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MAY 18, 1972

Printed for the use of the Joint Economic Committee

U.S. GOVERNMENT PRINTING OFFICE

76-508 O

WASHINGTON : 1972

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C. 20402 - Price $1.75

Stock Number 5270-1451

JOINT ECONOMIC COMMITTEE

(Created pursuant to sec. 5 (a) of Public Law 304, 79th Cong.)

WILLIAM PROXMIRE, Wisconsin, Chairman

WRIGHT PATMAN, Texas, Vice Chairman
SENATE

HOUSE OF REPRESENTATIVES JOHN SPARKMAN, Alabama

RICHARD BOLLING, Missouri J. W. FULBRIGHT, Arkansas

HALE BOGGS, Louisiana ABRAHAM RIBICOFF, Connecticut

HENRY S. REUSS, Wisconsin HUBERT H. HUMPHREY, Minnesota MARTHA W. GRIFFITHS, Michigan LLOYD M. BENTSEN, JR., Texas

WILLIAM S. MOORHEAD, Pennsylvania JACOB K. JAVITS, New York

WILLIAM B. WIDNALL, New Jersey JACK MILLER, Iowa

BARBER B. CONABLE, JR., New York CHARLES H. PERCY, Illinois

CLARENCE J. BROWN, Ohio
JAMES B. PEARSON, Kansas

BEN B. BLACKBURN, Georgia
John R. STARK, Executive Director
JAMES W. KNOWLES, Director of Research

ECONOMISTS
LUCY A. FALCONE
Ross F. HAMACHEK

JERRY J. JASINOWSKI
JOHN R. KARLIK
RICHARD F. KAUFMAN

LOUGHLIN F. McHUGH COURTENAY M. SLATER Minority: GEORGE D. KRUMBHAAR, Jr. (Counsel) WALTER B. LAESSIG (Counsel) LESLIE J. BANDER

(II)

LETTERS OF TRANSMITTAL

MAY 17, 1972 To the Members of the Joint Economic Committee:

Transmitted herewith for use by the Joint Economic Committee, the Congress, and the interested public is a factual and analytical study of the economy of Communist China entitled People's Republic of China: An Economic Assessment. This is a compilation of invited papers designed to meet the interests of the committee and the Congress in an up-to-date body off actual data and interpretative comment on the state of the domestic economy of China, including the record of its recent experience in economic development, and its relations with the outside world.

Early in the Great Proletarian Cultural Revolution the Joint Economic Committee released a pioneering, two volume assessment, entitled An Economic Profile of Mainland China. As the People's Republic of China begins to relate more with the world community through its membership in the United Nations it seems appropriate to supplement the earlier study by a presentation of information and analysis that has become available to the various Departments of the Federal Government in the past 5 years.

At the present time, China, the largest nation in the world, remains both an enigma and a potential threat to world stability. Certainly, the Chinese economy is a subject of primary concern, and we have an obvious and compelling need of knowledge on the subject. This extensive compilation was organized by the staff in the hope that it will help to serve this need. It covers all of the major aspects of the Chinese economy and should provide a valuable source book for further committee studies of the subject. It is our intention to follow this study with hearings at which nongovernmental experts may testify thereby helping the Congress to obtain a clear view of what is taking place in China.

Our earlier volumes provided a factual basis for better understanding of the economy of Communist China. We hope this volume will not only update this earlier effort but provide a current reassessment. The sources of information on China are even more limited now than during the earlier study.

It is hoped, that this volume drawing on research in the Federal Government will serve as an aid and a stimulus to private scholars working on this subject. The committee is deeply indebted to the scholars from the Government who gave so generously of their time and expertise to the committee. They are listed in the executive director's memorandum to me, and I would like to take this opportunity on behalf of the committee of expressing our gratitude for their invaluable efforts without which this study would not have been possible.

Finally, we wish to take this opportunity to express our gratitude

to the Congressional Research Service for making available the services of John P. Hardt, who helped to plan the scope of the research and coordinated the contributions for the present study.

It is understood that the views contained in this study are not necessarily those of the Joint Economic Committee nor of individual members.

WILLIAM PROXMIRE, Chairman, Joint Economic Committee.

May 16, 1972. Hon. WILLIAM PROXMIRE, Chairman, Joint Economic Committee, U.S. Congress, Washington, D.C.

DEAR MR. CHAIRMAN: Transmitted herewith is a volume of materials on the economy of Communist China entitled People's Republic of China: An Economic Assessment. The study has been prepared in the form of a symposium containing a series of selected papers contributed by invited specialists who are recognized authorities on China. The specialists in question have been drawn from the ranks of the several departments of the Federal Government and the Library of Congress. The papers they have submitted, in response to our request, cover the broad range of topics dealing with the recent performance of Chinese economy. Included among these topics are economic policy, the defense burden, agriculture, transportation, industry, population, education, research, science, international trade, and foreign aid.

The Joint Economic Committee undertook an earlier study, the two volume Economic Profile of Mainland China to provide a basic body of information on the economy of Communist China. This study is intended to supplement the earlier study by a presentation of information and analysis that has become available to the various Government agencies during the last 5 years.

It is hoped, furthermore, that the facts and ideas presented in this survey of available information will help to shed light on the alternatives facing the United States in ordering our relations with the People's Republic of China within the foreseeable future. The shape of these relations is certain to be significant both for the internal development of China and critical to the issue of war and peace in the world.

The contributors to the study have been most considerate of our needs and generous in giving of their time and expertise to provide not only basic information but indispensable analytical perspective on this important subject. The individual scholars who have participated in the preparation of the present study are: John S. Aird

Leo A. Orleans
Arthur G. Ashbrook, Jr.

Philip D. Reichers
R. E. Batsavage

Leo Tansky
Alva Lewis Erisman

A. H. Usack
Robert Michael Field

Philip W. Vetterling
Edwin F. Jones

James J. Wagy

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