Further points: (1) Additional appropriations that are unavoidable should be allowed, since precise forecasting is impossible beforehand. For example, the funding required for the Liberation Daily could not have been predicted prior to the decision to publish it. Therefore, you should increase the general contingency fund within the budget, from which disbursements can then be made as needed—only for truly unavoidable expenses. (2) There is no need to rigidly limit border currency issuance to just ten million; planning for fifteen million would provide greater flexibility. (3) The budget calculations should incorporate elements of self-reliance. For instance, Kang Sheng’s department [3] has a monthly requirement of 57,000 yuan, yet only 12,000 yuan is allocated; the remaining 45,000 yuan must be sourced independently. This self-funded portion should also be included in the budget estimates. Generally speaking, public expenditure accounts for roughly one-third, while self-funding makes up the other two-thirds. Omitting such items from the budget is unrealistic. Consequently, budgetary planning must be closely aligned with the actual conditions prevailing across the Party, government, and military, requiring a thorough understanding of their respective circumstances before any calculations can be made—especially concerning the military. (4) The theory positing a direct proportional relationship between commodity circulation and monetary supply should likewise not be held too rigidly. Instead, account should be taken of numerous new factors, which still require further study. Overemphasizing this theory could prove untenable in the future and damage our credibility.

The above points are offered for your consideration based on my reflections.

Mao Zedong, June 15th Printed from the manuscript.

Notes [1] Lin Boqu served as Chairman of the Shaanxi–Gansu–Ningxia Border Region Government at the time. [2] Old Man Xie refers to Xie Juezai, who at that time was Deputy Secretary of the Northwest Bureau of the CPC Central Committee, Secretary of the Party Group of the Shaanxi–Gansu–Ningxia Border Region Government, and Secretary-General of the same government. [3] This refers to the Social Affairs Department of the CPC Central Committee, then headed by Kang Sheng.