Mostrando postagens com marcador Economy. Mostrar todas as postagens
Mostrando postagens com marcador Economy. Mostrar todas as postagens

segunda-feira, 31 de agosto de 2009

No contradiction between socialism and market ecnonomy

There is no fundamental contradiction between socialism and a market economy. The problem is how to develop the productive forces more effectively. We used to have a planned economy, but our experience over the years has proved that having a totally planned economy hampers the development of the productive forces to a certain extent. If we combine a planned economy with a market economy, we shall be in a better position to liberate the productive forces and speed up economic growth.

Since the Third Plenary Session of our Party's Eleventh Central Committee, we have consistently stressed the importance of upholding the Four Cardinal Principles, especially the principle of keeping to the socialist system. If we are to keep to the socialist system, it is essential for us to develop the productive forces. For a long time we failed to handle this question satisfactorily. In the final analysis, the superiority of socialism should be demonstrated in a greater development of the productive forces. The experience we have gained over the years shows that with the former economic structure we cannot develop the productive forces. That is why we have been drawing on some useful capitalist methods. It is clear now that the right approach is to open to the outside world, combine a planned economy with a market economy and introduce structural reforms. Does this run counter to the principles of socialism? No, because in the course of reform we shall make sure of two things: one is that the public sector of the economy is always predominant; the other is that in developing the economy we seek common prosperity, always trying to avoid polarization. The policies of using foreign funds and allowing the private sector to expand will not weaken the predominant position of the public sector, which is a basic feature of the economy as a whole. On the contrary, those policies are intended, in the last analysis, to develop the productive forces more vigorously and to strengthen the public sector. So long as the public sector plays a predominant role in China's economy, polarization can be avoided. Of course, some regions and some people may prosper before others do, and then they can help other regions and people to gradually do the same. I am convinced that the negative phenomena that can now be found in society will gradually decrease and eventually disappear as the economy grows, as our scientific, cultural and educational levels rise and as democracy and the legal system are strengthened.

In short, the overriding task in China today is to throw ourselves heart and soul into the modernization drive. While giving play to the advantages inherent in socialism, we are also employing some capitalist methods -- but only as methods of accelerating the growth of the productive forces. It is true that some negative things have appeared in the process, but what is more important is the gratifying progress we have been able to achieve by initiating these reforms and following this road. China has no alternative but to follow this road. It is the only road to prosperity.

On the Ten Major Relationships

n recent months the Political Bureau of the Central Committee has heard reports on the work of thirty-four industrial, agricultural, transport, commercial, financial and other departments under the: central authorities and from these reports has identified a number of problems concerning socialist construction and socialist transformation. In all, they boil down to ten problems, or ten major relationships.

It is to focus on one basic policy that these ten problems are being raised, the basic policy of mobilizing all positive factors, internal and external, to serve the cause of socialism. In the past we followed this policy of mobilizing all positive factors in order to put an end to the rule of imperialism, feudalism and bureaucrat-capitalism and to win victory for the people's democratic revolution. We are now following the same policy in order to carry on the socialist revolution and build a socialist country. Nevertheless, there are some problems in our work that need discussion. Particularly worthy of attention is the fact that in the Soviet Union certain defects and errors that occurred in the course of their building socialism have lately come to light. Do you want to follow the detours they have made? It was by drawing lessons from their experience that we were able to avoid certain detours in the past, and there is all the more reason for us to do so now.

What are the positive factors, internal and external? Internally, the workers and the peasants are the basic force. The middle forces are forces that can be won over. The reactionary forces are a negative factor, but even so we should do our work well and turn this negative factor as far as possible into a positive one. Internationally, all the forces that can be united with must be united, the forces that are not neutral can be neutralized through our efforts, and even the reactionary forces can be split and made use of. In short, we should mobilize all forces, whether direct or indirect, and strive to make China a powerful socialist country.

I will now discuss the ten problems.

