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4/9/1948 - Tiensin-an Industrial City by A. Doak Barnett

INSITUTE O F CURRENT WORLD AFFAIRS As0r House Hotel NOT FOR PUBLICATION Tion China April Mr Walter S Rogers InsOlenCe Curren World Affairs Fifth Avenue New York N Y Dear Mr Rogers I moving Eu I boged The civil developments weeks conclusion I should attemp illae North Chinas I Nanking where I I complete arrangements mving village sable region Th ransportaion problemhas ymied porarily Delegates National Assembly which opened Nanking monopolized ransporaionou eipingo Six ensin hoping I would trying south seemingly endless sresza sraglers Assembly continue aailable plane space I waiing hoping If delay conLnues I _maybeforced elongwayaround byoaviaShanghai My deour Lentsin although original plans considerable interest Although I impatien I spent interviewing persons government getting acquainted investigating present condiion trade lndastry I given access recent unpublished reports copeten eccnomic analyss information these reports supplemented I learned conversations interviews direct observ entsin great sprawling commercial industrial lyingafewmilesinlanfromheGulffP HalinNorth A small river Hal He outlets Taku Bar TangkN Hmgging banks sream wharves docks capablef accomodaing small ships bauks strech Westernized downown sections various cessions which consiA heart Like Shamg other major coastal China Tientsin modern economic development primarily stimulus foreign capital activity heterogeneous cosmopolitan mixture Western hinese elements Pre Tientsin Colorful cecker board British French Japanese Ialian concessions ogether special areas converted relinquished concessions other countries Russia rmany Austria central portions To north Chinese City symetrical square surroundedby broad srees which replaced original other areas under Chinese administration Today anachronistic checkerboard disappeared erased nisr_aive unification which place under Japanese relinquishmen special rights Western nations administrative organization unclear Chinese Tientsin Special unicipalit under Executive Yuan governmental srucre similar essential Peipin administrative districts place Of municipal dlviSions The facili1 available Tientsin Taku Bar Tangku alhough Tangku New Harbor started Japanese continuing North China singularly lacking harbors ensln natural North Northwest China Tsingao Serves Shang peninsula north Chinwangao serves limie hinterland mainly Kailan Tangshn practically speakin entsin serves remendous hinterland China between Shanghai Yangtze outlet Dairen Por Arthur Yingkow Huluao An1 anchmrlan outlets This includes North China Inner ongolia lesser western reions Sinkian fringes anchuria This mmand position natural cener China railway lines North China convere entsin extensive hinte1and normal times The Tentsin Pukow Nanking ailway connects Central China Peipin ukdenRailwaypasseshroughienlin connectingiwihanchuria andWhl leading Inner ongolia Secondary lines Zhe imporanZ areas N China ienZsin locaon transport facilities havemadeioneofChina foremostcenersofrade indusry modarn timeso Barges small still Hai Ho seamers Call TakU Bar angku continues presen activity amall compared years appointlmg potentialities ensin indirect casualiies civil China ensin import rigidly limited Central Governmen Rewlsed Foreign Trade Regulations November which provide regulation ofall China foreign Impor commodities divided various categories amounts which imported region Centrally allocated slnictly regulated system import licenses The allolaen these quotas imports Tientsin region which includes Chinwan6ao figure considerably below percentage share value China ip0rts In imports entsin limited percent Chlna Impos Salue whers before according U S Conmalae teatsin between percent The impor announeOd Yebru eertain categories including indetrial maerials limited kentsin percen commodities involved whieh r0uhly share ipored befere aodikes This system allocation entsin businessmen overnmen iously dlscriin gains aKains North China kenmn Heg Offlue Central evernem EKport lmpoFt dmited Syste Fesim discrmi nation there malio8 behind Some private bsinessmen howeYer tzikae motives discri nation Central vernment desire fawor business neress government iuials Shanhal areas ousde North NOh China Si recarious minimum assets should risked present The resenmen certain lentsln bsinessmen increased Imt O impor reion should relaed volumefi expor Alhough ensininhepashashadan surplus domes Icj coastal always surplus foreign people unfair allowed foreign exchange accumu exporo Al ouhensinsllmn nanexo surplusn sforn heov0iue Of impor raduall dwlnding The CNO value declared exports 47088 figure which relavely small conver U S dollars U S absorbed helargesshareoen Pors aounedoonly U 869817 comparison axors oheUoS wereoverU S 8liions scomparison alogeher because years exors below notably dpresslon S U U S llions figure below noral years U S lions ecvely U S U S iiions accuala warkme resul postwar Theosimor reason connuing process raclon afflicting kensin expor course sanwidening civil zones North China which Manchu hePeiping Mukden Railway currently hinchow reduced North China erland ribbons eXTiory bordering railway ensin Pukow Railway angkuan miles Tientsin Within weeks flare fighting Chahar northern Shansi Suiyuan Inner Mongolian hinterland The hinterland continues shrink ensin expor conknues dwindle Egg poduc formerly Nor Honan Sou Hopki railways Casings Eansu Sinkiang trade level before recen disruption She railway Paotow She colleclon Center Zrade Shelled walnuSs aajor export product Fen River valley Shan achofhisreionis nowinoanis hands andherest surrounded Comaniss Srawbrai important exportable handicra towns Shah Hpei Coamuni8 One sources expor prodcs In cases factors other disruption trans portation sariosly hindered trade For various c0lplicated reasons price early actally lower Tientsin Paoow As large amounts