CHINA REPORT RED FLAG

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP04-01460R000100330001-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 95
• Document Creation Date: December 21, 2016
• Document Release Date: March 19, 2008
• Sequence Number: 1
• Publication Date: August 16, 1982
• Content Type: REPORT

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JPRS 81544
16 August 1982
China Report
RED FLAG
No. 13,. 1: July 1982
FBIS
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16 August 1982
CHINA REPORT
RED FLAG
No. 13, 1 July 1982
Translation of the semimonthly theoretical journal of the Central
Committee of the Chinese Communist Party published in Beijing.
CONTENTS
Preface to 'People Who Struggle for Communism Through to the
End' (p 2)
(Wang Zhen) .............................................:........ 1
Push Forward the Party's Theoretical Work With One Heart and
One Mind (pp 5-8)
(RED FLAG Editorial Department) ..................................
Continue To Write Illustrious Chapters on Communists--
Postscript to 'People Who Struggle for Communism Through
to the End' (pp 3-4)
(Deng Liqun) ..................................................... 3
Turn to Science in Acquiring Skills, Take Experts as Our
Teachers (pp 9-12, 41)
(Hao Jianxiu) .................................................... 13
The Fundamental Task of Party Building Is To Increase the
Party's Fighting Capacity (pp 13-15)
(Li. Lian) ........................................................ 21
On Implementing Economic Responsibility Systems in Industrial
Enterprises (pp 16-20)
(An Pingsheng) ................................................... 27
Investigation on How Changzhou Municipality Developed the
Economy (pp 21-26)
(Joint investigation team of the State Council's
Structural Reform Office and the State Council's
Economic Research Center) ........................................ 36
- a - [III - CC - 75]
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Solving the Problem of Environmental Protection and Economic
Policy (pp 27-30)
(Zhou Fuxiang) ..................................................
49
Carry Forward the Fine Tradition of Integrating Theory With
Practice (pp 31-33)
(Li Xu) .........................................................
57
Implementing the Agricultural Production Responsibility
System and Adhering to the Orientation of Collectivization
(pp 32-35)
(Zhang Dajian) ..................................................
60
Should Production Relations Be Suited to the Nature of
Productive Forces or to the Level or Conditions of
Productive Forces? (pp 36-37)
(Li Xiaobo, Chen Xiushan) .......................................
67
The Life of Theory (pp 37-38)
(Bao Xinjian) ...................................................
70
Regional Nationality Autonomy Is a Marxist Policy (pp 39-41)
(Wei Ying) ......................................................
73
Ideological and Political Work for Writers Should Be
Strengthened (pp 42-43)
(Liu Shaotang) ..................................................
78
The Great Significance of Strengthening Third World
Countries' Unity and Cooperation (pp 44-47)
(Liu Yili, Li Shuqiao) ..........................................
81
I Am a Communist (p 48)
(Zhang Dun, Zhang Shoushan) .....................................
88
About Suiting Measures to Local Conditions (inside back cover)
(Li Wanren) ....................................................
89
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PREFACE TO 'PEOPLE WHO STRUGGLE FOR COMMUNISM THROUGH TO THE END'
Beijing RED FLAG in Chinese No 13, 1 Jul 82 p 2
[Article by Wang Zhen [3769 7201]]
[Text] A great number of old revolutionary fighters who are loyal and
devoted to the revolution without seeking fame or wealth come to mind after
reading this book ["People Who Struggle for Communism Through to the End"].
They deserve the respect of the masses of people. Their ordinary but mov-
ing deeds make me happy and inspire me. If you were to ask what are the
communist character and morals and what are a Communist Party member's
values, I would say that the materials collected in this book have, in one
respect, provided a relatively satisfactory answer.
The proletarian revolutionary cause is a great cause which must be passed
from generation to generation. Facing the new historical period of social-
ist modernization construction, the party's central authorities have
decided to let some old cadres retreat to the second line, be discharged or
retire from their posts; and are appointing those middle-aged and young
cadres with both ability and political integrity to leading posts. This is
not only a wise decision which conforms with the natural law of super-
session of the old by the new, but also a farsighted strategic measure which
will ensure the long-term stability of the state. It conforms with the
fundamental interests of the people of all nationalities throughout the
country. Just as Comrade Deng Xiaoping pointed out: "After all, these old
comrades of ours are loved. They always stand high and see far." Now,
abiding by the party's arrangement, some old comrades are pleasantly leav-
ing the posts at which they have been fighting for a long time and beginning
new lives. This book can give them hints and help on how to lead a more
meaningful new life.
A long time ago, I read a Soviet play, "Miners in Donbass," which was pub-
lished when Stalin was alive. This book mentioned the director of a coal
mine of worker origin who had been commended by Stalin and awarded a medal
for his outstanding work. Later, as more and more automatic mining
machines were put into use, this director talked to the provincial party
committee secretary, requesting that he be discharged from his post because
his own knowledge was insufficient to handle the job. He recommended that
the chief engineer of the coal mine assume the post of mine director. The
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children of miners called him Grandpa Donbass. I really admire Grandpa
Donbass' farsightedness in attaching importance to technical specialists
and his lofty style in recommending people with both ability and political
integrity.
We have cultivated a large number of specialists since the founding of the
new China. Now, it is the time to put more trust in'them, give them more
support and entrust them with heavier tasks so as to speed up the develop-
ment of the socialist modernization construction.
Being a large country with a population of 1 billion, China has to build up
a high degree of socialist spiritual civilization as well as a high degree
of socialist material civilization and has to do myriads of things. I
think that all our retired old comrades should follow the good examples of
those veteran fighters presented in this book, do what they can for the
people and contribute every ounce of strength. Certain trivial and con-
crete things do not sound so important. However, they really need hands to
be accomplished. Whoever is willing to achieve them conscientiously and
persistently will be able to contribute to the four modernizations and do
his little part to help build socialism. Thus, he will be respected when
he is alive and remembered by others after his death. All these retired
old comrades have been nurtured and educated by the party for several
decades and have stood the tests in the long revolutionary struggle.
Generally speaking, they have a relatively high communist consciousness and
a relatively strong party character. Therefore, they can go to live among
the broad masses of people in rural areas, plants, schools and neighborhoods,
and educate them with their own experiences. They can play the roles of
revolutionary grandpas and grandmas, and thus make greater contributions to
the building of socialist spiritual civilization.
As in the Chang Jiang, the waves behind drive on those before, so each new
generation excels over the last one. Today a number of middle-aged and
young cadres in their prime with socialist consciousness and solid capabil-
ity are taking over, one after another, the leading tasks at different
levels through the masses' recommendation and the party organizations'
selection. There have emerged young ministers, young provincial governors,
young county magistrates, young university chancellors, young farm directors
and young factory directors, and even more people like them are emerging.
There is no lack of successors to carry on the proletarian revolutionary
cause pioneered by Comrades Mao Zedong, Liu Shaoqi, Zhou Enlai, Zhu De and
other old generals. This is most gratifying indeed.
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CONTINUE TO WRITE ILLUSTRIOUS CHAPTERS ON COMMUNISTS--POSTSCRIPT TO
'PEOPLE WHO STRUGGLE FOR COMMUNISM THROUGH TO THE END'
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 3-4
[Article by Deng Liqun)
[Text] After reading the materials collected in. this book, every person of
integrity cannot help getting excited. They will feel that they can see no
reason why they should refrain from devoting.. themselves to the socialist
modernization drive of the great motherland.
We see from the first page through the last page of this book that in every
corner of our motherland the veteran communists, who have boldly struggled
for and contributed to the liberation cause of the people and the nation
and the victory of socialism in'China, continue to vigorously work at their
posts in the course of socialist construction. and continue to write
illustrious chapters on the glorious life of the communists after withdraw-
ing from leading posts and retreating to the second front because of their
illness, old age and weak body.
They have shed blood for the founding of our republic. Now, they are
watering with their sweat the places where they once shed blood. This is
incomprehensible to those mediocre people who seek personal privileges and
those who only see things directly under their nose. Why cannot these
meritorious workers of the state and the nation who have retired from their
leading posts leisurely pass their late years remembering their meritorious
service? Their answer is:
The achievements that we obtained in the past were the result of the hard
efforts of all our comrades. After all, they were achievements made in the
past.
The leading posts of the cadres are not lifelong, but to us the party's
cause is lifelong.
Although we have physically retired from the first front, ideologically,
politically and organizationally speaking, a Communist Party member can
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I will be a qualified party member if I can do some minor and practical
things for the people.
When I filled out the application for party membership I solemnly swore that
I would struggle through to the end for the communist cause. As far as I am
concerned, this "through to the end" means struggling every single day that
I live.
These ordinary but sparkling words, which fully show the communists' lofty
realm of thought and strong faith, should be remembered forever in the
heart of each Chinese person and particularly each Communist Party member.
If the proletariat fails to emancipate the whole human nation, it will also
fail to eventually emancipate ourselves. The progressiveness of this class
is concisely reflected by the vanguard communists and the fighters. Com-
munists, who are armed with communist ideas and take realizing communism
and the socialist system all over the world as their lofty ideal, will
never be depressed or threatened because of setbacks or failures, nor will
they stop their task because of temporary victories. They will not hope-
lessly give up because of errors at work or forget their new goals because
of achievements and merits. Their life is to endlessly and laboriously
struggle and make persistent and hard efforts in all kinds of work includ-
ing making overall international and domestic decisions, leading work in
localities or departments and minor jobs such as growing vegetables, selling
.goods, sending newspapers and giving people medical treatment, all of which
seem insignificant to some people. This is also where their happiness and
greatest comfort lie. Many tiny streams will gather into a river. The
minor but practical efforts of the millions and hundreds of millions of
Communist Party members are able to play an inestimable role in gaining a
victory for the communist cause. Marx and Engels wrote in "Holy Family"
that: "When it has obtained a victory, the proletariat will never become
an absolute aspect of the society because it obtains a victory only by
eliminating itself and its antagonistic aspect. In the wake of the vic-
tories of the proletariat, the proletariat itself and the antagonistic
aspect which restrains it-the private ownership system--will tend toward
extermination." When the communists.obtained the victory and took up lead-
ing posts, they did not become the "absolute aspect" of the society, that
is, the conservative aspect. When they retreat to the second front or
retire, they still will not become the "absolute aspect" of the society and
will continue to make efforts for the people's cause. They are forever
advancing. The events reflected in this book are a vivid verification of
the prophecy of the founder of scientific socialism.
During the recent movement of streamlining the government structure, many
veteran comrades valued the party's cause above everything else and
responded to the CCP Central Committee's call. They enthusiastically
recommended and supported the promotion of young and fine cadres to lead-
ing posts, and personally requested to retreat to the second front or
retire. After retreating to the second front or retiring from their posts,
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they still want to fulfill the promise that they made when they joined the
party, be qualified party members and contribute themselves to the communist
cause. All this causes no problems for most of them. However, when they
have become old and physically weak, "willing to comment on something which
is not their own immediate concern," how should they continue to work to
the best of their ability? Regarding this situation, many comrades who have
retreated from the first front have made numerous great examples. From
beginning till end, they have not divorced themselves from the masses, but
have gone deeper among the masses. Many of them stay and work or are in
close contact with a certain grassroot unit, carry out investigation there
and help comrades there correctly understand and implement the principles
and policies of the CCP Central Committee. They participate in extensive
social work and the work that they do reflects the flesh-and-blood rela-
tionship between the party and the masses and reflects a Communist Party
member's moral standards. Thus, the party's influences are extended in
different aspects, the party's prestige is improved and the party's work is
promoted. Young comrades, and particularly those young party members who
have joined the party for a short time and have not been educated with the
party's fine traditions and fine work style, can learn from them the lofty
moral qualities of the veteran communists. Comparatively older comrades,
including comrades who have joined the party for a relatively long time,
can also widen their scope of vision by the veteran communists' activities
and see the boundless scope of sacrificing for the communist cause.
This book contains only materials which have been openly published in the
central and local press since the 3d Plenary Session of the 11th CCP
Central Committee. Some changes in the wording and title have been made
by the editors. Due to the fact that how to make arrangements for cadres
who have retreated to the second front or have retired and how to continue
to give play to the role of veteran comrades who have retreated from the
first front are still new questions for our party and our state, which have
just begun to fromulate a perfect and practical system by means of inces-
santly summing up experiences, the materials collected in this book cannot
reflect the overall appearance of veteran cadres who have retreated to the
second front or have retired.
The editors of this book are several young comrades of the. Research Office
of the Central Secretariat. They have made concerted efforts in reading
over newspapers and magazines, cutting out and collecting materials, and
editing. This is a meaningful labor. They are awaiting the readers'
criticism and correction of certain editing mistakes and shortcomings.
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PUSH FORWARD THE PARTY'S THEORETICAL WORK WITH ONE HEART AND ONE MIND
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 5-8
[Article by RED FLAG Editorial Department]
[Text] Theoretical work is an important component of our party's cause.
Since the 3d Plenary Session of the 11th CCP Central Committee, under the
correct leadership of the CCP Central Committee, the numerous theoretical
workers, in an attempt to accomplish the task of bringing order out of
chaos and restore the truth of Mao Zedong Thought, have done a lot of work
and achieved great successes. In this respect, the party and the people
have made a full appraisal and evaluation. However, this does not mean
that our theoretical work has been done very well and that there are not
any shortcomings or problems in our theoretical work. A leading comrade
of the CCP Central Committee recently pointed out that theoretical work
was "not in accord" with the practice of the party and the people. He
called on the theoretical workers to "get organized" and strive to change
this state of affairs. This has pointed the way forward for theoretical
work and has greatly spurred on our theoretical workers.
In recent years, the CCP Central Committee has repeatedly stressed that the
fundamental task of the party's theoretical work is to integrate the uni-
versal truth of Marxism-Leninism-Mao Zedong Thought with the great practice
of the four modernizations, study new conditions, solve new problems, strive
to anticipate practical work in ideological and theoretical work, promote
Marxism-Leninism-Mao Zedong Thought and speed up the course of the social-
ist modernization program. If we judge our theoretical work according to
this task, we can obviously see that in many circumstances our theoretical
studies and publicity have not only failed to anticipate practice, but
often lagged behind practice by a considerable margin. Since the third
plenary session, the party has from the ideological, political and organi-
zational aspects reestablished the Marxist line, formulated and implemented
a series of correct domestic and foreign principles and.policies and
ushered in a new period in China's history, thus displaying a very high
level of Marxist leadership. However, in our theoretical work and in our
exposition and publicity of the-party's line, principles and policies, we
do not have a sufficiently clear-cut stand, have not spoken out boldly
enough, have not been sufficiently active and have not been sufficiently
convincing. For example, the party has, in line with the conditions in the
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new period, reaffirmed that it is necessary to uphold the four fundamental
principles. Politically, this is a major event that has a strong bearing
on the future and destiny of our party and state; theoretically, each
principle is extremely rich in content, containing a lot of problems that
should be proved and elaborated. However, a few comrades do not attach
enough importance to this matter and they neither study it sufficiently nor
publicize it vigorously. Some people even set the four fundamental prin-
ciples against emancipation of the mind by holding that the four funda-
mental principles fetter theoretical studies. Take another example. The
"Resolution on Certain Questions in the History of Our Party Since the
Founding of the PRC" adopted at the sixth plenary session has scientifically
summed up the historical experiences in the 30-odd years since the founding
of the PRC and explicitly put forth a program for building a powerful modern
socialist country which suits the conditions of our country. It is a
crystallization of the collective wisdom of the party and the people,
including the numerous theoretical workers. It embraces a lot of theoreti-
cal questions involving philosophy, political economy and scientific social-
ism. An important task of theoretical work is to make a systematic study
and exposition of these theoretical questions and to write theoretical
articles or works so as to help cadres and the broad masses to solve their
problems related to ideological understanding and enhance their conscious-
ness in implementing the "resolution." However., some comrades are not
enthusiastic about publicizing the "resolution," some assume a negative
attitude and a few individuals even bear some resentment against it. The
conditions in the past year and more have proved that our theoretical work
is not worthy of the epoch-making significance of the "resolution" in both
theory and practice. Moreover, in the course of the socialist moderniza-
tion drive, new conditions and problems are emerging one after another and
it is urgently necessary to make a theoretical explanation or .to give
theoretical guidance to practical work. However, more often than not we
are unable to give a satisfactory answer from the integration of theory
with practice. In short, we have not been able to undertake the tasks
entrusted to us in our theoretical work. This is the essence of being "not
in accord."
The state of being "not in accord" in theoretical work does not refer to a
particular department but to the entire theoretical work; neither does it
refer to a particular person but to the entire theoretical ranks. This is
a grim fact. The emergence of this situation is admittedly due to the fact
that there are a great many new conditions and problems during the turning
point of history, which makes it difficult for us to immediately be familiar
with and adapt ourselves to the new situation (this is in line with the law
of cognizance); but, what is more important, it is due to our theoretical
ranks. Some comrades have been fairly seriously influenced by "leftist"
ideas so that they have not been able to fully emancipate their minds and
keep pace with the times; some comrades have not been able to put them-
selves in a correct relationship to the party by overestimating themselves;
some comrades have summed up the lessons of the "Great Cultural Revolution"
from the negative aspect by divorcing themselves from reality and paying
no attention to politics; and our ranks are rather undisciplined and have
not been organized well. It is precisely due to these reasons that we have
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not been able to satisfactorily .accomplish the party's task in theoretical
work. This is a point the numerous theoretical workers should face up to
and correctly understand.
It should also be pointed out that, as far as a few individual comrades in
the theoretical ranks are concerned, this is not only a question of
unadaptability but also one of incorrect ideas and an unhealthy style of
study. For example, some people publicize and advocate various viewpoints
and expressions that run counter to the four fundamental principles. They
publicly advocate absolute "freedom of speech" and even propose to give the
so-called "freedom" to counterrevolutionary speeches. Views like that not
only reflect the bourgeois liberalization in society in our theoretical
work but also provide a "theoretical basis" for bourgeois liberalization in
society, thus playing the role of adding fuel to the fire. If the emergence
of erroneous speeches of one kind or another was still understandable before
the sixth plenary session because the party had not drawn any conclusions
on some major political and theoretical questions, then, the problem seems
serious when, since the sixth plenary session adopted the "resolution,"
some party members have not only failed to make self-criticism but have
also continued to spread their erroneous viewpoints. Although the comrades
who assume this attitude are very few, their influence should not be under-
estimated for they greatly disrupt the theoretical work of the party. In
the past we did not wage a resolute struggle against the tendency of
bourgeois liberalization. This is a serious shortcoming in our. theoretical
work. Now that we want to change the unadapted state of our theoretical
work, it is necessary and also imperative-to deal with the problem seri-
ously.
It is the urgent demand of the party and the people and also the strong
aspiration of the numerous theoretical workers to speedily change the
unadapted situation and overcome the erroneous tendency. Most of the com-
rades who engage in theoretical work, whether they are engaged in theoreti-
cal studies or in theoretical publicity, wish to work more for the party
and the people. All the loyal theoretical workers are uneasy or worried
about the current situation in theoretical. work. We are sure that so long
as numerous theoretical workers work with one heart and one mind under the
leadership of the party, they will certainly be able to change from being
unadapted and usher in a new situation in theoretical work.
How can we push forward the party's theoretical work with one heart and
one mind?
It is imperative for the party's theoretical workers to be united with the
CCP Central Committee politically. This is a major question of principle
which every theoretical work of the party should conscientiously abide by.
To be united with the CCP Central Committee politically means that the
theoretical workers of the party should uphold the four fundamental prin-
ciples, carry out the party's line, principles and policies, and, on
questions that have a strong bearing on the fundamental interests and over-
all situation of the party and state, never spread views that are contrary
to those of the CCP Central Committee. This is a political as well as an
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organizational discipline of the party. Some people have gone so far as to
indicate that emphasizing unanimity with the CCP Central Committee polit-
ically is tantamount to depriving the party members of their democratic
rights and encouraging "blind obedience and slavish mentality." As every-
one knows, there is a fundamental principle in our party, that is, demo-
cratic centralism. Before a decision on a major question is made, we
promote a high degree of democracy by..allowing and encouraging a full dis-
cussion of this question. People can make any suggestions. The process of
forming the "resolution" of the sixth plenary session is an outstanding
example. It took 20 months to draft the "resolution" which was repeatedly
discussed from every angle. In the course of the discussions, some comrades
expressed erroneous views but they were not subjected to criticism, still
less were they punished. We should like to ask, which dynasty in history,
which country and which nonproletarian party in the world have acted like
this when discussing major problems? None, for it is impossible to do so.
Only a proletarian political party which is genuinely loyal to the laboring
people has such boldness of vision and courage and can promote such a high
degree of democracy. It was precisely on this basis that the "resolution"
was formulated after absorbing and concentrating correct ideas. If we
adopt repressive measures or take disciplinary action against the comrades
who have expressed erroneous views before a decision has been made, then we
deprive the party members of their democratic rights, stifle normal demo-
cratic life within the party and violate the rules and regulations of the
party. However, it is imperative for the party members to resolutely carry
out a decision after the party organization has decided on it. It is per-
missible to reserve our different views but in actions we should uphold the
party's decision. We should not adopt a negative attitude toward it, still
less fail to carry it out. In the course of implementation, if we note
something inappropriate in the original decision, it is permissible and
also necessary to propose addenda and amendments but it is still necessary
to carry out the original decision before the organization makes a new
decision. Without this, it is impossible for the party to have a unified
will, to have combat effectiveness and to accomplish its tasks. Comrade
Chen Yun said: Literary and art workers of the party should first of all
regard themselves as ordinary party members and should not first of all
regard themselves as cultured persons. Last year, Comrade Hu Yaobang also
pointed out: "Our writers, artists and theoretical workers who are party
members should never forget that they are first of all party members and
then specialists in this or that field." The guidelines of these remarks
are entirely applicable to the theoretical ranks. As theoretical workers
of the party it is necessary for us not to be self-important and elitist.
If we stick to our old ways of doing things and act in dissension and dis-
cord with the party, we are not worthy of being communists. It is a ques-
tion of fundamental stand for the theoretical workers of the party to con-
scientiously and voluntarily preserve unity with the CCP Central Committee
politically and we should never have the slightest ambiguity and vacillation
on this point. Only on this basis will it be possible for theoretical work
to fulfill its task. Without this basis, it is likely that the theoretical
work will deviate from its course.
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It is imperative for the theoretical workers of the party to regard the
publicity of the party's line, principles and policies as their important
task and glorious duty. The party's line, principles and policies are the
lifeline of the party and the guarantee of the socialist modernization
program. Only when the party's line, principles and policies have been
accepted by the broad masses of people and have become their conscious
action will it be possible to bring into play their role in transforming
nature and society. It takes some time for the party's line, principles and
policies to be turned into the conscious action of the masses of people,
that is to say, it is necessary to extensively expound, publicize and
explain them., Who will do the work? Undoubtedly, the party members and
cadres should do it. However, it should be said that this is particularly
the unshirkable duty of the theoretical workers of the party. There is
now an argument to the effect that publicity of the party's principles and
policies is just an "explanatory annotation" and not theoretical study.
This is an incorrect viewpoint. If explanatory annotation refers to publi-
city of the party's principles and policies among the cadres and masses in
light of the actual situation, then it is quite necessary and should be done
well. As a matter of fact, publicity of the party's principles and policies
does not refer to this work alone; it contains arduous theoretical studies.
The party's principles and policies are based on a solid theoretical and
practical foundation and are the outcome of the integration of a correct
world outlook with historical experience and actual practice. If the
theoretical workers of the party do not make a thorough study of Marxist
theory, do not have a rich knowledge of history and do not have a genuine
understanding of the actual situation, it will be impossible for them to
publicize well the party's principles and policies. On this count quite a
few theoretical workers have a true understanding of this matter. At the
same time, it should also be understood that, in many aspects and on many
questions, the development of Marxism-Leninism by our party finds expres-
sion in the party's principles and policies. Therefore, practically or
theoretically speaking, study and publicity of the party's principles and
policies takes a lot of learning. It is not worthy of the theoretical
workers of the party to despise it or adopt an indifferent attitude
toward it.-
It is imperative for the theoretical workers of the party to foster the idea
of concentrating on studying new situations and issues in reality. As far
back as.during the Yanan rectification campaign, Comrade Mao Zedong repeat-
edly stressed this matter and established it as a principle for the whole
party. Facts have proved that this is entirely correct. Since the third
plenary session, the CCP Central Committee has again repeatedly called on us
to uphold this principle. Comrade Deng Xiaoping pointed out: "Make a pro-
found study of the new situations and issues that China is confronted with
in achieving the four modernizations and find out answers that are of major
guiding significance. This will be a major contribution of our theoretical
workers to Marxism." For example, the question of class struggle under
socialist conditions, the question of ensuring that the planned economy
plays the primary role and regulation by market mechanism plays the supple-
mentary role, the question of socialist spiritual civilization, and so on,
are all major theoretical subjects posed by the practice of scientific
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socialism in the contemporary era and, they have a direct bearing on the
socialist modernization drive. It is extremely necessary for us to make
a profound study of these questions and find out the correct answers.
