CHINA REPORT RED FLAG

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP04-01460R000100280001-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 93
• Document Creation Date: December 21, 2016
• Document Release Date: March 19, 2008
• Sequence Number: 1
• Publication Date: June 16, 1982
• Content Type: REPORT

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JPRS 81062
16 June 1982
China Report
RED FLAG
No. 8, 16 April 1982
IFBISI
FOREIGN BROADCAST INFORMATION SERVICE
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16 June 1982
CHINA REPORT
RED FLAG
No. 8, 16 April 1982
Translation of the semimonthly theoretical journal of the Central
Committee of the Chinese Communist Party published in Beijing.
CONTENTS
On Questions Regarding Our Country's Economic Relations With
Foreign Countries (pp 2-10)
(Editorial Department) ............................................
On Bourgeois Liberalization and Other Issues (pp 11-13)
(Hu Qiaomu) ....................................................... 17
A Probe Into a Development Strategy for Solving the Food
Problem--Talk on Exploiting Protein Resources and
Increasing the Utilization Rate of Protein (pp 14-19)
(Luo Jingba) ...................................................... 21
Rectify the Ideological Line, Develop Construction in
Mountain Areas (pp 20-24)
(Tie Ying) ........................................................ 32
How To View the Changes in People's Livelihood Over the
Past 3 Years (pp 25-28)
(Li Chengrui, Zhang Zhongji) ...................................... 42
Letter From Comrade Song Shilun (p 28) ................................... 49
Vigorously Study Economic Theory (pp 29-30) .............................. 50
Taking Planned Economy as the Dominant Factor and Regulation
by Market Mechanism as a Supplement (pp 30-33)
(Xue Muqiao) ...................................................... 52
Is There Any Contradiction Between the Appropriate Restoration
and Development of the Individual Economy and the Past
Practice of Transforming It? (pp 33-34)
(He Jiangzhang) ................................................... 58
- a - [III - CC - 75]
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!-low Do We Understand the Coexistence of Diversified Economic
Forms at the Present Stage in Our Country? (pp 34-35)
(Wu Shuqing) ...................................................... 61
Strengthen Rural Party Organizations at the Basic Level
(pp 36-39, 43)
(Jing Dong) ....................................................... 64
Be Broad-Minded About Rejuvenating the Cadre Ranks (pp 40-43)
(Luo Yinghuai) ..................................................... 72
On the Question of Human Rights in the International Arena
(pp 44-48)
(Shen Baoxiang, et al.) ........................................... 79
Is This Really for the Good of All and the Collective?
(inside back cover)
(Li Zhuqi) ........................................................ 88
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ON QUESTIONS REGARDING OUR COUNTRY'S ECONOMIC RELATIONS WITH FOREIGN COUNTRIES
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 2-10
[Article by Editorial Department]
[Text] In order to open up new prospects for developing China's foreign
economic relations in an all-round manner, we should sum up both the positive
and the negative of our past and present experiences on a series of basic
problems related to our foreign economic relations and thus more clearly
understand and more satisfactorily carry out the CCP Central Committee's
correct principles and policies.
I. What Exactly Is the Nature of Foreign Economic Relations?
A few years ago, Comrade Deng Xiaoping pointed out that the external economic
work is a strategic issue that has a bearing on the success and failure of
our four modernizations. This is absolutely true.
In the "introduction" to Marx' well-known "Manuscripts on Economics (1857-
1858)," he pointed out the necessity of studying "the international relations
in production" after he had expounded on the various sectors in social pro-
duction and their relations. He was also of the opinion that we had to treat
international relations in production as a special subject of study in eco-
nomics. This subject had to include "international division of labor,"
"international exchange," "import and export," "exchange rates" and other
themes. This is a view of great significance. By raising this view, Marx
pointed out, briefly and succinctly, that in the modern world, economic
problems are by no means phenomena that are related only to domestic factors;
on the contrary they must be studied in the context of international rela-
tions and should not be studied in isolation from international relations.
We should never neglect this important view of Marx' in discussing China's
foreign economic relations.
Almost all the countries in the present world, with perhaps very few excep-
tions, attach great importance to the problem of external economic relations.
Many countries and areas, such as Japan, Singapore and Hong Kong, even
regard it as a vital one. As far back as more than 100 years ago, Marx and
Engels pointed out that along with the emergence of the international market,
the nations of the world have become increasingly economically related and
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dependent on one another and the closed-door and self-sufficient situation
are gradually becoming things of the past. During the past decades, espe-
cially since World War II, this situation has been further developed in an
unprecedented manner. This is a fundamental historical task as well as an
inevitable trend of social development. We should never be ignorant of this
fact in regarding China's foreign economic relations today.
Since the founding of the PRC, we have undergone many twists and turns in
developing our foreign economic relations and have failed to make any sub-
stantial progress in this respect. Of course, we are not to blame for this
on the grounds that we preferred a policy of closing our country to inter-
national exchanges. At that time there were other reasons: First, the
major capitalist countries in the world headed by the United States adopted
an antagonistic attitude toward us and blockaded us for a long time. They
put an embargo on many commodities. Second, since the beginning of the
1960's, when the Soviet Union tore up its economic contracts with us, our
economic relations with the Soviet Union and a few other countries have
been greatly reduced. Third, for a time, especially during the period of
the "Great Cultural Revolution," our policy of self-reliance was greatly
distorted. Self-reliance is an absolutely correct policy, but it is abso-
lutely wrong to distort this policy and set it against the development of
external economic relations.
Since the time around 1972, there has been a change in our foreign economic
relations and we have gradually opened up some prospects. However, it was
not until the smashing of the "gang of four" and especially not until the
3d Plenary Session of the 11th CCP Central Committee that it was made clear
throughout the party that we should develop our foreign economic relations.
This is indeed a very farsighted policy decision. Then, from 1978 to 1980.
we actually brought about a great change to and made great progress in our
foreign economic relations. At the same time, we also committed some errors
in this respect. This has taught us that we should sum up our experience and
make the pace of our progress steadier. However, we should not, for this
reason, get the wrong idea and think that we should retreat and dare not
continue to actively develop our foreign economic relations. Summing up
experience is aimed at developing the foreign economic relations of this
socialist country more satisfactorily. Otherwise, we will be going against
the principle of the third plenary session of the Central Committee.
The party Central Committee recently noted that to promote our socialist
modernization program, we must use two types of resources, that is, domestic
resources and international resources; we must develop both our domestic
market and our place in the world market; and we must master two skills,
that of domestic construction management and that of developing foreign
economic relations. This has further defined the strategic position of our
foreign economic relations. According to this point of view we should con-
tinue to vigorously widen our field of vision and raise our understanding
on the problem of developing our foreign economic relations. After the
October Revolution, Lenin advocated the implementation of the concession
system. At that time, since the Soviet Union was in great difficulties, the
enterprises under the concession system amounted to more than 200 and tens
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of millions of rubles of foreign capital was drawn into the Soviet Union.
At that time, Lenin was of the opinion that associating the Soviet Union
with international capital was necessary. At the same time, he thought that
there was a serious struggle in the course of associating with international
capital and associating with international capital was aimed at promoting
the socialist economic construction of the Soviet state. Today, we are con-
tinuing to act in accordance with Lenin's viewpoint. It is wrong to close
the country to international exchange, to fight in isolation or to refuse to
be associated with international capital. On the other hand, it is also
wrong to neglect or abandon struggles during the process of associating with
international capital. To put it in a nutshell, we should struggle while
associating. At present, we must pay attention to summing up experience,
formulate a whole set of correct guiding principles, policies and measures
by thinking over carefully and continuing to make great efforts, and open up
a path for developing our country's foreign economic relations that is suited
to both national and international conditions. Only by so doing can we really
and effectively overcome all kinds of conservative ideas that uphold sticking
to old ways and can we overcome blindness and spontaneity in our action.
Only by so doing can we open up new possibilities and take the initiative
in our own hands.
II. Why Is It That the Development of Foreign Economic Relations Is an
Important Strategic Question in Our Modernization Program?
In essence, this is a question of how to soberly understand the problem of
in what historical conditions, what national conditions and what favorable
and unfavorable conditions we are carrying out our modernization program.
We have the following four favorable conditions:
First, except in Taiwan, we have already soundly established the socialist
political and economic system throughout our country. We have transformed
the private ownership of the means of production into public ownership and
the members of the exploited class into laborers who support themselves by
their own labor. We have also placed the lifelines of our national economy
in the hands of our state on behalf of the working class and on behalf of
the whole laboring people.
Second, we have already corrected our guiding ideology and started to formu-
late a line and a complete set of principles and policies for carrying out
the four modernizations program, and we have already formed a strong and
resolute CCP Central Committee that is competent to correctly lead the four
modernizations.
Third, with our strong national defense forces, we are strong enough to
defend the peaceful construction of our people. At the same time, owing to
our correct foreign policies, we enjoy high political prestige in the world.
Fourth, there are very favorable international conditions for our concen-
trating on carrying out our modernization program. Already, 174 states and
areas have started trading and are developing their trade and economic
relations with us.
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We have the following four unfavorable conditions:
First, though we already have some technical strength which is already up to
advanced world standards in some respects, on the whole, our equipment, tech-
nology, technical personnel, management and administrative standards are
backward and lag behind the world advanced standards to a fairly large
degree.
Second, although we already have a considerably sound material basis and are
able to accumulate some funds every year, our sources of funds are, after all,
limited. The amount of funds raised within our country falls short of the
demands of construction.
Third, our rich natural resources are indeed a favorable condition, but many
of these resources still remain unexploited underground. Therefore, this is
only a latent favorable condition instead of a realized favorable condition.
Fourth, our excessive population is a heavy burden on our country. Though
it constitutes a rich resource of manpower, we lack the means to utilize
this. Of course, if our manpower is fully utilized, it will change from
being a burden into being an advantage.
The above-mentioned favorable and unfavorable conditions are what we should
proceed from in considering the problems concerning China's economy today,
'including those of foreign economic relations. It is precisely because vie
proceed from these historical conditions that we uphold the view that we must
work hard and perseveringly, rely on, our own strength, maintain independence
and keep the initiative in our own hands while promoting our socialist mod-
ernizations program. We must not, in the slightest degree, deviate from
these principles. The modernization cause of a big country with a popula-
tion of 1 billion should and can only be carried out by relying on the
country's own strength. However, on the other hand, it is also because we
proceed from these historical conditions that we uphold that we should not
distort self-reliance and regard closing our country to international
exchange and fighting in isolation as self-reliance. We must expand our
field of vision from our country to the world on the basis of self-reliance.
We must not only go all out to make use of all positive factors within our
country, but should also go all out to make use of all foreign factors that
can be used by us. This means, in fact, using the strong points of all the
countries in the world to offset our weakness. Using the phrase in the book
"Guan Zi," this means "taking all the valuable things in the world for our
use." Only in this way can we develop our national industries as quickly as
possible through foreign economic relations and by drawing support from
foreign capital and advanced technology. Only in this way can we more
smoothly overcome the difficulties facing us and quicken the pace of pro-
moting our socialist modernization program. Precisely in this sense lies
the strategic significance that we attach to our foreign economic relations.
On the problem of foreign relations, we can draw quite a large number of
experiences and lessons from the history of modern China. In our history,
there were two kinds of people. One kind of people worshipped and had blind
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faith in foreign things and was subservient to foreigners. As a result these
people humiliated the nation and forfeited its sovereignty. Whether the
Empress Dowager Cixi, Yuan Shikai or Chiang Kai-shek, they were, without
exception, cast aside by the people. The other kind of people upheld closing
the country to international exchange and adopted an arrogant attitude toward
other countries. Thus these people were satisfied to lag behind and finally
became castaways in history. Were not the diehards at the end of the Qing
dynasty, who regarded China as the "Heavenly Kingdom" and treated all foreign
countries as "uncivilized nations" that should be put under the suzerainty
of China, this kind of people? Under the present new historical situations,
the above-mentioned two tendencies are still to some extent reflected in the
minds of some of our party members and cadres. This may perhaps be regarded
as a kind of historical legacy. Some people feel ashamed before foreigners
and think that everything is good in other countries, and bad in ours. Others
are very apprehensive about opening up to the outside world and are of the
opinion that there will not be peace and security if we-open up and that if we
must open up, we must open up as little as possible. The two tendencies have
a common point and that is their lack of confidence in the fact that today
we, as a developing great socialist country, are able to open up new pros-
pects in developing our foreign relations.
Our comrades, especially all those who are engaging in external activities
including external economic activities, must have a profound understanding
of the strategic significance of our foreign relations, especially the
strategic significance of our foreign economic relations. They must be both
brave and adept in plunging into the vast world to open up new prospects.
At the same time, they must also carefully pay attention to understanding
the extremely complex nature of the environment we face as a result of open-
ing up to the outside world, be both brave and adept in learning new skills
and abilities, prevent and overcome various kinds of negative practices,
adhere to the principle of socialism and persistently safeguard the purity
of communism. We must do all the above-mentioned things without the small-
est omission. Otherwise we will be committing a great error which will
cause great harm to our cause. This is an indispensably important factor
in ensuring the healthy development of our external work and the victory of
our construction cause.
III. The Necessity.of Having a Whole Set of Correct Guiding Principles and
Policies on Foreign Relations
This means that we should not do our work at random or deal with only those
problems that have cropped up. Instead, we should have a complete set of
plans- with scientific foresight. For this purpose, we should really have a
good grasp of the major issues and characteristics of our foreign economic
relations.
What are the characteristics of our foreign economic relations?
First, dealing with foreign businessmen is different from dealing with
people in our country. In dealing with the people in our country we can
enforce discipline and even force people to observe the discipline if
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necessary. However, in dealing with foreign businessmen, we cannot act in
this manner, and should pay attention to maintaining our good reputation.
In discussing contracts and agreements, we must deal with the foreign busi-
nessmen on the basis of equality, mutual benefits and voluntariness. In
view of this, we should both be strict in enforcing discipline at home and
be flexible externally..
Second, foreign economic relations often involve many departments and fields.
Some of the problems they involve even affect the whole economy and social
life of our country. In view of this, our localities, departments and units
should not act independently in conducting their foreign economic activities
and thus leave loopholes for foreign businessmen to exploit and enable them
to make excessive profits at our expense. Instead, we should carry out our
external economic activities under unified leadership and comprehensive
planning. Only under such a premise can we give better play to the initia-
tive of all the parties concerned.
Third, we should make a distinction between two kinds of foreign businessmen.
With regard to those foreign businessmen who show their good faith in
cooperation and do business in a proper way, we will take a welcoming and
polite attitude, pay attention to maintaining a friendly relationship with
them and implement the policy of equality and mutual benefit, no matter
whether we will be able to do business and come to terms with them. As for
those foreign businessmen who have ulterior motives, adopt improper measures,
go so far as to adopt measures that violate our country's sovereignty, and
go in for swindling, bribing, smuggling, infiltration or even espionage
activities that impair the rights and interests of the Chinese people and
corrupt our cadres and citizens, they will certainly meet with firm
resistance from the Chinese people and some will be prosecuted in accordance
with China's laws. All our party members, cadres and citizens who depart
from the correct stand in these unlawful activities and who have been cor-
rupted by such foreign businessmen must naturally be criticized and admin-
istratively, or even judicially, punished.
In short, the above-mentioned characteristics mean unified leadership,
comprehensive planning, flexible response, strict discipline, making dis-
tinctions and adherence to principles. These things must be conscientiously
observed as a general principle in our work.
However varied our foreign economic relations are, they can be summarized as
exportation and importation. These two aspects interact and are dependent
and conditional on one another. Therefore, the key issue in handling
foreign economic relations is to correctly handle the relationships between
these two aspects and dialectically harmonize them.
Focusing on this key issue, we have to study the following six problems:
First, how to attract foreign capital; second, how to correctly introduce
advanced science and technology from abroad; third, how to vigorously
develop international cooperation in exploiting manpower; fourth, how to
energetically market our products in the world; fifth, how to provide
economic aid to other countries in accordance with our capability; and
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sixth, how to correctly handle the relationships between political and eco-
nomic aspects in our external relations. As long as we have a clear under-
standing of these six problems and adopt correct policies and vigorous
measures to solve them, we will surely be able to continuously make progress
in developing our foreign economic relations year by year, and we will surely
be able to give increasingly full play to the role of foreign economic rela-
tions in promoting our construction at home.
IV. How Should We Attract Foreign Capital?
This is a prominent problem in handling our foreign economic relations at
present. It is a problem which we urgently need to solve but which we have
as yet failed to solve.
Attracting capital from capitalist countries and areas in accordance with the
practical needs and capabilities of our country is a new task that we have
never tackled before. That is why this problem is especially important today.
At present we usually adopt the following three methods in attracting foreign
capital: First, attracting direct investment in joint ventures, joint
management, joint exploitation, compensation trade, processing and assembling;
second, striving to obtain long- or medium-term loans at medium or low inter-
est rates from foreign governments and international financial organizations
and all kinds of development funds and relief funds; and third, obtaining
ordinary commercial loans. At present, attracting direct investment has
become the most important method for China to utilize foreign capital. This
method has two advantages, .namely, that of granting the investor direct
interest in what they invest in and that of enabling us to better learn from
the advanced technology and management abroad. The successful experiences
in many countries have proved that these kinds of joint venture and joint
management enterprises themselves constitute economic and technical training
courses.
In order to effectively attract direct investment, we should have a set of
clear and definite correct policies. First, we must grasp all the large,
medium-sized and small projects at once while regarding medium-sized and
small ones as the main factor.. This is the way to get quick results.
Second, we should welcome all capitalists from abroad, including foreign and
Overseas Chinese capitalists and those from Hong Kong, Macao and Taiwan.
And third, we should to a certain extent relax our policy and allow these
capitalists to make profits. If we do not allow them to make money, we will
not be able to attract them and we will not be able to open up any possi-
bilities. We will not be able to keep up with the times if we do not act
bravely and wisely.
It is imperative to be prudent in using ordinary commercial loans. Since
they are loans, we have to repay the principal and the interest. Moreover,
the loans should be used in combination with domestic investment to form
complete sets of investment. Thus there will inevitably be limitations in
our utilization of foreign commercial loans. As for long- and medium-term
loans at medium or low interest rates, though we can feel more at ease in
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utilizing them, their availability is limited. A capitalist is, after all,
a capitalist. As long as he is a capitalist, he will always be pursuing
excessive profits. We should be especially careful in drawing lessons from
the countries that are heavily in debt.
In short, in order to emancipate people's minds, we should sum up our
experiences in a timely way and carefully foster model units. The experi-
ence in a successful model unit will facilitate the progress in all similar
units. Thus we will be able to open up broad prospects step by step.
V. How Are We To Correctly Import Advanced Science and Technology?
There are many ways to introduce advanced science and technology from abroad
and we should not restrict ourselves to a few ways. We have five kinds of
things to import in this respect: advanced equipment or components; new
and fine-quality materials; new principles, data, and know-how; new skills
and scientific rules of operations; and advanced management methods.
In importing equipment, we have committed some errors, but we have to make
a realistic analysis of these errors. Importing a few complete sets of
equipment was necessary not only in the past, but also is necessary now and
will be necessary in the future. Our errors in the past were mainly in the
following four respects: importing an excessive number of complete sets of
equipment; importing the same equipment more than once; importing equipment
without importing the technical information to operate the equipment; and
failing to study the technology of the imported equipment so as to under-
stand it and popularize it. Having learned lessons from the above-mentioned
errors, we will be able to gradually improve our work in this respect in the
future.
Regarding the problem of importing new and fine-quality materials, we should
first of all make efforts to produce these materials ourselves. We should
encourage our specialists and technicians and organize them into key task
teams to plunge into production practice, grasp the new production tech-
nology, increase the varieties of our products and expand the scale of our
production, and thus win glory for our country. However, we should also
fully reckon on a long-term policy of importing various kinds of raw mate-
rials, especially new and fine-quality materials that are necessary for our
construction. In order to grasp all kinds of new technology, all countries
in the world have to do so, including the developed ones such as the United
States, Japan and West Germany.
Regarding introducing advanced science, technology and management from
abroad, we should admit that we have failed to make sufficiently great
efforts to learn soundly and modestly from abroad. Now we should further
encourage our broad ranks of cadres, intellectuals and workers to have the
high aspirations of the Chinese people and turn the slogan of studying
science to become more capable and learning from experts into action. We
should strive to create a social mood of working and studying hard for the
prosperity of our country among all our party members, among the broad ranks
of our cadres, intellectuals and workers, and even among all the people
throughout our society and nation. This is a task of vital importance.
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In introducing advanced science and technology from abroad we should also pay
attention to the following two problems:
The first problem is that from now on, we must no longer import consumer
goods. Except under unified state arrangements, no departments or localities
are allowed to import consumer goods without authorization. The practices of
some departments and localities that are importing consumer goods without
permission are, in fact, very harmful and shameful activities that impair our
national industry. It is an important principle that we must pay close
attention to protecting our national industry. We must make the widest
possible use of those daily consumer goods that can be made and supplied by
domestic units. We should vigorously encourage and develop the spirit of
Comrade Zhou Enlai in refusing to wear any watches other than those that
are made in China. Only by encouraging our broad masses of people, and
above all our party members and cadres, to use Chinese-made consumer goods
can we protect our national industry and ensure its smooth development.
The other problem is that we must do a good job in managing foreign exchange
in all our central departments and in all the localities under the unified
leadership of the state. We must use our foreign exchange where it is
needed most. This means that we should use it for the technical reform and
the renewal of our industrial equipment. We should use it to import advanced
equipment and components that are necessary to develop new lines of indus-
trial production, new and fine-quality materials that are in short supply
in our country and that are urgently needed for processing goods for export,
certain agricultural means of production that our country cannot supply and
that are urgently needed in developing agriculture, and certain kinds of
consumer goods that our country indeed cannot supply and that are indeed
indispensable in the life of our people. Are we not acting against the
interests of our state and people if we waste the limited amount of our hard
earned foreign exchange in importing unnecessary consumer goods instead of in
importing equipment, technology and raw materials that we urgently need for
expanded production and for earning a larger amount of foreign exchange?
VI. How Are We To Energetically Promote Our Business of International Labor
Cooperation?
An excessive population-is a great problem facing us. On the other hand, our
abundant labor force is our country's greatest advantage. We not only have a
large amount of surplus labor in our countryside, but also some surplus labor
in our state-owned factories and mines. Moreover, every year a large number
of people enters the labor force. Therefore the total amount of our surplus
labor is very large. If we take the total number of surplus laborers as 100
million and suppose that every laborer is able to produce 500 yuan of products,
the total value of their products will be 50 billion yuan a year. The prob-
lem now is not that these laborers lack initiative in their work but that
they have no opportunities to play their roles. In order to find a way out,
we should strengthen our organizational work, open up as many possibilities
as possible. and be good at giving guidance. As far as we can foresee, in a
fairly long period to come, we should first speed up the development of the
diversified economy in our countryside and open up as many possibilities in
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the cities to provide more job opportunities. By so doing we will be able
to employ a large amount of the labor force and can, moreover, organize it
to produce goods for export. At the same time, we should find employment
for them throughout the world and conscientiously develop international
labor cooperation.
Our business of international labor cooperation has just begun. In 1981, we
sent over 17,000 laborers abroad to work on contracts. This number was too
small compared with our potential in this respect, compared with the demand
for such labor abroad and compared with the numbers of laborers that other
developing countries have sent abroad. Our construction undertakings have
shown a sharp competitive edge in contracting for construction projects in
the world market and these projects will in turn promote the export of our
building materials. From the above we can see that there are bright pros-
pects in developing international labor cooperation.
Labor cooperation is not restricted to contracting for construction projects
abroad. It can also be developed in the following three ways: processing
materials from foreign businessmen and processing in accordance with the
samples or drawings from foreign businessmen; establishing all kinds of
enterprises in foreign countries; and energetically developing tourism. It
is said by some foreigners that the pottery figurines of soldiers and horses
at Lintong are one of the eight wonders in the world and as a result 50,000
foreigners went there to see them last year. We have to improve our tourist
facilities and nationally fix the prices of the goods that we sell to tourists
in order to increase our sales by narrowing the profit margins. By so doing
we will benefit by opening up of more job opportunities and earning more
foreign exchange.
It seems that for a long time to come, our manpower will continue to be the
most competitive thing we have in the world market. We should give guidance
to the cities and provinces along our coastline in vigorously developing the
processing of materials provided by foreign businessmen. But we must pay
attention to exporting all the finished goods of our processing undertakings
and should not allow them to enter the domestic market. Otherwise, the
processing undertakings will facilitate the import of foreign goods.
VII. How Are We To Bring Chinese Products Into the World Market on a Still
Larger Scale?
China's current export trade is conducted on a too narrow and small scale.
We have nearly one-fourth of the world's population, but our share of the
world market is less than 1 percent, 0.9 percent to be more exact, which
ranks 28th in the world. Of course, in recent years we have to some extent
improved our work and have made relatively great progress in this respect,
but we should not exaggerate our successes.
