Comments and Reply Telegram to Chen Yi [1] on Shanghai’s Repulsion of the April Crisis (May 13–14, 1950) Comrades Zikui, Jianying, Xiaoping, Dewei, Yibo, Gao Gang, Peng Zhen, and Huang Jing [2]:  We are forwarding Comrade Chen Yi’s telegram of May 10 [3] to you for your reference.
The experience of Shanghai in repelling the April crisis, together with the various policies currently being implemented [4], are worthy of study by the party committees of major cities across the country.
Please circulate this report to the party committees of all principal cities for their consideration.
Mao Zedong, May 13  To Comrade Chen Yi, with a copy to Shaoshi [ ]:   (1) Your report of May 10 has been received; it is most satisfactory and reassuring.
The policy you have adopted is correct.   (2) As for the matter of reducing tax collection by 100 billion in June, we will deliberate it and then have Chen Bo [ ] reply to you.   (3) We have decided to convene the National Committee of the Chinese People’s Political Consultative Conference in mid-June to adopt the land reform decree and discuss adjustments to industry and commerce.
Although you are not a member of the National Committee, there are certain issues that should be discussed with you in advance.
Therefore, we request that you come to the Central Committee once on June 1, stay for two or three days, and then return.
If you feel it would be preferable to come immediately, you may do so without delay.
Please let us know your decision.
Mao Zedong, May 14  Printed from the manuscript.
Notes  [1] Chen Yi was at the time First Secretary of the CPC Shanghai Municipal Committee and Mayor of the Shanghai Municipal People’s Government.  [2] Zikui refers to Deng Zikui, who served as Third Secretary of the Central Committee of the CPC South-Central Bureau.
Jianying refers to Ye Jianying, First Secretary of the CPC South China Branch.
Xiaoping refers to Deng Xiaoping, First Secretary of the CPC Southwest Bureau.
Dewei refers to Peng Dehuai, First Secretary of the CPC Northwest Bureau.
Yibo refers to Bo Yibo, First Secretary of the CPC North China Bureau.
Gao Gang was Secretary of the CPC Northeast Bureau.
Peng Zhen was Secretary of the CPC Beijing Municipal Committee.
Huang Jing was Secretary of the CPC Tianjin Municipal Committee and Mayor of the Tianjin Municipal People’s Government.  [3] This refers to Chen Yi’s comprehensive report for March and April 1950, addressed to Mao Zedong, the Central Committee, and the East China Bureau, concerning Shanghai.  [4] During March and April 1950, social order in Shanghai was relatively chaotic.
Enemy agents’ activities became more overt, policies related to taxation and government bonds came under attack, labor-management relations were strained, and public sentiment was unsettled.
The situation reached its most acute point in early April.
In order to resolve these problems and stabilize the situation, the Shanghai municipal authorities undertook extensive efforts.
Their main experiences and policies included: adjusting the relationship between the public and private sectors and implementing a policy that balanced the interests of both; improving labor-management relations while safeguarding the interests of both sides; appropriately reducing taxes; providing relief to unemployed workers; conducting self-criticism to correct shortcomings in work, and so forth.

[ ] Shaoshi refers to Rao Shushi, who served as First Secretary of the CPC East China Bureau at the time.  [ ] Chen refers to Chen Yun, who was Vice Premier of the State Council and Director of the Financial and Economic Commission.
Bo refers to Bo Yibo, who was Deputy Director of the State Council’s Financial and Economic Commission.