing development schols roads Dring period after Nanking Government solidaed power Yen Hsi drawn closely orbit In Spring appointed Commander Chief Third Group Nationalist Armies North China Summer appointed Garrison Commander Peiping Tientsin Area Septeber elected membership Kuomintang Central Executive Committee Central Political Council October member Sa Council Nanking Soon hereafter however Yen independence reasserted itself He elected inister Inerior Then following years Yen became leader rev9l northern generals directed agains Chiang Kai sheko After quarrel Chiang Summer Feng Yu hsiang Yen previously fought occasions sought sancaary Shansi Yen became involved quarrel revol broke Yen F Wang Ch others united against Central Government Over provinces elected Yen Commander Chief National Army Navy Air Forces September these northern forces fought Chiang Yen elected President China larged Committee Kuomintang which tried establish government These northern forces defeated however Yen temporary exile Dairen Bu returned Shansi Daring early Yen again concen rated efforts reforms internal development Shansi emphasizing policy uilding industries salvation China An exensive industrial program launched under provincial Ten Year Plan When Japanese reopened their undeclared against China however Shansi exempted Yen retreated mountain position Chihsien southwes Shansi There quarters called K Nan P Hillside Conquering All Difficulties remained during The facts happened North China indisputably establish claimed active opposition Japanese Shansi carried mainly Communists while Yen delicately maintained bffer psition between Nationalist Cmmnist Japanese frces There during period Yen Communists constant opposition particular called New Army joined forces Cmmunist9 Eighth Route Army When V J Day arrived Yen raced Taiyuan maining troops The Communists already Shansi bwever Yen reestablish control certain parts province Since bitter struggle going between Yen Communists This struggle general civil progress China might expect historical background region there feares about siation Shansi which unique One recent observer described Shansi foreign country He exaggerating contrasts between Yen province country numerous striking A present erritory under Nationalist specific under Shansx comprises thirt2six nsien counties province Eight Tatung northern Shansi bbrder uxyuan region The under General Yu Chert He Yen reality zilitar authority there appears divided raher vaguely defined between Yen General Fu Tso National comandsr North China hsien immediate vicinity Linden south Taiyuan Linfen under command General Liang Pai Haang besieged pocket Sixteen hsien iediate vicinity Taiy central Shansi which Yen rezaining stronghold completely surround Ceuniss Until recently airly large section south Shansi occupied Shansi Nationalist troops under conand General Hu Tsung The local coander Hs Hsiang This riory recently almost completely abandoned Na tionalists however since Comunis threats Sian other Shensi cities forced H Tsung ransfer troops protect Sheas ilitary bailiwick Shansi troops furthermore appear replacing Nationalist troops Linfen In stric sensei incorrec distinction beeen General Yen Shensi troops other Nationalist roops His forces National Army Nationalist command called ayuan Paci caion Area under inistr National Defense In reality homver distinction Yen soldiers entially personal provincial present erged Central overnment armies virtue existing relationship Yen Central Government In contrast Nationalis military orces Yen roops almost entirely recruitedihinShans arekeptithin province Theoretically arshal Yen isunderbeover allcodof General Fu Tso North China Comnist Suppression Headquarters Peiping Acnally however follows independen course As Gener Kuo Tsung Chief Staff Taiyuan Pacification Area carefully explains Fu formerly subordinate Yen creates special relationship Io This special lationship apparently amounts permission Yen pleases Although General Kuo claims relations between Yen Fu could desired explain liaison maintained entirely wireless thatthere change liaison officers headqu arters An there effective military liaison In sphere spheres I facade normal relations maintained between Shansi authorities Central Govern reality special unique arrangements authorities which Shansi exempted large extent Central Governmen regulation control Relations between arshal Yen Central Government appear neither cordial antagonistic The loosely alliedi opposition common enemy Comniss By largest Shansi province under Comnmnist This oommunist territory falls control years several Liberated Areas which reportedly consolidated reorganized reformed according Conist patern tarily territory comes under several known Come unlit commanders Ho Lung northwest Nieh