There are both objective historical and subjective reasons why the scale of.
our exports has remained so small for more than 30 years. We should cer-
tainly not reproach ourselves too severely for our subjective errors, but we
must soberly understand this fact and strive to achieve a relatively great
development of our export trade within a short period of time.
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Regarding the relationships between exports and imports, there is also the
problem of breaking through the old conventions and opening up a new situa-
tion.
Generally speaking, exports are the basis of our foreign trade. It will
never do if we conduct our foreign trade in the manner of importing only
without exporting any goods. We have always been particular. about striking
some important balances, including the balance of international receipts and
payments. However, does this mean that in arranging our export and import
business that our imports should be restricted by the value of exports and
should not exceed our exports every year? No, this is not a good way of
putting it. Regarding this question, we should make all-round arrangements
by considering the whole situation, and we should correctly understand and
handle the dialectical relationships between exports and imports. That we
can only import after we have exported some of our goods and obtained some
foreign exchange to pay for our imports is only one aspect of the question.
We should see another aspect of the question, namely, our imports can in
turn promote our exports. For example, when we lack materials for producing
goods for export, we have to import the materials and then process and turn
them into goods for export. Only by so doing can we promote our exports.
Another example is that by introducing equipment and technology to increase
the output and improve the quality.of our products, we will be able to make
them more competitive in the world market. Thus imports will also promote
our exports. These arguments have long been fully proved by the successful
experiences in Japan and many other countries and areas. Could these coun-
tries and areas have survived if they had restricted the volume of their
imports to that of their exports? Therefore, promoting imports by develop-
ing exports and promoting exports by developing imports is a kind of dialec-
tical relationship. This relationship can only be rationally balanced and
reasonably handled in the course of time, perhaps 1 or 2 years.
What policies should we adopt and in what direction should we strive to
increase the export of our products? To answer this question, we have to
sum up the experiences in our history. In the past, the export of some kinds
of our products relied, to a great extent, on reducing their supply in our
domestic market. This was a natural practice during the 1950's because we
had very few things to export at that time and could not avoid doing this.
However, it is wrong to continue to do so now. Certainly, we can reduce the
supply of some high-grade goods and agricultural and sideline products at
home in order to export these goods. But even in doing this we should not
go too far and we should not base our hopes for increasing exports on this.
Otherwise we will bring about an acute shortage of consumer goods in our
domestic market, and thus we will not only force our people to reduce their
consumption but also make it impossible for the processing undertakings in
our country to develop smoothly. Moreover, a shortage of goods at home will
impair our people'.s initiative and will encourage speculative activities in
our domestic market. Perhaps some people will say that the United States is
also exporting a large amount of agricultural products. This shows that these
comrades do not understand the essence of the problem. Agricultural produc-
tion in the United States has already been carried out in the manner of
industrial production, and this is completely different from the agricultural
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production in the countries of the Third World. The extensive export of
agricultural products by the United States is in essence an action to dump
its surplus industrial products. On the other hand, when the Third World
countries sell agricultural products to developed capitalist countries in
exchange for their industrial consumer goods, they suffer the exploitation
of the rich countries because of the unequal exchange. We should not follow
the path of these Third World countries or we will commit mistakes.
What should we do in accordance with a correct policy? According to our
historical and current experiences, we should strive to make progress in
the following four directions:
First, energetically increasing our export of mineral products and vigorously
developing our export of nonferrous and rare metals. In the past, there was
an argument that strategic materials should not be exported. This view has
long been outdated. We should emancipate our minds in understanding this
problem. Of course, we should arrange our export of these materials.in a
planned manner and strive to get the most favorable terms in trading them.
Second, conscientiously increasing-our export of mechanical and electrical
products. In the past few years, we have made relatively rapid progress in
this respect, but there is still great potential to tap. We should mobilize
the millions of staff and workers in our engineering industry and encourage
them to raise the quality of their products and improve their technology in
order to enable their products to enter the world market and win prestige
for their motherland.
Third, further developing the export of light industrial products, textiles,.
various arts and crafts articles such as chinaware, cross-stitch work,
Chinese medicines, clothes, embroidery products and carvings.
Fourth, developing the export of our special local products such as tea,
Chinese medicinal materials, livestock products, natural products and
preserved fruits.
Of course, if necessary, we will have to reduce, to an appropriate extent,
the domestic supply of some daily consumer goods that are in short supply
both at home and abroad and that are much needed in the livelihood of our
people in order to increase their export.
We should adopt a series of policies and measures in order to develop our
export trade. For example, we should adopt proper policies. in support of
the development of our export trade, including going out to establish
marketing and servicing networks, making increased efforts to improve the
prestige of our products, pay attention to product quality, pay attention
to honoring agreements, solving transportation problems and port problems,
and bringing into full play the initiative of all departments and areas.
VIII. How Are We To Correctly Support the Third World?
Offering support to the peoples of all Third World countries in their just
struggles to defend their national independence, develop their national
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economies and oppose imperialism, colonialism and hegemonism is China's
international duty which it cannot shirk. Over the past 30 years and more,
China has done a lot of work in such aspects and played an important active
role in handling international affairs.
Most of the Third World countries are countries friendly with us and are
enthusiastic in opposing imperialism, colonialism and hegemonism. However,
their social and political systems and level of economic development differ
widely. Regarding the level of economic development of these countries,
most of them are poor or the poorest countries in the world and only a small
number of them are rich. In terms of per capita average national product,
the United Arab Emirates, Qatar and Kuwait rank as the top three in the
world, but they are Third World countries. There are also quite a few Third
World countries that are much richer than our country. Owing to the above-
mentioned complicated situation, in carrying out our policies of supporting
Third World countries including the policy of giving them economic aid and
promoting our economic contacts with them, we should make a clear distinction
of their different economic statuses and act accordingly.
One of the facts at present which cannot be ignored is that many of the
Third World countries are carrying out their economic construction on a
fairly large scale. This is the case in many countries in Latin America,
Africa, the Middle and Near East, the Gulf area and Southeast Asia. There
are bright prospects for our economic cooperation with them.
On the other hand, we should extend by every possible means material aid to
those poverty-stricken countries which are in difficulty and which are sub-
ject to external aggression and threats.
Our comrades must understand that supporting the Third World countries is an
issue of strategic significance and we should never neglect this issue. Now
many Third World countries hope that we will help them in their development.
They say that some of the First World and Second World countries have set up
factories in their countries to bully them and some are even carrying out
subversive activities there. These countries have also expressed their con-
fidence in China. It is reported that in the past few years,. India has
achieved good results in setting up joint venture enterprises abroad--mainly
in other Third World countries. In 1981, the number of such joint venture
enterprises was more than 400 and these enterprises were located in more than
40 countries in the world, of which more than 90 percent were in Southeast
Asia, South Asia, the Middle East and Africa. We should also do our best to
do something along these lines.
IX. We Should Correctly Understand Political and Economic Relations
In order to develop our foreign economic activities well, we should break
with some old conventions and set to right the relationships between politics
and the economy.
For a long time, we upheld the argument that economics must be subordinated
to politics. This argument is partly right but it fails to take every aspect
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of the problem into account. One of the basic viewpoints of Marxism-
Leninism is that economics and politics influence and act-on one another
but in the final analysis, politics is decided by economics. This is also
true in handling the issue of foreign relations. If foreign economic rela-
tions are developed in a satisfactory manner, it will facilitate the con-
tinuous development of political diplomatic relations. On the contrary, if
we fail to open up the prospects for developing foreign economic relations,
the development of political relations with foreign countries will inevitably
be obstructed and will never be able to be vigorous. The reason why many
countries carry out their economic transactions with one another despite
bitter political antagonism lies in the demand resulting from their economic
interests. Not only the capitalist countries but all countries have to take
into account their major economic interests in deciding their political
policies. This is a common phenomenon in the world.
In handling the relationships between politics and economics, we should
stress that stringent efforts should be made to master advanced science,
culture and management methods from other countries, but as for the influ-
ence of corrupt bourgeois ideas, we should resolutely oppose them. At
present, some people are adopting a diametrically different attitude. They
do not work hard to learn from the really advanced things abroad and even
completely neglect the study. On the other hand, they treasure the most
degenerate and the most evil things from capitalist countries and allow them
to become all the rage. We have sharply pointed out this problem for a long
time, to call the whole party and the people throughout our country to be on
their guard and to pay attention to correctly handling this problem. We
should strictly enforce the discipline that governs our external economic
activities and tell everyone who is engaged in external economic activities
his obligation to observe discipline. If anyone violates this discipline,
he will be punished in accordance with party discipline, administrative
discipline and the laws of the state. We should intensify our education in
patriotism and internationalism and teach all our party members, cadres and
citizens to understand that in our contacts with the outside world we should
resolutely oppose the corruption of capitalist ideology, safeguard our
national dignity and national interests and maintain the prestige of our
party and state.
China is implementing special policies and flexible measures in Guangdong and
Fujian Provinces, and has also established in the two provinces four special
economic zones, namely, Shenzhen, Zhuhai, Shantou and Xiamen. We should
intensify our education and make the cadres and masses in these provinces,
especially those in the special economic zones, really understand the true
implications of the special policies and the flexible measures. What is
special is special only when it is compared with what is unified, and what
is flexible is flexible only when it is compared with what is in accordance
with principle. Both specialty and unity and both flexibility and principle
are related with one another. The special policies are adopted under the
guidance of the unified national policy. Deviating from the four basic
principles and the socialist orientation is not a part of the special poli-
cies but is called degeneration. Our flexible measures can play flexible
roles only on the basis of firmly adhering to a principled stand. Casting
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away the communist stand, the party spirit and the party principles is not
called a flexible way of doing things but is called capitulationism. This
fundamental demarcation line must not be obscured. Through the development
of our foreign economic relations, the special policies and flexible measures
are primarily aimed at enabling us to do a better job. of boldly promoting
construction on our own initiative and under better conditions, and to
improve product quality, production techniques and management for the sake
of making new progress in two fields, namely, the management of economic
construction and the development of foreign economic relations.
X. The Profound and Lasting Significance of Expanding Foreign Economic
Relations
A major issue that our central leading comrades have been repeatedly mulling
over is whether we will be able to achieve material successes in our social-
ist modernization within this century. We have confidence in this. However,
taking our party as a whole, there are still some comrades who lack confi-
dence and a small number of people even doubt it. Naturally, as yet no one
can immediately foretell how great our material successes will be in our
modernizations and one can only give a rough estimation. If. we do our work
well, we may achieve relatively great success, but if not, we will perhaps
achieve only some small or medium successes. One of the critical issues here
is whether we will be able to really open up bright prospects over the next
few.years.
It is not easy to open up bright prospects. During the initial period of the
war of resistance [against Japan], Comrade Mao Zedong and Comrade Liu Shaoqi
laid stress on opening up bright prospects. As Comrade Liu Shaoqi so rightly
said, there is always a problem of opening up bright prospects during the
period of a turning point. This is a historical truth. In the modern
history of China, the Taiping Tianguo initially opened up bright prospects,
but there was a change in the situation after it took Nanjing and the bright
prospects were lost. When Doctor Sun Yat-sen led the revolution, the 1911
revolution opened up bright prospects, but this was brought to an end by his
death. The tortuous course of our history tells us that all those who want
to lead the historical trend and open up a bright prospect must first of all
have.a good insight and some courage and perseverance. Moreover they should
also have a complete set of correct strategy and tactics. Otherwise, it will
be impossible for them to open up bright prospects, and even once they have
opened up some prospects, they will not be able to maintain the good situa-
tion and win final victory. On the contrary, they will often suffer defeats
when victory is already in sight.
To open up bright prospects, our task in the economic field at present lies
chiefly in the following four closely connected links:
First, bringing our agricultural potential into full play and particularly
bringing about a great development of our diversified economy.
Second, bringing our industrial potential into full play and particularly
achieving success in reorganizing enterprises at an early date.
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Third, developing China's financial, monetary and commercial circulation in
a more healthy way.
And fourth, relatively quickly developing our foreign economic relations.
If in the coming 20 years, we quadruple the scale of our foreign trade
through developing our foreign economic activities, our total yearly trade
volume will be 160 billion yuan. This figure appears tremendous, but it
constitutes only 4 percent of the total yearly trade volume in the world at
present.
Lu Zhi, an outstanding statesman and a man well known for his abilities in
conducting financial transactions in the Tang dynasty, once said: "Losing
a large amount of money because of begrudging a small expenditure, this is
what a businessman will not do; and losing.a bright future prospect because
of pursuing immediate interests, this is what a man of common wisdom will
not do." These words were well said. Our comrades who are engaged in
economic work should be enlightened by these words. Businessmen who know
how to do business, who are good at increasing sales by narrowing their profit
margin and who really want to enliven their business will never act in the
manner of losing a large amount of money because of begrudging a small
expenditure. Even people of common wisdom can understand that it is wrong
to give up one's future bright prospects in pursuing one's immediate inter-
ests. This means that we should be good at having a thorough understanding
of the whole situation and at perceiving the future general direction of the
development of things, thus we will have a strategic insight and will be free
from shortsightedness.
Have we not always mentioned being of one heart and one mind? Being of one
heart means that we should think the same way and being of one mind means
that we should struggle together. As long as we really unite our strategic
thinking and really coordinate our tactical actions and thus think the same
way and struggle together, we will surely open up bright prospects. Of
course, this takes time. In the future, we should seek to be of one heart
by means of. exchanging opinions and conducting investigation and study and.
we should seek to be of one mind through the practice of fighting together.
In short, let us be of one heart and one mind in striving to open up bright
prospects so as to develop the cause of socialist modernization of our
motherland.
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ON BOURGEOIS LIBERALIZATION AND OTHER ISSUES
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 11-13
[Article by Hu Qiaomu]
[Text] Editor's note: Issue No 23, 1981, of this maga-
zine carried an article by Comrade Hu Qiaomu entitled
"Some Present Problems on the Ideological Front." After
the publication of this article, some constructive views
and suggestions were received from readers on this dis-
cussion. Therefore, before the article's publication by
the People's Publishing House, Comrade Hu Qiaomu made
some amendments and additions to.this article based on
the views and suggestions of readers. In the amendments
and additions, the expositions on the issues of bourgeois
liberalization and of the criteria for appraising lit-
erary and art works are very important. At present, we
are publishing them under the title "On Bourgeois Lib-
eralization and Other Issues." The parts published here
are based on the sequential order of the original article
with captions and annotations added. The fourth part is
not an amendment of the original article, but a new
annotation added by the author.
1. On the Meaning of Bourgeois Liberalization
Here I would like to briefly discuss the meaning of bourgeois liberalization.
Why do we call the social ideological tendency of opposing the four basic
principles which exists in our society at present the ideological tendency
of bourgeois liberalization? As everybody knows, the most important freedom
under the capitalist system is the freedom of capitalists to carry out
exploitation through the hiring of labor and the freedom of safeguarding
bourgeois private ownership. This is the most essential point about bour-
beois liberalization. The others include freedom of speech; publication,
assembly, and association; freedom of election; and freedom for two or more
parties to hold office in turn. In the final analysis, all these are derived
from the above-mentioned important freedom and serve it. Moreover, this
ideological tendency appearing in our society at present is characterized by
energetically publicizing, advocating and seeking the freedom of the
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bourgeoisie and trying to apply the bourgeois parliamentary system, the two-
party system, the election system, the bourgeois freedom of speech, publi-
cation, assembly and association, bourgeois individualism and nihilism to a
certain extent, bourgeois profit-before-everything ideas and actions, bour-
geois lifestyle and vulgar interests, bourgeois morals and artistic standards,
bourgeois speculation and manipulation, graft and embezzlement, extortion and
accepting of bribes, profiting at public expensed appropriating public
property, and worshipping and. fawning on the capitalist world to oppose our
political, economic, social and cultural life, and negate, oppose and sabo-
tage in principle China's socialist cause and negate, oppose and sabotage
the leadership of the Chinese Communist Party over China's socialist cause.
The social essence of this ideological tendency is to, consciously or uncon-
sciously, try and break away from the socialist path and practice the so-
called liberal trend of capitalism in the political, economic, social and
cultural spheres. Therefore, we call it the ideological tendency of bour-
geois liberalization. Clearly understanding and grasping the significance
and characteristics of this ideological tendency will help us to guard
against the misuse of this concept and help us to pay attention to drawing
clearly some important lines of demarcation. For example, if a party member
or a citizen criticizes a certain decision, a certain aspect of work or a
certain responsible person of a certain party organization, he is exercising
his legitimate democratic right and cannot be described as negating and
opposing party leadership or as seeking bourgeois liberalization. Also, the
academic freedom and literary creative freedom protected by our constitution
and law are essential to the development of science and art, and these are
completely different from the bourgeois liberalization mentioned here. No
doubt it is necessary to properly solve the relations between collective
planning and freedom of individual activity in scientific research organs and
artistic undertakings and organizations, but generally speaking, this also
does not involve the question of bourgeois liberalization. Conversely, if
anyone really wants to negate, oppose and undermine the socialist cause of
China; negate, oppose and undermine the leadership of the Chinese Communist
Party over China's socialist cause or try to replace socialism and the whole
socialist system with the liberal system of the bourgeoisie, we must wage a
struggle against him no matter how he defends himself.
2. An Analysis of "Unrequited Love" and "The Sun and the Man"
The reason why we criticized the film script "Unrequited Love" and the movie
"The Sun and the Man" based on it, is because they distorted the historical
development of practical life in our society. Actually, they negated social-
ist China and the party leadership and propagated the "freedom" of the
capitalist world. In both "Unrequited Love" and "The Sun and the Man," the
author and the film's director made use of contrasts and spared no efforts
to propagate the following view to the people: The "gang of four" represents
the Chinese Communist Party and the 10 years of chaos means socialism. In
socialist China, the Chinese people have not yet been emancipated and enjoy
no freedom at all. What they display are ignorance and superstition. The
party and the people have not won an historical victory in their struggle
against the "gang of four." Therefore, there is not the slightest bright-
ness and freedom in China and intellectuals deserve no better fate than
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persecution and humiliation. It seems that brightness and.freedom only exist
in the United States and the capitalist world, where the fate and freedom of
life enjoyed by intellectuals are the admiration of everyone. Such a view-
point is a typical manifestation of bourgeois liberal thinking. It is
obvious that if we had failed to criticize "Unrequited Love" and "The Sun
and the Man" and to educate people in our literary, art and ideological
fields and the whole party through criticism so that they could enhance
their capability to combat the tendency of bourgeois liberalization, it
would have been difficult to maintain the socialist orientation of our
literary and art cause and other causes.
3. On the Erroneous Tendency of Seeking Commercialization of Spiritual
Products
In our socialist society, just as do material products, most of our spiritual
products circulate as commodities. However, both the production of material
and spiritual products should have the basic objective or satisfying the
material and spiritual needs of the whole people. To attain this basic
objective, our departments in charge of spiritual production should not only
increase the quantity of the spiritual products, but do their best to enhance
quality. In other words, we should make every effort to ensure that every
spiritual product has patriotic, revolutionary and healthy ideological con-
tent and that it spiritually provides people with aesthetic enjoyment and
inspires strength so that they will strive to make progress. At the same
time, in spite of the fact that most spiritual products circulate as commodi-
ties, no spiritual product can break away from its spiritual objective and
be blindly commercialized. In a word, the practice of "taking money as the
be-all and end-all" is not allowed. If we depart from the basic objective
of satisfying the needs of the people and blindly seek commercialization, we
are liable to deviate from the basic principle of socialism. Then there
would be no intrinsic difference between the spiritual production of our
society and that of capitalist society. In capitalist society, both the
production of material and spiritual products is highly commercialized and
seeking profit is the sole objective. For the sake of making money, every-
thing can be sold. Even the intuitive knowledge of man, personal influence,
and living bodies of human beings can be "freely" sold as commodities. For
the purpose of making profits, much spiritual production may unscrupulously
produce various kinds of vulgar, philistine, decadent and reactionary
spiritual products to corrode the spiritual world of the people basically
without any interference. The commercialization and liberalization of such
spiritual products is one of the basic reasons why spiritual crisis occurs
and cannot be avoided in the capitalist society. At present, owing to
shortcomings in their management systems and erroneous guiding ideology,
.some of our departments in charge of spiritual production, such as the press,
editorial sections of publishing houses, and literary and art units have
followed the erroneous tendencies of seeking the commercialization of
spiritual products to a certain extent. They have defied the socialist
principle of meeting the needs of the people who are engaged in moderniza-
tion and failed to set high demands on publications and the ideological
content of artistic activities. Instead, they "have taken money as the
be-all and end-all" so that some spiritual products which surely exercise
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passive influence and corrode people's minds have prevailed in varying
degrees. Some people even advocated that our publication and cultural
undertakings should not be run by the state and society alone and that free
management by individuals should be allowed. In the cultural field, such
bourgeois liberal thinking and the spread of various erroneous viewpoints
will play a role which cannot but encourage the spread of the tendency of
bourgeois liberalization. This is a matter which merits our close attention
and should be truly corrected.
4. On the Problem of Criteria for Evaluating Literary and Art Works
We should evaluate literary and art works from the two aspects--ideological
content and artistic form. Generally speaking, the ideological content of
literary and art works involve a number of things, including political,
social, philosophical, historical, moral and artistic viewpoints, and so
forth. Obviously, these viewpoints put forth in literary and art works are
not abstract, but are connected with the truthfulness of life reflected by
artistic images, subject matters, plots and art. Therefore, we demand that
while evaluating the ideological content of a work, apart from analyzing its
political views and tendencies, we should also analyze its ideological con-
tent in other respects and its understanding of the value of life. Only thus
can we reflect the overall ideological content of the work. If we fail to do
so, we are liable to regard literary and art works as the diagrams of certain
political views. With regard to literary and art works with very strong
political tendencies, their ideological contents should not be restricted to
political tendencies alone, unless they do not possess the characteristics
of literary and art works in general. Therefore, we should not reduce the
ideological content of literary and art works to political viewpoints and
tendencies alone (there is no doubt that revolutionary political viewpoints
and political tendencies are absolutely important and necessary for a revo-
lutionary writer). We should not take the political criterion in isolation
as the first criterion for evaluating literary and art works. If we do so
in a coercive fashion, we are liable to do things in an oversimplified and
crude way in practice and obstruct literary and art creation and the healthy
development of literary and art criticism.
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A PROBE INTO A DEVELOPMENT STRATEGY FOR SOLVING THE FOOD PROBLEM--TALK ON
EXPLOITING PROTEIN RESOURCES AND INCREASING THE UTILIZATION RATE OF PROTEIN
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 14-19
[Article by Luo Jingba [5012 0513 2672]]
[Text] Editor's note: This is a good article well
worth reading. It is clearly integrated, coherent and
easy to understand. In the light of the research find-
ings of many scientists of our country and the actual
condition of our agriculture, the article expounds
penetratingly with simple language the thesis that
China must take the road of giving first priority to
plant protein and at the same time appropriately
developing animal protein so as to meet the nutri-
tional requirements of 1 billion people.
Thousands upon thousands of comrades who do agricul-
tural work and are related to agricultural production
have too little knowledge of science on the one hand,
and there is a lack of scientific and technical books
which can quench people's thirst for knowledge on the
other hand. Therefore, all of us have, in fact, a
scanty knowledge of such questions as why a man must eat
and what feasible methods we should take to further solve
the problem of feeding a population of 1 billion. It
seems to be a fantastic story which is hard to believe
but which, in fact, is a living reality. In this way,
how can blindness not emerge in our work? In order to
get rid of blindness and enhance our consciousness,
while earnestly implementing the various policies of the
CCP Central Committee, we must attach great importance
to the position and role of science and technology in our
socialist modernization program and conscientiously study
and master modern scientific and technical know-how. It
is hoped that the departments concerned, particularly the
planning and agricultural departments and food and feeding
industrial departments and the related scientific research
institutions will seriously consider and study the propo-
sals put forth by the article.
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People take food as everything. The problem of how to feed a population of
1 billion occupies a very important position in the development strategy for
science and technology, the economy and society.
Eating meets the man's needs for nutrition. Man's needs for nutrition are
diverse, but the most fundamental ones are for energy and protein. At
present, 80 or 90 percent of these two kinds of nutrition needed by our
inhabitants are derived from cereals.
According to a nationwide nutrition survey conducted by the health depart-
ment and its affiliated organizations under the instruction of the State
Scientific and Technological Commission in 1959 (Note: Since the 3d Plenary
Session of the 11th CCP Central Committee, considerable improvements have
been made in the nutrition of our people but the situation in which people
lack protein has not changed fundamentally), every day every member of the
urban and rural population absorbed on average 2,060 kilocalories of energy
and 57 grams of protein. With regard to the nutritional situation at that
time, the supply of calories was 10.4 percent less than the standard require-
ment and that of protein was 18.5 percent less. In the southeastern and
southwestern regions of the country, the people's principal food is rice,
so the protein content is less, constituting on average only about 60 percent
of the standard required supply. It can thus be seen that in improving the
people's nutrition, efforts should be made to solve the problem of protein.
