Rebirth: I am in Jin-Cha-Ji

Jinhua has rapidly become Zhejiang's major granary, thanks in particular to large-scale water conservancy projects, the transformation of perennially waterlogged muddy fields, extensive afforestation to transform sandy land, the conversion of dry land to paddy fields, and the conversion of single-crop arable land to double-crop arable land. They have even experimented with increasing nitrogen with phosphorus, achieving significant success.

This is easier said than done. To transform low-yield farmland into high-yield farmland, Jinhua mobilized local residents in a single winter to dig up over 7000 million dan of pond mud. Applying this mud to farmland improves the soil and increases grain production.

To improve the land and expand arable land, projects were launched to control mountains, water, and improve soil conditions. Within a month, over 800 million people were mobilized, and everyone worked at the construction sites, including eating, drinking, and defecating. Every day, 110 to 4.7 people were working on the site. Within just one month, 170 million mu (approximately million hectares) of land were successfully improved, expanding mu (approximately million hectares) of arable land. The following year, the yield per mu of these improved farmland increased by over kilograms (approximately tonnes).

Wei Hongjun, a veteran of military campaigns, understood better than anyone that completing a project of this magnitude within a month, mobilizing so many manpower and resources, was no easy feat. This speaks volumes about the organizational and mobilization capabilities of the Jinhua leadership.

Of course, Jinhua's achievements extend beyond agricultural production to include water conservancy projects. In 1957 alone, the Jinhua Special District constructed 1522 small reservoirs and 12588 weirs. Throughout the Jinhua Special District, nearly every production cooperative had a small reservoir. These reservoirs were primarily used for agricultural irrigation, resulting in nearly all of the district's arable land now being paddy fields.

In addition to small reservoirs, Jinhua District has also built several large and medium-sized reservoirs to regulate the water resources of the entire Jinhua District.

In addition to reservoir construction, Jinhua Prefecture has another nationally renowned achievement: the vast number of small hydropower stations built. Among prefectures nationwide, Jinhua boasts the largest number of small hydropower stations and the largest installed capacity.

Wei Hongjun couldn't help but applaud at the data. Jinhua's achievements were truly dazzling. Before liberation, Jinhua was a very backward place. Not only was grain production poor, but the entire Jinhua Special District lacked a single hydropower station or reservoir. Hence, there was a saying in the Jinhua Special District: "Nine miles of hilly terrain are barren, nine out of ten hilltops are bare, summer floods and autumn droughts destroy seedlings, and half a year's worth of vegetables is bran, and half a year's worth of grain."

This is a local folk song in Jinhua, expressing how poor Jinhua was. However, over a decade, Jinhua officials and people transformed Jinhua into a major grain-producing area in Zhejiang Province, with grain output exceeding 30 billion jin (approximately 40 billion kg) and on the verge of billion jin (approximately billion kg).

The results of afforestation in the Jinhua Special District are also very good. According to Xia Houwen's report, trees can be seen on every hill along the way. Trees on the hills will bring endless wealth to the area.

I didn’t expect that Zhejiang’s style is so low-key. Such amazing results were not boasted about by many Zhejiang newspapers.

If this happened in other provinces, newspapers would be praising Jinhua to death. The central government doesn't have the energy to monitor all local newspapers, but it does keep an eye on the party newspapers directly controlled by the provincial party committees. If a party newspaper like the Zhejiang Daily were touting Jinhua, the central government would be aware of it.

"We should learn from Jinhua's experience. Without state investment, they independently developed water conservancy projects, especially developing so many small hydropower projects in just a few years. This is truly remarkable. Have you visited all these small hydropower projects?"

"I've seen it. The development of small hydropower in Jinhua District is very good."

Xiahou Wendao said, "I've also spoken with Comrade Li Xuezhi. He said that with the increase in grain production and the development of rural industry and commerce in recent years, the Jinhua District government agencies and the people have accumulated a certain amount of wealth. So in 1957, they contacted Shanghai to purchase generators, and Jinhua built two 1100-kilowatt turbines on its own, completing the construction of a medium-sized hydroelectric power plant."

"After the successful construction of this hydroelectric power plant, Jinhua plans to utilize the abundant water resources in the prefecture to further develop the power industry. Furthermore, the Jinhua prefecture has established a factory to manufacture turbines and sell them to other regions."

"good."

