INSTRUCTIONS AT A DISCUSSION MEETING ATTENDED BY SOME OF
THE DELEGATES TO THE SECOND SESSION OF THE FIRST COMMITTEE
OF THE ALL-CHINA FEDERATION OF INDUSTRY AND COMMERCE
//
(8 December 1956)
I am a layman in economics and therefore I shall give a laymen's talk.
You have raised many questions which are very helpful to me. I heard quite a
few within the limited time. Yesterday I had a meeting with the chairman and
the vice chairman at which I heard a number of things and began to understand
certain general conditions. As to details, you should hold a meeting to
discuss them. Ch'en Yun and XXX, vice premiers of the State Council, will -
make a report to you. The government would like to discuss with you ways to
solve your problems. All solvable problems will have to be solved. Some of
the problems I haven't studied and therefore I cannot offer any solutions.
The government will make a study of the problems that you have brought up
and Vice Premier Ch'en Yun will consider ways to solve those solvable problems.
Since the inauguration of public-private joint enterprises, great
progress has been achieved by industrial and commercial circles. We feel we
have come to know you better and to be closer with you. Subsequent to the
inauguration of public-private joint enterprises, the only problem of the
capitalists is that of fixed interests. Their reputation in society has
changed, and they have shown great enthusiasm in learning — politics, current
events, skills and methods of administration. I was told that training
classes have been inaugurated at all places with several hundred people
joining in each city. In Shanghai several thousand people 'take part in one
session. In 10 sessions there will be tens of thousands of participants.
This is a manifestation of great patriotism and the fervent spirit of learn
ing of the industrial and commercial circles. They are anxious to work for
a new state, to study economics, and to acquire skills. All members, large,
medium or small, are willing to learn.
My classification of capitalists in three categories — large, medium
and small — shows the improvement of my understanding of them. Previously,
I thought it would be very difficult to reform them. Even you yourselves

had not expected that you would have reformed so quickly and that the tide
of learning would be so high. Are you going to develop self-criticism?
(Answer; "We will,") At last year's conference of the All-China Federation
of Industry and Commerce many made a self-examination. This is a technique
of the Communist Party. We have thought of promoting this technique among
democratic parties but as yet without too much success. This technique was
recently employed at the conference of the China Democratic National Con
struction Association, developing criticism and self-criticism. This is a
technique for the people to solve their internal problems <— advancing
opinions, presenting demands, solving problems, and achieving unity.
We have undergone two revolutions. The democratic revolution of the
bourgeoisie is over and presents no more problem. Now the socialist revolu
tion has been essentially accomplished, but not yet fully accomplished, for
many problems remain unsolved such as agricultural cooperativization, handi
craft cooperativization and public-private joint enterprise. Even when the
whole reform program has been completed, there will still be many problems,
endless problems. What are said to be problems are contradictions, dis
harmony, and disequilibrium. Problems of livelihood and employment as well
as domestic and foreign problems are full of contradictions. Somebody has
said: Why should there have been a Beria in Russia? Even Stalin himself
made mistakes. In China there was Kao Kang. Even Hong Kong was engulfed
in turmoil. There were problems of Poland, Hungary, and the Suez Canal.
The world is full of problems. The problems that we brought up today are of
one type: they are the problems of the industrial and commercial circles
and of the large, medium and small components of these circles.
Let me now talk about current events.