I. THE RELATIONSHIP BETWEEN HEAVY INDUSTRY ON THE ONE HAND AND LIGHT INDUSTRY AND AGRICULTURE ON THE OTHER

The emphasis in our country's construction is on heavy industry. The production of the means of production must be given priority that's settled. But it definitely does not follow that the production of the means of subsistence, especially grain, can be neglected. Without enough food and other daily necessities, it would be impossible to provide for the workers in the first place, and then what sense would it make to talk about developing heavy industry? Therefore, the relationship between heavy industry on the one hand and light industry and agriculture on the other must be properly handled.

In dealing with this relationship we have not made mistakes of principle. We have done better than the Soviet Union and a number of East European countries. The prolonged failure of the Soviet Union to reach the highest pre-October Revolution level in grain output, the grave problems arising from the glaring disequilibrium between the development of heavy industry and that of light industry in some East European countries -- such problems do not exist in our country. Their lop-sided stress on heavy industry to the neglect of agriculture and light industry results in a shortage of goods on the market and an unstable currency. We, on the other hand, attach more importance to agriculture and light industry. We have all along attended to and developed agriculture and have to a considerable degree ensured the supply of grain and raw materials necessary for the development of industry. Our daily necessities are in fairly good supply and our prices and currency are stable.

The problem now facing us is that of continuing to adjust properly the ratio between investment in heavy industry on the one hand and in agriculture and light industry on the other in order to bring about a greater development of the latter. Does this mean that heavy industry is no longer primary? No. It still is, it still claims the emphasis in our investment. But the proportion for agriculture and light industry must be somewhat increased.

What will be the results of this increase? First, the daily needs of the people will be better satisfied, and, second, the accumulation of capital will be speeded up so that we can develop heavy industry with greater and better results. Heavy industry can also accumulate capital, but, given our present economic conditions, light industry and agriculture can accumulate more and faster.

Here the question arises: Is your desire to develop heavy industry genuine or feigned, strong or weak? If your desire is feigned or weak, then you will hit agriculture and light industry and invest less in them. If your desire is genuine or strong, then you will attach importance to agriculture and light industry so that there will be more grain and more raw materials for light industry and a greater accumulation of capital. And there will be more funds in the future to invest in heavy industry.

There are now two possible approaches to our development of heavy industry: one is to develop agriculture and light industry less, and the other is to develop them more. In the long run, the first approach will lead to a smaller and slower development of heavy industry, or at least will put it on a less solid foundation, and when the over-all account is added up a few decades hence, it will not prove to have paid. The second approach will lead to a greater and faster development of heavy industry and, since it ensures the livelihood of the people, it will lay a more solid foundation for the development of heavy industry.

II. THE RELATIONSHIP BETWEEN INDUSTRY IN THE COASTAL REGIONS AND INDUSTRY IN THE INTERIOR

In the past our industry was concentrated in the coastal regions. By coastal regions we mean Liaoning, Hopei, Peking, Tientsin, eastern Honan, Shantung, Anhwei, Kiangsu, Shanghai, Chekiang, Fukien, Kwangtung and Kwangsi. About 70 per cent of all our industry, both light and heavy, is to be found in the coastal regions and only 30 percent in the interior. This irrational situation is a product of history. The coastal industrial base must be put to full use, but to even out the distribution of industry as it develops we must strive to promote industry in the interior. We have not made any major mistakes on the relationship between the two. However, in recent years we have underestimated coastal industry to some extent and have not given great enough attention to its development. This must change.

Not so long ago, there was still fighting in Korea and the international situation was quite tense; this could not but affect our attitude towards coastal industry. Now, it seems unlikely that there will be a new war of aggression against China or another world war in the near future and there will probably be a period of peace for a decade or more. It would therefore be wrong if we still fail to make full use of the plant capacity and technical forces of coastal industry. If we are to have only five years, not to say ten, we should still work hard to develop industries in the coastal regions for four years and evacuate them when war breaks out in the fifth. According to available information, in light industry the construction of a plant and its accumulation of capital generally proceed quite rapidly. After the whole plant goes into production, it can earn enough in four years to build three new factories, or two, or one or at least half of one, in addition to recouping its capital outlay. Why shouldn't we do such profitable things? The notion that the atom bomb is already overhead and about to fall on us in a matter of seconds is a calculation at variance with reality and it would be wrong to take a negative attitude towards coastal industry on this account.

