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EXHIBIT NO. 11-Continued

No. 4080

Secondly, there are economic factors such as the drop in farm output in many countries as a result of wars. Our output went up last year but this year's output is even higher than last year's. Visitors to the fair. want to do business with us while we want to trade with them in food. The output of food crops this year has gone up by 5-6 percent while increased production has also been registered in such economic crops as cotton, tobacco, sugar....

Localized wars affect production, thus pushing up a steeply the prices of cereals in many countries this year. Countries such as Japan, Vietnam, Thailand, Burma and Indonesia which used to export food grains before now have to import them. In the course of polarization in Japan farm output is dwindling so she finds it necessary to import wheat. Consequently, farm workers have gone bankrupt, urban populations are steadily on the rise while rural populations are dropping, thus undermining farm production.

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On the other hand, farm production in our country is going up. Previously a representative of poor and lower-middle peasants raised the problem of insufficient supply of chemical fertilizer for agriculture ( someone said something here), but this is mainly a question of coal supply and railway transportation which affects the planned fulfillment of chemical fertilizer production. However, chemical fertilizer is not the primary question since organic fertilizer such as green manure are largely used in farming in our country and this in no way has affected increased farm output.

Therefore, we should distinguish one from another in different situations. For instance, in dealing with Japanese monopoly merchants we should tighten our controls, but in dealing with friendly countries we should relax a little. The reason why Japanese monopoly merchants are not attending the trade fair is because & Chiang Ching-kuo's official visit to Japan and also because of Sato's tour of other countries.

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The revolutionary people of Japan are good in that they are opposed to reactionary forces. That is why we insist on the union of our workers, peasants, revolutionary intellectuals, revolutionary staff and revolutionary students against outside forces, devoting their utmost efforts to doing a good job of this task. Under no circumstances should a civil war be started at this moment.

It is most gratifying that your both sides have signed a 12-point agreement which has been approved by the central authorities and endorsed by the masses of people. This should be printed as soon as possible for widespread distribution but it appears that Huang Yung-sheng has not acted promptly at the Military Control Committee, and as a result this work has been done faster in Kwangsi than in Kwangtung.

There are indeed these three types of people in Canton, those giving support to rural youths, those organizing labor forces and those rallying returned overseas Chinese from X X. If these people are not dominated by the capitalist roeders, things may be tackled successfully; if they are influenced and incited by the capitalist roaders, things will become more complicated. This is because these capitalist roaders will not be reconciled to defeat and our enemies inside and outside China may work in collusion with one another.

Therefore, I suggest issuing a "Message to the People of Canton" by the groups after the signing of the agreement, calling upon the people to rise and maintain order. You people shouæ support one another and divide your work in forming propaganda teams (no fighting between yourselves), besides conducting political propaganda work. You people should support the Military Control Connittee in keeping order and in detaining those who make trouble and sabotage the trade fair. On your return a few days later, you should continue to take up this work. Responsible members of your organizations should prepare a "Message to the People of Canton" (An assurance was then given by the "Tsung" faction).

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Premier Chou: Without trying to repeat what we already have--that is, the 12-point agreement--let's now take up the question of how to conduct the trade fair properly. It has been said that rwal youths, the Workers' Revolutionary Joint Committee, the "August 1" corps and the "Hung-ch'i" group of Chungshan University have held a' meeting in the university in support of rural youths going to X X X for'a "sit-down" session. (Reprezentative of the Workers' Revolutionary Joint Committee stated that nothing of this sort had ever occurred and assured Premier Chou that they would continue to conduct investigations and find out facts).

Representatives of the Workers Revolutionary Joint Committee pledged to Premier Chou their determination to hold the trade fair properly.

When "Ch'un lei" (to ) reprezentatives nertioned that the railway administration had been attacked by people outside the railway bureau, Premier Chou said: Let the Military Control Committee handle this matter. (The "Tsung" faction continued to give assurances).

A representative of the Canton Railway General Headquarters pledged to Premier Chou his determination to carry commodities to the trade fair with combating selfishness and repudiating revisionism as the guide and taking firm hold of the revolution and promoting production as a spur.

Premier Chou: You people (of the Canton Railway General Headquarters) should do more work and devote yourselves to taking firm hold of the revolution and stimulating production under the leadership of the Military Control Committee.

A representative of "Hung Ssu" ( 41 ) pledged to Premier Chou to tackle propaganda work well, give vigorous publicity to the immense achievements gained in the great proletarian cultural revolution, and propagate anti-imperialist and anti-sevisionist campaigns during the period when the trade fair was to be held.

