Commentary by the Central Committee on the Report from the North China Bureau and the Chahar Provincial Party Committee Concerning the Adjustment of Urban–Rural Relations (October 20, 1950) To all Central Bureaus and Sub-bureaus, with forwarding to the party committees of all provinces, municipalities, and autonomous regions under their jurisdiction: The document submitted by the North China Bureau and the Chahar Provincial Party Committee [1] is correct. It should be implemented throughout the country; please take note and see to it. Printed on October 20 by the Central Committee, based on Mao Zedong’s manuscript.  Notes [1] Refers to the commentary written by the North China Bureau of the CPC Central Committee on October 16, 1950, when forwarding the Chahar Provincial Party Committee’s report on adjusting urban–rural relations, together with that report itself. The North China Bureau holds that the Chahar Provincial Party Committee has continued to earnestly implement the Central Committee’s various regulations for readjusting industry and commerce, organized exchanges of materials, and adjusted urban–rural relations. Its proposal to make the development of urban–rural trade the central task in continuing the readjustment of industry and commerce is entirely correct. Vigorously expanding trade between urban and rural areas as well as among different regions, and promoting the sale of agricultural and industrial products, is at present one of the most important issues for developing industry and agriculture in the North China region. Therefore, all localities in North China must seize the peak season for material exchanges during autumn and winter to launch large-scale activities for the exchange of goods between urban and rural areas and between different regions. Party committees at all levels should strengthen their leadership over trade work, place the organization of material exchanges high on the agenda, and educate cadres to attach great importance to business and to learn how to conduct it.

The report of the Chahar Provincial Party Committee states that, in order to adjust urban–rural relations, they have established urban–rural economic committees in which both regional and municipal authorities participate, with the specific purpose of studying and resolving problems related to urban–rural material exchanges. To further promote these exchanges and ensure the continued improvement of industry and commerce, the following measures have also been taken: First, strictly control prices so that agricultural and industrial products maintain an appropriate price ratio; second, actively encourage private merchants to go to the countryside to engage in the marketing of farm and sideline products; third, invigorate the money market by permitting private individuals to operate money-changing businesses in accordance with the law, thereby further implementing the policy of freedom of lending; fourth, in industry, follow the principle of production based on sales, formulate plans through production–sales conferences, and organize production accordingly; and fifth, in commerce, continue to adhere to the policy of small profits and rapid turnover, with both public and private enterprises as well as cooperative organizations being required to actively improve their operations.