The steps for agricultural mechanization in our country must be taken prudently, so as not to undermine intensive and meticulous farming.

I raised two points regarding Comrade Deng Zihui’s summary:
(1) Increase the personal income of farmers;
(2) Focus on advanced experiences. Advanced experiences include technical policies, sideline occupations, and so on. The current danger lies in neglecting personal interests and having too many capital construction and non-productive projects (such as building sports fields, clubs, etc.). In my annotations to the book *The Socialist Upsurge in China’s Countryside*, I pointed out that farmers do have money, but it is limited. We should ensure that 90 percent of cooperative members see a yearly increase in personal income. If we fail to pay attention to the issue of personal income, a major mistake could be made. Engaging in commandism and reducing sideline occupations are also mistakes.

Issues such as accumulation, personal income, the development of sideline occupations, and rectifying commandism should all be incorporated into the planning. For this purpose, a meeting of provincial Party secretaries should be convened at the end of April.

III. The Question of "Two Long Lives."
Long live the Communist Party, and long live the democratic parties as well. They can supervise us, which is also a form of democracy. The Communist Party has two fears: one is the common people, and the other is the democratic personages.

IV. Regarding the footage of oil drilling, the target of 10 million meters in the Second Five-Year Plan is far too low. It should be increased, with a spirit of revolution and hard work.

V. When calculating production efficiency, two figures can be used: one based on production workers and one based on the entire workforce.

Key Remarks During the Third Briefing
(April 20)

I. In the past, some people said, "Without Soviet assistance, China’s construction would be impossible." This kind of thinking is incorrect.
How did Britain, the United States, and Japan carry out construction? How did the Soviet Union carry out construction?

Transcript of Conversations During Briefings on the Second Five-Year Plan

Having been slaves for so long, there is always a bit of a slave mentality, like Jia Gui in the opera *Famen Temple*, who, when asked to sit down, said he was used to standing.
It was only when Lenin resisted the Second International [1] that the Russian Revolution succeeded. It was only when we resisted the errors of the Third International [2] that the Chinese Revolution succeeded. Of course, the nature of the Second International and the Third International was fundamentally different: the Second International was not revolutionary, while the Third International was excessively revolutionary for a period.
No matter whose "fart" it is, we must analyze whether it stinks or smells sweet. We must never simply follow the wind.

II. There is no debate that heavy industry is the priority, but if the investment ratio between light and heavy industry is set inappropriately and light industry is allocated too little, that would amount to a determination not to develop heavy industry. To develop heavy industry, it is necessary to appropriately increase investment in light industry.
In addition to the relationships between light and heavy industry, coastal and inland areas, individuals and collectives, and localities and the central government, there is also the relationship between the economy and national defense. Building industry is meant to strengthen national defense. Reducing some defense spending and investing more in industry is precisely for the sake of national defense. Do not be deceived by Dulles [3]; he does not want us to improve the people’s livelihoods but hopes we will produce more armaments.

III. Is the target of 210,000 tractors by 1962 perhaps too many? The use of tractors must be approached cautiously.

[1] The Second International, an international association of various social democratic parties and socialist workers’ groups. Founded on July 14, 1889, at the International Socialist Congress in Paris. In its early stages, it largely followed the Marxist line. By the late 19th and early 20th centuries, it gradually fragmented, and leftists, led by Lenin, waged an uncompromising struggle against the revisionists and opportunists within the Second International. After the outbreak of World War I, the Second International collapsed.
[2] The Third International, also known as the Comintern, an international association of communist parties and communist organizations worldwide. Founded in March 1919 in Moscow, with its headquarters in Moscow. It was dissolved in June 1943.
[3] Dulles (1888–1954), an American Republican, served as U.S. Secretary of State from 1953 to 1959. During his tenure, he pursued a policy of strength, brinkmanship, anti-communism, and the Eisenhower Doctrine, and was hostile toward the newly established People’s Republic of China.

Reclaiming 400 million mu of wasteland over the course of three five-year plans would be the absolute maximum.

IV. After setting the call for "more and faster," there is a risk of blind enthusiasm. For example, during the meeting in Hangzhou, some provinces wanted to plant too many sweet potatoes, making it impossible to manage. Similar situations may occur in industry: previously, we urged them to increase output, but now we have to ask them to scale back.

