Chapter 9, Development Strategies

After listening to his speech, Sun Baili felt enlightened and remarked, "Mr. Du truly lives up to his reputation as an economist. After your analysis, the situation is far less severe than I had imagined"

Sun Baili continued to ask: "Our financial situation is extremely dire; we are struggling to maintain the operations of the military and the government. Where would we find the funds to invest in factories? Moreover, what kind of factories can guarantee a profit without loss?"

Sun Baili curiously asked, "What is the system of civil militias? Mr. Lu, could you please explain it to me first?"

Having resolved the most pressing issues, Sun Baili felt very pleased. He quickly took the opportunity to finalize the specific steps and implementation methods for the new policy and the establishment of schools with Du Zhounan and others. The group worked diligently until late at night before they had a rough outline. Sun Baili promptly ordered someone to prepare a late-night meal, and after they finished eating, he arranged for the guards to escort everyone back to their lodgings

After finishing, Sun Baili handed the booklet to the person next to him and said, "This planning document is excellent; even someone like me, who knows nothing about economics, can understand it. This shows that Mr. Du has put a lot of effort into it! Everyone present is about to take office as local officials, and the implementation of the plan will certainly rely on all of you, so I urge everyone to take a look!"

Sun Baili sincerely said: "Here, only you have a deep understanding of the militia system; this position of principal is meant for you! Please do not decline any further!"

Du Zhounan confidently stated: "Commissioner Sun only knows one side, but not the other! Setting aside the land tax, just in terms of revenue, there is already much that can be accomplished!" He then elaborated: "The government's tax revenue generally comes from several main sources: customs duties, salt tax, and the factory tax on industrial products. Fujian Province already possesses abundant export commodities, with certain production levels of tea, silk, porcelain, and tung oil. As long as we vigorously reform the customs, build docks, and combat smuggling, we can increase customs revenue by several million each year. Regarding the salt tax, currently, some private investments are engaged in salt production along the coast, but the scale is very small and most sales are conducted through smuggling, resulting in minimal tax collection. If the government takes the lead in establishing several larger salt fields, the salt produced could be armed and transported by the military, and as long as it reaches Hunan, profits could exceed double. Establishing salt fields requires minimal equipment; it is sufficient to select suitable locations and have enough manpower. Once this trade route is opened, a large volume of export goods from Hunan and even Guizhou will surely flow continuously from several coastal ports to overseas markets. This would not only significantly increase the salt tax but also greatly boost customs duties. Lastly, concerning product tax, due to a weak foundation and the long construction cycle of factories, short-term effects may not be very apparent. However, we can prioritize the establishment of some factories that yield quicker results, such as sugar factories and match factories, to stimulate wealthy individuals to invest through a demonstration effect. With strong government support, we are sure to see results.

Sun Baili scrutinized the young man, who exuded an air of scholarly refinement, and retorted dismissively, "But how do we persuade these landlords to open factories?"

Du Zhounan explained: "After returning to my country, I served as the county magistrate in Chao Yang, Guangdong for one term. The situation there is very similar to here, so upon receiving the invitation letter from Mr. Cai Tingkai, I inquired about some conditions in Fujian and drafted a general plan. Of course, there are certainly many areas that are not perfect, and I welcome your guidance!"

Sun Baili replied: "Of course, it is taxes and land revenue! However, Fujian has many mountains and little arable land, so we cannot rely on land revenue, and there is basically no industry, thus taxes cannot be collected either"

Lu Hongtu repeatedly waved his hands and said, "I am lacking in talent and learning, and I do not dare to take on such a heavy responsibility"

On the second day, Sun Baili began to establish an independent brigade based on the 1st Battalion. The selection of new recruits proceeded smoothly; the soldiers from the supplementary brigade, upon hearing that the mission of the independent brigade was to defend Zhangzhou and that they would not be sent to the front lines, eagerly signed up, with numbers far exceeding the requirements. At Sun Baili's suggestion, the conscription office prioritized the selection of educated soldiers, while also recruiting several hundred local youths from Zhangzhou and nearby counties. As a result, the independent brigade distinguished itself from the other nineteen army units, which were almost entirely composed of soldiers from Guangdong, becoming a brand new force.

Du Zhounan shook his head apologetically and said: "When I was promoting the economic development plan in Chaozhou, Guangdong had already achieved significant progress under the governance of Chen Jitang, gaining the support of the people. Therefore, I did not encounter much resistance, and I do not have any good suggestions in this regard."

Sun Baili spent over ten minutes briefly reviewing a booklet titled "Development Plan for the Economic and Social Development of Southern Fujian." The overall plan is largely consistent with what Du Zhounan had previously mentioned, but it is more detailed, providing comprehensive explanations for each policy. This document is nearly 10,000 words long, with content that is both substantial and incisive, showcasing the author's profound economic knowledge and rich social practice.

After the plan was circulated, everyone began to express their opinions, most of which were highly complimentary. However, a young man named Lu Hongtu, who came from Guangxi and was involved in the education sector, raised an objection. He said, "I also think Mr. Du's planning document is excellent and suitable for the local conditions in Fujian! However, many aspects touch upon the interests of local landlords and powerful figures, and many officials within the government have intricate connections with these individuals. The implementation of the plan will certainly be significantly compromised! Although we can control some key departments, how can we successfully promote the plan without the support of local people?"

Du Zhounan said with a smile: "Although Fujian has many mountains and little land, it is rich in resources and adjacent to the sea, possessing so many good ports. It is not inherently a particularly barren place; it is just that in recent years, the frequent wars have caused the people to be displaced, and a large amount of land has become barren, leading to economic decline. Now that the 19th Route Army has taken over here, there is hope for the end of the turmoil. Therefore, as long as the methods are appropriate, after a period of recuperation, the fiscal revenue will certainly meet its own needs!"

