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Acknowledgement This book is a translation of a book written in Chinese. The original book in Chinese is Topic 8 of Selected Topics of the book entitled “The revival of China” written by the author. The book “The revival of China” has many versions, all available at websites https://play.google.com/store/books/author?id=MAO+Min and https://payhip.com/fuxingjimaomin.

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Table of Contents Chapter 1 DENG Xiao-ping coming back (HUA Guo-feng

postponing comeback of DENG Xiao-ping；DENG Xiao-ping coming back) …………………...Page 5

Chapter 2 DENG Xiao-ping became the core of the leadership (Debate on the "practice is the sole criterion for testing truth"; the Third Plenary Session of Eleventh Central Committee of CPC; WANG Dong-xing, WU De, CHEN Xi-lian and JI Deng-kui quitting Politburo; HUA Guo-feng stepped down; The resolution of a number of historical issues since the founding of the New China; The border war with Vietnam) .................................………….....Page 20

Chapter 3 Vindication of unjust, false and wrong cases (Launch of vindication; Vindication record; Celebrities committed suicide during the Cultural Revolution because of unbearable persecution; Celebrities severely suffered mental and physical harm during the Cultural Revolution and died due to illness) ................………………………..,,Page 68

Chapter 4 The beginning of Reform and Opening Up (The Household Responsibility System; The private sector; Special economic zones, The socialist road with Chinese characteristics) .…………,,,,.Page 91

Chapter 5 DENG Xiao-ping upholding the Four Cardinal Principles (Cleaning-up spiritual pollution; Against Bourgeois Liberalization; Student protests; HU Yao-bang stepped down) ...........……………… Page 126

Chapter 6 Continuation of the Reform and Opening Up (ZHAO Zi-yang began hosting the central works;

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The 13th Party Congress; New initiatives of Reform and Opening Up) .......……...……………..Page 153

Chapter 7 The June 4th Incident (Trends on the society; Student unrest broke out again; Preparations for the establishment of new leadership; Cleared through Tiananmen Square; How many people died? ZHAO Zi-yang stepped down; ZHAO Zi-yang was examined in isolation; DENG Xiao-ping retired) ....……………......…………….….Page 172

Chapter 8 DENG Xiao-ping adhered to Reform and Opening Up (Debate after the June 4th Incident; The collapse of international communist camp; DENG Xiao-ping's southern tour began; In Shenzhen; In Zhuhai, In Shanghai; The new round of Reform and Opening Up) ……………………………………..…Page 244

Chapter 9 The period of JIANG Ze-min (MFN status of trade with USA; Entering the World Trade Organization; Hong Kong and Macao's return to China; The Taiwan issue; The Three Gorges Dam; The Qinghai-Tibet Railway; The Xiamen Yuanhua smuggling group; JIANG Ze-min retired) ……………Page 282

Chapter 10 The period of HU Jin-tao (SARS; The Wenchuan earthquake; A new situation across the Taiwan Strait; Corruption officials; HU Jin-tao’s strict constraints on his family members; Examples of economic success; The world's second largest economy).................................………….....Page 335

Appendix Economic achievements of the MAO era (Economic

data of 1976; China oil discovery; Nuclear bombs, missiles and satellites; Meritorious scientist QIAN

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Xue-sheng; Meritorious scientist DENG Jia-xian; Gezhouba hydropower station; YUAN Long-ping developed hybrid rice; Synthetic insulin; Artemisinin; CHEN Jing-run and the Goldbach conjecture; Nixon's visit to China) ..............Page 384

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Chapter 1 DENG Xiao-ping’s coming back After CPC Central Committee Chairman MAO Ze-dong’s death on September 9, 1976, the first vice-chairman HUA Guo-feng became the top leader of China. On October 6 of the year, HUA Guo-feng, YE Jian-ying et al arrested members of the "Gang of Four", JIANG Qin (Ms. MAO), WANG Hong-wen (vice chairman of the Party), ZHANG Chun-qiao (a member of the Politburo Standing Committee) and YAO Wen-yuan (a Politburo member), and put them in incommunicado detention. A Politburo meeting was held in the evening of the day when the "Gang of Four" members were arrested, HUA Guo-feng was elected Chairman of the CPC Central Committee and the chairman of the Central Military Commission. HUA Guo-feng postponing DENG Xiao-ping’s comeback

In October 9, HUA Guo-feng held an informative meeting. In the meeting, he said: “Smashing the 'Gang of Four' is a victory of the Cultural Revolution. Criticism of the Gang of Four should be in accordance to the directives of Chairman MAO and should not count their activities during the Cultural Revolution. Their core problem is the plot to usurp power of the party and the state.” He also reminded everyone to have "a correct attitude towards the Cultural Revolution, towards the masses and towards yourself". In the next day, the "two newspapers and one magazine" jointly published an editorial entitled "The common wish of hundreds of millions of people" to cheer the great victory of smashing the Gang of Four and urge everyone to "study Chairman MAO's theory on

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continuation of the revolution under the proletariat dictatorship, and learn Chairman MAO's series of important instructions on 'Criticizing DENG and counter-attacking the rightist wind of case reverse', deepen the struggle against DENG and continue to count-attack the rightist wind of case reverse." Also on October 10, DENG Xiao-ping wrote a letter that stated: "Comrade (WANG) Dong-xing: please transfer this letter to Comrade (HUA) Guo-feng and the Central. I sincerely support the Central’s decision that Comrade HUA Guo-feng serves as the chairman of the Party’s Cntral and the chairman of the Central Military Commission. I cheer this extremely important decision and its great significance to the party and to the cause of socialism. Comrade HUA Guo-feng is the best suitable to serve as Chairman MAO's successor, not only politically and ideologically, but also because of his young age that can guarantees stability of the proletariat leadership for at least fifteen or twenty years long. How important it is for the whole party, the army and the people! How can one not dance and enjoy? ... I write this short letter to express my heart's true feelings. Long live the Party’s Central led by Chairman HUA!" In October 24, about one million people of Beijing City gathered in Tiananmen Square and held a mass assembly to celebrate the smashing of the Gang of Four. HUA Guo-feng boarded the rostrum of Tiananmen in the song of "Sailing on the sea depends on the helm". The Party secretary of Beijing, WU De, spoke at the assembly: “Comrade HUA Guo-feng is the successor personally selected by the great leader Chairman MAO. ... In addition, Chairman MAO wrote to HUA Guo-

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feng a note that says that ‘when you do things, I do not worry’, which expresses the infinite trust of Chairman MAO to Comrade HUA Guo-feng. ... Now, Chairman MAO's career has a successor and our party has our own leader Chairman HUA Guo-feng. ... We will most closely unite around the Central Committee of the Party headed by Chairman HUA Guo-feng, adhere to continuous revolution under the proletariat dictatorship, take class struggle as the key, and consolidate and develop the victory of the proletariat 'Cultural Revolution'.” On the same day, a groundbreaking ceremony for the Chairman MAO Memorial Hall held in Tiananmen Square. HUA attended the ceremony and gave a speech. He said: "The whole party, the army and people of all ethnic groups of our country should inherit the behest of Chairman MAO, insist on taking class struggle as the key, adhere to the Party's basic line, insist on continuation of the revolution under the proletariat dictatorship and make persistent efforts to advance from victory to victory." In November 18, WANG Dong-xing said at a meeting of propaganda units: "For the movement of Criticizing DENG, there is the No. 4 document approved by Chairman MAO. No matter what, the No. 4 document is always correct and is an instruction from Chairman MAO." On the other people's opinions requiring DENG Xiao-ping's comeback, WANG reminded the participants: “On DENG Xiao-ping’s problem, Chairman MAO said 'to preserve his party membership and see how he will behave'. ... DENG Xiaoping's ability had been tested and, as shown by the test, is far less than HUA Guo-feng's!" When it comes to the Tiananmen Incident, WANG said: "During the period of criticizing DENG Xiao-ping’s

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errors, the counter-revolutionaries took the chance and pushed the riots." At the end of the year, YE Jian-ying said in a Politburo meeting held at Yuquanshan: "I suggest that DENG Xiao-ping comes back to work. Will not we the comrades here be afraid of? Would not he be critical on us after he participates the Politburo?" But HUA Guo-feng did not agree to let DENG come back immediately. When speaking at the "Second national meeting on agriculture for learning from Dazhai's experience" held in December 25, however, HUA did not mention the movement of "Criticizing DENG and counter-attack the rightist wind of overturn". The editorial of the newspaper "People's Daily" published at the beginning of the following year did not mention "Criticizing DENG" either. In January 6, 1977, HUA said at a Politburo meeting: "On Comrade DENG Xiao-ping's problem... it is correct for us to engage in 'Criticizing DENG and Counter-attack the rightists' at that time. However, Comrade DENG Xiao-ping's problem is going to be solved and, in fact, it is gradually progressing. ... At the beginning, it was 'Deeply criticizing DENG', and then 'Continue to criticize DENG', and now 'The Gang of Four criticized DENG by their own way'. ... If let DENG come back to work immediately after knocking down the Gang of Four... would people say that it is overturning the verdict on DENG Xiao-ping and not inheriting the behest of Chairman MAO? ... It is favorable to delay solving the problems that are not urgent to be solved immediately. ... We should, as the old saying goes, 'Let fruits fall off when ripe' and 'a channel formed when water flows'. Our mind should be clear." YE agreed to this approach of HUA. He said to an old cadre: “Comrade (DENG)

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Xiao-ping is going to come back, but at a later time. The car will roll over if turning too fast. The decision on Xiao-ping was raised by Chairman MAO and passed by the Politburo. The decision was 'keep his Party’s membership and see how he behaves in the future'. It is not good to let him come back immediately and it needs a process. Otherwise, smashing the Gang of Four would become a true palace coup." In early 1977, WANG Dong-xing proposed to write a newspaper editorial to “emphasize the importance of holding high the banner of Chairman MAO and stabilizing the situation”. The final draft of the editorial was entitled "Learn the documents and focus on the key". After reviewed by HUA Guo-feng and approval by the Politburo, the editorial was published on February 7. It states: "We must support whatever decision made by Chairman MAO, and we should unswervingly follow whatever instruction given by Chairman MAO." These words were later referred to as "two whatevers". In mid March, HUA said at a work conference of the Central: "The proletariat 'Cultural Revolution' has success of 70% and mistake of 30%. The success of 70% was achieved under the leadership of Chairman MAO and the mistake of 30% was caused by the destructive interference of LIN Biao, CHEN Bo-da and the 'Gang of Four'. If we don't evaluate the 'Cultural Revolution' as such, it will damage our flag. ... Whatever decision made by MAO Ze-dong must be maintained and whatever opinion harmful of the image of Chairman MAO must be stopped." Here HUA talked about another “two whatevers”. Although different from that in the editorial, the meaning is the same: Those said by Chairman MAO must comply. According to the "two whatevers", DENG Xiao-ping

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should not comeback and the "Tiananmen Incident" should not be rehabilitated because MAO Ze-dong determined these when he was alive.

DENG Xiao-ping’s comeback

In March 1977, HUA Guo-feng chaired a work meeting of the Central. At the start of the meeting, he informed the participants: "There are two sensitive issues, one is Comrade DENG Xiao-ping's comeback to work and the other is the vindication of the Tiananmen Incident. Don't touch these two issues in the group discuss sessions of this meeting." But the senior statesman CHEN Yun made a written statement in the discussion session of the Shanghai Delegation, directly stating his views on the two issues. On the Tiananmen Incident, he stated: "(1) The vast majority of the people were in a memorial to Premier ZHOU En-lai. (2) They especially concerned about who will become the successors of the Party after the death of Comrade ZHOU En-lai. (3) Bad guys mixed among the mass were very few. (4) We should check "whether the Gang of Four intervened and whether they had played tricks." He went on to state: "Comrade DENG Xiao-ping had nothing to do with the Tiananmen Incident. I heard that some comrades in the Central have suggested Comrade DENG Xiao-ping to come back to the leadership of the Central Committee of the Party to meet the needs of the Chinese revolution and the Party. This is entirely correct and absolutely necessary. I fully support it." On the same day, WANG Zhen said in the Beijing group: "I want to talk about Comrade Xiao-ping and the Tiananmen Incident." The meeting room was immediately in perfect silence, and

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everyone looked at him. WANG used to speak very casually, and now he gestures and hit his finger onto the table, and even splutter when it comes to an excitement. He said: "Comrade DENG Xiao-ping is politically and ideologically strong, and a person of rare talent, which was said by Chairman MAO and conveyed by Premier ZHOU En-lai! The Chairman also said that DENG can fight in battles and was resolute in the struggle against revisionism when in Moscow. Comrade DENG Xiao-ping presided works of the Party’s Central and the State Council in 1975, implemented Chairman MAO's line, principles and policies, and had made great achievements. He was a pioneer in the struggle against the Gang of Four. The Gang of Four made every attempt to frame him basely. Now the Party, the Army and the people of the whole country are eager for him to come back and join the Party's Central Committee. The Tiananmen Incident was a spontaneous large-scale commemorative activity of the people in the capital after they knew that our great leader Chairman MAO was seriously ill and the death of the beloved ‘Good Prime Minister of People’, ZHOU En-lai, who is the tested close comrade of Chairman MAO. The activity was for the mass of the capital to denounce the crimes of the Gang of Four and to express the proletariat indignation of the people of the capital. This is the pride of our nationality, and an focused expression that the people of the whole country have enhanced their class consciousness and the struggle on roads after the exercise of the Cultural Revolution. This is, I think, the essence and the mainstream of the Tiananmen Incident." SU Zhen-hua interfaced: "Is there a saying that ‘we should support whatever the enemy opposes'? The Gang of Four opposed and feared DENG Xiao-ping so vigorously, and we should therefore

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stand up and support him." WANG Zheng, GENG Biao, YAO Yi-lin, et al also spoke and explicitly support DENG Xiao-ping' comeback to work.

CHEN Yun (left) and WANG Zhen (right).

On a break of the meeting, WANG Dong-xing said to HUA Guo-feng: "Chairman HUA, as you may see, they did a completely organized, planned and premeditated attack. They want to continue to engage in the rightist overturn wind." HUA embarrassedly said: "These people have a big market. If we get too much of a confrontation with them, the struggle to expose and criticize the Gang of Four would be diluted." WU De who was also presented said: "What should we do? Give them concessions they required?" WANG said firmly: "The principle can not be given up! This relates to the matter that we will be in danger if the Chairman's banner falls." WU said: "Dong-xing is right! It was Chairman MAO who determined the nature of the Tiananmen Incident. If overthrowing this conclusion, how can we talk about the greatness of Chairman MAO? " HUA said: "Well, let us call Marshal YE in and hold

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a Politburo meeting tonight to unify people’s thinking." In the night, the meeting held. YE were quite cautious. He sat there with a kindly look, always showing an interest in all speeches, no matter who was the speaker. After JI Deng-kui, CHEN Yong-gui, CHEN Xi-lian, LI Xian-nian, LI De-sheng, XU Shi-you, WEI Guo-qing et al all spoke, YE said: "After smashing the Gang of Four, the meetings of the Political Bureau are more democratic and lively, and allow persons to fully express their views. I think this kind of atmosphere is very good and is a symbol of the prosperity of a political party. As for the issues debated, I think we should not make conclusions in hurry. We could place them in a cool treatment. Chairman HUA, please make a speech on behalf of the Politburo at the plenary session, and tell all the views of the people and let all people speak out. However, one thing we must insist that we should hold up the flag of Chairman MAO. This is a principle and cannot be lost. If anyone distrusts this principle, he is a traitor and a revisionist. On the other hand, we should be flexible and allow for some concessions. For example, can Xiao-ping rework after admitting his mistakes? I think we should consider it. In short, we should take care of the emotions of the masses. A qualified leader must be good at uniting whoever can be united. In doing the revolution, the more people, the better!" After the meeting, WANG Dong-xing came to HUA’s residence and said to him: "Chairman HUA, I would like to give you a suggestion. You shouldn't be too weak on major issues." HUA asked: "Are you talking about the two most sensitive issues?" WANG answered: "Yes. I have noticed that those who want to re-address the two issues are the ones who had been criticized by Chairman MAO during the Cultural Revolution. For example, Comrade CHEN

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Yun has been in the right wing, and Chairman MAO had always had unfavorable view on him. It is not surprising that such a person spoke such kind of words now. As for Marshal YE, Chairman HUA, you should not accommodate him too much. I think he is a bit of attitude that people should listen to him because of his age. You are the chairman of the CPC Central Committee, but his words have some taste of commanding you to do something. I always feel indignant for you." HUA replied: "Well, he is an 80 year old man. I accommodate him somehow if I can." WANG said: "In major personnel issues, you should not accommodate. Have you thought about who can handle DENG Xiao-ping once he comeback? Even when Chairman MAO was alive, he dared to make a rightist overturn in a large scale!" HUA said confidently: "He will dare to overthrow us? ... Anyway, DENG Xiao-ping is more than 70 year old already. Even talking about who will live longer, we are over him. Let him work for another few years, does it matter? ... We should strive to know a wide range of views inside and outside the Party, and let people discuss fully. I am the chairman of the Party’s Central Committee, and should give comrades a democracy." WANG was very surprised when hearing these words. In March 14, HUA said at a conference: "In the recent period of time, the party and the masses have been talking a lot about the issues of DENG Xiao-ping and the Tiananmen Incident. On such issues, we should stand at a higher place and look further, and have a fundamental foothold. The so-called foothold is to lift higher and higher, and resolutely safeguard the great banner of Chairman MAO. ... The great leader

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Chairman MAO decided 'Criticizing DENG and counter attacking the rightist overturning wind'. Criticism is necessary. JIANG Qing and her group also criticize DENG, but in a different way, i.e. they strike and frame DENG Xiao-ping, which is an important part of their plot to usurp power of the party and the state. After they were isolated, the Central’s decision of continuation of 'Criticizing DENG and counter attacking the rightist overturning wind' was made after repeated considerations. In so doing, we fundamentally destroyed any excuse that the 'Gang of Four' try to use in their counter revolutionary inciting. This is in favor of stabilizing the situation in the whole country. " HUA told the participants: “We have seized a handful of counter revolutionaries, whose counter revolutionary strategy is first letting Comrade DENG Xiao-ping come to work, forcing the Central to express its stand, and then attacking us of opposing the behest of Chairman MAO, inciting the overthrow of the Central Committee of the Party, supporting WANG Hong-wen to get up to the stage, and overturning the verdict for the 'Gang of Four'. So, if we would be in hurry for Comrade DENG Xiao-ping to come out for work, we may be fooled by the class enemy, the overall struggle to expose and criticize the 'Gang of Four' could be possibly messed up, and we could be pushed to a passive position. … We should follow the spirit of Chairman MAO’s instruction: 'Criticizing him is needed, but he should not be ‘killed by a stick’', adopt the policy of 'learning from past mistakes to avoid mistakes in the future, cure the sickness to save the patient', and help him to correct his mistakes. ... At a right time, we will let Comrade DENG Xiao-ping to come out for work. ... It will be appropriate to formally make a decision in the Third Plenary Session of the

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Party's Tenth Central Committee and the Party's Eleventh Congress, letting Comrade DENG Xiao-ping come out for work. (Note: CHEN Yun agreed with this approach.) ... As the old saying goes, 'Fruits fall when matured and a creek forms when water comes.'" For the Tiananmen Incident, HUA said that for people to express memorial of Premier ZHOU En-lai is "justified" but added: "There were indeed a few counter revolutionaries to spearhead the great leader Chairman MAO. They took the chance to do counter revolutionary activities and made the counter revolutionary incident at Tiananmen Square." In April 7, WANG Dong-xing and LI Xin, according to HUA Guo-feng's instruction, visited DENG Xiao-ping, hoping him to make a statement that "The Tiananmen Incident is a counter revolutionary incident". But the request was rejected by DENG. He said: "It doesn’t matter if I can't come out for work, but the 'Tiananmen Incident' is a revolutionary action." On April 10, DENG Xiao-ping wrote a letter to HUA Guo-feng, YE Jian-ying and the Central Committee, proposing that "we, from generation to generation, should use accurate and complete MAO Ze-dong’s Thoughts (Note: the implication of these words is ‘we should not follow only specific words MAO said or a specific instruction written for a specific event’) to guide our whole party, the army and the people. ..." In May 3, the Central Committee of the Party issued this letter of DENG, together with the letter DENG wrote to HUA previously in October 10, 1976.

