We Must Maintain Order in Shanghai and
Make Plans for the General Situation
(September 2, 1949)
Comrade Rao Shushi:1
Comrade Chen Yun2 returned and gave his report at the meeting of the Central
Committee. The Central Committee agrees with all the policies and concrete
measures decided upon at the Shanghai meeting.3 We must maintain order in
Shanghai and make overall plans for the general situation. Do not recklessly move
things around or downsize institutions. Focus on collecting taxes to increase revenue. Five people must eat the rice of three. Find ways to insert extra people
into positions requiring personnel. We must first calculate precisely whether those
factories and schools willing or able to move will be able to survive in their new
locations; if not, they should not move. It is the same with regard to the movement
of refugees. Focus on economizing on expenses that can be cut from the start,
but do not reduce necessary expenditures. Focus on opposing waste, which will
save a large amount of money. At present, blockades are extremely beneficial to
us; whether from the political or the economic point of view, there are benefits.
Laying off 27,000 people was a major issue that made many dissatisfied with us.
We must take care of this by immediately investigating which of these people are
able to support themselves and which are not. As for the latter group, we must
take them back and give them a living. Those who have nothing to do at present
should also be given food and be supported so that they can survive. Otherwise,
this situation will be extremely damaging to us politically. Overall, we are entirely
able to care for the ninety to one hundred million people in our country. Leaders
Our source for this document is Mao Zedong wenji, Vol. 5, pp. 335–36, where it is
1.  Rao Shushi was secretary of the East China Bureau.
2.  Chen Yun had been entrusted by the Central Committee of the Chinese Communist
Party with establishing and chairing the Central Finance and Economics Commission.
3.  The Shanghai meeting referred to here was a finance and economics meeting,
chaired by Chen Yun from July 27 to August 15, 1949, and attended by leaders of the
finance, banking, and trade departments of the East China, North China, Central China,
Northeast, and Northwest regions. The meeting determined that fully supporting the victory achieved in the War of Liberation and holding the newly liberated territories were the
primary guiding principles for the major cities, and it proposed concrete steps to unify
financial and economic administration and to control the market prices of goods.
DOI:  10.4324/9781315719436-316

at all levels should be in closer contact with non-Party people from all walks of
life. Just as Chen Yun found representatives from all walks of life with whom to
speak, you should find three members of the old order to learn more about the
atmosphere in various sectors. Ask them for advice and exchange ideas with them
concerning concrete issues; this should not be shallow social contact. Actively
use the all-class people’s congresses in every city and county; report to them all
the major problems you have encountered in carrying out official tasks as well as
those issues for which you are prepared, those you have considered, and those
you have the means with which to deal. In addition, discuss all these issues with
them and ask for their opinions. More than half of the people at this type of meeting should be either Party members or entirely trustworthy leftist elements. That
will ensure that there will be enough people who share our opinions so we can
rally the majority of the centrist elements as well as the rightist elements who are
necessary to us, causing them to close ranks with us. In the cities, it would be best
to hold this sort of meeting once a month, or at least twice every three months.
Every county should hold a meeting once every two months. We have as yet no
experience with all-class people’s congresses in counties in the new areas. Please
consider choosing one or two counties near Shanghai that you can lead personally
and hold one or two meetings there to try things out. Please report your opinions
to me for consideration.
Mao Zedong

reproduced from Mao Zedong’s handwritten manuscript.