ON PROMOTING GRAIN COOPERATIVES

Announcement No 21 of the Central People's Committee

4 July 1933

[Text] The central soviet areas were originally large rice producing areas, but there is the situation of partial summer famine this year. Some of the worker-peasant masses do not have enough rice and they suffer great difficulties. This deserves our serious attention. The reason is because the imperialist Kuomintang is reactionary regime, in its desperate struggle, resorts not only to all political and military measures, but also the policy of economic blockade. As a result, the supply of industrial products is reduced and prices are high. To obtain the necessary industrial articles, the masses are forced to sell their new grain at a very cheap price. Thus, the unscrupulous merchants and rich peasants take the opportunity to manipulate the market and suppress the price of new grain to an alarming extent. They buy large volumes of grain at the cheapest price, either hoarding it for future profit or surreptitiously shipping it out; and the masses do not have enough rice to tide them over between spring planting and fall harvesting and have to buy it at a high price. The unscrupulous merchants and rich peasants again make use of the opportunity to manipulate and raise the price. In some areas, grain is not available even at a high price. This is the main reason for the summer famine this year. Other factors such as the natural disaster last year resulting in a bad harvest, the plunder and destruction of the White Army and peasant bandits in outlying areas, the lack of attention on planned storage on the part of the government, and permitting the export of grains without restriction have all helped create the grain shortage this year. To remedy the situation, the government has formed many measures, such as establishing grain balancing bureaus and trade bureaus in the various areas and preparing to store large volumes of grain for the emergency need of the masses. Nevertheless, the main method to solve the grain supply problems of the worker-peasant masses is still the grain cooperative. The toiling worker-peasant masses will solicit capital among themselves. The shares may be paid for in cash or grain (converted into cash). After the fall harvest when the masses need money, they may sell their grain to the cooperative at a price higher than the market. After purchasing the grain, the cooperative may store a small part

for the emergency needs of its members next year between spring planting and fall harvesting and ship the greater part to areas where the price is high or for export. Thus continuous purchasing and selling will not only expand the capital of the cooperative, but also enable the members to receive much surplus. By this means, we can stabilize the market, prevent extremes in grain prices throughout the year in the soviet areas, safeguard the peasants from difficulties of grain shortage, avoid the cruel exploitation of the unscrupulous merchants and rich peasants, and attain maximum improvement of the life of the workers and peasants. The toiling worker-peasant masses must immediately mobilize and urge one another to join the grain cooperative. The many revolutionary mass organizations must devote their maximum effort to help perform this work. The responsible comrades of the government of all levels must make the most extensive and intensive propaganda of the significance and effect of the grain cooperative, lead the masses, help the masses, and form at least one grain cooperative in every hsiang. We must begin with registration and recording and elect the responsible personnel according to the grain cooperative bylaw issued by the Central Government while building granaries and performing all preparatory work before fall harvest, so that the work can be immediately started when the new grain comes to the market. This is an important task to assure the grain supply of the masses, consolidate the soviet political power, and enable the revolutionary war to develop rapidly and successfully; therefore, it must not be overlooked in the slightest. It is so announced.

Mao Tse-tung, Chairman
Hsiang Ying, Vice Chairman
Chang Kuo-tao, Vice Chairman

4 July 1933

* "RED CHINA," No 94, 14 July 1933