Wool estimated byinformedsourcesin antSno bebetween20Qnd40 lonpons accumulated northwest remain there unused The value exports ensln U S U S under percen The price Of skinin New York unprofitable expor Tientsin large scale likewlse almos eliminated world markes because price In square woven woolen carpes exported U S pared million square heyday The decline industry particularly severeblo wotheciy seconomy becauseiiSestimatedhahe industry direcly indirectly employed almes quarter million people ensin years A presen commod which Tientsin exportin bristles beans includin oyabeans skins caslns carpes nelgible amounts braid horsehair ermielli Chinese medicines In bristles alone percen value axpor beans accounted pereea skins percent caslns percent THe expor bristles large period virually presen mainainingensn important exporting Alhough gradual extensiOn Communis control spread flghin disruption ransporaion North China obvious undoubtedly imporan causes ensin decline srong definite opinion persons iensin Central Govern econo inerferauce regulation crippled which expected exisin conditions The large unrealistic between official black marke foreign exchange eause complain On black marke consan process CN devaluation governmen prining presses workinga capacity higher The black marke value denominations currency periodically appear foreign exchange keeps going reverse raiow presen offical foreign exchange periodically adjusted ughadjustments morerequen sincehe establish oficial market August I47 between official black marke never reduced realistic proporions The afeco large position fifty sixty Percen exports indirect subsidy similarsmounohosefavoredimporeswho granted import licenses One hears constant accusations discrimi nation allocaion licenses The prices Chinese expor therefore arifciallykepaanextremelyhighlevelin foreign exchange raders claim Wihou artifi price handicap expor producs during Tae resulting decline exports hinese emigran abroad further redue China resources foreign exchange which limits imports process which nward spiral Because facts businessmen government regulations which sincerely designed conserve foreign exchange allocate wisely needed essentials resul decreasing olume exports consequently dhrinking supply foreign exchange smaller volume essential imports Industry Tientsin affected factors crippling industrial rehabilitai since extremely addition sizeable industrial ensinm heJapanese during occupation invested large capital estimates which I heard probable value U S IO0 millions U S millio further industrial developmeno Although number major industrial plans which operated under Japanese tinued operaion expanded operaions compared intermediate smaller Japanese plans dlsmanled rened prospects effective uilizaion geing poorer month In cases enemy facorles Chinese overnmen private entrepreneurs dismantled scrap locaions Among factors whichh_have retarded those industries which tried operaing commence operaion material shortages rising costs labor power materials equipment financing further disruion inland ranspor addin accessahiliy materials inland markes andhe general rising inflationary spiral Alhough exis1ing impor quota licensing system supposed priorities capital goods essenlal materials abroad practice complicated mechanics system often hamper deliveries materials interior extremely difficul Normally example ientsin exile industry major modern facmaring industry relies almost completely Hopei recentlythas beenforced1obtain8opercentof1m requirements abroad The imporan essential material Which still reliably available adequate quantes Kailan mines Tanshsn These mines produced almos They compelled recently because productio exceeded capacity available railway rolling invenories almost unmanageable The adequacy supplies brighes induslial picre iensin compensate other shortages obstacles The largestproduction increases thepasyear beeni cotton mills which produced bales yards cloth The government owned mills which include larges increased production percen previous other indusries received serious backs For example january factories emporarily suspended oParaions closed compleely while veeable refineries forced close doors The imporan industry operating Tientsin present extiles almos entirely government owned Of co1on mills around seven major which Japa China Textile In asries Inc which under Ministry Economics Some local industries owned managed National Resources Commission Privateenerpris ishangingon however inheremaining imporan imdsries chemicals including caustic amniumsulphate andsal cemend tuissubeco continuous governmen pressure regulation inervenien Although governmen selling extile enterprises private business uring coming indica perhaps overnmen IciPaion bsiness increase rahar decrease A official bigges chemical company Tientsin overnmen repeatedly force control company rying The omnpoence relalvely omnipresence Central Governmen economic fields sleddlng rough private anerprise ensln since One reason failure local industry recover doubly disappointing Tientsin businessmen prospects private business seemed immediately after asinessmen believed industrial expansion resul1tng Japanese nes1aens ffered opormnities Chinese business I seems general JaPanese asses opinion however Japanese uphas already destroyed large extent dismantling disuse One major example ealsindustry Japanese which iswcepletel unused inperaiVeo An American Tientsin claimed cllctin anuacturing distributi systemoeciy economy disintegratedsinceheendohewar I visited large acory No Mill China Texle Indusiwies Inc Built Japanese spotless managed smoothly running I daily production wenty basis preen siderably hiher Japanese Bu I empty buildings smokeless sacks Idle factories suburbs which indication business depression revealed satisics informed local persons The presen economic depression Tientsin causes hardship bthereare signs unrest It particularly surprising labor scene according