Notes by the Ministry of Finance on Its Request for Instructions Regarding the National Agricultural Tax Law Conference and Revisions to the Draft Central Directive [1] (April 16 and 21, 1953) I. To Premier Zhou and Comrade Deng Zihui [2]: This document [3] should be submitted to the Central Rural Work Department for review.
Should there be any dissenting views, Comrade Rong Zihe [4] should be invited to the Central Rural Work Department for a meeting to reach consensus.
Following this, a directive from the Central Committee to the Ministry of Finance should be drafted and circulated among several central leaders for their review before being issued within a few days, as the Ministry’s conference is scheduled to begin on April 20.
The problems existing in the agricultural tax system are very serious.
According to a report from Hubei Province, one-tenth of the population experienced food shortages during the spring famine.
It is estimated that approximately 40 million members of the agricultural population nationwide will face famine conditions each spring, which constitutes an extremely grave issue recurring year after year.
It is imperative to begin earnestly addressing this problem starting with this year’s grain requisition.
Whether to increase grain requisition by 1.6 billion jin and issue 4 billion jin of government bonds this year, compared with last year, also warrants further consideration.
Mao Zedong, April 16, printed from the manuscript.

II. (1) In 1952, actual public grain collection totaled 34.8 billion jin.
However, in certain areas such as Henan and North Jiangsu, excessively high land assessment and yield determination led to an overly heavy burden on farmers.
Last winter and this spring, cold waves struck regions between the Yangtze and Yellow Rivers, causing significant damage to sweet potatoes and spring crops in some localities.
At present, it remains difficult to ascertain the nation’s rainfall pattern this year.
There is a possibility of drought occurring in some areas.
Therefore, whether the grain requisition plan outlined in this year’s state budget can be fulfilled, and whether bond issuance should proceed, both require careful deliberation.
Nevertheless, it would be premature at this stage to announce that agricultural taxes will not be increased and no bonds will be issued, thereby altering the state budget plan.
A decision should be made after observing developments over the next few months.
You may, based on local conditions, appropriately arrange summer grain collection in order to ensure that farmers are not unduly burdened.
For genuinely impoverished households, tax reductions or exemptions should be implemented.
III. (6) The issue of social relief measures in grain requisition is of paramount importance.
Approximately ten percent of farming households nationwide suffer from spring and summer famines, lacking sufficient food supplies and even running out of cooking fuel.
It is essential to seriously reduce or exempt agricultural taxes.
It is hoped that concrete and feasible methods will be formulated at this agricultural tax law conference, with particular attention paid to providing special assistance to poor, remote mountainous areas.
Implementing tax reductions or exemptions for roughly ten percent of farming households represents an extremely serious problem within the overall agricultural tax policy; it has been inadequately addressed over the past several years, but must be properly resolved this year.
Printed according to Mao Zedong’s revised version.

--- Notes

Notes [1] This section (I) consists of Mao Zedong’s annotations on the report submitted by the Party Group of the Ministry of Finance of the Central People’s Government requesting instructions to convene the Fourth National Agricultural Tax Law Conference.
Sections (II) and (III) are two passages revised by Mao Zedong while reviewing the draft directive issued by the CPC Central Committee to the Ministry of Finance’s Party Group on April 21, 1953.
Text rendered in Song typeface indicates additions and revisions made by Mao Zedong. [2] Deng Zihui served at the time as Minister of the CPC Central Committee’s Rural Work Department and Deputy Director of the State Council’s Financial and Economic Commission. [3] Refers to the report dated April 9, 1953, submitted by the Party Group of the Ministry of Finance of the Central People’s Government to Mao Zedong and the Central Committee, requesting instructions to hold the Fourth National Agricultural Tax Law Conference. [4] Rong Zihe was then Vice Minister of the Ministry of Finance of the Central People’s Government.


Letter to Li Zhuchen [1] (April 21, 1953) Mr. Zhuchen: Your letters dated April 19 and 20 have been received and carefully read.
Thank you very much.
You have conducted extensive investigations, and your suggestions [2] will undoubtedly be helpful in resolving the existing problems.
I have already forwarded your letter to many relevant comrades for their review.
With best regards, Mao Zedong, April 21, 1953, printed from the manuscript.
Included in the Selected Letters of Mao Zedong.
Notes [1] Li Zhuchen served at the time as Vice Chairman of the Preparatory Committee of the All-China Federation of Industry and Commerce and a member of the Central People’s Government. [2] Refers to Li Zhuchen’s recommendations, submitted to Mao Zedong after conducting surveys at several factories, concerning the resolution of issues related to public–private relations, labor–management relations, tax burdens, and capital availability in the industrial and commercial sectors. 2£°