Notes on the Draft Decision of the Central Committee Concerning Commercial Work [1] [2] (August 31, September 14, October 7, 1962)  I. Comrade Shangkun [3] is requested to circulate this document to all comrades attending the plenary session [4] for discussion. Mao Zedong August 31 II. Circulate this document to all comrades for discussion. Mao Zedong September 14 III. This document [ ] should be immediately sent to Zhou [ ] for review, then to Liu, Zhu, and Deng [7] for their review; please have Deng take care of the matter. Mao Zedong October 7

Printed from the manuscript. Notes [1] The Decision of the CPC Central Committee on Questions of Commercial Work (August 31, First Draft) consisted of seven sections. The decision adopted by the Tenth Plenary Session of the Eighth CPC Central Committee on September 27 added one more section, bringing the total to eight. The Decision states: “Developing the economy and ensuring supplies” is the fundamental starting point of our commercial work. Our commercial activities should, under the guidance of the state plan and in accordance with the principle of equivalent exchange, properly utilize the law of value and, through appropriate forms of buying and selling, promote the development of agricultural and industrial production, thereby gradually guaranteeing the supply of consumer goods to both urban and rural residents. At present, there are three channels for commodity circulation in our country: state-owned commerce, cooperative commerce, and market trade. State-owned commerce represents the public ownership economy and serves as the main body and leading force in the commercial sector. Cooperative commerce embodies the socialist collective ownership system and acts as a powerful assistant to state-owned commerce. Market trade is a venue where farmers exchange goods and balance surpluses and shortages; it is an objective necessity independent of human will and constitutes a necessary supplement to state-owned and cooperative commerce.

Furthermore, in order to organize a unified socialist domestic market, the Decision also lays down provisions regarding centralized and unified management as well as tiered administration in the commercial sphere. With respect to the systems governing commercial operations and the systematic reorganization and strengthening of the ranks of commercial personnel, the Decision makes clear stipulations as well.

[2] This section (I) contains Mao Zedong’s annotations on the “Decision on Questions of Commercial Work (Draft of the 28th).” Mao changed “the 28th” to “August 31.” Section (II) comprises Mao’s annotations on the Decision (September 9, Second Draft). Section (III) consists of Mao’s annotations on a letter dated October 5, 1962, from Li Xiannian, Secretary of the CPC Central Secretariat, and Chen Boda, Director of the Central Political Research Office, addressed to Mao. The letter reads: “Some revisions have been made to the draft decision on questions of commercial work. We now submit the revised version for your approval.”

[3] Shangkun refers to Yang Shangkun, who at that time held the post of Alternate Secretary of the CPC Central Secretariat and Director of the CPC Central Office.

[4] Refers to the comrades then in Beijing participating in the preparatory meeting for the Tenth Plenary Session of the Eighth CPC Central Committee. [ ] Refers to the revised draft of the Central Committee’s Decision on Questions of Commercial Work. [ ] Zhou refers to Zhou Enlai. [ ] Liu refers to Liu Shaoqi. Zhu refers to Zhu De. Deng refers to Deng Xiaoping, who at that time served as General Secretary of the CPC Central Committee and Vice Premier of the State Council.