The problem of large military expenditures was inherited by National Government. In large pact It ts economic, because disbandment without absorption of men into peaceful activities may merely drive them Into bandliry or "communism Super@uous troops are being reorganized and numbers reduced. 6 rapidly as elzeumstances permit. This programme, together with the expulsion" of the Communists from Kiangsi and the campaign against those who fled westward to Kwel-chow and Szechuen, should soon make possible some reduction in military "At the time when De. Kung assumed ofice in October, 1983, it was not feasible at once to cut expenditure ecnuse of the conditions previously mentioned, Therefore, attention was first concentrated upon development of, revenue, involving increases in the consolidated taxes and some ems of import duty, and improvement of the salt revenue administre-
During the period under review. the prices of both Internal and external bonds improved substantially, that leading issues are now quoted fon the London market at about par, Government credit has been improved by completion of payment of arrears of the Anglo-French Loan anda programme for completing payment of arrears of principal of the Crisp Loan has been announce?
Text read from the printed page and cleaned; old type leaves the occasional error.