The Gisborne Herald IN WHICH IS INCORPORATED "THE TIMES". GISBORNE, FRIDAY, MARCH 31, 1950 RED GRIP ON CHINA WEAKER?

Gisborne Herald, Volume LXXVII, Issue 23217, 31 March 1950, Page 4

The Gisborne Herald IN WHICH IS INCORPORATED "THE TIMES". GISBORNE, FRIDAY, MARCH 31, 1950 RED GRIP ON CHINA WEAKER?

PJMTE Communist conquerors of China, striving- desperately to establish a working economy, face three major problems—terrible famine, the people’s disillusionment and growing resistance from the Nationalist-held coastal islands, The reports yesterday oil the rising temper of the southern Chinese at the high taxation, heavy food requisitioning, and resultant food shortages, and other accounts of increasing air blows at Communist-held ports and airfields, have put (lie China situation in a new perspective. While a full evaluation of the changing picture is difficult at present, the black shadows overlying the Red administration may yet vitally affect the American attitude in the Far East.

The terrible famine gripping almost the whole of the great North China plain is by far the most important and pressing of the Communists’ problems. Millions of people in nine provinces are facing starvation, thousands have already died, and disease is stalk-

ing in the wake of malnutrition. Heavy requisitioning of food for transfer to the hungry north, delivering of grain to the Russians, and land redistribution have accentuated the famine conditions

and unrest in the south. The suffering and deprivation have led to armed peasant revolts in many provinces—uprisings which despite Hie Nationalist claims are believed to be spontaneous rather than

Nationalist-instigated

Forced Loans Resented

The compulsory purchase of Communist Government bonds is another cause of deep resentment among the people. Everyone from rickshaw coolies upward must buy bonds, hut the purchasers regard them as exacted donations rather than investments. Basically the economy of the cities has never recovered from the disruption of the long Japanese Avar, and to this burden the Communists have added restrictive regulations and oppressive taxation which have crippled new business efforts.

The closing of Shanghai to shipping by the Nationalists and blockade has virtually stopped the economic activity of China’s largest port, Many Shanghai factories are idle because of lack of raw materials and trading is impeded by the high purchase tax involved.

While Mao Tse-tnng’s regime struggles to complete its economic stranglehold of the country, Chiang Kai-shek, the Nationalist leader, from his coastal island stronghold, has been rapidly improving his situation. Chiang, who was upbraided during the mainland campaign for the lack of will to resist, has been doing real and continued damage with his naty and air force. Moreover, he is reported to have improved morale on Formosa by giving the Formosans a greater share in Governmental affairs, stamping out corruption and black marketing.

Power For “Liberals” and “Reformers”

Chiang lias at last given “liberals” and “reformers” real authority. The Ncav York Times recently commended him for the appointments “of such ncknoA\dedged leaders ns IC. C. Wu, Governor of Formosa, George Ych as Foreign Minister, and C. IC. Yen as Minister of Commerce, and such skilled and imaginative military commanders ns General Yen Cheng, commander on Formosa, his deputy, General Sun Li-jen, and Hsuch Yueh, commander of Hainan Island.” The Chinese Nationalist gold reserve, which Chiang was rumoured to be keeping under his oavu control, is uoav reported by Formosan officials to have been transferred to the Premier. The reserve is enough to last more than a year at the present rate of expenditure. It is little Avonder under these circumstances that Chiang’s resumption of the Presidency recently was regarded in Washington more kindly than previously. Once the Communists boasted that the Nationalists Avere undermined more by the Avenkncss of their oavu basic economy than by the armies in the field, hut today the Reds in command are encountering greater difficulties in their efforts to establish a Avorking economy for the neAV China.