Key Remarks During the Fourth Briefing
(April 21)

I. After implementing agricultural mechanization in some areas, we must still observe the situation before considering the extent of further development.
People are always more skilled at work than machines. In Chaozhou, Guangdong, the yield per mu is 2,200 jin, while some state farms produce just over 100 jin per mu—over 100 jin with mechanized plowing, but 2,200 jin without it. It seems that Varga once raised the question to the Chinese Academy of Sciences’ inspection team about whether China should use tractors.

II. The question of mutual transformation between wartime and peacetime capabilities. Learn two sets of skills. Practice producing civilian goods within the military industry, and practice producing military goods within the civilian industry. This is a good approach and must be carried out accordingly.

III. The issue of specialization and cooperation. Old railway repair plants (such as Changxindian) could be considered for conversion into manufacturing plants, with only a small portion of repair tasks retained. Whether non-machinery sectors could produce a small share of general-purpose machinery (such as drilling machines) should also be studied.

IV. The issue of local industries. Two rules should be established: first, allow localities to develop them; second, do not seize them.
As for local industries, central departments still need to oversee technology, planning, and the balance of supply, production, and sales.

V. Enterprises initiated by the masses should be run by the masses themselves but must also be properly regulated. They should be carried out in stages and batches; matters that take seven to twelve years should not be resolved in just one or two years.

Transcript of Conversations During Briefings on the Second Five-Year Plan

VI. The briefing was excellent: efforts were made to thoroughly investigate and summarize experience. Previously, such experience was lacking, but now it has been systematically reviewed. These findings can be distributed to all ministries and provinces/municipalities. From now on, such briefings should be presented to us once a year.

Key Remarks During the Fifth Briefing
(April 23)

I. The self-sufficiency rate for machinery over the course of the five-year plans: 50 percent in the First Five-Year Plan, 70 percent in the Second, and 90 percent in the Third. This is a very important indicator.

II. Several questions regarding the phrasing of the basic tasks of the Second Five-Year Plan.
The phrasing regarding socialist transformation should be amended to: "Except for certain border regions, complete the socialist transformation of agriculture, handicrafts, and capitalist industry and commerce."
The term "consolidating" in "establishing a consolidated foundation for our country’s socialist industrialization" still merits further consideration.
The target for the Third Five-Year Plan, "to complete the nation’s socialist industrialization," should include the word "basically."
The Soviet Union declared industrialization only when its steel output reached 18 million tons in 1936. We should strive to reach 36 million tons by 1967.

III. The pig population could reach 300 million by 1962 and 500 million by 1967. By then, pigs will still be the primary source of manure fertilizer. We should strive for one pig per person in rural areas.

IV. In the industrial investment of the Second Five-Year Plan, the proportion allocated to light industry will be slightly higher than in the First Five-Year Plan. This is a point of difference from the Soviet Union, and future history will judge which approach is more correct.

V. What others see as our shortcomings—"backwardness" and "poverty"—are precisely our advantages.
We carry no burden; having suffered imperialist oppression for over a century, we have no cause for arrogance. This may also be the source of our modesty. We bear neither the burden of imperialism nor the burden of the October Revolution (the first socialist revolution).

VI. The Maoming oil shale plant, with two phases producing one million tons and an investment of 1.3 billion yuan. The cost recovery period should be calculated before deciding whether to proceed with two phases or just one.

VII. The Neijiang-Kunming railway should be extended to Kunming by 1958.

VIII. The Zhangjiakou-Baotou railway, the Beijing-Taiyuan railway, and the Zhongwei-Xianyang railway hold little economic significance and can be postponed for now.

Key Remarks During the Sixth Briefing
(April 24)

I. Since there are already many factories in coastal cities, no more large-scale or new plants need to be built there, but building small factories and appropriately expanding existing ones is acceptable.

II. The steel plant in Yiyuan, Shandong, could be considered for placement in the area north of Linyi.

III. The decentralization of primary schools does not have to be completed in two years, nor does it need to be uniformly mandated. Some may take two years, others three, four, five, or six years.
The decentralization of primary schools reflects the contradiction between the state and cooperatives (there are two contradictions: between the state and cooperatives, and between cooperatives and their members).

