What is the future? What is the trend? Why do you always refuse to believe? Why do such questions arise? Because you have some property, your thinking differs from that of the workers and peasants. Some among you do not think this way either. You should take your destiny into your own hands and clearly recognize the laws of social development. The trend and future of socialism are now certain. During the transformation of the two types of private ownership (capitalist private ownership and small-peasant private ownership), many people remain unsettled and keep raising this question. That is to say, they cannot take their destiny into their own hands. We see that social development can be grasped and stabilized, but we must still talk about it often.

The transformation of capitalist industry and commerce is not a matter for just a few people. Whether the united front is needed or not cannot be casually decided, nor is it a matter of whether the Central Committee of the Communist Party wants it or not. It depends on whether the united front benefits the socialist construction of the working people. If it is beneficial, we keep it; if not, we do not. Judging from the long-term experience of the Chinese revolution, having a united front is better than not having one. Our cause is the exact opposite of Chiang Kai-shek’s, which is nearing its end; all our construction efforts are just beginning. Everyone should not be like fifteen buckets drawing water, with seven up and eight down. I will help you reduce the buckets and add water pumps. We must make the whole country develop greatly and become prosperous and strong. Our country is a large country, but it is not prosperous and strong. We cannot even manufacture airplanes and cannons ourselves, so we cannot speak of prosperity and strength. But if we act according to our plans, we can become prosperous and strong—this will be prosperity and strength for everyone.


I am delighted to hear that there are study groups in the industrial and commercial circles of major cities. There must be a few core figures, people of foresight and advanced understanding. Is this possible? In the past, some people understood policies and principles; it is conceivable that such a contingent can be formed.

Some estimate that the total number of people in national industrial and commercial circles and urban petty bourgeoisie is about 30 million. This is a very large contingent. In the past, propaganda was insufficient. I think that, overall, the industrial and commercial circles have made progress in recent years. This overall assessment is necessary. There are bad elements in the industrial and commercial circles, but are there no bad elements within the Communist Party? My above assessment is based on factual evidence (public-private partnerships, purchasing public bonds...). Otherwise, there would be no confidence, and what follows would be difficult to handle. Of course, speaking of achievements does not mean glossing over shortcomings. A comprehensive assessment is needed.

The same applies to the elimination of counterrevolutionaries. Everything has its own nature. Let us not settle old accounts; we settle new ones.

As for communism, I think it is a good thing, and you will see this in the future. If we talk about it often, it will no longer be frightening. Private ownership greatly hinders nationwide overall planning and obstructs our country’s path to prosperity and strength. Do not lose sleep over this. It must be discussed for several years; it cannot be accomplished overnight. We handle matters through consultation. For now, we only emphasize propaganda, with core members doing the propaganda. Everyone should not feel afraid but should feel pleased and see the benefits.

The transformation policy we are now proposing is the "redemption" policy put forward by Marx and Lenin. Over roughly fifteen years, during this period, the working class will produce profits for the capitalists each year (several hundred million a year), amounting to several billion over ten years. So, in effect, the working class is paying the capitalists to buy back the factories.

We have made efforts in arrangements and in arranging political status. We adopt a policy toward the bourgeoisie that is different from that toward the landlords. In the past, you called the Communist Party a great scourge; now you do not want to be called capitalists but wish to be called workers. This can be achieved. Our country has vast territory and abundant resources, yet now we produce only a little over two million tons of steel annually—this is truly disgraceful. We must exert nationwide efforts, and the industrial and commercial circles must also strive. Forty or fifty years should be enough, right? We must strive to surpass the United States. Li Fuchun said it would take less than a hundred years to surpass the United States, and I agree.

When leadership is better, work is better; when leadership is poor, work suffers. We must pay attention to leadership planning and consider what methods can make everyone happier and more motivated. Some friends say that some small enterprises still evade taxes. This is due to poor study and also a lack of proper education.

A few more words on the issue of propaganda: Do not create a sudden gust of wind, like a typhoon, which is harmful, by saying that communism is coming immediately. This would cause unnecessary losses, because progress varies among large, medium, and small enterprises. Do not cause losses; we must advance with preparation, in an orderly manner, and step by step. For this, core members are very important. We have achieved results—goods have never been absent from the counters. This is remarkable. I think this has international significance, even world significance. Chinese capitalists are taking the lead, setting an example for capitalists in other countries. This is very glorious. Japanese capitalists are very concerned and think we are doing well, with no losses of people or goods. As the old saying goes: "The more good deeds you do, the better your future." Do not think that just because you are advanced, a high tide should be launched. Do not only see your few hundred people; you must see the thousands. When peasants join cooperatives, they have hesitations and doubts. Capitalists are no exception. Do not think that one meeting at Huairen Hall resolved the issue. The fifteen buckets are gradually eliminated; otherwise, where would so many water pumps come from? "When the melon is ripe, it falls off; when the water flows, a channel is formed." I think this is a good saying.