**Comment on a Request for Instructions and Revisions to a Draft Central Directive** [I]
(April 16 and 21, 1953)

For immediate delivery to Comrade Premier Zhou and Comrade Deng Zihui:
This document [2] should be submitted to the Central Rural Work Department for review. If there are differing opinions, Comrade Rong Zihe [3] should be summoned to a meeting at the Central Rural Work Department to discuss and decide, after which a directive to the Ministry of Finance should be drafted on behalf of the Central Committee and issued within a few days after being reviewed by several comrades in the Central Committee, because the Ministry of Finance’s meeting is scheduled to open on April 20.
The problems existing in the agricultural tax are very serious. According to reports from Hubei, one-tenth of the population has run out of grain during the spring famine. Probably around 40 million people among the national agricultural population face famine every spring. This is an extremely great problem, and it is like this every year. We must begin to earnestly resolve this problem starting with this year’s grain levies. Whether this year we should levy an additional 1.6 billion jin and issue 4 billion jin in public bonds compared to last year also merits further consideration.

Mao Zedong
April 16

(I) The actual amount of public grain collected in 1952 was 34.8 billion jin. In some places, such as Henan and Subei, due to inflated assessments from land surveys and yield determinations, the burden on peasants appeared excessively heavy. Last winter and this spring, the region between the Yangtze and Yellow Rivers was hit by cold waves, and in some places sweet potatoes and spring crops suffered considerable damage. It is still difficult to determine the national rainfall situation for this year. In some places, drought is possible. Therefore, whether the grain levy plan listed in this year’s national budget estimates can be fulfilled, and whether the issuance of public bonds should be implemented, must all be considered carefully over the long term. However, to announce now that agricultural tax will not be increased and public bonds will not be issued, altering the national budget estimate plan, would be premature. We should observe the situation for a few more months before making a decision. You may appropriately arrange the summer levy based on actual local conditions, ensuring that the peasants’ burden is not excessively heavy. For households in genuine difficulty, implement reductions and exemptions.
(VI) The issue of social reductions and exemptions in grain levies is of tremendous importance. Nationwide, approximately ten percent of farming households face spring and summer famines, lack rations, and may even run out of food. Agricultural tax must be seriously reduced and exempted. It is hoped that this agricultural tax conference will formulate concrete and feasible methods, and pay more attention to providing special consideration to impoverished and remote mountainous areas. The issue of reducing and exempting taxes for approximately ten percent of farming households is an extremely serious matter within the entire agricultural tax policy. It has not been handled well in the past few years; this year it must be done well.

**Letter to Li Zhuchen** [1]
(April 21, 1953)

Mr. Zhuchen:
Your letters of April 19 and 20 have been received and read. Thank you very much. You have done a great deal of investigative work, and your suggestions [2] will be helpful in resolving the existing problems. I have already forwarded your letter to many relevant comrades for their perusal.
With regards,
Mao Zedong
April 21, 1953

[1] Li Zhuchen, then Vice-Chairman of the Preparatory Committee of the All-China Federation of Industry and Commerce, member of the Central People’s Government.
[2] Refers to the suggestions Li Zhuchen made to Mao Zedong regarding resolving problems in industry and commerce, such as public-private relations, labor-capital relations, tax burdens, and funding, after conducting investigations in some factories.