ABSTRACT
During the first months of existence of the People’s Republic of China Mao adopted what in retrospect appear relatively restrained domestic policies. Although he ordered private property to be confiscated, he also promised indemnity and compensation to former property owners and shareholders, provided they were prepared to work for the ‘socialistagrarian-industrial society’ that was being planned in the new China. A similar offer was made to all those who had served as officials or civil servants under the GMD governments. Mao’s aim was to ease the CCP’s task of moving towards Communism by preserving continuity in administration. How long Mao would have remained patient and accommodating is difficult to judge, but the question became academic once China became involved in war. Less than a year after its creation, the People’s Republic of China (PRC) found itself embroiled in the Korea peninsula in the first open conflict of the Cold War. The demands of a ferocious military struggle destroyed all thought of tolerant economic and political policies.
