CHINA REPORT RED FLAG

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP04-01460R000100310001-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 86
• Document Creation Date: December 21, 2016
• Document Release Date: March 19, 2008
• Sequence Number: 1
• Publication Date: August 6, 1982
• Content Type: REPORT

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JPRS 81467.
6 August 1982
China Report
RED FLAG
No.. 11, 1. June 1982
FBIS
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6 August 1982
CHINA REPORT
RED FLAG
No. 11, 1 June 1982
Translation of the semimonthly theoretical journal of the Central
Committee of the Chinese Communist Party published in Beijing.
CONTENTS
Let the Motherland's Seedlings Grow Even More Sturdily (pp 2-4)
(Editorial) ........................................................ 1
A Brilliant Example of the Party's Leadership in Literature
and Art (pp 5-6)
(Commentator) ..................................................... 6
Arid Areas in the Northwest Should Attach Importance To
Planting Trees and Grass and Developing a Diversified
Economy (pp 7-8)
(Commentator) ..................................................... 10
Grasp the Building of Material Civilization With One Hand
and the Building of Spiritual Civilization With the Other
(pp 9-13)
(Wang Shoudao) .................................................... 13
Enhance the Role of Banks and Develop Domestic Capital
(pp 14-17, 8)
(Liu Hongru) ...................................................... 23
Earnestly Carry Out Research on the Economies of Developing
Countries (pp 18-22)
(Qian Junrui) ..................................................... 31
An Important Reform in the Supreme State Administrative
Organs (pp 23-26)
(Xu Chongde) ...................................................... 39
Cherish the Motherland's Honor, Safeguard National Dignity
(pp 27-30)
(Wang Bing.nan) .................................................... 46
- a - [III - CC - 75]
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Transport Workers Should Strive To Become Vanguards in
Propagating Socialist Spiritual Civilization (pp 31-33)
(Pan Qi) ......................................................... 52
Grasp Firmly the Central Link--Ideological Education (pp 34-36)
(Xin Cheng) .................................................... 57
Teachers Should Set Examples in Building Socialist Spiritual
Civilization (pp 37-39)
(Yu He) .......................................................... 62
It Is Helpful To Study the Theory of Reproduction (pp 40-42)
(Huang Zhigang) .................................................. 67
Dialectically Ponder Over Economic Problems (pp.43-45, 42)
(Zhang Jing) ..................................................... 72
Are Capital Construction and.Expanded Reproduction One and
the Same Thing? (pp 46-47)
(Li Mengbai) ..................................................... 78
Can Robots Produce Surplus Value? (pp 47-48)
(Tan Huazhe) ..................................................... 81
Several Practices in Intensive Farming (inside back cover)
(Wen Jianhu) ...................................................... 84
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LET THE MOTHERLAND'S SEEDLINGS GROW EVEN MORE STURDILY
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 2-4
[Editorial]
[Text] Our party has always shown loving care for children and has placed
high hopes in them. Comrade Mao Zedong long ago encouraged children to
"study well and make progress every day" and expressed the hope that
"children will close their ranks and study to be new masters of new China."
Comrade Deng Xiaoping also "hopes that children throughout the country will
resolve to be people with ideals, morality, knowledge and physical strength
and will resolve to make contributions to the people, the motherland and
humanity." In February last year, the CCP Central Committee Secretariat
gave more instructions on work with children; it called for mobilizing
forces of the whole party and the whole society to take an active interest
in the healthy growth of children and to regard successfully nurturing and
educating children as their strategic task, and it adopted many important
measures for carrying out this task. Party organizations at all levels have
responded to the call of the central authorities and conscientiously
strengthened leadership over work with children. As a result, a new phase
has emerged in the work of educating children. Nurtured. painstakingly by
and under the loving care of the party, and with the consideration and
protection shown and given by the whole society, our country's children
are like seedlings which have broken through the soil and are bathed in the
sunlight and bounty of the socialist system. They are growing up strong and
healthy. The Chinese children's spirit of vigorously making progress shows
that they are full of promise.
It will be a protracted struggle for building our country into a powerful
socialist country with a high degree of material civilization, a high degree
of spiritual civilization and a high degree of democracy, and for holding
high the great banner of communism, to persevere in our striving for a final
victory. It will be necessary to carry on this struggle generation after
generation over a long period of time. Children who are now between 7 and
14 years old will become a powerful labor army within 20 years. They will
become the main strength of the construction and defense forces for realizing
the cause of socialist modernization, and will achieve the magnificent goals
of the four modernizations. To accomplish this historical mission, we must
train our children to become people with the highest level of political
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consciousness, selfless and perfectly impartial and absolutely devoted to
the cause of communism; we must train them to become people who are firm
and indomitable, imbued with the spirit of revolutionary optimism; train
them to become people with courage to think and speak out, highly creative
in a revolutionary way and daring to struggle against any backward elements
that hinder the advance of our society; and train them to become masters of
the latest scientific and technical knowledge, capable of effectively con-
quering nature and thus benefiting the people. In short, our country's
children should be trained to become new socialist men.
Bringing up such a new generation is certainly no easy job; it requires
great effort by the whole party. In particular, during the building of
our socialist spiritual civilization, we should be farsighted and think of
and view things strategically, judging from the level of the development of
our scientific, educational and cultural-undertakings and judging from the
direction in and the level of the development of people's political and
ideological characters such as communist ideals, values and morality, we
can see that the education and training of children are a means of laying
foundations. Leading comrades of the central authorities have repeatedly
noted: The development of communist traits of morality such as lofty ideals,
the spirit of sacrificing one's own interests for the sake of others and
civilized manners and habits should be started during childhood. Compara-
tively speaking, firmly grasping the education and training of children and
enabling people to foster communist values from childhood have far greater
significance. Comrade Deng Yingchao explained this point in her speech at
the capital's report meeting in celebration of 1 June, International
Children's Day. She said: "Promotion of work with children is the starting
.point for molding the people, a process which will take 100 years. Promo-
tion of work with children is also the starting point for building material
civilization and socialist spiritual civilization and for fostering a gen-
eration of people of a new type. This is a most important step we take
during the great course of building socialism and fighting for'the cause of
communism." This is because by molding our children now in accordance with
communist ideology and morality, we can change the mental outlook of a new
generation of people who will become adults in less than 20 years. Children
who are now 5 or 6 years old have no memories of the 10 years of civil
strife and even children now 13 to 14 years old are relatively less tainted.
Our principal task concerning these children is "maintaining health" and not
"curing illness." Moreover, because of their youth their thinking and
character are more malleable. They are readily receptive to teachings on
the differences between truth and deception, between good and evil, between
beautiful and ugly, and between correct deeds and wrong deeds. It is also
easy for them to cultivate habits. Moreover, children are very imitative
and handle affairs conscientiously. The education a person receives in his
childhood will directly affect his lifelong development. Their good think-
ing and behavior will also have a certain influence in various social
situations.
In educating our children in communist ideology and morality, we should
attach importance to teaching them the five virtues of love. According to
Article 22 of the Draft of the Revised Constitution, "The state promotes
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the virtues of love for the motherland, the people, labor, science and
socialism." Thus the actual contents of and demand for teaching the five
virtues of love. Education in the five virtues of love is education in
patriotism, collectivism and communism.- To foster and develop these
socialist virtues throughout the society, we should start with fostering
and developing them among children, because children happen to be the
future masters, pillars and backbone forces of our country and our whole
society.
During the recent "five stresses and four beautifuls" and "all-people
civility and courtesy month" campaigns, vast numbers of children responded
to the call of the party and enthusiastically participated in activities
within their power under the correct guidance and leadership of teachers
and of instructors from the Young Pioneers. As a result., the children
have been educated and tempered. However, there is a noteworthy problem:
While asking children to pay attention to civilization, order and dis-
cipline, some comrades have established quite a few restrictions and
restraints, thus rigidly keeping children within bounds. We can illustrate
this problem with the following case: A child has just visited Chairman
Mao's former residence at Zhongnanhai. The child's mother asked what her
child saw there. The child grumbled that he only saw the back of the head
.of his schoolmate standing in front of him. Why? Prior to the visit, the
children were told to observe this discipline: "You must follow the one
in front of you; you must not whisper to each other; and you must not
glance right or left." How could they issue these trivial orders to
restrict and restrain the children's innocence and liveliness, which are
children's natural characteristics!
It is very important to teach our children to understand manners and
observe discipline and social order. To suit the needs of this kind of
teaching, there should also be a requirement of a fair and reasonable moral
standard. However, we must not neglect to foster the child's indomitable
will, his lively, bright and cheerful disposition, and courageous and fear-
less spirit. This-kind of fostering is also an important aspect of
spiritual civilization. If we persist in stressing obedience and do not
allow our children to express differing views, we will probably turn them
into people who unthinkingly become blind followers when problems arise.
We should guide our children to have the courage to dissuade others from
giving rise to unhealthy tendencies, uttering wrong words and taking
erroneous actions, and to struggle against such tendencies, words and
actions. We must not turn them into yes-men and cowards; who are afraid of
getting into trouble. We should teach our children to be ready to take up
the cudgels for a just cause and to be enthusiastic in helping companions
in dire peril, and also in helping the old, weak, sick and disabled. We
must not turn them into selfish people who hang back in the face of danger.
We should also make it possible for our children to be imbued with vitality
and strong faith in life and to be lively, cheerful, optimistic and highly
creative. We must not turn them into reticent young people who dare not
speak and laugh in public and lack vigor and drive. Only if we pay atten-
tion to all these aspects can our children meet the party's expectations of
healthily growing up to be successors in an all-round way.
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It is our party's fine tradition to care for the healthy growth of children
and it is the Chinese people's communist virtue to have deep love for a new
generation. Those who care for the motherland's future and destiny will
definitely care about the children's development. It is the whole party's
undertaking to nurture and educate children. Our party has always cared
for nurturing and educating children. All party organizations must con-
tinue to broaden their understanding of the strategic significance of
training successors for the cause of communism, and implement the guiding
principle of the party central authorities for mobilizing forces of the
whole party and the whole society to strengthen the education and training
of children. Schools, families and society must truly strive to coordinate
their work, make joint efforts and fulfill their respective duties. It is
imperative to overcome the views that issues concerning children are not
issues that concern the general situation. It is also imperative to over-
come the theory of natural growth which has these arguments: "Without
grasping agriculture, there will be no grain; without grasping industry,
there will be no steel; without discipline, children will still grow up"
and "Although the flowers have been cultivated purposefully, they do not
bloom; although some willows have been planted unintentionally, they now
shade the lanes." We can surely promote educational undertakings for
children as long as party organizations at all levels make reasons, gains
and losses clear to all party members and take the lead in promoting educa-
tional undertakings for children.
Childhood is a period for growing up physically and also for absorbing
knowledge. Children must study cultural knowledge but they also want
entertainment, games and places to exercise. This means that our party
and the whole society must try in every possible way to create conditions
for promoting children's education and activities. We must make primary
education universal and enable all children of school age to receive pri-
mary school education. We must also try in every possible way to strengthen
preschool education and do well in running childcare centers and nursery
schools. We should also build more clubs for children's after-school
activities such as the children's palaces. We should hold small-scale and
varied summer camps for children and effectively organize their holiday
time. As the central authorities have decided to turn an official garden
into a national center for children's activities, big and medium-sized
cities throughout the country should also set aside their best houses and
buildings for children's activities. Vast numbers of children have not had
some children's palaces open to them for a long time. Such a situation must
be changed.
With the restructuring of organs and with the reshuffling of leading groups,
a large number of veteran cadres will either retire or leave jobs to
recuperate. All veteran cadres have gained revolutionary experience. They
are an important force for educating the children in the revolutionary
tradition. We should organize retired veteran cadres to participate in the
social activities of educating children. Old people have a deeper love for
children. To them, seeing innocent and guileless children is just like
seeing fresh blooming flowers; allowing them to participate in the activ-
ities of educating children can also fill their later years with great joy.
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At present, cases of infringing upon children's rights and interests and
cases of trampling on children have been occurring repeatedly. Some
places for children's activities have been willfully invaded and occupied;
due to serious pollution of the environment that is in close vicinity to
some schools, the physical and mental health of children there are affected;
some schools still have corporal punishment; and some children still face
discrimination, maltreatment, physical punishment and abuse. In particu-
lar, from time to time children have been humiliated and beaten for exposing
economic crimes and safeguarding social morality. Children are children
after all. Their ability to revolt against and resist attacks is inferior.
They need adults' protection and they want adults to speak for them. Both
the state and the whole society are responsible for protecting children.
This responsibility, above all, is the responsibility of party organiza-
tions. The Communist Party serves.the people, including children. Our
party organizations at all levels must pay close attention to safeguarding
children's legitimate rights and interests. They must mobilize forces of
the whole party and the whole society to form powerful and lasting public
opinion and supervision for successfully safeguarding children's legitimate
rights and interests. It is imperative to urge the departments concerned
to prosecute those people who have seriously trampled on children.
The motherland's seedlings can surely grow even more sturdily as long as
comrades throughout the party become hardworking gardeners.
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A BRILLIANT EXAMPLE OF THE PARTY'S LEADERSHIP IN LITERATURE AND ART
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 5-6
[Article by Commentator]
[Text] To mark the 40th anniversary of the publication of his "Talks at
the Yanan Forum on Literature and Art," Comrade'Mao Zedong's 15 private
letters to writers and artists were published. The publication of these
letters is of great significance in the correct and comprehensive under-
standing of the fundamental spirit of the "Talks," in the strengthening of
the party's leadership, over literature and art and in the adherence to the
orientation of serving the people and socialism.
Comrade Mao Zedong's letters to writers and artists are not ordinary letters
to old friends or individuals. Through these letters, we can deeply feel
his loving care for the literary and art circles and his patient and syste-
matic guidance for the literary and art workers. Proceeding from the
actual conditions, he always realistically solved various problems in the
literature and art fields and guided the literary and art workers to advance
in the correct direction. These letters are a brilliant example of the
party leadership in literature and art.
The question of whom literature and art should serve has always been a
fundamental question. In these letters, Comrade Mao Zedong also considered
this question of primary importance. Since "the life at present is also a
struggle," he particularly stressed that "we need militant works now," and
that "both Yanan and the border regions badly need dramas reflecting the
struggles in the enemy's rear flanks." Although the situation is different
today from that of the war period, it is still an important task for writers
and artists to reflect the people's struggles and life in the revolution and
construction. In these letters, he enthusiastically supported the work of
popularizing literature and art. He affirmed the role played by the journal
POPULAR LITERARY AND ART PRACTICE, which was aimed at helping correspondents
and beginners raise their writing ability, and affirmed the article "Forms
of Yangko Opera," which summed up the experiences of this opera. On the
question of how to comprehend Lenin's talks on art with Clara Zetkin, Com-
rade Mao Zedong held that revolutionary literature and art should place
their bases among the masses and serve the masses, so that "the feelings,
thoughts and will of the masses" which were dispersed due to economic,
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political, geographical and national reasons, could be "united" through the
spread of literature and art. That is, as an artistic form spreading
ideology, exchanging feelings and arousing consciousness, literature and art
must promote the unity of the people so that they will take an active part
in the fighting with one heart and one mind. It was proceeding from this
principle that Comrade Mao Zedong affirmed the play "Be Driven to the
Liangshan Mountain," which "reveals history in its true colors." The orien-
tation Comrade Mao Zedong pointed out here for literary and art work is the
same orientation he repeatedly stressed in his "Talks" and is certainly the
only correct orientation of serving the people and serving socialism, which
we must adhere to in our literature and art work today. Under no circum-
stances should our literature and art deviate from the general orientation
of uniting the people, educating the people and encouraging the people to
join in the revolution and construction with one heart and one mind.
A very important question for our party in leading literature and art is
how to correctly handle the relations between the party leaders and the
literary and art workers. This has a bearing on whether the large number of
literary and art workers can be closely united around the party and whether
their enthusiasm can be brought into full play to create more and better
works for the people. In these letters, Comrade Mao Zedong always fully
affirmed the achievements and progress of the writers and artists with,
immense zeal. Understanding the orientation of serving the workers, peasants
and soldiers after the Yanan forum on literature and art, a large number of
literary and art workers plunged into the fiery struggles and soon scored new
achievements. With his keen strategic insight as a proletarian revolutionary
and politician, Comrade Mao Zedong paid close attention to this new develop-
ment. When Comrade Ding Ling and Ouyang Shan wrote two special features
about two exemplary people in cooperative work in the Shaanxi-Gansu-Ningxia
border region, Comrade Mao Zedong "finished reading them in one breath after
taking a bath and before going to bed" and wrote immediately to the two com-
rades, extending his "congratulations to the Chinese people and to both of
you for your new writing style." Although this letter was written dozens
of years ago, it is so ebullient that it still touches the receivers' hearts
when they reread it today. Comrade Ding Ling said: "I was greatly encour-
aged by this letter and thus began my new writing style. What is my new
writing style? It is none other than writing about the workers, peasants
and soldiers." Comrade Ouyang Shan said: "Whenever I recall this letter,
I always feel a strong force that spurs me on." Today, when we read these
letters, Comrade Mao Zedong's teachings still warm our hearts. We deeply
feel that Comrade Mao Zedong was really an intimate friend and teacher of
the literary and art circles.
Comrade Mao Zedong took a serious attitude toward the work in the literature
and art fields as well as in other fields and had a strong sense of prin-
ciple. While enthusiastically and cordially affirming and encouraging the
writers and affirming their achievements, he also offered his sincere and
comradely criticisms and aid and gave explicit and hearty directions to
them. When he was informed by a writer about the situation in Yanan, he
first replied in the affirmative that there actually were unhealthy practices
in Yanan which needed to be rectified. At the same time, he hoped that the
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writer would also "pay attention to one's own weak points and not to look at
things one-sidedly." "One must pay attention to the correct handling of
one's relations with other people and must compel oneself to intentionally
examine one's weak points." He also required the writers to "examine their
works with the Marxist viewpoint." Whenever we read these sincere words and
earnest requirements of Comrade Mao Zedong today, they still touch our
hearts. A speech made by Comrade Chen Yun in 1943, which was republished
simultaneously with the publication of these letters, embodies the same
principle and spirit. In this speech, Comrade Chen Yun criticized two
shortcomings in the literary and art circles at that time. "One is privilege
and.the other is arrogance." He requested our party's"literary and art
workers to first regard themselves as ordinary party members and not learned
scholars. He also asked them not to unrealistically overestimate the roles
of literary and art work as well as personal achievements and talents. This
is still of important and immediate significance today. Literary and art
criticism is an important aspect of the party leadership in literature and
art. It includes commending good and excellent works and criticizing bad
and erroneous works. Under no circumstances should we.give up the weapon
of criticism. Some people dare not carry out principled criticism over the
works or viewpoints which have obvious erroneous-tendencies for fear that
the enthusiasm of the writers and artists may be dampened or that they them-
selves may be blamed as "wielding big sticks." Thus, the party leadership
hasibecome lax and weak. This situation must be changed. However, there. is
also a problem of method and result in carrying out criticisms. The method
of criticism displayed in Comrade Mao Zedong's letters, which is highly
principled, must be taken as an-example for our leaders at various levels
and for literary and art workers when carrying out literary and art
criticisms.
Comrade Mao Zedong was a great Marxist, and a great poet, too. He was
knowledgeable on the law of art. He also paid serious attention to the
investigation and study of the situation in. the literary and art circles.
Before he made the speech at the Yanan forum on literature and art, he
listened attentively to various opinions. He discussed with Comrades
Ouyang Shan and Cao Ming "problems concerning the literary and art policy,"
and then wrote to them, asking them to "collect NEGATIVE opinions for me."
[capitalized word underlined] From here we can see that Comrade Mao Zedong
not only paid attention to listening to positive and similar opinions but
also paid attention to listening to negative and different opinions. All
correct and realistic policies,. principles, schemes and plans should be
worked out after sufficient investigation and study and after listening to
both positive and negative opinions. Comrade Mao Zedong's "Talks" is a
brilliant Marxist work. This is inseparable from his spirit of investiga-
tion and study.
Forty years have passed since the publication of the "Talks." These letters
were also written more than 30 or 40 years ago. Now, as the situation has
changed, Mao Zedong's literary and art thought.must also be developed in
the light of the new situation and our historical experiences. The past
erroneous tendency of studying Comrade Mao Zedong's "Talks" and other works
with a dogmatist attitude must be prevented. However, Mao Zedong's
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literary and art thought is still of important guiding significance today.
Total repudiation of Mao Zedong's literary and art thought under the pretext
of past mistakes or other reasons is an expression of bourgeois liberaliza-
tion and must be resolutely opposed. We must adhere to the basic principles
of Mao Zedong's literary and art thought and continue to follow the brilliant
example of Comrade Mao-Zedong in leading the work in the literature and art
fields. We must adhere to Mao 'Zedong's literary and art thought and the
guidance of Mao Zedong Thought. This is the only correct road for the
development of our revolutionary literature and art.
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ARID AREAS IN THE NORTHWEST SHOULD ATTACH IMPORTANCE TO PLANTING TREES AND
GRASS AND DEVELOPING A DIVERSIFIED ECONOMY
Beijing RED FLAG in Chinese No 11, 1 Jun 82. pp 7-8
[Article by Commentator]
[Text] Having little rainfall, some arid areas in the northwestern part
of our country, such as Gansu Province, suffer more from natural disasters.
In these areas, it is relatively difficult to make agriculture prosper at
one stroke. However, with large territories and rich resources, these areas
have bright prospects and favorable conditions for developing a. diversified
economy.
Our problem, however, is that quite a few cadres in charge of rural work in
these areas have a poor understanding of the importance of a diversified
economy, and know little about how to promote it. Unaware of the bright
prospects of developing a diversified economy in these areas, they have
failed to readjust crop planting distribution in light of the actual situa-
tion and according to local conditions. In fact, these areas should grow
more industrial crops and should not attach sole importance to the produc-
tion of grains on existing farmland. There is no doubt that it will be
relatively difficult to change the face of these backward areas if they
depend solely on grain production.
To effectively promote a diversified economy requires resolution and per-
sistence. The drive to promote a diversified economy must be pushed for-
ward several times a year, and constant and continuous attention must be
paid to the work. Furthermore, investment in agricultural construction
must be adjusted accordingly, and more funds should be allocated to promote
a diversified economy. Old practices must be cast off and new paths opened
up in accordance with new circumstances.
