Chapter 5: Institutional Reform (Part 3)

Since the specific superior departments for many specific departments had not yet been stipulated, a large number of department heads showed anxious expressions. This was especially true for a department like the Cheka. Originally, it was both an audit department and responsible for “anti-corruption,” making it a semi-powerful department. Yi Fan had even planned to organize a “Cheka” law enforcement team to expand its law enforcement powers. If it were directly assigned to the Ministry of Finance according to the new classification, it would be completely reduced to an audit bureau. Yi Fan’s Cheka dream would be over. Moreover, there were rumors that after the establishment of the “large ministry” system, various departments such as taxation, audit, and customs would establish a “Fiscal and Tax Police,” directly subordinate to the Ministry of Finance. In this way, their respective dreams of establishing special agencies or even armed forces would be completely shattered.

Furthermore, the characteristic of the “large ministry” reform was to reduce levels. Many original ministries, commissions, and offices would inevitably be downgraded in the new system. To be honest, the senators didn’t care much about rank and treatment, but this would mean there would be many department heads and very few ministers, which didn’t sound as impressive…

Next was the announcement of the jurisdiction under the “large ministry” system.

The Ministry of Finance basically continued all the units under the former General Finance Directorate, including the Finance Committee, the Special Audit Committee, the Central Reserve Bank, the State Administration of Taxation, the General Administration of Customs, and the Monopoly Bureau. The original Delong Bank was converted into a commercial bank.

The Ministry of Foreign Affairs incorporated most of the agencies of the former Colonial Trade Department, abolished the overseas station establishment, and had jurisdiction over: the Department of Foreign Affairs and the Department of Colonial Affairs. The foreign trade company under the former Colonial Trade Department was spun off.

The Ministry of Justice exercises the powers of a ministry of justice and also incorporates the court and procuratorate systems formerly under the Arbitration Court.

The Ministry of Armed Forces incorporates the various departments under the former General Military Affairs Directorate. The former Special Reconnaissance Team Command is changed to the Fubo Army General Reconnaissance Bureau, responsible for military intelligence collection and analysis, as well as special operations forces training and combat. Its specific jurisdictions are: the General Staff Department, the Army Department, the Navy Department, and the Fubo Army General Reconnaissance Bureau.

The Ministry of Land and Transport. The original various departments were disbanded, and a new General Post and Telecommunications Administration, a General Transport Administration, and a Ministry of Resources were established. The Long-Range Exploration Team was incorporated.

The Ministry of Agriculture, Forestry and Fisheries. It was directly reformed from the original Agriculture Committee.

The Ministry of Economy, Trade and Industry has jurisdiction over the Ministry of Commerce, the Ministry of Machinery Industry, the Ministry of Energy, the Ministry of Metallurgy, and the Ministry of Light Industry.

The Ministry of Culture and Science has jurisdiction over the Ministry of Education, the Ministry of Science and Technology, and the Ministry of Propaganda.

The Ministry of People’s Livelihood and Labor is based on the former Civil Affairs Committee and incorporates the Health Committee.

The Ministry of People’s Security has jurisdiction over the General Police Administration, the National Army Command, and the Political Security Bureau.

The structure and functions of the Planning Council remain unchanged. The function of managing state-owned enterprises and state-owned assets is added, equivalent to the SASAC of the old world.

The General Affairs Department is responsible for the daily work of the Central Government Council and also manages the Foreign Intelligence Bureau.

To adapt to the upcoming series of actions such as the mainland and southern campaigns, and to coordinate related military and civil affairs, a People’s Commissar for Unification Affairs is separately established to handle specific tasks.

Thus, the Senate Cabinet Meeting is composed of the Secretary of State, twelve People’s Commissars, and one non-voting Director of the General Affairs Department.

The Arbitration Court is placed under the direct jurisdiction of the Senate, with the Supreme Court and the Supreme Procuratorate under it. These two institutions currently exist only in theory; in actual operation, representatives of the Arbitration Court are still responsible. The original Investigation and Execution Bureau of the Arbitration Court is retained.

The Great Library continues to be under the direct jurisdiction of the Senate.

