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What we have discussed so far are the distinguishing features of one as-
pect of agriculture, China's agriculture in particular. We should see

that there is yet another aspect. In terms of natural conditions, China's
agriculture belongs to the irrigated type in many places due to the
country's distinctive geographical and climatic features and long history
of development. Farmland water conservancy construction aimed at improving
the conditions for production, the battles against drought and waterlogging,
day-to-day irrigation and the prevention and cure of plant diseases and
insect pests are strenuous jobs that cannot be done separately on a house-
hold basis. They require unified implementation and coordination on a
fairly extensive scale. In terms of the development of the productive
forces, when we make the above basic assumptions about rural productive
forces, we must not overlook these facts: while our means of production are
generally backward, some advanced production tools and facilities do exist;
while division of labor is not well-developed on the whole, we do have a
diversified economy and certain links of production are developing in the
direction of specialization; while the cultural and scientific level of the
producers is generally not high, a number of competent technicians and
management personnel have come to the fore. This makes it imperative for us
to carry out unified organization and make unified arrangement in connection
with the utilization of certain advanced means of production and the
specialization of certain links of production. In addition, we must also
see the interdependence between agriculture and socialized industries in the
cities. This relationship demands that the state not only must regulate
industry in a conscious and planned way but must do the same for agricul-
tural production. To do this, it is necessary to make use of the coopera-
tive economy. That is why even in places which do not have big and advanced
production facilities and do not have coordination based on division of
labor, it is necessary for the cooperative economic collective to exercise
restraint and control over some basic aspects of the production process

as decentralized and independent labor is being carried out.

In short, China's agriculture is special in that it calls for decentralized
and independent management on the one hand and unified management on the
other. The original form of the collective economy is ill-suited to China's
agriculture because it excludes one very important aspect, that is, de-
centralized and independent management.

The valuation of work and registration of workpoints and distribution
according to workpoints earned is a method of distribution that corres-
ponds with centralized labor and management. This wethod of distribution
is also basically not suitable for the special features of China's agri-
culture. In most cases, the fruit of agricultural labor can only find
expression in the ultimate yield, or the final product. Agricultural labor
does not normally produce intermediate products. The production cycle is
long, but labor is not performed everyday. Sometimes it is busy; some-
times it is leisurely; and sometimes it only needs a little looking after.
Moreover, the conditions of agricultural labor are very complicated and
are constantly changing. Therefore, it is very difficult to measure the

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international situation and to limits allowed by our state's strength and
is fixed and readjusted so as to glean the truth from facts. In the
1950's, when our country was under blockade, encirclement and imperialist
threat, the state emphasized the modernization of our national defense
and allocated a larger amount of funds to it.

Nevertheless the funds were still limited and fell far short of demands
posed by various aspects of our national defense modernization. If we had
used those funds equally in all areas and tried to develop everything, we
would have achieved nothing or would have succeeded in minor projects and
failed in major projects. Therefore, we had to concentrate the limited
amounts of funds on projects that were most important, most urgently

needed and could have an impact on the whole situation, and we had to
develop our national defense modernization in a planned and systematic
manner. In 1956 the CPC Central Committee decided that developing guided
missiles and atomic energy were the two key projects in our national defense
modernization and, moreover, that developing strategic missiles was the key
to the development of guided missiles and the construction of the nuclear
fuel production base and the development of atomic bombs as the key to the
development of atomic energy. Facts have proved that this was a completely
correct decision, for it was based on conditions in our country and intended
to achieve a relative advantage despite our country's weak economy and sci-
entific and technological strength. Our work in developing guided missiles
and atomic bombs started relatively late but the speed of development was
relatively quick. One important reason for this was that we centralized our
organization, vigorously carried out coordination and cooperation, gave
priority to key tasks and concentrated our resources of labor, materials
and funds.

Undoubtedly, modernization of our national defense must be based on our
national economic construction. At the same time we should not fail to see
that development of our national defense ‘modernization will certainly
vigorously promote the development of all other sectors of the national
economy. Successes in developing strategic weapons and satellites were
accompanied by development and breakthroughs related to new materials,
technology, techniques and equipment. New achievements in the scientific
and technological field of national defense are naturally used, first of
all, in war industry, but once they are transplanted in civil industry,
many new products will emerge one after another. This will spur the emer-
gence of new sections of industry and of learning. We have quite a few
examples for this in both Chinese and foreign history. In the future we
should implement the principle of "combing both the army and the people
and both war and civil industries, giving priority to military supplies

and raising funds for war industry through the development of civil products.
We should reform the structure of our products, play up the war industry's
strong points in equipment and technology, contribute to technical renova-
tion in civil industry and tap our war industry's production potential so
as to produce more civil industrial products to serve urban and rural people.
Thus we will make war industry an important force in promoting the develop-
ment of economic construction and science and technology.

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ZHANG AIPING WRITES ON DEFENSE MODERNIZATION
HK161144 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 21-24

{Article by Zhang Aiping [1728 1947 5493]: "Several Questions Concerning
Modernization of National Defense"]

[Text] Since the founding of the PRC, the CPC Central Committee time and
again has called for building up a modern and regular revolutionary army.
Recently Comrade Deng Xiaoping pointed out: "We must improve our military
equipment and speed up modernization of our defense on the basis of continu-
ous development of our national economy." This has further clearly pointed
out the orientation for building up our army. We should strive hard to
realize this magnificent goal.

I

Marxism holds the view that the aim in a war is to preserve ourselves and
wipe out the enemy. The principle of war is to achieve the greatest vic-
tory at the smallest expense. To achieve this, we should depend not only
on political factors but also on the correct strategy and tactics of the
war's commanders, the sophisticated nature of our military equipment, the
quality of our personnel who use the equipment, etc. We do not believe
that weapons alone decide the outcome of war, but weapons are an important
factor and play an important role in a war. Therefore, all parties in

a war strive to use the most sophisticated weapons to arm their own armies.
As Lenin said, "If an army does not want to master all weapons and all
means and methods of fighting that its enemy has already acquired or will
acquire, everybody will think this army is acting in a foolish manner."
("Selected Works of Lenin," Vol 4, p 249)

Our party has always attached great importance to the role of weapons in
wars. When we were weak and had only big knives, spears and hand grenades
as weapons, our slogan was "Fight the kind of war that is suited to our
weapons." Under those days' conditions we could only carry out guerrilla
wars. However, we did not wait passively. On the contrary, while we gave
full play to our existing military equipment, we tried every possible way
to seize advanced military equipment from the enemy and improve and
develop our own military equipment under very difficult conditions. After

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"HONGQI' DISCUSSES HOW TO WRITE GOOD ARTICLES
HK040440 Beijing HONGQI in Chinese No 5, 1 Mar 83 p 49

[Article by Huang Weiting [7806 5517 3957]: "Talking About Merits and
Demerits"]

[Text] It has become a subject of common discussion among people that some
articles in newspapers and magazines are too long and that it requires
patience to read through such articles. They have also suggested that more
short articles and brief comments be written, with emphasis on efficiency.
Such views are very good. However, I think some articles are not welcomed
mainly because they are too wet; in other words, they contain too much
"water."

The purpose of an article is to "express one's ideas"; the article may be
long or short, depending on its content. The key question is whether the
article is convincing. Some articles contain several or even 10,000 words
but they are able to reason things out profoundly and, therefore, they are
interesting and absorbing and grasp the people's admiration. On the other
hand, although some articles are short, they contain hollow words and
nonsense and therefore they are disgusting. We cannot say that the
"Manifesto to the Communist Party" is a short article, but with a style of
a genius, this article has been able to thoroughly, vividly and scienti-
fically expound the historical tasks and world outlook of the proletariat
and, therefore, although it was written a hundred years ago, it remains a
soul-stirring document with fluency and verve. Some of our theoretical
articles are not very long, but they contain something superfluous and they
are wordy and repetitive, and even after readers have read them, they still
do not know what the writers are trying to say in tleir articles; such
articles cannot but spoil one's appetite, Of course, we cannot say that
such articles contain only nonsense, as they may have exceptional insight,
but it is a pity that such insight has been inundated by a "flood." In his
book "Episode of Literary Quotation," Yu Jideng of the Ming Dynasty wrote
the following interesting paragraph:

"In the year of Hong Wu, Ru Taisu, minister of punishments, wrote more than
10,000 words to report his work, and Emperor Zhu Yuanzhang ordered his
subordinates to read the report time and again, although there were only a
little more than 500 words that made sense. The emperor sighed and said:
"I ask you to air your views, and your views should be practical and in the
interest of the country; flowery words will only confuse what one hears.

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that the ratio of female babies to male babies has already dropped to

1:4 or 1:5. If we do not resolutely put an end to this malpractice but
allow it to spread, not only a large number of serious social problems
will emerge, but the danger of losing the family line may become a reality
for many families.

Concerning the problem related to descendants, a true revolutionary is not
only free from the fetters of the outworn idea of regarding men as being
superior to women, but has a deeper and more far-reaching insight. A
revolutionary regards his children not only as his own descendants but
also regards and educates them as the successors to the revolutionary
cause. During the years of the revolutionary wars, for the interests of
the revolution and for the happiness of the people, many people shed the
blood and gave away not only their own lives but those of their children.
In the period of socialist construction today, there are still quite a few
parents who have either sent their children to the front in the borders to
defend the motherland or teach their children to devote themselves to the
motherland's cause of construction. A revolutionary treats himself and
the revolutionary cause as the same entity, therefore, he is concerned
first of all about the question of whether the revolutionary cause has

any successors to carry it on. The whole next generation of the revolu-
tionary cause constitute the descendants of the revolutionaries. This is
the viewpoint of a revolutionary on descendants. Should those CPC and CYL
members and CPC cadres who have up till today been dominated by the outwarn
idea about "heirs" and who have resisted the state's policies of planned
parenthood and neglected the rights and interests of the women not correct
their thoughts in accordance to the requirements for a revolutionary?

Since daughters as well as sons are descendants of their parents, they also
have the responsibility and duty to support their parents. The old idea
and habit that "married daughters are like thrown-away water" thinks that
women have no right or duty to support their parents and even regards it
as shameful for parents to depend on their daughters for support. This
idea does not have a legitimate position now as it had in the old society,
though it continues to stubbornly exist in the minds of many people.
"Grown-up children have the duty to support their parents" has already
been written into the new constitution. Along with the strengthening of
the education in the legal system and thd development of the activities of
building up spiritual civilization, the practice of husbands and wives
jointly supporting the parents and old people of both families will become
increasingly common. We are determined to popularize this new idea and
new custom throughout society and form a new social relationship among all
the people in our society.

In our society, women as well as men have the ability to support their
parents and old people. True, because of some historical reasons and
disparity in physical strength, women are weaker than men in some aspects,
but they are superior in some other ways. Whether in manual labor or
mental labor, men are generally inferior to women in some aspects. Take
rural areas for example, the women there cannot only play the role of the
half of the labor force in the farm work in the field, but they can also

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historical situation, our party has, in the light of the new conditions

and problems, taken a new step forward in adhering to and developing Marxism.
We have gradually established a correct path of socialist construction that
is suited to our national conditions. This has not only put our country's
socialism onto a road of healthy development, but has also added new wealth
to the treasury of Marxist theory.

In his speech at the opening meeting of the 12th Party Congress, Comrade
Deng Xiaoping pointed out: "In carrying out our modernization program, we
must proceed from the realities in China. Both in our revolution and con-
struction, we should also learn from foreign countries and draw on their
experience. But mechanical copying and application of foreign experience
and models will get us nowhere. We have had many lessons in this respect.
To integrate the universal truth of Marxism with the concrete realities of
China, blaze a path of our own and build socialism with Chinese charac-
teristics--this is the basic conclusion we have reached in summing up long,
historical experience." Through years of groping and summing up of our
experiences, we have already gradually clarified the major features and
basic outline of the path of socialist construction with Chinese charac—
teristics and have formulated a series of concrete policies and measures.
In the economic sphere, we have discovered Many systems and measures for
the enlivening of our economy. Under the prerequisite of maintaining the
dominance of the state-owned economy, we allow all kinds of ownership in-
cluding public, collective and individual ownership to coexist and allow
them to play their positive role within their prescribed limits. Under the
prerequisite of adhering to the principle of regarding planned economy as
the core, we have given play to the Supplementary role of the regulation of
market mechanism. Under the prerequisite of adhering to the principle of
centralism and unity, we have increased the decisionmaking power of our
enterprises and production teams, implemented diverse forms of production
and management responsibility system and are thus able to give play to the
initiative and creativeness of the units and individuals at the basic level.
Under the prerequisite of adhering to the principle of maintaining inde-
pendence and keeping the initiative in our hands, and of self-reliance, we
have opened up to the outside world. In the political sphere, we have
become aware that we must correctly assess and handle the class struggle
which exists within a certain scope after the exploiting class was wiped
out as a class, and that we must develop socialist democracy, perfect the
socialist legal system and turn our democracy into a part of our system
and write it into our law. In the ideological and cultural sphere, we
have stipulated that building socialist spiritual civilization with communist
ideology as the core is an important characteristic of socialism and fully
confirmed the strategic position of science and education in our socialist
construction and the important role of intellectuals. In the sphere of the
building of the party in power, we have raised the idea that we must per-
sist in exercising and improving the party's leadership, forbid any form
of personality cult, strengthen our party's democratic centralism and the
ties between the party and the masses of people, ractify party work style
and regard the problems related to party work style as "matters of vital
importance for a party in power," and so on and so forth. Raising and

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livelihood. Peasants' income and workers' wages also greatly increased.
All these facts reflect the great success of implementing the "eight-
character" guiding principle. Of course, readjustment also includes read-
justment of the composition of products and technology, the structure of
enterprises and other organizations, and so on. This kind of readjustment
is a task which needs a longer time and greater efforts to accomplish.

To shift economic work onto the path of taking the enhancement of economic
benefits as the core is a very important principle for guiding economic
work laid down by the CPC Central Committee after the third plenary

session. In 1981, at the 4th meeting of the 5th NPC, Comrade Zhao Ziyang
put forth 10 guiding principles governing economic construction, and the
core of these principles is the enhancement of economic benefits. He said:
"From now on, in considering any economic problem, we must basically proceed
from the enhancement of economic benefits, so that our country's economy can
continue to develop more satisfactorily." Over many years, the path we took
was one of stressing capital construction at the expense of production, with
a high accumulation rate and low efficiency. We were enthusiastic about
carrying out capital construction on a large scale and amassing large sums
of funds to build new factories, particularly heavy industrial plants which
take a great deal of money and time to build. Old enterprises always
remained backward, prodigiously consuming materials and raw materials and
producing goods of low quality, because little attention was paid to the
improvement of management and operation, or paid to the renewal of equipment
and technological transformation. Superficially, the rate of growth of
production was not slow. Actually, economic benefits were poor and the
people did not enjoy many material benefits. In light of this situation,
Comrade Chen Yun said: '"In carrying out our four modernizations, aside from
starting a certain number of large-scale projects, we should place our
emphasis on tapping the potentials of our country's existing enterprises,

bringing about innovations in them and transforming them." "We must assign
priority to production over capital construction, and to tapping potentials,
innovation and transformation over building new plants." This means we must

expand social production by developing the existing enterprises' role,
rationally carrying out technological transformation, reducing consumption,
improving quality and raising efficiency. This is a new method characterized
by a relatively realistic growth rate, greater economic benefits, and more
material benefits for the people.

/When we study the third main point, we must pay special attention to under-
standing the following: first, why the grasping of agriculture is of primary
importance, and what are the principal measures taken; and second, the great
significance of implementing responsibility systems whereby contracts are
based on output./

Since the third plenary session, the CPC Central Committee has assigned top
priority to grasping agriculture, considering it as the central link which

gives impetus to the entire economic construction. The reasons are as
follows: 1) out of our country's population of 1 billion, some 800 million

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can we give rise to a sense of urgency and the conscious action of modestly
learning from the masses, maintaining close ties with the masses and al-
ways relying on the masses. Many of our leading party cadres have done
very well in this respect. They have gone deep into the factories, mines
and rural areas or the targets of service in their own system in the capa-
city of common workers to participate in labor and conduct investigations
and study so that some of the longstanding problems have been very quickly
solved. By staying at a respectful distance, the masses have also learned
to admire them and to know them well. If we do not look up to the masses
or even despise them, do not consider them to be the masters of society .
and adopt the attitude of I am the leader and you must obey and when I .
give orders you must implement them, we not only will be unable to obtain

the support of the masses but we will also have great difficulty in achiev-

ing success. Any party cadre, no matter how great his achievement or

accomplishment, should give the credit to the party and the people and

not claim the credit for himself and become arrogant. If he regards his

rightful duties to the people as capital for getting things from the party

and the people, or starts to complain and even becomes antagonistic at the

slightest grievance, this is precisely a sign of impurity in party spirit.

For such comrades, completely remolding their world outlook is in fact the

key to always keeping the masses in mind.

To solve the question of world outlook, we must establish lofty communist
ideals. Only with communist ideals can we have a lofty ideological plane
as well as noble morality and sentiment, and can we handle the relations
between individual interests and mass interests with a communist spirit
and succeed in attaching primary importance to others, to the masses, to
the interests of the people and to the needs of the revolution. The good
fighters of the Lei Feng type, good workers of the Wang Jinxi type, good
cadres of the Jiao Yulu type, and good intellectuals of the Luan Fu,

Luo Jianfu and Jiang Chuying types... they seek not personal fame or gain
and are afraid of neither hardship nor death. They never seek to benefit
themselves but only to benefit others and devote all their energies to
bringing benefit to the people and bringing credit to the country and
nation because they possess such lofty ideals. On the other hand, the
main reason for those who care only for themselves, regardless of others,
and only seek to benefit themselves, without paying attention to the
sufferings of the masses, is that they lack lofty ideals and have for-
gotten the great communist goal. They are unable to break away from their
narrow individualist outlook and low vulgar taste. All communists, regard-
less of whether old or new party members, should kcep on remolding their
world outlook, preserve their communist party and always remain an ordinary
member of the working people. >

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completely wrong. Building China into a modern socialist country with

a high degree of culture and democracy is a common desire of people
throughout the country, and this is also in the fundamental interests of
people throughout the country. To fulfill this great historical task,
simply relying on good desire will not do, and ignorant recklessness also
will not do. We must rely on advanced science and technology. From this
we know that intellectuals’ value is in their knowledge and their grasp
of science and technology. Bringing their role fully into play is of de-
cisive significance toward realizing the four modernizations. Lenin said:
"A communist society cannot be built in an illiterate country" ("Selected
Works of Lenin," vol 4, p 357) and if we "cannot guard as the apple of
our eye every specialist who does his work conscientiously and knows and
loves it, it will be useless to expect any serious progress in socialist
construction." ("Selected Works of Lenin," vol 4, p 591) The reason we
are attaching importance to knowledge and to intellectuals is because of
the needs of building up China, and also because of the needs of the
fundamental interests of the people. The concept of despising knowledge
and intellectuals is harmful to both the state and the people. All
communists who sincerely work in the interests of the people .must respect,
befriend and care for the intellectuals, enthusiastically help them solve
various difficulties in their work and livelihood, and guarantee the
implementation of the party's policy toward intellectuals.

At present, the various fronts are carrying out reform in a guided and
measured manner in accordance with the general policy of "proceed from
reality and comprehensively and systematically carry out reform in a reso-
lute and orderly manner." The reform is a revolution which will contribute
to building socialism with Chinese characteristics, making the country
vigorous and flourishing, and bringing prosperity and happiness to the
people, and it fully accords with the interests of the broad masses of
people. Active participation by communists in the reform is the most prac—
tical action of working for the interests of the people as well as imple-
menting the line, policies and principles of the party. All communists
must keep on studying new conditions, solving new problems, accepting new
things and exploring new paths. Some of the party members have put it
aptly: We must implement the desire of wholeheartedly serving the people
and working for the interests of the masses through the action of boldly
carrying out reform. That is what all party members and party cadres
should. do.

IIL

Whether or not communists can maintain close with the masses and wholeheart-
edly work in the interests of the masses is, in the final analysis, a ques-
tion of world outlook, All communists must pay attention to constantly
remolding themselves and firmly establish a communist world outlook and
outlook on life.

An important content of remolding world outlook is to properly place one's
position in relation to the masses, correctly understand and use the power

entrusted by the people and not take advantage of one's position and power
to seek personal gain. Since the party has taken over the helm of the

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USING INTELLECTUALS CORRECTLY IN MODERNIZATION
HK040715 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 34-35

(Article by Shi Youxin [2457 0645 2946]: "The Key To Solving the Problem
of Intellectuals"] .

[Text] There are many problems to be resolved in carrying out the work of
intellectuals, the most important being how to let intellectuals fully dis-
play their roles in the implementation of the modernization program. This
is a key question.

What are intellectuals most concerned with? Jiang Zhuying and Luo Jianfu
answered this question through their own deeds. These two intellectuals
never thought of personal gain and fame. They thought of nothing but their
work until the last days of their lives and their manifest selflessness
emphasized the highly socialist consciousness and fine morality of the
intellectuals in our country. Investigations carried out regarding 500
intellectuals in Tianjin recently showed that 70 percent are most concerned
with the question of whether the modernization program can be realized and
whether the task of quadrupling production can be completed." We all know
that a number of intellectuals were misunderstood and that they suffered
in the past and were treated unjustly. But they have persisted in follow~
ing the party and they have always borne in mind how their country could be
made to prosper, In the past, under the influence of "leftist" ideology
and policy, the chief concern and the most serious problem for intellec-
tuals was that they were not in a position to display their roles well and
to contribute their knowledge and talent to the people. And today, their
strongest desire is to use their knowledge and professionalism to make
still greater contributions in their work. It is orty when this strong
and urgent desire is met that the initiative of the broad masses of
intellectuals can basically be mobilized.

The social prejudice of despising knowledge and intellectuals is still far
from being eliminated. To overcome this bad habit it is necessary to con-
tinue creating public opinion, reasoning and eliminating the influence of
"leftist" ideology and, what is more important, it is imperative to arrange
well the work of intellectuals so that they will have a chance to display
their skills and so that the broad masses of people will be able to ex-
perience the important roles of intellectuals. Recently, a number of agro-
technicians have made contributions in rural areas and they are welcomed

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"HONGQI' ON EVALUATING RECENT LITERARY WORK
HKO71334 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 36-39

["Literary" commentary by Zhang Jiong [1728 3518]: "Correctly Appraise
the Literary Works Written in Recent Years"]

[Text] There have been different opinions on how to appraise our country's
literary work since the smashing of the "gang of four." Today there are
fewer and fewer people who refute and depreciate in a sweeping way the
achievement of literature in the past 6 years. However, there exists such
a view that the achievement of the last 2 years cannot be compared with the
previous 2 years. The reason is said to be that because the party Central
Committee has stressed upholding the four basic principles and has been
against bourgeois liberalization and, what is more, the critics have made
criticism on some of the literary works. Does this view conform to the
facts? We must find out, because it is an indispensable precondition to
have a correct understanding of the development of literature in recent
years for our literary cause to be carried forward and to advance in big
strides in the new historical period.

The course of development of literature in the last 6 years basically con-
forms with the whole course of the great change in our country's social life.
The first 2 years after the smashing of the "gang of four," literature was
devastated and would be difficult to recover. However, the development of
literature has met with grave setbacks because the error of "left" deviation
that has been destructing the literary world has not been corrected once and
for all. Since the 3d Plenary Session of the 11th Party's Congress, the
campaign of liberating one's thinking has been in full swing. A great
number of elderly and middle-aged writers, who were forced to give up writing
have made their way back into the literary world. New writers have sprung
up like mushrooms. From content to form, literary works have broken through
one forbidden zone after another. Meanwhile, a trend of bourgeois liberali-
zation that was characterized by seeking to break away from the leadership
of the party and from the course of socialism appeared in society. And this
trend was reflected in literary works. Such a situation would surely arouse
the attention of the party and the people. In the past 2 years, the party
Central Committee has carried out necessary struggle against the tendency
of bourgeois liberalization while continuously fighting against the "left"

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in power has created favorable conditions without parallel for us to more
effectively develop mass work and to further strengthen ties with the
masses throughout the country. At the same time, it has also presented
our party with new tests. If we cannot correctly understand and handle
the fundamental change from having no power to having power; cast away
the fine tradition of maintaining close ties with the masses of the war
years and become separated from the masses or damage the interests of

the masses, then there is the possibility of taking a position opposite
the masses. The danger of our party becoming divorced from the masses

at present is not less than, but greatly more than before, and the danger
of becoming divorced from the masses is also not less than, but greatly
more than before. Of course, the thinking that after taking power the
communist party will invariably become divorced from the masses is com-
pletely wrong and also is not in keeping with historical facts. However,
failure to see the danger and serious consequences of becoming divorced
from the masses is likewise incorrect. We should always keep a sober
head and constantly set strict demands on ourselves. We must firmly bear
in mind that we cannot become divorced from the masses and must never

go against the popular aspirations of the people. Becoming divorced from
people and going against the popular will of the people must definitely
be punished. Even the feudal Emperor Li Shimin a thousand years ago
understood the principle "water can carry a boat and water can sink a
boat." Is it possible communists should not be more sober-headed and
wise than he?