However, the most important step is to vigorously plant trees and grass so
as to change the arid condition in the area. To launch this drive, we must
courageously criticize the thinking that tree and grass planting will not be
successful without water conservation projects. More than 100 years ago,
Zuo Zhongtang, then governor of Shaanxi and Gansu Provinces, planted poplars
and willows along the road stretching from the Shaanxi-Gansu border to
Yumen. In noticing Zuo Zhongtang's merit, someone wrote a poem for him, a
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verse of which reads, "Poplars and willows have been planted along a road
3,000 li long, and thus the spring breeze is brought to Yumen Pass."
Although a feudal bureaucrat, Zuo Zhongtang still had such boldness of
vision! How can we communists be afraid to embark on similar projects? We
must have firm faith that we can do a better job than he did if we are
really determined. Last December, when talking to the comrades of Sichuan
Province, Comrade Deng Xiaoping strongly urged them to plant trees and,
grass. Planting trees and grass has many benefits. It can conserve water
and soil, purify the air, regulate climate, ease pollution and prevent sand
from being blown by the wind. In fact, this is a radical way to expand the
area of vegetation, conserve soil and water, maintain an ecological balance
and preserve the environment for the cycling of matter, which is indispen-
sable for human existence. Therefore, all arid areas must: pay attention to
this work and should never lower their guard.
Organs, schools, PLA units, and enterprises must be vigorously mobilized to
take the lead in planting trees and grass. For these areas, how many trees
a person must plant a year is not an essential question. Instead, we should
try our best to plant as many.trees and as much grass as possible under
existing conditions. We must widely publicize the drive to plant trees and
grass and carry it out in a big way.
We should also be determined to develop animal husbandry, such, as cattle
breeding, sheep breeding and so forth. About 2,000 years ago, Ma Yuan, a
well-known figure in the Han dynasty, achieved his great cause of developing
animal husbandry in Gansu. It is thus clear that husbandry has been well
developed in Gansu in historic times. In order to vigorously develop hus-
bandry, we must pay attention to properly preserving grasslands. Although
there are vast grasslands in these areas, the number of livestock they
carry is low as scientific methods have not been used to popularize a fine
variety of pasture and management of the grasslands is poor. Such a situa-
tion must be completely changed.
Furthermore, great attention must be paid to developing the processing
industry for agricultural, sideline and special local products. Great
importance must also be attached to light industry and manufacture of
products by minority nationalities, so that they can be developed as soon
as possible.
We must urge our cadres to go to grassroots units to conduct investigations
into the problems involved in promoting a diversified economy and planting
trees and grass. We encourage more investigation and study, learning from
the masses and from practice, because our cadres' knowledge in this field
is limited and their ability to solve problems is poor. This is the only
way to enhance the knowledge of our cadres.
Undoubtedly, our cadres in these areas such as Gansu have many merits which
are worth being developed. They are loyal, hardworking and honest. How-
ever, some of them also have several weak points: For example, they are not
sufficiently openminded and farsighted, and consequently, they are not
readily receptive to new matters. In fact, they are restricted by objective
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conditions. In remote border areas like these, culture is underdeveloped
and people are poorly informed. Therefore, we must pay close attention to
arming our cadres with modern scientific knowledge. We must educate them
to broaden their view and open their minds by learning from people who
have advanced experiences and are well versed in scientific knowledge.
Our slogan is to take advanced people as our teachers and arm ourselves
with scientific knowledge.
CSO: 4004/38
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GRASP THE BUILDING OF MATERIAL CIVILIZATION WITH ONE HAND AND THE BUILDING
OF SPIRITUAL CIVILIZATION WITH THE OTHER
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 9-13
[Article by Wang Shoudao]
[Text] Editor's note: We commend this investigation
report to the readers. As circumstances permit, the
veteran comrades pay visits and carry out investiga-
tions.in the lower levels each year and meticulously
compile written reports afterward. It is a very good
sign and should be encouraged in a big way. By so
doing, first, they will be able to keep in close touch
with the actual conditions, and better propagate and
implement the principle, lines and policies of the
CCP Central Committee; second, they will be able to
discover certain problems and put forth suggestions--
this is the most practical advisory work; third, taking
the lead in so doing, the veteran comrades pass on their
yaluable experience to the cadres in power and particu-
larly, the younger cadres.
This spring I carried out an investigation of factories and villages in the
municipalities of Guangzhou, Shenzhen, Zhuhai, Zhongshan, Xinhui, Jiangmen,
Foshan, Nanhai and Conghua. I held discussions with a number of responsi-
ble comrades of the province and the prefectures, municipalities and coun-
ties and also with rural cadres. I also visited a number of workers' and
peasants' homes. I noticed that, in recent years, in the field of economic
construction, Guangdong has achieved a faster rate of growth and higher
economic returns. The political situation is also getting better and
better. There have also been improvements in the party style, social
climate and public order.
Economic Construction Is Steadily Developing
In the past few years, Guangdong Province has seriously implemented the
central authorities' guiding principle on further readjusting the national
economy and their decision that Guangdong should practice a special policy
and flexible measures in its external economic activities. Proceeding from
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Guangdong's actual situation, the province has handled relatively well the
relationships between centralized control and enlivenment of the economy,
between advance and retreat, between readjustment and restructuring, and
between expansion of external economic activities and economic readjustment
and development. As a result, steady development of the province's economy
has been promoted.
1. Agricultural production is steadily developing. In promoting agricul-
tural production, Guangdong Province has linked the functioning of the
superiority of the collective economy to the mobilizing of the individual's
initiative, by means of continuously perfecting the agricultural production
responsibility system, and thus has added strong driving force to the
development of the rural economy. Under the guidance of the state plan, the
province has readjusted its agricultural economic distribution according to
the local conditions, and thus has changed the relatively unitary economic
structure of the past. Comparatively remarkable development has been
achieved in both the diversified economy and communes' and brigades' indus-
trial and sideline production. For example: Vigorously promoting the
diversified economy in the Zhu Jiang Delta under the circumstances that the
rice growing area has been stabilized; reducing the grain procurement quota
for mountainous areas and the border special zones, so as to push ahead with
the development of forestry, forestry sideline production, the production of
special local products and agricultural and sideline products for foreign
trade such as vegetables, fish, poultry and so on; linking grain production
with sugarcane production so as to push ahead with the latter; and estab-
lishing a number of bases of commodity grain and bases of oil crops, fishery,
forestry, animal husbandry, special local products, and so on, so as to
gradually rationalize the internal production structure of agriculture.
Last year relatively great development was recorded in industrial crops and
diversification despite serious natural disasters such as floods and typhoons
which caused a fall in grain output of 3 billion jin. Sugarcane output may
have reached 12 million tons, an increase of more than 30 percent over the
previous refining season; this was the biggest increase recorded since the
founding of the state. Total value of the province's agricultural output
rose by 3.3 percent over the previous year. Nanhai County scored outstand-
ing achievements. Its total value of agricultural output in 1981 was 23.8
percent higher than in 1980. Despite a slight reduction in the grain and
cocoon harvests due to natural disasters, forestry output value rose by 9.3
percent, animal husbandry by 3.3 percent, sideline production by 44 percent,
and fishery production by 4.1 percent. The collective economy has developed
rapidly, the political situation in the rural areas is more stable, and one
of the best rural situations since the founding of the country has indeed
emerged.
2. New progress was recorded in industrial production. As far as industrial
production is concerned, we have readjusted the orientation of service,
improved the product mix, enlarged the scope of service and realized a rela-
tively fast speed of development in accordance with the characteristics that
there are a large number of workshops in the province, the degree of flexi-
bility is high, and that there are sufficient export facilities since our
province neighbors Hong Kong and Macao, and in accordance with the market
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demand. As a result, development of light industry was accelerated and
there was a certain growth in heavy industrial production. Last year total
output value rose by 11.4 percent, with increases of 17 percent in light
industry and 1.8 percent in heavy industry. Based on the experiences gained
in Jiangmen, Qingyuan and other municipalities and counties where experi-
ments on reform of the economic system have been actively and steadily
carried out, Guangdong has pushed forward various forms of the economic
responsibility, rights and interests, improved business and management and
aroused the enthusiasm of the enterprises and the broad masses of workers.
The economic returns of state-owned industry and communications enterprises
in Foshan municipality previously were never very good. Profit per 100 yuan
of output value was only some 5 yuan in 1979, lower than the average for the
province, and also lower than the municipality's previous, best level. Last
year the Foshan Municipal CCP Committee vigorously popularized the experience
of the Shiwan chemical industry ceramics plant in implementing the system of
"four fixes and four guarantees" ("four fixes" means that: the plant fixes the
number of workers in the workshops, fixes equipment, fixes raw material sup-
plies and fixes expenditure; "four guarantees" means that: the workshops must
guarantee quantity, quality, variety and profits). Internal economic activ-
ities among the enterprise units were carried out in accordance with esti-
mated costs and the system of "free supply" was abolished. On completion
of the task of "four guarantees" the workshops would be given a certain
amount of money as a bonus. However, those workshops which were unable to
complete the task of "four guarantees" would be fined in accordance with the
regulations. Various other forms of the economic responsibility system were
also practiced in the administrative offices. Thus the economic responsi-
bility and economic interests of the internal units of the enterprises and
the individual workers were made clear. Thus', the staff'and workers of the
enterprises were encouraged to enthusiastically seek ways to increase pro-
duction and economize expenses. As a result, distinctive economic results
were obtained and large-scale. increases of production and revenue were
achieved. The municipality's industrial production quota was fulfilled 46
days ahead of schedule. Total value of industrial output: showed an
increase of 23.11 percent, while profits rose by 55.29 percent and profit
turned over to the state increased by 14.4 percent. This was the highest
rate throughout the province.
3. The province has actively developed external economic activities and
speeded up the development of its domestic economy. The trial operation of
special economic zones has not only directly provided favorable conditions
for economic construction in the special zones themselves, but has also
indirectly supported economic development in the interior, stimulated joint
undertakings'with the interior, and expressed the complementary relationship
between economic development in the special zones and the interior.
In the course of implementing its open-door policy, Guangdong has achieved
three integrations. First, economic activities with foreign countries have
been integrated with economic readjustment and.now serve economic readjust-
ment, thus enabling local industries to enjoy development in the course of
the open-door policy and enabling their products to penetrate foreign
markets and so bring their own superiority into play. Second, economic
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activities have been integrated with the technological transformation of
enterprises and a number of enterprises have been equipped with advanced
and suitable foreign technology. Third, economic activities have been
integrated with the development of urban and rural public facilities.
Through various channels, they have attracted foreign capital for use in
education, culture, bridges, roads, and so forth. They have thus speeded
up urban and rural construction. Furthermore, in cities in border regions,
they have started up lawful border trade on a small scale. This has also
definitely had a hand in increasing peasants' income, improving the lives
of commune members and stabilizing public order in the border regions.
4. The markets are prosperous and lively and the standard of living of
people in the urban and rural areas has improved. In the wake of the
development of production and the increase of the circulation channels, the
markets have grown more and more prosperous. Comparing 1981 with 1980, total
volume of commodity retail sales rose by 15.9 percent, while purchasing
power increased by 13.4 percent. There were ample supplies of clothing and
utensils. Savings deposits of the urban and rural people increased by 45.7
percent over 1980, urban workers' wages rose somewhat, jobs were found for
400,000 during the year, and 5.1 million square meters of urban workers'
housing were completed. Housing conditions improved to some extent.
The peasants' income from collective and domestic sideline occupation
increased to a certain extent over last year. In the rural areas new housing
construction by peasants can be seen everywhere; this is a major hallmark of
the improving standard of living of peasants. In the rural areas in Nanhai
County, there was an upsurge in building houses. In many places both the
scale and standard of construction exceeded the previous records, and.a
situation in which "each household prepares the materials and each brigade
is engaged with construction work" existed. According to incomplete statis-
tics for the county, the rural areas of the whole county built over 16,000
houses last year, with a total area of over 1 million square meters. Over
90 percent of them were reinforced concrete structures. Many old villages
have taken on a new look. Xiaolan commune in Zhongshan County built 3,502
new houses last year (1,637 houses were reconstructed), showing an increase
of 1,966 houses over the preceding year. Peasants living in brick and tile-
roofed houses accounted for 93 percent of the commune's total population.
Many peasants in Nanhai County have developed from purchasing the "three old
things" (bicycles, sewing machines, watches) to the "three new things"
(television sets, radio-cassette players, electric fans). The peasants in
Xiaolan commune in Zhongshan County owned 24,069 bicycles in 1981, showing
an increase of 2,992 over the preceding year; 10,681 sewing machines, show-
ing an increase of 2,415 over the preceding year; 1,810 television sets, an
increase of 835 over the preceding year; 7,416 electric fans, an increase of
5,179 over the preceding year and 2,632 radio-cassette players, an increase
of 1,193 over the preceding year. Visiting the lower levels and seeing the
improvement in the life of the broad masses, we are more confident of the
future of our economic development.
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The Building of Spiritual Civilization Has Yielded Results
In our socialist state, if socialist ideology fails to occupy a dominant
position in the society, it is impossible to ensure a socialist orientation
in building material and spiritual civilization. At present, it is neces-
sary, by centering on the task of building spiritual civilization and in the
light of practical problems in work and ideology, to strive for a decisive
turn for the better in party work style, social mood and. social order.
First,.the problem of party work style occupies an important place in
socialist spiritual civilization. Guangdong implements special policies
and adopts flexible measures in its external economic activities, but it
should by no means be exceptional in party work style and party discipline.
The open-door foreign policy and relaxation of domestic policy also chiefly
refers to economic policies. We should never relax party work style and
party discipline, but should enforce them more strictly. It should be
affirmed that the foundation of the party work style in Guangdong Province
is good. The majority of party members and cadres are loyal to the cause
of the party and the people, diligent and hardworking. There are plenty of
cadres who are willing to serve the people wholeheartedly and who bend
their backs to their tasks until their dying day; there are also plenty of
cadres who are honest in performing their official duties and remain uncon-
taminated. However, owing to various complicated causes, both historical
and practical, the problem of party work style has now become an outstanding
problem that should be solved urgently. Due to the proximity to Guangdong
of Hong Kong and Macao, the corrupt bourgeois ideology and lifestyle will
definitely take advantage of the open-door policy to work their way in.
In the economic sector, unhealthy tendencies and violations of the laws and
discipline have been fairly serious. A considerable number of party members
have committed economic errors. The proportion of economic cases in rela-
tion to the total number of criminal cases has risen. Furthermore, the
amounts involved are generally quite big. Viewed from the nature of the
problems, illegal activities such as speculation, profiteering, graft,
embezzlement, smuggling and selling of contraband, and offering and
accepting bribes are on the increase; acts in violation of financial dis-
cipline such as indiscriminate issuance of bonuses and loans, arbitrary
price increases and illicit distribution of public property as well as
unhealthy tendencies such as.making use of one's connections and influence
have developed to some extent. What is worthy of attention is that the
circumstances of some cases are serious and the methods employed are
heinous. This reflects that some party members and cadres, and even lead-
ing cadres, have a prominent tendency to "think of everything in terms of
money." Furthermore, some leading cadres quite obviously use their power
for their own. gain and seek privileges. Some leading cadres are seriously
guilty of bureaucratism, are extremely irresponsible in their work and
their revolutionary zeal is waning. In the rural areas, some party members
participate in feudal superstitions, gambling, armed conflicts and other
activities, and the situation is also quite serious. In view of the situa-
tion stated above, the Guangdong Provincial CCP Committee has mustered its
strength and grasped the problem from within. With the power of a thunder-
bolt and the speed of lightning, it has resolutely carried out investigations
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and meted out punishments to those party members and cadres who have dared
to flout the law and who openly take part in the smuggling and selling of
contraband, graft, embezzlement, offering and accepting bribes and other
violations of the law and discipline. It has spared no one, regardless of
seniority. The.provincial CCP committee has stipulated that CCP organiza-
tions at various levels should vigorously grasp party work style this year.
It is necessary to mobilize the whole party to study again the "Guiding
Principles for Inner-Party Political Life" and carry forward the party's
three important work styles. It is necessary to vigorously praise good
party members and cadres, expose typical examples of unhealthy party work
style and deal with them seriously. The three special zones of Shenzhen,
Zhuhai and Shantou have formulated regulations governing party and govern-
ment cadres in the special zones so as to educate and check up on them.
In Shenzhen, rectification of the party has been started by grasping typical
cases of illegal building of houses and smuggling and selling of contraband
and by dealing with them with great fanfare. This has hit out at the
unhealthy trends and practices, caused far-reaching repercussions and
brought about an improvement in the social mood.
Second, a problem that merits our serious attention in Guangdong is pre-
serving a good social mood and preventing cadres and the masses from being
contaminated and corrupted ideologically as a result of the open-door policy.
The Guangdong Provincial CCP Committee has repeatedly and explicitly
announced: We should absorb as well as resist capitalist elements to a
certain extent. With respect to funds and technology from Western capital-
ist countries, we should absorb them, but we should uphold proletarian
spiritual civilization, maintain and carry forward the fine traditions of
our nation and the proletariat and foster a new socialist mood. Since
February last year, the "five stresses and four beauties" activities have
been vigorously launched in Guangdong. In the past year, especially since
the second half of last year, the building of spiritual civilization in
Guangdong has yielded some results and social mood and social order has
started to take a turn for the better. To counter the problems of "dirt,
disorder and high cost" in municipal environment and sanitation and in
prices, Guangzhou municipality launched last year a "three rectifications"
drive (rectifying the environment and sanitation, social order and traffic,
and market prices) and, by taking this as a breakthrough in building
spiritual civilization, organized several big activities. At the same time,
Guangzhou municipality launched extensive education in morality and in
democratic and harmonious new family relationships along with activities
.such as promoting new wedding styles and "learning from Lei Feng and
adopting new habits." At present, the appearance of the city's 25 main
streets has started to change. Some guest houses which were criticized by
foreign guests in the past for their poor service have, through the
civility and decorum activities, improved their work to a considerable
extent. The mood of unity and mutual help and of taking pleasure in help-
ing others has also been initially revived and carried forward. Moving
examples reflecting the spirit of "a family in trouble enjoys the support
of 100 families" have emerged in many localities. Last year, the activities
of "five stresses and four beauties" and "three loves" (love for the mother-
land, socialism and the collective) were vigorously launched in the three
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special zones of Shenzhen, Zhuhai and Shantou. At the same time, efforts
were made to improve municipal environment and sanitation, traffic and
order. The social appearance is now developing in a good direction.
School education has an important position in building spiritual civiliza-
tion. The special zones attach great importance to conducting positive
education among youths in order to inspire their patriotic enthusiasm and
guide them to study hard, engage in healthy and uplifting activities and
develop in an all-round way, that is, to develop morally, intellectually
and physically. The atmosphere and appearance of the middle and primary
schools in Shenzhen are taking a gradual turn for the better. In Shenzhen's
Futian junior middle school, there were only eight CYL members in April last
year and the political atmosphere was weak. Since the launching of the
"five stresses and four beauties" activities, many pupils have been keen on
making progress politically and, by the end of last year, the school had
succeeded in recruiting 71 CYL members. With the economic development in
the special zones, the spiritual outlook of the people in the special zones
is also changing. The youths are very keen on studying and urgently wish to
study new knowledge and technology. More young workers have registered to
take part in sparetime studies and studying diligently has become the order
of the day. The Guangming Overseas Chinese electronic factory in Shenzhen
has proposed the "three resistings and three promotings" drive (resisting
corrosion and influence by bourgeois ideas and promoting the style of being
honest in performing one's official duties and of remaining uncontaminated;
resisting the influence of the bourgeois practice of each trying to cheat
or outwit the other and of benefiting oneself at the expense of others and
promoting the style of being concerned for comrades and taking pleasure in
helping others; resisting the influences of out-and-out bourgeois egoist
ideas and promoting the style of safeguarding public property and abiding
by social morality) and extensively and thoroughly conducted education in
upholding the four basic principles and in socialism, patriotism and
collectivism.
Third, in strengthening the socialist legal system, improving social order
and defending social order, Guangdong has done a lot of work. Since last
year, the party and government organs at various levels have extensively
launched the "three rectifications" drive. The public security and judicial
departments have made a concerted effort in promptly and severely punishing
various criminals such as counterrevolutionaries and murderers, arsonists,
rapists, looters, traffickers in narcotics and ringleaders of criminal gangs
who seriously endangered social order. With respect to various illegal
organizations and publications, obscene books, paintings, tapes and video-
tapes, steps have been taken to.resolutely ban them in accordance with the
relevant regulations, laws and decrees of the state. The work of suppressing
smuggling in the border and coastal areas has also been strengthened by
mobilizing the masses to report or expose offenses to the authorities. A
number of cases such as smuggling and selling of contraband, tax evasion and
speculation have been proved through investigation. This has dealt a severe
blow to economic criminal activities. By so doing we have succeeded in
consolidating the people's democratic dictatorship and further removing
various factors unfavorable to stability and unity. This has contributed to
the relatively stable environment in life and work throughout the province
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and ensured the smooth progress of industrial and agricultural production
and other work. There was a turn for the better in social security as a
whole last year. The healthy tendency is in the ascendant and the unhealthy
tendency is in the descendent. Good people and deeds related to the strug-
gle against bad people and deeds have emerged in large numbers. The dis-
orderly conditions such as "the neighbors closing their doors when a house-
hold is being robbed," "all people looking on with folded arms while another
is being maltreated," and "good people are bullied while bad people are over-
weening" have changed. Last year the incidence of crime was 18 percent less
than in 1980. This included a 55 percent decline in cases of robbery. How-
ever, owing to various reasons, especially to the proximity of Hong Kong and
Macao to Guangdong and to its being situated in a border and coastal area,
which results in an excessive number of transient people and in a relatively
complicated situation, the social order as a whole has not taken a funda-
mental turn for the better. Various criminal activities such as robbery,
theft, gambling and mercenary marriage still continue to occur. We should
still make tremendous efforts in order to check the unhealthy tendencies..
Several Questions That Merit Attention
This visit to Guangdong was very fruitful. I and other comrades who traveled
with me were glad to see fast economic development in Guangdong and a
promising urban and rural political situation. While carrying out inspec-
tions and discussions on our way, we gathered the following opinions:
1. When the Central Committee decided to set up experimental special
economic zones in Guangdong and Fujian Provinces, it was a brand new under-
taking. We are groping our way forward. We need to continuously sum up
experiences and lessons in the'course'of practice. Whether they are experi-
ences of success or lessons of error, as long as we clear-headedly recog-
nize them, they will all be beneficial to our work. The Shenzhen-Shekou
industrial zone has taken the initiative by setting up special zones and
has reaped distinct results. The Shenzhen-Xili reservoir resort has its
own rustic flavor. The Zhuhai-Shijingshan mountain resort has set up a
strict, scientific management system and has enlightened us much in our
work. Certain of our units and organizations are overstaffed. There are
more personnel than matters to be attended to. They are plagued by bureau-
cratism. Whenever they are confronted with work, they try to pass the buck.