Do you think that socialism will succeed? Do you have doubts about
its success? Do you fear that the socialist camp will collapse? In my
opinion, even if it should collapse, there will be no big danger. But I
don't think it will collapse, not at all. The principal components of the
socialist camp are the Soviet Union and China. China and the Soviet Union
stand together. This is a right policy. But there are still people who
have doubt about this policy. They say, "Don't stand-together," They think
that China should take a middle course and be a bridge between the Soviet
Union and the U.S. This is the Yugoslav way, a way to get money from both
sides. Is this a good way? I don't think it is good at all for it does no
good to the nation. For on one side is powerful imperialism under whose
oppression China had been for a long time. If China stands between the
Soviet Union and the U.S., she appears to be in a favorable position and to
be independent, but actually she is not. The U.S. is not dependable. She
would give you something but not much. How could we expect imperialism to
give us a full meal? It won't. Imperialism has been oppressive to Asia,
Africa and Latin America. India has suffered oppression for more than 200
years. She has never been given a full meal. Imperialism is stingy. The
imperialist powers are such nations as Britain, the U.S., France, and the
Netherlands. It was the eight powers whose allied expeditionary forces

burned down Yuan Ming Yuan. It was also the Imperialist powers that seized
Hong Kong and Taiwan.. Hong Kong is Chinese territory. Why should it have
been ceded to Britain? Why was the Bandung Conference able to unify the
Afro-Asian countries? Because these countries had been under the oppression
of imperialism which, in this case, was the U.S. Latin Americans who came
to visit China were very friendly to us. Just today I received a raz
representative. Brazil is a large country with a population of 60
and an area as large as China»s. It has been under the oppression of U-S-
Imperialism all these years. Illusions of seeing as a
Soviet Union and the U.S. and Britain for profit ~
this kind of thinking
is wrong. We do not know how to design a big plant. Who would do it
us? Who would design large plants for us ~
such as chemical industry,
steel industry, petroleum industry, tanks, airplanes and manufacture of
automobiles? Britain had never designed these for India. Recently,
"
the Soviet Union designed a steel and iron works for India, Britain and the
U.S. each followed up with designing one, too, just to try to win
•
India's first alkali plant was designed by a Chinese engineer Hou Te-pang
[0186 1795 2831]. Imperialism wants to keep its technology secret. No
imperialism has ever designed anything for us. Democratic parties, demo
cratic personages with no party affiliations, high-class intellectuals,
-
religious circles, industrial and commercial circles and certain proletarian
still have the illusion that the U.S. and Britain would help us. We should
launch a propaganda campaign on the rationale of leaning to one side.
we lean to one side, we are with the Soviet Union and on equal footing with
her. We won't encounter problems such as those Poland and Hungary have
faced. We are followers of Marxism but we do not blindly copy Soviet experi
ence. To do so would be a mistake. Our industrial and commercial trans
formation and agricultural cooperativization differ with the Soviets . n
the several years after agricultural cooperativization, their production
decreased, but our production has increased. We have
industrialists and businessmen, eliminating them as a class and taking them
all into our fold as individuals. Industry and commerce are not a burden to
the state but rather a source of wealth. In the past they have been a posi
tive force. Economically, they have been modernized; they are no
the handicraft stage. Politically, they are against imperialism. Therefore,
they have two-sidedness, one of which is its revolutionary character. Since
the establishment of the people's government, they have cooperated with it
and all enterprises have been put under public-private joint operation,
these things we cannot say that the bourgeoisie is useless to us; it is us -
ful, very useful. The workers do not understand this because, in the pa t,
they have had conflicts with the capitalists in the factory. We should
therefore explain the situation to the workers. Especially since the
tide of learning of the industrial and commercial circles and in view of your
desire for learning, the workers would change their attitude toward you.
propaganda aimed at the/capitalist should stress the importance of linking
individual interests with state interests, promoting patriotism, and, in
short, keeping in mind the state. In the cooperativization movement in
Hopeh province the former slogan was "If you want to develop your home,
plant cotton." The result was that people only took care of their homes.

The slogan was defective and has since been changed to: "If you love your
country and want to develop your home, plant more cotton," thereby linking
the home with the country. You should now link up your home and your coun
try to which you belong. Our country is poor, very poor. This year steel
production amounts to only 4.5 million tons. Not until next year will there
be 5 million tons. Japan's production is 7 million tons. If we want to
catch up with Japan, we will have to wait until the third five-year plan
before reaching a production of 10 million tons.
The main point of discussion of this meeting concerns your own affairs,
but they should be linked with state affairs. When you return to your own
town, your propaganda on education should also be linked with state affairs.
It will take decades and even centuries for us to produce tens of millions
or hundreds of millions of tons of steel. We should stimulate patriotism.
Why must we promote public-private joint enterprises? Why must we promote
socialism? Because we want to develop our country, to develop a national
economy and ,a culture better than the system of private ownership and to
ensure nati'onal independence. Economically, we are still not independent.
We cannot manufacture big machines nor precision instruments. We can manu
facture only medium-sized machines. We have just begun manufacturing air
planes and automobiles. Which country made the designs for us? It was the
Soviet Union. We should cooperate with the Soviet Union. In our country
there is no anti-Soviet movement as in Poland and Hungary; nor in industrial
and commercial circles or among college students. About 70 percent of our
college students are the sons and daughters of the bourgeoisie and the land
lords. We need to rally and educate them. Since they are your sons and
daughters, solving your problems will also benefit them. The Youth League
wishes to solve their problems of enrolling in schools, joining the League,
getting stipends, and wearing the red scarf. Stipends should be given on
the basis of scholastic achievements and family conditions. They should
not be given to those from big families, but from middle, small and poor
families. Joining the League and the Party should also be on this basis.