Premier Chou: Since Canton is close to both Hong Kong and Macau, it is charged with the important task of carrying on anti-imperialist and antirevisionist campaigns. I want to caution you people who have put out tabloids against revealing inaccurate information about our internal condition and leaking out news intended for internal consumption. When enemy secret agents posing as ordinary people come in, they buy these tabloids and take the out, thus creating bad impressions in the outside world. Earlier the number of these tabloids was reduced somewhat, but now it has again gone up.

Where do you get the newsprint for the tabloids? You people really know how to get things done! Why do you use so much paper? In the practice of economy while making revolution, you people haven't done enough. Some kind of control should be exercised now in respect to the consumption of paper.

Haven't you discussed the subject of the 9th National Party Congress set for next year? (The audience: No,we baven't) You people should discuss the subject well.

The Pearl River "Hung Ssu" (7*22*211) pledged to Premier chou to

combine the two factions in holding the trade fair well, adding that the supply of gasoline still remained unresolved. The "Hung-chi" groups of government institutions and the Public Security Bureau pledged to Premier Chou to do a good job of public security work in respect to l'inance, trade and communications at the commodity fair. After that, both the "Hung Ssu" and the "125 General Command" gave assurances to Premier Chou.

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Premier Chou: Another problem concerns the more than 300 people from other provinces who are now accommodated in hostels for foreign visitors to the crade fair. This will be tackled by the Military Control Committee: These comprise students, members of "Hsiang-chiang Feng-lei" (310ML), "Wuhan San-kang ( Fix a Filo) and the "February 7" commune of Kenan (51 ta #L),

This will be your job after reaching agreement on ways of tackling it. Those who are short of money to buy their return passage should be given assistance as far as conditions permit. Can they afford to pay hotel bills? Charge the accommodation expenses to Huang Yung-sheng's account and ask Chang P'ing-hua to pay for the hotel expenses of those from Hunan. And those fra Canton should be the charge of Chao Tzu-yang. Since they have stepped aside, isn't this an admission of recognizing them as our comrades? We should criticize the practice of being free-handed at the expense of the State.

After hearing a report on the progress of the grand alliance of the Red Guard Congress by a representative of "Hsin I Ssu" (), Premier Chou said: I know you people will argue over the number of people in the alliance but it doesn't matter if young people are not ready to form an alliance. First of all, make a success of the trade fair ("Hung I Ssu" mentioned difficulties). I would advise Comrade I XX ("Hung I Sau") to try to form an alliance of the three factions of Canton's workers instead of fighting for individuals (committee meinbers).

Let me cite one more instance concerning stage performances to be given at the trade fair. Since the performing troupe was formed a month ago, why is it that none of the Tung Feng" faction heads the office dealing with dramatic performances? why not include one of them?

"wen-i Hung-ch'i" (ĶIL TEL.): At the time we didn't form an alliance with them. Besides, few of them engage in stage art.

Premier Chou: Stage shows to be presented at the trade fair will mainly be given by outsige troupes. The repertoire of stage shows should all be examined by the Central Cultural Revolution Group because of their considerable influence on other countries. (The "Tsung" faction: We have formed a Cultural Revolution Committee to deal with the very complicated situation of literature and art). Comrade Chiang Ch'ing spoke to the capital's literary and art circles on the 12th. You people should study her recorded speech well. Forn alliances when the moment is ripe and don't hurry if it is premature to do so. Sweeping changes should be introduced in literary and art circles ("San Ssu" proposed athletic exhibitions at the trade fair). Sports programs have not even been started! Well, don't hurry; we shall have athletic programs next year. ("Wen-i Hung-ch'i" reported on the progress of forming an alliance.) Shouldn't we give them two deputy section chiefs?

There is another problem in connection with the question of holding the trade fair--the need to remove all the vantage points. It isn't good for young intellectuals from mountains and villages to keep such points and for the "Doctrine Guards" to set up several of them for themselves. The preparatory group for forming a revolutionary grand alliance 02 the working class should take the lead in removing these vantage points. It is just fine for the worker's Revolutionary Joint Committee, the workers Revolutionary Committee (Kung-ko-hui) and the "Kung-chiao Hung-ch'i" ( I II) to take the lead in doing so and for the representatives of poor and lower-middle peasants to call back by telephone day before yesterday requesting the witholding of firearms.

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Since both sides maintain vantage points, the liaison officer will tell you people (both 'Hung S8u* and the Workers Revolutionary Joint Committee pledged to call back by telephone ordering the evacuation of the vantage points) to deal with the matter of vantage points according to the 12-point agreement signed by both sides. (When the representatives of both sides discussed the site for an office, Comrade Po-ta spoke to them and stressed the need to retrench office staff and to practice economy in making revolution.)