Since the 3d Plenary Session of the 11th CPC Central Committee, our party,
in the process of bringing order out of chaos and eliminating "leftist"
influence, has restored and carried forward the fine tradition of main-
taining close ties with the masses, always thought about the interests of
the masses, worked for the well-being of the people and struggled to make
the country prosperous and strong, and therefore it has won the whole-
hearted support of the broad masses of people. Relations between the
party and the masses are entering a new stage of development.

II

Communists must maintain close ties with the masses, and the most important
thing is, they must always think of the masses, wholeheartedly work for
the interests of the people, conform to popular feelings, accord with the
popular will, help people solve problems and bring benefit to the people.

The program and line of the party in different historical periods are the
embodiment of the basic interests of the working class and the broadest
masses of people. The firm and steadfast struggle of communists to realize
the program and line of the party is the basic mark of working for the
interests of the people. All communists, especially the leading cadres

at various levels, should confidently implement the line, policies and

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Separate management after output-related contracting is easy to see: land
is contracted out to individual households, draft animals and farm imple-
ments in general are possessed and used by individual contractors and funds
are put into circulation by the contractors themselves. All this means
that labor is performed separately and independently. The contractor acts
independently in deciding on concrete policies and measures relating to
production. This is separate management.

Unified management is not so easy to see. However, it is really there and
it carries a lot of weight: the collective body of the cooperative economy
must map out unified plans for the principal varieties and acreage of crops
to be cultivated and the output and output value of other production items
covered by the whole cooperative economy, It must decide in a unified way
the standard output for each contracted plot, or fix the standard output
value, production cost or amount of labor for each specialized production
item. It must fix the amount of common funds to be retained and the pro-
portions for public welfare, public accumulation, administrative expenditure
and so on. It must work out plans for the use of public accumulation. It
must also fix the amounts of farm products to be handed over to the state.
All this shows that the basic policy decisions of the contracting economies
in relation to production, distribution, exchange and other economic acti-
vities are made by the collective body of the cooperative economy. Through
formulating and organizing the implementation of these policy decisions,

the cooperative economy can control the basic aspects of the production and
distribution processes of the contracting economies and decide their manage-
ment orientation. If one must ask what is meant by the unified management
of the contracting economies, then we can say that this is the most
essential unified management of the contracting system. Moreover, after
output-related contracting, there may still be some giant production
facilities and specialized technical services which must be made use of and
organized by the collective body of the cooperative economy in a unified way.

The resultant form of the combination of separate management and unified
management is the contracting system, or "contracted responsibilities."
A lot has been said about this and everyone is clear about it.

Second, remuneration is linked to output, that is, distributed according to
a standard output quota.

This is a brand-new form of distribution of the cooperative economy. It may
be classified into the simple and the more complete type according to
differences in the degree of development.

The first is a simple form of linking remuneration to output as practiced in
contracted responsibilities for the cultivation of land.

The output-related contracting system started with contracts for land. When
there was basically no specialization, division of labor or diversified
undertakings, contracts for land, whether handed out on a per capita basis,
or in proportion to the number of able-bodied persons in a family or for
individual laborers, had to be more or less even. The reason for this was

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After the 10 years of civil disorder, a large number of suspended under-
takings demanded resumption and a large number of new undertakings demanded
to be started. The state has decided to use most of its financial and
material resources in economic construction, giving priority to the basic
facilities of energy and communications and in developing science and
education. This is an entirely correct policy decision. We should proceed
from interests of the whole situation, carry out careful calculation and
strict budgeting within the scope allowed by the limited amount of funds
allocated by the state, practice thrift and organize development of the most
important and most urgently needed military equipment.

At the same time we should Pay attention to technical renovation and renewal
of equipment in our national defense industry, tap production potential,
strictly control the number of construction projects of new enterprises

and expansion of old ones and shift the emphasis of expansion of the new
onto improvement of the old so as to obtain quicker and better results with
less investment. From now on, with development of the country's economic
construction and flourishing of science and education, more favorable condi-
tions will be created in turn for national defense modernization. This
means not only that funds for building national defense will be increased,
but that more fine scientific and technological personnel and newer scienti-
fic and technological results will also be shifted to military industry to
Promote the development of national defense modernization.

Iv

In modernizing our national defense and developing sophisticated military
equipment, we must rely on scientific and cultural knowledge and on intel-
lectuals who have mastered the most advanced science and technology of our
times and who devote themselves to the cause of their motherland. This is
also an objective law that we must observe and a key to the success or
failure of our cause.

Since the PRC's founding, people have coincided in their views on the prob-
lem of relying on workers and peasants. However, they have differed in their
views on how we should treat intellectuals. Because of the interference of
"leftist" erroneous ideology and the fetters and influence of parochial
concepts of small producers, there was, for a long time, a prejudice inside
our party which looked down on and discriminated against intellectuals.
According to this prejudice, intellectuals are "targets of transformation"
and are "consumers" who lack the strength to “carry things on their shoulders
or in their hands," are "lazy with their limbs" and "have the least amount
of knowledge." Because of this prejudice we often suppressed, discriminated
against and even persecuted intellectuals and failed to give full play to
their role in socialist modernization. This erroneous view of and attitude
toward intellectuals has caused serious loss to the state.

Since 1956 Comrades Zhou Enlai, Chen Yi and Nie Rongzhen have time and again
pointed out that both workers and peasants and intellectuals are the force

we rely on in our country's socialist construction. Neither science and
technology nor intellectuals who devote themselves to the cause of the

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In April 1979, after the third plenary session, the CPC Central Committee
put forth the guiding principle of "readjusting, reforming, rectifying and
improving" our national economy. In December 1980, the CPC Central Committee
work conference again put forth the task of further readjustment. Because
our country's economy had been extremely backward and anomalous before
liberation, and because for many years after the First Five-Year Plan we had
been too impatient for success, our country's economy had been suffering from
disproportion. Moreover, because of the interference and sabotage of the
decade of chaos, the disproportion was further aggravated. During the first
2 years after the smashing of the "gang of four," we did not become fully
aware of the serious consequences of the decade of sabotage, and did not root
out "leftist" mistakes in economic guidance. We were still impatient for
success and put forth some grandiose and unrealistic slogans and targets.
Although the scale of capital construction and the scale of import of complete
sets of equipment had already surpassed what was warranted by our available
national resources, we still continued to expand them. This mistake of rash
advance aggravated the already existing disproportion between industry and
agriculture, between heavy industry and light industry, between basic
industries and processing industries, between economic construction and social
development, and between accumulation and consumption. Our financial diffi-~
culty was also aggravated. By the time of the third plenary session, the
situation had deteriorated into one of disequilibrium in fiscal revenue and
expenditure, credits, goods and materials, and foreign exchange receipts and
payments. Our experience of the past two decades or more has proved on many
occasions that without proportionate development, it will be impossible to
achieve a steady and reliably high growth rate. Under the condition of grave
disproportion in our national economy, the CPC Central Committee resolved to
carry out the necessary readjustment. This was the prerequisite for guiding
our country's economy toward normal and steady development as well as a
necessary condition for carrying out our modernization construction. The
“eight-character" guiding principle is of positive significance.

Success was quickly achieved in the readjustment of our national economy. The
CPC Central Committee first grasped agriculture and the light and textile
industries, vigorously developed the production of consumer goods, resolutely
reduced the scale of capital construction, and readjusted the orientation of
service of heavy industry, so that the preportional relationships between
agriculture, light industry and heavy industry became more rational. In 1978,
the relative shares of agriculture, light industry and heavy industry in the
total value or industrial and agricultural output were 27.8 percent,

31.1 percent and 41.1 percent, respectively; in 1981, through readjustment,
they became 31.5 percent, 35.2 percent and 33.3 percent, respectively. Over
the past several years, agricultural production has continued to grow on an
overall scale, the production of manufactyred consumer goods has rapidly
developed, and the supply of the majority of commodities such as food,
clothing and daily articles has been rather adequate. After readjustment,

the proportion between accumulation and consumption has also become more
rational. The proportion of accumulation -in the amount of national income
spent had dropped from 36.5 percent in 1978 to 28.3 percent in 1981. From
1979 to 1981, the state disbursed 140 billion yuan to improve the people's

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"HONGQI' ON ADHERENCE TO ADAPTATION OF MARXISM

HK300607 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 2-8
[Article by HONGQI editorial department: “Advance Along the Marxist Road"]
[Text ] I

On 14 March 1883, the day a century ago when Marx passed away Engels, in a
letter to W. Liebknecht, wrote: "This genius no longer nurtures the pro-
letarian movement of the two hemispheres with his vigorous mind. We owe
what we have today to him. All achievements attained in the current move-
ment should be attributed to his theoretical and practical activities for,
without him, we would still be lingering in the dark." ("Complete Works
of Marx and Engels," vol 35, p 457) Now, the Chinese people are commemorat—
ing the great teacher of the proletariat, Marx, with a feeling of great
reverence. The theory and practice of Marx, like a beacon in a gloomy
night, illuminates the road to liberation for the proletariat and laboring
people the world over as well as the Chinese people.

Marxism, with Marx as its chief founder, is a complete scientific and theo-
retical system. The materialist conception of history he founded brought
to light the general law governing the development of human history. The
theory of surplus value he founded brought to light the specific law of
motion governing the capitalist society. On the basis of these two great
discoveries, Marx turned utopian into scientific socialism, that is, he
scientifically proved that capitalism is doomed and will inevitably make
the transition to communism, in which the phenomenon of exploitation of man
by man no longer exists. Marx discovered the social force for realizing
the social transformation, the modern proletariat, and called on "the workers
of all countries to unite" and accomplish their great historical mission.

Marx was not only a "great master of science" but "first and foremost a
revolutionary." He closely integrated these two all his life. From the
1840's, he actively participated in and led the international workers!
revolutionary movement and devoted himself to the cause of liberation of

the proletariat and the oppressed nations. In the course of his revolution-
ary activity and theoretical creation, Marx scorned the desperate persecu-
tion by the reactionary forces and endured extremely poor working conditions.

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and build up strength; putting forth the guiding principle of "never slacken
production of grain, vigorously develop diversified occupations"; and so on.
These measures have greatly mobilized the enthusiasm of the several hundred
peasants, has once again helped liberate the productive forces, and has thus
enabled the entire rural economy to prosper and flourish. From 1979 to 1981,
the total value of our country's agricultural output continuously grew at

the annual rate of 5.6 percent. Although the sown area for growing grain
crops decreased by nearly 100 million mu, the total grain output grew
significantly. The output of cotton and other industrial crops also greatly
increased. In 1982, bumper harvests on an overall scale were again achieved
in agriculture. The peasants' income has continued to rise and their liveli-
hood has markedly improved. Today, the peasants feel more at ease and confi-
dent than at any time in the past since the collectivization of agriculture.

The very fine situation of the countryside and the very great enthusiasm of
the peasants are mainly due to the fact that since the third plenary session,
we have implemented a series of correct policies concerning the rural economy,
the key one being the policy of practicing responsibility systems whereby
contracts are based on output. This is a major breakthrough whose signi-
ficance is not less than the socialist transformation of the whole agriculture.
What should we know about the responsibility systems whereby contracts are
based on output?

1. A responsibility system whereby contracts are based on output means that
under the precondition of adhering to public ownership of the basic means of
production, such as land and so on, families or small groups of people under-
take the fulfillment of contracts, with remuneration for work closely linked
to the fruits of production. This is a new form of Management and distribu-
tion in socialist agriculture under the specific conditions of our country.
It helps widen the peasants' decisionmaking power and effectively helps put
an end to the overconcentration of power in management, the issuing of
arbitrary and impracticable directions in production, and egalitarianism

in distribution. The responsibility systems whereby contracts are based

on output lead to an integration of operation on a collective basis with
operation on an individual basis. Both categories of operation can be under-
taken to suit the circumstances. Moreover, the superiority of the collective
and the enthusiasm of the individual can be simultaneously brought into play.
Therefore, these responsibility systems possess wide-ranging adaptability
and enormous vitality.

2. The responsibility systems whereby contracts are based on output have
smashed the old restrictions, formed over a period of many years, which
fettered people's mind and impeded the development of the productive forces.
These responsibility systems not only do not negate collectivization, but
can make the specific path of agricultural collectization more suited to

our country's real circumstances. They represent a new development arising
in our country's practice of Marxist theory concerning collectivization in
agriculture. Responsibility systems whereby contraéts are based on output,
such as assigning the households full responsibility for task completion,

are viewed by some comrades as dividing up the land and practicing individual

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are peasants. The population is large but cultivated land is inadequate.
This is the main socioeconomic characteristic of our country. The peasants
are in the majority. If their production activities and livelihood are well
planned, the whole country will be stable. Comrade Chen Yun said: "The
order of importance: first, agriculture; second, light industry; third,
heavy industry, represents an integration of Marxism with the practice of

China's revolution." "When we talk about proportions in the context of
proportionate development, we must take agriculture into consideration.
This is a basic issue." To assign priority to agriculture and pool our

strength to grasp it is based on the basic characteristics of our national
conditions. 2) Agriculture is the foundation of the national economy.
Overall, agriculture is a very weak link in our country. If agriculture

is not well developed and cannot provide ever-increasing quantities of
industrial raw material, grain and non-staple food, the development of light
industry or even the entire industry will be impossible. If the peasants
are not well off, there will not be a large domestic market. Therefore,

to quicken agricultural development is a basic condition for ensuring the
achievement of the four modernizations. 3) The orientation of collectiviza-
tion of agriculture in our country is correct. However, because of the
"leftist" mistakes in guiding ideology, the extent of collectivization was
excessive, the measures of collectivization were too rigid, and egalitarian-
ism prevailed. The peasants' enthusiasm was suppressed. Over many years,
agricultural development had been slow. By 1978, 150 million peasants in
our country were still inadequately fed and clothed. These facts demon-
strated that rural policies had to be readjusted, the system, structure

and operation and management of the people's communes had to be reformed,
and in particular, major improvements and breakthroughs in building and
perfecting responsibility systems in production were urgently needed.

After the third plenary session, the CPC Central Committee drew up the
"resolutions on certain questions concerning quickening agricultural develop-
ment," which states: "To draw up policies concerning agriculture and the
rural economy, we must primarily proceed from fully developing the superiority
of the socialist system and the enthusiasm of the 800 million peasants in our
country." Therefore, economically, we must have great concern for the
peasants’ material benefits, and politically, we must earnestly safeguard
their democratic rights. Proceeding from this guiding ideology, the CPC
Central Committee put forth a series of policies and economic measures to
promote agricultural development. The most important ones are: restoring
and widening the communes' and production teams' decisionmaking power;
restoring private plots of land, sideline occupations of the family and the
collective and country fair trade; establishing and perfecting various forms
of responsibility systems in production; greatly raising the state purchase
prices of principal agricultural and sideline products and lowering the
prices of industrial products for agricultural use such as agricultural
machinery, insecticides, chemical fertilizers and so on; making a resolution
to import 15 million tons of grain annually to help readjust the composition
of agricultural production and to let the peasants enjoy more leisure time

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Many problems about our national economy are closely connected with the
irrationality of our economic management system. In the past, the main
defects of our economic system were: overconcentration of power in
Management; neglect of development of diversified forms of economic
ownership; separation of various departments or localities by unsur-
passable barriers in matters of relationships of subordination; and "eating
out of the big pot" in matters of distribution. The specific situation
was as follows: 1) The relationship between the state and the enterprises
was marked by excessive centralization and overly tight control. The
enterprises lacked the appropriate amount of decisionmaking power over
planning, production, use of materials and goods, employment of labor,
financial affairs and so on. Whether an enterprise was well run or not

did not affect the workers' material benefits, so that the enterprises

and the workers tended to be content with the status quo. Another problem
with the enterprises was that supply, production and marketing were out of
line with one another. Divorced from consumers’ needs, production could
not be adjusted according to changes in the national economy, the people's
livelihood and the needs of the market. 2) Another aspect of the relation-
ship between the central authorities and the localities is that in certain
cases, decisionmaking power was not appropriately decentralized, or appro-
priately centralized, or appropriately relaxed, or appropriately restricted.
The relationship between departments under the CPC Central Committee and
local authorities, as well as the relationship between various departments,
were marked by unclear definition of responsibilities and jurisdiction,
overstaffed administrative bodies, existence of many levels of authority,
and low work efficiency. 3) Overall, the entire economic Management system
was marked by overconcentration of power, overly rigid planning, centraliza-
tion of fiscal payment and collection of fiscal revenue, monopolization of
purchase and marketing of goods and materials by the state, centralization
of importing and exporting in foreign trade, "eating out of the big pot,"
and paying no attention to economic results. All these problems seriously
restricted and fettered the enthusiasm, initiative and creativity of the
four parties: the departments under the CPC Central Committee, the localities,
the enterprises and the workers. Consequently, the economy became inactive
and devoid of vitality and flexibility. Therefore, reform was absolutely
necessary,

Since the third plenary session, concurrently with the carrying out of
readjustment, our economic management system (its aspects including the form
of ownership, the form of planning management, the form of operational
management, the form of distribution and so on) has “een subjected to some
reforms, which consist mainly of the following measures: 1) concerning the
form of ownership, in light of the low level of development and the un-
balanced development of our country's productive forces, we have vigorously
developed the cooperative economy in the countryside and towns, which is
characterized by collective ownership, while upholding the leading role of
the state sector of our economy; and Moreover, we have encouraged the
appropriate development of the workers' individual economy within the limits
prescribed by the state, as a necessary supplement of the publicly-owned
economy. 2) we have implemented the principle of relying mainly on the
planned economy, with regulation by market mechanism as a subsidiary measure.
Social needs are varied and ever-changing. There are numerous categories of
different social products. It is impossible to have an all-embracing plan

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FOOTNOTES

"Qu Yuan's Ideas" is part 3 of the article "A Study of Qu Yuan" written
by Guo Moruo in February 1942;.see "Collected Works of Moruo," Vol XII,
p 401, first edition by the People's Literature Publishing House in

June 1959.

It is "Guan Shan Fu Hai" in "Collected Works of Moruo," Vol XII, p 409.
According to the 1931 edition of "Ci Yuan," [a dictionary] published by
the Commercial Press, "Guan Shan Fu Hai" is also written as "Guan Shan
Hai" meaning government management of mountain and sea resources.

"Hai Wang Chapter of Guan Zi" says: "Huan Gong [a king of the kingdom
of Qi] asked: 'Then how can I finance the national spending?' Guan Zi
answered: 'You can do it by bringing mountain and sea resources under
government management .'"

The Yanan University.

"Imperial Tally," "Gao Jianli" and "Qu Yuan" are historical dramas
written by Guo Moruo in Chongqing in 1942; see "Collected Works of Moruo,"

Vols III and IV.

On 15 September 1944, the 14th Meeting of the 3d Session of the People's
Political Council decided to send an inspection group, composed of

Leng Yu, Hu Lin, Wang Yunwu, Fu Sinian, Tao Meng and five nonparty
political councillors, to visit Yanan. The trip was aborted. Later on,
an inspection group composed of political councillors Chu Fucheng,

Huang Yanpei, Leng Yu, Fu Sinian, Zuo Shunsheng and Zhang Bojun flew

to Yanan from Chongqing on 1 July 1945.

Shu was Lao She whose original name was Shu Qingchun and who styled
himself as She Zi. Hong was Hong Shen. Yao was unidentified.

Bing was Xu Bing and Chao was Feng Naichao.

Qun was Guo Moruo's wife Yu Liqun.

Li was Zhang Junli (1887-1969) who was born in Baoshan County, Jiangsu.
He repeatedly formed party organizations which appeared as a third
party. In the capacity of leader of the "Chinese Democratic Socialist
Party," he took part in the puppet "National Assembly" held by

Chiang Kai-shek in November 1946.

Chao was Deng Yingchao.

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quantity and quality of labor precisely at ordinary times. They are re-
vealed in the quantity and quality of the products finally reaped.
"Wordays" and workpoints are concepts of work time. They cannot show the
amount of labor contributed or the quality of labor. In the course of
enforcing the workpoint system, we had adopted all kinds of methods to
remedy this basic defect to no avail. It was obvious that the system of
giving fixed workpoints cannot reflect actual work performance. The system
of workpoints combined with work assessment failed to boost enthusiasm
because too much depended on "assessment." With the system of assigning
quotas and registering workpoints, it was also impossible to make the work-
points tally with actual work performance because the conditions of labor
were complicated and varied and it was difficult to measure the quantity
and quality of farm work. In short, as a result of the application of the
workpoint system, those who did more work did not get more and those who
did less work did not get less. This system enabled the lazy and incom-
petent ones to profit at the expense of the industrious and competent ones.
The masses of peasants describe this situation as "everybody eating from
the same big pot."

"Doing things in a massive and unplanned way" and "everybody eating from the
same big pot" hindered’ the development of China's rural economy and held
back the historical process of the transition from self-sufficient or semi-
self-sufficient traditional agriculture to marketable and socialized modern
agriculture.

Of course it was basically due to the influence of "left" mistakes that we
were made to go through such a tortuous historical course in the application
of the cooperative system. However, it also had a lot to do with our mis-
understanding of the Marxist theory of the cooperative system.

As we have said, Marx held that the combination of labor was the basic
characteristics of socialist production and was at the same time the basic
characteristics of cooperative economies, which were the concrete embodi-
ments of the socialist relations of production. In the so-called labor
combinations, the labor of an individual was a part of the total labor force
of the integrated body. Viewed from the angle of the integrated body,

this meant that it was to make use of the labor of every individual accord-
ing to common needs. Therefore, in judging whether individual labor consti-
tutes a part of the total labor force of the integrated body, we have to

see whether such labor is governed by common needs and subject to the
allocation of the integrated body. It makes no difference whether people
work together. According to the Marxist theory, independent labor and
coordinated labor, coordination based on division of work and simple
coordination are forms of labor rather than relations of production. How-
ever, many comrades among our ranks of cadres had long regarded centralized
labor and simple coordination--forms of labor which existed a long time
ago--as the distinctive features of the relations of production under the
socialist cooperative system.

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Then comes the question of supplementary investment in production and
management by the contractor himself or in partnership with others. In
fixing the standard output value and the standard income, we must not and
should not take the differential earnings from this portion of investment
into consideration. This being the case, such earnings will appear as sur-
plus output. Therefore, they will not be recouped by the collective body
of the cooperative economy and will go into the personal earnings of the
contractor. Absorbing the scattered funds of the peasants and using them
in production and construction will contribute significantly to the develop-
ment of the rural areas at present. If the investors are not allowed to
make a little profit, their enthusiasm in making investment will be affected.
We notice that in the more complete form of linking remuneration to output,
the factors of non-labor income have been basically eliminated. That which
cannot be eliminated are chiefly differential earnings gained by contractors
in making supplementary investment on his own or in partnership with others.
Their existence are needed by the current practice and are in conformity
with the Marxist theory of the cooperative system. Moreover, if this kind
of differential earnings have increased, the state can make adjustments
through such means as taxation.

Viewed superficially, there is nothing extraordinary about the combination
of unified and separate management and linking remuneration to output, they
are the embodiment of repeated practice and immeasurable capability and
wisdom. As a great creation by the Chinese peasants, this brand-new form of
the cooperative economy not only verifies the Marxist theory of the coopera~
tive system but gives it new content and greater vitality.

4. A Distinctively Chinese Road of Development of the Socialist Cooperative
Economy

As a new form of the cooperative economy, the system which links remunera-
tion to output gives the producers relative independence and initiative

in labor and management and closely combines the fruit of labor and manage—
ment with the interests of the producers. For this reason, it can fully
arouse the enthusiasm of the producers and stimulate the growth of labor
productivity at an unprecedentedly high speed. In the 26 years between
1952 and 1978, China's labor productivity only grew by 2.7 per cent.
However, it grew at an average rate of 2.7 per cent between 1979 and 1981
after the introduction of the system which links remuneration to output.

As far as the rate of increase of labor productivity is concerned, a single
year after the implementation of the system which links remuneration to out~
put equalled 26 years in the past. This figure covered many places which
had not yet implemented this system at that time. Some typical examples
showed that in places which had done a good job in implementing this system,
the growth in labor productivity greatly exceeded this figure. In most
cases, labor productivity increased by a big margin. In some cases it even
doubled.