Jung northeast Liu Po cheng southeast Chert Ke south The mlitary command headquar however Hsinghsien nohwesterm province This which Communis leaders Chu Teh epored after Yauan military leaders Taiyuan claim still Hsinghsien Communist capita China present balance military forces Shansi summarized follows Yen Saff appears unusually frank forthright person arshal Yen regular troops Taiyuam Taung Linfen I addition bodied active military orgamized militiamen Soldier Farmer Unification program These mebers People Self Defense Army Wei Chin Tzu Wei ChGn miscellaneous other groups young women included People Self Defnme Corps Tzu W Twei The orgarizational intricacies military complicated describe detail guiding principle mobilization possible groups I claimed members People Self Defense Army rifle They trained about regular troops heoreically least elect oficers Someo mereytheir others loaned government while possess weapons The Self Defense Corps loosely organized their numerical strength vague aining In addition regular militia other military organizations Taiyan These include troops under aiyuan Garrison Conmander Ching Pei Szu Ling responsible local protection order Peace Preservation Commander Pao An Szu Ling whose duties involve military enforcement political policies ilitary Control eadquarters Commande Chin Kwan Ch G Szu Ling handles conscription In addition there large regular police force under military civil control Garrison Commander Board Civil Affairs All these added together active reserve military potential available Yen On Kuo Communists between regular troops Shansi slightly Yen however trained ganizedhepeolamilitia inPing thenumbersofwhichare probably considerably larger Yen territory since Commniss poPUlatio According Kuo total Shansi population fifteen million China Year Bok lists population Kuo figures Wgnificant general comparison proportion indicate approximat eleven mllion under Counist control under control It judge quality morale troops simply appearance bcertain inferences drawn their geral appearance behavior The troops which I Taiyuan Taiku Yen erriory ipression The streets filled marching carrying duties various simply loafing The majorit dirty sloppy They spirit The impression different example clean remark spirited troops Fa TSo observations tended opinion competent foreign militaryamrwho recently Yen troops about hcome China The situation regarding military supply materiel different however In relatively small Taiyuan there amazing light heavy industry concentration which contains largest industries operating North China I describe Yen industrial asselm deail later Suffice thesindustries I produce eighty percen military needo The important certain types amunition whichms brought outside I claimed every month produce llowing 75ram machine rifles machine mortars grenades bayonets swords smaunition These figures higher con1ined fairly comprehensive month confidential report survey foreign technician observers Production creased interim Shansi officiaSs exaggerated claims By contrast Communiss small military industries local areas southeast northwest Shansi large scale industry province The siaio regarding reversed however The siaio Yen erriory critical I describe stpriority existing stocks military seems likely wellfed expense civil population general short definite weakness Communists olher poducing region lower valley Fen River reported I favorable psiion regard The general military balance power Shansi cribed Relatively speaking however there active fighting going present It Yen small pocket Linfen cmrrenl umder severe Cemmunis attack siege activity fringes Yen stronghold around Taiyuan confined small scale foraging esting thrusts sides Nearby large Paoring Hopei Loyang Honan Sian Shensi present objects Commnis attacks hreats situation around Taiyuan relatively quiescen Tiyuan environs surrounded Comnist territory presen spectacle siege lilitary personnI activities evident everywhere Thousands concrete brick landscapS One official staes housand inediately around Taiyuan seven thousand surrounding countryside The pillboxes awkward structures thirty They appear built almost regard field offire requirements errain heywouldbecompletelyvulnerableo anysorofartillery Undoubtedly certain effectivenems In addiion ditches protecting railway staTAons Bilding digging activities going places Occasionally troops going hrough exercises c9unryside The final perhaps armoured which makes daily around Taiyuan special military railway encircling Within framework military situation described provincial government carrying drastic economic political policies which affect entire population under Yen control These policies product Yen active imagination Yen smoivesandobjectiyesareno simpleoamalyse buthe policies whizh instituted