Chapter 800: From Colony to Federation? (I)
Volume 7: World War II · Chapter 101
Watching the little toddler sniffling and complaining to her father, Premier Wu Youping felt his mood inexplicably lighten, infected by the scene. However, He Rui's child was still small. Wu Youping thought of his own child, who had entered a rebellious phase, and felt a wave of helplessness.
He Rui's daughter, He Neyan, was full of grievances. She pulled up her sleeve to show her father the big bump on her arm where a Japanese striped mosquito had bitten her. The toddler's skin was delicate, and several bumps on her arm hadn't completely faded yet. Even Wu Youping couldn't help but sigh at the sight.
He Rui picked up his daughter and went to the cabinet. He took out a small bottle of green ointment, carried her back, and applied it for her. Seeing He Neyan obediently letting her father apply the medicine and then clinging to his side, Wu Youping said, "I can come back later."
"No need, let's talk directly," He Rui said, letting his daughter sit beside him. He Neyan actually just missed her father. Leaning against him, she stopped fussing. Her father handed her a colorful picture book, and she picked it up, leaning against He Rui to read.
He Rui then said, "Regarding the urbanization rate and the plan for increased expenditure on strengthening social management, do you think it's too conservative?"
Wu Youping felt a surge of joy. Just as He Rui said, the war had generated enormous demand. In addition to domestic demand, it had added an international market calculated in the hundreds of millions. Even if the demand level of these foreign markets was low, the accumulated total was extremely staggering. Enterprises in China that had been investing in production before the war were now working overtime, yet they still couldn't complete the endless stream of orders.
For domestic military orders, not only was the profit margin controlled, but there was also a profit cap mechanism. Once those enterprises reached a specified profit amount, any excess profit had to be turned over to the national treasury. However, although there were price controls on exports to Southeast Asia and South Asia, there was no profit cap mechanism. Therefore, a massive amount of social investment was building more factories to meet foreign orders.
During the years of poor economy before the war, the country had invested a large amount of money in infrastructure, industrial upgrading, and public education. These policies, which were considered at the time to relieve employment pressure, had now become assistants. Tens of millions of people entered industrial enterprises for employment, fully meeting the needs of the enterprises.
For the government, this was a sweet agony. The capacity for urban management was undergoing an unprecedented test. The only real solution was the one hinted at in He Rui's words: "increasing the establishment."
Wu Youping didn't dare to be too optimistic. Increasing the establishment of government employees was very troublesome and the cost was particularly high. He probed, "This is a large sum of money, and the requirements for personnel quality are also very high. Is the Chairman not planning to let the first batch of retired personnel return to active duty?"
He Rui had long considered this matter and answered decisively, "At this stage, it seems the pressure of the war is not that great. I think we can give it a try."
Wu Youping had discussed arrangements in this regard in detail many times during State Council meetings. Since He Rui had made the decision, as Premier, Wu Youping certainly would not refuse. "If the Chairman gives the order, this can be executed immediately."
"I think regarding the plan for the agricultural population returning to their hometowns after leaving, it's too optimistic. Even if it doesn't go as far as 'Seven Captures of Meng Huo,' there will be several oscillations of fleeing the cities and fleeing the countryside..."
Just as He Rui said this, He Neyan looked up and asked, "Dad, is it 'Seven Captures and Seven Releases of Meng Huo'? I want to hear it."
"I'll tell you tonight," He Rui said, gently stroking his daughter's back a few times, making the girl, who was hunching over her book, straighten her soft waist.
Seeing hope for a story, He Neyan made a new request, "Dad, I want to eat biscuits."
He Rui picked up his daughter and walked to the cabinet. He opened the door and let her take the biscuit tin she liked at the moment, issuing an order at the same time, "You must rinse your mouth after eating biscuits." As he spoke, he also took out the mouthwash placed next to the biscuit tin. The mouthwash was a dilute solution prepared from table salt and baking soda (sodium bicarbonate). The ingredients were non-toxic and could well neutralize the acid in the oral cavity. Even if accidentally swallowed, it would be no problem at all. He Rui had prepared quite a bit and placed it where it could be accessed at any time.
