Annotations to the Directive on Implementing the Spirit of the Handicraft Representatives’ Conference
(March 24 and April 4, 1953)
Comrade Zihui:
The document from Hubei is very good. The ten agreements mentioned on page seven—if your office has a copy, please let me have a look. Could you draft a telegram on behalf of the Central Committee forwarding the Hubei document to all localities, instructing each province to also convene representatives’ conferences on handicrafts? What do you think?
Comrade Deng Zihui:
Mao Zedong
March 24
It seems that the Hubei handicrafts agreement could be reprinted in the People’s Daily; please make arrangements accordingly.
Mao Zedong
April 4

[I]
Zihui refers to Deng Zihui, who at that time served as Minister of the CPC Central Committee’s Department of Rural Work and Deputy Director of the State Council’s Finance and Economic Commission.
[2]
This refers to an instruction issued by the Hubei Provincial Committee of the CPC on March 2, 1953, to its subordinate organizations regarding the implementation of the spirit of the province-wide handicrafts representatives’ conference. The instruction stated that while handicraft industries in Hubei had experienced significant growth since liberation, certain problems still persisted. The most pressing issue was treating small producers as capitalists and regarding internal labor relations—such as employer-employee dynamics and master-apprentice ties—as labor-capital relations, thereby creating tension and hindering production. Furthermore, indiscriminate coercion into joint operations and cooperatives, coupled with inappropriate measures in handling public-private relationships, had led some handicraftsmen to hesitate to boldly hire workers, increase capital, or expand production. These factors had exacerbated the shortage of handicraft goods. To address these issues, it was decided:
(1) To categorize and rank handicraft activities in each town and city, formulating specific policies: determining which sectors could be appropriately developed, which should be maintained at their current level, and which needed to be converted to other trades.
(2) To clearly delineate class boundaries within the handicraft sector, adopting a lenient rather than strict approach. Those who employed auxiliary workers and apprentices, engaging in some degree of exploitation but whose primary income derived from their own labor, should be classified as small producers. Even enterprises employing several workers, where the owner actively participated in production and used rented premises and tools, with exploitation constituting only a minor component, should not be regarded as capitalist enterprises. The overarching principle for managing labor, employment, and master-apprentice relations was to prioritize production efficiency and unity.
(3) Regarding wages, working hours, and welfare benefits for workers and apprentices, the ten agreements adopted at the representatives’ conference were to be followed. Handicraft industries should not generally adopt the wage, hour, and labor protection systems of large factories. Instead, traditional practices and customs in each trade that fundamentally met production requirements and benefited both employers and employees could, in principle, be retained.
(4) At present, handicraft industries should be encouraged to produce and market their own goods, improve quality, and open up sales channels. Contract manufacturing should serve only as a supplementary measure for sectors facing difficulties in finding outlets.
(5) Publicity efforts should highlight the future prospects of handicrafts, dispelling the notion held by some that national industrialization would inevitably lead to the demise of this sector.
(6) Meetings involving cadres from towns and relevant work units, organized at the municipal, prefectural, or county level, were to study the documents from the handicrafts representatives’ conference, unify thinking, and develop concrete plans for implementation in a focused and step-by-step manner. Party committees in each town were to regard this task as one of the central priorities for the first half of the year.
[3]
These refer to several agreements concerning master-apprentice, employment, and labor-management relations, adopted at the Hubei Province Handicrafts Representatives’ Conference held in February 1953, and published in the People’s Daily on April 23, 1953. The ten agreements are as follows:
Agreement One: The primary duty of an apprentice is to master a skill; therefore, they must maintain a proper work attitude, observe labor discipline, and follow the master craftsman’s assignments and guidance during production. In addition to productive tasks, apprentices should also undertake miscellaneous chores related to production to assist the master in increasing output. However, masters are prohibited from physically punishing or mistreating apprentices, forcing them to perform duties unrelated to production, or interfering with their political and recreational activities. Masters are urged to abandon conservative attitudes, impart skills effectively, quickly, and comprehensively, fostering mutual respect between teachers and students and encouraging both parties to take pride in teaching and learning, respectively.
Agreement Two: Employers are free to recruit new apprentices without restriction; however, they must notify the trade union and register the recruitment with the local labor authorities. As for the treatment of newly recruited apprentices (excluding food), a monthly allowance equivalent to ten to fifteen percent of the prevailing daily wage is typically provided during the first year. In certain industries where conditions differ, the amount may be higher or lower, to be determined through mutual consultation. Subsequently, during the second and third years of apprenticeship, the allowance will be gradually increased based on the apprentice’s technical proficiency and production progress, with other benefits accorded according to customary practices.