A new Senate General Office is established, responsible for the daily affairs of the senators. It also has jurisdiction over the Organization Department, which handles the appointment and dismissal procedures for senator cadres; the College of Arms, which manages the succession of senatorial lineage; the Senatorial Guard Bureau, which is responsible for the personal security of senators; and the Senatorial Foundation, which is responsible for managing the Senate’s property.

The existing sole proprietorships and joint ventures established by the Senate are included in the “National Policy Company” list and are all transferred to the jurisdiction of the Planning Council.

The First Amendment clarifies that the three main powers of “financial budget power,” “senator cadre personnel power,” and “senator status determination power” are held by the Senate. Policies and resolutions concerning these three items must be reviewed and passed by the entire Senate.

Under the new system, the supreme power of the Senate is clarified and institutionally guaranteed, while at the same time, the Senate is relieved of the specific management of administrative affairs. That is to say, apart from deciding on major policies and financial and personnel powers, the Senate no longer directly interferes in administrative affairs.

Although this system could not completely satisfy the core members of the Otaku Faction, it was considered acceptable. Especially after clarifying that the financial budget power and personnel power were in the hands of the Senate, it was a great constraint on the administrative agencies. As for how to change it further to better conform to the “power of the senators” and effectively “prevent dictatorship,” everyone had no unified idea. To adopt a “one-vote veto system” like that of a grand democracy was naturally unrealistic. As for the patron system, no one dared to say that their ability was particularly strong and that they could support stronger vassals than others. In particular, some “soy sauce” senators felt that if the patron system were really implemented, the resources they possessed would be completely incomparable to those of the people in power when it came to supporting private forces. What good would it do other than to further expand the power of the existing authorities?

After Ma Jia’s speech, the host, Qian Shuiting, announced that Ji Xin would read the “Draft Regulations on Senate Discipline.” Although senators were not legally bound by the various laws enacted by the Senate, some internal problems that had been exposed over the years made the Senate believe it was necessary to establish a disciplinary system to regulate individual senators and clarify the “red lines” that senators could not cross. This discipline consisted of thirteen articles, which were the basic disciplines that senators must abide by.

In addition to reiterating the provisions stipulated at the Second General Assembly, which strictly prohibited betraying the organization, harming senators, leaking Senate secrets, and sabotaging the great cause, the discipline clearly stipulated that senators, in a non-authorized, non-official capacity, were not allowed to infringe on the person and property of naturalized citizens and natives; the relationship between senators and naturalized citizens and natives must comply with the “Act on Relations with Naturalized Citizens and Natives.”

Next was about preventing official crimes by senators. Ji Xin first reviewed the current criminal phenomena among senators, pointing out that the current characteristics of senators’ official crimes were small amounts, non-cash, and often appeared in the form of personal favors. The high-risk areas for crime were currently concentrated in shipping, commercial trade, and construction. The main forms were accepting gifts and banquets from naturalized citizens and natives; contracting out projects without proper procedures; selling and purchasing goods without following bidding procedures; and arranging and transferring jobs for naturalized citizens without proper employment procedures…

“…For all comrades who have made such mistakes in the past, the Senate will not pursue the matter. But for those comrades who do not stop after the Third Plenary Session and continue to repeat such mistakes, necessary disciplinary action will be taken.”

“This is the rhythm of ‘shuanggui’…” Mei Wan couldn’t help but say. He was sitting very close to Xiao Zishan. As the person in charge of the General Construction Company, he certainly knew that his company was a “disaster area.” “This is a case of the more you do, the more mistakes you make; if you do nothing, you make no mistakes.”

“Director Mei, you can’t say that,” Bing Feng said before Xiao Zishan could speak. “I think it really needs to be rectified. It’s getting too ridiculous now: a girl gets involved with a senator, and all her relatives ascend to heaven. Naturalized citizens and natives are all thinking about this, not focusing on their proper business, just thinking about how to curry favor: those with daughters want to offer their daughters, those who are young and have no daughters hope a senator will take a fancy to their wives, sisters-in-law, or younger sisters-in-law…”

Xiao Zishan didn’t hear the rest clearly, but just these few sentences were enough to make him frown secretly. No wonder when drafting the bill, Ji Xin and others had insisted, against all opposition, on submitting the matter of disciplinary regulations to the general assembly for deliberation. So that’s what was going on! Speaking of which, it was no big deal for a senator to have a few more women; the more offspring, the better. At worst, the General Office would raise them. But if it corrupted the social atmosphere, that would be bad.

