Comments on a Report Concerning Existing Problems
(November 25, 1960)


Premier Zhou, Comrade Wang Li:
Please read this document (if you have not already done so), and then return it to Comrade Deng Zikui. Recently, Comrade Zikui conducted an inspection tour of Shanxi, Hebei, Anhui, and Jiangsu provinces and came up with some valuable suggestions. When you have time, you might wish to discuss them with him.


Mao Zedong
November 25th
[!]


Refers to the report submitted by the CPC Zhejiang Provincial Committee on August 26, 1960, to the Central Committee and the Shanghai Bureau, concerning problems in key commercial grain-producing areas. The report states that during our deliberations on the Central Committee’s directives to vigorously develop agriculture and increase grain production, we specifically examined the issues facing these key commercial grain regions. We believe that, in addition to further strengthening leadership and more thoroughly mobilizing the masses to transform backward production teams, it is also essential to adopt effective measures—particularly in terms of the burden-sharing policy, grain prices, and the utilization of state funds allocated to assist poor teams—in order to support these areas in expanding production. Over the past few years, such problems have repeatedly arisen in these regions, and this spring the phenomena of starvation, illness, and mass migration due to famine were most concentrated there. In certain areas where the situation has been especially severe, productive forces have stagnated or even come to a standstill over several years, leading to low morale among the population and a corresponding decline in overall productivity. Apart from shortcomings in leadership and work methods, the primary cause lies in excessive burdens coupled with meager incomes. Among the key commercial grain counties, ten had per-acre grain procurement quotas averaging over 300 jin in 1959. Moreover, agricultural taxes in these major grain-producing areas are higher than elsewhere; the higher the per capita yield, the higher the tax rate. Furthermore, low grain prices have also adversely affected farmers’ incomes in these regions. After careful study of these circumstances, we conclude that to achieve a major expansion in grain production, the following measures must be taken:


(1) Based on conditions over the past several years, and while ensuring that national targets are met, rationally adjust the grain procurement quotas among different counties and cities. (2) Reduce the agricultural tax rates in key commercial grain areas, setting the ceiling at no more than 11 percent of the fixed output. (3) Adjust grain prices in a targeted manner, planning to raise the price by one fen per jin for communes producing over 10 million jin of commercial grain. (4) Direct the majority of state funds earmarked for assisting poor teams toward key commercial grain areas, so as to help impoverished teams there expand production.


On November 23, Deng Zikui, Minister of the CPC Central Committee’s Department of Rural Work and Vice Premier of the State Council, wrote to Mao Zedong: “You mentioned earlier that you had not yet seen the Zhejiang Provincial Committee’s report on the problems in key commercial grain areas. I have now located this telegram and am forwarding it to you for your review.” Mao Zedong’s comments were written directly on Deng Zikui’s letter.