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that the practices of "doing things in a massive and unplanned way" and
“everybody eating from the same big pot" are basically done away with.
This is a major change in the form of the cooperative economy.

In output-related contracting, the method of fixing output quotas still
retains the registration of workpoints. It is linked with output "in a
roundabout way" through the use of workpoints and can therefore be des-
cribed as indirectly output-related. With contracts for task completion,
workpoints are abolished. They are directly output-related. The evolu-
tion from indirect to direct links with output means the complete elimina-
tion of the practice of "everybody eating from the same big pot" and
signifies a further change in the form of the cooperative economy.

The course of development of the contracting system is the evolution from
non-output-related to output-related contracting, from indirect to direct
links with output. Contracting for task completion, which is directly
linked with output, is a typical example of the output-related contracting
system and is a form universally adopted in the rural areas.

When the output-related contracting system was first put into application,
whether output quotas should be fixed for the work group or for the
laborer or household was a marked question. At that time, the masses
thought that fixing output quotas for each work group was a miniature ver-
sion of "doing things in a massive and unplanned way" and "everybody eating
from the same big pot." However, with the development of the economy
based on the contracting system, particularly with the gradual switch to
specialization, work groups in some trades and professions developed coordi-
nation of the basis of division of labor and gradually found the appro-
priate form and method of calculating work done within the group. This
being the case, whether contracting should take the household (the indi-
vidual laborer) or the work group as the unit, or even take the factory

or production team as the unit, depends more on the special features,
technological requirements for production and degree of specialization and
socialization of different trades and professions and on the reasonable
scale of management which is conditioned by these factors and which is
capable of producing optimum results.

Besides classification according to concrete forms of the relations of pro-
duction, the various forms of the contracting system can also be classified
according to the mode of labor or production, that is, non-specialized
contracting for cultivation of land and specialized contracting. The
universal application of specialized contracting signifies the replacement
of old modes of production and is an inexorable trend for the further
development of the output-related contracting system.

The output-related contracting system created by the Chinese peasants after
long years of practice is a new form of the cooperative economy. Its basic

distinguishing features can be summed up in the following aspects:

First, it combines unified management with separate management.

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POEM COMMEMORATES ZHOU ENLAI'S BIRTHDAY

HK291346 Beijing HONGQI in Chinese No 5, 1 Mar 83 p 20

[Poem by Zhao Puchu [6392 2613 0443]: "The 85th Anniversary of the Birth
of Premier Zhou--to the Tune of 'Man Jiang Hong'"]

[Text]

On this occasion of the premier's anniversary,

His portrait looks as dignified as before.

His teachings still ring in our ears,

Teachings we shall follow through the years.

Strive we must for the better and struggle until old age;
only in death shall we rest.

He was never haughty, or demanding, or selfish,

Bright in conduct like the sun and moon.

A new situation is created: a great and proud nation;
Blueprints galore; burning hot projects.

A fresh start made

After 10 years' disturbances.

One billion people's absolute sincerity can move
heaven and earth;

Five-year plans can ride through rising wind and
scudding clouds.

Glad tidings indeed our ancestors' wishes are fulfilled
and the [phrase indistinct]

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as the heart of society. In this sense, the cooperative economy which
functions as the main body of the economy cannot but possess the quali-
ties of the second level.

Above are some of the basic arguments put forth by Marx. They clearly
demonstrate the basic characteristics of the socialist cooperative
economy. However, Marx did not define a concrete mode of the cooperative
economy for later generations. Neither did Engels or Lenin. In his
article "The Peasant Question in France and Germany," Engels said that the
cooperative system meant the "transition of private enterprises and private
possession to cooperative ones." However, he also said by way of example
that in the cooperatives the peasants could "distribute the yield in pro-
portion to the land, money and labor contributed." (Ibid, vol 22,

pp 580, 581) When Lenin spoke of the cooperative economy in his article
"On the Cooperative System" and in other related works, he did not confine
himself to cooperation in production but gave a lot of weight to coopera-
tion in the spheres of circulation, such as cooperation in supply and
marketing.

In short, according to the Marxist theory of the cooperative system, the
cooperative economy means the combination of laborers. However, it does

not necessarily have to be a purely labor combination and does not preclude
the factors of money and land combinations. Therefore, while remuneration
according to labor remains the basic method of distribution, the yield can
also be distributed in proportion to the money and even the land contributed.
The cooperative economy covers production, supply, marketing and other
aspects and is varied in form.

2. The Tortuous Course of the Application of the Cooperative System

The application of the cooperative system in socialist agriculture was full
of twists and turns. After the October Revolution, Lenin directed the pre-
liminary application of the cooperative system. As was discussed in the
foregoing paragraphs, Lenin envisaged many and varied forms of the coopera-
tive system. However, mainly collective farms were set up afterwards. Stalin
held that the collective farm was a "higher form" of the cooperative economy.
("Collected Works of Stalin," vol 12, p 117) In actual life, it was promoted
as the one and only form.

After the founding of the PRC and the completion of the land reform on a
national scale, the party promptly led the peasants to embark on the road

of socialist cooperativization. During the initial period of the coopera-
tive transformation, the principles of voluntary participation and mutual
benefit, employing typical examples to show the way, giving separate guidance
and effecting a gradual transition were adhered to and the application of
the cooperative system proceeded with great vigor. However, toward the
later period when advanced agricultural producers' cooperatives were uni-
versally set up, the road became narrower and narrower. Basically what

we had was a unitary system of cooperation in production and cooperation was

basically carried out in a single mode. Through years of practice, this mode
was found to be unsuitable for the actual situation in China's countryside.

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the science of chemistry alone, even Sir Humphrey Davey and (Justus
Libishi) [1429 2448 0956 2448 2621 3024 1585] have made tremendous achieve-
ments in agriculture during this century. But the speed in the develop-
ment of science is at least the same as the speed of population growth;
population growth is in proportion with the number of people of the pre-
vious generation and the development of science is in proportion with the
volume of knowledge left by the previous generation, therefore under
ordinary conditions, science is also developing proportionately. What
then cannot be done by science? ("Collected Works by Marx and Engels,"
vol 1, p 621) These words of Engels were based on the development of
science and therefore he at least used the viewpoint of "increased base
figure with speed remains unchanged" to refute the view that with an in-
crease of base figure, the speed will drop.

In short, the relationship between the speed of economic development and
the base figure is not a simple relationship. Economic development is sub-
ject to the influence of various complicated social and natural factors :
while economic growth is not stable, sometimes it is quick and sometimes 1
it is slow. Under certain conditions there really exists the situation
of "big base figure and low speed," but it is not a law, nor will it
influence the general trend of increasingly rapid economic growth.

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farming, thus negating collectivization. They say: "We have worked hard
for 30 years, but now the situation has reverted overnight to preliberation
times." This is a misunderstanding. Assigning contracts to individual

households is not tantamount to dividing up the land and practicing
individual farming. It is only one aspect of the running of the collective
economy. It is a new type of family economy which differs from the indi-
vidual economy of small owners in the past. We should not confuse these
two categories.

3. Responsibility systems whereby contracts are based on output are a result
of the great creativity of the peasants of our country, brought into play
under party leadership. They have undergone a process of gradual improvement
and continuous development. In implementing responsibility systems in
agricultural production, the CPC Central Committee has consistently stressed
the need to conduct investigation and study, to proceed from actual conditions
in all cases, to suit measures to local conditions, to provide appropriate
guidance according to different cases, to let the masses democratically and
voluntarily choose from various forms of responsibility systems, to gain
experience through experimentation and to avoid a sweeping categorization

of things. As a result, this major readjustment of rural production rela-
tions, which involves several hundred million people, has been developing
healthily. The responsibility systems have developed from not being linked

to output to being linked to output; from. assigning responsibility for per-
forming work within a time limit and according to specifications to fixing
farm output quotas, and then to assigning responsibility for task completion;
from "not implementing the fixing of farm output quotas for each household"

at the beginning to "allowing the fixing of farm output quotas for each house-
hold and allowing the assigning of full responsibility to households for

task completion" in outlying districts and poor regions at a later stage, and
then to the adoption of assigning households full responsibility for task
completion as the principal form of responsibility system for our country's
agricultural production at the present stage. This development is a process
in which the masses in their practice voluntarily choose from various alterna-
tives through comparison.and screening, and in which the CPC Central Committee
respects the pioneering spirit of the masses and sums up their ideas, so that
with the development of practice, its policies are continually augmented and
perfected. In the course of this development, some comrades who were under
the prolonged influence of "leftist" mistakes have remained unconvinced on

the question of responsibility systems whereby contracts are based on output.
They hesitate over or even boycott the implementation of these responsibility
systems. In view of this problem, the CPC Central Committee has repeatedly
explained the socialist nature of these responsibility systems and has
persisted in taking positive education as the principal measure.. It lets
these comrades acquire deeper understanding through learning by practice and
does not compel, criticize or put labels on anyone. This experience should
be taken as a reference in carrying out reforms in other areas.

/When we study the fourth main point, we must pay attention to understanding:

first, the defects of our country's economic management system and the
necessity of reform; and second, the basic orientation and principal content

of reform./

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mean that all who have specialized knowledge are suitable for leadership.
It is necessary for a research institute, a university or a literary and
art organization to have a certain comprehensive nature and handling lead-
ing and managing affairs or a comprehensive nature is also a speciality.
Some specialized staff have professional ability and at the same time
they also have a potential capability for organizing, while others also
have professional ability but they lack the capability of organizing and
leading. If we do not really understand this situation, and once cadres
have said that we are to implement the modernization program, we will
hurriedly promote those who are not suitable for leadership work into
leading positions. In this way, we are creating disadvantages and will
consequently waste talent.

Because there were some shortcomings in assigning cadres in the past, some
departments now have excessive teaching and research staffs. In these
departments, those with specialities are not able to fully display their
talent. On the other hand, some regions, departments and units urgently
need such cadres. Therefore, it is necessary to break away from "depart-
mental ownership" and [word indistinct] transfer cadres. As the various
departments of the national economy and superstructure are now undergoing
changes, certain changes are also required in the need for cadres. Any
move to fix staff in a certain place is a manifestation of the concepts

of small producers. Some people have always retained more "reserve
strength" in their units so as to meet their own needs; but such a practice
is not correct. Cadres belong to the state and not to departments. In this
respect it is necessary to form a viewpoint of giving consideration to the
whole and to overcome departmentalism. Intellectuals must be allowed to
work in the positions and regions where they can display their abilities
and particularly in remote regions and rural areas where they can display
their talent.

It is not only the business of leadership at various levels to fully display
the roles of intellectuals; the intellectuals themselves must also pay
attention to this question. Intellectuals must be aware of their historical
status and the historical tasks they are responsible for. They must over-
come nonproletarian ideology that is contradictory to their historical
status, persist in the orientation of political consciousness and expertise
and combine these two aspects, devote themselves to and make achievements
in their work, make contributions in realizing the modernization program so
as to win acknowledgement and respect from society.

We are now in an era of "knowledge explosion" and both natural science and
social science are developing rapidly. In order to make greater achieve-
ments it is necessary for intellectuals to study hard and constantly improve
their specialized knowledge so as to constantly renew their knowledge.
Foreign statistics show that in advanced countries, 50 percent of the know-
ledge grasped by university graduates in 1976 became outdated by 1980.

Taken as a whole, the level of science and technology in our country is
relatively low and what many people studied at school may not have been the

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sufficient study of contemporary capitalism. According to the fundamental
Marxist viewpoint, it is an unshirkable duty of contemporary Marxists to
study the new phenomena of contemporary capitalism, analyze the new features
of class struggle which the proletariat wage against the bourgeoisie, and
seek various specific paths to socialism which conform to contemporary
conditions.

III

The fact that the theories of scientific socialism have become a living
reality in a number of countries constitutes a tremendous victory and develop-
ment of Marxism. However, almost all countries which have completed social-
ist revolution and are engaging in socialist construction have taken a
roundabout path, and are confronted with various difficulties or problems.

Our socialist cause has also suffered serious setbacks. The "great leap
forward," and particularly the "Cultural Revolution," greatly infringed upon
the interests of the people. There is a viewpoint which holds that this
shows that socialism is unworkable and that there is a crisis of Marxism.

This is an erroneous viewpoint.

We all know that the establishment and development of any new social system
in history, whether a feudal or a capitalist society, go through several
centuries, full of war, turmoil, progress and retrogression. The replace-
ment of the capitalist society by the socialist society constitutes the most
thorough-going and profound transformation in human history. How can we
imagine that it will be smooth in its development, without tossing and turn-
ing? Lenin pointed out: "It is undialectical, unscientific and theoreti-
cally wrong to regard the course of world history as smooth and always in

a forward direction, without occasional gigantic leaps back." ("Selected
Works of Lenin," vol 2, p 851) This is universal truth. In the course of
its development, socialism is bound to meet with various setbacks and rever-
sals. This [phrase indistinct] of the theoretical question of scientific
socialism.

Marx put forth the basic principles of socialist construction, but he did
not and could not give a detailed exposition of or provide readymade answers.
to the question of how socialist construction was to be carried out in
various countries. That the victories of socialism were first achieved in
relatively backward countries was what Marx failed to foresee. Therefore,
in carrying out socialist construction in these countries, the communists
there are more urgently required to carry out inde,endent exploration in
accordance with the Marxist stand, viewpoints and methods and in the light
of the reality there. In exploration, there are inevitably errors and set-
backs. This will certainly cause losses. Of course, we should do our best
to avoid errors and setbacks; but it is impossible to completely avoid them.
In this sense, we can say that twists and turns in the development of
socialism are phenomena that conform to the laws.

In the more than 30 years since the founding of the PRC, our country has

committed errors and undergone setbacks, but has also scored tremendously
great achievements in all fields. This is a fact seen and acknowledged by

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A Letter to Comrade Guo Moruo Dated 17 September 1944:
Dear Moruo:

I have thought of you often since we last met. Although the comrades here
have never seen you, they have frequently read your fine works and are
looking.forward to meeting you.

Recently, the Yan U (footnote 3) has been rehearsing Beijing operas adapted
from your "Imperial Tally" [a tiger-shaped tally issued to generals as
imperial authorization for troop movement in ancient China] and "Gao Jianli."
(footnote 4) They have not yet attempted to adapt the two to modern drama
form. "Qu Yuan" (footnote 4) was staged 2 years ago, but regrettably I

did not see it.

Some rapid development has been made here over the past year. We frequently
have visitors coming by air and by land. Following the five people's politi-
cal councillors (footnote 5), is there someone in the cultural circle who
wants to visit Yanan? If you have the intention, why not give it a try?
Your attempt surely may not be successful but it could create some public
opinion. However, the visit must be proposed by such persons as Shu, Hong
and Yao. (footnote 6) I don't know whether you can influence them. Please
discuss it with Bing and Chao. (footnote 7) Our comrades here are longing
for you to visit.

I have learned that you have been recently engrossed in historical research.
I hope that you can mail me a mimeographed copy of your work if you have one.
If you have other fine works, please also send me some. Reading your
writings is like talking with you.

With high regards to you and your wife,

Zhou Enlai; 17 September

A Letter to Comrade Guo Moruo Dated 17 November 1946:

Dear Moruo and Qun (footnote 8):

I am sorry that we did not have enough time to talk with each other because
of our hasty parting at our last meeting. Moruo's return to Shanghai and
efforts there have yielded great results. It is as we have expected that your
penetration into the youth party has made old Li (footnote 9) waver.
However, this matter is of a slightly different nature. Therefore you may
treat him with reservation for the time being. Since this storm, the
Democratic League has had a more stable lineup but it still has many prob-
lems. I hope that you will give them some encouragement. The struggle for

democracy is arduous and tortuous. We should make every effort to win over
those middle-of-the-roaders.

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As for the harm done by "leftist" mistakes, most comrades in literature and
art circles have a fairly clear picture because they have drawn lessons

from the bitter experience of the 10 years of chaos. (Of course, they need
to get a deeper understanding.) Nevertheless, not all our comrades are
fully aware of the importance of criticizing the wrong tendency of bourgeois
liberalization. If we turn a blind eye to the wrong tendency of bourgeois
liberalization on the literary front, and let the works publicizing
bourgeois ideology and its decadent lifestyle overflow, corrupting the

mind and soul of the broad mass of readers like bacteria, how can our
literature serve the people and socialism? And how can it contribute to

the construction of socialist spiritual civilization? Therefore, those views
ignoring the danger of bourgeois liberalization and the importance of uphold-
ing the four basic principles and vigorously depreciating the remarkable
achievements of literary works in the past 2 years not only do not conform
to the reality of the development of literature, they are also wrong in
understanding.

Since the fall of the "gang of four," the prosperity of literary works in the

past 2 years has vividly told people that in order to allow socialist
literature to develop healthily, we must not deviate from the instructions
the party sets to serve the people and socialism. It is necessary to imple-
ment the party's policy of "letting a hundred flowers blossom and a hundred
schools of thought contend." And it is imperative to persist in the struggle
of the two lines. It is imperative to keep weeding out the pernicious in-
fluence of the "left" on the one hand and be opposed to the "right" tendency
of bourgeois liberalization on the other. What is more, our writers should
follow Comrade Mao Zedong's teachings, study Marxism, study the society and
go deep into life. There is no doubt that writers require consummate
artistic accomplishment and techniques. However, the artistic quality of a
piece of work always hinges on its ideological contents. The nature of
socialist literature is just the unification of its correct ideological con-
tents and its perfect artistic form. In recent years, there have been writers
who had once written some nice works. But because they do not go deeper into
life, they cut themselves off from the people's fiery struggle. And they
give up studying hard and using the Marxist world outlook to observe and
appraise life. They just want to be conspicuous by seeking new art forms.

In the end, they fail to provide weighty works which are welcomed by the
people. Isn't this thought-provoking?

At present, people of all nationalities are marching forward along the
direction indicated by the 12th CPC National Congress for the creation of

a new situation on all fronts. Our literature and art works should "persist
in the method of dividing one into two and take one more flight forward,"
so as to speed up the construction of socialist material civilization and
spiritual civilization and write more and even better works.

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First, we must shift the focus of the work of our party and state to
socialist modernization construction;

Second, we must readjust the principal proportional relationships of our
national economy and rectify the guiding ideology governing our economic

work;

Third, we must readjust the rural economy and implement the responsibility
system in agricultural production whereby contracts are based on output;

Fourth, we must reform our economic management system and enliven our
economy ;

Fifth, we must open our country to foreign trade on the basis of self-
reliance; and

Sixth, we must build a socialist modern economy with Chinese characteristics.

/When we study the first main point, we can deepen our understanding of
the following two things: first, the reasons for the necessity of shifting
the focus of work; and second, the necessity of firmly remembering the
lessons of our experience related to this question./

To resolutely shift the focus of the work of our party and state to moderniza-
tion and construction is a strategic resolution of the third plenary session.
The formulation of this resolution has been based on the following reasons.
First, with the elimination of exploiting classes as actual social classes,
although class struggle will continue to exist within certain limits for a
long time, it has ceased to be the principal contradiction in society. The
principal contradiction which we must resolve is the contradiction between

the people's ever-growing material and cultural needs on one side and back-
ward social production on the other. Second, the socialist society must have
highly developed productive forces as its material basis. The superiority

of the socialist system over the capitalist system is reflected in many
things, but the most important criterion should be the speed and result of
economic development. If socialism is always associated with poverty, it
will not have a firm foundation. Departing from the central task of moder-
nizing economic construction, socialism will face the danger of losing its
material foundation. Third, to oppose hegemonism in international affairs

and help safeguard world peace, to enable Taiwan.to be reunited with our
motherland and to restore China's unity, and to speed up our four moderniza-
tions are the three major tasks we must undertake in the 1980's. Among

these three tasks, the core is our modernization construction. Accomplishment
of this task is the most important condition for our solution of inter-
national and domestic problems. The relative importance of oyr role in inter-
national affairs depends on the magnitude of our success in economic construc-
tion. Therefore, to shift the focus of our work with devotion of our attention
and efforts to the four modernizations is an objective requirement of the

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building of socialism and is compatible with the people's basic interests.
Thus, in his article: "Uphold the Four Basic Principles," Comrade

Deng Xiaoping says: "Whether we can achieve the four modernizations will
determine the destiny of our country and nation. Under the actual current
conditions of China, to do a good job of our socialist four modernizations
is tantamount to upholding Marxism and holding high the great banner of
Mao Zedong Thought."

On the question of shifting our focus, we have learned profound lessons from
our experience. During the initial period after the founding of the PRC,

in particular, after the socialist transformation had been basically
accomplished, Comrade Mao Zedong repeatedly said that we had to shift the
focus of our work to economic work and technological revolution. He also
correspondingly put forth some correct policies and measures, for example,
appealing to all cadres in our party to study economic construction, formu-
lating plans for developing science and technology, grasping the building
of the contingent of intellectuals, and so on. The Eighth CPC Congress
clearly laid down the guiding principle of shifting the focus of our work.
Later, however, because of the gradual development of "leftist" guiding
ideology, this correct guiding principle was not persistently implemented.

By the time of the "Great Cultural Revolution," it was even completely
violated by Lin Biao and the "gang of four." In the final analysis, the
mistakes committed by our party in the past were due to our failure to firmly
strive for a strategic shift in the focus of our work. For many years, class
struggle was considered to be the principal contradiction. This not only
subjected economic construction to the incessant interference and disruption
by political movements, but led to the adoption of a series of erroneous i
measures, such as overlooking the importance of scientific and technological
development, paying little attention to raising the scientific and cultural

standard of the whole people, discriminating against intellectuals or even

taking measures against them, and so on. Consequently, the development of

social productive forces was slow, unsteady and not well coordinated, and

the people's livelihood was not significantly improved. In view of our past

experience, our CPC Central Committee has repeatedly stressed the necessity

to shift our focus with the greatest determination. In his article: "The

Current Situation and Our Current Tasks," Comrade Deng Xiaoping says: "We

must now firmly resolve that, except when a large-scale war breaks out, we

must consistently and persistently perform this task. All other things must

revolve round this task and it must not be interferred with in any manner.

Even if a large-scale war breaks out, we must continue to undertake this 3
task or start doing it all over again after the war Our whole party and

the whole people must set up this lofty aspiration and must not slacken.

We must be more ‘obstinate’ and must not swerve." °

/When we study the second main point, we must pay special. attention to grasp-
ing the following two questions: First, the necessity of readjusting our
national economy and the effectiveness of readjustment; and second, the
shifting of economic ‘work into the path of taking the enhancement of economic
benefits as the core./

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the rural economy will mainly be based on labor and production by house-
holds or work groups in the future. Of course the scale will be bigger

in some places, such as in Heilongjiang.

Is such a small scale compatible with the socialization and modernization
of agriculture? Actually there is no natural link between the socializa-—
tion of production and the scale of production. Large-scale production
does not necessarily have to be socialized production and socialized pro-
duction can be carried out on a small scale. In the past when we had
people's communes which were "large in size and collective in nature," the
scale of production was fairly big and was by no means socialized. After
many years, they still remained in a state of self-sufficient or semi-
self-sufficient production. With the Practice of the output-related con-
tracting system, farm output quotas are fixed for each household, laborer
or work group. Although the scale of production is very small, it does not
mean that the contracting units are self-sufficient. However, it does mean
a step forward in the direction of socialization. The rate of growth in
the percentage of marketable farm and sideline products in recent years can
testify to this.

Modernization also does not have any natural link with the scale of produc~
tion, but is nevertheless closely related with the socialization of agricul-
‘ture. The question hinges not on the scale of production but on the degree
of socialization. The modernization of agriculture is always accompanied
by the development of socialization. Under socialized conditions, highly-
developed division of labor will make it possible to fully rely on special-
ized technical services to modernize household undertakings. This has been
proved by the experiences of various nations.

On the whole, the various forms of the cooperative economy with the house-
hold or work group as the basis now developing in China's countryside are
relatively small in scale. These relatively small-scale undertakings
conform with the national condition, fit the rural productive forces at the
present stage and suit the cultural, technical and Managerial levels of the
broad masses of agricultural producers in our country. They make it easy
for us to fully tap the latent potential of the work force, of traditional
skills and of managerial capability, to make use of scattered funds and to
give full scope to the great number of small and simple production tools
and facilities. They also make it possible for us to absorb a bigger work
force with a relatively small fund and to reduce energy consumption and
achieve faster and higher returns on investment.

By small-scale production, we do not mean undertakings by the small peasants
in traditional agriculture of the past. Here, "small" does not imply self-
sufficiency, just as "massive" in “doing things in a massive and unplanned
way" does not mean socialization. We are talking about production which is
small in scale but heading in the direction of socialization. It is indeed
"small" in terms of the scale of production, but "big" in the sense that it
is commodity production geared to the needs of the society.

