The working principles and methods in Yan’an are basically sound and have produced positive effects, and this approach should be continued. At present, we do not attack the local tyrants, and the local tyrants are pleased; we protect the merchants, and the merchants are pleased; we abolish exorbitant taxes and levies, and the poor are pleased. In the future, we should further increase the satisfaction of the masses while reducing the satisfaction of the local tyrants. Comrades working in Yan’an should clearly understand that the work in Yan’an has an impact on the whole country, and all specific tasks in Yan’an should adhere to this principle. Regarding the form of political power in Yan’an, the Anti-Japanese National Salvation Association is only temporary. It would be best not to appoint a county magistrate here; instead, an Anti-Japanese Revolutionary Committee should be established, which will eventually become a Soviet government. Since this is the seat of our capital, it should not be jointly administered with others.

The assumption that if we use white notes we cannot use Soviet notes, and if we use Soviet notes we cannot use white notes, is an overestimation. I agree with the Commander-in-Chief’s opinion that both Soviet notes and white notes should be used in circulation within the city. I believe the central issue is the procurement of goods from outside, and it is feasible to use cooperatives to regulate this.