Naturally, this does not mean that we need not make a conscientious and
profound study of the ideological and theoretical problems that do not have
a direct bearing on the socialist modernization drive. Philosophy and
social science, like natural science, should never neglect the studies of
basic theory. These studies are indispensable to any substantial advance
of theoretical work. The "resolution" of the sixth plenary session pointed
out: "It is imperative for the whole party to engage in a more diligent
study of Marxist theories, of the past and present in China and abroad, and
of the different branches of the natural and social sciences." The field
of theoretical study is very extensive and we should not neglect any aspects
of the field. However, taking theoretical work as a whole, it is imperative
to constantly pay attention to the focal point or core. There are now some
comrades who say that "the farther away from the current reality the better"
and "the farther away from politics the better." This ideology and ten-
dency is unfavorable to theoretical work as a whole and to the development
of specific science. The vitality of Marxist theories precisely lies in
their close relations with reality. Marxist theory will become ossified if
it is divorced from reality and if it is not applied in studying issues that
urgently need to be solved in reality. Therefore, the numerous theoretical
workers should have the courage to surmount all difficulties and probe into
new situations and issues that our predecessors never met before.
It is also imperative for the theoretical workers of the party to work in
the communist spirit, to regulate their words and actions with communist
ideas and morality and to preserve the purity of communism. Our party has
achieved great successes in the communist movement and has entered socialist
society which is the initial stage of communist society. However, the tasks
of revolution are still far from being accomplished. We need the concerted
efforts of the people of all nationalities throughout the country, espe-
cially all the party members, to push the movement forward. This makes it
necessary to conduct communist education among the party members and the
people. Theoretical work, fundamentally speaking, is to arm the party mem-
bers and the people with communist ideology by means of explaining and
publicizing communism. It is imperative for the educators to receive
education beforehand. Only by applying communist ideology in observing and
handling all problems and by preserving the purity of communism will it be
possible for the theoretical workers of the party to educate others.
Therefore, the theoretical workers of the party must conscientiously study
and grasp Marxism-Leninism-Mao Zedong Thought and, while transforming the
objective world, transform their own subjective world. Class struggle still
exists in our country and there is constant corrosion by bourgeois ideas
internationally. It is a sacred duty of the theoretical workers of the
party to wage struggles against various non-Marxist erroneous ideas. Com-
munist ideology is the most revolutionary and scientific truth in the world.
Only by taking communist ideas as a guide will it be possible for the
theoretical workers of the party to have,a firm stand, have a clear insight
and.make due contributions to the development`,,bf Marxism. If we discard
communist ideology and principles, and;[d vorca'o1rtelves from social practice
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in an attempt to "discover" and "create" new theories, we are bound to take
to evil ways.
The party and the people place high hopes on theoretical. work. The
theoretical workers of the party have been entrusted with heavy responsi-
bilities. In the infinitely rich and lively'practice of the socialist
modernization drive, so long as the theoretical workers of the party
conscientiously study and grasp Marxism-Leninism-Mao Zedong Thought, face
up to reality, uphold the principle of integrating theory with practice
and work in a down-to-earth manner, they will surely be able to live up to
the great expectations of the party and the people. Let us push forward
the party's theoretical work with one heart and one mind along the course
charted by the CCP Central Committee!
CSO: 4004/41
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TURN TO SCIENCE IN ACQUIRING SKILLS, TAKE EXPERTS AS OUR TEACHERS
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 9-12, 41
[Article by Hao Jianxiu [6787 1696.4423]; passages enclosed in slantlines
printed in boldface]
[Text] Editor's note: We recommend this article to our
leading cadres, and particularly to the newly promoted
young and middle-aged leading cadres. In the course of
realizing the socialist modernization program there are
quite a few problems confronting us and the situation
is relatively complicated. How should we exercise
leadership over the work of a department or a front?
What and how should we stress? This is a problem
which the vast numbers of cadres and the masses pay
close attention to. The comrades who shoulder the
responsibilities of leadership must have revolutionary
courage and professional knowledge. They must not only
modestly and arduously study but also work in a dili-
gent and down-to-earth manner, immerse themselves among
the masses, go deep into the realities of life, seek
truth from facts and be free from arrogance and rash-
ness. They must open up new prospects and blaze new
trails with full confidence. In her article, Comrade
Hao Jianxiu recorded and narrated her gains and appre-
ciations in this respect in a plain and vivid way.
Instead of taking "a shortcut," she turned to science
in acquiring skills, took experts as her teachers,
familiarized herself with the required professional
knowledge and scientific management methods step by
step, and personally went to the forefront of produc-
tion to acquire firsthand materials, attentively
listened to the various kinds of opinions, then
started studying and solving the problems and thus had
the initiative in her hands in her work. If the lead-
ing cadres at the various levels earnestly study and
conduct investigations and study--ri sitch a way, they
will acquire more knowledge, have:..a..clearer picture of
the situation, gain richer expetienc , t$fsethe
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efficiency in doing their work and the level of the art
of leadership and achieve greater success in their work.
What Comrade Hao Jianxiu has accomplished the other
comrades can also accomplish.
A leading comrade of the CCP Central Committee recently pointed out: "Turn
to science in acquiring skills. Take experts as our teachers. These two
remarks should become a slogan of action." This is of great significance to
the vast numbers of cadres for grasping modern science and technology and
scientific operational and management methods, broadening their field of
vision, enhancing their abilities and following the objective laws in doing
their work well and has pointed out the correct way leading to being more
knowledgeable and specialized. Here, in the light of the development of
China's textile industry and the course of my personal growth, I would like
to discuss my understanding and gains and appreciations in this respect.
China's modern textile industry has been developing for more than 100 years.
Through the 32 years of the socialist transformation and socialist construc-
tion after the founding of the PRC, China's textile industry has gradually
developed into an industrial department with its own complete range of
divisions and bases for the domestic supply of raw materials and equipment
and has a certain level of production as well as science and technology.
Relying on correct policies, on the use of science and on arduous struggle
is the basic experience in developing our textile industry. Compared with
the early stage of the founding of the PRC, the production capacity of the
textile industry throughout the country has now gone up by more than 200
percent and its output value has risen by at least 700 percent; its output
of spun yarn for every 1,000 spindles per hour has increased from 20 kilo-
grams to 40 kilograms and the mending capacity of a spun yarn operator has
increased from 400 spindles to 2,000 spindles. This is mainly the result
of the efforts of the vast numbers of workers and technical personnel to
give play to their initiative and creativity, to apply science and tech-
nology to transforming equipment and improving technology and to sum up and
popularize scientific operational methods. Stalin said: If the working
class "does not grasp science and is not good at managing the economy in
accordance with scientific principles, it cannot possibly become the real
master of the country." ("Collected Works of Stalin," Vol 11, p 64) The
improvement of textile product quality, the increase in varieties of
product designs, sizes and colors, the reduction in consumption., the
betterment of working conditions and the improvement of labor productivity
are all directly related to the adoption of advanced science and technology
and scientific management methods. A host of facts have proved that rely-
ing on the use of science and technology and on scientific management can
accelerate the development of the textile industry. From now on, we must
further develop the production-of the textile industry and still give con-
sideration to the adoption of modern science and technology and strengthen
scientific management rather than giving sole consideration to expanding
the scope of production. We must combine the two together, really manage
to promote the development of production and construction by developing
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science and technology and strengthening scientific management and, at the
same time, in accordance with the needs of production and construction,
propel science and technology forward and enhance the scientific nature of
the work of management.
To develop the production of the textile industry by relying on the use of
science and technology, we must start with what is of basic importance, that
is, start with the basic construction of the management of the three major
techniques of equipment, technology and operation. The quality of the basic
work of technical management is the major manifestation for measuring the
technical level and managerial skills of an enterprise and even a trade and
also the basic condition for increasing the product quality and the varieties
of product designs, size and colors. For a considerable period of time in
the past, owing to the obstructions of "leftist" guiding ideology and as the
result of blindly concentrating on output value and putting one-sided empha-
sis on speed, a section of people. have despised science and technology, and
looked down on the basic construction of the management of the three major
techniques, thus causing serious harm to production. Things have taken a
great turn for the better in the last few years of rectification but this
problem has not yet been solved completely. There are still some people
who are unwilling to exert themselves in grasping the basic work in an
earnest and down-to-earth manner. It must be acknowledged that without
intact equipment, rational technology and perfect mastery of operational
techniques, fundamentally, one cannot begin to talk about changing the
product mix and developing new products. This is the vital reason why some
enterprises have failed to effect an upswing in production. Over the last
2 years, we have further devoted our energy and time to this work and thus
achieved quite satisfactory results. We must in future continue to pay
close attention to it. So far as an enterprise is concerned, technical
management is the basic skill. In the course of marching toward science,
first of all we must have a thorough and solid training in basic skills.
Since.the 3d Plenary Session of the 11th CCP Central Committee, the textile
industry and its affiliated organizations have conducted the helping and
learning activities for learning from Shanghai, from coastal areas and from
the advanced. China's textile industry already has a certain technical
force and has reached a considerably advanced level in some aspects but
generally speaking, compared with the international levels, it still has a
long, long way to go. The difference of technical forces in the regions of
the hinterland is also very wide. Therefore, on the one hand, we must
learn from the foreign advanced science and technology and operational and
management methods and, on the other hand, continue to do a good job in
conducting the helping and learning activities among the internal regions
and transfer the advanced science and technology and operational and
management methods of Shanghai and other areas to the hinterland. Shanghai
is the old base of. China's textile industry and has a comparatively high
level of technology and management. Compared with the initial stage of the
founding of the PRC, the number of spindles and weaving machines of Shanghai
.in 1980 decreased by 16 percent and 10'percent respectively but its total
output value increased by 630 percent; the taxes and profits it produced
increased by nearly 860 percent and most of its products were for sale abroad.
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The development of Shanghai's textile industry mainly depends. on developing
science and technology and enhancing scientific management rather than
depending on expanding the scope of equipment. Since 1979 when Wuhan
learned from Shanghai, its total output value during the last 3 years has
been doubled or redoubled; the profits which it produced increased by nearly
200 percent; the accumulation showed a yearly average increase of 34.6 per-
cent; the profits it handed over to the state increased at an average rate
of 35.9 percent and the profit rate of every 100 yuan's worth of output
value increased from 11.13 percent to 16.58 percent. Apart from the helping
and learning activities which were carried out between different regions and
between different enterprises, we have further conducted helping and learn-
ing activities between different trades. The woolen spinning trade learned
and transplanted the technical and management experience of the cotton
spinning trade. Judged from the achievements already obtained by Shanghai,
Jiangsu Province and other regions, this practice can increase production
efficiency by 5 to 10 percent. During the 3 years since the 3d Plenary
Session of the 11th CCP Central Committee, the total national textile indus-
trial output value has showed an annual average increase of 18.1 percent and
the taxes and profits produced increased at an average rate of 17.54 percent
a year. The immense role which the helping and learning activities have
played in summing up and popularizing advanced experience and in promoting
the development of production fully embodies the unique superiority of the
socialist system. Both the advanced experiences of Shanghai and the coastal
areas and the progress and successes which have been made by the various
localities by learning from these experiences have forcefully shown that the
reliance on developing science and technology and the adoption of scientific
management methods are the only way for realizing the modernization of the
textile industry.
In the very year when the PRC was founded, I entered a factory and worked
there as a spun yarn operator. Semi-illiterate, I was only 13 years old at
that time. Through the democratic reform of factories, the workers have
become the masters of the factories.and give play to a high degree of
initiative and creativity for production.. Between 1951 and 1953, the
textile workers created a working method in the three major fields of spun
yarn, weaving and maintenance. The summarization and popularization of
this working method in the three major fields kindled a great mass fervor
among the vast numbers of workers and technical personnel for studying and
applying scientific principles to improving the work and forcefully promoted
the development of science and technology in the textile industry. I was
sent to school to study by the party organization concerned in 1954. It.
took me 9 years to finish courses which had to be finished within 12 years'.
During this period, whenever the NPC was convened and Comrade Zhou Enlai met
with me, he would kindly ask me about my studies and encourage me to study
scientific and cultural knowledge hard, to win glory for the working class
and to make greater contributions to socialist construction. After I
graduated from the East China Textile College in 1962, I returned to my
factory and successively assumed the office of a technician, engineer, vice
factory director and factory director, and was on the municipal and
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provincial party committee and engaged in a certain field of work there.
At the beginning of 1978, I was assigned to work in the Ministry of Textile
Industry and took up the post of vice minister and minister in succession.
Looking back at the course which I have traversed, whenever I took a new
post, I would invariably be confronted with many new tasks. The greater the
responsibilities I undertake and the wider the range of things I encounter,
more numerous and more important the problems which call for solution become.
It is obvious that with my former knowledge and abilities, I will be unable
to suit myself to the needs of the new situation. Therefore, I must study
hard, turn to science in acquiring skills and arm myself with scientific
knowledge. My practice is that wherever I go, I genuinely and sincerely
learn from the experts there. My teachers are many. They include capable
operators and workshop technical personnel, school teachers and classmates
who have done well in their area of studies, engineers and factory directors
who have rich experience in production techniques and enterprise management,
specialists who have a relatively wide range of scientific knowledge and high
level of professional skills and senior cadres who are well experienced in
leading economic work. On modern enterprise management and industrial
economic management as a branch of science, there are a large number of
theoretical works and practical reference materials both at home and abroad.
Under normal circumstances, every night I always selectively read some of
them and benefit considerably from them. The authors of these works and
materials can also be said to be my teachers whom I have never seen. With
the enlightenment and help of these many experts and teachers, I have con-
stantly familiarized myself with new conditions, kept abreast of new situa-
tions, studied and solved new problems and thus adapted myself to the needs
of work as early as possible.,
I have the following gains and appreciations from my study:
/Pay attention to the accumulation and application of knowledge./ Learning
from the experts is generally carried out when we come into contact with
them at work. Knowledge and experience are acquired and gained bit by bit.
This knowledge accumulated bit by bit is like bits and pieces of gold and
jade. It definitely must not be allowed to be lost easily. A man's
knowledge always develops from a. little to a lot and is gradually accumu-
lated. We must have the spirit of sifting grains of gold out of the sand
and not despising small things rather than seeking to have a gold doll in
a short while. I learned skills from my master worker for 3 months after
I entered the factory. When I was assigned to be an operator, I was asked
to mend 300 spindles while others were assigned to mend 200 spindles. I
deemed it as confidence in and encouragement to me and I was resolved to
mend the 300 spindles well. At that time I was still very young and a new-
comer as well, so I paid attention to learning from others at any time and
anywhere and learned from others' strong points to offset my weaknesses.
There are many actions in the spun yarn operation. I would learn from
those who excelled in any actions and mastered the skills which were really
up to the mark. I pooled the strong points of many workers in their opera-
tions bit by bit, then carefully refined and improved them while applying
them to practice and again brought together and thoroughly understood the
various actions and strived to find out the best method for mending spun
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yarn machines in the light of the experience and operational laws which I
had found out. Through 2 years of practice and exploration, eventually a
set of spun yarn working methods (that is, the Hao Jianxiu work method--
Editor's note) took shape. Later my post in work constantly changed but
this method for accumulating and applying knowledge has always been useful
to me. In 1964, the Communist Youth League Central Committee organized us
to watch the military training carried out by the units under the Beijing
command. Greatly inspired by the sight, with deep feeling I said: "If we,
textile workers, have a perfect mastery of basic skills as the army does,
then we can produce any varieties of products whatsoever." At that time,
Comrade Hu Yaobang said to me: "Well said! You must really have a perfect
mastery of such skills!" Up to now, I have always remembered this remark
of his.
/Have a focal point in study for a certain period of time./ The development
of science and technology as well as economic construction has continuously
posed new problems to us. If we fail to study and master the required
scientific and technical knowledge as quickly as possible, we will be power-
less in the face of new things. After I worked in the Ministry of Textile
Industry, I listed the production know-how of chemical fibers as the focal
point of my study. The chemical fiber industry is a developing industry in
China, which has bright prospects for development. The production of
chemical fibers ranging from petroleum, natural gas and calcium carbide to
the various kinds of chemical fibers involves a series of chemical indus-
trial techniques. I was a perfect stranger in this respect and so I had to
honestly study rather than pretend to understand what I actually did not.
Consequently, I energetically tackled the key problems in the knowledge of
chemical fibers with the drive which I had when I was in a crash-course
middle school in the 1950's. On the one hand, I studied the basic knowledge
of chemical fiber specialization and on the other hand, I concurrently paid
attention to making more contacts with the production of chemical fibers in
the work, understood its history and present conditions and tried to parti-
cipate in the investigations and study of the production of chemical fibers
and the activities for making technical and economic deliberations of the
construction projects of chemical fiber. I was once in the Shanghai
Petroleum and Chemical General Works. I made use of the leisure of "May 1"
labor day and invited an engineer as my teacher who, along with the whole
technical production process, explained to me while visiting and gave me
half a day of on-the-spot technical training. Through a period of study
and intensive study, eventually I managed to familiarize myself with the
production know-how of chemical fiber.
/Lay stress on digesting and assimilation./ I have realized that in learn-
ing from experts, we must not only be modest and prudent and respect them
but what is more, use our brains, seriously think things out, digest what
we are learning and assimilate nourishment from it. After the beginning of
the second phase of the construction projects of the Shanghai Petrochemical
General Works, a debate arose centering on the question of whether the com
plete sets of equipment of polyester staple fiber with a capacity of 15,000
tons should be imported or should be designed and manufactured domestically.
Proceeding from different angles, the experts stuck to their own views and
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argued strongly on just grounds. We invited the experts from the quarters
and sides concerned, such as research, design, manufacturing and applica-
tion to attend an on-the-spot meeting in the works and let those who held
differing views make full deliberations, after which we then pooled the
rational opinions and summed them up into a technically advanced and
economically rational method. Finally, all participants unanimously agreed
that we should base ourselves on domestic design and manufacturing and
expressed that they would support .one another, make concerted efforts to
make contributions in developing national industry and breaking a new path
in which national efforts will be made to manufacture and form a complete
set of large-scale equipment. This activity of comprehensive technical
and economic deliberations has enabled the differing views to gradually
become identical, with the whole process of the activity being strict and
precise. Both the technical and economic experts regarded the activity as
a fairly good exchange and learning. So far as I am concerned, it is the
best sort of learning. I have come to realize that in taking experts as our
teachers, we cannot but discard our haughty airs and must not gulp them
down without thought. When we are confronted with problems of which we
have no clear and thorough understanding, we must use our brains more. We
must not be afraid that differing ideas and views may emerge for differing
views **can frequently help us further weigh the advantages and disadvantages
as well as the gains and losses and approach and handle the problems in an
overall manner.
/Constantly study and be bold in making innovations./ Modern science and
technology is developing at a rapid pace. With the progress of the mod-
ernization program, in the path of becoming more knowledgeable and
specialized, the cadres must steadily make progress, otherwise they will
fall behind. Now the livelihood of the masses of the people has improved
and there are higher demands on textile products. The production of the
textile industry must adapt itself to this situation, expand consumption
through providing the market with textile products of a great variety, and
of the latest designs, sizes and colors which are of high quality and
reasonably priced, and manage to make them marketable. This requires us to
constantly study and improve production techniques and raise the operations
and management to a new height. Even the cadres who are trained profes-
sionals, basically proficient in professional work, and have a fairly wide
range of knowledge and rich experience also have to study without slacken-
ing. The comrades who have a good professional foundation can make greater
progress in their studies and those who have a poor professional foundation
must have the death-defying fighting spirit and try hard to catch up. To
turn to science in acquiring skills, we must further emancipate our minds
and be bold in blazing new trails. With the help of experts, we must master
the scientific and technical knowledge of our predecessors and with the
close cooperation of the experts, further develop and create new science
and technology. The process of learning is a process of exploring and
creativity without slackening.
/Learn from local cadres and grassroots cadres./ At any time we must not
overlook such a basic reality: those who take root among the people are
local cadres and grassroots cadres and those who directly lead the textile
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workers in fighting in the forefront of production are also local cadres
and grassroots cadres. The relationship between the comrades who work in
the central departments and the cadres of the localities and enterprises is
both a relationship between the leader and the led and a relationship
between the pupil and the teacher. Practice has proved that only when we
first serve as good pupils, can we then become good leaders and only when
we fully understand what is going on at the lower levels, can we better
integrate the decisions of the CCP Central Committee closely with the
actual conditions of the various localities and grassroots enterprises and
proceed to offer them guidance in ways that are suited to local conditions
so as to enable the various localities and enterprises to develop advantages
while avoiding shortcomings, bring their-respective strong points into play
and develop production. In the first 3 years after I worked in the Ministry
of Textile Industry, I spent two-thirds of my time staying in the localities
and enterprises to gain firsthand experience and conducted investigations and
study. When a unanimous view cannot be reached at the higher levels through
discussions on some major problems of a decisive nature, it is advisable to
go to the lower levels and extensively heed their opinions. This will not
only contribute to a correct decision but also bring us a great deal of
enlightenment. Elder sister Chen Shaomin exhorted me: You must have at
heart the well-being of the 800 million peasants and bring the cloth which
your factories produce to the countryside and heed the opinions of the
peasants. When I worked in a factory, I often went to the rural areas to
conduct investigations there. Last year the Ministry of Textile Industry
organized product-investigation groups which were sent to the rural areas of
Shandong, Anhui, Liaoning, Hubei and Hunan Provinces, the pastoral areas of
Nei Monggol and the residential quarters of the staff and workers of Anshan
to find out the needs for textile products of the peasants, herdsmen and
workers. Together with the comrades in the ministry, I went to the areas
inhabited by the minority nationalities in Guizhou and Yunnan Provinces and
investigated the needs of the minority nationalities for specially needed
textile products, gained firsthand materials and broadened our field of
vision. In our work, we have paid attention to the social characteristics
of our country being a multinational country, listed the developing of the
production of textile products specially needed by the minority nationali-
ties in the plan and solved this problem step by step and have thus achieved
quite satisfactory results.
I deeply feel that my growth is not unconnected with the spirit summarized
in the two remarks: "Turn to science in acquiring skills, take experts as
our teachers." To continue to march ahead in the future, I must further act
according to these two remarks. We, cadres who hold leading posts, must not
only study well ourselves but also bring along the staff and workers of our
own department and its affiliated organizations and enterprises to tackle key.
problems together and make it a regular practice to diligently study and be
bold in scaling new heights. In this way, we will be able to take the
initiative in our work, make a new step and open.up new prospects. We, the
4.8 million textile workers, must become a mighty contingent which marches
toward science, strive to improve our own political quality and scientific
and technical level and make new contributions in providing clothing to the
1 billion people.
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THE FUNDAMENTAL TASK OF PARTY BUILDING IS TO INCREASE THE PARTY'S FIGHTING
CAPACITY
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 13-15
[Article by Li Lian [2621 0500 1344], second secretary of Heilongjiang
Provincial CCP Committee]
[Text] Since the 3d Plenary Session of the 11th CCP Central Committee, the
CCP Central Committee has laid down a correct line, principles and poli-
cies. Now, with the major principles and policies decided upon, the main
task is to implement them. To implement them, the party organizations at
all levels must have very great fighting capacity. If the party organiza-
tions do not have a great fighting capacity, they cannot implement the
party's correct line, principles and policies and can achieve nothing.
We consider improvement of party fighting capacity as the primary mission
of party building. This is determined by the'party's nature as the van-
guard force of the proletariat and by the historical mission which it
undertakes. Our party was born and fights for the ultimate realization of
the great ideal of communism. During the democratic revolution, it led the
people of the whole country in fighting bravely to overthrow the three big
mountains of imperialism, feudalism and bureaucratic capitalism. After
seizing political power of the whole country, it continued to lead the
people of the whole country in fighting doggedly to carry out the socialist
revolution and construction. For this reason, the party has enjoyed lofty
prestige among the broad masses. In a sense, the party is capable of lead-
ing the people only when it has fighting capacity; if it loses its fighting
capacity, it will also lose its prestige and the value of its existence.