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3. We must continually sum up our experience to bring about continual
improvements in our external economic work. When we import technology

or equipment, we must realistically consider our ability of assimilation
and ability to form complete sets. We must oppose binding our own hands
and feet, hesitation and delay. On the other hand, we must also oppose
rashness, credulousness and easily making promises. In the future, we
should mainly import technology as well as materials, single pieces of
machinery and key equipment which we cannot manufacture ourselves. In
making use of foreign funds, we must fully consider our ability to repay
the funds with interest. We must in the first place obtain those low-
interest loans that can be borrowed on relatively favorable terms. In
making use of foreign funds, we must meticulously and carefully conduct
feasibility studies and pay attention to economic benefits. We must

not act rashly. In expanding foreign trade, the key target is to
increase our exports. We should fully develop our country's superiority
of possessing plentiful resources and free our minds from restrictions

in entering into the international market. We must adhere to the principles
of centralized planning, drawing up unified policies and uniting ourselves
in dealing with foreign businessmen. We must resolutely prevent decentral-~
ization in dealing with foreign businessmen and competitive price cuts,

so that we can prevent any resultant losses, We must oppose the blind
importing of consumer goods, which will be harmful to our national
industries.

/When we study the sixth main point, we should mainly think about why we
must stress the building of a socialist economy with Chinese characteris—
tics, what experience has been gained in this respect and the necessity
to continue our exploration./

!
\
i

In his opening address at the 12th CPC Congress, Comrade Deng Xiaoping said:
“Our modernization construction must proceed from China's actual conditions.
In both revolution and construction, we must pay attention to learning

from foreign countries’ experience and taking it as reference. However, to '
mechanically copy other countries’ experience and models will never bring

about success. We have learned many lessons from experience in this respect.

The basic conclusion we have drawn by summing up our historical experience

over many years is that we must integrate universal Marxist truths with our

country's specific actual conditions and take our own path to build socialism

with Chinese characteristics." In the past, we repeatedly suffered from

setbacks in carrying out socialist construction. The most basic reason is 2
that we did not soberly understand our basic nationcs condition. We did not
understand that in a large country such as ours, with a large population,

a weak foundation and a low level of development of productive forces, it is
necessary to make prolonged and arduous efforts in carrying out modernization
construction. As a result, we were always impatient for success, as reflected
in our guiding principles, thus committing "leftist" mistakes. Since the
third plenary session, the CPC Central Committee has grasped this basic ques~
tion,has accordingly set to rights things which had been throw into disorder,
and has been continually exploring the path of Chinese-style modernization.

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it is unsuitable and "outmoded." They said: Since World War IL, in the
developed capitalist countries, production has developed speedily, the
livelihood of the people has improved, "the demarcation line between
labor and capital has tended to disappear," the great majority of the
working class "has merged" with the existing system and the capitalist
system has injected a new "life force" so that we cannot get rid of

its crisis and "be prosperous forever." They hold that the Marxist theory
on the contradiction between labor and capital in capitalist society has
become invalid and that the thesis that capitalism is doomed is untenable.
All genuine Marxists should face up. to this problem and give a reply.

True, the production of the capitalist countries speedily developed fora
certain period of time after World War II. However, this phenomenon could
not negate the Marxist analysis of capitalism. Marxism holds that produc-
tive forces are the most revolutionary and active factor of the modes of
production. They always forge ahead. In the long process of social
production, people constantly improve tools, accumulate labor experience
and raise labor skill, thus raising productive forces to a new level.

Even when the relations of production no longer suit the nature of produc~
tive forces, and in the long process during which the old relations of pro-
duction have not been replaced by the new ones, it does not mean that
productive forces no longer develop or come to a standstill. As is known to
all, Lenin brought into full light the decadent and moribund nature of
capitalism when it develops to the stage of imperalism; at the same time,
Lenin also told people that "it would be a mistake to believe that this
tendency to decay precludes the rapid growth of capitalism" ("Selected Works
of Lenin," vol 2, p 842). Marxism holds that due to various factors, there
is nothing strange about the economic development of capitalist countries
since World War II. However, this development has in one way shaken the
basic Marxist analysis of capitalism. Facts prove that the basic contradic-
tion of capitalism as revealed by Marx, ‘that is, the contradiction between
the mass character of production and the private ownership of the means of
production, not only still exists but also becomes more acute.

1. The development of capitalism since World War II has not removed economic
crisis. Since the end of World War II, that is, in the 37 years between

1945 and 1982, five worldwide economic crises have occurred in major capital-
ist countries. The current economic crisis is the most serious and pro-
found since the war. It has lasted for more than 3 years and is still
lingering at the bottom of the valley. The frequent occurrence of the
periodic economic crisis is the concentrated expression of the basic con-
tradiction within capitalism. As long as the capitalist system exists,

the social pestilence which brings disaster to entire production and worker's
life cannot be prevented or cured. Over the years, in an effort to extri-
cate themselves from the crisis, the Western capitalist countries have
adopted numerous measures. However, by treating the symptoms instead of

the disease, they have attended to one thing and lost sight of another.
Keynesism has failed to work properly; monetarists and supply-siders are also
unable to offer any "good recipes." Bourgeois politicians and economists ex-
claimed pathetically: The capitalist world has entered a time of hesitation,
groping and depression" and the West now has a crisis of political economics
but does not possess the political economics to remedy the crisis.

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He perseveringly and unswervingly fought for communism all his life, bend-
ing his back to the task until his dying day. Both in theory and practice,
Marx bequeathed to the proletariat and working people the world over an
inexhaustible, valuable legacy.

Over the past century, the history of the world has developed in precisely
the direction pointed out by Marx. Under the banner of Marxism, the
communist movement has developed from a movement of a small number of
people to one with an extensive mass character and from one chiefly

limited to Western Europe to a worldwide movement. Now, the socialist
system, as an initial stage of the communist society, has been established
in a number of countries. Under the influence, promotion and support of the
world workers' movement and the socialist countries, nearly 100 countries
in Asia, Africa and Latin America have cast off the yoke of colonialism

and won independence. The Chinese people have an especially fond feeling
for Marxism. Beginning from the Opium War of 1840, the outstanding sons and
daughters of the Chinese nation advanced wave upon wave, seeking the truth
to save the nation and people. It was not until the October Revolution that
they succeeded in finding Marxism and integrating it with the reality in
China. The Chinese revolution thus took on an entirely new look and the
dark China was gradually transformed into a bright China. The history over
the past century since the death of Marx is one in which Marxism has
continuously won successes and developed. Wherever Marxism is spread and
grasped by the people, earth-shaking changes take place. This is an objec-
tive truth which has been repeatedly proved by the historical facts of the
past century.

The thinking and theory of Marx.constitute the greatest achievement in the
history of human ideology. There has never been a theory in the world
which possesses such might to bring about radical changes in the situation
as Marxism. Isn't this so? We may well ask: Were the philosophies of
ancient Greek and Rome comparable to it? Was the Renaissance of the
14th-l6th centuries comparable to it? No. Undoubtedly, the advanced ideas
of different times in human history made their own historical contributions
to history. Their rational elements have been absorbed by Marxism and are
still radiating with light today. However, as theories, they are incom-
parable to Marxism either in character, content, depth or extent. As for
some theories or ideological schools that sprang up before and after the
founding of Marxism, most of them lasted briefly and became things of the
past in no time, forgotten by people. Marxism, and only Marxism, lasts
long and always keeps young. In the past century und more, the name of
Marx has sounded everywhere, from Europe to the Americas and from the
capitalist countries to the colonial and semicolonial countries. All re-
actionaries look upon Marx as a sworn enemy and do their utmost to oppose
him, The revolutionary people of various countries, however, loyally look
upon Marx as a teacher and rally under the banner of his thinking.

II

Marxism has played a decisive role in changing the political and social
outlook of the 20th century. This is a hard fact. However, some people
hold that Marxism "was suitable only to the conditions in the mid-1900's"
and that with respect to the 20th century, particularly after World War II,

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The basic characteristics of this mode as practiced in China are: First,
centralized labor and centralized management; second, the evaluation of
work and registration of workpoints and distribution according to
workpoints earned.

To begin with, centralized labor and centralized management do not suit the
general characteristics of agriculture very well. Soil texture, topography
and so on vary on a vast piece of land. The growth and reproduction of
plants and animals also vary under different conditions. Moreover, pro-
duction may be seriously affected by such constantly changing factors as
wind, rain, aridity, humidity, coldness, heat, insect pests and epidemics.
For these reasons, agricultural development must depend more on laborers
who are familiar with the conditions of production and can promptly under-
stand and grasp changes in these conditions, who always show great concern
for the growing process of plants and animals and attend to them with great
care and patience, and who can make decisions and adopt necessary measures
on their own according to changing conditions and needs. The quality of
work of the agricultural laborers is mainly expressed in these areas.

Centralized labor and centralized management cannot meet the special needs
of China's agriculture in particular. In terms of natural conditions, China
is a country with a vast population but limited arable land. This makes it
necessary for us to carry out intensive farming and management. Moreover,
because our country has complicated topographical conditions and few large
plains and basins, local climatic and soil variations are marked. This
makes it particularly necessary for the laborers to work with initiative
and great care and to make decisions and adopt necessary measures according
to specific conditions. In terms of the development of the productive forces,
a large part of the country still basically rely on draft animals and small
farm implements such as plows, rakes and walking tractors. Drainage and
irrigation facilities are still wanting and such parts of the rural infra-
structure as energy, transport and communication are weaker still, division
of work has not been well-developed. The cultural, technological and
managerial levels of the producers are low and trained scientists, techni-
cians and management personnel are lacking in the countryside. In short,
our rural productive forces are still at a relatively low level of develop-
ment. For example, draft animals, hand tools like plows and rakes and some
small machines and tools are suitable for possession and use by individual
households. The decentralized use of material production conditions also
means that labor will be carried out independently. This is particularly
true when division of labor is not well-developed. Under such circumstances,
all we can achieve by having many people work together is simple coordina-
tion. Except on a few necessary occasions, if simple coordination is
carried out in everyday production, the individuals will lose the great
concern they showed for the production process in decentralized labor.
Worse still, this will lead to a waste of time, a slackening of efforts,

an unwillingness to work meticulously and a decline in the quality of labor.
When the managerial level of the cadres is low, in particular, it will be
difficult to avoid arbitrary directions. The masses of peasants describe
this kind of simple coordination as "doing things in a massive and un-
planned way."

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some conservative Americans find it very difficult to see the superiority
of the capitalist system," and "in the United States, a multitude of moral,
social and economic issues remain unsolved." His conclusion was: "The
United States should take the road of socialism."

More than 70 years ago, Lenin pointed out: "Only for a very short time
could people, and then only the most short-sighted, think of refashioning
the foundations of Marx' theory under the influence of a few years of in-
dustrial boom and prosperity." ("Selected Works of Lenin," vol 2, p 5)

After World War I, a short period of prosperity emerged in the capitalist
countries and the bourgeoisie and its scholars asserted that Ford had re-
placed Marx, but before long, the grave crisis of 1929-1933 blew their
illusions to smothereens! Today, Marx basic analysis of capitalism is not
outmoded. We should like to ask: At the present stage, which capitalist
country, no matter what great changes it has undergone, can solve the con-
tradiction between mass social production and capitalist private ownership,
the contradiction between the organizational character of production in some
individual enterprises and the anarchy of the entire social production and
the antagonism between the working class and the bourgeoisie? Facts show
that capitalism is unable to solve any of these contradictions and antago-
nisms. Only Marxism can give a scientific reply to the various issues which
bewilder the contemporary capitalist world and point out the road to solv-
ing these issues. Marxism is still our powerful weapon for correctly under-
standing contemporary capitalism.

The inevitable doom of capitalism as revealed by Marx is a general trend
independent of man's will. It is a trend that cannot be reversed. The
capitalist social system has died out in some areas of the world; it is be-
set with difficulties in other areas, Naturally, the “inevitable doom" of
capitalism does not mean that it will die out immediately. In judging the
emergence and destruction of a social form, it is necessary to have an his-
torical perspective. In the long river of human history, several decades
and even a century are only a short time. Some people exaggerate the
development and prosperity which capitalism enjoyed for 10-20 years after
World War II, negate the inevitability of socialism replacing capitalism and
preach the rational and eternal nature of capitalism. This is not a scien-
tific viewpoint but the "biased mentality" of the bourgeoisie.

Naturally, we in no way hold that Marx exhausted the study and analysis of
capitalism. As a matter of fact, Lenin greatly developed Marx' understand-
ing of capitalism. Since Lenin, Marxists all over the world still continue
to deepen the understanding of capitalism. The capitalist society is the
most complicated social form in human history. Just as Lenin said, even if
there had been 70 Marxes, they would have been unable to grasp the sum total
of its complex changes. However, Marx brought to light the essence of
capitalism and grasped its chief points, thus clearly showing the orientation
to people so that they would not be confused by the myriad changes of
capitalism. History will not be at a standstill and theories will also con-
stantly develop. It should be acknowledged that we have not conducted

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"HONGQI' TO PUBLISH BOOK OF ARTICLES ON MARX
HKO40829 Beijing HONGQI in Chinese No 5, 1 Mar 83 p 48

{Publication news by Hong Chu [3163 0443]: '""'Developments of Marxism in
China' To Be Published Soon--To Mark the Centenary Anniversary of the
Death of Karl Marx"]

[Text] To mark the centenary anniversary of the death of Karl Marx, the
great teacher of the proletariat, HONGQI editorial department has organized
a number of theoretical articles. These articles were written by Comrades
Hu Sheng, Fan Ruoyu, Lin Zili, You Lin, Jia Chunfeng and Teng Wensheng

and comrades from the editorial department. These articles mainly expounded
how the CPC has resorted to brilliant Marxist theory and made theoretical
contributions to Marxism by combining it with the national condition of
China in summing up the experiences in both revolution and construction.
Some of these articles have already been carried in by HONGQI and some
others will follow soon.

In order to help the broad masses of cadres conscientiously study the docu-
ments of the 12th CPC Congress and create a still better new situation in
carrying out the modernization program and commemorate Marx through their
own deeds, HONGQI will compile these articles into the book "Developments
of Marxism in China." The books will come off the press soon and will be
circulated across the country.

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"HONGQL' ON BUILDING TWO CIVILIZATIONS
HKO40747 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 45-47

[Article by Gao Lu [7559 6424]: "Why We Say That in the Building of the Two
Civilizations, 'Each Is the Condition and Objective of the Other'"]

{Text] It was pointed out in the report to the 12th party congress that the
building of material civilization and the building of spiritual civilization
are "each the conditions and objective of the other." How should we under-
stand the so-called mutual condition and mutual objective?

That the building of spiritual civilization is conditioned by the building of
material civilization is quite understandable. First, people first of all
need to eat, clothe themselves and live and then they will be able to engage
in spiritual production in their effort to develop spiritual life. Histori-
cally, only when material civilization had developed into stage with a cer-
tain surplus of the material means of subsistence could a portion of mankind
be freed from material production to engage solely in spiritual production.
In the process of the history of mankind, it is none other than the division
of mental labor and physical labor that has tremendously developed social
spiritual production and consequently promoted the development of the whole
society (including material production). Second, the building of spiritual
civilization must depend on material means. For example, to engage in the
research of natural science requires various pieces of apparatus for experi-
ments from small tube clamps to high-efficiency accelerators, education
requires educational apparatus such as classrooms and teaching apparatus
while modern intelligence apparatus such as printing machinery, audio and
video recorders, TV sets and telecommunication satellites are needed for
recording and disseminating the achievements of spiritual civilization. The
more the quantity and the better the quality of such material means become
the more favorable they become to the building of spiritual civilization.
The quality of the ideological content of the building of spiritual civili-
zation is not simply shown through material goals; but the quantity, scale
and technical quality of the building of spiritual civilization such as
quantity of libraries and museums and schools, the circulation of publication
and the number of opera houses and stadiums must also have their material
goal.

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The sector of material production "is always the realm of necessity. The
realm of freedom begins on the shore of the realm of necessity as the
purpose of the development of the capability of mankind itself." (Ibid.,

vol 25, pp 926-927) That is to say, material needs are only men's “external
goal," and they cannot but seek such goals for their own existence; the
purpose of the social activities of mankind is to develop their capability
and the most important content is the development of the spiritual creative
capability and spiritual life of mankind. It is only when mankind's
capability has been developed fully and in an overall way that mankind

will be able to enter into the realm of freedom.

To look at it from the point of view of philosophy, the division of the
sphere between goal and condition or between goal and means is also relative.
We must in no way absolutely set them in opposition or fix them. They are
in dialectical and historical unity. They not only link with, rely on and
condition each other but under certain conditions they may also change each
other. It is the final goal of we communists to realize the communist
social system; relative to this goal, the building of material civilization
and spiritual civilization we are now carrying out are the means to create
conditions for the realization of this final goal. But it is also our
present historical task or goal to create these conditions. As regards
the relationship between the building of these two civilizations and our
final goal, each construction can become the goal of the other.

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that land was at that time the basic means of subsistence for nearly all
peasants. Since China had a large population but limited cultivated land,
unevenness in handing out land contracts was unacceptable to the peasants.
In line with this evenness in land contracting, the amount of money put
into the land by the contractors also tended to be roughly even. This was
because the efficiency of the fixed assets used by the contractors was more
or less the same and the amount of circulating funds that can be invested
on the land was subject to control within reasonable limits. Besides,
there were credits and relief for the poor granted by the collective body
of the cooperative economy. These were factors for the evenness.

On this general premise, that is, the material production conditions at

the disposal of the contractors are roughly even, the standard output quota
more or less shows the average amount of labor necessary for attaining

this output quota. Therefore, using this standard output quota as the yard-
stick, it is possible to measure the labor contributed by each contractor
so that what he gets can roughly correspond to the labor he contributed.
Particularly important is that this method of linking remuneration to output
is easy to carry out. It is well-received by the masses of peasants because
they find it easy to grasp.

The second is a more complete form of linking remuneration to output as
practiced in specialized contracting.

With the development of specialization in the contracting economies, devia-
tions from evenness or the development of unevenness in land contracting
will become something of a regular phenomenon. When more and more producers
doing jobs other than cultivation can earn a steady, reliable and higher
income from specialized production and when the supply of grain ration is
reasonably guaranteed, land will cease to be the indispensable means of
subsistence for all peasants and the state of affairs in which "every
household contracts land for cultivation" will gradually change. The size
of land contracted out to those engaged in cultivation will no longer be

so strictly restricted by the principle of even distribution and will

be determined by a reasonable scale of management governed by such factors
as technological requirements and the degree of socialization in produc-
tion. Meanwhile, due to the need to properly concentrate land and join
together scattered pieces of land, differences in the quality of the land
contracted out, that is, its fertility, condition of irrigation, proximity
and so on, will become more pronounced. At the same time, there will also
be more obvious differences in the amount of money used and the returns
produced by contractors engaged in production and undertakings other than
cultivation.

On the general premise of such a change, the simple form of linking remun-
eration with output gradually will not suffice.

With specialized contracting, it is still necessary to have the basic cate-
gory of a standard output quota because it is the output that can be

attained by most people after the full and rational input of labor (including
management, because management is also a kind of labor). Thus, it is also

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vial

JPRS 83318

22 April 1983

China Report

_ RED FLAG
No. 5, | March 1983

FBIS| FOREIGN BROADCAST INFORMATION SERVICE

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"HONGQL' VIEWS ECONOMIC DEVELOPMENT, BASE FIGURE
HK040423 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 47-48

[Article by Gong Ming [1562 2494]: "What Is the Relationship Between the
Speed of Economic Development and the Base Figure?"]

[Text] In studying the report to the 12th party congress about the goal
and measures of economic construction, some comrades pointed out that in
the next 2 decades, our national economy will grow more rapidly; on the
other hand, they held that in the past, with an increasing base figure,
the speed of economic development slowed; how should we understand the
relationship between the speed of economic development and the base figure?
Last November, Comrade Sun Yefang, a famous economist in our country,
issued an important article in which he said that: "big base figure and
low speed" is not a law.

Of course, in practical life, we can see many examples of "big base figure
and low speed.” For example, when per-unit output is relatively low in
agricultural production and we use more labor and apply more fertilizer,
we will be able to increase per-unit output; but when the per-unit output
has reached a relatively high level, the increase of per-unit output will
not be apparent even if we invest more. There are similar conditions in
same other aspects. But does a big base figure always result in low
speed? Not necessarily. .

Suppose the proportion of expenditure and accumulation remain unchanged in
the GNP, that is, when the accumulation rate remains unchanged, then the
greater the GNP, the greater will be the proportion of the absolute value
of accumulation. Another example; if the efficiency of investment in the
expansion of production made by accumulation remains unchanged, the abso-
jute value of the economic growth will develop proportionately following
the increase in the absolute value of accumulation. In this way, the
relationship between the base figure and speed will no longer be charac-
terized by "big base figure and low speed"; on the contrary, there will
appear the relationship of "the base figure constantly grows but the speed
remains unchanged."

The first supposition can be realized. When the growth of population is
not so high and the growth of expenditure caused by population growth and
increase of per-capita expenditure does not exceed the development of

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be criticized, enforce discipline where necessary and punish legally when
we are required to use law. Never should we be overlenient or indulgent
to these activities. Party and government leading groups, people in all
circles of society and mass organizations such as trade unions and the
CYL should all show concern for women's rights and interests. As the
women's own mass organization, the women's federation should still more
be the real home of women. It should listen to the voice of and reflect
the demands of women. When women's rights and interests are encroached
upon, it must come out boldly to vigorously work and loudly shout for
remedy their restoration. We should mobilize forces from all circles

and vigorously prepare public opinion for opposing the prejudice that men
are superior to women and advocating equality of the sexes. We should
cite in a big way the advanced individuals and families that have fought
against the old ideology, customs and conventions of discriminating
against women and particularly praise, support and award the couples and
families who have only one-single female child and bring up the child
satisfactorily. In all areas and departments, we should conscientiously
carry out the policy of sex equality and earnestly put an end to the
existing practice of sex inequality in employment, education, allocation of
housing, labor remuneration and provision of subsidies for people in
difficulties. All our CPC and CYL members and cadres must take the lead
in respecting women and protecting women and children and strive to bring
about a good custom of showing concern for and respecting women throughout
our society.

i
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i
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Women should rise up themselves, overcome their sense of inferiority and
manage to gain self-respect and recognize their equal rights with men.

This is a basic way for eliminating the traditional prejudice that men

are superior to women. Marx said, "Any man who knows a little history will
understand that without women as catalysts, it is impossible to achieve any
great social reform." ("Collected Works of Marx and Engels," Vol 32, p 571) i
Now, women in our country have already become masters of our country and :
society and enjoy the same rights as men. Women should be more fully

conscious of their social position and their important role in our country's

economy and social development, especially their particularly important

role in building up socialist spiritual civilization. Never should they

look down upon themselves. The dauntless fighting spirit of the national

women's volleyball team, Zhao Chun's communist labor attitude and the

exemplary deeds of hundreds of "March 8 Pace-Setters" and "March 8 Advanced

Collectives" are the glory and pride of the women of our times. All women °
should act like these people, foster magnificent iveal, widen their field

of vision, study hard and strive to heighten their ideological conscious-

ness and raise their scientific and technical level. Thus they will be-

come people of ability for the modernizations and will be able to devote

their strength to the future of the motherland and the interests of the

people. Our large number of women, especially young ones, should bravely

stand on the front line in putting an end to the old customs and developing

Ah

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the twists and turns in the course of the development of socialism? How
can these twists and turns be depicted as "crises" of Marxism? Marxism is
a science and a truth. The issue is how this science and truth is to con-
tinue to develop. How can this lead to any "crisis?" If some people have
wavered in their belief in Marxism and have undergone a crisis of belief,
that is their personal problem. What does it have to do with Marxism?
Comrade Mao Zedong said, "Taught by mistakes and setbacks, we have become
wiser and handle our affairs better." ("Selected Works of Mao Zedong,"
vol 4, p 1417) This means that when we suffer setbacks, as long as we can
conscientiously analyze the causes of the setbacks, sum up our experiences
and draw lessons from them, we will be able to more satisfactorily master
Marxism and continuously promote the progress of the revolutionary cause.
This is the only correct attitude of a revolutionary toward setbacks.

Only Marxism can save China and only socialism can save China. This is an
indisputable historical conclusion that the Chinese people have drawn from
their own experiences in the past more than 60 years. Along with the
realization of the great historical change in bringing order out of chaos
and along with the victorious progress of socialism on all fronts, those
who wavered in their belief in Marxism have already changed or will change
their erroneous ideas and thoughts and become enlightened. An enthusiastic
rush for learning Marxism is in great vogue among youths and the broad ranks
of cadres and masses. Marxism shines with boundless radiance and communism
has boundless prospects. "The world in the future will certainly be a world
of red banners!"" This is a law of social development that cannot be changed
by human will.

