(June 6, 1964)
The method of formulating plans in the past was basically learned from the Soviet Union, and it was relatively easy to do: first decide on a certain amount of steel, then based on this calculate how much coal, how much electricity, how much transport capacity, and so on are needed; based on these, then calculate how much to increase the urban population, how much living welfare—this is the method of cranking a computer. As soon as the steel output figure changes downward, everything else is cut accordingly. This method is one that does not conform to reality and is unworkable. Calculating this way cannot factor in the heavens. When natural disasters come, they simply won’t give you that much grain, the urban population cannot increase that much, and everything else falls through. War, too, cannot be factored into the plan. We are not the US Chiefs of Staff, we don’t know when they will strike. Also, revolutions in various countries are hard to plan for. If the people’s revolution in some country succeeds, they will need our economic aid—how can this be predicted?

The method of planning must be changed. This is a revolution. After learning the Soviet method, it became a force of habit, seemingly very hard to change.
In recent years, we have groped our way to some methods. Our policy is: Take agriculture as the foundation and industry as the leading factor. According to this policy, when formulating plans, first see how much grain can possibly be produced, then see how much chemical fertilizer, pesticides, machinery, steel... are needed.
How to plan for the harvest? In five years, set it according to one bumper harvest, two average harvests, and two poor harvests. This is relatively practical and reliable. First determine, on the basis of the grain, cotton, and other economic crops
[I]
This is part of Mao Zedong's speech at the Central Committee Work Conference held in Beijing from May 15 to June 17, 1964.

that can be produced in this way, how much industry can be developed. If the harvest is better, then so much the better.
We must also take war into consideration. There must be strategic dispositions. Local Party committees must not only manage civil affairs but not military affairs, only manage money but not guns. As long as imperialism exists, there is the danger of war. Strategic rear areas must be established. It is not that the coastal areas are to be abandoned; they must also be well arranged to play a role in supporting the construction of new bases.
Two fists, one buttocks. Basic industry is one fist, national defense is the other fist. To make the fists strong, the buttocks must sit steady—the buttocks are agriculture.
For basic industry, the main problems to solve now are variety and quality. Although the quantity of steel last year was less than before, the variety was greater than before, the quality was better than before, and its usefulness was even greater than before. The key does not lie in quantity. The Soviet Union takes quantity as the standard; if the steel quantity target cannot be fulfilled, it is as if the entire socialist construction cannot go on. They demand increased output targets every year and engage in boasting every year. Actually, if the quantity plan is not fulfilled, the country will not collapse. With a certain quantity, more varieties, and better quality, the foundation becomes more consolidated.
Agriculture mainly relies on the spirit of Dazhai, self-reliance. This does not mean that industrial support can be dispensed with. Water conservancy, chemical fertilizers, and pesticides all require basic industry.
Plans must be arranged according to the objective proportional relationships we have grasped.
Planning cannot rely solely on addition, subtraction, multiplication, and division. Once the calculations are made, the various departments and regions divide up the figures, contend for personnel, contend for money, and go to court... Politics must be in command, there must be an overall viewpoint; plans should be arranged not according to the subjective wishes of a particular region, but according to objective existence and the laws inherent in things themselves.
Do not always contend for money; once money is obtained, it is spent recklessly. Zhou Xinfang has a monthly salary of 1,700 yuan, does not perform many plays, and still deposits money in Hong Kong. Some young actors make "ten-year plans" to catch up with Zhou Xinfang. As for bourgeois intellectuals, according to policy, they can be bought off when necessary; but why should proletarian intellectuals be bought off? With too much money, one will surely corrupt oneself, corrupt one's family and those around. The high-salary stratum in the Soviet Union first emerged in literary and art circles.

Strive to achieve no more grain imports within a few years, save foreign exchange to buy more technical equipment and technical materials.
Do not spend money recklessly. Do not, upon seeing the situation improve, casually "go in for big ventures" again. "Leave some leeway" has been said many times in the past, but was not followed. These two years it has been followed. Do not fail to follow it again when the situation improves.
Most of the office staff can achieve half work, half labor. This method is worth promoting. Laziness is one of the roots of revisionism.
Why have so many associations been set up in Beijing in literary and art circles? Doing nothing, or handling all sorts of messy affairs. In theatrical festivals, the army comes first, the localities second, and Beijing (the central authorities) the worst. This association, that association—this whole set was also moved here from the Soviet Union. Central literary and art troupes are still ruled by foreigners and the dead. They must go deep into life. Always engaging with the dead and foreigners will lead our country to ruin. They must serve the workers and the poor and lower-middle peasants. Physical culture, too, must be beneficial to revolutionary struggle and construction.
Among ordinary cadres, there are many "three-door" cadres (out the family door, into the school door, into the office door). The "three doors" cannot train cadres well. If the state is to be controlled by such cadres in the future, it will be dangerous. Relying on "primary school door, middle school door, university door" cadres will not do either. Not reading books won't do, but reading too many books won't do either. Ability cannot be gained solely by reading books; it depends on practice. Our state must mainly be controlled by cadres who read books in practice.
Every province must develop military industry. Money must be squeezed out from industry, agriculture, culture, and education. Do not run so many regular schools. At Tsinghua, there are over 10,000 students, and over 40,000 teaching staff, employees, and family members. This way, the leadership's energy will be greatly wasted.
Academicians and doctors, it is not necessary to have them.

June 6, 1964, Mao Zedong delivered a speech on the Third Five-Year Plan at a Central Committee meeting in Beijing. The picture shows Mao Zedong in 1964.