As Lenin said, the party should be "an organization of the fighting prole-
tariat." (Lenin: "Collected Works," Vol 21, p 188) The party's fighting
capacity is a comprehensive reflection of the total outcome of party build-
ing. The various branches of work concerning party building should be
manifested in the increase of the party's fighting capacity. Fighting
capacity is concrete and real and is closely related to every party member
and every party organization. In a unit, the party's fighting capacity is
manifested chiefly in the role of the party committee as the core and
leader, the role of the party branch as a fighting bastion and the role of
the party members as vanguards and models. These three roles are the main
criteria for testing whether a unit has a strong fighting capacity. Until
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this point is clarified, the work of strengthening party building will be
carried out blindly and not in the right way.
Our party's fighting capacity was greatly weakened during the decade-long
internal disorder of the "Great Cultural Revolution." Great efforts and
the course of time are needed to recover the party's fighting capacity.
But, we are capable of and have full confidence in solving the problems.
Guided by the party's correct line, principles and policies since the 3d
Plenary Session of the 11th CCP Central Committee, our provincial committee
has done some work to increase the party's fighting capacity and-has
achieved positive results. First, the discussion on practice as the only
criterion for testing the truth has been carried out penetratingly and the
fetters of the "two whatevers" have been shattered, thereby rectifying the
ideological line, correcting the "leftist" mistakes in a number of.major
issues and. redressing cases in which people were wronged, misjudged or
framed. Second, while efforts are made to correct the "leftist" mistakes,
attention is being paid to opposing the tendencies toward bourgeois lib-
eralization and persisting in fighting on the two fronts. Third, cases of
serious economic crimes and cases involving degenerate elements and those
who have lost the integrity of communists have been handled relentlessly
and discussed extensively among party members and cadres, so that all are
educated. Fourth, the party members have been trained three times in rota-
tion with the (draft revised) "Constitution of the CCP," the "Guiding
Principles for Inner-Party Political Life" and the "Resolution on Certain
Questions in the History of Our Party Since the Founding of the PRC" as the
main content of study and discussion, a strict system governing organiza-
tional life has been set up from the provincial CCP committee to the party
branches at the grassroots level, and criticism and self-criticism have
been actively carried out, thereby helping the party members to increase
their ideological consciousness and their sense of organization and dis-
cipline. Practice shows that it is possible to quickly restore our party's
fighting capacity to the highest historical level provided we seriously act
according to the line, principles and policies laid down by the CCP Central
Committee.
To increase the party's fighting capacity, it is necessary to realistically
solve the problems existing inside the party. As seen from the problems
reflected in the rotational training of party members and the experiments
on party rectification in our province in the past 3 years, the conditions
in the following five aspects deserve close attention: The first aspect
concerns the strengthening of the party's centralism and unity. Only when
the party achieves unity in will and action will it have fighting capacity.
Our investigation shows that very few people openly oppose the party's line,
principles and policies but quite a few people have not implemented them
seriously and vigorously. Some of them have not studied them seriously and
understood them deeply but have just copied them and transmitted them to
other people. Others just take what they need, acting on what they like,
disregarding what they dislike and even persisting in their own ways of
doing things. Still others shut their eyes to a few people's misdeeds and
discontent and even chime in with them instead of actively working on them
by the method of persuasion and education. The second aspect concerns the
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rectification of the party's work style. At present, some party members
and cadres are imbued with decadent capitalist ideas. Some of them hanker
after personal gains, are preoccupied with personal gains and losses and
"look at everything in terms of money." The unhealthy practice of seeking
personal gains by exercising one's functions and powers prevail in some
units. Some people have misappropriated public funds to build houses for
themselves. Others have exploited their offices to assign jobs to their
relatives and friends. Still others violate financial discipline or engage
in extravagant eating and drinking at public expense. A few people have
even gone to the extent of extorting money and gifts from others, taking
bribes, committing theft, carrying out smuggling, trading in smuggled goods,
and engaging in speculation, profiteering and other serious crimes. The
third aspect concerns heightening the sense of principle and raising the
fighting spirit. The question of weak and lax leadership should be solved
continuously. Some leading cadres evade contradictions and make no effort
to criticize and combat the undesirable tendencies. In some units, the
healthy tendencies have not been promoted and the people who uphold prin-
ciple and work hard have not received support but have been isolated. Some
people hold that "one who does not get along well with others can achieve
nothing." For this reason, they never offend others but try to be agree-
able, to please others and win their favor. The fourth aspect concerns
strict party discipline. In enforcing discipline, some people have been
overlenient, trying to turn big problems into small ones and small problems
into no problem at all. They do not make criticism when they are required
to do so. They do not handle problems which need to be handled. In par-
ticular, they make no effort to handle and investigate the cases of viola-
tion of law and discipline involving the leading organs and cadres. The
fifth aspect concerns enhancing revolutionary enthusiasm. Some comrades
are not devoted to their work and lack the desire to do better. They just
want "higher positions, easier jobs, higher salaries and more spacious
houses for themselves and better assignments for their children." They
remain idle, are dilatory in work, dispute over trifles and therefore are
inefficient. All these are major problems hindering the implementation of
the party's line. In units where party consolidation was carried out, these
problems have been solved and therefore the party's fighting capacity has
been increased. The experience of these units shows that first of all we
must have the determination and courage to break through all obstacles and
expose and solve problems. In the second place, we must proceed from
reality to make a breakthrough at selected spots and to concentrate our
effort to solve the problems which greatly impair the party's fighting
capacity and which the masses urgently need to solve. In the third place,
we must adopt clear-cut and reliable policies, focus our attention on
education and carefully mete out penalties for the few people who are
involved in serious cases, so that we can practically solve the problems.
To increase the party's fighting capacity, we must proceed from the grass-
roots level and give the party members general training and systematic
education. By analyzing the party members' conditions, we can see that a
very important cause of problems of one sort or another in the party is
that the political quality of the party members is not so good as before
the "Great Cultural Revolution." To have better political quality, the
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party members must receive ideological education and undergo training in
practice. Without receiving systematic education and undergoing rigid
training in inner-party life, a well-chosen successor cannot become a
communist with excellent political quality. In particular, the small
number of party members who were admitted during the decade of internal
disorder do not know clearly what the duties of a communist are, why they
entered the party and how to be a qualified party member. It is difficult
for them to play the role of a vanguard and model. For this reason, it is
all the more necessary to educate them intensively so that they will
improve their political quality. Some units have worked very well in this
aspect. Their experience is chiefly: To intensively study the basic
knowledge of the party for a period of time, to conduct education in the
party spirit, the party's work style and party discipline and in particular
to clarify the demands on a communist, so that the party members ideologi-
cally set demands on themselves as a communist and act according to the
demands on a communist. "Setting demands on oneself" means: Knowing what
the demands on a communist are, knowing why these demands are necessary,
knowing one's shortcomings and knowing what one should do in the future.
"Acting according to demands" means: Starting with oneself right now in
whatever one does and taking solid action to narrow and fill the gap
between oneself and the demands on a communist. In educating party mem-
bers, emphasis should be laid on integrating theory with reality and the
party members should be helped to measure themselves by the demands on a
communist and by the method of dividing one into two, so that they will see
where they have qualified and where they are lagging behind. Efforts
should be made to arouse the party members' consciousness so that they will
sum up experience individually and help each other. The party members call
this the method of "using one's knife to shape one's target" and "gen-
erating heat from inside." In some localities, party members with better
educational backgrounds are first organized to study the fundamental
theories of Marxism-Leninism-Mao Zedong Thought, Chinese history of the
past century and the history of the party, so as to raise the standard of
the party members by starting from the basics. These basics are used to arm
the minds of the party members permanently and fundamentally, so that the
party members will firmly establish the proletarian world outlook and
believe in the realization of communism. In this way, the party members
will play their role better as the vanguard and as models.
The course of increasing the party's fighting capacity is actually a course
of continuously resolving the contradictions inside the party. There are
various kinds of contradictions and struggles inside the party. Without
these contradictions and struggles, the party will become lifeless. The
party has advanced continuously in the course of resolving these contradic-
tions. The contradictions inside the party are chiefly those between the
proletarian ideology and the nonproletarian ideology, those between correct
and wrong ideas in work, those between the party's fine styles of work and,
the various unhealthy practices, and so forth. Criticism and self-criticism
are a powerful weapon to resolve these contradictions. The conditions in
our province show that party organizations which are permeated with a strong
atmosphere of criticism and self-criticism invariably have greater fighting
capacity. There, the party members correctly understand what criticism and
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self-criticism mean. They realize that criticism and self-criticism inside
a leading group reflects the strong vigor of this leading group, that making
realistic criticism of others reflects a communist's sense of responsibility,
that the criticism by other people reflects their trust in and concern for
the one who is criticized, and that making serious self-criticism reflects
one's high consciousness. For this reason, they speak frankly and sin-
cerely, express their opinions and put problems on the table without being
swayed by their emotions and without interspersing their comments with
biased opinions. They seek truth from facts, recounting the shortcomings
and mistakes without exaggeration or reservation. They neither obliterate
one's achievements on the grounds that one made mistakes in the past nor
gloss over one's mistakes on the grounds that one made achievements in the
past. They welcome criticism and do not feel ill at ease at the mention of
criticism or regard criticism as "a punishment." Once the weapon of criti-
cism and self-criticism is upheld, the healthy tendencies will be promoted,
the undesirable practices will be checked, and the front of nonproletarian
ideas, including feudal and bourgeois ideas, will diminish continuously.
We must unswervingly implement the policies of opening the door externally
and enlivening the economy internally. But, we must not give up the party's
leadership even slightly. We must not slacken ideological and political
work, relax the regular activities of party organization or waive the strict
demands on a communist. We must be much more vigilant against the attack of
sugar-coated bullets than we were before we moved into the cities, To do
so, we should sweep away the political dust on our bodies by means of
criticism and self-criticism. In localities where experiments on party
rectification have been conducted and party organizations have been con-
solidated, stress is put on establishing the system of democratic life with
criticism and self-criticism as the content.
The key to increasing the party's fighting capacity lies in building and
consolidating the leading groups and organs. A leading group is the head-
quarters in command of our work. Whether it has a great fighting capacity
will have direct bearing on the development of our cause. The leading
cadres are vested with functions and powers. Their words and deeds will
directly affect the party's prestige, the relationship between the party
and the masses, the party's work style and the general mood of society.
In a sense, increasing the party's fighting capacity chiefly means increas-
ing the fighting capacity of the leading groups at all levels. For this
reason, we stress that high demands should be set on the leading groups so
that they will take the lead in carrying out study, making criticism and
self-criticism, overcoming shortcomings and carrying forward the party's
fine. style of work. We have learned from practice that in building the
leading groups, attention should be paid simultaneously to replenishing
and consolidating them organizationally and to developing them ideologically
so that they will be more and more revolutionized, increasingly younger and
more and more knowledgeable and professional and can assume the heavy task
of leading the four modernizations. Since 1980, by the method of recom-
mendations by the masses, inspection by the party organization and approval
by the leadership, we have selected a group of distinguished middle-aged
and young cadres and promoted them to the leading groups at various levels.
At the same time, in line with the spirit of keeping the basic political
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treatment unchanged and giving a little more preferential treatment in daily
life, we have properly arranged the political, material and cultural lives
of the old cadres who have retreated to the second or third line. In order
to enhance party spirit, rectify the party's work style, unify understanding
and strengthen unity and in line with the principle of democratic centralism,
we have instituted the dual organizational life [shuang chong zu zhi sheng
huo 7175 6850 4809 4930 3932 3172] system for leading cadres at and above
the county level. All these have been conducive to increasing the fighting
capacity of the leading groups. Since the end of last year, our province
has extensively grasped consolidation of the leading organs at and above
the county level with emphasis on those directly under the provincial
authorities. We stress that the leading organs, the leading cadres, the
party members and the functionaries behave in the way they should, so that
the organs will serve the people wholeheartedly and work efficiently.
After the consolidation, the situation of weak and lax leadership has
changed for the better, some leading groups have begun to get rid of dis-
unity and improve their thinking and work style, and order has begun to be
restored in the organs. The current consolidation of organs is just the
prelude. On this basis, an all-round consolidation and comprehensive
tackling of problems has been under way in stage and groups. As a result,
the leading groups have smaller but better staffs, the organs are stream-
lined, bureaucracy has been overcome and work is carried out more effi-
ciently. The consolidation of the leading groups and organs will promote
the consolidation at the grassroots level, thereby increasing our party's
fighting capacity in an all-round way.
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ON IMPLEMENTING ECONOMIC RESPONSIBILITY SYSTEMS IN INDUSTRIAL ENTERPRISES
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 16-20
[Commentary by An Pingsheng [1344 1627 3932]]
[Text] I
The implementation of economic responsibility systems by industrial enter-
prises represents an important reform of the industrial management system.
Comrade Zhao Ziyang said in his report "The Present Economic Situation and
Guiding Principles for Future Economic Construction": "The main shortcom-
ings in our economic system in the past were that with regard to management,
decisionmaking power was excessively centralized, with no difference
between politics and administration while the distribution was characterized
by eating out of the same big iron rice bowl and egalitarianism." I think
these words exposed the general shortcomings of our socialist. enterprises.
Over a long period in the past, these two big shortcomings have seriously
deflated the initiative of enterprises and their staff and posed obstacles
to the development of social productive forces. The implementation of
economic responsibility systems over the past few years has provided impor-
tant experience for solving this problem. That is to say, in handling the
relationship between enterprises and the state, enterprises must be given a
certain autonomy within the limits of state planning. Under the principle
of ensuring the completion of state planning and in handling the relation-
ship between enterprises and their staff, the staff must have proper
,materialistic interests under the prerequisite of strengthening ideological
and political work and by following the distribution principle of from each
according to his ability and to each according to his work.
For more than 3 years since Yunnan Province experimented on expanding the
autonomy of enterprises in March 1979, and following the implementation of
economic responsibility systems, the province has experienced a tortuous
path and yet it has persisted on this road. On many occasions, I inspected
the development of the enterprises that have implemented economic respon-`
sibility systems and I felt the importance and urgency.of eliminating the
two big shortcomings in. our socialist enterprises through implementing
economic responsibility systems. A number of industrial enterprises in the
province have been successful in implementing the economic responsibility
systems. Following is a brief introduction to the encouraging changes of
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the Yunnan Metallurgical Plant. This plant has 3,600 staff and is pro-
ducing 21 varieties of products such as electrolyzed copper, sulphuric
acid, silver, gold, palladium, platinum, industrial selenium, indium,
cadmium and bismuth. Since the second half of 1979, the state has imple-
mented the method of base profit plus retention of extra profit in this
plant and this has continued for a period of 3 years. The plant itself
mainly carried out the method of assigning production tasks among the work-
ers with their workpoints being recorded for awards. In 1981, the output
value of this plant reached 295.71 million yuan, 60 percent higher than
1978, with the profit amounting to 21.83 million yuan, an increase of
220 percent over the figure for 1978. In the 3 years from 1979 to 1981,
the plant recorded a total profit of 46.91 million yuan. Of this 37.77
million yuan, about 80.5 percent, was handed over to state financial
departments; enterprise retention was 9.14 million yuan or 19.5 percent
and staff awards were 1.47 million yuan or 3.1 percent. In the 3 years
between 1979 and 1981, this plant allocated 5.09 million yuan of produc-
tion funds and 10.73 million yuan of maintenance funds and renewal and
reform funds from enterprise retention and used 4.61 million yuan of bank
loans, totaling 20.43 million yuan, as capital for carrying out 505 projects
of technical reform and technical renewal in a planned way. Of these pro-
jects, 138 were completed in 1979 to increase output value by 900,000 yuan
and increase tax profit by 1.05 million yuan; in 1980, 163 projects were
completed to increase output value by 1.77 million yuan and tax profit by
3.8 million yuan; in 1981, 204 projects were completed to increase output
value by 33.11 million yuan and tax profit by 6.99 million yuan. This
plant also used the funds it has raised for building staff living quarters,
school buildings and bathhouses with a total floor space of 20,864 square
meters. This situation made me think: Would it have been possible to
accomplish so many things in the past when the financial method of
monopolizing revenue and expenditure was implemented, when construction
planning had to be approved by one department after another and when enter-
prises had neither autonomy nor money and workers were not enthusiastic
in their work? No, it would not have been possible. In the past, we asked
the plant to carry out technical reform, .renew equipment, decrease produc-
tion costs and improve management and yet the enterprise had no autonomy and
workers had no initiative and consequently none of these requirements could
be realized as the results were not satisfactory. I agree with some comrades
when they say that implementing economic responsibility systems is a point
for making a breakthrough in reforming enterprises. Even under the present.
situation, in which prices and taxes are not totally rational and they can-
not be changed at will, the implementation of various forms (not slicing
with one knife) of economic responsibility system by different enterprises
or even within an enterprise is totally possible to gradually solve the two
big shortcomings and mobilize the initiative of enterprises and their
staff.
Some comrades have said that the example of the Yunnan Metallurgical Plant
is not typical because, when the economic responsibility systems are popu-
larized (including experiments on expanding autonomy), the situation will
change and the effects will not be as outstanding as those of the typical
and successful units. This view is by no means groundless. But we cannot
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therefore deny the necessity of popularizing economic responsibility sys-
tems. ,Seen from an objective viewpoint, the management level of our
industrial enterprises cannot be judged mainly from their output value and
profit. This is because different enterprises and even the same enter-
prise have different condition of resources, different technical equipment,
different technical processes, different conduct structures, different
prices and different taxes during different periods. But such different
conditions for production existed long before the introduction of economic
responsibility systems and these conditions will not become completely the
same in future even following overall reform and the narrowing of differ-
ences. Since we have become aware of the general existence of the two big
shortcomings, why can we not take an active attitude and gradually imple-
ment economic responsibility systems so as to mobilize the initiative of
the enterprises and their staff and workers and develop industrial produc-
tion? Consequently, basing themselves on the above viewpoint, the provin-
cial party committee and government carried out study and investigations on
many occasions and suggested carrying out active and bold measures with
definite aims. As a result, economic responsibility systems have been
implemented on a wider scale by the industrial enterprises in the province.
Incomplete statistics showed that-up to the end of 1981, of the 1,676 state-
owned industrial enterprises above prefectural level across the province,
1,382 had already set up economic systems of enterprise responsibility to the
state and this figure represents 82.5 percent of the total. The number of
enterprises that have already set up economic systems of staff responsibil-
ity.to enterprises was 1,153, representing 68.8 percent. The introduction
of economic responsibility systems also promoted production and improved
economic effects. The province's gross industrial output value in 1981 was
8.1 percent higher than the previous year while labor productivity increased
by 7.2 percent. In the 3 years from 1979 to 1981, the provincial industrial
enterprises and management departments recorded several hundred million yuan
profit retention through the implementation of the economic responsibility
systems. In addition, they have also rationally used depreciation funds and
overhaul funds in undertaking many good things that could not be done before
(including technical reform and welfare facilities). Anyone who knows even
slightly the history of the development of our socialist industry will be
encouraged by the new atmosphere that has appeared in industrial enterprises
in the factories.
Yunnan is a border province with many minority nationalities. Neither the
economy nor culture in this province are advanced and a long period is
required before the province will be able to catch up with the industrial
production of advanced neighboring provinces and municipalities. The above-
mentioned industrial growth and economic effects are nothing if they are
compared with those of the advanced provinces and municipalities. But seen
from the reality of the province, the present level of industrial produc-
tion in the province would not be possible without having actively intro-
duced economic responsibility systems. Of course, industrial growth and
economic effects are not determined by the factor of implementing economic
responsibility systems alone; they are decided by many factors. Many facts
prove that the far-reaching significance and influence of the implementa-
tion of economic responsibility systems is not less than the socialist
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transformation of private commerce and industry in the 1950's. This is a
Marxist scientific conclusion.
It is a new thing for industrial enterprises to implement economic responsi-
bility systems and we have no mature experiences to follow and therefore we
can only "cross the river by groping after stones." There is no other way.
Since it is a new thing, in implementing them we will eventually meet with
various problems and it is inevitable that, at some times, there will appear
some serious mistakes. But these problems are nothing to be afraid of
because as long as we are able to strengthen leadership and take measures
in due time, these problems can be resolved. What is important is that we
must constantly sum up experiences and improve our work in due time.
(1) In implementing economic responsibility systems it is imperative for
industrial enterprises to have a firm principle. They cannot waver because
of minor problems or inevitable mistakes. The province has experienced a
number of lessons in this aspect.
In the first half of 1981, the gross industrial output value in the province
was only 1 percent higher than the same period of the previous year, economic
effects were not good and it was predicted that the profit made by industry
per 100 yuan output value would be 17.4 percent lower than the same period
of the previous year. The appearance of this situation was caused by the''
reasons that were mentioned by Comrade Zhao Ziyang in his government work
report to the 4th Plenary Session of the 5th NPC. On the one hand, because
of national economic readjustment, it was totally necessary and rational to
curtail the investment in capital construction, cut down on heavy indus-
trial production that consumes much energy and consequently slow down the
development of heavy industry. On the other hand, some comrades who did
not really understand the importance of readjusting the service orienta-
tion and product structure of heavy industry were slow in taking measures
and they were late in shifting heavy industrial enterprises to other pro-
duction. As a result, the production of some heavy industrial products
that should not have been decreased has been slowed down. The second
aspect also obviously existed in Yunnan Province. In particular, we have
lessons in handling the relationship between readjustment and restructur-
ing because we relaxed restructuring and did not do a good job in this
aspect. Thanks to the guidance of leading comrades from the CCP Central
Committee and the State Council, the State Planning Commission convened a
conference attended by the leading comrades from various provinces who were
responsible for industry. In May and July last year, the provincial party
committee invited regional party secretaries to discuss industry and it was
decided to do a good job in readjusting, continue to popularize and perfect
economic responsibility systems and readjust and strengthen, during a cer
tain period, the 219 leading groups of the industrial enterprises above
prefectural level. As a result, the passive situation of all industry
rapidly changed. Industrial production began to rebound in June and com-
pared with the first half of the year gross industrial output value
increased by 13.8 percent in the second half, profit increased by 34
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percent, the profit handed over to higher departments increased by 53.3 per-
cent and tax revenue increased by 10.2 percent. Gross output value for
the whole year was 8.1 percent higher than the previous year and the tax
and profit handed over to higher departments increased by 17.8 percent,
far-surpassing the original annual planning for an increase of 2.1 percent
of gross output value.
In the first quarter of this year, the growth and economic effects of pro-
vincial industrial production not only maintained the good situation and
development since July last year but have also become better and better.
Compared with the same period,last year, gross industrial output value
increased by 17.5 percent, of which the gross output value of light
industry increased by 28.7 percent while the gross output value of heavy
industry, changing the tendency to decrease, increased by 6.3 percent;
profit increased by 53.9 percent; the profit handed over to higher depart-
ments increased by 94.1 percent while the sales of industrial products are
estimated to have increased by 21.7 percent. Thanks to the development of
production and the improvement of management, the circulation rate of work-
ing capital increased by 15.2 percent while the amount of finished product
funds possessed at the end of the period decreased by 5.8 percent. It is
true that compared with the same period last year, there were a number of
unusual factors in the first quarter of this year, such as.increases in the
selling prices of cigarettes, wines and tin while the suspension of produc-
tion by some enterprises for inspection and overhaul was delayed and
carried out only after April. Still, it is apparent that industrial output
value and economic effects have been improved considerably. We will suffer
if we do not see the difficulties in industrial production but it is also
groundless to become pessimistic. It is unlikely that the drop of indus-
trial production in the first half of 1981 and the uneasy situation caused
by it will happen again in the future. Leading comrades from the CCP
Central Committee said not long ago that the most difficult period in our
economy has passed and that the national economy has begun to develop
stably and healthily.
(2) Correctly handle the relationships between the state, enterprises and
their staff and workers.
The. focus of opinions with regard to the implementation of economic respon-
sibility systems by industrial enterprises is that people doubt whether they
can correctly handle the principle of simultaneously giving consideration
to the state, enterprises and their staff and workers and consequently they
fear that state financial revenues will decrease. No doubt there exist
serious problems in the enterprises where leading cadres are characterized
by departmentalism, separatism and bourgeois liberal ideology. They dis-
regard the'interestof the whole situation and even close ranks with workers
who are backward ideologically to spoil state finances. But these problems
can be resolved as long as we are able to step up ideological and political
works so that the leading cadres and the broad masses of staff and workers
of enterprises will be able to form a firm ideology of paying attention to
the interest of the whole situation and to be responsible for the country.