These conditions can be fully carried out in China. Colors and thoughts are
not uniform. There is always two-sidedness—progressiveness and backward
ness. This is a fact. One's duty is to learn. If everything were good,
then everybody would be Confucius. If everybody in the street was a sage,
would Chiang Kai-shek and Hitler who had also been in the street be sages
too? Would aggressors against Egypt and secret agents be sages also? Men
are different from each other. If we say that all capitalists are patriotic,
the statement is untrue. There are positive and negative elements. To
differentiate them is to learn. Otherwise one doesn't need to learn and can
automatically become a sage. K'ang Yu-wei [1660 2589 3634] said that before
he was 30 he could write a well-developed essay. After 30, his power of
learning was developed to the highest point. It was not without reason that
he later played a leading role in the restoration movement. One should not
feel satisfied with one's own knowledge. Even when one is 70 or 80, there
is much that one doesn't know. We should make a greater effort to learn,
for there are still many things we don't know. Uncle Ch'en, you are a
Hanlin [holder of a literary degree in the old system]. You know astronomy,
geography, all the ancient philosophers, the three religions and the nine

schools of thought. Are you really well-versed in all these fields. You are
a Hanlin. I am nobody. I don't even have a degree. I know very little.
To admit one's shortcomings has its merits, Among you are holders of second
and third [advanced] degrees who will be given the task of aiding others in
study.
Was the Hungarian incident good or bad? Problems should be exposed.
It is good to expose them. A pustule will burst and emit pus. Those countries that imitated the Soviet pattern and failed to face up to reality have
not been doing well and, in fact, have gone wrong. Herein we learn a lesson.
What we do should be based upon the universal truths of Marxism-Leninism and
should be in accordance with the reality of China. We have brought up the
slogan "Learn from Soviet experience," but never have we proposed to learn
from the Russians' backward experience. Do they have any backward experience.
Yes, they do. For instance, their suppression of counterrevolutionaries is
carried out by public security organs. In China it is carried out by organi
zations and schools under the direction of local party committees, not by
public security organs. We do it under total mobilization and in full array
but the Russians do it mysteriously. Democratic parties do it themselves.
Are there some persons who are afraid of suppressing the counterrevolutionaries.
Are they afraid that the move might affect themselves? You have your hardships;
the workers have theirs. The government will listen to the views of both sides.
You have problems of employment; so do the workers. Your unemployment
has not been solved; nor has the workers'. The Hungarian incident shows that
underground counterrevolutionaries had established a counterrevolutionary
command and started plotting rebellion several months ago in collusion with,
foreign powers. The situation in China is different. Counterrevolutionaries
have been largely liquidated. They have also been liquidated from industrial
and commercial circles. Only a few individuals remain. We can absolve those
who connived and dealt with the Kuomintang in the past, especially prominent
men who were compelled by circumstances to cooperate with them. Even our
party cooperated with the Kuomintang at one time. I was a member of the
legislature in the capacity of a distinguished personage of society. I
went to Chungking to attend meetings. In the past I participated in the
Kuomintang and the San Min Chu I Youth Corps. I mention this fact but no
importance need be attached to it. Some counterrevolutionaries are active
right now. If anyone is now a transgressor, then we should not let him go,
no matter to which class he belongs. I think the number is small. Today
industrial and commercial circles are purer than before. Unlike their old
selves, they have far fewer counterrevolutionaries. We can set our minds at
ease. The few individuals are exceptions. No Hungarian-incident would
happen in our country. Since the Pan Han-nien [3382 3352 16281 and Hu Feng
affairs of last year to the present, over 4 million people have been investi
gated. Of 160,000 suspects, only 38,000 were counterrevolutionaries, or 1.2
percent [sic]. The previous estimate of 5 percent was inaccurate because it
was based on subjective observation, not objective fact. Actually, there is
only 1.1 percent in organizations and schools and the percentage in society
is even smaller. If these germs are not eliminated, "they will multiply to
of thousands and will cause disturbance from within. Eliminating them

is an education for the broad masses. The remaining 120,000 suspects were
declared innocent. We apologize to them for having accused them wrongly.