Although He Neyan didn't really like the taste, she didn't hate it either, so she obediently agreed, "Okay."
Sitting on the sofa, Wu Youping's thoughts were all on the issue of farmers returning to their hometowns. Population mobility placed high demands on management. If possible, the government hoped that the masses would be like trees; even if they occasionally moved, it was best if they moved under government arrangement, and remained firmly rooted in place at other times.
As the leader of the State Council, Wu Youping certainly knew that this requirement was unrealistic. However, departmental interests made Wu Youping first consider how to avoid trouble rather than how to solve problems. Thinking of tens of millions or even hundreds of millions of people moving back and forth across various regions, Wu Youping's mood immediately became heavy, running somewhat contrary to the mood when he heard He Rui propose increasing government employees and expenditure just a moment ago.
He Rui had already carried his daughter back to the sofa. After placing the mouthwash on the table and helping He Neyan open the biscuit tin, He Rui looked at Premier Wu Youping. Wu Youping didn't hide it either. "This will increase the volume of administrative management work too much. It might also affect the implementation of the new land contracting going on in the countryside. Once the number of people returning to their hometowns exceeds the limit, land contracting will be greatly affected. Chairman, the State Council has very high expectations for the new land contracting. The countryside has gone from many people with little land and small-scale operations to finally having the opportunity for large-scale land management. Should we consider the comrades' enthusiasm more?"
"The reason so many rural people come to the cities is largely because they have a way out. Once they think their retreat is blocked, will everyone still have such great enthusiasm? We must let the masses return to their original lives so they can make a comparison. Aren't those models produced by the State Council a very good comparison?"
Hearing He Rui say this, a simple model immediately came to Wu Youping's mind. A rural laborer enters the city to work and live, experiences the convenient lifestyle of the city, likes certain aspects of it, and will imitate them after returning to the countryside. These attempts might succeed or fail. Even if the imitation is rough and simple, it is already bringing the industrialized city life back to the countryside. Naturally, it will have a certain impact on the countryside and promote the development of China's urbanization.
But from a manager's perspective, any uncontrollable change is considered "a danger caused by instability." Even if these changes are likely beneficial, there is no way to change the management layer's vigilance against "uncontrollability."
Just then, Wu Youping heard He Rui say, "Youping, we are living in such an era of drastic change. Twenty years ago, we were still under immense pressure for the execution of the First Monetary Revolution. Every day, even if we weren't like birds startled by the mere twang of a bowstring, any slight change would make our nerves highly tense. Twenty years later, we have already begun to enter the stage of the Second Monetary Revolution, and we have to start worrying about the huge income gap that will follow. Based on the experience of the past twenty years, let's just go for it. As long as the economy continues to develop, the problems arising during development will be solved by development. Even if we become notorious in the process, at least the issues get resolved. Haha!"
Wu Youping heard the helplessness and emotion in He Rui's laughter, and felt the same emotion in his heart. He Rui's achievements were too great, and his prestige was extremely high. In Chinese culture, the masses believed that it was impossible for Chairman He Rui to make mistakes. But when problems appeared in economic development that seemed completely unsolvable at the time, the masses thought there was a problem with the officials, who failed to effectively implement Chairman He Rui's "sage policies (decrees)." As the Premier of the State Council, Wu Youping was responsible for managing government departments, so when various departments were scolded, Wu Youping was scolded along with them. Especially during the period before the war when the economy was not good, Wu Youping's reputation had fallen to the level of a treacherous official.
Since He Rui was a recognized heroic leader, no one used Cao Cao to describe Wu Youping. Those who had studied history but hadn't studied it clearly used the nickname "Wu Song" to allude to Wu Youping. This "Song" referred to "Yan Song" of the Ming Dynasty. When he first heard the nickname "Wu Song," Wu Youping felt very unhappy. If he was Yan Song, wouldn't that mean He Rui was the Jiajing Emperor? But Wu Youping didn't care about this at all, so he didn't think deeply about it.