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On May 24, DENG Xiao-ping talked with WANG Zhen and DENG Li-qun. He said: "In accordance with the ‘two whatevers’, it will be unseasonable for vindication of me and of the mass event in Tiananmen Square in 1976. Comrade MAO Ze-dong himself said many times that some of his statements were wrong. He said that no man does not make mistakes as long as he works. ... It is impossible that every sentence a man said is correct and that a man is absolutely correct. It is very good already if a person can make 70% success and 30% mistakes. After I die, if the future generations can give me this ‘70% to 30%’ evaluation, I will be very happy and very satisfied." He continued on: "A thorough materialist should evaluate own success and mistakes as what MAO Ze-dong said. Marx and Engels did not say 'whatever', Lenin and Stalin did not say 'whatever', and MAO Ze-dong himself did not say 'whatever'." On July 16, the Third Plenary Session of the Tenth Central Communist of the Party started. The meeting ratified HUA Guo-feng as the chairman of the CPC Central Committee and the chairman of the Central Military Commission. The meeting affirmed HUA is "Chairman MAO's good students and good successor, and is our leader and commander". It also confirmed that strategic decision proposed by HUA of "grasp the key issues and manage the nation's affairs" is welcome by the heart of party, army and people, and the measures taken is "absolutely right". The meeting also confirmed that HUA Guo-feng's leadership is the most reliable guarantee for "revolution under the proletariat dictatorship".

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In the second day, the meeting adopted the resolution for DENG Xiao-ping to resume DENG's previous posts as a member of the Politburo Standing Committee, a vice chairman of the Central Military Commission, a vice premier of the State Council and the chief of staff of the Chinese People's Liberation Army. A week later, DENG watched a football game at the Workers Stadium in Beijing. In the middle of the game, there was a break for ten minutes, and DENG Xiao-ping withdrew for a rest. When he came back after the break and continued to watch the second half of the game, thousands of spectators disregarded the game, suddenly stood up, and responded with warm applause. DENG had “three downs and three ups” in his political career. The first "down" was in the early 1930s when he was in the Central Soviet Area in Jiangxi Province. He, together with Mao Ze-tan (MAO Ze-dong’s younger brother) et al, against adventurism of BO Gu and other central leaders, and supported the route of MAO Ze-dong. As a result, DENG was criticized and denounced, and his posts as the Party Secretary of the Huichang county and the propaganda minister of the Jiangxi provincial Party Committee were withdrawn. He was punished and received "the most serious warning" by the Party. Furthermore, his wife JIN Wei-ying divorced with him. Until 1935 when the Zunyi Conference was held, DENG started to serve as the secretary of the CPC Central Committee and, as so, this "down" was drawn a stop. DENG's second "down" was in 1966 when he became the No. 2 person in the "LIU and DENG's bourgeois headquarter", and later was arranged to laber in a small factory in Jiangxi Province. After LIN Biao fled, DENG wrote two letters to MAO Ze-dong, requesting to work. MAO made a positive comment on the letter. In 1973, DENG

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resumed the position of vice premier of the State Council. In early 1975, he was re-appointed as vice chairman of the Party, the first deputy prime minister of the State Council, vice chairman of the CMC and chief of the general staff of the PLA, and started to preside over the daily works of the Central Committee of the party, the government and the army. The third "down" was started at the beginning of 1976 when he was a comprehensive re-organizer of the economy, contrary to MAO's line of “taking class struggle as the key”, and refused to led the drafting of a summary document of the Cultural Revolution. As the result, all of his positions were revoked. Then, MAO launched the movement of "Criticizing DENG and counter attacking the rightist overturn wind". It lasted until this comeback in 1977. On August 19, 1977, the first plenary session of the Eleventh Central Committee of the Party was held in Beijing. The meeting elected five members of the Politburo Standing Committee: Chairman HUA Guo-feng, and vice chairmen YE Jian-ying, DENG Xiao-ping, LI Xian-nian and WANG Dong-xing.

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Chapter 2 DENG Xiao-ping became the core of leadership

The debate on "Practice is the sole criterion for testing truth"

By the end of 1977, vice principal of the Central Party School, HU Yao-bang (Note: The principal was HUA Guo-feng) held a meeting of the Party committee of the school. The theme of the meeting is how to study the history of the party since the start of the Cultural Revolution. One of the outstanding problems encountered in the discussion was what is the criterion to judge the right and the wrong in the history. HU said: "In the recent more than ten years, the Party’s history was distorted. History of these more than ten years should be studied not according to what a document stated or what a comrade said, but according to the practice, i.e. checking it with the reality by using the true thought of the Chairman. If according to a document or a person's speech, then study is not scientific and therefore can not be called study." The vice head of the education section of the Party School, FENG Wen-bin, said: "To do research on the Party's history, we should restore the Party's tradition and dare to seek truth from facts. Practice is the criterion for testing truth. If the old frames and the spiritual shackles are still in one’s mind, then the study will not be a good one. Now, the 'Gang of Four' has already been crushed, we should not continue to say words or to do things against our own will. Otherwise, don't do anything." HU Yao-bang said: "Form a group led by Comrade WU Jiang (Note: He is the director of the Philosophy Department), including MIAO and ZHOU. All of them come to my office for a meeting in next week. FENG also attend. We will discuss and

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set a plan." The newly established group prepared an outline for the planned discussion, and began to write an article entitled "Practice is the sole criterion for testing the correctness of a route or a truth". Subsequently, the title was changed to "Practice is the sole criterion for testing truth". Almost at the same time, the chief editor of the Philosophy section of the newspaper "Guangming Daily", WANG Qiang-hua, invited a teacher of the Department of Philosophy of the Nanjing University, HU Fu-ming, to write an article entitled "Practice is the criterion for testing all truth". After the article was written, WANG intended to publish it in the front page of the newspaper. He therefore sent the article to the newspaper’s chief editor YANG Xi-guang for a review. YANG let this article be published in the name of "newspaper commentator" so to increase the weight of the article. He invited the author HU Fu-ming to his office and said to him: "We hire you as a commentator of 'Guangming Daily'." HU happily accepted the offer. Since then, a few theoretical teacher of the Central Party School had helped to modify the article. After reading the article, HU Jiang of the Party School felt the article's courage, and let SUN Chang-jiang put this article and the other article written by the Party School together to make it a single article using the Party School’s title "Practice is the sole criterion for testing truth". In May 11, 1978, HU Yao-bang approved the article to be published in "Guangming Daily" authored by “the special commentator”. Xinhua News Agency forwarded the full text of the article to various newspapers. In the next two days, "People's Daily" and other national newspapers republished the full text of the article.

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HUA Guo-feng directed the magazine "Red Flag" (Note: It is the official magazine of the Party): Do not talk about the article "Practice is the sole criterion for testing truth" in the magazine. He also called various departments of the Central and some related units in provinces and municipalities, asking them not talking about the article in public. He criticized those who had expressed their support to the article. On May 17, WANG Dong-xing who was in charge of propaganda works, spoke in a meeting of propaganda personnel, criticizing the "People's Daily" for re-publishing the article in their newspaper. He also said that the magazine "Red Flag" should not re-publish the article or any article on the topic of the criterion of testing truth. He said that it is a big issue on whether or not to hold up the great banner of the MAO Ze-dong’s Thoughts. He criticized the article pointing the spearhead to the MAO Ze-dong Thought. He requested that we should not cut down the flag, not throw our knives away and not make a 180 degree turn. In May 30, DENG Xiao-ping said: "Now, even that the 'practice is the criterion for testing truth' becomes a question. It is nonsense." Three days later, he said: "We want to bring order out of chaos, break the mental shackles and make a great liberation for our minds." He also said: "The argument is inevitable. Some people come out and argue because they believe in the 'two whatevers'." This debate soon spread to the whole country. On June 25, the first Secretary of the Gansu provincial Party committee, SONG Ping, said to a group of scholars: "Take the courage to pursue the truth." "Do not consider in the way that this is a restricted area and that is also a restricted area." Two weeks later, the first secretary of the Heilongjiang provincial Party

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committee, YANG Yi-chen, requested his subordinates to liberate their mind. He also said that you could speak out whatever you want to say, and that we will not try to catch some small incorrectness that would be in your speech, not put a hat on your head and not hit you by a stick. After another two weeks, the first secretary of the Liaoning provincial Party committee, REN Zhong-yi, said that practice is the sole criterion for testing truth, and it is "the biggest thing in getting order out of chaos". Then, the first secretary of Party committee of the Xinjiang Autonomous Region, WANG Feng, said: "The criterion of testing truth can only be social practice." "This is not only a theoretical problem, but also a problem related to the ideological and political lines of our party and our country."

HU Yao-bang discusses with DENG Xiao-ping and other leaders. From left: CHEN Yun, DENG Xiao-

ping, HU Yao-bang and LI Xian-nian.

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DENG Xiao-ping decided to travel around the country to "ignite everywhere". He went to Guangzhou City and Chengdu City, and said: "The more I looked at the debate situation, the more I found that the debate is important. If doing everything according to what books say, and with rigid thinking and superstition prevailed, then a party or a country can not move forward, its life will cease, and the party will die and the state will die." After visited North Korea and came back in mid September, DENG stopped at the three northeastern provinces. On September 16, he went to Changchun City in Jilin Province and lived in the South Lake Hotel. The Jilin provincial party secretary WANG En-mao invited him to speak in a meeting. DENG accepted and said in the meeting: "Now there are two issues in front of us. The first is to relate the theory with practice, and do everything based on the reality. Now, one’s thinking is rigid and just follows the words from the top level of the Party. They follow words from Chairman HUA or a vice chairman of the Central, and do not think and not really digest. ... The second issue facing us is how to hold the great banner of Chairman MAO. This is a big issue. As you know, there was a saying in the past. Aren’t the 'two whatevers' very famous? They said that we cannot make any change on whatever Chairman MAO has said or did. Is this to hold up the great banner of Chairman MAO? No, it's not, and it's going to hurt Chairman MAO. Chairman MAO's greatness is to seek truth from facts. ... Marx-Leninism has never said to do revolution in rural areas surrounding the cities. This revolution way did not exist in the world at the time. What is Chairman MAO's greatness? His greatness is to indicate the specific road of revolution for China based on the

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specific conditions of China. If there is no basic idea of seeking truth from facts, can such a revolution route be pointed out? Can the Chinese revolution succeed?" After leaving Changchun City, DENG went to Shenyang City and he said there: "If we do not resume the fine tradition and style of ‘seeking truth from facts’ given by Chairman MAO, then we have no hope for the realization of the ‘Four modernizations’. ... We are too poor and too backward, and, to be honest, should say sorry to the people. Our people are very good people. Foreigners have been talking about how long the Chinese people can keep their patience, which is worth our attention. Our people are good people, with enough patience. We must develop the productivity and improve living condition of the people." He also said to the commander of the Shenyang Military Region, LI De-sheng: “I have been igniting everywhere. I ignited here, as well as in Guangzhou and in Chengdu.”

The Third Plenary Session of the CPC Eleventh Central Committee

The Chinese Communist Party decided to convene the Third Plenary Session of the Eleventh Central Committee. Before plenary session, there was a work conference to prepare for the session. The work conference was held in November 10, 1978. HUA Guo-feng said in its opening ceremony that the plenary session will discuss and decide an important issue, namely the focus of our works to be shifted to economic development. He said that after a decision is made on this important problem, we will then discuss three other issues: how to increase agricultural production; this year's economic

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plan; and a discuss on a speech by LI Xian-nian. But in fact, the meeting did not follow these topics, and the agenda was broken at the start of group discussions. The man who first made a breakthrough was CHEN Yun. He said in the Northeast Group that the Central should make decision to the following six issues: (1) The case of comrade BO Yi-bo and other 60 people, i.e. the so-called the case of “traitor group”. The way that the 61 people came out the Houses of Correction was following a decision of the Party’s Organization Department and the Central. They are not traitors. (2) The Central had approved the following two decisions of the Central Organization Department. The first was made on July 7, 1937, about the so-called surrender people when I was not serving as the minister of the Organization Department. The second decision was made in 1940 when I was the minister of the Department, and was about allowing those comrades to restore their party membership who came out from the Houses of Correction after performing the prison's formalities, but continued work for revolution and passed the examination of our Party. The comrades involved in the two decisions and the comrades worked for revolution under the 'two-sided regime' are not traitors, and their party membership should be restored. (3) Comrades TAO Zhu, WANG He-shou and a number of other Party members were in the Guomingdang's Army Prison in Nanjing, and insisted not to be transferred into the Houses of Correction. They persisted struggle in prison and even hunger stroke until the Anti-Japanese War broken in 1937. These comrades are now designated as a traitor, or their

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problems still have a "tail" after their organizational life were resumed. They should be reviewed by the Central Organization Department once again, and got a practical and realistic conclusion. (4) Comrade PENG De-huai is a member of the Communist Party who had served in important positions of the Party and the Army, and his contribution to the Party is very big. He is now already dead. His ashes should be placed in the Babaoshan Revolutionary Cemetery. (5) The so-called "Tiananmen Incident" happened in April 1976 was for millions of people in Beijing to mourn Premier ZHOU, to against the "Gang of Four", and to show their disagreement on criticizing Comrade DENG Xiao-ping. It is a great mass movement. The Central Committee should affirm this movement as a revolutionary mass movement. (6) At the beginning of the "Cultural Revolution", KANG Sheng was one of the two consultants of the "Central Cultural Revolution Group". He had arbitrarily named people, causing the paralysis of organs of the party and the government in every central department and all over the country, to which he should bear a heavy responsibility. The Central Committee should give due criticism to KANG Sheng's mistake at a right meeting. CHEN Yun's speech received warm response. Another person who broke the original agenda of the meeting set by HUA was HU Yao-bang. He spoke three times in a group discuss session, eachof his speech was not long, but the content was wonderful. In his first speech, he said: "We should summarize the lessons we should learn from the Cultural Revolution: Why could LIN Biao and the Gang of

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Four be on stage as long as ten years? What is the basic lesson?" He believes that the root lies in that the inner life of the Party was not normal, and that there existed for a long time the phenomenon that "there are parties within a party, and there are laws outside the law". He also said that DENG Xiao-ping had once said: "The party needs a large number of cadres who dare to think, dare to speak, and dare to deal with problems." In his second speech, HU said: The Cultural Revolution hurt us badly, LIN Biao and the Gang of Four had made a devastating blow on the enthusiasm of hundreds of millions of farmers and millions of cadres. In his third speech, HU said that KANG Sheng did many bad things in the Cultural Revolution, and that the "Gang of Four" should be renamed as the "Gang of Five" with KANG Sheng placed as the first man inthe gang. In meetings of various discussion groups, there had been a lot of talks about the Central Task Forces. These ad hoc groups were established during the Cultural Revolution, including the LIU Shao-qi project group, the PENG De-huai project group, the two groups for PENG, LUO, LU and YANG, the two groups engaging "public security", the group for the "case of the 61 persons", the group for "pandemonium of the Political Department of the Army", and the group for the "February Adverse Current". And now, more ad hoc groups have been added: The group for the Gang of Four, six groups for reviewing KANG Sheng, three groups for reviewing XIE Fu-zhi. And the new groups, which consist of personnel from the original group for reviewing senior cadres, are reviewing the Gang of Four. Many speakers said that the ad hoc groups work strictly confidential, making outsiders difficult to know

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the inside story; but all the ad hoc groups are directly under the leadership of WANG Dong-xing who can have the final say. There are people went on to speak that WANG Dong-xing has too much jobs: He is vice chairman of the Party, and in charge of the central task forces, the General Office of the Central Committee of the Party, the Central Guard Bureau, the Central Guard Force, and the office of the editorial board of MAO Ze-dong's works. In November 25, the central work conference held its third plenary meeting. HUA Guo-feng announced nine decisions on behalf of the Politburo Standing Committee: (1) The Tiananmen Incident is entirely revolutionary mass movement, and should be openly and completely vindicated; (2) The movement of "Criticizing DENG and countering rightists' overturn wind" is wrong, and the related files of the Central should be removed entirely; (3) Vindication of the “February Adverse Current”; (4) Vindication for BO Yi-bo and the other 60 people; (5) Place PENG De-huai's ashes into the Babaoshan Revolutionary Cemetery; (6) Vindication for TAO Zhu; (7) Vindication for YANG Shang-kun; (8) Expose and criticize KANG Sheng and XIE Fu-zhi; (9) For some local events occured during the Cultural Revolution, the local authorities should deal with them properly and based on facts. These developments of the meeting were exceeding DENG Xiao-ping's expectation. He said before the start of the meeting that we should consider the goal of the conference has been reached as long as the members of the Central Committee are convinced and endorsed that our focus of work should be transited into economic development. The topic has

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two parts: the first part is for participants to recognize the historical significance of the transition, and the second part is for participants to discuss how to realize the transition. Now the meeting's development made DENG Xiao-ping keenly aware of that the deadlock has been broken and the opportunity of historic turning point is there. He believed that the previously prepared draft for his speech could not be used anymore. He said to HU Yao-bang: "The idea of the previous manuscript is not good anymore. You find someone to rewrite it for me." On December 2, HU Yao-bang let YU Guang-yuan and others came to DENG’s home. DENG took out an outline written by him, a total of three pages. On the top of the first page, there were words "Evaluation of the meeting", followed by seven points: "(1) Emancipate the mind and start the machine; (2) Promote democracy and strengthen the legal system; (3) Looking backward is to look forward; (4) Overcome the bureaucracy and overstaffing; (5) Allow 'a part of people becoming rich first'; (6) Strengthen the responsibility system and engage in 'several responsibility assignment'; (7) Newly raised problems." Then, DENG start to detail his outline, explaining one by one. When he started, YU Guang-yuan found that he forgot to bring a notebook. He searched all over pockets, but only to find a used envelope with a hole in a corner where the stamp was cut off. He started to write something on the envelope. After the outside of the envelope was full, he took it apart and wrote on the inside of the envelope. After leaving from DENG’s home, HU Yao-bang and YU Guang-yuan called LIN Jian-qing et al in, for drafting a manuscript. Two days later, the first draft was sent to DENG for his review. DENG called these "pens" for several times for conversation, checking the draft word by

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word and sentence by sentence, and proposing amendments. At the last conversation, the modified script was read for DENG, and DENG said: "It is okay now. Just send it out." In the closing ceremony of the work conference held on December 13, DENG made a speech, entitled "Emancipate the mind, seek truth from facts and look ahead in unity", using the manuscript drafted by YU Guang-yuan et al. DENG said: "Comrades: This meeting has lasted for more than a month already and is about to end. The Central Committee put forward the focus of the whole party's work on achieving the four modernizations, and set it as our fundamental guiding principle. ... " (1) Liberation of our thoughts is a major political issue in the current time. ... Many comrades' mind is very much un-liberated and they have not started to think by their own. We may say that their thinking is still in a rigid or semi-rigid state. … The current debate on “practice is the sole criterion for testing truth” is actually the debate on whether or not we should liberate our thinking. In doing both revolution and economic development, we need a large number of path breakers who are bold in thinking and with courage to explore and innovative. If there are no such a large number of adventurers, we wouldn't be able to get rid of poverty and backwardness of the current situation and to catch up, not to mention to reach and exceed the international advanced level. … "(2) Democracy is a necessary condition for emancipation of mind. ... We need a unified leadership and concentration, which however can be achieved only if there is a full democracy as a must. At this time, special emphasis should be

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placed on democracy. ... A few days ago, the Tiananmen Incident was vindicated, which elated the people of all ethnic groups in China and greatly stimulated the people's enthusiasm for socialism. It should be allowed for masses to raise some different opinions, even if there are some disgruntled people who make some troubles by using democracy. There is nothing to be afraid of. We should handle it properly, while believing that the vast majority of the people have the ability to judge. ... "(3) Deal with the past in order to look forward. This meeting has solved some of the problems inherited from the past, distinguished the merits and demerits of some people, corrected a number of major injustice, wrong and false cases. This is needed for liberalizing thinking, stabilizing the situation and unifying people. The purpose of these actions is precisely for looking forward, and for achieving a smooth transition of the Party’s focus. ... "(4) Study new situations and solve new problems. ... All aspects of new situations should be studied and all aspects of the new problems should be resolved, with particular attention to research and solve the following three aspects of problems: Management method, management system and economic policy. ... The hundreds members of the Party's Central Committee and the thousands of central and local senior cadres should take the lead in studying the economic modernization program. ... Let us courageously go forward, under the leadership of the CPC Central Committee and the State Council, to change the country's backwardness and turned China into a modern powerful socialist country! "

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At the closing ceremony of the meeting, HUA Guo-feng spoke. He admitted there is an error in the statement of "two whatevers". He added that when a local authority sending a report to the Central in the future, just write "To Party’s Central" at the beginning of the report, but not "To Chairman HUA and Party’s Central". He also said that he hopes that the words "wise leader" would not be used but just use the word "comrade" when he is mentioned. After the work conference of the Central finished, the Third Plenary Session of the CPC Eleventh Central Committee held at Jingxi Hotel on December 18, 1978. The session lasted only for five days. The Plenum communiqué said that the meeting made the decision that the focus of the whole Party and the whole nation should be transited to socialist modernization. It also stressed the need to fully and accurately grasp the scientific system of MAO Ze-dong Thought. It also highly evaluated the debate on "practice is the sole criterion for testing truth", and determined that our guidelines should be emancipating mind, using brains, and being pragmatic, united and looking forward. After the plenary session, the Politburo held a meeting and decided that CHEN Yun becomes a member of the Standing Committee, DENG Ying-chao, HU Yao-bang and WANG Zhen members of the Politburo, and HUANG Ke-cheng et al alternative members of the Central Committee. The meeting also decided that the CCP vice-chairman WANG Dong-xing will no longer serve all his part-time jobs, including head of the Central's Administration Office, chief of the Central Guard Bureau, etc., which actually slashed all real powers of WANG

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Dong-xing. As so, the Politburo Standing Committee consisted of HUA Guo-feng (Chairman), YE Jian-ying, DENG Xiao-ping, LI Xian-nian, WANG Dong-xing and CHEN Yun, a total of six members. DENG, supported by YE, LI and CHEN, controlled the majority, HUA and WANG were the minority. Among 26 Politburo members, 20 members were veterans supporting DENG Xiao-ping, and only 5 members were sopporting HUA Guo-feng, i.e. WANG Dong-xing, WU De, CHEN Xi-lian, JI Deng-kui and CHEN Yong-gui. DENG had become the core of the CPC Central Committee. Chairman HUA Guo-feng, had been sidelined.

