property neither more nor less than the peasants, in
accordance with the Basic program on Chinese
Agrarian Law. They should be made to work, and
reformed. This is because landlords, after partici-
pating in labour, are no small productive force. This
is also because if we do not distribute necessary land
and property to them, they will rob, steal and beg,
bringing about social insecurity and the peasants will
thus suffer. Even criminal elements, whose crimes are
not of a degree deserving to be given the death
penalty by the courts, must also, be given the
necessary share of land and property. Only thus can
there be social security. If the landlord has industry
and commerce sufficient to support his livelihood, land
of course need not be distributed. If his industry and
commerce is too small to support his livelihood, it is
necessary to distribute a portion of land to him.
Rich Peasants – New Type
There should also be a differentiation between
dealing with new – type and old-type rich peasants.
Some poor farming people in the past have through
labour and production in the democratic regime rose
to become new-type rich peasants, in this period of
equal distribution of the land, they should be treated
as well-to-do middle peasants. During equal land
distriburtion their land in excess of the level of middle
peasants in general can only be drawn upon with their
agreement. If they themselves do not agree, their land
should not be drawn upon. In the past, we encouraged
this kind of rich peasant people like Wu Wan-yu (well-
known labour hero of the Yenan Border Region—
Editor). For instance, develop their production. This
played a great role in stabilizing the middle peasants
and stimulating their production enthusiasm.
Policy on Industry and Commerce
Industry and commerce in general should be
protected. Not even industry and commerce operated
by landlords and rich peasants should be confiscated.
It should likewise receive the protection of the
democratic government. The party’s policy is only to
confiscate the industry and commerce of bureaucratic
capital and really big despotic counter-revolutionary
elements, and place them under the ownership of the
state or the people. Furthermore, it is definitely laid
down that of this industry and commerce to be
confiscated, that which is needed by the national
economy must be enabled to continue and not cease
operations; and still less should it be damaged or be
arbitrarily dispersed. But what about landlords who
during the period of reduction of rents and interests
sold their land and invested in industry commerce—
can confiscation be carried out against them? Both in
the past and in the present, we protect and encourage
this sort of industry and commerce because this is
beneficial and necessary for the prospering of China’s
economy. In acquiring the landlord’s hidden wealth, it
10
must be stipulated that the landlord is not permitted
to destroy his industry, on pain of punishment.
Partial and temporary interest must be subordi-
nated to the over-all, long-term interest. For example,
if the landlord operates coal pits, the peasants may,
from the point of view of their present partial interest,
show their hands in support of confiscating and
distributing them, because if everyone is distributed
a portion of the tools and materials from the coal pits,
it may temporarily solve their own problems. Under
these circumstances, we must persuade the peasants
to understand the advantages of having the coal pits
in existence intact. And that if dispersed, the coal pits
will be ruined and they themselves will have no coal
to burn. This would hinder the economic development
of the liberated areas.
If we want to be independent, public-operated,
private-operated and people’s co-operative handicraft
industry, and rural agriculture must be enabled to
develop, producing large quantities of necessary
goods and grain for the people’s Liberation Army so
that our trade with the outside can maintain equilibrium
or even a favourable trade balance and not rely on
goods from areas controlled by Chiang Kai-shek or
America.
At present, the government trading companies
within the liberated areas do not yet have the strength
to set up stores universally. Co-operatives have not
developed universally, and are sometimes badly run.
Therefore, the existence of private commerce is
necessary. Merchants, of course, engage in
exploitation: the commercial activity of merchants, in
itself, does not produce any value but the question is
not to destroy commerce, but to give leadership to
commerce. While his sort of policy is beneficial to the
people, it is also beneficial to legitimate merchants.
We must collect taxes from industry and
commerce, but we must fix proper tax rates and we
must see to it that they are not too heavy. This sort of
tax rate should be based on the principle of not
affecting their operations and development.
The Intelligentia and Enlightened Gentry
The majority of professors, teachers, scientists,
engineers, artists, etc, come from landlord, rich
peasant or capitalist families. But the work they
themselves do is a sort of mental labour, toward these
mental labourers, the democratic regime should adopt
policies of protection, and should as much as possible
win them to serve the people’s Republic.
Under the KMT rule, the overwhelming majority
among them lead a life economically very difficult and
politically very unfree. Among them, moreover, are not
a few unemployed. As for their opportunity for
scientific creations and inventions, this is extremely
slight. The overwhelming majority, seeing all sorts of
corruption and reaction of Chiang Kai-shek’s and
Class Struggle