The Chinese people have come to see the sharp contrast between the Liberated Areas and the Kuomintang areas. Are not the facts clear enough? Here are two lines, the line of a people's war and the line of passive resistance, which is against a people's war; one leads to victory even in the difficult conditions in China's Liberated Areas with their total lack of outside aid, and the other leads to defeat even in the extremely favourable conditions in the Kuomintang areas with foreign aid available. The Kuomintang government attributes its failures to lack of arms. Yet one may ask, which of the two are short of arms, the Kuomintang troops or the troops of the Liberated Areas? Of all China's forces, those of the Liberated Areas lack arms most acutely, their only weapons being those they capture from the enemy or manufacture under the most adverse conditions. Is it not true that the forces directly under the Kuomintang central government are far better armed than the provincial troops? Yet in combat effectiveness most of the central forces are inferior to the provincial troops. The Kuomintang commands vast reserves of manpower, yet its wrong recruiting policy makes manpower replenishment very difficult. Though cut off from each other by the enemy and engaged in constant fighting, China's Liberated Areas are able to mobilize inexhaustible manpower because the militia and self-defence corps system, which is well-adapted to the needs of the people, is applied everywhere, and because misuse and waste of manpower are avoided. Although the Kuomintang controls vast areas abounding in grain and the people supply it with 70-100 million tan annually, its army is always short of food and its soldiers are emaciated because the greater part of the grain is embezzled by those through whose hands it passes. But although most of China's Liberated Areas, which are located in the enemy rear, have been devastated by the enemy's policy of "burn all, kill all, loot all", and although some regions like northern Shensi are very arid, we have successfully solved the grain problem through our own efforts by increasing agricultural production. The Kuomintang areas are facing a very grave economic crisis; most industries are bankrupt, and even such necessities as cloth have to be imported from the United States. But China's Liberated Areas are able to meet their own needs in cloth and other necessities through the development of industry. In the Kuomintang areas, the workers, peasants, shop assistants, government employees, intellectuals and cultural workers live in extreme misery. In the Liberated Areas all the people have food, clothing and work. It is characteristic of the Kuomintang areas that, exploiting the national crisis for profiteering purposes, officials have concurrently become traders and habitual grafters without any sense of shame or decency. It is characteristic of China's Liberated Areas that, setting an example of plain living and hard work, the cadres take part in production in addition to their regular duties; honesty is held in high esteem while graft is strictly prohibited. In the Kuomintang areas the people have no freedom at all. In China's Liberated Areas the people have full freedom. Who is to blame for all the anomalies which confront the Kuomintang rulers? Are others to blame, or they themselves? Are foreign countries to blame for not giving them enough aid, or are the Kuomintang government's dictatorial rule, corruption and incompetence to blame? Isn't the answer obvious?