In general, one may say that the Chinese organisation is at present free from any serious factional disputes. There is an almost complete absence of petty jealousies and politics. From 1931 to 1937, there were indeed severe disputes and factional fights. These resulted mainly from carry-overs from Stalinism. In these years of dispute, the party was set on a firm basis, its leaders schooled, and its programme was made clear and firm.
Shanghai is a complex city, but consists, briefly, of two foreign areas surrounded by Chinese areas.
These latter areas are now in the hands of the Japanese. At least half of the Chinese industries were situated in these Chinese districts. Both at Shanghai and throughout China where the Japanese have conquered, industry has been completely smashed and there has been no revival whatsoever. Industries are flourishing, however, within the foreign areas of Shanghai and at Hong Kong. The cost of living in the past two years has increased tremendously.