Comment on the Draft Instruction for Transmitting the Report of the Finance and Economics Group on Discussing the 1962 Adjustment Plan

The planned figures for grain and cotton reported from the localities are all lower than the above-mentioned figures. Whether this year's gross agricultural output value can reach 42 billion yuan will depend on the circumstances of spring plowing, the summer harvest, and intertilling before a fairly appropriate estimate can be made.

[2]
The draft instruction of the Central Committee of the Communist Party of China, dated May 1962, for transmitting this report of the Central Finance and Economics Group stated: The Standing Committee of the Political Bureau of the Central Committee convened a Central Work Conference from May 7 to 11 to discuss the report on the 1962 adjustment plan submitted by the Central Finance and Economics Group. The Central Committee fully agrees with this report and has decided: The spirit and policy of this conference shall be conveyed orally among the first secretaries of county Party committees and cadres at or above that equivalent level; the first secretaries of prefectural Party committees and cadres at or above that equivalent level shall go to the provincial Party committees and the various ministries and commissions of the Central Committee to read the written report of the Central Finance and Economics Group. The scope for conveying and reading within the army shall be handled by the General Political Department in accordance with this stipulation.

The Central Committee holds that this report by the Central Finance and Economics Group provides a relatively comprehensive and in-depth analysis of the important current situation of the national economy. Our understanding of the severity of the fiscal and economic difficulties, and the speed of overcoming them, can, in general terms, be said to have become clear. However, some specific difficulties have not yet been clearly understood, and there may also emerge in the future some difficulties that are currently unforeseen. In order to restore agricultural production as quickly as possible and gradually overcome the difficulties, the primary tasks the entire Party must urgently focus on at present are: resolutely shortening the front of industrial production and construction, and resolutely reducing the number of workers, staff, and urban population; and strengthening leadership over the production teams of rural people's communes, reinforcing support for agricultural production from all sectors, particularly industry, and consolidating the collective economy in the rural areas. From the central down to the local levels, the main leading forces should be divided into two parts, under unified leadership: one part to focus on the work of reduction and streamlining, and the other part to focus on rural work. The Central Committee's instruction and the report of the Central Finance and Economics Group on discussing the 1962 adjustment plan,
On May 26, 1962, the Central Committee of the Communist Party of China issued them as Document Zhongfa [62] No. 254 to the Party groups of all ministries and commissions, and to the Party committees of all provinces, municipalities, and autonomous regions.

[3]
On May 19, 1962, Premier Zhou Enlai of the State Council, when submitting to the Central Committee of the Communist Party of China the draft instruction for issuing the report of the Central Finance and Economics Group, wrote a letter requesting Li Fuchun to read it and then send it to Mao Zedong for examination and approval. The letter stated: The Chairman saw the first part of the Finance and Economics Group's report when he was in Beijing; at the May Day meeting of the Standing Committee of the Political Bureau, the Chairman stated his agreement with this policy. This enlarged meeting of the Standing Committee of the Political Bureau of the Central Committee was convened precisely in accordance with this policy. If the Chairman has time, it is hoped that he can arrange for Comrade Fuchun (who is now in Shanghai) to go to Hangzhou to report in person once. If the Chairman agrees to issue this document, please ask Tian Jiaying or Lin Ke to telephone Yang Shangkun to handle it.