This way Wei Hongjun has time to attend the meeting of the Finance Committee.

"The biggest problem at present is that the national finances are decentralized and the central government does not understand the local situation." Bo Shuchun said.

Currently, the local central bureaus and regional administrative committees have great power.

This is primarily because the regional governments have their own finances, militaries, and personnel systems. Even laws enacted by the central government can be overturned by the regional governments. The regional central bureaus and regional governments truly hold the ultimate power over the Party, government, and military. This has the greatest influence on the Finance Committee.

The Chinese Communist Party mainly learned from the Soviet Union, and its financial and economic policies mainly followed the planned economy.

Furthermore, China has historically followed a path of centralization. With the establishment of the Central People's Government, centralization is undoubtedly necessary. Similarly, the Finance and Economics Commission, the department responsible for central finance and economic affairs and responsible for formulating fiscal and economic policies, is currently unfamiliar with local conditions.

If you are not familiar with local conditions, you are not familiar with the national fiscal situation, and you will not be able to formulate fiscal policies.

"This is indeed a big problem." Chen Yun also had a headache.

In fact, Chen Yun had been considering this issue since he was promoted to the central government to form the Finance and Economics Committee. In Yi County, he also frequently held meetings with financial officials from the local central bureau and local regions.

But it's not that easy.

Just like at the Second Session of the Seventh Central Committee, Wu Hao was forced to apologize, saying he had acted too hastily in centralizing power. Chen Yun's attempt to unify the nation's finances also encountered significant resistance. Local powerful factions were reluctant to relinquish their power easily.

"Since the Opium War, the central authority has declined. Later, the Taiping Heavenly Kingdom emerged. In order to suppress the Taiping Heavenly Kingdom, Zeng Guofan and others began to intercept local taxes, and localities began to collect lijin to enrich local finances. Until the Republic of China, warlords were divided, and each had its own policies, laws, and taxes. Although we have now established the Central People's Government, the situation has not changed much. I think the first step we need to take is to unify tax items and tax rates and strengthen the unified collection and management of central taxation. At present, there are too many tax items across the country, and each place is different. Moreover, the tax rates are different in different places, and there are even many places that still collect lijin as in the Qing Dynasty. Such a chaotic collection situation affects our tax policy. Therefore, we must unify the tax items and tax rates as soon as possible and abolish various local levies and miscellaneous taxes. Only in this way can our tax collection and management be clear at a glance. The central government can grasp the economic situation of each place." Wei Hongjun said.

This time, several deputy directors are also serving as ministers, entirely due to a shortage of personnel. Originally, their primary responsibility was to coordinate with Chen Yun and ensure the smooth functioning of the Finance and Economics Committee. These deputy directors all had specific responsibilities.

Chen Yun, as director of the Finance and Economics Committee, was responsible for all matters. Bo Shuchun oversaw the Ministry of Finance, the Ministry of Railways, the Ministry of Communications, and the Ministry of Labor. Zhou Bin oversaw the People's Bank of China, the Ministry of Posts and Telecommunications, the General Administration of Customs, and the Ministry of Foreign Trade. Wei Hongjun oversaw the Ministry of Fuel Industry, the Ministry of Textile Industry, the Ministry of Food Industry, the Ministry of Light Industry, the Ministry of Agriculture, the Ministry of Forestry and Reclamation, and the Ministry of Water Resources.

Originally, this was the division of labor among the deputy directors.

However, due to a shortage of cadres, the three deputy directors could only serve concurrently as ministers of the ministries below them. Even Chen Yun, the director of the Finance and Economics Committee, had to serve concurrently as the Minister of Heavy Industry.

Historically, the central government has repeatedly promoted cadres from local central bureaus and regional governments. This was intended not only to gradually weaken the power of these bureaus and regional governments, but also because the central government is severely short of cadres. Only by gradually dismantling the regional governments over two to three years, as has been the case historically, can the current central government cadre shortage be addressed.

Wei Hongjun has also thought a lot about the work of the Finance and Economics Committee.

