Comments on the Report of the Shaanxi Provincial Committee of the CPC Concerning a Conference Where Workers, Peasants, Merchants, and Transport Personnel Jointly Tackled Market Problems (July 15, 1959) 1. This is an excellent document [1]; it should be circulated for all comrades’ reference. Mao Zedong, July 15 2. Note by Mao: All localities ought to proceed in this manner. [2] Printed from the manuscript. Notes [1] In its report dated July 7, 1959, to the Central Committee, the Shaanxi Provincial Committee of the CPC stated that, in order to swiftly alleviate the current tight supply-demand situation in the market, it had recently convened a conference on market issues attended by personnel from the industrial, agricultural, commercial, and transport sectors at or above the county level. The meeting resolved several major issues: (1) With regard to addressing market problems, representatives from all four sectors openly discussed their respective and mutual contradictions, and these were largely resolved. Ideologically, there was further convergence in understanding of the market situation, and the principle of “a nationwide unified strategy” was clearly defined. (2) The fundamental key to easing the shortage of goods lies in increasing production and expanding the supply of commodities. Accordingly, the meeting devoted considerable time and effort to implementing specific plans. In carrying out these plans, emphasis was placed both on raising ideological awareness and on ensuring close coordination and overall balance among the four sectors. (3) It is believed that, provided all relevant parties earnestly implement the Central Committee’s policies, fully mobilize the enthusiasm of the broad masses, increase production and commodity supplies, curb social purchasing power, and improve management practices, the present tense market conditions can be substantially eased within a relatively short period. [2] The report of the Shaanxi Provincial Committee noted: “At this conference, we made full use of the opportunity for workers, peasants, merchants, and transport personnel to come together; in addition to formulating plans within their own systems, we also engaged in timely inter-sectoral coordination and comprehensive balancing.” After the phrase “We made full use of the opportunity for workers, peasants, merchants, and transport personnel to come together,” Mao Zedong added this comment in parentheses.

Proposal Regarding Changes to the Grouping Arrangements for Participants in the Lushan Conference [1] (July 16, 1959) Comrades Shaoqi, Enlai, and Shangkun [2]: It is suggested that those comrades who have come from Beijing and are currently assigned to the major regional groups should be reassigned immediately. For example, those in the East China group should be transferred to the Central-South–South China joint group or another region; those in the Northwest group should be moved to the East China group or elsewhere, and so forth. A new roster should be drawn up without delay today, and from tomorrow onward, everyone is to follow the new arrangement. By doing so, one’s horizons will be greatly broadened, which could prove highly beneficial. As for the secretaries of the provincial committees in each region, should a portion of them—say, half or one-third—also be transferred to other regions in the same manner to broaden their experience? Please make a decision on this matter; I have no fixed view. Might you convene a brief discussion with the heads of the major regions and a small number of central comrades to facilitate a decision? An hour would suffice. Mao Zedong 6:00 a.m., July 16 Based on the manuscript. Notes [1] Refers to the enlarged meeting of the Political Bureau of the CPC Central Committee then being held at Lushan. [2] Shangkun refers to Yang Shangkun, who at the time served as an alternate member of the Secretariat of the CPC Central Committee and Director of the General Office of the CPC Central Committee. 3£µ