Comments on the State Planning Commission’s Commercial Planning Bureau’s Study Materials Concerning Market Conditions [1] (July 21, 1959) — Circulated to all comrades. Well worth reading and should be studied. Printed from the manuscript by Mao Zedong on July 21.

Note [1] Refers to the Commercial Planning Bureau of the State Planning Commission’s materials dated July 9, 1959, containing an assessment of the market situation in the second half of 1959 and a forecast for 1960. The main contents are as follows:

(1) An assessment of the market situation in the second half of the year. Following the issuance of the June 1st Directive by the Central Committee and the convening of meetings on non-staple foodstuffs and handicraft production in major and medium-sized cities, the general state of acute market tension gradually ceased to worsen. The curbing of purchasing power by government organs and mass organizations has already yielded results, and the supply of goods has begun to improve.

(2) A preliminary estimate of the market situation in 1960. Next year’s market conditions will depend on this year’s agricultural production; at present, the overall picture of agricultural output is encouraging. Consequently, it is likely that grain supplies will avoid the extreme tightness seen in the first half of this year. However, the supply of light-industry raw materials such as cotton and hemp is expected to remain relatively strained. By contrast, the situation regarding non-staple foodstuffs and handicraft products should improve considerably compared with this year.

(3) Several recommendations for stabilizing the domestic market over the next two years: (1) Launch a large-scale campaign to collect and purchase wild plants and substitute products. (2) Make full and rational use of scrap and substandard steel. (3) Continue to intensify efforts to increase the production of non-staple foodstuffs. (4) Continue to promote thrift. (5) Continue to exercise control over social purchasing power.