DENG Xiao-ping spoke at the Third Plenary Session

WANG Dong-ing, WU De, CHEN Xi-lian and JI Deng-kui

quitted from Politburo At a meeting after the Third Plenary Session, WANG Dong-xing spoke. While pointing his finger to the document of "Repoert on reviewing LIU Shao-qi" that had just distributed, WANG said: "I do not agree with such a rush to give Comrade LIU Shao-qi vindication. We may no longer criticize him and

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no longer talk about his past, and give a cold treatment to the issue. Now, this material puts all responsibly to JIANG Qing et al, but the fact was not as such. At that time, I was in the original task force, and knew that some of our good leaders approved verification of some claims that exposed something about LIU Sho-qi's past. ... Who would be responsible for this revised review on Comrade LIU SHao-qi should there be questions about it in the future? " " I!" DENG Xiao-ping replied immediately, "You, WANG Dong-xing, makes remark for all issues as if you know everything. Just because you were in the task forces at that time, you bear some responsibility for some of the problems. ... When you criticized the so-called LIU-DENG Line at the past time, did not you put the things done by other people onto us? Is there anything strange? Should you show so anxiously? " In 1979, Politburo held a "meeting for democratic life", to make criticizing and self-criticizing by WANG Dong-xing. CHEN Yun was the first to speak. He said: "Comrade Dong-xing has been behind the process of our revolution. He will not be able to provide good advice on continuous transformation of our party, the development of our country and correction of wrong policies in the past. Furthermore, he repeatedly interferes decisions of the Central. It is clearly inappropriate to let such a comrade continue to be in a leadership position of the Part's Central Committee. And comrades of the Party will not agree to let him continue to be in the position." HU Yao-bang went on to say: "A lot of facts show that Comrade WANG Dong-xing basically stayed on the 'left' course in the past two years, and still does not recognize enough his errors after the help or even criticism of many

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comrades. I think it is very un-suitable for him to stay in the position of Vice-Chairman of the Party’s Central. I proposal that his position should be adjusted at a appropriate time. In addition, the Central Organization Department (Note: Its Minister is HU Yao-bang) and the Central Discipline Inspection Commission have received a lot of reports these days as a steady stream, exposing Comrade WANG Dong-xing’s problems. While considering WANG Dong-xing’s merit at the crucial moment (in smashing the Gang of Four), I hope he can carefully consider his own future. The best is for him to take initiative by his own. ... " Many people expressed support for HU's proposal. WANG Dong-xing realized that it is better to take his own initiative rather than being casted out, and therefore said: "Things have been very clear. Before my upcoming resignation, I have a few words to talk about to reserve my own opinions. ..." Everyone fell silent, all eyes turned to WANG. WANG said: "Yes, I, as a cadre responsible for Chairman MAO's security and the main person responsible for functions of the Central Office for so many years, have accepted Chairman MAO's education and his thought very deeply. Probably, this is the main reason that I cannot accept the route of the Party's Third Plenum nor the need to completely vindicate Comrade LIU Shao-qi, and cannot accept other opinions you have been advocated. Now, my ideas and thoughts are out of tune with many of your comments, and it is difficult for us to unify with each other. In this case, in order for the Party's cause and the Party's unity, I decided that it is better for myself to resign, so that you can better perform your route, without a lot of obstacles or resistance. This is perhaps a good thing. ..."

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Chairman HUA Guo-feng looked at WANG Dong-xing, and then turned away. He whispered with YE Jian-ying and CHEN Yun. He then said: "Comrade WANG Dong-xing just presented his resignation, on which we still need to study. I personally think that his opinion is a good one. We allow a party member or a party cadre to retain their own opinions, which is also a way to uphold the truth. For some problems, I can not guarantee that we have the complete truth and do not need to be tested. However, our party has such a rule that the minority obeys the majority. After a view of the minority has not been accepted, they should support the majority’s opinion while retaining their own opinion, but not having any action against it. However, if you think that you could no longer do the job, you may resign, as WANG Dong-xing did. This is allowed by the Party’s Constitution and rules. However, the resignation issue needs to be decided in a plenary session of the Central Committee. If there would be no special circumstances raised, I propose to deal this issue of WANG Dong-xing in a plenary session." At this time, WU De, CHEN Xi-lian and JI Deng-kui also proposed their resignations. When WANG Dong-xing returned home, his wife saw his face being irregular, and then asked: "What happened to you? Are you uncomfortable?" WANG shook his head and said: "I'm fine. I have resigned and am ordinary person now." She asked: "Really? … Actually, it is probably a good thing because we will no longer need to fear of." He nodded and said: "Yes. Since other people do not want to let us do the jobs, we will not do it anymore. This is no bad at all. I've been doing these jobs for almost the whole life, and should have a rest now." From this day on, he stayed at home and did not accept any visitors.

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By the end of February, the Fifth Plenary Session of the CPC Eleventh Central Committee held. The plenary approved resignation of WANG Dong-xing, JI Deng-kui, WU De and CHEN Xi-lian, and removal of them from all posts in the Party. It was also decided to submit a proposal to the People's Congress for removing them from the government positions. As so, HUA Guo-feng became a lone commander in the Politburo, and was completely impracticable.

HUA Guo-feng stepped down

In early 1980, DENG Xiao-ping proposed in a meeting of Politburo Standing Committee that it is not proper for one person to serve concurrently the two important positions of the chairman of the CPC Central Committee and the premier of State Council. Other Standing Committee members agreed. So, HUA Guo-feng resigned form the post of prime minister. DENG Xiao-ping then proposed that ZHAO Zi-yang takes over as prime minister. Subsequently, DENG said that he himself is old and want to resign from the post of deputy prime minister and so to let a younger person have opportunity. Under his lead, LI Xian-nian, CHEN Yun, XU Xiang-qian, WANG Zhen, WANG Ren-zhong and other elderly veterans also said that they will no longer serve as deputy prime minister. In September, the Third Session of the Fifth National People's Congress held, and accepted the proposal of the CPC Central Committee, approved resignation of Prime Minister HUA Guo-feng and appointment of ZHOU Zi-yang as prime minister; approved resignations of DENG Xiao-ping et al from the post of deputy prime minister. But olderly DENG Xiao-

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ping, CHEN Yun, YE Jian-ying and LI Xian-nian were still in the most powerful position as members of the Politburo Standing Committee. In the second half of 1980, DENG Xiao-ping discussed with CHEN Yun and HU Yao-bang the feasibility to have meetings of "inner-party democratic life" within the Politburo for criticism on HUA Guo-feng. When being alive, MAO Ze-dong often held such meeting of "inner-party democratic life". Every time, MAO determined in advance whom to criticize and what to criticize. And then the person to be criticized would make a "self-criticism" in the “democratic life meeting” and then the other participants criticize that person. It was said that this is a practice of promoting democracy within the party. However, the cardre criticized every time was never the Party’s chairman MAO himself, but other leaders. Now, DENG Xiao-ping who was just a regular member of the Standing Committee is going to criticize the Party’s chairman HUA Guo-feng. This proposal of DENG Xiao-ping was adopted in a meeting of the Politburo Standing Committee. From November 10 to December 5, the Politburo had a succession of nine “democratic life meetings”, devoting to criticism onto and self-criticism of HUA Guo-feng. At the beginning of the first meeting, HU Yao-bang reported: "Comrade LIU Bo-chen and NIE Rong-zhen are unable to attend this meeting due to illness, CHEN Yong-gui and Seypidin are not notified to attend this meeting. Except these comrades, the participants of this meeting include twenty-one members of the Politburo and one alternate member of Politburo. In addition, the seven members of the Central

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Secretariat are attending this meeting without voting power." Then, the Party’s chairman HUA Guo-feng announced the start of the meeting. Subsequently, CHEN Yun, HU Yao-bang and YE Jian-ying spoke. CHEN Yun made three points in his speech: "First, smashing the Gang of Four is HUA Guo-feng’s great contribution to the Party. At that time, HUA Guo-feng was the primarily responsible person in our party. After uncovering the Gang of Four, however, our party failed to achieve a situation of ease of mind and liveliness, to which people are very disappointed. Second, Comrade HUA Guo-feng serving as the chairman of our Party is inappropriate. ... When taslking with Comrade Xian-nian, I said: 'Comrade (HUA) Guo-feng should know one's limitations, and understand how much is a 'plus' and how much is a 'minus' among his works in his life. Here 'plus' refers correct and 'minus' refers wrong. I also said that I hope Comrade Guo-feng cherish the existing contribution, that is, he should not lose the contribution he has already made. Third, I think this matter can not be delayed any more. We should determine who to make a report in the Twelfth Congress of the Party. The chairman of the Party should make the report." HU Yao-bang also made a speech. He said: "HUA Guo-feng started his work in 1938, and so it should be said that he is a senior comrade. Some comrades said that he rode a helicopter and went up too fast. I personally feel that these words are not proper. In the 40 years he participated in works, Comrade HUA Guo-feng has accumulated a wealth of experiences, and ranked in a certain level. This, I think we should recognize.

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Comrade Guo-feng, together with some senior comrades, indeed made a great contribution in smashing the 'Gang of Four'. This is a historical fact, which our party and the people will never forget. After grinding 'Gang of Four', the whole party and people of the whole nation, including the senior comrades, indeed sincerely supported Comrade Guo-feng. ... But I think, Comrade Guo-feng did not properly treat it as a contribution that a party member should make to the Party and the people. ... Logically speaking, Comrade Guo-feng should not be in favor of all errors made by Comrade MAO Ze-dong in his later years. ... But what Comrade Guo-feng's words after smashing of 'Gang of Four' were in another tone: 'the basic line', 'take the class struggle as the key', 'overall affirmation of the Cultural Revolution', 'continue the revolution', and so on. But these should not be what he really thought. This is a problem of pragmatism, and this is the crucial point. In attitude to Comrade MAO Ze-dong, Comrade Guo-feng picked up what he needs, considered only the current need but not consequences in the future, and only considered his personal gains but not the safety of the party and the country. This is a typical pragmatism, which is very bad. ... If Comrade Guo-feng would continue to serve as the Party's chairman and the chairman of the Central Military Commission, it appears that the majority of the comrades in the party will not be in favor of it. " YE Jian-ying said in his speech: "Dying LIU Bei (Note: An emperor in Chinese history) in Baidicheng said to ZHUGE Liang (Note: LIU’s premier): 'If my son is capable, support him; otherwise you could take the power by yourself.' Afterwards, ZHUGE did not follow the words of LIU, but

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loyally supported LIU’s son, until his death. When Chairman MAO was dying, almost all the comrades of the Politburo entered the room where Chairman MAO was in, formed a queue to be received by the Chairman one by one. All of us returned to the lounge after being received by the Chairman. After a while, a nurse called me to enter the Charman’s room again. The Chairman then glanced me and seemed want to say something but could not, and I was back out soon. Shortly after, the Chairman's heart stopped beating. I thought about why the Chairman called me for the second time and whether or not he had some exhortations? (Note: YE was very excited and shed tears when he said these words.) Analyzing my feeling, I indeed considered Comrade HUA Guo-feng as the 'later emperor', and tried to help him, even though I lack of energy and capability. I also said some overrated words for him. This is due to an old feudal ideology at play. Taking this opportunity, I should self-criticize. ... Comrade HUA Guo-feng made mistakes, which I am also responsible. When the 'Gang of Four' had been just smashed, my mind was with blind loyalty, and stupid and righteous thoughts. Sometimes, I knew some views of Comrade HUA Guo-feng were not correct, but I did not insist after proposing to him but refused by him, which led to the situation now. Therefore, I should take responsibility. ... If Comrade Guo-feng does not want to take responsibility, let me be borne. All Central's errors occurred in the recent four years are caused by me, and you can blame me and criticize me. I had requested my retirement long time ago, and today in this meeting I raise the request again: The Party's Central, please let me retire. This is my unshakeable opinion." After YE said so, HUA Guo-feng said: "I will make no

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excuse, be willing to listen carefully the views from everyone, and accept criticism." Each of the 29 participants of the Politburo meeting talked. They affirmed the credit of HUA Guo-feng, but believed that HUA is inappropriate to his current positions. Someone said: "You have done some useful works in the past four years, but apparently lack the necessary political and organizational skills as the chairman of the Party's Central. ... All of us knew that Comrade Guo-feng is not competent to the works of the Central Military Commission." Some people criticized HUA's mistakes in the past four years by using very sharp words, and interrupted HUA immediately when he made some explanations. In this regard, some other participants felt badly and believed that this way of treating a chairman of the Party is too much. Once, General XU Shi-you stood up and said: "We have talked a lot. How about letting Chairman HUA talk?" Air Force commander ZHANG Ting-fa then echoed: "Yes, it should be okay to let Chairman HUA say something about his attitude. Anyway, forwarding our views is to help a comrade but not to give him a hard time. We should allow people to express their views but also should let the criticized person to argue." PENG Chong went on to say: "We should allow Chairman HUA to say whatever he has recognized. If there would be something he has not recognized yet, we could wait." GENG Biao said: "One should note that Chairman HUA has made many good works in the past four years. Without Chairman HUA sitting there, was it possible to smash the 'Gang of Four'? I think not! On these aspects, Marshal YE has talked about a lot in the past, and therefore I do not want to list one by one. We all want to listen to Chairman HUA's

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words about his attitude on the points we expressed." Unexpectedly, DENG Xiao-ping became angry after listening to these speechs, and said: "Do you chair this Politburo meeting? Why do you try to modify the meeting direction by your own? It was decided by the Standing Committee that Politburo holds this meeting to help Comrade HUA Guo-feng. Do you want to overthrow the decision of the Standing Committee? Really outrageous!" After Listening to this, XU Shi-you said: "Comrade Xiao-ping, I did not mean it. I'm just saying..." DENG interrupted him immediately and said: "Follow the original agenda! We will give Comrade HUA Guo-feng sufficient time to talk, but not now. What we should do now is to get everyone to fully expose problems of Comrade HUA Guo-feng thoroughly. Otherwise, how can we talk about summing up the historical experiences? How can we learn a lesson from it?" DENG also sternly warned all participants that any clandestine activities after the meeting are not allowed. HUA said that he would strictly observe the Party's discipline.

Politburo members who expressed different opinions.

From left: XU Shi-you, ZHANG Ting-fa, PENG Chong and GEN Biao.

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At the last Politburo "democratic life meeting", HUA Guo-feng said that he welcomes criticism on him, and asks once again for resignation from the posts of the Party’s chairman and the chairman of the Central Military Commission (CMC). (Note: He had asked for the resignation previously when some ones said harsh words onto him.) He further proposed YE Jian-ying to be the chairman of the Party and the chairman of the CMC. YE Jian-ying resolutely refused the proposal, however, and instead asked again the party to allow him to retire, and further proposed DENG Xiao-ping to be the Party’s chairman and the CMC Chairman. Many people seconded. DENG Xiao-ping said that among the cadres over 60 years of age, HU Yao-bang has significant achievements, and he strongly recommend HU to be the Party’s chairman and ask HU to "do it as you should". Then DENG said that he himself is only willing to serve as the chairman of the CMC. Finally, the Politburo unanimously adopted the "Bulletin of Politburo meeting" that will be issued to cadres at the level of the provincial Party standing committee member and above. This Bulletin stated that HUA Gu-feng has made five errors after crushing the Gang of Four: (1) Put forward the erroneous view of "Two whatevers" that is completely contrary to Marxism; (2) Continue to hold the erroneous views about the "Cultural Revolution"; (3) Obstruct vindication of un-justice, false and wrong cases, and obstruct for senior cadres to come back to work; (4) Create a new cult to himself; (5) Plan to develop economy too aggressively, with a mistake of subjective idealism." The Bulletin also informed other decisions of the Politburo meeting: The Politburo will make a recommendation to the Sixth Plenary Session of the Eleventh

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Central Committee to accept the resignation of HUA Guo-feng from the positions of the Party’s chairman and the CMC chairman, to elect HU Yao-band as the Chairman of the Central Committee and to elect DENG Xiao-ping the CMC chairman. At the end of June 1981, the Sixth Plenary Session of the Eleventh Central Committee held. Its Communiqué said that the Plenary Session accepts the resignation of Comrade HUA Guo-feng from the posts of the Party's chairman and the CMC chairman. The session also elected other leaders. (Note: The elections were still elections with the number of candidates equal to the number of leaders to be elected, though by a secret ballot.) The election results are: Comrade HU Yao-bang is the chairman of the Central Committee, Comrades ZHAO Zi-yang and HUA Guo-feng are the vice-chairmen of the Central Committee; Comrade DENG Xiao-ping is the CNC chairman. The Politburo Standing Committee consists of HU Yao-bang, YE Jian-ying, DENG Xiao-ping, ZHAO Zi-yang, LI Xian-nian, CHEN Yun and HUA Guo-feng. Later, ZHAO Zi-yang became prime minister.

Party's General Secretary HU Yao-bang (left) and

Prime Minister ZHAO Zi-yang (right).

