*TEXT 035 01/11/63 PAGE 032 RED CHINA THE CHILLY SEASON RED CHINA'S MASSES LAST WEEK HAD MUCH IN COMMON WITH THE SUBJECTS OF THE FAMOUS FAIRY-TALE EMPEROR : EVERYBODY WAS TALKING ABOUT NEW CLOTHES, BUT NOBODY COULD ACTUALLY SEE THEM . AFTER THREE YEARS OF BAD COTTON CROPS, THE ANNUAL CLOTH RATION HAS SHRUNK TO AS LITTLE AS 2F FT . PER PERSON IN SOME REGIONS " JUST ENOUGH, " SAID ONE REFUGEE, " TO PATCH OUR RAGS . " SO SEVERE IS THE SHORTAGE, ACCORDING TO THE OFFICIAL PEKING PEOPLE'S DAILY, THAT " CLOTHES HOSPITALS " ARE MAKING " SHORT-SLEEVED SHIRTS OUT OF LONG-SLEEVED SHIRTS, A VEST OUT OF A SHORT-SLEEVED SHIRT, AND UNDERWEAR OUT OF A VEST . " IN TIMEWORN STYLE, COMMUNIST PARTY CHAIRMAN MAO TSE-TUNG'S LIEUTENANTS BLAME DROUGHT, HAILSTORMS AND INSECT BLIGHTS FOR CUTTING THE RATION FROM A MANAGEABLE 20.65 FT . IN 1957 TO ITS PRESENT HANDKERCHIEF SIZE . BUT RED CHINA'S FRAYED LOOK ALSO OWES MUCH TO A DELIBERATE DECISION BY ITS LEADERS . " WHEN THE BAD CROPS BEGAN IN 1959, " EXPLAINS ONE WESTERN EXPERT IN HONG KONG, " COTTON AND CLOTH WAS ONE PLACE WHERE YOU COULD SQUEEZE THE PEOPLE . " PEKING SQUEEZED HARD, CUTTING BACK COTTON ACREAGE AT LEAST 20 PER CENT SO THAT EVERY SPARE CLOD OF EARTH COULD BE SOWN TO GRAINS . THE RESULT : CHINA'S 1962 GRAIN HARVEST WAS UP 10 PER CENT TO 182 MILLION METRIC TONS, WHILE THE COTTON CROP MAY HAVE FALLEN TO AS LOW AS 1,200,000 METRIC TONS, DOWN ONE-THIRD FROM 1958 . FURTHER AGGRAVATING THE SITUATION AT HOME, PEKING SOLD HUGE AMOUNTS OF COTTON ABROAD TO BRING IN BADLY NEEDED FOREIGN EXCHANGE . WITH THE ONSET OF THE CHILLY SEASON, EVEN THE CLOTH WRAPPING ON GIFT PARCELS FROM RELATIVES ABROAD IS USED TO PATCH THREADBARE GARMENTS . SAID ONE REFUGEE IN HONG KONG : " WE ARE USED TO GETTING COLD IN THE WINTER .