Capable cadres always shine. Zhejiang experienced incidents in 1956 and 1957. When Khrushchev's "Secret Report" was causing great tension in the central government, Zhejiang Governor Sha Wenhan proposed "inner-party democracy" and "separation of party and government" at a party meeting.

Normally, this wouldn't be a big deal. However, the relationship between the Party and the government does sometimes affect certain issues. And he's not the only one who has proposed "separation of Party and government" in recent years.

But bringing up these issues during such a tense time made the central government furious, and Sha Wenhan was directly reprimanded by the central government. Giving inappropriate advice at an inappropriate time is the greatest sin.

But it is obvious that Zhejiang cadres are still working diligently and have achieved such good results.

"He's 35 years old, a very young cadre."

Wei Hongjun nodded repeatedly as he looked at the file of Li Xuezhi, secretary of the Jinhua Prefectural Party Committee. He was capable, but impulsive. He planned meticulously and completed Jinhua's transformation step by step.

"He also has a good mass base. When the people of Jinhua talk about Comrade Li Xuezhi, they all give him a thumbs up. They say he is knowledgeable, humble, and works alongside the people."

"Ah."

Wei Hongjun thought for a moment and said, "It's useless to develop only Jinhua. We need to make other places like Jinhua."

Wei Hongjun was attracted to Li Xuezhi. Of course, Xia Houwen stayed to discuss Jinhua's achievements with Wei Hongjun in order to recommend cadres from Jinhua to Wei Hongjun.

Li Xuezhi, 35, is a typical "1937" cadre. He joined the revolution in 14, at the age of 129, while still in middle school. He served in the army as a soldier, squad leader, cultural instructor, and company instructor. At the time, he was a cadre in the Hebei, Shandong, and Henan regions, and studied at the th Division Cadre School. After the outbreak of the Liberation War, he became a cadre in Shandong. Later, he joined the Shandong Cadre Corps and participated in the takeover of Jinhua, becoming a cadre in Jinhua, Zhejiang.

Wei Hongjun was drawn to Li Xuezhi primarily because of his ability to methodically mobilize the masses for large-scale construction. Furthermore, starting from scratch, without any foundation, he was able to develop a large-scale small hydropower project in Jinhua, becoming the largest in the country.

Of course, he not only did a good job in rural agricultural work, but also did a very good job in the development of industry and commerce in Jinhua as a whole.

All sorts of seemingly insignificant items become profitable businesses after being processed in Jinhua. Products manufactured in tiny Jinhua are sold not only throughout Zhejiang but also as far afield as Jiangsu and Shanghai. Unassuming Jinhua is home to numerous factories in various counties and villages with annual profits exceeding tens or even hundreds of thousands of yuan.

This is a cadre who has lived through the revolutionary era and shined brightly in the era of building New China. Such an outstanding cadre should play his role in a more suitable position.

Wei Hongjun currently presides over the Secretariat, and such an outstanding cadre must be discovered. He intends to recommend him to Lin Dafeng, a member of the Finance and Economics Working Committee and Minister of Water Resources. If Li Xuezhi remains in Jinhua, at best, he will only contribute to the development of Jinhua, and his career will be limited to that area. Only by transferring him to the central government can his experience in Jinhua be further disseminated nationwide. Jinhua's experience in developing small hydropower projects, in particular, is now in demand in counties, towns, and rural areas across the country.

Not all counties, towns, and rural areas have the pioneering spirit of Jinhua. They need a template, someone to show them how to proceed. Li Xuezhi is just such a cadre. After Li Xuezhi arrived at the central government, he was able to ensure the widespread development of small hydropower in counties, towns, and rural areas across the country.

He served as a commissioner of the Jinhua Municipal Government for one year and as secretary of the Prefectural Party Committee for seven years. Although he was young, he had sufficient experience.

However, Wei Hongjun still needs to discuss Li Xuezhi's specific arrangements with the Organization Department and the Ministry of Water Resources and Electric Power.

Wei Hongjun changed the subject, saying, "Hold a meeting after we return to discuss the issues raised during this inspection. Summarize them and submit a report to the Secretariat. Your Letters and Calls Bureau will also be an important participant in the inspection system in the future."

"Yes."

Wei Hongjun was processing the inspection team's report, and the Finance and Economics Working Committee was also discussing the inspection report forwarded by the Secretariat.

Many problems appear serious, but they are not that difficult for the central government to handle. Again, the truly powerful departments and cadres are at the top, and they are the only ones with the authority to handle many issues.

