1) Attached is a series of articles which mention the incidence of corruption in China, including some activities which could be considered black-marketing. No further information on this topic is currently available to the IRBDC.

2) No specific information on the use of cigarettes as a black-market currency is currently available to the IRBDC. However, one of the attached articles from Beijing Review, entitled "Price Increases Lead to Abuses", mentions that rises in cigarette prices were aimed at creating "a norman market" in that commodity. The article further mentions that cigarette dealers seek to corner supplies since the regular marketing of cigarettes threatens the black market. No corroborating information on this topic is currently available to the IRBDC.
ATTACHMENTS

"Price Increases Lead to Abuses", Beijing Review, 22-28 August 1988, p. 10.

"CPC Vows to End Corruption", Beijing Review, 7-13 August 1989, p. 9.

"Anti-corruption Rules to Plug Loopholes", Beijing Review, 4-10 August 1989, p. 13.

Louise do Rosario, "The Lure of the South", Far Eastern Economic Review, 20 March 1986, p. 110.

"Official Profiteering Erodes Economy", Beijing Review, 1-7 August 1988, pp. 6-7.

Li Li, "Public Tip-Offs Aid Drive Against Corruption", Beijing Review, 14-20 November 1988, pp. 7-9.

"Public Property Suffers Robbery", Beijing Review, 5-11 December 1988, p. 12.

Li Ning, "Tightening Party & Government Discipline", Beijing Review, 19-25 December 1988, pp. 7-9.

Chu-Yuan Cheng, "China's Economy: New Strategies and Dilemmas", Current History, September 1988, p. 304.

James Rusk, "China cracks down on rice-selling scam of crafty peasants", The Globe and Mail, 13 April 1987, p. A5.

, "Abuses of power contrast with past", The Globe and Mail, 13 July 1987, p. A8.

"Chinese party officials accused of corruption", The Ottawa Citizen, 15 December 1987.

"Shenzhen's booming economy: a spur to rest of China", Manchester Guardian Weekly, 23 February 1986.

Jonathan Mirsky, "Gluttony gives Chinese food for thought", The Globe and Mail, 21 September 1989, p. A8.

Jack Cahill, "China tackles party corruption", The Toronto Star, 24 October 1989.

Jan Wong, "The Eighties: Decade in a Hurry", The Globe and Mail, 30 December 1989, p. E 6.

Ezra F. Vogel. One Step Ahead in China, (Cambridge, Mass.: Harvard University Press, 1989), pp. 409-413.