Efficiency is extremely low. Some people hold "iron ricebowls" and eat from
a "big pot." Should they not learn from these good experiences to overcome
the malpractices in their own work? *Some comrades have adopted all along a
negative, suspicious attitude toward the open-door policy and the experi-
mentation with special zones. They think that the open-door policy has
opened a back door for bourgeois ideology and has corrupted the party style
and social climate. We are no longer in the period of remote antiquity.
No country in the world can now afford to keep itself to itself. During
the feudal dynasties of the Ming and Qing in Chinese history, we tried on
numerous occasions to implement a "closure of ports." This was to have dire
consequences on the development of our own productive forces and caused
tremendous political and economic loss. The open-door policy is highly
conducive to the enlightenment of people's thinking and the promotion policy
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will inevitably cause certain lawless elements to take advantage of the
situation and carry out activities designed to sabotage socialist construc-
tion and also definitely affect the party style and social climate. How-
ever, the present problems associated with the party style and social
climate are not entirely due to the open-door policy. We must both
acknowledge its side effects and even more recognize the nature of the prob-
lem. We must have full confidence in the open-door policy and our experi-
mentation with special economic zones. We must conscieni_iously sum up and
continuously improve. The special economic zones must not be completely
Westernized. They must not turn into second Hong Kongs or Macaos.
2. There has been a good start in building spiritual civilization and an
improvement in the social and moral atmosphere. However., the development
is unbalanced. What merits our attention now is that there are still many
party committees and leading cadres who do not have a sufficient under-
standing of the significance of building spiritual civilization. Some of
them think that they are too busy with their work and cannot spare time to
promote the building of spiritual civilization; some of them lack confi-
dence in building spiritual civilization, holding that "a bonus of 10 yuan
is better than doing 1 year's work in grasping spiritual civilization"; some
think that spiritual civilization is unable to solve problems and is like
scratching an itch from outside one's boots; some think that grasping
civilization is the work of the departments, and wonder why the CCP Central
Committee and the provincial CCP committees should make a fuss of it. In
order to persistently and profoundly launch the building of spiritual
civilization, we must strengthen and improve party leadership and further
enhance the whole party's understanding of building spiritual civilization.
In the course of building spiritual civilization, we must strongly grasp the
question of party work style, social customs and social order. We must
create public opinion in a big way so that it can become regular and syste-
matic among the masses. On the basis of extensively mobilizing the masses
and improving the level of understanding, we must make the best use of the
situation and formulate certain practicable facts, agreements with the
masses, management regulations, rules and so forth in relation to the over-
all situation or certain aspects of building spiritual civilization. We
must, by means of building spiritual civilization, make our people become
people who have ideals, morality, culture and who abide by discipline.
3. Market prices is a major matter to thousands and thousands of families.
Last year in Guangdong, procurement of agricultural and sideline products
at negotiated prices and increases in the rural financial credit expendi-
ture, workers' bonuses and transient laborers accounted for the situation
in which a large amount of the currency was put in circulation, an exces-
sive amount of food coupons were in the hands of the people and there was
short supply of vegetables, nonstaplefoods, construction materials for
the rural areas, medium-size and small farm tools and other commodities.
In addition, slackened market management and increased prices of commodities
have affected the livelihood of the masses and, in particular, the liveli-
hood of a certain section of workers and staff members. The question of
commodity prices is a matter of overall importance and is a relatively
complicated question. We must resolutely implement the 10 regulations on
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stabilizing market prices issued by the State Council recently, and adopt
the comprehensive measure of integrating economic and administrative methods
and ideological education. The state-owned commercial enterprises must take
the lead and set good examples in implementing the market price policy and
strictly forbid private price increases and price increases made in dis-
guised forms. It is necessary to seriously deal with cases in violation of
the price policy and price discipline. We must punish according to law
those who break the law. Governments at all levels must perfect the organs
in charge of commodity prices, carry out regular inspections of the market
prices, form a system and strengthen supervision by the masses. Maintaining
fundamentally stable commodity prices is extremely essential to stabilizing
the economy, maintaining stability and unity and improving the masses'
livelihood. This must not be treated lightly.
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ENHANCE THE ROLE OF BANKS AND DEVELOP DOMESTIC CAPITAL
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 14-17, 8
[Article by Liu Hongru [0491 7703 0320]]
[Text] While explaining the Ten Point Economic Construction Policy at the
4th Session of the 5th NPC, Comrade Zhao Ziyang pointed out: "The role of
banks in accumulation, transfer and unified control of credit funds should
be strengthened." Implementing earnestly this policy, bringing the role of
banks into full play and developing domestic capital have great significance
in finding a solution to present financial difficulties, in carrying out
the mission of economic readjustment and in accelerating the socialist
modernization program.
Lack of funds is an outstanding problem in maintaining a certain growth
rate in our economic construction. However, it must also be noted that at
present there is amazing waste in various fields, ranging from production
and circulation to capital construction. Enormous social wealth will result
if potential is tapped. Therefore, on the one hand, we must through our
policies arouse the enthusiasm of the enterprises, the communes and their
subdivisions, the staff and workers as well as the peasants, tap potential,
develop the economy and try by every means possible to increase production
and revenue and add to the wealth of society. This is a basis for develop-
ing domestic capital. On the other hand, we must pool the scattered funds
and by means of banking and the use of bank credits use them in the produc-
tion and construction needed by the state, while putting financial matters
under centralized control and making use of capital.
Lenin long ago advocated the use of the bank to regulate the socialist
economic life of the country as a whole. However, we have for many years
failed to pay attention to fully enhancing the role of banks. Since the
3d Plenary Session o.f the 11th CCP Central Committee, the CCP Central Com-
mittee and the State Council have pointed out that efforts should be made
to help banks become a tool for developing the economy and renovating tech-
nology and that stress should be laid on encouraging banks to become
involved in more activities, undertake more tasks and give full play to
their greater role in opening up new prospects of acquiring and accumu-
lating funds and im improving the use of funds. Following this orienta-
tion, we have over the last 3 years adopted various methods of collecting
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funds and have expanded the scope of bank credits. For example, we have
changed from the method of free subsidies for some parts of the investment
in fixed assets to that of bank loans which have to be repaid with interest;
the People's Bank has begun to grant medium- and short-term loans for buying
and upgrading equipment with emphasis on the replacement and renovation of
equipment and technical transformation of enterprises which produce goods
for everyday consumption; the eligible recipients have been expanded from
production and circulation fields to service trades, tourism and units in
the scientific and technological departments which have business income and
the ability to repay. In controlling credit, we have followed the principle
of dealing with each case on merit and supporting those which excel in their
business and paid attention to implementing the role of such economic levers
as credit rate and foreclosure. All of these reforms have played a fairly
satisfactory role in improving the economic results of the funds, developing
domestic capital and promoting economic readjustment. Practice has proved
that emphasizing utilization of the bank to raise social funds and using
those funds for production and construction through loan distribution are
in complete accord with the new conditions of the development of our economy
and reflect the objective requirements of the economic structural reform and
a correct way to improve the economic results of investment.
The banks' capital comes mainly from: 1) official listed capital and the
accumulation of a certain portion of profits which the bank is entitled to
keep~as credit funds; and 2) the currency issued in accordance with the
needs of the development of production and the expansion of circulation.
With the development of production and the increase in the people's income,
more and more money has been absorbed by the bank. Particularly since the
3d Plenary Session of the 11th CCP Central Committee, with the greater finan-
cial power of the local authorities and enterprises, the growing collective
economy, the increasing income of the urban and rural population and more
money in the hands of the enterprises, units and individuals, the bank is in
a position to accumulate these scattered funds by means of absorbing
deposits on which interest is paid. This will, on the one hand, safeguard
the economic rights and interests of the depositors and,.on the other hand,
enable the state to arrange and use these funds in a planned way. During
the 3 years from 1979 through 1981, various kinds of bank deposits increased
by a big margin at an average annual rate of 2,000 percent over 1978. But
we must also understand that bank deposits are reserve currency and the
monetary expression of social material wealth; therefore, the growth in
deposits is restricted by production increases, national income and the
consumption fund. Bank loans are limited by the sources of capital on the
one hand and by the volume of material supplies on the other. Provided the
volume of bank loans is complementary to that of material supplies, the
realization of bank loans in kind can be ensured. Banks should not rely on
an oversupply of currency in circulation to expand their credits because
the issuance of currency must suit the needs of commodity circulation.
Oversupply of currency in circulation will lead to price hikes and infla-
tion. This is an objective demarcation line.
The CCP and the people's government have always adopted a policy of keeping
the value of money stable and have persisted in not adopting the method of
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issuing more money to expand the scope of capital construction. This is a
major condition for ensuring the smooth implementation of the economic
readjustment, effecting the steady growth of the economy and consolidating
the stability and unity of the political situation throughout the nation.
The fairly rapid growth of currency in circulation over the last 3 years
has resulted from the changes in economic development. This is because the
fairly rapid growth of agriculture and light industry and the expansion of
the scope of commodity circulation created a need for a corresponding
increase in the supply of currency in circulation. At the same time, with
the implementation of the various forms of the production responsibility
system in rural areas and the restoration and development: of the collective
economy and the individual economy in cities and towns, there have been many
more economic units and management levels for preserving cash in the urban
and rural areas, and with more people working, the growth of income for
people in both urban and rural areas and the increase in the reserve money
of the units and the individuals, there has been a greater capacity for
currency in circulation. However, we must also acknowledge that the present
supply of currency in circulation is still on the excessive side and the
ratio of the currency in circulation to the volume of commodity supplies
still has not reached previous normal levels. Latent dangers still exist.
If more currency is issued, it will be difficult to keep market prices
basically stable or to consolidate the results of the economic readjustment.
Must we therefore adopt the method of tightening money supply and reducing
consumption to withdraw huge amounts of currency from circulation as we did
when our country encountered economic difficulties in the 1960's? This also
will not do. This is because, first, the current economic readjustment is
carried out in a situation where there is a sustained increase in both
industrial and agricultural production. Furthermore, in order to lay a
foundation for future long-term development, we must maintain a certain
growth rate. This determines that in financial matters, reducing the amount
of bank loans by a big margin and stifling the economy is not permissible.
Second, the current economic readjustment is carried out in a situation
in which the peasants' income has increased, large numbers of people
awaiting employment in cities and towns have been given fobs and there has'
been an increase in both wages and bonuses. Reabsorbing currency from
circulation by relying on reducing the number of staff and workers and con-
sumption is not permissible. Instead it is necessary to suit currency
circulation to commodity circulation by significantly boosting production
of consumer goods, of agricultural means of production and of building
materials for agricultural use and increasing commodity supplies. Third,
although large and medium-sized projects under construction, whose scopes
are overstretched and building cycles rather long, cannot produce results
for the time being, they must not be abandoned all at once as was done in
the past when we suspended construction of the "small local construction-
groupings." The disproportions in the economy and the oversupply of cur-
rency in circulation are the result of the "leftist" mistakes which have
existed for years. It will take time to return to normal and it cannot be
accomplished in a year or two. Precisely because of this, although the
supply of currency in circulation is on the excessive side and exceeds the
needs of commodity circulation, in order to help readjust heavy industry
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to service orientation, we must, within the limits of state plans for the
national economy and of bank credits, increase loans for production and
construction as much as possible, and in particular support the production
of goods for everyday consumption, boost the production of brand-name goods
which sell well and also the production of building materials for agricul-
tural use and the agricultural means of production which are needed by the
peasants. Rather than reabsorbing huge amounts of currency from circula-
tion by adopting the method of tightening money supply and reducing con-
sumption to shrink production in an oversimplified way, we must support
agriculture in developing grain production and a diversified economy to
provide more raw materials, to light and textile industries so that they can
develop and supply the market with more commodities. Thus, for a .certain
time there will be no rapid improvement in the situation in which the supply
of currency in circulation is still on the excessive side. However,
because bank loans are used mainly to finance operational activities which
require less money but promise quicker and bigger results, once they produce
economic results, it is possible to increase commodity supplies at a fairly
rapid pace, step up the withdrawal of currency from circulation, boost
financial revenue and thus provide a material base for returning currency
circulation to normal.
At present, the contradiction confronting us is this: on the one hand,
.theme has been an oversupply of currency in circulation and the issuance
of currency must be put under strict control, while, on the other hand,
it is still necessary to increase some loans to revitalize the economy
under a unified state plan. In order to solve this contradiction, accumu-
late more funds and raise the economic results of the use of funds, banks
should devote their energy and time in the following ways:
1. Vigorously develop the savings undertakings in urban and rural areas.
In recent years, with the increase in their income, urban and rural resi-
dents have had more cash in their hands, part to be used as a working fund
for covering the needs of daily life and production and which cannot be
absorbed in large quantities as'savings deposits, and the other part to be
used as reserve funds for buying such goods as durable consumer goods and
for savings which will rise for a long time. By absorbing into the bank
this part of personal savings which will not be used for the time being,
we will be able to turn consumption funds into production funds in a plan-
ned way.and that part of the latter which is relatively stable over a long
period of time can be used to support construction. At the same time, the
realization of its potential as purchasing power can be postponed, thus
reducing the currency in circulation. Of course, to increase savings
deposits, banks must adopt strong measures, such as doing a good job in
propaganda work, improving the quality of service, readjusting savings
interest rates, increasing varieties in savings which suit the needs of
the masses, setting up more savings networks and strengthening the work of
rural credit cooperatives.
2. Offer leadership to the various enterprises and units in planned use of
funds in production and construction. In accordance with the regulations
of the state's system of cash control, apart from a small quantity of cash
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to be retained for services and supplies, the monetary income of the
enterprises and units must go to the bank. For the. enterprises and units,
the question of absorbing idle funds in society does not exist. The problem
at present is how to guide enterprises and units which have surplus funds
at their disposal to try as far as possible to invest these restricted funds
in production and construction which are urgently needed by the state and
promise good economic results. The guidance may be multifaceted. For exam-
ple, the bank is allowed to handle fixed deposits of the enterprises and
units, pay them higher interest than is paid on current deposits and con-
vert short-term funds into long-term ones; it is allowed to issue bonds
under specified conditions so as to concentrate long-term funds and support
the small number of construction projects within the jurisdiction of state
plans; to handle trust business in places where conditions permit and within
the limits of state regulations; and to adopt flexible and various ways to
absorb and use funds and do more work under a unified state plan so as to
benefit the revitalization of the economy. Further, developing domestic
insurance will enable us to establish a system of economic compensation on
the one hand and play the role of accumulating funds on the other. In
struggle to combat floods and help to tide the people over natural disasters,
as in Sichuan, Shaanxi and Liaoning Provinces in 1981, the system of insur-
ance displayed its great compensatory role. The insurance premium handed
over by Sichuan Province to the insurance company in the 2 years 1979-80
was no more than 20 million yuan but in 1981 the insurance company paid an
indemnity of 77 million yuan for losses suffered by Sichuan Province from
natural disasters, thus helping the disaster-stricken enterprises quickly
restore production. This shows that establishing this system of economic
compensation on a nationwide scale and putting the transfer of funds under
unified control will play a positive role in restoring production and
stabilizing life in the disaster areas and ensuring the stability of
financial revenue and expenditure.
3. Tap the potential of existing funds, try hard to reduce the funds
seized and left idle in the circulation field, increase goods and materials
and speed up the turnover of funds. At present, large quantities of circu-
lating funds are seized and left idle by industrial and commercial enter-
prises all over the country; the turnover of these funds is slow. This is
an outstanding manifestation of poor economic results. For example, the
turnover rate of circulating funds of state-run enterprises in 1981 was 3.12,
a decrease of 1.15 compared with the 1965 record of 4.27. The turnover rate
of the circulating funds of the commercial enterprises also did not reach
the highest record in history. Reducing our circulating funds by 2 or 3
percent will mean a nationwide savings of 7 to 10 billion yuan. In dis-
cussing the principle of reproduction, Marx said that commodity reserve is
divided into voluntary reserve and nonvoluntary reserve. The former is the
necessary. condition for commodity circulation and the latter is the result
of goods not being sold well. We must strive for a growth rate on the basis
of products of good quality and responsive to social demands. This is a
true growth rate void of exaggeration. While speed is mentioned, we must no
longer blindly seek output value, because this will result in huge over-
stocking of surplus goods and poor-quality and unmarketable goods and
ineffective use of huge funds. Consequently emergence of the phenomena
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whereby "in industry, good news is announced while in commerce, bad news;
in warehouses, there is overstocking while in finance, nominal increases."
Eventually, as a result more banknotes have to be issued. In order to pre-
vent this situation, in regard to the enterprises whose products are in
excessive supply banks should practice stricter and tighter control over
funds and resolutely carry out the system of raising interest rates and
requiring more interest as a forfeit and even stopping the granting of
loans. It is necessary to uphold the principle of production, purchase and
order according to sale, stimulate the enterprises to economize on the use
of funds and cut down the seizure of funds. We must strive to support the
enterprises to produce and market more products which meet social demands
with the least possible credit funds and provide the state with more accumu-
lation. At the same time, in order to increase goods and materials and
revitalize the economy, it is also necessary to use the bank to do a good
job in smoothing things out. For example, of the machinery and electrical
products kept in stock, some are needed for replacement and renovation of
equipment and technical transformation. However, handicapped by a lack of
funds, the enterprises are unable to buy them. In regard to these products
kept in stock which have a ready market, banks should on the one hand grant
loans to units to purchase and upgrade needed equipment and, on the other,
call in the circulating fund loans used in stocking materials. Some products
kept in stock can be marketed through installment payments. In this way,
with little or no increase in the total amount of loans, the goods and mate-
rials kept in stock can also come into play and reinvigorate heavy industry,
thus bringing to the state additional income in taxes and profits.
4. With regard to helping to improve economic results, transfer funds and
choose the orientation and key points for their'tise and explore and open up
new sources of revenue. In accordance with the decisions of the state on
the entire national economy and the nature of credit funds that loans con-
tracted from credit funds should be repaid and credit funds kept in con-
tinuous circulation, in using limited funds, banks should give priority to
production and construction activities which require less money but promise
quicker and bigger results by adopting a method of "rolling a snowball" so
that they can provide more products and funds in a fairly short period of
time. 1) Vigorously support the development of the rural commodity economy
rather than using funds purely in relief work. 2) Substantially support
development of the production of consumer goods and stimulate heavy industry
to readjust its orientation toward services. At the same time, positive
support should also be given to such fields which need funds as service
trades, tourism, culture, education and hygiene. 3) Support existing
enterprises which are carrying out technical transformation in an orderly
way and do a good job in the technical transformation of enterprises pro-
ducing consumer goods. Positive credit support should also be given to
energy and transport and communications projects under the jurisdiction of
state plans which ensure a quicker turnover of funds, promise bigger results
and have business resources and the ability to repay. Practice shows that
so long as the above-mentioned orientation and key points are upheld, it is
very necessary to explore and open up new sources of revenue for the bank to
use in granting certain medium- and short-term loans for buying and upgrad-
ing equipment to be used in replacement and renovation and technical
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transformation. The total amount of the additional medium- and short-term
loans for buying and upgrading equipment which was granted by the People's
Bank in the 3 years 1979-81 constituted 10 percent of the total amount of
the increase in loans. These credit funds were used mainly to replace and
renovate equipment and in the technical transformation of old enterprises;
about 70 percent were used to support the technical transformation of enter-
prises in the light and textile industries. This has played a fairly satis-
factory role in boosting the production of consumer goods and promoting
economic readjustment. With a big increase in the production of consumer
goods--an important condition--market prices can thus be kept basically
stable and the supply of currency can be reduced. Thus, it is justified to
say that proper use of loans can boost financial revenue, accelerate with-
drawal of currency from circulation and benefit the realization of the basic
balance between finance and credit.
5. Do a good job in the overall balance between funds and materials. At
present, the bank not only grants circulating fund loans but also extends
fixed assets loans. In a situation in which the country has financial
difficulties and the supply of currency in circulation is still excessive,
will credit inflation emerge? This is a question which concerns some com-
rades and is also a problem existing in our practical work and calls for
attention and earnest solution. Besides practicing strict planning and
control over the scope, orientation and key points of the use of bank loans
as we have stated above, it is also necessary to do a-good job in the over-
all balance between funds and materials. First, the balance between the
source and use of credit funds is achieved mainly in terms of the total
amount and the makeup of funds. In terms of the total amount of funds,
the amount of bank loans extended must correspond to the source of funds.
This is a premise. It is still necessary to make an analysis of the con-
ditions of long-term funds (for a year or longer), the officially listed
bank capital, the relatively stable part of long- and short-term deposits
which are continuously circulating, some being drawn out and some invested
to make up the sources of funds. Second is the balance between bank loans
and goods. The question whether or not credit inflation will emerge lies
in whether or not a balance between bank loans and goods can be maintained
and the specific terms of the loans, whether or not the required goods can
be ensured, the materials are applicable and the economic results can be
guaranteed rather than in the size of bank loans. Every bank loan must go
through strict examination to see whether or not the source of goods has
been fixed and whether or not fairly good economic results can beprac-
tically ensured. In our work, so as to prevent blind and duplicate pro-
duction, we must act according to the plans stipulated by the state and we
must not undertake new projects outside the state plan. Finally, it is
still necessary to adhere to a unified balance between finance and credit.
6. Credit funds should be put under a unified plan and policy as well as
control. In order to speed up construction, some localities and departments
have undertaken more capital construction projects by pooling funds. Some
localities have set up various forms of investment companies and run local
banks in a disguised form; some have raised funds by asking banks to give
them money not set in the previous planning. These actions, in fact, amount
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to drawing out funds which have been deposited in banks and which have
already been included in the banks' planning and also going in for non-
budgetary capital construction or using funds for other purposes. Actually,
as far as the enterprises and units are concerned, there are no idle funds.
Their funds are all deposited in the bank. The bank takes account of such
deposits in making credit plans. Withdrawal of the deposits of enterprises
and units results in deficits in the arrangement of funds. Eventually, all
parties concerned would reduce their deposits in the People's Bank with the
result being either the issuance of more banknotes, which is not permissible,
or the reduction in bank loans which are needed in normal production and
circulation. This is to no avail. Therefore, money must be collected and
funds raised through the bank. The People's Bank must earnestly carry out
its responsibilities as the central state bank, be responsible for issuing
banknotes, balance credit plans in a unified way and, while balancing, try
hard to ensure increases in some places while decreases emerge in other
parts and to eliminate deficits.
