Following the One Way of Tao, Heaven appears in Three, settles in Two -- Yin and Yang, develops Eight Regularities and establishes Seven Common Features, all covering and guiding each and every thing. All animals behave as they do because they are at one with Heaven. Following the One Way of Tao, the Earth shows itself in Three, with the sun coming up and going down regularly at due points of time and itself polarized into the South and the North. This is worked out by laws of Heaven. The moon waxes and wanes regularly in due pattern. That is destined by the Tao. All the stars go their definite ways. That shows the reliability of Heaven’s laws. Heaven appears in Three and settles in Two. Hence the cycle of day and night … [missing words] … Heaven branches into Two from which to establish Eight Regularities. Hence the law of four seasons, of all changes, of both distinctiveness and relatedness between things.

Heaven establishes … [Missing words] … Being definite and regular is the Heaven’s way. Fitting in with one another is Heaven’s standard. Reliability is Heaven’s expectation. Turning to the opposite when reaching an extreme is the Heaven-ordained nature. Being as ought to is the Heaven-stipulated destiny. … [Missing words] … is the reason why Heaven decides the fate of everything. These are the Seven Common Features of all existence. If something has all these seven features, we can say it has real existence. Conforming to the Tao is called “being just”. Where justice lies is called “the positive”. Not conforming to the Tao is called “being unjust”. Where injustice lies is called “the negative”. To be positive or negative is not decided by others. Therefore, the hows and whys of rise or fall, or life or death, is quite clear.

… [Missing words] … comes benevolence. From benevolence comes orderliness. From orderliness comes peace. From peace comes serenity. From serenity comes resignation. From resignation comes wisdom. From wisdom comes divinity. At the topmost height of divinity one is immune from false conceptions. Those wise kings and emperors know the secrets in all this. So, they stick to the highest Law of Heaven and Earth, see things in all directions as from Heaven, pay attention to the Six Strategic Principles when issuing orders and directives, compare the three different cases of name-reality relationship as reference for managing all affairs, look from history for examples of wise kings versus tyrants showing their different attitudes toward the Tao of Heaven as related to the rise or fall of their states, learn from their predecessors’ experiences why and how name and reality should be matched, so as to be able to tell the true from the false and not to be misled by the latter –- then success is assured.

The Six Strategic Principles are: First, careful observation; Second, comprehensive analysis; Third, timely actions; Fourth, Judging by law; Fifth, flexible adaptation; Sixth, alternate use of reward and punishment. Observe to find signs of life or death of a state. Analyze to know the causes of its rise or fall. Act timely to restrain the aggressive and protect the weak. Judge by law to defend the right and suppress the wrong. Adapt flexibly to wipe out the decayed and foster the newborn. Use reward and punishment alternately to promote virtue and eliminate vice. By applying these six principles, kingship can be secured.

The three different cases of name-reality relationship are: First, both the name and the reality are true and sound, matching each other, in which case law is in effect and the state solid as a rock. Second, the name and the reality do not match, neither true nor sound, in which case law is not existent or cast aside and the state in chaos. Third, the issue of name-reality relationship is disregarded, in which case both name and reality are terrible and the state doomed even if it was powerful at one time. Knowing the differences between these three cases of name-reality relationship means knowing how to cope with all kinds of situations.

Mobilizing for war in the farming season or forcing people to grow plants not suited to the soil conditions is violation of the Tao of Heaven and Earth. Ministers being estranged from their sovereign, subordinates from their superiors, and people not enthusiastic about their work -- this is violation of the Tao of social affairs. The state in which such abnormalities exist is a dying one. It deserves to be taken over by forces pursuing justice. A state where the situation is quite the opposite is one full of life. Such a state deserves support. By observing to see if a state is going along with or against the Tao, one can make an accurate judgment about the actual strength of that state. When in a real contest of strength, one should put up a false appearance of insufficiency in the case of actual sufficiency, and vice versa. When people are threatened with war, one should mobilize them to respond and they will; when there is no threat of war, one should have people concentrate on farming and peace will last. When name and reality match, order and peace will reign. All things straighten themselves out anyway; All names will have to match the things by themselves; And all affairs should be managed to match the names. Knowing the three different cases of name-reality relationship will enable one to distinguish between the true and the false. Thus, the state will thrive while its opponents die out.