The Capitalist Dilemma in China’s Communist Revolution This page is intentionally left blank. The Capitalist Dilemma in China’s Communist Revolution edited by Sherman Cochran EastAsiaProgram CornellUniversity Ithaca,NewYork14853 TheCornellEastAsiaSeriesispublishedbytheCornellUniversityEastAsiaProgram (distinctfromCornellUniversityPress).Wepublishbooksonavarietyofscholarly topicsrelatingtoEastAsiaasaservicetotheacademiccommunityandthegeneral public.AddresssubmissioninquiriestoCEASEditorialBoard,EastAsiaProgram, CornellUniversity,140UrisHall,Ithaca,NewYork14853-7601. Coverimages:ThephotographofcapitalistslininguptoregisterduringtheFive AnticampaigninShanghaiin1952isfromTupianZhongguobainianshi(Ahis- toryofonehundredyearsofphotographsinChina)(Jinan,Shandong:Shandong huabaochubanshe),v.2,425.Thecartoonshowingcapitalistsastargetsofworkers’ accusationsduringtheFiveAnticampaigninCantonappearedinthenewspaper, Nanfangribao,February3,1952. Number172intheCornellEastAsiaSeries Copyright©2014CornellEastAsiaProgram.Allrightsreserved. ISSN:1050-2955 ISBN:978-1-939161-52-9hardcover ISBN:978-1-939161-72-7paperback LibraryofCongressControlNumber:2014945478 PrintedintheUnitedStatesofAmerica ThepaperinthisbookmeetstherequirementsforpermanenceofISO9706:1994. Caution:Exceptforbriefquotationsinareview,nopartofthisbookmaybe reproducedorutilizedinanyformwithoutpermissioninwritingfromtheauthor. PleaseaddressallinquiriestoShermanCochranincareoftheEastAsiaProgram, CornellUniversity,140UrisHall,Ithaca,NY14853-7601. Tothenewgenerationofscholarsandstudents inChinesebusinesshistory This page is intentionally left blank. CONTENTS Acknowledgments ix ANoteonRomanization xi 1 INTRODUCTIONShermanCochran 1 PartOne CAPITALISTSWHOLEFTCHINA 2 SHOTGUNWEDDINGSongFeiqing, 21 theDongyaCorporation,andthe EarlyCommunistRegimeBrettSheehan 3 AVOIDINGISOLATIONBYTHEREVOLUTION 45 K.P.Chen’sDealingsfromHongKongwith ShanghaiandTaipei,1948–1956Pui-TakLee 4 THINKITTHROUGHTHREETIMES 67 ZhangJianhui’sDecisionsinthe1950s KaiYiuChan PartTwo CAPITALISTSWHOSTAYEDINCHINA 5 JANUS-FACEDCAPITALISMLiZhuchenandthe 89 JiudaSaltRefinery,1949–1953ManBunKwan 6 VENTURECOMMUNISTGuZhuninShanghai, 119 1949–1952ChristopherR.Leighton vii viii THECAPITALISTDILEMMA PartThree CAPITALISTSWHORETURNEDTOCHINA 7 ZHOUZUOMINANDTHEJINCHENGBANK 151 ParksM.Coble 8 WUYUNCHUANDTHEFATEOFTHEBOURGEOISIE 175 ANDBOURGEOISLIFESTYLESUNDERCOMMUNISM KarlGerth 9 THEHONGKONG–SOUTHCHINAFINANCIALNEXUS 203 MaXuchaoandHisRemittanceAgency TomokoShiroyama PartFour CAPITALISTSWHOREMAINEDABROAD 10 WITHSTANDINGCOMMUNISMTheHoTungFamily 227 ofHongKong,1946–1956 Siu-lunWongandVictorZheng 11 DECIDINGWHETHERTORETURNTOTAIWAN 251 KooChen-fu,1945–1952Tsai-manHo 12 PROFESSIONALMANAGERSATPOLITICAL 271 CROSSROADSHsiaPin-fangattheBankofChina inNewYorkandLondon,1939–1951 ElisabethKöll Glossary 299 Index 311 ListofContributors 321 Acknowledgments The chapters in this volume were originally presented as essays at a conference that was sponsored by the American Council of Learned SocietiesandtheChiangChing-kuoFoundation,withadditionalfunding fromaloyalCornellalumnus,Mr.LincolnYung.IamgratefultoACLS, CCK,andMr.Yungfortheirgeneroussupport.Theconferencewasheld atCornellUniversityandwashostedbythefacultyandstaffinCornell’s East Asia Program. The Cornell faculty members who made the most criticalcontributionswerethosewhoservedasdiscussantsofpapersat the conference: Allen Carlson, Chen Jian, Andrew Mertha, Victor Nee, MarkSelden,andXuXin.OthermembersofCornell’sEastAsiaProgram whoplayedvitalrolesintheconferenceincludedEllenAvril,Curatorof theAsianCollectionattheJohnsonMuseumofArt;LirenZheng,Curator oftheWasonCollectiononEastAsiainOlinLibrary;andHongnanMa, manageroftheEastAsiaProgram.Mythankstothemall. Thanks,too,totwoconferenceparticipants,MorrisLinanBianand WilliamKirby,whopresentedpapersthatarenotincludedinthisvolume. Each of their papers was well received at the conference, but when the authorsdiscoveredthattheyhadnotaddressedtheconferencethemeas closelyastheotherpresentershaddone,theygraciouslywithdrewtheir papersfromconsiderationforthisconferencevolume. IhavebeenfortunatetoworkonthisvolumewithMaiShaikhanuar- Cota, managing editor of the Cornell East Asia Series, and I wish to thank her for her serious professionalism and her warm good humor. Sherecruitedtwoanonymousreviewersofthemanuscript,whomIalso wish to thank for their thoughtful and detailed comments on all the essaysinthisbook.IamalsogratefultotwoCornellgraduatestudents: XiaojiaHouforherworkintheearlystagesofthebook’spreparationand YuanchongWangforhiscontributionsinthelaterstages,particularlyin thepreparationofthebook’sglossary. Itisnotcustomaryfortheeditorofacollectionofessaystothankits contributors,butinthiscase,Ithinkitisappropriatetodoso.Ingeneral, conference volumes are notorious for their lack of thematic coherence becausetheycontaindisparateessays,leavingtheeditorwithpiecesofa puzzlethatdonotfittogether.Butatourconferenceandeversince,the contributorstothisvolumehavecloselyadheredtoourtheme,andIam gratefultothemformakingmyjobeasier. ix This page is intentionally left blank.