To Peng Dehuai[1]

(August 18, 1941)

Wang Shiying has returned to Yan’an and reports that Yan has agreed to trade with the Shaanxi-Gansu-Ningxia Border Region (salt shipments have already begun) and has also agreed to our setting up another radio station, stating that in North China only our two sides remain and we should cooperate well, and so forth. Yan’s aim is to survive, hoping to secure a territory east of the river and that we will not attack him. It is judged that Yan will not defect to the enemy at present. We should exploit the contradiction between Yan and Chiang, allowing Yan room for survival. Please handle this with care.

[1] These are the main points of Mao Zedong’s telegram to Peng Dehuai on exploiting the contradiction between Yan Xishan and Chiang Kai-shek.