Negotiations with the Kuomintang on the Reorganization of the Red Army and the Policy for Dealing with the Anti-Chiang Factions[1]

(March 1, 1937)

Zhou, and inform Peng, Ren, Ye:

(A) Regarding the negotiation guidelines: (1) The Red Army is to be reorganized into a force of 50,000 men, with pay and provisions equivalent to those of the national army, and a temporary expenditure of 500,000 yuan—this shall be the final limit of concession, but we must strive to exceed this figure. (2) The 27th, 28th, 29th, and 30th Armies, as well as local forces, are not to be included within the 50,000-man limit; all shall be reorganized into peace preservation corps and militia, with expenditures covered under the administrative budget of the special region. (3) Demand the discharge of the old and weak, and the recovery of Soviet currency[2] as post-settlement expenses.

(B) Regarding the policy for dealing with the anti-Chiang factions: (1) Persist in the line of supporting Chiang and resisting Japan. (2) On the one hand, propose to Chiang the abolition of the policy of sowing discord and excluding dissidents, and its replacement with a practical policy of uniting the whole nation in a common external front; however, with regard to local factions colluding with Japan, oppose them together with Chiang. (3) On the one hand, propose to the various anti-Chiang factions the abandonment of the anti-Chiang policy, and strive to push Nanjing toward further changes in national policy, and to abolish the policy of opposing Nanjing in military, financial, and other respects, so as to achieve the goal of resisting Japan and saving the nation.

Luo, Mao

1st

[1] This is a telegram from Mao Zedong and Luo Fu (Zhang Wentian) to Zhou Enlai, Peng Dehuai, Ren Bishi, and Ye Jianying.
[2] During the Second Revolutionary Civil War, the paper currency issued by the Chinese Soviet National Bank was generally referred to as Soviet currency or Soviet notes.