Chapter 580 The Public Opinion Battlefield (10)
Volume 6: Great Depression Era · Chapter 20
Before holding rallies, American politicians would distribute leaflets and visit homes to give notice. This made it very easy for the Chinese embassy and consulates in the US to grasp the news. With three days left until June 10, Chinese staff in the US, based on this information, visited the venues where American politicians were holding rallies one by one.
The *Smoot-Hawley Tariff Act* was a major event in the eyes of various governments, but not necessarily in the eyes of American voters. Half a year after the outbreak of the economic crisis, unemployed workers and impoverished farmers didn't care at all. Politicians desperately recounted to their voters what specific services they had provided, intending to secure votes and get re-elected.
Only when voters asked loudly, "What should we do if our products can't be sold?" would politicians mention the *Smoot-Hawley Tariff Act*. Chinese diplomatic personnel wanted to see what American politicians would say to the American people, so they listened attentively. The politicians' explanation was simple and lively: "Since foreigners don't buy American products, we won't buy foreign goods either. If Americans use American goods, our products will have a market!"
Even though Chinese diplomatic personnel already had some understanding of the US, hearing such vote-canvassing views that disregarded internal logic, they couldn't help but sigh with emotion, writing an ancient sentence in their report: 'The village worthy is the thief of virtue.'
Soon, the time came to June 10, 1930. In the early morning, newsboys delivered newspapers to thousands of households. Newspapers such as *The Wall Street Journal*, *The New York Times*, and *The Washington Post* were all criticizing and opposing the *Smoot-Hawley Tariff Act*.
'...Some people believe that by driving foreign goods out of the US, American factories will regain orders, and unemployed workers will find jobs. By driving foreign agricultural products out of the US, the prices of American agricultural products will rise, and American farmers, who are being pressed for debt by banks and creditors due to the plummeting prices of agricultural products, can sell the agricultural products in their hands and tide over the immediate difficulties.
'But these are obviously impossible to happen, because the total value of imported goods in 1929 only accounted for 4.2% of the US Gross National Product, while the total value of exported goods only accounted for 5.0%. This proportion has a very small impact on the US economy, and the total volume of industrial and agricultural products exported by the US exceeds the volume imported from abroad. The result of a trade war will only reduce the total demand for goods within the US, making US domestic demand even lower.
'If one wants to gain economic confidence, one must obtain new demand...'
Although knowing that a trade war was inevitable, various US newspapers were still making futile struggles.
At 10 a.m. on June 10, President Hoover in the White House signed his name on the *Smoot-Hawley Tariff Act* document, officially launching the US trade war against the world. According to the provisions of the *Smoot-Hawley Tariff Act*, the adjusted average actual tariff rate of the US reached 57.3%, and duty-free goods accounted for only 8% of all imported goods. In 1900, the average actual tariff rate of the US was only 29.7%.
On the day the US raised tariffs, the vast majority of countries, including China, made the decision to adopt retaliatory tariffs against the US. The countries that didn't take retaliatory tariff measures were basically countries controlled by the US, like Cuba and Panama.
On June 11, the French Élysée Palace announced to the world that additional tariffs would be imposed on Germany, the Netherlands, Belgium, Britain, and Italy. Chinese Premier Wu Youping was in a meeting at this time. After reading the telegram urgently delivered by his secretary, he immediately paused the meeting discussion and circulated the telegram to the comrades.
The ministers attending the meeting were all meticulous people. First, they repeatedly confirmed that China was not among the targets targeted by France, and France had no hint of increasing tariffs on China. This was an economic meeting, and the Foreign Minister did not attend. Everyone looked at Wu Youping, waiting for more accurate news.
Wu Youping had made a decision at this time; he didn't want to inform the comrades of the judgment He Rui had made. Since things had happened just as He Rui expected, it was best to accept the fait accompli. With He Rui present, Wu Youping had confidence in dealing with all problems. As for the current situation, Wu Youping wanted to give an explanation to the comrades.