It does not follow that all new factories should be built in the coastal regions. Without doubt, the greater part of the new industry should be located in the interior so that industry may gradually become evenly distributed; moreover, this will help our preparations against war. But a number of new factories and mines, even some large ones, may also be built in the coastal regions. As for the expansion and reconstruction of the light and heavy industries already in the coastal regions, we have done a fair amount of work in the past and will do much more in the future.

Making good use of the old industries in the coastal regions and developing their capacities will put us in a stronger position to promote and support industry in the interior. To adopt a negative attitude would be to hinder the latter's speedy growth. So it is likewise a question of whether the desire to develop industry in the interior is genuine or not. If it is genuine and not feigned, we must more actively use and promote industry in the coastal regions, especially light industry.

III. THE RELATIONSHIP BETWEEN ECONOMIC CONSTRUCTION AND DEFENCE CONSTRUCTION

National defence is indispensable. Our defence capabilities have attained a certain level. As a result of the war to resist U.S. aggression and aid Korea and of several years of training and consolidation, our armed forces have grown more powerful and are now stronger than was the Soviet Red Army before the Second World War; also, there have been improvements in armaments. Our defence industry is being built up. Ever since Pan Ku separated heaven and earth, we have never been able to make planes and cars, and now we are beginning to make them.

We do not have the atom bomb yet. But neither did we have planes and artillery in the past. We defeated the Japanese imperialists and Chiang Kai-shek with millet plus rifles. We are stronger than before and will be stronger still in the future. We will have not only more planes and artillery but atom bombs too. If we are not to be bullied in the present-day world, we cannot do without the bomb. Then what is to be done about it? One reliable way is to cut military and administrative expenditures down to appropriate proportions and increase expenditures on economic construction. Only with the faster growth of economic construction can there be greater progress in defence construction.

At the Third Plenary Session of the Seventh Central Committee of our Party in 1950, we already raised the question of streamlining the state apparatus and reducing military and administrative expenditures and considered this measure to be one of the three prerequisites for achieving a fundamental turn for the better in our financial and economic situation. In the period of the First Five-Year Plan, military and administrative expenditures accounted for 30 per cent of the total expenditures in the state budget. This proportion is much too high. In the period of the Second Five-Year Plan, we must reduce it to around 20 per cent, so that more funds can be released for building more factories and turning out more machines. After a time, we shall not only have plenty of planes and artillery but probably have our own atom bombs as well.

Here again the question arises: Is your desire for the atom bomb genuine and very keen? Or is it only lukewarm and not so very keen? If your desire is genuine and very keen, then you will reduce the proportion of military and administrative expenditures and spend more on economic construction. If your desire is not genuine or not so very keen, you will stay in the old rut. This is a matter of strategic policy, and I hope the Military Commission will discuss it.

Would it be all right to demobilize all our troops now? No, it would not. For enemies are still around, and we are being bullied and encircled by them. We must strengthen our national defence, and for that purpose we must first of all strengthen our work in economic construction.

IV. THE RELATIONSHIP BETWEEN THE STATE, THE UNITS OF PRODUCTION AND THE PRODUCERS

The relationship between the state on the one hand and factories and agricultural co-operatives on the other and the relationship between factories and agricultural co-operatives on the one hand and the producers on the other should both be handled well. To this end we should consider not just one side but all three, the state, the collective and the individual, or, as we used to say, "take into consideration both the army and the people" and "take into consideration both the public and the private interest". In view of the experience of the Soviet Union as well as our own, we must see to it that from now on this problem is solved much better.