Half a month later, the recruitment of new soldiers was fully completed, and other units also began to deploy to various locations in Fujian. Only the Independent Brigade and personnel from the military supply department remained in Zhangzhou City to guard the warehouses. After distributing the weapons and equipment received from the supply department, the training work of the Independent Brigade immediately commenced in full scale

Du Zhounan retorted without courtesy, "Does Commissioner Sun know what the main source of finance is?"

Sun Baili reorganized the army according to the standards of the German Army Independent Brigade, with the following specific structure: First, the brigade's direct units, which include an artillery battalion consisting of three howitzer companies equipped with twelve 75mm mountain guns, an anti-tank gun company equipped with four 37mm anti-tank guns, an anti-aircraft gun company equipped with four 20mm anti-aircraft guns, a communications company (comprising two wired communication platoons and one wireless communication platoon), a special service company, an engineering company, a guard company, and a medical team. Second, the brigade is subordinate to three infantry regiments, each regiment's direct units include a mortar company equipped with six 83mm mortars, a light artillery company equipped with six 20mm machine guns, a communications company, a special service company, and three subordinate infantry battalions. Each battalion has a machine gun company equipped with six heavy machine guns and two 82mm mortars, along with three infantry companies. Each company has a light machine gun platoon equipped with six light machine guns and three infantry squads. Each squad consists of three infantry teams, with each team having two light machine guns and ten rifles. Aside from the artillery battalion, which still lacks some large-caliber artillery and anti-aircraft guns, all other equipment is in place, with the total strength of the brigade reaching 8,000 personnel, approaching the size of a division, and in terms of firepower, even surpassing the three main divisions of the 19th Route Army. Concurrently, Zhong Wu was appointed as the commander of the first regiment, Li Congwen as the commander of the second regiment, Chen Zijian as the commander of the third regiment, and Xie Changfeng as the commander of the artillery battalion. Veterans who had previously participated in the Battle of Shanghai were almost all promoted to varying degrees, and they were all elated, with morale high, and no longer harboring any rejection towards Sun Baili.

Sun Baili was initially concerned that these veterans and officers would be promoted several ranks at once and would be unable to handle their new responsibilities. However, as soon as the training began, he realized that his worries were completely unfounded: these individuals had already mastered his "Sun's Military Manual" and training methods, quickly adapting to their roles, which significantly alleviated his burden and allowed him to focus on training the officers

Sun Baili said happily: "Mr. Du, could you draft a more detailed plan and budget for discussion with everyone"

Seeing Sun Baili's resolute attitude, Lu Hongtu found it difficult to decline any further, and thus agreed to it.

Lu Hongtu hesitated and said, "The militia system implemented in Guangxi could indeed address this issue, but the provincial government may not necessarily agree to this approach, as it could easily arouse suspicion from the central authorities"

Lu Hongtu responded: "The so-called militia system involves concentrating local security leaders and key militia members in the provincial capital for training. By strengthening education, these individuals first accept the new policies, and then they are sent back to their localities to hold important positions. This approach not only facilitates the implementation of economic plans and avoids exacerbating social conflicts, but it will also make future conscription much easier. Our Guangxi has consistently upheld the militia schools, and the results have been very significant"

Sun Baili, feeling a sense of relief, said: "Let's do it this way! Gather these individuals in Zhangzhou to receive training alongside the officers, with Mr. Du and myself personally instructing them. This will not only disseminate the new policies but also cultivate a large number of reserve military personnel, achieving two objectives at once! As for the provincial government, everyone need not worry; I will negotiate on that front!" He then turned to Lu Hongtu and said: "I think we should simply establish a school specifically for training officers and local officials, and we shall name it 'Zhangzhou Military and Political School.' I would like to ask Mr. Lu to take on the role of principal!"

At the moment when Sun Baili found himself at a loss in the face of difficulties, Cai Tingkai, hundreds of miles away, extended a timely helping hand. He first designated the nearby eight counties, including Zhangzhou and Xiamen, as a region on behalf of the provincial government, appointing Sun Baili as the commissioner of the executive office, fully responsible for military and political affairs. He then invited several scholars and prominent figures to Fujian to serve as local officials, and the first batch of personnel arriving in Fujian was assigned to Zhangzhou. At the welcome banquet, when Sun Baili shared the current predicament with the incoming local officials, most of them were equally at a loss for solutions. Only Du Zhounan, the mayor of Zhangzhou, pointed out a clear path. He said, "Fujian has suffered from war, production has been severely damaged, and the economy is in a state of stagnation or even regression. Landlords, considering their own livelihoods, are naturally unwilling to relinquish their land, so we cannot act too hastily. In fact, the crux of the problem does not lie with the landlords and wealthy farmers. If the economy develops rapidly, investing in factories yields returns that are twice as high as merely collecting rent. Who would still be willing to cling to their land?" Sun Baili later learned that this individual had studied in Japan and obtained a master's degree in economics.

Sun Baili nodded and said, "Indeed, I am currently troubled by this issue! I wonder if anyone has any good solutions?"

Du Zhounan replied leisurely, "The government should first invest in building a few factories. Once profits are made, they can increase their publicity, and naturally, people will flock to them."

Du Zhounan immediately replied: "I had already prepared it before coming to Zhangzhou, so we can discuss it now!" He then took out a small booklet from his pocket and handed it over.

Sun Baili, upon receiving it, asked with concern: "How can you formulate a plan that is tailored to the local conditions without coming here to understand the situation?"

After everyone had left, Sun Baili excitedly paced around the room, his mind completely awake. Looking at the hastily drafted strategies piled on the table, Sun Baili sensed that with the concerted efforts of these individuals, the history of Zhangzhou would surely open a new chapter!