The ideological retreat was presented as concessions and evidence of Communist liberality. This is in keeping with the Pavlovian tactic of first depriving a dog-or a human-of practically everything necessary for survival, then restoring a little of it. A sort of animal gratitude is thus exacted.

These excerpts should be read with the Red doubletalk-Communist Englishkept in mind, in order to be accurately understood.

"In 1958, a new social organization appeared fresh as the morning sun above the broad horizon of East Asia. This was the large-scale people's communes in the rural areas of our country which combine industry, agriculture, trade, education and military affairs and in which government administration and commune management are integrated.

*

"Within a few months, starting in the summer of 1958, all of the more than 740,000 agricultural producers' cooperatives in the country, had reorganized themselves into over 26,000 people's communes. Over 120 million households, or more than 99 percent of all the peasant households of various nationalities in China have joined the people's communes.

*

"In the future, the urban people's communes, in a form suited to the specific features of cities, will also become instruments for transformation of the old cities and construction of the new, Socialist cities.

"The people's commune is the basic unit of the Socialist social structure of our country, which combines industry, agriculture, trade, education and military affairs; it is, at the same time, the basic unit of organization of socialist state power.

"People's communes must go in for industry in a big way. The development of industry by the people's communes will not only accelerate the industrialization of the whole country but also promote the realization of ownership by the whole people in the rural districts, and reduce the differences between town and countryside. According to the differing conditions in each people's commune, an appropriate part of the labor force should be switched, step by step, from agriculture to industry to develop, according to plan, the production of fertilizer, insecticides, farm implements and machinery, building materials, the processing and many-sided use of agricultural produce, the manufacturing of sugar, textiles and paper, mining, metallurgy, electric power and other light and heavy industries. Industrial production in the people's communes must be closely linked with agricultural production.

"The principle of combining education with productive labor must be carried out thoroughly in all schools, without exception. Children above the age of nine may take part in some labor to an appropriate extent *

"What we describe as getting organized along military lines means getting organized on the pattern of a factory. It means that organization of labor in the people's commune should be as organized and disciplined as in a factory or the army

"Militia organizations should be set up at corresponding levels of the production organizations in the people's commune. The leading bodies of the militia and production organizations should be separate and, in principle, the commanding officers of the various levels of the militia, such as regimental, battalion and company commanders, should not be concurrently directors of communes and administrative districts (leaders of production brigades) and leaders of production teams.

"The organizations of the Communist Party and communes should be carefully checked over at the same time to guarantee that the lead-personnel of the Communist Party and communes at various levels are activists loyal to the interests of the people and to the cause of communism."

APPENDIX IV

WAGES AND BONUSES

A description of the use of wages and bonuses-and the so-called free supply system-as pressure tactics in the communes to extort as much slave labor as humanly possible, can be found in the text of an editorial in the new Peking publication, "Red Flag." Here is the text, as put out on the Chinese radio March 15, 1959:

Various areas have regarded the solution of the distribution question as an important phase of work in the tidying up and strengthening of people's communes. Many provinces have suggested the adoption of the rigid rating and flexible appraisal method for the distribution of wages among commune members. According to this method, people's communes issue wages to various production brigades according to the wage scale already set up. The production brigades then appraise the work of each commune member, credit him with a number of work points, and pay him according to his work points each month. This method is derived from experiences of former high-level agricultural producers' cooperatives in work appraisal and work point calculation. It embodies the principles of "to each according to his work" and "the more one works the more one gets."

According to the Marxist-Leninist principle, the production system and the ownership system of a society decide the form of method for the distribution of social products. For a considerably long period to come, the people's communes in our nation will continue to be of a socialist nature instead of a Communist nature. Within a certain period of time, they will continue to be of a collective ownership nature instead of an all-people ownership nature. There fore, it is absolutely necessary to implement the principles of "to each according to his work" and "the more one works the more one gets" in the distribution of products in people's communes.

Implementation of the principle of "to each according to his work" can cultivate a good social attitude toward labor, facilitate control and supervision of production, make rational distribution of work possible, and help establish the responsibility system in production and the system of accounting and budgeting. It helps to develop production and to increase social products, benefits socialist construction, and prepares the requirement for the gradual transition to communism.

To each according to his work" means to use work as a yardstick for the distribution of social consumer goods. It is a great equality when compared with compensation without toiling. Of course, differences in income may still exist under the implementation of this distribution system. However, such differences are not the same as those differences which exist between the exploiting class and the exploited class. They are not the same as those differences between the poor and the rich as the result of class differentiation among the peasants prior to the cooperativization program in agriculture. The differences are of a little more or a little less income among the production brigades and their individual members as the result of differences in work quantity and quality, and in productive foundations.

Part of such differences may continue to exist indefinitely in a Communist society because men's needs cannot be the same. Part of them will be eliminated in the Communist society. However, all such differences must and should be recognized. To recognize the differences is to prepare the conditions for the gradual elimination of those differences that can be and should be eliminated in the future.