Our country has always practiced a centralized and unified policy in its
financial undertakings. Practice in the 32 years since the founding of the
PRC has proved that this policy conforms to the objective requirements of
the socialist planned economy and the inherent laws governing the movement
of credit funds. In accordance with the regulations stipulated by the
State Council, credit matters must be centralized in the hands of banks and
no localities are allowed to set up any financial organs without authoriza-
tion. The financial organs approved by the State Council must also bring
their credit activities into line with a unified plan, do a good job in the
overall balance so that the issuance of currency can be put under strict
control. Under a unified policy and plan as well as unified control, the
various banks (including the People's Bank of China and specialized banks)
must share the work and cooperate with one another, gradually reform the
management system and work regulations and rules which are not suited to
the needs of economic development, accumulate more funds, put the funds to
effective use, transfer funds in a flexible way and make concerted efforts
to raise the economic results of the funds. At the same time, it is also
necessary to strengthen the supervisory functions of the bank, resolutely
combat criminal activities in the economic field and resolutely struggle
against all sorts of activities which violate financial and economic dis-
cipline. Strict checkups must be carried out on the various items such as
loans, transfer closing accounts, receipts and payments of cash and revenue
and expenditure of foreign exchange so as to stop the leaks. If problems
crop up, they should be investigated thoroughly and dealt with seriously.
It is necessary to sum up experience, further enhance the role of banks and
make greater contributions to the socialist modernization program.
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EARNESTLY CARRY OUT RESEARCH ON THE ECONOMIES OF DEVELOPING COUNTRIES
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 18-22
[Article by Qian Junrui [6929 0193
3843]]
[Text]
I
Under the present international circumstances, it is of great importance to
earnestly study the economic issues in developing countries. This can pro-
mote China's modernization construction, develop friendly cooperation with
Third World countries, particularly in the economic field, and carry for-
ward our common struggle to establish a new international economic order.
Since World War II, along with the upsurge of national liberation movements,
many colonial and semicolonial countries have won independence-one after
another; the colonial system of imperialism has disintegrated and the Third
World has mounted the stage of history as a new force. The national econo-
mies of developing countries have been growing and getting stronger. How-
ever, owing to the long-term rule, plunder and exploitation of colonialism
and imperialism and the aggravating scramble of the two superpowers for
spheres of influence and world hegemony, developing countries still face a
lot of difficulties and problems in developing their economies. They have
the solemn task of developing national economies and safeguarding political
independence. China is a developing socialist country which belongs to the
Third World. We have the same past experiences as other developing coun-
tries and shoulder a common fighting task together with them. We con-
sistently give our sympathy and support to developing countries in their
struggle to defend national independence, develop national economies and
strive for social progress. The Chinese people will always stand side by
side with the Third World countries and peoples and fight to break the old
international economic order and establish a just and reasonable new inter-
national economic order.
The developing countries hold an important position in the world economy.
They have three-quarters of the world's population and cover three-fifths
of the globe. They are rich in natural resources and there are industrious
and wise people in these countries. The people of developing countries have
created prosperous economies with their own hands and have had brilliant
ancient cultures. It is only since the 15th century that they successively
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suffered aggression, oppression and plunder by Western colonialism and
imperialism and therefore were reduced to the status of poor and backward
colonies, semicolonies and dependencies which supplied raw materials for
imperialism, were markets for its products and gave it opportunities for
investment. Since their independence, however, these countries have
increasingly strengthened their capability to develop their economies
independently. The economies of developed Western capitalist countries,
on the other hand, have become more and more dependent on developing coun-
tries. Some 75 percent of crude oil needed in developed capitalist coun-
tries is supplied by the Third World. Some 40 percent of the crude oil
needed by the United States and 90 percent of that needed by Japan, West
Germany and France must be imported. Besides crude oil, 60 percent of their
needs for major agricultural and mineral raw materials have to,be supplied
by developing countries. In particular, nearly all major strategic raw
materials used in the nuclear energy, space navigation and electronics
industries, such as beryllium, lithium, cobalt and other rare metals, must
be imported from developing countries. In addition, developed Western
countries must also depend on exporting capital and selling products to the
Third World. It can be seen that, at present, in the interdependent world
economy, most of the developed capitalist countries would find it difficult
to subsist without the developing countries. Developing countries have
great potential for developing their economies. Those who deem that Third
World countries have no impetus from within to develop their economies but
can only achieve development by depending on the "charity" of the developed
countries are obviously people with wildly arrogant prejudice (some people
in developed countries) or have an inferiority complex (some people in the
Third World); their point of view is absolutely groundless.
Since their independence the developing countries have worked out and
carried out a series of strategies, policies and measures to develop their
national economies. For example, they have handled these matters: How
a state should intervene in economic life to mobilize the initiative of
various economic elements; how strategies and plans for economic development
should be worked out in the light of local specific conditions and how
unreasonable economic structures should be reformed; how to utilize, limit
and supervise foreign capital on the basis of self-reliance, to import
practicable technology and to develop scientific and educational undertak-
ings; how to exploit manpower resources and to promote economic develop-
ment; how to prevent the environment from being polluted and how to pre-
serve the ecological balance; and so on. In the course of practice, they
have had successful experiences and have drawn lessons from failures.
Although the social systems of those nationalist developing countries are
different from ours, and other socialist developing countries have their
respective specific conditions, a lot of things about their past and
present conditions are similar to ours. Therefore, we must earnestly study
and make use of their experiences, so as to benefit the development of
China's socialist economy.
Third World countries are all quite young. With the exception of a small
number of newly developed industrial countries and petroleum producing
countries, the level of their economies is, in general, still comparatively
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low; people still live in poverty and there are still many difficulties and
obstructions in the course of their economic development. They need to
strengthen economic cooperation on the basis of collective self-reliance
and take a road that can lead to common prosperity. China is willing to
stand together with the people of developing countries in the struggle
against the exploitation, oppression, control and economic infiltration of
imperialism, colonialism and hegemonism and against the imperialists'
monopoly of the world economy. In doing so, we must devote great efforts
to intensifying our study of the economies of developing countries so as
to make clear our needs and capabilities as well as theirs. In accordance
with actual conditions and characteristics, we can thereby expand our
economic relations, develop economic cooperation and jointly strive for a
common prosperity on a practical, equal and mutually beneficial basis.
This is one of the basic principles of our foreign policy. It is our
unshirkable sacred duty to do a good job in this field.
The rise of the Third World and the increasingly heightened position of
developing countries in the world economy are new phenomena arising since
World War II. This has posed many new questions in theory and in practice.
What are the main questions that we should study at this time? We believe
that the following are of importance and worth emphasizing:
1. The economic control, infiltration and exploitation of developing coun-
tries by the superpowers and multinational corporations and related
theories, policies and measures. Since World War II, along with the dis-
integration of the colonial system of imperialism, superpowers and inter-
national monopoly capital have changed their tactics in their attempt to
pursue neocolonialism.- In particular, as capital has become more and more
internationalized, multinational corporations have rapidly expanded their
domain in developing countries. Using various means and methods,
imperialists and hegemonists have carried out economic plunder, exploita-
tion and domination in developing countries. They have cultivated their
cohorts, plotted subversion against legal governments in. developing coun-
tries or even committed aggression against them. The Soviet hegemonists,
who call themselves "natural friends" of the Third World, under the pre-'
tense of "assisting" national liberation movements and carrying out
"internationalism" and "the international division of labor" also spare no
effort in infiltrating and controlling developing countries politically,
economically and militarily, plundering their raw materials, and occupying
their strategic areas. They have even sent troops to invade Third World
countries. All this is conducted under the cover of a greatly deceptive
theory and realized by means of extremely sinister tactics and ruthless
measures. We must seriously study and thoroughly expose their acts and
wage a blow-for-blow struggle against them.
2. The strategies and different modes of economic development in develop-
ing countries and their theoretical basis. In the postwar period,
developing countries have worked out and carried out various strategies
for development in line with their respective conditions, thus forming
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varied modes of development. In terms of strategy, some practice exporting
primary products; some practice import substitution, others practice export
substitution; some give priority to heavy industry, others lay stress on
the development of light industry and agriculture. In recent years quite a
few developing countries, by summing up their past experience in development
strategies, have embarked on working out and practicing strategies oriented
to satisfying the basic needs of the people. These strategies and modes of
development vary in content. Each has both advantages and shortcomings.
In the course of practice, some have promoted economic development; some
have yielded few benefits; others have even met with great setbacks. The
crux of the reasons for the above different results is whether development
strategies in these countries are derived from a correct guideline and
whether they are suited to their own specific conditions. At present, we
are making a further study of the specific conditions of our country and
are working out and practicing a strategy for developing our socialist
economy. Under these circumstances, it is imperative for us to study the
conditions, contents, results and theoretical basis of various development
strategies and modes practiced in developing countries and use them as our
references.
3. The problems of population growth, economic development and pauperiza-
tion in developing countries. Since World War II, developing countries
have achieved certain successes in developing their national economies.
The average yearly growth rate of their gross national product was 4.71
percent in the 1950's; 5.6 percent in the 1960's; 5.3 percent in the 1970's;
higher than the corresponding rates--4.1 percent, 5 percent and 3.1 per-
cent--of developed Western countries. In spite of this fact, because of
their weak economic foundations coupled with a higher population growth rate
than in developed Western countries, the majority of developing countries
still lag far behind developed Western countries in terms of gross national
product per capita. The gap is becoming even wider. Calculated at 1950
constant prices, the per capita GNP of developed countries in 1950 was
$3,840, while that of developing countries with low incomes was $164. The
former was 23 times more than the latter. In 1980, per capita GNP of
developed countries increased to $9,684, nearly 40 times that of developing
countries with low incomes which was only $245. The difference thus
increased from $3,676 to $9,439. It is particularly noteworthy that because
the population of developing countries grows faster than grain output, many
of them have changed from grain exporting countries to grain importing coun-
tries and the degree of self-sufficiency has markedly dropped. In particu-
lar, hundreds of millions of people in Sub-Saharan African areas and in
South Asia are still living in starvation or semistarvation. Grain has
become a prominent problem in many developing countries. This problem not
only severely affects economic development, but also the stability of the
political situation. Therefore, the study and solution of the problems of
population, grain and pauperization brooks no neglect..
4. The economic cooperation between developing countries. In order to
fight against control and exploitation by superpowers and international
monopoly capital and jointly overcome difficulties in the course of their
economic development, developing countries have displayed the spirit of
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collective self-reliance and, with solidarity and militancy, have strength-
ened their economic cooperation. They have formed many regional cooperation
organizations and organizations of raw material producing or exporting
countries, such as the Association of Southeast Asian Nations, the Andean
Group, the Economic Community of West African States, the Organization of
Petroleum Exporting Countries and so on. In the struggle in the inter-
national economic realm, they coordinate their stands and policies and
fight against exploitation and plunder by imperialism, colonialism and
hegemonism. In the course of developing their national economies, they
coordinate their development plans and strengthen economic cooperation in
all fields with a spirit of solidarity and mutual aid. At present, all
kinds of economic cooperation organizations of developing countries are
developing vigorously; they have occupied increasingly important positions
in the realm of international economy. This shows the strong power of
developing countries in their economic cooperation with the spirit of
collective self-reliance. However, owing to the problems related to
economy, boundaries, nations and religions left over by the rule of imperial-
ism and the imbalance in economic development between them, coupled with the
fact that imperialism and hegemonism are sowing dissension, developing
countries meet many difficulties and obstructions in the course of develop-
ing their economic cooperation. It is extremely important, therefore, to
find how developing countries can remove all external interference, frus-
trate plots to split their ranks and eliminate internal disputes with the
spirit of setting store by overall interests, seeking common ground on major
issues while reserving differences on minor ones, and mutual understanding
and accommodation. Thus the economic interests of different countries can
all be taken into account on the basis of equality and mutual benefit and
the development of economic cooperation between developing countries can get
further impetus. This matter calls for our.study from the angles of theory
and strategy.
5. North-South dialogue and the issue of establishing the new international
economic order. Although the colonialist system of imperialism has basically
disintegrated since World War II, the unfair and unequal. old international
economic order which merely protects the interests of imperialism and inter-
national monopoly capital still exists. It has seriously prevented the
national economies of developing countries from developing smoothly. In
order to change this state of affairs, in the postwar period, especially
since the 1970's, with the Group of 77 as the backbone, developing coun-
tries have struggled to break the old international economic order.
Through intense struggle and repeated negotiations, the position of develop-
ing countries in the United Nations and in other international economic
organizations and conferences has been raised. They have also strengthened
their independent decisionmaking power as regards limiting activities of
foreign monopoly capital and multinational corporations. In negotiations
and conferences, they have, with developed countries, reached some agreements
which are beneficial to developing countries, and have gained some substan-
tial benefits in overcoming their economic difficulties. These facts show
that developing countries have become a major force in the international
struggle of anti-imperialism, anticolonialism and antihegemonism and the
struggle to establish a comparatively fair and reasonable new international
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economic order. North-South dialogue, however, has made only slow progress
because most of the developed Western countries adopt dilatory tactics and
the Soviet Union refuses to recognize its duty. At present, gaining a clear
idea of the standpoints, tactics and policies of the superpowers and
developed capitalist countries in North-South dialogue, particularly find-
ing methods to strengthen the internal unity of developing countries, work-
ing out a correct strategy and tactics in accordance with scientific guide-
lines which tally with realities, waging struggle in a reasonable, profit-
able and methodical way and making unremitting efforts to establish a new
international economic order have become very important tasks of developing
countries. Chinese people are, of course, willing to make the due efforts
in this regard.
What are the basic principles guiding us in studying the above important
questions?
First, after collecting a large quantity of reliable information, we must
apply Marxist standpoints, basic viewpoints and methods in conducting
intensive and thorough analysis and study from the high plain of theory
and strategy in a realistic manner and by means of dividing one into two,
so as to correctly realize the historic position and basic conditions of
developing countries. We should also sum up their experiences and draw
lessons from the course of their national economic development and go
deeply to learn the laws governing their national economic development.
Marxist classical authors have made a host of profound expositions on the
economies of colonial and semicolonial countries in the light of the
historic conditions of their time. For example, Marx has expounded on the
plunder and exploitation of colonial and semicolonial countries by
colonialism; Lenin put forward the theory on national liberation movements
in colonial and semicolonial countries and national economic development
after their political independence. Comrade Mao Zedong enumerated the
theory on the division into three worlds and, taking China as a typical
example, he explained that the bourgeoisie in colonial and semicolonial
countries can be divided into-the comprador bourgeoisie and the national
bourgeoisie and also noted the duality of the national bourgeoisie and the
essential importance of the peasant problem in these countries. All these
are of great guiding significance in our study of the national democratic
revolution and the development of the national economy in the broad develop-
ing countries. Many of these viewpoints are still our major theoretical
basis in analyzing the economies of developing countries. Of course, since
World War II things have changed greatly. We cannot rigidly adhere to a
few prepared conclusions. Instead, we should base ourselves on the new
conditions, study new problems and draw new conclusions, creatively develop-
ing scientific theories to guide our acts. We should, therefore, on the
one hand oppose the dogmatist method which does not proceed from realities
but merely looks for conclusions from books and, on the other hand, oppose
the erroneous attitude that varies from Marxist basic theory and totally
and uncriti.cally accepts the bourgeois theory. At present, the most
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important thing for us is to widely and intensively absorb knowledge of the
past and present economies of developing countries, collect detailed mate-
rial and make an analysis by means of discarding the dross and selecting
the essential, eliminating the false and retaining the true, proceeding
from the outside to the inside, and proceeding from one to the other, so
as to discover the nature of things and draw scientific conclusions in the
unity of history and logic.
Second, we must earnestly acquaint ourselves with foreign theories and
methodology on the economic development of developing countries. Since
former colonies and dependencies won political independence one after
another, Western bourgeois economists have intensified their study of the
economies of developing countries in order to protect the colonial inter-
ests of imperialism in these countries and regions. In accordance with
Keynesian theory, they have laid emphasis on the key function of state
intervention and expanding demand. They peddle to developing countries
the "models" of economic development designed by them, the most famous
among these being the "Harrod-Domar model." It should be pointed out that
some of their methods in analysis are indeed worth taking as our refer-
ences. In general, however, these theories do not tally with the realities
in developing countries. Some are even designed for the exploitation and
plunder of developing countries. For example, the theory of "equilibrium
of international demand" put forward by Western scholars deems that trade
between developed countries and developing countries is conducted on the
basis of exchange of equal value without exploitation. Progressive
scholars in developing countries have criticized this theory. This criti-
cism contains many reasonable factors which are worth our serious consid-
eration. But some people in developing countries put forward a theory of
"center and margin" in which developed capitalist countries are taken as
the "center" of the world, while developing countries are only viewed as
the "margin" which.has no inner impetus and can only seek development by
attaching itself to the "center." This theory is wrong in both system and
methodology. If the economies of developing countries have to circle the
"center"--developed capitalist countries--then they will, never shake off
their economically dependent position. Some other people go to another
extreme by advocating "severing all relations with Western countries."
Both these theories go against the general tendency of contemporary economic
development. Thus, both are harmful.
The "theories" mentioned above influenced policymaking of the governments
of developing countries to varying degrees. Many developing countries have
worked out their respective development strategies and policies under the
guidance of this or that theory. Some have achieved a certain success and
promoted their economic development; others have met with setbacks and
failures and got their national economies into trouble. In some countries
where the economy has developed at a fairly high speed comes another prob-
lem--aggravating polarization and sharpening social contradictions.
Therefore, it is necessary to concretely analyze foreign theories and
methodology on economic development.. We should assimilate whatever is
reasonable and, with the spirit of seeking truth, point out what is wrong
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and why it is wrong. We should also seriously criticize what is reactionary.
Each school of foreign "development theories," and each part of the develop-
ment theories in developing countries together with its methodology should be
taken seriously. We should gain a clear idea of its origin and development,
content and essence. Only thus can we correctly study the strategies and
modes of developing countries in developing their economies and absorb
valuable scientific elements, so as to speed up the economic construction of
our country.
Our research on the economies of developing countries has just begun. We
need to mobilize the cadres who are concerned with foreign economies and
trade and the comrades who are concerned with researching and teaching of
world economy throughout the country to coordinate in collecting and sorting
out materials and in carrying out thorough specialized study in a planned
and organized way. Comrades who handle actual foreign economic work should
strengthen their theoretical study and exploration, while comrades who are
engaged in theoretical work should pay more attention to actual economic
work. Only thus can one learn from others' strong points to offset one's
weaknesses and closely combine theory with practice. At the same time,
when possible, we should strengthen academic exchanges with foreign
scholars, particularly progressive scholars of the Third World, in a planned
way, so as to benefit our research on the economies of developing countries.
CSO: 4004/38
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AN IMPORTANT REFORM IN THE SUPREME STATE ADMINISTRATIVE ORGANS
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 23-26
[Article by Xu Chongde [6079 1504 1795]]
[Text] The State Council of the PRC, or the central people's government, by
means of exercising its supreme administrative power, handles our country's
major domestic and foreign affairs and realizes the state. function of the
people's democratic dictatorship. The work of the State Council is directly
related to the success or failure of our country's socialist modernization.
Thus, the reform and perfection of the administrative system of the State
Council is of far-reaching significance.
There are only three articles under the section "The State Council" in the
present constitution, which was adopted in 1978. However, they have been
increased to nine in the draft of the revised constitution (referred to below
as the draft) after being revised, adapted and redrafted. The content is
more substantial than the present constitution and represents a new develop-
ment. Regarding the nature and status of the State Council: It is the
executive organ of the highest organ of state power and is the supreme state
administrative organ. This basic point was determined when our country's
first socialist constitution was promulgated in 1954. The later two consti-
tutions were formulated on the basis of the first one. The objective of this
revision is to more perfectly display the above-mentioned nature of the
State Council and further strengthen its status and give play to its role.
This kind of revision on the one hand reflects the continuity of our coun-
try's constitutions and on the other hand shows the vitality of our country's
organs of power, which are incessantly developing and perfecting.
Based on the original constitution, the draft has made great changes, mainly
regarding: 1) the organization of the State Council; 2) the leadership
system of the State Council itself; 3) the tenure of office of the State
Council leading personnel; 4) the power and function of the State Council;
5) the establishment of an auditing organ. In addition, since the State
Council is the organic constituent of the whole country's structure, the
series of reforms of other organs, such as the enlargement of the function
and power of the NPC and, in particular, the Standing Committee of the NPC,
the restoration of the PRC chairman, the establishment of the Central
Military Commission, and so on, will definitely exert certain influence on
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the structure and activities of the State Council. In short, the draft has
reflected the reforms of the State Council in many ways and cannot be dis-
cussed in detail in this article. Let me give my view on several questions.
The change of the structure of the State Council proposed in the draft is a
summation of experiences.over a long time in the past and is also a reflec-
tion and affirmation of the results of the reforms in the structure of the
State Council which are being carried out at present. The structure of the
country's highest administrative organs has undergone three stages of
development.
The first stage was the government administration council of 1949-54, which
was a committee system. The council consisted of one premier, several vice
premiers, a secretary general and several administrative councillors.
Administrative councillors could hold concurrent posts as directors of
council commissions or ministers, who were not necessarily administrative
councillors. That is to say, the directors of council commissions or
ministers were not necessarily members of the administration council. Such
a regulation was made at that time because the administration council had
30 subordinate ministries, committees, councils, departments and administra-
tive offices. Besides the administrative councillors who did not belong to
any ministries, if all the ministers and directors were administrative
councillors, there would be too many administrative councillors. Thus, it
would be more difficult to conduct administration council meetings. The
structure.and work methods of the administration council have provided
valuable experience for the reform of the leadership system of the present
State Council, the appointment of state councillors and the establishment
of a standing committee of the State Council which consists of a premier,
vice premiers, state councillors and a secretary general.
The second stage was a system stipulated in the 1954 constitution. Under
this system, the State Council consisted of a premier, several vice
premiers, all ministers, directors of all commissions and a secretary
.general. This system lasted the longest. There have not been any changes
except that the secretary general was deleted from being a member of the
State Council in the 1975 and 1978 constitutions. It was different from the
structure of the administration council in that there were no committee mem-
bers holding either concurrent posts as ministers or ministers without
portfolio; and all ministers and directors of commissions were without
exception members of the State Council. Therefore, we called this an
organizational form of ministerial meeting. The advantages of this system
were that all ministers of the State Council and directors of all commis-
sions were members of the plenary meetings of the State Council. They could
participate in the critical discussions of matters of overall importance
under the charge of the State Council. Such a form, in principle, is still
kept by the current draft of the revised constitution.
