Zhou[1] read it and return it to Comrade Bo Yibo.[2]

It seems that it would still be appropriate to issue a directive summarizing the past situation and pointing out the direction. That is, include the various causes indicated in this letter[3] and the three principles for resolving township finances, as well as the several characteristics described in the explanatory notes on the first page of the statistical table. It need not be too long, and that will suffice.

Mao Zedong
December 19

[1] Zhou refers to Zhou Enlai.
[2] Bo Yibo was then Deputy Director of the Financial and Economic Commission of the Government Administration Council and concurrently Minister of Finance.
[3] This refers to Bo Yibo’s letter to Mao Zedong dated December 18, 1952, concerning the problem of numerous and varied levies in townships (villages) and towns. The letter stated that township (village) and town levies fell into six major categories with a total of 336 types. The causes were analyzed as follows: (1) Township governments had not been reformed, and higher-level governments did not exercise tight control, resulting in very serious levies. (2) Various departments under the central government and the greater administrative regions each arranged their own work, expanded their organizations, and increased their undertakings, but did not specify where the funds would come from. (3) Some central government departments, in order to carry out their “professional work,” increased the burden on the people. (4) In some cases, the financial system lacked clear regulations—what should have been prohibited was not prohibited, and what should have been covered as expenditures was not reimbursed, leaving levies as the only option. (5) Some levies, such as those for group meals, ceremonies, and meetings, were mostly a case of subordinates following the example of their superiors, influenced by extravagance at higher levels. (6) Some levies were due to the excessive enthusiasm of local cadres, who prematurely undertook too many tasks beyond their capacity. All these numerous and varied levies had seen some improvement following the Three-Antis Campaign and six months of efforts to straighten out village finances.