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Resolution on Party's historical issues since founding of

the People's Republic of China

The Sixth Plenary Session of the Eleventh Central Committee held at the end of June 1981, and made the "Resolution of the Party on some historical issues since the founding of the People's Republic of China". In the history of the Chinese Communist Party, the Sixth Plenary Session of the Seventh Central Committee had adopted on April, 20, 1945, the "Resolution on some historical issues of the Party", summarizing the road struggles within the party. Now, DENG Xiao-ping wanted to summarize road struggles within the party since the founding of the Republic so to unify the whole party in understanding the road struggles. There are a total of 38 articles in the later Resolution. Articles 1-5 are under the title of "Review of the history of the 28 year before the founding of the People's Republic of China". This part is mainly to affirm the "Resolution of the Party on some historical issues" of 1945. Articles 6-8 have an overall title of "Basic evaluatrion of the history of the 32 years after founding of the People’s Republic of China (1949-1980)". It states that the national food production was nearly doubled and cotton more than doubled in the year of 1980, when comparing with those in the year of 1952, i.e. the year when the economic recovery from wartime was completed. For the same comparison between 1980 and 1952, the national industrial reached more than 410 billions Yuan by using the original price of the fixed assets, i.e. up 26

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times; Cotton products reached 2.93 millions tons, i.e. increased by 3.5 times; Coal production reached 620 million tons, i.e. grew 8.4 times; Electricity reached more than 300 millions kWh, i.e. grew 40 times; Crude oil production reached 105 million tons (Note: it was almost zero in 1952); Steel production reached 37 millions (Note: it was almost zero in 1952); Machinery industry output reached 127 billions Yuan, a growth of 53 times. In the vast mainland, even in the ethnic minority areas, a number of new industrial bases were constructed. The defense industry was gradually built up from scratch. Exploration work have gotten great achievements. Railways, roads, waterways, air transportation, and Posts and Telecommunications, all have greatly developed. Articles 9-15 of the Resolution have an overall title of "The seven years of completion of the socialist transformation (1949-1956)". This part states that in this period, "a number of basic industries that were very weak but necessary for the country to be industrialized were set up. From 1953 to 1956, the national industrial output increased 19.6% per year on average, and agricultural output 4.8% annually. The economic development was relatively fast, and the economic results were relatively good, and balance among the important economic sectors was relatively good. The market was prosperous and the prices were stable. People's lives improved significantly." Articles 9-18 have the general title of "A decade of the beginning of socialist economic development (1957 - 1966)". It stated: "For comparison between 1966 and 1956, the country's industrial output grew for 4 times, based on the

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original terms of the fixed assets. Cotton, coal, electricity, oil, steel, and machinery and equipment, and other major industrial products all have tremendous growth. From 1965 on, we achieved self-sufficiency in oil. Electronic industry, petrochemical industry and a number of emerging industrial sectors have built up. ... In the decade, the Party has made serious mistakes in guiding the economic development, and the country experienced a tortuous development process. ... The Anti-rightist Campaign was severely expanded, wrongly classifying a group of intellectuals, patriots and Party cadres as a 'rightist'. All of these caused unfortunate results. … In 1958, the Second Plenary Session of the Eighth Central Committee passed the General Line of socialist economic development and its basic points. The correct side of the decision is that it reflected the urgent willing of the broad masses of people to change our economic and cultural backwardness. The shortcoming of the decision is that it neglected objective economic laws. ... Due to the lack of experience in socialist economic development, lack of knowledge on both economic development laws and the basic situation of China, Comrade MAO Ze-dong and many central and local leaders breed complacency proud in the face of victory. They anxiously wanted to reach further victory, exaggerated the role of the subjective will and effort, and blithely launched the 'Great Leap Forward' movement and the rural People's Commune movement just after the General Line was put forward, but without careful research and pilot experiment. The results were serious flooding of the ‘leftist’ errors with very high indices for economic growth, whim, exaggeration wind and 'communist wind '. ... From the end of 1958 to the first half of the Lushan Meeting of Politburo held

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in July 1959, Comrade MAO Ze-dong and the Party’s Central Committee had tried to correct the errors that have been perceived. However, in the late half of the Lushan Meeting, Comrade MAO Ze-dong wrongly launched criticism onto Comrade PENG De-huai, and further carried out mistakenly the 'Anti-Rightist Struggle'. The resolution of the Eighth Plenary Session of the Eighth Central Committee on the so-called 'Anti-party group of PENG De-huai, HUANG Ke-cheng, ZHANG Wen-tian and ZHOU Xiao-zhou' is completely wrong. Politically, this struggle had made democracy suffered serious damage from the Central to grassroots. Economically, the struggle interrupted the process of the on-going correction of the 'leftist' mistakes and made the errors lasting longer. Mainly due to the errors of the 'Great Leap Forward' and 'Anti-Rightist Struggle', plus the natural disasters and the Soviet government's treacherous tearing up of the contracts, the national economy suffered major losses from 1959 to 1961, and the state and the people faced serious difficulties. ... In the Tenth Plenary Session of the Eighth Central Committee held in September 1962, Comrade MAO Ze-dong overly expanded class struggle, made it absolute and believed it exists in the whole socialist society. He developed his view and further proposed, after the Anti-Rightist Struggle in 1957, that the contradiction between the proletariat and the bourgeoisie is still the principal contradiction in our society. He further asserted that the bourgeoisie will exist in the whole historical period of socialism and will attempt to restore the capitalism, and are the root causes of revisionism in the Party. Between 1963-1965, the Socialist Education Movement (i.e. the ‘Four Cleanups Movement’) carried out in rural areas and some urban areas at the grass-roots level. Although the

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movement has played a certain role in solving problems of cadres’ work style and other aspects of economic management, but these problems of different natures were considered as class struggle or reflection of class struggle within the Party. Therefore, many grass-roots cadres suffered in the second half of 1964. It was erroneously proposed in early 1965 that the movement should focus on engaging the so-called 'officials taking the capitalist road in the Party'. In the ideological field, a number of representative scholars of some literary works and the arts academics, and views of academic nature were politically criticized wrongly and excessively. Increasingly, serious 'leftist' deviation occurred in dealing with intellectuals' problems in the field of scientific and cultural education, which later became a fuse for the 'Cultural Revolution'. ... All the achievements in this decade were obtained under the collective leadership of thr Party Central Committee headed by Comrade MAO Ze-dong. Similarly, the Party Central Committee's collective leadership was responsible for errors made in the decade. Comrade MAO Ze-dong has the primary responsibility, but not all errors should be attributed to Comrade MAO Ze-dong only. During this period, Comrade MAO Ze-dong's errors on the theory and practice of the class struggle in socialist society became more and more serious. His personal dictatorship style gradually damaged the Party's democratic centralism and the personality cult phenomenon had progressively developed. The Central Committee failed to correct these errors in time. In addition, LIN Biao, JIANG Qing and KANG Sheng and other ambitious persons cynically used and contributed to these errors. This led to the launch of the 'Cultural Revolution'."

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The articles 19-24 of the Resolution are under the title of “The ten years of the Cultural Revolution (1966 -1976)”. It states: "The 'Cultural Revolution' had made the party, the country and the people suffered the most serious setbacks and losses since the founding of the People's Republic of China. The 'Cultural Revolution' was launched and led by Comrade MAO Ze-dong. His main argument was that the representatives of the bourgeoisie and a large number of counter-revolutionary revisionists have snaked into the party, government, military and cultural circles, and a considerable majority of the unit's leadership are not in the hands of the Marxists. He also concluded that the powerful cadres going along the capitalist road in the Party have formed a bourgeois headquarters in the Central, have a revisionist political line and organizational line, and have agents in the provinces, municipalities and autonomous regions, and in the central departments. He also thought that the various struggles in the past had not solved the problems, and the only way to recapture the power usurped by the capitalist roader is to implement the 'Cultural Revolution', to openly and comprehensively and bottom-up launch the masses exposing the dark side. He said that it is essentially a political revolution, the one for a class to overthrow the other class, and it must be carried out many times in the future. ... "These 'leftist' erroneous arguments of Comrade MAO Ze-dong for launching the 'Cultural Revolution' are obviously away from the orbit of the MAO Ze-dong Thought and should be completely distinguished from the MAO Ze-dong Thoughts, which is a combination of the universal principles of Marx-Leninism with Chinese revolution practice. LIN Biao, JIANG Qing, et al were put in important positions by Comrade MAO

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Ze-dong. They formed two counter-revolutionary groups plotting to seize supreme power. They used Comrade MAO Ze-dong's mistakes, conducted secretly a large number of disastrous and criminal activities, which is totally another nature of the problem. … "The history of the 'Cultural Revolution' has proved that the main points for Comrade MAO Ze-dong to launch the 'Cultural Revolution' are not in line with the Marx-Lenin doctrine, and it is not in line with the reality of China either. In his arguments, the estimation of the class situation and the political situation of the party and the state at that time are entirely wrong. ... “Practice has proved that the 'Cultural Revolution' is not a revolution or social progress in any sense. It's not 'making the enemy in chaos' (Note: These are MAO’s words) but 'making ourselves in chaos'. ... "Comrade MAO Ze-dong has the main responsibility for the serious errors of 'Cultural Revolution', and the 'leftist' serious errors were in an overall scale and lasted a very long period of time. However, Comrade MAO Ze-dong's mistakes are ones made by a great proletarian revolutionary. Comrade MAO Ze-dong frequently paid attention to overcome the shortcomings existing in the life of our party and state, but in his late life he not only failed to do correct analysis on many issues, but also confused between the right and the wrong, and between the enemy and us, in the 'Cultural Revolution'. While making serious mistakes, he had repeatedly called on all Party members to seriously study the works of Marx, Angels and Lenin, and always thought that his own theory and practice were Marxist and necessary in order to consolidate the proletariat dictatorship. This is where his tragedy is. …

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"The Party and state leaders LIU Shao-qi, PENG De-huai, HE Long, TAO Zhu, etc. and all other comrades inside and outside the Party, who were persecuted and sacrificed in the 'Cultural Revolution', will forever be remembered in the hearts of the people of all ethnic groups. The struggle of the whole Party, and the masses of workers, peasants, the people's Liberation Army officers and soldiers, and intellectuals and cadres, had restricted the destruction of the 'Cultural Revolution' to some extent. Although the national economy of our country had a huge loss, the progress has been stillmmade. Food production has maintained a relatively stable growth. Industry and transportation, infrastructure, and science and technology have made a number of important achievements, including some new railways, the building up of the Bridge over Changjiang River in Nanjing, start of operation of some large enterprises with advanced technology, successful test of hydrogen bomb, successful recycling of artificial satellite, breeding and popularization of varieties of indicia hybrid rice, and so on. … "When the Party was facing the new task of transferring the focus to the socialist economic development and therefore needed to be particularly cautious, the prestige of Comrade MAO Ze-dong also reached its peak. He gradually became arrogant, divorced from reality and from the masses, more and more subjective and with personal dictatorship. He became one above the Central Committee of the Party, which weakened or even destructed the principle of collective leadership in the political life of the party and the state, as well as the principle of democratic centralism. This phenomenon was progressed gradually, which the Central Committee of the Party should also bear certain responsibilities. ... It is not easy

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to eliminate the long-term feudal autocracy in the ideological and political legacy. Due to all sorts of historical reasons, we were not enabled to institutionalize and legalize the democracy within the party, and the country's political and social life. Although laws have been formulated, but they did not have the authority that they deserves. This provides an opportunity that too much power was held by individuals, personal worship grew up in the Party, and made the party and the country difficult to prevent the 'Cultural Revolution' to start or to put an end to it. ... " Articles 25-26 have an overall title of "The great turning point in history (1976 - 1978)". It wrote: "The victory of smashing JIANG Qing counter-revolutionary clique in October 1976 saved the Party from distress and saved the revolution, so that our country has entered a new historical period of development. ... The Third Plenary Session of the Eleventh Central Committee held in December 1978 is the great turning point of far-reaching significance on the history of our Party since the founding of the People's Republic of China. ... Serious and comprehensive correction of errors in the 'Cultural Revolution' and previous 'leftist' errors started. ... The guideline of 'emancipating the mind, operating brains, being pragmatic, and being united to look forward' had been determined. The use of the slogan of 'class struggle is the key', which should not be applied to the socialist society, had been decisively stopped. And the strategic decision about “shifting our work focus to socialist modernization of our country’ had been made. ... "

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Articles 27-31 have the general title of "Comrade MAO Ze-dong's historical status and MAO Ze-dong Thought". It states: "Comrade MAO Ze-dong ... although in the 'Cultural Revolution' made serious mistakes, but looking at his whole life, his contributions to the Chinese revolution are far outweigh his mistakes, and his achievements are at the first place and errors secondary. He established forever-indelible feats for the creation and development of our party and the People’s Liberation Army, for the victory of the liberation cause of all ethnic groups of China, for the development of China's socialist cause, and for creation of the People's Republic of China. ... MAO Ze-dong Thought is Marxism-Leninism applied and developed in China, and is proven a correct theoretical principle and an experience summary about the Chinese revolution, which has been proven correct in practice. MAO Ze-dong Thought is of the collective wisdom of the Communist Party of China. Many outstanding leaders of the Party have made important contributions to formation and development of MAO Ze-dong Thought. The scientific works of Comrade MAO Ze-dong are collection of MAO Ze-dong Thought. ... The stand, viewpoints and methods of living soul of MAO Ze-dong Thought run through the various components of the Thought. It has three basic aspects, namely, seeking truth from facts, the mass line and independence." Articles 32-38 have an overall title of "Unite and struggle for building a modern socialist powerful country". It says: "The goal of our Party in the new historical period is to develop our country, gradually build the country into a socialist powerful country with modern agriculture, modern industry, modern national defense, and modern science and technology, and a

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highly democratic and highly civilized country. ... Only socialism can save China. This is an unshakable conclusion drawn from hundred years of personal experience of the Chinese people of all nationalities, is also the most basic historical experience of the 27 years since founding of the People's Republic of China. ... We have made success under the socialist system that the old China was unable to achieve, which preliminarily shows the superiority of the socialist system. We are able to rely on our own strength to overcome all difficulties, which also shows strong vitality of the socialist system. ... There would be no new China if there is no Chinese Communist Party. Similarly, there would be no modernized socialist China if there would be no Communist Party of China. ... The 'Resolution on Certain Questions in the History' unanimously adopted in the Party’s Seventh Plenary Session of the Sixth Central Committee in 1945, had uniformed understanding of the whole Party, strengthened the unity of the whole Party, promoted rapid advances and a great victory of the people's revolutionary cause. This Sixth Plenary Session of the Eleventh Central Committee believes that the 'Resolution on a number of historical issues since the founding of the People's Republic of China' unanimously adopted by this plenary session, will play the same role in history. ... The Plenary Session calls the party, army and people of all ethnics to unite closely around the Party’s Central Committee under the great banner of Marxism-Leninism and MAO Ze-dong Thought, continue to carry forward the spirit of the 'Old YU Gong', work as one against all odds, and work hard for gradually building our country into a modern, highly democratic, highly civilized and powerful socialist country!"

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Sino-Vietnamese border war As early as in the mid-seventies, Vietnam began to erode China territory in an organized way in Chinese provinces Guangxi and Yunnan. Erosions occurred more than a hundred times in 1974, more than four hundred times in 1975, and up to more than nine hundred times in 1976. In 1977, scale of the Vietnamese troops' invasion expended. The largest one involved 500 Vietnamese solders, and injured 51 Chinese railway workers. In 1978, the number of Vietnamese invasion had reached more than one thousand one hundred times. In the largest invasion, the Vietnamese armed personnel laid mines in China and set roadblocks; Shot fired into the Chinese territory, which killed and wounded more than two hundred Chinese people, including frontier guards, militia and residents. In 1979, Vietnam sent armed men attacked the Chinese border posts and trains, killing and wounding more than a hundred of people. In 1979, the CPC Central Committee decided to punish Vietnam. As DENG Xiao-ping later summarized in a speech: "We say that this battle must fight for three reasons: First, the international united front against hegemonies should take necessary sanctions onto the Orient Cuba (Note: Refers to Vietnam), ... Under our noses, Orient Cuba used more than a dozen divisions to attack Cambodia. (Note: At the end of 1978, Vietnam sent hundreds of thousands of 'volunteers' attacked Cambodia, and soon captured Cambodian capital, Phnom Penh. In the beginning of the following year, Vietnamese overthrew the former regime that was friendly to China, established a new regime friendly to Vietnam, and

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planed to set up 'Indochina's Federation' consisting of Vietnam, Laos and Cambodia.) ... Second, we are doing the four modernizations for our country, and therefore we need to have a more stable and reliable environment. The Soviet revisionists and Vietnamese threaten us every day, in the north and the south respectively, making us uneasy and restless spiritually. Is it okay? No, it is not okay for us to be uneasy. … They continued to make trouble in borders. If we do not take counterattack, they will become increasingly arrogant, which would also promote the north. They thought we were afraid of the treaties between them and Soviet Union. ... Newspaper publicity of the invasions did not have a lot of use, protests were useless, nor the UN resolutions. ... The third reason is that we, People's Liberation Army, had not fought in a real battlefield for three decades already. ... Without real battlefield experience is not good, and this time there is a good opportunity. ... You know how to fight only after you had battlefied fights. Having battlefield fight experience is very different from having none. ... Our army officials at the battalion level have never fought in real battlefield; A part of our officials at the regiment level fought before when they were a soldier or a platoon leader, or company commander at most; Our division commander fought previously when they were then a company or battalion commander; Army commanders are better because they were the commanders of a regiment when fought in battlefields. Experience of commanding a regiment makes difference. We are indeed worried, and now let us release them to fight there. ... This will generate a large number of army cadres." DENG Xiao-ping also spoke of his fears in his speech: "Can we do a good job? How large will the chain reaction be? Will not it affect our

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Four Modernizations? Whether or not will we play well? ... The biggest worry is of a strong reaction of the Soviet revisionists from the north. ... It is because the impact on our Four Modernizations will not be of whther the battle in the south will play well, but of how strong the reaction of the north side will be. … And the question of whether or not international opinions will scold us. … Now, the Soviet strategic focus is in its west as its three-quarters or more of their troops are displayed in Europe, and the so-called million solders displayed in its east are accounting for a quarter or less of their troops. In the equipment aspect, more modern and more important ones of their major equipments are in Europe. So, if they want to carry out a large-scale offensive to China, their strategic focus must be shifted, i.e. at least a hundred million solders should be transferred from Europe to the East, which will be too late because our fight with Vietnam will not last long. The Party’s Central believed that high risk can be certainly excluded. Will there be a moderate risk? The Central thinks that it can be excluded as well, but we should still be based on the situation of moderate risk. The so-called 'moderate risk' is that the Soviets attacks us in the Northeast or in Xinjiang, with considerable forces, i.e. in Urumqi of Xinjiang, or in Heilongjiang of the Northeast such as at Ussuri Rever, Manzhouli or Suifenhe. The Soviets should use at least two armies (It can not be imagined that the Soviets use only one army alone invading deep, and if it is so, then we can cut it to two and destroy them. ... We should be based on moderate risk, and make preparation in Xinjiang and Northeast, and make some preparation in North China. We should also be prepared for smaller risks, especially in Xinjiang. ... In 1962, more than 60 000 people ran from

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Xingjiang to the Soviet Union and six Home-Going Legions were organized. Therefore, it is possible now for the Soviets to organize six such Legions and fight at these weak areas of us. ... We are afraid of a problem at our rear end, and we estimate that the Soviet Union is also afraid of its butt where it is opposed by the United States. We estimated that the Soviet also has their own rear problem. The Soviets against the USA and therefore have a problem at their rear. Their rear is Europe, and it is the largest of its strategic focus. After considered all these clearly, it is easier to make the determination to fight Vietnam." In the last part of his speech, DENG Xiao-ping said about how to fight specifically: "Our determination is to have a punish war that is a limited war. The limitation is to fight in a shallow depth and lasted only for a short time, and the purpose of fight is to teach the arrogant Eastern Cuba a lesson and to achieve a more stable Sino-Vietnamese border." On the question of why the war should be done "in a short time", he said that this could make the Soviet troop movements from Europe to be too late. On the question of how we can make the wartime short, he said: "Crack a nut with a sledgehammer. ... We have never fought a battle in such a complex terrain that China does not have: high mountains, dense forest, narrow roads, deep groove, and some holes. We would have difficulties if we do not surround the enemy by large or not intensively concentrate at some locations. We do not look down or underestimate Vietnam." Before the war started, DENG Xiao-ping visited Thailand, Malaysia and Singapore at the end of 1978. In there, he criticized the "tyrants" (Note: Refers to Soviet Union) and the "small tyrants" (Note: Refers to Vietnam), and reminded all to

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beware of "Cuba of the East". Subsequently, DENG visited the United States in the end of January 1979. He told US President Jimmy Carter that China is preparing a military strike onto Vietnam. About Carter's reaction, DENG recalled after returning home: "On one hand, the US was against our punishing on Vietnam, and on the other hand the US informed us a little intelligence by saying that the Soviet troops did not move. Further, they told us that in the border (between China and the Soviet Union) of thousands of kilometers long, there are 54 divisions of Soviet troops, among which there are no division at full strength (i.e. having 12-13 thousand people). One third of the 54 Soviet divisions are more substantial divisions, about 70-80% full in personnel. The second third of the divisions are 50-60% full (6-7 thousand people), which is equivalent to our compendium division. The last third are ‘shelve division’, with about only four thousand people. … The United States is also afraid of risk, but I said to them that we would take risk by ourselves. After the talk with Carter, I said three sentences: Chinese people keep what they have said; China acts after deliberation; and China will not engage in recklessly. I have also touched some of the climate, that is, the official language were of bureaucratic jargons, which could be different from what they speak privately. In addition, people in the government are different from people not in the government. A fare amount of people is very much in favor of our action, and even the officials are not very strongly opposing it. ... Forming a united front with the United States is a strategy determined by Chairman MAO. ... In the United States, I asked why you did not punish Cuba for their rampage in Africa. They did not dare to say any words. Our action