The structure of the State Council stipulated in this draft of the constitu-
tion is the third stage of the development of our country's highest adminis-
trative organs. Looking at Article 86 of the draft--on members of the State
Council--it is different from both the administration council and the
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original State Council. It is based on the two kinds of structures which
have been practiced by the country's highest administrative organs since
the founding of the country and has absorbed their strong points. It is
also a development of the former structure. In accordance with the stipu-
lation of the draft, the leadership system of the State Council itself after
being reformed is called the premier responsibility system. This system is
a form of what we usually refer to as a directors responsibility system.
Its main characteristics are:
First, the number of vice premiers is reduced to the minimum, appointing
state councillors so that the leadership system is more centralized. The
draft explicitly points out: "The premier directs the work: of the State
Council. The vice premiers and state councillors assist the premier in his
work." This shows that the premier holds the dominant post: in the leader-
ship system of the State Council although the State Council. is under collec-
tive leadership. The vice premiers and the state councillors are assistants
of the..premier. The state councillors are entrusted by the: premier to be
in charge of certain work and certain major tasks. They are also entrusted
by the premier to carry out important foreign activities.
Second, the draft stipulates that "the premier calls and presides over the
regular meetings and the plenary meetings of the State Council." This kind
of meeting is different from that of other organs which practice the
collegiate system of work procedure and method of making decisions. The
status of each member of the organs which practice the collegiate system is
fundamentally equal. While making decisions, each member has the same right
to vote. But it is different in the premier responsibility system. The
premier not only has the power to call and preside over the regular meetings
and plenary meetings of the State Council, but also has the power to gather
correct opinions and make the decision of the State Council during the meet-
ings in which major problems are discussed fully by all members.
Third, the draft stipulates.that the premier is to be appointed by the
chairman of the People's Republic of China. The chairman appoints the
premier with the approval of the NPC. In the past, people have not paid
much attention to the significance of such procedures. As a matter of fact,
.the chairman is the symbol and representative of the state. Therefore, the
premier actually receives the mandate from the state. He is to represent
the interests of the people in organizing the government and in bearing the
responsibility of managing state affairs and leading the highest administra-
tive organ. In the future, after the restoration of the post of chairman of
the PRC, this solemn legal procedure of appointing the premier will also be
restored and the responsibilities of the premier will be made more explicit.
On the other hand, the premier has the right to propose to the highest organ
of state power the appointment of State Council vice premiers, state council-
lors, ministers, directors of various commissions, the chief auditor and the
secretary general. When he thinks necessary, the premier also has the power
to propose to the highest organ of state power the dismissal of the func-
tion and power of these people. In light of this, we see that the adminis-
trative responsibilities of all people involved are clearly laid down.
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minister or director responsibility system." Now that the number of deputy
positions and vacant positions is reduced, the personal responsibility of
the department heads will become greater in actual work.
Among the various subordinate departments of the State Council, there is the
establishment of the auditing organ which is to independently exercise the
power of auditing and supervision under the leadership of the chief auditor.
This is a new characteristic of the draft on reform of the administrative
organs. By means of supervising the accounting procedures and the qualifi-
cations of the auditors themselves, the auditing organ exercises overall
supervision over financial and economic activities. Therefore, the auditing
department should be separated from the department of financial accounting
in modern economic management. The objective of auditing supervision is to
ensure that the state's capital is more rationally and legally gathered and
utilized and that it brings better economic benefits. It also helps to
strictly enforce financial discipline and prevents possible flaws that may
occur in the state's financial and economic activities and is thus conducive
to the socialist modernization drive.
Since ours is a vast country with a dense population, there are several
hundreds of thousands of enterprises and an enormous number of work units
and administrative organs, and it is necessary to practically protect the
state's huge capital and property. For many years in the past, because . .
there was neither a perfect legal system nor a complete auditing system or
an organ in charge of auditing supervision, unsavory trends appeared in the
area of financial and economic management. There was also malpractice which
made serious inroads on the state's property. Thus, it is extremely neces-
sary to perfect the auditing system and set up an independent organ in
charge of auditing supervision. In the wake of the development of socialist
construction, and in the wake of the expansion of thedecisionmaking rights
in the localities, departments and enterprises and the adoption of open
economic policies, new contradictions crop up incessantly, and thus the
demand for the establishment of an organ in charge of auditing supervision
has become more urgent. The draft stipulated: "The State Council will
establish auditing organs to audit and supervise finance and the financial
revenue and expenditure of the people's government at all levels and of the
financial and monetary organizations, enterprises, institutions and organi-
zations under the people's government." This complies with the demand of
China's financial and economic management and the building of the four
modernizations.
In order to continue to make the best possible use of the State Council.and
bring the'role of the highest administrative organ into full play, the draft
has, to a certain extent, expanded the authority of the State Council. One
relatively important item is that the State Council has the authority to
stipulate and approve administrative laws and regulations. The State Coun-
cil is the executive organ of the highest organ of state power. In the
course of carrying out laws and decrees, the State Council must make
administrative strategic decisions and promulgate regulatory documents in
accordance with the actual complicated situations. This is called adminis-
trative laws and regulations. This is the first concept stipulated in the
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draft on China's administrative laws and regulations. In our actual life,
the administrative laws and regulations deal with a wide range of things.
According to the stipulation of the draft, the State Council has the
authority to use the administrative laws and regulations to define the
obligations and duties of all ministries and commissions. This shows that
the authority of the State Council has expanded.
As a matter of fact, that the State Council has the authority to stipulate
and approve administrative laws and regulations does not mean that the State
Council has legislative power, nor does it mean that the State Council is a
legislative body. Although determined by the nature and characteristic of
the administrative power, in actuality, there are many more administrative
laws and regulations than laws and decrees. However, administrative laws
and regulations are after all different in principle from laws and decrees.
First, laws and decrees are stipulated by the highest-organ of state power.
In China, only the NPC and its Standing Committee, which are state.legisla-
tive organs, can exercise state legislative power. Moreover, administrative
laws and regulations are but administrative regulations promulgated by the
State Council in the course of implementing the law so that the law will be
carried out smoothly. Second, from the point of view of what binds and
compels, although administrative laws and regulations are almost similar to
laws and decrees, administrative laws and regulations. must abide by laws
and decrees and must not contravene the law. If there is any contradiction,
the NPC Standing Committee can change and repeal the administrative laws
and regulations. The difference between administrative laws and regula-
tions and laws and decrees is manifested in the subordinate nature of the
State Council to the highest organ of state power. In China, democratic
centralism and the system of "integrating discussions with action" are the
basic principles of the socialist political.. system. Even though this is
the fact, the draft has, for the first time, defined the status of adminis-
trative laws and regulations in the constitution. We cannot deny that this
is an important feature.
The reform of China's highest administrative organ manifested in the draft
of the revised constitution is very important. We can predict that the
working system of China's government will continue to improve and its effi-
ciency will be greatly enhanced. This will certainly perfect and strengthen
the organization and leadership of the socialist modernization.
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CHERISH THE MOTHERLAND'S HONOR, SAFEGUARD NATIONAL DIGNITY
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 27-30
[Article by Wang Bingnan [3769 3521 0589]]
[Text] Cherishing the honor of the motherland and safeguarding national
dignity is a sacred duty of every Chinese. In "The Draft of the Revised
PRC;Constitution," it is written: "The citizens of the PRC have the obli-
gation to safeguard the motherland's safety, honor and interests. They
must not do anything that harms the safety, honor and interest of the
motherland." It is of great significance at present that we strengthen
education of the cadres and masses in this aspect.
Over the past few years, by adhering to the principle of maintaining inde-
pendence and keeping initiative in our own hands, and reconstructing our
motherland through self-reliance, we have implemented the open-door policy
and scored positive results in promoting the building of the four moderni-
zations and enhancing mutual understanding and friendship with people of
other countries. In our ever increasing contacts with foreign countries,
many of our cadres and masses have displayed the lofty style of associating
their words and actions with safeguarding the honor of the motherland and
the dignity of the nation, and there have been many lively and stirring
deeds to win the acclaim of foreign friends. On the other hand, some
unhealthy phenomena have also appeared--some have done such things as
worshipping things foreign and toadying to foreign people, bowing and
scraping, forfeiting their self-respect and losing their personality and
national character. These people have no sense of decency. By dis-
crediting the honor of the motherland and hurting the dignity of the
Chinese people, they have not only aroused the indignation of the broad
masses of people within the country, but they have also deeply disturbed
many international friends, patriotic Overseas Chinese and Hong Kong and
Macao compatriots as well as having aroused their extreme concern.
Although these phenomena have only appeared among a small handful of
people, they exert a very bad influence. If we let them run rampant and
do not strengthen political and ideological education and take effective
measures, the body of our party and country will be seriously corroded and
the modernization program will be endangered.
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There are social and historical reasons for phenomena such as worshipping
things foreign and toadying to foreign people. First of all, China
experienced a semifeudal and semicolonial society for more than a century
and some people have not yet got rid of their capitalist ideology and the
colonial slave mentality. Second, the 10 years' internal disorder of the
"Great Cultural Revolution" seriously damaged the fine traditional ideology
and work style of our party. The patriotic sentiments, moral concepts and
sense of discipline of many people become blunted to the extent that some
even completely ignore them. Furthermore, since putting the open-door
policy into effect, we have underestimated the corrosion caused by corrupt
bourgeois ideology and ideological and political work have lagged behind.
And the precautionary measures are imperfect. For these reasons, when they
confront the dazzling bourgeois human world with its myriad temptations
some irresolute youths without experience in life cannot resist being
corroded by corrupt bourgeois ideology and, as a result, they are shot by
"sugar-coated bullets" and fall captive to bourgeois ideology. Therefore,
to overcome the ideology and acts of worshipping things foreign and toady-
ing to foreign people, we must educate the people, particularly the youth,
to correctly understand the motherland and our obligations and responsi-
bilities toward our motherland and foster a high degree of national pride
and confidence.
Our country is a great country and our nation is a great nation. Ours is
a country with a vast territory; our mountains and rivers are magnificent;
our products are abundant and we have a long history. Generation after
generation, the children of China have been living, working and struggling
in this land and we have created a magnificent national culture. For a
considerably long period of history, China's science and technology ranked
among the first in the world and we made great contributions to the develop-
ment of human society. According to the statistics of Joseph Needham, the
British scholar and author of "History of China's Science and Technology,"
more than 30 important Chinese inventions were spread to Europe and other
regions of the world from the opening of the Silk Road to the end of the
18th century. As Chinese, we should feel greatly honored. The Chinese
nation is not only famous for diligence and intelligence, but also for its
patriotic spirit and revolutionary tradition. Over thousands of years,
many national heroes and patriots who were "impervious to the temptation
of wealth and high position, not to be shaken or modified by poverty or
destitution, and did not succumb to military force" have emerged to safe-
guard the nation's honor and dignity. Particularly in modern Chinese
history, national heroes and patriots are as bright and abundant as the
stars. After Western capitalist countries blasted open China's gate with
their cannons in the Opium War, foreign colonialists colluded with the
Chinese feudal ruling class and willfully trampled on China. As a result,
China was in an abyss of misery for a long time. However, the people of all
nationalities in China never surrendered and they resisted foreign invasions
many times. There are many heroic and moving deeds. People like Lin Zexu,
Hong Xiuquan, Kang Youwei, Tan Sitong and Sun Yat-sen were outstanding
representatives of the Chinese people during this period. It is exactly
because the Chinese people indomitably advanced wave upon wave to resist
invasion that, although large and small imperialist countries of the world
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united to invade and suppress China, they could not destroy China. Since
the birth of the CCP, under the guidance of Marxism-Leninism, the glorious
patriotic tradition of the Chinese people has been further inherited and
brought forth. The CCP led the Chinese people to wage some extremely
arduous struggles and finally overthrew the three big mountains and won
national independence and liberation. Since then, the Chinese people have
controlled the national power, become the masters of their country and
resolutely followed the socialist path. This is the fortune, glory and
honor of the Chinese nation. Thousands and millions of Overseas Chinese
rejoice that the long period during which they were squeezed out and dis-
criminated against is now over.
Since the founding of the P RC some 30 years ago, although our country has
made mistakes and suffered setbacks, we have scored significant results in
economic construction. This is obvious to all and is universally
acknowledged. When new China was first established, we inherited from old
China a country in a complete shambles. The industrial base was very weak,
the equipment and installations were obsolete, the technology was backward
and the level of productive forces was extremely low. However, after 30
years' arduous struggles, the Chinese people have brought about profound
changes in various aspects. Basically, we have an independent and rela-
tiv~ly complete socialist industrial system and national economic system.
We could not manufacture accurate or large-sized machine tools just after
liberation, but now we are able to manufacture 270 varieties of relatively
complete machine tools. We are not only capable of manufacturing automo-
biles and airplanes, but also atomic bombs, guided missiles and manmade
satellites. Agriculture in our country has also made relatively great
progress and we have basically solved the problem of feeding our 1 billion
population. On the basis of the continuous development of industrial and
agricultural production, there has been a significant improvement in the
people's material and cultural life. Comparing China's standard of
economic development with other developed countries, ours is still rela-
tively backward. However,. when compared with old China or other foreign
countries, the rate of economic development over the past 30 years is
relatively fast. The socialist system is not only superior to the semi-
feudal and semicolonial society, but also to modern capitalist society.
This has been proven by evidence. Since the 3d Plenary Session of the
11th CCP Central Committee, we have summed up the positive and negative
experiences and proposed a new path for the building of socialism that suits
the actual situation of our country. There is no doubt that the superiority
of China's socialist system will be effectively brought into full play.
At present, our motherland has obtained its proper place in the world. The
age when foreigners treated the Chinese as. the sick man of East Asia" and
"an inferior nation" is long gone. In our contact with people of other
countries, we hold high the banner of opposing imperialism and hegemonism
and safeguarding world peace; we adhere to proletarian internationalism,
support the emancipation of the suppressed nations, the building of newly
independent' countries and the righteous struggles of the people of all
countries; and we have won praise and high appraisal from people all over
the world. As of now, we have established diplomatic relations with 125
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countries and we have friends all over the world. The Chinese People's
Association for Friendship with Foreign Countries has nongovernmental
contacts with some 120 countries and has established friendly relations
and connections with some 100 Chinese friendship associations from some 60
countries. In our nongovernmental friendly contacts with the people of
other countries, we deeply feel their sincerity toward the Chinese people.
They pin great hopes on China and try their best to cherish and safeguard
China's international reputation. They are distressed that some people
worship things foreign and toady to foreign people. Many foreign friends
treat China as their second homeland. Some friends want. to make a final
trip to China even though they are very old; some sacrificed their precious
lives for the Chinese revolutionary cause and for friendship with the
Chinese people; and others had deep love for China during their lifetime
and wanted to have their bones or ashes laid to rest in China. Many
Chinese friendship associations in foreign countries have overcome diffi-
culties regarding manpower, material and financial resources and launched
various activities to introduce China to their own country and to promote
mutual understanding and friendship with the Chinese pecple. How inspiring
and exciting this is! Compare it with those people who have lost their
national pride and who damage national honor and dignity. Do they not feel
ashamed of themselves?
People usually compare their motherland to their mother. This is a sacred
and solemn metaphor, and it vividly shows us the lofty status and great
significance which is due the motherland in our minds. Through the ages,
no one with a conscience would allow others to infringe upon the dignity
of his mother, and no one with high aspirations would use words and deeds
to bring disgrace on the reputation of his mother. People compare their
motherland to their mother, that is to say, all. people should ardently
love their motherland as they ardently love their mothers. They should
take safeguarding the honor and dignity of the motherland as their sacred
duty and winning glory for the motherland as their solemn obligation. We
are all raised with the milk of the motherland. Without: the motherland,
we would have nothing. In the poem "Singing for the Motherland," Martyr
Chen Hui wrote: "0 motherland, you raise me with your milk of love; and I
will safeguard you with my flesh and blood," and Martyr Chen carried out his
pledge. This is a model that we should always follow.
As a matter of fact, our motherland is still rather poor at present. This
is a fact that we will not deny. However, how should we tackle poverty in
our motherland? This is a question that tests our ideology and our sense
of values. Can we reject the motherland because she is poor? Can we beg
from foreign people? This is definitely not the proper attitude for a
loyal Chinese. Although the conditions of material life in developed
capitalist countries are better than ours, there is an insurmountable dark
side of things and there are incurable social evils. Bourgeois society is
a society of exploitation of man by man. Unemployment, drugs, robbery,
murders...emerge one after another in capitalist countries. Many people
have no ideals or convictions and lead lives devoid of meaning. It is
exactly like a foreign friend said: Having money does not mean having
happiness. The United States is one of the richest countries in the world;
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however, many people dare not step out of their doors at night and muggings
are not uncommon during the day. Although China is still relatively poor
today, because of the establishment of the socialist political system and
economic system, the people have a common ideal, common morality and common
discipline and there is stability and unity in public order. This is some-
thing beyond comparison with any capitalist country. Our forefathers said:
"Poverty cannot stifle one's lofty ideals." This is the glorious tradition
of the Chinese people. The modern writer and professor Zhu Ziging'was very
ill in 1948; however, he preferred to die of starvation than take food
handed out in contempt. He refused to take any U.S. "relief grain." This
illustrates the integrity of the Chinese people. Comrade Mao Zedong highly
praised him and proposed "writing a eulogy for Zhu Ziqing." Thus the
poverty of the motherland should not shake our pure hearts but should become
a powerful motivating force inspiring us to work hard for the prosperity of
the country. A specialist, who has rejected the superior living conditions
in a foreign land and returned to China to take part in the socialist con-
struction of the motherland, said: "The magnificent mansions and houses of
others are not as good as our own humble houses. We must build our own
magnificent mansions for the Chinese people." These words are very well
spoken! They reflect the deep love of the Chinese people for their mother-
land as well as their aspiration to build up China. Every Chinese, espe-
cially the young people, should take these words as his motto.
A man should have his moral integrity and a country should have its spirit.
The key to whether or not we can gain the respect of foreigners in our con-
tacts with them lies in whether or not we can safeguard our own moral
integrity and the spirit of our country. As the saying goes, people will
respect you if you conduct yourself with dignity and people will have a low
opinion of you if you have a low opinion of yourself. If we have self-
respect, we will certainly win the respect of the honest foreigners. On
the contrary, if we lose our integrity and the spirit of our country, as
some people do, and assume an air of complacency and servility, then
foreigners will look down on us. In having contacts with foreign friends,
we ought to stress civility and courtesy and be friendly.
On the eve of winning the national revolution, Comrade Mao Zedong exhorted
us to heighten our vigilance against the attack of bourgeois "sugar-coated
bullets." Since then, he has taught us many times to combat Jia Gui's
ideology.and work style and enhance our national self-respect and self-
confidence. Comrade Zhou Enlai also repeatedly taught us in dealing with
foreign friends to abstain from great-nation chauvinism on the one hand,
and to be neither overbearing nor servile on the other. We must "build up
our integrity and confidence." Many workers, peasants, workers involved
with foreign affairs, scientists and technicians, students studying abroad,
actors and actresses and sportsmen have adhered to the teaching of Comrades
Mao Zedong and Zhou Enlai. Whether in having contacts with foreign friends
at home or abroad, or during working, investigating, studying, competing and
performing abroad, they have tried very hard to make their words and deeds
comply with the demand of safeguarding the motherland's honor and national
dignity, and there have been many stirring deeds. This has inspired and
encouraged the people of the whole country. When Wei Yu, a lecturer from
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Nanjing Technical College who was awarded a doctorate by a technical college
in West Germany, was studying in West Germany, she was wholly absorbed in
her studies and led a very hard life. When people asked her why, she
replied: "Foreigners always appraise the Chinese social system, education
system and women's liberation by evaluating. every individual Chinese. I
must not let them down in my words and deeds." China's woman scientist
She Baoguang effected a breakthrough in the study of hepatitis B vaccine
during her advanced studies in the United States. However, she declined
an offer of a high salary in the United States and resolutely returned to
the motherland. "I want to work for the well-being of the people in the
motherland." These are indeed lofty patriotic sentiments and awareness!
In international competitions, the sportsmen of our country struggle for
the honor of the motherland. Therefore, when they score outstanding results
and when the five-star red flag is slowly hoisted on the playing field,
people burn with righteous feelings and are moved to tears. The mother-
land's honor and the national dignity affect the sentiments of thousands
and millions of Chinese because they have a mutual affinity and are closely
linked with each other. History and evidence have proved that being Chinese
is an honor of which we should be proud. No matter what the circumstances,
we must never forget that we are Chinese, members of the great Chinese
nation. Our words and deeds must comply with the spirit of our country and
our moral integrity, and we must never do anything to harm the interest and
image of the socialist motherland. This is the rudimentary and basic moral
character that we should have.
The CCP Central Committee called on us to strengthen the building of social-
ist spiritual civilization while strengthening the building of socialist
material civilization, so that the people of all nationalities in our
country will become people with ideals and moral character, disciplined and
well educated. Safeguarding the honor and national dignity of the mother-
land is an essential substance and demand of the building of socialist
spiritual civilization. Every one of us must take practical actions to
implement this demand. We believe that if we strengthen ideological and.
political education, if the leading cadres at all levels. and the party
members set an example for others to follow and if we seriously deal with
the small number of people who violate party discipline and laws, the
patriotism and internationalism of the people in our country will certainly
be brought into full play. We will be able to overcome the unhealthy trends
existing in foreign affairs, and thus the open-door policy will be imple-
mented in a healthier way and we will score better results.
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TRANSPORT WORKERS SHOULD STRIVE TO BECOME VANGUARDS IN PROPAGATING SOCIALIST
SPIRITUAL CIVILIZATION
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 31-33
[Article by Pan Qi [3382 3825]]
[Text] In the past few years, I have taken every opportunity to go to many
places in Shandong, Liaoning, Zhejiang, Shanghai, Jiangsu, Guangdong and
Beijing. Recently I have been to Shaanxi, Sichuan, Hubei and Anhui. I went
from place to place to visit bus stations. Occasionally, I took a long-
distance bus. Through direct contact with passengers, bus drivers, con-
ductors and bus station personnel, I have come to know much about the
situation and have heard various opinions. I have a strong impression:
There are many problems in the present bus transport work but the most
pressing problem to be solved is how to successfully carry out the building
of socialist spiritual civilization.
