CHINESE REDS CHANGE THEIR ECONOMIC POLICY

Greymouth Evening Star, 13 June 1950, Page 8

CHINESE REDS CHANGE THEIR ECONOMIC POLICY

' HONG KONG, June 12.—Important reversals of economic policy in Communist China were seen in Hong Kong today, if the reported proposals regarding private enterprise are put into effect. Canton reports said that the State trading organisations in both Central and South China had been ordered to desist from all retail trading, except in food, salt, and cloth. The report added that, with these exceptions, the State trade organisations should confine their activities to wholesale and special trading. The orders follow within one week proposals by the Peking Conference that the Government should give 1 greater support and protection to private industry. The conference was attended by directors of the Bureau of Industry and Commerce from seven large cities. Reports state that instructions regarding retail trading were given in a joint circular issued, by the Regional Military Control Commission and the Regional Office of the Communist Central Committee, and were ; aimed at “readjusting” relations be- ; tween the State and private industry. I The circular has ordered the abohi tion of the co-operatives that are ; being operated by the armed forces i and Government offices. It provided, I in certain conditions, for a return to the original owners of factories and workshops that had been purchased ; by the Government or by the armed ; forces at low prices, and it gave j other instructions in the interests of (private enterprise. Observers in Hong Kong speculated whether ’ this policy change is intended as being permanent or whether the Communists are appreci- , ating their own lack of administra- ! five ability and are prepared to use [ private industry until they themselves are able to operate industry and commerce efficiently.