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would show them that a tiger butt could be touched. They did not dare to touch." In the morning of February 17, 1979, the Chinese army assembled on the Sino-Vietnamese border, a total of nine armies, raid Vietnam from two directions, i.e. the east direction from Guangxi Province and the west direction from Yunnan Province. The Eastern Corps were directed by the Guangzhou Military Region's commander XU Shi-you, and the Western Corps by the Kunming Military Region's commander YANG De-zhi. Vietnamese troops had six infantry divisions, sixteen local regiments and four artillery regiments, a total of about 100,000 people. China's Eastern Corps were divided into four groups, i.e. North Group, South Group, East Group and Maneuverable Group. They entered the territory of Vietnam by four roads. The North Group broke into Malone in three hours while wiping out an independent battalion of Vietnam, and was moving forward to Tongnong; but its assisting troops were in fierce fight with the enemy in the Chaling direction, and the fight became a bitter struggle in a status of stalemate. The East Group broke into Tongdeng. The South group broke off Byjuguan and annihilated an independent camp and was approaching Dongxi. At this time, the Vietnamese troop clawed the mountain reservoir east of Dongxi, resulting in a mud flood zone of 800 meters long, 70 meters wide and about 1 meter deep. This was out of the expectation of the Chinese army. They then had tried to go through the Shuikou Bridge, but was repulsed by the Vietnamese bridge-watchers and failed to move on. In this case, the Maneuverable Group came

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to battle, but the enemies at a mountain pass ambushed the tanks. The first tank was wrecked, and the four solders, who tied themselves to the tank in fear of being toppled down from the tank, sacrificed bloodily. XU Shi-you planed to surround and annihilate, in the Gaoping area, the 346th Decision, which was the main strength of Vietnam. He let the South Group approach to Gaoping downtown from the east and south directions. In addition, he sent a detour force intending to cut the retreat road of the enemy and ordered the detour force to be in the place within a day and a night. The detour force, however, was found and blocked by a Vietnamese elite troop. The Chinese detour force finally arrived at the place as required in the fifth day, but not the second day as ordered. XU Shi-you then sent a battalion of troops, as another detour force, which however was also found by the Vietnamese who were then transferred a company by vehicles and blocked the second Chinese detour force at a natural barrier near Tianan. The Chinese detour force reported the new situation, and XU Shi-you ordered the annihilation of Vietnamese troop. When the order reached the detour force, the order became "in situ defense"! Thus, the task of this interspersed detour was also not completed. As so, all interspersed detour efforts of the North Group failed. On February 24, XU Shi-you redeployed troops to attack Gaoping from the east, west and south directions, all commanded by the deputy commander WU Zhong. After seven hours of fierce fighting, they finally occupied Gaoping that is a provincial capital, annihilating only some cover troops of the enemy though, but the main force, i.e. the 346th Division, had gone away from the city already. In the next day, XU ordered the North and South Groups to search and destroy in the area back

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and forth. He also ordered the Maneuverable Group to find, chase and annihilate the command organ of the 346th Division. Until early March, all regiments of the 346th Division had been cleaned up and eliminated, but the command organ of the 346th Division escaped from the encirclement ring. The East Group played more smoothly: They start on February 17 to fight with the enemy in Tongdeng and eliminated all the enemy in four days, and then proceeded to Langson's periphery on February 27. After clearing the periphery, they concentrated 300 canons and fired at 9:30 AM on March 1 tens of thousands of artillery fires in 30 minutes in rounds. XU ordered them: "After the attack began at dawn, no single house should exist in Langson." This order had been executed completely. Another elite Vietnamese troop, the 308th Division, reinforced Langson from Hanoi, and used chemical weapons. On March 4, Chinese troops repeled the Division, and captured Langson. South of Langson are plains, and there is no insurance that can be used to defend. Historically, if Chinese troops broke Langson in a Vietnamese rebel, Vietnam's head would tie his hands and beg to surrender. In the west front, the Red River is the Sino-Vietnamese border, which is 160-200 meters wide and 3-5 meters deep, and cannot be waded. At 9 PM of February 16, the 13th Army of the West Corps rapidly sneak-pasted at seven crossings of the Red River under the darkness of the night. Four infantry regiments, three reinforced infantry battalion and a border company occupied the beachheads, covering follow-on forces to erect pontoons. When the Vietnamese found that and organized resistance in a hurry, it was too late already. To 10 PM, the main force of the Chinese 13th Army had all crossed

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the river and further advanced in depth. Laojie is a provincial capital of Vietnam with a railway, a main road and a waterway of the Red River, all leading to the Vietnamese capital Hanoi. In the streets, Vietnamese troops had built up a lot of peripheral trenches, eveready shelters and launch points using wood or similar civil materials. After fighting for three days, Chinese 40th Division occupied the town. By March 4, Chinese troops in the west front broke the enemy's defense and advanced 40 kilometers further, captured cities of Laojie and Gantang, and five counties, and then went further towards Guocan and Pulou. At this time, all of important towns in northern Vietnam, either in the eastern front or the western front, have been occupied by Chinese Army. A trend of military coercion of Hanoi had been formed. On March 5, the Central Military Commission of China issued a withdrawal order. Following this order, all troops started retreat alternately, while covering to each other. On the way, a scorched-earth policy was applied: All the machinery and equipment that can be taken away have been taken away, and all public properties that can be destroyed had been destroyed, to show the punishment. Among the things carried away or destroyed, a lot are actually China's aids provided free of charge during the Vietnamese Anti-American War. Some Chinese troops with heavy casualties desperately set fire and blasted when retreating, to vent anger. On March 13, the West Corps all withdrew to Chinese territory and the East Corps did so on March 16, and so the war ended. In this China-Vietnam board war, the Chinese army and frontline militia had 6954 people killed and 14,800 people injured; and killed a total of 52,000 Vietnamese,

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as stated by the Chinese side. On the other hand, the Vietnamese side said that they killed 20,000 and injured 60,000 Chinese. They had not publicized their own casualties. After the withdrawal of Chinese troops, Vietnamese forces took the opportunity to occupy Laoshan, Zheyingshan, Yinshan and other regions, as well as many points riding the border line, and to start frequent harassing attack at the border again. From October 1980 to May 1981, the commander of the Kunming Military Region, ZHANG Zhi-xiu led troops and regained Luojiapingdashan and Koulinshan regions. After three years of repeated fights, the PLA eventually occupied Laoshan, Zheyinshan and some nearby hills of Vietnam. [Note: After the Soviet Union collapsed in 1991, Vietnam lost the support of the Soviet Union in the international arena, and became quite isolated in the world, and so the China-Vietnam relations began to ease. After years of negotiations, China and Vietnam signed a border treaty, demarcating the land boundary between the two countries. But the two sides continue to dispute on sovereignty of the islands in South China Sea persists.]

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Chapter 3 Vindication of unjust, false and wrong cases

The launch of the vindication In October 12, 1976, i.e. six days after the smashing of the Gang of Four, HU Yao-bang said to YE Xuan-ning (a son of Marshal YE Jian-ying) who was visiting him: "The party's cause is now facing a resurgence. In the resurgence, the heart of the people will be the most important thing. ... First thing we should do is to stop the criticism on DENG, which will make people very happy. The second thing is to vindicate the injustice cases, which will make people's hearts happy. The third is to push production hardly, which will make people happy." The "injustice cases" HU mentioned here refer mainly to cases of the "officers going along the capitalist road" criticised during the Cultural Revolution launched by MAO Ze-dong. There were a huge number of such cases, and the old cadres and their families had been appealing since the fall of the Gang of Four. Soon after starting to preside the work of the Central Party School, HU said in the autumn of 1977: "We criticize the Gang of Four, but why do not release the caught people? We should release them as soon as possible. Can our Party have so many 'cadres going along the capitalist road'?" He looked very anxious and immediately organized a group of three people to write an article entitled "Correct the cadre line reversed by the 'Gang of Four'". The article was published on October 7, 1977 in the newspaper "People's Daily". This is the first bugle for vindication of the injustice, false and wrong cases.

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After becoming the minister of the Organization Department of the Party in December 1977, HU began to implement the policy for cadres national wide. Under his leadership, the Organization Department did a lot of works, such as receiving the appealers, investigating the cases, writing review reports and finalizing the case. They started from the easy cases and then expanded to difficult ones, redressing unjust, false and wrong cases. But HU met a great resistance. Just as he later recalled: "The vindication of injustice, false and wrong cases progressed actually quite slowly in my term of minister of the Organization Department. There were three main reasons. First, the Central Task Forces had the materials of the cadres managed by the Central, but they don't hand the materials over to us. Second, the Organization Department did not have power over the cases of the cadres not managed by the Central, and my words did not work. To have a meeting of more than two hundred people, we should get approval in advance, so we did not hold any large-scale meeting but only small meetings. We held a meeting involvint only a few provinces and departments in some day, and held another such meeting in some other days. We held a dozen of such small meetings in one year. The third reason was the open interference of Comrade WANG Dong-xing. Actually, he criticized us twice. The first time was in June 9, 1978. Comrade WANG Dong-xing chaired a meeting and the First Task Force attacked us in the meeting, saying that the Central Organization Department should not vindicate the '61 people' case. The second time was in September 25 of the same year. The attack was in a meeting for the petition works." In September 25, 1978, HU said at a meeting: "What is the basis for the implementation of the cadre policy? It is the fact, that is, the past practice of the

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cadres. ... Any untruth words, and any incorrect conclusion and processing should be realistically corrected, regardless of when it was made and under what circumstances it was made, and regardless of what level of organization determined it and who made the decision." Somebody then asked: "You have said that 'regardless who made the decision'. What should we do if the decision was made by Chairman MAO?" HU answered clearly: "Still vindicate it." However, when this speech of HU was going to be printed and issued, WANG Dong-xing deleted the words related to the “two regardless”. In order to let the idea of "two regardless" spread out, HU organized staff to write an article entitled “Lessons from the history on vindication of injustice, false and wrong cases”. In November 20, the article was published in "People's Daily" and forwarded to the whole country by Xinhua News Agency. In the next day, the local newspapers all over the country republished the article. At the end of 1978, a Central's working conference and then the Third Plenary Session of the Eleventh Central Committee were held and decided to completely vindicate for the important events including the "Tiananmen incident", the "February adverse current" and "Criticizing DENG and counter attacking the rightist overturn wind”, and completely vindicate for important persons including BO Yi-bo and the other 60 persons, PENG De-huai, TAO Zhu and YANG Shang-kun. According to the decision of the Central Committee, all the Central Task Forces were revoked, and all of their files were transferred to the Central Organization Department. These files involve 669 people, including 10 Politburo members of the Eighth Central Committee, 10

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members of the Secretariat of the Central Committee, 71 members or alternate members of the Central Committee and 7 vice premiers of the State Council.

HU Yao-bang (left) gave a speech. On the right is

DENG Xiao-ping.

The record of the vindication

In the national wide large-scale vindication of injustice, false and wrong cases from 1978 to the end of 1982, a total of more than 3 million cadres had been vindicated, among which more than 0.47 million had their party membership recovered. It also makes tens of millions of effected people free. Most major cases that were presented, judged or consented by MAO Ze-dong, got vindicated, including those in the Cultural Revolution as well as those before the Cultural Revolution and even before the liberation in 1949.

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Vindications for the cases occurred in the Cultural Revolution include the followings. (1) Open and complete vindications for (a) Major events, including the "Tiananmen incident", the "February adverse current", "Criticizing DENG and counter attacking right-wing reverse wind"; (b) Events and cases throughout the country, including the "7-20 event" in Wuhan City, the "Anti revolutionary rebellion in Qingtongxia area" of Ningxia, "Shadian incident" in Yunnan Province, "New insiders party case" in Inner Mongolia, "Inner Mongolia's February adverse current" and the "Three village case"; (c) Cases in the departments of the Party's Central and the State Council, including revocation of the wrong conclusion on the "Three peaces and one less" and "Three downs and one destroy" of the International Liaison Department of the Party; Complete vindication for the "Palace of Hell of the Propaganda Department"; Remove the "Executing surrender doctrine" hat placed on the national units of United Front, Nationality and Religious Work; Revoke for the Ministry of Culture to be called (by MAO Ze-dong) "Ministry of emperor and generals, Ministry of gifted scholars and beautiful ladies, Ministry of foreign and Ministry of dead men", for the PLA General Political Department to be called "Palace of Hell", for the archive unit to be called "Anti-party and anti-socialist black line"; Revocation of the summary of the "Army's forum on literature and art" held in February, 1966, and hosted by JIANG Qing; And revocation of the summary of the "National Conference on education". (2) Vindication of the leaders of the party and the state. In February, 1980, the Fifth Plenary Session of the Eleventh Central Committee of the Party made a resolution for

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vindication of LIU Shao-qi and revoked the charges on LIU made in the Twelfth Plenary Session of the Eighth Central Committee, accordingly revoked the original examination report on LIU's history, and recovered LIU’s honor as a great Marxist and a proletarian revolutionary, one of the main leaders of the party and the country. On May 17, the Central Committee of the CPC and the National People's Congress’s standing committee together held a memorial service in Beijing for the former vice chairman of the Central Committee of CPC and the president of the People's Republic of China LIU Shao-qi, and publicly rehabilitated him. In addition to LIU, the other leaders vindicated include PENG De-huai, TAO Zhu, PENG Zhen, LUO Rui-qing, LU Ding-yi, YANG Shang-kun, BO Yi-bo and the other 60 persons, as well as Ulanhu, TAN Zhen-lin, XIAO Jin-guang, XIAO Hua, YANG Cheng-wu, YU Li-jin, FU Chong-bi, et al. (Note: GAO Gang and RAO Shu-shi were not vindicated, however.) (3) Vindication for leading officials in various departments of the Party and the State, including: ZHOU Yang, XIA Yan, TIAN Han, YANG Han-sheng, ZHOU Xiao-zou, ZHANG Qiu-qin, DENG Tuo, LIAO Mo-sha, XU Bing, ZHANG Jing-wu, WU Gai-zhi, ZOU Da-peng, WU Yun-fu, ZHANG Han-fu, LAI Ruo-yu, DONG Xin, FENG Xue-feng, MA Ming-fang, WANG Wei-zhou, JIA Tuo-fu, ZHANG Zi-yi, AN Zi-wen, CHEN Chang-hao, LI De-sheng and YANG Xian-zhen. On September 19, 1980, the Central issued a notice, vindicating all central or local comrades wrongly criticized in newspapers or radio during the Cultural Revolution. (4) Vindication of the cadres at the provincial or ministerial level. On the eve of the Cultural Revolution, there were 1253 cadres at or above the level of the vice governor or vice

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minister in the whole country. Among them, 1011 cadres had been hit in the Cultural Revolution, including 453 cadres were designated as traitor, spy, counter revolutionary revisionist, agent of the bourgeois headquarters or executer of the revisionist line. For these 453 cadres, reviews were conducted and the persons involved were dealt with according to different situations: Vindicated 85 cadres who was designated as of contradiction between ourselves and the enemy during the Cultural Revolution; Announced complete vindication for the 40 cadres who had died during the Cultural Revolution; Keep the past historical conclusion made before the Cultural Revolution and disregard the charges added during the Cultural Revolution; Resume their leadership positions for those who have a good health condition and can work well; Find a place to live well for cadres with poor health condition. (5) Other injustice, false and wrong case. Vindicated for more the 500 so-called "Reactionary students" of colleges and universities during the Cultural Revolution. Reviewed 10402 death-penalty cases sentenced during the Cultural Revolution in the name of "counter revolutionary crimes". The people's courts at all levels made correction, re-sentencing or vindication for them according to the different situation. Cleaned up, corrected and vindicated the injustice, false and wrong cases occured before the Cultural Revolution and after the liberation in 1949. (1) Vindicated for 640 thousands people who were wrongly designated as "rightists" in 1957, which is more than 98% of the total number of the “rightists”. (The remaining 1% or so were not vindicated, and five of them, i.e. ZHANG Bo-jun, LUO Long-ji, CHU An-ping, PENG Wen-ying and CHEN

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Ren-bing, were not vindicated as clearly announced. (Note: The "Anti-rightist movement" itself had not been denied, but said it had been "seriously and wrongly over-expanded".) 270 thousands of the vindicated former rightists were restored in the public office posts they had previously, and properly arranged the work or the living condition. Also implemented the policy for nearly 320 thousands people who were designated as one "between the rightist and the middle" or "Anti-socialism". (2) Vindicated for a large number of party members who were designated as "Rightist opportunists" in the “Movement against the right deviation” in 1959 after PENG De-huai was hit down. (3) Cleaned up of the wrong expansion of the class struggle. On January 11, 1979, the Central decided that the 4.4 million people who had been designated as landlords, rich peasants, counter revolutionaries and bad elements, will no long be designated as such if they had been complying with government decrees, working honestly and never doing anything bad. They will be considered as a regular member of People's Commune in the rural areas. For the children of landlords and rich peasants, their family background will no longer be designated as "landlords" or "rich peasants", but changed to "commune member" and they will treated the same as other commune members. This decision means that at least 20 millions people in the country had ended the history of discrimination for thirty years, and started enjoying the same rights as others. The Central also decided that all 700 thousands of small sellers and peddlers, handicraftsmen and other similar workers should be singled out from the "Former

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industrialists and businessmen" and restored the worker status that they lost in 1950s. (4) Vindication for intellectuals in the whole country. In July 1977, DENG Xiao-ping said: "The 'Gang of Four' referred the intellectuals as the 'No. nine', and they also said that this nickname was given by Chairman MAO. It should be recognized that the name of 'No. nine' was actually given by Comrade MAO Ze-dong who once regarded intellectuals as a part of the bourgeoisie and we should not continue to say so. From the whole process of the revolution and construction of the country, however, Comrade MAO Ze-dong thought highly of the role of intellectuals. In 1975, he said that the 'No. nine' should not go and he said so to negate the slander of the 'Gang of Four'." On August 8, 1977, DENG Xiao-ping delivered a speech in the "National meeting on the works in science and education" and said: "Whether engaged in the scientific research work or educational work, all are workers. The reputation of the intellectuals should be restored." (5) Vindicated for the wrongly criticized TAN Zheng, XI Zhong-xun, HUANG Ke-cheng, TENG Zi-hui and XU Guang-da. (6) Vindicated for the case of the "HU Feng counter-revolutionary group", the persons implicated by the wrongly expanded "Qinghai Province counter-insurgency struggle" in 1958, the comrades who had wrongly handled in the third enlarged meeting of the National Union's party grouping, the "Northern China sectarianism", the "Xinjiang traitor group" and the "Northeastern China betray group". (7) Completely Vindicated for the novel "LIU Zhi-dan" and the so-called "PENG (De-huai), GAO (Gang) and XI (Zhong-xun) anti-Party group" in Shanxi Province.

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(8) Vindicated for the people outside the Party who had been persecuted in the previous political movements, including: JIAN Bo-zan, GAO Chong-min, WU Han, MA Yin-chu, CENG Zhao-lun, FEI Xiao-tong, HUANG Yue-mian, TAO Da-yong, QIAN Wei-min and WU Jing-chao. Vindicated for the injustice, false and wrong cases of the Guomindang's uprising or surrendered personnel. Vindicated for some influential celebrities, including scientists ZHAO Jiu-zhang and XIONG Qing-lai, the ping-pong athlete RONG Guo-tuan, artists ZHOU Xin-fang, ZHENG Jun-li, YAN Feng-ying, PAN Tian-shou and GAI Jiao-tian, and the former vice mayor of Shanghai and an expert on international issues, JIN Zhong-hua. (9) Vindicated other injustice, false and wrong cases. Completely vindicated the injustice, false and wrong cases in the "Four clean ups movement, and in the movements of "Rectification and consolidation of communes" and "Three ageists and five againsts". Vindicated about 2000 people (accounted for one percent of Xiyang County's population) who were denounced, criticized and detained in the thirteen years (from 1967 to 1979) when CHEN Yun-gui governed Xiyang County. Among them, those who were expelled from the Party got their party membership restored, and those who were innocently sentenced were released from prison. Vindicated the case of 141 abnormal deaths occurred during the movement of "Learn from Dazhai and create another Dazhai" carrying out the ultra left route. Restored the 1061 people's honor who were designated to various kinds of "hats" and denounced in the campaign of "Learn from Dazhai and create another Dazhai".