Take the workers for example. As their labour productivity rises, there should be a gradual improvement in their working conditions and collective welfare. We have always advocated plain living and hard work and opposed putting personal material benefits above everything else; at the same time we have always advocated concern for the livelihood of the masses and opposed bureaucracy, which is callous to their well-being. With the growth of our economy as a whole, wages should be appropriately adjusted. We have recently decided to increase wages to some extent, mainly the wages of those at the lower levels, the wages of the workers, in order to narrow the wage gap between them and the upper levels. Generally speaking, our wages are not high, but compared with the past the life of our workers has greatly improved because, among other things, more people are employed and prices remain low and stable. Under the regime of the proletariat, our workers have unfailingly displayed high political consciousness and enthusiasm for labour. When at the end of last year the Central Committee called for a fight against Right conservatism, the masses of workers warmly responded and, what was exceptional, overfulfilled the plan for the first quarter of the year by working all out for three months. We must strive to encourage this zeal for hard work and at the same time pay still greater attention to solving the pressing problems in their work and everyday life.

Here I would like to touch on the question of the independence of the factories under unified leadership. It's not right, I'm afraid, to place everything in the hands of the central or the provincial and municipal authorities without leaving the factories any power of their own, any room for independent action, any benefits. We don't have much experience on how to share power and returns properly among the central authorities, the provincial and municipal authorities and the factories, and we should study the subject. As a matter of principle, centralization and independence form a unity of opposites, and there must be both centralization and independence. For instance, we are now having a meeting, which is centralization; after the meeting, some of us will go for a walk, some will read books, some will go to eat, which is independence. If we don't adjourn the meeting and give everyone some independence but let it go on and on, wouldn't it be the death of us all? This is true of individuals, and no less true of factories and other units of production. Every unit of production must enjoy independence as the correlative of centralization if it is to develop more vigorously.

Now about the peasants. Our relations with the peasants have always been good, but we did make a mistake on the question of grain. In 1954 floods caused a decrease in production in some parts of our country, and yet we purchased 7,000 million more catties of grain. A decrease in production and an increase in purchasing -- this made grain the topic on almost everyone's lips in many places last spring and nearly every household talked about the state monopoly for marketing grain. The peasants were disgruntled, and there were a lot of complaints both inside and outside the Party. Although quite a few people indulged in deliberate exaggeration and exploited the opportunity to attack us, it cannot be said that we had no shortcomings. Inadequate investigation and failure to size up the situation resulted in the purchase of 7,000 million catties more; that was a shortcoming. After discovering it, we purchased 7,000 million catties less in 1955 and introduced a system of fixed quotas for grain production, purchasing and marketing [1] and, what's more, there was a good harvest. With a decrease in purchasing and an increase in production, the peasants had over 20,000 million more catties of grain at their disposal. Thus even those peasants who had complaints before said, "The Communist Party is really good." This lesson the whole Party must bear in mind.

The Soviet Union has adopted measures which squeeze the peasants very hard. It takes away too much from the peasants at too low a price through its system of so-called obligatory sales [2] and other measures. This method of capital accumulation has seriously dampened the peasants' enthusiasm for production. You want the hen to lay more eggs and yet you don't feed it, you want the horse to run fast and yet you don't let it graze. What kind of logic is that!

Our policies towards the peasants differ from those of the Soviet Union and take into account the interests of both the state and the peasants. Our agricultural tax has always been relatively low. In the exchange of industrial and agricultural products we follow a policy of narrowing the price scissors, a policy of exchanging equal or roughly equal values. The state buys agricultural products at standard prices while the peasants suffer no loss, and, what is more, our purchase prices are gradually being raised. In supplying the peasants with manufactured goods we follow a policy of larger sales at a small profit and of stabilizing or appropriately reducing their prices; in supplying grain to the peasants in grain-deficient areas we generally subsidize such sales to a certain extent. Even so, mistakes of one kind or another will occur if we are not careful. In view of the grave mistakes made by the Soviet Union on this question, we must take greater care and handle the relationship between the state and the peasants well.