The year before last, during the Central Committee's vacation, Wu Youping and Li Runshi happened to be assigned to adjacent residences. When the two families ate together, Wu Youping and Li Runshi chatted about the cutting-edge economic field of capitalist pricing power versus socialist pricing power. As they sighed, they ended up arguing due to their opposing viewpoints. Wu Youping was in a bad mood, and somehow brought up his nickname "Wu Song."
Li Runshi's wife, Ms. Tao, was a gentle person. Seeing that both of them were getting emotional, she said, "Premier Wu, although the people who gave you this nickname didn't have good intentions, at least they had to admit your loyalty to the Chairman."
When Wu Youping first heard this explanation, he was very unhappy in his heart, but suddenly he understood the matter. At that time, Wu Youping felt both emotional and aggrieved, and his eyes actually became moist.
Hearing He Rui speak of being "notorious" now, although Wu Youping was emotional, he no longer held any resentment. Even if he had suffered many grievances and misunderstandings because of He Rui, Wu Youping did not regret it. Because He Rui's actions were never for He Rui himself; that was why Wu Youping had chosen to become He Rui's comrade-in-arms back then. Twenty-seven years had passed, and Wu Youping had never regretted that choice.
After a brief moment of self-pity in his heart, Wu Youping quickly adjusted his mood and followed He Rui's train of thought, saying, "The impact of the Second Monetary Revolution will be greater than imagined. I only understood this after experiencing it personally. Chairman, in the future shocks, how are we to protect the core productive forces while facing the polarization of wealth?"
"Youping, don't be impulsive. Think again about what the Second Monetary Revolution is," He Rui advised in a gentle tone.
Wu Youping could only think for a moment following He Rui's reminder. From the perspective of the domestic populace, the First Monetary Revolution was the settlement of all social behaviors using currency. The Second Monetary Revolution was currency possessing the attributes of assets.
But from the perspective of the entire country, the First Monetary Revolution was the paper currency issued by the government using national credit entering every aspect of domestic society. The Second Monetary Revolution was the paper currency issued by the domestic government using its national credit entering the economic operation of countries around the world.
Taking China as an example, before He Rui rose to power, because China lacked government credit, gold and silver were still the mainstream currencies. After He Rui's government became the central government, the issued paper currency, the "China Yuan" (CN Yuan), became the only legal tender, and precious metals like gold and silver withdrew from the currency field, becoming valuable commodities. At that time, the CN Yuan had no international credit. He Rui chose to cooperate with France, pegging the CN Yuan to the French Franc, gaining recognition in international trade. Only then did the CN Yuan begin to have a place internationally, while France gained huge benefits through the pegging of the Franc and the CN Yuan, allowing France to have a golden decade of good days before 1940.
After China launched the World Liberation War, the CN Yuan, as the paper currency issued by the Chinese government, began to circulate in the vast former colonies. Taking the four southern countries that became independent earlier as an example, the creditworthiness of the Renminbi (CN Yuan) in these countries far exceeded that of the four countries' own currencies. These countries not only needed large amounts of CN Yuan in trade, but their domestic trade also required large amounts of CN Yuan.
Originally, when China over-issued currency, the Ministry of Finance, the Central Bank, and the departments executing investments had to hold numerous meetings to discuss it. From issuance to execution to currency recovery, countless deductions were performed. Many people bet their political lives to push for investment.
When the CN Yuan became a world currency, the pressure to issue currency within China decreased sharply. A large amount of over-issued currency did not circulate within China but served as a very valuable currency, becoming the actual anchor for the domestic currencies of the four southern countries.
Many projects were planned to be profitable in three years, but the actual time of profitability was hard to estimate accurately. The four southern countries, besides providing China with massive orders and meeting China's domestic employment needs, also turned currency that would have had to be withdrawn in three years into currency that didn't need to be withdrawn for five or even ten years. Compared to the bit of money earned, the precious time won was undoubtedly more valuable to China.