Not long ago, Comrade Hu Yaobang pointed out: "Bus transport corps and
bus drivers work in a decentralized manner. They are so decentralized that
they are not easy to supervise. If we can handle them well, they will
become a very good force that can propagate socialist spiritual civiliza-
tion. If we cannot handle them well, they will propagate bourgeois pesti-
lences and evil trends." Therefore we must first straighten out the mood of
bus transport corps and bus drivers. He also pointed out: "Keeping to the
positions of the party, the state and the people, we must set strict demands
on them, explain to them the character and style appropriate to bus trans-
port corps and bus drivers of a socialist 'country and require them to
change their mood." Cadres, party members and YCL members should play
their exemplary vanguard role and strive to become vanguards in propagating
socialist spiritual civilization. Comrade Hu Yaobang further said: "The
problem now is that the higher the ranking of an institution, the more
unable it is to do ideological work. Such institutions are unable to do
big jobs and then look down on small ones. They do not know-how to do
political and ideological work among the staff and workers on this front.".
He requires that we not only call for action, but also go into selected
units, work with the workers for a specified period of time, maintain close
contacts with the masses, set a good example, play an exemplary vanguard
role and carry out criticism and self-criticism. He also requires us to pay
attention to the livelihood of the staff and workers.
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Comrade Hu Yaobang's opinions are quite correct and very important to bus
transport personnel. He has pointed out a general aim for all comrades
doing bus transport work: Be vanguards in propagating socialist spiritual
civilization. Bus transport has the characteristics of being mobile and
decentralized, of operating independently, of going into the depths of
the cities and towns and of maintaining close ties with the broad masses.
The style of bus transport personnel not only affects the production and
livelihood of the people, but also makes-a great impact on the mood of
society. In recent years, the attitude and. quality of service of the
majority of bus drivers and bus station personnel have improved, and they
are energetically propagating socialist civilization. But a certain num-
ber of bus stations and bus transport corps still have many problems, some
of which are very serious. They are still far from the general aim of being
vanguards in propagating socialist spiritual civilization.
On 1 December last year, I witnessed the situation which was described by a
passenger who had written the following in the complaints book of a bus
station:
"On my way to your bus station, I saw your bus stations along the way had
something in common, whichI will summarize in the following four
sentences:
"1. Dirty--There is rubbish in and around the bus stations. It is
unsightly.
"2. Disordered--Passengers do not buy tickets in an orderly manner. They
do not queue up to board a bus, nor do they get off a bus and leave the
station in an orderly manner.
"3. Bad--The working personnel are not responsible enough. They do not
call the numbers of the buses. Once some passengers asked a station
attendant when the next bus would arrive. He did not know that a bus had
arrived.
"4. Unhealthy trends--Unhealthy trends are rampant. Acquaintances may go
first without taking a number or queueing up. Passengers from other places
have to wait longer even if their turn has come."
This passenger's opinion reflects the common characteristics of many bus
stations. It also represents the opinions of the majority of passengers.
The seriousness of this problem is evidence that many comrades in communi-
cations departments turn a blind eye and deaf ear and are apathetic to the
above phenomenon. Some comrades "are not itchy even though their bodies are
full of lice," and "are not worried even though they are debt-ridden." They
do not care what happens. Some run away from trouble, cannot exert them-
selves, do not have enough faith in themselves and give up their posts.
How can they become vanguards in propagating socialist spiritual civiliza-
tion unless this spiritual phenomenon is changed?!
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In 1980 and 1981, I went to Yentai in Shandong Province and Changshu in
Jiangsu Province to visit two bus stations which had long been cited as
Daqing-type enterprises. I particularly read all the opinions written in
the complaint books by their passengers. Really, it was not unique but
had its counterpart. Passengers' opinions about these two bus stations
were so similar and serious. It was really astonishing! Most of the
passengers' opinions about the bus station.in Yentai were directed at the
station's ticket sellers and working personnel who performed their duties
very badly and abominably. There were even three cases of hitting and
abusing passengers. Most of the passengers' opinions about the bus station
in Changshu were also directed at the station's working personnel who per-
formed their duties very badly and abominably. There were three cases of
creating difficulties for passengers and of quarreling with passengers. A
passenger wrote: "Let me ask: Where are your leaders' party spirit and
mass viewpoint."
It has been 5 or 6 years since the smashing of the "gang of four," but
these problems still took place in the two bus stations which had been
cited as Daqing-type enterprises. What was the cause of these problems?
And what did these problems show? I think we should find the root cause of
the problems: What is the purpose of our socialist bus transport? Is it
.for the people or merely for production and profits? How should we trans-
port enterprises handle the enterprise's relationship with shippers and
passengers? Who are the masters after all? Who should transport enter-
prises serve? What are the standards for measuring the quality of our bus
transport work? Who are the judges of our work? Should we look only at
how the eight great indices are fulfilled, or should we also look at
whether passengers and shippers are satisfied. with our work? What is of
particular importance is whether we should also build spiritual civiliza-
tion and do ideological and political work well while in terms of attention
we are paying attention to material civilization in tons and man in kilo-
meters. These are fundamental questions in our communications and transport
work. But some units and comrades often overlook these questions. They
even confuse the relationship of these questions. Take these two Daqing-
type enterprises for example. It was true that their achievements in ful-
filling the eight great indices were substantial and that they enjoyed a
resounding reputation after being cited as Daqing-type enterprises. But
their attitude toward and quality of attending passengers were very, very
bad. To make things worse, they beat up and abused some passengers. This
was the fundamental reason why they were severely criticized by their
passengers. Through the activities of the "five stresses and four beauties,"
and especially through this year's "all-people civility and courtesy month"
activities, the two bus stations have made great progress in their work.
This lesson is profound enough to learn from.
In the final analysis, socialist transport personnel must become vanguards
in propagating socialist spiritual civilization, and the bus transport
trade should take this as its own goal. But we must adopt a series of
measures to achieve this goal. At present, we must particularly set forth
specific requirements, because spiritual civilization is not at all empty
or abstract. On the contrary, it is concrete and real. In particular, it
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must be manifested through the concrete actions of man. Do not our passen-
gers say that our bus stations are dirty, in disorder, bad and full of
unhealthy trends? To build spiritual civilization, we must first solve
these four points. We must do a good job in public health, maintain good
order, raise the quality of service and improve the attitude in attending
to passengers. But the most fundamental thing is to solve the problem of
unhealthy trends. If a bus station or a bus is full of unhealthy trends,
it must be dirty, in disorder and bad. Once we have got rid of unhealthy
trends, the problems of being dirty, in disorder and bad will also be
solved.
Not long ago I went to the Zhuhai special economic zone in Guangdong
Province. I saw the rules and regulations of the staff and workers of a
car corps of the Shijingshan touring center. I believe their rules and
regulations are very good and quite specific. For instance, working
personnel are required to greet visitors with a smile. The driver must
open the door and say "please" when allowing passengers to board the bus
or car. Only after this may he board his bus or car and begin to drive.
They have a set of rules for rewards and punishment. Absence from work
without leave and taking care of personal matters during work hours are all
recorded. The working personnel do not have to argue about the amount of
money to be deducted from bonuses. Those who observe all of the rules and
regulations are entitled to their rewards. Therefore everyone is very
serious and energetic during work hours. I stayed there for 1 or 2 hours.
No one was grinning impudently or loafing. If you-go there, they will
greet you with a smile. They are refined and courteous and are ready to
answer any question. They have very few supervisors, but their work is in
perfect order, and the staff and workers are full of vigor. The Zhuhai
special economic zone in Guangdong Province is open to foreigners. It is
close to the capitalist world. It is our outpost in the true sense of the
word, and the working personnel there are our vanguards worthy of the name.
They can perform their duties very well under such circumstances. Why
cannot working personnel in other places do the same? So long as bus
transport units all over the country can learn from this method, and so
long as everyone is willing to work hard, rely on the party and the masses
(including transport workers and passengers) to enable bus drivers, bus
station personnel and ticket sellers.to become vanguards in propagating
socialist spiritual civilization, it is completely possible for our bus
transport corps and bus stations to become outposts in building socialist
spiritual civilization. Since the unfolding of the activities of the first
nationwide "all-people civility and courtesy month," many bus stations and
bus transport corps have been advancing in this orientation.. So long as
we can persevere, make the foregoing a regular and systematic practice and
constantly consolidate and develop it, I believe Comrade Hu Yaobang's
requirements on transport workers will certainly be realized.
Editor's note: Pan Qi is an old comrade. He was vice
minister in the Ministry of Communications. He has
taken every opportunity to investigate bus stations and
buses, and has made direct contact with passengers, bus
drivers, ticket sellers and bus station personnel. He is
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well acquainted with the opinions of the masses and
constantly studies and improves his work. Leading
cadres at all levels, especially middle-aged and young
cadres who have just been promoted to leadership posts,
are required to pay attention to and learn from his
work style of going deep into the grassroots level and
maintaining close ties with the masses. If leading
cadres at all levels can perform their duties in this
way, we will greatly reduce our bureaucratic work style
and subjectivism, and there will certainly be a great
improvement in our work.
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GRASP FIRMLY THE CENTRAL LINK--IDEOLOGICAL EDUCATION
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 34-36
[Article by Xin Cheng [2450 4453]]
[Text] Comrade Mao Zedong pointed out: "Ideological education is the key
link to be grasped in uniting the whole party for great political struggles.
Unless this is done, the party cannot accomplish any of its political
tasks." ("Selected Works of Mao Zedong," Vol 3, p 1043) We should firmly
grasp the central link of ideological education regardless of the time or
what kind of work we are doing. Our party has a fine tradition in this
respect. Our party itself is the product of the integration of Marxism-
Leninism and the workers' movement. In this sense, it is appropriate to
say that our party has built itself up by relying on ideological and
political work. Ideological and political work has given impetus to our
cause of revolution and construction so that it develops, grows and
advances.
Millions upon millions of the maases have as their cause revolution and
construction. Without the direct support and unswerving struggles on the
part of the broad masses of people, it is impossible to achieve our goal.
To encourage the broad masses of people to take part in the cause of revolu-
tion and construction in an active and orderly. way, we should strengthen
ideological and political work so that the masses will become people with
ideals, morals and culture and who observe discipline. We should know that
people's actions are governed by their ideology and that. ideals and belief
are their spiritual support. Their ideology and state of mind are connected
with the orientation of their actions and effects. The fundamental task of
our ideological and political work is to persist in using Marxism-Leninism-
Mao Zedong Thought to arm the cadres and the masses, raise their conscious-
ness and enhance their ability to understand the objective world. In so
doing, we will arouse their enthusiasm to reform the objective and subjective
world and to carry on the revolutionary spirit. They will enhance their
revolutionary vigor to ensure the accomplishment of the task of revolution
and construction.
In the past, Lin Biao and the "gang of four" had an ulterior motive in
preaching the theory of the "omnipotence of spirit," saying that spirit and
ideology might reverse the course of events and decide everything. This was
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truly ridiculous. After repudiating this idealist fallacy, the truth of
materialism shines again. However,_some comrades wrongly think that
ideological and political work is no longer important. Such an idea is
obviously wrong. The reasons why some of the theories of Lin Biao and the
"gang of four" were ridiculous were that they reversed the relations between
matter and ideology on the one hand and economics and politics on the other.
This ran counter to the objective law of the development of matter. We
uphold dialectical materialism and admit that matter decides ideology.
Furthermore, we affirm the active role of ideology. We should not neglect
ideological and political work because we have abandoned the idealistic
theory of the "omnipotence of spirit."
Under the present socialist conditions in our country, there are various
kinds of contradictions--the contradictions between the advanced and back-
ward units, between right and wrong and between leaders and the masses.
There are contradictions between the masses, state, collectives and indi-
viduals. In particular, there are the contradictions between the prole-
tarian ideologies and various nonproletarian ideologies such as capitalist
ideology, feudal ideology and so forth. Although the exploiting class has
been eliminated as a class, its ideological influence will not disappear
overnight. Furthermore, there are remnants of the exploiting class in our
country, the dregs of Lin Biao and the "gang of four," and counterrevolu-
tionaries. There is also the influence of and infiltration by Taiwan,
Penghu, Jinmen, Mazu, Hong Kong, Macao and international capitalism.
Therefore, class struggle within certain limits will exist for a long time.
Our party members and cadres are still facing the danger of degeneration.
At present, serious trends of bourgeois liberalization have occurred in
various fields of the social life in our country; this is particularly so
of the unlawful and criminal activities in the economic field. All these
are the manifestation of the class struggle-under new historical conditions.
In order to promote the great cause of. building our country into a socialist
and modernized power, we should correctly understand and solve these con-
tradictions and problems. To do this, we should never for a single moment
cut ourselves off from ideological and political work. In particular, under
the present conditions where the ideological influence of the exploiting
class at home has not disappeared and where international capitalism still
exists, the ideological field is not calm and tranquil. If we fail to
strengthen ideological and political work, decadent bourgeois ideology will
inevitably take advantage of this opportunity to intrude and corrupt our
ranks. Over the past 2 years or so, unlawful and criminal activities in the
economic field developed to a very severe extent and even some party members
and cadres were involved in criminal activities. This situation was, apart
from other reasons, attributed to the defects of our work. In other words,
while implementing an open-door policy toward foreign countries and enliven-
ing our domestic economy, we neglected the improvement of our management
system and measures and did not do our ideological and political work well.
Therefore, we should on no account neglect ideological and political work.
We should conscientiously grasp it and persist in doing so for a long time.
Some think that so long as we do a good job in the economy and improve the
people's material living standard, they will automatically excel in
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ideological work, and that there is therefore no need for us to grasp
ideological work. This is really an oversimplified way of treating the
relationship between economic development and ideological change.. Will
people's ideological consciousness be automatically raised when we have
effectively improved our economy and enhanced material living standards?
Admittedly, the development of production and the improvement of our mate-
rial and cultural life will have a great bearing on the people's ideology;
spiritual civilization cannot be separated from certain material condi-
tions. However, spiritual civilization is not a direct derivation or
appendage of material civilization. Instead it is a great ideological con-
struction project. In order to build socialist spiritual civilization, we
must carry out careful and painstaking work over a long time. We should
use ideological education to promote spiritual civilization and should make
use of the legal system, discipline and public opinion to maintain and con-
solidate it. While using positive measures and the role of advanced exam-
ples as guidance, we should criticize and struggle against passive, backward
and reactionary things. While advocating the new socialist ideas, morals
and habits, we should carry on and absorb fine historical traditions. It is
not to be supposed that if we engage only in the building of material
civilization, the tall buildings of spiritual civilization will automatically
tower in front of us. Marxism has told us that what directly determines
people's ideology is not productive forces but production relations, that is,
people's economic status (or class status in a class society). People's
ownership of the means of production, their positions and role in the
process of social production and what they get from the distribution of
social products determine their ideological viewpoints and feelings. Once
a kind of social ideology has been established, it is relatively independent
of its economic base. Although the old economic base has disappeared, the
old ideology will not vanish immediately. To eliminate its influence, we
should carry out a fierce struggle in the ideological field so that the new
ideology will take the place of the old one. Furthermore, no kind of
systematic doctrine or theory will spontaneously take.root in the people's
minds; the people can only acquire them through propaganda. This is par-
ticularly the case with Marxist-Leninist theories and communist ideology.
To enable the broad masses of people to master communist theories and
ideology, we should, under the leadership of the party, carry out extensive
and profound ideological education and a sustained struggle against the
ideological concepts of the exploiting class and private ownership mentality.
This objective cannot be attained through effective economic work alone.
For example, in the 1950's and early 1960's, people's mentality and the
general mood of the society were better than at present. However, the level
of economic development at that time was not as high as at present. It is
incorrect to say that with the development of material production, people's
socialist ideological consciousness will also rise. Any spontaneous theory
viewpoint is utterly groundless because it goes against the law of ideologi-
cal changes. Furthermore, without strengthening ideological and political
work and raising people's ideological.consciousness, it is impossible to
fully arouse their enthusiasm for socialism, promote the national economy
and enhance their living standard.
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There is another viewpoint related to the aforementioned one. It is that
some attribute certain unhealthy phenomenon and bad tendencies in the
society to the low level of the development of production and the poor con-
ditions of people's material life. Such a view is completely wrong. Do a
low level of production development and poor conditions of material life
inevitably usher in unhealthy trends or even unlawful and criminal acts?
If we accept this view as correct, it means that we hide the evil conse-
quences of the protracted sabotage of Lin Biao and the Jiang Qing counter-
revolutionary cliques and deny the struggle between corrosion by the capi-
talist ideology and corrosion-resistant socialist ideology, a struggle which
really exists. In other words, we admit that unhealthy trends and unlawful
and criminal acts are pardonable. Moreover, our production is constantly
developing and the people's living standard is continuously rising. It is
improper to say that the level of development of our production is low and
our'material living conditions are poor without making any analysis.
Actually, the reason that some people were influenced by unhealthy trends
or even committed crimes was not because they lacked food or clothing, but
because they were corroded by the capitalist decadent ideology and the
bourgeois way of life. It is impossible to clarify the problem or seek a
correct way of solving the problem by simply seeking the economic cause.
.Some comrades maintain that as long as we do things according to economic
law, we will promote economic construction well. To them, it is unneces-
sary to stress the importance of ideological education. This is also a
kind of muddled idea. To carry out economic construction, we should, of
course, do things according to economic law and make. use of necessary
economic means. There is no doubt about that. However, it is wrong to
merely regard economic work as a process of economic development. This is
because economic work is done by the people. It is the people who under-
stand and make use of economic law. Are people's ideological conditions
and mental attitudes not connected with their understanding and utilization
of the economic law? It is appropriate to say that if we deviate from
ideological education and fail to enhance people's level of understanding
of Marxism-Leninism-Mao Zedong Thought and raise their communist conscious-
ness, it is impossible for us to truly understand economic law and con-
sciously utilize it. We will inevitably be manipulated by the spontaneous
role of economic law. For instance, we should rely mainly on the guidance
of the state plan to develop our economy in the rural areas. At the same
time, we should make use of the role of law of value. However, if we give
up ideological and political work and fail to provide peasants with the
education of "paying equal attention" to the interests of the state, the
collectives and individuals, some of them might disregard the interests of
the state and the collectives. Thus the economy of the rural areas will go
astray. In-our economic work, we should stick to the principles of relying
mainly on the planned economy, making the law of the marketplace subsidiary
to these principles and coordinating all the activities of the nation as in
a chess game. To do this, we should oppose erroneous ideas such as selfish-
ness, seeking private gain at public expense, decentralism, departmental
selfishness and so forth. Otherwise we will follow an erroneous tendency.
To effectively implement the principle of distribution according to work
and overcome egalitarianism, it is necessary to give staff members and
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workers who have overfulfilled production quotas and scored marked achieve-
ments a certain amount of pay and bonuses. This will help arouse their
enthusiasm. However, if we give up ideological and political work and
regard the issuance of bonuses as the sole motive force for arousing the
masses' enthusiasm in production, things will go contrary to our wishes.
We will not only fail to arouse people's socialist enthusiasm, but also
encourage them to "take money as the end-all." As a result, they will go
astray. Some enterprises have learned profound lessons in this respect.
We should bear it firmly in mind. Of course, ideological and economic work
should be combined with economic work and people's material interests. We
are not allowed to indulge in empty talk. In other words, we should closely
integrate ideological and political work with reality and carry it out in a
thoroughgoing and painstaking way. We should convince people by reasoning,
not coercion. Otherwise, it will be difficult for us to achieve good
results.
Those who educate the people should be educated first. To strengthen
ideological and political work, leading cadres should, first of all, fully
understand the importance of the work. When we raise the subject of
strengthening ideological and political work, some people. think that we
intend to provide only the masses with ideological education.. Actually, we
should, first of all, solve the ideological problems of the leading cadres.
If leading cadres fail to straighten out their ideas, do not fully under-
stand the importance of ideological and political.work or are even influ-
enced by a number of erroneous and muddled views, they will not be able to
carry out ideological and political work effectively. Therefore, leading
comrades at all levels should strengthen their study of Marxism-Leninism-
Mao Zedong Thought and fully understand the interrelationships between
material civilization and spiritual civilization-on the one hand and poli-
tics and economics on the other. They should also clarify the inter-
relationships between politics and technology as well as economic work and
ideological work. They should truly and firmly grasp the central link of
ideological education and never for a moment relax their efforts in this
respect.
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TEACHERS SHOULD SET EXAMPLES IN BUILDING SOCIALIST SPIRITUAL CIVILIZATION
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 37-39
[Article by Yu He [6735 4421]]
[Text] Millions of people are concerned about the development of youths
and it is a matter of strategic significance to educate well the hundreds
of millions of youths across the country. It is the responsibility of the
whole society to educate young people, but the responsibility of primary
andsecondary school teachers is even more direct and concrete. The state
and parents of youths have entrusted the children to schools, hoping that
teachers will educate them well. The reason why we should pay attention to
the work of teachers and stress the importance of such work is that we have
placed our hopes in the future and in the next generation. There will be
hope for our cause only if we are able to educate the next generation well.
Lenin pointed out: "The most important course in any school is political
orientation. Who decides this orientation? It can only be decided by the
entire teaching staff." ("Collected Works of Lenin," Vol 15, p 438) Com-
rade Mao Zedong also said that for a school "the most important things are
selecting the principal and teachers and defining reaching principle."
("Selected Works of Mao Zedong," Vol 1, p 161) Following definition of
teaching principle, an important problem is the question of teachers, for
both ideological education and teaching work in schools are mainly carried
out through teachers. Whether teachers are able to carry out their work
well will directly influence the growth of the broad masses of primary and
secondary school pupils. There are more than 10 million primary and
secondary school teachers in our country. They make up a big revolutionary
army. These teachers have heavy responsibilities and are busily occupied
with their work. With arduous tasks,.they work very hard and have a par-
ticularly important responsibility of bringing up a new generation and of
building socialist spiritual civilization. Whether they are teaching
culture and scientific knowledge or nurturing the broad masses of primary
and secondary school pupils in ideology and morality, all such works are an
important aspect of the building of socialist spiritual civilization. The
youths that are being educated by primary and secondary school teachers will
become builders of socialist materialistic civilization and spiritual
civilization. Therefore, it is' true when we say that teachers are engineers
of the souls of mankind and active and direct builders of socialist spiritual
civilization.
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The "five stresses and four beauties" campaign that is being launched across
the country is an important part of the building of socialist spiritual
civilization. It is very important to launch such a campaign in primary and
secondary schools. As for the pupils, through the requirement of concrete
images and the implementation of students' regulations, pupils will be able
to differentiate between what is beautiful and what is ugly, between good
and evil, and between what are good, beneficial and civilized deeds that
should be actively undertaken and what are uncivilized, ugly and unhealthy
things that should be resolutely discarded. Consequently, they will be able
to constantly raise their ideological consciousness and morality, strengthen
their sense of organization and discipline and grow along a correct and
healthy road. This campaign has provided the teachers with an opportunity
to combine the building of socialist spiritual civilization with their daily
routines so that their educational work will have a stronger ideological
nature and more definite goal. In addition, teachers will be able to do a
good job in the campaign, lead. pupils to follow their examples and make all
schools have a good style of study and work only when they set examples. If
the tens of hundreds of our schools are able to do well in this regard, they
will constitute a tremendous motive force in improving social practice and
in establishing new habits.