To this end, the writer of this article would like to discuss some of his
tentative ideas on this problem.
The general method for the developed countries to solve the problem of
protein requirements is to substantially expand grain crops and to use 60 to
70 percent of the output of cereals as fodder to develop animal husbandry.
The average annual amount of grain per capita of countries such as the
United States, Canada, Australia and Denmark is above 2,000 jin and that of
the Soviet Union, Hungary, Romania and Yugoslavia is around 1,500 jin. Japan
is an exception. When Japan began to vigorously develop animal husbandry in
1973, the average per capita amount of grain was only 400 jin and it mainly
depended on imported fodder for a solution of this problem.
To reach the level of a per capita average of more than 1,500 jin of grain,
there must be more cultivated land. Our country has ?a large population but
limited cultivated land. Therefore, the development pattern of the developed
countries does not suit China's national condition.
Since the 3d Plenary Session of the 11th CCP Central Committee, there have
been substantial advances in China's agricultural production. Now every
person has on average 650 jin of grain. In accordance with the suggestions
of the Chinese Society of Physiological Science, to meet the needs of man's
body for thermal energy, it is enough for every person to have on average
360 jin of processed grain a year. So, in terms of nutriology, it is not
difficult to meet the needs of the whole population of the country for heat
energy. The problem lies in the need for protein.
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The cell of all organisms consists of various kinds of protein. Engels
pointed out: "Life is the mode of existence of proteins. This mode of
existence lies, in essence, in the constant self-renewal of the chemical
components of these proteins." ("Selected Works of Marx and Engels," Vol 3,
p 120 Protein is the main constituent of the human body. The growth and
the daily and hourly metabolism of human beings need to be continuously
replenished by protein. The various kinds of protein are chemical compounds
of macromolecule which are combined by more than 20 amino acids in accordance
with a certain sequence of permutation and space structure. The protein in
the human body can be resolved into various amino acids through the functions
of various enzymes, and the human body again forms the amino acids into
different proteins according to its different needs. There are eight amino
acids that cannot be synthesized by the human body; they must be absorbed
directly from food. These amino acids are called essential amino acids;
they are methionine, lysine, leucine, isoleucine, phenylalanine, theonine,
trytophan and valine. The remaining amino acids that can be synthesized by
the human body itself are not the essential amino acids in food. The human
body forms the protein of the human body in a way that takes a kind of amino
acid with the least content as the basic point and absorbs the various remain-
ing amino acids in proportion. Therefore, a so-called nutritional balance is
in fact a kind of "short-line balance," that is, of these eight amino acids,
any one which has insufficient content will interfere with the full utiliza-
tion of the remaining amino acids. These incomplete sets of amino acids
cannot be formed into the protein of the human body but can only produce
thermal energy. They are wasted, so to speak. Therefore, of the edible
proteins, whether the proportion of the content of various amino acids is
coordinated is a very important problem. The nutritive value of the proteins
whose various amino acids are in proportion is high and that of the proteins
whose various amino acids are in disproportion is not high. Therefore, in
terms of modern nutriology, there is both the question of quantity and quality
in the need of the human body for protein. Generally speaking, every person
needs on average more than 70 grams of protein a day. This is a quantitative
index. Along with this, the eight essential amino acids contained in these
proteins must be in a certain proportion and the proportion of any one of
them cannot be too little, that is, the nutritive value must be complete.
This is a qualitative index. Protein from animal sources generally contains
the eight amino acids needed by the human body, and particularly eggs and
milk, in which the proportion of the eight amino acids is coordinated, pro-
vide complete nutrition. This is the fundamental reason why many developed
countries attach importance to developing animal husbandry to solve the
problem of edible protein.
Exploit Protein Resources and Increase the Utilization Rate of Protein
In considering solutions to the problem of the need of our people for pro-
tein, it is necessary to give consideration to both quality and quantity and
to try by every conceivable means to exploit protein resources and increase
the utilization rate of protein.
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Raise the protein content of cereals and vegetables. Raising the protein
content of cereals through breeding work will help substantially improve
the protein content of cereals and the nutritional level of cereals in terms
of the quantity of protein. Take wheat for example. The protein content of
wheat in the areas north of the Huanghe River is about 13 percent and that
in the Changjiang River basin is 10 to 12 percent. The protein content of
the commodity wheat of the United States and Canada is, on the whole, 15
percent and the protein content of some new varieties that have started to
be popularized is 17 to 18 percent. In England, the protein content of the
latest experimental variety of wheat is 25 percent. It can thus be seen
that the potential for raising the protein content of cereals is fairly
large. In the past, in our breeding work, one-sided emphasis was put on
output targets at the expense of the nutritive value of crops and of whether
the crops suited the people's tastes. In the future, more attention must be
paid to the nutritive value of any new variety and to making a quantitative
anslysis, and especially making an analysis of the protein content and the
composition of amino acids. This requires that agricultural scientific
research departments and educational departments enhance the building of a
specialized profession of nutrition.
With regard to the food structure of our inhabitants, vegetables are second
only to cereals. By and large, the protein content of vegetables is not
high, but the protein content of fresh mushrooms is about 3.5 percent, much
higher than that of common vegetables (the protein content of Beijing
cabbage is 1.1 percent and that of radishes is 0.6 percent). In the process
of growth, mushrooms can use the cellulose of plant straws and seed shells
for nutrition. None of these things can be digested and absorbed directly
by the human body. Therefore, culturing mushrooms by using wood-wool,
cottonseed shell and cow dung as a culture medium is an important way to
increase the sources of protein. At present, the world annual output of
mushrooms is over 1 million tons. In the United States, some people predict
that fungus food will become one of the main foodstuffs in the 21st century.
Many units in the cities of our country have begun to produce various edible
fungi. The annual output of edible fungi of Fujian Province is 40,000 tons
and that of Shanghai is 6,000 tons. They are mainly for export. The cul-
turing of mushrooms must be done under certain conditions, but it requires
comparatively little investment and promises fairly quick. results. It is a
kind of labor-intensive and intellect-intensive production, and is in a
position to provide jobs for quite a few youths waiting for employment.
Some people say it is a kind of "urban agriculture" which has a great future.
The underground civil defense projects in many cities of our country can be
used for producing mushrooms. However, at present the output of the cultur-
ing of mushrooms is not high and the production costs are relatively expen-
sive. This problem needs to be solved through scientific research.
In developing a diversified economy in the rural areas, it is imperative to
make the exploitation of protein resources as an important goal. Special
attention should be devoted to the utilization of hills, lakes and ponds
as well as sea mud and to the planting and gathering of crops and fruits
which have a rich protein content, such as Chinese chestnut, walnut, oil-tea
camellia, mudou [2606 6258], shiny-leaved yellowhorn, olive, water caltrop
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and kelp. Most of the seeds of oil-bearing crops have both a high fat and a
high protein content. Developing these plants will provide people with 'the
most needed protein and fats. This can kill two birds with one stone.
Particular importance should be attached to it.
Revive the acreage planted to soybeans and develop the soybean food industry.
Soybeans contain about 40 percent protein and around 20 percent fat. Of the
amino acids in the protein of soybeans, besides the fact that the methionine
content is relatively poor, the content of the remaining essential amino
acids is relatively high. Therefore, soybean is a grain crop with high
protein and high fat content, and is a crop which has a relatively complete
nutritive structure.
Our country was the origin of soybeans and is called "the land of soybeans."
China's acreage under soybeans in the 1930's totaled 220 million mu. Both
the output and export volume of soybeans constituted 90 percent of the world
total. This figure began to decline in the 1940's but gradually increased
after the founding of the PRC. The soybean output in 1956 was 20.4 billion
jin and the acreage under soybeans in 1957 was revived to 190 million mu.
However, by the 1960's and 1970's, as the result of one-sidedly concentrating
on grain output and denouncing soybeans as a "low-yielding crop," the acreage
under soybeans and the soybean output had dropped by a big margin. The
acreage under soybeans dropped to a minimum level of 100 million mu and the
minimum annual output was 14 billion jin. Besides, precisely at this time,
the world output of soybeans increased far more rapidly than that of other
grain crops. The total world soybean output in 1949 was only 24.8 billion
jin, but by 1979 it had increased to 188.3 billion jin, an increase of 6.6
times over the 1949 figure. The soybean output of the United States in the
same period increased by 9.7 times and its acreage under soybeans rose from
several million mu to 440 million mu, constituting over 14 percent of the
acreage under grain crops, and its total output was 121.7 billion jin.
Brazil began to import soybean seeds from our country in 1960. In 1970, its
acreage under soybeans was no more than 20 million mu and its annual output
was 3.1 billion jin, but in 1977 its acreage under soybeans was developed to
100 million mu and its annual output was 25 billion jin, thus becoming the
second largest soybean-producing country in the world.
Is soybean really a "low-yield crop"? Calculated in terms of output alone,
the output of soybeans is really lower than that of other grain crops (for
instance, in 1980 the average per mu yield of paddy rice was 550 jin; that
of corn, 410 jin; that of wheat, 250 jin; and that of soybeans, 146 jin).
However, judged from the point of view of nutriology and economic results,
soybeans can by no means be called a low-yield crop. Compared with soybeans,
the protein content of corn is usually around 8 percent. The protein of
1 jin of soybean is equal to the protein of 5 jin of corn, and furthermore
the quality of soybean protein is far superior to that of corn. According
to the calculations of scientists, the application of every 1,000 kilo-
calories of energy to 1 mu of land sown with corn will achieve an additional
increase of 2.69 kilograms, and the application of the same quantity of
energy to soybean production will achieve an additional increase of 1.43
kilograms. The increased amount of soybeans is not as large as that of corn
25
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but, calculated in terms of protein content, the protein content of corn is
only 215 grams while that of soybeans is 514.8 grams. The protein content
of soybeans is substantially higher than that of corn. According to data
of the United States, the beef provided by 1 hectare of land sown with
fodder grass can only meet the protein requirements of one person for 77
days; that provided by 1 hectare of land sown with wheat, for 877 days; and
that provided by 1 hectare of land sown with soybeans, for 2,224 days.
There is a lack of protein in our people's nutrition, so more importance must
be attached to soybean production. For this purpose, we propose that before
1985, China's acreage under soybeans be restored to the level of the 1960's,
that is, 150 million mu, and that by 1990, to the level of the 1950's, namely,
200 million mu, comprising about 10 percent of the acreage under grain crops.
China has always attached adequate importance to the planting of grain crops
rather than soybeans. The cultivation of soybeans has been invariably
extensive. Therefore, the potential for increasing the yield per unit area
is enormous. At present the average world per mu yield of soybeans is 200
jin. If we can reach this level by 1990 through ameliorating varieties and
improving cropping techniques, then our country will be able to produce 40
billion jin annually and to reach an average of 37 jin per person, the level
we attained in the 1950's. China's commodity base of soybeans is.in the
northeast. There is still enormous potential for increasing production
there. Soybean is a hydrophilous crop. There are bright prospects for
rotating soybeans with corn, cotton and other crops in the Huanghe River and
Huaihe River basins; for interplanting soybeans with dry crops, such as corn
and tea, in the south and for dibbling soybeans in parcels of land scattered
around fields. This will both boost production and improve the soil through
the fixation of nitrogen resulting from soybean root-nodule bacteria, thus
contributing to putting an end to the decline of soil fertility. Therefore,
gradually restoring and developing soybean production is an important
measure for achieving many things at one stroke.
China has a fine tradition of processing soybeans. It has more than 100
varieties of bean products and fermented bean products. Most of them are
conducive to raising the nutritional value of soybeans. At present a "craze
for bean curd" has arisen in the United States and other countries in the
West, a craze in which people like to eat Chinese-style bean products. Over
the last few years, along with the advances in food-processing techniques
and under the influence of modern nutriology, some countries, such as the
United States, have been substantially developing the production of soybean
protein. For example, there are nonfat soybean protein, enriched soybean
protein, separated soybean protein, tissue soybean protein and others.
Apart from the nutritive structure of soybeans, such as the inhibitor of
trypsin, haemagglutinin, saponin, and gas-producing factors of intestines
and stomach, these processed products increase nutritive value. They are
widely mixed into meat, drinks, bread and refreshment products, artificial
cream and other foodstuffs. According to statistics, at present in the
world there are more than 12,670 kinds of foodstuffs which contain soybean
protein. In the United States, every year 1.4 million tons of soybean
protein are added to 16 kinds of foodstuffs; In order to raise the nutri-
tive value of soybeans, we must carry on the traditional processing tech-
nology of soybeans and at the same time vigorously develop the soybean food
industry.
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Nearly half of the 15 billion jin of soybeans China now produces every year
is used for extracting soybean oil. In the past, large quantities of soy-
bean protein, which could have been digested by man and animals, became
compounds which could not be digested and absorbed because of the improper
use of heating in the process of extracting oil both by. indigenous methods
and machines. There were similar cases in the process of extracting oil
from peanuts, cottonseed, rapeseed and others. This was a great waste of
protein resources. It is necessary to be resolute in transforming our fat
industry and to adopt advanced dipping processes, and while extracting fat
we must try our best not to destroy protein. There are some problems calling
for further study and solution in the choice of solvents, precipitation,
deodorization and other processing techniques. In our country at present,
most of the bean dregs left over after extracting oil are used as fodder.
It is imperative to find new ways to use some of them directly as raw mate-
rials for producing foodstuffs, such as synthetic meat, bean powder, bean
curd, and salted and fermented soy paste.
Revive and develop compound foods, such as mixed-grain flour, nutritious
bread and fortified food. As we mentioned above, the nutritive value of
protein is determined by whether the amino acids of which it is composed
are in proportion. At present the main sources of protein for our people
are cereals. In accordance with the principle of "short-line balance," in
the protein of cereals, the lysine content is exceedingly scarce, which
affects the role of the remaining amino acids. Lysine became the first
amino acid which restricted the nutritive value of cereal protein. The
recent experiment of the Nanning Maternity and Child Care Hospital in
Guangxi shows that food mixed with two permils of lysine resulted in marked
improvements in children's weight, height and health conditions compared with
the control group in the experiment. It is known to all that in soybean
protein, lysine is relatively plentiful. Mixing a certain amount of soybean
powder into corn by utilizing the principle of nutrients complementing each
other can raise nutritive value. People in the north have the habit of
using mixed-grain flour. We must adopt measures to revive this tradition in
grain processing. This is the most practical and effective way to increase
the utilization ratio of plant protein. In our country the nutritive value
of the composition of mixed-grain flour is as follows:
Mixed flour Mixed flour Mixed flour
I II III
Kaoliang (nutritive value of
protein: 56)
Corn (nutritive value of pro-
tein: 60)
Millet (nutritive value of
protein: 57)
Soybean (nutritive value of
protein: 65)
Nutritive value of protein of
mixed-grain flour
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Although the nutritive value of soybean protein is relatively high, the
methionine content of soybean protein is still relatively low compared with
animal protein and the protein from milk resources. Therefore, to bring
into full play the nutritive value of such plant proteins as soybean, it is
necessary to add a certain amount of methionine. Modern science enables the
synthesis of the eight essential amino acids through biological methods such
as fermentation and chemical synthetic methods. China's problem of producing
these amino acids for medical use has now been basically solved. China has
experimental factories with a total production capacity of 3,000 tons of
edible lysine and lysine for fodder per year. However, other problems, such
as the purification of these amino acids, have not been completely solved.
Methionine has been produced on a small scale, but its price is nearly 10
times higher than that of imported methionine. We hope that the state will
organize its forces to tackle key problems in scientific research in this
respect and be determined to promptly set up several big factories each with
an annual 10,000-ton plus production capacity in the period of the seventh
5-year plan. By so doing, we can substantially raise the nutritive value of
our existing plant protein. This would be a major step in solving the prob-
lem of feeding a population of 1 billion. It needs an investment of only
several hundred million yuan but promises fairly great economic returns. So
we must make early preparations for it.
Develop the feed industry and improve the level of production of animal
husbandry. According to study and research, the portion of solar energy
transferred and utilized by crops in the process of their growth which can
be directly utilized by the human body is only about 25 percent. It is only
through animal husbandry that the remaining 75 percent (straw, stems and
leaves as well as bran and others) can be transformed into animal protein,
fat and so forth which can be utilized by the human body (of these materials,
such as straw as well as stems and leaves, which constitute the 75 percent of
energy, animals can digest and utilize only 25 percent and a considerable
part of the remaining 75 percent becomes organic fertilizer which will become
useful material to the human body through transformation by plants). This
is the fundamental reason why we must give equal priority to both agriculture
and animal husbandry and make strenuous efforts to develop animal husbandry.
In developing animal husbandry, it is necessary to pay attention to
nutriology. The needs of animals for nutrition are the same as humans, that
is, mainly energy and protein. Energy fodder and protein fodder constitute
the principal part of fodder. Judged by a comprehensive survey of our fodder
supplies, in the past importance was attached one-sidedly to the supply of
energy at the expense of the supply of protein. The failure to ensure a
proportionate supply of protein made animals unable to fully utilize the
energy provided and thus resulted in the high "ratio between fodder and meat"
(that is, several jin of fodder producing 1 jin of meat) in China's animal
husbandry. High costs interfered with its development. For instance, in the
past, in breeding pigs, we one-sidedly concentrated on the amount of grain and
green fodder used for feeding pigs, but neglected the amount of energy and
protein contained in the grain and green fodder and the proper proportion
between the two. In the 1960's and 1970's, for a while we went in for
saccharified pig feed in a big way, but there remained the problem of energy
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fodder. One of the important reasons why our pigs provide more fat meat
rather than lean meat is, apart from the factor of the breed of pig, that
we have insufficient protein fodder.
In order to give full play to the role of fodder grain and green fodder, it
is necessary to try in every possible way to exploit protein fodder resources
and to enthusiastically develop mixed feed, compound feed and whole feed.
Such being the case, we must develop the feed industry in a planned and
vigorous way in the light of local conditions. This is the road we should
follow in accelerating the development of animal husbandry and increasing
its economic return.
How should protein fodder resources be exploited? There is a lot we can do
in this respect. They are mainly as follows:
1. Fully utilize various existing cakes and dregs. Our fat industry pro-
duces nearly 20 billion jin of various cakes and dregs a year, some of which
generally contain 20 to 50 percent protein. However, at present more than
half of the cakes, such as rapeseed, peanut and cottonseed cakes, are used
directly as manure. In our country, it is impossible to completely refrain
from using the various cakes and dregs as manure for the time being, because
some cake fertilizers must still be applied to some industrial crops. How-
ever, it must be realized that by not first using most of the cakes and
dregs as feed and then using the waste of poultry and livestock as manure
we are wasting protein resources. We must gradually change this situation
and strive to make more cakes and dregs than we have at the moment so that
they become a source of protein feed in the feed industry through simple
detoxification processes.
2. Make full use of leftover bits and pieces, such as animal blood, flesh,
bones, skin and pupas, from the meat-processing factories, slaughterhouses,
fish-processing stations, and filatures of the cities and the countryside
and turn them into various kinds of protein powder through processing.
3. Make use of industrial liquid waste and waste heat to develop unicellular
fodder protein from fodder yeasts and nitrogen-fixing blue-green algae.
4. Produce lysine, methionine and various fodder vitamins and biotins and
use them as the nutritive additives of feed so as to increase the utiliza-
tion ratio of various kinds of protein of the feed industry.
5. Strengthen the study of mycelial protein, which uses petroleum and
natural gas as raw materials, and develop the petroleum protein industry
step by step.
To sum up, we should take the road of giving first priority to the develop-
ment of plant protein and at the same time developing animal protein. This is
a development strategy for solving the food problem, a strategy which suits
China's national condition.
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The road of giving priority to the development of animal protein which is
being taken by the developed countries is in fact a road of using plant
protein as feed to meet the nutritional requirements of human beings through
the intermediary of transformation by livestock and poultry. This inter-
mediary transformation is fairly inefficient (Note: According to study and
research, the transformation rate of pigs is 18.3 percent; that of cows, 12.1
percent; that of milch cows, 25.3 percent; that of layers, 21 percent. That
is to say, out of every 100 jin of plant protein, only about 20 jin can be
transformed into animal protein and the remaining 80 percent can be used only
as manure) and causes a lot of waste. This should not be taken as a model by
our country, a country which has a large population but limited usable land.
Compared with plant protein, animal protein contains relatively complete
nutrition. However, under the guidance of modern nutriology, we can develop
compound food by mixing several plant proteins which contain different pro-
portions of amino acids, thus enabling the plant proteins to complement each
other and maintain a nutritional balance. We can develop fortified food,
produce lysine and methionine, which plant protein lacks, with industrial
methods and mix them into various plant proteins according to the proportion
of amino acids in eggs and milk so as to raise their nutritive value.
The road of giving priority to the production of animal protein which is
being taken by the developed countries provides relatively good nutrition
but also has side effects which easily give rise to diseases, such as
coronaries and obesity (Note: These side effects have become an important
topic of social concern in the United States and Western Europe. Many
scientists put forward plans for food structure which are aimed at reducing
animal protein and increasing plant protein. Formerly, Japan's food struc-
ture was relatively similar to that of China. But over the last 2 decades,
the food structure.of Japan has advanced in the direction of giving priority
to the development of animal protein, a road similar to that taken by the
developed countries. According to recent investigations in Japan, 10 percent
of Japanese youngsters suffered from high cholesterol. The shortcomings of
this food structure can thus be fairly easily seen). Our country has a
tradition of putting a vegetarian diet in first place. For this reason, we
have basically avoided these side effects. However, incomplete nutrition of
plant protein will also interfere with the improvement of the people's
constitutions. The road we have proposed can simultaneously overcome the
shortcomings in these two aspects. Of course, we do not in the least mean
that we can neglect to expand the production of animal protein and the
development of the production of animal husbandry and fishery. No mis-
understanding is expected on this point.
To take this road, we must judge the value of various crops in accordance
with nutriology rather than the output of the crops, and readjust the
overall crop pattern and the whole agricultural structure of our country in
a planned and orderly way. To take this road, we must mobilize the indus-
trial and agricultural forces and the urban and rural forces to give equal
priority to both industry and agriculture, to combine the city and the
countryside, and to unite in our efforts to solve the food problem.
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This road has opened up good prospects for solving the food problem of our
country. Before the early 21st century, in view of the significant break-
throughs in science, such as biological fixation of nitrogen, genetic engi-
neering and the synthesizing of protein, it will be possible to further
improve the protein nutrition of the inhabitants of our country.
CSO: 4004/34
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RECTIFY THE IDEOLOGICAL LINE, DEVELOP CONSTRUCTION IN MOUNTAIN AREAS
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 20-24
[Article by Tie Ying [6993 3841]]
[Text] Within Zhejiang Province there is an endless chain of rolling hills
and a wide expanse of mountainous terrain, all of which are rich in
resources. But, compared with the plains, the mountain areas are relatively
backward both economically and culturally.
Since the 3d Plenary Session of the 11th CCP Central Committee, construction
in Zhejiang's mountain areas has taken a turn for the better. A marked
change has taken place in the poverty-stricken and backward appearance of
these areas. After more than 3 years of hard work, grain output in the
areas has increased. Diversified economic forms have vigorously developed.
Forestry production has achieved a definite degree of recovery and progress.
Many communes, production brigades and production teams have begun to show
signs of affluence. In 1981, compared with 1978, in the 26 counties of the
mountain areas of the entire province, the gross output value of agriculture
increased by 23.4 percent; the area planted with tea increased by 200,000 mu
and the gross tea-leaf production increased by 51 percent; nearly 100,000 mu
of land were added to the mulberry fields and the gross silk output in-
creased by 60.8 percent; over 98,000 mu of land were added to the orange
orchards and the gross orange output increased by over 3 times; the number
of pigs, cattle and sheep increased respectively by 17, 3, and 14 percent,
and the number of rabbits bred increased by 1.8 times; the gross industrial
output value of the communes and production brigades or teams increased by
1.5 times; the installed generating capacity of small hydropower units
increased by 58 percent; and 356 mu of land were afforestated. As a result
of the development of diversified economic forms, the total quantity of
state purchases of agricultural and sideline products increased by 57 per-
cent. The standard of living of commune members was greatly improved. The
per capita grain ration apportioned by the collectives increased from 525 jin
to 567 jin; the per capita income distributed by the collectives increased
from 79 yuan to 96 yuan; and, with income from household sideline production
added, the per capita income amounted to 165 yuan and was as high as 280 yuan
in some of the more affluent counties.
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Reviewing the actual practice in the last 3 years and even over the past 20
years and more, we have come to fully realize that in order to develop con-
struction in the mountain areas, the most basic conditions are that the
ideological line must be rectified, that understanding must conform with
reality, that guidelines and policies must also conform with reality, and
that we must work in strict accordance with natural laws and economic laws.
