Comments on the Shanghai Municipal Party Committee’s Report Concerning Foodstuffs and Daily-Use Industrial Goods (June 11 and 13, 1959)  To Yang Shangkun [1]: Today I have read the Shanghai Municipal Party Committee’s analysis of the two major problems—foodstuffs and daily-use industrial goods—and its proposed measures, dated June 6 [2]. I consider it an extremely excellent document.   (1) Please immediately notify the members of the Standing Committee who are currently in Beijing (excluding Deng Xiaoping and Chen Yun [3]), namely Comrades Fu Chun, Bo Yibo, Xian’nen, Chen Yi, Peng Dehuai, Ke Cheng, Zi Hui, Liao Luyan, Ye Jizhuang, Yao Yilin, Cheng Zihua, Wang Zhen, Deng Jie, Jia Tuofu, Song Ping, Yu Jianting, Song Shaowen, Peng Zhen, Li Xuefeng, Liu Ren, Wan Xiaotang of Tianjin, Lin Tie of Hebei, Lu Dingyi, Kang Sheng, Hu Qiaomu, Chen Boda, Yang Shangkun, Wu Lengxi, Li Rui, and Wang Jiaxiang [4], a total of 35 comrades, to read this Shanghai document without delay. As for those to whom it has not yet been distributed, please send it to them immediately. They are to finish reading it by noon on June 12 [5] and, after doing so, discuss it with their secretaries and one or two colleagues. This will enable me to convene a meeting on the afternoon of June 12, which I shall preside over.

(2) Please inform Comrade Li Xian’nen to draft, within two days, an instruction from the Central Committee to be sent to the party committees of all provinces, municipalities, and autonomous regions, as well as to the leading groups and party committees of the various ministries under the Central Committee and the State Council, to the departments of the Military Commission, and to the leading groups of the All-China Federation of Trade Unions, the Communist Youth League, and the All-China Women’s Federation [6], attaching this Shanghai document and directing them to implement it uniformly. After drafting this circular, please show it to me first. Once you have completed these tasks, forward this letter for review to Comrades Liu, Zhou, Lin, Peng, Peng [7], Xian’nen, and Chen Yi, then file it in your office.

Mao Zedong  Written while lying on his pillow at seven o’clock in the morning on June 11.

After Liu, Zhou, and Peng Zhen have reviewed it, please have Yang Shangkun transmit it by telegram and also have another copy printed as previously instructed.  Printed by Mao on June 13 based on the manuscript.

Notes  [1] Yang Shangkun was then an alternate member of the Secretariat of the CPC Central Committee and Director of the General Office of the CPC Central Committee.

[2] Refers to the report submitted by the CPC Shanghai Municipal Committee to the Central Committee on June 6, 1959, concerning the current production and supply situation of foodstuffs and daily-use industrial goods, along with proposals for future arrangements. The main contents were:

(1) The basic situation of the foodstuffs and daily-use industrial goods markets in Shanghai since the beginning of this year. 1. The supply of foodstuffs in Shanghai had already been inadequate in the second half of last year, and became even more strained after this year’s Spring Festival. 2. The market for daily-use industrial goods was generally stable, but certain items remained consistently in short supply, and demand still exceeded supply. 3. Shanghai’s gross output value of daily-use industrial goods had been increasing rapidly.

(2) The reasons for this severe tension following the Great Leap Forward: apart from the objective contradiction between production development lagging behind people’s needs and growing purchasing power, there were also shortcomings in our work. First, social purchasing power had increased substantially since the second half of last year, much of which was quite abnormal. Second, there were numerous problems in the overall planning of production, resulting in some products being squeezed out while others were wasted. Third, there were certain serious deficiencies in financial and trade work.

(3) The measures we have decided to take: First, we will adopt a policy of self-reliance as the primary approach, supplemented by external assistance, vigorously boosting the production of foodstuffs, striving to see improvement this year, achieve partial self-sufficiency next year, and further enhance our capacity to meet domestic needs in the following year. Second, we will intensify the production of daily-use industrial goods, doing everything possible to overcome raw material shortages, increase output, improve quality, expand the range of products, and support the needs of the national market. Third, we will earnestly implement the principle of frugality in nation-building, enterprise management, and all other endeavors, strictly practicing economy, opposing waste, actively curbing social purchasing power, drawing in idle funds from society, and thereby reducing pressure on the market. Fourth, we will effectively strengthen the Party’s leadership over financial and trade work. At present, it is urgently necessary to launch a broad-based publicity campaign among the masses, centered on economic life.

