To Deng Xiaoping and Others[1]

(December 22, 1943)

The production campaign in the Border Region has been widely launched. Agriculture (livestock, grain, cotton) and handicrafts, especially wool and cotton textiles, have all seen significant increases. Labor exchange teams and labor heroes have played a major role in organizing production increases. In trade, imports and exports can be balanced, and a foundation for economic self-sufficiency has begun to be established. However, fiscal expenditures are excessively large, and a balance between revenue and expenditure has not yet been achieved. As a result, our currency remains lower than the legal tender. The Central Committee is already paying attention to regulating expenditures. The most important import for the Taihang area is salt, while exports are walnuts and prickly ash. Under the circumstances of the enemy intensifying economic blockade, every possible method must be used to develop small-scale salt production in southern Hebei and the areas of Nanle and Qingfeng, and transport it to Taihang through connections with the masses and puppet organizations. The government must also firmly grasp the regulation of the market, stabilize grain prices, promote the export of prickly ash (despite the blockade), and exchange it for the import of essential goods (mainly salt). As for walnuts, they can be pressed for oil ourselves, so there is no fear of blockade. Flax is a necessity for the enemy, and a blockade is disadvantageous to them; the current blockade is a superficial phenomenon. Please also pay attention to overcoming the monopolistic thinking in handicraft production among some comrades in the government.

[1] This is the main content of a telegram from Mao Zedong, Zhu De, and Peng Dehuai to Deng Xiaoping, Teng Daiyuan, and Yang Lisan regarding the production and fiscal situation in the Shaanxi-Gansu-Ningxia Border Region and opinions on developing production and trade in the Taihang area.