I. Correctly Understand and Handle the Relationship Between the 70 Percent
Mountains and 20 Percent Farmland; Put Construction in Mountain Areas in a
Strategic Position
Zhejiang Province has a total area of 100,000 square kilometers of which
mountain areas comprise about 70 percent, the plains areas about 23 percent
and inland waterways about 7 percent. We generally speak of this situation
as "70 percent mountains, 10 percent rivers and 20 percent farmland."
Unfortunately, a great proportion of the mountain areas is economically
backward and can produce little wealth or affluence. Take the 26 mountain
counties for example: The gross value of their agricultural and industrial
output in 1978 was only 16.67 percent of that of the province as a whole.
Formerly, many people considered the mountain areas as a burden and as a
factor slowing the economic development of the whole province. Influenced
by this idea, they frequently focused their attention on the plains,
loosened their leadership work over the mountain areas and neglected con-
struction in these areas. Some comrades in leadership organs seldom went
to mountain areas to investigate or to do research, and many of the poli-
cies and measures were not in conformity with the realities of the mountain
areas. Some comrades working in the mountain areas even "failed to see the
mountains when opening their doors and did not care for the mountains even
though they lived there." This was a one-sided and static viewpoint, and
was the main ideological reason for the failure to develop construction in
the mountain areas.
After the 3d Plenary Session of the 11th CCP Central Committee, in dis-
cussing the problem of developing a true standard which links together
realities and summing up past experiences and lessons, we brought up the
problem of studying anew the provincial conditions of Zhejiang. We empha-
sized the need to adopt a viewpoint calling for all-round development in
treating the realities of the province. Everybody felt that despite the
length of time we have worked in this province, some for a few years and
some for over a decade, or as many as several decades, we still lack a
clear understanding of Zhejiang's realities and its natural conditions and
resources. This being the case, we are unable to offer correct guidelines
or adopt appropriate measures. We cannot display our talents or evade
shortcomings. We are bound to meet with setbacks. We have to take a zig-
zag course and thus waste time and miss chances. We have been saying all
along that Zhejiang Province is a "land of plenty and the kingdom of wealth
and affluence." Naturally this is all true and reflects Zhejiang's special
attributes and superior features. At present, people of the entire province
depend on the plains as the source of their food and clothing while the
state also counts on the plains for part of its revenue. Hereafter,
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construction of the four modernizations in Zhejiang will have to depend on
bringing the advantageous conditions and active role of the plains into
full play. However, to stress the plains alone is not sufficient. The
plains have a big population but little land. Comparatively speaking, the
ground left unused is far less than that in the mountain areas. At the same
time, economic construction in the plains cannot be separated from the
mountain areas. The mountain areas must be depended upon for the supply of
certain essential raw materials for industry, for construction materials, and
for other important resources and materials. At present, very little of the
aboveground or underground resources of the vast mountain areas has been
opened up or utilized. In counties in the lower productive category, the
output value per mu of hilly land ranges from 1 to 2 yuan while in counties
in the higher productive category it is 6 to 7 yuan. The province has
8 million mu of hilly land suited to forest development. If a third of
this land is subjected to intensive farming, then its gross output value
would be equivalent to that of the present 27 million mu of cultivated land
in the whole province. This shows that the hidden potential of mountain
areas far surpasses that of plains. Mountains, rivers and farmland depend
on each other and condition each other to form an integrated whole. The
waterway system in Zhejiang Province has the defects. of insufficient water
at the source and too rapid a water flow,. Because of this, the heavy ero-
sion of soil and silt from the upper reaches of the rivers seriously damages
farmland along the lower reaches. At present, many rivers have become more
.shallow and their navigable parts have been shortened. Much silt has
collected in water reservoirs. A great proportion of farmland suffers from
the threat of drought or waterlogging. All these things are the dire con-
sequences of the prolonged neglect of construction work in the mountain
areas.
Having rectified their ideological line, the provincial party committee and
the provincial people's government adopted a series of measures to strengthen
construction in the mountain areas. One of the measures is to make clear to
all the idea of making construction in the mountains a strategic focal point
in the construction of the four modernizations in the whole province and
treating it as a promising factor in enriching the province. The party com-
mittees and people's governments at various levels have been requested to
pay due regard to both the mountains and the sea. The second measure
adopted is that organs ranging from the provincial to the county level have
on various occasions conducted large-scale investigation of the mountain
areas. In 1980 alone, throughout the province some 30 investigation teams,
accompanied by the leadership, went to the mountain villages to conduct
investigation and research. They produced several scores of investigative-
reports touching on conditions in the areas, analyzing them, and making
recommendations. Still another measure adopted was the convening of two
provincial work meetings on mountain areas. The meetings specially dwelt
on the significance, the guidelines and the policy for construction in the
mountain areas. Following the second work meeting on mountain areas, the
province organized over 20,000 cadres to proceed to the communes and produc-
tion brigades in the areas to establish authority, to issue permits and
licenses, and to enforce the production responsibility system in the
mountain and forest areas. The fourth measure taken was to take various
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steps to aid the development of the economy of the mountain areas such as
providing guidance, economic policies and financial and material support.
II. Correctly Understand and Handle the Contradiction Between Forestry and
Grain; Determine the Production Guidelines for the Mountain Areas According
to Local Conditions
For a prolonged period of time the poverty-stricken and backward appearance
of the mountain areas has not been changed and the practice of deforestation
and reclamation has not been checked. What is the reason for this? In the
past, we simply ascribed this phenomenon to the struggle between the two
classes and the two lines but failed to look to the production guidelines
to find the reason. Just what should be the guidelines for production in
mountain areas? For a long time there has been much discussion on this
topic, but so far a correct answer has not been found. In the investiga-
tion of mountain areas it has been found, in all places, that the contradic-
tion between forestry and grain constitutes a practical problem that cannot
be avoided. In the past, we neglected the realities of mountain areas. We
copied in full the slogan of the plains to take "grain as the key link." In
some localities, the unrealistic suggestion was made that "peasants in the
mountains should not eat any commercial grain" and that "in several years'
time we would be able to lift off the 'cap' of grain deficiency." In the
process of examining, appraising and comparing the performance of peasants,
only the quantity of grain output was taken into consideration, while the
quantity of output of mountain and forest products was ignored. In this
way the-cadre masses in the mountain areas were subjected to great pressure.
Manpower and material resources in the mountain areas were not used in the
mountains, or in afforestation, or in promoting the development of the
processing of the special products of forests. Rather, they were used in
opening up mountains and reclaiming farmland, which, in effect, only
"bothered the people and wasted public funds." Such conditions as weather,
sunshine, soil composition and water resources in mountain areas were totally
ignored, and the "triple cropping" system and planting of "double-crop" rice
were uniformly practiced. In arranging production tasks, the guidance given
was not in accordance with different categories or localities and scant
attention was paid to work in mountain areas. Quoting cadres in the mountain
areas, "Water buffaloes and oxen basked side by side in the sunshine." This
guidance policy, which obviously violated objective laws, has had serious
consequences. In some localities, reclamation work was carried out on
mountain tops and the mountains were denuded of perfectly good forests. This
caused serious soil erosion, closed forest production channels, and dampened
the enthusiasm of the masses.
Since the 3d Plenary Session of the 11th CCP.Central Committee, we have
summed up the experiences and lessons derived from these sources and come to
the understanding that one logical premise for transforming this malignant
-cycle to a benign cycle in production in mountain areas is to pay due atten-
tion to the contradiction between forestry and grain and to correctly handle
the relations between developing grain production and developing the economy
in the mountain areas. People in the mountain areas must fill their stomachs.
Hence, grain production should be developed. But how can this objective be
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achieved? If we disregard the realities of mountain areas and one-sidedly
stress the principle of "taking grain as the key link," and if we squeeze
out the special products of mountains and forests, disrupt the ecological
balance of mountain areas and adopt a farming system not in conformity with
the realities of the localities, or, in other words, adopt a guideline of
subjectivism, then the result will be_barren hills, poor soil, poverty-
stricken collectives, empty family coffers and a still lagging grain output.
The years will roll by, but the situation of dependence on resold grain will
stubbornly remain. People in mountain areas not only do not have money to
spend but their grain ration is also very low. Before 1978, all those
people in our province receiving an average income distribution from the
collectives of 50 yuan or less and an average per capita grain ration of
450 jin or less, lived in counties in mountain areas. Commencing in 1979,
we made it perfectly clear that, in general, communes and production brigades
in the mountain areas should take forestry as their major profession but,
since conditions vary, those suited to forestry should adhere to forestry,
those suited to agriculture should take up agriculture, and those suited to
animal husbandry should take up animal husbandry. To give people in mountain
areas a chance to recuperate, reclamation was gradually stopped and affores-
tation.was gradually resumed. The provincial people's government gave
several hundred million jin of grain to be used for reducing the agricul-
tural tax, reducing the state purchases and increasing sales, and subsi-
dizing afforestation. Concerning grain production in mountain areas, the
former uniformity in farming was abandoned and in its place a farming system
suited to the special features of mountain areas was adopted. In some
localities, the triple-crop system was changed to the double-crop system,
while in other localities the planting of rice in paddy fields was changed
to the planting of dry grain. The planting of beans and peas, potatoes,
corn, sorghum, millet and other miscellaneous grains was promoted. Thus,
the road of grain production became increasingly broad. In farmland capital
construction, emphasis was put on transforming low-yield farmland. The
result of this work was that grain production increased. The majority of
mountain areas reported an increase in production every year, and the extent
of the increase was much greater than that on the plains. With the help of
"support grain" from the state, the grain ration and fodder grain of the
people in the mountain areas were both generally increased. Qingtian County
in the mountain area of southern Zhejiang Province used to feel a heavy
burden in relation to grain. All along it has tried to remove the "cap" of
grain deficiency but grain production never increased. Every year the county
had to ask for an increase in "unified sales grain." In the last 2 years,
they adjusted their production guidelines to local needs. They fully dis-
played the superiority of mountain areas and, as a result, forestry and
diversified economic forms developed while grain production also increased.
In 1981, after retaining sufficient grain ration and fodder grain for their
own needs, the county was able to sell an extra quantity of over 2.3 million
jin of surplus grain and reduced the quantity of "unified sales grain" by
7 million jin. Thus, facts have amply justified that if, to start with, we
can keep in mind the realities of mountain areas and work according to
objective laws, it will be possible to solve the longstanding contradiction
between forestry and grain. Violating objective laws will result in both
sides losing.
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III. Correctly Understand and Handle the Relationship Between "Long" and
"Short" in Production in the Mountain and Forest Areas; Insist Upon Using
the "Short" To Support the "Long" and on the Union of the Two
The production cycle in mountain forests is a long one. It differs from
other agricultural production precisely because of this feature. As the
proverbial saying goes: "One generation plants the trees under the shade
of which another generation rests." The forests that we have at present are
mostly the fruits of the labor of our forefathers. Our work in planting
trees and afforestation today is intended in most part for the welfare of
our children and grandchildren. Once the forest resources are ruined,
restoration will take several scores of years. This special feature of
production of the mountain forests requires that we adopt a guideline
calling for union of the "long" and the "short." On the one hand, we must
protect the current interests of the masses in mountain areas in order to
arouse their enthusiasm to devote their efforts to undertaking the building
of timber forests which will not yield any benefits until a much later time.
On the other hand, we must take a long-term view. Starting from now, we
should expand the area of afforestation year after year to achieve the
objective of the continuous existence of green hills, good for use forever
and ever. We have consistently said: "Support the 'long' with the 'short,'
and effect the union of the 'long' and the 'short."'
In the past, in planting trees and in afforestation, we gave preference to
timber forests. We began with the masson pine and followed up with the fir
tree. Certain results were achieved. However, we did not at the same time
get'a grip on the economic forests, which can produce much quicker results.
In consequence, the economy of mountain areas became a single-product
economy and the income of the peasants was very low. Many cadres felt that
"distant water cannot quench current thirst." They despaired because they
planted trees every year but failed to benefit by any results.
Since the 3d Plenary Session of the 11th CCP Central Committee, concurrently
with getting involved with the construction of forest base areas, we have
emphatically got involved with the production of special mountain area
products which can yield benefits in a short time or even within a year.
This was because we felt that forestry production in our province was making
slow progress and that peasant families in mountain areas were generally
weak financially and urgently desired an increase in their income and an
improvement in their standard of living. Counties in mountain areas
analyzed the special features of the localities and summed up the experi-
ences of certain advanced communes and production brigades which had trans-
formed poverty into affluence. They raised the slogan "Heal poverty and get
rich." For example, one slogan said: "To make Xin Chang rich, try planting
tea and raising rabbits." Another slogan was: "Lin An has three treasures:
tea leaves, dried bamboo shoots and hickory nuts." Many counties in mountain
areas arranged "experience-exchange meetings" and printed and distributed
small pamphlets. Their leading cadres solicited advice from wise people
while the populace offered schemes and propositions. In short, a thousand
ways and means were tried to open wide the door of production. In order to
encourage people in mountain areas to develop their special products, the
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provincial people's government fixed definite base figures governing the
quantity of the state purchases of such special products as tea leaves,
silk, oranges, the "three seeds" (tung seeds, tea-oil seeds and tallow
seeds), raw lacquer, and resin. Surplus production of these products may
be retained on a percentage basis. Extra state purchases will be paid for
at higher prices or by sales rewards of grain, chemical fertilizers, and
cloth tickets. As a result, in the last few years, there has been a boom-
ing growth of such crops as tea, mulberry, tangerines, day lily and so on.
Their growth rate has risen every year. Take tea leaves for example:
Production in the whole province in 1979 increased by 130,000 dan over that
of 1978, the 1980 output increased by 200,000 dan over that of 1979, and the
increase in 1981 over that of 1980 was 240,000 dan.
As we see it now, the populace has showed a high degree of enthusiasm for
developing the "short" but has not paid sufficient attention to developing
the "long." Thus, this requires that we guide the enthusiasm of the masses
toward the development of timber forests and other products requiring some
years for growth, and to really accomplish the objective of supporting the
"long" with the "short." In this connection, we must stress the adoption
of the following measures: First, based on the natural resources and
economic conditions of the various localities, we must formulate a plan
for the overall development of the economy in mountain areas. The plan will
grasp both the "long" and the "short." It will capitalize on the "many" but
will not lose sight of the "few." The superiority of the localities will
be displayed. Second, we must adopt a correct policy. Apart from giving
special rewards for the purchases of certain special forest products, the
policy we adopt must support the development of timber forests. The require-
ment is that the 300 people's communes in the mountain areas of the province
develop, in the next 7 years, 5 million mu of timber forests. Local finan-
cial administrations will earmark a certain amount of funds to subsidize
afforestation work. Third, during the course of developing timber forests
and bamboo production, we must also pay attention to the combination of the
"long" and the "short." For example, bases will be developed for the quick-
growth and densely-grown fir, so that in 3 to 5 years time the trees will
be ready for intercutting. In the bamboo hills, an area will be reserved
specially for bamboo shoot production, so that the populace can more quickly
reap the benefits and the development of "specialized bamboo hills" can be
promoted. Fourth, we must develop the comprehensive utilization of forestry
and sideline products, take the road of overall development of planting,
growing, processing and marketing and endeavor to upgrade the economic
value of mountain and forestry products. Our province has abundant forest
resources. At the same time, its timber requirements are high, the extent
of the extravagant use of timber is also great, and every year timber cutting
far exceeds timber growth rate. Hence, the comprehensive utilization of
timber is all the more important. Facts have also shown that much can be
accomplished by comprehensive utilization. A plant making boards from wood
shavings in Longchuan County made use of tree tops, tree branches, wood
shavings and tree bark to produce 8,000 cubic meters of wood-shaving boards
every year. This achieves savings of some 20,000 cubic meters of timber.
Besides the comprehensive utilization of timber, the hidden potential is also
very great for the comprehensive utilization of bamboo and other forestry
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and sideline products. Further processing work will enhance the value of
these products. If this job is done well, then we not only can convert
"wastes" to "treasures" but also enable the large number of skillful .
artisans in mountain areas to display their skills. Moreover, in so doing
we can make and encourage the masses to treasure mountain and forest
resources, to protect them, and to develop forestry production much more
enthusiastically. As a matter of fact, in this regard we still have a
"weak link," and more efforts must be made. Speaking from an even broader
view, the opening up and construction of mountain areas should also include
the tourist trade. Zhejiang Province has a host of scenic spots. Such
tourist spots as Yandang Shan, Mokan Shan, Tianmu Shan, Putuo Shan, Fuchun
River and Xinan River are known the world over. If we can link the con-
struction of mountain areas with the protection of natural resources and
development of the tourist trade, we can surely attract an even larger
number of tourists.
IV. Correctly Understand and Handle the Relationship Between Unified
Operation and Dispersed Operations; Arouse the Enthusiasm of the Collective
and the Individual Commune Members
Communication is a difficult problem in the mountain areas. Houses are
widely scattered and production conditions are backward. Developing con-
struction there requires us to take two separate roads. One is to arouse
the enthusiasm of the collectives and to display the superiority of unified
management. The other is to arouse the enthusiasm of the individual commune
members and display the good points of dispersed operations.
In Zhejiang Province, the great majority of mountain areas suitable for
afforestation are owned by production brigades or production teams. Thus,
with the exception of the self-retained hills of a small number of commune
members, basically there is only one road to take, namely, that of unified
operation by the collectives. Moreover, the production responsibility sys-
tem in mountains and forests is not healthy. In some forests, there has
been excessive felling of timber and little afforestation work has been done.
In particular, there are over 30 million mu of barren mountains and hills
that are sparsely forested. They have defied being "greened" for a long
time. This is a problem which urgently requires a solution in the construc-
tion of mountain areas in our province.
Following several years of actual practice, people on all sides have
acquired a comparatively fuller understanding of the production responsi-
bility system in agriculture. But many cadres do not have any idea of how,
taking into consideration the realities of mountain areas, to institute a
production responsibility system there, and do not have a uniform under-
standing of the problem. Some cadres generalize that mountains and forests
must be placed under unified management and operation. They neglect the
importance of arousing the enthusiasm of commune members in diversified
operations. Some comrades do not feel at all concerned about the sight of
so many barren mountains, but when they hear that a portion of the mountains
will be assigned to commune members to plant trees, they fear this and that.
A large number of barren hills are in name under the management of and are
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operated by the collectives. In fact, no operation has been going on, and
the collectives are not capable of doing this work. On-the other hand, much
labor power cannot find an outlet and cannot find places to work. If such a
situation persists, how will it be possible to make so many barren hills
green? Which is better--to have, or not to have, trees on mountains?
Certainly, having trees there is much preferable. If we can arouse the
enthusiasm of both the collectives and the individual members to plant
trees, this will create wealth for the state. Our objective and our direc-
tion should be toward all mountains being green, toward water in all rivers
being clear and toward all mountain areas enjoying affluence. All policies
and measures beneficial to arousing the masses' enthusiasm for afforestation
should be correct policies and measures.
Judging from the experiences of certain localities in Zhejiang Province,
taking the road to the development of forestry production cannot depend on
a single "leg" in the form of the collectives alone, or on the "leg" of
individual commune members alone. Rather, both "legs" must be used to step
.forward smoothly and quickly. Having understood this point., people can then
formulate concrete plans. Measures suited to local conditions can be shaped
and we can pursue diversified economic forms. In mountain areas which are
forested, an entire forest can continue to be placed under the unified
management of the forest departments of production brigades or communes,
or of their specialized teams or specialized units. But the responsibility
system of specialized contracting and linking remuneration to output must be
instituted. In the case of small forests, we can adopt the responsibility
system of assigning the household, laborer, or unit full responsibility for
task completion and linking remuneration to output. Unified planning must
be done for barren or sparsely wooded hills. Apart from assigning some of
them as self-retained hills for commune members, any hills which the collec-
tive is capable of managing should be managed by the collective. If the
collective is incapable of doing the management work, then decisive measures
must be taken and the responsibility for management must be assigned to the
commune members, either singly by household or jointly by several households.
There should be no change in the rights of ownership, but the household or
households doing the planting or afforestation work should do the managing.
The yield from interplanting or intercropping may be retained by the house-
hold itself, but receipts from the commercial forest should. be divided on a
percentage basis. This should be a long-term arrangement and should not be
readily changed. In our opinion, the adoption of this policy can yield good
results and involves no risk. Once the enthusiasm of the vast masses has
been aroused, there is hope for making the hills green. We must emancipate
our minds, carefully weigh advantages and disadvantages, decide on opportune
times and brook no procrastination.
In the last few years, we have done much work in the construction of mountain
.areas and have achieved certain results. However, in the economy of the
entire province, forestry is still a weak link. The "tree-cover" rate of
forests is still relatively low, much soil has been eroded into waterways
while the poor ecological condition has not been much improved. The task of
making Zhejiang green and of constructing the mountain areas of the province
is still a difficult one. We are determined to continuously rectify our
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ideological line. We will continue to conduct sufficient investigation and
research so that we can understand better the realities of Zhejiang. Based
on a general survey of the natural resources, we will do a good job of
agricultural division and will mobilize the various counties, municipali-
ties, communes and production brigades to formulate plans for construction
of mountain areas. We will, in a down-to-earth way, endeavor to solve the
problems confronting construction of mountain areas. In working in Zhejiang
Province, we must keep in mind the welfare of the people of the province.
We must do good deeds for them. We will do our utmost to quickly make the
great earth green in Zhejiang. We will make the mountain areas of the
province more beautiful and wealthy and make the necessary contributions to
the socialist construction of the motherland.
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HOW TO VIEW THE CHANGES IN PEOPLE'S LIVELIHOOD OVER THE PAST 3 YEARS
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 25-28
[Article by Li Chengrui [2621 2052 3843] and Zhang Zhongji [4545 6945 1015]]
[Text] Since the convening of the 3d Plenary Session of the 11th CCP'
Central Committee, the party and the government have, under the situation in
which our state finances are still faced with many difficulties, taken vari-
ous measures to improve the people's standard of living. The broad masses
of people are deeply conscious of and grateful for these measures. But some
people have raised some questions in this respect. For example, how much
has the people's livelihood been improved over the past 3 years? Have
increases in prices accorded with increases in wages? Are we doing too much
or too little in improving people's livelihood? This article is intended,
through facts and figures, to explain and probe into these questions.
People's Livelihood Has Been Considerably Improved Since the 3d Plenary
Session of the 11th CCP Central Committee
For a long time in the past, because of the "leftist" mistakes and particu-
larly because of the interference and sabotage by Lin Biao and the "gang of
four" during the 10 turbulent years, our national economy was seriously out
of balance and no appropriate measures were taken to improve the people's
livelihood. Following the downfall of the "gang of four" and particularly
since the convening of the 3d Plenary Session of the 11th CCP Central Com-
mittee, the party and government has taken measures to restore order.
"Leftist" mistakes have been corrected; the proportionate relations between
agriculture, light industry and heavy industry and various economic policies
have been readjusted; and agricultural production and the production of con-
sumer goods have been developed in a big way. At the same time, the exces-
sively high accumulation rate has been lowered. With regard to the use of
national revenue, the proportion of accumulation has lowered from 36.5 per-
cent in 1978 to less than 30 percent in 1981 while the proportion for con-
sumption was increased from over 63.5 percent to over 70 percent. Of the
amount of capital construction investment in the units owned by the whole
people, the amount of the investments in production construction dropped
from 82.6 percent in 1978 to 58.9 percent in 1981. The investment in non-
production construction such as that for housing, education, health and
scientific research, and public utility undertakings increased from 17.4 to
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41.1 percent. Over the past 3 years, the improvement in the people's mate-
rial and cultural life is shown in the following:
First, peasants' incomes have increased drastically. An investigation made
of the incomes of more than 18,000 households of commune members in 536
prefectures showed that the average per capita annual net income was esti-
mated at more than 220 yuan, 80 yuan more than the 134 yuan in 1978, giving
an annual increase of over 18 percent for 3 years. Over the past 2 to 3
years, great changes have taken place in both agricultural production and
the livelihood of the commune members in some poor regions that were charac-
terized by "relying on resold grain for food, on loans in production and on
relief goods in livelihood." Of the total investigated peasant households
across the country, the proportion of households with difficulties and with
average per capita income of less than 100 yuan has dropped from 33 percent
in 1978 to less than 10 percent in 1981.
The increases in the income of peasants is due on the one hand as a result of
the implementation of the party's policies for rural areas and the introduc-
tion of various forms of the production responsibility system and the devel-
opment of diversified economic management, and this brought about increases
in both production and income. On the other hand, the state has increased
the purchase prices of agricultural and sideline products and decreased some
taxes in rural areas, and all these have also been helpful in increasing
peasants' income. During the 3 years between 1979 and 1981, the peasants
across the country gained a total additional income of more than 50 billion
yuan because of the increases in the purchase prices of agricultural and
sideline products and decreases in taxes.
