Circular on the Experience of Taking Over Enterprises in Beiping and Tianjin

(May 26, 1949)

East China Bureau, Central China Bureau, Northwest Bureau, Nanjing Municipal Committee:

Based on the experience in Beiping and Tianjin, during the initial period of occupying a city, if the personnel sent to take over enterprises only prepare for the takeover and do not prepare for operation, waiting until after the takeover to send people to manage them, then the takeover personnel will harbor a "five-day mayor" mentality, showing no interest in operation, wasting materials, and causing great losses to enterprise production. Therefore, the responsible persons sent to take over enterprises in the initial period should, as far as possible, be chosen from among those who can be entrusted with their operation. They should be instructed not only to take over well but also to manage well, so that production does not suffer losses. Please pay close attention to this point. Furthermore, enterprise materials (including those stored in the factories or already delivered to the Kuomintang government but not yet paid for by the government) must not be treated as war booty to be confiscated, distributed, or consumed. If enterprise materials (such as cotton yarn, cloth, bedding, clothing, and other manufactured goods) are consumed as war booty, the government will inevitably have to pay the enterprises for them before they can resume operation; otherwise, the enterprises will stop work and be unable to continue production. This point is also based on the experience in Beiping and Tianjin. It was previously communicated to the East China Bureau, and now it is reiterated once again. Please relay it to your subordinate units for their attention.

Central Committee

Chenyou