Agreement Three: Existing apprentices are primarily tasked with mastering their craft under the guidance of their masters. Both parties shall enter into a contract stipulating that upon completion of the apprenticeship period, the apprentice will have acquired a certain level of skill. If, for any reason, an apprentice has not yet attained the requisite skills by the end of the prescribed apprenticeship term, they may continue assisting the master and further honing their abilities, with wages to be agreed upon by both sides.
Agreement Four: Medical expenses incurred by apprentices due to work-related illnesses, confirmed by a doctor’s examination, shall be borne by the master craftsman for minor ailments, mild conditions, and short-term illnesses. For serious diseases, severe conditions, or prolonged illnesses, if the master finds it difficult to cover all costs, the worker may apply for partial assistance from the trade union’s hardship relief fund, subject to discretionary allocation.
Agreement Five: The traditional practice of completing an apprenticeship after three years may be retained, but efforts should be made to enable apprentices to acquire their skills earlier whenever possible. Upon successful completion of the apprenticeship, if the employer requires additional staff due to business expansion, the two parties may voluntarily agree to continue the employment relationship, with wages to be negotiated separately. Should no further employment be needed, the master craftsman, guided by principles of solidarity and mutual assistance, shall help the apprentice find alternative employment in accordance with established customs.
Agreement Six: Internal employment relationships among workers should be managed in a spirit of benefiting production, promoting solidarity, and resolving disputes through consultation. Medical expenses shall be settled according to industry-specific contracts; where no such contracts exist, customary practices shall prevail. Other matters shall be handled in accordance with trade union laws, with both parties seeking mutually acceptable solutions in cases of practical difficulty.
Agreement Seven: Any disputes arising in labor-management relations shall be resolved through negotiation based on the principles of promoting production and safeguarding the interests of both labor and management. Where necessary, mediation or arbitration by the labor authorities, or even judicial adjudication, may be employed.
Agreement Eight: Temporary workers may be dismissed upon expiration of their contract without being treated as laid-off employees.
Agreement Nine: Working hours in semi-mechanized workshops and manual craft studios shall generally not exceed ten hours per day; for smaller shops and artisanal workshops, daily working hours should typically not exceed twelve hours.
Agreement Ten: Including both statutory and traditional holidays, annual rest days are tentatively set at forty-five to seventy days per year. Localities and individual industries may, based on specific circumstances, negotiate and determine the exact number of rest days (fixed holidays such as three days for Spring Festival, one day for New Year’s Day, two days for National Day, and one day for May Day, with full pay; other holidays shall follow customary practices). Additionally, grassroots trade union officials shall not devote more than two working days per month to union activities, and general worker participation in such activities must not interfere with production time.
These ten agreements shall come into effect only after review, approval, and official registration by the government.
[4]
Following Mao Zedong’s instructions, Deng Zihui drafted a telegram on behalf of the CPC Central Committee concerning handicrafts issues. Mao subsequently revised the draft twice and added the title “Directive of the CPC Central Committee on the Importance of Attaching Great Significance to Handicrafts.” On March 31, 1953, during his first review of the draft, Mao altered the original sentence “Handicrafts occupy a major share in the national economy, constituting the second largest economic component after agriculture and being an indispensable form of economic activity today” to read “Handicrafts occupy a major share in the national economy and have been an indispensable form of economic activity for a very long period”; he also appended the parenthetical remark “This state of affairs will persist for several decades” after the phrase “before the era of agricultural reliance on handicraft tools comes to an end”; and added, following “Currently, sixty to seventy percent of farmers’ means of production (such as farm implements and fertilizers) and their means of subsistence (including cloth, towels, shoes and socks, tobacco, etc.)…” the statement “In some cases, nearly eighty percent of these supplies depend on urban and rural handicraft products,” then further noted in parentheses, “That is to say, the materials currently supplied to rural areas by modern industry account for only about forty, thirty, or twenty percent of rural needs.”
On April 2, Mao reviewed the draft again and, after the original text’s third point—that “the unclear demarcation and improper handling of the three distinct types of relationships in handicrafts—labor-management, employment, and master-apprentice—and the imposition of forceful directives regarding joint ventures and cooperatives have, to varying degrees, undermined handicraftsmen’s morale, making them reluctant to boldly hire workers or apprentices, increase capital, or expand production—all of these issues require careful attention and systematic resolution—he added, “On the other hand, there still exist instances in some handicraft enterprises where workers and apprentices are subjected to poor treatment, which likewise warrants appropriate remediation.”