On January 1, 1949, the Nanjing Kuomintang government, defeated in the civil war which it had launched, proposed to the Chinese Communist Party that peace talks be held. On January 14 the Chinese Communist Party issued a statement agreeing to this proposal and set eight terms as the basis for peace negotiations between the two sides. These terms were: 1. Punish the war criminals. 2. Abolish the bogus constitution. 3. Abolish the bogus ``constituted authority''. 4. Reorganize all reactionary troops on democratic principles. 5. Confiscate bureaucrat-capital. 6. Reform the land system. 7. Abrogate treasonable treaties. 8. Convene a political consultative conference without the participation of reactionary elements, and form a democratic coalition government to take over all the powers of the reactionary Nanjing Kuomintang government and of its subordinate governments at all levels. In April of the same year, the delegation of the Chinese Communist Party and the delegation of the Nanjing Kuomintang government held peace negotiations and formulated the ``Agreement on Internal Peace (final amended version)'', based on the eight terms. The agreement, consisting of twenty-four articles in eight sections, was rejected by the Nanjing Kuomintang government on April 20.