Foreign Relations of the United States, 1946, The Far East: China, Volume X

Nanking Embassy Files, Lot F79, 861 Agricultural Mission

Memorandum by the Agricultural Attaché in China (Dawson) to the Ambassador in China (Stuart)⁴⁰

[Shanghai,] November 25, 1946.

Subject: Information Received from Dr. T. H. Shen of the Ministry of Agriculture during Conferences in Nanking on November 21 and 22 on the Subject of Programs To Be Initiated As Soon As Possible to Carry Out Important Features of the Mission’s Recommendations with Comments Thereon Relating to Action.

Reference is made to the letter of Dean Hutchison to the Ambassador under date of November 19 emphasizing certain features of the Mission’s recommendations as suitable for immediate action to obtain early results. These proposals relate to the following lines:

1. agricultural credit;

2. land taxation;

3. farm tenancy;

4. agricultural extension;

5. chemical fertilizers;

6. irrigation.

In order to follow up the matter closely, I came to Nanking on November 21 and had two long conferences with Dr. T. H. Shen of the Ministry of Agriculture and Forestry. I was pleased to find that he had gone ahead and drawn up a tentative outline of an extension program which he has been discussing with the Minister and which can soon be presented in its final form. This outline with a brief statement of points Dr. Shen considers important under the other subjects mentioned above is attached for the Embassy’s information.

All the other subjects beside extension, including agricultural credit, land taxation, farm tenancy, chemical fertilizer and irrigation, concern other ministries or Government agencies beside the Ministry of Agriculture and Forestry. It is therefore hoped that the Executive Yuan as soon as possible will direct the other ministries concerned to draw up programs for the next year in consultation with the Ministry of Agriculture and Forestry, represented by Minister Tsur and Dr. Shen as most familiar with the whole program. The ministries chiefly concerned with the above are:

• Ministry of Education;
• Ministry of Finance;
• Land Administration;
• Ministry of Social Affairs;
• Water Conservancy Commission.

When such action is taken the Embassy will be in a better position to recommend that our Government consider in what ways it may be able to collaborate in the most helpful way in working out plans to give effect to the mission’s recommendations so far as means are available in the absence of the Bloom bill legislation.

This is the first mission of its kind bearing upon possible economic collaboration between China and the United States, and its success, if measured by significant results in following out its recommendations, will be a most hopeful sign looking toward any future plans or arrangements for assisting the Chinese Government in educational, economic, and allied fields.

First of all, I believe the Ministry of Agriculture needs more support and encouragement by the higher authorities to carry into action the extension program, the main features of which are in the outline attached. The proposed system of radio broadcasts, if it can be carried far enough into the villages, goes further than any means I know of at present to stir up interest in the people as to what the central and provincial governments are doing for them. This could well help in the newly released Communist areas.

Along with this, the other items proposed for immediate action mentioned above need early consideration and program plans for the next year by the ministries and agencies concerned and consultation with the Ministry of Agriculture to give substance to the whole program of improving the welfare of the farming population.

It was under the present Minister of Agriculture, Dr. Y. T. Tsur, that the joint agricultural mission was proposed to our Government. He has since followed the work of the mission closely and is familiar with its recommendations. I know he feels the importance of the recommendations for China’s welfare and help in the solution of some of her present problems. He has stated in his letter to the Secretary of Agriculture, Clinton B. Anderson, that he will do what he can to act upon the recommendations of the mission. He is now in close contact with personnel in his ministry best able to carry out the programs needed.

I therefore believe it of great importance to achieving significant results hoped for in the immediate future that he continue in office for one year or two to see the program well under way. The interest and knowledge of the present minister and his sincere intentions to help the program might not soon be developed in a new minister, and other factors might also delay and hamper action in the important initial stages. It is hoped that higher officers of the Chinese Government will appreciate this situation if the matter of changing ministers should come up.

Dr. Tsur seems somewhat conservative in asking his Government for necessary means in pushing the program forward as fast as circumstances would seem to fully warrant. More encouragement from higher levels is needed to give him the necessary confidence.

I shall follow closely and keep the Embassy informed regarding developments in the Ministry of Agriculture in making plans to carry out the urgent recommendations of the mission.

O[wen] L. D[awson]

[Annex]

Memorandum by Dr. T. H. Shen of the Chinese Ministry of Agriculture and Forestry

Agricultural Extension: Immediate Steps To Be Taken

I. Regarding Organization

1. To reorganize the present National Agricultural Extension Commission on the functional basis as outlined in the Mission’s report.

2. To establish four of the proposed regional extension offices at the following places: a) Nanking; b) Peiping; c) Wuking; and d) Wuchang.

