Rebirth: I am in Jin-Cha-Ji

It can be regarded as a theoretical issue for further improving the primary stage of socialism.

Then the Prime Minister gave a report on international affairs.

The report mainly consists of three aspects.

They are the "Moscow Declaration" commemorating the 40th anniversary of the October Revolution, the diplomatic changes between China and Europe after receiving Charles de Gaulle, and the development of relations between Asian and African countries.

After discussing diplomatic issues, the Premier also delivered a report on the issue of individual stock dividends during the socialist transformation of industry and commerce. In 1956 and 1957, a large number of cadres from democratic parties retired. While generally smooth, this wasn't without its share of dirty tricks. Many democratic figures were skilled writers, penning short essays satirizing the CCP; that was their specialty.

As a result, rumors began circulating in 1957 that the Communist Party was abolishing the previously agreed "dividends" promised to capitalists, both large and small, during the socialist transformation of industry and commerce following the Eighth National Congress. To put it bluntly, the socialist transformation of industry and commerce meant the government bought out the shares of these capitalists and paid them in installments through "dividends."

As a result, before anything happened in society, some Party cadres were already arguing that the Party Central Committee should stop distributing dividends. They argued that capitalists, big and small, were living a life of extravagance and debauchery, relying on these dividends. This was unsuitable for a socialist country.

Some "red capitalists" who had actively participated in the socialist transformation wrote to the Central Committee, expressing their willingness to stop accepting "dividends." This made it seem as if the Central Committee really wanted to stop "dividends."

This is not a good thing.

If this had been the case immediately after liberation, this "dividend" would have been a significant sum. But for China in 1958, it was no longer a significant burden. The central government would not allow itself to be perceived as dishonest for a small sum of money.

The Prime Minister has received too many reports on this matter since 1957.

Therefore, after consulting with other central leaders, the Premier made a special report at the Second Session of the Ninth Central Committee. This report reiterated that the Communist Party is honest and trustworthy. Since they had agreed to pay them "dividends" over a certain period of time, they would absolutely not stop early. They would follow the agreement: if they were due ten years, they would pay them ten years; if they were due fifteen years, they would pay them fifteen years.

Next, Chen Yun reported on the economic development issues of the past year.

Then came the "Draft Report on Central and Local Industrial Development Issues" and the "Draft Regulations on Improving the Fiscal System and Dividing the Fiscal Management Powers between the Central and Local Governments."

After the Ninth National Congress, the Finance and Economics Working Committee, after a year of discussion, finally produced a plan for central and local cooperation in industrial development. Historically, the central government's decision to decentralize some enterprises to local governments was truly drastic.

Two-thirds of the centrally controlled enterprises were decentralized to local governments. For example, the central government decentralized the chemical fiber industry, which was then completely under its control, to local governments, allowing them to develop the industry on their own.

It looks light.

But the final result was that industrial construction was a mess.

When the central government controlled these enterprises, the plans they formulated were interconnected and integrated into a holistic development strategy. However, after decentralization to the local level, cooperation between factories in the same field became much more difficult. Previously, the only supervisors were the various ministries under the State Council, and many decisions could be made by these ministries alone. Even when multiple sectors were involved, the State Council could coordinate on its own. But after decentralization to the local level, they now have the local government as their supervisor.

There are conflicts of interest between the local and central governments, not to mention conflicts between local governments. Even if factories under the same leadership want to cooperate, it is not just a matter between the two factories, but a matter between two provinces.

For example, after some steel mills were decentralized to local governments, if the iron ore and coal they needed were not from their own province but from other provinces, they would need to re-coordinate. Even if these steel mills had previously cooperated with these coal mines, they would still need to re-coordinate and re-partner.

Just the coordination involved will generate so much institutional cost, so many conflicts, and so much time wasted.

One can imagine the chaos that would have ensued after the central government suddenly and massively delegated power to local governments. Consider the coal mining industry. After the central government massively delegated coalfields to local governments, coal production soared.

In 1957 and 1958, the quantity increased by million tons each year.

Then things started to go wrong.

What happens to the coal produced? In the past, national coal consumption was regulated by the state. The central government monitored national coal demand and allocated coal accordingly. While this allocation had its share of problems, it at least helped manage coal production and consumption.

But what happens after the coal mine arrives at the destination?