But they were not on the front lines, so they were unable to discover these problems immediately. By the time the higher-ups learned about this, the conflicts had already accumulated for a long time.

What is the mass line? For senior leaders, the mass line doesn't mean they must personally listen to what the people say. Senior leaders are so busy with their work, how can they find the time to listen to the people daily? Therefore, for senior leaders, the mass line means that higher-level departments cannot be disconnected from lower-level departments. The voices of frontline cadres must be heard, and the communication channels between superiors and subordinates must be unimpeded. Lower-level cadres must be able to report problems at any time, and higher-level cadres must be able to hear the suggestions of frontline cadres at any time. The inspection system also has this meaning.

After discussion, the Finance and Economics Working Committee concluded that a free market for agricultural and sideline products is intended to strengthen economic ties between urban and rural areas. Rural supply and marketing cooperatives are permitted to sell anything other than items subject to state monopoly, such as grain. They are also permitted to sell rural vegetables and fruits, chicken, duck, fish, meat, handicrafts like woven bags, and products produced by rural factories. Since these products are all considered agricultural and sideline products, there is no need to restrict rural supply and marketing cooperatives to selling only wild vegetables and vegetables.

At the same time, as long as rural supply and marketing cooperatives do not participate in black market transactions, they are allowed to sell the legitimate industrial products they purchase from state-owned supply and marketing cooperatives in rural areas. This does not constitute the crime of speculation.

Regarding the scope of operations for rural supply and marketing cooperatives, the central government has delegated authority to local provinces. However, the Finance and Economics Working Committee recommends that, even if the system cannot be implemented throughout the entire province, it should be implemented within the same city. At the same time, in some special areas, such as borders between counties, cities, and provinces, a certain distance between them can be maintained. In these special areas, the policy can be slightly relaxed.

Of course, this is just a suggestion. This issue is incredibly complex. Local economic development and transportation systems vary, so it's difficult for the central government to impose a one-size-fits-all approach. Therefore, each province needs to make adjustments based on its actual conditions.

Next, let's talk about commercial banks. After the founding of the People's Republic of China, banks across the country were restructured, especially after socialist transformation. Currently, there are only three banks in the country.

One is the People's Bank of China, one is the Bank of China, and one is the China Construction Bank.

The Bank of China is responsible for managing foreign exchange nationwide, while the China Construction Bank manages state funds allocated for major engineering projects. These two banks can only handle matters designated by the state and cannot participate in other banking activities.

So in reality, there is only one bank in China at present, and that is the People's Bank of China.

The People's Bank of China is the central bank, responsible for issuing currency, formulating monetary policy, and participating in the development of national financial policies. It also oversees deposit and loan services, including those for the government, factories, and individuals.

The People's Bank of China is actually a hodgepodge now, overseeing and participating in everything related to China's financial affairs. This is because after the founding of the People's Republic of China, most of the banks in the previously liberated areas and the newly liberated areas were merged into the People's Bank of China.

If the previous development was proceeding step by step, this problem would not be a serious one. However, with the development of the county and township rural economy, the grassroots economy has become increasingly active, and credit cooperatives can no longer provide the financial support needed by the grassroots economy.

Because the majority of credit cooperatives' business isn't financial, they're more policy-oriented institutions, burdened with numerous additional responsibilities. In rural areas, credit cooperatives shoulder many responsibilities that should be handled by the national Civil Affairs Bureau. While they do have financial attributes, they're limited in scope, hindering their ability to keep pace with the rapid development of the grassroots economy.

At the same time, the economic development of Guangdong, Heilongjiang and other places is very rapid due to processing imported materials and exporting goods.

Once the economy becomes active, the demand for supporting financial services will also change. Financial transactions between companies must go through banks. Cash is acceptable for transactions of tens or hundreds of yuan. But for transactions of thousands or tens of thousands of yuan, cash is out of the question; bank transfers are the only option. This is because China currently doesn't even have a 100-yuan note.

However, the current situation is that the People's Bank of China has too many functions and is responsible for everything, including deposits, loans, and transfers. Therefore, as various banking businesses have increased, the People's Bank of China is really overwhelmed.

However, the People's Bank of China was overwhelmed, which directly affected everyone's business. Many businesses were unable to continue due to the inability to transfer funds in a timely manner.

Productivity determines production relations, because the development of productivity requires that production relations must be constantly adjusted to adapt.