The situation in the province during the 3 years from 1979 to 1981 showed
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that the greater part of the profit made by the industrial enterprises
across the province was handed over to state finances. Because of a lack
of experience, the ratio of the profit handed over to higher departments
by some enterprises was low but measures were taken to readjust these in a
timely way. Of enterprise retention, 70 percent was used in developing
production and collective welfare while 30 percent was used as awards for
staff and workers. Most of the funds for developing production were turned
into fixed assets, the newly added collective welfare facilities for staff
and workers belonged to state finance while a rational proportion between
production funds and welfare funds was defined. Taken as a whole, the
situation of the awards given to staff and workers was good. The award
system promoted production; but there also appeared a situation of giving
awards at will and egalitarianism and under this situation it was impossi-
ble to encourage surpassing labor norms. But these problems are being
solved in practice. The most important things are to improve industrial
production and economic effects because they represent a prerequisite for.
solving financial problems. With regard to the question of how to
distribute in accordance with the interest of the state, enterprises and
their staff and workers, the province summed up the past experiences and
proposed last autumn to implement in 1982 various contract quotas as part
of the industrial economic responsibility systems. Under the principle of
increasing state financial revenues, all the quotas had to be assigned to
grassroot enterprises before the end of December. These measures consti-
tute a reason for the better growth and better economic effects of industry
in the first quarter of this year.
The reform carried out by industrial enterprises through the introduction
of economic responsibility systems involves the readjustment of decision-
making power and interests. Some comrades compared this reform with the
ones carried out in China and abroad, now and in the past, and they said:
"It is difficult. We will wait and see whether it can be carried out."
Of course, it is permissible to wait and see. But there is something
that we must understand. That is, ours is a socialist country under the
leadership of the great party and in this country there is no conflict of
basic interest between men. There exist various contradictions but these
contradictions can be resolved and they can in no way develop into a
situation that is beyond our control. We must resolutely believe that the
majority of our cadres and staff and workers will be able to work happily
according to the principles of the party and state once the party and the
state clearly explain the situation to them.
(3) Put the goal of profit in a proper position.
Since the 3d Plenary Session of the 11th CCP Central Committee, "leftist"
influence in economic work has been criticized and it has.been advocated
to take profit as the target in checking enterprises and this advocation
has played a good role. This is because, during the 10 turbulent years,
making profit was criticized as revisionism. But later facts proved that
things could not be done without a profit goal. There are, however, a
number of problems in having profit goal as the center or having profit as
the only standard for checking enterprises. This is because ours is a
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socialist country that is based on public ownership of the means of produc-
tion and where the purpose of production is to constantly meet people's
increasing needs in both material and cultural life. Therefore, if the
implementation of economic responsibility systems departs from this basic
purpose of production we will certainly take a wrong road. Some industrial
enterprises carry out production according to the amount of profit and they
will step up production, when there is profit or suspend production when
there is no profit and as a result, industrial products will depart from
social needs. We cannot say that this situation has no relation with purely
advocating a profit goal; at least, this situation develops the wrong
tendency of "everything being seen in terms of money." In fact, the amount
of profit cannot totally reflect the operating situation of an enterprise,
nor can the amount of awards gained by workers and staff completely reflect
the quantity and quality of above-quota labor.-
Leading comrades from the CCP Central Committee and the State Council
pointed out that, in future, when industrial enterprises implement economic
responsibility systems, they cannot just put forth profit goals, they must
also define goals for product output, quality, consumption, cost, variety,
salability and utility rates of fixed assets, the amount of working capital
used, labor productivity and production safety. As long as enterprises are
able to persist in these goals, they will be able to correctly handle the
interests of the state, the collective and the staff and workers and the
distribution principle of from each according to his ability and to each
according to his work. Yunnan Province did it precisely in this way last
winter when it was defining the industrial economic responsibility systems
for 1982. Now practice has proved that the results of this practice are
good. Seen from the viewpoint of the unity of theory and practice, this
practice represents a new development in reforming economic systems since
the experiment on the expansion of the autonomy of industrial enterprises
began.
(4) The implementation of economic responsibility systems must be com-
bined with readjusting enterprises.
It is a strategic policy of the CCP Central Committee and the State Council
for basically improving the national economy to advocate economic responsi-
bility systems and readjust industrial enterprises in an overall way. The
Central Committee demanded that this important task must be completed in 2
to 3 years in stages and by combining the experiences of typical units with
popularization. In the first stage, the number of the industrial enter-
prises' at the provincial., regional and prefectural level that are to be
readjusted is 403, of which 44 are province-owned enterprises. The work of
readjusting is basically divided into two steps. The first step is focused
on perfecting economic responsibility systems, improving business manage-
ment, planning management, quality management and financial management,
strictly implementing award and punishment systems and perfecting economic
accounting work so as to promote production in that year. The second step
includes defining the number of workers and staff, staff training, deploy-
ment of leading groups and improving the leadership system. This method
has been used by most enterprises. The two steps cannot be separated and
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a few enterprises had to begin from readjusting and strengthening leading
groups. Now most of the 44 province-owned enterprises have begun the second
step. It is a general phenomenon that enterprises have no strict control
with regard to the number of their staff, they are overstaffed and leading
cadres have too many secondary jobs. Other problems include working care-
lessly and sloppily and loose labor discipline. This situation makes the
political, cultural, professional and technical level disaccord with the
requirements of modern and big enterprises. Therefore it is very important
to do a good job in the second step. We must be highly responsible for the
cadres and workers and staff that have been discharged from their work. We
must make proper arrangement for them through such ways as opening up new
production, stepping up the work of livelihood services and giving training
courses so as to improve their political, cultural, professional and tech-
nical levels. A socialist economy always must carry out expanded reproduc-
tion. Although the methods of expanding reproduction may be different, in
addition to improving labor productivity without having to increase the
number of workers and staff, it is also necessary to set up new workshops
and new industrial enterprises. The number of cadres who understand
management and technical knowledge and the number of skilled workers is: not
sufficient to meet the needs of industrial enterprises in tapping potential,
innovating and reforming. Therefore it is imperative to take this oppor-
tunity and organize the training of the discharged cadres and staff and
workers so as to make important preparation for greater development.
It is absolutely correct to bring the implementation of economic responsi-
bility systems by industrial enterprises into the whole readjustment work
of the enterprises. This is because if we do not readjust the enterprises
in an overall way and just merely implement economic responsibility systems,
these systems can in no way fully display their role. For example, quite a
number of the enterprises have not been able for a long period to solve the
problem of egalitarianism in distributing awards. Of course, there are
many reasons for this but an important one is that the basic work of enter-
prise management is backward and it does not accord with the reality of
average advanced quotas. It is only when the implementation of economic
responsibility systems is combined with an overall readjustment of enter-
prises and, by starting from improving the basic work of enterprise manage-
ment, creating better conditions that the enterprises will be able to pro-
duce salable, good quality and low-priced products and reach the goal of
increasing both production and profit and improving economic effects.
All the industrial enterprises that have been readjusted in an overall way
must be resolute in displaying well the role of the leading groups that
are composed of people more revolutionary, younger and more knowledgeable
and professional. Party committee secretaries and factory directors
(managers) must be able to persist in the four basic principles, persist
in implementing the party principles and policies, understand management and
production technology., have a good style of work and be of good behavior,
must be healthy and have close contact with the masses. The number of
assistant positions cannot be too great. In general, there can be one or
two persons or, under particular conditions, three persons. It is neces-
sary to gradually set up in industrial enterprises a new leading system
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that is characterized by collective leadership of the party committee,
factory directors in command of administrative work and democratic manage-
ment by workers and staff (including regularly convened workers' congress).
(5) Persist in the principle of putting ideological and political work in
the first place.
Of course it is very important for industrial enterprises to implement
economic responsibility systems and improve management and technical levels
and it is necessary to continue to work hard in this aspect. But there is
another important factor for developing industrial production and this
factor includes stepping up the building of party organizations in enter-
prises and regular and effective ideological and political work. At
present, we are faced with the struggle against corruption by bourgeois
ideology. Staggeringly, in some places, there are a few persons who are
still engaged in speculation, bribery, profiteering and fraud and stealing
state and collective property and this situation is seriously developing.
Industrial enterprises are no exception. This kind of struggle is pro-
tracted. What merits our attention is that some comrades have failed to
see the seriousness and harm of the class struggle, that exists within a
certain range, in the economic sector. The broad masses of people hold
that we are not resolute enough in cracking down on criminals. Therefore
it is necessary to step up ideological and political work, launch the
struggle correctly and achieve victory in this struggle so as to make way
for the development of industrial and agricultural production.
The principle of an open-door policy and activating the economy at home
that have been put forth since the 3d Plenary Session of the llth CCP
Central Committee are correct. In particular, the policy of activating
the economy at home has resulted in obvious achievements in Yunnan, this
border province that is yet to be exploited, and it can be said that this
is the common view of the people of various minority nationalities in the
province. Our present task includes continuing to persist in shifting key
work to economic construction and at the same time putting the question of
class struggle in a proper place using methods that are different from the
ones used in the political movements in the past. The aim of all these is
to build a modern and powerful socialist country with a high degree of
democracy and civilization.
CSO: 4004/41
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INVESTIGATION ON HOW CHANGZHOU MUNICIPALITY DEVELOPED THE ECONOMY
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 21-26
[Investigation report by the joint investigation team of the State Council's
Structural Reform Office and the State Council's Economic Research Center]
[Text] Changzhou municipality is a medium-size city in which industry has
developed rather rapidly and has produced relatively good economic effects
in recent years. During the initial period of the founding of the PRC,
this city had a rather weak foundation in industry. As of the end of the
national economic recovery period in 1952, the gross value of its industrial
output was only 217 million yuan and its fiscal revenues were only 24.92
million yuan. But since 1953, its gross industrial output value and its
fiscal revenues have advanced at an annual growth rate of 10.7 percent and
11.4 percent respectively and by 1981-had reached 4.146 billion yuan and
577 million yuan respectively. Over the past 32 years, the municipality
had received appropriations from the state amounting to over 900 million
yuan while its remittances of taxes and profits to the state amounted to
nearly 6.8 billion yuan. The latter was equivalent to 740 percent of the
investment accorded by the state. At present, the city has a population of
480,000 people and has developed into an industrial city with the light and
textile industries as the main industries supported by other industries such
as machine-building, electronics, chemicals, pharmaceuticals and construc-
tion materials. It produces over 500 kinds of industrial products, with
over 3,000 varieties. It exports abroad over 190 kinds of products. (In
1981, its gross purchases of products for export amounted to over 400
million yuan.) It has turned out a number of backbone products for export
to other parts of the country and abroad. Of these, 2 have received gold
medal awards from the state, 9, silver medal awards and 63 others have
earned recognition from the relevant central ministries and provinces as
superior-quality and famous-brand products. The average per capita income
of the municipality has reached 2,385 yuan (equivalent to $1,428).
Basically speaking, there is no unemployment problem in the municipality.
Why is it that Changzhou municipality has achieved excellent results both
in the speed of economic development and in economic effect?
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I. Correct Orientation of the Direction of Production Under the Unified and
Planned Guidance of the State
From its prolonged practice of guiding economic work, the Changzhou Munici-
pality CCP Committee learned that in order to achieve greater, faster,
better and more economical results in developing the city's economy and to
continue to maintain its exuberant vitality, first and foremost they should
grasp the products and make them really marketable and competitive. How did
they grasp the products?
(1) First of all, they fixed the direction of development of their products
in strict accordance with the demand of the unified plan of the state and
started with setting up a rational-product structure and taking into con-
sideration the need to put the superior conditions of the locality into
full play. Changzhou's handicraft industry has a prolonged history. Its
first textile mill was established in 1906. On the eve of liberation, it
had 470 small plants and small workshops and was rather strong techno-
logically. This constituted its superior point. However, development of
the light and textile industries requires not only that agriculture must
supply a continuously increasing amount of raw materials but also that heavy
industry, which serves both agriculture and the light and textile industries,
must be correspondingly developed. Unfortunately, it was precisely on the
question of developing heavy industry that they had taken a roundabout
course in the course of the "Great Leap Forward." At that time, despite
the lack of funds and technical know-how, they immediately set up six iron
and steel plants which employed an enormous force of over 7,000 staff and
workers. They incurred a huge loss therefrom. This blunder made them
realize that in engaging in industry we must first of all set up a rational
industrial structure based on the foundation of the products being market-
able and correctly orientated. Thus, following a readjustment, only one
nonferrous metals plant and one iron and steel plant remained and the focal
point in the development of heavy industry was shifted to the manufacture
of machines for the light and textile industries and agricultural machinery.
Thereafter, in accordance with the direction of development calling for
serving agriculture and service light industry, national defense and
foreign trade, the electronics, chemicals, pharmaceuticals and construction
materials industries were developed. By 1981, in the composition of
Changzhou's entire industrial structure, light industry occupied 58.7 per-
cent and heavy industry, 41.3 percent. In this way, an industrial structure
was formed which counted on the light and textile industries as the main-
stay but with the light and heavy industries supporting and promoting each
other's development. This has played an important and useful role in bring-
ing about the stability and rapid development of Changzhou municipality's
economy.
(2) They devoted intense efforts to the development of famous-brand and
high-quality products. In the course of their incessant practices, they
have come to deeply realize that only in selecting those products which
have special features and which are urgently needed both for internal
consumption and for export abroad can the marketing of the products be
promoted. Accordingly, they selected a number of marketable products,
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studied the advanced level of these products both at home and abroad,
employed scientific methods to tackle the difficulties, tried every means
to improve the quality of the products and thereby succeeded in turning
out famous-brand and superior-quality products. Next, these products. were
made the backbone products to lead other associated or allied products to
achieve quality improvement and to seek a higher level of development and
more sales so as to ensure that the availability of famous-brand and high-
quality products would be continuously increased and expanded. Since the
3d Plenary Session of the 11th CCP Central Committee, they have selected,
and done much work on, some 23 backbone products which enjoyed brisk sales
both within the country and abroad. Not only did these products win the
confidence of the clients and in 1981 successfully increase their output
value by 18.9 percent and their profits by 16.8 percent over 1980, but
also because promoting the development of one product could lead to a
string of other products following suit. Many associated and allied
products and enterprises have correspondingly achieved development. At the
same time, great attention was paid to grasping and understanding the move-
ments of the market and efforts were made to study, design and develop in
time new products, new materials, new varieties, and new designs and colors
so that the products could be continuously replaced by new and better
products.
(3) They paid special attention to grasping those products which could
raise the production capacity of the entire municipality. These products
had the characteristic that if any one of them were developed, a string of
other products would also be developed. For example, when Changzhou munici-
pality first began to develop agriculture and machine-building, it could
hardly tackle any casting or forging jobs. As a result, production develop-
ment was greatly impeded. But they combined together several iron-smelting
shops and gradually set up a forging plant. This plant has now become the
forging center of the whole province. The same method was used to establish
a steel casting workshop which later also became the steel forging center
of the whole province. These two technological centers not only promoted
the development of the machine-building industry of the whole municipality
but also provided aid to other localities in Jiangsu Province.
(4) They earnestly developed the products for export. For a prolonged
period of time they have held firmly that developing products for export
is an important road leading to guiding and raising the level of the entire
industry of the municipality. They demanded that each and every industrial
department as well as the relevant financial and commercial, postal and
telegraph and communications units should establish the idea of having two
markets (domestic market and international market) and should work in uni-
son to promote the development of foreign trade. They adopted the measure
of stressing and nurturing the development of those products which were
marketable in the international market and which enjoyed a good reputation
and had a high foreign exchange earning power. Concurrently, they have
continuously developed new products for export to suit changes in the
international market. In recent years, a number of new varieties and new
designs of products have been offered each year to the international market.
At present, there are 140 plants in the entire municipality producing export
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commodities. This is roughly 33.33 percent of the total number of plants in
the municipality. They are currently turning out over 190 varieties of
products destined for sale to over 90 countries and regions.
II. Developing Various Kinds of Economic Combination According to the
Principle of Specialized Coordination
One noteworthy experience in the development of the economy of Changzhou
municipality is that of taking the backbone products as the center, fully
utilizing the material and technological foundation of the original industry
and, in accordance with the inner relations of production, developing vari-
ous kinds of economic combination and thus speedily shaping an overall
production capacity.
As early as in the 1960's, they began to earnestly learn from Shanghai's
experiences. They concentrated on developing such focal products as
corduroy, khaki cloth, cotton print and hand-operated tractors and organized
their production separately in one continuous line and in a fixed and
coordinated manner. In 1970, more of these so-called "single dragon"
coordinated production lines were formed for such products as chemical
fiber, semiconductor radio receiving sets, plastics and glass fiber rein-
forced plastic. After the 3d Plenary Session of the 11th CCP Central
Committee, on the basis of the "single dragon" system already in force,.
other forms of economic combination "sprang up like bamboo shoots after a
spring rain." Up to now, 21 specialized corporations and control plants
and 19 industrial-agricultural, industrial-commercial, and industrial-trade
,joint enterprises have been formed, while additionally certain trans-
locality economic units have likewise developed. Some 231 industrial
enterprises, comprising 55.26 percent of the total number of industrial
enterprises in the community, participated in these joint ventures. Their
staff and workers numbered over 80,000 people, roughly 43.42 percent of the
total number of staff and workers of all the industrial enterprises of the
municipality. Their gross output value amounted to 2.345 billion yuan, or
56.57 percent of the gross output value of the city. Economic combines have
now become the principal form for Changzhou municipality to foster its
economic development.
Along what lines have the economic combines of Changzhou municipality been
developed? In general, the lines may be said to have been as follows: a
firm and irrevocable determination to foster the development of socialized
big production and elevation of the socioeconomic effect, daring to break
through the limits of localities, departments, trades and. the ownership
system, planning as a whole and making all-round arrangements, centralizing
leadership work, thinking ahead, resorting to administrative intervention,
according reciprocal benefits, and adopting various forms.
(1) Planning as a whole, making all-round arrangements and centralizing
leadership. The special features of the industrial organs in Changzhou
municipality are: a multitude of small-scale enterprises, with many enter-
prises under the system of collective ownership and a host of municipality-
operated enterprises. At present, of the 418 industrial enterprises in the
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municipality, 27 are enterprises which are subordinate, to a central minis-
try or are subordinate organs of the province, while 93.5 percent of the
enterprises are directly administered by the municipality.' Of the latter,
those owned by the collectives make up 61 percent of the total number of
industrial enterprises in the municipality. In the municipality, there are
only 6 large-size enterprises and 30 medium-size enterprises. The remaining
382 are all small-scale enterprises, making 91.4 percent of the whole.
These special features illustrate that in order to further develop the
productive forces, it is necessary to organize together the large, medium-
size and small enterprises as well as the enterprises under collective
ownership according to the principle of effecting specialized coordination
and economic rationality. Accordingly, what. the municipality did was to
take the focal products as the center, grasp a "dragon-head" leadership
plant, break through the limitations of trade, department, locality and
ownership system, spur on a number of small enterprise units to carry out
fixed coordination work, fill~the gaps and link up the parts to form a
whole, organize combines of various sorts and, in this way, speedily form
a new production capacity. Thus, without making any additional investment,
it was possible to spur on a number of diversified and technically backward
small enterprises and raise the labor productivity rate and the technical
level in production of the enterprises.
(2) Thinking ahead and making administrative intervention. The procedure
of carrying out the reorganization and combination of the enterprises is
tantamount to the procedure of unifying thought and overcoming the various
impeding forces. First of all, take the impediments to thought. Developing
specialized coordination and combination necessarily comes into conflict
with the narrow ideas of "small production," as exemplified in the desire
to play only the leading role and disdain the minor roles, and in read-
justing and allocating the division of work according to the principle of
specialization, the desire to absorb into one's own organization more
technology, equipment and personnel but to decline taking anything out, and.,
in hard times always calling for "sharing the hardship" but in better times
never calling for "enjoying the fruits in common," and so on. The idea
of departmentalism likewise tends to play great havoc; it causes impedi-
ments even inside a municipality, or trade, or department or between the
various ownership systems. In this connection, the leadership cadres of
the Changzhou committee have done much work. They offered the slogan that
while there must be "free choice," advice by "intermediaries and go-
betweens" should not be ignored. They thus tried to convince the indus-
tries, trades, and departments to support and promote the combines and not
to impede their development. At the same time, a special office has been
.set up to take charge of the economic coordination work of the municipality
and to plan as a whole, make all-round arrangements and harmonize the
combines of the industries, trades and departments as well as combines of
a trans-locality nature. In the event of disputes over big and important
problems, aside from doing the necessary ideological work, administrative
intervention is resorted to, if necessary.
(3) Using economic means to promote combination. In organizing the com-
bines, great attention is paid to regulating the problem of distribution of
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benefits between the enterprises. The principle of reciprocity is firmly
adhered to. To use their own words, this is "equally dividing the benefits
and sharing the honors together." Commencing in 1967, the system of coor-
dinated prices was first practiced inside the "dragon" continuous produc-
tion line for tractors in which, by means of consultations, certain of the
enterprises earning a higher rate of profits gave up a little to enterprises
with a lower rate of profits. This achieved the aim of equalization of the
benefits and joint development.
At present, the system of internal coordinated prices is in vogue, and has
been continuously improved, among many economic combines.in Changzhou muni-
cipality. Based on the situation of there being a disparity between the
profitability rate of funds and the profitability rate of costs of produc-
tion of enterprises, two different profit-concession measures have been
adopted. One of the measures calls for profit concession from plants
making the parts, whose profitability rate is high, to plants doing the
final assembling work, whose profitability rate is low. These measures,
aiming at stabilizing market prices and regulating the profit distribution
between the enterprises by means of. internal coordinated prices, have played
an important role in developing and consolidating the reorganization and
combination of the enterprises.
Carrying out the system of internal coordinated prices is in effect the
utilization of the price lever to regulate the profit rate of the enter-
prises. To a certain extent, it removes the passive effect on the enter-
prises due to the prices of their products being divergent from their
actual value. At the same time, it can more correctly reflect the condi-
tion of production and management of the enterprises, help in making a more
objective assessment of the operation results of the enterprises and promote
the 'improvement of the management and control of the enterprises.
(4) Adopting activated and multiple forms and refraining from "cutting with
one knife." Judging from the forms of the economic combines, it may be seen
that it began in 1962 the organization of the "single dragon" system
envisaging a fixed division of work and coordinated production. The so-
called "dragon" form may generally be divided into three types: a) those
formed according to the relationships between the main machine, subsidiary
machines, machine parts and machine sections in the final assembling
process, such as in the case of the "single dragon" for tractors; b) those
formed according to the relations between the successive steps of working
procedures in the production of the articles such as in the case of the
"single dragon" for corduroy; and c) those formed according to the rela-
tions between the different processes in the comprehensive utilization of
the raw materials such as in the case of the "single dragon" for the glass
fiber reinforced plastic. The enterprises taking part in the "dragon"
setup are all independent accounting units and suffer no changes in their
administrative or subordinate status, or in the nature of their ownership.
Commencing at the end of 1978, specialized corporations and general control
plants have been formed. Up to the present, there are 9 corporations deal-
ing in plastics and tailoring and 12 general control plants such as those
manufacturing bicycles and household furniture. The participant enterprises
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number in all 122 units, equivalent to 29 percent of the total number of
industrial enterprises of the municipality. Of the corporations and
general plants established, those which have basically assumed the status
of enterprises have carried out unified management and unified payment of
taxes and adopted the 2-grade accounting system exemplified by the case of
the bicycles general plant. But the more prevalent mode is the banding
together of close-knit combines and loosely connected combines to form
so-called "dragon-plus corporations," as exemplified by the case of the
tractor corporation which, in addition to embracing 10 plants and 1 research
institute, established fixed coordination relations with 59 industrial
plants. In addition, inside the municipality itself, various forms of
economic combines have been set up, including the joint operation of enter-
prises under the system of ownership by the whole people and enterprises
collectively owned, joint operation of collectively owned enterprises with
other collectively owned enterprises, joint operation of industrial and
commercial enterprises, joint operation of industrial and trading enter-
prises, joint operation of industrial-commercial and trading enterprises,
and so on.
Turning next to the trans-locality economic combines, it is seen that the
municipality, using the economic combines already formed as a basis, first
extended its activities to the outskirts of the city. Over recent years,
14 industrial and agricultural jointly operated plants have been formed.
Furthermore, these activities were later extended to neighboring counties
and over recent years, joint operation has been arranged with 7 enterprises
owned by Wujin County or operated by the communes or production brigades of
that county. At the same time, by means of such practices and forms as the
outflow and inflow of technology and funds and compensation trade, economic
relations have been developed with different municipalities and provinces
such as Shanghai, Wuxi, Suzhou, Shanxi and Zhejiang.
