Discussion on the Article “Refuting the Fallacy of Imbalance in the National Economy” [1] (September 6 and 10, 1959)  I. Comrade Chen Boda: Have you read the article “Refuting the Fallacy”? [2] If not, please do so, think it over, and consider whether it makes sense. Are all the arguments in this piece correct, or are there some that are not? Kindly convene a symposium at your office with several leading comrades from the State Statistical Bureau—say four or five, or perhaps seven or eight—to examine it thoroughly, and report your conclusions to me, preferably in writing. This is a major issue; we should devote ourselves to it wholeheartedly, even to the neglect of sleep and meals. Mao Zedong On September 6, during the symposium, he showed them this document. Printed from the manuscript.

II. From Our Publication Following the publication in our journal on September 3 of the article “Refuting… the Fallacy,” Comrade Mao Zedong wrote to Comrade Chen Boda, asking him to arrange a symposium with comrades from the State Statistical Bureau for discussion. Comrade Chen Boda then held a symposium with comrades from the State Statistical Bureau and other relevant colleagues. We now publish here Comrade Chen Boda’s reply to Comrade Mao Zedong [3] and the State Statistical Bureau’s paper, “Data on the Proportional Relationships in Our Country’s Annual National Economy,” prepared on the basis of the symposium’s findings, for readers’ study. Printed from Mao Zedong’s manuscript.

III. Comrade Leng Xi: Please forward the attached document [4] to the Editorial Department of Xinhua News Agency’s “Internal Reference,” requesting that they publish it tomorrow (the 11th). … … Mao Zedong At 7 p.m. on September 10, printed from the manuscript.

Notes [ ] This section (I) consists of a letter from Mao Zedong to Chen Boda, Director of the Central Committee’s Political Research Office, concerning an article titled “Refuting the Fallacy of Imbalance in the National Economy,” which was published in Issue 286 of Xinhua News Agency’s “Internal Reference” on September 11, 1959. Section (II) comprises Mao Zedong’s draft “This Journal Reports,” intended for publication in “Internal Reference” alongside Chen Boda’s reply to Mao and the State Statistical Bureau’s paper, “Data on the Proportional Relationships in Our Country’s Annual National Economy.” Mao also drafted the title “Discussion on the Article ‘Refuting the Fallacy of Imbalance in the National Economy’” for this “This Journal Reports.” Section (III) contains Mao Zedong’s instructions to Wu Lengxi, President of Xinhua News Agency, regarding the publication in “Internal Reference” of Chen Boda’s reply and the State Statistical Bureau’s materials.

[2] Refers to the article “Refuting the Fallacy of Imbalance in the National Economy” by the Party Committee of the State Statistical Bureau. The article states that, while studying and discussing the Resolution of the Eighth Plenary Session of the Eighth CPC Central Committee, the Bureau had deliberated on the overall balance and proportional relationships in the national economy in 1958. Based on statistical data, the majority of comrades refuted the arguments put forward by right-leaning opportunists, who claimed that the 1958 Great Leap Forward—with steel as its central focus and mass participation in steelmaking—as well as the resulting emphasis on heavy industry, had disrupted the economy’s proportional structure. All agreed that, in essence, the national economy had advanced in a proportionate and balanced manner in 1958. The article further presents a series of statistical data to substantiate these views.

[3] On the afternoon of September 8, 1959, Chen Boda wrote to Mao Zedong, stating that on the afternoon of the 7th he had convened a symposium bringing together five officials from the State Statistical Bureau and several other comrades engaged in economic research. At the meeting, participants generally endorsed the Bureau’s assessment of the proportional relationships during last year’s Great Leap Forward, concluding that the economy had developed in appropriate proportions rather than suffering from imbalance. However, they felt that certain points could be expressed more precisely and comprehensively. The following views were raised: First, the most fundamental proportional relationship in the national economy lies between Category I—production of means of production—and Category II—production of consumer goods. Second, judging from the overall situation of industry and agriculture, as well as heavy and light industries, during last year’s Great Leap Forward, it can be confidently asserted that the ratio between Category I and Category II was appropriate. Moreover, the internal proportions within each category were also largely sound. Third, although the overall proportional relationships were basically suitable, this does not mean that no temporary, localized imbalances might have occurred. Fourth, the Great Leap Forward proceeded in a proportionate manner; any individual or regional imbalances were merely transient phenomena arising from such rapid progress and have since been significantly improved through adjustments. Fifth, addressing these isolated imbalances and fine-tuning certain proportional relationships should be approached proactively, with a focus on expanding production. Chen Boda enclosed with his letter the State Statistical Bureau’s document, “Data on the Proportional Relationships in Our Country’s Annual National Economy,” compiled based on the discussions at the symposium.

[4] Refers to Chen Boda’s letter to Mao Zedong dated the afternoon of September 8, 1959, along with the State Statistical Bureau’s “Data on the Proportional Relationships in Our Country’s Annual National Economy” and Mao Zedong’s draft “This Journal Reports” for Xinhua News Agency’s “Internal Reference.” All three were subsequently published in Issue 2868 of “Internal Reference,” printed on September 11, 1959.