Iv

Marxism is an invincible banner. The temporary prosperity in capitalist
countries cannot prove that Marxism is "outdated," nor can the temporary
setbacks in socialist countries be regarded as "crises" of Marxism. Any
doubt about or denial of the correctness of Marxism is wrong. Commemorating
Marx and always forging ahead along the Marxist path is our steadfast will
and belief.

Forging ahead along the Marxist path does not mean that we should copy every
word and conclusion of Marx. It has been 100 years since Marx died. We
can never hope that Marx could give any readymade answers to all the ques-
tions facing us at present. As Engels told us long ago: It is a "misunder-
standing" to think that "people can find in Marx' \..itings unchangeable,
readymade and permanently applicable definitions.” ("Collected Works of
Marx and Engels," vol 25, p 17) During the 100 years, tremendous changes
have taken place in science, technology and politics and many aspects of
these changes were impossible for Marx to have foreseen. Therefore, it is
only natural that some of Marx' words and conclusions appear outworn and
outdated. Disregarding the change in the historical conditions and mechani-
cally applying Marxism in the manner of. treating it as dogma does not mean
checking and developing theory by practice, but means using theory to

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all. We have consolidated the state power of the people's democratic
dictatorship and realized the reunification of the whole country, except
Taiwan and a few islands around it, and the great unity of the people of
all nationalities throughout the country. We have defeated the aggres-
sion, sabotage and armed provocation of imperialists and hegemonists and
safeguarded the security and independence of the state. We have consoli-
dated and developed the ascendancy of socialist public ownership, estab-
lished a relatively integrated system of industries and national economy
and to a great extent developed our economic, educational, scientific,
cultural, medical and other undertakings. We have basically solved the
problems of feeding and clothing our 1 billion people and markedly improv-
ed their material and cultural life. Our country's economy is still rela-
tively backward, but the speed of our economic development in the past

30 and more years has not only by far exceeded that of the old China, but
has also been considered very quick compared with countries in the
capitalist world. Practice has fully proved that socialist system is
superior to capitalist, as well as semifeudal and semicolonial, social
systems. Since the 3d Plenary Session of the 11th CPC Central Committee, due
to new principles and policies suited to our national conditions, the
superiority of the socialist system has been more vigorously given play to
and displayed. Compared with the capitalist world that is entangled in a
global economic crisis, our country enjoys a uniquely fine situation. Does
this not provide most convincing evidence of the superiority of the
socialist system?

The development of socialism has undergone and will continue to undergo
twists and turns, but this can never be the basis for drawing the conclusion
that Marxism is in a "crisis." Why? Because they are two completely dif-
ferent questions and we can never confuse them. We cannot deny that there
have been crises in our socialist cause. During the 10 years of internal
disorder, Lin Biao and Jiang Qing counterrevolutionary cliques put our
country in an abyss of disaster. Was this not a crisis? Undoubtedly, it
was a very serious crisis. However, what did this have to do with Marxism?
The crisis was precisely the outcome of their opposition and violation of
Marxism. Of course, besides the sabotage of Lin Biao and Jiang Qing counter-
revolutionary cliques, mistakes in the guiding ideology of our party were
also one of the causes that gave rise to the decade of internal disorder.
However, after all, these mistakes ran counter to Marxism. Moreover, how
did we overcome and end this serious crisis? Everybody knows that this was
the result of the struggle against and victory over Lin Biao and the "gang
of four" by the Chinese communists and broad masses of people armed with
Marxism. This fact is certain and without any doubt: the undermining and
violation of Marxism caused that crisis, while the restoration of the
adherence to Marxism put an end to it. Marxism not only has nothing to do
with any crisis, but is also a weapon for overcoming crises. How can
Marxism be confused with the "Marxism" distorted by the Lin Biao and

Jiang Qing counterrevolutionary cliques? How can Marxism be blamed for

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by peasants as their own kinsmen. In factories, many workers who have
carried out technical reforms alongside intellectuals have come to realize
their value. It is none other than these workers and peasants who have
come to the fore to refute unfair opinions about intellectuals.

Of course, to stress the importance of making a good arrangement for the
work of intellectuals in no way means that it is not important to help
intellectuals solve the problems in their lives. On the contrary, solving
the problems in the lives is a necessary condition for enabling them to dis-
play their roles still more effectively. A good horse that can walk

1,000 miles a day "will not have enough strength if it is not fed enough"
and "it can in no way show its strength and gracefulness." This is a truth.
In fact, the comrades who are more professional-minded in general do not
care too much about their lives. Chen Jingrun lives for many years in a
room that was built on a discarded latrine where he lived on cool steamed
buns and carried out scientific research. Jiang Zhuying still had hot
pickled mustard tubers made in Sichuan for his meals during his stay abroad.
Leading comrades at various levels must be more concerned with the lives

of these comrades so that these comrades will not need to worry about the
lives of their families and consequently will be able to concentrate their
efforts on improving the prosperity of their country.

Intellectuals in general have their specialities. Therefore, in order to
employ them correctly, it is necessary to enable them to display their
specialities. Why was it that a university student from a silicate
speciality finally became a tricycle driver? I think the basic reason is
that the leadership did not really pay attention to intellectuals. This
question must first of all be resolved. In addition, some leading comrades
did not understand the specialization of intellectuals and it seemed to
them that intellectuals are versatile and consequently these comrades were
not in a position for a long time to use the specialities of intellectuals.
In fact, this situation represents a misunderstanding on the part of laymen.
The division of work in modern science, be it natural science or social
science, is becoming more and more detailed. It is true that much basic
knowledge is interlinked, but many specialities are relatively independent
and therefore we cannot demand that intellectuals understand and be able

to do everything. The intellectuals themselves must be able to handle

well the relationship between specialization and extensive knowledge and try
their best to broaden their knowledge. Extensive knowledge and specializa-
tion is the unity of opposites and in order to master a speciality it is
necessary to have broader knowledge. But the leadership must appoint intel-
lectuals according to their specialities. Not to appoint them according

to what they have learned and according to speciality is in fact a waste

of talent.

In promoting intellectuals to leading positions, also, it is necessary to
consider specialities. It is imperative to gradually change the ranks

of our cadres so that they are composed of revolutionary young cadres who
have grasped knowledge and professionalism and it is imperative to promote
to leading positions cadres with specialized knowledge. But this does not

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"HONGQI' CONDEMNS PREJUDICE AGAINST WOMEN
HK290649 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 25-27

[Commentator's article: "Overcome the Outworn Prejudice That Men Are
Superior to Women"]

[Text] Now, our party members, CYL members and party cadres must pay
serious attention to a social problem, that is, in carrying out acti-
vities of building up socialist spiritual civilization, we should vigor-
ously advocate equality between women and men and oppose thoughts and
actions that regard men as being superior to women. Why should we raise
this problem?

We all know that in our country's economic and social development, the
population issue has always been an extremely important one. Pursuing
planned parenthood is one of our country's basic national policies. We
must vigorously encourage the practice of one couple giving birth to only
one child and strive to keep our population below 1.2 billion by the end
of this century. Otherwise, the excessive growth of population will be-
come a heavy burden that blocks our way to the realization of the goal

of modernization. However, right in the situation in which we are carry-
ing out this basic national policy, the following serious social problem
has cropped up: the old ideas that "only boys can carry on the family
line," and that "girls are useless because they cannot support their
parents when they get old" are still in vogue in our society. In various
areas, especially rural ones, there has occurred the practice of desiring
only to give birth to boys and not to girls, of abandoning and killing
baby girls and of husbands and parents~in-law discriminating against,
maltreating and even hounding to death women who hcve given birth to
female babies. We must never turn a blind eye to, and must resolutely
fight against, these outworn prejudices and cruel acts. Otherwise, we
will not be able to really guarantee the legitimate rights of women and
children and it will be impossible for a fine general social mood to take
shape. Moreover, the implementation of the basic national policy of
planned parenthood will,be undermined and the whole cause of modernization
will even be seriously hindered.

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i
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It is also understandable that the building of spiritual civilization is
also the premise for the building of material civilization. First,
material production is always conducted in a social environment and is one
of the social activities of mankind. Ina socialist society the building
of spiritual civilization will help regulate the relationships among people
and between individuals and society, so that people will be able to con-
sciously protect public order and production order and provide good social
conditions for building material civilization and guarantee the socialist
orientation of the building. Second, the educational level and knowledge
structure of material producers, as factors in social productive force,
participate directly in the process of material production, play a dynamic
role in promoting the building of material civilization. Third, communist
ideas, morals and beliefs will be able to inspire the labor enthusiasm of
laborers and instill understanding among workers that they are the masters
of mankind so that they will display their initiative to the utmost. This
is also an important condition for building material civilization.

To say that "each is the objective of the other" means that the building of
spiritual civilization takes as its objective the promotion of material
civilization. At the same time, the purpose of building material civiliza-
tion is to promote the building of spiritual civilization. In the process
of socialist construction, these two aspects promote and supplement each
other in their common progress.

Why do we say that the purpose of the building of spiritual civilization is
to promote the building of material civilization? We all know that Marxist
historical dialectics stresses the importance of material life and economic
life as the basis for social consciousness, social spiritual life and the
development of the whole society. Whether a political, ideological or
spiritual reform conforms with the requirement of historical development is
determined in the long run by whether it promotes social productivity. To
regard the progress made in promoting material civilization as a purpose of
our socialist construction means to uphold the basic principle of historical
materialism, If we talk about the purpose of building material civilization
by departing from the basis of developing material production and regard
the development of spiritual civilization as the only final purpose, we will
consequently find ourselves falling into historical idealism.

A

But we cannot, therefore, consider that the only purpose of the progress of
mankind is to meet the needs of material life and develop material civiliza-
tion. Marxist historical materialism acknowledges the existence of society
and social consciousness, the mutual influence and mutual conditioning
between material life and spiritual life. And when it stresses the import-
ance of the decisive role of material production, it also pays attention to
the dynamic role of mankind and the dynamic role of people's spiritual
production. Social material production represents men's activities,
Productivity is also the Productivity of men and history is in fact the
history of mankind created by themselves. Men need both material life and
spiritual life. We can in no way talk about the role of material production

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ZHOU ENLAI'S LETTERS TO GUO MORUO BETWEEN 1942 and 1946
HKO30550 Beijing RENMIN RIBAO in Chinese 2 Mar 83 p2

[Text] Comrade Zhou Enlai's four letters to Comrade Guo Moruo between
March 1942 and December 1946:

A Letter to Comrade Guo Moruo Dated 7 March 1942:

Dear Moruo:

Have finished reading "Qu Yuan's Ideas" (footnote 1). It is very interest-
ing that you regard "rule by virtue" and "rule by law" as two major trends
of thought on social reform at that time. But a controversy may arise from {
that statement. That is, the former represents the reformists, while the
latter represents the revolutionists. Of course this argument is also based
on insufficient grounds because, in my opinion, China's feudal system was
finally completed in the Western Han Dynasty, and the reform was not finish-
ed until the revolution of Chen Sheng and Wu Guang or even Xiang Yu and

Liu Bang. Therefore, either "rule by virtue" or "rule by law" was but a
concept or practice during this period of transition from the slavery system |
to the feudal system and was a product of the times. I agree with you in
regarding Qu Yuan as a great thinker and an artist, but it is still open to
question to regard him as a revolutionary thinker. What do you think?

In the original text there was a literary quotation "Guan Shan Zhu Hai [7070
1472 3554 3189]." Was it a corrected version of "Guan Shan Fu Hai [1351 1472
1650 3189]" (footnote 2) by textual research? I thought [it] must be a slip

of the pen and have thus corrected it. Now I am writing to ask your opinion.

Your interpretations of the basic spirit of humanity and righteousness are

good. But I have taken the liberty to replace the Chinese character e
“kuai [1816]" in "what should be done must be done fast [gai zuo di jiu

kuai zuo 6115 0254 4104 1432 1816 0254]" with another Chinese character

"yao [6008]." I think this is more dialectical. I am not sure whether you

would agree with me?
The above was written in haste. I salute you!

Yours,

Zhou Enlai; 7 March ‘
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new ones. In handling problems related to love, marriage, childbirth and
other family matters, they should justly, forcefully and thoroughly

break away from all the traditional prejudices and customs of discrimination
against women and resolutely fight against any activity that encroaches on
the legitimate rights and interests of women and children, against the
corrosive attack of feudal and bourgeois ideology and against all kinds of
dark phenomena and hideous activities. We should uphold the banner of
women's liberation, liberate the broad ranks of women in our country from
the fetters of any outworn old ideology, custom and tradition and thus
really turn this banner into a mark of the progress and maturity of our
society.

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Our idea of "big" has another meaning. In the process of the socialization
of production, specialized trades will develop not only from different
branches of production but will develop from certain phases or links in the
process of the production of a product. Agriculture is not as centralized
as industry. The different phases or links spaced out in the process of
production can be relatively independent. With specialization, different
phases or links of work can be performed separately and independently by
different specialized laborers at different times. In production with the
household or work group as the unit, the producers can treat the whole
production process with a high sense..of responsibility as masters on the one
hand and can ask other specialized laborers to take care of certain links
of production that require different skills through various forms of com-
bination or coordination on the other. Moreover, we may adopt the method
of "contracted responsibilities," that is, linking technical services to
output, in this regard so that the labor remuneration of the specialized
workers can also be linked to output.

In this way, the scale of contracted production, particularly the size of
the contracted land, will not be restricted by the work force of a house-
hold but will be reasonable and capable of producing optimum results. For
this reason, the amount of marketable products they produce will not be
small and will be fairly large. The same is true for stock-breeding. With
specialization in certain links of production, the number of poultry or
animals raised by a specialized household, that is, the amount of marketable
products it can produce, will also be fairly large. As can be seen from
specialized households that have now emerged, intensified management has
been developed in some. There are cases in which a household is raising
over 100 pigs and several thousand fowl. From these we can see the
embryonic form of socialized agriculture.

Therefore, we can say that the combinations "separate" and "unified" manage-

ment and of "small" and "big" scale are the distinctive features of the
cooperative economy of China's socialist agriculture which is advancing
toward socialization and modernization.

The reform of the cooperative economy in China's countryside is based on the
scientific teachings of Marxism and conforms with China's national condition.
It will contribute toward the building of socialism with distinctive Chinese
features, the prosperity of the country and the well-being and happiness of
the people. It will also give a great stimulation and impetus to the re-
form of industry and other spheres. This creative reform which is carried
out in such a grand scale, which has such profound substance and which
embodies the wisdom of the masses is the new development of the Marxist
theory of the cooperative system in the practice in China.

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boundless universe from different angles and playing the role of recognition,
education and aesthetic appreciation, but because they have boldly touched
upon the important contradictions and struggles in reality which are of the
common concerned of the people and are beamed with intense militant spirits
of ‘the time, they are specially awakening and enlightening. They have
promoted the militant spirits of the reality of literature in a fair way.

Of course, the development of the different forms of literature in our country
in the past 2 years has been off balance. Work continues to surface with
mistakes and an unhealthy ideological tendency in its creation, and especially
when compared with the great number of advanced figures in real life who
emerge on different fronts such as the great "Pioneers," "Men of Action,"
"Men of Understanding” and "Capable Hands," etc., our literary work still

has a long way to go. Some writers tend to isolate themselves from life,

and avoid the conflicts of reality. They either turn their backs on reality,
indulge in expressing trivial matters and petty emotions or cover up the
shallowness of their thinking with novel forms, or even make up stories that
are odd and rare. There are still quite a number of such low-key works. The
broad mass of readers and audience are not content with this. Though this

is only a branch stream in the roaring spring tide of literature, it should
attract the attention of literature and art circles and be overcome through
criticism,

Literary works in the last 2 years have been able to march on the road of
development that is becoming healthier and healthier. Of course, this has
a great deal to do with the broad mass of literary workers, and it owes a
lot more to the loving care of the CPC and the party's policies on art and
literature that have brought order out chaos. First, under the leadership
of the party, the literary front has finally done away with all kinds of
incorrect and preposterous theoretical shackles imposed on it by the wrong
"leftist" tendency. It has initially realized what Lenin has said, "To ensure
a'vast area for individual creation and personal liking, a vast area that
has ideas and imaginations as well as forms and contents." ("Publications
of the party and the party organizations") Even though interference from the
"left" has not been completely eliminated, the mainstream of development in
literature after all has time and again prevailed over and got rid of this
interference. Second, with the education of the party, the literary circles
has come to see in the meantime the danger of bourgeois liberalization under
the new historical conditions. They are on guard against it and have made
necessary and fully convincing criticism against certain works and certain
creative tendencies. Since the fourth national representative conference
on literature, whether at forums about the creation of plays or at forums
about problems on the ideological front, the many speeches made by CPC
leaders have all shown the party's concern and living care for the broad
mass of artists. They are not only good at giving systematic guidance, re-
minding the artists of paying attention to overcoming the interference
coming from the "left" or the right, but have also taken full heed to
mobilizing their initiative and enthusiasm. We owe the development of
literature to the correct leadership of the party. Though there have been
branch streams the main stream has been full of vitality from beginning to
end.

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2. The status of the working class as wage slaves has not changed. Since
World War II, the material life of the working class in the developed
capitalist countries has indeed improved to some extent: their salary has
increased to some extent; durable consumer goods have increased; some
capitalist countries have implemented social welfare measures, such as un-
employment relief and social security, and they even recruit some workers in
the management of enterprises. However, wage workers are still wage workers
and capitalists are still capitalists. The demarcation line ‘between them
has not disappeared and they have not merged into one. Marx pointed out:

"A larger part of the workers’ surplus-product, always increasing and con-
tinually transformed into additional capital, comes back to them in the
shape of means of payment, so that they can extend the circle of their enjoy-
ments; can make some additions to their consumption-fund of clothes, furni-
ture, etc., and can put by small reserve-funds of money. But better clothing,
food and treatment, and a bigger wage do nothing to eliminate the exploita-
tion of the slave; and the same applies to the wage-worker. A rise in the
price of labor, as a consequence of accumulation of capital, only means, in
fact, that the length and weight of the golden chain the wage-worker has al-
ready forged for himself, allow for relaxation of its tension." ("Complete
Works of Marx and Engels," vol 23, pp 677-678) The situation today is still
the same. Let us set aside the high taxation, commodity prices and rent
which leave the workers little money after deducting various expenses from
their salary; and set aside the misfortune of being dismissed, which always
threatens the employed workers so that they live in fear; let us take, for
example, the fact that the livelihood of the workers has indeed attained
certain improvement. This has been achieved with the price of intensifying
the exploitation degree of the working class. From 1948-1977, the rate of
surplus value rose from 236.7 to 280.9 percent in the United States. From
1950-1975, the rate of surplus value rose from 181.4 to 260 percent in West
Germany. It is not hard to see that the contradiction between labor and
capital not only continues to exist but becomes more acute. This basic con-
tradiction is still the axis on which the entire social relations of
capitalism revolve. The working class will never be content with the status
of being wage slaves. They are still the grave diggers of capitalism and
founders of socialism and communism. Sooner or later, they will perform and
accomplish their historical mission. There is not the slightest doubt about
this.

3. The capitalist countries are in the grip of social crisis. Every capital-
ist country has its own insurmountable dark side and irremediable social
evils. Various ugly phenomena, such as putting profit-making first, bene-
fitting oneself at the expense of others, trying to do each other harm,
practicing the law of the jungle, lacking spiritual ballast, degenerating,
raping, looting and committing homicide, are common occurrences which emerge
one after another. In the capitalist countries, neither ordinary people nor
millionaires have a sense of security. These serious social problems are an
expression of the decadence and decline of the capitalist system. A profes-
sor of the Massachusetts College of Science and Engineering said: "Now, even

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As we have said, Marx held that labor combinations meant that the laborers
contributed their personal labor as a part of the total labor force of

the integrated body in the process of production and received remuneration
in proportion to the amount of labor contributed in the process of dis-
tribution. Distribution according to work is the continuation in the
sphere of distribution of this kind of exchange of labor at equal amounts
which started in the sphere of production. Therefore, in judging whether
a method of distribution is distribution according to work, we have to

see whether it conforms with the economic relations embodied in exchange
of labor at equal amounts. It makes no difference what concrete form or
method was adopted and whether the workpoint system was used. However,
many comrades among our ranks of cadres had long regarded concrete forms of
measurement such as workdays and workpoints as the hallmarks of the
socialist cooperative economy.

The elimination of these misunderstandings will contribute greatly to
broadening the road of our application of the socialist cooperative system.

3. A Great Creation by the Chinese Peasants

The defects of "doing things in a massive and unplanned way" and "everybody
eating from the same big pot" began to show toward the later period of the
cooperative transformation and became more and more obvious. In order to
overcome these defects, the masses of peasants and cadres started the
creative practice of reforming the mode of the collective economy at a very
early stage. Preliminary forms of the output-related contracting system,
such as fixing output quotas for each household, appeared but were not
universally popularized. The 3d Plenary Session of the 11th CPC Central
Committee reestablished the Marxist ideological line of seeking truth from
facts, broke down the shackles of "left" mistakes and opened up a road for:
the hundreds and millions of people to restructure the rural economy and
create new forms of the socialist cooperative economy.

In the past few years since the 3d plenary session, various forms of the
production responsibility system have emerged with an irresistible force.
After going through the stages of sifting, tempering, evolution and per-
fection, they have now taken deep roots in different trades and professions
in their typical forms throughout the rural areas.

The responsibility system created by the masses assumes a variety of forms.
However, as concrete forms of the relations of production, there are only
a few basic classifications, namely, contracts for specific jobs, contracts
for fixed output quotas, contracts for task completion, contracts for each
work group, contracts for each laborer and contracts for each household.

Contracts for specific jobs are not output related whereas contracts for
fixed output quotas and for task completion are output related. Output
related or not is a fairly essential distinction. The evolution from non-
output-related to output-related contracting means that the contracted
producer will now be responsible for the whole process of production and

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in the development of history by departing from the dynamic role of men and
the dynamic role of spiritual production, nor can we talk about the purpose
of socialist construction by departing from first of all the social libera-
tion and spiritual liberation of workers and the development of men's
material and spiritual life. A high standard of material civilization, a
high standard of spiritual civilization and the practice of democracy--the
unity of these three aspects is necessary for socialist construction and
none is indispensable. If we think that there is no other purpose than the
development of material production, and the development of people's
spiritual life and political life are nothing but means to serve the develop-
ment of material production and cannot themselves be our goals, as if as
soon as spiritual development is described as both a means and an end we are
violating the principle of historical materialism then we might be led to a
vulgarized understanding of historical materialism.

Marx said: "It is true that eating, drinking and sexual intercourse are real
functions. But if these functions depart from men's other activities and we
make them the final and only ultimate goals, then in this abstract they are
the function of animals." ("Collected Works of. Marx and Engels," vol 42, p 94)
People have to eat but the purpose of their existence is not to eat. Men
must not only become the masters of nature, but also the masters of society
and the masters of their own spiritual life. Mankind has the ability to
overcome nature and enrich its own material life; it has the ability to re-
form society and set up new type social system and social relations; it also
has the ability to overcome ignorance, barbarism and staleness and develop

a lofty, rich and constantly renewed spiritual life. The objective of
socialism and communism is to emancipate the whole of mankind from the
oppression and slavery of nature, society and its own spirit so that its
ability itself will be comprehensively and fully developed.

Facing idealism which was then in a dominant position, Marx and Engels parti-
cularly stressed that material life is the first premise for the existence
of mankind. But they never denied that men need spiritual life. In fact,
right from the beginning of the existence of mankind, there is a need for
spiritual life. As material needs are gradually met, the need for spiritual
development becomes more outstanding. Engels pointed out angrily that it
was only mediocre persons who regard materialism as filthy deeds such as
gluttony, excessive drinking, carnal desire, greed for money and avarice.
(Ibid, vol 4, p 228)

We can understand this question better when we have rcestudied Marx' exposition
of the real purpose of mankind from the view point of the relationship be-
tween freedom and necessity. Marx pointed out: "The realm of freedom begins
where the labor decided on by the rules of necessity and external purpose
ends, therefore according to the nature of things, it exists on the other
shore of the sector of true material production. Just like uncivilized

men who have to struggle against nature to meet their own needs and protect
and reproduce their own lives, civilized men have also to do the same and

they have to do so in all social forms and all possible production modes."