Second, the income of workers and staff have increased. According to an
investigation of the income of the more than 8,700 workers and staff house-
holds in urban areas in 46 municipalities across the country, the average
per capita monthly amount of income that was used for living expenses in
1981 was 38.6 yuan, 46.8 percent higher than the 26.3 yuan in 1978. When
this figure is reduced by the rate of increase in the cost of living of
workers and staff, the actual increase in income would be 30.8 percent. As
the families of workers and staff have more income, the proportion of house-
holds with an average monthly income to be used for living expenses of 20-25
yuan has dropped to 5.4 percent of the total households. The proportion of
those with less than 20 yuan has dropped to 2.1 percent.
Over the past 3 years, the party has worked out and implemented various
policies and measures to increase production and improve the standard of
living of workers and staff. These include opening up more channels for
employment. During these 3 years, more than 26 million people awaiting jobs
have been employed. The majority of the great number of such people who
accumulated over many years have been given jobs. With the expansion in
employment, the average number of people (including the workers and staff
themselves) that are supported by each worker or staff member dropped from
2.06 in 1978 to 1.77 in 1981. This means that.the families of workers and
staff have a lighter economic burden, their income has increased, and con-
sequently this situation has promoted social stability and unity. Second,
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the wages of some of the workers and staff members have been readjusted and
the bonus system has been introduced. The total wages paid by the units
under the ownership of the whole people across the country and the units
under collective ownership in cities and towns in 1981 came to 82 billion
yuan, 25.1 billion yuan more than in 1978, with an average annual increase
of 8.37 billion yuan. The average wages of workers and staff in 1981 were
772 yuan, 25.7 percent higher than the 614 yuan in 1978 and after deducting
the cost of living increase, the actual wage increase was 11.9 percent.
Third, the treatment of the cadres and workers and staff who have retired has
been improved, and subsidies for family planning, having a single daughter or
son, traveling expenses in visiting parents, traveling expenses in going to'
and returning from work, and haircut subsidies have been increased. All
these mean an increase in the family income of workers and staff. The total
expenditure on the welfare of the workers and staff of the units under the
ownership of the whole people were 6.7 billion yuan in 1978 and 11.6 billion
yuan in 1980. It further increased in 1981.
Third, the consumption by the urban and rural population has increased. Over
the past 3 years, agricultural and sideline production and the production of
daily consumer goods have increased, and consequently there are a greater
quantity and more varieties of consumer goods on the market. The total
retail sale volume of social commodities in 1981 was 235 billion yuan, 50.7
percent higher than the 155.9 billion yuan in 1978 (with a deduction for the
increase in retail prices, the actual increase rate was 36.2 percent). The
volume of major food, clothing and daily-use commodities has also increased.
The per capita grain consumption in the whole of 1981 was 12 percent higher
than in 1978, the consumption of edible vegetable oil increased by 87 per-
cent, that of pork increased by 44 percent and that of cloth increased by
28 percent (the consumption of grain, edible oil, meat and cloth includes
direct consumption by the population, the volume processed by catering,
foodstuff and tailoring industries and publicly used cloth). The number of
sewing machines owned by every 100. persons increased from 3.5 to 5.5,
bicycles from 7.7 to 11.1, watches from 8.5 to 15.7 and radios from 7.8 to
14.9. Some families already have the "four big pieces" and they are now
adding several "new big pieces." An investigation made of family incomes
and expenditure of the workers and staff in urban areas showed that by the
end of 1981, every 100 families on the average owned 58 television sets,
43 electric fans, 6.3 washing machines, 13 tape recorders, 4.3 cameras,
44 sofas and 86 big wardrobes.
Now, the consumer products the urban and rural population eat, water and
use have not only increased in volume but also in quality. An investigation
of the income and expenditure of commune members showed that the average per
capita annual consumption of flour and rice in 1980 was 326 jin as against
245 jin in 1978, while the figure for coarse food grains dropped from 251 jin
to 188 jin (calculated on the basis of unprocessed food grains). The con-
sumption of quality commodities such as woolen fabrics, silks and satins,
knitting wool and woolen sweaters in 1980 more than doubled the figure in
1978. With regard to clothing, in the past people were mainly interested
in buying cheap and yet durable clothes, but now they have turned to mainly
buying good quality, new style and medium- and high-priced clothing.,
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Fourth, housing conditions have been improved. Over the past 3 years, the
state invested 29 billion yuan in housing; the floorspace of completed new
housing facilities was 223 million square meters, an average of more than
74 million square meters every year and 3 times higher than the average
annual figure of 18 million-plus square meters during the 10 years of the
"Great Cultural Revolution." An investigation of the income and expenditure
of the families of workers and staff in cities showed that the average living
space of the members of such families increased considerably from 4.4 square
meters in 1979 to 5.27 square meters in 1981. A "fever of house building"
has emerged in rural areas. Having enough to eat and wear, many peasants
have been developing their living conditions in a big way. Expenditure in
building houses made up 3.2 percent of the total consumption expenditure in
1978 and jumped to 10.3 percent in 1981. The total floorspace of houses
built by peasants themselves over the last 3 years was 1.4 billion square
meters. Now the average living space in rural areas is about 10 square
meters.
Fifth, the saving deposits of the urban and rural population have increased.
The total savings deposits of the urban and rural population by the end of
1981 were more than 52.37 billion yuan, 31.31 billion yuan more than those in
1978 and an increase of 1.5 times. The savings deposits of the urban popula-
tion were 35.41 billion yuan, an increase of 1.3 times, while the savings
deposits of the rural population were 16.96 billion yuan, double that of
1978. The increase in the deposits not only represent increases in the
income of the population but also show that the people are fully confident
in the development of our economy.
The state has also strengthened the building of a commercial network and
public utility facilities in urban areas so as to gradually relax such con-
tradictions as the difficulties of finding a restaurant, buying vegetables,
getting repairs done and riding on a bus. Health and education undertakings
have also been restored and developed. The number of hospital beds and
doctors at the end of 1981 was respectively 8.3 percent and 13.9 percent
higher than in 1978; the number of college students was 1.28 million, an
increase of 49.5 percent over the figure in 1978 and 33 percent more than
1960 which witnessed the biggest number of the students prior to the
"Great Cultural Revolution." Polytechnic schools, broadcasting television
universities, and spare-time industrial and agricultural education are
developed vigorously. People's cultural life has become more active, the
circulation of newspapers, magazines and other publications has increased
drastically and broadcasting undertaking has also developed rapidly.
But we must understand that although the standard of living of our people
has been improved considerably, it is not high enough and is unbalanced.
At present, there are still a few peasants whose food problems have yet to
be completely resolved and some workers and staff families are still living
a fairly hard life. It is still common for'the houses of workers and staff
to be too crowded and the development of public utility facilities and
scientific, cultural, education and health undertakings does not accord with
objective needs. All these have to be gradually resolved along with the
development of the economy.
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The Growth in the Income of Workers and Staff Was Faster Than the Increase
in Prices
Some comrades have said that although the income of workers and staff have
been increased over the past few years, the increases have been offset by
increases in prices. We have to concretely analyze the increases in prices.
Generally speaking, it is true that market prices have increased over the
past few years, but the prices of some industrial products were increased
while the price of some other industrial products were decreased. For
example, the prices of cigarettes, wines, furniture, bambooware and woolen
fabrics were increased, but the.prices of polyester and cotton fabrics, tape
recorders, television sets, electric fans, wristwatches, refrigerators and
Western medicines were decreased. The prices of state-rationed basic daily
necessity goods such as grain and edible oil remained stable. What the
masses have complained much. about is the increases in the prices of vege-
tables and nonstaple foodstuffs. In addition, the nonstaple foodstuffs with
state-fixed prices have been in short supply and consequently the commodi-
ties with negotiated prices and those available in free markets have
increased in quantity. Therefore, compared with 1978, the price index (the
average listed price, the negotiated price and the price on the free market)
in 1981 was 32.1 percent higher. At the same time, some of the commodities
which had their prices lowered are not often bought while those which had
their prices increased are daily necessity nonstaple foodstuffs such as
vegetables. As a result, the masses are more aware of the increases of
prices. But nonstaple foodstuffs only make up less than 25 percent of the
total retail volume of consumer goods. The staff and workers have other
expenses for food, clothing, daily-use goods, haircutting, bathing and other
services. Taken as a whole, in 1981 the price index in the living expenses
of the workers and staff in 1981 was 12.3 percent higher than in 1978, and
during the same period the average income which could be used for living
expenses of the families of workers and staff increased by 46.8 percent.
With a deduction of increases in cost of living, the actual income increased
by 30.7 percent (if the calculation is based on the average wages of workers
and staff, the actual income after deductions for price increases is an
increase of 11.9 percent). Therefore, it can be seen that the growth in
income which could be used for living expenses of workers and staff was
faster than the price increases. Because the management of prices is not
strict and some unhealthy tendencies in business ideology still exist in
some enterprises, consequently there also exist such phenomenon as marketing
low-quality commodities as high-quality commodities, giving short weights,
actually increasing prices and changing costs at will. All these have
increased the economic burden on the masses. However, it must be confirmed
that the standard of living of workers and staff has been improved over the
past 3 years. Otherwise, how can we explain the increases in the actual
consumption of the families of workers and staff and their savings deposits?
Some workers said that over the past few years they have earned more money
and that although prices have increased, they found, after meticulous
calculations, that their actual standard of living has improved. Such a
situation is in line with the actual situations of the majority of workers
and staff. A few workers and staff still have not had their wages increased
for a long period of time and they have received little or no bonuses.
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Therefore, with price increases, there has been little improvement or even
a drop in their actual standard of living. Measures must be taken to give
special consideration to these workers and staff. .
Improvement of People's Livelihood Must Be Based on the Development of
Production and Labor Productivity
Some comrades acknowledge the improvement in people's livelihood, but they
demand that the improvement must be stepped up. Such a desire is understand-
able. But the pace of such improvement does not rest with our subjective
desire. On the contrary, it rests with the possibility of objective condi-
tions. This is because the pace in the improvement of people's livelihood
must in no way exceed the growth in social labor productivity; otherwise our
country will not be able to realize the great goal of modernization. In
the final analysis, people's livelihood can in no way be improved excessively.
Over the past 3 years, almost all of the growth of our state revenues has
been used in increasing consumption funds. The growth of the income of com-
mune members and workers and staff has exceeded the growth of the national
revenue and industrial and agricultural production. It is necessary to do
this because historically the people's livelihood had not been improved for
quite a long period in the past. Such improvement has played a positive role
in promoting social stability and unity, mobilizing the initiative of the
masses in production, and in stepping up the revival and development of
economy. But as we have made excessively large steps forward, there have
emerged some problems that merit our attention.
First, the subsidies for price increases have become a heavy burden for state
finances. In order to stabilize market selling prices and lighten the eco
nomic burden of the broad masses of people, the state has over the past few
years resorted to financial subsidies for some basic daily necessity goods
and for the means of agricultural production. Such a measure is absolutely
necessary. Because of incomplete planning and because some places purchase
agricultural and sideline products at lower prices, the situation of nego-
tiated and increased prices has developed and consequently price subsidies
provided from state finances have drastically increased. In 1981, price
subsidies were as high as 32 billion yuan, more than 30 percent of the
financial expenditure during the year.
Second, the growth of social purchasing power has exceeded the growth of
commodity resources. The amount of currency issued in 1979 and 1980
increased by more than 20 percent each year. After efforts were made, the
figure dropped to 14 percent last year, but it was still higher than the
growth of the retail volume of social commodities and the total volume of
the stock of commodities on hand.
Third, the growth of bonuses exceeded the growth of production by a big
margin. The bonuses offered by the units under the ownership by the whole
people and the units of collective ownership in cities and towns increased
successively over the past 3 years. In 1979, bonuses were 4.6 billion yuan,
but in 1981 they drastically increased to 7.8 billion yuan and this figure
excluded the material and cash that were given to workers and staff in the
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name of bonuses. Over the past 3 years, gross industrial output value
increased by 23 percent while the labor productivity of industrial workers
and staff grew by 6.6 percent. But the bonuses for workers and staff
increased by a staggering 6 times.
If these situations continue to develop in this way, the financial deficit
will no doubt increase, market demand and supply will become unbalanced and
prices will be unstable. As a result, the benefits that have been enjoyed
by the urban and rural population will certainly be affected. Thus the
steps taken to improve people's livelihood cannot be too big.
Comrade Chen Yun recently pointed out that people's livelihood must be
improved. He said the people must not eat too poorly or eat too well. To
eat is first and to construct is second. But if we eat everything, there
will be no hope for our country. It is only when we have a surplus for
carrying out production and construction after meeting the food needs that
our country has hope. Thus, in simple words, Comrade Chen Yun profoundly
expounded the dialectical relations between people's livelihood and state
construction which promote and condition each other.
In the final analysis, the purpose of socialist production is to constantly
meet the needs in people's material and cultural life. But the improvement
of people's livelihood must be based on the development of production and
the improvement of labor productivity. Now our national economy is being
readjusted and our state finances are facing many difficulties. Therefore,,
the broad masses of people must put the interest of the state in first
place, contribute their efforts to the country, strengthen their socialist
initiative and the sense of responsibility as the masters of their own
country, display the good tradition of hard work, and improve labor pro-
ductivity and economic results so as to increase our state's financial
revenues. By doing so, we will be able to form a reliable materialistic
foundation for the improvement of the people's livelihood.
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LETTER FROM COMRADE SONG SHILUN
Beijing RED FLAG in Chinese No 8, 16 Apr 82 p 28
[Text) In my article "Mao Zedong's Military Thinking Is Our Army's Guide to
Victory" (published in issue No 16, 1981, of RED FLAG), owing to a mistake
in my data, I mistakenly put down July 1941 as the date when Comrade Luo
Ronghuan put forth in an article the term "Mao Zedong Thought," when it
should have been July 1944. Please correct this error and accept my
apologies.
Song Shilun
1 April 1982
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.VIGOROUSLY STUDY ECONOMIC THEORY
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 29-30
[Short commentary]
[Text] Vast numbers of cadres in the state have been studying economic
theory in a general way since last February. To sum up, the result of their
study has been relatively good. Through study they have initially grasped
some basic Marxist political and economic principles; they have gained a
better understanding of the experiences and lessons of economic construc-
tion since the founding of the republic; they have cleared up the influence
of the "leftist" ideology; they have gained a deeper understanding of the
party's line, guiding principles and policies adopted since the third
plenary session; they have strengthened their confidence in achieving our
socialist modernizations; and, on this basis, they have also paid close
attention to relating the realities of our four modernizations, studied new
conditions and resolved new problems. However, their progress is very
imbalanced. They are only interested in studying practicable policies to
which the party committee has attached great importance and over which it
has exercised good leadership. They have made great progress and scored
good results in studying these. policies. But they are inactive when it
comes to studying the policies to which the party committee has paid little
attention. They make slow progress and score relatively poor results in
studying such policies. Although some localities and units have made prepa-
rations for the study of theory, they do not have a sound system of examina-
tion and supervision. The tutorials they provide cannot keep pace with the
progress of study, and thus the study period becomes a mere formality. Some
localities and units have a poor study plan. They only study vigorously
current policies. They ignore and slacken their study of economic theory.
A small number of units have not even organized any study of theory. It is
necessary for cadres at all levels and leading departments to examine the
situation of the study of theory, tackle existing problems, adopt effective
policies, urge cadres who are required to participate in the study of theory
to finish studying the books listed for them as scheduled and to make real
improvement.
Straightening out our understanding is the key to the vigorous study of the
theory. First of all, the leading cadres should be far-sighted. They should
be fully aware that cadre education in theory plays an important role in the
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construction of the cadre ranks. The enhancement of cadres' theoretical
level has a decisive effect on the mental outlook of cadres, their ability
to comprehend, their understanding of policies, and the quality and quantity
of their work. Nowadays, the party has shifted its emphasis to economic
construction. If we are not armed with Marxist economic theories and if we
do not understand the objective law of socialist economic construction, it
is obvious that we cannot do our own job well and score good results in the
four modernizations. Cadres' failure to analyze correctly the situation and
to understand and carry out the party's line, guiding principles and poli-
cies can often be explained by their lack of economic theory and knowledge.
Cadres at all levels should, therefore, handle cadres' study of theory with
a strategic view and take up the work with an attitude of being highly
responsible to the revolution. They should also set a good example and take
the lead in studying theory well.
Cadres at all levels should also adopt an effective policy on organization
and establish and perfect the system of study so as to ensure the completion
of the study plan. It is true that current tasks and missions are very
intense. However, they should not hamper the organization of cadres' study
of theory. In order to resolve the contradiction between work and study, -
some localities and units have adopted a method of "small concentration" to
ensure a period of study and to speed up training in rotation. This method
should be advocated as it can bring forth better results. Localities which
do not possess such conditions should make appropriate arrangements to ensure
a period of study. The study of current policies is very important and
should be vigorously carried out. However, it cannot replace the study of
theory. We should start the organization of study well and complete it
well. We should not do it perfunctorily. We advocate that examination and
assessment should be carried out when the study period ends.
The policy of relating theory and practice should be continuously put into
effect to improve the quality and quantity of study. The books listed for
study should be related to Comrade Mao Zedong's theory of socialist con-
struction expounded in the "Resolution on Certain Questions in the History
of Our Party Since the Founding of the PRC" and the fundamentals of our
socialist modernizations, to the study of the 10 policies on socialist con-
struction made by Comrade Zhao Ziyang in the government work report at the
4th Session of the 5th NPC, and to the speeches on current economic work
made at the national conference on industry and communications on 4 March
this year. At the same time, attention should also be paid to relating the
practical problems in economic construction and cadres' practical ideological
problems in study to improving our understanding and work and to resolving
various new problems encountered in economic development. Since quite a few
cadres do not have a basic understanding of politics and economics, their
comprehension of the content of the study is affected. It is necessary to
give them some basic knowledge and more guidance in study, so that they can
keep pace with the progress of study.
It is entirely possible to speed up the progress of the study of economic
theory to improve the quality and quantity of the study, to complete the
study quantitatively and qualitatively as scheduled, and to create good con-
ditions for the study of philosophy which will come next if cadres at all
levels have a clear understanding of cadres' study of theory and have an
effective policy.
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TAKING PLANNED ECONOMY AS THE DOMINANT FACTOR AND REGULATION BY MARKET
MECHANISM AS A SUPPLEMENT
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 30-33
[Article by Xue Muqiao [5641 2550 2890]]
[Text] On 25 January of this year, Comrade Chen Yun invited the leading
comrades of the State Planning Commission to discuss the question of ensuring
that the planned economy plays the major role and regulation by market mechan-
ism the supplementary role. Comrade Chen Yun pointed out: "Industry must
use planned economy as the major factor; agriculture is no exception to this.
Even after the production responsibility system has been introduced, the
planned economy should still prevail." Adhering to taking planned economy
as the dominant factor and regulation by market mechanism as a supplement is
a major principle in developing the national economy. The broad masses of
cadres should firmly maintain this viewpoint.
In recent years, in studying the reform of the national economic management
system, we have expressed in many ways the relationship between planned
economy and regulation by market mechanism. After testing them in practice,
many comrades say that some of these ways are not precise and are apt to be
misunderstood. The "Resolution on Certain Questions in the History of Our.
Party Since the Founding of the PRC," adopted by the 6th Plenary Session of
the 11th CCP Central Committee, pointed out: "It is necessary to practice
planned economy and at the same time give play to the supplementary, regu-
latory role of market mechanism on the basis of public ownership." Last
year, Comrade Zhao Ziyang further expounded on the relationship between
planned economy and market mechanism in his report entitled "The Present
Economic Situation and the Principles for Future Economic Construction"
delivered at the 4th Session of the 5th NPC. His exposition completely
coincided with the resolution and the spirit of Comrade Chen Yun's speech.
The socialist economy is a planned economy. In economic activities, vital
aspects related to the overall national economy, such as the scale of
capital construction, the level of people's livelihood, the ratio between
accumulation and consumption, and the major proportions of different depart-
ments in the national economy, should be strictly controlled by state plan-
ning. In order to maintain proper ratios between different departments, the
arrangement of all major construction projects and the production and
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distribution of important products (especially those in short supply) must
be subject to state plans. The production and operation of key enter-
prises should also be conducted in line with state plans. Planning is
essential to industry as well as to agriculture. Industry and agriculture
are interdependent. If planning is only extended to industry but not to
agriculture, the national economy cannot develop proportionately. Mean-
while, it is also necessary to regulate our economy by market mechanism
under the guidance of state planning because of the following facts: The
development of productive forces in China is still at a low level and there
is uneven development in different areas; in respect of economic forms,
ownership by the whole people, which takes a leading position in the national
economy, coexists with the collective economy, which covers a fairly wide
sphere, and individual economy, which covers a smaller sphere (if peasants'
household sideline undertakings are included, individual economy then covers
quite a large sphere). Most industrial and agricultural products have to be
exchanged through markets. The big commodities with limited varieties but
great output value, which are vital to the national economy and people's
livelihood, need to be produced in line with state plans, while the small
commodities with small output value but tremendous varieties, which cannot
be completely covered by state plans, can be produced freely according to
market demands within the specified limits allowed by state plans.
Planned management requires both administrative and economic measures.
Market mechanism can spontaneously regulate the economy according to objec-
tive economic laws, but the necessary administrative management cannot be
abandoned. In the past, we mainly resorted to administrative measures and
to the issuing of mandatory plans in our planned management. Industrial
branches arranged production and commercial branches handled purchasing and
sales in line with these plans. As a result of the nonconformity between
production and market demands, some products were overproduced and others
were in short supply, thus leading to serious waste. Therefore, even in
implementing mandatory plans, economic measures must be adopted at the same
time. That is, we should give thorough consideration to and make use of the
law of value and lay down and adjust planned prices for products in the light
of their value and market conditions. In order to give full play to economic
measures, it can be considered that, after readjustment is largely completed
and the balance between supply and demand is attained, although key products
with limited varieties which are vital to the national economy will still
require mandatory planning, we will not need to issue mandatory plans for
the production and marketing of daily-use goods, but can switch over to
guiding plans. This method means that the targets of production and
marketing set by the state are only references for the production and
marketing departments concerned. Commercial departments can purchase goods
from industrial departments in line with both planned targets and market
demands, while industrial departments can organize production in line with
orders placed by commercial departments and market demands. When planned
management is conducted in this way, it can reflect market demands better.
So long as the major proportion of the products are unifiedly purchased
and sold by state-owned commercial departments in accordance with planned
prices set by the state, the economy is still being governed by planned
management and not by regulation by market mechanism. Only free production
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within the limits allowed by the state, and those commodity prices which
are not unifiedly fixed by the state but float freely according to market
conditions, belong to the realm of market mechanism.
After guiding plans for reference are issued, their fulfillment should be
guaranteed mainly by economic means and not by administrative means. We
should lay down a proper pricing policy, under which the balance between
supply of and demand for common products can be guaranteed largely by
prices. For some products, this balance cannot be regulated completely by
prices; in these cases, we can consider obtaining help from tax rates. For
example, high tax rates should be imposed on cigarettes and alcoholic
beverages because their consumption needs to be limited, while low tax rates
can be imposed on people's daily necessities which can sometimes be exempt
from taxes. The prices of a few items (such as grains) can be subsidized if
necessary. Regulation sometimes can be carried out through bank loans. If
the state needs to develop certain trades, more loans with lower interest
rates can be offered to them. But for those trades which the state needs to
limit, few or no loans should be made. Also loans can be made at high inter-
est rates, so as to accelerate normal circulation of all sorts of products
and diminish overstocking and waste. Mastering the method of applying
economic levers, gradually reducing mandatory plans and replacing them with
guiding plans for reference, is an important part of the future reforms of
our planning system. At present, owing to the irrationality in system,
structure and prices, it is difficult to adopt guiding plans, and so it is
still necessary to intensify planned guidance and administrative interven-
tion. Of course, even if we learn how to apply economic levers, mandatory
plans cannot be completely abandoned. The investment in capital construc-
tion of some major projects, the production and distribution of a small
number of important materials closely related to the national economy and
people's livelihood, especially those in short supply (such as grains and
energy sources), all need to be subject to mandatory plans for a long time
in the future.
Besides mandatory plans and guiding plans for reference, planned management
needs to be carried out in other diversified ways. For example, mandatory
plans and guiding plans for reference can be adopted simultaneously;
cooperative plans between different areas, trades and enterprises can be
implemented. For steel and cotton cloth, the gross volume of production and
marketing must be subject to mandatory plans. But the varieties, specifica-
tions and assortments, numbering in the tens of thousands, cannot all be set
down in state plans and can only be specified through contracts. Some
products in short supply must be unifiedly distributed by the state. But,
after fulfilling state plans, a small quantity of them may be retained to
allow the producing areas to cooperate with areas needing these products.
Thus the producing areas can exchange these products for those which it is
short of and which even the state is not able to supply. In recent years,
coastal cities and industrial areas have invested in inland areas, jointly
explored natural resources in inland areas, and assisted technical innova-
tion of industry in inland areas. All this has achieved marked results.
Unified plans of the central authorities pursued from above should be supple-
mented with cooperation plans between areas implemented from below. When
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working out cooperation plans from below, the fulfillment of product-
transfer assignments laid down by the state must first be guaranteed.