Shansi proclaimed radical progressive reform policies He familiar incomplete issues involved ideological struggle between Capitalism ComAnism economiC systerns writings prolific psAdo intellecal discussion these issues In these writings information understanding obvious inadequacies prevent formulat system He accepts thesis Capitalism should abolished because weaknesses injustices He asserts furthermore Communism substitute which developed The principal rouble Communism methods wrong As result program which common believes Communism which details something worked independently The manner which licies implemented enforced leads lieve ideological glamour which trieso clohe camouflage emphasis ideological angle It difficult whether these policies temporary measures ramgepolicies because versation assert breath policies designed specific curren conditions Shansi while breath suggest somewhat coyly possibly would soluiom China world presen problems He modest In respects Yen policies appear merely eflort Cmmuniss using methods logans catch phrase He borrowed freely He shrewd recognizing sizing ppular radical reform program It Chinese appeal underestimate Cemmun unlike Clne power appeal The People Economy Ching Chi Soldier Farmer Unification Ping Nung Ho Yi programs embody major elements Yen economic policies The former designed applied Taiyuan urban conditions wheras latter rogram rural areas The Sidier Farmer Unification present directed Po Y hsiang admittedly Was begun method increasing number available active military service This seems least imajer objectives present The essence progra theery follows All agricultural istriuted The government neither expropriates Land owners their decide In short indirectly nationalized indirect The basis distribution bitrary Yi Fen Ti which theoretically large enough suppor persons would normally require The average about forty One roughly sixth Six these units combined large Yi Ta Fen large assigned bodied between physically These mutual organization H Chu Hsiao Tsu One active Another reservist since rogress regular apresent The remaining members People Self Defense Army responsible farming whole large collective manner supporting families In third bodied drafted other thirds militiamen Po Y hsiang incidentally think system should peacetime pulsory industrial service substia compulsory military service The active duysserve three years years certain cases depending military service after which replaced others cultivation rotated among Since largentis heoreic which would require twelve there assistance their family members above below limits heory scattered among units needed The tribution process supposed accomplished possible accordance needs decisions villagers Provision program officially outlined continued paymen government fixed landowners Land divided seven grades supposed rates fixed grade highest being unfer produce lowest fortieth Bh taxes theoretically msimaed produce minus amoun necesaary sustain eight persons Thi arbitrarily family those comprsxng producing consuming persons vernment relief Special adnistrative bodies required carry Soldier Farmer Unification A meeting village supposed member Soldier Farmer Committee Ping Nung Wei Yuan resp9nsile carrying program The responsibiliti members defined follows village politica orgaaization people mutual organ izations local defense corps representative families judge value agricultural echniciam edmcational advisor reliof advisor In addition provision yoting woman member The eople Economy which effect dinting economic crisis Taiyuan present directed Wamg Ch chief provincial conomzc Control Bareau eqmally compZehemsive rogram Taiyuan subarbs IZ includes rationing basic necessiles price control establishmeut cooperatives regulation consumptioh limitation profits interest prohibition speculation control Z housing A Separate special organizational established program A consultative conferences Tsuo T Hal composed family heads basic geographical districts assisted representatives higher authorities They supposed weekly discuss proposals suggestions They People olization Committee Jen Tang Yuan Wei Yuam Hai liaison higher authorities The responsibilit which scheduled monthly meetings enforce policies The People Economics EmecuiveCommittee P ingin Ching Chi Chih Hsing Wei Yuan Hui Presided 2ayor Taiyua eighteen members elected administrative districts inside districts outside various population groups merchants laborers farmers faclry workers defense odies women Under Executive Committee Standing Committee members Secretaria committees breaux Investigation Control Cooperatives Price Control Labor Distribution Housing Bilding Contrl People obilization ohers In heory reaux heads elected representative called People Representative Assembly hemselves