Although in this time and space, using women to climb the social ladder was not uncommon, and the social atmosphere was accepting of it, the Senate itself had the ideal of transforming the social atmosphere and establishing a “new morality” system. As the superiors, the senators had to play a certain guiding role in this aspect.

Ji Xin’s speech sparked a great debate. First, the disciplinary regulations themselves made many people feel uncomfortable, as if they were being deprived of their power to do whatever they wanted. However, most people thought that the disciplinary regulations were acceptable. After all, if a senator were completely unrestrained, his actions could also infringe on the rights and interests of other senators. Just as many senators had previously worried about the lack of criminal liability for senators: hostile senators could not harm each other, but they could disgust their opponents by harming the close naturalized citizens around them—such as directly shooting a senator’s life secretary.

Now, the disciplinary regulations made it clear. Once a senator was convicted by the Senate Court of Honor, they would only be exempt from criminal liability, not civil liability. At the same time, disciplinary action would be taken within the Senate. With a disciplinary record, they would be restricted in holding public office and exercising senatorial powers. This greatly increased the cost of senators “acting recklessly.”

The third part of Ji Xin’s speech was the draft of the “Act on Relations with Natives,” which had been proposed by senators long ago. It was now formally renamed the “Act on Relations with Naturalized Citizens and Natives.” This act stipulated the various civil relations between senators and naturalized citizens and natives in the form of a legal document. Of course, this legal document was only effective within the Senate and would not be made public.

The “Relations Act” first defined senators, naturalized citizens, and natives.

Senators. Limited to transmigrators born in the old world, all currently surviving members, regardless of whether they have political power, are included in the Senatorial Almanac, totaling 522 people.

Naturalized Citizens. All people of this time and space under the rule of the Senate who have gone through the registration and naturalization procedures, regardless of race, ethnicity, nationality, or gender, are naturalized citizens.

The “Relations Act” subdivides naturalized citizens into three categories, enjoying different political rights and civic treatment in descending order:

The first category is “Senator’s Family,” including: children of senators born in this time and space; naturalized citizen spouses of senators with formal legal procedures or life secretaries in a continuing cohabitation relationship; and adopted children of senators who have gone through adoption procedures at the General Office.

The second category is cadres, workers (including agricultural workers), soldiers, and students who directly serve the Senate and have undergone the purification process. Those who are active outside the Yellow Zone and temporarily unable to undergo purification, as long as they meet the above conditions, can also be classified as second-class naturalized citizens. Indentured servants purchased by the Senate and purified, as well as privately owned slaves of senators, are also included; this does not include slaves imported from Southeast Asia and prisoners sentenced to lifelong hard labor.

The third category is the natives of this time and space who are under the open rule of the Senate, have not undergone purification but have registered for citizenship and pay taxes normally.

Natives. All people of this time and space who are not under the direct rule of the Senate are natives.

The “Relations Act” stipulates that senators who establish a marriage or cohabitation relationship with a naturalized citizen or native must report it to the General Office; the adoption of children must also be reported in a timely manner. If not reported in time, the Senate will not recognize the civil relationship.

Senators can obtain slaves through purchase, inheritance, dowry, gifts, etc., but must pay a servant tax according to the regulations. Slaves are equal in status to indentured servants and fall within the category of second-class naturalized citizens. The Senate has the obligation and responsibility to purify the slaves and subject them to review by the Political Security Bureau. Slaves are only allowed to be used for domestic labor and not for production and business activities. Slaves cannot be sold or transferred. When a senator no longer needs a slave, the slave will be redeemed by the General Office.

Senators can arbitrarily hire purified and politically vetted naturalized citizens for domestic services, but they are not allowed to engage in production and business activities.

Senators are not allowed to accept donations from natives or naturalized citizens, unless it is an official act approved by the Senate—the donated property also belongs to the Senate, not the individual.

Senators who privately provide long-term financial support to naturalized citizens and natives, or who privately take on apprentices, must report to the General Office, reporting the name of the recipient, their family situation, the content of the support, and other items. They are not allowed to establish any form of master-servant relationship through this.