Cooperation plans between areas should be coordinated on a nationwide scale,
thus making these plans a part of the state plan and properly maintaining an
overall balance. Without an overall balance, a planned economy cannot exist.
Although there is more flexibility in the above-mentioned planned management
methods, they still cannot be considered regulation by market mechanism.
This is because the cooperation between different areas or state-owned
economic departments must be included in departmental or area plans, and is
thus coordinated by the central planning department.
Owing to the extent of collective ownership in rural areas, planned manage-
ment in these areas needs to take more complex forms. In the past, key
agricultural products were subject to planned management mainly through
pricing policies, thus falling under the scope of guiding plans for refer-
ence. When many key agricultural products were in short supply, besides
utilizing pricing policies, we also adopted measures of requisition by
purchase (for grains), monopoly purchase by the state (for cotton) and
quota-assigned purchase by the state (for pigs and eggs) in order to guaran-
tee fulfillment of the purchasing targets for these products. This can be
regarded as a kind of planned management with mandatory assignments, adding
administrative measures to economic measures. This method can be changed
only when a balance between supply and demand is attained or when supply
exceeds demand. As long as prices are set by the state, there is planned
pricing and most products are unifiedly purchased by organs designated by
the state, the adoption of pricing policies in seeking a balance between
supply and demand still falls within the scope of planned management. Only
the third category of agricultural and sideline products, for which the
state does not fix prices, and those products that the state allows to be
sold in country fairs or on urban agricultural and sideline product markets,
are subject to regulation by market mechanism. State-owned commercial
departments purchase agricultural and sideline products from peasants at
negotiated prices. This is a necessary supplement to planned purchasing at
the present stage. However, the scope of purchasing at negotiated prices
must be strictly controlled, lest it adversely affects state purchasing
plans.
In line with the above distinction, the production and exchange of most
products in our country are subject to planned management; regulation by
market mechanism only plays a supplementary role. However, from the view-
point of varieties of products, there are many more products subject to
regulation by market mechanism than there are products subject to planned
management. Although the output value of the former is not large, they.are
still necessary for the people. Thus, regulation by market mechanism is a
necessary complement to planned management. At the same time, it should be
pointed out that we must apply the law of value when pursuing planned
management. All consumer goods in our country are exchanged through markets
and are freely bought by consumers according to their own choices. A con-
siderable proportion of the means of production is also exchanged through
markets. Thus economic personnel (including planning personnel) must regu-
larly make market surveys and familiarize themselves with the laws operating
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in the market. In recent years, the reason we stressed the role of market
mechanism in reforming the economic management system was, that our economic
personnel paid too little attention to market conditions and studying
economic laws. It is wrong to juxtapose market mechanism and planning regu-
lation without realizing that the latter is the main body. It is also wrong
to think that planned management can be conducted without studying the role
of regulation by market mechanism, or even to regard utilization of the
role of market mechanism as a kind of capitalist liberalization. In order
to eliminate the existing phenomenon in which production is separated from
marketing, we must continue to thoroughly study market activities and fore-
cast market trends, and promptly revise plans for production and purchasing.
Upon discovering the nonconformity of production with demand, we must adjust
planned prices. Over the last few years, in the reform of the economic
management system, we have gradually implemented the.following measures with
regard to circulation:
First, the system of monopoly purchase and marketing by the state of many
daily-use goods has been changed. Apart from grain, cotton and other vital
consumer goods, and petroleum, coal, timber and other important means of
production, common commodities can be subject to purchasing plans laid down
by commercial departments according to market demands, to the production
plans worked out by manufacturers in the light of market demands and to the
purchasing plans of commercial departments. Factories without sufficient
production assignments can change their products themselves and look for
markets. Within limits set by the state, manufacturers can deal directly
with retail shops in many items of daily-use goods which the state allows
to be marketed in local areas. These transactions need not be handled
through wholesale companies. Some commodities can be sold in stores set up
by the manufacturers themselves. Commercial departments can purchase many
daily-use goods. They can refuse to purchase products not readily market-
able. Manufacturers can market products not purchased by commercial depart-
ments. Since monopoly purchase and marketing of daily-use goods by the state
have been changed into selective purchase and self-marketing, the problems of
having many products overstocked or out of stock for a long time have
initially been solved, thus reducing waste.
Second, we have increased circulation channels and reduced circulation links.
In the past, urban commerce was monopolized by state-owned commercial depart-
ments, rural commerce was monopolized by supply and marketing cooperatives,
and import and export trade was monopolized by the state foreign trade
departments. Thus, the market was excessively controlled and the national
economy was hindered from growing healthily. At present, while the commer-
cial departments continue to play a leading role in the market, manufacturers
have been allowed to directly market some industrial goods. Some special
companies set up by the industrial departments have also been allowed to
directly market products (such as machinery and electrical appliances).
Communes, production teams and peasants are allowed to sell their products,
within the limits set by the state, in urban agricultural and sideline product
markets. The state also allows some areas and factories to handle import and
export under the unified leadership of the foreign trade departments, or to
handle import and export jointly with special foreign trade companies. This
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reform has played an important role in promoting product exchange between
urban and rural areas and between China and other countries. Of course,
when we give play to market mechanism, it is difficult to avoid some illegal
activities, such as speculation, smuggling and evading taxes. Therefore,
the state has to intensify market management at the same time.
The correct handling of the relationship between planned economy and regula-
tion by market mechanism is one of the important links in our reform of the
system. We have appropriately expanded the scope of regulation by market
mechanism and paid attention to utilizing economic levers in our planned
management. Experience over the last 3 years has proved that these reforms
have achieved marked results. In order to bring the positive roles of these
reforms into play and to prevent negative roles, we must intensify planned
management, properly utilize economic measures, use economic levers to
handle the economy, step up economic legislation, and strengthen supervision
and inspection by customs and industrial and commercial administrative
bureaus. Just as the rule of law must be instituted in the practice of
democracy, market control must be strengthened in the practice of market
regulation. Failure to implement regulation by market mechanism or loosen-
ing market control are equally unfavorable to the development of the socialist
economy.
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IS THERE ANY CONTRADICTION BETWEEN THE APPROPRIATE RESTORATION AND DEVELOPMENT
OF THE INDIVIDUAL ECONOMY AND THE PAST PRACTICE OF TRANSFORMING IT?
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 33-34
[Article by He Jiangzhang [0149 1696 4545]]
[Text] The individual economy in cities and towns has been restored and has
developed considerably over the past few years; the number of people
employed jumped from 150,000 in 1978 to more than 1 million by the end of
1981. This change has caused some comrades to harbor a doubt: Does this
situation not mean that the socialist transformation of the individual econ-
omy in the past was wrong? This is a question that must be clarified.
First of all, it must be affirmed that big achievements have been made in
carrying out socialist transformation of capitalist industry and commerce.
The "Resolution on Certain Questions in the History of Our Party Since the
Founding of the PRC" points out that "it is a great historic victory." In
1952, the output value of state-owned industry accounted for 41.5 percent
of the gross national output value, that of state-private joint industry for
4 percent, that of cooperative industry for 3.3 percent, that of capitalist
industry for 30.6 percent and that of individual handicraft industry for
20.6 percent. State commerce accounted for 16.2 percent of the total retail
volume of social commodities, state-private joint commerce for 0.4 percent,
cooperative commerce for 18.2 percent, private commerce for 60.9 percent and
peasants retail for 4.3 percent. That means that industry at that time,
particularly the commercial sector, was under the dominance of the capital-
ist economy and the individual economy and that the question of "which will
win" as between socialism and capitalism had yet to be answered. In order to
overcome capitalism, it was imperative to carry out socialist transformation
of the capitalist economy and individual economy, and there was an objective
need for developing social productive forces. By that time, the capitalist
relations of production were not in line with big economic construction, and
it was difficult for the individual economy to develop because it was
scattered, backward and lacked funds. Individual commerce and industry were
almost at a standstill prior to socialist transformation. Between 1952 and
1955, the output value of individual handicraft industry dropped from 20.6
percent to 14.8 percent of the total industrial output value. Following
gradual socialist transformation, the handicraft industry made rapid progress
in production because of concentrated strength, division of work and more
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funds. For example, between 1953 and 1957, the labor productivity of the
staff and workers of the handicraft cooperatives in Beijing Municipality
grew an average of 16.3 percent annually. What is more important, the
socialist transformation of individual industry and commerce helped get
rid of the soil that bred capitalism, and it consolidated the position of
socialism and answered the question of "which will win."
But at the same time some mistakes occurred in the process of socialist
transformation. After the summer of 1955, the transformation of agricul-
tural cooperatives, handicraft industry and individual commerce was done too
hastily, roughly and dogmatically and, as a result, this work left a legacy
of some problems that existed for quite a long period. What was the reason
for these problems? Comrade Chen Yun pointed out at that time that, in the
process of cooperativizing the handicraft industry, there was too much
merging and there was unified calculation of profits. Consequently, the
quality and varieties of some handicraft products dropped as compared with
what they were in the period when everyone was managing his own business.
Following merging, some handicraft units in the service sector were greatly
inconvenienced, and so were residents. It was in this situation that Com-
rade Chen Yun proposed that "the production of a considerable part of
industrial products, handicraft products and agricultural sideline products
and commerce must be carried out dispersedly and with dispersed management";
"small businessmen and peddlers must manage their own businesses within the
framework of cooperative groups, and this situation must be maintained for
a long period of time." ("New Questions Following the Basic Completion of
Socialist Transformation") He also said: "The situation of our socialist
economy should be like this: With regard to industry and commerce, the state
and collective management are primary but industry and commerce are supple-
mented by certain types of individual operations." (ibid.) It can be seen
that the method that is used today for appropriately restoring and developing
the individual economy was suggested by Comrade Chen Yun more than 2 decades
ago. At that time, he suggested some measures to solve the partial short-
comings and mistakes under the premise of fully affirming the great and
decisive victory of our socialist transformation. Today we are merely imple-
menting these measures, and we are not denying the necessity and correctness
of socialist transformation. By so doing we will be able to make the struc-
ture of all ownership at the present stage accord with our national condi-
tions so that this structure will become more beneficial to activating the
economy and to promoting the healthy development of our socialist construc-
tion.
Today we are appropriately restoring and developing the individual economy,
but this does not mean that we are restoring it to the situation prior to
socialist transformation. The range of the individual economy at the present
stage is limited, while in the past it covered everything. Furthermore, after
socialist transformation was basically completed, and particularly under
today's circumstances in which the economy under the system of socialist
public ownership predominates, the individual economy is no longer at a
crossroads; it depends on and is a necessary complement to the socialist
economy. We can resort to economic and administrative ways to bring the
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individual economy onto the path of serving socialist construction. Of
course, the individual economy has its spontaneity and blindness and it
might be contradictory to the planned development of the national economy.
Therefore, in order to avoid passivity, it is necessary to strengthen con-
trol over the individual economy.
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HOW DO WE UNDERSTAND THE COEXISTENCE OF DIVERSIFIED ECONOMIC FORMS AT THE
PRESENT STAGE IN OUR COUNTRY?
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 34-35
[Article by Wu Shuqing [0702 2885 7230]]
[Text] Since the 3d Plenary Session of the 11th CCP Central Committee and
following the readjustment and transformation of the national economy, there
have existed diversified economic forms in our country. Some comrades do
not have a good understanding of this situation, and they even wonder whether
the past socialist transformation might have been wrong and that we are
retrogressing. In order to eliminate such doubts, it is imperative for us
to compare the existence of diversified economic forms at the present stage
with the existence of diversified economic forms prior to socialist trans-
formation and analyze them.
First of all, there existed three basic economic sectors prior to the com-
pletion of socialist transformation. They were the socialist state economy,
the individual economy of peasants and handicraftsmen, and the capitalist
economy. It is true that at that time the socialist state sector of the
economy had already grasped the major state economic lifelines and had even
established a leading position in the struggle against the capitalist
economy. But the socialist economic sector was not yet in a predominant
position throughout the whole national economy. The individual peasant
economy was still in the predominant position in agriculture, which was the
basis of the national economy. The capitalist economy still dominated a
considerable proportion of industrial production as well as the circulation
of commodities and, at that stage, it still constituted a power that could
in no way be neglected. Thus at that time, diversified economic forms
"coexisted" under the situation in which the economy with public ownership
was not in predominant position. Consequently, our society was still at the
stage of transition and it was yet to become a socialist society.
But today, basic changes have taken place in the situation of our socialist
economy. The socialist state economic sector and the collective economy are
in predominant positions in regard to the volume of the means of production
and funds, in the number of laborers employed as well as in providing society
with products and labor services and in national revenues, and they have also
become the basic economic forms of our country.
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Marx pointed out: "In all social forms, there is a certain production which
dominates the position and influence of all other production and therefore
its relations dominate the position and influence of all other relations.
It is a generally illuminating light and all other colors are submerged in
it and consequently they change their features." ("Selected Works of Marx
and Engels," Vol 2, p 109) At the present stage, socialist public owner-
ship is this "illuminating light" in our socialist economy. As socialist
public ownership is in a predominant position, the nature and features of
other economic sectors have consequently changed drastically compared with
the past.
.With regard to the individual laborer economy that still exists within
certain limits at the present stage, it is true that this kind of economy
still only possesses a little of the means of production and, therefore, it
has a nature of private ownership. However, it differs with the individual
economy in the old society. Such individual laborer economy also has
experienced big changes if it is compared with the individual economy that
widely existed prior to the socialist transformation. The individual economy
at that time was an economy.at the crossroads. It might have taken the
socialist road or might have combined with the capitalist economy to become
a hotbed for the emergence of capitalism. Now, all the related aspects of
the individual economy such as range, scale, mode, the resources of raw
materials, sales prices, and the standard for charges are all conditioned
and influenced by the socialist economy and are under the leadership and
management of various government departments concerned. So the existence
and development of such an economy depends on socialist public ownership; it
is complementary to the economy with socialist public ownership and it dis-
plays a role of "making up for omissions and deficiencies."
Our country has allowed foreign economic institutions and individuals to
invest and undertake various forms of economic cooperation under the laws
and regulations of the PRC. All such foreign enterprises, economic institu-
tions, and joint ventures between Chinese and foreign capital must abide by
the laws, regulations and policies of our country. Because of this, they are
all different from the capitalist economy in the past. Their existence will
in no way affect our socialist economic system; on the contrary, they are in
the interests of our modernization program.
Second, prior to the completion of socialist transformation, the contradic-
tion between the socialist economy and the capitalist economy was the main
contradiction of the transitional economy. The nature and the trend in the
development of various nonsocialist economic sectors were contradictory to
the growth and development of the socialist economy. Their contradiction
with the socialist economy was the main contradiction and the question of
"which will win" had not yet been resolved. This was the reason why it was
imperative to carry out socialist transformation of the means of production
with private ownership and realize the transition from new democracy to
socialism.
The question of "which will win" between socialism and capitalism was
basically resolved following the completion of socialist transformation,
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while the contradiction between people's increasing material and cultural
needs and backward social production began to become the principal domestic
contradiction. An important measure for resolving this contradiction was to
carry out a socialist modernization program and develop social productive
forces in a big way. Under such conditions, the contradiction between the
socialist economy and other economic sectors became a secondary contradic-
tion. Under the leadership, supervision and influence of the socialist
economy, it was important to use these economic sectors to develop produc-
tion and improve people's livelihood. For example, restoring and developing
a certain quantity of individual economy is in the interests of increasing
production, as are promoting market activities, arranging employment, bring-
ing convenience to the masses, improving the management of the economy with
public ownership and improving services. The spontaneous tendencies of this
individual economy can be resolved through strengthening management. With
regard to such economic forms as joint ventures between China and foreign
companies and foreign capital, it is true that they have a feature of seeking
profits, but what is more important is that the permission given for the
existence of these economic forms is in the interest of absorbing foreign
capital, importing new technology and equipment, and learning from advanced
management systems. All this will benefit our socialist modernization pro-
gram. But we must guard against the negative influences of these economic
forms and the influence of decadent capitalist ideology and fight against
their corrosive influence.
In short, the coexistence of diversified economic forms at the present stage
in our country is totally different from the coexistence of diversified
economic sectors prior to socialist transformation. The existence of
diversified economic forms does not mean a "retrogression" to the situation
prior to socialist transformation. It is in fact a necessary readjustment
in production relations under the premise of upholding basic socialist
principles and it is in line with our national conditions. 'The coexistence
of diversified economic forms is not an expedient measure, it will continue
for a long time to come.
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STRENGTHEN RURAL PARTY ORGANIZATIONS AT THE BASIC LEVEL
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 36-39, 43
[Article by Jing Dong [0079 2639]]
[Text] A very important problem at present is to strengthen the rural party
organizations at the basic level, give full play to the role of rural party
branches as fighting bastions and to the exemplary vanguard role of party
members, and lead the rural cadres and commune members in building socialist
material and spiritual civilizations.
Generally speaking, the party organizations at the basic level in China's
broad rural areas are good. This must be fully acknowledged. The rural
areas throughout the country are full of vitality. The commune members are
full of joy. Development of agriculture is on the ascendant. How has this
situation come about? First of all, the party's line, principles and poli-
cies are correct. In addition, this situation is inseparable from the
efforts of rural party organizations at the basic level and of commune mem-
bers. In the past few years, in various rural areas, the party organizations
at the basic level and the commune members have gotten rid of "leftist"
ideological trammels; enthusiastically propagated and implemented the party's
line, principles and policies; persisted in socialist collectivization and in
the public ownership of the basic means of production such as land; ener-
getically carried out and perfected various forms of the production responsi-
bility system; developed agricultural production in line with local condi-
tions; and done a great deal of meticulous ideological and organizational
work. Those who originally failed to see why various forms of the agricul-
tural responsibility system had to be carried out have through practice seen
the advantages of this system. They have gradually realized why this system
must be carried out, and they have regained the initiative. There has been
great improvement in the work style of party members and cadres. The rela-
tions between the party and the masses are becoming closer every day. In
short, the great majority of the rural party organizations at the basic
level are combatworthy.
Then, can we say that we do not have any problems? Of course not. We still
have many problems, and the problems in some places are very serious. The
rural party organizations at the basic level have the problem of slack and
weak ideological work. For instance, owing to the long-term influence of
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"leftist" guiding thinking, there are still obstructions to the implementa-
tion of the party's and government's rural policies; since the carrying out
of the production responsibility system, the problem of how to correctly
handle the relations between the state, the collective and the individuals
has become prominent; gambling and superstitious activities are rampant in
some places; civil disputes and criminal offenses often take place; in par-
ticular, illegal and criminal activities such as corruption and embezzle-
ment, speculation and profiteering, smuggling and appropriating collective
and state property and materials are rampant in some places. To solve
these problems, the rural party organizations at the basic level must be
strong and have combat effectiveness. But some party organizations at the
basic level are at their wit's end and powerless in the face of these
problems. Some are even in a state of paralysis and disintegration, and
many problems are not dealt with. This phenomenon merits attention.
Our party is in power. The rural party organizations at the basic level are
the rural basic leading cores. The party's line, principles and policies
must be propagated and implemented through the party organizations at the
basic level. Work and tasks in the rural areas must be completed by the
rural cadres and the peasant masses under the guidance of the party organi-
zations at the basic level. Contradictions in the rural areas must be
solved through profound investigation and study and meticulous ideological
work carried out by party organizations at the basic level. Unhealthy
trends in the rural areas, especially illegal and criminal activities in
the economic field, must be combated by the rural basic-level cadres and
peasant masses under the guidance of party organizations at the basic level.
We must first do a good job in strengthening the rural party organizations
at the basic level so that we can build socialist material and spiritual
civilizations in the rural areas.
Since the extensive implementation of various forms of the production
responsibility system in the rural areas, some comrades have felt that it
is not so important to strengthen the rural party organizations at the basic
level. Some people say: "Now that grain and cotton output quotas are
fixed for each household, the party branches do not have to bother about
production. Since each household is solely responsible for its own produc-
tion, there is no longer any need for the leadership of the party branches."
This view is obviously wrong. Since the implementation of various forms of
the production responsibility system, the tasks of the rural party organi-
zations at the basic level have not, in the slightest degree, become lighter.
On the contrary, the organizations have heavier tasks because many new
situations and problems have emerged since implementation of the production
responsibility system. We will not be able. to tackle these new situations.
and problems without the leadership of party organizations at the basic
level. We know that implementation of the production responsibility system
has brought into play the production initiative of the peasants. This is
excellent. But because some people still have ideas and habits left over
from the old society, and furthermore are influenced by the decadent bour-
geois ideology and way of life, they sometimes show no consideration for
the interests of the state and the collective. This must not be overlooked.
There are the following phenomena: Some people have, disregarding the
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requirements of state plans, expanded the areas grown to those industrial
crops from which a high income can be obtained; some people only care for
selling their agricultural and sideline products on the free market at high
prices regardless of whether state purchase quotas are fulfilled; some
people are not enthusiastic about fulfilling the tasks of the collective,
are not willing to participate in public welfare work and in the work of
showing consideration for the families of armymen and martyrs, the "five
guarantees" households and households with material difficulties, but only
think of attaining individual wealth; and by doing harm to the interests of
the state and the collective, some people try to get petty advantages at
the expense of the state and collective economies under all kinds of pre-
texts, fleece the state and even violate the law and discipline. If these
problems are not solved, the production responsibility system cannot be
consolidated and perfected, nor can the rural economy develop healthily.
Therefore, the party's ideological and political work in the rural areas
must be strengthened; it cannot be weakened. Since implementation of the
production responsibility system, the rural party organizations at the basic
level have had a great deal of work to do. It is not true that they are not
essential.
In the final analysis, the reason why the rural party organizations at the
basic level still have problems and why the leadership of the party has been
ignored and even abandoned since implementation of the production responsi-
bility system is that the influence of the leftist erroneous tendency has
not been eliminated. In the past, people always talked about "taking class
struggle as the key link." They were accustomed to this way of doing things,
and they had the old approach to their work. Since the 3d Plenary Session
of the 11th CCP Central Committee, the focus of the work of the whole party
has been shifted to socialist construction by centering on the four mod-
ernizations instead of on political movements. Some comrades have not been
able to adapt themselves to this new situation. Since implementation of the
production responsibility system, especially since many places began to
implement the system of fixing output quotas for each household or of
assigning work to each household, the past method of urging the peasants to
carry out plowing and planting and of relying on administrative orders has
become outmoded, and these comrades are-not accustomed to the new system.
It is just as some people say, "The old methods did not work, but we do not
understand the new approach." As a result, they do not know how to take
charge of their work. Many comrades have long been engaged in party work at
the basic level, but under the influence of the leftist erroneous tendency,
they amassed a lot of "experience" in carrying out class struggle and did a
lot of administrative work instead of party work. In reality, they are not
sufficiently experienced in party work. Therefore, party organizations
at the basic level must eliminate the leftist erroneous tendency. They must
shift the focus of their work not only from class struggle to economic con-
struction, but also from administrative work and production activities to
party work, learn how to carry out party work and strengthen party leader-
ship.
What is party work? In the main it is building the party and carrying out
ideological and political work. Rural party organizations at the basic level
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have the responsibility of leading other rural basic level organizations
such as organs of political power, economic organizations and mass organi-
zations. But this does not mean that party organizations at the basic level
should take on everything. Being functions of collective economic units,
the leading economic functions of production brigades and production teams
must be retained. Being functions of organs of political power at the basic
level, the functions of communes (towns) and production brigades (villages)
must be strengthened. Commune party committees and production brigade
party branches should support organs of political power and economic
organizations at the basic level in shouldering their tasks, but they should
not interfere in specific administrative affairs and production activities.
Besides, by relying on the role of party members in various leading posi-
tions, the leadership of party organizations at the basic level over other
basic level organizations and the broad masses in the rural areas is
realized mainly through strengthening ideological and political work. In
other words, party organizations at the basic level should at all times pay
attention to their own building and frequently educate party members to
maintain close ties with the masses, do ideological work and play an
exemplary vanguard role among them, closely unite them around the party
organizations and lead them in their advance. The reason why our party can
shoulder the responsibility of leading the broad masses is that the party's
line, principles and policies represent the interests of the broad masses
and that, through propagation, the party's line, principles and policies
can be implemented among the masses until the masses understand their own
interests, unite and work hard for their own interests. Therefore, the
fundamental way to bring into full play the leading role of rural party
organizations at the basic level is to strengthen the building of these
party organizations. Otherwise, strengthening party leadership will be
nothing but empty talk.
Then, how should we strengthen party organizations at the basic level? We
should start from the specific conditions of local places. Generally
speaking, we must strengthen the leading groups, enhance the political
quality of party members, strengthen the regular activities of party
organizations, correct unhealthy trends and carry out the struggle against
the corrosive influence of bourgeois ideology.