appoint breau employees These buremmx adminiser various aspects comprehensive program The cooperatives established under People comomics consumers cooperatives Ninety cooperatives cloth sixteen suburbs necsi excep In additien there eight Supply Demand Stores which miscellaneous goods handkerchiefs These cperatives byrem eccasiemally directly governmeu casef Nembership farmers heoretically optional present costs CNC Yuan Fapi below A person twelve years share children twelve share children under fourth share amoun ge9ds which purchased fixed category A person belong cooperative furthermore cooperative member heoretically entitled which legally entitles market The necessities handled cooperative supposed rationed subject maximum price limits arket where priges raised government consents requests merchant groups reasonable profits considered percent allowed Officials privately admit however marke controlled complete strictness For raionin6 purposes divided categories military Military personnel first grade ration others second grade amount prescribed basis daily quotas A unlquerent system established program All buildings diwided categories residential commercial divided seven grades Rens fixed governmen terms Yuan Fapi original legal tender hypothetical circulating monetary devised It oriinally designed application abandoned except fixing The Yuan Fapi based value No cotton cloth Taiyuan Such present costs CNC Yuan Fapi should equvalen CNC Actally however government arbitrarily departedfroheir formulaand setia CNC O00 hereby single stroke eliminating thirds received building owners According government monthly residential housing highest grade I0 lowest grade comerclal housini highes lowes All colleced government directly bilding occupants governmen keeps eighty percen commercial rents percen residential The governmen heoreti cally money constructing housing projects which handred units On remaining percent imposed relief landlords house owners The balance supposed returned owners This means propery owner legally entitled maxima fifean percen commercial buildings fifty percen residential bildings government fixed accep greatly undervalued exchange based ficitious monetaryuni Interest rates controlled At presen maximum allowed Io percent erest This comprehensive economic program unique Shansi could carried special unusual powers The Shansi conomic Control Breau added provincial administration I recognized authorized Central Government effect gives Shansi economic autonomy which provinces allowed I another example special relationship existing Yen Central Governmen recognition facto autonomy In addition Economic Control areau special Shansi bdies which exact counterparts elsewhere country Taiyuan moreconveniona administrative bodies which comprise provincial mnicipal governments In general bodies provinces cities China beven Yen individuality asserts itself The Pao Chia System standard administrative system adopted C enral Governmen whole country Yen another system which similar waysbdifferen specific deails Until recently Shansi given special dispensalion peculi stifles regard inohers province heoreically cuged oconform paern Yen system acaally still effect however Yen samed Ts System I basis administrative organization rural areas province The smalles administrative composed larges I composed twenty families The village EVeryng including level organized governing Above however hsiang embracing tousand families hsien county which administrative units power imporauce filled provincial government appoint In Taiyuan itself system little differen The smalles courtyard Above chieh lierally street later being equivalen hsiang The largest district which sixteen inside eight suburbs The conventional level provincial bodies headed appointed responsible Executive Yuan Nanking I clear details actual practice these cases tthey Yen These include Governor Yen himself commissioners Provincial Commission Four these heads Boards T Civil Affairs Finance Education Reconst ruction Below Ch ecretariat Police Treasurer__Auditor Statistics Social Health Cilgf ighways Opium Prohibition Water Conservancy former chosen Governor appointed Nanking latter purely provincial officers responsible Governor water conservancy Board Reconstruction Some numerous special bodies which Yen carry programs officially recognized Nanking makes necessary certain amoun financial chicanery Yen He depends notes considerable financial support Central Government Because allowed branch Central Bank China established Taiyuan which allow before In parls China looked sronghold conservative reactionary supporters government In Taiyan however because important olerated becausei iporant Central Governmen agency suspiciously being almos subversive Is officials uncomfortable unwanted