working class and unite with the law-abiding [members of the} bourgeoisie
and other urban residents to launch tn all cities throughout the country, and
first of all in the large and medium-sized cities, a large-scale and resolute
[campaign] against {members of] the bourgeoisie who violate the law-a
struggle to oppose bribery, tax fraud and tax evasion, the theft of state property, cheating on labor and skimping on material [on government contracts],
and the theft of economic intelligence — in order to coordinate with the struggle to oppose corruption, waste, and bureaucratism, which is [concurrently]
taking place inside the Party, the government, the military, and among the
people. In this struggle, Party organizations in each city must carefully deploy
the class forces and the masses and must pay attention fo using the strategy of
utilizing contradictions, effecting splits, and uniting with the majority and isolating the minority, so as to rapidly form, through struggle, a “Five-Anti’s”
United front. In a large city, after the “Five-Anti's” [campaign] has been
launched with intensity, such a united front can be formed in about three
Weeks. As soon as this united front is formed, those reactionary capitalists
Milly of the most heinous crimes will be isolated and the state will be ma
Position to mete out to them, very reasonably and without opposition, differhe kinds of necessary punishment — such as arrest, imprisonment, execution
acing squad, confiscation [of their property], fines, etc. All large cities in

Country (including provincial capitals) should enter the batile of the
i ‘Anti’s” in the first ten days of February. Please make prompt prepara-
On for this.

5 (January 26, 1952)

__. '4) The basic principles in dealing with industrial and commercial units
©" Five-Anti's” movement are: leniency for past offenses and severity for
ene committed from now on (for example, payments for evaded taxes are

~ Aetive only to 1951); leniency for the majority and severity for the minor.
~ticney for those who make a clean breast of their wrongdoings and

oc KAA TH
severity for those who resist; leniency for those in the industrial seci¢
severity for those in the commercial sector; leniency for those in general gy
of the commercial sector and severity for those in the speculating apeay 5
commerce, | hope that Party committees at al) levels will maintain g
grasp on these principles in the "Five-Anti's” [movement]. im
(b) In connection with the objective of the “Five-Anti's” movement, pp
industrial and commercial units are to be divided up into the folle
types, namely, those that are law-abiding, those that are basically law
ing, those that partly abide by the law and partly break the law, those thay
ously violate the law, and those that are in complete violation of the law,
big cities, the first three types make up approximately ninety-five per een
while the latter two types make up about five per cent. There are slight |
crepancies among the large cities, but in general they do not differ gr
from one another, [The corresponding ratio] in the the medium-sized ef
however, differs rather more significantly from these percentages.
_ &) These five types include jee and nonbourgeois independey

units. In the medium-sized cities, it is best that the independent industrial
commercial units and the vendors be dealt with in the “Five-Anti’s” mo
ment,

There is a very large number of independent industrial and comm
units which do not hire workers or shop personnel (although some take
apprentices) in the large and medium-sized cities in our country. Manly
them are law-abiding, but there are also many which ure basically law-abie
but partially breaking the law (meaning that they cheat on or evade tax
Small amounts or, in other words, they haye so-called minor problems), and
small number of them belong to the type that partly abides by the la v0
amounts of taxes. In the current “Five-Anti’s” movement, we aim to deal Wa
a large group of small capitalists and to pass judgment on their cases, DUPY
also ought to do.cur best to dea} with the independent industrial es commu

to piss judgment on them. This will be beneficial not only to the prese
“Five-Anti’s” movement bat also to the economic construction of the fulul

commercial units, and it will not be difficult to pass judgment on them, Whe
this is done, we will receive the support of the broad masses. Still, if in 100"
vidual cities it is believed thar it is more convenient Lo pass judgment on Othe
industrial and commercial units and put off for later passing judgment on 1
independent industrial and commercial units, it is also permissible (9 do 50.

(d) In accordance with the actual conditions in the cities, we have deoiee™
to change the division of the industrial and commercial units from the foe
types of the past into five types, that is. we are changing the category of @

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OCTOBER — DECEMBER 1951 (| 239

abiding units into two categories — the law-abiding units and the basically
ww abiding units. The other three types remain unchanged. Among the: fifty
lava g industrial and commercial units in Beijing (including independent
aa y| and commercial units, but not including vendors), law-abiding units

© up about ten per cent, basically law-abiding units make up about sixty
recent, those units that partly abide by the law and partly break the law make

up abou! uwenty-five per cent, those that violate the law seriously make up
ae four per cent, and those that are in complete violation of the law make
about one per cent. To differentiate between the units that are completely
jaw-abiding und those that have minor problems and are basically law-abiding, and. furthermore, to treat those among the basically law-abiding units
who evade taxes tt relatively small amounts differently from those who evade
taxes in rather lurger amounts can have a very great educational effect on

be

op ) in the large and medium-sized cities there are some municipal [Party]
‘committees that are not at all acquainted with the situation that exists in the
various types of industrial and commercial units and are very uncertain about
the strategic Viewpoint of differential treatment for these industrial and comqvercial units, In these places the organization and training of the trade union
and government work teams (or investigation groups) have been done shoddily, and yet they have hastily launched the “Five-Anti’s” movement; therefore some confusion has arisen. It is hoped that these municipal [Party] committees will pay attention [to this situation) and overcome it rapidly, Beyond
this, the investigation of lawbreaking industrial and commercial units must be
done under the strict control of the municipal [Party] committees and the
municipal governments, The [other) organs are not to be allowed to send people out (o make investigations on their own, much less to haul capitalists into
their offices for interrogation, Furthermore, whether in the “Three-Anti's”
Movement or in the “Five-Anti’s” movement, the method of using corporal
PURishment to extort confessions is not to be allowed, and strict precautions
must be taken to prevent suicides, Where there have already been suicides,
Methods to prevent any further cases from occurring must be formulated imme-
Miately to ensure that both the “Three-Anti’s” movement and the
. ‘Five-Anti’s” movement will develop soundly and on the right track, and to
“tive for the achievement of total victory,