That's it now.

The banking system of New China was no longer able to adapt to the rapidly developing economy and meet the requirements of many economies, becoming a hindrance to China's economic development. Therefore, the reality forced the central government to carry out financial reforms.

However, the Finance and Economics Working Committee also needs to consider one point, that is, once the People's Bank of China is split into commercial banks, whether it will affect the country's fund-raising.

After thorough discussion, the Finance and Economics Working Committee concluded that while this would disperse funds, it would not significantly impact the country's overall investment, as more idle funds would flow into banks.

At the same time, the Financial and Economic Working Committee has come to the realization that if the Bank of China doesn't reform, many businesses in Guangdong will likely be conducted directly through Hong Kong banks. Despite the current strict controls, some individuals have found ways to circumvent the restrictions. This, however, is something the central government cannot agree to.

After several days of discussion, the Finance and Economics Working Committee finally decided to split two businesses from the People's Bank of China: one for deposit and loan services in counties, townships, and rural areas, and the other for raising funds for rural economic development. The name of the bank was changed to Agricultural Bank of China.

One is about the deposit and loan business of the industrial and commercial sectors, which is aimed at industrial and commercial enterprises, and the other is about the deposit and loan business of urban citizens. It is named Industrial and Commercial Bank of China and is also affiliated with commercial banks.

After splitting the two commercial banks, the People's Bank of China gradually withdrew from the deposit and lending business.

Of course, the two newly established banks, although not explicitly commercial banks like the Bank of China and China Construction Bank, still retain a strong flavor of the planned economy.

That's the division of territory. It's like if a rural area wants to raise pigs and needs a loan, they can only go to the Agricultural Bank of China because that's what the Agricultural Bank of China does. If you go to the Industrial and Commercial Bank of China, they won't approve it.

For now, the Agricultural Bank of China and the Industrial and Commercial Bank of China will maintain their separate functions for a period of time after their establishment. However, as rural industry and commerce develop, and urban and rural areas become increasingly connected, the two banks' responsibilities will overlap. For example, after rural industry and commerce develop, will the Agricultural Bank or the Industrial and Commercial Bank of China handle the business of powerful rural factories? This will naturally force the banking industry to reform once again.

However, this kind of banking reform is not a simple matter. Splitting the People's Bank of China into two commercial banks will take time, as will determining how much money each bank will take away and how to divide up existing branches.

The support for rural water conservancy development in counties and townships was actually thoroughly addressed with the establishment of the Agricultural Bank of China.

Among current county, township, and rural projects, is there anything more profitable than investing in small hydropower? It can pay back its investment in two to three years at most. With such a promising loan program, the Agricultural Bank will undoubtedly make it a key investment area once it is established.

As for urban construction, the Finance and Economics Working Committee doesn't have many solutions. Even issuing a notice wouldn't be of much use. It can only provide more education for local officials to improve their capabilities in this area.

While the Secretariat and various working committees were dealing with these matters, the Spring Festival of 1959 had passed and the Third Session of the Ninth Central Committee was about to be held.

1060 Out of Nowhere

The Third Session of the Ninth Central Committee had a number of topics to discuss. Therefore, preparatory meetings and various group meetings were held before the formal meeting. This ensured that delegates were fully informed of the agenda and had the opportunity to express their opinions during these preparatory and group meetings.

While participating in these preparatory meetings and group meetings, Wei Hongjun was also closely following the progress of the atomic bomb project.

The Prime Minister has been working in Europe, as he has achieved very fruitful results there. The establishment of diplomatic ties following the Sino-British Joint Declaration broke the deadlock in Europe that had been under pressure from the United States.

European countries began to openly negotiate with China, with many European leaders personally visiting their prime ministers. Italy was the fastest, issuing a joint statement with China within a few days announcing the establishment of diplomatic relations between the two countries.

After the end of World War II, Italy's economy recovered rapidly, and generally speaking, it continued to prosper. However, domestic conflict also intensified. The widening economic gap between the north and south led to significant social unrest. Furthermore, wage disparities in Italian factories exacerbated tensions between northern and southern workers, and between factory owners and their workers. Recently, student and labor movements have resurfaced.

The Italian government is seeking ways to mitigate this conflict. However, the Italian market is limited. Previously, Italy actively promoted cooperation with European countries, hoping to export its products. However, it is clearly unable to compete with rivals like Britain, France, and Germany in Europe, so Italy is also seeking new markets. While economic exchanges between the imperialist and socialist camps are not currently widespread, they are not absent.