After all, Wei Hongjun was previously the head of a region and was quite experienced in economic work.

Chen Yun took Wei Hongjun's words seriously. Although they had only collaborated briefly during the development of the Northeast Anti-Japanese Base Area, Chen Yun was very satisfied with their collaboration. He also admired Wei Hongjun's talent for economic development in the base area.

Wei Hongjun continued, "Secondly, we must establish a unified RMB issuance bank to further strengthen our control over currency issuance. We must then promote the RMB nationwide as quickly as possible, ensuring that people everywhere accept it. This is the most crucial task in unifying our national financial markets. Currently, currency issues remain unresolved, not only in the newly liberated areas, but also in some of the older areas. In many of our older areas, many people still trust silver dollars more than our RMB. This situation must be changed as soon as possible."

"Third, establish a state-owned material company as soon as possible, and at the same time, establish state-owned material warehouses. Those necessities of life must be controlled by the government. This will stabilize the national finance, stabilize national prices, and control the lifeline of the national economy."

Listening to Wei Hongjun's suggestion, Chen Yun nodded.

Wei Hongjun outlined the most pressing task of the Finance and Economics Committee, and he was very specific.

Chen Yun knew that Wei Hongjun had done a lot of work in advance.

After Wei Hongjun finished speaking, Zhou Bin immediately said: Comrade Jian Hongjun is absolutely right. Only after completing the step mentioned by Comrade Wei Hongjun, can we unify the national fiscal revenue, unify the national material quota, and unify the management of cash in the country. We must quickly get all government agencies, enterprises, and people in the country accustomed to depositing their cash in the national bank when it is not immediately used. This includes our financial expenditures for military and government agencies, which should not be in cash, but should go through the bank channel. In the future, our country will carry out large-scale construction, and relying solely on taxation is far from enough. We must be good at using financial power to raise sufficient funds to invest in economic construction."

Chen Yun has been recording.

Chen Yun is very satisfied with the current configuration of the Finance and Economics Committee.

Peng Zhen also participated in the formation of the Finance and Economics Committee. He is a more powerful figure than Wei Hongjun and Zhou Bin. However, when it comes to China's current economic situation and fiscal and economic policies, Peng Zhen isn't necessarily superior to Wei Hongjun and Zhou Bin. Both Wei Hongjun and Zhou Bin possess extensive experience, so each of their suggestions is tailored to the current situation.

Chen Yun put down his pen and said, "Although fighting is still going on in many places, military spending is still too high. We must find a way to reduce military spending." The high military spending is Chen Yun's biggest headache at the moment.

Chen Yun did some preliminary statistics. Military spending accounted for approximately 47% of central and local government expenditures. While this was unavoidable during the war, now that most of the country had been liberated, Chen Yun's first thought was how to reduce military spending. Even a slight reduction would have significant financial benefits.

"Director Chen, our Finance and Economics Committee can only make suggestions on this issue." The Finance and Economics Committee is just a committee under the State Council.

Reducing military spending is not within the purview of the Finance and Economics Committee. The decision to reduce military spending can only come from the Central Committee and the Military Commission. However, Wei Hongjun continued, "However, our Finance and Economics Committee can conduct an advance survey of the staffing levels of military and political institutions, as well as their financial expenditures. With this detailed data, we can formulate the next plan. This will also provide the data needed to support further disarmament and military spending reductions."

"Correct."

Zhou Bin echoed, "I believe the Finance and Economics Committee's most important task right now is to comprehensively assess China's current economic and fiscal situation. It also controls vital supplies nationwide, replenishing national revenue and expenditure, and ensuring military and civilian supplies." "Comrade Bo Shuchun, what do you think?"

"I agree. Only after the preliminary preparations are completed can we unify the national finances in the next step."

After several people discussed it, they decided to issue a resolution in the name of the Finance and Economics Committee regarding the unification of tax items and rates and the establishment of a state-owned major material company and warehouse. These resolutions would then need to be submitted to the State Council for approval.

After approval by the State Council, it can be publicly promulgated.

