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 The Nanking Government was thus on the point of putting the principal Red army out of action, when events occurred in different parts of China which obliged them to suspend this offensive and to withdraw a large part of their troops. In the North had occurred the rebellion of General Shih Yu-san, supported by a hostile intervention on the part of the Cantonese troops in the province of Hunan; simultaneously with this intervention came the events of September 18th at Mukden. Encouraged by these circumstances, the Reds resumed the offensive, and before long the fruits of the victorious campaign were almost completely lost.

Large parts of the provinces of Fukien and Kiangsi, and parts of Kwangtung, are reliably reported to be completely sovietised. Communist zones of influence are far more extensive. They cover a large part of China south of the Yangtze, and parts of the provinces of Hupeh, Anhwei, and Kiangsu north of that river. Shanghai has been the centre of Communist propaganda. Individual sympathisers with Communism may probably be found in every town in China. So far, two provincial Communist governments only have been organised in Kiangsi and Fukien, but the number of minor Soviets runs into hundreds. The Communist government itself is formed by a committee elected by a congress of local workers and peasants. It is, in reality, controlled by representatives of the Chinese Communist Party, which sends out trained men for that purpose, a large number of whom have been previously trained in the U.S.S.R. Regional Committees, under the control of the Central Committee of the Chinese Communist Party, in their turn control provincial Committees and these, again, district committees, and so on, down to the Communist cells organised in factories, schools, military barracks, etc.

When a district has been occupied by a Red army, efforts are made to sovietise it, if the occupation appears to be of a more or less permanent nature. Any opposition from the population is suppressed by terrorism. A Communist government, as described above, is then established. The complete organisation of such governments comprises: Commissariats for Internal Affairs, for the struggle against the anti-revolutionaries (G.P.U.), for Financial Affairs, for Rural Economy, for Education, for Hygiene, for Post and Telegraph, for Communications; and Committees for Military Affairs and for the control of workmen and peasants. Such elaborate government organisations exist only in completely sovietised districts.

Elsewhere the organisation is much more modest.

The programme of action consists in the cancellation of debts, the distribution amongsamongst [sic] landless proletarians and small farmers of land forcibly seized, either from large private owners or from religious institutions, such as temples, monasteries and churches. Taxation is simplified; the peasants have to contribute a certain part of the produce of their lands. With a view to the improvement of agriculture, steps are taken to develop irrigation, rural credit systems, and co-operatives. Public schools, hospitals and dispensaries may also be established.

Thus the poorest farmers derive considerable benefit from Communism, whereas the rich and middle-class landowners, merchants and local gentry are completely ruined, either by immediate expropriation or by levies and fines, and, in applying its agrarian programme, the Communist Party expects to gain the support of the masses. In this respect, its propaganda and action have met with considerable success, notwithstanding the fact that Communist theory conflicts with the Chinese social system. Existing grievances resulting from oppressive taxation, extortion, usury and pillage by soldiery or bandits were fully exploited. Special slogans were employed for farmers, workmen, soldiers and intellectuals, with variations specially adapted to women.

Communism in China not only means, as in most countries other than the U.S.S.R., either a political doctrine held by certain members of existing parties, or the organisation of a special party to compete for power with