wrong. In agrarian policy, it was also wrong to repudiate the correct policy adopted in the early and middle periods of the ten years' civil war, whereby the landlords were given the same allotment of land as the peasants so that they could engage in farming and would not become displaced or go up into the mountains as bandits and disrupt public order. The Party's policy is now of necessity a different one; it is not "all struggle and no alliance", neither is it "all alliance and no struggle" (like the Chen Tu-hsiuism of 1927). Instead, it is a policy of uniting with all social strata opposed to Japanese imperialism, of forming a united front with and yet of waging struggles against them, struggles that differ in form according to the different degrees in which their vacillating or reactionary side manifests itself in capitulation to the enemy and opposition to the Communist Party and the people. The present policy is a dual policy which synthesizes "alliance" and "struggle". In labour policy, it is the dual policy of suitably improving the workers' livelihood and of not hampering the proper development of the capitalist economy. In agrarian policy, it is the dual
policy of requiring the landlords to reduce rent and interest and of stipulating that the peasants should pay this reduced rent and interest. In the sphere of political rights, it is the dual policy of allowing all the anti-Japanese landlords and capitalists the same rights of person and the same political and property rights as the workers and peasants and yet of guarding against possible counter-revolutionary activity on their part. State-owned and co-operative economy should be developed, but the main economic sector in the rural base areas today consists not of state but of private enterprises, and the sector of non-monopoly capitalism in our economy should be given the opportunity to develop and be used against Japanese imperialism and the semi-feudal system. This is the most revolutionary policy for China today, and to oppose or impede its execution is undoubtedly a mistake. To preserve the communist purity of Party members scrupulously and resolutely, and to protect the useful part of the capitalist sector of the social economy and enable it to develop appropriately, are both indispensable tasks for us in the period of resisting Japan and building a democratic republic. In this period it is possible that some Communists may be corrupted by the bourgeoisie and that capitalist ideas may emerge among members of the Party, and we must fight against these decadent ideas; however, we should not mistakenly carry over the struggle against capitalist ideas within the Party to the field of social economy and oppose the capitalist sector of the economy. We must draw a clear line of demarcation between the two. The Communist Party of China is working in a complicated environment, and every Party member, and especially every cadre, must temper himself to become a fighter who understands Marxist tactics. A one-sided and over-simplified approach to problems can never lead the revolution to victory.
The Central Committee's directive of July 7, 1940 is the "Decision of the Central Committee of the Communist Party of China on the Present Situation and the Party's Policy". The Central Committee's directive of December 25, 1940 is included in the Selected Works of Mao Tse-tung, Vol. II, as the article "On Policy".
A hsiutsai was a holder of the lowest degree in the imperial examinations.
J. V. Stalin, "The Foundations of Leninism", Problems of Leninism, Eng. ed., FLPH, Moscow, 1954, p. 31.
The first period of the ten years' civil war lasted from late 1927 to late 1928 and is generally known as the Chingkangshan period; the middle period ran from early 1929 to the autumn of 1931, that is, from the establishment of the Central Red Base Area to the victorious conclusion of the campaign against the third "encirclement and suppression"; and the third period from late 1931 to late 1934, that is, from the victorious conclusion of that campaign to the enlarged meeting of the Political Bureau at Tsunyi in Kweichow Province called by the Central Committee of the Party. The Tsunyi Meeting of January 1935 put an end to the domination of the "Left" opportunist line in the Party, which had lasted from 1931 to 1934, and steered the Party back to the correct line.