It was then decided to establish a National Organization Committee and a National Warehouse Material Clearance and Allocation Committee within the Finance and Economics Committee. Wei Hongjun was appointed Director of the National Organization Committee, responsible for overseeing the organization and allocation of personnel for military and political organizations nationwide. This essentially meant controlling national military and political expenditures. Due to the ongoing war in the past two years, significant changes had occurred in both military and political organizations.

Look at Luo Shuai.

Marshal Luo was the Second Secretary of the Central China Bureau and the Political Commissar of the Fourth Field Army. However, after the Yangtze River Crossing Campaign, he was transferred to the Central Committee. In fact, he never even took up his post in the Central China Bureau. This situation is common in military and political institutions.

But things are different now.

The establishment of the People's Republic of China and the Central People's Government was imperative. A comprehensive understanding of the current military and political situation across the country was essential. The Finance and Economics Committee, as the department responsible for controlling the nation's finances, was particularly crucial in gaining a clear understanding of this. Only then could they be allocated funds according to their respective staffing levels.

Zhou Bin served as director of the National Warehouse Material Clearance and Allocation Committee, responsible for managing the allocation and use of inventory from all warehouses of state-owned commercial enterprises and administrative institutions nationwide to supplement national revenue and expenditure, military supplies, and civilian needs. Simultaneously, a number of state-owned grain companies, printed yarn and cloth companies, China Textile Company, and local product companies were quickly established to centralize the purchase and sale of important materials.

In a planned economy, you must have the strength yourself.

Without power and control over vital resources, how can a planned economy be achieved? Without power, how can you command the world? Therefore, Zhou Bin's next task is crucial.

Bo Shuchun's task was to hold meetings with finance officials from various regions to prepare for the next step of unifying the national finances. The Finance and Economics Committee planned to unify the national finances within two years, bringing all national revenues under the Ministry of Finance. This was a tough battle.

After all, it is not easy to ask local central bureaus and local regions to give up their financial and certification powers.

This internal meeting of the Finance and Economics Committee was the first time several people met to discuss upcoming work. Overall, everyone was quite satisfied. Perhaps because it was the first meeting, there were no conflicts.

Chapter 761 Fuel Industry Department

After the internal meeting of the Finance and Economics Committee ended, Wei Hongjun immediately devoted himself to the work of establishing the National Compilation Committee and the Ministry of Fuel Industry.

The power of the National Organization Committee is both enormous and limited. Especially now, its primary responsibility is statistics. It must ascertain the staffing levels of all military and political institutions nationwide, as well as the funding levels of each unit. Only by understanding the staffing and funding of these institutions can they assess the appropriate use of funds. They can even cut funding to some institutions and require them to streamline their operations.

But at the same time, it is not easy to streamline the bureaucracy.

This is not something that a compilation committee can control.

That is why it is said that the power of the National Compilation Committee is neither big nor small.

Furthermore, precisely because it needed to manage the national military and political system, the National Organization Committee needed the cooperation of the local central bureaus and regional governments. However, with the founding of the People's Republic of China imminent, coordinating with the local central bureaus and regional governments was impossible within a short period of time. Therefore, the National Organization Committee had to be postponed. Wei Hongjun focused his attention on the Ministry of Fuel Industry.

Although the current central government ministries and commissions are all upgraded from the ministries and commissions of the North China Bureau and the North China People's Government, each one is severely understaffed. This is because the number of departments within the Central People's Government has increased significantly compared to the ministries and commissions of the North China People's Government. Currently, the central government primarily appoints key personnel within each ministry. Most appointments are limited to ministers and a few vice-ministers, while the various departments and directors below are not fully appointed.

There are still many insufficient staffing issues in the remaining ministries and commissions, and each ministry needs to report to the higher authorities on its own.

Wei Hongjun is in charge of the work of seven ministries and commissions.

All matters concerning these ministries and commissions must first be reported to Wei Hongjun. Wei Hongjun can make the general decisions, but some important matters need to be discussed in the Finance and Economics Committee.