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sown with grain is stabilized, people will be able to open up more ways to
promote other trades by making full use of abundant natural resources such
as mountainous areas, hills, grasslands, water surfaces, coastal areas and
beaches. We will be able therefore to make the best use of topographical
advantages and let all things serve their proper purpose. This will not
only guarantee the increase of grain production but also develop diversi-
fication. Thus, the peasant will be able to get well-off at a quicker pace.

At present, the price ratio between some industrial crops and grain is un-
reasonable. Gains from growing grain are lower than from industrial crops.
This is the very reason peasants prefer to grow industrial crops. We

should seriously study this problem and try to solve it step by step. At

a time when the state is still unable to raise the purchase price of grain,
other adjustments in policies should be made, such as giving grain growers
special treatment in investment, loans, taxes and supply of materials for
construction and expansion of production. This will help the income of

grain growers get closer to that of industrial crop growers. When the system
of contracting responsibilities with payment linked to output is adapted

to the collective economy, and when basic requirements are made for imple-
menting contracts, attention must be paid to making the pay between different
trades more or less the same. There should not be a wide gap in the pay
between households growing only grain and those growing industrial crops.
Meanwhile, we should conduct more political and ideological education among
rural cadres and commune members by explaining to them the general situation
of the nation's grain production and teaching them to take the situation as

a whole into account and work consciously for fulfilling the state plans in
grain production. The masses must be taught that their interests are closely
linked with the state's, and that they should not arrange their production
without regard for the overall interests of the state. Judging from the
current trend of grain production, we believe so long as we observe policies
well and work successfully, the area sown with grain can certainly be kept

stable.

The following are some figures concerning grain production in China from
1978 to 1981:

Year Area sown with Percentage Total grain Unit Production Percentage
grain--l unit of total production produc- per capita of state
equals 10,000 mu area sown -~1 unit tion --jin purchase

equals 100 jin/mu of total
million jin production

1978 180,000 units 80.3 6,095.3 337 640 14.0

1979 178,894 \ 80.3 6,642.3 371 689 15.6

1980 175,851, 80.1 6,411.1 365 656 15.0

1981 172,437 79.2 6,500.4 377 657 14.9

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Since the third plenary session, our party has achieved the shift of the
focus of our work, has implemented the guiding principle of "readjustment,
reform, rectification, improvement," has corrected the guiding ideology
governing economic work, has implemented agricultural responsibility

systems whereby contracts are based on output and systems of responsibility
for operation for industrial and commercial enterprises and has reformed our
economic management system. Our party has persisted in the economic policies
of relying on the leading role of the state sector of the economy while
developing diversified forms of economy,’ relying principally on the planned
economy with regulation by market mechanism as a subsidiary measure, and
enlivening our domestic economy while opening our country to foreign trade.
Our party has been resolutely controlling population growth, and so on.

All these things have been done for one purpose, namely, to build a social-
ist modern economy with Chinese characteristics. After several years of
practice, we have acquired a much more profound understanding of China's
basic national conditions and characteristics and of the laws governing
socialist economic construction in our country. We have greatly enriched
our experience. Our party has gradually established a correct path of
socialist modernization construction which is suited to our country's
conditions. This path will continue to develop and to be perfected in
practice. However, its main points have been basically summed up in the
important documents issued since the third plenary session of the CPC Central
Committee.

Of course, we must note that concerning the question of building a socialist
modern economy with Chinese characteristics, there are still Many realms of
necessity which we need to understand; what we have preliminarily understood
must be continually tested by practice and must be understood to a greater
depth with the development of practice. However, the path has been opened
up, and the most important thing is that we are under the firm leadership

of the CPC Central Committee and we have an ideological line marked by
proceeding from actual conditions and seeking truth from facts. Therefore,
if we continue to sum up experience and carry out exploration, we will
certainly be able to achieve our Chinese-style socialist modernization and
to attain the goal of our endeavor to quadruple our annual total value of
industrial and agricultural output by the end of this century.

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production, the proportion of consumption in the GNP may not be increased
while the accumulation rate may remain unchanged. But the situation is
relatively complicated when trying to realize the second supposition.
Within a certain sphere and limit, the expansion of extensive reproduction
may maintain the efficiency of investment. But if we do not consider the
factor of the development of science and technology and merely rely on the
extensive expansion of reproduction, certain limiting factors (such as land
and resources) will display their roles to a certain extent and the effi-
ciency of investment will naturally drop.

But this is where the question lies. When we are analyzing the relationship
between the base figure and speed, we must consider the important factor of
the development of science and technology. As technical reforms, technical
innovations and even technical revolution improve in a big way the labor
productivity and the utility rate of resources, there will certainly emerge
new productivity. In this way, the newly added fixed assets and fund (used
by new enterprises in new technology and by old enterprises in carrying out
technical reform) that are used in investment will result in much greater
achievements. That is, the factors in science and technology advancements
and management advancements will not only maintain the efficiency of invest-
ments but will also improve the efficiency in a big way so that there will
appear an "increased base figure with higher speed" in the relationship
between the base figure and speed.

This has been proved in history by the development of social production by
man. The article by Comrade Sun Yefang said: People have made rough cal-
culations on technical advancements of man and the production development
rate. The rate of the technical advance in the stone age improved by an
average of about 1-2 percent every 10,000 years; in the iron age, the
growth of labor productivity that reflected technical advance improved on
the average by less than [no figure] percent every 100 years; in the era of
steam and electricity, the labor productivity of industrial laborers in the
United States annually grew by an average of 1.5-3 percent from 1870 to
1949. As technical advances developed more quickly, industry also developed
more quickly. Between 1700 and 1780, Britain's industrial output value
grew on the average by 0.9 percent every year and increased to 2.2-2.5 per-
cent between 1781 and 1917. If we investigate the relationship between the
base figure and speed from a historical viewpoint, we can see that the
general trend of development is that the relationship between the two are
“with bigger base figure the speed will be higher.”

In his "Program of Criticism of Political Economics" Engels analyzed the
population theory by Mathus and pointed out that according to this theory
the population was increasing proportionately while land productivity was
increasing at a different rate and consequently he pointed out: We can
presume that the acreage of cultivated land is limited. But the labor
productivity used in this acreage will increase following the increase of
population; if the presumed achievements do not always increase propor-
tionately with the volume of the labor spent, we still have a third factor-~
science, Advances in science are similar to population growth, that is,
there is no end; at least advances are as quick as population growth. In

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power bureau, Fu Lian-shan in the novelette "Trouble Arises Within the
Family," young people like Xiajing, Liu Sijia in "Red, Orange, Yellow,
Green, Indigo, Blue and Purple," intellectuals Xin Qiming, Lizhen in "The
Soil," etc. They have left a deep impression on the readers' mind with
their striking characters who bear the characteristics of the time. ‘The
Night at the Swallow Nest" (written by Wei Jiwing) and "Wreath Under a

High Mountain" (written by Li Chunbao) should be specially mentioned here.
The former writes the moving story of a few dozen female workers who are
united and militant. They defend an oil depot, and fight to keep an oil
deluge from endangering the city. The story puts the emphasis on depicting
the real images of Lin Qiuyue and five other red women. These young female
workers have met with different experiences, each bearing in her heart
different traumas, aspirations, sorrows and weaknesses and each totally
different in character, yet at an urgent moment when the people's interests
are in danger they put aside their own sorrows and plunge selflessly into
battle. Their thinking shines with the brilliance of precious gems, The
latter depicts a group of heroic images such as Liang Sanxi who emerges

in the self-defense and counterattack battle on the Sino-Vietnamese frontier.
The novel merges the life on the front with the life on the rear. It also
interweaves life in the army units with life in society. It sings the soul-
stirring praises of the heroic fighters and the heroic people who lay down
their lives for the country. We can say that the mainstream of literary
works in the last 2 years is appraising and seeking the meaning of life from
the height of a progressive world outlook of the time, correctly handling
the relationship between eulogizing the bright side and exposing the dark
side. In depicting artistic images, it has done a fairly good job in uniting
the striking revolutionary tendency with vivid artistic reality. In depict-
ing heroes of different historical periods and images of socialist new
peoples, special attention has been paid to exploring the beauty of their
hearts and their lofty moral character and ideological values in an out-
standing way, so as to arouse people's enthusiasm in joining in the socialist
construction of material and spiritual civilization...and these are the
special features that should be fully affirmed.

Second, new ideas have been constantly brought forth in the forms and styles
of literature. More and more writers have attached importance to maintaining
and developing national characteristics. Since the 3d Plenary Session of the
llth CPC National Congress, the idea of bringing forth a new trend in forms
and styles has engulfed the various spheres of the forms of literature.
Though there have been works ignoring the national tradition and blindly
imitating modern Western works, writers who investig.te into the reality of
life have been trying their best to subject whatever forms and styles they
in the contents of their works, that is, to manifest the change in life, habit,
characters, state of mind and ideological accomplishment of our nation in her
journey to the four modernizations. Writers have become more and more aware
of the fact that if we want our literature to find its way into the world, we
must implement the principle of "making foreign things serve China and making
the past serve the present," and "letting a hundred flowers blossom, weeding
through the old to bring forth the new," and create new features of our own

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IL

In order to achieve modernization of our national defense, our first task
is to develop and produce sophisticated military equipment. This work
demands the comprehensive application of all modern science and technology
and involves very complicated systems engineering. Moreover, in the pro-
cess of developing and producing the equipment, we should also have a
series of means to experiment, production equipment and many kinds of new

' materials and technology. Solution to these problems involves the vast
involvement of science and technology--including almost all its fields
such as basic theory, technological science and, to a very great extent,

, applied technology and engineering technology. We can say that any progress
made in this work closely depends on modern science and technology and that
without these we can never make any progress or achieve anything in this
work. It is precisely because of this that in 1956, when the CPC Central
Committee formulated the 12-year plan for scientific and technical develop-
ment, Comrades Zhaou Enlai and Nie Rongzhen time and again pointed out that
tn modernizing our national defense we should adhere to the principle of
giving priority to science and technology. For more than 20 years since
then we have always adhered to this correct principle and achieved abundant
results.

i Our country is a big country and it is not realistic or possible for us to

' buy national defense modernization from abroad. We must soberly see that
what can be bought from foreign countries will at most be things which are

| advanced to the second grade. This cannot help us attain the goal of

\ national defense modernization, nor will it help us shake off the passive
state of being controlled by others. Depending on modeling one's weaponry
on others is not a way of realizing national defense modernization either.
At the outset it is necessary to obtain some technology that can be imported
and model some weaponry on that of others. However, if we are content with
copying, we will only be crawling behind others and still be unable to
attain our anticipated goal. The fundamental way is to rely on ourselves.
We Chinese people have the aspiration, abilities and enthusiasm to modernize
our national defense through developing modern military equipment by rely-
ing on our own scientific and technological strength. At the same time,
since our country has a vast territory, a long border and complicated geo-
graphic and weather conditions, only be developing--through self-reliance
and in a realistic light--sophisticated military equipment that can be
adapted to various conditions can we satisfy our army's needs in its wars
against aggression.

|
|

From the process of our country's development of strategic nuclear weapons,
we can see that only by adhering to the principle of practicing self-
reliance and giving priority to science and technology can we establish

| our own modern national defense. It was in 1958 that we began to develop

i our country's strategic nuclear weapons. From the very beginning, Comrade
Nie Rongzhen insisted that the broad ranks of scientific and technical
personnel should know not only "how" but also "why." Therefore, we

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which takes all of them into account and which provides for a satisfactory
regulation. To enliven the economy, we must correctly understand and
handle the relationship between the planned economy and regulation by mar-
ket mechanism. In March 1979, when Comrade Chen Yun once again took

charge of the financial and economic commission, he put forth this

question for the first time. In his article entitled "Questions of Planning
and the Market," he says: "In the entire ["entire" is underscored]

period of socialism, the economy must consist of two parts: 1) the planned
economy (that part of the economy subject to planned proportionate develop-
ment); and 2) that part of the economy subject to regulation by market
mechanism (that part which is not subject to planning, which carries out
production according to changing market demand and supply, and which incor-
porates "blind" regulation). The first part is the basic and principal
part of the economy. The second part is subordinate to the first, is of
subsidiary importance, but is necessary. 3) the administrative organs and
the enterprises have carried out division of labor. The enterprises’
decisionmaking power has been expanded. Moreover, the results of operation
of the enterprises are linked to the workers' material benefits. Systems

of assessment, penalty and award, promotion and demotion, and so on, have
been conscientiously practiced. Over the past several years, experimenta-
tion in expanding decisionmaking power has been conducted in over 6,000
enterprises; various systems of responsibility for operation, such as retain-
ing part of profits, enterprises managing their own funds, substitution of
profits by taxation, assuming full responsibility for task completion to
earn profits, and so on, as well as the system of personal responsibility of
workers, have been implemented on an overall scale in industrial and commer-
cial enterprises; and by administrative and economic means, egalitarianism
in distribution among the enterprises and among workers of each enterprise
has been gradually eliminated. 4) according to the principle of unified
leadership and undertaking of management by various levels, the jurisdiction
of the central authorities and local authorities is clearly defined. The
administrative structure is simplified, so that the economy can be more
satisfactorily managed by using economic means, and the partitioning of the
economy by various localities and departments can be eliminated. According
to the requirements of cooperation among specialized units and in light

of the needs of production, various forms of economic integration have been
developed and enterprises have been rationally organized. The cities

whose economy is relatively highly developed are taken as centers which
give impetus to the development of the countryside, and on this basis pro-
duction and circulation are organized in a centralized way. There are also
other areas of reform. Practice has proved that the orientation of our re-
form is correct, its results are good, and it has played a powerful role

in enlivening the economy and enhancing economic benefits. The current
economic situation is very good. An important reason is that the enthusiasm
of the departments, the localities, the enterprises and the workers has been
mobilized through our reform.

/When we study the fifth main point, we can pay special attention to under-
standing: first, why we must open our country to foreign trade; and second,

what questions require special attention if our country is opened to foreign
trade./

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organized the scientific and technological forces of our national defense
scientific and technological units, the Academy of Sciences, industrial
departments and higher education institutions and forces of all our pro~
vinces, municipalities and autonomous regions to divide up their tasks and
cooperate with one another according to their existing conditions and
advantages, giving play to their strong points. In this way we have
thoroughly researched and experimented on general design and structure as
well as on all components, parts and raw materials of the weapons. We
worked hard and learned from the experiences of other people. Finally,
through years of hard struggle, we succeeded in 1964 in testing the first
atomic bomb and the first medium and short-range guided missile, which
were designed and made by our country on our own. Then we made progress
step by step, systematically, and after solving a series of key technical
problems we launched our first medium-range lang-to-land missile in 1966;
exploded an H-bomb in 1967; launched a medium and long-range land-to-land
missile in 1969, our first satellite in 1970, long-range land-to-land
carrier rockets in the South Pacific area in 1980 and three satellites with
one carrier rocket in 1981; and test-launched a carrier rocket from
underwater using a submarine in 1982. All these tests--from the use of
liquid fuel to the use of solid fuel, from launching from land bases to
mobile launching underwater, the mastery of the technology of recovery
satellites and so on--have been realized through our independent research,
and all of them are new breakthroughs in China's national defense science
and technology. We should also point out that during that period, 10 years
of civil disorder occurred. If this had not happened we would have scored
greater and more achievements in developing regular weapons as well as
strategic ones.

IIL

Our country's national defense construction has been carried out in a planned
and systematic manner under the unified leadership of the state and on the
basis of our country's economic construction. This is a basic experience
that we have gained in modernizing our national defense. It is also an
objective law that we must observe,

The building of national defense must be thrust into the orbit of the
country's planned economy, it must be carried out according to our ability
and progress steadily, maintaining a rational proportion. If the propor-
tion of spending on national defense is too small and we miss our oppor-
tunity, we will be put in a passive role if an unexpected event occurs and
our losses will be inestimable. If we go beyond the limits permitted by
our country's economy and are overanxious for quick success, the result
will be "more haste, less speed." In his "On the Ten Relationships,"

Comrade Mao Zedong said: "Only when we quicken the development of our
economic construction can we achieve greater progress in the construction
of our national defense." This is a law we should never violate.

Every year the state allocates a certain percentage of its revenue to the
construction of our national defense, but the amount of these allocated
funds is not fixed. It varies according to needs stemming from the

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state, many party members have taken up leading posts and held certain
power in different stations. Under this condition, most of the party mem-
bers are able to set a strict demand on themselves, honestly perform their
duties and wholeheartedly serve the people. However, some of the comrades
have also wrongly placed their own position in relation to the masses be-
cause of a change of status. Although they are in leading posts, they are
unwilling to go among the masses. They do not listen to the voice of the
masses and neither show concern for their sufferings nor help them elimi-
nate worries or solve problems. They do not understand what the masses
are thinking about and do not know the demands of the masses. They even
regard their rightful duties as public servants to the masses as the
masses demand favors from them and create "trouble" for them. Therefore,
they are perfunctory in performing their duties, shift responsibilities
and are sluggish in carrying out work. Even more serious is the fact that
some of the party members have combined inflated individualism with power
and made use of their position and power to seek personal gain. They
regard personal and small family interests above everything else, and for
this reason, do not hesitate to damage the interests of the masses. This
is an outstanding problem of becoming separated from the masses and damag-
ing the prestige of the party which has appeared among some of our party
members at present.

We should soberly understand that in a socialist country where the people
are the masters, the higher our position and the greater our authority,
the more should be our responsibility toward the people. Whether or not
the people really support you is not determined by the extent of your
authority, but by whether or not you represent the interests*of the people,
share the thought of the masses, show concern for the anxieties of the
masses and bring benefit to the people. Outstanding party member

Zhao Chune is only a common worker, but because she wholeheartedly works
for the interests of the masses, she has been able to make extraordinary
contributions at an ordinary post and to gain the esteem of the masses.
If all the party members, especially the leading cadres in authority, can
conscientiously fulfill their duties at their respective stations, con-
stantly think of the masses and also do things on their behalf in the
manner of Comrade Zhao Chune, they will be able to bring more benefit to
the people and the fine influence of the party among the masses will also
be more extensive and profound. But if they cannot properly place, or
even revert their own position in relation to the masses and refuse to
change the mentality and behavior of bureaucratism, use their position and
power to seek personal gain and seriously damage the interests of the
masses, they not only will damage the prestige of the party but will also
lose the trust of the people. When the people discover a certain party
cadre can no longer represent their interests, they will take back the
power conferred.

The masses are the makers of the material and spiritual wealth in society,
and a decisive force in social reform. Only if we ideologically attach
importance to the historical role of the masses and firmly believe that the
Masses are the source of wisdom and strength of the party and the motive
force for making a success of all our work and pushing forward our cause

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The growth in labor productivity produced a huge surplus of labor in the
rural areas. In many places, surplus labor accounted for one-third or even
half of the total labor force. On the other hand, it brought about a big
increase in the output of agricultural products and in peasants’ income.
Between 1979 and 1981, the per capita income of the agricultural population
from collective distribution increased by 31.3 per cent. If income from
household sideline undertakings was also taken into consideration, the
increase was even bigger. Due to the increase in income, the peasants now
have surplus cash in their hands.

When the producers have enthusiasm and are free from restrictions, they will
be willing to put their surplus labor and surplus cash into production and
develop diversified undertakings. This will give a great impetus to the
development of specialization, division of labor and commodity production.
In 1981, the average amount of commodities furnished by each member of the
agricultural population was 67.8 per cent greater than in 1978. The in-
crease attained in these 3 years nearly equalled that attained in the

20 years before 1978. The rate of growth in the percentage of marketable
products was even faster. Chuxian Prefecture in Anhui Province attained a
percentage of marketable grain of 20.4 in 1980 and 30 in 1981.

The momentum of such a swift development of commodity production in the rural
areas signifies the distintegration of the traditional self-sufficient or
semi-self-sufficient mode of production and the rise of a modern mode of
socialized commodity production. This historic change not only will alter
the appearance of the countryside but will produce a great impact on the
national economy and on social life as a whole.

The flourishing commodity production in China's countryside is socialist
commodity production based on the cooperative system,

Commodity production is a mode of production. When we call it a mode of pro-
duction, we are referring to its general properties, that is, the common
characteristics behind its various forms. In other words, in division of
labor in society, thousands upon thousands of producers who enjoy a fairly
high degree of independence live in interdependence through the exchange of
products from labor and form the production organism of society. The
economic activities of different producers are judged by essential labor
in society with a view to helping them reduce consumption and meet social
needs. Commodity production is at the same time a relation of production.
When we call it a relation of production, we are referring to its special
forms, such as commodity production by individual laborers, commodity
production by wage labor and commodity production by combined labor.
Commodity production in everyday life possesses the general properties and
certain special forms of commodity production at the same time. When we
set commodity production and self-sufficient production, that is, the
natural economy, against each other, we are talking about the mode or gen-
eral properties of commodity production. When we compare one form of
commodity production with another, say compare commodity production by com-
bined labor with commodity production by wage labor, we are talking about
different relations of commodity production, that is, socialism and
capitalism. .

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plays an important part in a steady increase in total grain output. From
a long-term point of view, agricultural production is bound to follow the
road of collectivization. However, it is unlikely that a speedy rise in
the yield per unit area can be anticipated unless there is a significant
scientific breakthrough. In order to guarantee a continuous rise in total
grain output, it is absolutely necessary to keep the present area sown
with grain stable. We must be aware that the limited area of arable land
in China is disadvantageous to grain production. At present, there is
only a little more than 1 mu of arable land per capita in China, the low-
est level in the world. After the liberation, an extensive area pre-
viously sown with grain was fenced off for the development of industry,
communications, economic construction and housing. In the recent read-
justment in the structure of agriculture, some farmland unfavorable for
grain production was turned over to diversified development. Generally
speaking, such readjustment is right and necessary for the overall develop-
ment of agriculture in our country. But a number of local authorities,
considering only their own profit while neglecting the overall interests
of the nation, grew too many profitable industrial crops on land suitable
for grain. As a result, acreage sown for industrial crops such as cured
tobacco, rapeseed and hemp increased rapidly every year, and consequently
large pieces of farmland suitable for grain were fenced off. This situa-
tion has been improved to a certain extent since last winter, but we
should still pay close attention to it. The principle of "actively pro-
moting diversification without any relaxation of grain production" should
be taken as our consistent policy. In implementing the principle, we
should neither take a one-sided approach nor set the two aspects against
each other--once stress is placed on grain production, diversification will
be neglected and once diversification is promoted, grain production will be
relaxed. Not only should we increase the output of grain on the limited
arable land to solve the problem of food, but we also should grow more
industrial crops and promote diversification to meet people's needs. In
planning agricultural production, we should proceed from the actual situa-
tion, make overall plans and take all factors into consideration. One
should not be overemphasized at the expense of the other. From now on, all
areas, except those which specialize in livestock husbandry, forestry,
fishery and industrial crops, should make full use of all farmland suitable
for grain. Priority must be given to grain production on land suitable for
both grain and industrial crops. Meanwhile, preference must be given to
using sandy, alkaline and sloping land for industrial crops, livestock
breeding or afforestation, even where it is now being used for grain. This
should be regarded as an important guideline for a.l of us.

Stabilizing the area sown with grain is actually conducive to the develop-
ment of diversification. First of all, only when there is a steady in-
crease in grain production, will it be possible to ensure the grain ration

of personnel who engage in diversification, to supply adequate raw materials

to the foodstuff industry as well as to the fodder industry. Second, only
when land suitable for grain is fully used and an increase in the total
grain output is ensured, will it be possible to turn over more land not
suitable for grain to the overall development of diversification--forestry,
animal husbandry, sideline production and fishery. Third, when the area

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nation, so that our artistic forms and styles can powerfully express the

life and the thinking and the experiences of our nation, which is now
undergoing a great historical transformation. Poems of Aiqing, Gongliu and
Shao Yenxiang are like this. So are the two novels which have won the
"Maodun Literature Prize," "The Spring in the Winter" and "The Furong Town."
The former drew on the technique of expression of Western novels inter-
weaving reminiscences with reality, and reflecting the contemporary life

of our country in a deep and extensive way. The latter depicts the histori-
cal changes of the socialist countryside in Xiangnan. It has [word
indistinct] the narrative technique of our country's traditional novels,
which is richer in provincial flavor and color. As for Zhang Yigong and

Kao Xiaosheng, who write mostly about the countryside, and Jiang Zilong and
Deng Youmei, who write mostly about the cities, their unique styles are all
distinctly stamped with national flavor. All forms of Western modernism

as a literary phenomenon is the outcome under bourgeois historical conditions.
It is wrong to negate national tradition and blindly imitate Western modern-
ism. However, it will surely win apparent approval if we reject its idealis-~
tic philosophy and artistic viewpoints, and make appropriate use of certain
techniques of theirs so as to enrich our literature and arts.

