() On July 1st, it was stated: “We must find appropriate methods to resolve the land question and ensure that those who till the soil own the land.” The Central Committee’s May 4th Directive represents just such an appropriate method—created by the masses and endorsed by the Central Committee. We now find ourselves in a situation akin to that of the Great Revolution: the peasantry is reaching out for land. Whether the Communist Party will approve this demand requires a firm and unequivocal stance.

(1) Politically, this is vitally necessary. At present, the Kuomintang controls the major cities, enjoys imperialist support, and holds sway over three-quarters of the population. Only by relying on the immense strength of the broad masses and engaging in resolute struggle can we reverse this imbalance of power. If, within our liberated areas, which are home to over one hundred million people, we successfully resolve the land question, the people in those regions will be able to sustain the struggle over a long period without growing weary.

(3) This is the most fundamental issue; it is the cornerstone of all our work. It is imperative that all Party cadres fully grasp its significance.

(4) In areas where the masses have already carried out land redistribution—namely, through equal distribution—we should not criticize the peasants’ egalitarian tendencies. On the contrary, this thorough eradication of feudal forces deserves our approval. However, indiscriminate and unceasing land leveling, leveling that fails to unite the middle peasants or to take into account the diverse interests of different social groups, must be prohibited. Where the masses have not proposed leveling, we should proceed according to their own methods and refrain from imposing it.

(5) We need not fear the temporary wavering of the liberal bourgeoisie and the middle classes. Only by resolutely implementing land reform, enabling the peasants to obtain land, and thereby strengthening and consolidating our own forces, shall we gain the leverage needed to win them over. That said, we must provide clear and forceful explanations to the liberal bourgeoisie and the middle sectors, pointing out that rent reduction and the principle of “land to the tiller” are both measures to implement the resolutions of the Political Consultative Conference, and that their implementation differs markedly from the methods employed during the civil war.

(6) Our policies toward industry and commerce, as well as our labor movement, must be distinctly differentiated in principle from our land policy and peasant movement. We must scrupulously avoid setting wages and other working conditions too high. What is required is labor–management cooperation, with the joint formulation of production plans that ensure adequate supplies of raw materials, high output, low costs, good quality, and broad markets. By striving to increase production and promote economic prosperity, we can secure mutual benefits for both labor and capital. Only in this way can we effectively contend with both foreign and domestic monopoly capital and ensure the invincibility of industrial and commercial development in the liberated areas.