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Review on cases in history before the liberation in 1949. (1) Vindicated for the party's leaders in early year of the Party's history, including QU Qiu-bai, ZHANG Wen-tian and LI Li-san. Vindicated for case of the party's outstanding underground workers PAN Han-nian and YANG Fan-yi. Vindicated for former leading cadres of the 5th Legion of Red Amy, JI Zhen-tong and HUANG Zhong-yue. (Note: But did not make vindication for CHEN Du-xiu's "Rightist opportunist line", and WANG Ming and BO Gu's "Leftist opportunist line".) The QU Qiu-bai's case mentioned here was originated from his book entitled "Superfluous words" written in a prison after being captured by Guomingdang. In the book, QU described his inner pain, melancholy and boredom, which could make the readers feel that the author has lost fighting spirit. In 1935, the spy organization of Guomingdang, "Zhongtong", published some part of the book in its sponsored newsletter "News in the Society". In 1937, the full text of the book was published in the semimonthly magazine “Yi Jing”. At that time, CPC did not believe that the book "Superfluous words" was actually written by QU Qiu-bai. In the early days of the Anti-Japanese War, someone asked CPC if they want to buy the original of the book, but CPC did not buy it because they still believed that it is a false. One of the important documents of CPC, the "Resolution on issues in the history" passed in 1945 has a part related to QU Qiu-bai. It states that QU’s "proletarian heroic spirit (Note: Refers to dying a heroic death) is always worth commemorating." By the end of 1950, MAO Ze-dong wrote a preface for "QU Qiu-bai's collected works". It states: "He adhered to the heroic stand in the difficult years

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of revolution, preferred going to face the executioner’s butcher knife and would not yield. ... This spirit of working for the people and the spirit of unyielding while facing difficulty, and his thoughts preserved in the text will live forever and never die." In 1955, in commemoration of the 20th anniversary of QU Qiu-bai's martyrdom, CPC moved his remain from Changting County of Fujian Province to Babaoshan Revolutionary Cemetery in Beijing. These positive attitudes of the Party on QU Qiu-bai were based on the belief that the book "Superfluous words" was not written by QU. But the reality is that the book is indeed written by QU Qiu-bai, which was later recognized by the Party. It was in the early 60's that LI Ke-nong said to LU Ding-yi that the artworks of the book "Superfluous words" have gone abroad and suggested to buy the artworks back. LU decided not to buy it at the beginning because he still believed it was forged by Guomindang. But shortly after, he went to the Great Hall of the People to attend a meeting, and mentioned about it when both MAO Ze-dong and ZHOU En-lai were present. Premier ZHOU said: "I have seen the manuscript of 'Superfluous words'. It is indeed the handwriting of Qiu-bai." Since then, everyone recognizes the fact that the book "Superfluous words" is written by QU Qiu-bai. In 1963, there was a controversy on "LI Xiu-cheng's readme" in the history community. QI Ben-yu published an article entitled "On the readme of LI Xiu-cheng" in the fourth issue of the year of the journal "History Study". The article stated: "The important general in the later period of the Taiping Heavenly Kingdom was captured by ZHENG Guo-fan's army in July 22, 1864. He wrote a readme in the enemy's cage. This 'Read me'... is a 'confession' betraying the revolutionary cause of the Taiping Heavenly Kingdom." At

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that time, FAN Wen-lan, GUO Mo-ruo and other famous scholars had opinions different from QI’s. But MAO Ze-dong wrote a comment on QI's article: "Black characters on white paper are irrefutable evidence. He lost virtue in old age, which is not normative." So, many people thought about QU Qiu-bai's "Superfluous words" and believe that QU Qiu-bai was like LI Xiu-cheng, "lose one's virtue in his later life". During the Cultural Revolution, the issue emerged again. ZHOU Yang asked the leader of the Cultural Revolution Group, CHEN Bo-da, how to evaluate LI Xiu-cheng. CHEN answered that LI did it to protect his men. He continued: "QU Qiu-bai has also written a self statement. HUANG Jing told me that. (Note: HUANG Jing's original name is YU Qi-wei, and he then had cohabitated with JIANG Qing and, after the founding of new China, served as the party secretary of the Tianjin Municipal Committee.) Huang Jing told me this because he himself was arrested and also wrote this kind of thing." When ZHOU Yang met JIANG Qing and mentioned this, JIANG replied: "What 'self statement'! He (Huang Jing) was simply a voluntary surrender and it is why I left from him." ZHOU Yang reported this to MAO Ze-dong and MAO said nothing. At a later time, ZHOU Yang visited MAO Ze-dong again and asked him if he had read QU Qiu-bai's "Superfluous words". MAO answered: "I could not finish reading it. It is nothing but asking the enemy for leniency and to surrender to the mutiny. Why don't propagate CHEN Yu-cheng but LI Xiu-cheng? Why don't propagate FANG Zhi-ming but QU Qiu-bai?" Soon after, the central Department of Public Security decided to designate QU as a "traitor". ZHOU En-lai proposed: "Move QU Qiu-bai out from Babaoshan!" The Red Guards smashed QU's tomb. Later, even the tomb of

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QU's parents was also destroyed. QU's wife was designated as a "counter revolutionary in the history" and was put in Qincheng Prison, and then released for a medical parole but died three days later. QU's daughter was in a "5-7 cadre school" and labored there for ten years. After the Cultural Revolution was over, LU Ding-yi wrote, in February 1, 1979, a letter to CHEN Yun, HUANG Ke-cheng and to the Party's Central Commission for Discipline Inspection. The letter stated: "I doubt very much that Qiu-bai is a traitor. ... My reasoning is as follows. (a) After his arrest, QU wrote the 'Superfluous words', showing that he was depressed. This article was written by Qiu-bai indeed, as Premier ZHOU had seen its manuscript. But to designate Qiu-bai as a traitor based on this article, the evidence is insufficient, because the article is not surrender statement or an anti-communist manifesto. (b) Designation of Qiu-bai as a traitor was decided by the Central Public Security Department headed by XIE Fu-zhi, who was the Minister of Public Security during the Cultural Revolution. XIE Fu-zhi is a man with very bad character, and was a lackey of LIN Biao and the 'Gang of Four', and framed a lot of good people. There is no reliable evidence for QU Qiu-bai's mutiny. It is worth to re-examine and we should not be credulous. (c) Qiu-bai was shot to death, which had been publicized in newspapers by Guomindang. If Qiu-bai turned mutiny, the Guomindang must show a whoop and a holler, which did not happen however." LU Ding-yi said to QU Qiu-bai's daughter QU Du-yi who was visiting him: "You should be hurry to write a letter to the Central, requesting for your father to be vindicated." She immediately wrote a letter to the Central, asking for redressing her father's case. The Central Commission for Discipline Inspection mobilized five people

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to set up the "8th Group" to conduct a special review on the QU Qiu-bai's case. QU Qiu-bai's sister, QU Yi-qun, who was 79 years old at the time, also wrote a letter to CHEN Yun, asking for QU Qiu-bai's vindication and for repairing the tomb of QU's mother smashed during the Cultural Revolution. CHEN Yun wrote a comment: "Comrade (HU) Yao-bang: Please read this letter and make an instruction." HU Yao-bang then wrote an instruction on the letter: "Please start now to prepare materials for the case so that a fair assessment on Comrade QU Qiu-bai can be given in the next year. Please resolve the reasonable requests made in the letter. Comrade CHEN Ye-ping (Vice Minister of the Central Organization Department), please do it." After a lot of investigations and researches, the 8th Group drafted, at the end of 1979, a document on vindication of QU Qiu-bai. In January 1980, the second plenary session of the Central Commission for Discipline Inspection held in Beijing. The meeting decided to submit to the Central Committee a series of documents, including a report on QU Qiu-bai's vindication. However, the report on QU's case failed to pass in the Fifth Plenary Session of the Eleventh Central Committee of the Party. Nevertheless, DENG Xiao-ping still clearly pointed out: "The problems in the history should be solved. For example, saying Comrade QU Qiu-bai was a traitor is un-reasonable and should be corrected." On October 19, 1980, the Central Office of the Party forwarded the "Report of investigation on the situation of arrest and sacrifice of Comrade QU Qiu-bai" prepared by the Commission for Discipline Inspection, and declared clearly: "The article entitled 'The superfluous words' did not betray the Party and comrades, did not attack Marxism and communism, did not blow the Guomindang, and did not have

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intention to beg the enemy for undead. … It is certainly not a self statement for surrender and confessions of mutiny." In September 1982, the Commission for Discipline Inspection stated in a report: "The Central Commission for Discipline Inspection has conducted an investigation on facts before and after his arrest, and confirms that Comrade QU Qiu-bai adhered to the indomitable struggle and killed by the enemy." In 1991, the People's Publishing House published Volume 7 "Compilation of political theory" of the "QU Qiu-bai Anthology", where the article "Superfluous words" was included. (2) Complete vindication for victims in the "Elimination of counter-revolutionaries" in various Soviet Areas from 1930 to 1935, including the elimination of the "AB Group", the "Reorganization group", the "Social Democratic Party", the "Third party" and the "Liquidators". In the movements of "Elimination of counter-revolutionaries", a large number of people were killed, which are seriously misjudged cases in the history. Before the vindication this time, the Central Committee of the Party had already vindicated in 1954 for nearly 20000 people in Jiangxi, Fujian and Hubei, and other provinces, but there were still some remaining problems. In March and June of 1983, the Party's Central and the State Council issued notices for how to deal with these cases, which were then implemented by the Organization Department and the Civil Affairs Departments of various provinces. The problems left by the history had been thoroughly resolved. (3) On the "Red Flag Party" case. In the stage of "Examination of the cadre's personal history" in "Yanan Rectification" in 1940s, under the auspices of KANG Sheng, the underground branches of the Party in provinces of Gansu, Henan, Shanxi,

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Sichuan, Hunan, Hubei, Yunnan, Guizhou, Zhejiang and Guangxi, were framed as branches of the "Red Flag Party" and many underground Party members were designated as spy or traitor. At the later stage of the "Examination of the cadre's personal history", the Central had already found the so-called "Red Flag Party" case is false and corrected. But during the Cultural Revolution, this historical problem had been churning out again, many people had been framed once again, some of them were even persecuted to death or disability. In September 9, 1981, the Central Office issued a notice, vindicating all people framed as "Red Flag Party" member. (4) Vindication for the so-called "Black Party" and "Fake Party". During the Cultural Revolution, the underground Communist Party members in the Guomingdang's 38th Army headed by Genral YANG Hu-cheng were branded as members of the "Black Party" and "Fake Party". Now investigations found that this is completely unfounded. The Organization Department of the Central Committee forwarded a document of Shanxi Provincial Committee, completely vindicating the "Black Party" and "Fake Party" problems. (5) Review and vindication for the historically remaining issues of the "Breakout in the Central Plain". After the breakout from the Central Plane led by LI Xian-nian in 1946, the most of the remaining troops were scattered and a lot of people were left behind. Through this review, about 50 thousands people's problems were resolved in the provinces of Hubei, Hunan and Henan, including correction and the vindication of the cases laid down in the early years after the liberation in 1949. (6) Other injustice, false and wrong cases. For example, vindication for the "Purge of the Trotskyists", the historically

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remained problem of the underground "Bianzhong" in Yunnan Province, the problem of ZHENG Bo-ke, the underground organization of the Party in the United University in North-Western China, and so on.

Celebrities who committed suicide due to unbearable persecution

during the Cultural Revolution Some politicians committed suicide in the Cultural Revolution due to unbearable persecution, including the following people. ZHANG Lin-zhi, Minister of the Coal Industry, committed suicide in 1967 because the persecution was too cruel and unbearable. LI Li-san, a leader in the early years of the CPC, and an outstanding leader of the Chinese workers' movement who had led the famous Anyuan Workers Movement and the May 30th Movement back in the 1920s. In the middle of 1967, he was criticized and beat fourteen times in just two months. In the night of June 22, he took many sleeping pills at once and committed suicide. Before his death, he wrote a suicide note "To the Chairman". TIAN Jia-ying, a secretary of MAO Ze-dong from August 1948. He was hit at the Lushan Meeting in 1959. On the afternoon of May 22, 1966, WANG Li, with MAO Ze-dong's consent, came to TIAN’s residence in the Zhongnanhai District and ordered him to suspend his work, hand out all files and move out of the Zhongnanhai District. In the second day, TIAN died by hanging himself. YAN Hong-yan, Admiral, first secretary of the Yunnan provincial Party committee and first political commissar of the

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Kunming Military Region. In January 8, 1967, he committed suicide by swallowing many sleeping pills, and left the last words: "When doing the Cultural Revolution like this, who's happy? ... I was forced to death by JIANG Qing and CHEN Bo-da." DENG Tuo, former chief editor of the newspaper "People's Daily" and a political commentator. In May 1966, he was persecuted for the "Tree villages" case. On May 16, QI Ben-yu published an article to namely criticize DENG Tuo and said he is "a traitor". In the evening of the next day, DENG wrote "A letter to the Beijing municipal party committee" and "Goodbye letter to my wife". On the next day he died by hanging. WU Han, former vice mayor of Beijing and a famous expert on history of Ming Dynasty. The author of "HAI Rui", "HAI Rui scolded on the emperor", "HAI Rui dismissed from office", etc. In the Cultural Revolution, he suffered the persecution and committed suicide in October 11, 1969. CHU An-ping, a member of the Central Committee of the "9-3 Society", the former chief editor of "Guangming Daily". In the Anti Rightist Movement in 1957, he spoke of "the Party's world" and was designated as a rightist. In the Cultural Revolution, he became the object of Red Guards. He had been missing after August 1968. A lot of people believe he had committed suicide, but no body found. CHEN Lian, a daughter of CHEN Bu-lei who is a senior staff of JIANG Jie-shi. She joined the Communist Party in 1939. After the liberation in 1949, she served as deputy director of the Education Department of the Ministry of Forestry and a member of the executive committee of the National Women's Federation. During the Cultural Revolution, the rebels slandered her as a traitor and a spy. In November 19, 1967,

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she committed suicide by jumping from an eleven-story building. She was 48 years old. In the field of culture, a large number of people were persecuted and committed suicide during the Cultural Revolution, including the follows. LAO She, a Manchu, a famous novelist and playwrighter. His works include "Camel Xiangzi", "Teahouse", etc. In August 24, 1966, he committed suicide by cast himself into the Peace Lake in the Beijing University because of unbearable persecution. JIAN Bo-zan, a Uygur, a historian, the author of "Outline of China history" etc. FAN Chang-jiang, a news reporter, former editor in chief of Xinhua News Agency, former editor in chief of "People's Daily". LUO Guang-bin, a co-author of the novel "Red Rock", a survivor of the concentration camp of the "Sino US cooperation" in Chongqing City. SHANGGUAN Yun-zhu, a film actress. LI Ping-xin, a historian. CHEN Xiao-yu, a literary critic. CHEN Meng-jia, an archaeologist and a paleographer. YAN Hui-zhu, a Mongolian, a performing artist of Beijing opera and Kunqu opera. YE Yi-qun, a literary theorist. LIU Pan-sui, an expert on classical literature and linguistics. HE Hui-shen, an artist. YAN Feng-ying, an artist. YANG Shuo, a writer. FU Lei, a translator.

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ZHOU Shou-juan, a writer. LI Guang-tian, a writer. LIU Shou-song, a literary historian. GU Er-ji, a film director. WEN Jjie, a writer and a poet. WANG Zhong-min, a bibliographer and an animation expert. RONG Guo-tuan, a table tennis player, won the first world champion for China. Et al. Senior cadres and celebrities who suffered a serious injury

to the body and mind, and died due to illness during the Cultural Revolution

Celebrities who suffered a serious injury to the body and mind, and died due to illness during the Cultural Revolution are listed below, in the order of the year of death. Died in 1967: JIA Tuo-fu, the former first deputy director of the State Planning Commission; ZOU Da-peng, a deputy director of the Central Investigation Department; and NAN Han-Zheng, a deputy director of the China Democracy and Construction Association. Died in 1968: TIAN Han, a writer, the lyricist of the National Anthem of the People's Republic of China; and LIU Shi, a vice Minister of the Education; Died in 1969:

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XU Guang-da, a Senior General, deputy minister of the Defense Ministry; HE Long, a Marshal, deputy primer of the State Council; LIU Shao-ji, vice chairman of the Party’s Central Committee and the president of the state; TAO Zhu, a member of the Politburo Standing Committee and a vice premier of the State Council; ZHANG Bo-jun, vice chairman of the "China Democratic League"; and XU Zi-rong, vice minister of Public Security. Died in 1970: ZHANG Xue-si, the chief of staff of the Navy, brother of ZHANG Xue-liang; HU Xi-kui, a secretary of the Secretariat of the Northwest Bureau of the Central Committee; and LIU Xi-wu, a vice secretary of the Central Supervision Committee of the Party. Died in 1971: LIU Xiu-feng, the Minister of Construction Engineering. Died in 1972: CHEN Zheng-ren, the minister of the Eighth Mechanical Industry; and LIAO Lu-yan, the minister of the Agriculture. Died in 1973: HE Wei, the minister of the Education; and QIAN Ying, the minister of the Supervision.

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Died in 1974: PENG De-huai, a Marshal, former minister of the Defense.

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Chapter 4 The beginning of Reform and Opening Up When deciding in 1978 to shift the country's focus to economic development, the CPC Central Committee did not have a clear idea on how to develop the economy at the beginning. DENG Xiao-ping just asked people to emancipate their mind. In his view, "whether it is a black cat or a white cat, the one that can catch mice is a good cat." As so, the "Household Responsibility System" re-emerged in the rural areas, the private sector emerged in cities and towns, and Special Economic Zones appeared in coastal areas. A new situation appeared in China, which has been later referred to "Reform and Opening Up", i.e. internal reform and opening-up to the outside in the world.

DENG Xiao-ping promoted for Reform and Opening Up.

Household Responsibility System

In Fengyang County of Anhui Province, there is a small village, called Shaogangchun. The village had 18 households

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and a total of 120 people at the time. In 1978, the entire village had an annual output of about 15 thousand kilograms of grain, and a person in the village had the grain ration of only 50 kilograms per year after tax (paid by grain, not money) , which was not enough to eat. Almost every household went out for begging after the harvest every year. In November 1978, the production team's captain YAN Jun-chang discussed with other village cadres on how to save everyone's life in the village, Someone said: "The only way is to re-distribute land to each household. But this way is a dead end, as can be predicted from the overthrown of LIU Shao-qi." YAN Jun-chang said: "No matter if we would have a bad luck or not, no matter whether it is pushing socialism forward or pulling backward, it will be okay as long as we can eat enough. Even if we had eaten only one full meal, and gotten beheaded, I would have been satisfied. Being a stomach-full devil is better than being a hungry devil." The participants decided to divide the production team into two groups. But soon it was discovered that this was still not enough: People still did not work hard even though they attended in the field. Then they further divided the production team into eight groups, each group had two or three households, which was still not working however. Finally, they distributed land and responsibility to each household at once. Before re-distributing land and responsibility, YAN Jun-chang called all household heads in and said to them: "The only way of solving the problem of food and clothing is to take the way of a lump sum. ... Would you blame on us, cadres, if not successful? What do you do if the cadres would have a bad luck?" Many participants responded: "If the cadres would be unlucky and sent to prison, we will provide food for the cadres

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in the prison. If you would be really beheaded or shot, we will support your children until they are 18 years old." As people responded as such, YAN Jun-chang tore a piece of paper from his child's exercise notebook, and asked everyone put a fingerprint on it, and swear that no one can tell others, even the relatives, what we are doing. He added: "Those who would leak this out are born from a bitch." However, a paper cannot swathe a flame. In the spring of the second year, the Party secretary of the Commune talked with YAN Jun-chang, asking him if he had engaged in land re-distribution. YAN said no. A few days later, the Commune held a meeting of cadres of all production teams in the Commune. The Party secretary of the Commune said to YAN that if you do not confess, then we will not provide you seed, fertilizer and other supplies provided by authority. After the meeting, the Party secretary of the Commune started to follow YAN: He went to where YAN went. By the fourth day, YAN had confessed to the Party secretary. The Party secretary then went to the county for reporting. Subsequently, the Party secretary of the county, CHEN Ting-yuan came to the village to have a look. Afterwards, he sighed and said: "Let Xiaogangcun Village do it until this autumn. Report to the Party if they would do it well, otherwise we take land back." Before the autumn, however, CHEN just could not stand up, because someone criticized him and said that what Xiaogangcun Village is doing is digging the foundation of socialism and is a historical retrogression. CHEN had to call a teleconference, announcing that land of Xiaogangcun Village should be immediately taken back and combined together once again.