The delegates to the national conference of the trade unions of the primary
and secondary schools across the country to exchange experiences in
ideological and political work called on teachers to set examples during
the campaign. This is a significant proposal and it has pointed out a
direction for teachers' activities. The "four beauties" first of all means
beautiful souls. The beautiful souls of teachers are mainly demonstrated
in their loyalty to the party's education cause and their love for their
work, their schools and their pupils. Pupils represent our future and are
the successors of our revolutionary cause. Therefore, the conditions of
these pupils' growth and ideology are important and directly related to the
future of our country, the fate of the nation and the success or failure of
our revolutionary cause.. Therefore, the teachers must demonstrate their
love for the party and the socialist motherland first of all by doing a
good job in their own work and in nurturing their pupils.
Love for pupils is an invaluable feeling as well as a foundation for doing a
good job in education. Our purpose is to educate pupils according to the
requirement of the party and the country so that the pupils may develop
their morality, knowledge and physical fitness and become laborers with
socialist consciousness and culture and talents, having political con-
sciousness and professional knowledge. This is the glorious and yet heavy
historical task of teachers. The educators of new China must not only pass
on knowledge but also be responsible for educating students in ideology and
morality so that they will not only possess rich knowledge but also have
higher ideological consciousness and beautiful morality and understand that
the purpose of gaining knowledge is to use it to serve the people and con-
tribute to their motherland and to mankind. If we pay attention only to
injecting knowledge and examination subjects into the minds of pupils but
pay no attention to making them wise, and if we do not guide them to form
high ideals and do not pay attention to helping them form an aesthetic
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outlook and to carrying out physical conditioning, we will run counter to
the goal of socialist education as well as to educational principles. Good
people's teachers must educate and instruct people, implement the party's
educational principle in an all-round way and be concerned with the growth
of all the pupils.
In order to educate pupils it is imperative to understand them and to be
acquainted with each of them so that with a definite objective in view we
will be able to teach them with skill and patience and help them grow. If
you do not understand them and do not know what they are thinking, then you
only speak your own words and they think their own problems. Thus you will
not be able to do a good job in education. Some outstanding teachers main-
tain close contact with the pupils and make friends with them. The pupils
regard such teachers as their intimate friends. They like to tell the
teachers what they have on their minds in order to seek guidance from them.
Teachers must work hard to make themselves respected and loved by the
pupils, not respected but distant. Teachers cannot disregard those pupils
who are doing poorly in their studies, nor can they despise them. On the
contrary, teachers must love them, must even show particular concern for
them and give them more help. In fact, pupils with more shortcomings need
more concern from their teachers.
Teachers must not only ardently love their pupils but must also be
accomplished and skilled in carrying out their work or they will not be
able to accomplish their tasks. Therefore, they must study hard and be
professionally competent and spare no efforts to improve teaching methods
so as to improve their teaching standard. Their study and profession must
include specialized knowledge on subjects taught and each teacher must
understand related knowledge about pedagogy, psychology and teaching methods,
and have some knowledge of Marxist-Leninist basic theories and the party's
important policies and principles. Only when teachers have grasped this
knowledge will they be able to teach with good results and according to the
requirements of the party and the people and to the young people's psychology
and physiology.
Primary and secondary school pupils are in the stage of rapid growth, highly
impressionable and incapable of distinguishing right from wrong. They have
little ability to control themselves and are vulnerable to outside influence.
They often understand things and differentiate right from wrong proceeding
from concrete images; therefore, the deeds and the attitudes of their
teachers have a particular influence on them. That is why we have particu-
larly stressed the importance of the role of teachers' examples and demanded
that the teachers always pay attention to their own moral cultivation, place
strict demands on themselves, train themselves to become politically con-
scious and professionally competent and set examples for pupils with regard
to cultural development, ideological standards and morality. Since teachers
demand that pupils form a high spiritual civilization, it is first of all
imperative for teachers to do so. Since teachers demand that pupils speak
beautiful words, the teachers themselves must not speak ugly and uncivilized
words. They must say beautiful things during or after class, in front of
pupils, in school, when not around pupils, outside school and at home.
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Setting an example for others means playing an exemplary role, being as good
as one's word, thinking and behaving in a certain way,'and teaching by
personal example as well as by verbal instruction. That is to say, teach-
ers must educate and influence the feelings and souls of the pupils through
their own deeds and with vivid and sound reasoning.
It is imperative for the party organizations and educational administrative
departments and teachers' organizations of education trade unions at various
levels to make concerted efforts to enable the broad masses of teachers to
meet the above-mentioned requirements and set examples. It is necessary now
to further implement the party's policy on intellectuals, unite the broad
masses of teachers around the party, fully mobilize their initiative and
creativity, further improve their political and professional level and work-
ing capability and further improve their conditions for work, study and life
as well as their position. Primary and secondary school teachers have been
an important army in the ranks of intellectuals; it is the biggest such army.
We cannot say that there are no problems in the question of how to use and
treat teachers. Even today, the leadership in some regions and units still
do not really understand the importance of education and the position of
the roles of intellectuals in this new period. They do not conscientiously
carry out the pertinent policies of the CCP Central. Committee issued since
the 3d Plenary Session of the CCP Central Committee. Particularly, they do
not show enough concern for young intellectuals. As a result, the capabil-
ities of many young people have not yet been fully displayed and their
difficulties in work, study and life have yet to be properly resolved. In
addition, since the implementation of the open-door policy, some people have
been influenced by bourgeois ideology while our ideological and political
work is very weak. Consequently, some problems have appeared in our work.
Therefore, it is imperative for party organizations at various levels to
conscientiously implement the party's policies concerning intellectuals and
eradicate the biased views about intellectuals that still exist within the
party and in society. It is necessary to treat intellectuals equally in
politics, use them daringly in their work and be concerned with their live-
lihood. It is imperative to make the broad masses of teachers realize that
they are masters of their country and schools so that they will be able to
fully display their initiative and pool their wisdom to run schools well.
Some schools have experimented in setting up the system of teachers' con-
gresses under the leadership of party committees with encouraging results.
We must also create broad public opinion in schools and society so as to
form a new social practice of pupils respecting teachers and the latter
loving the former.
The party committees at various levels must carry out vivid, practical and
effective ideological and political work and do a good job among the teach-
ers through education trade unions. Education trade unions recently pointed
out that it was necessary "to proceed from the features of education trade
unions and to give priority to doing a good job in ideological and political
work among teachers." This statement is in accord with reality and repre-
sents a glorious tradition of the education trade union. The broad masses
of intellectuals are part of the working class. But the working class is
not a golden symbol. It must set examples through its own deeds and
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constantly transform its subjective world outlook in the process of trans-
forming the objective world. In order to carry out ideological and political
work well, it is imperative first of all to arm teachers with Marxism-
Leninism-Mao Zedong Thought and the party's principles and policies, and to
educate them in the revolutionary tradition of the working class and his-
torical tasks. It is also necessary for teachers, through study and prac-
tice, through criticism and self-criticism and by overcoming shortcomings,
to get rid of various influences of bourgeois ideology, constantly raise
their communist ideological consciousness, persist in the four basic prin-
ciples, constantly improve their sense of responsibility toward the revolu-
tionary cause, step up their consciousness in implementing the party's
education principles, persist in and develop the morality and tradition of
the working class and make demands of themselves, influence pupils and
carry out their work with the ideology and morality of the working class.
Leading cadres at various levels must visit schools, contact the broad
masses of teachers to understand their situations with concern, patiently
and honestly help them to solve problems and make friends and talk with them.
When conditions permit, the teachers' actual problems in their work, life and
study must be resolved immediately. When they have problems in their
ideology and understanding, leading cadres should in no way take the stand
as educators and criticize them; on the contrary, they must proceed with
good intentions, patiently help them to solve problems, become friends of
the masses and combine the work of solving ideological problems with actual
problems. Primary and secondary school teachers have a certain cultural
level with various talents; politically, they protect the party and social-
ism, they work conscientiously with sense of responsibility. They have a
healthy, modest and reasonable ideological style. Their social economic
position is not high. Therefore, it is imperative for the leadership to
understand, trust, respect and have concern for them. They are busily
engaged in their work. Their lives are monotonous and therefore they must
be given an opportunity for contacts with society and nature. Teachers not
only have to improve themselves, but they also must educate pupils. There-
fore, they must be given some "capital" so that they can play still greater
roles.
Trade unions are communist universities and full use must be made of the
features of trade unions in carrying out ideological and political work.
It is necessary for self-education of the masses to be carried out from the
top down to grassroots levels so as to promote the basic positive educa-
tion method of displaying the advanced to lead the general, to carry out
educational activities with definite purpose, and to carry out various .
lively and imaginative educational activities and inspire and exert influ-
ence on people's character and thinking. With definite guiding ideology
and fully representative of mass organizations, the work of trade unions
will be very helpful.
In short, with policies implemented and a good job done in ideological work,
people will be convinced to improve their understanding and step up their
efforts. In this way, it will be possible to form a deep ideological foun-
dation for teachers to set examples while the work in educating our new
generation will be guaranteed.
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IT IS HELPFUL TO STUDY THE THEORY OF REPRODUCTION
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 40-42
[Article by Huang Zhigang [7806 1807 0474], second secretary of Tianjin
Municipal CCP Committee]
[Text] Not long ago, some cadres in Tianjin municipality studied the
Marxist theory of reproduction and the reaction was quite good. Taken as
a whole, the study has helped us deepen our understanding of the principle
of readjustment, restructuring, reorganizing and upgrading that has been
implemented by the CCP Central Committee since the 3d Plenary Session of
the 11th CCP Central Committee. The following derives from my understand-
ing gained in the study of the Marxist theory of reproduction, and I use my
understanding in concretely explaining the guiding role of this theory in
our economic construction.
It must be said that the principle of the proportionate development of
production of the two big categories is the core of the Marxist theory of
reproduction. Marx classified the complicated and intermingled economic
activities into two big categories--production of the means of production
and production of the means of consumption. He also pointed out the rela-
tionship of mutual adaptability and mutual balance between the two cate-
gories and within each of these categories. This is an objective need in
social mass production that is independent of people's will. Because of
the influence of "leftist" ideology for quite a long period in the past,
our planning to a certain degree departed from our country's objective need
for proportionate development of the national economy and departed from
practice. As a result, our national economy was out of balance which
caused serious waste of social productive forces. The purpose of the
readjustment put forth by the CCP Central Committee is aimed at enabling
our national economy to take the road that accords with proportionate
development in production of the two big categories and to achieve better
economic effects. Therefore the questions of what is to be readjusted,
how to readjust it and how to realize a good circulation in the national
economy can in no way be defined subjectively; they must be guided by the
Marxist theory of reproduction.
In expounding the conditions for the realization of social reproduction,
Marx pointed out that whether in simple reproduction or in expanded
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reproduction, the production of the first category must not only make up
for its own consumption of the means of production but must also meet the
needs of the second category in terms of means of production; the produc-
tion of the second category must not only make up for its own consumption
of the means of subsistence but must also meet the needs of the first
category in terms of means of subsistence. Social reproduction can be
carried out smoothly only when we are able to follow the proportionate
relationship between these two categories as pointed out by Marx and
realize the conditions for this relationship. Many of the problems that
cropped up in our economic life over the past many years, such as consumer
goods being in short supply for a long period and unbalanced phenomena such
as enormous stockpiling of heavy industrial products, particularly mechani-
cal and electrical products, were caused by the fact that we upset this
balance. The CCP Central Committee pointed out that in carrying out read-
justment work it is imperative to combine the work of developing light
industry and the textile industry with readjustment in the service orienta-
tion of heavy industry so that the production of the two big categories will
gradually become balanced. This is completely correct. Under the leader-
ship and with the support of the CCP Central Committee, Tianjin munici-
pality has, since 1979, emphasized the development of light industry and
the textile industry. On the one hand, the city has concentrated its
efforts in developing 18 trades, promoting the production of 136 varieties
of famous brand products and "fist" products and in carrying out 902 tech-
nical reform projects. On the other hand, it has organized heavy industry
to serve the technical reform and equipment renewal of the light and
textile industries and to provide urgently needed advanced technical equip-
ment and good quality raw materials with applicable specifications. Thanks
to these efforts, the value of. the city's gross industrial output increased
on an average by 8.8 percent annually over the past 3 years. Of this, the
output value of light industry increased by an average of 14.8 percent
annually while heavy industry increased by 2.2 percent. In the gross
industrial output value, the proportion of heavy industry has decreased and,
as a result, the industrial structure has tended. to be more rational. This
shows that the national economy will be able to develop smoothly only when
our planning accords with the law of mutual agreement in the production of
the two big categories.
According to the Marxist theory of reproduction, the various departments
within the production of the two big categories must also develop propor-
tionately. Take the first category for example. In addition to producing
the means of production for the production of the second category, the
first category must also meet its own needs and carry out exchanges among
its own various departments. Marx referred to this situation as "producing
a constantly repeated movement" between the constant capital within the
first category and constant capital. This situation is in fact what
today we often call self-service by heavy industry. Therefore it can be
seen that self-service by heavy industry is imperative and, under the pre-
requisite that it accords with the law of reproduction movement, can in no
way be neglected. We made mistakes in our work in the past because we
exaggerated self-service and neglected serving the second category and to
a certain degree our work was characterized by blindness in carrying out
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production just for the sake of production. In the process of readjustment,
it is necessary to stress the importance of heavy industry serving agri-
culture and light industry but at the same time we cannot neglect the impor-
tance of heavy industry serving itself. We must pay attention to this
question. In the final analysis, the rational self-service within heavy
industry itself is in the interest of serving agriculture and light indus-
try still better. Take the machine building industry for example: Unless
the structure of the products of the machine building industry is readjusted,
no new varieties of products are added and no improvement is made in the
quality of the products. It will thus not be possible for the various
departments of our national. economy to have an advanced technical founda-
tion and consequently the constant and stable development of our national
economy will be affected. Therefore it is imperative for us to understand
the Marxist principle of the interrelationship between the production of
the two big categories in an all-round and correct way.
In referring to the expansion of reproduction, Marx pointed out the
existence of the two forms of reproduction. One is extensive expansion of
reproduction, that is "building new factories outside the old factories."
Today we refer to this situation as adding new items and projects. Another
is intensive expansion of reproduction. This means relying on the existing
enterprises by tapping their potential and improving their "efficiency of
the means of production" so as to expand the productive force. It is of
great significance to have a clear understanding of the forms of these two
different forms of expansion of reproduction. In readjusting the national
economy, the party Central Committee stressed the importance of the stra-
tegic measures of intensively expanding reproduction as the main factor so
as to mend the longstanding lopsided point of view and method of expanding
the scale of production by mainly relying on adding new items and projects.
Marx expounded the concrete contents of intensive expansion of reproduc-
tion from many aspects such as progress in production, technology, rational
organization of productive forces, improvement in the skills of laborers
and making full use of the means of production. Such intensive development
in the expansion of reproduction is in fact developing production in depth
and breadth. Our investigations showed that over the past few years, some
trades and enterprises have.paid attention to intensively expanding repro-
duction. They have improved their management, carried out coordination
among specialized departments, undertaken technical reform and equipment
renewal, improved scientific technology and quality of products and added
more new varieties. They have made considerable achievements as they have
carried out only one or two of these items, but in a good way. The Tianjin
No 3 Steel Rolling Plant has carried out a major technical reform every
year since 1978 and basically it has been able to put the results of the
reform into production in the same year. This plant has been able to add
an annual 10 million yuan of profits for 3 years running. The Tianjin
Dyeing and Textile Industry Company and its subsidiaries carried out coor-
dination in production among specialized departments and as a result,
production output value in 1981 was 99 percent higher than 1978 and profits
increased by 1.2 times. The Tianjin Seamless Tubes Factory implemented an
accounting system in economic contacts between departments, workshops and
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teams and as a result, the profit rate of capital grew to 30 percent in
1981, or 1.2 times higher than 1978, while profits increased by 4.7 times.
If all our enterprises are able to proceed from their own specific condi-
tions and carry out feasible and comprehensive measures, they will no
doubt achieve better economic effects. When we stress the importance of
carrying out intensive expansion of reproduction as the main, we do not
mean putting aside extensive expansion of reproduction when it is possible,
and particularly not in energy and communications construction. It is
imperative to overcome this weak link in order to create conditions for
the better development of our national economy.
The principle of capital circulation and turnover constitutes an important
part of the Marxist theory of reproduction and therefore it is also of
realistic significance to study this principle.
It can be seen from the whole process of socialist social reproduction that
whether the movement of capital can be carried out smoothly mainly depends
on whether or not we can correctly handle the proportional relationship
between the two big categories and the relations between intensive expan-
sion of reproduction and extensive expansion of reproduction. But we must
understand that the movement of capital itself is relatively independent.
Therefore when there are problems in some links of the movement of capital,
such as a lack of coordination in supply, production and sale and the rela-
tions between industry and commerce and between industry and trading not
being in harmony, these problems will spoil the balance between the two big
categories. Consequently it is necessary for us to fully understand the
importance of capital circulation and turnover. Marx' explanation about
rational utilization of fixed capital and working capital is helpful to us
in solving such problems as the low utility rate of fixed assets and
excessive use of working capital; his views about how to sell commodities
in a timely way is useful in solving such problems as having limited
channels for commodity circulation, too many intermediary links and bad
circulation; his views on "voluntary" and "involuntary" commodity reserves
will help us solve such problems as irrational commodity reserves and
irrational use of capital, while his views about banking are helpful to us
in improving the roles of our banks in raising, collecting and using
finance and in speeding up capital turnover. Therefore, industrial, agri-
cultural, commercial, banking and tax revenue departments must proceed from
the point of speeding up the movement of social gross capital, closely
coordinate with each other and spare no efforts in carrying out their own
duties. They must in no way proceed from departmentalism and disregard the
whole situation; otherwise they will cause waste in the use of capital.
As mentioned above, I believe it makes a big difference for the broad masses
of cadres, particularly those working in the economic sector, whether or
not they study the Marxist theory of reproduction. In studying "Das
Kapital" in the past, we mostly concentrated our attention on exposing the
exploitation and decadence of capitalism and in understanding the objective
necessity of the dying out of capitalism. This method of study is of
course right. But from this book we must absorb more spiritual nourishment
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that is needed in our modernization program. Last year and in spring this
year, Tianjin city organized leading cadres above the regional, prefec-
tural and bureau level to study the Marxist theory of reproduction and the
results were quite good. Practice in this study proved that the Marxist
theory of reproduction is not beyond our reach, nor does it depart from
practice. On the contrary, this theory has an important guiding role in
our economic construction. We must sum up our experiences in this study
so that our cadres will be able to make further progress in their study.
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DIALECTICALLY PONDER OVER ECONOMIC PROBLEMS
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 43-45, 42
[Article by Zhang Jing [4545 4544]]
[Text] In the study of economic theory, we should ponder problems and sum
up experiences using the scientific ideological methodology of materialist
dialectics. In other words, we should grasp the dialectical relations of
the development of objective affairs in the sphere of economics and link
the general laws of materialist dialectics with actual practice in economic
wo r1f .
People can readily see that the economic sector really is a "boundless
universe." It comprises numerous divisions and trades. The network of
production and circulation is widely scattered while the division of work
and coordination are profoundly related to each other and form a criss-
cross network of immense dimensions. Each and. every economic "factor" not
only is mutually dependent, subjected to reciprocal control and part of the
organic whole but also is influenced by internal and external factors and
remains in a state of constant motion and change. Furthermore, all matters
in the economic sector have their inherent contradictions and are governed
by the relations of the unity of opposites. For example, the productive
force and production relations of the entire socioeconomic system, the
accumulation and consumption of the national income, the "bones" (produc-
tion construction) and "meat" (nonproduction construction) of capital
construction, expanded reproduction by intension and expanded reproduction
by extension, the central authorities and the local authorities of the
management system, big planning and small freedom, and so on, are all
examples of the unity of opposites. As for an individual economic divi-
sion, it also has many concrete instances of the unity of opposites such as,
for example, grain production and diversified operations in agriculture,
heavy industry and light industry in industry, centralized leadership and
diversified management in commerce, and so on. The parties of the contra-
diction in the unity of opposites repulse each other but depend on each
other, jointly form the composite body of the national economy and foster
and promote economic development. Lenin said: "Dialectics may simply be
verified as the theory of the unity of opposites." "In order to understand
the 'self-movement,' self-generated development and vitality in all the
goings-on in the world, we must understand these proceedings as the unity
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of opposites." ("Collected Works of Lenin," Vol 38, pp 240, 408) In
economic work, our guiding thought should be to correctly understand and
handle the various contradictions in the economic sector. The results of
our work will have to depend to a certain extent on whether or not we can
consciously employ materialist dialectics and correctly grasp and regulate
the dialectical relations of the contradictions between the two parties of
the unity of opposites.
Looking at past historical experience, we are deeply impressed by the
importance of dialectically pondering economic problems by pursuing the law
of the unity of opposites.