However, Wei Hongjun did not forget that he also served as Minister of the Fuel Industry.

Therefore, Wei Hongjun planned to first strengthen the staffing of the Ministry of Fuel Industry. Currently, the central government has confirmed that the Ministry of Fuel Industry will have two deputy ministers and one deputy director, in addition to Wei Hongjun as minister. The two deputy ministers are Liu Lanbo and Xu Daben.

A native of Liaoning, Liu Lanbo attended Nankai Middle School in Tianjin before graduating from Peking University. Most of his work over the years has been related to Northeast China. He was working there before the September 139 Incident, joined the Northeast Volunteer Army afterward, and later served in the Northeast Army. In , he returned to Yan'an and began working in the United Front Work Department, continuing to focus on the Northeast Army. After the end of the Anti-Japanese War, as a cadre from Northeast China, he also relocated there. He served as a member of the CPC Liaodong Provincial Committee, Vice Chairman and Chairman of the Andong Provincial People's Government, Secretary of the CPC Andong Provincial Committee, and Political Commissar of the Andong Military Region.

When the Ministry of Fuel Industry was established, the central government transferred Liu Lanbo to the central government, where he served as Vice Minister and Deputy Secretary of the Party Committee. He also served as Director of the State Electric Power Administration, responsible for the power industry. Xu Daben was a cadre from North China.

He was Vice Minister of the Enterprise Department of the North China People's Government and had previously been in charge of the coal industry in North China. This time, he was appointed Vice Minister of the Fuel Industry Department and Deputy Secretary of the Party Leadership Group, while also serving as Director of the Coal Administration. Another Deputy Director was Xu Jinqiang, who was promoted from the East China Coal Administration.

He had previously served as a military representative for the China National Petroleum Corporation in Shanghai. This time, he was promoted to the central government, serving as deputy director and then acting director of the Petroleum Administration Bureau of the Ministry of Fuel Industry. This was because China's oil industry was so backward at the time. Finding cadres familiar with the industry was difficult.

These four people were already appointed cadres from the Ministry of Fuel Industry. The rest of the staff were basically cadres transferred from the North China Water Conservancy Commission and the Enterprise Department.

The only department within the Ministry of Fuel Industry with a relatively complete cadre structure is the Coal Administration. With Xu Daben as its director, many officials from the Enterprise Department of the North China People's Government, who previously managed the coal industry in North China, have joined the Ministry of Fuel Industry. The Electric Power Administration and the Petroleum Administration are the least well-organized. Liu Lanbo and Xu Jinqiang, transferred from Northeast China and East China respectively, arrived in Beijing, unfamiliar with the surroundings.

"Deputy Director Wei, this is my idea."

Liu Lanbo submitted to Wei Hongjun the cadre ideas that the State Electricity Administration wanted to use.

Wei Hongjun took a look.

I am still very interested in Liu Lanbo's ideas.

He spent most of his time working in Northeast China, or with the Northeast Army. But this report was exceptionally well-written, covering every aspect. He assigned cadres from Northeast China to oversee the hydropower generation portion of the State Electric Power Administration. He assigned cadres from North China to oversee the thermal power generation portion of the State Electric Power Administration. And he assigned cadres from the East China Bureau to primarily oversee power generation equipment manufacturing.

This is because the talents of the country's major power industries are currently concentrated in these three places.

Northeast China, North China and East China.

Northeast China has the most hydropower stations, while North China has more thermal power stations. As for power generation equipment manufacturing, Northeast China and East China, primarily Shanghai, have relatively strong technical capabilities. Wei Hongjun nodded.

I support Liu Lanbo's choice.

The North China faction within the central government's ministries and commissions is too powerful. For example, in the various ministries and commissions under the State Council, although many of the ministers are not from North China, the majority of the vice ministers, directors, and directors of various departments are from North China. This is actually detrimental to the future of North China cadres.

Because it's easy to incur the central government's skepticism and be targeted by local central bureaus and regional governments. It would also be beneficial for North China cadres if each ministry added some cadres from the various local bureaus and regional governments. "According to your ideas, draw up a list of cadres as quickly as possible."