They pushed for production without regard for coal sales, focusing solely on production. As a result, after the massive coal production in 1957 and 1958, they were at a loss as to what to do with it. Major coal-producing provinces, with their surplus, didn't know what to do with it. And provinces with insufficient coal resources, despite wanting coal, faced numerous difficulties.

In the past, all we had to do was coordinate with the central government.

However, after local governments took charge of coal production, they had to deal with many more departments. Consequently, major coal mines suffered significant losses. This was the result of artificially changing the nature of factories without implementing supporting measures.

The industrial system that was originally operating well was suddenly artificially divided and its operation became sluggish.

In comparison, this time and space was much more cautious. The Finance and Economics Working Committee spent over a year discussing which industries to delegate to local governments. This wasn't just an internal discussion, but also involved coordination with lower-level provinces. Wei Hongjun even directly suggested limiting blind investment by local governments.

This is not just Wei Hongjun's suggestion.

This is true for the light industry sector, the agricultural sector, and other sectors such as transportation, culture, education, and health. This is because if investment in the industrial sector increases, investment in other areas will decrease.

Furthermore, if local governments go crazy, as has happened historically, 70% to 80% of their fiscal revenue will flow into the industrial sector, particularly heavy industry. This will severely impact other sectors. Some provinces have even resorted to massive bank loans and debt to develop heavy industry.

Historically, due to frenzied local government investment, industrial investment doubled in 1958 compared to 1957, increasing from approximately 150 billion to nearly 300 billion. Furthermore, the number of employees nationwide increased by over 2000 million within a single year, meaning an additional 2000 million people were dependent on the government. This completely overwhelmed the fiscal system. Furthermore, because most of the funds and resources went into heavy industry, the pressure on rural areas increased significantly. To feed such a large population, the central government had no choice but to increase grain purchases from the countryside.

The steel industry has been hit particularly hard.

Because local governments invested too much money in industry, the demand for steel surged, causing steel prices in the market to increase exponentially. Seeing such high demand for steel, the central and local governments began to invest frantically in the steel industry.

and then?

Using various traditional steelmaking methods, one-third of the steel produced is scrap steel.

you could put it that way.

The economic problems that began in China in 1958 weren't simply due to the Great Leap Forward. They were the sudden, artificial halt of the entire economic system, leading to an undue surge in intermediate costs. Then there was a serious imbalance in investment, which dealt a heavy blow to light industry and agriculture.

What were the main adjustments made by the central government in adjusting the economy starting in 1962?

Taking back the enterprises that had been decentralized to local governments and cleaning up and closing down the industries that local governments had started over the past few years was like going full circle, returning to the situation in 1957.

Of course, the central government was also somewhat anxious at that time.

It's not that the central government necessarily devolved so much industry to the local governments. It was because of the problems with cooperation with the Soviet Union that the central government felt a sense of urgency, and so it wanted to mobilize local initiatives. However, China currently does not face such pressure.

Therefore, the Finance and Economics Working Committee has enough time to slowly coordinate with local governments to see which factories to transfer to them.

Furthermore, when delegating industrial functions to local governments, the Finance and Economics Working Committee imposed strict restrictions on local government investment. Local government funds flowing into industry could not exceed 50% of the total, and heavy industry investment could not exceed 70%. Strict regulations were also imposed on banks, prohibiting large amounts of funds from flowing into local industrial investment without the approval of the Finance and Economics Working Committee.

However, despite the many restrictions imposed by the central government on local governments, local governments are still very welcoming when they hear that the central government is going to decentralize part of the industry. After all, with industry, there will be accumulation and tax revenue.

Chen Yun gave a report on this part for several hours.

Because a large number of key leaders from local provincial party committees and governments attended the Second Session of the Ninth Central Committee, such a meeting could further unify understandings and facilitate a smooth transition to this economic adjustment.

If this economic adjustment is successful, local economic development will be more dynamic in the future.

After Chen Yun finished his report, Deng Xixian, on behalf of the State Council and the Financial and Economic Work Committee, made an adjustment report on the "Second Five-Year Plan" and issues of cooperation with the Soviet Union, Western Europe, and Eastern European countries.

There is a lot of specific data involved here.

However, the current senior CCP officials are no longer the same as they were just after liberation. Many of them handle work in central ministries and commissions, and are key leaders of local provincial party committees and governments. They are no strangers to these data.

Everyone pays attention to this point.