Praoioally function however siphon Yen Shansi Provincial Bank which handles province monetary affairs Every Central Bank China brings large money recently about CNC billion month which given Central Government subsidy troops salaries officials employees provincial overnment bodies which recognized Central Government The current basis puting themonthlyotal asalaryindexof governmen aries China adjusted periodically according living index salary index figure mulipled basic salary figure actual salary foreveryone except civil officials eployees within Taiyg_an itself index latter being because living Yen however acally everyone basis figure money thereby saved employees unrecognized Central Government The Central Bank China incidentally money province The CNC billion which Central Governmen Dire Breau office Taiyuan currently collec month income commodity hardly worth bothering about Shansi Province doesn Central Governmen share Tax receipts specifies national sates description theoretical policies Shansi governmen various bodies which administer indicatiOn really people province affected Tha another different On paper being sounds fairly progressive terrible chasm heory practice major policies redistribution effect disastrous average people Yen Shansi acually police ruled I place neastarvaion despair These assertions supporting evidence There plenty cntacs official visitor collecti people Interviews people usually conspiratorial atmosphere however toaavoid exposing undue personal I specific examples souEces I about describe facts fr0ssources which reliale The Soldier Farmer UnificaLon together taxation which accompanies imposed aterribe brden farmers Yen territory reported almost universal position There reasons system unpopularity The assigned units often capable providing support number people Who depend The levying cases based aoverestimate probable production underestimate probable depend Persons outside group deprived their means existence these persons often farmers cases aczally which taken Farmers dislike being shifted arbitrarily piece another The local villagers often voice divided apportioned Furthermore naral conservativeness farmers makes disapprove principle system which organizes their existing prevents acquiring which their forces every years This perhaps S hansi might elsewhere percentage enancy relatively Despie objections however system bearable government taxation policies ruinous Officially claimed taxation based Central Government gulations which these regulations described Shansi officials permi light iself For every twelve adjustments provided different qualities provincial authorities maylevy sevenunaZe about sixteen pounds direct seven forced loans which payment indefinitely deferred twenty CNC byheauthoriies whichmayeemporarilydeferred andhereby depreciated currency Of straight direc thirty percen supposed Central Government fifty percen hsien government wenty percen provincial government The chief Shausi Land Bzreau admits under ystem farmer receives CNC amounts value about receives taxes amoun twenty This unreasonable however In practice hough whole system ignored evezthing ezcept necessary existence taxed In cases evenslimit exceeded The hsien authoriLes forcezlly carry decisions provincial Board Finance various cilectLng agencies farmer recourse If farmer cannot demanded persona possessions grain gowernmeno If farmer surplus after regular paymentofhisown taxes variousme dsareusedodeprive_himof payhe neighboring farmer One method cannot Another payment cloth maches cigarettes force When grain usually undervalued exchange commodities overvalued farmers difficulty convering commo dities money which Sometimes farmer grain surplus simply requisitioned wihou niceties One resul these axation policies considerable number farmers abandoned becauseiis fitahle relnrns which small support belween Taiyuan Taik elsewhere Partly result these facts situation civilians Taiyuan region ofSsiunderYis extrely ereil someresp ficialfe nowyf msaresn besubsisnonnssuchassksofEaolig wheacf dundupcco Thefoodsrgeisno energyflcilycreaed byhe6over saonlicies ausehewas severedroughinheproncelasyewch recehecpInsomeareasbyfiftypc rnflwas under inches wchisautfivghofno largely responsible plightofhefaersOfcisat miliryruirs comefirsdst bemetredless otherconsideraons T CofSf saystrai llery stocks wchdsSepber wihoureplis rvest ofici sckswilllastvaryfmoneeyears SomepplebelieveY strippin countryside prevent Costs anyng thsthe ispilgup foodscksa costfor alngsiege Afpplebelieveheiscorneringallnea profi sellingi later It impossible however tofindouwtsacalscksare fortsarebeingde though bringinnbyrforciviliuse dsomesbeo ughitiscoeeyinadequateo meetcili needs Alhough people acAally sarving death local doctors dangerous signs widespread malnutrition