Those 38,000 counterrevolutionaries.will not be killed, About 1 percent will
be reformed through labor while the rest will remain in their original posi
tions. This year we are planning to clean up X X X persons, using far better
methods. There are about 4 million people who need to go through this pro
cess. Major factories and private enterprises will not he included so that
they won't be disturbed for the present. Later on, when they are subject
to being cleaned up, we shall need your participation. The All-China Federa
tion of Industry and Commerce, the China Democratic National Construction
Association, the urban Communist Party organizations will all have to take
part in this cleaning up. It will still he directed at individuals
the
genuine counterrevolutionaries, not those who had associated with the
Kuomintang, or had joined the Kuomintang or the San Min Chu I Youth Corps,
nor those who first did bad things but later did good things. My talk today
is on political problems. You are concerned with economic problems. You
may not be too interested in my talk. To sum up, China's position vis—a—vis
foreign powers is good. The Hungarian incident has been basically settled,
though there may be further disturbance in the world. Don't feel upset
because of Kao Kang, Beria, Stalin's mistakes, or the Hungarian incident.
Sleep at ease. On 19 October many people in Hong Kong could not sleep. But
after a few days they were able to sleep again. If you think the government
has not given you enough help, you may bring this up. The government can
give you more help. By now you should know well the characteristics of the
government. We are the same group. We consult the people, the workers, the
peasants, the capitalists, the petty bourgeoisie, and the democratic parties
on whatever we plan to do. You can call us the consulting government. We
do not put on a stern face and lecture people. We do not give anyone a
stunning blow if his opinions are not sound. We are called the people's
government. You may bring up whatever ideas you have. We don't ill-treat
people under any pretext.
You are concerned about how to solve the problems of the large, medium
and small enterprises and the problem of fixed interest. The large, medium
and small ones should be separated into different levels. I have some
suggestions to make in this regard and wish you to think them over to see
whether they are feasible. The small ones, which represent 80-90 percent
of the total, should not be included in the bourgeois group, but should be
called,upper-level petty bourgeoisie. This was done before. For example,
a doctor with 2 or 3 apprentices was considered a petty bourgeois, fisherman
and boatmen employing 10-odd persons were also not classified as bourgeois.
During land reform, some owners of small plots of land for lease were not
called landlords. This benefited several tens of thousands of people who
were very interested/in their title. Capitalists' agents and those drawing
low interests who do not want to participate and who want to remain the same
may be excluded for the next 2 years. This delay will make it possible for
90 percent of the people to continue to receive their fixed interest, while
only 10 percent of the people will suffer a loss. The remaining ones are
the large ones. According to economics and the American system, more than
v/

30 persons constitute a big plant. Those with less than 20 or 15 persons
may give up Itheir fixed interest] if they wish; those who do not want to
may continue to receive it. All of you are very much concerned about the
duration of the fixed interests. The basic principle is to solve problems,
not to damage the benefits of enterprises; particularly those of the large
ones.. Do the large ones or small ones play a more important role in the
national economy and the people*s livelihood? The small ones represent
more people, 90 percent of the total. But their economy has no decisive
effect upon the nation's economic life. The greater effect upon the
national economy still comes from the large organizations. You say that
the Chairman takes special care of the big capitalists but not the small
capitalists. Is this right opportunism? You should analyze the situation
to see if it is right to take special care of the small organizations. The
small organizations have more people. It is wrong not to plan for them and
solve their various problems. But the large organization has its claim for
its size. A large one can match several tens of thousands of small ones.
For the capitalists, our party has established certain lines, such as the
United Fron'tl Department, for the medium and small organizations. These
lines are not correctly drawn. The medium and small ones should of course
be taken care of. We now put them in the petty bourgeois groups to solve
their problems accordingly. The peasants are the petty bourgeoisie of the
villages. There are also petty bourgeoisie in cities. Those who receive
fixed interests worth only several packages of cigarettes are petty bour
geoisie. Capitalists agents are also classified in that category. The
importance to the state of the large public-private joint enterprises and
their nationalization is great. Without industry we cannot live and with
out agriculture we won't have food. If we do not take care of the large
capitalists, 90 percent of them will break away. The few left behind will
present a sordid sight. When all others are red, the few white will feel
ill at ease.
The Central Committee of the Chinese Communist Party has discussed
the duration of fixed interests. It felt that the duration should not be
too short. Redemption should be true redemption without deception. Actually
not much money is involved in payment. Some people ask how many more years
will go by before the redemption. In the documents of the Eighth Party
Congress the subject is broached but we still want'to consult you on whether
this problem can be solved." The small enterprises and the workers will
object. The workers will say we are making it too advantageous for the
capitalists. In their opinion they should be cancelled immediately. For
the medium and small enterprises this can be done in one or two years. Why
should it take so long? There are two oppositions. The first is the workers.
