Reply and Comments on Chen Shutong[!]’s Letter
(May 18–19, 1953)

Mr. Shutong:
Your esteemed letter of May 9[1] and several enclosed documents have all been received, for which I am very grateful. Regarding the points you raised, I believe they are correct. Herewith my reply.

With respectful regards,
Mao Zedong
May 18, 1953

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[1] Chen Shutong was then chairman of the Preparatory Committee of the All-China Federation of Industry and Commerce and vice chairman of the National Committee of the Chinese People’s Political Consultative Conference.

[2] Refers to Chen Shutong’s letter to Mao Zedong dated May 9, 1953, which stated: “I am sending one report compiled from last month’s meeting of the secretaries-general of the provincial federations of industry and commerce, along with three issues of *Reference Materials* (Nos. 10–12), for your review. The matter has now reached a stage where resolution is required. The government has already made great efforts in taxation. Labor-capital relations will undoubtedly improve greatly following the Seventh Congress of the All-China Federation of Trade Unions. At the same time, the capitalist side should reform its thinking and look to itself for solutions. As for the question of capital, so long as public-private and labor-capital relations are properly handled, there may be ways to resolve it—idle funds and dormant capital may even be invested. Opening up sales channels will also alleviate overstocking. Relying on loans is not a solution. In general, state-owned enterprises must strengthen their leadership, and private enterprises must first understand the policies.”

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**Mao Zedong’s Collected Works, Vol. 33**
**142**

To Comrades Zhou Enlai and Xiaoping[1] to read, then handed to Comrade Li Weihan[2]:
After reviewing these items, please have Weihan enter them in *Lingxun* (Miscellaneous News). Return the originals to me after use.

Mao Zedong
May 19

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[1] Xiaoping, i.e., Deng Xiaoping, then a vice premier of the Government Administration Council.

[2] Li Weihan, then head of the United Front Work Department of the CPC Central Committee.

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