893.00B/5–1149: Telegram
The Consul General at Peiping (Clubb) to the Secretary of State
808. [To Nanking:] ReEmbtel 76, March 5,99 Contels 257, March 12, and 476, May 2 [4].1 Following is report on Communist administrative take over process and personnel.
Takeover Peiping was conducted efficiently and in good order without dislocation or sabotage. Personnel old regime generally remained at posts. Immediately prior to occupation responsible persons some establishments reputedly received Communist orders assume responsibility for protection interests and equipment of unit. Many sympathizers apparently had established contact with Communists before occupation and had undertaken duties guarding against Kmt sabotage. On takeover military committee assigned various administrative units representatives who took charge and maintained liaison with control organ. Management original administrative system generally left unchanged excepting where duplication and overlapping functions [Page 306] patently require adjustment. Transportation, communications and productive enterprises get top priority. In initial stage PLA seems to have been in main successful.
General[ly,] Communists appear be making real efforts win over intelligentsia and all useful personnel except those politically closely connected with Nationalists. Selection made in part through use meetings at which vigorous progressive elements are spotted. Few cadres are assigned each section with joint duties of supervision and study. Absorption selected elements to those cadres reliable personnel corps built up, labor movement vigorously pushed. Workers being considered basic material for future operations. All old personnel undergo reeducation process during which unsatisfactory elements sifted out during process. New cadres generally unacquainted with new function expected learn on spot. Indications are that supervisory personnel for local trade, banking and communications just adequate, but for engineering and technical work inadequate. In latter categories workers old staffs receive higher pay and are encouraged remain at posts. New cadres reported be generally politically sound Communists, disciplined, active and incorrupt. Their present weakness is inexperience and incompetence in respect handling modern affairs. In old staff middle and lower groups workers in organizations where preoccupation salaries are paid have to date been generally content and adaptable. There is reported some apparent improvement morale due education and example new cadres in respect living conditions. This situation in administrative branches is in contrast with grumbling heard among laboring and merchant classes in town due slowness trade and rising cost living. Bureaucrats can likewise be expected suffer and perhaps show disaffection, if price rises continue. Communists show readiness experiment and learn and willingness make changes where dictated by circumstances. They have proven themselves capable Peiping take over city administration and public enterprises and operate them with reasonable competence, in first stages.
This accomplishment balanced by remarkable Communist ignorance shown in respect problems economy on national and international scale, in agriculture, industry, commerce. Presumed Communist intelligence at top is hampered, sometimes blocked by ignorance and fanaticism at lower levels. Bureaucracy and lack coordination seriously slows up progress, hardly halts deterioration. Open question whether Communists will be able overcome problems facing them in large spheres national and international effort particularly in respect problems population and food supply, restoration industry, development foreign trade.
Sent Nanking 521, repeated Department, OffEmb Canton 105, Shanghai 536.