III. Closely Knitting Together the Reorganization and Combination of
Enterprises With Technical Restructuring
Changzhou municipality's experience demonstrates that the reorganization
and combination of enterprises provide advantageous conditions for techni-
cal restructuring and the renewal of equipment.. Conversely, technical
restructuring and renewal of equipment promote the consolidation and
improvement of the economic combination bodies. Hence, the process of
reorganization and combination is tantamount to the process of technical
restructuring and changing the production conditions.
(1) Main reliance should be placed on technical restructuring, on renewal
of equipment and filling in the gaps, and on expanding the production
capacity of the existing enterprises. For many years the municipality has
made full use of the material and technical foundation of the old enter-
prises, insisted untiringly on technical restructuring and traversed a road
of "utilization--restructuring--further. utilization--and further restruc-
turing." For example, the tractor plant and the diesel engine plant are the
two main machine plants of an economic combination body. In the beginning,
there were only a small farm tools plant and a small machinery repairing
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shop, each owning 20 to 30 old lathes. Over the past 20 years following the
formulation of the combine, the tractor plant has completed over 1,200 items
of technical renovation, renewed over 170 sets of various kinds of key and
specialized equipment (comprising 35 percent of the entire plant's equip-
ment), and set up 13 automatic and semiautomatic production assembly lines.
The diesel engine plant, over these years, has completed over 2,500 techni-
cal renovation projects, renewed over 550 sets of key and specialized
equipment (comprising 72 percent of the entire plant's equipment) and set up
over 20 automatic or semiautomatic production assembly lines. At present,
both the Changzhou Tractor Plant and the Changzhou Diesel Engine Plant have
shown an entirely new technological appearance and have become the advanced
models in technical restructuring of the entire municipality.
(2) Organizing together, strengthening coordination and tackling difficul-
ties by technical measures. In the actual practice of developing the indus-
tries in the city, the Cbangzhou committee has gradually realized that
bringing science and technology more fully into play in serving economic
construction can form a truly powerful production force. For this reason,
two "3-combines" have been specially formed. The first constitutes the
"3-combine" of technicians, workers and cadres. At present, some 90 enter-
prises in the municipality have formed research institutes or small units
for the purpose of tackling difficult problems with science and technology.
Their participants number over 1,500 technicians, workers and cadres. The
second is the "3-combine" of the enterprises, scientific research units
and the user-units, in this way forming a straight line extending from
scientific research to actual usage. Within the municipality, the dividing
line between enterprises and between trades is broken and various kinds of
combines of scientific research departments, planning departments and pro-
duction departments have been formed. Outside the municipality, combines of
a trans-locality nature have likewise been formed. In recent years, many of
the economic combines in the municipality have one after another establisfied
cooperative scientific and technological relations with over 130 colleges,
special institutes and scientific research units in other localities.
Important achievements have been made in their joint research on, and
application of, new technology. Urged on by the "3-combines" both inside
and outside the municipality, scientific education has attained a new
development. In addition to the removal of a chemical institute in Wuxi
to the city, the municipality itself has established a television college
and a professional college and has established or expanded 15 medium-size
specialized schools and institutes for technicians. The size of the
engineering and technical personnel in the municipality is over 6,500
people.
(3) Closely linking together the introduction of advanced technology, from
abroad and the technical restructuring of the old enterprises. Since the
3d Plenary Session of the 11th CCP Central Committee the municipality has
selectively :imported from abroad key technology and key equipment to
strengthen the weak links in the development of production and to fill the
gaps currently in existence in the municipality and has achieved substan-
tial economic benefits therefrom. Over the past 3 years, 26 items have been
imported, of which 22 have been put into production. In 1981, the newly
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increased output value amounted to 221 million yuan and the increased taxes
and profits were 44.83 million yuan. By the time the 26 items are all in
operation, the new output value will amount to 300 million yuan, the taxes
and profits, 78 million yuan, and foreign exchange earnings, $40 million.
IV. Doing a Good Job of Management and Control With Raising the Economic
Effect as the Central Task
Just like the technological level, the level of management and operation
directly determines the economic effect and the speed of the economic
development. For some considerable time in the past, the main energy in
guiding the economy was devoted to grasping production only and it was
relatively seldom that attention was paid to management and operation.
Since the 3d Plenary Session of the 11th CCP Central Committee, the party
committee has consciously grasped management and operation as an important
task in the daily agenda. At present, the idea of grasping management and
operation has permeated deeply into the minds of the leadership cadres at
various levels and of the staff and workers at large. At the same time,
in the assignment of cadres, attention is paid to assigning properly
capable cadres to take charge of management, production, technology or
finance. Because of this, the road of management and control has become
increasingly broadened.
(1) The focal point in management and control lies in management and the
soul or primary task of management is to provide the products with a compe-
titive power in the market. For the purpose of enlivening and strengthen-
ing management, some economic control departments and some of the enter-
prises have augmented market investigation and forecasts in an endeavor to
deepen their understanding and study of the condition of the production,
supply and marketing phases of similar enterprises, their various economic
and technological targets and the demands of the consumers. Investigation
furnishes the basis for improving the quality of the products, for improving
service work to the customers, for correctly understanding the direction.
of development of the products and for opening up new markets. In this way,
not only can the planned character of production and the liaison between
production and marketing be augmented but also the production and manage-
ment of the enterprise can be enlivened. For example, in 1980, when
products of similar category were under a situation of stagnancy throughout
the country, the Changzhou Tractor Plant conducted a survey of the market,
obtained clear knowledge of its development, set up throughout the country
96 marketing points, and thereby initially formed a relatively fixed market-
ing network and a system for the collection of economic intelligence. As a
result, in 1980, the sales of its products not only were not reduced but
were increased by 15.4 percent over 1979 while in 1981 a further increase of
13.9 percent was made over 1980. Similarly, in order to enliven management,
many enterprises of the electrical machinery industry, apart from manufac-
turing, also engaged in installing, repairing and rendering various kinds
of on-the-spot services. This received the hearty approval of their clients.
Due to the attention paid to management, the 1981 production of the princi-
pal products of the electrical machinery industry of the entire municipality
surpassed the 1978 production which had been the highest level in history.
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(2) Concurrently with enlivening management, the enterprises have likewise
improved their control work. In order to make their products marketable
and to improve their competitive power, they have done much work in the
direction of reorganizing the enterprises. Since the second half of last
year, they have promoted and improved the economic responsibility system
and further augmented their reorganization work. First, they strengthened
their basic level control work and set up and strengthened new systems for
original records, statistics, measurement, inspection, charts and diagrams,
technology, installation and technical standards. Next, they carried out
overall quality control step by step. Some focal-point enterprises estab-
lished a quality guarantee structure, comprising an organizational guarantee
system, a quality control system in the manufacturing process, a guarantee
system on the quality of work, a system of intelligence reports on quality
control both inside and outside the plant, and a guarantee system of the
political and ideological education of the staff and workers. Having these
five responsibility systems which in effect reach all sides and which are
organically combined and are also closely linked with the economic interests
of the staff and workers, offers a powerful guarantee for the steady
improvement of the quality of the products of the enterprises. Furthermore,
the business accounting system of the enterprises was also improved and
strengthened. First-grade plants set up their own business accounting con-
trol organs, and full-time accountants were assigned to the workshops. The
enterprises and the workshops carried out a 2-grade accounting system based
on their internal settlement prices and are now separately responsible for
their own profit or loss. For example, the Changzhou Gear Wheel Plant
divided its economic and technological targets into 211 small targets which
were sent downward to the workshops, units and departments. The final
accounting was done and the profit or loss assessed on this basis. More-
over, business accounting and the award of bonuses were linked together and
good results were achieved.by the plant in this regard. In 1981, its out-
put value increased by 8.75 percent over the preceding year, the utiliza-
tion rate of funds was improved by 14.9 percent, the turnover period of
funds was speeded up by 30 days, and the various economic and technological
targets achieved were at the highest level in the history of the plant.
(3) With due consideration of the existing economic structure, based on the
state's general guideline and policy and with a view to facilitating the
enlivening of the economy, taking the whole into consideration and calcu-
lating real accounts, the party committee adopted certain flexible measures
to make unified arrangements for the financial and material resources of the
entire municipality so as to protect the pivotal points and to solve the
outstanding contradictions met in the course of actual economic work. For
example, with regard to the collection and utilization of funds, first,
under a unified plan for the entire municipality, the various production
funds of the enterprises were all subjected to compensatory, regulatory
utilization. As early as in the 1970's, aiming at the objectives of
effecting economy in investment, accelerating the speed of development and
improving the economic benefits, the three categories of funds of the
enterprises, namely, funds for renewal and renovation of equipment, funds
for overhauling and funds for scientific and technical projects, were
gradually bundled together, suitably centralized by the municipality, and
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subjected to regulatory utilization with compensation. The funds were con-
centrated for use in procuring additional equipment or in repairing plant
buildings. This way of joining together. small brooks to form big rivers
and literally fitting steel to the edge of a knife ensures the protection
of the pivotal points, effects economy in time, improves the investment
benefits and makes it possible for each and every enterprise to enjoy the
benefit of using in turn the aggregate collection of funds. Second, con-
cerning credit and loans, this measure enables those enterprises which have
the capacity to repay loans to make use of the various kinds of credit funds
in a flexible way and thus accomplish the objectives of completing the tech
nical restructuring projects and making their products marketable within a
relatively short period of time. Flexible methods of repaying the loans are
also adopted. Thus, for projects which can show the economic benefits
independently, the practice is to require the repaying of loans out of the
newly added profits after the projects have gone into operation. As for
projects which cannot measure their economic benefits independently, repay-
ment of the loans is to be on the basis of the profits in excess of the plan
or the excess of profits over the preceding year. In this way,. the enter-
prises are able to repay the loans and the majority of them have enjoyed
increased production and.increased income. It has been found that for the
municipality as a whole the effective repayment rate of loans was over 80
percent. Again, for example, in the case of the means of production, the
municipality has the power to make flexible and regulatory use of those
derived through the regular channels under the state's unified plan and
those derived from outside localities through the exchange of products
turned out by the local enterprises in excess of their plans. The munici-
pality has the power to make unified disposal of these products according
to a prescribed period of time and the prescribed varieties, specifications
and volume of the commodities. This plays an important role in enlivening
circulation, ensuring meeting the production needs of the enterprises
according to plan, and fulfilling the state plan. For example, during a
certain period in 1981, the municipality suffered from a tight coal supply
but because of the municipality enforcing a system of citywide unified
adjustment of the resources, normal production in the enterprises was
ensured.
V. Paying Great Attention to the Training of Personnel and the Upbuilding
of Efficient Teams of Staff and Workers
Since the 3d Plenary Session of the 11th CCP Central Committee, the
Changzhou party committee has consistently strengthened the upbuilding of
leadership personnel at various levels. They have paid great attention to
procuring technical personnel who are young and healthy, who have good
political backgrounds and who are devoted to their profession, and to
training and promoting cadres from among the staff and workers of superior
quality. They have also been anxious to maintain a relatively stable ratio
among the various kinds of cadres. At present, of the leadership cadres in
charge of production, management and technology in the various municipal
organs and bureaus and of the responsible cadres in the offices in charge
of the major business, technological and scientific affairs, the great
majority of the comrades have gone through a prolonged period of practical
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work. Of the basic-level leadership cadres on the industrial and communica-
tions front, three-fourths have emerged from the production frontline. They
are fully conversant with the production conditions and have earned definite
experiences in the organization of industrial production. In the meantime'
these cadres are given periodic training on a rotation basis inside the'
municipality while some have been selected for more intensive training in
specialized institutes. All of these measures aim at continuously improving
their scientific, technological and management level. Statistics have shown
that 50 percent of the 570 leadership cadres under the 5 industrial bureaus
of the municipality have a fairly good knowledge of production techniques
and are capable hands in management and control, and that 20.2 percent of
them are specialist technical cadres who have technical qualifications.
In addition, the Changzhou party committee has paid great attention to
putting the party style in good shape and improving the general work
behavior, in order that both will become the spiritual force in ensuring a
sustained and healthy growth of the economy.
In the upbuilding of the staff and workers' corps, simultaneously with pro-
viding the staff and workers with technical training, political and ideologi-
cal educational work has been continuously strengthened. Emphasis has been
laid on instilling in the minds of the staff and workers five basic ideas:
1) Building up an overall viewpoint so that partial interests and interests
of the whole are correctly handled; 2) setting up a viewpoint of self-
reliance and regeneration and correctly handling the relations between
striving for state support and relying on oneself; 3) setting up a view-
point which is indivisible from attaining a high level of material civiliza-
tion and attaining a high level of spiritual civilization and correctly
handling the relations between improving economic benefits and raising the
revolutionary spirit of the staff and workers; 4) setting up a viewpoint of
placing the interests of the state in the first place and correctly handling
the relations between the interests of the state, the collective and the
individual; and 5) setting up a viewpoint of combining material encourage-
ment with spiritual encouragement and correctly handling the relations
between insisting on "pay according to work" and fostering the labor atti-
tude of communism. Relatively great attention has also been paid to pro-
moting new style and new behavior such as engaging in investigation and
research, being realistic, upholding unity and coordination and justice and
beliefs, upholding truth, rectifying errors, learning from the advanced, and
daring to make new creations. At the same time, they have insisted on doing
a good job of providing sparetime education for the staff and workers,
inviting good lecturers to talk on technology, developing spot-training
and organizing exhibitions of operations. They have also advocated that
one should study whatever one is working on, make up whatever one is lack-
ing, and extensively develop technical activities which will train workers
with one specialty but with many abilities. This is aimed at continuously
raising the technical level of the staff and workers and the degree of
their proficiency. At present, 278 plants in the municipality have already
set up sparetime schools for their staff and workers. The schools have an
enrollment of 57,000 students, making up 26 percent of the total number of
staff and workers. Through this, economic construction has developed and,
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more importantly, the revolutionary spirit of the staff and workers has
been uplifted, their knowledge and talents have been enhanced and their
willpower has been steeled. In due course of time, there will come into
being a contingent of staff and workers who possess good political back-
ground, are well grounded in technology, discipline abiding, civilized,
devoted to work and always striving for practical results. This will have
an extremely deep significance in the future development of socialist
modernization and protection of the socialist society.
CSO: 4004/41
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SOLVING THE PROBLEM OF ENVIRONMENTAL PROTECTION AND ECONOMIC POLICY
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 27-30
[Article by Zhou Fuxiang [0719 1381
4382]]
[Text]
I
The problem of the environment is closely related to economic policies. Pro-
tecting the environment and natural resources, preventing pollution and
other social effects of pollution is an important principle in developing
the national economy. However, this principle was not properly maintained
when economic policies were worked out in the past. As a result, environ-
mental pollution and damage to the natural resources in our country have
not so far been effectively controlled.
Economic policies are reflected by the national economic plans. When plans
were worked out in the past, other than subsidiary investment being given
to the large or middle-scale capital construction projects and some old
enterprises for preventing and controlling pollution, no targets for environ-
mental protection have ever been set in the production plans and included in
the main targets for the national economy. When decisions were made on the
distribution of industry, the selection of factory building sites and other
important links in the capital construction, the effect on the environment
was not taken into account as an important principle. When there were
breaches in the plans, recovery projects and projects.for preventing pollu-
tion were always the objects being cut for the purpose of giving priority
to maintaining priority projects. As for natural resources, attention was
merely paid to their exploitation and utilization rather than their pro-
tection and multiplication. Exploitation and utilization was also unitary
but not comprehensive. All this has given rise to an imbalance between
economic development and environmental protection.
In order to solve these problems, it is necessary, first of all, to deepen
economic workers' understanding of the importance of the environmental
problem. They should treat the problem as an important component of the
national economy, consciously coordinate the relationship between produc-
tion and environmental protection and work in accordance with the objective
laws governing the environment.
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The environment, including water, atmosphere, soil, living beings, mineral
resources and other natural conditions, forms the material resources for
the subsistence of mankind and for social production as well and thus the
environment is a factor of productive forces. Social production is, in the
final analysis, a course of taking these resources from nature and processing
them into the means of subsistence and production needed by the people. The
development of production depends to a large extent on the exploitable
reserves of the irreplaceable resources and the capacity of regenerative
multiplication of the renewable resources. The process of production is
simultaneously a process of consumption, in which a portion of natural
resources is transformed into products while another portion of natural
resources is converted into waste and returned to the natural environment.
It is in this way that social production and consumption exchange materials
and energy with the environment. Reproduction can therefore be smoothly
carried out. The pollution and damage of the environment mainly refers to
the phenomenon that the speed of acquiring resources from the environment
by social production exceeds the speed of regeneration and multiplication of
resources, thus resulting in a sharp reduction in the reserves of resources,
and the forest, soil and water resources being damaged; and the phenomenon
that discarded wastes exceed the capacity of the natural environment, thus
polluting the atmosphere, water and soil, and causing an ecological imbal-
ance in nature. This is a retribution inflicted by nature when economic
development is carried out against ecological laws. The pollution and
damage to the environment not only harm the health of the people, but also
damage the material basis for social reproduction, thus bringing about huge
losses in society. According to the estimation in the developed industrial
countries, in the 1970's, the social losses caused by environmental pollu-
tion in these countries amounted to 3 to 5 percent of their gross national
product. This did not include the influence of the damage of resources,
which was far greater than the investment in preventing and controlling
environmental pollution. Obviously, it is not an all-round approach to
regard the environmental problem as merely a problem concerning social
welfare or environmental sanitation. Instead, it is a complex problem
related to the economic, technological and social fields in the national
economy.
The problem of rationally utilizing environmental resources is closely
bound up with social systems and the purposes of production. Engels has
pointed out that there are two basic reasons why mankind's production
activities cause damage to the environment: 1) The people have not deeply
understood the natural laws. They cannot correctly foresee the immediate
and far-reaching influences caused by the interference in nature by their
production activities. 2) The existing manners of production "are all
aimed at acquiring the most direct and the nearest beneficial results of
labor." ("Selected Works of Marx and Engels," Vol 3, p 519) In the
capitalist society, the purpose of capitalists in developing production is
to achieve maximum profits. Their only concern is the nearest and the
most direct results. They never take into account the relatively 'far-
reaching influence on nature and society. Nature is treated by them as a
place for dumping industrial wastes, and natural resources are wantonly
abused. The larger the scale of production, the greater the pollution and
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damage the environment will suffer. China is now practicing the planned
economy, which, as Engels said, "enables industry to be distributed
throughout the country in accordance with the principle that industry is
developed in a manner fitting itself the best and other production factors
can also be preserved and developed." As long as we pay attention to this
problem when working out economic policies, conscientiously use the planned
economy to coordinate the relationship between economic development and
environmental protection, rationally exploit natural resources rather than
one-sidedly intensify the exploitation, and adopt effective measures to
protect environment and natural resources in capital construction and pro-
duction, the phenomena. that the environment in China is polluted and
damaged can be gradually straightened out.
How should we coordinate the relationship between economic development and
environmental protection?
First, the balance between environmental protection and production con-
struction should be taken as an important item in the overall balance of
the national economy. This includes: 1) The balance between the consump-
tion of economic resources and the capacity for replenishing and regen-
erating by multiplying these resources, which ensures the interminable
utilization of the resources; and 2) the balance between the discharge of
waste and the capacity of the natural environment. By keeping this bal-
ance, we can prevent the deterioration of the environmental quality and
guarantee the quality of people's livelihood.
Second, conforming economic development with ecological laws should be taken
as an important item in the state's economic policies. For this purpose,
great efforts should be devoted to develop and spread the technology which
gives rise to few or no wastes in production, complies with ecological laws
and recycles and reuses wastes. When decisions are made on industrial
distribution and sites for industrial construction, the influence on the
environment should be properly taken into account. If severe unfavorable
influence will be caused to the environment, construction should be stopped
immediately.
Third, industrial technical transformation should include the control of
pollution. Technical transformation can help stop or reduce waste dis-
charges in technological processes, so as to raise utilization ratios of
various material and energy resources.
Fourth, targets for environmental protection should be included in state
plans and made subject to inspection. Industrial and mineral enterprises
should all bring environmental protection into the sphere of production
management.
Of course, contradictions cannot be denied between environmental protection
and economic development. They are opposites which promote and restrict
each other. It is impossible to keep the environment free from any pollu-
tion in the course of developing the economy. Within the limits of a given
period and scientific and technological conditions, it is also impossible to
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prevent natural resources and their regenerative capacity from being
reduced and damaged in the course of exploitation. The problem is how to
weigh the relationships between immediate and far-reaching interests and
between partial and overall interests. This calls for a summing up of
experience and an analysis of costs and benefits, so as to find out the
most economical and reasonable coordinated solution. At the same time, it
is necessary to strengthen scientific research to reduce environmental
pollution and resource damage to a minimum.
Last year, the State Council pointed out in the "Decision on Strengthening
the Work of Environmental Protection.During the Readjustment of the
National Economy" that environmental protection work should be handled by
linking it with various economic policies and measures in economic readjust-
ment. This is the starting point of working out environmental policies.
The pollution and damage to the environment in China accumulated for a long
time in the course of construction. It is painstaking work to solve this
problem. The reasons for this environmental pollution and damage, besides
the problems in understanding and economic management, can mainly be listed
as follows:
First, in most industrial.and mineral enterprises, the level of production
and technology is backward, equipment is simple and crude, and the utiliza-
tion ratio of resources is low. A great deal of valuable resources cannot
be fully utilized but are treated as wastes, and are thus polluting the
environment. The utilization ratio of energy resources is less than 30
percent, but smoke discharge is many times more than that in other coun-
tries. Many chemical products can only utilize one-third of their raw
materials. The consumption of water and electric power by quite a few
products is several times, even scores of times, higher than in other
countries. Effective composition of pesticides and chemical fertilizers
is small. Effective composition for pest control accounts only for 14 to
15 percent in BHC [benzene hexachloride] while ineffective composition,
which is the most harmful to people and animals, accounts for a large per-
centage. In addition, pesticides and fertilizers being spread on farmland
are mostly washed away, into the environment, thus bringing about severe
pollution.
Second, city planning has been neglected and industrial distribution is
not reasonable. This has aggravated the harm of pollution. Some factories
causing serious pollution have been set up in densely populated residential
areas, scenic spots and tourist resorts and even in the upper reaches of
rivers. For example, in the ancient garden town of Suzhou city, which is
also a cultural center with a history of more, than 2,400 years, about 500
factories have been concentrated in an area of less than 28 square kilo-
meters. In addition, 21 chemical factories which cause grave pollution
are set up around the urban areas; 10 printing and dyeing mills are set up
in the downtown area; and 3 paper mills are set up in the upper reaches of
the rivers. As a result, this disarrangement, with industrial areas mixed
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with residential areas and scenic spots and chimneys mixed with pagodas,
has severely damaged the natural beauty of this picturesque city.
Third, urban public facilities in cities are backward. In the 224 cities
throughout the country, only 50 percent of areas have a sewer system.
There are only 37 urban sewage treatment plants in the whole country. Only
2 percent of urban sewage can be treated while the other 98 percent is
discharged into rivers without being treated, thus resulting in a great
reduction in fish and affecting the quality of drinking water. Not many
large and medium-sized cities in China have heat and power plants and gas-
works. Along with the continuous increase in urban population and the
expansion of urban areas, the harm to the atmosphere and water pollution
caused by the urban wastes as well as noise pollution will become more and
more prominent.
Fourth, the environment is damaged due to the irrational exploitation of
natural resources. Examples can be found from the abusive exploitation of
mineral resources; the blindness in reclaiming land from beaches; the
excessive extraction of groundwater; and the excessive exploitation of
forest reserves. All this has not only damaged natural resources, but has
also unfavorably affected the environmental quality.
To solve these problems, in addition to deepening understanding and adopting
necessary management measures, a certain economic material force is also
needed. To handle environmental protection in China, we should proceed
from actual conditions, act according to our capacity in a planned way and
carry out this task in key units and by groups. We cannot set an unrealis-
tic target which is not part of China's realities and goes beyond the
objective feasibility. At the same time, neither can we exclusively trans-
form the part of the environment which has been polluted or exclusively
arrange facilities for purifying pollution. This will result in high costs
and slow effects. The work of environmental protection should be linked
with enterprise reorganization and management improvement, so as to stop
the large quantities of pollutant discharge due to artificial factors. It
should be linked with technical transformation, so as to fundamentally
control the rise of pollutants. It should also be linked with city con-
struction and transformation, thus adjusting the irrational industrial
distribution and structure, and also linked with the rational utilization
of natural resources, so as to maintain the regenerating and multiplying
capacity of the resources and maintain the ecological balance. The environ-
ment should be gradually improved with.economic development. And through
protecting and improving the environment, we can promote sustained economic
development.