The elimination of such differences can be realized only through the equalization of the economic development levels of all production brigades, the great growth of the economy of the people's communes, the industrialization of the entire nation, industrialization of people's communes, and mechanization and electrification of agriculture. If we simply try to eliminate such differences by the method of equal distribution, we will make the mistake of equalitarianism and end up playing a negative and destructive roll in social production and the communalization program.

Under the principle of running communes diligently and economically, it is a complicated problem for people's communes to make distribution properly. The distribution problem deals with the individuals, collective, and state relations. In fact, it is a question of the relation between our party and the 500

million peasants. As production increases, both savings and expenditures have to be increased. This is the basic principle of distribution.

However, the increase in savings cannot be too great and too rapid; an appropriate ratio must be maintained between savings and expenditures. The party central committee has ruled that 90 percent of the commune members have to be guaranteed a somewhat higher income than that of last year and that the income of the remaining commune members must not be less than that of last year, thus setting the lowest limit. In the distribution of expenditures, a correct proportion between expenditures for collective purpose and expenditures for individuals must also be maintained. Furthermore, the portion for individual consumption should occupy an important position. The portion for collective consumption, too, must not be increased too much nor too fast.

The system of combined wages and supply of needs has been adopted for the distribution of that portion of expenditures earmarked for individual consumption. This system is the initial stage of the system of "to each according to his needs." We should vigorously protect and support the growth of such a step. However, a correct proportion also must be maintained between that portion earmarked for the supply of needs and that portion for wages. Just as it was stated in the resolutions adopted by the sixth plenary session of the eighth CCP central committee, the portion for wages will remain the main portion for a long period of time and must be increased at a comparatively rapid rate. The wage levels should maintain an appropriate difference but not too large a difference.

The editorial said: "Some people wonder whether or not there is a contradiction between the implementation of the systems 'to each according to his work' and 'the more one works the more one gets' and political leadership. This is, of course, a misunderstanding. What are politics? In the Socialist society of our nation, it means first of all to recognize and firmly maintain the socialist principles. It means opposition to rightist conservatism as well as leftist adventurism. It also means the correct handling of the internal contradictions of a Socialist society, the correct implementation of the principle of 'to each according to his work.' It is an important phase of work in the firm support of Socialist principles and in the correct handling of internal contradictions of socialism."

Of course, the implementation of such a distribution system cannot take the place of political ideology. Therefore, while being concerned with the material interests of the masses, we must also pay attention to strengthening our work on political ideology, stepping up Socialist and Communist education among the masses of people in order to unceasingly raise the consciousness of the masses, develop unceasingly the initiative and creative spirit of the masses in their work. Politics and economy should be united. The principle of conducting ideological education among the masses and the principle of concern over the material interests of the masses should be united into one. This is the only way to benefit the development of production, raise the people's consciousness, strengthen people's communes, benefit Socialist construction, and help the transition from socialism to communism.

APPENDIX V
CHINA TRADE

J. M. Jumabhoy, Minister for Commerce and Industry of the Singapore government, made this revealing declaration in a speech to the legislative assembly there on December 3, 1958:

"I must take this opportunity of correcting some misimpressions that might have been created in the minds of the people of Singapore by certain statements alleged to have been made by the trading agencies in (Communist) China in their correspondence with Singapore merchants, as quoted in press reports.

"It has been alleged that the reported suspension by China in certain lines of exports to Singapore resulted from certain discriminatory actions of the Singapore government. The only action by Singapore that could be construed as such was the ban imposed last month at the request of the Federation (of Malaya) Government on imports of certain types of textiles.

"If we are looking to a merger with the Federation, it is the clear duty of any Singapore government to do its best to prevent the undermining of the Malayan economy. The step taken by Singapore government at the request of the Federation Government to temporarily safeguard their textile industry is not, therefore, a discriminatory step against China as such; but a step taken for the benefit of the Malayan economy as a whole.

"It might bear a little explaining why this step was taken against the particular type of textiles only from China.

"It is quite apparent that the trading policy of China is strongly influenced by political considerations, as is evidenced from the fact that China has been selling these goods below the comparative producing cost of countries like Japan, where there is a high degree of automation and labor is cheap. In fact, China has been able to underprice her goods even below the cost of Hong Kong producers who have had at their command cheap refugee labor.

"It is apparent, therefore, that China's policy has been to dump its goods in certain markets at a price which has no bearing on the cost of production, in order to undermine the industries of certain countries. ***

"Fair competition in trade has always been encouraged by the Singapore government but where undercutting with political motives results in damage to the Malayan economy the government feels that it has an obligation to the Malayan economy as a whole, even though the particular industry concerned may be located in the federation.

"In short, while the Singapore government has no intention or wish to hamper trade between China and Singapore, it is its clear duty to see that such trade is not to the detriment of any of our industries or to the Malayan economy as a whole, and this not only applies to China but to any other country.

"To blame the Singapore government in the fashion reported by the press is therefore a clear indication of China's desire to make political capital out of what is purely a step dictated by economic necessity to Singapore.

APPENDIX VI

EDWARD HUNTER-A BIOGRAPHICAL SUMMARY

(Permanent address: 64 Webster Ave., Port Washington, N.Y. Telephone: Port Washington 7-4514.)

