Outline of a Speech on the Issue of Unified Purchase and Sale of Grain [1] (1953)  Differences from the “Surplus Grain Collection System.” The relationship between the state and approximately 80 percent of farmers, as well as the issue concerning the roughly 10 percent of households facing food shortages. “Is Communism Coming?” The relationship with large, medium, and small grain traders. Cooperatives replacing grain merchants. There are six underlying realities in the countryside: (1) small-scale farmers; (2) about 10 percent of households experiencing food shortages; (3) 20 to 40 million disaster victims each year; (4) roughly 10 percent of backward rural areas; (5) 80 to 90 percent of farmers who are enthusiastic and supportive; (6) the mutual-aid and cooperative movement.  (1) Irrigation; (2) Fertilizers; (3) Seeds; (4) Pests and diseases; (5) Farm tools; (6) Cultivation methods. The erroneous notion of “protecting the peasants” should be analyzed and criticized. The question of socialism versus capitalism. Relying on the Party, the Youth League, and households with food shortages. What to do when industrial goods cannot be supplied promptly? Everywhere where rationing is necessary, it should be implemented. … … … Unified management, division of responsibilities. Sending senior officials down to the grassroots level. (60 billion jin of refined grain) … … … The issue of urban frugality (the Soviet Union once allocated only five liang per person per day in major cities, whereas China currently provides ten old liang or twelve new liang). During the transitional period, the socialist system comprises two important constituent sectors: (1) private capital—state capitalism; (2) expropriation and purchase of grain from small private farmers. The main body is state-owned industry, with one wing being state capitalism and the other wing being rural mutual aid and cooperation along with the grain-purchase system. Prices should be calculated with a long-term perspective. Should we avoid simultaneous tension in both urban and rural areas? … … … (Li Fuchun, Rao Shushi) Let’s refrain from discussing this for now. … … … Mobilize the entire Party for propaganda work (make a big fuss, but without publishing in the newspapers). … … … Saving is a major issue, not a minor one. … … …

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Planned supply. Possible problems that may arise: (1) Farmer discontent (shoulder-pole riots); (2) Citizen dissatisfaction (due to rationing); (3) Adverse external repercussions.  Printed according to Mao Zedong’s manuscript.  Note [1]: This is an outline of a speech written by Mao Zedong during the expanded meeting of the CPC Central Political Bureau held in September–October 1953, concerning the unified purchase and sale of grain. Most of the issues listed in the outline were addressed in Mao’s concluding remarks at the expanded meeting of the Political Bureau on October 2. In his conclusion, Mao stated that the fundamental path for farmers lies in socialism—moving from mutual aid to large-scale cooperatives (which need not necessarily be called collective farms). We are currently in a transitional period between the end of one harvest and the beginning of the next, and some farmers have already begun to forget the benefits of land distribution. Our economy is dominated by the state sector, with two wings: one wing represents state capitalism (the transformation of private capitalism), and the other wing encompasses mutual aid and cooperation, together with the grain-purchase system (the transformation of the peasantry). Some people wish to understand the true situation in the countryside, which has six aspects: (1) Small-scale peasant farming—a poor economic base, yet an existing reality. (2) Approximately 10 percent of households suffering from food shortages. Conditions are better in old revolutionary base areas, while it will take five years to resolve the problem in newly liberated regions. (3) Between 20 and 40 million disaster victims each year. This is a long-term challenge, though improvements can help reduce its scale. (4) Roughly 10 percent of backward rural areas. (5) Eighty to ninety percent of farmers who are enthusiastic and supportive of the government. Households experiencing food shortages and disaster victims also support the government. It is precisely this broad base of 80–90 percent of farmers that forms our foundation in the countryside. (6) Mutual-aid and cooperative movements: In old base areas, participation rates range from 60 to 70 percent, while in newly liberated regions they stand at 20–25 percent, though a portion of these may be superficial or insincere. The future development of China’s countryside will fundamentally depend on this sixth factor. Of these six aspects, the first four represent unfavorable conditions, whereas the last two reflect positive developments. This is not a technical assessment, but rather a political one; understanding this reality is intended to provide clarity both within and outside the Party.  Irrigation, fertilizers, seeds, pest and disease control, farm tools, and cultivation techniques—all rely on mutual-aid and cooperative efforts. Further advancement toward socialism will require machinery, such as tractors. Implementing the grain-purchase policy among farmers depends primarily on Party members, who serve as village cadres and active elements among the peasantry. Among farmers, both middle peasants and households facing food shortages include such active individuals; relying solely on those with food shortages would be insufficient.  Regarding rationing: It need not be called “rationing”; “planned supply” would be an equally valid term. Expropriation, elimination of private traders, and unified management are imperative. Rationing also appears inevitable, given that small-scale farming yields limited increases in production, while urban demand for grain continues to grow year after year. Ideally, we would strive to prevent simultaneous strain in both urban and rural areas, but this may prove difficult. Potential problems arising from such measures include: first, farmer discontent; second, citizen dissatisfaction; and third, negative international public opinion. Ultimately, the key lies in the quality of our work. As for publicity, it should be carried out vigorously, yet no articles should appear in the press. The general policy has been set; discussions can be postponed for the time being following today’s meeting, but relevant authorities may deliberate and make appropriate arrangements.