Similarly, the relationship between the co-operative and the peasants should be well handled. What proportion of the earnings of a co-operative should go to the state, to the co-operative and to the peasants respectively and in what form should be determined properly. The amount that goes to the co-operative is used directly to serve the peasants. Production expenses need no explanation, management expenses are also necessary, the accumulation fund is for expanded reproduction and the public welfare fund is for the peasants' well-being. However, together with the peasants, we should work out equitable ratios among these items. We must strictly economize on production and management expenses. The accumulation fund and the public welfare fund must also be kept within limits, and one shouldn't expect all good things to be done in a single year.

Except in case of extraordinary natural disasters, we must see to it that, given increased agricultural production, go per cent of the co-operative members get some increase in their income and the other lo per cent break even each year, and if the latter's income should fall, ways must be found to solve the problem in good time.

In short, consideration must be given to both sides, not to just one, whether they are the state and the factory, the state and the worker, the factory and the worker, the state and the co-operative, the state and the peasant, or the co-operative and the peasant. To give consideration to only one side, whichever it may be, is harmful to socialism and to the dictatorship of the proletariat. This is a big question which concerns 600 million people, and it calls for repeated education in the whole Party and the whole nation.

V. THE RELATIONSHIP BETWEEN THE CENTRAL AND THE LOCAL AUTHORITIES

The relationship between the central and the local authorities constitutes another contradiction. To resolve this contradiction, our attention should now be focussed on how to enlarge the powers of the local authorities to some extent, give them greater independence and let them do more, all on the premise that the unified leadership of the central authorities is to be strengthened. This will be advantageous to our task of building a powerful socialist country. Our territory is so vast, our population is so large and the conditions are so complex that it is far better to have the initiative come from both the central and the local authorities than from one source alone. We must not follow the example of the Soviet Union in concentrating everything in the hands of the central authorities, shackling the local authorities and denying them the right to independent action.

The central authorities want to develop industry, and so do the local authorities. Even industries directly under the central authorities need assistance from the local authorities. And all the more so for agriculture and commerce. In short, if we are to promote socialist construction, we must bring the initiative of the local authorities into lay. If we are to strengthen the central authorities, we must attend to the interests of the localities.

At present scores of hands are reaching out to the localities, making things difficult for them. Once a ministry is set up, it wants to have revolution and so it issues orders. Since the ministries don't think it proper to issue orders to the Party committees and people's councils at the provincial level, they establish direct contact with the relevant departments and bureaus in the provinces and municipalities and give them orders every day. These orders are all supposed to come from the central authorities, even though neither the Central Committee of the Party nor the State Council knows anything about them, and they put a great strain on the local authorities. There is such a flood of statistical forms that they become a scourge. This state affairs must be changed.

We should encourage the style of work in which the local authorities are consulted on the matters to be taken up. It is the practice of the Central Committee of the Party to consult the local authorities; it never hastily issues orders without prior consultation. We hope that the ministries and departments under the central authorities will pay due attention to this and will first confer with the localities on all matters concerning them and issue no order without full consultation.

The central departments fall into two categories. Those in the first category exercise leadership right down to the enterprises, but their administrative offices and enterprises in the localities are also subject to supervision by the local authorities. Those in the second have the task of laying down guiding principles and mapping out work plans, while the local authorities assume the responsibility for putting them into operation.

For a large country like ours and a big Party like ours the proper handling of the relationship between the central and local authorities is of vital importance. Some capitalist countries pay great attention to this too. Although their social system is fundamentally different from ours, the experience of their growth is nevertheless worth studying. Take our own experience; the system of the greater administrative area instituted in the early days of our People's Republic was a necessity at that time, and yet it had shortcomings which were later exploited to a certain extent by the anti-Party alliance of Kao Kang and Jao Shu-shih. It was subsequently decided to abolish the greater administrative areas and put the various provinces directly under the central authorities; that was a correct decision. But neither was the outcome so satisfactory when matters went to the length of depriving the localities of their necessary independence. According to our Constitution, the legislative powers are all vested in the central authorities. But, provided that the policies of the central authorities are not violated, the local authorities may work out rules, regulations and measures in the light of their specific conditions and the needs of their work, and this is in no way prohibited by the Constitution. We want both unity and particularity. To build a powerful socialist country it is imperative to have a strong and unified central leadership and unified planning and discipline throughout the country; disruption of this indispensable unity is impermissible. At the same time, it is essential to bring the initiative of the local authorities into full play and let each locality enjoy the particularity suited to its local conditions. This particularity is not the Kao Kang type of particularity but one that is necessary for the interest of the whole and for the strengthening of national unity.