All departments, trades and enterprises are involved in environmental pro-
tection. The state should, by working out the policies concerned, require
all departments, trades and enterprises to take environmental protection
into account along with various activities. Besides studying the overall
environmental policies, concrete policies in the aspects of economy and
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technology should also be studied to prevent pollution and protect natural
resources, so that the best environmental results and economic results can
be achieved with the fewest funds.
Policies should be shaped for controlling pollution in industrial and
mineral enterprises. Industrial and mineral enterprises are the key sec-
tors in pollution control. The past method that efforts are merely given
to transform the polluted environment should be changed. Through techni-
cal transformation, we can strengthen the environmental management in
enterprises and eliminate or reduce pollutant discharges in the course of
production. This can help to fundamentally resolve the pollution problem
as well as improve economic results and increase social wealth. The
Shanghai Gaoqiao Chemical Plant has previously caused serious pollution.
It had spent more than 3 million yuan to build 4 sets of polluted-water
treatment facilities before 1978, while only 8 percent of industrial waste
water could be treated. Since 1978, this plant has strengthened the manage-
ment and embarked on some small technical transformations which have
enlarged the treated portion of waste water to 86 percent. In addition,
they can recover 2,000 tons of chemical raw materials and products from
waste water in a year. These recoveries create a value of 3.4 million
y uan .
What policies should the department in charge of environmental protection
adopt to encourage and guide the enterprises to control pollution by link-
ing this work with production? The Chemical Industrial Bureau of Shenyang
has tried a policy of "exerting control on gross quantity of pollutants"
in some enterprises. After analyzing specific production technology of
each product and calculating the use of materials, they laid down the
requirements for the enterprises to control the gross quantities of pollu-
tant discharge. Results of the experiment have proved that this policy can
make the enterprises implement measures concerning aspects of management,
and procedures in production and technology, so as to closely combine
production management of enterprises with environmental protection. This
experience needs to be further summed up, perfected and promoted.
Policies should be shaped for utilizing and conserving natural resources.
For a long time, people always treated nature as an inexhaustible and free
resource. Their wanton exploitation has caused a great waste of resources.
In my opinion, environmental pollution is, in fact, a consumption of air,
water and other resources. So, polluters must take the economic responsi-
bility to recover the polluted environment. In order to conserve water,
mineral and forest resources, exploiters must bear the expenses in explor-
ing new resources and regenerating resources, and they can never utilize
these resources gratis. Imposing a resource conservation tax or setting up
funds for renewing resources can be considered. This could bring about the
following advantages: 1) It can prevent abusive exploitation. 2) It can
promote the reutilization of wastes, as prices of raw materials are raised.
3) It can induce the regeneration of resources. In recent years, some
municipalities have charged for the use of groundwater; others have laid
down control quotas for the use of surface water. This has effectively
forced enterprises to save water and conserve water resources.
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Policies should be shaped for controlling air pollution. In the past, the
main efforts were given to reforming boilers and municipalities have spent
a lot of money on this item, with a certain result achieved, but viewing
the urban environment as a whole, the result is not obvious. In recent
years, many scientists and technicians have suggested solving the air
atmosphere pollution problem by changing the'composition of fuel. However,
according to our material conditions,. coal will remain a major fuel for a
fairly long time. The methods of changing fuel composition or building heat
and power stations and gasworks to improve atmosphere quality will not be
practical in the near future. During the current economic readjustment, our
policies for controlling air pollution should be based on fully raising the
effective utilization ratio of the existing energy resources. There is
great potential in this field. The high-quality coal with low sulphuric
and volatile composition can be preferentially supplied for civil use.
Surplus heat in factories can be fully utilized. Other measures, such as
linking a group of boilers for heating and rationally utilizing petroleum
gas, can be adopted. If the utilization of heat energy in China can be
raised from the current 30 percent to 50 percent as in Japan, that equals a
savings of several hundred million tons of coal and reduces by several
million tons smoke discharge. Air pollution can thus be obviously light-
ened. As an industrial city, Fushun has wasted a great deal of energy
before. In this city, if utilization of heat energy can be raised to 50
percent, air pollution in this city caused by 1.1 million.tons of coal. a
year will be reduced. In recent years, Fushun city has linked the elimina-
tion of air pollution with the economy of energy. They have energetically
developed the utilization of surplus heat and the recovery of combustible
gases: heat energy created by power stations and industrial surplus heat
are used for heating. They are building a central heating system by making
use of the water cycling system in power stations. They are preparing to
recover the gas discharged from coal mines and the petroleum gas with high
calorific value from oil refineries to supply for civil use, thus basically
eliminating the pollution by smoke from kitchen chimneys. After the
accomplishment of these projects, they will not only save several hundred
thousand tons of coal, they will also remarkably decrease air pollution.
Policies should be shaped for controlling water pollution. Quite a few
technicians have suggested lightening pollution in rivers by building sewage
treatment plants. But the capital construction of these plants needs a
large amount of investment. In addition, industrial waste water is mixed
up with common sewage, and this makes it difficult to achieve an effective
result in treatment. Therefore, during the current economic readjustment,
it is not realistic to lighten pollution in rivers by relying on building
a large number of sewage treatment plants. Investigation in many areas has
shown that, in addition to the waste water discharged from urban industry
and life, river pollution is also related to the reduction in river dis-
charge. For example, the Huangpu River in Shanghai becomes black and foul-
smelling; the Songhua River in Jilin Province becomes polluted in dry
seasons; the pollution in the Suzhou Canal is aggravated; and all cases are
related to the reduction in river discharge. The reasons for the reduction
in water discharge of rivers are complicated. The most important reason
lies in the excessive use of water by agriculture. So, we cannot simply
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tackle water pollution. Instead, we must associate this work with
rationalizing the utilization of water resources. This needs a unified
plan, because. industry, agriculture, communications and transport, the
aquatic products industry and 'other departments are all involved in the
use of water resources, and a river generally runs across different admin-
istrative regions. It is imperative for the state to coordinate a solution
and organize regional planning and planning in river drainage areas. The
emphasis in reducing pollution sources should be placed on the economy of
water consumption. If the cycling system is in common use in industry, the
utilization ratio of water in industry can be raised and the water con-
sumption ratio can be lowered to a progressive level. At the same time,
some valuable resources in waste water can also be recovered.
Economic policies form an important means for environmental management. In
the first 2 years, the state has introduced the policy of granting awards
to those who achieve good results in comprehensive utilization. Many
provinces and municipalities have specified methods to charge the enter-
prises for discharging pollutants beyond the limits set by the state, and
impose fines for causing pollution accidents. The results of experiments
have proved that these economic policies can give a certain impetus to the
enterprises to do a good job in controlling. pollution. These should be
earnestly summed up and promoted. Henceforth, the reform of the national
economic system will give enterprises more decisionmaking power. When we
exert planned management on the environment, more attention should be paid
to studying the policies for environmental protection, so as to push the
enterprises to step up pollution control, and to correctly handling the
relationship between the enterprise interests and the state and people's
interests, so as to coordinate economic development and environmental
protection.
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CARRY FORWARD THE FINE TRADITION OF INTEGRATING THEORY WITH PRACTICE
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 31-33
[Article by Li Xu [7812 2485]]
[Text] The study of economic theories for the last year or so has brought
good results in enhancing the ideas and understanding of most cadres in
properly comprehending and thoroughly implementing the party's guiding
principles and policies on economic construction. In organizing study,
many departments and units stressed integrating theory with practice, paying
attention to our state's historical experience in economic construction,
clearing up the influence of "leftist" ideas, and integrating the study of
theory with the line, guiding principles and policies laid down by the
3d Plenary Session of the 11th CCP Central Committee. The results have been
very good. This greatly enhanced the understanding of many cadres of the
principle that modernization should start with our national conditions, of
the guiding principles of the, current economic readjustment, of the open
door policy and the policy of enlivening the economy and so on. Many cadres
went further to integrate individual working experience with the condition
of the units to improve management and stressed the importance of economic
results. They reaffirmed the orientation of the enterprises in vigorously
tapping potential, reforming and renovating and practicing expanded repro-
duction mainly by intension. They understood the necessity of establishing
and perfecting systems of agricultural and industrial production responsi-
bility. They cleared up the dialectical relationship between working in
accordance with the economic law and giving full play to subjective initia-
tive. Heartening changes in ideology and practical work emerged in units
where study had been handled well and cadres' spirits were strengthened.
A few units and cadres, however, did not study seriously. They did not pay
attention to the integration of theory with practice. When they studied on
their own, they did not study theory seriously, and they did not think
about or sum up the experience and lessons gained from their work. When
they attended seminars, they did not attach much importance to the study of
problems, they did not go into detailed discussion and they digressed from
the subject. They took seminars as a place where they could drag in all
sorts of irrelevant matters and where they could gossip and grumble. The
effect of these seminars was, of course, very little.
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This again shows that the integration of theory with practice is a principle
that we should follow. The key to scoring better results in the study is
whether we can stick to this principle.
The integration of theory with practice is a fine style of study formed and
promoted by our party after passing along a tortous road and undergoing
serious struggle. It is hard-earned and has much to do with our party's
cause. The main reason why some comrades do not pay attention to the
integration of theory with practice is that the negative effects of the
disruption of cadres' theory study caused by Lin Biao and the "gang of
four" is not yet totally eradicated. Lin Biao and the "gang of four," on
the one hand, disrupted cadres' systematic study of the basic theories of
Marxism and the all-round scientific system was broken up into irrelevant
phrases and words. They even treated correct theories as revisionism and
criticized them. Marxism was thus defamed. On the other hand, they forced
others to carry out the so-called guiding principles such as "taking short-
cuts," "studying first that which is more urgently needed," "getting instant
results," and "starting a revolution in their innermost being." They pushed
the party's principle of integrating theory with practice toward the crooked
road of pragmatism. They even used it to purge others. All these had nega-
tive effects on cadres' theory study, particularly on the integration of
theory with practice.
Since the third plenary session, our party has revived the scientific
features of Marxism-Leninism and Mao Zedong Thought and the fine traditions
of seeking truth from facts and of integrating theory with practice. This
has created objective conditions for the effective study and use of theory.
However, it should be noted that the disruption of cadres' theory study
caused by Lin Biao and the "gang of four" still, to a greater or lesser
extent, exerts a pernicious influence on some cadres' correct attitude
toward theory study and its integration with practice. We should not
overlook this problem. In recent years the practice of cadres' theory
study has shown us that it is necessary to set up a formal education system
of theory study, to provide incumbent cadres with systematic education on
Marxism. The systematic theory study will be aimed at resolving the prac-
tical problems of modernization. At present, it is therefore necessary to
place our emphasis on straightening out cadres' study style, and on achiev-
ing a better integration of theory with practice.
In light of the present practical situation of cadres' theory study, we
should first of all continue to advocate the serious reading of books in
order to integrate theory with practice. We should have a comprehensive
and correct understanding of. the theories of Marxism. The integration of
theory with practice has two aspects, namely theory and practice. The
study of the fundamental principles of Marxism is the basis for the inte-
gration of theory and practice and the resolution of practical problems.
If we do not understand the fundamental principles of Marxism and if we do
not have a good mastery of ideological weapons, we cannot have a correct
standpoint and method to observe and analyze problems, let alone achieve
the integration of theory with practice and the resolution of practical
problems. At present, only a minority of our cadres are equipped with the
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fundamentals of Marxist theory. The majority do not have a systematic basic
knowledge of Marxism. In short, the situation is not one where our cadres
have studied much but are confronted with dogmatic problems. On the con-
trary, they do not pay attention to theory study, they do not read a lot
and they have a poor understanding of theories. The integration of theory
with practice is aimed at "hitting a target with an arrow." In order to
hit the "target" of practical problems we should, of course, first have a
grasp of the Marxist standpoint, viewpoint and methods.
At the same time, in the course of study, we should seriously stress inte-
grating it with our work and thoughts. A majority of our cadres are
involved in the economic construction of our state and they have firsthand
experience with success or frustration. They also expect to obtain, from
theories, answers to the many practical problems arising in agricultural
and industrial production. This is a beneficial condition for integrating
theory with practice. It is not difficult to understand some basic theories
and viewpoints. if we study them in the light of the experience gained from
the economic construction of our state, and the practical conditions of
different districts and units. By applying theories to analyze practical
problems, we will be inspired and will come up with solutions to the prob-
lems. Subsequently, theory can play its role of guiding practical work.
Due to being busy with work, most cadres do not have a chance to soberly
think about the problems of work and ideology arising from reality.
Through theory study, we can proceed with systematic summary, so that our
ambiguous, superficial and perceptual understanding can be changed into a
clear, systematic and rational understanding. In this way, our capacity
for understanding can be enhanced and work can be done more efficiently.
Comrade Mao Zedong once said: "It is necessary to master Marxist theory
and apply it; mastering it is for the sole purpose of applying it." Today,
this sentence is still a good guide in our study of Marxist theory.
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IMPLEMENTING THE AGRICULTURAL PRODUCTION RESPONSIBILITY SYSTEM AND ADHERING
TO THE ORIENTATION OF COLLECTIVIZATION
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 32-35
[Article by Zhang Dajian [1728 1129 4675]; passages within slantlines pub-
lished in boldface]
[Text] Since the 3d Plenary Session of the CCP, the situation in the coun-
tryside has been excellent. One of the important factors for this situa-
tion is that various kinds of agricultural production responsibility sys-
lems have been implemented in the countryside. Is the implementation of the
responsibility systems contradictory to the adherence to agricultural col-
lectivization? How should the production responsibility systems be per-
fected along the direction of socialism? These are the problems that have
caused the people's concern. In my opinion, in order to answer the ques-
tions correctly, the most important point is to make clear theoretically
whether or not the implementation of production responsibility systems has
indeed changed the basic characteristics of the socialist collective
economy.
/1. To implement the production responsibility systems and to adhere to
the public ownership of the basic means of production have not changed the
socialist nature of the ownership of the means of production./
The socialist public ownership is compatible with the socialization of pro-
duction. Because the level of socialization of our agricultural production
is rather low, the socialist transformation of the private ownership of the
means of production in agriculture must adopt the form of collectivization;
in the collective economy, the portion of the public ownership of the means
of production prevails over a small quantity of the privately owned portion
of the means of production, the latter being in a subsidiary state.
Since socialist public ownership is a form of ownership compatible with
the socialization of production, all the means of production that pertain
to socialization (that is, the means of production-that can-only be used
collectively or that can be effectively used only by the collective) must
practice public ownership. In agriculture, the socialized means of produc-
tion consist mainly of the following:
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The first item is land (including farm land, forests, grassland, and so on).
In industry, land is only a condition for carrying on labor activities (the
site for labor, roads). In excavation or mining industry, it is only a sub-
ject of labor. But in agriculture, it is both a subject of labor and the
primary means of production. Furthermore, the land is limited in quantity,
and there is no other means of production that can substitute for it.
Therefore, the land is of paramount importance in agriculture. For the
socialist agricultural collective economy, the public ownership of land
is a must. Only in this way can the unified planning, comprehensive manage-
ment and "full utilization of land" with reference to the concrete condi-
tions and the rational utilization be implemented.
The second item is water conservation (including reservoirs, motor-pumped
wells, channels and so on). Water conservation is the lifeline of agricul-
ture. Water conservation facilities should be built and used by the collec-
tive so that the water resources can be fully opened up and exploited, and
the effect of the water conservation facilities can be brought into full
play.
The third item is the heavy-duty farming machinery and implements and means
of transportation (including big tractors, machine-drawn farm implements, '
trucks for agricultural use, agricultural by-product processing machines and
auxiliary maintenance appliances, and the like). Heavy-duty agricultural .
machinery can replace a great deal of manpower, be responsible for large-
scale operation or for processing a large quantity of products. Therefore,
they should be made full use of by the collective so as to obtain the best
advantage and "make the best use of the available things."
The fourth item is the buildings for collective production (:including
management houses, warehouses, workshops and so on). These buildings are
the requisites for all collective economy units.
The other means of production, such as small farm implements and tools,
animals for farming, animal-drawn implements, carts, manure, seeds and the
like, can be used by the collective as well as by the individual or the
household, and the effect of utilizing these means does not necessarily
depend on a particular kind of user, say, the collective. Therefore, if an
individual can purchase a certain kind of the above means of production,
he should be allowed to do so for his own use. If the item is beyond the
financial means of an individual, it may be bought by the collective and
subsequently assigned to be used and maintained by an individual. On con
dition that the basic means of production such as land are under public
ownership, for those less important means of production, whether they are
publicly owned, privately owned or jointly owned, the socialist nature of
the collective economy will not be altered.
For the means of production which belong to the collective ownership, when
implementing the responsibility systems with payment associating to output
such as the household output quota system and household labor quota system,
the quota contractor (including the group, the laborer or the household)
should undertake the operation and management of these means of production
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according to the terms of the quota contract. 'In other words, within the
period of the quota contract, these means of production are to be utilized
by the quota contractor. This will enable the contractor to achieve the
integration of power, responsibility and profit when using the means of
production, which will facilitate overcoming the drawbacks of blind
directing, "big gang operation," and sharing from the same big rice pot.
But new contradictions are bound to arise. Therefore, it must be
explicitly stipulated that the use of the collective-owned means of produc-
tion must be based on the acknowledgement of the rights of ownership by the
collective. This kind of acknowledgement is not an empty promise, and it
should comprise at least the following three aspects: 1) With regard to the
collective property being used, no group or individual has the right to
transfer, lease, mortgage, cast aside or destroy. On the quota contracted
fields, no person is authorized to build tombs, open mines, build houses,
bake bricks or cut trees without proper reason, or to alter the irrigation
channels. In order to prevent the publicly owned fields from being uti-
lized without conservation, thus causing degeneration of the soil, it should
be stipulated that the contracted land will be used by the same contractor
for a number of years. Special personnel must be assigned to take care of
.the farming animals, trucks, horses, and farm implements that belong to the
collective, or else these means of production may be evaluated and left to
the use and care of the individual, so that precaution can be made to avoid
the weight loss or even death of the.animals due to overutilization, and to
avoid the shortening of utilization life of the farm implements due to
carelessness or improper use. 2) The quota contractor must strictly adhere
to the terms and conditions set forth in the quota contract. Arrangements
must be made to ensure the fulfillment of quotas for the stipulated types
and quantity of the agricultural products, and the tasks of providing
products to the state and the collective must be completed on time. 3) If
there are misdeeds such as transference, lease, mortgage, destruction or ;
misuse of public property, or violation of the stipulated obligations in the
quota contract, they should be regarded as an encroachment of the public
ownership. In this case, the production brigade has the right to cancel
the contract and to get back the publicly owned means of production; in
addition, it also has the right to ask for reimbursement for the loss, or
even put the case before the court.
/2. The practice of the production responsibility systems and the integra-
tion of unified management and decentralized management do not change the
nature of the collective economy./
At present, our collective economy is built on relatively low productivity,
depending mainly on manual labor and animal-drawn farm implements. The
socialization of the process of production can only be embodied in the
division and collaboration of labor within a certain extent before this
situation is fundamentally changed. This has determined that the agricul-
tural collective economy must adopt the form of the integration of unified
management and decentralized management. The items that are necessary and
possible to be managed by the collective should be put under collective
management. The items or sectors of production which are suitable for
decentralized management should be managed through quota systems by the
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group, the individual or the household. In short, the adoption of unified
or decentralized management should be based on proper estimates in
accordance with the requirements of the production for specific agricul-
tural species. Because the level of development. is different with each
agricultural collective economy unit, the number of items of unified
management may vary to a certain extent, and the items of decentralized
management may be assigned to the group, to the labor individual or to the
household. In this respect, unification by administrative measures should
not be imposed.
Some people regard the household output quota and the household labor quota
as amounting to division of land and a return to individual farming, and
this is a kind of misinterpretation. In those places where the household
output quota and the household labor quota systems are implemented, the
household undertaking these tasks is still a member of the collective
economy, and it only adopts the form of individual management. Individual
management is essentially different from individual economy or individual
farming. The individual economy is built on the private ownership of the
means of production, and the production scale is very small when conducted
by the individual laborer himself. The land, animals for farming and the
farming tools are owned by the laborer, and all these can be leased, trans-
ferred or mortgaged; the species and the quantity to be produced are
entirely to be decided by the laborer himself; the agricultural by-products
are also at the disposal of the laborer himself. Such an economy is without
the support of outside sources and cannot sustain any natural or manmade
calamities. Under the conditions of commodity production, the division into
two extremes of richness and poverty is bound to take place. The household
output quota and the household labor quota systems are a form of manage-
ment and administration of the collective economy. The difference between
the quota systems and the division of land plus individual farming lies in:
1) the most important means of production (land).i.s still owned by the
collective; the individual can only use it, and has no power to lease or
sell it; 2) how to use the land, what is to be produced and what quantity is
to be produced are to be stipulated in. the quota contract which cannot be
altered at will by an individual; 3) the distribution of agricultural by-
products must satisfy the interests of the state, the collective and the
individual. In those places where the fixed output quota is practiced,
the output within the fixed quota figure should be handed over to the
brigade for unified distribution; in those places where the fixed labor
quota system is practiced, the fixed quota for state purchase and for the
reserve and distribution of the brigade should be fulfilled first, and then
the remaining portion can be retained and handled by the individual.
In correspondence with the integration of the unified management and
decentralized management, the form of labor organization of the agricul-
tural collective economy should also practice the integration of collective
labor and individual labor. Some people hold that collective economy should
only practice collective labor, and, what is more, they even interpret
collective labor as a scene where many people gather together to do the
manual labor.. This is indeed a one-sided view. Whether to practice collec-
tive labor or to practice individual labor should be based on the
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characteristics of a particular kind of farm work under certain types of
agricultural productivity. Under the present agricultural production con-
ditions of our country, with the exception of the farm work in the nature
of a shock task, fighting droughts, draining waterlogged fields and carry-
ing out agricultural capital construction work, and the like, which need
the collective labor and concerted efforts of many persons, the ordinary
farm work is more suitable for individual labor than for the collective
labor.
/3. The system of "to each according to his work" still prevails after the
implementation of the production responsibility systems./
The distribution of the products of the collective economy should take care
of the interests of the state, the collective and the individual. The pro-
portion between these three aspects should be appropriate, so as to main-
tain a simple form of reproduction, and to ensure that production can expand
gradually year after year under normal conditions, so that the standard of
living of the masses can be enhanced yearly. Regarding this problem, people
generally have the same cognizance. What should be studied earnestly is the
following question: What principle should be the basis for the distribution
of the portion gained by the individual within a collective unit?
Every unit of the agricultural collective economy is a unit that has inde-
pendent accounting and is solely responsible for any economic results in
the course of its management. It makes use of its own income to pay
general expenditures, to ensure reproduction and to provide for all the
members of the unit. With respect to the relationship between the state
and the collective, and between the collective units themselves, the income
is directly proportional to production results. Because the output of pro-
duction depends not only on the quantity and quality of the labor involved,
but also on the quantity and quality of the means of production, and also
on such objective conditions as soil, climate and. geographical location,
therefore, under different natural and economic conditions, different
income levels will result even though the same amount of labor has been
employed. Thus, between different collective units, equal pay for equal
work cannot be realized. In different collective economic units, the
peasants with the same grade of labor capability who have labored for the
same amount of work days may get widely different amounts of remuneration.
This situation is quite different from that of the state-owned enterprises.
As for the collective economy, the existence of this kind of differential
income must be recognized. If this difference is artificially eliminated,
it amounts to disregard of the difference of the means of production owned
by different collective economic units, and it amounts to the cancellation
of collective ownership.
Within the collective economic units, the members are equal in the
proprietary rights of the public means of production. Therefore, the income
gained in the course of production with the aid of the means of production
should be shared among the members, the difference in income being the
result of the labor efforts exerted by each member, and in this way the
principle of pay according to work can be practiced. The forms for
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distribution can vary: payment based on assessed work points; payment
based on section quotas;.or payment based on yearly quota in association
with fixed output and labor workload.
At present, the leading form is payment in association with output. This
form has been well received by the broad masses, because: 1) the quantity
and quality of labor are evaluated in accordance with the ultimate results
of the laboring process, thus preventing the disadvantage of equal pay for
unequal work, and'resulting in a heightened sense of responsibility; 2) it
is compatible with the nature of the continuity of agricultural production,
setting up an uninterrupted responsibility system year-round; 3) it
enables the laborers to have self-determination rights, so that they can
flexibly arrange their time for labor and adopt proper measures to
increase production based on the concrete conditions of the land. By this
means, the drawbacks of "mass production for all things irrespective of
objective conditions" and "equal share for everybody irrespective of con-
tributions" can be avoided.