The second is that 90 percent of the medium and small enterprises are envious
of the comfortable life of the large ones. We have to convince these people
that redemption should be carried out thoroughly, not half redemption and
half confiscation. The Chinese national bourgeoisie has two sides, one of
which is revolutionary. Its actual capital is not big. Private industrial
shares total 1.7 billion yuan equivalent to less than U.S. $7 billion. With
this small capital how could China not be put at a disadvantage? Imperialism
.-•it;

has taken advantage of us not without reason. In view of this small national
capital we should redeem it fully. We need not save this money. We should
convince the workers that we should not do anything detrimental to the
interests of the large capitalists for they are beneficial to the state.
We should not save this small amount of money but carry through the project
of redemption with fervency. If necessary, we can prolong it to the third
five-year plan. What do you think of a little prolongation? If it can be
completed in seven years, that will be fine. But if it cannot, we can
prolong it to the third five-year plan so long as this is feasible. We
should help the medium and small enterprises solve their problems because
their number is larger. The number of large capitalists is small, but
their capital is larger, much larger than that of the medium and small enter
prises. For this reason the medium and small line is wrong. It should be
a large", medium and small line. The people's reconstruction is a large
line. It is right to use the large as a basis. At the conference of the
All-China Federation of Industry and Commerce delegates of medium and small
enterprises form the majority. We should help them to solve problems and
at the same time enjoin them not to do anything detrimental to the interests
of the large enterprises because the latter plays a great role in the
national economy. Any detriment to their interests would not be good for
workers, peasants, the state and the medium and small enterprises. The
medium and small enterprises wish to dispose of their interests as soon as
possible whereas the large enterprises wish to hold on to them as long as
possible. You may do whatever you like — to dispose of your interests as
early as you like. The highest value of any enterprise in the first seven
years. If the medium and small want to reclaim them, they can. Would this
be satisfactory? No law has yet been enacted. We can consult on what we
should do. If, after seven years, we still find no solution, we can post
pone settlement a little longer. We should first take care of the interests
of the workers. There are 1.6 million workers in capitalist industries and
900,000 employees in capitalist businesses, totalling 2.5 million persons.
Workers and employees in state enterprises will also be involved. All of
them will be opposed to what we plan to do for the capitalists. On this
problem they are in contradiction with the party. Are we falling into right
opportunism? Are we becoming a capitalist party? We have to explain to
them that what we are doing is beneficial to the entire nation, to the workers,
the peasants, the petty bourgeoisie, and the medium and small enterprises.
They may not understand what "beneficial" is at the moment. Among college
students 70 percent are the sons and daughters of the bourgeoisie. These
students don't want any inheritance, but they will be satisfied with how the
government is treating the capitalists. Members of democratic parties,
democratic personages with no party affiliations, leaders of the upper level
of minorities, and religious circles will agree with us. But they won't
agree to an early cancellation of fixed interests. Then there are foreigners
visiting China who always go to Shanghai to see Mr Jung I-jen [2837 3015 0088]
and to see how many automobiles he owns, one or two, and whether there is a
piano in his house. After seeing him, a French capitalist said that if the
French communists did the same to the capitalists he would feel satisfied.
The effect upon Afro—Asian and West European countries would be great too.

Therefore, it will do no good but harm if we abolish fixed interests at an
early date. Actually not much money is involved in paying interests ~
one year, only 125 million yuan and some people say, 110 million yuan,
totalling 800 million yuan in seven years. This money is not given to
Japanese or Americans but to Chinese. "The fertile water is
into
other people»s fields." "A horse of Ch'u is caught by a m^ of Oh u.
This
money represents the state's purchasing power. It also redeems state bon .
it may also be used to run factories. It is worth spending from all con
siderations. Among the delegates at this conference ^l^ose from^dium and
small enterprises form the majority. You can do the job of explain g.
who are from medium and small enterprises should bear the
explaining to your people. The delegates from large
well do this. When they try to name some advantages, they cannot
y
.i aO CnXS. WIICU Ulic/ \.l.J uu
-
: 1J 1
say, for instance, that the duration of fixed interests should be sev
years. We need Vice Premiers XX, XXX and delegates from
,
enterprises to go and explain whether the Communist Party is 8° "S ° ®
,
the fixed interests for large enterprises. Mr Jung
^in^nnn^ranitalists
half of Peking. All eyes are turned on him. Of more th^ 10,000 P . ..
