Liu Yan (chancellor) - During Emperor Daizong's Reign

During Emperor Daizong's Reign

Emperor Suzong died in 762 and was succeeded by his son Emperor Daizong. Emperor Daizong recalled Liu Yan to Chang'an to again serve in three posts — deputy minister of census, mayor of Jingzhao Municipality, and special director in charge of finance, minting, salt and iron monopolies, and food shipments. Liu declined the posts of deputy minister of census and mayor of Jingzhao, yielding them to Yan Zhenqing and Yan Wu (嚴武) respectively. In 763, while still serving as special director of the various economy-related matters, he was also made the minister of civil service affairs (吏部尚書, Libu Shangshu) and given the designation Tong Zhongshu Menxia Pingzhangshi (同中書門下平章事), making him a chancellor de facto. In 674, however, he was accused of having close association with the eunuch Cheng Yuanzhen — who had been exceedingly powerful but who had been removed in 763 after he was blamed for not warning Emperor Daizong about a Tufan invasion — and he, along with a colleague who had been hated by other eunuchs for his role in Cheng's downfall, Li Xian, were removed from their chancellor posts, with Liu being made a member of the staff of Li Kuo the Crown Prince.

However, later in the year, Liu was put in charge of the affairs of food shipments, taxation, salt and iron monopolies, and food management for the regions of Luoyang, Huai River, and Yangtze River. At that time, the Chang'an region was suffering from a food shortage, after years of warfare. Food supplies coming from the Yangtze region, which had been traveling through Bian River — a canal that connected the Huai River and Yellow River — prior to the Anshi Rebellion, had been unable to travel through it since it had been silted through the years. Instead, the shipments had to travel on the Yangtze River and Han River to Liang Prefecture (梁州, in modern Hanzhong, Shaanxi), and then over the Qinling Mountains to Chang'an — a much more treacherous and costly route. Liu, hoping to restore the Bian River-Yellow River route, personally travelled through the former route to examine it. He then wrote a detailed report to Yuan Zai, who had become a powerful chancellor by that point, explaining the benefits of the Bian River route. With Yuan's support, he began the project to clear Bian River of silt. Upon the completion of the project, the food supplies for the Chang'an regions became plentiful, even during times of poor harvest. Emperor Daizong, complimenting him, stated, "You, lord, are my Marquess of Zuan" — comparing him to the great Han Dynasty prime minister Xiao He. By 766, Liu was serving as the minister of census (戶部尚書, Hubu Shangshu), and that year, the financial matters of the state were divided in halves — with him in charge of the eastern half of the empire, and his deputy Diwu Qi in charge of the western half.

By 777, Yuan and his chancellor colleague Wang Jin, both of whom had become entrenched in their positions and become extremely corrupt, finally wore out Emperor Daizong's patience, and Emperor Daizong had them arrested. He ordered Liu to interrogate them, but Liu, not daring to carry this task out along, proposed that five officials, including himself and the chief imperial censor Li Han (李涵), be appointed. Subsequently, Yuan was executed, but at Liu's suggestion that Wang was less culpable than Yuan, Wang's life was spared, although he was demoted to be a prefectural prefect. Subsequently, Chang Gun replaced Yuan, and Chang, jealous of Liu, suggested to Emperor Daizong that Liu, given his contributions, should be made Pushe (僕射) — one of the heads of the executive bureau of government (尚書省, Shangshu Sheng); Chang did so with the intent that Liu be stripped of his financial responsibilities. Emperor Daizong made Liu Pushe, but continued to have him be in charge of the financial affairs.

It was said that during the years that Liu was in charge of financial affairs, he carefully selected the officials in charge of financial matters in each region, choosing those who were young, energetic, and talented. Many times, powerful individuals would make recommendations; Liu would take the people that they recommended and put them in honored posts with salaries, but not give them actual responsibilities. It was said that those officials that Liu commissioned were faithful to their tasks and Liu's instructions, even if they were thousands of miles away from the capital.