Payment in association with output is a special form of the system of equal
pay for equal work. Through the fixation of production quotas based on
concrete soil conditions, and through the assessment of work points based
on output, the two forms of differential income are incorporated into the
operation of the collective units. The income gained by the quota con-.
tractors is basically in accordance with their labor performance. But the
system of payment in association with output is not completely equal to
distribution according to work, because the fixed quota groups, individuals
or households, in order to raise the output, in addition to doing their
normal work, have invested more private means of production in the publicly
owned land. Therefore, the difference in output reflects not only the
difference of labor quantity and quality, but also the difference of the
quantity and quality of their added investment in the means of production.
The difference between the fixed quota system and the payment in associa-
tion with output lies in the fact that within the fixed quota figure,
aside from the portion to be handed over to the state and to be kept by the
collective, the remaining portion will be at the disposal of the individual.
Some people hold that this practice is against the principle of unified
distribution of the collective economy. What on earth is unified distribu-
tion? If it is viewed superficially, the overall income or the income
derived from the fixed quota should be handed over to the collective, and
after the fulfillment of the state purchase task and of the reserve to be
kept by the collective, then the individual may get back his share; that
is, to hand over all the income first, and then to get back the individual
share afterwards, is termed "unified distribution." But as a matter of
fact, so long as the interests of the state, the collective and the indi-
vidual can be taken care of, the measure that can achieve this should be
called unified distribution. As to the forms of distribution, different
forms can be adopted according to the different conditions of the collec-
tive units. If the collective economic unit has a capable leadership, and
the operation of diversified economy and specialized quotas is conducted
effectively, it is-more appropriate to turn the fixed quota portion over
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to the collective for settlement, to exchange work points for.the output,
and then the above-quota portion can be wholly or partly kept by the
individual. If leadership is not so strong, or the production is not
multifaceted, the individual may get his own portion after the fulfillment
Of the state and the collective quotas. This straightforward way of
handling problems is more.tangible for the masses who can have direct
access to their own fruits of labor, while the unnecessary loss during the
course of. handling can be avoided.
The portion kept by the collective is the realization of the means of pro-
duction being owned by the collective. It is the source facilitating the
development and expansion of the collective economy, and this portion must
be handed over to the collective without any breach of contract.
To sum up, the various forms of production responsibility systems are the
only way for the consolidation and development of the collective economy.
With the development of production, the magnitude of the public property
will increase, the number of items of unified operation will rise, the
ability to help the difficult households to overcome their obstacles will
be strengthened, the division of labor and trades between the peasant
households together with the cooperation in specialized projects will
gradually develop, the production responsibility systems will be perfected
and the collective economy will become stronger and more prosperous day
by day.
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SHOULD PRODUCTION RELATIONS BE SUITED TO THE NATURE OF PRODUCTIVE FORCES OR
TO THE LEVEL OR CONDITIONS OF PRODUCTIVE FORCES?
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 36-37
[Article by Li Xiaobo [7812 2556 3134] and Chen Xiushan [7115 4423 1472]]
[Text] Historical materialists think that production relations are deter-
by productive forces. At present, there are about three ways of mentioning
this principle: 1) Production relations must be suited to the nature of
productive forces; 2) production relations must be suited to the level of
productive forces; 3) production relations must be suited to the condi-
tions of productive forces. We think that these three ways of mentioning
the principle are different but related. Which way is ultimately most
suitable depends on what angle one is speaking from.
If we look at the nature of productive forces, we are looking at the quali-
tative aspect of productive forces. The nature of productive forces refers
first and foremost to the nature of tools of production. Marx said: "The
difference between various economic stages lies in the question of how to
produce and by what means of labor, but not in what is produced. The means
of labor is not just a mechanism to gauge the development of the productive
force of mankind, but also an indicator of the social relations with which
labor is carried out." ("Collected Works of Marx and Engels," Vol 23,
p 204) From the stone tools used by primitive people to the bronze tools
used in'the era of slavery, from the manual grinders of the Middle Ages
to the steam grinders of the modern age, from the machine systems of the
modern age to the automatic systems controlled by electronic computers in
contemporary mass production, this long and uninterrupted process of
development of the means of labor is a process of the constant development
of qualitative change of quality of the productive forces.
That production relations must be suited to the nature of productive forces
was used in the writings of Stalin such as "Economic Problems of Socialism
in the USSR." He used it to analyze the question of differences in differ-
ent social formations being determined by differences in the nature of
productive forces. We examine different social formations principally
from the angle of the nature of the productive forces, therefore it is an
essential and basic aspect. Productive forces of a different nature create
production relations of a different nature. Marx said: "What the manual
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grinder produced is a society predominated by feudal lords and what the
steam grinder produced is a society predominated by industrial capitalists."
("Collected Works of Marx and Engels," Vol 4, p 144) Stalin discussed this
law in order to explain that the revolutionary class may make use of this
law to overthrow the existing production relations. Hence, it is even
easier to use the nature of productive forces to make this law outstanding.
Stalin emphasized the contribution of the nature of productive forces, but
did not push aside the problem of the level of productive forces. The
nature of productive forces may also mean that they have different levels,
too. For instance, the nature of productive forces in the Stone Age differs
from that in the Iron Age, hence, the level of productive forces is not the
same.
When we look at the level of productive forces, we are examining the situa-
tion of the productive forces from a quantitative point of view. Since,
regardless of nature, productive forces are always "the sum total of a
certain amount of productive forces" ("Collected Works of Marx and Engels,"
Vol 3, p 43), therefore it is necessary to examine the different levels of
productive forces and the structure, quantity and distribution of its impor-
tant elements within a certain period of time within a certain society. For
instance, the quantity, ratio and distribution of manual labor, mechaniza=tion and semimechanization in the whole productive activity. The level of
utilization of different energy resources, power, the degree of division of
labor, professionalism, specialization and socialization of production, and
so forth.
That production relations are determined by productive forces is a law
shared by all social formations. It is not only applicable to the
metabolism of all social formations, it is also applicable to the explana-
tion of different stages of development within a certain social formation'
and the interrelationship between productive forces and production rela-
tions within a certain stage of development. For instance, at the. present
stage, there exist simultaneously in our country different levels of pro-
ductive forces: There are highly socialized modern enterprises and there
is scattered production which is predominated by manual labor. When we use
this law to study how production relations could be suited to productive
forces, we have to consider the nature of productive forces, we also have
to consider the structure, level and distribution of different strata of
productive forces. Under such circumstances, it is possible to use this way
of mentioning the principle.
The "condition of productive forces" way of mentioning the principle is very
popular in the writings of Lenin and Marx. Marx said: "In a certain sit-
uation of development of the productive forces of people, there is a certain
form of exchange and consumption." ("Collected Works of Marx and Engels,"
Vol 27, p 477) Lenin also used this concept in his essay "Karl Marx." He
pointed out that 'Marxism "disclosed that all ideas and all the various
tendencies, without exception, have their roots in the condition of the
material forces of production." ("Collected Works of Lenin,".Vol 21, p 38)
We think the proposal that the production relations must definitely be
suited to the productive forces examines the nature and the level of
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productive forces from an integrated point of view. It includes the
restrictive character of the quality of productive forces and it also
includes the restrictive character of the quantity of productive forces.
Marx pointed out that "people in the social production in which they live
create a certain, necessary relationship which does not change according
to their will, that is, a production relation suited to the stage of
development of their material productive forces." ("Collected Works of
Marx and Engels," Vol 13, p 8) We understand that what is said here about
the fixed stage of development of productive forces includes the restric-
tive character of the quality of productive forces and the restrictive
character of the quantity of productive forces, and that means the condi-
tion of productive forces.
As is said above, the three ways of mentioning the principle are not
mutually exclusive but they are coordinated. Therefore, when they are used
by people they are usually not strictly distinguished.
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THE LIFE OF THEORY
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 37-38
[Article by Bao Xinjian [0545 1800 7003] of the Institute of Social Sciences
of Shandong Province]
[Text] Human lives depend on motion. The theories of the social sciences
depend on motion, too. That means that there is a need for continuous
development.
There are two views and methods of the theory of development. One is the
view and method promoted by Comrade Mao Zedong which emphasizes the unity
of theory and practice. The other is that which is embraced by a very
small number of people. This second view suggests that theory be separated
from practice and that theory be developed on paper alone. The former view
is correct but the latter is not.
The practice Marx mentioned is social practice in which the subject of prac-
tice is the masses of common people. Hence, the unity of theory and
practice is the unity of theory and the social reality and the unity of
theory and the common people. A theory which suits the needs of the common
people has unlimited vitality.
What do people and the society require of theories of the social sciences
at present? We can say that there are two principal requirements:
The first is popularity. The greatness of any correct theory depends not
only on that it correctly explains the world and reveals objective laws,
but also that it can be completely learned and understood by the people so
the theory itself can become the guide and the weapon to change the world.
The two.are consistent. It is only when a theory has been grasped by
people can it become an enormous material force that changes the world.
If theories were secluded in an ivory tower, even the best theory would
become useless. The present situation is that many cadres and a great
number of common people desperately want to study theory. The 6th Plenary
Session of the 11th CCP Central Committee has achieved "guiding the incor-
rect back to correct" over a number of theoretical problems. The cadres
and the people's fervor for theory, which was undermined in the 10 years
of internal disorder, has now recovered and is blooming too. They demand
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to study the basic theories of Marxism and Maoism systematically but not
trivially, deeply but not superficially, vividly but not without life. But
our systematic theoretical education is far from adequate. Among our
cadres, there is only a small fraction who have systematically grasped the
basic theory of Marxism. The situation among the common people is even
worse. This is a situation in which theory and practice are alien to each
other.
The second is the ability to answer concrete questions. Theory is a guide
to action. The fact that theory acts as a guide to reality is clearly
demonstrated in that it points out the direction of progress to the cadres
and the common people. It is also demonstrated in that it clearly answers
the theoretical questions raised by the cadres and the people in time so
as to clarify unclear conceptions and to remove ideological obstructions
to progress. At present, the cadres and the people have doubts concerning
the fields of politics, economics, philosophy, history and literature.
Their conceptions over a number of important theoretical issues are not
consistent with each other so that they more or less adversely affect
cooperation in the construction of socialist modernization. But some of
our theorists do not answer the questions completely or in time. Some even
avoid the questions. This is another situation in which theory and prac-
tice are divorced from each other.
In conclusion, a theory must be popular. It must be grasped by the common
people. Secondly, it must be united with reality. It has to answer the
questions raised by the cadres and the people. This is the inescapable
responsibility that a theoretical worker who works under new historical
conditions must bear. These two tasks complement one another. Only when
a theory clearly answers the questions raised by the cadres and the people
in time can it be welcomed by people and hence can it become popular; only
when a theory becomes popular can the perceptions of the cadres and the
people become unified and thus can the theory penetrate deep into the
hearts of the people. This is where the vitality of a theory exists. It
is also the correct path along which a theory develops.
Since the 3d Plenary Session of the 11th CCP Central Committee, a great
number of theoretical workers have achieved much in the study and publi-
cizing of theory. The result is remarkable. But some theoretical workers
are not interested in the above two important and honorable tasks. Some
think that it gives them little benefit to popularize theories, and that
there is no future in doing so; some think that the questions raised by
the cadres and the people are difficult to answer. It would be extremely
dangerous if the questions are not answered well. Governed by such per-
ceptions, some comrades neglect social reality and the needs of the people.
They are interested in issues which are outdated and trivial or are under-
stood by very few people. Sometimes they confine themselves to contro-
versies which have no value at all. In some fields, there are plenty of
academic conferences and periodicals, but the quality of some of the essays
is very poor, and some studies and some controversies are quite meaning-
less. How much good can the above-mentioned situations do in the construc-
tion of our socialist modernization and in the construction of our comrades'
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and our people's ideology? Such theoretical studies cannot help a theory
develop, but it could suffocate the life of theory.
We have said that at present theories have to be popularized and that
theories have to conform with the reality. We do not mean that we should
not study history, that we should not explore new areas of studies and that
we should not investigate new problems in our theoretical work; we also do
not mean that we are against those works which do not produce immediate
results but which we would find worthy of study if we judged it from its
long-term advantages. In fact the two are related in such a way that one
promotes the other and vice versa. Important theoretical questions raised
by the cadres and the people which require immediate solutions can always
become guides to the new fields in theoretical matters, and the explora-
tion of new frontiers cannot be separated from social reality and the needs
of people.
People desperately need a theory, and theoretical workers must plunge into
the fiery sea of society!
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REGIONAL NATIONALITY AUTONOMY IS A MARXIST POLICY
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 39-41
[Article by Wei Ying [7279 5391]]
[Text] Regional nationality autonomy is a basic policy of our party and
state in handling domestic nationality problems. The "Draft of the Revised
Constitution of the PRC" clearly stipulates: "Regional autonomy applies to
any area where a minority nationality lives in a compact community; in each
such area an organ of self-government shall be established for the exercise
of national autonomy. All the autonomous nationality areas are inalienable
parts of the PRC." This shows that our country will continue to implement
this basic policy.
As early as in 1938, in his report at the 6th Plenary Session of the 6th CCP
Central Committee, Comrade Mao Zedong had already expounded our party's
stand, saying that "all nationalities have equal rights with the Han
nationality and, under the principle of jointly resisting the Japanese
aggression, have the right to manage their own affairs and to build a uni-
fied country with the Han nationality." Later, in the "Administrative
Program of the Shaanxi-Gansu-Ningxia Border Region" promulgated in 1941 and
in the "Common Program of the CPPCC" promulgated in 1949, there were also
special articles on regional nationality autonomy. This was stipulated
more concretely and in greater detail in the first constitution of our
country drawn up in 1954. For example, its general principles stipulated
that "all nationalities are equal" and that "discrimination or oppression
with regard to any of the nationalities, and acts which undermine the
unity between them are prohibited." It also stipulated that all nationali-
ties have the freedom to use their own spoken and written languages and that
regional autonomy applies to any area where a minority nationality lives in
a compact community. Besides, it had a special section for the "organs of
self-government of autonomous nationality areas" and made concrete stipula-
tions on the organization of the organs of self-government of autonomous
nationality areas and various autonomous powers of these organs, such as the
autonomous powers in administering the finances of their areas, in organizing
their local public security forces and in drawing up statutes governing the
exercise of autonomy as well as separate regulations in the light of the
political, economic and cultural characteristics of the nationality or
nationalities in a given area. Our practice shows that these principles
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and stipulations in the 1954 constitution are all necessary and correct.
They have played an active role in the political life of the national
.minorities.
After 1954, another two constitutions were drawn up, of which the 1975 docu-
ment was drawn up in the abnormal situation during the "Great Cultural
Revolution." Although it also mentioned the organs of self-government in
autonomous nationality areas, there were no concrete provisions. It only
stipulated in abstract terms that autonomous powers can be exercised accord-
ing to provisions of the law, but did not mention concrete autonomous powers.
According to this constitution, there is no difference between the functions
and powers of the organs of self-government of autonomous nationality areas
and those of the general local state organs. This means that the autonomous
powers were in reality abolished and regional nationality autonomy existed
only in name. As to the 1978 constitution, it was drawn up not long after
the "gang of four" was smashed. We did not have enough time then to sum up
in an all-round way our experiences and lessons in the socialist revolution,
and socialist construction since the founding of the PRC and did not have
enough time to completely get rid of the "leftist" influence of the 10 years
of internal disorder in some articles of the constitution. Therefore
although some improvements were made in this document in comparison with the
1975 document, there were still no concrete provisions concerning the powers
in administering local finances and in organizing the local public security
forces in the articles concerning the organs of self-government of autonomous
nationality areas, and no new stipulations were made in accordance with the
development of the situation. Thus, it still could not satisfy the needs
of the new situation.
The draft of the revised constitution was drawn up under the conditions
that the 6th Plenary Session of the 11th CCP Central Committee had adopted
the "Resolution on Certain Questions in the History of Our Party Since the
Founding of the PRC" and our party had fulfilled the tasks of setting to
rights things which had been thrown into disorder in the guiding ideology
and had summed up the historical experiences in an all-round way. More-
over, opinions of all sides were solicited during 1 and 1/2 years of draw-'
ing up and revising this draft. On the whole, this draft is comparatively
more perfect and mature.
The characteristics of the concrete provisions of the draft of the revised
constitution concerning nationalities and regional nationality autonomy are:
While reinstating the principles and provisions of the 1954 constitution
concerning the'equality between all nationalities and regional autonomy as
well as the powers in administering the local finances, in organizing local
public security forces and in drawing up statutes governing the exercise of
autonomy and separate regulations, which are still of practical signifi-
cance at present, some new provisions have been added in the light of the
development of the national situation and the experiences in nationality
work. These include provisions that the principal administrative leaders of
autonomous areas shall be persons of the nationality or nationalities
exercising regional autonomy in those areas, and that the organs of self-
government of national autonomous areas independently administer. economic
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construction, education, science, culture, public health and physical cul-
ture in their respective areas under the guidance of the state plans. These
provisions are not only a guarantee for the organs of self-government of
nationality autonomous areas in exercising the powers and functions as
ordinary local administrative organs but also an extension of autonomy.
This marks the perfection and development of the system of regional
nationality autonomy in our country.
The extension of autonomy in this draft is of great significance. Our
experiences in the past many years show that in order to exercise regional
autonomy, the cadres, especially the principal leading cadres, must be
persons of the nationality or nationalities in those areas. In the past,
our party and state had paid constant attention to the training and
selecting of minority nationality cadres, but due to the sabotage of the
Lin Biao and Jiang Qing counterrevolutionary cliques during the 10 years of
internal disorder and the influence of the "leftist" ideology in our prac-
tical work, the percentage of minority nationality cadres was reduced by a
big margin. Principal leading cadres at and above the county level are
especially required. This is abnormal and should be resolutely changed.
By stipulating that."the chairmen of autonomous regions, heads of autonomous
prefectures and heads of autonomous counties shall be persons of the
nationality or nationalities exercising regional autonomy in those areas,"
the draft of the revised constitution has provided the comrades of the
national minorities with a powerful legal guarantee for taking up the prin-
cipal leading posts of the local autonomous governments at various levels.
Moreover, this will certainly expedite the work of the leaders at various
levels in the autonomous areas in training and selecting cadres of the
national minorities.
The extension of autonomous powers in administering economic construction
and other work is also of great significance. The economy is the founda-
tion. In order to radically change the face of the national minority areas,
it is necessary to forcefully develop the economy. A leading comrade in the
central authorities said that the key to doing a good job in nationality
work lies in the development of the economy. Without it, there will be no
development of culture, education or other work. It is necessary to give
first priority to production and the economy. The comrades who are engaged
in nationality work must first do a good job in promoting production and
helping the national minorities develop the economy. Otherwise they will
be taking the branch for the root. But the development of the economy in
the minority nationality areas must suit the economic conditions and
nationality characteristics in these areas. For this reason, the draft
stipulates that "the organs of self-government of national autonomous areas
independently administer the economic construction of their areas under the
guidance of the state plans." According to this provision, the autonomous
areas will be able to suit measures to their local conditions in the
economic construction, to display their strong points and overcome their
shortcomings and to achieve better economic results and a faster develop-
ment speed. Of course, the work in the other fields must also suit the
real conditions of the nationality areas. So the draft has also made
relevant stipulations in this respect.
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Regional nationality autonomy is a basic policy of our party and state,
which was formulated in accordance with the Marxist tenets on the question
of nationality and in the light of the realities and nationality charac-
teristics in our country. It is a guarantee of the legitimate rights and
interests of various national minorities and a guarantee of the unifica-
tion of our country and the unity between various nationalities.
"A nationality that oppresses other nationalities can never win liberation."
("Selected Works of Marx and Engels," Vol 2, p 586) This is a fundamental
principle of Marxism in dealing with nationality problems. It means that
the proletarian political party must oppose nationality oppression and must
realize equality between all nationalities. The policy of regional
nationality autonomy enables the people of minority nationalities in the
areas inhabited by them in a compact community to exercise autonomous powers
in administering the political and economic affairs as well as in administer-
ing education, science and other work in their respective areas under the
leadership of the party and the government in the unified big family of our
motherland. The draft of the revised constitution clearly stipulates that
"all nationalities in the PRC are equal" and that "the state protects the
lawful rights and interests of the various minority nationalities and
upholds and develops the relationship of equality, unity and mutual
assistance among all the nationalities of China." It also makes the above-
mentioned stipulations to ensure that all nationalities in China, no matter
whether big or small, enjoy equal rights. Acts which violate the lawful
rights and interests of minority nationalities and acts of discriminating
or oppressing them will inevitably dampen the enthusiasm of the masses of
minority nationality people and harm the fundamental interests of the state.
This should not be allowed and should be resolutely prohibited.
The draft of the revised constitution also clearly stipulates: "Discrimina-
tion or oppression with regard to any of the nationalities, and acts which
undermine the unity between them are prohibited; big-nationality chauvinism
and local-nationality chauvinism must be opposed." It emphasizes that "all
the national autonomous areas are inalienable parts of the PRC" and that
"citizens of the PRC are duty-bound to safeguard the unity of the country
and the unity of all its nationalities." Just as Comrade Mao Zedong said:
"The unification of our country, the unity of our people and the unity of
our various nationalities-these are the basic guarantees of the sure
triumph of our cause." ("Selected Works of Mao Zedong," Vol 5, p 363) Any.
act which injures and undermines the unity of the country and the unity of
all nationalities will do great harm to the country and the people of all
nationalities. Such acts can never be allowed.
Regional nationality autonomy conforms to the conditions of our country.
For a long time, China's various nationalities have created in common their
brilliant national culture and a unitary multinational country. Just as is
pointed out in the preamble of the draft: "The PRC is a unitary multi-
national country created in common by its various nationalities." The
people of all nationalities living on our territory of 9.6 million square
kilometers have shared weal and woe in the long-term struggles and have
established intimate and inseparable relations with one another. Especially
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since the founding of the PRC, as the socialist transformation has been
carried out and the exploiting system has been eliminated, the roots of
nonconfidence, discrimination and antagonism have been eradicated and
socialist new relations between all nationalities characterized by
equality, unity and mutual assistance have been established. All nationali-
ties in our country have become an entirety in which all nationalities
depend on and help each other. No nationality can do without the assistance
of the others. The Han nationality cannot do without the assistance of the
minority nationalities and neither can the latter do without the assistance
of the former. This is an objective reality independent of man's will. The
exercise of regional nationality autonomy is not only a guarantee of the
lawful rights and interests of various minority nationalities but also a
guarantee of this close relationship between various nationalities, charac-
terized by the unification and unity shaped in history for a long time.
Regional nationality autonomy is also in conformity with Marxism-Leninism.
When criticizing the fallacies of a Ukrainian bishop on the question of
nationality, Lenin pointed out that "no one can be protected from national
oppression unless the most extensive local and regional autonomy and the
principle of settling all state questions in accordance with the will of
the majority of the population (that is, the principle of consistent
democracy) are consistently put into practice." ("Collected Works of Lenin,"
Vol 19, p 380) Later, in his "Critical Remarks on the Nationality Question"
he also said clearly that "far from excluding local self-government and
regional autonomy, which has special economic and social conditions, a dis-
tinct nationality composition of the population and so forth, democratic
centralism necessarily demands both." ("Collected Works of Lenin," Vol 20,
pp 29-30) This is the road we have followed. As early as in 1947, the
Monggol nationality people established the Nei Monggol Autonomous Region
under the leadership of the party. After the founding of the PRC,
Xinjiang, Ningxia, Guangxi and Xizang Autonomous Regions were successively
established. Simultaneously, autonomous prefectures, counties and xiang
were set up in many localities. Our practice over the past decades shows
that only when regional national autonomy is exercised in our unitary
country can we resist foreign aggression and subversion and bring about
prosperity for the whole country and all nationalities. This is in keeping
with the interests of the people of all nationalities. This policy played
an important role in the past in uniting the people of all nationalities
and developing the economy and other work in the minority nationality areas.
Like a shining diamond, it will certainly radiate gorgeous rays in the
future on the road of common struggle by.the people of all nationalities
in building a modern and powerful socialist motherland.
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IDEOLOGICAL AND POLITICAL WORK FOR WRITERS SHOULD BE STRENGTHENED
Beijing RED FLAG in Chinese No 13, 1 Jul 82 pp 42-43
[Article by Liu Shaotang [0491 4801 2768]]
[Text] In the'past few years, there has been a boom in literary creation.
Many new writers have emerged one after another. This unprecedented pros-
perity is obvious to all. What is also obvious to all is the unhealthy
tendencies of some people. The vast majority of the comrades in the field
of literature and art have complaints about various phenomena harmful to
the socialist literary cause. They hope to change these unhealthy tenden-
cies which worry people, and restore and carry forward the glorious tradi-
tions of revolutionary literature.