Author:

"Brainwashing in Red China," Vanguard Press, Inc., New York City. "Brainwashing: The Story of Men Who Defied It," Farrar, Straus & Cudahy, Inc., New York City.

"The Story of Mary Liu," Farrar, Straus & Cudahy, Inc., New York City, and Hodder & Stoughton, Ltd., London.

Fifty-page historical and biographical preface for U Nu's five-act play, "The People Win Through," Taplinger Publishing Co., 119 West 57th St., New York City 19.

"The Past Present: A Year in Afghanistan," published March 19, 1959, Hodder & Stoughton, Ltd., London. (St. Paul's House, Warwick Square, London EC 4.)

"The Black Book on Red China," Bookmailer, Inc., $2; 209 E. 34th St., New York City 3.

Excerpt from his biography in 1958-59 Who's Who In America:

"Hunter, Edward, foreign correspondent, author, born New York City, July 2, 1902 * Reporter, news editor various newspapers including Newark Ledger, New Orleans Item, New York Post, New York American, reporter Paris edition Chicago Tribune, 1924-25; news editor, Japan Advertiser, Tokyo, 1927; editor Hankow (China) Herald, 1928-29; Peiping Leader, 1929-30; covered Japanese conquest of Manchuria, Spanish Civil War, Italian conquest of Ethiopia, International News Service, 1931-36; pioneered in revealing brainwashing, introducing it to written word; consultant USAF, 1953-54. Served as propaganda warfare specialist, morale operations section, OSS, AUS, Asia. * * *”

In interview form, he is the author of the publication, "Communist Psychological Warfare, Brainwashing," a consultation of the Un-American Activities Committee, House of Representatives, Washington, D.C., on sale by U.S. Printing Office at 15 cents.

Contributor to numerous magazines, as: Coronet, Esquire, Reader's Digest, American Legion magazine, Harper's, and so forth.

Lecturer, consultant.

At close of Mr. Hunter's testimony at congressional hearing on pressures against the mind (brainwashing), June 19, 1956, Senator John L. McClellan, chairman, said:

"I am sure your books and your writings and your experience will be very valuable if we can get all that before the American people."

APPENDIX VII

The following translation of an article in a Yugoslav paper, on the subject of Chinese communes, was received by the subcommittee subsequent to the hearing at which Mr. Hunter testified on the subject and was ordered by the chairman to be printed with the hearing record:

[From "Der Aktuelle Osten," published by the German Committee for Peace and Freedom, Bonn, Germany, Apr. 4, 1959]

LIKE THE SLAVES OF PHARAOH

Yugoslav eyewitnesses on the industrialization of China

Through the precipitate conversion of the collectives and production communities into so-called people's communes in which many thousands of persons are merged in production units, symptoms heralding a crisis have emerged, forcing the Communist Party of China to slow down the conversion process, grant certain easements, and draw the necessary political inferences. Among the latter is Mao Tse-tung's decision not to run again for the post of President of the state. While only few reliable details on the state of the people's communes are available, an article by the Yugoslav professor, Maks Snuderl, which was published in August 1958, by the Laibach newspaper Slovenski Porocevalec, provides an insight into the development which led up to the establishment of the people's communes. It is the report of a journey which Professor Snuderl wrote after his return from an extensive tour of China. In the following, we are bringing some excerpts from his article:

On viewing the villages of China from the train or the car, one notices at once that there is a scarcity of beasts of draft. The ploughs are drawn by human beings-men, women, and children. Moreover, there is little cattle and consequently neither meat nor milk are available. The houses in the country are built from mud: four walls, a roof, and an opening for the door. In these huts men and beasts are housed together. In the rural districts it is not possible to provide sufficient clothing for the population; thus, the people are either dressed in rags, straw garments, or are more or less naked. Here the enormous backwardness with which China has to cope becomes evident. A foreigner who, for professional reasons, has been living in China for many years and traveled a great deal around the country, told me that the backwardness in the rural districts was so enormous that the people had not even reached the transition point from primitive man to civilization.

"FIRST PROVE YOURSELF A COMMUNIST THEN YOU'LL BE AN EXPERT"

The continuous growth of the population for whom already at this point there is not sufficient food available, explains why so much attention is being given to the national economy, and in particular to production. This problem ranks above all others. Nowadays, all production means in China are in the hands of the state. There is no longer any privately owned real estate, and no production business is conducted along private lines. Thus, a ricksha coolie belongs to a cooperative, and the rickshas are the property of the state. The state apparatus governs the entire economy. It is a typical system of state capitalism with a highly developed bureaucracy. Every Chinese must act according to the directives of the state and party functionaries. Nobody is allowed to own any personal property; all must live modestly and keep on working— though not according to their own ideas.

There is no such thing as criticism or independent thinking. Party orders are indisputable laws. Whoever has his own opinion departing from the extremely primitive Stalinist catechism must register voluntarily for physical work. As a rule, university professors and intellectuals need only furnish proof that they are Reds to be appointed "experts." The governing slogan is "First prove yourself a Communist, then you'll be an expert." Every academic course entails physical work for the professors and the students. Physical work is regarded as essential for reaching full understanding of Marxism.