The key link for strengthening party organizations at the basic level is to
do a good job in building the leading groups. Whether the party organiza-
tions at the basic level are firm and energetic or lax and weak is deter-
mined mainly by the status of the leading groups. Many party members in
some leading groups are getting on in years. These comrades have been
trained and educated by the party for many years. They are intrinsically
good and have work experience. But they are not very vigorous. Further-
more, some of them have been deeply influenced by the "leftist" ideology,
so they lag behind the situation and cannot efficiently carry out the
party's line, principles and policies. Some leading groups have redundant
personnel who cannot work with one mind and who always engage in disputes
over trifles; they cannot form a firm and energetic leadership core. The
cultural level of some members of leading groups is so low that they cannot
even transmit to the masses the essence of instructions from the CCP Central
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Committee or from a higher party committee, to say nothing of leading agri-
cultural modernization. What merits special attention is that some members
of leading groups are not pure. Some bad elements have sneaked in, or good
members have degenerated because of the corrosive influence of bourgeois
ideology and of the bourgeois way of life. They have embarked on the
criminal road of engaging in graft and embezzlement, speculation and
profiteering, smuggling, bribery and appropriation of state and collective
property. Therefore, we must clear bad and degenerated elements out of the
party so that we can build the leading groups well. Those who politically
undermine the party's regular activities and who economically violate law
and discipline must not be allowed to remain in the leading groups. In
addition, we must find a way for the leading groups to solve the problem
of their members being advanced in years, too large in number and too low
in cultural level, and fill the leading groups with educated middle-aged and
young party members who can resolutely implement the party's line, principles
and policies. We must do the work of readjusting the leading groups strictly
according to the election system stipulated in the party constitution,
namely, party branch committees should be elected in a democratic way by
party members. Generally speaking, it is not appropriate to adopt the
methods designated by higher party committees. In some places, party
branches have not been reelected for many years. These party branches
should energetically create conditions and carry out reelections according
to the stipulations of the party constitution. In the future, they will be
required to have an election once a year. Through regular elections we can
build firm and energetic leading cores which have strong party spirit and
good work style.
The total number of rural party members throughout the country is large.
Besides developing appropriately and in a planned way new party members who
are really up to standard in those places where party organizations at the
basic level are comparatively good, we must also educate the party members
we now have and raise their levels. Comrade Deng Xiaoping pointed out 2
years ago that some of our party members did not have the requisite qualifi-
cations. This problem has not yet been totally solved, The great majority
of rural party members are intrinsically good, but a certain number of them
have low political consciousness, weak party spirit and low sense of organi-
zation. They have neither committed any mistake nor played any role. Since
implementation of the production responsibility system, some party members
have had the following idea: "Since output quotas are fixed for each house-
hold, everything we do is to make individuals well off; and since production
tasks are assigned to each individual, everything we do is in regard to
individual interests." They do not bother any more about the ideal of com-
munism, the cause of the party, and the interests of the state and collec-
tive. Some party members do not want to be cadres any longer, saying that
cadres are always at a disadvantage. Some party members even say: "Eating
and spending money require effort, but whether one is a party member does not
make much difference." They are unwilling even to participate in the party's
regular activities, let alone fulfilling the tasks assigned by the party.
With regard to this phenomenon, we must strengthen the education of party
members and change the situation in which some party members do not have the
requisite qualifications. We must understand that implementation of the
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production responsibility system means that we must set higher requirements
for party members and not vice versa. Party members must not only be like
commune members in conscientiously implementing what is stipulated in the
responsibility system, but also maintain close ties with the masses, do
ideological work among the masses and energetically do propaganda work, and,
take
the
lead
in implementing the party's principles and policies. They
must
take
the
lead in implementing contracts and fulfilling the purchase
tasks
of
the
state and the tasks assigned by production teams. They must
take
the
lead
in participating in public welfare labor and actively help
households with material difficulties to solve their problems in production
and livelihood. They must take the lead in observing law and discipline and
in combating unhealthy trends, and guide the masses in becoming well off
through manual labor. They must take the lead in cultural study and in the
study of scientific knowledge, and popularize advanced agricultural tech-
nology. They must take the lead in carrying out family planning and in
changing prevailing habits and customs. In short, they must play an
exemplary vanguard role in everything they do. To do all this will be
utterly impossible if we do not have the lofty ideal of communism and the
socialist consciousness of loving the country and the collective, and if we
do not have the revolutionary spirit of utter devotion to the public and of
serving the people without thought of self. In order to build well party
organizations at the basic level, we must adopt practical methods and improve
the political quality of rural party members. Training party members by
rotation is carried out in some places during the slack season in farming.
Education on the party's basic knowledge, on the party's principles and
policies and on the situation and tasks is also carried out in these places.
Practice has proved that good results can be obtained in this way.
Perfecting the organizations' regular activities is an important part of
strengthening party organizations at the basic level. Our party is the van-
guard of the proletariat and is a united militant collective composed of
advanced proletarians. One important reason why it has become the leading
core of the broad masses and why it has invincible strength is that it is an
organization. Engels said: "Organizations are the most important weapons."
("Collected Works of Marx and Engels," Vol 19, p 284) The combat effective-
ness of rural party organizations at the basic level is to a great extent
determined by whether the organizations' regular activities are perfected.
If a party organization at the basic level does not have a strict system for
its activities, or if it has had no activities for a long time, is it worthy
of the name of organization? The system of "three meetings and one lecture"
(the party branch committee meeting, the-general meeting for all party mem-
bers, the party group meeting and the party lecture) is indispensable for
every party branch. Some party branches have not had a meeting for half a
year or even a full year. They do not study or discuss the party's instruc-
tions, principles and policies. They do not investigate or study the
problems in practical work or the ideological state of the cadres and masses.
They do not propagate correct things; nor do they praise good people and
good deeds. They do not criticize erroneous things; nor do they combat
evildoers and evil deeds. If a party branch continues to act in such a way,
how can it become a powerful fighting force? Some people say that since
implementation of the responsibility system in production, people have been
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very particular about using their own time and that, therefore, the party's
regular activities should be relaxed. This viewpoint is wrong. We must
understand that since implementation of the production responsibility
system, most party members and commune members-have carried out their
activities individually. It is necessary to carry out more strictly the
system of regular activities. Otherwise, party members and commune members
will become slack and perfunctory, and in the end the party.organizations
will be paralyzed and disorganized. This is very dangerous. Of course, we
should be flexible in arranging time for holding meetings and for conducting
party lectures. We should do our best not to take up,.. or to take up as
little as possible, the time for productive labor. In short, if we want
regular activities to be in line with the specific conditions of local
places in a more appropriate way, we cannot but persist in the system of
maintaining the party's regular activities.
Public security in some rural areas is bad, and so is the general mood of
society. This is closely related to the unhealthy tendency or even criminal
activities of some party members and cadres. If a party member or a cadre
is light fingered, he will not be able to carry out mass work and change
the general mood of society. Why is it that gambling, superstitious activ-
ities, and speculation and profiteering in some places, smuggling. activities
in some coastal areas and border regions, and abnormal religious activities
in some regions of minority nationalities are so rampant? The reason is
that either some party members and cadres have directly participated in
these activities or that these activities are indirectly related to them.
This phenomenon must not be allowed to continue. Correcting unhealthy
tendencies in the party and seriously punishing party members and cadres
who have broken the law and engaged in criminal activities have an important
bearing on enhancing the party's combat effectiveness and changing the gen-
eral mood of society. At present, we must regard the struggle against
criminal activities in the economic field as an important part of strengthen-
ing the rural party organizations at the basic level. With regard to party
members and cadres who indulge in unhealthy tendencies, we must criticize
and educate them, and help them to realize their mistakes and resolutely
correct them. With regard to a small number of party members and cadres who
have violated law and discipline, we must seriously punish them according to
party discipline and state law. We must not tolerate their crimes. Other-
wise, evil will spell ruin if left unchecked, and party organizations at the
basic level will not be able to be strengthened.
The task of strengthening rural party organizations at the basic level is
arduous. How should we do it? In some places experiences have been accumu-
lated. According to an investigation, the experiences are mainly as follows:
Some leading groups of party organizations at the basic level have been.
rectified through summing up their experiences in work; some leading groups
of party branches have been reelected in a democratic way according to the
party constitution to realize rectification; and some party organizations
at the basic level have carried out all-round rectification by turns and in
groups. These methods have brought good results. They are feasible. When
dealing with specific problems, the localities may try to find their own
ways. No rigid uniformity should be sought. But one point must be stressed,
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namely, no matter what methods are adopted, higher party organizations
should send their members to assist party organizations at the basic level.
Particularly with. regard to party organizations at the basic level which
are already in a state of paralysis or semiparalysis, their problems will
not be solved if they do not make great efforts, even though the higher
party organizations might send their members to assist the rectification work
at the basic level. Because various unhealthy tendencies are still growing
and spreading over all these places, it is not easy to distinguish problems,
and it is even more difficult to solve problems. We must not belittle these
things.
To strengthen rural party organizations at the basic level, party committees
at all levels must change the situation in which the party does not promote
the party's cause. Although party committees have many things to attend to,
they must not overlook the building of the party. Under the present circum-
stances in which rural party organizations at the basic level are confronted
with many problems, we must devote more effort to strengthening our investi-
gation and study, and carry out the work in this respect step by step, in a
planned way and by stressing focal points. Particularly in places where the
corrosive influence of capitalist ideology and the tendency of bourgeois
liberalization are serious, we must do our best to rectify party organiza-
tions at the basic level which are in a state of paralysis or semiparalysis.
Otherwise, the party organizations in these places will exist only in name
but not in reality, and the communist methods will vanish. Some leading
comrades of party committees only pay attention to economic work; the work
of building the party has no place in their minds. This phenomenon must be
changed. It is doubtlessly true that party committees must pay sufficient
attention to economic work; the problem is how to carry out this work. The
CCP Central Committee has pointed out that we must do a good job in dividing
party and government work. This problem must be further solved. Party com-
mittees at all levels must emancipate themselves from their busy administra-
tive affairs and from their vocational work, and put emphasis on doing a good
job in building the party. Only if we do a good job in building the party,
only if we give full play to the role of party committees as the leadership
cores, only if we give full play to the role of party branches as fighting
bastions And only if party members can play an exemplary vanguard role, will
there be a reliable guarantee for fulfilling various tasks. Otherwise, the
building of the party will be neglected, and the party organizations and
party members will not be able to play their proper roles. As a result, no
matter how specifically we carry out economic work or any other work, it will
be very difficult to achieve any success. Of course, we cannot carry out
party building in an isolated manner, but must carry it out in coordination
with the central tasks at a given time and in a given place. The building
of rural party organizations at the basic level must be carried out in com-
bination with the work of consolidating and perfecting the production
responsibility system. Otherwise, this work cannot be done well.
CSO: 4004/34
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BE BROAD-MINDED ABOUT REJUVENATING THE CADRE RANKS
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 40-43
[Article by Luo Yinghuai [5012 2019 2037]]
[Text] We are now faced with the extremely important task of selecting tens
of thousands of middle-aged and young cadres to enter leading bodies at
various levels and of making the leading bodies more revolutionary, younger,
better educated and more professional. This is the most vital problem we
must solve in restructuring organs. Ensuring that this task is done is the
glorious duty of our veteran cadres. Our veteran cadres must clearly under-
stand their responsibility, be broad-minded about rejuvenating the cadre
ranks, withdraw with lofty sentiment to the second or third lines, and make
a final historical contribution to the party and people.
To be broad-minded, we must first proceed from the overall and long-term
interests of the party's cause and treat the problem of rejuvenating the
cadre ranks with communist foresight and vision.
The object of our struggle is to build a strong and modern socialist country
and then realize communism, the most lofty ideal of mankind.. This is an
extremely important and arduous undertaking requiring many generations of
sustained struggle. The continuity and carrying forward of the revolu-
tionary cause of the proletariat require that we keep passing the baton from
generation to generation. This is a problem of old cadres handing their
batons over to new cadres. Comrade Mao Zedong said: "If our party does not
have a great many new cadres working in unity and cooperation with the old
cadres, our cause will come to a dead end." ("Selected Works of Mao Zedong,"
Vol 3, p 782) The historical experience of our party has proved that the
work of selecting and training revolutionary successors and letting out-
standing middle-aged and young cadres take over from old cadres not only has
a bearing on advancing the revolutionary cause pioneered by the older genera-
tion of proletarian revolutionaries but also a bearing on the future and
destiny of the party and state.
Take our army for example. Here, it is even more important to speed up the
rejuvenation of the cadre ranks. Our army is a strong pillar of the
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dictatorship of the proletariat. It shoulders the important task of defend-
ing the nation, and is ready at all times to strike at invaders. If war
breaks out, it must fight large-scale battles, tough battles and battles
under unfavorable conditions. Even in peacetime it must carry out arduous
tasks. Therefore, this not only requires that the commanders and fighters
at various levels have good military and political qualities, but also
requires them to be physically fit and to be full of vim and vigor. Only in
this way can they cope with possible emergencies. It has been more than half
a century since the founding of our army. Many of the old cadres have spent
a whole generation fighting all over the country. It is said that "old
people still have high aspirations," but they are after all getting on in
years and gradually losing their vigor. Replacing the leading members and
rejuvenating the cadre ranks has become an extremely urgent historical task
facing our army. If we do not step up the tempo, firmly grasp the "inter-
planting" of new "seedlings" in the leading bodies at various levels and
conscientiously solve the problem of rejuvenating the cadre ranks, we will
be unable to fulfill the arduous task entrusted to us by the party. In a
military exercise held at a certain place in north China, the contrast was
extremely vivid: Large numbers of middle-aged and young cadres in the prime
of life were active at various levels of command. They were full of vim and
vigor, full of spirit, were hard working in the tense and difficult situa-
tion, and displayed the vitality and talent of the young. However, although
some of the overage comrades were full of high aspirations and worked
tenaciously, they felt themselves unequal to the continuous tension and
burden of work because of their physical conditions and energy levels. At
the end of the exercise, some of the old comrades emotionally said: When we
led the units into battle during the war years, we could go sleepless for
several nights without feeling any fatigue. During this exercise, we have
only taken a few extra shifts, but we are already feeling the strain. This
is the result of age. If we are like this during an exercise, how can com-
rades who are old and in poor health lead units to fight large-scale battles,
tough battles and battles under unfavorable conditions in war? If we have to
change the commanding officer at a critical juncture in a battle, we are
bound to suffer a great disadvantage. Many old comrades are deeply aware of
this point. Valuing the interests of the party above everything else and
proceeding from the long-term construction of the units, they are seriously
considering and handling the problem of rejuvenating the cadre ranks. Their
spirit of standing high and seeing farther ahead is worth advocating.
For the sake of selecting middle-aged and young cadres and bringing up suc-
cessors to the revolutionary cause of the proletariat, our party has made
unremitting efforts since the 1960's and paid a high price for valuable
experience. In recent years, we have selected a number of cadres who are in
the prime of life and possess both ability and political integrity to
replenish leading bodies at various levels. However, judging from the
situation as a whole, progress in this work is still not fast enough, and
there is still no basic change in the age structure of leading bodies at
various levels. If this situation were to continue, a temporary shortage
of experienced cadres would be bound to appear, seriously jeopardizing our
party's cause. Therefore, stepping up the work of making the cadre ranks
more revolutionary, younger, better educated and more professional is not
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only a project of vital and lasting importance, but also a task of immediate
urgency. At present, we already have the conditions for basically solving
this problem. Since the smashing of the "gang of four," and particularly
since the 3d Plenary Session of the 11th CCP Central Committee, our party
has affirmed the correct political line, ideological line and organizational
line, and we can place this problem on the agenda for solution. At the same
time, many old comrades with higher consciousness are still alive, and they
can set the pace as well as overcome resistance. As long as everyone unifies
his understanding, acts selflessly and sets examples, this problem will not
be difficult to solve.
Some of our old comrades are highly dedicated to the cause of the revolution.
They feel that they are still in good health and can still work for a few
more years and make more contributions to the party. This spirit is indeed
highly commendable. However, we should think a bit further ahead. The num-
ber of establishment personnel in a leading body is limited. The greater the
number of old cadres, the less openings there will be for outstanding young
cadres. Some old comrades are definitely still able to work for a few more
years. However, if they work for a few more years, not only will the young
cadres have several less years of tempering, but this will also create an
"aging cycle" in the cadre ranks. If the old cadres vacate their posts and
let the outstanding young cadres receive tempering earlier, the time they
work for the party will not be several years but will be 10 or 20 years.
In this way we will be able to organizationally guarantee the continuity of
the line, policies and principles of the party, there will be successors to
our cause, and our cause will prosper and develop. Therefore, promptly
allowing young people to shoulder the burden and withdrawing to the second
or third line to pass on experience, give help and set an example are a
manifestation of farsightedness and concern for the party's cause. At
present, this is the foremost responsibility entrusted to our old comrades
by history. This plays a more significant role than working with all one's
might for a few more years.
To be broad-minded, we must have a correct attitude toward the young cadres
after they have taken up leadership posts, and we must enthusiastically
believe in, support, show concern for and help them.
First, we must believe that the young cadres are capable of shouldering the
burden of the revolutionary cause. Stalin said: "The youth are our future
and our hope. The youth have to take our place, the place of old people.
They have to carry our banner to final victory." ("Collected Works of
Stalin," Vol 13, p 226) Comrade Mao Zedong compared the young people to the
sun at 8 or 9 in the morning and placed his hope on them. However, because
of the force of habit, even now there are still people within our ranks who
look down on young people. They are worried that after taking up leadership
posts "these young people will make mistakes because of their lack of
experience, will let things fall apart because they are not authoritative
enough and will make a mess of things by failing to carry out work properly."
Actually, such anxieties and worries are groundless. The old comrades
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should think back on the process of their own growth. During the revolu-
tionary war years, were many of our present old comrades not commanding a
division or an army in battle against the enemy at the age of 20 or 30?
Chen Haisong, an army political commissar and also an outstanding young
commander of the 9th Red Army, was a regimental political commissar at 18,
a divisional political commissar at 19 and an army political commissar at 20.
He was only 22 when he died, but he had already commanded units in many
brilliant battles. At that time, the leadership had such great faith in us
and allowed us to shoulder important leadership work. At present, in the new
generation growing up under the education and training of the party, many
people are politically and ideologically much better than we were at that
time, especially in the field of cultural and scientific knowledge. As long
as we believe in them and boldly allow them to temper themselves in leader-
ship posts, they will grow up very quickly. As a matter of fact, many of the
middle-aged and young cadres have been very outstanding in their work after
taking up leadership posts. Divisional commanders and political commissars
of about 40, regimental commanders and political commissars of about 30, and
battalion commanders and political instructors in their 20's are mostly able
to lead units well. In a military exercise held in a certain part of north
China, the overwhelming majority of middle-aged and young cadres displayed
fairly high command ability and creativeness. Four young regimental com-
manders of a certain division fulfilled their tasks in an outstanding manner,
and all of them rendered meritorious service and received awards. This is.a
very good example.
Second, we must energetically support the work of middle-aged and young
cadres. Old comrades, educated for a long time by the party, have richer
experience. Whether enthusiastic support and help can be given to young
cadres has a very important bearing on whether they are able to grow up as
quickly as possible. The overwhelming majority of our old cadres have done
very well in this respect. They are deeply conscious of the righteousness
of the cause and have actively created conditions for the growth of young
cadres. They are enthusiastically and patiently passing on experience,
giving help and setting an example. However, there is also a small handful
of comrades who are able to enthusiastically support the work of young
cadres working. under them, but'when the young cadres are of the same grade
or have outstripped them, they do not feel so comfortable. This is incor-
rect. Zheng Banqiao of the Qing dynasty said in a poem: "The new bamboo
branches are taller than the old bamboo branches. They depend wholly on the
support of the old stems. Next year there will be more new branches. Bamboo
a hundred feet tall surrounds the pond." The new bamboo branches are taller
than the old bamboo branches and the new branches of tomorrow will grow into
bamboo a hundred feet tall because of the support of the old bamboo branches
and old stems. The growth of young cadres is the same. Indigo blue is
extracted from the indigo plant but is bluer than the plant it comes from.
That those who come after surpass the old-timers is a universal law govern-
ing the development of things. This is a manifestation of the prosperity
and development of our party's cause, and the old comrades should feel
heartened. We must take delight in and be good at becoming "a human ladder,"
help the young cadres "climb" to leadership posts at various levels, and
allow them to give full play to their wisdom and ability at appropriate
posts and in a broad field.
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Furthermore, we must correctly handle. the shortcomings of young cadres.
Comrade Mao Zedong repeatedly taught us that we must allow cadres to make
mistakes and to correct their mistakes. In everything, one divides into
two. The same as other cadres, young cadres cannot help having this or that
kind of shortcoming, or making this or that mistake in their work. Par-
ticularly when they lack experience, it is easier for this or that kind of
problem to appear. This is a normal phenomenon. However, there is a kind
of abnormal condition at present, namely, when a shortcoming occurs or a
mistake is made by old cadres, it can easily be forgiven but when the same
shortcoming occurs or mistake is made by a young cadre, it will invariably
lead to endless discussions and might even create a scandal. It might be
correct to set stricter demands on the young cadres, but "there is no pure
gold and no one is perfect." Not allowing them to have shortcomings and make
mistakes is asking too much from them, and this is metaphysical and wrong.
The correct attitude in dealing with young cadres is to judge the whole of
their work and particularly their essence and principal aspects. When they
have shortcomings and make mistakes, the old cadres must help them to analyze
the cause, sum up past experiences and lessons, and study ways to improve,
and when necessary, help them shoulder responsibility so that they will not
become overcautious just because of problems in their work. At the same
time, the old cadres must encourage them to boldly temper themselves, learn
from "a fall into the pit, a gain in the wit," and continue to mature.
Naturally, we must strictly examine and carefully choose the young cadres
preparing to enter leading bodies. We must pay close attention to selection
standards. We must select cadres in accordance with the criteria put forth
by the CCP Central Committee and thoroughly and carefully examine them one
by one. We must understand clearly the whole of their history, mainly
their stand during the "Great Cultural Revolution" and particularly their
attitude toward the line, principles and policies of the party since the
3d Plenary Session of the 11th CCP Central Committee. We must ensure that
young cadres entering leading bodies will be politically of one heart and
mind with the CCP Central Committee, and will be pure and dependable. We
absolutely cannot allow those who got their start through rebellion, who
are seriously affected by the factionalist mentality, who have taken part in
beating, smashing and looting, and who resist the line, principles and poli-
cies of the party, to get into the leading body. At the same time, we must
also pay attention to their military skills and vocational levels. We must
select cadres on the basis of the unity of their ability and political
integrity. If old comrades do not make the effort in selecting the right
people or do not properly hand over the work of the revolution, they will be
making an historical mistake.
To be broad-minded, we must also handle correctly the question of withdraw-
ing to the second or third lines. To select and utilize outstanding young
cadres and make the leading body revolutionary, younger, better educated and
more professional, we must arrange for some of the old cadres to leave their
posts to convalesce, retire or withdraw to the second line. There will be
people coming in and going out, and going out is for the sake of making room
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for people coming in. This is the demand of the development of the revolu-
tionary cause. There is a question of how to properly settle and look after
these old comrades. We have already done a great deal of work in this
respect as well as made quite a bit of progress, but there are still many
problems. This is mainly because "when a person leaves, the tea gets cold"
and the attention given to old comrades who have withdrawn to the second or
third lines has not been as good as when they were in office, and this has
caused anxieties among some of the old comrades who are about to leave their
posts to convalesce or to retire. The reason for this situation is mainly
because some comrades do not have a correct understanding of why the old
comrades are withdrawing to the second or third lines. In particular, the
bad habit of "snobbishness" of the former society is still reflected in the
question of dealing with old cadres leaving their posts to convalesce or
retire. These comrades do not understand that, in working for scores of
years in the service of the country, these old comrades have made tremendous
contributions to the liberation of the motherland and the cause of socialist
construction. The old cadres are the hardcore force of the cause of the
party and the meritorious officers of the state, and they should be respected
and looked after when they become old or senile. Moreover, the bad habit of
"snobbishness" is opposed to our fine national tradition of honoring the old
and the virtuous. It runs counter to our party's policy for old cadres and
is the moribund consciousness of the exploiting class. On the other hand,
a handful of old comrades also sense that they have "lost stature" since
leaving a leading body and feel "ashamed." This is a wrong impression. Old
comrades who withdraw to the second or third lines and vacate their posts for
middle-aged and young cadres are making an important contribution to rejuve-
nating a leading body. This is a glorious thing and should be acclaimed by
society. After withdrawing to the second or third lines, the old cadres are
still a very important political force in our party and state, and if health
permits, they can still continue to play their role. Especially after cast-
ing off daily routine, the old cadres can devote their energy toward offer-
ing ideas and making suggestions on major issues of party, state and army
building. At the same time, many of them have an intimate understanding of
the glorious tradition of the party and are familiar with the glorious
history of our party and our army. By writing memoirs and teaching by
personal example as well as verbal instruction, they can contribute to the
construction of socialist spiritual civilization. In fact, some old comrades
have already made achievements in this respect, and this is a role which can
hardly be played by other people.