For example, China's domestic rail transit developed extremely fast with huge capacity. In order to popularize rail transit as soon as possible, He Rui's government could only lower ticket prices so that the people could afford tickets. Low ticket prices made the recovery cycle for the super-massive investment invested in the early stage very long. Relying solely on revenue from railway operations was even a bit of a loss, and the state had to subsidize the railway every year.
It wasn't that the state couldn't afford this bit of subsidy money. The problem the railway system encountered was that if the state didn't continue to invest, there would be no money for R&D to continue upgrading the railway system. And if the state invested again, it would require funds far exceeding the first phase of investment.
Now China was lending to the four southern countries, Thailand, and Malaya, to build the Indochina Peninsula Grand Railway. At this stage, it looked like Chinese investment; China provided a large amount of CN Yuan to the countries of the Indochina Peninsula. In reality, the CN Yuan was banknotes printed by the Chinese government backed by credit. Since China's financial industry had entered the Indochina Peninsula countries, they didn't even need to print money; they just had to record some numbers in the ledgers.
China's national credit was directly realized into railway assets actually existing on the Indochina Peninsula. The Chinese railway system also obtained a large amount of credit currency, CN Yuan, by virtue of the use value of these assets, and then used these CN Yuan to continue investing in railway technology R&D. Following the complete replacement of steam engines with internal combustion engines domestically, current electric locomotives had also been completed and began to replace internal combustion engines.
Since the basic electricity level on the Indochina Peninsula was very low, and they would not be able to build a power system comparable to China's in the foreseeable twenty years, China's internal combustion locomotives were sold to the Indochina Peninsula countries. Both sides also had an intention that after the power systems of the Indochina Peninsula countries developed, China would engage in new cooperation on electric locomotives with them.
The cooperation between China and the Indochina Peninsula countries was very sincere and did not adopt colonialism or an economic colonial model. China did not conceal anything in its cooperation with the Indochina Peninsula countries and also helped provide various training to help them understand what a modern country is. Coupled with the concerns about "Chinese Imperialism" from the NGOs organized by left-wing revolutionaries in the World People's Liberation Army, the cooperation became even more transparent.
The Indochina Peninsula countries also proposed the idea of going directly to electric locomotives. China led the representatives of these countries, as well as relevant members of the World People's Liberation Army, to China to study and visit electric locomotive operations. Seeing and understanding the astronomical figures of funds required to build an electric locomotive system, the vast majority of representatives from the Indochina Peninsula and the World People's Liberation Army willingly signed agreements to use internal combustion locomotives.
A very small number of visionaries proposed the view that China should help the Indochina Peninsula countries build power systems free of charge. The Chinese side did not get angry, but just glossed over it lightly. After all, visionaries will never disappear, but visionaries are always a small group of people being used. As long as the officials and technical experts of the Indochina Peninsula trained by China have a pragmatic attitude of self-reliance, the visionaries cannot stir up any waves.
Up to now, China's plan to train various reliable experts for the Indochina Peninsula has been advancing very steadily and effectively. Those experts who accepted China's training learned real skills. They did not rely on fantasy to build their motherland.
Thinking of this, Wu Youping felt his train of thought had diverged somewhat, but he was sure it hadn't diverged too far. Wu Youping then decisively adjusted his question according to his own thoughts, "Chairman, how do we hope to promote the development of the people through the Second Monetary Revolution?"
He Rui liked this question very much. This question looked simple, but it touched upon the essential issue. The question just now about what constitutes core productive forces was already very high-level, but core productive forces and the polarization of wealth are inevitable results of normal economic operation, and it is not easy to define them separately.
First taking the biscuit tin that was almost emptied by his daughter and putting the lid on, He Rui unscrewed the bottle of mouthwash and handed it to his daughter. He Neyan knew that if she refused, she wouldn't be able to sit by her old dad's side and cling to him. After weighing it for a moment, she honestly rinsed her mouth.
After dealing with the toddler's affairs, He Rui tightened the bottle cap and said to Wu Youping at the same time, "Youping. The people must pass this screening to enter the next round of social games, and through the games obtain the right to the next distribution of benefits. How to let as many people as possible pass the screening is our biggest problem."