Third, owing to the breadth and depth of the reality of literature that is
being reflected, it keeps on playing an influential socialist and militant
role. In the past 2 years, quite a great number of writers have firmly
adhered to the pulse of history, have been loyal to the voice of the people
and have keenly reflected the grave contradictions of society commonly of
concern by the people. They lash the conservative and backward influence of
life with their outstanding militant stand. They also support reformers who
give impetus to the progress of history, for example, in his series of works,
Jiang Zilong has created numerous images of new people with striking charac-
ters for his family of "pioneers." They stand against the adverse storms
and fight against the torrential waves. At the same time, he makes vivid
portraits of negative figures of all kinds, who prevent the progress of the
four modernizations. In his recent work "The Symphony of Pans, Bowls and
Ladles," he has written about a young restaurant manager, Niuhong, who
bravely carries out creative reforms. The restaurant quickly makes up its
deficit and then makes a profit, taking on a new look, yet in the end he is
dismissed by the good-for-nothing company manager Youkang. The novel develops
round the struggle between dismissing Niuhong and restoring him to his post.
It has not only voiced the call that service trades should be reformed, but
has penetratingly manifested the truth that there is struggle in every step
forward in life. Zhang Yigong, who wrote "The Story of Criminal Li Tongzhong,"
and "The Will of Zhao Jue Tou," is a writer who never runs away from the
great contradictions and conflicts in reality. Last year he published "The
Crying Red Candle," putting forward in a timely manner an issue of general
significance, that is, after the upgrade of material life in the countryside,
there is an urgent need to promote socialist spiritual civilization. The
long novels ''The Heavy-Laden Wings" and "The Reformers," the play "Who Is
the Strongman?" and films like "Neighbors" and "The Contemporaries" have all
reflected from different angles some essential aspects of a certain time.
They are not only like the other works which are colorful, reflecting the

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CONTENTS (Continued)

"HONGQI' Views Economic Development, Base Figure (pp 47-48)

(Gong Ming)....... ve verereseere 84
"HONGQL' To Publish Book of Articles on Marx (p 48)

(Hong Chu). sc cececccceccvceccceeee cesses recesses e ter enenesenenee wee 87
"HONGQI' Discusses How To Write Good Articles (p 49)

(Huang Weiting).........e0% acecccenencoees deere eseseoenvevceee weee 88

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display their ability in family industrial and sideline undertakings, di-
versified undertakings, rural commercial business, service trades and
medical, cultural and educational undertakings. A large number of facts
have already proved that in rural areas at present, women's income from
their labor constitutes an increasingly greater part in family income and
the income of some women already exceeds that of the men in their
families. As for urban areas, female staff and workers do not get less
pay than male ones for the same posts. We should be particularly aware
that along with the continuous development of science and technology, more
and more heavy manual labor will be replaced by mechanized and automatic
labor and the degree of the combination between manual and mental labor
will rise increasingly. As a result, educated women will enter into more
and more fields of labor. Therefore, we have every reason to eliminate
the apprehension that one will have no one to support when one is old

if one only gives birth to a girl.

We should particularly point out that the key to the solution of the prob-
lem of "acquiring a guarantee of support when one is old" lies in satis-
factorily building up the country and the socialist material and spiritual
civlizations. When the country has become prosperous and there is abundant
material wealth in our society and a fine general mood, old people will be
respected everywhere and will be able to enjoy greater social welfare. As
for the question of whether children will respect and support parents,

the answer has nothing to do with the sex of the children. True, in the
society at present, particularly in rural areas, there are some women who
do not support their old parents because of the old tradition and custom,
but there are also men who, with various excuses, refuse to support or
even maltreat their own parents. Therefore, the problem does not lie in
whether it is a male or a female who refuses support but in the lack of
morality and sense of law of the young people. Therefore, we should
conscientiously carry out the policy of planned parenthood and bring up

and educate our children in a satisfactory manner no matter if they are
male or female. We should educate youngsters in the family in good coordi-
nation with schools and society and strive to train them to become laborers
who have ideals and morality and are well-educated and disciplined. Thus
our children will be able to loyally perform their duties in supporting
their parents and elders while making contributions to the society.

In order to overcome the ideas and actions that regard men as being superior
to women, we should make efforts in various fields. At present, we should
place emphasis on strengthening the education in the socialist legal system
and use the law as a weapon to protect the legitimate rights and interests
of women and children. Turning a blind eye to the illegal activities of
killing and abandoning female babies and of maltreating and harming women
who have given birth to girls on the excuse that these activities are
"family quarrels" and that "even an upright official finds it difficult to
settle a family quarrel" is very wrong. If the things are related to the
legitimate rights and interests of women, we must have the courage to pay
attention to and handle them. We must promptly criticize those who must

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The idea of regarding women as being inferior to men took shape along

with the emergence of private property and the slave system in human his-
tory. This social idea, as a foundation of the exploitation system, was
used, for a long time, by the slaveowner class and landlord class to safe-
guard the heriditary system and to cruelly oppress and exploit women and
the broad masses of laboring people. In its revolutionary period, the
bourgeois class fiercely attacked this idea, but because it only wanted to
substitute another form of exploitation system, it could not carry out this
struggle to the very end. Things are completely different with a pro-
letarian revolution. The proletariat always links the liberation of women
closely with the liberation cause of its own and with that of all the human
race. As Marx pointed out: "Social progress can be accurately measured

by the social position of the female sex (including those of the sex who
are plain)." ("Collected Works of Marx and Engels," Vol 32, p 571) The
proletariat should not only conscientiously rouse women to carry out and
support their liberation struggle during the process of seizing the
political power by the proletariat. Moreover, when the proletariat has
obtained the political power and set up a socialist system, it must make
even fuller use of the material and spiritual conditions it has already
acquired and continue to make steadfast efforts to further liberate women.
Therefore, we should never allow any idea or act that discriminates against
women and hinders the liberation of women to spread and develop in our
socialist system.

We should know that in our times it is completely wrong to think that only
aman is able to carry on the family line and that a family will be heirless
if it has only girls and no boys. Like boys, girls are also given birth

to by married couples and are undoubtedly the descendants of those couples.

A child, whether male or female, no matter whether he or she has the father's
or the mother's name, or whether he or she adopts the name of another family,
is in fact and in law a descendant of both the parents. When a person is
grown up and married, the couple can live in the family of one person's
parents, in the family of the parents of the other of the couple or set up

a new family, no matter whether the person is male or female. This will by
no means affect the person's position as a descendant of the person's

parents and the children of the couple will all the same be the descendants
of the parents of both of the couple. The outworn prejudice that regards
only men as "descendants" is nothing but a remnant of the feudal patriarchal
clan system and ethics left over by the old society.

We must furthermore know that giving birth to girls, like giving birth to
boys, is necessary for the propagation of human race. Since the very
beginning of the world, there have been both the male and female sexes.

If there is only the male sex and no female sex or vice versa, the human
race will become extinct. Whenever there is human race, a rough balance
of the sexes must be maintained in a natural manner. Only in this way can
the human race propagate and human society develop. If all people regard
men as being superior to women and desire to give birth to boys and abandon
girls, they will certainly undermine the natural balance of sex. According
to the investigation of relevant departments, in some rural brigades the
malpractice of killing and abandoning female babies has been so serious

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"HONGQI' REVIEWS ECONOMIC MODERNIZATION DOCUMENTS
HKO50857 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 40-45

[Article by the editorial office of theoretical education: "Outlines for
Studying Important Documents Issued Since the Third Plenary Session:

4. Shift the Focus, Build up the Socialist Modern Economy"~~passages
within slantlines published in boldface]

[Text] 4. Shift the Focus, Build up the Socialist Economy

The most prominent changes in economic construction since the 3d Plenary
Session of the CPC Central Committee are a change in the focus of our
work, the correction of the "leftist" guiding ideology, and the imple-
mentation of the guiding principle of "readjustment, reform, rectifica-
tion, improvement." As a result of these changes, the entire socialist :
economy has embarked on a path of steady development which is character-

ized by taking measures suited to our national conditions, advancing step

by step and paying attention to actual results. The documents include

an enormous amount of discussion on this question. When we study them,

we can pay special attention to Comrade Deng Xiaoping's articles: "Free

Ourselves From Old Ideas, Seek Truth From Facts, Get United and Look For-

ward," and "The Current Situation and Our Current Tasks"; Comrade Chen Yun's

articles: "Questions of Planning and the Market," "Readjust Our National

Economy, Adhere to Proportionate Development," “The Economic Situation

and Lessons Learned From Experience," "Several Ideas About Economic Work"

and "Strengthen the Planned Economy"; Comrade Li Xiannian's article:

"Speech at the CPC Central Committee Work Conference"; Comrade Hu Yaobang's

article: "On Questions of External Economic Relationships"; Comrade

Zhao Ziyang's articles: "The Current Economic Situ’ cion and Guiding

Principles Concerning Future Economic Construction," and "Several Questions

Concerning Current Economic Work"; the relevant parts of the CPC Central

Committee's "Resolutions on Certain Historical Questions on Our Party

Since the Founding of the PRC"; as well as the "Summary of the National

Conference on Rural Work" which was commented on and passed by the CPC

Central Committee. When we study this special topic, we should master the

following six main points:

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striving to solve these problems and building socialism with Chinese charac-
teristics is the greatest achievement that we have scored in our practice
and in the theoretical field during the past few years.

Today, our country has already entered. a new historical period. Comrade

Hu Yaobang pointed out: In the new period, we must fix in the minds of

all the comrades in our party the tremendously significant guiding idea
that it is still necessary to carry out reform in a socialist society.

At the present stage, our most fundamental task is to build, through all-
round resolute and systematic reform, socialism with Chinese characteristics
in order to make our country prosperous and our people rich and happy.
Undoubtedly, as long as we continue to forge ahead along the path of adher-
ing to and developing Marxism, we will surely be able to fulfill this task.
Revolutionary people the world over have placed great hope on us and we have
the responsibility and duty not to disappoint them. Let us hold up the
banner of Marxism, conscientiously implement the line, principles and
policies formulated by the 12th Party Congress and build our country into a
high civilized and highly democratic modern socialist country as soon as
possible. This will be the best way for us to commemorate Marx.

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"HONGQI' ON STABLING GRAIN ACREAGE
HK290917 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 32-33

[Article by Jing Ping [2529 1627]: "It Is Necessary To Stabilize the
Acreage Sown With Grain"]

[Text] The problem of food has always been a matter of prime importance
for China, which has a large population and insufficient arable land. In
order to ensure a continuous rise in grain output, the area sown with
grain must be kept at a certain level.

Since the 3d Plenary Session of the 1lth CPC Central Committee, a series
of reforms, in particular the system of contracting responsibilities with
payment linked to output have been carried out in the rural areas of our
country. This has promoted the full-scale development of agriculture and
greatly raised grain production. Nevertheless, we must be clear about the
fact that grain production in China is now unable to meet the people's
needs and the requirements of economic construction. There are still
certain contradictions between production and demand.

Grain output in China is unstable, owing to poor conditions and low produc-
tivity. The amount of grain produced for the market is only 15 percent of
total production and the annual per capita grain consumption is a little
more than 600 jin, much lower than that of agriculturally developed
countries. With the growth of population and the development of the four
modernizations, the amount of grain needed will be increasing continuously.
China now has a population of 1 billion, which will rise to 1.2 billion,
assuming successful population control efforts are made. Meanwhile, the
amount of grain needed will also be increasing, owing to the growth of
industrial production, the flourishing of agriculture itself, the develop-
ment of diversified undertakings, especially animal husbandry, as well as
the improvement of people's livelihood. Based on an estimate of 800 jin
as the annual per capita grain consumption for a population of 1.2 billion,
the total annual output of grain should rise to 960 billion jin by the end
of the century. This requires an increase of 310 billion jin of grain
over 1981, or an average annual increase of more than 1.6 billion jin. It
is indeed a very difficult task.

To iron out contradictions between grain production and demand, what is
most important is that we must rely on correct policies and science, carry
out reforms of agricultural systems and technical transformation and in-
crease the yield per unit area. Apart from this, a guaranteed sown area

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most advanced at that time, Therefore, if people do not study hard follow-
ing their graduation, they will lag behind objective needs after a certain
period. The broad masses of intellectuals must be aware of the seriousness
of this question, They must turn their eyes to the world, clearly aim for
the world advanced level, work hard to narrow down their difference from
and catch up and surpass this level; they must not be handicapped by lack
of knowledge and experience, nor can they become conceited because of the
achievements they have made. It is paltry and lamentable to stop making
progress after making some achievement.

It is required by the modernization program to display the roles of intel-
lectuals. Our party has created various favorable conditions for intellec-
tuals to display their roles. "Fish are swimming at will in the sea and
birds are flying in the sky." We are confident that in the process of
creating a new situation in carrying out the modernization program, the
broad masses of intellectuals will, like strong eagles, hover in the air
for the prosperity of their country!

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achieved through cooperation according to the principles of self-determina-
tion and voluntary participation and of equality and mutual benefit. This
kind of cooperation must be able to gradually improve the backward outlook
of production and the state of poverty.

According to Marx, socialism is the combination of laborers. These united
laborers are at the same time the joint possessors of material production
donditions. They contribute their labor as part of the total force of the
combination in the process of production and receive remuneration in pro-
portion to the amount of labor he has in the process of distribution. "A
given amount of labor of one form can be exchanged with the same amount of
labor of another form." This kind of exchange of labor in equal amounts
is the basic relationship between man and man in socialist production and
distribution.

In most cases, what Marx meant by labor combination was combination which
covered the whole of society. The whole society constitutes one economic
body. Labor, material production conditions and even products are directly
distributed through this body. Commodity production and the exchange of
commodities do not exist. Socialist practices at the present age show that
we cannot have a combination which covers the whole society and one economic
body and consequently do away with commodities and money, at least not under
the present state of the development of the division of labor in society.

In the socialist economic [phrase indistinct], the state, which represents
the society, has overall control over the distribution of social labor and
material production conditions and checks and adjusts social economic life
in a conscious and planned way. However, there must be a second level,
namely, labor combinations between different production units within the
local framework. In this kind of labor combination, different production
units have relatively independent economic status. They differ from each
other not only in the form of [word indistinct] and management but also in
material production conditions. They must carry out commodity exchange

and, for this reason, their production must necessarily be commodity
production. They are the development of the Marxist theory of socialism

in present-day socialist practice.

However, Marx also talked about labor combinations which did not cover the
whole society and which were on a local and smaller scale. When he was
referring to the cooperative system, what he had in mind was this kind of
combination. Moreover, he touched on both levels of labor combination. In
his article "The Civil War in France," he pointed out that "united coopera-
tive societies," or combinations of cooperatives, "mean communism,"
("Collected Works of Marx and Engels," vol 17, p 362) What Marx referred
to as communism here is the same as socialism. At that time, Marx did not
make a distinction between the two terms. Our everyday socialist economic
life also shows that labor combinations on a local and smaller scale have
greater independence than state enterprises. However, this independence

is only relative because labor and management in these labor combinations
are organic components of social economic activities as a whole and are
subject to the conscious control and adjustment of the state which functions

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1 JPRS 83318

: 22 April 1983

CHINA: REPORT
‘ RED FLAG

| No. 5, 1 March 1983

Translation of the semimonthly theoretical journal of the Central
Committee of the Communist Party of China published in Beijing.

CONTENTS

f F
"HONGQI' on Adherence to Adaptation of Marxism (pp 2-8)
(Editorial Department) .....sseeeeeeeeeeee we eeeee beeen eee seceeeeeeeee L

"HONGQI' on Development of Cooperative System (pp 9-17)

7 (Lin Zili).....eee sees Lace eee e eases eeeees see eeees Levees seeeeeees . 12

u

\ Zhou Enlai's Letters to Guo Moruo Between 1942 and 1946 (p 2)..... seceeveeee 28

: Poem Commemorates Zhou Enlai's Birthday (p 20)

: (Zhao Puchu)......+-e- sen ecececcose eecoeee eecceeeee acces beeen wees 32

i

i Zhang Aiping Writes on Defense Modernization (pp 21-24)

i . (Zhang Aiping)....+s.se- wa nccnccvace we ncseees aevceee cevcees eeceees vee 33
"HONGQL' Condemns Prejudice Against Women (pp 25-27)......++ eve veccccveeeres 40

"HONGQI' on Working in Interests of People (pp 28-31)
(Wang Zhaohua). . .

"HONGQL' on Stabling Grain Acreage (pp 32-33)
(Jing Ping)....... beeen eee e eens seeeeee ence ce cencevees eevee cee eeee 53

Using Intellectuals Correctly in Modernization (pp 34-35)
(Shi Youxin)..... scene neee bee e ween enee ee eeeee bee eeee beeen ee eeeee . 56

| "HONGQL' on Evaluating Recent Literary Work (pp 36-39)
t (Zhang Tiong). .cseseececeeeereneeencnenceeeeereecaseeaeesaeesesese ses 60

'HONGQI' Reviews Economic Modernization Documents (pp 40-45) cece eceveeeee » 66

'HONGQL' on Building Two Civilizations (pp 45-47)

(CC Todns A. Pn

-a- {III - cc - 75]

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we had a certain number of heavy weapons such as artillery and tanks, we
began to engage in positional warfare and to seize small cities. Then we
seized medium-sized and finally big cities until we liberated the whole
country. Comrade Mao Zedong said well, "Once an army gets military equip-
ment of a new type, it will become even stronger." It is precisely in the
continuous process of acquiring increasingly advanced military equipment
that our army has developed and strengthened. In wars we must strive to
acquire the most sophisticated military equipment as well as display our
courage and heroism of not fearing death. Only by so doing can we achieve
the aim of preserving ourselves and wiping out the enemy. Otherwise, we
will certainly be in great trouble.

Modern science and technology change with each passing day, and the substi-
tution cycle of modern military equipment has increasingly shortened. At
present the armaments race between the superpowers is, in essence, a compe-
tition of science and technology. It is foretold that war in the future will
be a confrontation between countries in terms not only of their resources

in manpower, materials and funds but also of their science and technology.
Under such grim conditions it appears to be even more important and impera-
tive for us to fulfill the task of defense modernization through self-re-
liance, and we should never neglect or relax our effort in the least to
fulfill this task.

In his report to the 12th party congress Comrade Hu Yaobang points out:
"Our socialist construction is being carried out in a situation whereby
there is turbulence in the world and a serious threat to our country's
security.

Therefore, we should never be less vigilant, and we must strengthen our
national defense on the basis of vigorous development of our economic con-
struction." In the present world there are still imperialists and hege-
monists. For many years, in a scramble for world hegemony, the superpowers
have established the war industry on a huge scale and have contended fiercely
with one another throughout the world. Small wars have occurred one after
another without end, and the danger of world war still exists. To counter
the superpowers’ hegemonism, defend our country's peaceful construction and
safeguard world peace, in addition to carrying out necessary political and
diplomatic struggle we must build up a powerful national defense behind us.
The stronger our national defense, the bigger the guarantee for our peaceful
construction and the possibility of suspending and preventing war. We
should be prepared for danger in times of peace, maxe good use of the pre-
sent relatively peaceful international surroundings and make every minute
and second count in developing new-type military equipment and strengthen-
ing our national defense. This is the demand of our socialist construction
and the demand resulting from our desire to safeguard world peace. It not
only conforms with the basic interests of people in our country but also
wins the vigorous support of the peace-loving countries and people through-
out the world.

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To open our country to foreign trade is an important policy drawn up by

our party in light of the needs of socialist modernization construction
and in light of the current international situation. Over the past several
years, in our economic intercourse with other countries, we have opened up
a new prospect and achieved great success. According to statistics, the
total value of imports and exports of our country in 1981 was double the
1978 figure or 11 times the 1952 figure. There has also been relatively
great development in other areas of external economic relationships, such e
as processing of incoming materials, joint ventures and so on. Practice
has proved that it is absolutely necessary to open our country to foreign
trade.

1. To open our country to foreign trade is compatible with the natural
tendency of social and economic development. A basic characteristic of
socialized large-scale production is the expansion of exchange. As early
as over a century ago, Marx and Engels had pointed out that with the for-
mation of the capitalist world market, economic intercourse and inter-
dependence between various nations would gradually take the place of the
original situation in which countries were self-reliant and closed to
international intercourse. After World War II, this development gained
tremendous momentum. This is a basic historical fact and also an
inevitable trend of social development. In our achievement of the four
modernizations, our economic relationship and intercourse with other
countries will be continually enhanced and will become increasingly more
intimate.

2. The present international situation is favorable for the opening of our
country to foreign trade. Since the founding of the PRC, in our external
economic relationships, we have gone through a tortuous path and did not :
achieve great development. The reasons are as follows: first, the major

capitalist countries, headed by the United States, were hostile to us and

blockaded us for many years, enforcing an’ embargo against us. Second,

in the 1960's the USSR tore up its economic agreements with our country.

Since then, the economic links between our country and the USSR and East

European countries drastically dwindled. Third, for a number of years,

particularly during the "Great Cultural Revolution," the implications of

the guiding principle of self-reliance were gravely distorted. The

success of our country's present diplomatic policies furnishes good

conditions for our economic and technological exchange with other countries.

At present, the international market is a buyers’ market. The economy of

the major capitalist countries in the West is in a sate of stagnation and

inflation. Surplus funds in the international market are also looking for

outlets. These conditions are favorable to the development of our external °
economic relationships.

3. Economic intercourse between various nations in the world and exchange
of technology between them through importation constitute an important way
of promoting economic, scientific and technological development. In

particular, our country is rather backward in its economic, scientific and
technological development, and for a considerable number of years it will

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the standard or yardstick for measuring the labor and management of the

contractors. Without such a yardstick, we will not have any blueprints to

go by in the responsibility and benefit, obligations and rights of the

contracting economies. However, because it is impossible to work out a

common divisor for the great varieties of products produced by different

trades (some of which are labor services which do not take the form of

products), we must draw an abstract "standard output value" from the

standard output quota in order to use it as a common and unified yardstick 2
for measuring the business results and labor consumed in contracting in

all fields.

The cost of production is not taken into consideration in the simple form
of linking remuneration to output. This has a lot to do with the habits
of China's traditional agriculture, which was self-sufficient in nature.
In this kind of agriculture, the cost of production is not in an important
position, and variation between different peasant households is not great.
Therefore, after making deductions for agricultural taxes and common funds
according to the standard output quota, what remains is the income for the
contractor. Actually, this "income" includes the cost of production for
maintaining simple reproduction. After carrying out specialized contract-
ing, the cost of production for different trades and professions and for
different production and business undertakings may vary greatly. If it is
still grouped together with income, it will be impossible to work out the
real income of different contractors. Moreover, the relationship of
balanced interests between different contractors will be adversely affected.
Therefore, while fixing a standard output value, we must also fix a
“standard cost of production." Like the standard output quota and output
value, this is also fixed in advance in accordance with previous data and
changes or reforms that are about to take place in production and manage-
ment in the current year.

In the simple form of linking remuneration to output, the standard output
quota coincides with the standard amount of labor consumed because it is
based on the premise of more or less evenly distributed material production
conditions. After the introduction of specialized contracting, this
premise has been changed. Different amounts of labor may be consumed to
produce the same standard output quota. Therefore, it is necessary to fix
a "standard amount of labor consumed" in addition to the standard cost of
production. It is also fixed according to previous data combined with new

conditions in the current year. :

Then, by subtracting the standard cost of production from the standard

output value, we can get the standard income, or the standard output value. °

Dividing the standard income by the standard amount of labor consumed, we
get the standard income for each workday.

If the material production conditions vary greatly between the contractors,
their standard workday income will also differ. Under such circumstances,
it is necessary for the cooperative economy to use a unified standard
workday income as the yardstick for measurement. In this way, the dif-
ferential earnings produced by differences in the extent of using collective
land and funds (including fixed assets such as equipment) can be recovered
by the cooperative economy.

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NOTE

JPRS publications contain information primarily from foreign
newspapers, periodicals and books, but also from news agency
transmissions and broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribed or reprinted, with the original phrasing and
other characteristics retained.

Headlines, editorial reports, and material enclosed in brackets
{] are supplied by JPRS. Processing indicators such as [Text]
or [Excerpt] in the first line of each item, or following the
last line of a brief, indicate how the original information was
processed. Where no processing indicator is given, the infor-
mation was summarized or extracted.

Unfamiliar names rendered phonetically or transliterated are
enclosed in parentheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses were not clear in the
original but have been supplied as appropriate in context.
Other unattributed parenthetical notes within the body of an
item originate with the source. Times within items are as
given by source.

The contents of this publication in no way represent the poli-
cies, views or attitudes of the U.S. Government.

