Commentary on the Zhejiang Provincial Party Committee’s Report Concerning Problems in Key Commercial Grain Areas (November 25, 1960)

Premier Zhou: If you have not yet read this document [1], please do so and then return it to Comrade Deng Zikui. Comrade Zikui recently conducted inspections in Shanxi, Hebei, Anhui, and Jiangsu provinces and has offered some valuable suggestions. When you have time, you might wish to discuss them with him. Mao Zedong November 25

Based on the manuscript. Notes [1] Refers to the report dated August 26, 1960, submitted by the CPC Zhejiang Provincial Committee to the Central Committee and the Shanghai Bureau concerning problems existing in key commercial grain 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 thoroughly mobilizing the masses to transform backward production teams, it is also essential to adopt effective measures regarding burden policies, grain prices, and the utilization of state funds earmarked for assisting poor teams, so as to support these areas in expanding production. In recent years, recurring problems have arisen in these regions, and the widespread starvation, illness, and mass migration that occurred this spring were concentrated primarily in those same localities. In certain areas where the situation is particularly severe, productive forces have advanced very slowly over several years—some have even come to a complete standstill—leading to low morale among the people and a measurable decline in overall productivity. Aside from shortcomings in leadership and work methods, the root cause lies mainly in excessive burdens and meager incomes. Among the key commercial grain counties, ten had per-acre requisition quotas averaging more than 300 jin in 1959. Moreover, agricultural tax rates in these key commercial grain producing areas are higher than elsewhere; the greater 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 in order to achieve a major expansion in grain production, the following measures must be taken: (1) On the basis of conditions prevailing over the past few years and while ensuring fulfillment of national targets, appropriately adjust the grain-requisition quotas among counties and cities. (2) Reduce 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 that produce over ten million jin of commercial grain. (4) Direct the bulk of state funds allocated to assist 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 Rural Work Department and Vice Premier of the State Council, wrote to Mao Zedong: “You mentioned on that day that you had not yet seen the Zhejiang Provincial Party Committee’s report on problems in key commercial grain areas. I am now retrieving this telegram and submitting it for your review.” Mao’s commentary was written directly on Deng Zikui’s letter.