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foodstuffs. But we shouldn't forget that during the war
also China got along without imports of food from the
rest of the world. In other words, by taking a lower
standard of living they can survive. Now that is a situa.
tion that the Commies are taking over. Their program,
avowodly, is a program of Industrialization. They say
they intend to raise China from an agricultural to an in-
dustrial state rapidly. Some of the more hopeful of the
party leaders speak of 10 to 15 years; others speak of
longer periods. They have not attempted to socialize or
communize the whole economy. What they are doing is to
introduce what might be called a mixed economy. They have
taken over all the enterprises which were formerly in the
hands of the National government, and that covered a good
sector of the economy. They are also confiscating what
they call "buregucratic capital", which accounts for
another substantial part of the economy. But they say
that they intend to protect and encourage private enter-
prise at the same time, and their reason is very logical
because they say production comes first. That is the
emphasis of their whole program.
MR. STALEY: Would you explain at that point what
is ARCHIVES "NATIONAL RECORDS SERVICE" AND
they mean by "burecucratic capital"?
sovennent
LIR. BROWN: It has never been carefully defined, but
it appears to mean the enterprises owned by the Chiangs,
the Kungs, the Sungs, and the Chens. They speak of the
four bureaucratic families, and I presume there are some
fringes around that too which they include. In that
connection, they have said that they intend to respect
the private ownership of shares in enterprises which are
jointly operated by government and private capital. In
fact, what they have done up to now has hardly been en-
couraging to private enterprise. That may be because of
circunstances which they couldn' change, but there has
been heavy taxation and, of course, there has been a stag-
nation of business due to the practical cessation of
foreign trade and to the blockade. There have been labor
difficulties affecting both foreign and Chinese firms.
The Communist propaganda, of course, led labor to believe
that it would definitely have the upper hand and there
are indications that even the Communists themselves may
be somewhat disturbed at some of the excesses. But in
any case two very important difficulties, I think, must
be faced by the Communists as a result of the poverty of
the country and of their program as they have expounded
it. The first has to do with their relations with the
industrial
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"ocrText": "AT\n112\nfoodstuffs. But we shouldn't forget that during the war\nalso China got along without imports of food from the\nrest of the world. In other words, by taking a lower\nstandard of living they can survive. Now that is a situa.\ntion that the Commies are taking over. Their program,\navowodly, is a program of Industrialization. They say\nthey intend to raise China from an agricultural to an in-\ndustrial state rapidly. Some of the more hopeful of the\nparty leaders speak of 10 to 15 years; others speak of\nlonger periods. They have not attempted to socialize or\ncommunize the whole economy. What they are doing is to\nintroduce what might be called a mixed economy. They have\ntaken over all the enterprises which were formerly in the\nhands of the National government, and that covered a good\nsector of the economy. They are also confiscating what\nthey call \"buregucratic capital\", which accounts for\nanother substantial part of the economy. But they say\nthat they intend to protect and encourage private enter-\nprise at the same time, and their reason is very logical\nbecause they say production comes first. That is the\nemphasis of their whole program.\nMR. STALEY: Would you explain at that point what\nis ARCHIVES \"NATIONAL RECORDS SERVICE\" AND\nthey mean by \"burecucratic capital\"?\nsovennent\nLIR. BROWN: It has never been carefully defined, but\nit appears to mean the enterprises owned by the Chiangs,\nthe Kungs, the Sungs, and the Chens. They speak of the\nfour bureaucratic families, and I presume there are some\nfringes around that too which they include. In that\nconnection, they have said that they intend to respect\nthe private ownership of shares in enterprises which are\njointly operated by government and private capital. In\nfact, what they have done up to now has hardly been en-\ncouraging to private enterprise. That may be because of\ncircunstances which they couldn' change, but there has\nbeen heavy taxation and, of course, there has been a stag-\nnation of business due to the practical cessation of\nforeign trade and to the blockade. There have been labor\ndifficulties affecting both foreign and Chinese firms.\nThe Communist propaganda, of course, led labor to believe\nthat it would definitely have the upper hand and there\nare indications that even the Communists themselves may\nbe somewhat disturbed at some of the excesses. But in\nany case two very important difficulties, I think, must\nbe faced by the Communists as a result of the poverty of\nthe country and of their program as they have expounded\nit. The first has to do with their relations with the\nindustrial"
}