Marginal Notes on the Draft Proposal [1]
(August and September 1956)

[I]
Note 1 is written on the third draft of the Proposal of the Eighth National Congress of the Communist Party of China on the Second Five-Year Plan for the Development of the National Economy (1958–1962), printed in August 1956. Note 2 is a marginal comment on the following two passages in the third draft:
"Under the conditions of strengthening national defence capabilities and raising administrative efficiency, reduce expenditures on national defence and administrative expenses as much as possible, and increase expenditures on economic construction and cultural construction, so as to accelerate the industrialization of the country." "During the Second Five-Year Plan period, the proportion of expenditures on economic construction and cultural construction in total fiscal expenditures should be raised from approximately 58% in the First Five-Year Plan to approximately 60%–70%." Later, based on this marginal note by Mao Zedong, the revised draft of the proposal added the following passage:
"Expenditures on national defence and administrative expenses should be reduced from approximately 32% in the First Five-Year Plan to approximately 20%; the remaining portion shall be used for the state's material reserves, credit funds, repayment of domestic and foreign debts, and general reserve funds, etc." Note 3 is written beside the numerical table in this draft proposal, printed on 23 August 1956, listing the planned output of major heavy industrial products for 1962 and their percentages relative to the planned output for 1957 in the First Five-Year Plan. Later, based on this marginal note by Mao Zedong, the revised draft separately listed the absolute figures for the planned output in 1957, the actual output in 1952, and the highest annual output in history, deleting the original percentage figures. Note 4 is written on the revised draft of the proposal, printed on 7 September 1956. Among the revisions Mao Zedong made on this draft, the main one was adding the five characters "and leading figures" after "the people of all nationalities" in the sentence: "Social reforms in minority nationality areas should be carried out step by step in accordance with the wishes of the people of all nationalities and the specific local conditions at the time, so as to meet the needs of the rapid development of local economic and cultural undertakings."

II
A document explaining the reasons is required, for internal use.
40–45 billion (military)
13–14 billion (administration)
= 53–59 billion = 22% of 235 billion,
a reduction of 10% compared to the current 32%;
other expenditures: (1) repayment of foreign debts, (2) foreign aid,
(3) material reserves, (4) general reserve funds, (5) credit funds, totalling approximately 10%.

III
The absolute figures for the highest annual output in history,
the output in 1952,
and the output in 1957 must all be listed.

IV
Comrade Zhou Enlai:
There are some minor revisions. Please consider and decide.
Mao Zedong
9 September, 5:00 a.m.