3. To locate four demonstration areas in the four regions mentioned above. These areas should be staffed, equipped, and supplied as completely as possible from the beginning, and should be organized on a hsien basis with special demonstration area personnel serving in a supervisory capacity.

4. To strengthen the 14 provincial extension offices already established and the hsien extension offices within these provinces; to help establish district extension offices as a liaison between the provincial and hsien offices.

II. Regarding Program for the year 1946

1. To establish a broadcasting network in each of the four regions. Central Extension Office broadcasts to be made to regional as well as provincial extension offices which will rebroadcast with additions of their own program to hsien and village units. The contents of the radio program should include:

a) Crop reports

b) Marketing prices on agricultural commodities

c) New ideas and practices in the field of Agriculture

d) Information on agricultural policies and government improvement measures relating to such subjects as credit, tenancy and taxation, and regulations pertaining to agriculture.

e) Rural health and nutrition

f) Prevention of insect pests and animal diseases

g) Recreation such as music and opera

h) Others

2. Increased production on food and cotton crops

a) Multiplication and extension of better varieties

b) Extension of fertilizers

c) Control of plant diseases and insect pests

d) Extension of improved farm implements

3. Increased production on export commodities such as tea, silk, tung oil, and carpet wool.

4. Promotion of rural industries and special projects

a) Processing agricultural products

b) Poultry raising

c) Hog raising

d) Fresh water fish production

e) Handicraft

f) Vegetable garden and fruit orchard

5. Promotion of public works

a) Small scale irrigation system

b) Soil conservation

c) Tree planting and forest protection and management

d) Utilization of public buildings and lands

e) Development of public property as village forests

6. Assistance to farmers’ organizations

a) Farmers’ associations now legally established

b) Cooperatives (including selling, buying and credit cooperatives)

c) Local farmers’ clubs

d) Farm women’s clubs

e) Clubs for rural youth

Farm Tenancy

The problems of tenancy in China may be solved in part by either of two approaches: first, farm leasing practice may be improved, or, second, capable tenants may be assisted in becoming farm owners through an improved farm credit system.

Equitable farm lease forms should be prepared and enforced by the Ministry of Agriculture and Forestry on the basis of available information and in conformance with the provision of the Land Law of 1946 limiting landlords to an 8 percent return on their investments and other provisions which tend to improve farm leasing practices.

The second method of improving the tenancy situation is to provide credit and proper assistance to enable the capable tenants to purchase farms of their own. Before adopting a policy for the extensive development of tenant-purchase projects, selected groups of tenants should be organized and financed in well planned and supervised projects to determine the practicability of extending such projects further. Perhaps 3 to 5 places should be selected in each province of the agricultural regions for a trial beginning.

Land Policy

1. Land survey and Registration

Procedures of land survey that have been employed in China and elsewhere should be carefully studied in order to perfect methods for use in all of China. Aerial photography provides a good means of expediting a national land survey. Sample areas should be photographed and interpreted as a means of perfecting methods for facilitating the task.

As soon as land surveys of the hsien are completed, land registration should be carried out promptly.

2. Conservation and Development of Land Resources

The Ministry of Agriculture and Forestry should be charged with the responsibility of the overall conservation and development projects in some selected problem areas in land use. In these problem areas, land survey, land registration, and land classification are the first things to be completed before any conservation or development measures are to be carried out. To the benefit of the whole area, coordinated efforts should be taken to undertake the land use and resources development projects in approaching the area as a whole.

3. Equitable land taxation

An equitable system of land taxation can be insured when the provisions of the Land Law of 1946 respecting the taxation of land on the basis of its true value and the taxing of the advance in land values are strictly enforced. Enforcement of the provisions of the Land Law providing for a progressive tax on large land holdings is also very essential and an immediate program should be planned through the Ministry of Land Administration.

4. Rural Credit

a) More credit at lower rates of interest for farmers is essential. The recommendation of the Mission that all agricultural banks be incorporated into one will help to reduce expenses and facilitate loaning operations. Such agricultural bank to make loans in kind so far as possible.

b) A tenant purchasing plan to enable worthy tenants to purchase land should be provided for by the issuance of land bonds.

c) Foreign loans may be sought for aiding projects relating to fertilizer manufacture, agricultural implement factories and small scale irrigation projects.

5. Chemical fertilizer and irrigation

Recommendations regarding these matters are covered in the report and programs of action covering the next year should be drawn up at once so that progress will be apparent to the public within that period.

40. Transmitted to the Ambassador in China by the Consul General at Shanghai (Davis) in his despatch No. 125, November 25, not printed.