"Comrades, the current world has split into several camps centered on currency: the Sterling bloc, the Franc bloc, the Dollar bloc, and the East Asian bloc. I believe that for a long time in the future, we will have to face such a situation. After all, the situation happening now is caused by the earlier division of the world by these currency zones. At least East Asia and the Soviet Union have actually completed the construction of an economic cooperation organization and are operating effectively. The future world will not change particularly drastically."
After hearing Wu Youping's description, the Minister of Finance smiled bitterly. "Could the world's re-division be a result predicted by the Chairman long ago? We really rushed to complete the economic cooperation model between East Asia and the Soviet Union with all our strength before the final strategic window closed. This timing is really too coincidental."
Wu Youping had similar thoughts, believing He Rui could fully control the future. Now he was convinced that at least until May 1922, before the Northeast finally had the power to fight Japan, He Rui was constantly adjusting and modifying plans. Thinking of how lucky China was, Wu Youping felt his heart gripped by something, very panicked and uncomfortable.
"Countries that chose to cooperate with us haven't suffered losses!" Minister of Industry Zhuang Jiaxiong also sighed. As Minister of Industry, he naturally had his views, and this line of thought wasn't a whimsical idea. Industrial development requires cooperation. Through various cooperations, China obtained technology, funds, and raw materials, helping Chinese industry reach its current height. In return, the Soviet Union, which cooperated with China earliest, developed quite smoothly. After the civil war, the interior of the Soviet Union was beaten into ruins and also suffered from the blockade of Western countries. But now the Soviet Union was developing rapidly domestically, and the people had sufficient light industrial goods for consumption.
Recently, the Soviet Union also obtained China's synthetic ammonia technology and registered a company in China. A member of the Central Committee of the CPSU, half a rank lower than a Soviet Politburo member, served as the Party Secretary of this Chinese company, trading with countries around the world in the futures trading market in Shanghai. Although European and American countries all knew that shell company belonged to the Soviet Union, they tacitly pretended not to know. The Soviet Union made a lot of money by selling grain at international market prices through this shell company.
Japan and France both gained substantial benefits in cooperation. Even Korea was able to restore its country, and the restoration of Ryukyu was also under negotiation, which should be concluded after He Rui's visit to Japan. The compensation paid to Japan would also be borne by China.
This is what a regional leader should look like, so the comrades didn't know what they could say. If they had to say something, it was heartfelt emotion: how lucky a country is if it possesses a true strategist.
Wu Youping decided to continue the meeting. He said, "Today's meeting is about the setting of national projects..."
At this time, the secretary pushed the door open and entered. "Premier, the Chairman's office called, asking everyone to prepare for a plenary meeting of Central Committee members in Beijing today."
Wu Youping breathed a sigh of relief, feeling relaxed all over. This was the right thing! With such a big event happening, Wu Youping felt uncomfortable all over if He Rui didn't hold a meeting for everyone. Most of the ministers were Central Committee members; only Minister of Culture Zhou Shuren and Minister of Health Pang Congcong were not.
Wu Youping said to the secretary, "Notify other comrades immediately, and also ask the Chairman for a time to come to the meeting."
In the next hour or so, the comrades in the conference room sat or stood, discussing animatedly. Zhuang Jiaxiong and Wu Youping stood by the window. Zhuang Jiaxiong sighed, "Youping, let me tell you something. In '22, I even wrote my suicide note."
Wu Youping smiled. "Do you think I didn't write one?"
Zhuang Jiaxiong and the few comrades nearby didn't find it strange. Japan in 1922, if not at its zenith, was powerful and full of confidence. When He Rui issued the general mobilization order, everyone had considered the possibility of defeat. Looking back now, the few comrades were very proud; at that time, everyone had absolutely no intention of fleeing. All had made up their minds to fight to the death.