After the adjustment of the "Second Five-Year Plan", what changes will occur in the ministries and provinces under my charge?

Marshal Nie gave a work report on the Political and Legal Affairs Commission over the past year.

The Political and Legal Affairs Commission’s plan is clear.

Regularization from top to bottom. Because China currently faces a severe shortage of judicial talent, the Political and Legal Affairs Commission (PLC) is unable to implement a professional and standardized team building system nationwide. Therefore, the PLC is starting with regularization from the top down.

As for counties, districts, and even townships, they still rely on the people's war, which the CCP is best at.

In some townships with relatively good public security and a strong cadre base, the Political and Legal Affairs Commission lacks a formal department at all. At most, a special public security commissioner is assigned full responsibility for the work of the local Political and Legal Affairs Commission, overseeing all public security, procuratorial, and judicial functions. While this special public security commissioner may appear to be a lone commander, he or she is not without troops, as he or she can mobilize the entire township and rural militia. This includes the security departments of businesses large and small, all of which are subject to the special public security commissioner's deployment when needed.

Marshal Nie originally wanted to act decisively.

But after the investigation, people became discouraged, because the formalization of the Political and Legal Affairs Commission cannot be rushed. Therefore, the focus of the Political and Legal Affairs Commission's work is on areas with complex economic and security situations, and areas with poor transportation conditions.

In some places with a good revolutionary foundation, a good public security situation, and relatively good relations between officials and the masses, much less effort is invested.

The current work of the Political and Legal Affairs Commission requires collaboration with local governments and grassroots organizations. Many issues that would have led to lawsuits and imprisonment decades later can now be resolved at the grassroots level.

After delivering the Political and Legal Affairs Commission's annual work report, Marshal Nie also presented a report on the draft amendment to the crime of dereliction of duty. Although it's only been less than six months since the NPC passed the law, the public security, procuratorate, courts, and the Central Commission for Discipline Inspection have already handled several cases involving dereliction of duty. In essence, they were just waiting for the NPC to pass the law before they could begin handling cases.

However, within just six months, while handling the issue, several loopholes in the original "malfeasance" law were discovered. While prosecuting officials under this law, the public security, procuratorial, and judicial authorities discovered that some individuals were clearly guilty of dereliction of duty but were not covered by the law. Therefore, a draft amendment to the "malfeasance" law was proposed at the Second Session of the Ninth Central Committee. Once approved by the Second Session, it could be submitted to the Standing Committee of the National People's Congress.

After Marshal Nie finished his report, Tan Zhenlin made a report on behalf of the Central Supervisory Committee.

The main focus was on the various cases handled by the Central Commission for Discipline Inspection over the past year. After reporting on his work, Tan Zhenlin prepared a draft of the "Regulations on Disciplinary Actions of the Communist Party of China."

This is a really big deal.

Since its founding, the Communist Party of China has consistently emphasized Party discipline. At the Sixth Session of the Sixth Central Committee in 1938, the "Decision on the Working Rules and Discipline of the Central Committee" and the "Decision on the Working Rules and Discipline of Party Organizations at All Levels" were adopted based on the Chairman's recommendations. This marked the beginning of the formalization of Party discipline at the central level, as evidenced by the Central Committee's approval.

However, it was not until the Seventh National Congress of the Communist Party of China that Party discipline was truly incorporated into the general principles of the Party Constitution. The Eighth National Congress was the first to incorporate the "Four Obediences" into the Party Constitution: "Individual Party members obey their respective Party organizations, the minority obeys the majority, lower-level organizations obey higher-level organizations, and some organizations uniformly obey the Central Committee."

At the Ninth National Congress, only democratic centralism and the "four obediences" adopted at the Eighth National Congress were emphasized.

After Wei Hongjun began to lead the Secretariat, progress in this area accelerated significantly. This is why Tan Zhenlin prepared this report. Once this draft was approved, the CCP would have formal internal party regulations, eliminating the previously haphazard disciplinary regulations. This draft categorized the Party disciplines that members must observe into political discipline, organizational discipline, discipline on integrity, discipline among the masses, work discipline, and discipline in daily life.

Each discipline has corresponding requirements and corresponding penalties.

Finally, Chen Tanqiu, on behalf of the Organization Department, drafted the "Draft Regulations on the Appointment of Party and Government Leading Cadres."

