Commentary on Jiangsu Province’s Reorganization of Steel Plant Construction (May 23, 1959)

Comrades Shaoqi and Xiaoping [1] have reviewed this; please have Comrade Xiaoping consult with Comrades Chen Yun and Wang Heshou [2] and, in the name of the Central Committee, issue a notice to all provinces, municipalities, and autonomous regions instructing them to follow Jiangsu’s approach [3] in their own work [4]. Mao Zedong, May 23.

Printed from the manuscript. Notes [1] Xiaoping refers to Deng Xiaoping, who at that time served as General Secretary of the CPC Central Committee and Vice Premier of the State Council.

[ ] Chen Yun was then Vice Chairman of the CPC Central Committee and Vice Premier of the State Council. Wang Heshou was then Secretary of the Party Group and Minister of the Ministry of Metallurgical Industry.

[3] On May 16, 1959, Fan Muhuan, a member of the State Planning Commission, and others wrote to the Commission’s Party Leadership Group and to Director Li Fuchun, stating that after visiting various parts of Jiangsu to assess steel production, they had concluded that the province’s steel industry—both in terms of production and construction—had not been adequately organized. The root cause, they argued, was that too many new projects had been launched simultaneously, spreading limited resources too thin and preventing a focused, step-by-step approach. As a result, all six newly built steel plants remained “half-finished” and unable to begin operations. The Jiangsu Provincial Party Committee had now reorganized the construction of these six plants: first, it would ensure that the Changzhou Steel Plant was completed and put into production as soon as possible; with assistance from Shanghai, the Nanjing and Wuxi steel plants would be brought to operational readiness, aiming for commissioning in July; meanwhile, construction on the remaining three plants would be suspended, with existing equipment reallocated to support the other three, pending further consideration in the second half of the year regarding those halted projects.

In their view, Jiangsu’s course of action was correct. By concentrating resources to bring one plant online at a time rather than pursuing a simultaneous, all-out expansion, the pressure on construction and supporting infrastructure could be significantly reduced, thereby facilitating an increase in steel output. This situation, however, was not unique to Jiangsu, suggesting a need for further study of provincial plans for steel plant development, with a view to genuinely shortening the front and concentrating efforts—measures that would effectively guarantee this year’s steel production target.

On May 22, Li Fuchun forwarded these letters to the Central Committee and to Mao Zedong, accompanying them with a note observing that he considered the Jiangsu Provincial Party Committee’s determination to adopt a strategy of shortening the construction front, concentrating resources, and rationally locating facilities to be entirely appropriate, and recommending that the Ministry of Metallurgical Industry assist other provinces and municipalities facing similar circumstances in implementing the same approach.

[4] On May 26, 1959, Deng Xiaoping drafted, on behalf of the CPC Central Committee, an instruction transmitting both Li Fuchun’s letter and the letter from Fan Muhuan et al. to the party committees of all provinces, municipalities, and autonomous regions.