Outline for Speech at the Zhengzhou Conference
It is not a matter of expropriating the fruits of labor of the imperialists, landlords, or bureaucratic capitalists—they lived without laboring and had no fruits of labor to speak of. Toward the means of production of the national bourgeoisie, we have adopted a policy of redemption. How then could we adopt a policy of uncompensated seizure of a portion of the fruits of the peasants’ labor? Of course, commune accumulation is not the uncompensated seizure of means of consumption; rather, it constitutes a fund for building the means of production for expanded reproduction by the commune.

The question of labor distribution:
Land, labor power, and products—these three are now nominally owned by the commune. In reality, however, basically they still are, and can only be, owned by the production brigade (i.e., the former cooperative). At present (1959, and for some time thereafter), only a portion belongs to the commune, namely, the commune’s accumulation, the permanent and semi-permanent workers in commune-run industries and mines, plus a certain amount of public welfare funds—and that is all. Herein lies our hope. With accumulation increased every year, commune-run industries expanded every year, commune-owned large and medium-sized agricultural machinery, commune-run electric power stations, commune-run schools, and so forth, in three, five, or seven years it will be possible to reverse the present actual ownership, so that it basically becomes ownership by the commune, with partial ownership by the production brigade. Of course, a very small tail of individual ownership of means of production will still trail behind, such as very small private plots beside houses, small clusters of fruit trees, poultry, and livestock, etc. As for houses, they will of course remain private until large-scale construction of public dormitories takes place.

At present, the peasants are not afraid that the commune will take away the land—that cannot be taken away. What they fear is that both labor power and products will be taken.

Labor distribution is now extremely irrational. Too few people engage in agricultural labor (farming, forestry, animal husbandry, sidelines, and fisheries), while too many are in industry, service trades, and administration. These must be resolutely cut back to strengthen agriculture. Industry has 20% too many, or even more. Service trades should be greatly reduced. Administrative personnel should only be allowed to account for a few per thousand. The commune is not permitted to have literary and art troupes whose members are released from production. The contention between production brigades and the commune, the county, and the state for labor power is a serious problem.

The question of differentiation in distribution:
Brigades are divided into three grades—poor, rich, and middle.

Complete Works of Mao Zedong, Volume Forty-One
Grain rations and wage distribution should have differential grades, varying from brigade to brigade. The upper levels set the fixed quotas, the lower levels work out the flexible details; there should be fixed grades with flexible assessment.

Strictly define a system for collecting, managing, and using grain, which shall remain so for ten thousand years. Vigorously oppose waste.

In 1958, accumulation was somewhat excessive. In view of this, it should be announced to the masses: Commune accumulation in 1959 must not exceed 18%, and together with state taxes, the total must not exceed 25%, in order to set the people’s minds at ease, heighten their enthusiasm for production, and benefit the spring plowing.

The question of going down to serve as ordinary members:
Cadres at all levels shall be sent down by stages and in batches to serve as ordinary members in commune production brigades, for at least thirty days each year, up to more days in some cases. Some shall be sent down to factories and mines to serve as workers.