Even before China and Britain established diplomatic ties, they were already secretly engaging in economic cooperation in Hong Kong. Many daily necessities currently found in the Commonwealth, British colonies, and even Europe are marketed as British goods and sold by British merchants. However, most are actually manufactured in China, then labeled British in Hong Kong and sold throughout the Commonwealth, British colonies, and Europe.

These products initially consisted of clothes, hats, towels, etc., and later on toys, toiletries, shoes, and now they are even beginning to include some simple light industrial products.

During this process, China earned a minimal processing fee. The rest of the profits went to British shipping and trading companies. Furthermore, with these low-priced goods, British merchants competed with products from other countries, capturing more market share and generating greater profits. Consequently, British merchants became increasingly willing to cooperate with China.

The Sino-French joint statement also includes extensive economic cooperation. The scale of cooperation between China, a poor agricultural nation, and France is estimated to be hundreds of millions of dollars. This is something many European countries would never have dared to contemplate.

How could China, such a poor country, be able to come up with so much money?

Although it is hard to believe, it is actually happening in reality. The Chinese and French governments and capitalists are all happy to complete the cooperation with China, and are counting their money and thinking about how much money they can make from this cooperation.

Several hundred million dollars is no small sum in this day and age. Italy's GDP is only about $350 billion, so a partnership of several hundred million dollars would have a significant impact on the economy.

Italy, envious of Britain and France, is eager to collaborate with China. During negotiations with the Italian Prime Minister, Italy tactfully stated that it possesses everything France possesses, and even what France lacks. Italy's economy, in particular, is led by the government, which doesn't need to rely on others' wishes. As long as the Chinese and Italian governments complete the cooperation, future collaboration will proceed smoothly and won't be interrupted by other domestic issues.

Then there were countries like Belgium and Spain, who also actively participated in the negotiations. Spain, having been wavering between the two sides of World War II and benefiting from both, was relatively isolated in Europe after the war. Without the support of the United States, Britain and France would have dealt with it long ago. Therefore, Spain was particularly reluctant to be left behind.

After all, Europe was once the center of the world, the seat of colonial hegemony, and its global influence is truly significant. When relations between China and Europe thawed, many countries in Southeast Asia and Africa also officially began negotiations with China. Previously, some Southeast Asian countries had relatively good relations with China, but had not established diplomatic relations.

Because they were worried about the attitudes of Europe and the United States. Now that European countries have good relations with China, they no longer have to worry. So suddenly, relations between China and Southeast Asian countries have rapidly improved.

Of course, the reason the Prime Minister remains in Europe is not only to launch a strong diplomatic offensive in Europe and win diplomatic ties with more European countries, but also to expel Taiwan's representatives from Europe. After the establishment of diplomatic relations between China and France, the Taiwanese representatives refused to move to the embassy.

France has repeatedly negotiated with Taiwan, but Taiwan has remained deaf and dumb, seemingly unaware of the establishment of diplomatic ties between China and France. The United States, in turn, has supported Taiwan and pressured France to prevent it from directly expelling the Taiwanese representatives, hoping to create a fait accompli. That would see representatives of the People's Republic of China and Taiwan present in France together, effectively recognizing two Chinas.

Once this situation occurs, the United States can promote this model in European countries. Anyway, the trend of China and Europe establishing diplomatic relations is unstoppable for the United States, so it can only choose another way to strike New China.

The Prime Minister certainly could not allow this to happen, so he met with Charles de Gaulle several times, urging France to resolve the matter as soon as possible.

France was also quite angry. France had assumed that since Taiwan had seen the establishment of diplomatic ties between China and France and had informed them, they would have understood the situation. If they had any shame, they would have packed up and left. However, France had not expected the Taiwanese representatives to be so shameless as to shirk their responsibility.

Finally, the French government directly addressed the Taiwanese representatives. France, having established diplomatic relations with the People's Republic of China, was withdrawing its embassy and demanding that the Taiwanese representatives leave. Chiang Kai-shek was forced to acknowledge the end of diplomatic relations between France and Taiwan.

But Chiang Kai-shek was still unwilling to give in, so although he evacuated most of the diplomatic personnel, he still left a few people to stay in the embassy. These people simply lay down in the embassy, ​​preventing the entry of the New China diplomatic corps.