(1) Approve the report made by Comrade Bo Yibo, Director of the Central Economy Inspection Committee, to the Central Committee on January 19 (with some revisions made by the Central Committee), and deem this report to be correct.

(2) Distribute this report to Party committees and leading Party members’ groups at all levels (down to the county committee level for local authorities and down to the division committee level for the military) for uniform compliance and implementation.

(3) This report may be published in Party periodicals.

The Central Committee
January 21

In the struggle against the bourgeoisie, efforts should be concentrated on striking at a small number of major lawless industrialists and merchants; as for industrialists and merchants whose offenses are not grave, we should win them over to voluntarily confess, repent, and turn over a new leaf, win them over to support the government’s policies, or at least keep them in a neutral stance. Industrialists and merchants engaged in legitimate operations must be protected, and we should unite with them in the struggle against lawless merchants.

For state functionaries who have embezzled less than ten million yuan, those whose circumstances are relatively serious shall be sentenced to imprisonment of less than one year; those whose circumstances are relatively minor, and who can sincerely confess, make restitution as appropriate, publicly repent before the masses, and guarantee not to embezzle again in the future, may generally be exempted from criminal punishment, and instead be given administrative sanctions respectively, such as dismissal from office, transfer, demotion, or recording of a demerit. Among them, those who have rendered meritorious service to the revolution, have slipped up by chance, and whose circumstances are extremely minor, may be exempted from sanctions. There are also some whose actions verge on embezzlement but, according to the actual situation, cannot be called embezzlement. All those exempted from criminal punishment should be charged with actively participating in anti-embezzlement work and striving to render meritorious service to the people. Such stipulations can enable over eighty percent of the people to be exempted from criminal punishment, with a view to educating and reforming them more quickly.