Except for carrying out relevant tasks and being authorized by the Senate, no senator or senator’s family member may participate in enterprises run by naturalized citizens and natives in the form of shareholding, employment, agency, cooperation, etc.; senators and their family members are not allowed to establish credit relationships with naturalized citizens and natives. Individual senators are not allowed to open private enterprises; senator’s family members are allowed to open sole proprietorships, but not in partnership with others.

Xiao Zishan thought that these regulations did, to a certain extent, curb the possibility of senators cultivating private power. It also left a channel for senators to make money through “white gloves”—what’s the difference between a senator’s family being able to do business and the senator himself being able to do business? However, the prohibition of joint ventures with naturalized citizens and natives did plug a loophole.

In fact, according to some senators, these restrictions on cooperation with natives should not exist at all. Only in this way can they integrate more quickly with the people of this time and space. However, the mainstream opinion in the Senate believed that such unrestricted cooperation would only lead to the rapid assimilation of the Senate into the vast sea of natives—and the object of assimilation would be the upper class of this time and space, a class that had already proven itself to be corrupt and incompetent in the turmoil of the late Ming. Integrating with them would only lead to the rapid corruption and degeneration of the Senate, making it impossible to achieve the goal of social transformation. Therefore, certain measures must be taken to maintain the relative independence of the senators.

But many senators came to this time and space with the dream of creating large conglomerates, amassing huge fortunes, and having their descendants be the masters of men for generations. In their view, ideals, honor, or future political status were not as tangible as earning vast wealth now. Since they were restricted in running businesses, there must be sufficient compensation in other areas. After all, not everyone was an idealist.

Thinking of Wu Nanhai, Hong Huangnan, and that Director Deng who had all come to him to grumble about senators running their own businesses. Wu Nanhai’s ambitions were not large; he wanted to privatize the Nanhai Coffee House. As for Hong Huangnan, it was undoubtedly the yet-to-be-opened No. 82—still operating under the General Office’s banner. Director Deng had his eyes on a private hospital in Guangzhou—but that would certainly not pass the Senate’s approval…

Xiao Zishan thought, perhaps these enterprises could be converted into ownership by the Senatorial Foundation? That would make them the common property of the Senate. Then they could be creative with the shareholding.

He also remembered that before the plenary session, Cheng Dong and others from the finance and economics department had held a special economic work conference on the issue of senator deposits. He had also attended. At the meeting, in addition to the establishment of the Senatorial Foundation, the focus was on how to absorb the senators’ dividend savings—currently, the senators’ dividend figures were just a number in a passbook, with a monthly withdrawal limit. In essence, through so-called dividends and compulsory savings, a large amount of over-issued circulation coupons were deposited, making the inflation of the circulation coupons seem less severe.

But this caused great dissatisfaction among the senators: they could see it, but they couldn’t use it. And savings could not solve the actual problem; the accumulated huge deposits were like a “tiger in a cage.”

The General Office set up special supply stores, sold female slaves from Europe and the Middle East, and approved Hong Huangnan’s No. 82 store plan… In addition to promoting the welfare of the senators, there was also the intention of consuming the senators’ savings. But luxury consumption had a very limited effect on the current huge deposits.

Therefore, at this economic work conference, Cheng Dong proposed that state-owned enterprises should issue non-cumulative preferred shares to senators, in order to make full use of this deposited capital to supplement the fiscal budget deficit, and on the other hand, to provide an outlet for the huge dividend funds accumulated by the senators over the years.

“…This also has the advantage of increasing the senators’ sense of ownership. After all, we are already preparing to separate Senate ownership from state ownership. Some senators will inevitably have a sense of ‘am I still the master of the country?’ Through shareholding, their emotions can be effectively resolved.”

Since state-owned enterprises could issue non-cumulative preferred shares to senators, the Senatorial Foundation could also issue stocks to run enterprises in the same way… This No. 82 thing, everyone could be invited to become a shareholder!

Xiao Zishan suddenly felt as if he had discovered a new continent: right, the various life services currently provided by the Senate General Office for the senators could all be commercialized—establish a Senatorial United Services Company, and the senators could also become shareholders…

Just as he was pondering a series of unfamiliar terms, calculating how to scrape out all the senators’ dividend savings to “support national construction,” Ji Xin’s speech had ended.