"Yes."

This was Liu Lanbo's first time working under Wei Hongjun and he was not very familiar with him.

Therefore, all parties were very cautious. If Liu Lanbo's original idea had been followed, it would have been best to draw all personnel from the Northeast Bureau, especially from Liaodong. This was because he was familiar with the cadres there. While in Liaodong, Liu Lanbo also oversaw the restoration and development of Liaodong's industry.

There is a group of industrial cadres he is familiar with.

But he knew that central government ministries and local governments were different. He had just been promoted to a central government position and hadn't even secured his seat yet, so how could he so brazenly transfer cadres he knew well? Wei Hongjun looked past Xu Daben and at Xu Jinqiang. Like Liu Lanbo, Xu Jianqiang was also working under Wei Hongjun for the first time. Furthermore, Xu Jinqiang's experience was limited, and his rank was insufficient, so he was only transferred to the position of Deputy Director of the Petroleum Administration Bureau.

There is a big gap between his rank and Wei Hongjun's.

Seriously speaking, Wei Hongjun's current rank is higher than ministerial, but not quite vice-ministerial. This is because the State Council currently lacks a clear hierarchy. If the rank system were to be established, Premier Wu Hao would be administrative level one, while several directors of State Council committees, such as Chen Yun and Nie Shuai, would be administrative level two. Wei Hongjun would be administrative level three. Xu Jinqiang, on the other hand, is currently only a bureau-level official. Even if he were to be rated administrative level nine, that would be considered high. He could even be promoted to administrative level ten due to his lack of experience. Therefore, although Xu Jinqiang serves as acting director of the Petroleum Administration Bureau, his voice is not as strong as that of Liu Lanbo, who serves as vice minister.

Wei Hongjun looked over, and Xu Jinqiang immediately said, "Deputy Director Wei, my country's oil industry currently has a weak foundation. In 47, the country's crude oil production was only 26 tons. However, my country's annual oil consumption is currently around 130 million tons, and last year, my country imported over one million tons of oil. Oil has become my country's most important imported bulk commodity in recent years, and it is also the import commodity that consumes the most foreign exchange. The current national oil situation is that not only is production very low, the equipment capacity is very small, and the resource situation is unclear. Foreign countries say that my country is an oil-poor country and that there are no large-scale oil fields in my country."

Wei Hongjun listened carefully to Xu Jinqiang's words.

Wei Hongjun has also read information about the petroleum industry.

Currently, China's own oil can only meet one-fifth of its needs. This means that four-fifths of its oil needs must be imported. And this is just the beginning. Once China's industrialization begins, its oil needs will increase exponentially. As a result, China's oil shortage will become increasingly serious.

Fortunately, the Daqing Oilfield was discovered in history.

Otherwise, China’s economy at that time, including its industry, might have collapsed.

Xu Jinqiang continued, "So I believe our Petroleum Administration's main task going forward should be to vigorously explore natural oil resources while also developing synthetic oil. The National Geological Work Planning Steering Committee and the Mineral Geological Exploration Bureau have been encouraging my country to explore for oil and natural gas. What we need to do is to establish a team for detailed oil and natural gas exploration, testing, drilling, and development."

Wei Hongjun listened and took notes.

I'm quite satisfied. The cadres of this generation who make it to central government ministries and commissions are all exceptionally capable. Perhaps it's because the CCP is no longer the same as it was when it was first founded. Back then, many people in their twenties were already important central leaders.

But they have no experience at all.

As a result, many problems arose.

But after so many years of revolution, the current top leaders of the Communist Party of China are generally experienced. Wei Hongjun worked with Xu Jinqiang for the first time, but he was very supportive of his ideas.

A lot of work needs to be done in advance.

So Wei Hongjun thought about it and said, "Comrade Xu Jinqiang, you said we should draw out a troop and reorganize it into a petroleum engineering troop, specifically for oil drilling work. What do you think?" Wei Hongjun was a cadre from the army.

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