Illegal Capitalists' Telegram to Gao Gang [I]
(January 31, 1952)
Comrade Gao Gang, and to inform all comrades:

(1) The report of January 26 has been received. You have uncovered more than 160,000 major and minor embezzlers, achieving great results, which gives me great pleasure. Your policy and methods are basically correct.

(2) Based on the situation at the central level, where there are 400 big tigers among 120,000 people, among the staff of Party, government, and military organs and enterprises across the entire Northeast region, there may be more than 500 big tigers, possibly double or several times that number; however, it is appropriate for you to temporarily set the target at 500, and as the movement deepens, tasks can be gradually increased according to the circumstances.

(3) In dealing with the more than 80 percent of minor embezzlers who are not subject to criminal punishment, in accordance with the policy already notified by the Central Committee, except for a very few cases where the circumstances are extremely minor, requiring only confession and repentance, appropriate restitution, and a guarantee of no repeat offenses, who may be exempted from administrative punishment, all others should generally be given administrative punishments, such as dismissal, demotion, transfer, or demerit, in order to demonstrate seriousness. When handling these cases, the method used in the suppression of counterrevolutionaries to clear accumulated cases should be emulated: the leading organs should analyze and compare a group of individuals, formulate a handling plan, submit it to mass meetings (with the individuals participating) for discussion, additions, deletions, and amendments, and then have the leading organs finalize and announce it. Some organs in Beijing have done this, with very good effect.

[1]
Gao Gang,
then served as Secretary of the Northeast Bureau of the CPC Central Committee and Chairman of the Northeast People's Government.

(4) In dealing with the capitalists, there must be preparation; do not take action if preparations are inadequate. When conditions of preparation differ among cities, do not take action simultaneously. There must also be steps: first organize a number of capable inspection teams to conduct inspections of several of the most recalcitrant firms against which there is solid evidence. If no inspection is launched, then fine; once launched, the case must be solved (some cases require persistence over several days to be solved; withdrawal is not permitted until the case is solved). In the second batch, inspect several more firms, again solving all cases. In this way, experience is gained, cadres are trained, and a large number of small and medium capitalists and a portion of big capitalists are educated, prompting them to confess, while at the same time mobilizing workers and shop employees to carry out accusations. Then organize a third batch, a fourth batch, a fifth batch, and more inspections and case-solving. In this process, more than 90 percent of big, medium, and small capitalists can be won over to our side, or remain neutral, leaving a few percent (6 percent in Beijing) of reactionary capitalists completely isolated, and public opinion will then turn entirely in our favor. At this point, we can punish the most reactionary capitalists, accounting for about 1 to 2 percent (that is, the capitalists guilty of the most heinous crimes of bribery and theft), after obtaining conclusive evidence of their crimes through inspection, by measures such as arrest, execution by shooting (only a minority), confiscation of property, imprisonment, fines, etc. Beijing has 50,000 industrial and commercial enterprises; 1 percent is 500 enterprises. After a month of intense struggle by the Beijing municipal Party organization, and after several inspection steps, only nearly 100 capitalists have been arrested. It is planned to carry out several more inspection steps in February, gradually arresting up to around 300 (less than 1 percent), and then assess the situation. This is a process of struggle involving gradual understanding, gradual deepening, gradual differentiation, and gradual uniting of the majority while isolating the minority. Without the intense and arduous work of the urban Party organizations, this task cannot be accomplished. There are great contradictions among the big, medium, and small bourgeoisie. By striking at the most reactionary capitalists, about 1 percent, and focusing the strike on speculative merchants rather than industrial capitalists (a portion of extremely bad factory owners must be struck), it is possible to win over the vast majority of capitalists to support us, and they will not resent us; only a very small minority (a few percent) will truly resent us. In this way, by using the method of attacking from both inside and outside, we can completely uncover all the big embezzlers, the fortresses the bourgeoisie has planted within our ranks.

(5) In order to win the enthusiastic support of the broad urban populace and suburban peasants, the Beijing Municipal Government once organized more than 200 investigation and visiting teams to be dispatched simultaneously, representing the mayor to all local police stations and township government jurisdictions, convening large and small meetings of residents and conducting household visits (with staff of the local police stations and township governments practicing recusal). Over three to four days, they investigated all corrupt and illegal acts by government personnel and police, reporting them to the municipal government for handling, with very great results. This method can be emulated in all cities nationwide and should be carried out several times each year.

Mao Zedong
January 31