Formally, the C.I.C. Headquarters is a social organization sponsored by the Executive _Yüan_. H. H. K'ung, Minister of Finance and Vice-President of the _Yüan_, is its Chairman. The Secretary-General and Associate Secretary-General, Messrs. K. P. Liu and Hubert Liang, are both American-returned students; the former once worked in the Ford factories while studying at the University of Cincinnati and later was a banker in Manchuria. The most inspiring force in the movement is Mr. Rewi Alley, a New Zealander strongly interested in cooperatives and in labor welfare, formerly factory inspector in the International Settlement. Familiar, because of his Shanghai experiences and famine-relief work, with the problems of economic organization in China, he presented his plan to Generalissimo and Mme. Chiang through the intervention of that extraordinarily popular British Ambassador, Sir Archibald Clark-Kerr. The Chiangs were impressed with it, and the Generalissimo gave it his support. A headquarters was established at Hankow in August 1938, with the following five departments: _general_, for secretarial and administrative housekeeping; _financial_, administering funds for the headquarters and the cooperative units; _organization_, in charge of planning and inauguration of cooperatives; _technical_, devising simple industrial techniques; and _accounting_, an independent agency of audit.[6] The Executive _Yüan_ has continued to make administrative funds available; the central headquarters near Chungking now has a staff of about seven hundred. Professor J. B. Tayler of Yenching University, a noted economic expert, is consultant for staff service. [Footnote 6: "The Movement in Action," _New Defense, A Journal of the 30,000 Industrial Cooperatives Movement in China_ (Chungking) Vol. I, no. 1 (April 1939), p. 5.] As projected by Rewi Alley and his fellow-enthusiasts, the C.I.C. had to adjust itself to three zones of China's war-time economy. A guerrilla zone in and around the combat area, as well as behind the Japanese lines, concentrated on the creation of immediate war-time necessities. Some of these were in the form of direct medical and military supplies; others, replacements of indispensable articles which otherwise would have been procured from the enemy. The second zone, of light industry, was within easy reach of Japanese air raids and espionage, and consequently given to enterprises having light capital investment, mobile, and readily concealed. The third, or inmost Chinese zone, being best protected, was the proper area for the development of the heavier industries, although even here no grandiose or heavily centralized works are planned. The ultimate aim, peace-time as well as military, of the C.I.C. is to distribute industry across the countryside, replacing the once flourishing handicraft industries, and allowing Chinese society to develop naturally and continuously.