There is also the relationship between different local authorities, and here I refer chiefly to the relationship between the higher and lower local authorities. Since the provinces and municipalities have their own complaints about the central departments, can it be that the prefectures, counties, districts and townships have no complaints about the provinces and municipalities? The central authorities should take care to give scope to the initiative of the provinces and municipalities, and the latter in their turn should do the same for the prefectures, counties, districts and townships; in neither case should the lower levels be put in a strait-jacket. Of course comrades at the lower levels must be informed of the matters on which centralization is necessary and they must not act as they please. In short, centralization must be enforced where it is possible and necessary, otherwise it should not be imposed at all. The provinces and municipalities, prefectures, counties, districts and townships should all enjoy their own proper independence and rights and should fight for them. To fight for such rights in the interest of the whole nation and not of the locality cannot be called localism or an undue assertion of independence.

The relationship between different provinces and municipalities is also a kind of relationship between different local authorities, and it should be properly handled too. It is our consistent principle to advocate consideration for the general interest and mutual help and accommodation.

Our experience is still insufficient and immature on the question of handling the relationship between the central and local authorities and that between different local authorities. We hope that you will consider and discuss it in earnest and sum up your experience from time to time so as to enhance achievements and overcome shortcomings.

VI. THE RELATIONSHIP BETWEEN THE HAN NATIONALITY AND THE MINORITY NATIONALITIES

Comparatively speaking, our policy on the relationship between the Han nationality and the minority nationalities is sound and has won the favour of the minority nationalities. We put the emphasis on opposing Han chauvinism. Local-nationality chauvinism must be opposed too, but generally that is not where our emphasis lies.

The population of the minority nationalities in our country is small, but the area they inhabit is large. The Han people comprise 94 per cent of the total population, an overwhelming majority. If they practiced Han chauvinism and discriminated against the minority peoples, that would be very bad. And who has more land? The minority nationalities, who occupy 50 to 60 per cent of the territory. We say China is a country vast in territory, rich in resources and large in population; as a matter of fact, it is the Han nationality whose population is large and the minority nationalities whose territory is vast and whose resources are rich, or at least in all probability their resources under the soil are rich.

The minority nationalities have all contributed to the making of China's history. The huge Han population is the result of the intermingling of many nationalities over a long time. All through the ages, the reactionary rulers, chiefly from the Han nationality, sowed feelings of estrangement among our various nationalities and bullied the minority peoples. Even among the working people it is not easy to eliminate the resultant influences in a short time. So we have to make extensive and sustained efforts to educate both the cadres and the masses in our proletarian nationality policy and make a point of frequently reviewing the relationship between the Han nationality and the minority nationalities. One such review was made two years ago and there should be another now. If the relationship is found to be abnormal, then we must deal with it in earnest and not just in words.

We need to make a thorough study of what systems of economic management and finance will suit the minority nationality areas.

We must sincerely and actively help the minority nationalities to develop their economy and culture. In the Soviet Union the relationship between the Russian nationality and the minority nationalities is very abnormal; we should draw lessons from this. The air in the atmosphere, the forests on the earth and the riches under the soil are all important factors needed for the building of socialism, but n material factor can be exploited and utilized without the human factor We must foster good relations between the Han nationality and the minority nationalities and strengthen the unity of all the nationalities in the common endeavour to build our great socialist motherland.