[3] Deng Xiaoping was then a member of the Political Bureau Standing Committee and General Secretary of the CPC Central Committee, currently recuperating from injury. Chen Yun was then a member of the Political Bureau Standing Committee and Vice Chairman of the CPC Central Committee, currently on sick leave.

[4] Refers to Mao Zedong, Liu Shaoqi, Zhou Enlai, Zhu De, and Lin Biao—five members of the Political Bureau Standing Committee of the CPC Central Committee.

[5] Fu Chun was then a member of the Political Bureau and Vice Premier of the State Council. Bo Yibo was then an alternate member of the Political Bureau and Vice Premier of the State Council. Li Xian’nen was then a member of the Political Bureau and Vice Premier of the State Council. Chen Yi was then a member of the Political Bureau and Vice Premier of the State Council. Peng Dehuai was then a member of the Political Bureau and Vice Premier of the State Council. Huang Kecheng was then a secretary of the CPC Central Secretariat. Deng Zi Hui was then Minister of Agriculture and concurrently Deputy Head of the CPC Central Rural Work Department. Liao Luyan was then Deputy Head of the CPC Central Rural Work Department and Minister of Agriculture. Ye Jizhuang was then Deputy Director of the State Council’s Commerce and Trade Office and Minister of Foreign Trade. Yao Yilin was then Deputy Director of the same office. Cheng Zihua was then Deputy Director of the State Council’s Commerce and Trade Office and Minister of Commerce. Wang Zhen was then Minister of Land Reclamation. Deng Jie was then Vice Minister of Light Industry. Jia Tuofu and Song Ping were both then Deputy Directors of the State Planning Commission. Yu Jianting was then a member of the State Planning Commission. Song Shaowen was then Deputy Director of the State Basic Construction Commission. Peng Zhen was then a member of the Political Bureau, First Secretary of the Beijing Municipal Party Committee, and Mayor of Beijing. Li Xuefeng was then a secretary of the CPC Central Secretariat. Liu Ren was then Second Secretary of the Beijing Municipal Party Committee. Wan Xiaotang was then First Secretary of the Tianjin Municipal Party Committee. Lin Tie was then First Secretary of the Hebei Provincial Party Committee. Lu Dingyi was then an alternate member of the Political Bureau, Minister of Propaganda, and Vice Premier of the State Council. Kang Sheng was then an alternate member of the Political Bureau. Hu Qiaomu was then an alternate secretary of the CPC Central Secretariat and Mao Zedong’s secretary. Chen Boda was then an alternate member of the Political Bureau and Director of the Central Political Research Office. Yang Shangkun was then an alternate secretary of the CPC Central Secretariat and Director of the General Office. Wu Lengxi was then President of the Xinhua News Agency and Editor-in-Chief of the People’s Daily. Li Rui was then Vice Minister of Water Resources and Electric Power and Mao Zedong’s secretary. Wang Jiaxiang was then a secretary of the CPC Central Secretariat and head of the Central External Liaison Department.

[6] In this directive issued by the CPC Central Committee on June 13, 1959, it is pointed out that the shortage of foodstuffs and daily-use industrial goods is currently one of the most prominent problems in economic life; it is an important issue concerning relations between the Party and the masses; it is both an economic problem and a major political one. The only way to solve this problem is to increase production and expand the supply of goods, practice strict economy to curb social purchasing power, and improve commodity sales and business management. The Shanghai Municipal Party Committee’s report provides factual information, analysis, and concrete measures for addressing the problem, thus embodying the Central Committee’s policies. The Central Committee calls upon all regions and departments to vigorously promote the production of foodstuffs and daily-use industrial goods, to implement measures to reduce social purchasing power, and to tackle this issue with concerted efforts from top to bottom. This section (II) constitutes my comments on the draft of this Central Committee directive.

[7] Liu refers to Liu Shaoqi. Zhou refers to Zhou Enlai. Lin refers to Lin Biao. Peng refers to Peng Zhen. Peng refers to Peng Dehuai.