creasing Whether people starve depend Spring crops government taxation policies future The crops April June prospects being unusually March snows which brough needemos1reaagoo buhefarmers areverymuchafraid collecors arrivea harves I regard I criti si1ation General Yen radio address people I arrived Taiyuan He announced erriory needs worry about ration Spring arrive leaves grass satisfy This however araction farmers wheat kaoliang mille beginning their bthere already known cases people reduced eating The People Economy complete failure pointo Shansi citizens Soldier Farmer Unification results mixture The cooper ative prices below market price level For example price millet kaoliang exactly market price The March cooperative ration however provides fifteen supply cooperative embers somehow obtain remainder needs elsewhere various One regard cooperatives furthermore coplee reail sales monopoly achieved private copetition eliminated government ipulate prices This indicates sorto attitude people oward government General price control completely unsuccessful however Prices commodities Taiyuan Peiping They probably highes North China Actual interes above theoretical maximum The average loans percen The existence black market siderable proportions destroys effectiveness rationing disribating existing supplies commodities equitably Private monied classes almost wiped Yen licies In practice owners agricularal receive Owners property sometimes receive almos nothing Business compete unequally governmen monopolies contend government controls strictions Taiyuan Still considerable general economic activiy because center government owned industry outlying towns stagnating Taiku H H Kung example It formerly banking center Shansi Shansi reputation providing China bankers Iwas Tday sutered bsiness establishments sreets Bnildings streets almost everyhi Taiku Taiyuan itself repair Private entrepreneurs making money under these conditions Nonetheless periodically reques contribute specified money government Because things those leaving province All these economic facts partial picture which people affected Yen regime Government contr interference reach almos everything tices police state accompanied police state trappings Everywhere groups women being publicly lectured drilled given political indoctrination Passes required almos activity travel difficult bletofOr oOneonesbtess enter oFrTae guarantors willing political reliability additional foodstuffs enezshe householdusmake complete ailed reports police visitors Political slogans which people memorize almosZ displace commercial advertising walls buildings Political meetings compulsory aendance frequenlyo People subjec forced labor wihou recompense Groups laborers building pillboxes digging renches airfield Yen bilding closer existing Sometimes entire population village cityms perform forced labor Pracically actiwiy I reach labor gangs railway brick carrying women childrem An order issued everyone carry hndred bricks within period certain brick piles secified where pillboxes This counted unpaid labor which everyone legally required perform governmenZ Arrests people suspected political diioyaly requen arbitrary And dreaded secre police force reaches privacy virally every indiwidual Freedom speech nexis because gzumbling criticism leads polical motives hough control objective governmen propaganda Teachers schools gradually being given special doctrination An Central Governmen exSbooks replaced provincial books which language lessons based People Economy Soldier Farmer Unification Shasi Universi heoreically national insiion reputation within province political demon sraions sweep country Shansi University sdens spicuously quiet academic sTmdards insiion The recent innovation however Self San Tzu program consisting Self Purification lierally Chinese whitening Self Defense Self Governmen Self Purification program I handled Liang Hua provincial commissioners reputation being Yen srong secre police Every woman child thirteen within Yen erriory through process It consiss three stages altogether hours every period hirty There sligh variations number allotted stage generally about The stage political indoctrination The second confession during which individual relate everything whichmigh polihtiCal significance since hirteen since Com ativiies Shansi The final stage Tu Cheng Common Struggl began which people accuse sentence punish those gUilty collab oration Conists The process carried small groups members village administrative district The objective meetings Communist sympathizers collaboration sympathy Couniss crime which process designed uncover A person confesses repents however supposed forgiven hrough special training course The unrepenting criminals seuenced general agreeen group The sentence