Must Maintain Shanghai and Plan for the Overall Situation

(September 3, 1949)

Comrade Rao Shushi [1]:

Comrade Chen Yun [2] has returned and made a report at the Central Committee meeting on September 2. The Central Committee approves the general policy and many specific measures decided upon at this Shanghai Conference [3]. We must maintain Shanghai and plan for the overall situation. Do not lightly discuss relocation or lightly discuss layoffs. Focus on reorganizing taxation to increase revenue. Share the rice of three persons equally among five; find work posts requiring personnel, with proper arrangements, for surplus personnel.

Factories and schools that are willing and able to relocate must be meticulously planned so that they can sustain themselves and have prospects in the new location; otherwise, do not relocate them. The same applies to the relocation of refugees. Stress reductions in expenditures that can be cut in the first place, but do not cut indispensable expenditures. Stress opposition to waste; a great deal of money can be obtained from this. The blockade is extremely advantageous to us at the present stage, both politically and economically. The 27,000 personnel already laid off is a major matter and has caused considerable discontent; this should be addressed.

The approach is to investigate immediately, classifying them into two categories: those who can support themselves and those who cannot. The latter category should be taken back and given food. Even if they currently have no work to do, they should still be given food and sustained, kept alive, otherwise it will be extremely disadvantageous to us politically. Regarding the overall situation, the nation is fully capable of supporting nine to ten million people. Leading cadres at all levels should have more contact with personages from non-Party circles, just as Comrade Chen Yun invited representative figures from various circles for talks this time, and you talked with three former staff members, to probe the climate of opinion in various circles, consult them on specific issues, and exchange views, rather than engaging in generalized, merely social contact. Actively utilize the representative conferences of various circles in the cities and the county-wide representative conferences of each county, systematically bringing forward all major issues in governance on which one has already prepared, considered matters, and for which solutions exist, report them to the conferences, submit them for discussion, and seek their opinions. For such conferences, it is sufficient if Party members and completely reliable Left-wing elements together exceed one half, ensuring the passage of our opinions, so as to unite large numbers of middle-of-the-road elements and a section of the Right-wing elements who must be drawn in, causing them to move closer to us. Such conferences in the cities are best held once a month or twice every three months; for counties, it seems appropriate to convene once every two months. We have no experience yet with the representative conferences of various circles in the counties of the newly liberated areas; please consider selecting one or two counties near Shanghai, personally leading them, and trying convening one or two meetings. Regarding the above points, please inform me of your opinions.

Mao Zedong
Shen Jiang

--- Notes

[1] Rao Shushi, then Secretary of the East China Bureau of the CPC Central Committee.
[2] Chen Yun (1905–1995), a native of Qingpu, Jiangsu (now part of Shanghai). At that time, entrusted by the CPC Central Committee, he formed and presided over the Central Financial and Economic Committee.
[3] The Shanghai Conference refers to the financial and economic conference presided over by Chen Yun in Shanghai from July 27 to August 15, 1949, under the entrustment of the CPC Central Committee. It was attended by leaders of financial, banking, and trade departments from five regions: East China, North China, Central China, Northeast, and Northwest. The conference established the policy of fully supporting the thorough victory of the War of Liberation and maintaining the livelihood of the people in the newly liberated areas, primarily the major cities, and proposed specific measures and steps for unifying financial and economic work and controlling market prices.