Notes on the Draft Directive of the Hubei Provincial Party Committee Regarding the Implementation of Wage and Supply Systems in People’s Communes (November 22 and December 6, 1958) To Comrade Xiaoping [1]: This document [2] should be circulated to all comrades attending the meeting [3] for their study.
Mao Zedong November 22nd To Comrade Xiaoping: Please inquire of Comrade Wang Renzhong [4] whether there are any differences—either in content or wording—between this document, which was published in the newspaper on December 5, and the one that was distributed to the comrades at the meeting.
In other words, has it been revised?
If so, please have it reprinted.
Mao Zedong 10:00 a.m., December 6th Printed from the manuscript.

Notes [1] Xiaoping refers to Deng Xiaoping, who at that time served as General Secretary of the CPC Central Committee. [2] Refers to the Hubei Provincial Party Committee’s directive (draft) dated November 21, 1958, concerning the implementation of wage and supply systems in people’s communes.
The draft consists of seven points, the main contents of which are as follows: (1) “Food is free; monthly wages are paid”—that is, a distribution system combining wage and supply arrangements—is an urgent demand of the broad masses of peasants.
Adopting such a distribution method during the period of socialist construction essentially still upholds the principle of “each according to his ability, to each according to his work”; it is a relatively appropriate form of distribution that people’s communes should adopt at this stage. (2) The determination of wage and supply standards should be based on the 1958 production level.
More than 90 percent of commune members should see an increase in their actual income compared with 1957, while the remaining members’ incomes should not decrease, or if they do, the reduction should be minimal.
At present, the proportion of the supply component should not be too large, to avoid reducing the incomes of some strong-labor, small-family members.
In the future, as production develops, wages should be appropriately increased, the scope of supplies expanded, and supply standards raised; moreover, collective welfare undertakings should be actively promoted so that the living standards of commune members continue to improve. (3) At present, it is most suitable for individual people’s communes to implement a supply system under which food is provided free of charge.
Communes with relatively low incomes may limit themselves to providing only grain.
A few communes that have suffered yield reductions due to disasters and are unable to provide full food supplies may temporarily adopt a half-supply arrangement.
As for clothing, shoes and socks, and other daily necessities, it is best not to introduce a supply system at this time. (4) Wage grades should be assessed reasonably.
The primary criteria for determining wage grades should be work attitude, physical strength, and technical skill.
Generally speaking, these three factors are most clearly reflected in the number of work points earned in 1958.
During the grading process, women workers should be assigned the grades they deserve; likewise, members who were frequently absent due to illness in 1958 should receive due consideration.
It is appropriate to set around seven wage grades.
The assessment of wage grades and wage standards must strictly follow the mass line, fully promote democracy, and absolutely prohibit a small group from making decisions on behalf of others. (5) Under current conditions, setting aside 0–1 percent of the total commune wage fund as bonus wages is conducive to encouraging commune members’ work enthusiasm. (6) Within a single commune, wage standards should be uniform.
However, all people’s communes should pay attention to addressing and resolving the wealth gap between former agricultural cooperatives. (7) The implementation of the wage and supply systems should be regarded as an important part of ideological education in socialist and communist principles.
Thorough ideological mobilization and clear explanation of policies are required, relying on poor and lower-middle peasants, fully promoting democracy, and striving to ensure that the vast majority of people are genuinely satisfied and enthusiastic, thereby achieving the goal of propelling a great leap forward in production. [3] Refers to the enlarged meeting of the CPC Central Political Bureau then being held in Wuchang. [4] Wang Renzhong was at that time First Secretary of the Hubei Provincial Party Committee of the CPC.