At a time when we are commemorating the 40th anniversary of the "talks"
[at the Yanan forum on literature and art] Comrade Mao Zedong's 15 letters
to the people in the field of literature and art and Comrade Chen Yun's
"Problem on the Two Tendencies of the Party's Literature and Art Workers"
were published. Full of realistic significance, Comrade Chen Yun's article
makes us realize that an unhealthy tendency of elitism and arrogance also
exists in the field of literature and art at present. After studying this
article, I have realized more deeply that it is necessary to strengthen the
party's leadership over the work of literature and art. It is necessary to
strengthen ideological and political work in the field of literature and
art so as to change the unhealthy tendency.
Of all the arrogant behavior, the most serious is being arrogant toward the
party, thinking that one is cleverer than the party Central Committee. Of
all the elitist behavior, the most serious is doing anything one pleases,
thinking one's job is more special than any other profession.
In some people's eyes, the activity and boom in literary creation since the
3d Plenary Session of the 11th CCP Central Committee is not an achievement
scored under the guidance of the party's ideological and political line, but
the product of their own bold thinking, brave exploring and daring to break
into forbidden areas. In their view, the CCP Central Committee was pushed
forward by them. This ideology of being arrogant toward the party is
extremely wrong.
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Facts have shown how absurd this notion is. It was after the third plenary
session that the "leftist" mistakes in and before the "Great Cultural Revo-
lution" were corrected, the mistake of "two whatevers" was criticized, the
discussion on the problem of the criterion of truth was highly evaluated and
the guiding principle was formulated of emancipating the mind, getting our
brains into gear, seeking truth from facts and uniting as one. As a result,
the CCP Central Committee, after redressing wrong and bringing order out of
chaos, has resolved step by step many problems laid down by history since
the founding of the PRC, as well as new problems arising in practical life.
Hence, there has appeared inside and outside the party a lively situation
of thinking actively, conducting research into new cases and resolving new
problems. It was precisely the third plenary session that gave new polit-
ical and artistic life to most writers who have an ardent passion for
writing with their ready pens. Even for those comrades who claim to be bold
in thinking, brave in exploring and daring in breaking into forbidden areas,
some emerged right after the third plenary session, whereas others are able
to write new works different from those written under the rule of the "gang
of four" only after abandoning the guiding thought of "taking class struggle
as the key link" in creation and the creative method of "giving prominence
to three things." We would like to ask these comrades, in which aspect are
you cleverer than the CCP Central Committee?
Under the assault of the erroneous ideas following the emancipation of the
mind, some leading comrades in the field of literature and art have ideologi-
cal disorder. Regardless of the principle of party spirit and the socialist
nature of literary creation, they lavish praise on and indiscriminately
honor those writers who have unhealthy political sentiments and a low
ideological level, and on their works. They fail to pay sufficient atten-
tion to the important instructions of the CCP Central Committee, which are
of fundamental significance, perform their duties in a perfunctory manner
and cover up their mistakes. All this encourages some people's ideas of
being arrogant toward the party in the field of literature, and fosters
unhealthy tendencies.
In order to make the literary cause proceed and develop on the road guided
by the party, it is necessary to strengthen the party's leadership over the
work of literature and art, and the leadership force in this field.
What kind of people should be cultivated and praised? What kind of works
should be fostered and awarded? This is a problem of principle. We oppose
both the "leftist" method of strangling the talented people and destroying
literary creation, and also the unprincipled method of only fostering,
praising and awarding without educating, guiding and criticizing. News-
papers and magazines must be very careful in deciding who should be praised
and what kind of works should be awarded. They must listen to advice from
all aspects including the unit which the writer belongs to, and take it
seriously. They must not, on account of partiality for someone, lavish
praise on one point without considering other aspects. Although it is not
necessary to rush to a conclusion on controversial works, we cannot look
into the rights and wrongs of a case with equal treatment for both sides.
Controversies without distinctions between right and wrong are not helpful
but harmful to literary creation.
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A writer's labor has its own special feature. But a writer's position
should not be special. A writer must be an ordinary citizen, not a special
one. Communist Party member writers must be ordinary party members, not
special party members. It is not permissible to interfere in others'
affairs with your pen, without having your affairs interfered with by
others. We must not be inflated over a little popularity so as to ignore
the principle of party spirit and not be subject to discipline. It is
necessary for writers to reduce their activities and meetings at the upper
level. They must go deep into the basic units to share weal and woe with
the workers and peasants, so as to integrate their ideology and feelings
with those of the broad masses. In order to create works worthy of our era,
as well as take up the task of the era to cultivate socialist new people
spiritually, writers must have a sense of responsibility to themselves.
They must set higher demands on themselves than on others. They must not
only have the strong desire to serve the people and socialism, but also have
noble integrity, noble morality and noble character. All this demands us
to build up a firm communist world outlook with which to guide our creative
activities.
All in all, it is necessary to strengthen ideological and political work for
writers so as to create good works, build up a good style and make the
socialist literary cause more prosperous.
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THE GREAT SIGNIFICANCE OF STRENGTHENING THIRD WORLD COUNTRIES' UNITY AND
COOPERATION
Beijing RED FLAG in Chinese No 13, 1Jul 82 pp 44-47
[Article by Liu Yili [0491 5030 4539] and Li Shuqiao [2621 2885 2890]]
[Text] I
At present, the hegemonist policy pursued by the two superpowers--the Soviet
Union and the United States--and their heated contest on a global scale have
.seriously threatened the safety of a large number of Third World countries.
Especially in the Middle East, South Asia, Southeast Asia and other areas,
several "hot spots" have been created with endless years'of war and cease-
less trouble. Such countries as Afghanistan, Kampuchea and so forth have
suffered greatly as direct victims of aggression and occupation by hegemon-
ists. Many countries closely related to them have also been affected and
threatened, to varying degrees, giving rise to the question of concern:
"Who's next?"
The longstanding international economic order has put a large number of
Third World countries in a disadvantageous position in their economic
exchanges with developed countries. The gap between the rich and the poor
in the international economy is forever widening. The economy of developed
capitalist countries has for years been in a state of "stagflation." This
has also dealt a blow to the economy of many Third World countries and
brought them serious difficulties.
To maintain world peace and their own safety, the Third World countries have
made tremendous and persevering efforts, opposing aggression, expansion, war
preparations and arms expansion on the part of the superpowers, demanding
the withdrawal of Soviet troops from Afghanistan, urging the discontinua-
tion of Soviet support for Vietnam in its invasion of Kampuchea and Soviet
plans to dominate Southeast Asia, calling for the United States to stop
supporting Israel's policy of external expansion and apartheid and calling
upon the Soviet Union and the United States to first destroy their nuclear
weapons and reduce their arsenal of conventional weapons. These just demands
have met with the stubborn resistance of the two superpowers. The Third
World countries have demanded the establishment of a fair and rational
international economic order with the developed countries through
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consultation and the reform of the old international economic order. This
has also met with resistance, due to some developed countries' vested
interests.
The various factors above show that to stimulate the development of the
international situation in a direction favorable to the people of the
world, the Third World countries must strengthen unity and cooperation
among themselves. This is a matter of immediate concern.
There is a strong objective basis for the strengthening of unity and
cooperation among Third World countries.
1. The Third World countries share the same historical fate. From the
beginning of modern times, they have been reduced to colonies, semicolonies,.
other dependent states and have suffered greatly from colonialist and
imperialist oppression. Even today, the effects of a backward economic
and cultural state resulting from long colonial rule and national oppres-
sion are far from being eliminated.
2. The Third World countries are facing a common historical task. It is
that given political independence, they must uphold national sovereignty,
overcome the backward economic and cultural state left over from history,
do away with imperialist and feudalist influences and the remnants of capi-
talism in social relations, develop the national economy, win economic
independence, develop scientific, technical, cultural and educational
undertakings, improve the people's standard of living and seek continuous
social prosperity and progress.
3. No matter what the social system, the Third World countries are placed
in a similar position in today's international life. They are all being
,threatened or jeopardized by the policies of aggression and war on the part
of the superpowers. They are all receiving unfair treatment because of the
old international economic relations. They all demand upholding world
peace and establishing a new international economic order. Their interests
are synonymous where these basic problems are concerned.
Since the conclusion of World War II, with the vigorous growth of national
liberation movements in various countries and their continuous victories,
cooperation and unity has not ceased to develop among Third World countries.
First, the national liberation movements and the struggles for upholding
national independence in various countries support each other and are
directed at imperialism, colonialism and hegemonism. Their mutual support
and common struggle have played a very important role in the ability of
several Asian, African and Latin American countries to win independence and
maintain independence after the war, besides relying on the strength of
their own people.
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To uphold common interests, the Third World countries, through bilateral
and multilateral diplomatic activities, have strengthened mutual under-
standing and coordinated actions in international affairs. In 1954, China,
together with its neighbors India and Burma, jointly proposed the five
principles for peaceful coexistence. At the Asian-African conference held
in 1955, China and other participating countries made joint efforts and
again affirmed 10 principles to promote world peace and cooperation. These
have played a significant role in promoting unity and cooperation among
newly independent Asian and African countries. The nonaligned movement
which started in 1961 has also played a positive role in the unity of a
large number of Third World countries seeking a common goal. Some regional
organizations have continuously appeared in Third World countries. They
have done a lot of work stimulating economic cooperation and mediating
disputes at home and upholding common interests on the international front.
More and more Third World countries have broken away from the control of
imperialism and superpowers, have adhered to their own stand on inter-
national matters and have put forth their own views. For a fairly long
time after the war, the United Nations was a tool controlled by U.S.
imperialism. With newly independent countries joining one group after
another, there has been a major change in the balance of, power. Through
the common efforts of Third World countries, various UN conferences have
adopted some resolutions and declarations condemning imperialist aggression
and upholding Third World interests. These include the restoration of our
legitimate UN seat and the election at the end of 1981 of a person from the
Third World as the UN secretary general. All these bear eloquent testimony
to such a change.
The Third World countries have differed in the levels of their economic
development. But generally speaking, they all belong to the category of
developing countries. Since the war, the developing countries have stimu-
lated the development of the national economy through mutual cooperation
and have strengthened forces to counter superpowers and international
monopoly of capital. Such cooperation has assumed varied forms. Apart
from bilateral cooperation, there has also been the establishment of the
"Group of 77" (now with an increased membership of more than 100 states and
regions), some regional economic cooperation organizations, organizations
among raw material-producing countries and finished product-exporting
countries, and so forth.
With independence obtained, the developing countries have generally waged
'a struggle to reform the colonial and semicolonial economy. They have
denied imperialists and colonialists such special rights as opening up
resources, issuance of currency, income taxation, customs control, and so
forth. They have nationalized some foreign enterprises and have gradually
controlled the economic life of the state. Such reforms have been matched
with disruption and suppression from imperialist countries, which often
resort to such means as severing trade relations, imposing an economic
blockade and even instigating a coup and carrying out armed intervention.
The developing countries have relied on their own efforts and mutual sup-
port to achieve continuous victories. In the 1950's, Egypt reasserted its
sovereignty over the Suez Canal and defeated the British and French
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aggressor troops. In the 1970's, the Arab states used oil as a weapon (by
raising prices, reducing production, imposing an embargo, increasing their
share in a company's stock and realizing nationalization) to deal a heavy
blow to imperialist countries headed by the United States. Latin American
countries' have started a struggle to uphold territorial waters and protect
their own offshore resources. All this fully shows that given the awaken-
ing and unity of developing countries, international imperialism can no
longer freely control the economic rights of developing countries as in the
past.
In the early 1970's, based on their own experiences and lessons of many
years in fighting imperialism, colonialism and hegemonism, some developing
countries have raised the slogan of "rejuvenation through relying on a
group's own efforts." This has won widespread support from the Third World.
Since then, there has been further progress in economic cooperation between
developing countries. Trade between them has grown at a rate exceeding that
of trade with developed countries. There has also been increased coopera-
tion in joint ventures, projects on a contract basis, exchange of technical
know-how, and so forth, stimulating the economic development of the various
nations concerned.
The Third World countries and people are the main force in the struggle
against imperialism, colonialism and hegemonism. When the unity and
cooperation of the Third World countries are further strengthened and these
countries are more closely united, the superpowers and imperialists will no
longer be masters of the world situation and the whole international
situation will be changed.
The two hegemonist powers, the Soviet Union and the United States, have
always considered Europe an area of vital importance and the focus of their
global contention. Both sides have made great efforts to maintain and
expand their spheres of influence in this area and have thus brought about
a situation of sharp confrontation. In order to contend for possession of
favorable strategic points, they have respectively made great efforts in
making new deployment, occupying strategic points, controlling strategic
thoroughfares and conducting military and diplomatic activities. Some
Third World countries think that when they have conflicts with other coun-
tries or when they are threatened or invaded by a certain imperialist
country, they can possibly be sheltered by one of the superpowers. This
opinion is very dangerous. The former Afghan Government had signed with
the Soviet Union a "treaty of friendship and cooperation" which included
terms of joint defense, but it was subverted by the Soviet Union, and its
'territory was occupied. This is a serious lesson. History also shows that
when wars were waged by the imperialist powers scrambling for spheres of
influence, the first victims were usually weak and small countries. Before
World War II broke out, Germany, which was contending with England for
hegemony in Europe, had first swallowed up Austria and Czechoslovakia.
After the war broke out, it continued to occupy western Poland, Norway,
Denmark, the Netherlands and Belgium.
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At the same time, Japan, which was contending for the Pacific Ocean with
the United States and England, first occupied the Philippines, Malaya,
Indonesia and Burma. Therefore, the Third World countries must strengthen
the unity between themselves, unite with all peace-loving countries in the
world and make joint efforts in safeguarding world peace and opposing
hegemonism. This is a reliable guarantee for their independence and
security and will effectively stop the superpowers from expansion and
waging new wars.
In order to develop their national economy more healthily and free them-
selves from reliance on the developed countries, many developing countries
must also gradually improve their single-product and abnormal economic
structure left over by history. There are many difficulties at present in
this regard. The establishment of a series of new economic departments
requires a large amount of investment. The import of foreign capital from
developed countries is a method of solving financial difficulties. How-
ever, the most fundamental method is internal accumulation. Also, it is
necessary to actively develop mutual cooperation between the developing
countries. At present, the economic force in many developing countries has
greatly increased. This has provided a better material basis for mutual
cooperation. Since the oil-exporting countries in the Third World achieved
victory in the 1970's, their financial strength has been greatly enhanced.
Over the past few years, their contribution in aid in terms of national
productive value of other Third World countries has greatly exceeded that
of the developed countries and their loans have been given more favorable
terms. The national economies in certain Third World countries other than
the oil-exporting countries have also greatly developed, and their ability
to accumulate domestic funds has constantly increased. They also have some
surplus funds to export. Even in the most underdeveloped countries, if
joint measures are taken to raise money collectively, many things can be
done.
At present, the national industries of many developing countries, which have
a comparatively weak foundation, are confronted with competition from power-
ful international monopoly capital, especially of the transnational corpora-
tions. Some small countries are also faced with the difficulties caused by
their narrow domestic markets. If joint measures are not taken to resist,
the invasion of international monopoly of capital and to expand the scope
of their domestic markets, the national industries in these countries will
have difficulty existing and developing. It is more necessary for the
Third World countries to strengthen their unity and defend their national
industries as protectionism is gaining ground in the developed Western
countries. The "New Delhi consultation" conference convened in February
this year decided that talks on establishing a preferential world trade
system between developing countries will begin within the year. Some
regional economic cooperative organizations of the developing countries
have made it a rule to reduce or remit tariffs between member states and to
put into practice unified tariff rates to other countries. This is
obviously favorable to the development of their national industries.
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In order to speed up economic development, the Third World countries have to
import advanced science and technology from other countries. But some
developed countries are not willing to provide them with the most advanced
science and technology. On the other hand, quite a few developing countries
have also possessed science and technology, which-are relatively advanced of
are at the world advanced level, through their own efforts. They can import
from each other new technologies which suit their needs, require less
investment and are easier to master. There are good prospects for the
development of cooperation in this respect.
The superpowers are the main countries which benefit from the old inter-
national economic order. They have always opposed and obstructed in a
thousand and one ways the reasonable demands of the Third World countries
on reforming the international economic order. The United States is
striving to maintain its position as master of the world economic situation
and to keep the present international economic system intact, while the
Soviet Union is trying hard to rake in exorbitant profits from the
economically backward and undeveloped countries in its external economic
contacts. Most Third World countries have now recognized that in order to
reform the old international economic order, it is necessary to strengthen
their efforts collectively to promote their global negotiations with the
developed countries, and that economic cooperation between the Third World
'countries themselves on the basis of equality and mutual benefit and the
development of their economy through self-reliance are important component
parts of the new international economic order.
The current state of unity and cooperation between the Third World countries
is far from satisfying the demands of the international life and the desires
of the people in various countries. On the one hand, the disputes on
border, territorial, nationality and religious issues, which have been left
over by history, are still greatly obstructing the unity and cooperation of
quite a few Third World countries. When the contradictions become acute,
they can even result in armed conflicts or wars. Differences over some
current international issues have also led some Third World countries to
sharp confrontation. On the other hand, for the purpose of expansion and
domination, the superpowers often make use of the contradictions between the
Third World countries to sow dissension and stir up trouble. According to
whether or not a country follows their foreign policy, the Soviet hegemonists
have divided the Third World countries into two groups, that is, the "pro-.
gressive" and the "reactionary," and have been supporting some countries
and opposing others. They have also used Vietnam and Cuba as the "Trojan
horses" to disrupt the unity of the Third World countries. This is a
serious disruptive factor for unity within the Third World.
The contradictions among the Third World countries and those between the
Third World countries and the superpowers are fundamentally different in
nature. There are no conflicts of fundamental interests between the Third
World countries. Most Third'World countries have deeply realized from .
experience that the disputes between themselves left over by history can
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only be solved through peaceful consultations and not by war, so that fair
and reasonable solutions can be reached. It is particularly important to
guard against interference, provocation and estrangement by the superpowers.
When the disputes cannot be solved for the moment, it is necessary to pro-
ceed from the interests of the whole and seek a common ground while reserv-
ing differences so as to unite and oppose invasion and oppression by the
superpowers.
Many developed countries have looked down on the strength of the Third World
countries. Some people in Third World countries also fail to see their.
strength. It is correct for an article in Algeria's EL MOUDJAHID, which
commented on the economic cooperation between the developing countries, to
say that "if prejudices are discarded, talent is not the private property
of the industrialized countries. Any civilization has its own technology."
This article listed some examples of successful economic development and
mutual cooperation between developing countries, requiring the Third World
people to place faith in their own "ability of mutual assistance" and to
"establish unity on the basis of the civilization and progress of our coun-
China is a developing socialist country. It belongs to the Third World
and is a faithful and tested friend of the large number of Third World
countries. It has been adhering to the socialist foreign policy and prin-
ciples. Before many countries won independence, it had done its utmost to
support their struggles against imperialism and for national salvation.
After they won independence, it enthusiastically established and developed.
cooperative relations with them in the political, economical, cultural and
scientific fields. It has made contributions to promoting the unity and
cooperation between the Third World countries. Along with our successful
development of the construction of socialist modernization, the cooperation
between China and a large number of Third World countries will certainly be
promoted on a more profound basis, and the future looks bright.
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Beijing RED FLAG in Chinese No 13, 1 Jul 82 p 48
[Song by Zhang Dun [1728 24151 with lyrics by Zhang Shoushan [1728 1108
1472]]
[Text] I Am a Communist (tenor solo)
I. Whenever I think of that solemn moment--standing under the party's red
flag, I feel an upsurge of emotion, like a turbulent sea. My two rows of
warm tears are the foams of a'great sea. 0, I am a communist, I fight
north and south on many fronts, for the liberation of the people. I am
willing to offer my ardor and enthusiasm and my whole life to achieve the
ideals of communism.
II. I will never forget the solemn moment when the rosy dawn spread in
front of me. The bumpy road could not stop my marching steps, the fierce
wind and the heavy fog could not distinguish the fire of my confidence.
0, I am a communist. I fight diligently and conscientiously for the happi-
ness of the people and the state construction. I will fight until my last
breath, forever and ever, to achieve the ideals of communism.
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ABOUT SUITING MEASURES TO LOCAL CONDITIONS
Beijing RED FLAG in Chinese No 13, 1 Jul 82 inside back cover
[Article by Li Wanren [2621 8001 1804]]
[Text] Our country is a big country abounding in natural wealth. It is
richly endowed with natural resources and densely populated. It claims
abundant manpower as well. Nevertheless, the situation of development is
definitely unbalanced. Differences between various regions are quite big,
no matter whether natural or economic conditions are considered. Even in
the same county, there exist differences, great or small, between communes
as well as between brigades. In order to earnestly implement the principle
of "never loosening the grip on grain production and actively carrying out
diversified economy" in rural work, it is necessary to suit measures to
local conditions proceeding from the actual situation of the local region.
How do we realize suiting measures to local conditions?
First, there must be a comprehensive understanding of the conception of
"local conditions."
There is a great number of people who take suiting measures to local condi-
tions as suiting measures to the land. They only concern themselves with
the cultivable land at hand. They keep thinking that this piece of land
lacks nitrogen and that piece lacks phosphorous; they think about how much
land should be devoted to the growing of grain and how much to the growing
of cotton, rape, tobacco, and so on. Of course, this is not bad. However,
it is not comprehensive enough to take suiting measures to local condi-
tions to be only suiting measures to the land. The conception of "land"
does not only include natural conditions such as the varieties and reserves
of natural resources in. the local area, the area and the characteristics of
cultivable land, fields on the hills, grassland, rivers and lakes, the
advantages and disadvantages of weather conditions and so on. It also
includes social conditions such as the level of development of productive
forces at the time, the population and its structure, people's educational
level, their level of consciousness, customs and habits and so on and so
forth. Only after an overall understanding of these natural conditions and
social conditions is gained can it be considered as "knowing the local con-
ditions" and can measures be suited to them.
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Second, the core of agriculture implementing the principle of suiting
measures to local conditions lies in the correct handling of the relation-
ship between the production of grain and the diversified economy.
The proportions of agriculture, forestry, animal husbandry, fishery, indus-
try and sideline industry in the rural economy should not and cannot be the
same in different regions. The same is so of the proportion of grain crops
and cash crops in the plantation industry. Even in the same region, their
proportions in the rural economy should not and cannot be the same at
different historical stages. Generally speaking, the production of grain
crops is the main conditioning factor in agricultural structure. Only with
the development of grain production and with the guarantee of food can
there be any possibility for the development of the diversified economy.
The development of the diversified economy will, in turn, promote the
development of agricultural production. They condition each other, promote
each other and supplement each other. We lay stress on the active carrying
out of the diversified economy, but that does not mean the amount of grain
we have is too great and that the'production of grain is no longer important.
What we want to correct is not the idea and the practice of putting the
emphasis on the production of grain but the one-sided principle of grasping
grain and slighting the diversified economy. We want to correct the prac-
tice of not suiting measures to local conditions, and destroying the
ecological balance and the rational structure of the interior of agriculture.
Any practice that slackens grain production and reduces the area for grain
production at will and on a large scale on the excuse of developing diversi-
fied economy is also one-sided and incorrect.
Third, in order to implement the principle of suiting measures to local
conditions, one must thoroughly observe the overall situation to be able
to dialectically combine the measures of one place with the interests of
the overall situation and measures at one time with long-term interests.
The purpose of suiting measures to local. conditions is to speed up the
development of the productive forces. If one grows freely, thinking only
of the immediate interests and the interests of one place regardless of the
overall interests of the state and the collective and the long-term inter-
ests, it will be very hard to guarantee the healthy and long-term develop-
ment of productive forces, not to mention "suiting measures." The key in
dealing well with this problem lies in organically combining the local
region's economic plan with the state's.
While making economic plans, the state should not only take the social
demand into consideration but also the actual production power. The state
should not only concern itself with the people's interests at present but
also with the people's long-term interests. Therefore, apart from consid-
ering the concrete conditions, such as the local resources and the produc-
tion power, a place, a commune or a brigade should give thought to state
planning and how great the social demand is in making arrangements for their
own production plans. Thus they can decide what items and products should
be given priority in development and which should be produced in large
quantity. They should also consider what items and products should have
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their quantity controlled and how the quality should be improved and so on.
Only by conscientiously obeying the needs of the overall situation can one
make any plans that are feasible. If one thinks only of the immediate
interests and the interest of one place and blindly engages in production,
it will turn out that both the supply and demand will be unbalanced, and
thus waste and overstocking will result. Advantages might turn out to be
disadvantages. How can this be called suiting measures to local condi-
tions?
CSO: 4004/41 END
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