After eleven days of discussion at the Second Session of the Ninth Central Committee, the "Draft Regulations on the Appointment of Party and Government Leading Cadres", ... Disciplinary Actions of the Communist Party of China", "Draft Amendment to the Retirement System", "Draft on the Nature and Economic Status of Various Types of Industrial and Commercial Ownership Economic Units", "Report on the Issue of Individual Share Dividends in the Socialist Transformation of Industry and Commerce", "Draft Report on the Development of Central and Local Industries", "Draft Provisions on Improving the Fiscal System and Dividing the Powers of Fiscal Management between the Central and Local Governments", and "Draft Amendment to the Crime of Malfeasance" were formally passed.

Although such a major national conference as the Ninth National Congress was held just last year, the Second Session of the Ninth Central Committee still holds a very high status.

Because a large number of system construction drafts have been passed.

1037 Petroleum Conference

During the Second Session of the Ninth Central Committee, the Chairman exchanged views with central officials and delegates. The Political Bureau of the CPC Central Committee then formally submitted a proposal to the Standing Committee of the National People's Congress to appoint Mr. Song Qingling as Honorary President of the State. The Standing Committee quickly approved the proposal.

On March 1958, 3, Song Qingling officially took office as Honorary President of the People's Republic of China and was able to handle affairs on behalf of the President on a daily basis.

The day before the Second Session of the Ninth Central Committee concluded, the meeting approved a reorganization of the Secretariat. The Secretariat was officially reorganized to seven secretaries and five alternate secretaries. The two newly added alternate secretaries were Feng Wenbin, First Secretary of the Communist Youth League Central Committee, and Xia Houwen, Director and Party Secretary of the Central Bureau of Letters and Calls.

After the reorganization of the Secretariat was completed, the Second Session of the Ninth Central Committee officially ended.

While China was holding the Second Session of the Ninth Central Committee, the international situation was constantly changing.

The first one is France.

The French government could no longer continue. The French colonial armies refused to obey the government's orders and directly demanded Charles de Gaulle's resignation. The French government was broke and unable to handle domestic problems, let alone colonial affairs. The French government simply did not have the financial resources to continue supporting the French colonial forces' military operations.

After failing to gain support from the government, these troops became very dissatisfied.

They thought that these French government officials were all civilians, so they thought that it was all the fault of these civilians. These civilians did not understand the difficulties of the front-line troops at all, and did not understand the needs of the front-line troops at all.

But Charles de Gaulle was different.

Charles de Gaulle, a military veteran who led the Free France movement during World War II, was a relatively strong-willed leader. Even many French soldiers viewed de Gaulle's achievements during World War II as remarkable. It was these civilian officials who rallied to force de Gaulle's resignation. Therefore, these colonial troops considered de Gaulle their ally. If de Gaulle were to return to power, they would undoubtedly fully support their actions in the colonies.

So they united and told the French government directly that they would refuse to obey the French government's orders unless Charles de Gaulle came out to reorganize the government.

At this time, several events unfolded. Following Tunisia's independence from France, it actively supported the Algerian National Liberation Front and the National Liberation Army, both of which were fighting against France. Tunisian leader Habib Bourguiba publicly declared his support for the Algerian independence movement and instructed his UN representative to vote "in a manner that contradicts the French arguments." Furthermore, Tunisia provided shelter for the Algerian National Liberation Army.

The Algerian National Liberation Army usually hid in Tunisia and attacked the French army when there was an opportunity. The French army wanted to destroy the Algerian National Liberation Army, but the Tunisian government and army stopped them.

Their actions angered the French army, which launched an air strike on Tunisia.

The airstrike killed 68 Tunisians and injured nearly 130. Two trucks of the International Red Cross operating near the village were also destroyed. The French airstrike completely ruptured relations between France and Tunisia. Tunisia demanded the withdrawal of all French troops from Tunisia, banned French soldiers from leaving their barracks, halted the supply of supplies to French bases in Tunisia, expelled French citizens from Tunisia, closed the French consulate, and threatened to reclaim the Bizerte military base and transfer it to the United States or NATO.

Tunisia wants to completely sever ties with France.

And this time the incident also implicated the United States.

Because the majority of the aircraft used in the French airstrikes were American, the United States immediately intervened, establishing a mediation team with Britain. The United States' active involvement in North African affairs was driven both by a desire to intervene and to continue dismantling the colonial system. Consequently, the Anglo-American mediation team repeatedly urged France to make concessions.