(March 8, 1956)
The oral reports from the ministries, with catalogues listed, are clear at a glance. It would be good for all ministries to do likewise.
You can organize some exhibitions and display the various means of transport.
The number of students in the institutes is too small, pitifully so.
In the future, there may be ten to twenty million tons of shipping, and China may stand out. Our country’s share of the world’s seagoing ship tonnage is less than X percent, which shows that our country is too poor.
There are few highways; more should be built. For local industries and highway construction, local initiative must be brought into play.
High transport prices fetter the productive forces; industrial and agricultural products cannot be exchanged smoothly.
The "one-man management system" is an eyesore; why not change it to some other term? It is necessary to emphasize collective leadership and the system of division of responsibilities. On the issue of lowering transport prices, it is inappropriate for the financial departments to be so calculating. High transport prices fetter production and reduce tax revenue, ultimately harming ourselves. Both industry and agriculture are developing; the exchange between the two relies on the link of transportation. If the passage in the middle is too narrow and cannot be traversed, contradictions arise, affecting the development of both sides. In the past, the standards for local highways were too high, and they could not be built.
There are many things that at first hearing seem reasonable. Learning from the Soviet experience must be integrated with reality; divorcing it from reality is wrong.
After the local transportation conference, the situation has changed. This shows that leadership is indeed important; otherwise, with 600 million people having 600 million directions, it would be unmanageable. The method of holding meetings is very good—once a year, or even twice a year. Set the meeting schedule in advance, and the lower levels will get moving (as with eliminating schistosomiasis). The various iron and wooden-wheeled carts should be converted to rubber-tyred carts, and this must be done quickly.
Twenty-five percent of human-drawn carts have already been cooperativized. Cooperativization is of course desirable, but attention must be paid to how it is carried out. Some can just register for now; if they don’t register, they feel uneasy. Organize them if possible; if not, don’t force it.
The policy of redeeming the capitalists—Lenin wanted to implement it but could not. At that time, it held no benefit for the capitalists. Are the capitalists willing now? Now the small capitalists are willing, the workers are willing, and the big capitalists are going with the tide. The question now is how to arrange them. One characteristic of Chinese capitalists is that many possess knowledge of management and operations. The thinking of capitalists is not necessarily worse than that of Gao Gang, Rao Shushi, and Pan Hannian, or worse than that of Chen Guang and Dai Jiying. Capable core cadres from among the capitalists should be placed in leadership positions. Whether private property should be nationalized after three years still requires consideration. In the future, they may be given welfare funds.
Regarding the suggestions put forward by the Fujian Provincial Party Committee on improving individual vehicles and boats, you can test them in a few co-ops. Each province should try them out before making a decision.
In eliminating counterrevolutionaries, we must eliminate genuine counterrevolutionaries and not make mistakes. Genuine counterrevolutionaries have skills; once identified, they can also be controlled and used in secondary posts.
What is this method of fattening pigs with lights? This shows that coercion and commandism won’t work. If it won’t work even for pigs, how much less so for people?

Reaching X million tons of shipping by 1967—that would look like something. China’s terrain is relatively complete, with the great sea to the east and high mountains to the west. Once unified, it is not easy for imperialists to invade, and developing shipping has great significance.
IV
The policy of unified management of government agency automobiles is very correct. For automobiles, the main consideration is need; they must be suited to industry and agriculture.
If transportation and light industry cannot adapt, we will be scolded one day.
On the issue of lowering local transport prices, hold a meeting first to discuss it thoroughly, and decide only after seeing clearly.
For simple highways, there must be a standard. Unregulated construction everywhere would be disastrous.
I support all your correct views. I have already said that we must run our affairs in a way that is more, faster, better, and more economical.