VII. THE RELATIONSHIP BETWEEN PARTY AND NON-PARTY

Which is better, to have just one party or several? As we see it now, it's perhaps better to have several parties. This has been true in the past and may well be so for the future; it means long-term , coexistence and mutual supervision.

In our country the various democratic parties, consisting primarily of the national bourgeoisie and its intellectuals, emerged during the resistance to Japan and the struggle against Chiang Kai-shek, and they continue to exist to this day. In this respect, China is different from the Soviet Union. We have purposely let the democratic parties remain, giving them opportunities to express their views and adopting a policy of both unity and struggle towards them. We unite with all those democratic personages who offer us well-intentioned criticisms. We should go on activating the enthusiasm of such people from the Kuomintang army and government as Wei Li-huang and Weng Wen-hao, who are patriotic. We should even provide for such abusive types as Lung Yun, Liang Shu-ming and Peng Yi-hu and allow them to rail at us, while refuting their nonsense and accepting what makes sense in their rebukes. This is better for the Party, for the people and for socialism.

Since classes and class struggle still exist in China, there is bound to be opposition in one form or another. Although all the democratic parties and democrats without party affiliation have professed their acceptance of the leadership of the Chinese Communist Party, many of them are actually in opposition in varying degrees. On such matters as "carrying the revolution through to the end", the movement to resist U.S. aggression and aid Korea and the agrarian reform, they were against us and yet not against us. To this very day they have reservations about the suppression of counter-revolutionaries. They didn't want to have a constitution of the socialist type, for, as they said, the Common Programme was just perfect, and yet when the Draft Constitution came out, their hands all went up in favour. Things often turn into their opposites, and this is also true of the attitude of the democratic parties on many questions. They are in opposition, and yet not in opposition, often proceeding from being in opposition to not being in opposition.

The Communist Party and the democratic parties are all products of history. What emerges in history disappears in history. Therefore, the Communist Party will disappear one day, and so will the democratic parties. Is this disappearance so unpleasant? In my opinion, it will be very pleasant. I think it is just fine that one day we will be able to do away with the Communist Party and the dictatorship of the proletariat. Our task is to hasten their extinction. We have spoken about this point many times.

But at present we cannot do without the proletarian party and the dictatorship of the proletariat and, what is more, it is imperative that they should be made still more powerful. Otherwise, we would not be able to suppress the counter-revolutionaries, resist the imperialists and build socialism, or consolidate it when it is built. Lenin's theory on the proletarian party and the dictatorship of the proletariat is by no means "outmoded", as alleged by certain people. The dictatorship of the proletariat cannot but be highly coercive. Still, we must oppose bureaucracy and a cumbersome apparatus. I propose that the Party and government organs should be thoroughly streamlined and cut by two-thirds provided that no person dies and no work stops.

However, streamlining the Party and government organs does not mean getting rid of the democratic parties. I suggest you give attention to our united front work so as to improve our relations with them and make every possible effort to mobilize their enthusiasm for the cause of socialism.

VIII. THE RELATIONSHIP BETWEEN REVOLUTION AND COUNTER-REVOLUTION

What kind of factor are counter-revolutionaries? They are a negative factor, a destructive factor, they are forces opposed to the positive factors. Is it possible for counter-revolutionaries to change? The die-herds will undoubtedly never change. However, given the conditions in our country, most of the counter-revolutionaries will eventually change to a greater or lesser extent. Thanks to the correct policy we adopted, many have been transformed into persons no longer opposed to the revolution, and a few have even done some good.

The following points should be affirmed:

First, it should be affirmed that the suppression of counter-revolutionaries in 1951-1952 was necessary. There is a view that this campaign needn't have been launched. This is wrong.

Counter-revolutionaries may be dealt with in these ways: execution, imprisonment, supervision and leaving at large. Execution -- everybody knows what that means. By imprisonment we mean putting counter-revolutionaries in jail and reforming them through labour. By supervision we mean leaving them in society to be reformed under the supervision of the masses. By leaving at large we mean that generally no arrest is made in those cases where it is marginal whether to make an arrest, or that those arrested are set free for good behaviour. It is essential that different counter-revolutionaries should be dealt with differently on the merits of each case.