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Soon, the party secretary of the region, WANG Yu-zhao, came to Xiaogangcun village. He saw that beneath the beds at the home of YAN Jun-chang were filled with grains. What happened was that YAN’s family was assigned to lands of more than forty Chinese acres, planted peanuts and rice on the lands, and harvested a lot so that there was not enough space to store them except the space under the beds. Secretary WANG let YAN take him to visit a few other farming families, and saw similar situation there. After returning back to his office, WANG called a meeting of the regional standing committee of the Party and said in the meeting: "What is exactly the sin of YAN Jun-chang? If he would be guilty of the crime of counter-revolutionary and condemned, then the Communist Party was dead wrong to fight for establishment of the new regime. What was the purpose to establish a new regime as so many people had been sacrificed? Isn’t it for the Chinese people to have a better life? … If his conviction can not be determined, then we should support him." After the meeting, he took all the members of the regional Standing Committee to the village and had a look there. WANG Yu-zhao went and talked with the First Secretary of Anhui provincial committee of the Party, WAN Li. And then WAN Li came to Xiaogangcun Village. Before he arriving at the village, the county party secretary CHEN Ting-yuan said to the village cadres: "When WAN Li comes, you just tell the facts. Even if there is a bad luck or guilt, let us see what happen after WAN Li comes." WAN Li came, and his first sentence was a question to YAN Jun-chang: "Are you a member of the Party?" YAN replied: "No, I am not." WAN Li

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then said: "Good! There are so many party members in China, but they are afraid to go along this route. Why? Because they fear of losing their official positions! Many members of the Communist Party are not serving for the people, but for the 'official position'." WAN then asked YAN: "Are you confident for what you are doing?" YAN replied: "Yes. If we continue to do so, we may not need national supply and could probably contribute to the nation, even if there would be natural disasters or other problems. Secretary WAN, could you allow us to continue for a few years more?" WAN Li answered: "The regional secretary allows you to do it for a year, and I grant you doing it for three years." In YAN’ heart, he is willing to kneel down and bow to WAN Li. When WAN was leaving the village, YAN asked him: "Do you have an official document for allowing us to continue? What should I do if the local government would bother us?" WAN replied: "Yes, you are right that I do not have such a document. If someone would bother you, you may ask him: 'Do you have a better way? Can you make your life better than me, make more revenue and contribute more?' If he can not tell a better way, then let him not try to control you, and actually he should learn from you." Later, somebody really asked YAN: " 'YAN Senior', do you still want the collective way?" YAN answered him, just as WAN Li suggested: "Can you think of any better way? We still have not figure out a better way, and we can only do this way as we are doing now because we do not have any collective enterprises."

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WAN Li.

Newspapers of several provinces near Anhei Province published articles in newspapers, accusing Anhui Province taking the capitalist road. WAN Li let ZHANG Guang-you (Note: He is WAN Li's assistant, participating in leadership of the Anhui Branch of Xinhua News Agency, and a former reporter), to draft an article stating facts and reasoning for what Shaogangchun Village is doing. The article was quickly written, and entitled "Many benefits of the Accountability System". (Note: The Accountability System is actually another name of the Household Responsibility System. The latter name can not be used because MAO Ze-dong had firmly opposed it, and caused down fall of LIU Shao-qi.) After WAN Li reviewed and approved, the article was published in "Anhui Daily", using the Anhui Provincial Department of Agriculture and Industry as the author. Thereafter, the Accountability System was popularized in Fengyang, Feixi and other counties in Anhui Province. Further later, WAN Li talked with CHEN Yun about agriculture in Anhui Province, and CHEN said: "I applaud." In mid-March 1979, the State Committee on Agriculture held a rural work conference for seven provinces (including Anhui,

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Guangdong, Sichuan, Hunan, Jiangsu, Hebei and Jilin) and three counties (including Quanjiao of Anhui, Boluo of Guangdong and Guanghan of Sichuan, all are engaged in the Household Responsibility System, HRS). The conference devoted to the accountability system in the rural areas. At the conference, someone asked: "Do we still talk about class and class struggle? Do we still engage in the movement of “Learn from Dazhai County?" However, most speakers supported the HRS. SHI Li-qi of Jilin Province and DU Rei-zhi of Guangdong Province urged opening a door for the HRS so to respect the people's choice. In the afternoon of March 20, HUA Guo-feng (Note: He was still the Party's chairman at the time) met with delegates of the conference. He first talked about the experience in "double harvests" of the Dongting Lake area of Hunan Province. He said the experience proves that an organization and labor division can increase productivity, and collective economy is superior. But he also added: "Implementation of the Household Responsibility System should be allowed for isolated families in mountainous and remote areas." In April, the Central forwarded the minutes of this conference, which is the Central's first document allowing engagement in the HRS, though only in some specified areas. Thereafter, HUA Guo-feng hosted a Central Conference, attended by DENG Xiao-ping, LI Xian-nian et al. At the conference, the deputy director of the National Committee on Agriculture, DU Run-sheng, made a explanation: "After Anhui Province and some other places engaged in the HRS, farmers' enthusiasm for production is very high and the production is very good, and masses welcome it. At the same

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time, there are a few problems, such as farmers cutting down some trees to get something real first in Zanhuang area of Hebei Province." However, LI Xian-nian said: "It is better not to encourage in the Household Responsibility System. China still does not have enough food to eat and is still poor after peasants working alone for thousands of years!" HUA Guo-feng talked again about the Hunan’s example of the "three rushes in summer harvest" and the advantage of mutual assistance, claiming collective cooperation is necessary. DENG Xiao-ping did not speak in the meeting. In April, Vice Premier YAO Yi-lin went to DENG Xiao-ping for reporting to him about HRS, while HU Yao-bang and WAN Li also presented. YAO said: "In sparsely populated areas with backward economy and poor living condition, let us just engage in the Household Responsibility System. Engage the HRS in poverty-stricken areas, so let farmers be responsible for their own produce and their own stomach, which is good for the both sides." DENG said: "I agree with the views of Comrade YAO Yi-lin as he just said." In May, DENG talked with other comrades and said: "After relaxing our rural policy, some places where the HRS is suitable, have engaged in the HRS, and got very good results and developed very fast. Vast majority of the production teams in Feixi County of Anhui Province have engaged in the HRS, and the yield increased greatly. In Fengyang County, which has been sung in the prevalent 'Fengyang song and drum', the vast majority of the production teams also engaged in HRS, and made a turn over and changed the situation in just one year. Some comrades worry whether or not doing things like this will affect the collective economy. I think such worries are

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unnecessary. Our overall direction is the development of the collective economy. ... The main problem for works in rural areas is that the ideological emancipation is not enough." Later, DENG called DU Run-sheng in and said to him: "It seems that the rural economy can have different forms and be diversified. Is not there HRS in poverty-stricken areas? We can try. If a change is necessary in the future, we still can change. Having enough food to eat is more important than other things!" DU said that there is a Central's document stating: "Do not allowed to re-distribute land. And do not engage in HRS except some sideline productions of special needs, some inaccessible single-families in remote mountainous areas." After thought for a moment, DENG said: "Let us wait and see what happens in the areas where people are not really poor. After all, circumstances should change eventually." In June, HUA Guo-feng came to Mengiping Village in Mizhi County, Shanxi Province for an inspection. He found a responsibility system for professional contractors. Among the total labors of 20 in the village, 12 were responsible for agricultural production, 2 for herding sheep, and the rest for the organized infrastructure, while all of them were evaluated by and givern a score for the work. HUA wrote a letter to the Central that said: "This professional contracting can also be used in areas where economic division of labor are quite developed, and used in the future in the poorer areas. ... The form of HRS can be varied. Across the country, engage in what the masses choose. We should allow them not to engage in the HRS, but not oppose if they are already engaged in the

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HRS." HU Yao-bang forwarded HUA's letter to the whole party. By the end of the year, 10% of the production teams in Guizhou Province had spontaneously introduced the HRS. Some provincial leaders fear it would exceed the limit allowed by the Central's document. In this regard, the Party's provincial first secretary CHI Bi-qing said bluntly: "As you have been sent by the Central to here in Guizhou, you must dare to make decisions from the reality of Guizhou. ... If always waiting for a document coming from the Central, what is the use of us? It would be better to place a desk in the cross point of the main streets in Guiyang City and ask a high school student to sit there and read the Central's document every day." In the regions of Zhanjiang and Huizhou and other places in Guangdong Province, some of the production teams divided the land and re-distributed them to individual families. The Party's provincial committee believed that it is wrong. They sent working teams there to correct the error, but the results were: The more they correct, the more it emerges. Seeing this, the director of the provincial agriculture committee, DU Rui-zhi, realized that following the trend would be better than correcting. The party's provincial secretary, XI Chong-xun, standed firmly to support the HRS. Since then, farmers started to engage in the HRS openly. After HU Yao-bang became the General Secretary of the Party in early 1980, WAN Li was transferred to work at the Central and became a Secretariat member responsible for management of agriculture affairs. He suggested to HU to call a meeting of the provincial secretaries of the Party to exchange ideas. HU

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agreed. Before the meeting, WAN Li let DU Run-sheng draft a document in advance, and said to him: "We must change the wording of 'Do not engage in HRS' in the previous documents of the Central into 'may engage in the HRS', or 'support the HRS' at the best." Accordingly, DU prepared a draft, which states that "the HRS should be allowed as long as it is demanded by the masses." The draft was discussed first at the agriculture committee, but the vast majority of committee members required this sentence to be "The HRS may be engaged in impoverished regions, but should be expressly forbidden in all other regions," DU had to make changes in the draft according the majority's point of view, but still added a sentence: "The locals should adapt local conditions and respect the people's choice." In the following forum of Party's provincial first secretaries, different views on the HRS were more clearly demonstrated. Provincial party secretary of Heilongjiang, YANG Yi-chen, said: "Heilongjiang is the region with the highest level of agriculture mechanization. If we would engage in the HRS, then mechanization development could be affected, the production could have a big problem, and we could have a set back. Collective economy is a sunshining boulevard, and we should not quit." The first secretary of Guizhou Province, CHI Bi-qing, immediately responded: "You go along your sunshining boulevard, but I preper to walk my plank bridge, which we poor regions have to go along!" Most participants, however, hoped to set up a "valve" to provent a "free spread" of the HRS. Most of them are veterans followed MAO Ze-dong and fought in the past. They knew very well that MAO Ze-dong had been firmly opposed the HRS, and believed that this will lead to division between the rich and the poor, turn backward

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and taking the capitalist road. They knew that this was one of the important reasons for MAO Ze-dong to launch the Cultural Revolution and take LIU Shao-qi and DENG Xiao-ping down. One of them said in a conference break: "The HRS issue relates to our revolution carrier in our later life. We should put forward our opinions, even if the only effect is to leave a record." In order to resolve differences, HU Yao-bang, WAN Li and DU Run-sheng discuss repeatedly and rewrite the minutes twice. The final version of the document was a compromise document. The key sentence in the final document was: "Do not engage in the HRS in the general area where the collective economy is stable, the production has had some development, and the current system is satisfied or, after improvement, will be satisfied by the masses. Do not try hard to correct if the masses are willing to choose the HRS. ... In remote mountainous areas, and poverty-stricken and backward areas, if the masses have lost confidence on the collective system and require the HRS, we should support the requirements of the masses, allow them to engage in the HRS and make it stable over a long period of time." The minutes of the conference issued to the whole party as a formal document of the Party Central. It made the HRS no longer in a half-close and half-open, spontaneous and illegal status, but in a more open status, and carried out under a leadership. After the conference, HU Yao-bang and WAN Li believed that the attitude of top-level provincial officials is the key. They decideed that HU goes to the Northwest China and WAN to the Northeast China, persuading provincial leaders there, one province by one province.

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On March 11, 1981, the State Agricultural Committee held an enlarged meeting of the "party group" of the Committee. WAN Li made a lengthy speech at the meeting. He said: "If the 'leftist' problem in agriculture is not cleared up, there will be no way to improve agriculture production. ... Not long time ago, some people of the Ministry of Agriculture said that the Central's decision is along an anti-Dazhai road. Even now, there are still such people. ... They do not think about the fact that peasants still have no enough food after we have been engaging in the food problem for 30 years since the foundation of New China in 1949. Now there appears some hope to solve the problem, but they cannot figure it out and are worried, and even do not care of the hungry of peasants. ... Check the work style in the Party and do not allow someone to sing a tune different from the Central!" Since then, the State Agricultural Committee organized 17 investigation teams, consisting of a total of 140 people, and dispatched them to 15 provinces, investigating in areas chosen from a variety of different types. A few months later, they completed a hundred investigation reports. All of them have a common conclusion: The current situation in the countryside is very good, which has not been seen in many years, and we should suggest the Central to issue a document to confirm that the HRS will allow it without change for a long term. On October 5, the National Rural Work Conference held in Beijing. When meeting the representatives of the Conference, HU Yao-bang said: "Now there is an issue that is clearly stated in the document. That is, the reform in the rural area and the HRS do not shake the rural collective economy. ... Adhering to public ownership, land is just 'contracted in a package' to farmers and it is just a land re-distribution. Public ownership of land will

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be unchanged for a long period of time, and the establishment of production responsibility system is the same." In December, the Politburo adopted the meeting minutes of this Conference and issued it to the whole Party. By the end of 1981, more than 90% of rural production teams established different forms of agricultural production responsibility system, i.e. the HRS in reality.

Privately owned enterprises

On September 20, 1978, DENG Xiao-ping visited Tianjin City and said: "Let some people get rich first, and then lead others to become rich too and eventually realize prosperity for all people." After he said so, there began to appear enterprises owned by individuals, and these individuals employ workers. Initially, the state determined that the number of employees hired by an individual should not exceed eight. But very soon, someone hired more than eight people. For example, NIAN Guang-jiu, a peasant in Wuhu region of Anhui Province, hired up to 103 people. His workshop products cooked seeds, brand named "Seeds of the Fool", as he is nicknamed "Fool". At that time, many people thought that employment by individual is exploitation, and that we, as a socialist society, must not allow exploitation. They also believed that income disparity between employer and employee would lead to polarization. Some other people thought, however, that this kind of exploitation should be permitted at this stage, but needs to be limited. Only a few people said that this is not exploitation, it is a new way of management under the conditions of socialist public ownership, and should be actively supported. On this issue, DENG Xiao-ping said: "On the problem for some individuals

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to hire some others working for him, my advice is to let it go for two years and see what happens. Can this affect our big picture? If you make such a move (not allowing it), the people would say that the policy has been changed, and people will be uneasy. Let 'Seeds of the Fool' continue for a period of time, what do you afraid of? Does it hurt socialism?" In 1982, DENG proposed the Political Bureau to discuss the issue, and later the Politburo passed a resolution: Take the approach of "look and see", that is, not to take any restrictive measures right now. By the second half of 1984, there was rarely anyone to argue the hiring problem anymore. When MAO Ze-dong was alive, the private sector was transformed into socialist, and LIU Shao-qi who supported the so-called "red capitalists" was brought down. But now, DENG allows the private sector to appear again in China. Let us give another example of the private sector. In 1982, LIU Yong-hao and his three older brothers resigned from their jobs in the public sector in Chengdu City of Sichuan Province, and return to their hometown, Xinjin County, to start up a rural entrepreneur. They sold their watches, bicycles and other family possessions, and got a total of 1000 Yuan. They used this money to open a quail-rearing farm, and soon turned to business of providing fodder for other quail rearing farmers. Six years later, their quail feed business has been all over the country, has accumulated a wealth of 10 million Yuan. In the followed eight years, they established China's largest feed conglomerate, named "Hope Group". In 1995, LIU brothers cleared up property rights for each of them. Afterwards, they did business separately, and LIU Yong-hao formed the "New Hope Group". By the year of 2000, New Hope Group reached

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sales of 4 billion Yuan, had tens of thousands of employees, and more than 80 sub companies, among which four were abroad. Industries ranged from feed, dairy and meat processing, real estate, finance (he and others formed the "China Minsheng Bank", which is the first private-own bank, and a joint-stock commercial banks with private capital formation), investment in basic chemicals, trade and logistics, and international trade. Later, he became a member of the CPPCC Standing Committee. Trinity Group is a larger example. In 1983, LIANG Wen-gen graduated from Central South University with specialty of materials science, and was assigned to the Hongyuan Machinery Plant in Lianyuan City of Hunan Province. He and other three university graduates, TANG Xiu-guo, MAO Zhong-wu and YUAN Jin-hua, were working in the same plant. With the development of Reform and Opening Up, they began to plan their own enterprise. In 1984, they got a news that sheep is selling well on the market, and a single sheep can make a profit of 20 Yuan. So, they decided that LIANG will take command position at home, YUAN will be responsible for sheep source, and TANG for delivery. Soon, YUAN carried a sheep knife, a few sacks and a few pieces of rags, and went onto the road. But after the New Year's Day, the market changed so that sheep prices fell. LIANG et al quickly put the sheep at a low price for sail, and so not all of their money lost. They did not lose their spirit. Soon, LIANG learned that welding materials were in short supply on the market. He decided to select special welding materials as the breakthrough point, because three of them had specialty on materials. All four of them borrowed money from their

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relatives and friends and got 60,000 Yuan, and set up a factory named "Lianyuan Maotang Welding Material Factory". Their first product, Base Solder 105 I, was produced and sent to a factory in Liaoning Province. But the goods were returned because the quality of the product was under the standard. LIANG immediately went to the university he graduated, and invited his former teacher, Professor DI Deng-ke, to came to the factory for guidance. Finally, the solder reached all the indicators of the national quality standard. In September 1986, they received its first bank loan, which made the four young men ecstatic, huddled tightly to each other and teared. In March 1991, they came out of Maotang and relocated in Lianyuan City. Later, LIANG saw a new opportunity about synthetic diamond press machine. A product line for it was into operation a few months later. They then quickly opened the market based on their leading technology and the highest quality within the country. In 1993, their business was renamed "Trinity Group" (i.e. "Three first-classes": a first-class enterprise, first-class talents and first-class products), and moved its headquarter to the provincial capital Changsha City. With the expansion of the business, LIANG began to research and develop products of concrete pump and other construction machinery, and invited the industry's leading experts to work at the company or as a consultant. Relying on "comparative advantage" of labor costs, and "later-comer advantages" of scientific and technological research and development, Trinity Group's market share reached 48 percent for his product of concrete pump, and 35-40 percent of the share for pump vehicle in the domestic market. In 2006, the Group invested $60 million and established a construction machinery-manufacturing base in India. In 2007, it invested $

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60 million and established a similar manufacturing base in Georgia, the United States. In 2009, invested €100 million and set up a R & D center in the city of Cologne, German. By 2010, the Group became the world's largest concrete machinery manufacturer, one of the global construction machinery manufacturers, and one of the top 50 Chinese enterprises.

Special Economic Zone (SEZ) When attending the Central's working meeting held in November 1978, the Guangdong provincial first secretary XI Chong-xun became more and more confident that some of his own ideas are very close to the Central's decision of Reform and Opening Up and focusing on economic development. When reporting to the Central, he talked about the hope that the Central could allow the locals to have more room for maneuvering some problems, such as allowing to absorb funds from Hong Kong, Macao and overseas Chinese, introducing some advance equipments and technology from Hong Kong, purchasing electricity, and importing some feed. He also hope that the Central would allow Guangdong Province to engage in nearby Hong Kong ship-breaking industry to address the needs of steel in the province. He also hoped that the Central would allow Guangdong Province to set up an office in Hong Kong to establish direct links with Hong Kong and Macao manufacturers, and to authorize Guangdong to make decision by their own on process of all the processing and compensation trade, and other aspects of the economic business. The meeting did not make a resolution on these issues. XI returned to Guangdong and called a meeting of the

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Party's Provincial Standing Committee. In the meeting, it was agreed that we should require decentralization based on the characteristics and advantages of Guangdong Province, letting Guangdong go first in the country's Reform and Opening Up.

XI Chong-xun.