PROCUREMENT OF PUBLICATIONS

JPRS publications may be ordered from the National Technical
Information Service, Springfield, Virginia 22161. In order-
ing, it is recommended that the JPRS number, title, date and
author, if applicable, of publication be cited.

Current JPRS publications are announced in Government Reports o
Announcements issued semi-monthly by the National Technical
Information Service, and are listed in the Monthly Catalog of

U.S. Government Publications issued by the Superintendent of x
Documents, U.S. Government Printing Office, Washington, D.C.
20402.

Correspondence pertaining to matters other than procurement
may be addressed to Joint Publications Research Service,
1000 North Glebe Road, Arlington, Virginia 22201.

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"HONGQI' ON WORKING IN INTERESTS OF PEOPLE
HK300820 Beijing HONGQI' in Chinese No 5, 1 Mar 83 pp 28-31

[Article by Wang Zhaohua [3769 3564 5478]: "Communists Should Work in the
Interests of the People"]

[Text] The new party constitution adopted by the 12th party congress has
set a stricter demand on the party with respect to maintaining close ties
between the party and the masses, safeguarding the interests of the masses
and wholeheartedly serving the people. In his report to the 12th party
congress, Comrade Hu Yaobang regarded "strengthening the party's work among
the workers, peasants and intellectuals and establishing close ties between
the party and the masses" as one of the important tasks facing party build-
ing at present, and called on us to more consciously preserve and carry
forward the party's fine traditions and to guard against and overcome the
danger of being separated from the masses. This call, which proceeds

from the leading position of our party as well as the actual condition in
the party at present and corresponds with the needs of the new period,

is extremely necessary for correcting the party's work style, further im-
proving relations between the party and the masses and enhancing the
prestige and combat effectiveness of the party.

I
Since the day of its founding, the CPC has always looked upon serving the
people wholeheartedly as its sole purpose. This is the important hall-
mark distinguishing our party from other political parties, and this is
also the source of the powerful vitality and combat effectiveness of our
party. The fact that for more than 60 years, our ,arty has been able to
lead the people in surmouting all kinds of difficulties and dangers and
winning great victories in the democratic and socialist revolutions and
socialist construction is because it wholeheartedly serves the people,

always pays attention to working in the interests of the people and forms
flesh-and-blood and life-and-death relations with the masses.

During the revolutionary war years, fighting was extremely brutal. At that

time, such things as food, clothing and shelter, troop transportation, making

war as well as treating and taking care of the wounded all could not be
separated from the masses. Even the radio station, the general office of

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Now that the "National Assembly" has been opened, they will play many tricks.
The Constitution, the national government and the Executive Yuan are en-

. ticing and deceiving people. To expose their deception depends upon people
from all circles. The political consultative conference has been disbanded.
From now on we will see what is going to happen on the battlefront. We
surely will know the result in 6 months or 1 year. If peace is necessary
by then, a conference among parties and the coalition government will remain
our consistent policy. I and others will leave for home on the 19th.
Looking east towards the Shanghai Bund, I cannot bear to leave. Please give
my regards to all friends and take good care of yourselves.

Say hello to your children.

Hao [Zhou Enlai's alias was Wu Hao]; 17 November, evening
A Letter to Comrade Guo Moruo Dated 31 December 1946:
Dera Moruo:

It has been 2 months since we last met. The situation at home and abroad is
developing towards isolating that reactionary dictator. Next year will be

one in which this struggle will become arduous and changes will be anticipated.

If we dare to face difficulties and adhere to the people's line, we surely
can overcome the difficulties and advance towards victory. In order to iso-
late that reactionary dictator, a struggle is needed from inside in coordina-
tion with forces attacking from outside. You are standing inside. It needs
the establishment and expansion. of a democratic patriotic front and you are
standing at the van of the front. As you work at this arduous workpost,
thousands upon thousands of people are pinning their hopes on you. In

6 months or 1 year you will see a qualitative leap forward on our side. By
then we will either advance hand in hand together or play that splendid
historical drama of struggle from inside in coordination with forces attacking
from outside. Have you published any new poems or articles besides those
published in newspapers? If it is convenient for you, I earnestly hope that
you can send me some.

This letter is hastily written.

Wishing you and your wife a happy New Year.
Wishing your whole family good health.
Zhou Enlai; 31 December, Yanan

Chao (footnote 10) says hello to you.

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motherland can be dispensed with in achieving the four modernizations. In
our work to modernize our national defense, we profoundly concur that the
above-mentioned views are correct. Every achievement in developing or
producing our military equipment has crystallized the division of labor,
cooperation and common labor of workers and scientific and technical staff
under the centralized organization of leading groups at various levels.

In order to give full play to the role of intellectuals, in addition to
teaching our cadres correctly to regard the position and role of intellec~
tuals in the cause of socialist modernization, promptly evaluating and
promoting the academic and technical qualifications of scientific and
technological workers who aspire to devote themselves to the cause of the
motherland and are really competent, showing concern for their livelihood
and health and creating better working and living conditions for them, we
should select and promote fine scientific and technical workers to technical
leading posts and to leading posts at all levels and ensure that they have
the power of and responsibility for their offices and that they are given
the opportunity to display their technical and professional knowledge and
skill and their talents to the full.

Responsible technical persons at all levels should be able to make prompt
decisions, select the best schemes and organize their implementation in the
manner of military commanders. Responsible technical persons at a lower
level have the right to different opinions but must obey decisions of
technical commanders at a higher level. In this way, technical responsibility
systems will gradually take shape for general designers, subsystem chief
designers and designers in charge of certain single projects. Responsible
technical persons at all levels must be formally appointed, and on this
basis we will set up a technical command system with no gaps between upper
and lower levels. To enable technical commanders to concentrate their
energy on their scientific and technological work, we also establish an
administration and management responsibility system and an administrative
and organizational command system to be in charge of planning and directing
so as to guarantee--in terms of labor, materials and funds--the fulfillment
tasks of the technical command system.

Concerning scientific and technical work, scientific and technical committees
have been set up at all levels to organize experts in all fields to dis-
cuss studying the orientation, principles and policies of scientific and
technical development and to carry out feasibility studies of design schemes.
In this way, both the technical and administrative command systems coordi-
nate closely under the unified leadership of the party committee. This

will facilitate giving relatively full play to our scientific and technical
workers' initiative and enable them to make greater contributions. These
experiences are very valuable.

Through 30 years of arduous pioneering work we have already laid a certain
foundation for our national defense construction and have trained a scien-
tific and technical force of a relatively high degree of competence. As
long as we continue to adhere to the principle of relying on ourselves and
giving priority to science and technology, focus on key projects, vigorous-
ly cooperate with one another, attach importance to intellectuals, give full
play to their roles and strive hard, we will certainly succeed in estab-
lishing a strong modern national defense with the distinguishing features

of China. - 39

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A report with more than 10,000 words containing more than 95 percent
exaggeration and nonsense naturally made Emperor Zhu Yuanzhang sign and
say that "flowery words only confuse what one hears," therefore, if the
report was not read time and again, the more than 500 practical and useful
words would have been inundated by flowery words. People could not but
hear the report because the emperor ordered his subordinate to read it.
Ordinary people would certainly have no patience to read the report.
Therefore, in writing articles, we must bear the masses in mind.

Articles with too much water are not only caused by the level of the writers
but are also related to their incorrect style of writing and the stereo-
typed writing method that is yet to be eradicated. People's spirit and time
are limited; therefore, if, through a certain period of conscientious in-
vestigation and study, people are able to put forth their valuable opinions
with regard to a question or a certain point of a question, we can say that
they have made achievements. It is not necessary to take a receiving pos-
ture and attend to each and every aspect of a matter and consequently bury
a new idea amid nonsense. Such an article can only be messy and sluggish.

Therefore, in order to change this situation, it is imperative to correct
the style of writing. After listening to the report of Ru Taisu,

Emperor Zhu Yuanzhang not only "ordered his official to implement the
useful words," but also ordered that the dross be discarded and the perti-
nent be selected from the 500 words. This practice has been defined as a
"pattern for those inside and outside the government to get rid of nonsense
in reporting their work." In writing articles, we must also follow the
example of the literati and officials in feudal China and resort to the
principle of seeking truth from facts. We must abolish various written
and nonwritten patterns and discard the things that "seem familiar." This
practice will enable us to write simple and concise articles that will make
people think that our articles are rich in content and without "water."
Although some requirements are not practical, we must spare no effort to
meet them.

CSO: 4004/27 END

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Commodity production based on the cooperative system is a special form

of commodity production. This special form of commodity production can
give full scope to the work force, to cultural and technological knowledge
and to managerial ability, facilitate the pooling of funds and avoid
polarization in the course of the transition from self-sufficient or semi-
self-sufficient production to socialized commodity production. It will
continue to develop in full in China's countryside for some time to come.

The change from self-sufficient or semi-self-sufficient production to
commodity and socialized production is a general trend of history. No
nation in this world can escape the change from the natural economy to
commodity production. China's countryside is of course no exception. The
flourishing commodity production in China's countryside is socialist
commodity production based on the cooperative system, or commodity produc-
tion by combining labor. This is common to all socialist countries. How-
ever, the road of development of commodity production based on the coopera-
tive system in China's countryside has special characteristics determined
by China's national conditions. In other words, it has distinctively
Chinese features.

The cooperative. economy which combines unified with separate management and
links remuneration to output is a unique form without any precedent which
has developed in China's countryside to meet the needs of our national
conditions. It has pronounced Chinese color. It can be seen that in the
course of further development, the content of unified and separate management
will become more diversified and their forms will become more perfect. How-
ever, the combination of unified and separate management, as a universal

and basic principle, is extremely well-suited to the national condition and
the situation in the countryside. For this reason, it will be able to pre-
serve its great vitality for a long time to come.

The universal application of the output-related contracting system brought
about the development of diversified undertakings, specialization and
division of labor. The latter in turn made it possible for the contracting
economies to gradually make the transition to specialized contracting. In
the wake of this, household sideline undertakings not covered by contracts
also become specialized. Consequently, a large number of specialized
households emerged. Among these specialized households, combinations of
this or that sort developed. The great number of specialized households
and their many and varied forms of combination will be a distinguishing
feature of the socialization and modernization process of our rural economy.

In the output-related contracting system, crop-growing work usually takes
the household or laborer as the contracting unit. Other specialized trades
may take the household, laborer or even work group as the contracting unit.
Private specialized producers normally work on a household basis. With the
exception of such forms of the management contracting system as commune-
and brigade-run enterprises, various new forms of combination are usually
quite small in scale. Generally speaking, with the exception of some
individual specialized households, other forms of economic cooperation in

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restrict and deny the practice of millions of people. This goes against
the basic principle of Marxist epistemology. However, the Marxist stand,
viewpoints and methods and the basic theory of Marxism are not in the least
outworn or outdated. On the contrary, through repeated severe historical
tests, they have shown an even more powerful vitality. By forging ahead
along the Marxist path we mean adhering to the Marxist stand, viewpoints
and methods, using them to study new conditions and solve new problems and
coming to new theoretical conclusions. In other words, it means that we
should develop as well as adhere to Marxism. This is a basic requirement
of Marxism and it is also a basic guarantee for the victory of the revolu-
tion in any country.

Materialist dialectics is of the opinion that there is a relationship of
dialectical unity between adherence and development and that the two inter-
act and are interdependent. Without adherence to Marxism, our development
of Marxism will be based on nothing and go astray. Similarly, adhering

to Marxism does not mean regarding Marxism as being all-inclusive and treat-
ing it as God that can only be worshipped. "Life lies in movement." This
truth applies to ideology and theory as well as to living things. If
Marxist theory does not develop along with the development of practice, it
will become divorced from the ever-changing practice and will wither and
die. The reason why Marxism has maintained its vigorous vitality and re-
mained invincible for more than 100 years is because its basic principle

is the unity between theory and practice, because it is always heedful

of new and advanced things and because it conscientiously listens to the
voice of practice, always follows the development of practice, continuously
assimulates the new experiences drawn from practice and scientifically
answers the new problems raised by practice. The fact that the communists
in many countries have closely integrated the universal truth of Marxism
with the revolutionary practice in their countries and have thus both
guaranteed the victories in the revolutions there and promoted the progress
of Marxism has provided vivid evidence for us.

In our country, the Chinese communists represented by Comrade Mao Zedong
have integrated the universal truth of Marxism with their practice in

China and thus given rise to Mao Zedong Thought. They have creatively
solved the problems related to the actual paths of China's democratic

and socialist revolutions and thus led China's democratic and socialist
revolutions to victory step by step and enriched and developed Marxism in
many aspects. The mistakes committed by Comrade Mao zedong in his later
years inflicted losses on our socialist cause, but this was also because of
the fact that he became divorced from the correct orbit of integrating the
universal truth of Marxism with China's practice. This has provided us with
a very profound lesson. From the 3d Plenary Session of the 12th Party
Congress, our party has worked hard to bring order out of chaos in all
areas, carry on and develop its fine tradition, reestablish the Marxist
ideological line of seeking truth from facts, eliminate the interference
of "leftism" and rightism and scientifically sum up both the positive and
negative experiences since the founding of the PRC. Under the new

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deviation. Facts have proved that in spite of the new problems and inade-
quacy in the last 2 years' literary works, the contingent of creation has
kept growing, and the content and form of works have diversified.
Ideological content and artistic form along which are developing in a
healthy fashion have made unprecedented advances.

Literature, as a social ideology, belongs to the superstructure of a certain
society. In the socialist period, what is the symbol that marks whether

the literature of a certain period has progressed, stagnated or digressed?

In his toast at the fourth representative conference of the Chinese artists
in October 1979, Comrade Deng said, "Our socialist arts should, through
artistic images that are flesh and blood, vivid and moving, realistically
reflect the rich social life, reveal human nature in different social rela-
tions, manifest the demands of the advancing times and the tendency of the
development of history, and what is more, we should strive to teach the
people with socialist ideology and furnish them with aggressive and hard-
working spirits." That is to say, the most important symbol is whether our
literary works with rich and colorful artistic forms and styles, depict
pictures of realistic life that are broad and deep, whether it depicts a
multitude of typical figures that have aesthetic value, especially images
that manifest the pioneers and the socialist new people in the construction
of the four modernizations in the contemporary period, so as to brighten

the hearts of readers with the brilliance of their communist thinking, and to
encourage them to fight firmly for the promising future of socialism. In one
word, we must consider if the art in question serves the reflection and con-
solidation of the socialist economic basis and if it contributes to the
promotion of the construction of socialist spiritual civilization. With such
a yardstick, we can see clearly the new development of literary creation in
the last 2 years.

First, in the continual diversified development of literary subject matter,
themes and characters, the ideological tendency of most works is good and
healthy. In the last 2 years, there have been obviously fewer low-key works
which merely depict psychic traumas. A great many works reflect our
country's socialist history and, with the guidance of the "resolution" passed
during the 6th Plenary Session of the 11th CPC National Congress, these works
have gone into some depth and are fairly correct. The number of works
depicting historical themes, including revolutionary history, is fairly high.
Moreover, they pay special attention to depicting images of heroes in dif-
ferent historical periods, people with lofty ideals, revolutionary martyrs
and the proletariat revolutionaries. They stress eulogizing patriotism,
revolutionary heroism and the unyielding spirit of fighting valiantly for
the progress of history. What is more heartening is that quite a number of
writers geared themselves to the reality that the people of our country
strive for the four modernizations. They make use of the different forms of
literature to manifest the ethics and morals of socialism with ardor and
sincerity and sing the praises of contemporary heroes and the images of
socialist new people. In novels, for example, the woman production team
leader Li Qiuxia in the short story "The Capable Daughter-in-law," the new-
type salesgirl Jin Luer in "The Golden Deer," the leader of the electric

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be impossible to solve the problem of lack of funds in our country. There-
fore, on the basis of self-reliance, we must establish links with the
international market, expand external trade, import advanced technology, make
use of foreign funds, and develop various forms of international economic
and technological cooperation. By doing so we can use the strength of other
countries in the world to make up for our own shortcomings. We can thus
increase, and not weaken, our ability of self-reliance.

Over the past several years, the CPC Central Committee has continually summed
up the experience of opening our country to foreign trade and has drawn up
some clear guiding ideology, guiding principles and policies. These can be
summed up as follows:

1. We must correctly handle the relationship between self-reliance and open-
ing our country to foreign trade. Comrade Hu Yaobang said that the moderni-
zation of a large country such as ours with a population of 1 billion people
should be, and indeed can only be, based on our own strength. However, on
the other hand, we must never confine ourselves to an old narrow sphere,
misinterpreting self-reliance as closure to international intercourses and
struggling in isolation. He said that in our socialist modernization con-
struction, we must make use of two categories of resources: domestic
resources and foreign resources; we must open up two markets; the domestic
market and the international market; and we must learn two sets of skills:
organizing domestic construction and developing external economic relation-
ships. He has thus further clarified the strategic role of external economic
relationships. Comrade Zhao Ziyang also said that in economic work, all
thoughts and actions characterized by the closed door mentality and rigid
adherence to old conventions are wrong, as are all thoughts and actions
characterized by relying solely on foreign resources and blindly believing
in foreign countries.

2, We must use dual tactics. On the one hand, we persist in opening our
country to foreign trade; and on the other hand, we must persist in resist-
ing the corrosive influence of capitalism and curbing criminal economic
activities. Comrade Deng Xiaoping said: "We must selectively and in a
planned way import from capitalist countries advanced technology and other
things useful to us. However, we must definitely not learn or import the
capitalist system or various kinds of ugly and decadent things." If we
open our country to foreign trade, some bad things pertaining to capitalism
and some bad influences of capitalism will inevitably find their way

into our country. Criminal activities such as smuggling, selling of
smuggled goods, speculation, fraud, corruption, bribery and so on will run
rampant in some localities and units. We must not, on account of the imple-
mentation of the policy of opening our country to foreign trade, neglect

or relax the struggle against corrosive influence and economic. crimes, or
be afraid to wage this struggle. On the other hand, we must not waver in
our adherence to the guiding principle and policies concerning opening our
country to foreign trade on account of the necessity to wage this struggle.

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the newspaper and the presses were often also moved to the homes of the
masses. Under such circumstances, if we were separated from the masses
and lost mass support, our position would be untenable and we would con-
stantly be in danger of being exterminated and killed. Why were the
masses not afraid of taking risks but instead resolutely supported the
Communist Party and treated the party members and cadres as family
members? The most fundamental reason was because our party's program and
line reflected the aspirations of the people the broad masses of party
members and cadres led the masses in carrying out a heroic struggle to
fight against the local tyrants, distribute and land and overthrow the
three big mountains weighing on the backs of the Chinese people, and also
helped the masses to solve such actual difficulties as fuel, rice, oil
and salt. This deeply impressed the masses that our party and party
members and cadres were genuinely doing things for them and working
[phrase indistinct] our party from the bottom of their hearts and protect
our party members and cadres at any cost? Despite the fact that some of
our present senior comrades were still very young and inexperienced at
that time, they always paid attention to one principle, and that was,
living and fighting together with the masses, bravely fighting in the
van for the emancipation of the masses, proceeding from the interests

of the masses in determining their own actions, and willingly making self-
sacrifices for the interests of the masses.

After the nationwide liberation, many party members and cadres preserved
and carried forward the glorious traditions of the war years from the early
part to the middle part of the 1950's. The masses. were deeply touched and
inspired by the fine work style of the "old Eighth Route Army" embodied

by them, and their revolutionary zeal and production enthusiasm were greatly
aroused. Unfortunately, as a result of the subsequent development of
"leftist" mistakes and especially the sabotage of the Lin Biao and Jiang
Qing counterrevolutionary cliques, many things were practiced which run
counter to the interests of the people, and the relations between the party
and the masses as well as the prestige enjoyed by party members and cadres
among the masses were seriously damaged. This has been a very profound
lesson.

At present, the mass concept of some of our party members, including veteran
party members who have been tested in the war, has weakened, and their rela-
tions with the masses are not as close as during the war years. These
comrades erroneously think that since our party has become the party in
power, the danger produced by separating from the masses is no longer as
serious as during the war years and the consequences are also not as

direct. They think that it will do at present to issue orders by relying
on their authority, and whether or not they are separated from the masses
has no bearing on the overall situation. This sort of idea is extremely
harmful.

We must know that, regardless of whether in the past, the present or the

future, the question of maintaining close ties with the masses is a matter
of vital importance to the party. The people cannot be separated from the
party, and the party also cannot be separated from the people. The party

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principles of the party since the 3d Plenary Session of the 11th CPC
Central Committee and realize the general tasks of the new historical
period put forward by the 12th party congress to our party. They not
only must set an example and make proper achievements at their respec-—
tive posts, but they must also actively propagate to the masses, mobilize
and organize the masses, arouse to the greatest extent the enthusiasm of
the masses, lead the masses in advance and strive to build China into a
strong and modern socialist country at an early date. Only if this
lofty goal is achieved can the actual strength of our economy and
national defense be greatly strengthened, can our scientific and cul-
tural level be greatly raised and can the material and cultural life of
our urban and rural people be greatly improved. Only thus can we be
considered as having basically succeeded in wholeheartedly working for
the interests of the people.

In working for the basic interests of the people, we must at the same time
pay attention to obtaining the views of the people, find out about their
immediate interests and correctly integrate the long-term basic interests
with the current actual interests of the masses. The various policies and
principles of the party are the embodiment of the line of the party as well
as the unity of the long-term basic interests and the current actual
interests of the masses. To work for the interests of the masses, com-
munists must proceed from reality, respect the creative spirit of the
masses and conscientiously implement the various policies and principles of
the party. Why have we been able in recent years to create an unprecedented
new situation on our agricultural front and enabled such a vigorous and
flourishing scene to appear in the rural areas of the whole country? It

is mainly because our party has firmly and courageously corrected "leftist"
mistakes, implemented the correct policies and principles and boldly carried
out reforms in the agricultural system as well as in management and admin-
istration. The institution of the system of contracted responsibility with
payment linked to output created by the peasants in particular has greatly
aroused the labor enthusiasm of the peasants. If we continue to "eat from
the same big pot" and practice egalitarianism, we will never be able to
implement the principle of each according to his work. If people cannot
see material benefit, their enthusiasm will not be high and production will
not go forward. If everybody is poor and impoverished, how can we call
this socialism? How can people still be enthusiastic to struggle for
communism? How can the communist party obtain the support of the masses?
Policies which do not benefit the people are not the policies of our party.
Anything which conforms to the wishes of the majority of people and is in
their interests, we must boldly and conscientiously carry out. We must
carry it out to the end and do all we can to achieve results.

To work for the interests of the people, an extremely important matter is
to attach importance to bringing the role of intellectuals into play. At
present, at the mention of implementing the policy for intellectuals and
bringing the role of the intellectuals into play, some of the comrades
think that being good to intellectuals will estrange the masses of workers
and peasants, and the sentiment of making allowances for a handful of
people will harm the interests of the majority, This kind of viewpoint is

4g

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"HONGQI' ON DEVELOPMENT OF COOPERATIVE SYSTEM
HK300811 Beijing HONGQI in Chinese No 5, 1 Mar 83 pp 9-17

[Article by Lin Zili [2651 1311 0500]: "New Developments of the Marxist
Theory on the Cooperative System as Shown in the Practice in China"]

[Text] This year marks the centenary of the passing of Karl Marx, the
founder of the theory of scientific socialism.

Today, 100 years after the passing of this proletarian revolutionary
teacher, his socialist teachings are practiced on a grand scale in China,
which has a population of 1 billion people. Proceeding from actual condi-
tions in China and through carrying out reforms in various fields, parti-
cularly the restructuring of the economic system, we have combined the
principles of scientific socialism with the concrete practice in China,
followed our own road and built socialism with distinctively Chinese
features. These are developments of the theory of socialism in practice.
In our commemoration of Marx, nothing can be more meaningful than to

make an in-depth study ‘of the new practices of the theory of socialism in
China. This will contribute to enriching the Marxist theory of scientific
socialism.

At present, the restructuring of the economic system in agriculture has
priority over all trades and professions. We are now replacing the old form
of the collective economy with a new type of cooperative economy which has
as its characteristics the combination of unified and separate management
and the linking of output with remuneration. With this as our starting
point, we are blazing a distinctively Chinese road of developing socialist
agriculture.

I. The Basic Idea of the Marxist Theory of the Cooperative System

The cooperative system was first advocated by utopian socialists. Marx and
Engels developed it and made it a component part of scientific socialism.
Lenin also discussed the question of the cooperative system after the
October Revolution. They all put forth some ideas. The basic idea of the
Marxist theory of the cooperative system is: the proletariat must not think
of expropriating the small peasants. In places where small peasants have
not yet ceased to exist and have not yet been turned into wage-laborers

as in the case of Britain, the socialization of agriculture can only be

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