(June 2, 1950)
Central-South Bureau:
The report of May 25 from Comrade Zihui (1) concerning the three and two months has been received. I believe the policy you have adopted for adjusting industry and commerce, improving public-private relations and labor-capital relations, as well as other work guidelines (2), is correct.

Mao Zedong
June 2

[1]
Zihui, namely Deng Zihui,
then serving as Third Secretary of the Central-South Bureau of the CPC Central Committee.

[2]
The urban work guidelines and methods mentioned in Deng Zihui’s comprehensive report of May 25, 1950, on the months of March and April were: (1) Reduce burdens. For provinces and cities that have not fulfilled their public bond tasks, it is proposed to cease further collection. Tax collection is proposed to be reduced by 600 million, and urban surcharges and the like are to be suspended. (2) Adjust public-private relations. First, halt the retail stores of state-operated trading companies, retaining only a limited amount of grain retail; shift the focus of trading companies to wholesale, export, and large-scale exchanges with neighboring regions; trading companies shall adopt methods such as entrusted purchasing, joint purchasing, entrusted sales, entrusted transshipment, and processing orders to integrate with private capital. Second, abolish government agency cooperatives, transferring all cooperatives to trading companies for takeover. Third, all military unit cooperatives shall uniformly cease doing business, stop using vehicles for transport, and not compete with the people for profit. (3) Truly guarantee freedom of trade, abolish price-fixing methods. Strictly prohibit trading companies from arbitrarily restricting private purchasing, arbitrarily raising listed prices, and other such acts. (4) Improve labor-capital relations. Under the slogans of labor-capital consultation, maintaining production, overcoming difficulties, and pulling through hard times, lead the workers to take the initiative in uniting with the capital side, adopt various methods, and at the same time encourage the capital side to improve management, so as to maintain production and reduce unemployment. (5) Handle unemployment relief, primarily through work relief. (6) Use all means to halt the decline in commodity prices, with individual prices to be raised slightly. This shall rely mainly on trading companies releasing large amounts of currency to purchase goods; at the same time, emphasize the transportation and sale of local products for export, and do a good job of internal and external exchange and urban-rural mutual aid. (7) Gradually achieve planned production.