Chinese foreign observers normally quiet One reason owernmen following definite policy keeping wages placate labor Another Garrison Commander consan srict vigil military police authorities indicaions unres disloyalty among working class promp action indications occur A American businessman clair labor disputes decision municipal Breau Social Affairs final arbira Lon authority serious putes favor labor Nonetheless somewha surprising Tientsin which almost surrounded Communiss miles miles miles northeast contains largest concentrations industrial proletarians China laboring force seems almos Communis infiltration influence It sriking example differences emphasis methodology distinguishing Chinese Communis Party counterparts Western countries where urban proleia often basis Commnnism srengh Althoughhwo industrial labor force Tientsin receives preferential reamen regard wages large numbers unemployed persons refugees Zhe population growing influx refugees increased according municipal areau Police fiures million million According figures released within month national inisry lnerior Tientsin hickly populated China density square kilometer Everyone furthermore suffers ronic inflationary spiral which ubiquitous China Alhough inflationary forces severe Shanghai Peiping consequently ciies Taiyuan tkden during month alone price cotton clothn ientsin percent prices percent Drlng period black marke exchange U S dollars jumped percent Themos eriousproblemaffecingthemaninhesreehasbeen shortage Not Tientsin offfzom producing hinterland blast Springharwess percent below previous because insufficient rains summer crops completely losses The cause shorge owever milary areas recen reports indicate prospects neary Comnis areas large increases acreage percen permitted Noah China rural areas remained sufficient Tiensin Peiping become areas serious deficits During shortage became increasingly serious authorities increasingly alarmed In Cenral Government suspended direct commercial purchases fromforeignmarketsoconserveforeignexchange andalhouhiunder guaran North China would supplied cereals Yangtze Valley shipments delivered during latter In June Commanist Tsanghsien iportan grain collecing center south ientsin major source supply Grain supplies Inner ongolia began because requirements military forces By January alton becoming dangerously critical The machina which promises disastrous ai1alon month rationing which introduced already effec inShanghaiandwillsoonbeintroducedintoPeiping Nanking andCanon This program relaed efforts activities Of present S China Relief issien formulation deails ofheprogramook months planningandnegotia betweene ission Chinese Gowernmen Exuive Yuan ommission American Relief Supplies established special liaison Ale hough North China Regional Director ission staes rationingiselfisinended obeprimarilyapricestabilization raher direc relief measure spplemen supplies Tientsin preven Oeen crisis According ration cards distributed citizen iensin these cards entitle holders fifteen somewhat fifteen pounds flour month fixed monthly price The fixed price price flour before commencementa araefiveparcent belowhe marketpriceonhose One supply rationed flour provided China Relief Mission Oher Chinese divided equally between Central Governmen which contribute flour Yangtze Valley authorities Who contriate share The calls shipmen about commercis flour month ientsin supplement normal supplies obtained hrough channels which usual It expected normal supplies sufficien provide fifteen unraioned flour person Althoughhe ngofheprogramhasbeendelayedroms April deadline iniia shipments flour grain converedo flourne andronbookshavebeen received andheprograms expectedosarnafewdays The evenn heory solve problem highcosOfflourapresennhecy doesaack probleas overall supply price sahilizaion receipts ratoned Relief Mission various relief roecs Iring progrsm should lensn proble experiment people inssed Sh unworkable China continuance iaediate future ineraal sahili which marked contrast recent disorders reported SEa It uniclpal admini sraion praised Chinese oreign residents which doing serious pblems arising economic isolation sagnaiono Chieh Police Chief Li Han municipal leaders widely commended their efforts their accopllshents under awkward governmental whichmakes xovernment orphan branch Central Government There Seems little regret Tientsin regarding demise foreign concessions The Chinese I talked generally satisfied foreign governments longer position O discriminate against Chinese nationals country foreignars I talked Chinese nicipal auriies fnctioning satisfactorily governmen efficiency no_lOO percen foreign efficiency their opinion complaints foreign residents Tientsin dreced ainly against Central Government This resenlaen intense cases however A private written repor Several months asserted Chat economic discriminaion against forei groups gradually forcing liquidation foreign communitiesinensin hatiappearsomehatheimportant foreign minorities Crying Ahough people including Chi military 0flickers liked believe Comanists could Tientsin concenraCed Choir efforts Che moment impor military ativiCy around The Communists where On Che other however other areas which I visited personally recent there evidence Che Naionaliss serious hinking offensives counter offensives kilometer defense around Tientsin extimated CNC billions raised voluntary conriions Chinese Chamber Commerce local industries I0 others brick concreepillbox around perimeter These significan indications apParen defense menaly prevalent I oppornlty alkwh General Shan Kuan Yu Tso deputy Tensin Tangshan reion under lensin Garrlson Forces Army ensin Army Tangshan But iensin Garris Commander General impression ffensive action expected Naionalissinhellensinareaapresent Generalaelieves however haheCemmniss willleaeensin alonefer cemebecause heSays theyarenealified reafofkei administer Tis elief I alked Tiansin Sineeral yours Received New York