Since it was a relaxed state of rest at this time, everyone simply chatted about what happened afterward. He Rui seized the fleeting strategic window afterward. Unifying China without bloodshed, forcing Britain to recognize China in the Sino-British War in Burma. On the second day after signing the three joint communiqués with Britain, he turned to launch a diplomatic war with the US, thereby forcing the US to reach a diplomatic reconciliation with China.
At that time, the comrades in the government all thought China would fully repair relations with the US, but unexpectedly, He Rui was able to sign a comprehensive cooperative relationship with France, obtaining an interest-free loan of 20 billion francs and fully introducing required industrial technologies from France. As for the outbreak of revolution in Japan, it was because Japan was strategically forced into a desperate situation by China led by He Rui that it had to start a revolution from within.
Now, with the outbreak of the economic crisis in the US, East Asia and the Soviet Union formed an economic community, becoming a major force in an increasingly divided world. From a strategic perspective, this was moving from one victory to another greater victory. Every major event that occurred in the past 15 years finally converged to the present, constructing an external environment incomparably favorable to China.
"Youping, what do you think the Chairman will say to us?"
"What do you think, Old Zhuang?"
"Even now, what else can he say? I think it's to develop the economy with all our strength." Zhuang Jiaxiong answered readily.
The surrounding comrades felt it should indeed be this content. Now was the most favorable time for China's economic development. With money, people, and technology, not taking the opportunity to go all out now would be doing a disservice to the currently incomparably superior environment.
Wu Youping also felt it should be like this. The Chinese people had suffered for too long; it was time to live a few good days.
As comrades continued to arrive, the conference room became livelier. When Foreign Minister Li Shiguang arrived, he immediately became the focus. Li Shiguang also immediately informed the comrades of the latest news: "The French Ministry of Foreign Affairs has clearly conveyed the message to us that tariffs on other countries are to protect France's economic security, and France will never make any decision affecting Sino-French trade."
The statement from France constructed a relatively complete status quo of world trade. China was still in a very favorable position, and nothing could affect China's economic development anymore.
At this time, the door opened, and He Rui walked in. Comrades stood up one after another, looking confidently at He Rui who had constructed the current strategic situation. He Rui walked to the main seat, stood there, and asked everyone to sit down quickly. All seats were filled. A smile appeared on He Rui's face. "According to my judgment, no major war will break out in the next 10 years. In the next 7 years, all work must revolve around the economy."
Wu Youping asked immediately, "Then what is the economic target?"
He Rui waved his hand. "I can't give a clear target right now. Leading the State Council is Premier Wu Youping's job. I will ask various ministries and commissions to report their work to me in the future. I hope comrades can get used to me in the next ten years."
Looking at He Rui's gentle expression, the Central Committee members felt a chill on their backs. It seemed almost impossible not to be criticized when reporting work.
He Rui continued, "Future work will revolve around the economy, revolve around improving people's living standards and consumption ability, going all out. This is what I want to say this time."
"Specifically, how should we do it?" Minister of Agriculture Sun Tianan asked.
He Rui sat back in his seat. "Comrade Sun Tianan, please sit next to me."
There was silence in the conference room; everyone dared not even breathe loudly. Many felt lucky in their hearts; if Sun Tianan hadn't asked first, they might have asked. Then it would be their turn to face He Rui now.
Wu Youping gave up his seat to Sun Tianan. He walked to the seat Sun Tianan had just sat in and sat down, hearing He Rui ask, "What does the Ministry of Agriculture think this year's yield per mu is?"
"Currently, in some areas with good water conservancy facilities, like the Huguang and Jiangzhe regions, due to the sufficient supply of synthetic ammonia, as well as phosphate and potassium fertilizers, the rice yield per mu has reached 700 jin. In the Yellow and Huai River regions, where water conservancy is relatively well-built, the wheat yield per mu has reached 400 jin. In other areas, wheat yield per mu is between 200 and 240 jin, and rice yield per mu is 500 jin." Sun Tianan answered fluently.
