K. This is the 1st working draft of vol. VI. It still ... - From Marx to Mao

ECONOMIC AND FINANCIAL PROBLEMS IN THE ANTI-JAPONESE WAR
Below I shall discuss our publicly owned economic undertakings
over the past five years item-by-item beginning with self-supporting
industry.
We first began to pay attention to the construction of publicly
owned industry in 1938. In that year the Border Region successively
established the Refugee Textile Mills, the paper factory, the bedding
and clothing factory, the agricultural implements factory, and
the Eighth Route Army medicine factory. Later on most of these
factories each provided an important stimulus. At this time the industrialist
Mr. Shen Hong voluntarily moved his ten privately-owned
machines to the Border Region to serve the Eighth Route Army, and
Mr. Shen himself came to the Border Region to work. Thereafter
FROM MARX
TO MAO
many scientific and technical personnel also came to the Border
⋆
Region to work, enabling the Border Region to gather a pool of scientific
and technical talent as the guiding force in the establishment
of industry.
In 1939 the blockade of the Border Region economy began. Imports
of industrial products were limited. The Party Central issued
the calls to “set-to ourselves” and to be “self-reliant”. After the
Border Region Government held the agricultural exhibition in January,
it held an industrial exhibition on Labour Day, which stimulated
enthusiasm to develop industry. The government and the Rear
Services Department sent NOT people to FOR Sian to select and buy machines
and materials. They also organized spinning and weaving co-operatives
and oil-pressing and tile-making producer co-operatives in
Yanan and Ansai. COMMERCIAL
Although the machines and materials bought from
Sian were insufficient, they became one of the major material
strengths in the development of Border Region industry over the past
few years. In that year we also set up the Xinghua Chemical Factory
and the Guanghua DISTRIBUTION
Medicine Factory, and began to explore the
thick coal-seams at Shilipu in Yanan County.
The development of industry in 1940 was carried out under the
policy of becoming “semi-self-sufficient” in production. It was decided
to make the development of light industry the key feature. In
January we held the second industrial exhibition and reviewed the
strength of our factories. The Border Region Bank lent 1 million
yuan to expand factory capital, to set up proper factory sites and to
continue buying materials. In February the Central Committee put
forward the policy of “centralized leadership and dispersed operation”.
In September Commander Zhu promoted the wool-spinning
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