In April 1979, XI Chong-xun once again went to Beijing for attending a meeting. At this meeting, he let the Party's deputy secretary of Guangdong Provincial Committee, WANG Quan-guo, speak on behalf of the provincial party committee, recommending to draw some lands in Shenzhen (adjacent to Hong Kong that was under the jurisdiction of the United Kingdom at the time), Zhuhai (adjacent to Macao under Portugal jurisdiction) and Shantou (where there are a lot of relatives of oversea Chinese), to be administered separately, to establish special regions for foreign product processing and trading. That would be beneficial for Hong Kong and Macao compatriots, overseas Chinese, and foreign investors to invest and organize production in accordance with the needs of the international market. This proposal had attracted the attention of the Central Politburo Standing Committee, and got praised

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and supported. After that, XI reported separately to DENG Xiao-ping. Hearing XI’s report, DENG said: "Right! Establish special regions, just as the the Shanganning Special Region in the past!" When it comes to matching funds, DENG waved his hand and said: "The Central does not have money. You engage yourself and blaze a new trail!" In mid-May, Vice Premier GU Mu was sent by the Central, led a working group composed of leaders of relevant ministries, and came to Guangdong for further research and investigation. They helped the Guangdong Provincial Party Committee to draft a document and submitted the document to the Central. In mid-July, the Central approved this document, allowing Guangdong Province to be the first pilot to engage in Reform and Opening Up, to establish Special Economic Zones (SEZs) at cities of Shenzhen and Zhuhai, implementing special policies and flexible measures and, after gaining experience, consider to establish a SEZ also at Shantou City of Guangdong Province and Xiamen City of Fujian Province (facing Taiwan across the Taiwan Strait) . How to engage in SEZs? DENG Xiao-ping said: "Across the river while feeling the stones on the river bed." (Note: The method of "feeling stones on river bed and across the river" was first proposed by CHEN Yun, but not for SEZ.) HU Yao-bang said: "Do new things by using new methods. Do special things by using special measures. Our stance should not be changed while using new methods." GU Mu said: "There is no standard for straw sandals. Just start to make it while thinking the shape of a shoe." DENG Xiao-ping later said: "When we try to establish SEZs and implement the open policy, the guiding principle for it should be clear, that is, not close, but open. ... a

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SEZ is a window, the window for technology, the window for management, the window for knowledge, and the window for foreign policy." At that time, the economic structure of the world was in development for "globalization", i.e. the developed countries had been gradually transferring industrial production to countries of lower wage, to avoid the increasingly higher domestic wages and increasingly more serious industrial pollution. The first of such transferring was that the United States transferred some production to Japan. Later, Japan was also developed, so the United States and Japan transferred, in turn, this part of production to the "Four Little Dragons" (i.e. South Korea, Taiwan, Hong Kong and Singapore). In 1978, the "Four Little Dragons" had developed their economy and was transferring the part of the industry to the "Four Little Tigers" (i.e. Malaysia, Thailand, Indonesia and Philippines) . This was a rare opportunity for China because China was in a favorable position when compared to the Four Little Tigers: China has relatively strong industrial base and a relatively high level of education of the people, and three out of four Little Dragons were a region where Chinese dominates. As so, Guangdong Province that is near Hong Kong, especially Shenzhen SEZ, took the opportunity given by the policy of Reform and Opening Up, began to import raw materials and other materials, set up new enterprises and, as the results, the machines started running, exports greatly increased and foreign money earned. Hong Kong businessmen came to Guangdong Province, engaging in "Three imports and one compensation" (Note: an abbreviation of "Import material and process, impoet sample and process, import parts and

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assembly, and do compensation trade"). All of these four forms of cooperation used domestic equipments and labor to produce and then export the products. After Guangdong Province engaging in "Three imports and one compensation", provinces of Fujian, Shandong, Zhejiang and Jiangsu followed. SEZs pilot process had been accompanied by controversy. Some blamed: "SEZ is the concession during the late Qing Dynasty and the Republican era." "In Shenzhen, only the flag is still red, but all the others are full of capitalism." Facing these accusations, the then Guangdong Provincial Party Secretary, REN Zhong-yi, published an article that stated: "We have established a SEZ. Will it undermine the sovereignty? Will the SEZ become a colony? We can surely answer to these questions: No, it will not. There is no such precedence in the world: No place in the world became a colony due to establishment of SEZ. ... Within the Guangdong Province, the economic, technological and cultural developments were faster in areas opened more; on the contrary, the development was slower in all areas that are relatively isolated and not so opening up. The facts prove that opening up policy is correct." DENG Xiao-ping said: "Poverty is not socialism. On the contrary, socialism is to eradicate poverty eradication. ... Shenzhen SEZ is a test." "All of our reforms are for one purpose, that is to remove obstacles to the development of the social productivity. ... Our principle is to combine Marxism with Chinese practice, and go along Chinese own way, that we call 'building socialism with Chinese characteristics'."

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The Shenzhen SEZ has an administration line of 86 km long, which was to separate the SEZ from the other parts of Guangdong Province. The predecessor of the city of Shenzhen was the main town of Baoan County. In 1978 before the establishment of the SEZ, the county had a population of just over twenty thousand, and industrial output valued only 60 million Yuan. In 1979, the "Bureau of Merchants Steamship for Hong Kong" of the Transportation Ministry set up an industrial area in Shekou within the SEZ, which was on a barren slope and of only one square kilometer in size. This was the first such area in the SEZ, and had 23 factories, as well as a wharf directly connected to Hong Kong. Soon after, Shekou became a modern industrial town. A year later, the Guangdong Provincial Economic Zone Authority, used bank loans of 30 million Yuan as well as some local financial funds, set up special facilities in Luohu District (Note: It is a close proximity to Hong Kong) taking the "Shekou mode" as sample. The facilities included financial institutes, commercial complex, tourism and residential facilities for Hong Kong business to use. The money earned from the basis was then used for the construction of industrial parks within the SEZ. In order to attract investment from outsides, the SEZ had formulated a series of preferential policies for foreign-funded enterprises, covering business ownership, taxation, land use, foreign exchange management, product marketing, and the exit and entry administration. Through various forms of processing, such as compensation trade, joint ventures, cooperative ventures, sole proprietorship and leasing, the SEZ attracted a large number of foreign investments, and rapidly developed. In the first decade of the Shenzhen SEZ history, it actually used foreign investment of US$ 2.7 billion. Within

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the decade, Shenzhen was built from a small town into a modern city. In addition to Shenzhen, the SEZs at Zhuhai, Shantou and Xiamen had also rapidly developed. After the initial development of SEZs, more manufacturers of Hong Kong and Taiwan participated. One of them was GUO Tai-min, who was chairman of Foxconn. Foxconn was a medium-sized manufacturer in Taiwan at the time, having produced TV top cap, plastic molds and components of household appliances, and assembled the computer cables and developed computer connectors. In 1988, GUO opened a factory at the foot of Shenzhen Xixiang landslide, named "Foxconn Ocean Sophisticated Computer Plug Factory", hiring about one hundred people. At that time, Foxconn was unknown to the public. On one occasion, GUO arrived at ashore in Shenzhen’s Fuyong Ferry Terminal by a boat. It was raining. The car driver wanted to unload in the front of the dock building, but the public security men standing in front of building did not allow him to be closer, and began to argue with the driver, with an arrogant attitude. The heavily built GUO came out for persuasion and showed his own identity, but the public security men did not care about who he is, and even became abusive while GUO was also endured a foot kick. They talked with the leader of the public security men, but were still ignored. However, GUO had spotted advantage of the mainland China, continued to develop in Shenzhen SEZ. At that time, salary in Taiwan was about five times of that of the mainland, but still could not find enough workers. Outside the factories in the mainland, however, people lined up for a job, and they are young and agile, with some education. The land price here was much cheaper than in

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Taiwan, but here you could have as many as you want at a low price. Local governments were actively looking for investment, and they paved roads for manufacturers, prepared the land and provided services. The tax incentives were also attractive: The investors do not need to pay any taxes in the first five years, and will pay a half of the tax in the second five years, and these preferentials can be continued to enjoy if the manufacturer continue to invest. GUO bought large tracts of land in Longhua and established Longhua Industrial Park, and developed and expanded rapidly. Later, Foxconn had become one of the best global foundries. Foxconn's customers included the world's leading brands of computers and mobile phones, such as Apple, Dell, Hewlett-Packard (HP), Lenovo, Nokia, Motorola and many more. Foxconn assemblied high-tech products for them, and do it precisely, fast, with flexible time, while the labor costs was only one-tenth of those in developed countries. [In 2011, the total imports and exports of Foxconn amounted to 214.7 billion US dollars, accounting for 5.9% of the total import and export in China. Foxconn's sub-factories were throughout China: Shenzhen, Foshan, Zhongshan, Dongguan, Huizhou and other places in the Pearl River Delta; Shanghai, Kunshan, Nanjing, Huai'an, Funing, Hangzhou, Ningbo, Jiashan and other places in the Changjiang River Delta; Beijing, Tianjin, Yantai, Langfang, Qinhuangdao, Yingkou and other places in the Bohai Rim; Taiyuan, Jincheng, Zhengzhou, Jiyuan, Nanyang, Chongqing, Chengdu, Wuhan, Nanning, Beihai, Harvest, Changsha, Hengyang and other places in Midwest China.] In 1984, China further opened Guangzhou, Shanghai and other twelve cities as "Open coastal cities,", and opened the Bohai

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Rim, the Changjiang River Delta, Pearl River Delta and the Xia-Zhang-Quan Region in Fujian Province as the "Economic open zones". Opening up had been further expanded.

The socialist road with Chinese characteristics

On September 1, 1982, DENG Xiao-ping made an opening statement in the Twelfth Congress of the Communist Party of China: "Combine the universal truth of Marxism with China's specific reality, take our own road and build socialism with Chinese characteristics." In the past, he had said: "While engaging in the democratic revolution in the past, Comrade MAO Ze-dong opened the road of “Countryside surrounding the city” to fit the Chinese situation. Now when engaging in economic development, we should also fit the Chinese situation and find out a road for Chinese-style modernization." About the "Chinese characteristics" in the "Road of socialism with Chinese characteristics", the Third Plenum of the Eleventh Central Committee held in December 1978 just set a big frame: "Reform and Opening Up". As to how to reform and how to open up, the Plenum did not define, and actually could not exactly define at that time. At the time, DENG just called everyone to "emancipate the mind", "be determined to try and break boldly". He repeatedly stressed that, no matter what, we should be practical and realistic, and test in practices. He had said something interesting, which was later dubbed as his "Three theories". The first theory is the "Cat theory". He said: "Whether black or white, the cat that catches mice is a good cat." The second one is the "Touch theory", i.e. "Touch the stones on the river bed when crossing the river". (Note: In

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fact, it was first proposed by CHEN Yun but for a different issue.) The third is "No-controversy theory". He said: "Not arguing is to earn time to take real actions. Debating makes things complex, makes the time lost, and with nothing done." (Note: At that time he said this, he was pointing to the debate on if the Household Responsibility System is "socialist" or "capitalist" in nature.) When the Household Responsibility System emerged in rural areas, Guangdong Province set up Special Economic Zones, and workers were employed by individuals in urban and rural areas, DENG made speeches supporting these new things, but did not argue with the opposition. He waited until these new things to fruition, and then vigorously promoted them in the whole country. In the central level, there also had been different views when DENG put forward the Reform and Opening Up. Soon after SEZs were set up, CHEN Yun said in a meeting of the provincial party secretaries that SEZ should not be expanded anymore, and we should fully observe the side effects generated by the SEZ. In particular, he stressed that Provinces of Jiangsu and Zhejiang, including Shanghai City, should not engage in the SEZ. He said: "These areas are famous for opportunist activity and contrition of opportunities; they are familiar with how to do speculation, and proffere whenever there is a chance (Note: CHEN Yun himself is from Shanghai)." In this regard, DENG Xiao-ping showed an attitude of respecting CHEN's view and did not argue, but continued to support SEZs. For the use of foreign capital, CHEN Yun said repeatedly that foreign capitalists chase not the average profits but excess profits, and will not let you take advantage of them. He often asked GU Mu, who was in charge of foreign economic relations, to be vigilant. DENG Xiao-ping supported pro-market economy,

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which is the opposite of the socialist planned economy, and said to ZHAO Zi-yang in 1988: "We learned planned economy from the Soviet economy. But now even they are not doing so anymore, why are we still doing it?" HU Yao-bang was even more uninterested in planned economy. He believed that the top-down and highly centralized planned economy hindered the enthusiasm and creativity of the masses, and tied enterprises’ enthusiasm and local initiative. He believes that, for development of socialist economy, we should let the masses, enterprises and locals do what they think are proper. But CHEN Yun and LI Xian-nian had been continously emphasizing that "plan is the main thing, pro-market is supplementary". CHEN Yun said: "It is more imaginable to treat the economy development like aviculture. One should not catch a bird too fast because the bird would then be killed. On the other hand, we should cast our hands because the birds should then fly away. One should put a bird in a cage so that it would not be squeezed to death nor fly away." This theory of CHEN was later called "Birdcage economy". He also said: "China's first five-year economic plan was successful, but later we had not done a good job, mainly because of interference from MAO Ze-dong and the Cultural Revolution, not because of a planned economy. If we continued what the first five-year plan did, the effects would have been certainly very good." CHEN Yun thought the success of the Soviet planned economy is a proof: "Soviet Union had been transferred, within a few decades, from a backward country into a powerful nation only after the United States." It was fortunate that DENG and CHEN, although having different views, still agreed to each other that we "touch the stones on the river bed while crossing the river",

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and take the attitude of "wait and see" which cat, the white cat or the black cat, finally catch the mice. The word "socialism" in the phrase of "Socialism with Chinese characteristics" is meant to say that China should still go along the socialist road and, more specifically, adhere to the "Four Cardinal Principles", which were put forwards by DENG Xiao-ping at the end of March 1979. DENG said: "We want to achieve the four modernizations in China, and therefore must adhere to the 'Four Cardinal Principles' in ideology and politics. These are the fundamental premise of the four modernizations. These Principles are: First, we must adhere to the socialist road; Second, we must uphold the proletarian dictatorship; Third, we must uphold the leadership of the Communist Party; Fourth, we must adhere to Marxism-Leninism and MAO Ze-dong Thought. ... First, only socialism can save China, which is the unshakable historical conclusion of Chinese people drawn from their personal experience in the sixty years since the May Fourth Movement (in 1919) up to now. ... Second, the economic, technological, cultural and other aspects of solialist China are not yet as advanced as the developed capitalist countries, which is a fact. But this is not the cause of the socialist system but, fundamentally speaking, the cause of the history before the liberation (in 1949). ... Even though we made some mistakes, we had achieved progress in the three decades, which China had not made in hundreds or a thousand of years. ... Which system is better, the socialist system or the capitalist system? Of course, the socialist system is better. ... Socialist economy is based on public ownership in order to satisfy the material and cultural needs of the people and not for exploitation. Because of these characteristics of the

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socialist system, our people can have a common political, economic and social ideals, and common ethical standards. ... Capitalism can never get rid of super profits of millionaire, can not get rid of exploitation and plunder, can not get rid of economic crisis, can not form a common ideals and morality, and can not avoid all kinds of extremely serious crimes, corruption and despair. ... The Central raised the question this way, is it making a small issue big? No. The development of the situation forced the party to raise the question this way. A few people have making troubles in the most recent period at some places. Some bad men not only do not accept the guidance, advice and interpretation of the responsible cadres of the party and the government, but also made all sorts of demands that are impossible to achieve in the current or simply unreasonable, incited to trick some people to impact government agencies, occupy offices, implement hunger strike in meditation, block traffic, and seriously damage the work order, production order and social order. Not only that, they also put forward sensationally the so-called 'Against hunger', 'We want human rights' and other slogans, incite some people to demonstrate under these slogans, premeditatedly let foreigners put their words and deeds to get wide publicity in the world. There is a so-called 'China human rights group', which even actually put up the posters, asking the US president to 'care' human rights in China. Should we allow such a behavior requiring blatantly foreigners to interfere in China's internal affairs? There is a so-called 'Thaw society', which issued a manifesto openly oppose proletariat dictatorship, saying it is to split humanity. Can we allow this kind of 'freedom of speech' publicly opposing the constitutional principle? In Shanghai, there is a so-called

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'Democratic forum', and someones in the forum slander Comrade MAO Ze-dong, openly show counter-revolutionary banners and slogans, advocating that 'proletariat dictatorship is the source of all evils', and calling 'resolutely and thoroughly criticize the Communist Party of China'. They believe that capitalism is better than socialism, and the problem China faces now is not the problem of the Four Modernizations but, as they said it, 'social reform', which is actually to engage in capitalism. … They openly declare that their task is to engage the 'capitalist roaders', which the 'Gang of Four' did not solve. Some of them required going to foreign countries for 'political asylum', and some others even contacted JIANG Jie-shi's secret agencies and planned sabotage. Obviously, these people just want to do everything possible to undermine our shifting the focus to economic development. If we turn a blind eye to these serious phenomena, then our party and government organs at all levels will be bothered by them and unable to work, and have no time to consider the Four Modernizations. ... Under the socialist system, personal interests must be subordinated to collective interests, and local interests should be subordinated to the overall interests, and temporary interests should be subordinated to long-term interests. These could also be called 'a small situation obeys the overall situation' and 'little reasoning obeys overall reasoning'. ... If you leave the Four Cardinal Principles and talk about democracy abstractly, it will definitely lead to a severe flooding of extreme democratization and anarchism, resulting in the complete destruction of the political situation of stability and unity, and the complete failure of the Four Modernizations. ... Some young men and women blindly envy capitalist countries, some people even regardless of their own

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national character and personality when contacting with foreigners. We must pay serious attention to this situation, as a must." On other occasions, DENG also said many times why China should go along the socialist road. On November 27, 1978, he met with US columnist Robert Novak. Novak asked DENG whether or not China would consider the election system of the West. DENG replied: "The whole system of ours is different from the West. You have parliamentary system and we have People's Congress system that we will not change. I believe that our present system, if use it well and has appropriate reforms, is much more convenient than yours to get things done. " On July 26, 1982, DENG said at a meeting: "In comparison with capitalism, the advantages of socialism are to take the whole country as a big picture, to concentrate efforts to ensure focusing on important things." On September 13, 1986, DENG said in a discussion on programs of the economic reform: "In the reform, we should not copy the West, and not engage in liberalization. Our leadership system also has benefit, i.e. a decision can be made quickly. If putting too much emphasis on the institutional constraints of each other (Note: e.g. 'power separation' among executive, legislative and judicial powers, as implemented in the United States) may also have problems." On June 12, 1987, DENG said in a meeting with Yugoslav guests: "The biggest advantage that socialist countries have is that, after determineing to do something and making a resolution, we can implement it immediately without constraints. On the other hand, parliament democracy should go over so many complicated process, experience so much set backs, experience many discussion but still no decision made, and cannot be

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implemented even though a decision has been made. We can say that, in this regard, we are highly efficient, i.e. after a decision is made, we can implement it immediately. What I am talking about is the overall efficiency. In this regard, this is our advantage that will be maintained. We should not use the West's 'Separation of three powers' to ensure the superiority of socialism." On October 13, 1987, DENG met Hungarian guests and said to them: "Democratic centralism is also our advantage. This system is more conducive to the unity of the people, and much better than Western-style democracy. For every decision we make, we can immediately implement." He said in the conversation with another group visiting China: "In the US, there are three governments. When dealing with the US, one does not know which one is really in charge. They are mutually buck-passing, and therefore it is very hard to get job done." When met with Nixon on October 31, 1989, DENG said to him: "A nation could not stand up in the world if the people do not have national pride and not treasure their own national independence. Ask China to beg? No way. Even if sanctions against China would last for a hundred years, Chinese people will not beg the lifting of the sanctions. If China does not respect its own, China cannot stand up in the world. National dignity is very serious issue." Under the presupposition of the Four Cardinal Principles, DENG Xiao-ping also advocated political reforms, i.e. some specific reforms under the overall framework of the socialist political system. At the end of August 1980, he spoke in an enlarged meeting of the Political Bureau, with the title of "Reform on leadership system of the Party and the state". He said: "In some of the specific systems used currently in the

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party and the nation, there are a number of drawbacks, which impede or even seriously hinder realization of superiority of socialism. ... The major drawbacks are phenomena of bureaucracy, excessive concentration of power, Patriarchal style, life tenure for leading posts, and privileges of all kinds. ... We need to appropriately and clearly define job tenure for leading cadres at all levels, no matter elected, appointed or employed, as well as retirement of different types. Any leading cadres' tenure cannot be indefinite. ... Citizens are equal before the law and the system, and party members are equal in front of the Party Constitution and discipline. ... On the terms of reference, and political and living standard treatments for cadres at all levels, we should develop a variety of regulations and, most importantly, set a special agency to supervise and inspect ruthlessly. ... Reform on the leadership system of the Party and state, is not to weaken the Party's leadership and lax the Party's discipline, but to uphold and strengthen the Party's leadership, and uphold and strengthen party discipline. In a large country like China, it is unimaginable to unite hundreds of millions of people and bring their ideas and forces to build a socialist country, unless there is unified leadership of a party with a high consciousness, discipline and spirit of self-sacrifice, and composite members who are true representatives of the people and unite the people. Without such a unified leadership of the Party, the country will fall apart and gets nothing done. This is the truth understood profoundly by the people of all nationalities after struggle and practice for a long period of time. Unity of our people, social stability, development of democracy and national unity, all have to rely on the Party's leadership. The core of the Four Cardinal Principles is to

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uphold the Party's leadership. The problem we face is that the party leadership should be a good one. We need constantly improve the leadership, so to strengthen the leadership. ..."