Central Committee members had some understanding of yield per mu. Previously, wheat yield per mu was only 140 jin, and now it reached 200-240 jin. He Rui asked calmly, "Why is the increase in yield per mu only about 35% from 1925 to now? Converted into annual growth, it's only 7%. A large part of this yield increase is due to production recovery after land distribution. Excluding this part of restorative production increase, the actual annual grain production increase is less than 4%. With so many water conservancy projects, such large investment in improved seeds and pesticides, is there only this much production increase?"
He Rui's tone was very plain, not aggressive, but Minister of Agriculture Sun Tianan and many ministers began to sweat on their foreheads. These questions were harsh in a sense, but as the Minister of Agriculture, he indeed had to explain this.
Sun Tianan pondered for a while before saying, "Chairman, at this stage, rural water conservancy projects in various provinces have just been completed, and the number of technical personnel required for agriculture is insufficient."
"Since you say the number of agricultural technical personnel is insufficient, which kind of technical personnel is insufficient?"
"The number of personnel for agricultural technology R&D is insufficient, and the number of personnel for agricultural technology popularization is also insufficient. To create these agricultural technologies, we are collecting data and forming research teams. We need time. Training agricultural technical personnel also takes time."
"Have you contacted scholars in relevant fields abroad, inviting them to China to conduct research or give lectures? France, Britain, the US, especially Germany, have very many experts in the agricultural field. Have you considered inviting these experts?"
Sun Tianan was stunned. Someone in the Ministry of Agriculture had indeed proposed it, but everyone felt it seemed inappropriate. Now that He Rui asked, Sun Tianan couldn't answer. The Ministry of Agriculture hadn't conducted specialized discussions on this issue, only thinking they should strive to train talents themselves.
He Rui continued to ask, "As for the shortage of agricultural technical personnel, have you approached the Ministry of Education, asking them to set up relevant majors in universities, colleges, and technical institutes? And formulate the goals of relevant majors? Have you recruited relevant personnel from society, signed contracts with them, and improved agricultural demand through these means?"
Sun Tianan was silent for a good while, finally answering in a low voice, "No."
"Why didn't you do this?" He Rui continued to ask.
"...We felt the Ministry of Agriculture could solve these problems."
"Then has the Ministry of Agriculture solved them now?" He Rui pressed relentlessly.
Sun Tianan lowered his head and answered softly, "Not solved."
"Minister Sun, it is now the summer harvest and summer planting period; the Ministry of Agriculture is very busy. Then regarding the questions I just asked, how long do you plan to take to give me an answer? Is two weeks okay?"
"...One month." Sun Tianan dared not state a shorter time at all.
He Rui thought for a moment. "Alright, I'll wait to talk about work with you again in a month."
After speaking, He Rui looked at the secretary, who immediately took out a notebook to record it. Watching this scene, none of the Central Committee members thought of mocking Sun Tianan. Everyone imagined whether they could hold up if they encountered such questioning in their own duties. After some imagination, everyone felt they probably couldn't.
At this time, He Rui had stood up. "In the next 7 years, China's economic work must focus on economic construction. We launched the revolution to let the Chinese people have a better life, not to squeeze the blood and sweat of the people to build a powerful army to realize my ambitions. If comrades have no other questions, the meeting is adjourned for today."
After a good while, no one spoke. He Rui said, "Meeting adjourned!" and walked out of the conference room door. Only after He Rui left did Sun Tianan raise his head. Wu Youping looked at Sun Tianan with some sympathy, seeing his face covered in sweat. Wu Youping looked at other Central Committee members and also felt some sympathy in his heart. Reporting to He Rui wasn't an easy task. But at least China had too many resources to utilize now; if domestic ones were insufficient, they could find foreign ones. Compared to the Siping government in 1915, the current comrades were practically in heaven.