usually death beaing sticks Liang other government officials cluding Yen blandly explain spontaneous thusiasm people popular justice cannot inerfered overnment somewha crude Acally indisputable meetings planned acheduled directed manipulated government Special authorities handle I myself univied spectator meetings iolen managed identified ribbon badges eained managerial duties This popular justice including Tou Cheng rrowed directly Communiss other aspects Yen reforms I works Communis territories Yen region primitively medieval In effect dmces reign error A person never knows might accuse disloyalty grounds otive Not suicides suicide attempts resulted simply srain process evidence which I local hospitals The acSual number sentences killings probably relatively small number people involved considered large enough impress population whole Om particular example hnndred persons beaten death aevaral villages vicinity Taiku In brutality heightened villagers other group members forced beating themselyes One explanation policy undoubtedly government Communist underground acivit infiltration Yen himself apparently almost onfidence loyaly suppor eopleo In somewhat amazing relia suppor follows In Communist erriory seventy ercen people actively support Co mmuniss because offered material rewards other thirty percent support because coercion In territory seventy percent attracted Cmmunists percen politically apathetic If difflcul where leaves Yen He si1ation changed reawakening people which policies presumably designed bring about It people Yen erriory contact ConSSo This surprisngo Inr against Japan ofSiwasundheCois elaonof ested beaut0 byauto teees iprewarize thesencoers wereatonemein areas undersconsul herre numbers rgees coaeovfCosriry In exple outof1personsinlved 140coessedsoNepascon nonwihheCosts Inonere ouofa 7datoneze beenbers theConistPary thsdhd office under Coniss Self prois Y uncover suppress orfghawaysloyal elects A regime Yen evoke popular suppor enhnsi Iis somewha surprisin indications active underground opposition Communis endencies Personswih close contacts among people explain people Comnniss Yen regiae possibly One indication sream refugees comin6 A relief representative Taiyuan sates refugees camped around aiyuan perhaps whole under Yen Sories emanating refugee groups foreign missionary recently released Communists indicate Communis regime Shansi presents desirable alternative Yen Their policy described Communist Party member refugee offer little average farmer This particular reduced wenty small Shansi which compared probabl average distributed bodied under Yen system Communist propaganda Shansi government undoubtedly effect people It strong often crudely pornographic representation Communist orare The people Shansi caught between devil The opposition group Yen erritory seems dueoonly degree police absence rallying point opposition Yen regime Throughout repor I constantly referred Yen Yen government One reason necessity distinguish under control Communist areas province Another reason however government erriory under respects Yen personal domain The Tuclre power hierarchical pyramid Yen occupies The power final decision highly centralized persons Yen finger every Despi robust active sonal decisions maters detail which different government would deleg executive lieutenants subordinates espite absolute supremacy however Yen importan close supporters supporters depend completely Yen livelihood position whatever power The broad Yen support political This party organized IAnfen during retrea Japanese called Revolu onary Oorades Party Min Ke Ming T Chih Hal It claimed total members which Yau territory present Yen officials party connected uominang connec ionappears tobetenuousandnoveryimportantevenhouhiis embers Comrades Pary aoetimes simultaneously mebers Euominang The Kuomintan iself branch units Yen members really orphan oranization withou power embers ureaucracy numerically saller closely coreo group suppor Yen because these dependents Yen almos every qualiy group dificul judge A close gwveent circles claims however group certainly taint corruption This claims circle officials around Yen probably fairly clean respec because under viilan surveillance Yen asserts Yen himself accunnalaed accunlain personal wealh outside province officials breauoras profiing corruption small scale It significan complete provincial accounting publc The inner circle Yen suppor somewha rayserious group called hireen Kao Kan which loosely ranslaed bosses This informal group which advise Yen imporan policy existence secre alhouh somewha secret people Iisnoenionedbygovernmenoicials andiisdifficulto members Some thirteen eebers group virtue governmen position while others which sound raher unimportantbexercise power behind scenes A group ffiliaions