IV. The per capita grain consumption level increasing by only 1.2 percent by 1962 and remaining unchanged by 1967 merits reconsideration. Since increased production will lead to increased consumption in both urban and rural areas, a 1.2 percent increase may be far too small.
The rationing system should not be abolished lightly; it offers significant benefits for preparedness against shortages and war. This nationwide planned supply system is a good practice.

Transcript of Conversations During Briefings on the Second Five-Year Plan

V. The question of the six major contradictions:
(1) Light industry and heavy industry: To develop heavy industry, we must pay attention to investing more in light industry.
(2) Coastal and inland areas: To develop inland areas, we must make full use of the coast.
(3) National defense, administration, versus the economy and culture/education: We must minimize defense and administrative expenditures as much as possible to expand economic and cultural/educational construction.
(4) Individuals and collectives: To develop collective interests, we must take into account individual welfare. Raising workers’ wages is precisely to boost their enthusiasm and increase production. Among farmers, there are dual relationships: between the state and cooperatives, and between cooperatives and members. We must ensure that members’ incomes increase annually to enhance their enthusiasm for raising production.
(5) Localities and the central government: Decentralization is precisely for the sake of centralization. Neglecting localities and weakening their authority is detrimental to the central government.
(6) Ethnic minorities and the Han: Doing a good job in ethnic minority affairs greatly benefits the Han. Although ethnic minorities account for only one-fourteenth of the population, they occupy four-fifths of the land. They enjoy vast territory and abundant resources, as well as a large population—they possess two of these qualities. Much of the gold, silver, and treasures are found in ethnic minority regions.
If these contradictions are properly adjusted, our work will improve; mistakes also arise from mishandling these contradictions. For example, Stalin erred with the fourth contradiction, and Eastern European brother countries erred with the first contradiction.
Defense spending should be significantly reduced in the Third Five-Year Plan, and further reductions may be considered in the Second Five-Year Plan. Whether the defense industry needs to produce such large quantities is also worth studying. In the Soviet Union’s First Five-Year Plan, defense and administrative expenditures accounted for a very small proportion, whereas in our case, they are much larger. Are there ways to reduce them? I am always thinking of finding ways to cut defense and administrative expenditures to channel more into economic construction. We can observe for another two years to see if defense and administrative expenditures can be further reduced.

The contradiction between individuals and collectives is the most complex. In rural areas, it often involves 5 percent of the population—cadres—whose socialist zeal is excessively high, while 95 percent of the rural population—farmers—pay more attention to personal interests. This is the contradiction.
The finance section mentions a desire to obtain more from farmers, which merits serious study. In the First Five-Year Plan, agricultural taxes amounted to 17 billion yuan, while in the Second Five-Year Plan, agricultural taxes plus decentralized primary school costs are projected to reach 37.7 billion yuan, a substantial increase. We must always take care of farmers and avoid causing a sharp drop in their incomes in one stroke. Last year was a major lesson: with an extra 60 to 70 billion jin of grain harvested, the entire peasantry cursed us. After we reduced state purchases, implemented the "Three Fixes" system, and benefited from a bumper harvest, they stopped cursing and started applauding. In short, we must be cautious and prudent. If we need more, we can come up with more methods, such as small profits with wide sales.

VI. Final Conclusion:
We will go along with your proposals because what you say makes sense. For any issues we discussed during the briefing, you must pay attention to adjusting them.
It is good for the Planning Commission to interact with various ministries, provinces, and municipalities; they have more knowledge than we do in some respects.
Ministries (including committees), bureaus, commissions (provincial/municipal), and factories should each submit an annual report (this year counts as the first). Not all factory reports can be read, but selective review is fine. Before visiting a factory, the factory director could be invited for two discussions first; this would help build familiarity.
The National People’s Congress was held in July last year and will be held in June this year. Could it be moved to May next year?
At the Eighth Party Congress, the report on the Second Five-Year Plan should be delivered by the Premier [1] (Comrade Fuchun [2] proposes reporting to the Premier).

(1) The Premier refers to Zhou Enlai.
(2) Fuchun, namely Li Fuchun, was then Vice Premier of the State Council and Director of the State Planning Commission.