(May 17, 1955)
On the question of co-operatives, there are also quite a few disturbances, but on the whole things are fine. If we do not stress that on the whole things are fine, we will make mistakes. On the question of co-operativization, there is a kind of negative sentiment; I believe it must be changed. If it is not changed further, a major mistake will be made. Regarding co-operativization, first, there is halting; second, there is contraction; third, there is development. Contraction can be total contraction, partial contraction, more contraction, or less contraction. If members insist on withdrawing from the co-operative, what can be done about it? Contraction must be based on actual conditions; one-sided contraction will inevitably damage the initiative of cadres and the masses. In the later-liberated areas, the key is to develop, not to halt, not to contract; basically, it is development. In some places, halting is also necessary, but generally it is development. Within the old liberated areas such as North China and the Northeast, there are also places that need development. For example, in Shandong, 30 percent of the villages have no co-operatives; there, it is not halting, not contraction. Where there are no co-operatives at all, what is there to halt? There, it is development. Halt where halting is due, contract where contraction is due, develop where development is due.

The principle for developing co-operatives is voluntary participation and mutual benefit. When draft animals (including those belonging to landlords and rich peasants) are pooled into the co-operative, they must all be reasonably priced; poor peasants should not take advantage in this regard. In matters of land, farm tools, and draft animals, poor peasants must not gain petty advantages. Mutual benefit will secure voluntary participation; without mutual benefit, there will be no voluntary participation. Mutual benefit does not harm the middle peasants, and securing their voluntary participation in the co-operative is first of all beneficial to the poor peasants, and of course also beneficial to the middle peasants. Therefore, this principle must be upheld. Half-compromise and half-concession cannot be interpreted as harming the economic interests of the middle peasants. Some say, "Let the middle peasants suffer a bit of loss"—this statement is said to have been made by me. I do not recall whether I said it or not, but Marx, Engels, Lenin, and Stalin never said such a thing. For the poor peasants, the state should provide some additional loans to help them stand firm. Within the co-operative, the middle peasants have draft animals and farm tools; once the poor peasants have money, they too will have a say. The co-operative charter must be drafted quickly, and it must ensure that the interests of the middle peasants are not harmed in any way. In this way, the co-operatives can develop rapidly.

In developing co-operatives: Henan 70,000, Hubei 45,000, Hunan 45,000, Guangdong 45,000, Guangxi 35,000, Jiangxi 35,000, Jiangsu 65,000—all based on voluntary participation and mutual benefit. Developing co-operatives is beneficial to the state and also beneficial to each of your regions. If you are willing, then let us decide and fix these figures. For the Northeast, Northwest, Southwest, and North China, Lin Feng, Ma Mingfang, Song Renqiong, and Liu Lantao should convene a meeting, convey the spirit of this, discuss, and resolve the issues. What has been confirmed at today's meeting shall be carried out accordingly; on the whole, it will not be wrong. However, of the co-operatives developed, we must ensure that 90 percent are reliable.

[1] This is part of Mao Zedong's speech at a meeting of the secretaries of fifteen provincial and municipal Party committees convened by the Central Committee of the Chinese Communist Party.