various Comanists which explanation Yen eclecticism regard Counis mehods People Shansi venire Yen probable successor because present power eclipses subordinates successor being groomed probably grouP Be watching future I names Yang Ai Deputy Commander Taiyuan Pacification Area Wan Ching Sun Ch Chao Ch military commanders Kuo Yen Chief S Ch Hsi present absen Governor Hopei Province Wu Shau holds Pacification Area office Li Chiang Shansi Commissioner Civil Affairs Wang P Shansi Commissioner Finance Liang Ha Shansi Commissioner without portfolio poy_hsiang chief Land Breau Wang Huai Chairman Provincial Council which Taiyuan City Council elective purely consultative powers practical importance Meng Chi assistant Liang Hua Some people apparen Liang ranks closes Yen power influence The future Yen regime pretty question It pressed seems built Sand respects undoubtedly collapse itself Independent military servers talked Communiss could Taiyuan waned necessary effort costs would considerable spite qualiy Yen roops They reason slmnds Communis priority objectivem probably passed This belief Yen himsel officers officials frankly admit thinking terms offensive action against Commnniss Yen USo declare Russia immediately doesn mired saying Yen supporters openly assert third nevitahle would They believe defeat world Communism along withi Yen enemies Shansi Province If Comsnists decide seriousefo Imke Taiyuan earlier people expect present undoubtedly industrial empire located around Taiyuano This industrialization impressive accomplishment Yen regime It almost unbelievable large factories going blast shops containing hundreds machine turning complicated products surrounded mountains Couniss Almost industry Yen erriory Northwest Industrial Company government monopoly controlled Yen himself hrough board directors company P Shih Thisapis interesting organization started It supposed people enterprise The original capital prewar CP30 O00 OO0 theoretically su0scribed following manner Quotas stock shazes assigned hsien province people collectively purchased elected representatives stockholders Even according company charter however dividends distributed stock forty years On surface ridiculous should thatnecapitalcamedirectlyfromgovernmenfundsandhere stockholders reality All profits einvested company least openly distributed The company developed between period fifty factories During however Japanese occupied Taiyuan operated dustries ultimately removed total machines A presen thirty plans restore operating They employ about 25000 workers Production geared primarily Yen military requirements bsome consumers goods produced The company producs include following steel cement chemicals leather goods paper matches cigarettes alcohol woolen goods cotton goods flour Amazingly enough ocomoive completed Although industry pressive meals heavy industry which asunding Shansi richest deposits China Proper necessary materials steel industry except specialized alloys within radius hirty kilometers Taiyua A presen daily production respectively In addition machine presen being Taiyuan produced basis Japanese German U S models The echnicians Northwest Industrial Company cidentally Chinese seven fugitive Nazis serving echnical advisors fairly large number Japanese echnicians mechanlcs As loophole I Japauee uniforms insignia streets Taiyaao They appear completely accepted Chinese without resemmen There apanese newspaper Officials rmmors apanese seing troops under Yen official sources assertha In connection Northwest Industrial Company activities fanaslc import export going commercial carriers beweem Taiyan other Nationalist areas Imports include materials cotton obacco specialized goods steel alloys Expozts include chemicals steel products cement shipped The operating indmsrial center Taiyuan could extremely valua arsenal C9mniss might inspire their atenion toward Taiyuan sooner people expect particmlarly successful their curren military paigns surrounding areas For present however Yen Hsi still rules Taiyam His character complex sided In respects appears noable surviving relic China warlord In other respects superficially shows surprising modernity He professes reformer possible convinced himself reforms progressive hough isounaware least ragic results policies ersonally charming delightful If aspects character confusing however thing absolutely clear He extremely shrewd Some people suggest terms Colonists Alhough seems unlikely Cmmunists would probably alliance espcially since running their Yen amenable Yen imaginatien disappeared tricko seeve A knows arshal Yen years closely associated egotism personal power increased during years It doesn likely disappear Shansi stage possibly EVen curlain thirty seven performance forgotten imprin ammof indelible years Received New York