in the country there are probably only several thousand large ones,
watch them rather than the 120,000-medium and small ones.
to handle the large ones. We need only launch a campaign aga ns
much sound and fury. Handling the medium and small enterprises needs e
less effort, Nothing to be-published in the press — once
is Pub
lished in the press, they surrender — and no campaign to be launc
"
^
report on this conference needs to say only that delegates and group
of the All-China Federation of Industry and Commerce and China Democratic
National Construction Association participated and that I h^ analyze
domestic and foreign politics and also discussed the ®®°ao^c problem. But
the report need not go into the details of my talk. Should the details be
divulged, the workers and those of medium and small enterprises would rebuke
me. They would say that communists are after all communists; why should they
not communize property? People allege that communists have three heads and
six arms and.are very fierce. But actually we have only one head and two
arms. What we do is "in accordance with heavenly principles, human relation
ships, the world's trends and the people's needs. Men with
vision who act resolutely cannot help but succeed.
This is what Dr Sun
Yat-sen, the,great revolutionary leader, said. Our two revolutions are a
continuation of the work bequeathed by Dr Sun — consummation of the demo
cratic revolution of the bourgeoisie and completion of the socialist revolu
tion. These two revolutions paved the way for national construction. They
I were means to an end. They aimed at changing production relationship md
-'the superstar^fetjura V the government, ideology, laws, politics, economics,
culture, and .the arts. But the basic problem has not yet been
JJ®
objective isJ^iot^ to establish a new government and a new production relation
ship, but to develop production. During the past years production has been
ijieveloped buWj;pAa very limited extent. In spite of our boast our pr du t n
of steel this year is only 4 million tons. Next yaar t s es ^ nomila
5 million t<iis, and.5 years after, only some 10 million tons.
® P ^ "
tion of more than 600 million, China can easily surpass Japan and France n
production. But it will-take at least 40-50 years for China to catch up with
.1.).

the U.S. in steel production. May I ask you to turn your attention to this
matter. Comrade Ch'en Yun met a Swedish friend who told him that Sweden
has a population of only several million but every person has an average of
two tons of steel. Their total population has therefore several hundred
million tons of steel. The U.S. has only 100 million tons of steel. To
reach Sweden's output the U.S. has to increase its steel production several
times. That's why the U.S. underwent a democratic revolution and is now
engaged in a socialist revolution. When the All-China Federation of Indus
try and Commerce and the China Democratic National Construction Association
hold meetings, what do they study? None other than how to reach these goals
— several hundred million tons of steel and also opening more schools in
stalled with radio receivers. The people all over the country should at
least be graduates of junior middle schools. In a few more years street
scavengers, cooks and all other persons would be college graduates who would
know astronomy and geography. All work aims at this goal. Chiang Kai-shek
deserves a sound beating because he had not done a single good thing. In
20 years he had produced only 50,000 tons of steel. In eight years (includ
ing next year) we will have produced 5 million tons of steel. Chiang's mind
was not on his work. I hope you will lead these 10 million and more people
in the direction of production. With several decades of work, we can reform
ourselves culturally. Therefore, we should unite all who can be united.
In January of this year, at a conference of the State Council, I said
that it would probably take about three more years for us to basically
complete the socialist revolution. This statement caused considerable reac
tion. Some people asked whether it could really be so quick. I used such
modifiers as "probably," "basically," and "about." What is "basically"? It
means that in public-private joint enterprises interests have not yet been
cancelled. I think it is wise to fix a longer period so that we can complete
the project ahead of schedule. Nobody had expected that public-private joint
management could have been carried out so soon. But nationalization is not
being enforced as hastily. If it is hastily carried out, it won't do any
good to the state or the nation. We need not spend much money and we keep
our promise. Our action will affect foreign capitalism. It would help
reform the world's capitalists. Nehru, Sukarno, U Nu, and the French capi
talist Pathe Co. are all watching us, watching Jung I-jen.... The present
situation and that which I talked about last spring are the same. I talk
only about "basic" completion by which I mean public-private joint enter
prises. Total completion will take seven years. Excluding the current year
there are six more years to go. We have to take care of all parties concerned.
We should explain the situation clearly to the bourgeoisie, democratic per
sonages without party affiliations, the enterprises, handicraftsmen, organi
zations, schools, and all workers. Lack of understanding of the situation
will do no good at all.