The CCP Central Committee, the State Council and the Military Commission of
the Central Committee have already adopted many effective measures for look-
ing after the livelihood of the old comrades leaving their posts to convalesce
or retiring, and they are now studying, perfecting and setting up the neces-
sary rules and regulations. However, because the level of productive forces
in our country is still not high and the state is still faced with many
difficulties, some of these problems cannot be solved right away. Our old
comrades must make allowance for the difficulties of the state and adopt a
correct attitude toward them. When our old comrades joined the revolution,
their only thought was to emancipate themselves and seek liberation. Who
gave a thought to a high position and a handsome salary at a future date?!
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Numerous revolutionary martyrs lost their heads, shed blood and sacrificed
their lives without even tasting the joy of revolutionary victory. Compared
to them, how can we, the lucky survivors, fuss about material treatment?
We communists consider it our duty to liberate all mankind, and we have
vowed to persevere in the course of working for the interests of the people.
While in office we must conscientiously work to the best of our ability.
After withdrawing to the second or third lines, we must still work hard
and maintain revolutionary integrity in our later years.
CSO: 4004/34
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ON THE QUESTION OF HUMAN RIGHTS IN THE INTERNATIONAL ARENA
I
Beijing RED FLAG in Chinese No 8, 16 Apr 82 pp 44-48
[Article by Shen Baoxiang [3088 1405 6116], Wang Chengquan [3769 6134 2938]
and Li Zerui [2621 3419 6904]]
[Text] In current international activities, the problem of human rights
occupies a certain place. Discussing or examining the problem of human
rights is one aspect of the activities of the United Nations. States with
different social systems, different political interests and different degrees
of economic development, and groups and persons with different political
leanings, have put forward their own ideas of human rights. Therefore, the
problem of human rights is of an unprecedentedly comprehensive and compli-
cated nature. Concerning the current complicated struggle about the problem
of human rights on the international scene, we must make a serious analysis
or study. We must adhere to our own principled stand and strive to main-
tain world peace and safeguard the right of self-determination and the
fundamental human rights of the people of various countries.
Origin of Human Rights
To clarify the current problem of human rights on the international scene,
we must review the development of the history of human rights.
Human rights represented, the theory, idea or slogan put forth by the Western
bourgeoisie 2 or 3 centuries ago. To counter the privileges and divine
rights of feudal aristocrats and monks and priests in the Middle Ages,
enlightened bourgeois thinkers originated the idea of "innate human rights"
and of freedom, equality, the pursuit of happiness and other human rights.
Such an idea became an effective ideological weapon of the rising-bour-
geoisie in fighting feudal despotic rule. In 1776, the "Declaration of
Independence" of the United States of America stated that "all men are
created equal; that they are endowed by their Creator with certain inalien-
able rights; that among them are life, liberty and the pursuit of happiness."
This was the first time that the bourgeoisie had affirmed, in the form of a
political program, the idea of human rights that it had conceived. Marx
considered this document as the "first declaration of human rights." In
1789, the constitutional congress produced by the French bourgeois revolu-
tion adopted the "Declaration of the Rights of Man and of the Citizen," or
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what people usually call the "Declaration of Human Rights." It declared:
"People are born free and equal and are meant to always remain so."
People's innate rights are "freedom, property, safety and resistance against
oppression." This declaration became the preface to the French Constitution.
It advanced for the first time the slogan of "human rights" in the form of
law. The "Declaration of Human Rights" declared an end to the rule of the
feudal privileged class in the Middle Ages and the establishment of the
ruling position of bourgeois politics.
The idea or slogan of human rights played a very positive role in history.
It reflected the features of an historical period. For a long period of
time, this slogan had a far-reaching influence on the capitalist world. The
slogan of human rights supposedly covered all people--people who shared
common rights. It was a slogan of a universal nature. But, actually, the
bourgeois slogan of human rights gave expression to the demands of the rising
bourgeoisie in the most general terms of rights. In the name of human rights,
the bourgeoisie replaced the feudal lords' special privileges and hereditary
privileges with its own moneyed privileges. The so-called right to freedom
.is chiefly the freedom to own private property. The so-called right to
pursue happiness is actually the right to exploit labor in an unrestricted
way and the right to pursue wealth. Just as Marx pointed out: "Human rights
are privileges in themselves." ("Collected Works of Marx and Engels," Vol 3,
p 229) In capitalist society, human rights for the proletariat and the masses
of laboring people are of a highly fraudulent and deceptive nature.
For a very long period of time, human rights existed merely as principles
for political life and legislation in some countries. The widespread applica-
tion of human rights in international relations, and the universal acceptance
by international society of human rights as a standard, began during World
War II and especially after the founding of the United Nations. During
World War II, the fascist outrages of Germany, Italy and Japan, which ruth-
lessly killed the people of various countries, aroused the anger of the
world. There was a widespread demand for the protection of human rights
and a call for respecting fundamental human rights as the aim of postwar
international relations. The "United Nations Charter," adopted in 1945,
declared: It was decided to save "future generations from again suffering
the catastrophic effects of war twice experienced by the present generation
and to reaffirm fundamental human rights, human dignity and values and also
the faith in the right of equality between men and women and between big and
small countries." Respect for human rights has since become an important
problem in international political struggle.
New Developments in the Concept of Human Rights
The concept of rights has always developed in accordance with the develop-
ment of history. Human rights are no exception. As time marches on, given
changes in the economic and political situation, the emergence of new
political forces and the development of various struggles in international
society, the concept of human rights inevitably breaks out of the confines
of the original Western bourgeois version. At present, the concept of
human rights advocated on the international scene, chiefly within the
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framework of the United Nations, is a far cry from the version put forth and
upheld by the bourgeoisie in the 17th and 18th centuries. It is marked by
important changes in the following two respects.
1. For a long period of time, the bourgeoisie upheld the right to possess
private property as the most important of its human rights. On the other
hand, it ruthlessly exploited workers leaving them in dire straits. After
World War II, the struggle of the working class in capitalist countries
which asserted its rights reached an unprecedented height. This forced the
bourgeoisie to adopt domestically some so-called welfare policies, but
actually "in the long run, people paid for what they got." On the inter-
national scene, economic, social and cultural rights were also incorporated
into the UN pact on human rights. In 1966, the United Nations adopted two
important conventions on human rights: the "International Convention on
Civil Rights and Political Rights" and the "International Convention on
Economic, Social and Cultural Rights." (These two conventions together with
the "World Declaration of Human Rights" are generally known as the "Inter-
national Constitution on Human Rights.") The latter stipulates that every-
one should have the right to work and be assured of proper and good working
conditions and of the right to organize trade unions, the right to receive
education, the right to share in cultural life, the right to enjoy social
protection, and other rights. The advancement of economic rights and social
and cultural rights has caused the concept of human rights to break out of
the narrow confines of its original version.
2. Another important change in the concept of human rights was the addition
of the right of self-determination and the right of development for the
people of colonies and dependencies in Asia, Africa and Latin America. When
the bourgeoisie was vigorously advocating human rights in the mother coun-
tries of capital, they were carrying out ruthless exploitation and naked
robbery in a large number of colonies, semicolonies and dependencies. The
colonialists and imperialists never recognized any human rights for the
people of these countries and areas. After World War II, the national
liberation movements among the people of colonies grew. Many colonies
won independence and joined the United Nations. They participated in inter-
national political activities and put forth their own ideas of human rights.
In recent years, the Third World countries have voiced in more clearcut terms
their opposition to "any people monopolizing the interpretation of human
rights" and their opposition to the human rights activities of the United
Nations "being guided only by European standards, as in the past." The 7th
UN General Assembly [UNGA] in 1952 and the Asian-African conference held in
Bandung in 1955 affirmed national self-determination as "the prerequisite
for fundamental human rights." Thus, the protection of human rights was
linked with national self-determination for the people of colonies. In 1960,
thanks to the efforts of newly independent countries in Asia, Africa and
Latin America, UNGA adopted the "Declaration Granting Independence to
Colonial Countries and People," and announced that "all people have the
right to self-determination." It was pointed out that "subjecting a people
to conquest, rule and exploitation by foreign countries is a negation of
fundamental human rights and a violation of the UN Charter." This declara-
tion affirms in clearcut terms that the right of self-determination for the
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people of colonies was a fundamental human right. In the 1970's, the strug-
gle in the United Nations of the Third World countries in the field of human
rights grew fiercer. The concept of human rights was continuously injected
with new content. In 1977, the 32d UNGA passed with an overwhelming majority
vote a resolution (Resolution No 32/130) on the new concept of human rights
put forth by the Third World countries. A concept was advanced for the
United Nations to take into consideration in the future the promotion of
human rights and basic freedoms. This resolution shows that human rights do
not just mean individual rights and basic freedoms; they also cover the
rights and basic freedoms of a nation and its people. The resolution
stresses that in UN human rights activities, priority should be given to
solving "matters of serious and large-scale encroachment on the human rights
of the people and individuals of countries which have been affected by racial
segregation; all forms of racial discrimination, colonialism, foreign rule
and foreign occupation and aggression; threats to national sovereignty,
national unity and territorial integrity; and refusal to recognize national
self-determination and the fundamental right of.countries to exercise full
sovereignty over their own wealth and natural resources." This spirit is
in line with the prevailing conditions of international society and is
therefore correct. The resolution also pointed out that sustained progress
in the area of human rights depends on rational and effective domestic and
international policies for economic and social development. The continuous
existence of an unfair international economic order seriously hampers the
exercise of economic, social and cultural rights by developing countries.
The establishment of a new international economic order is a factor in
effectively promoting human rights and basic freedoms. In 1979, the UN
Commission on Human Rights passed a resolution stressing the right of
development as a fundamental human right. Thus, the concept of human rights
took on additional meaning: the upholding of national independence by the
people of various countries, chiefly Third World countries, the exercise of
the freedom to control their natural wealth and resources and to develop
their economy, and their opposition to foreign aggression and oppression.
Thus, the struggle to win and uphold human rights was linked with the
struggle against imperialism, colonialism and hegemonism.
This new concept of human rights has reflected the historical features of
this era of ours from a certain point of view. But where the problem of
human rights is concerned, the echoes of the old era can sometimes still
be heard.
Political activists and scholars in certain Western countries have adhered
to the traditional narrow concept of human rights and one-sidedly stressed
the individual's human rights, advocating absolute freedom for the indi-
vidual and claiming that the individual's human rights provide "basic con-
ditions for economic development." This shows contempt for the realities
of international politics. It might be asked: How can there be :individual
rights and freedom when a nation has been deprived of its right of self-
determination, or a country has been occupied by aggressors, or the whole
nation and the people are in slavery, and when a country has been deprived
of its sovereignty over its wealth and natural resources and is under the
shackles of colonialism? Given such a situation, how can there be basic
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conditions for economic development? The fact is that in the world today,
certain countries and nations are still placed in such a state owing to the
havoc caused by hegemonism, imperialism and colonialism. Obviously, uphold-
ing national rights in these areas is a primary prerequisite for respecting
the individual's human rights. If the fact of national rights being seri-
ously encroached upon is ignored and much is made of the individual's
human rights, then this can only be interpreted as hypocrisy and deception.
Complicated Struggle Under the Banner of Human Rights
Human rights activities within the framework of the United Nations represent
the main aspect of the international struggle for human rights. But the
area of struggle for human rights is actually much wider. The complicated
struggle for human rights on the international scene is chiefly marked by
the following several situations, with various essential differences.
First, the efforts of a large number of Third World countries and some
countries upholding justice in revealing and fighting large-scale encroach-
ment on human rights by hegemonism, imperialism and colonialism and by
certain autocratic regimes. In recent years, the UN Human Rights Committee
has adopted resolutions condemning the foreign armed invasions of Afghanistan
and Kampuchea, interference with national self-determination, the creation of
large numbers of refugees, and large-scale and serious encroachment on human
rights. At UN conferences, the representatives of Third World countries have
also condemned the policy of apartheid and racial discrimination pursued by
the South African authorities and Israel's persecution of the Palestinian
people, which represent large-scale and serious encroachment upon human
rights.
Second, there is the struggle of the Third World countries in opposing the
rich countries' exploitation of their poor counterparts and achieving the
right of development in order to establish a new international economic
order. Thanks to the efforts of Third World countries, UN conferences
adopted declarations and resolutions explicitly calling for the establish-
ment of a new international economic order, stipulating the right of every
country to freely exercise full and permanent sovereignty over its wealth
and natural resources, and urging the adoption of measures to improve the
economic conditions of developing countries. But such a proper demand for
the development of human rights has met with stiff opposition from rich
countries that make a ballyhoo about human rights. 'Therefore, the actual
results have been limited.
Third, there is the promotion of human rights activities in social, humani-
tarian, cultural and other fields. There are such activities as: elimina-
tion of discrimination against women, realization of the right of equality
between men and women, concern for the growth of youth and children,
improvement of the lives of old or crippled people, stimulation of educa-
tional and scientific development, and so forth. In these respects, the
United Nations has adopted a series of declarations and formulated many
international conventions, such as the "Declaration of Social Progress and
Development," the "Declaration of Juvenile Rights," the "Declaration of
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Promotion Among Young People of the Ideals of Peace, Mutual Respect and
Undcrs.Lnn ding Between the Peoples of Various Countries," the "Convention
on the Political Rights of Women," the "International Convention on
Eliminating All Forms of Discrimination Against Women," the "Declaration of
the Rights of the Crippled," the "Pact on the Position of Refugees," and
pacts calling for the prohibition of trading in human beings, forced prosti-
tution, and so forth. Focusing on these social and humanitarian matters,
the United Nations and many countries have launched extensive activities
along various lines.
Fourth, there is the dispute between two superpowers centering on human
rights. At UN and other international conferences, the two superpowers, the
Soviet Union and the United States, have constantly seized on the problem of
human rights as an excuse to attack each other. The United States has
accused the Soviet Union of encroaching upon the fundamental human rights
of East European countries. The Soviet Union on.its part has accused the
United States of staging a "human rights propaganda war." The Soviet Union
has also collected data and made a countercharge about U.S. encroachment on
human rights. All the heated exchanges between the Soviet Union and the
United States centering on the problem of human rights are by no means
prompted by real concern over human rights. They are motivated rather by
what they seek in their contest for hegemony. Hegemonism itself is a nega-
tion of fundamental human rights. The Soviet Union's defense of the Viet-
namese authorities' large-scale eviction of refugees, which is a serious
encroachment upon human rights, and the United States' consistent support
for South Africa's policy of apartheid and for Israeli expansionism show
that all the ballyhoo they make about human rights is hypocritical.
Fifth, the bourgeoisie and others who have ulterior motives use human rights
to attack socialism. Imperialism and the bourgeoisie of the West have never
eased up in using human rights to attack and slander our country, aiming to
score an ideological penetration against us. The propaganda machine of the
West have been continuously distorting their reporting on the social and human
rights situations in our country. They have slandered our socialist democratic
system as a violation of the so-called "human rights." Some people have even
fanned and supported those people in our country who want to see the world
plunged into chaos and who engage in illegal activities under the pretext of
human rights. These situations existed not only in the past, but also at
present. They will continue to exist in the future. We must constantly
guard against them.
Adhere to a Principled Stand on the Problem of Human Rights
As early as in 1955, Premier Zhou Enlai, who had led a Chinese delegation
back from the Asian-African Bandung conference, pointed out in a report at
an enlarged meeting of the NPC Standing Committee that the 10 principles
embodied in the declaration of the Asian-African conference "cover also such
principles as respecting fundamental human rights, respecting the principles
and aims of the UN Charter, respecting justice and international obligations,
the peaceful settlement of international disputes, and so forth. All these
have been consistently advocated by the Chinese people and have been con-
sistently followed by China." Our attitude toward the aims and principles
of the UN Charter, including respect for fundamental human rights, is clearcut.
84
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Human rights are not a hollow slogan. Nor do they represent an isolated
problem. Instead, they are associated with the main problem of inter-
national politics. At present, the main factors underlying the tense and
uncertain international situation, the threat to the safety of mankind and
large-scale encroachment upon fundamental human rights, are hegemonism,
imperialism and colonialism, and especially the contest for hegemony between
the two superpowers, the Soviet Union and the United States. The struggle
to safeguard fundamental human rights must be linked with the struggle
against hegemonism, imperialism and colonialism and be made part of this
struggle. Only in this way can the struggle be meaningful and achieve
results.
Opposing the hegemonists' foreign aggression and large-scale and serious
encroachment upon human rights is the primary duty of international society.
The Soviet Union's dispatch of troops to occupy Afghanistan, forcing several
millions of Afghan people to flee their own motherland as refugees, is a
serious encroachment upon the fundamental human rights of the Afghan people.
Soviet support for the Vietnamese hegemonists' invasion of Kampuchea and
their slaughter of patriotic Kampuchean militarymen and civilians has
deprived the Kampuchean people of the least semblance of human rights. The
acts of aggression on the part of Soviet and Vietnamese hegemonists contra-
vene the aims and principles of the United Nations and are a gross viola-
tion of the international charter on human rights. U.S. support for
Israel's serious encroachment upon the rights of the Palestinian people and
U.S. support for the South African racists is common knowledge. Such acts
on their part have naturally been justly condemned by international opinion
and have similarly met with the opposition of the Chinese government and
people.
The struggle of a large number of Third World countries for the right of
economic development is another major task on the international scene to
stimulate and safeguard fundamental human rights. With the rich countries
exploiting the poor ones, the people of a large number of Third World coun-
tries are still in a state of poverty and backwardness. The people of
certain of the least developed countries fare even worse. This is hard
reality. Therefore, to safeguard the Third World countries' right to
develop their national economies and change the impoverished state of the
people of these countries is a problem especially worthy of note in inter-
national human rights activities and is a duty that falls squarely upon the
United Nations, various international organizations and various countries,
particularly the developed ones.
Human rights activities promoted by the United Nations and certain inter-
national organs in social, cultural and other fields, such as the elimina-
tion of discrimination against women, protection of children, concern for
old or crippled people, elimination of illiteracy, promotion of scientific
and technical development, and so forth, are also human rights problems of
concern to international society. In these respects, we should strive to
make our own contributions. This is also in line with our existing policy.
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In international activities, the act of using the slogan of human rights as
an excuse to interfere in the internal affairs of other countries cannot be
allowed. We have resolutely upheld the five principles of peaceful
coexistence and have never interfered in the internal affairs of other
countries. Similarly, we consider that the act of using the problem of
human rights as an excuse to slander and attack our country and to interfere
in the judicial and administrative affairs of our country is an unfriendly
gesture to our country and people and an encroachment upon our sovereignty.
This will, of course, meet with our rejection and opposition.
Socialism and Human Rights
The human rights put forth by the bourgeoisie played a positive role in
history. But such human rights are narrow and limited. They chiefly serve
to meet the demands of the bourgeoisie. For the working class and other
laboring people, they are of a highly fraudulent and deceptive nature. Class
exploitation is the most serious case of inequality in society. The system
of exploitation is the main cause of various phenomena of unequality in
society. Under a social system in which one man exploits another, the
masses' demand for rights cannot really be met. Marxists hold that only by
fully developing social productive forces on the basis of the exploitation
system having been eliminated can we enable the broadest mass of people to
enjoy rights in political, economic, social, cultural and other fields. And
only in this way can we achieve rights on a universal basis.
The socialist experience of China provides eloquent proof that only the
socialist system can safeguard the full realization of the various rights of
the people. Our revolution led to the overthrow of the rule of imperialism
and feudalism in China, a change in the political system of dictatorship by
the big landlords and the big bourgeoisie, and the founding of the regime of
people's democracy. With the system of exploitation having been eliminated
by us, the social productive forces have developed greatly. Scientific,
educational and cultural undertakings have also made great progress. All
this has brought about a fundamental change in our people's political and
economic statuses. These results of our revolution and these rights won by
the people have been solemnly incorporated in our constitution. In our
constitution, the stipulations about the inviolability of public property,
the prohibition of exploitation, the protection of remuneration for an
individual's labor, and the realization of the principle of "nothing to those
who contribute no work" have provided a most solid basis for the protection
of fundamental human rights in our country. All unbiased people can see that
the citizens' rights specified in our constitution cannot be compared with
the rights of the individual advocated by the Western bourgeoisie. Of course,
apart from being restrained first of all by the social system, the rights
enjoyed by the citizens of a country are restricted by economic, cultural and
other objective conditions. Therefore, for a developing socialist country
like ours, the full realization of various civil rights must naturally follow
a process.
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Our revolution has its own lofty ideals and objectives. Meanwhile, we have
also consistently fought to uphold human rights. Socialism is synonymous
with human rights. In our country, it is impossible to detach ourselves
from our socialist democracy and legal system and from socialist moderniza-
tion in promoting what is called the problem of human rights. With the con-
tinuous improvement of our socialist democracy and legal system and the
development of modernization, the various rights enjoyed by the people of
our country will surely continuously grow to a new level. Facts will provide
ever more convincing proof that the socialist system is also a reliable
guarantee for the full realization of human rights.
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IS THIS REALLY FOR THE GOOD OF ALL AND THE COLLECTIVE?
Beijing RED FLAG in Chinese No 8, 16 Apr 82 inside back cover
[Article by Li Zhuqi [2621 0031 0366]]
[Text] "We should be willing to spend any amount of money for the people";
"Anything we do for the collective is perfectly justified." Such are the
fashionable excuses used by certain leaders of units, mines, shops and
schools who, having no regard for the nation's laws, openly violate regula-
tions concerning financial administration, and seek to feather their own
nest at the nation's expense.
Shielded by the banners of "for the good of all" and "for the collective,"
they completely ignore the fundamental and long-term interests of the coun-
try and the people and are willing to spend any amount of money and engage
in any activity: they unscrupulously hold back profits or other funds, and
recklessly issue bonuses, subsidies and overtime payments; they misappro-
priate "fringe benefits" under all. sorts of pretexts, and secretly use them
for their own personal ends; they rack their brains for ways to force other
units to pay "additional charges," siphoning off a portion of the ill-gotten
wealth for themselves.... Activities such as these reduce the nation's
financial income, damage the party's fine work style, corrupt the thinking
of some of the cadres and masses, and have aroused angry opposition among
the broad masses of staff, workers and cadres.
Why is it that these leading cadres have been trying to fleece the nation by
raising the banners of "for the good of all" and "for the collective." The
main reason is simply that these cadres, having yielded to the pressure of
various unhealthy trends and evil practices, have begun pandering to the
backward consciousness of a part of the masses. Worse than this, however,
is that they are unable to resist the allurement of money and material goods
and hope to make a profit out of what they see as the "impunity of the
masses." They have calculated that rather than take both sides into con-
sideration, bearing responsibility toward the state and trying to satisfy
the "masses," it is better to throw their lot in with the "people." In this
way they can both "enjoy the support of the people" and gain material bene-
fits. These people have completely forgotten about the responsibility that
must be shouldered by every Communist Party member and revolutionary. To
put it bluntly, they appear on the surface to be acting "for the good of
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all" and "for the collective"; in reality, however, they think only of them-
selves.
We are now engaged in building socialism and as far as ultimate aims are
concerned, everything is for the people and for the collective. We must at
all times concern ourselves with the lives of the masses. If we are to
truly act in the interests of the people and the collective,.however, we
must look at the situation as a whole. It is imperative that we uphold the
principle of "taking into account the interests of the state, the collective
and the individual," and that we protect the nation's public property. The
life of the people must be gradually improved in line with the ceaseless
development of production. At present, our country's level of production is
still too low, the nation's finances are still in the red and the people are
by no means wealthy. Equipped with a firm sense of being masters of their
own affairs, however, millions of cadres and masses are working to overcome
difficulties and build socialism. Leading cadres should lead the masses in
their own units in sharing the state's burdens and making a contribution to
the four modernizations. There are certain people, however, who have
rejected the interests of the whole and are like mice gnawing at the very
foundations of socialism. In this way large amounts of property and money
belonging to the state have been appropriated through both "legal" and
illegal means. Some people say: "This is for the good of all and the
collective. It certainly won't end up in my pocket." Even though this
might be the case, one cannot escape the true facts of the situation. Such
notions of "the good of all" and "the collective" combined with actions
which harm the overall interests of the nation will invariably lead to
damage on a more serious scale. All such actions violate the regulations
concerning finance and seriously threaten the socialist cause.
"One ant hole might cause the collapse of a thousand-li dike." It is
imperative that we go all out to block up the "mouse holes" in our country's
socialist foundations. If we fail to get rid of these "mouse holes" it
will be difficult to achieve the objective of the four modernizations.
There is a danger that the fruits of revolution and construction for which
several generations have fought will be snatched away.. Every cadre who
truly has the interests of the people at heart must accept the wide scope
of his own duties and must firmly defend the socialist cause. We also urge
all people who speak about the "good of all and the collective" while
acting to the detriment of the interests of both the. people and the collec-
tive, to quickly wake up to the truth and stop trying to fool us. It is
dangerous!
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