; (f) The “Three-Anti’s” and “Five-Anti’s” are not to be carried out in xian,
ee 5, and xiang at the moment. As for when and how they will be carried
en in the future, the Central Committee will issue a further notice to that

2 In individual eases, where there has already been experimentation on

Five-Anti’s” in the xéan capitals or experimentation on the
‘a ~Anti’s” in the districts, strict control must be exercised, and the spring

‘Ming and economic activities must not be hampered. Even in the medium-

Cities, they must not carry out the “Five-Anti’s” all at the same time, but
do it in groups and only under strict control.

(March 5. 1952)

KABA


240 | MAO ZEDONG

6, During and affer this “Five-Anti's” struggle, we must achieve the fe
ing goals:

(a) Investigate thoroughly the situation of private industry and commer
as to be able to unite with and control the bourgeoisie better and to cary
the country’s planned economy. A planned economy cannot be carried:
without a clear understanding of the situation, —

(b) Draw a distinct line between the working class and the bourpegy
purge the trade unions of the phenomena of corruption and of bureaucrysl
which alienate the masses, and weed out the running dogs of the bourg,
in the trade unions. Such running dogs and middle-of-the-road elements |
vacillate between the workers and the capitalists can be found in trade up
everywhere. We must educate and win over the middle-of-the-road e
through struggle and expel those of the capitalist running dogs who have oy
mitted serious crimes.

(c) Reorganize the trade councils’ and the association of industry and
merce,” remove from the leadership organs of these associations the
who are infected with all the “five poisons” and others who have alne:
all their credibility, and absorb into [these organizations) people w
deported themselves relatively well in the “Five-Anti's” roves
for those that are in complete violation of the law, all types of people ep
in industry and commerce ought to be represented in these association

(d) Help the people in responsible positions in the China Demoen
National Construction Association’ shake up that association and expel th
people who are infected by all the “five poisons” and who have become 5
ously discredited among the people. Bring in a group of better people sa!
that association can become a political organization which is capable of repn
senting the legitimate interests of the bourgeoisie, primarily the ind
bourgeoisie, und capable of educating the bourgeoisie with the principl ies ’
the Common Program’ and the “Five-Anti’s.” As for the various secret ¢ hon
izations of different groups of capitalists, such as the “Thursday Dini
Club,” we ought to take steps to disband them. ;

(ec) Eliminate the “tive poisons” and wipe out commercial speculation, ‘
that the entire bourgeoisie will obey the laws and decrees of the arr ar
engage in industrial and commercial enterprises that are beneficial 1
national cconomy and the livelihood of the people. Within the limits set b M
state we should develop private industry (as long ay the captalists are willl
and [their operation] conforms with the Common Program), and reduce t
scope Of private commerce gradually, The state should expand its plan 10

over the sale of the products of privately owned [indusiry) and to contract
production of these goods" on a yearly basis, and to increase year by yearl
degree to which private industry and commerce are covered by [state] pla
ning. We should reestablish (the limits on] the percentage of profit for pr
capital, so that while private capitalists will feel that they are making a
they will be prohibited from extracting exorbitant profits. j
(f) Eliminate hidden accounts, make the economic [picture of enterp

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OCTOBER — DECEMBER 195) / 241

and gradually establish the system in which workers and shop person:
ise production and management,
G Recover the greater part of the economic losses to the state and the peoihrough payment of evaded taxes, restitution, fines, and confiscation.
re Set up Party branches among workers and shop personne} in all large
medium-sized privately owned enterprises so as to strengthen the work of

arty -
the P (March 23, 1952)

Notes

| See text June 6, 1952), note |

+ See tent Sept. 21, 1949, nore }.

3 The fundamental policy of dealing withi civil and political criminals in the PRC involves, in
maany CASS, not outright Incarceration, bat removal to labor camps where the offenders are forced
jp take part in labor. undergo mutual and self-critictsm and political education. This practice was
Mfficully Incorporated into the law of the PRC In 1954 by means of the Regulations Regarding
Labor Reform in the Criminal Code promulgated that year,

4. The trade councils are guild-like labor orgumizations that had existed since before Liberation
aod tiat retain cermin feudal characteristics. They are offen exploitative vis-A-vis small capitaliss

5, Tes refers to the All-China Federstion of Industry and Commerce which at this time wis

B. See text Sept, 21, 1949, note 3-
4. “The ‘Thursday Dining Club’ was a clandestine organization of capitalists in Chongqing
which cayaged in a series of serious illegal underground activities. I was exposed and distended

erherprises i have the latter's products sold to state-run enterprises according \o fised
Wecilications, quantities, and prices, on the one hand, und for the individual enteprixes to deliver
WN products on time according to the contracts, on the other.


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1952