Early in the democratic revolutionary period, Comrade Mao Zedong had
already noted the importance of the use of materialist dialectics in guid-
ing economic work. He formulated such principles as promoting production,
protecting supplies, centralizing leadership, diversifying operations,
having regard for both the military and the civilian, considering both
public and private interests, placing equal emphasis on production and
economy, and so on. These were all measures to promote the. development of
production and economic prosperity in the base areas. At that time, the
matters of primary concern were the military and political struggles and
economic construction had yet to place on the daily agenda for delibera-
tion. Consequently, there was not yet a possibility of fully developing
economic dialectics. After the founding of the PRC and following the
large-scale development of economic construction, the use of material
dialectics to guide economic work became an-important lesson in guiding
thought. During the first 5-year plan period, we were comparatively more
cautious and.more realistic. We handled relations between productive force
and production, industry and agriculture, accumulation and consumption,
"bones" and "meat" and the like fairly well. We succeeded fairly well in
bringing about an overall balance. As a result, economic development
progressed at a rapid pace and the 5-year plan was triumphantly fulfilled
in less than 4 years. In Comrade Mao Zedong's 1956 report "On the 10 Big
Relationships," he made use of materialist dialectics to give a systematic
summary of the experiences in practice in socialist construction. Espe-
cially concerning the relations between industry and agriculture, heavy
industry and light industry, coastal industries and inland industries,
state production units and individuals, and central and local authorities,
the discussions were full of economic dialectics and were extremely signifi-
cant in guiding our economic work. When Comrade Chen Yun was in charge of
economic and industrial affairs, he strongly insisted on the principle of
being practical and realistic and was keen to make use of materialist
dialectics to analyze and solve problems. For example, many of his view-
points were full of economic dialectics, such as his views that in a
socialist economy state-operated enterprises and those operated by the
collectives should form the principal part and a restricted number of
individually operated enterprises should be supplementary; that in indus-
trial and agricultural production, planned production should be primary
and free production within the sphere of the national plan should be supple-
mentary; that in a socialist unified market, the state market should be
primary while the free market under the state's leadership and within a
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prescribed area should be supplementary; that economic construction and the
people's standard of living should both be given due attention and be bal-
anced; that great attention should be given to the study of the proportionate
relations within the national economy and to achieving an overall balance;
that in.capital construction both the general and the particular or pivotal
points should be ensured and attended to; that in. arranging construction
projects note should be taken of the existence of light items among the
heavy ones and of the existence of heavy items among the light ones, and so
forth. These correct viewpoints of Chen Yun further amplified and developed
the economic thought brought forth by Comrade.Mao Zedong in his treatise
"On the 10 Big Relationships" and played an important part in guiding
China's economic construction at that period. Although at the time certain
of his views were not given great attention or adopted, yet because they
reflected the dialectical relations of objective things and constituted
materialist dialectics that could be put to concrete use in economic work,
they were able to stand the trials of actual practice and examination.
Even today, after more than 20 years, they still possess great vitality.
It can thus be seen that in the final analysis a correct economic guideline
and a correct economic theory reflect and summarize the dialectical rela-
tions of objective things in the realm of economics and in fact are the
results of dialectically pondering economic problems.
If it is established that the triumph in our country's socialist economic
construction is indivisible from the due regard given to the use of mate-
rialist dialectics in our guiding thought, then it may be concluded that
the errors or setbacks suffered in our country's economic construction are
to the same extent closely related to our overlooking or even violating
materialist dialectics.
Our violation of materialist dialectics is mainly due to one-sidedness in
understanding. Just as Comrade Chen Yun pointed out: "Our errors are due
to the failure to do things according to objective facts. But those of us
who have committed errors were not without some support. Rather, they
mistook the part for the whole." ("How To Make Our Understanding More
Complete") Our errors in economic work were mostly of this nature. For
example, our socialist transformation may be said to have been as a whole
successful, but in the course of its progress some comrades were over-
impressed by the merits of centralized production and centralized operation
and overlooked the fact that centralized production and diversified produc-
tion and centralized operation and diversified operation were in reality
the unity of opposites and, although opposed to each other, could readily
assist each other. As a result, the phenomena of blindly chasing after the
merging of small plants into big plants and of converting diversified opera-
tions to centralized operations developed. This brought about such maladies
as certain products deteriorating in quality, a decrease in the variety of
products, poor services rendered, inability to respond to the consumption
needs of the populace, and so on. Again, for example, since the latter
part of the 1950's and over a fairly prolonged period, the one-sided over-
emphasis on the development of heavy industry (particularly the iron and
steel industry) and on achieving large accumulation and a high speed of
development has resulted in the entire national economy losing its balance
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and there is no way for it to develop smoothly. Hence, although generally
speaking one-sidedness cannot be said to be idealism, yet if one-sidedness
has a start and if one side of the contradiction develops to the point of
absolute predominance, this may possibly lead to idealism and to the oppo-
site side of materialist dialectics.
Engels long ago pointed out: "Contempt for dialectics will invariably
bring punishment." ("Selected Works of Marx and Engels," Vol 3, p 482)
For many years, we have suffered much in this regard and have had many
painful experiences and lessons. These experiences and lessons may be
summarized from different angles and different sides but there are two
points of a regular and basic nature. These should be especially noted
and thoroughly studied in the course of theoretical study.
One point is that in economic work we must hold firm to this materialist
dialectic basic concept of the 'unity of opposites. At no time and under no
conditions should we strongly emphasize one side, overlook or even refute
the other side or, in short, sacrifice one side in order to play up the
other side. To put it in Lenin's words, we should not hold one side "in
esteem to the point of the absolute." ("Collected Works of Lenin," Vol 38,
p 222)
When touching on economic relations and economic contradictions, Engels
said: "Since this is one type of relations, it means that the reciprocal
connections of the two sides are involved." ("Selected Works of Marx and
Engels," Vol 2, p 123) Since objectively the two sides are mutually
related and mutually dependent, losing one side renders the other side
untenable. Hence, we cannot artificially separate the two sides or one-
sidedly care for one end but forsake the other. Take for example this
problem of economic interests with which we customarily meet. They
habitually comprise the relations between two sides, namely, current inter-
ests and long-term interests, and interests of a sector and interests of
the whole. Only in simultaneously studying the two-sides and proceeding
further to examine the form of their mutual relations and their reciprocal
role, that is to say, studying their dialectical relations of the unity
of opposites, can we find the correct method of solving the problem. To
isolatedly and one-sidedly at any time play up one side and overlook the
other side can bring about losses. Certain contradictions may clearly be
seen to be principal or secondary and leading or subsidiary, as, for .
example, the frequently mentioned big collective and small freedom, big
centralization and small diversification, and planned economy as the
principal and regulation by market mechanism as supplementary. Because of
the great disparity in the status of the two parties of the contradiction
and objectively because of the actual conditions of one party commanding
great attention and the other being lightly regarded and one party being
primary and the other supplementary, it is very easy to lay great stress
on the one and to neglect the other. Under such conditions, it is all the
more important to grasp the unity of opposites between the two parties and
to grasp the dialectical relations of their opposing each other yet also
complementing each other, and guard against holding one party in "absolute
esteem."
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ARE CAPITAL CONSTRUCTION AND EXPANDED REPRODUCTION ONE AND THE SAME THING?
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 46-47
[Article by Li Mengbai [2621 1125 4101]]
[Text] The concept of capital construction was first mentioned in Stalin's
report "On the Economic Condition of the Soviet Union and the Party's
Policies." Generally, it is used to describe the process of the formation
of fixed assets. Newly established production departments must carry out
capital construction for the formation of new fixed assets. For example,
old China did not have an aviation industry, but since the founding of the
PRC we have established a new aviation industry. The production equipment
and facilities it possesses have been.formed via the capital construction
process. As for production departments that have already been established,
if they wish to continuously enlarge the scale of their fixed assets so as
to increase their production capacity, they will have to go through capital
construction to realize this objective. In order to make a rational dis-
tribution of productive force on a nationwide scale and also to carry out
construction of the cities and towns and communications, it is also neces-
sary to rationally assign various kinds of fixed assets to the various
.localities and the relevant departments. All this is brought about by
means of capital construction. Capital construction is a type of compre-
hensive economic activity which is spread through the various material
production departments and the nonmaterial production departments.
Although capital construction plays an important role in social expanded
reproduction, it is not one and.the same thing as social expanded repro-
duction.
First, capital construction constitutes an important means for the realiza-
tion of expanded reproduction but is not the only and sole means. While
capital construction is for the purpose of serving social expanded repro-
duction, the expansion of the scope of social production does not depend
entirely on capital construction for realization. In his analysis of the
road of expanded reproduction, Marx said: "The yearly expansion of produc-
tion comes from two sources: First, a continuous increase in the input
of capital into production; and second, a continuous improvement in the
utilization efficiency of capital." ("Selected Works of Marx and Engels,"
Vol 26, p 598) He further pointed out that expanded reproduction was in two
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forms: "In the event of an expansion of the production premises, then it is
expanded reproduction by extension; in the event of improvement in the effi-
ciency of the means of production, then it is expanded reproduction by
intension." ("Selected Works of Marx and Engels," Vol 24, p 192) Expanded
reproduction by extension has the special feature of the expansion of the
production premises and is shown in the building of a new plant outside the
original plant or expansion of the original plant. Hence, expanded repro-
duction by extension is realized by means of capital construction, while
expanded reproduction by intension is not necessarily accompanied by capital
construction. This is because of two possible conditions: In the event of
improving the quality of the machines, speeding up the operations, improving
the labor organization, effecting economy in raw materials, and so on, then
capital construction is not needed; in the event of improving the handicraft
or production technique, raising the degree of automation, expanding the
production line, and so on, then this will need an appropriate scale of
construction and the installation of new equipment. As for capital con-
struction, we should let it display its role in full both in expanded
reproduction by extension and in expanded reproduction by intension. Over
the past years it was customary that whenever production development was
contemplated, fervent efforts would be made to undertake capital construc-
tion of the extension type and the measures of the technical restructuring
of the enterprise units and improving the operation and management were
neglected. This could hardly achieve the best returns on investment. We
should firmly remember lessons of this kind.
Second, capital construction serves not only expanded reproduction but also
simple reproduction. For a long period of time, under the influence of the
one-sided belief that capital construction and expanded reproduction are
one and the same thing, arrangements for the simple reproduction items have
been frequently overlooked in capital. construction. This is not in con-
formity with Marx' theory on reproduction. In discussing the relations
between simple reproduction and expanded reproduction, Marx pointed out:
"Simple reproduction is part of the yearly reproduction on an expanded
scale and in fact constitutes its most important part." "The material
basis for expanded reproduction is derived from the internal production of
simple reproduction." (Ibid., pp 457, 560) All along simple reproduction
has been an important constituent part and the basis of expanded reproduc-
tion. Moreover, viewed from the actual conditions of social production
development, following the continuous increase in the base figure of pro-
duction, the proportion occupied by simple reproduction in the expanded
reproduction each year has grown continuously. Hence, despite the fact that
capital construction is intended mainly to serve expanded reproduction, it
must also serve simple reproduction. Take, for example, the case of coal
production. In a given period, certain old pits are bound to be abandoned.
Prior to these old pits being reported abandoned, new pits must be built in
time to replenish the gradually diminishing production capacity. Since the
building of new pits necessarily calls for a sizable amount of construction
and installation work and may indeed involve a rather lengthy construction
period, undoubtedly such new building work comes under the category of
capital construction. Yet it serves simple reproduction. A similar state
of affairs is found in production construction of the petroleum industry.
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Similarly, when natural disasters like earthquakes and floods ransack fixed
assets including plants, mines, bridges, houses and the relevant machinery
and equipment, all of which must be repaired, rebuilt or repurchased, the
necessary recovery and construction work also constitute capital construc-
tion and they first of all serve simple reproduction. Hence, in capital
construction, we should never overlook the construction projects necessary
for the. maintenance of simple reproduction.
Third, capital construction serves not only the development of production
but also the improvement of the people's standard of living. Concurrently
with handling such production measures as the building of plants, mines,
oilfields and electric power generating units, capital construction likewise
engages in the building of houses and the public utilities that go with them
as well as such nonproduction items as parks, theaters, hospitals and
libraries. All of the above serve the purposes of improving the material
and cultural life of the people. Marx' theory of reproduction tells us that
the social reproduction process encompasses not only production but also
consumption. It includes not only consumption for production but also for
the individual's. daily needs. Social reproduction cannot progress smoothly
if it is concerned with production only and not with consumption. Capital
construction is a category of economic activity which provides all produc-
tion departments and nonproduction departments with fixed assets and serves
both the development of production and improvement of the people's standard
of living. In the past, under the influence of "leftist" thought, fre-
quently production was heavily stressed while living was lightly regarded
and capital construction was taken as a means to serve the development of
production only. This was the cause of the imbalance between "bones" and
"meat" and the fact that for a prolonged period of time, particularly with
regard to the housing problem, the people's standard of living could not be
improved. Since the 3d Plenary Session of the 11th CCP Central Committee,
this situation has undergone a great change. With regard to capital con-
struction, we should sum up our past experiences, follow Marx' theory on
reproduction as the basis and in conjunction with the actual national con-
ditions of our country, comprehensively arrange for production construction
and for the people's life and in this way promote the all-round development
of the four modernizations.
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CAN ROBOTS PRODUCE SURPLUS VALUE?
Beijing RED FLAG in Chinese No 11, 1 Jun 82 pp 47-48
[Article by Tan Huazhe [6223 5478 6568]]
[Text] The robot is developed on the technical basis of the manipulator
and the operating machine after having absorbed certain of the latest
scientific and technological achievements. It is a new form of automatic
device fitted with various types of machines, precision instruments and
automatic computers and can do various jobs independently and automatically
like a human being. The robots now in use in industry can do only simple
and repetitive tasks. Certain countries are currently experimenting with
the making of a new generation of robots which not only possess the power of
mankind to see, feel, hear, write, compute and distinguish between tools and
charts, but also can walk around at the plant site. Although robots are
more complicated than ordinary machines, and,are of a much higher grade,
yet after all they are not human beings but mere machines. Hence, in the
hands of the capitalists, they belong to the category of fixed capital
like other means of production. In the production process all they can do
is to transfer the original value to new products. They cannot create new
value or increase value. The extensive use of various kinds of advanced
technology and robots will greatly raise social labor productivity, achieve
savings in man's labor input and reduce the required social labor time in the
production of commodities. In turn, this will lower the cost of the com-
modities.
People may ask: With the capitalists using robots and the rise in labor
productivity, there is a great reduction in employment. Under such condi-
tions, where does the large amount of surplus value reaped by the capital-
ists come from? We say that this still comes from the labor of the hireling
workers.
First, under the capitalist system the phenomenon of machines squeezing out
workers has long been in existence. The appearance of the robot further
intensifies this contradiction. In certain departments and enterprise
units, the increasing use of robots has caused a relative diminution in
the number of workers, sometimes very extensive. However, robots cannot
completely replace the work of human beings. On the one hand, robots are
created and invented by human beings. The study and making of robots, and
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continuously improving them to the stage, or near the stage,.of`'perfection
require in themselves the input of a large amount of human labor. For
example, in the study and research.work on the making of robots, the
Hitachi Electronics Company of Japan alone employed over 500 scientists and
engineers, not counting a large number of trained workers and management
personnel. On the other hand,'no matter how advanced the robots have
become, in the production process they require human labor for their con-
trol, management and maintenance. Even though some day it.will be possible
to concentrate workers, technicians and management personnel into a main
force to form a technological service center, this will represent a change
in organization and structure and will not alter the substance of things.
Some people connive at the idea of setting up a "factory without workers,"
but in reality human beings cannot be dispensed with. Separated from human
beings and separated from the technical service center, the factory will, be
paralyzed and the robots will become a pile of useless materials. Thus,
capitalists must continue to hire people and the surplus value reaped by,
the capitalists can only have its source in the labor of the hired laborers.
Second, under the conditions of socialized mass production, the definition
of production personnel comprises a large number of engineering and tech,-
nica . personnel, scientific and research workers directly related to pro-
duction, and workers of the production command and of the control and
management system. Their labor is all production labor. Marx put it very
clearly: "Following the development of the nature of coordination in the
labor process, the concept of production labor and of production workers!
will necessarily be expanded. Taking part in production labor now does not
necessitate doing the work itself. Rather, being a part of the composite
picture of workers and performing one relevant function only will be amply
sufficient." ("Collected Works of Marx and Engels," Vol 23, p 556) The
various categories of personnel mentioned above all constitute what Marx.
described as the expanded "production workers." Their labor input similarly
creates value and surplus value. Following a steady advance of science and
technology, the proportion of manual laborers in the ranks of laborers has
been steadily falling, while the proportion occupied by mental laborers has
been steadily increasing. Foreign statistical data show that under the con-
dition of a low degree of mechanization, the ratio between manual laborers
and mental laborers is 9 to 1, while under the condition of a medium degree
of mechanization the ratio is 6 to 4 and under the condition of full auto-
mation the ratio becomes 1 to 9. Therefore, despite the progress of automa-
tion and the use of robots and the decrease in the number of ordinary
workers in certain departments or enterprise units, the number of their
personnel engaged in complex labor work such as the scientists, engineers
and technicians is increased. As we all know, within the same given period
.of time, complex labor creates much more value than simple labor. In this
way, in spite of a sizable decrease in the personnel employed by the capi-
talists, they still manage to reap a large amount of surplus value.
Lastly, under the conditions of the use of robots still not being common-
place, those enterprises making use of robots can reap much larger profits
.than the ordinary enterprises. This is, because of the higher labor produc-
tivity, lower labor input, shorter time taken in production than time
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required by society, and lastly the sale of their commodities at the pre-
vailing market prices. A portion or a great portion of the surplus profits
of the enterprises is transferred from the surplus value created by workers
of other enterprises. Robots do not constitute the source of income but
the material conditions enabling these enterprises to gain larger income.
Thus, that the use of robots can reap large surplus value does not mean
that robots can create value and surplus value. Rather, both value and
surplus value are created by the labor of hired workers. The progress in
science and technology and the use of robots have by no means changed the
basic reasoning of Marx' theory on the value of labor and his theory on
surplus value.
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SEVERAL PRACTICES IN INTENSIVE FARMING
Beijing RED FLAG in Chinese No 11, 1 Jun 82 inside back cover
[Article by Wen Jianhu [2429 0256 5706]]
[Text] Intensive farming means putting a fairly large quantity of means of
production and labor force into a certain area of land with the application
of science and technology so as to achieve high and stable yields per unit
area.
China has, a huge population but little arable land. With its present xiela-
tively weak economic strength, it is rather difficult for our country to
put immense funds and huge amounts of energy into the total mechanization
of agriculture and into efforts to promote the extensive use of chemical
fertilizers and other farm chemicals in agriculture. However, we can take
advantage of our strong point of having available an abundance of labor
and carry forward the tradition of intensive and meticulous farming, use
more labor and apply more fertilizer to the fairly limited cultivable
land, and try hard to increase the yield per unit area so as to boost total
output and make production costs lower and lower.
Some communes and brigades and specialized households in Hunan Province
started developing intensive farming in the main according to the follow-
ing procedures:
1. Practicing intensive cultivation and multicropping with both early and
late maturing crops and raising the utilization rate of land. Apart from
continuous cropping and cultivation, in light of the principle of crop-
plant symbiosis, they adopted intercropping, interplanting and mixed sowing,
ingeniously mated long-stalked crops with short-stalked ones, vine crops
with root-tuber ones, grain crops with leguminous ones, crops which demand
light with those that grow in the shade and early-maturing crops with late-
maturing ones and turned plane planting to three-dimensional planting. In
addition, they paid attention to rotation of paddy and nonirrigated-
farmland crops and of crops and green manure so that the more the land was
farmed, the richer its soil would become. In recent years, the Pitai pro-
duction team of You County, the Xiadafang production team of Liling County
and the Shengli.production team of Liuyang County adopted these methods
with the result that the per mu yield of paddy topped 2,000 jin and the per
mu yield of paddy in specific years reached 2,300 to 2,400 jin.
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2. Adopting intensive rearing and fully utilizing pens and barns and water
surfaces. In recent years, some localities have built double-deck pig
houses and multideck batteries and rabbit cages and put space to full use.
For instance, Huang Jianbai, a commune member of Shahe production brigade
of Jinhuahu commune in Yiyang municipality, raised 56 pigs in 5.2 square
meters of pigsties in 1981. With .close breeding, there was little room for
pigs to move about, thus reducing their consumption of calories. A pig
would eat only 1 jin of concentrated feed and 3 jin of coarse fodder per
day but would produce 1 to 1.2 jin of pork. In the whole year, the whole
family only spent 0.8 of a labor force [as published] to raise pigs and
sold a total of 4,327 jin of pork to the state. Zhuzhou fish farm is
another example. In the last few years, it has imported advanced technology
and bred fish in net cages on a trial basis. The total output of fish came
to 40,000 or 50,000 jin per mu, which was equal to about 100 mu of water
surface for conventional fish breeding. There are still some localities
which breed fish and soft-shelled turtles or fish and pearls in a mixed
way. This method has brought them high per unit area yield, high output
value and big results. The average income per mu has been from 5,000 to
6,000 yuan.
3. Developing a diversified economy., ensuring overall development and
tapping the potential of natural and labor resources. Xihu commune of
Hengyang municipality practiced a three-in-one operation combining vege-
table growing, pig raising and fish breeding. Pigs were fed with vegetable
roots and leaves; ponds were fertilized with pig dung; and vegetables were
grown with pond silt. As a result, a benign cycle of more vegetables, more
pigs and more fish has gradually taken shape. Over the past few years,
some communes and their subdivisions and specialized households have first
used green manure as fodder to feed pigs, gone on to make methane with pig
dung and weed, and then applied methane fertilizer to the farmland rather
than directly applying green manure, thus obtaining fairly satisfactory
economic results. Xie Wankun of the Zhongzhou production team of Jiashui
production brigade of Guankou commune in Liuyang County fed chickens with
concentrated feed, fed pigs with the fermented feed made of chicken dung
and grit, further used pig dung to raise earthworms and then fed chickens
with earthworms. In 1981, he and his wife used 5 rooms in their house to
raise 180 setters and 2,200 broilers and sold 12,531 fresh eggs and 1,500
broilers to the state. They earned an annual income of 8,663 yuan or a net
income of 2,250 yuan after deducting expenses.
4. Building small-sized agricultural engineering facilities to gradually
convert some agricultural production links into factories [gongchanghua
1562 1681 0553]. In recent years, a few communes and brigades, farms and
centers and specialized households, which have conditions have begun to build
small hothouses, plastic sheds, chicken-raising factories and fish-breeding
factories and so on, and simulated the natural conditions to create suitable
conditions so that agricultural production can be free from the restrictions
of seasons and regions. In its small hothouses and plastic sheds, the
Dongtundu commune in Changsha adopted the method of multicrop interplanting
and high-density cultivation to grow vegetables, thus prolonging the growth
period on the one'hand and putting space to full use on the other. At least
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20 jin of mushrooms were gathered every quarter on every square meter. The
per mu income from vegetables, of which most were high-yield varieties,
was more than 2,000 yuan.
.5. Integrating traditional skills with modern science and manual labor with
mecha ized operations. For instance, in paddy production, some localities
cross long-stalked varieties with short-stalked ones, practiced rational
close planting, coupled scientific application of fertilizer with meticulous
management and timely prevention and control of plant diseases and elimina-
tion of pests, thus achieving stable and high yields. In fish farming,
some localities bred large species of fingerlings, rationally applied
fertilizer and threw in bait, did'a good job in the prevention and cure of
fish diseases, captured and seeded the fries in rotation in-good time and
installed pressurized-oxygen machines to increase the supply of oxygen and
boost the fish yield per unit of water surface area by a big margin, and
so on.
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