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procedure, the elections in the Soviet Zone constitute not so much a point
of departure for new developments as the confirmation of the old. Thus
the general elections in the North have merely consecrated the status quo.
As a result of the plebiscite the People's Committees have dropped the
qualification "interim" from their title. The democratic facade was
recently completed by the addition of a "Council of Representatives" and
a "Peoples Council" as legislature, which masks but does not alter the
totalitarian regime. Otherwise no significant change can be found.
The transformation of the political and social institutions of
North Korea occurred in the opening stages of the occupation when the
USSR was liquidating the remnants of Japanese rule. In the course of
this liquidation, the Soviets took over from the Japanese almost all the
big industrial and financial establishments of North Korea. The control
of North Korean banking, transportation and heavy industry has thus been
vested in the People's Committees, SO that private enterprise is now con-
fined largely to agriculture and the handicrafts. The question of land
reform, which is pending in the South, has been settled in the North.
The USSR claims to have distributed 2,471,000 acres free of charge to the
tenants.
The USSR has undeniably taken the lead in economic and social
changes. A labor law was promulgated in the Soviet Zone before it was
enacted in the US Zone, and judging from appearances, the first two years
of occupation have brought great changes north of the 38th parallel.
These changes, however, have been chiefly in the direction of further
regimentation and closer state control. In the Soviet Zone, the indi-
vidual has given up his liberty for a rather dubious assurance of "social
security", so that after an initial period of enthusiasm for Communism,
the Korean people seem finally to have reacted against the USSR. Evi-
dence of discontent and apathy in the Soviet Zone is provided by the
official propaganda put out to combat the symptoms of disaffection. Such
observers' reports as are available likewise tend to confirm the impres-
sion that the USSR has become unpopular with the Koreans who live under
them. The Soviet-controlled police system, however, allows no opportuni-
ty for this general discontent to be expressed publicly or to overthrow
established Communist rule.
C. Current Situation in the US Zone
The rivalry between the Leftist People's Committees and Rightist
elements of the former Provisional Government in exile still dominates the
political life of the US Zone with the US attempting impartially to es-
tablish democratic procedures. Almost two years after the liberation the
Leftists are still demanding that the US recognize the People's Committees,
while the Rightists continue to work for the early establishment of an in-
dependent provisional government. Both the Right and the Left join in de-
manding the unification and independence of Korea. All South Korean
parties seem, moreover, agreed that the future Korean government must
nationalize the industries and redistribute the land. This Socialistic
I-7
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"ocrText": "SECRET\nprocedure, the elections in the Soviet Zone constitute not so much a point\nof departure for new developments as the confirmation of the old. Thus\nthe general elections in the North have merely consecrated the status quo.\nAs a result of the plebiscite the People's Committees have dropped the\nqualification \"interim\" from their title. The democratic facade was\nrecently completed by the addition of a \"Council of Representatives\" and\na \"Peoples Council\" as legislature, which masks but does not alter the\ntotalitarian regime. Otherwise no significant change can be found.\nThe transformation of the political and social institutions of\nNorth Korea occurred in the opening stages of the occupation when the\nUSSR was liquidating the remnants of Japanese rule. In the course of\nthis liquidation, the Soviets took over from the Japanese almost all the\nbig industrial and financial establishments of North Korea. The control\nof North Korean banking, transportation and heavy industry has thus been\nvested in the People's Committees, SO that private enterprise is now con-\nfined largely to agriculture and the handicrafts. The question of land\nreform, which is pending in the South, has been settled in the North.\nThe USSR claims to have distributed 2,471,000 acres free of charge to the\ntenants.\nThe USSR has undeniably taken the lead in economic and social\nchanges. A labor law was promulgated in the Soviet Zone before it was\nenacted in the US Zone, and judging from appearances, the first two years\nof occupation have brought great changes north of the 38th parallel.\nThese changes, however, have been chiefly in the direction of further\nregimentation and closer state control. In the Soviet Zone, the indi-\nvidual has given up his liberty for a rather dubious assurance of \"social\nsecurity\", so that after an initial period of enthusiasm for Communism,\nthe Korean people seem finally to have reacted against the USSR. Evi-\ndence of discontent and apathy in the Soviet Zone is provided by the\nofficial propaganda put out to combat the symptoms of disaffection. Such\nobservers' reports as are available likewise tend to confirm the impres-\nsion that the USSR has become unpopular with the Koreans who live under\nthem. The Soviet-controlled police system, however, allows no opportuni-\nty for this general discontent to be expressed publicly or to overthrow\nestablished Communist rule.\nC. Current Situation in the US Zone\nThe rivalry between the Leftist People's Committees and Rightist\nelements of the former Provisional Government in exile still dominates the\npolitical life of the US Zone with the US attempting impartially to es-\ntablish democratic procedures. Almost two years after the liberation the\nLeftists are still demanding that the US recognize the People's Committees,\nwhile the Rightists continue to work for the early establishment of an in-\ndependent provisional government. Both the Right and the Left join in de-\nmanding the unification and independence of Korea. All South Korean\nparties seem, moreover, agreed that the future Korean government must\nnationalize the industries and redistribute the land. This Socialistic\nI-7"
}