We are a large country with a huge population and a backward economy; both our economic and living standards are very low. In building socialism, the next fifteen years constitute a transitional period, with the central task being industrialization and laying a material foundation. Under existing conditions, we must continue to uphold the Party’s tradition of hard struggle. The sole source of funds is self-accumulation. In the first five-year plan, we have only accomplished one out of ten tasks. The second and third five-year plans will require even greater funds, and without strict economizing, we cannot fulfill our tasks. If investment in non-productive construction becomes too prominent, it will undermine the worker-peasant alliance and national unity. Why would peasants not come to the cities? Within fifteen years, it is impossible to modernize everything or make everything socialist. This is the stage of laying the foundation. For non-key construction projects and factories not equipped with modern technology, the first five-year plan already felt the strain, and the second and third will face even greater difficulties. Cutting national defense is impossible; cutting administrative personnel is also impossible unless they are reassigned to production and production is strengthened. It is unthinkable to solve the problem by reducing personnel engaged in national defense construction. Only comprehensive economizing can solve the problem.

In the past, our understanding was not deep enough, and implementation was not thorough. For example, in factories, welfare facilities are all socialist facilities. There is no more welfare to be added. First, focus on production and getting operations started.

Farms have also become too modernized. A cattle farm covering 1.2 million square meters is an advanced society.

Workshops, dormitories, high-rises, and large buildings costing millions are unaffordable to live in. The dormitories at the Changchun Automobile Plant and the Ural Plant are too luxurious. Even the Empress Dowager Cixi would have something to say about the kitchens. This reflects a failure to understand the difficulties of construction, a forgetting of traditions, and a violation of the industrialization policy and the spirit of sharing hardships with the peasants.

Production and living standards are out of balance. Economizing is for the sake of increasing accumulation.

1. Except for modern technical equipment and the factory buildings necessary to accommodate such equipment (those designed abroad will follow foreign designs; those designed domestically will be reduced where possible), all other construction costs must be lowered. Align with the standards of Yan’an cave dwellings. Offices, classrooms, farms, dormitories, stations, etc., should follow transitional-period standards and be used for fifteen to twenty years. All should be of brick-and-wood structure, or even adobe, bamboo, and mud walls.

For existing large cities, brick-and-wood structures may be used.

For new, separate cities, factories, and mines, adobe must be used.

Offices and schools: 50–70 yuan.

Dormitories: 20–50 yuan.

Different dormitories, different rents.

Warehouses: 40–50 yuan.

Stations: 50–70 yuan.

If the capital builds large buildings for show, it must be approved by the State Council.

The Ministry of Engineering shall draft standards between June and August.

2. For newly built factories, railways, farms, welfare, and facilities, construction shall proceed year by year based on production, profits, and operational conditions. First, focus on key areas. For example, dormitories and health clinics shall not be built before profits are generated. Socialism cannot be achieved all at once; it is a long-term vision, not an immediate reality. First of all, auditoriums must not be built.

3. In other aspects of newly established enterprises, strict economizing must be practiced. For light industry, preparatory offices shall exist for at most one year; previously, preparations were directly handled by ministries and bureaus.

Designs shall follow standards. Too many people from heavy industry departments are going to the Soviet Union.

The benefits for trainees shall be reduced.

Every link must be strictly controlled. Sofas are strictly prohibited in factory offices, and no radios shall be purchased. The living standards of factory directors must not be too far removed from those of the workers.

4. Existing plans for new cities must all be revised. Do not pursue socialist transformation; instead, make use of old cities. Industry must be appropriately dispersed.

(1) Do not construct tall buildings. One or two stories only.

(2) In cities without concentrated industry, do not build new urban areas at all. For example, workers’ water supply can use groundwater; where tap water is available, use public taps.

Roads are necessary, but green areas can be developed gradually.

First industrialization, then “socialist transformation.” After twenty years, adopt new plans.

5. For high-rise buildings and large factories already planned for construction this year, all those not yet started shall be halted.

6. Geological exploration:

(1) The volume of exploration need not be increased.

(2) For those hoping to increase it, increase the workload by 50%.

7. The Ministry of Construction shall issue standards in June, July, and August.

(1) Production aspects:

1. Reduce costs: Industry from 6% to 7.5%; railways from 2.5% to 3.5%; commerce from 2.9% to 13.9%.

2. Save raw materials: light industry, cotton, cigarette quantities.

3. Heavy industry shall fulfill the trial production plan for new products; in the first half of the year, it was 49%, less than half.

4. Stop recruiting new workers entirely. First, carry out internal clearance and adjustment; currently, even the numbers cannot be verified. There are now too many people.

5. Every link, down to clearing garbage. The Anshan Steel Plant produces 50,000 tons of steel per month, with targets assigned to workshops.

(2) Living and consumption:

1. Except for entertaining foreign guests, only plain tea shall be served. No banquets or group meals shall be held.

2. Do not purchase sofas for offices. For chief officials’ offices, two small sofas may be used, along with conference tables.

3. Economize on official documents and reports; none shall be issued without approval from the National Bureau of Statistics.

4. Reduce the use of automobiles.