How many people are on the staff of the Workers Revolutionary Committee? (The Workers Revolutionary Committee : We don't know.) Lenin said that anarchism was a penalty for opportunism. The Chairman has said: "Anarchism is a penalty for opportunism and bureaucratism. The working staff of both government institutions and trass organizations should be retrenched. Today you people behave like minor leaders. If you people continue to do so, you will later be divorced from the masses.

(The "Tsung" faction raised the question of the "Municipal No. 1 Palace.") Way is it you people have so many general headquarters? (The "Tsung" faction: The Military Control Committee asked us to go into them.) I shall not discuss further the question of vantage points which is clearly stated in the 12-point agreement signed by your both sides.

Chairman Mao and Vice Chairman lan have approved the setting up of a prepazatory group for the Kwangtung Provincial Revolutionary Committee. The representatives of both factions should join the preparatory group. Once an alliance of workers is Pored, (the Workers Revolutionary Joint Committee, the Workers Revolutionary Committee and the "Kung-chiao Hung-ch'1") may be represented in the preparatory group of the Kwangtung Provincial Revolutionary Committee in the proportion of 2:2:1. Similarly, other organizations may be represented in the preparatory group after an alliance is formed. Where Do alliance is formed, delegates may be sent to a consultative conference which may be abolished once an alliance is forged. But don't do so reluctantly. The masses will decide on the matter a dissolving organizations and it is also up to the masses whether or not the bad people of various organizations should be grabbed. (Both sides then reported on the progress cf forming alliances in the building construction systems.)

As I have just said, forming alliances does not mean dissolution of organizations or pulling down the benners of these organizations. No matter how many people are involved (both sides thea reported on the progress of organizing working staff of the building construction systems), staff should be retrenched and kept at a minimum. The Central Cultural Revolution Group is manned by a few people and so is the Standing Committee Cof the Political Bureau); both have to direct work for the whole country. The direction of the War of Resistance against Japan and the War of Liberation in previous years was also entrusted to several members of the Standing Committee Cof the Political Bureau).

Another question conceras the "August 1 Combat Corps" (io hori gumi. The Military Control Canmittee has held a general meeting for you people to redress wrongs and the organization mentioned above has accomplished its historical mission! The major problem which confronts us is whether you people continue to form alliances according to systems at the lower levels in the game of the "August 1 Combat Corps. Have you people joined the Workers' Revolutionary Joint Committee? (Former "August 2" representatives of the Workers' Revolutionary Joint Committee: Yes, we have joineå the Committee.) (The "Tsung" faction reported on the question of wearing of blue jeans.)

Speaking of political repercussions, it is possible the "Doctrine Guards" may have played an important part. Generally speaking, since the 12-point agreement is your common program, let's see which side will carry it out more successfully.

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(when the "Tsung" Pact:0! daciared they had ch: "Ch'i" faction constantly in nind when s.igoing the agreementi, smier Chou said: Wasn't it quite in order for the "Ch'i' fection co sien ihe agreement before the "heng Feng" faction (the "Tsung" faccion)?

(The "Tsung" faction: We suggest grouping the workers ca one side and the peasants, cadres and students on the other.)

Premier Chou: This is quite right, Do you people agree to letting the workers sign as a group, thus giving the "ch'i" faction the precedence? (The "Tsung" faction replied reluctantly: Yes, we agree.)

Premier Chou: Another questicn concerns the 55th Army which is carrying out military control at Chanchiang. As I mentioned before, the 47th Army was transferred to Hunan to support the left while an artillery regiment of the 55th Army was moved to the Canton Railway Station to guard the rail line. It is wrong for some people to identify the 55th Army as the troops of X X X. His performance is quite good! The army unit has been remolded to become Chairman Mao's army. Besides, people like Fu X X have all defected to our side!

After the representatives of both factions ia Chanchiang reported to Premier Chou the conditioas in that city, the Premier said: Since both sides have reached agreement, which ever side implements the agreement well is revolutionary.

If the agreement is not implemented properly, the revolučionaries may be forsaken.

Finally, the supervisory group of the Ministry of Railways reported to Premier Chou the railway situation, adding that because railway groups were influenced by local delegations staying at Hsiyuan Hostel they would form alliances only after the central authorities made known their stand.

Premier Chou: This matter will be tackled by the Military Control Committee on behalf of the Ministry of Railways and should not be mixed up with local problems. This issue is closed after it is settled in both Kwangtung and Kwangsi.

Compiled and rearranged by the Hung-ch'i

Delegation of Canton to Peking

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