Now let's take execution in particular. True, we executed a number of people during the above-mentioned campaign to suppress counter-revolutionaries. But what sort of people were they? They were counter-revolutionaries who owed the masses many blood debts and were bitterly hated. In a great revolution embracing 600 million people, the masses would not have been able to rise if we had not killed off such local despots as the "Tyrant of the East" and the "Tyrant of the West". Had it not been for that campaign of suppression, the people would not have approved our present policy of leniency. Now that some people have heard that Stalin wrongly put a number of people to death, they jump to the conclusion that we too were wrong in putting those counter-revolutionaries to death. This is a wrong view. It is of immediate significance today to affirm that it was absolutely right to execute those counter-revolutionaries.

Second, it should be affirmed that counter-revolutionaries still exist, although their number has greatly diminished. After the Hu Feng case surfaced, it was necessary to ferret out the counter-revolutionaries. The effort to clear out those who remain hidden must go on. It should be affirmed that there are still a small number of counter-revolutionaries carrying out counter-revolutionary sabotage of one kind or another. For example, they kill cattle, set fire to granaries, wreck factories, steal information and put up reactionary posters. Consequently, it is wrong to say that counter-revolutionaries have been completely eliminated and that we can therefore lay our heads on our pillows and just drop off to sleep. As long as class struggle exists in China and in the world, we should never relax our vigilance. Nevertheless, it would be equally wrong to assert that there are still large numbers of counter-revolutionaries.

Third, from now on there should be fewer arrests and executions in the suppression of counter-revolutionaries in society at large. They are the mortal and immediate enemies of the people and are deeply hated by them, and therefore a small number should be executed. But most of them should be handed over to the agricultural co-operatives and made to work under supervision and be reformed through labour. All the same, we cannot announce that there will be no more executions, and we must not abolish the death penalty.

Fourth, in clearing out counter-revolutionaries in Party and government organs, schools and army units, we must adhere to the policy started in Yenan of killing none and arresting few. Confirmed counter-revolutionaries are to be screened by the organizations concerned, but they are not to be arrested by the public security bureaus, prosecuted by the procuratorial organs or tried by the law courts. Well over ninety out of every hundred of these counter-revolutionaries should be dealt with in this way. This is what we mean by arresting few. As for executions, kill none.

What kind of people are those we don't execute? We don't execute people like Hu Feng, Pan Han-nien, Jao Shu-shih, or even captured war criminals such as Emperor Pu Yi and Kang Tse. We don't have them executed, not because their crimes don't deserve capital punishment but because such executions would yield no advantage. If one such criminal is executed, a second and a third will be compared with him in their crimes, and then many heads will begin to roll. This is my first point. Second, people may be wrongly executed. Once a head is chopped off, history shows it can't be restored, nor can it grow again as chives do, after being cut. If you cut off a head by mistake, there is no way to rectify the mistake, even if you want to. The third point is that you will have destroyed a source of evidence. You need evidence in order to suppress counter-revolutionaries. Often one counter-revolutionary serves as a living witness against another, an there will be cases where you may want to consult him. If you have got rid of him, you may not be able to get evidence any more. And this will be to the advantage of counter-revolution, not of revolution. The fourth point is that killing these counter-revolutionaries won't (1) raise production, (2) raise the country's scientific level, (3) help do away with the four pests, (4) strengthen national defence, or (5) help recover Taiwan. It will only earn you the reputation of killing captives, and killing captives has always given one a bad name. Another point is that counter-revolutionaries inside Party and government organ are different from those in society at large. The latter lord it over the masses while the former are somewhat removed from the masses, and therefore make enemies in general but seldom enemies in particular. What harm is there in killing none of them? Those who are physically fit for manual labour should be reformed through labour, and those who are not should be provided for. Counter-revolutionaries are trash, they are vermin, but once in your hands, you can make them perform some kind of service for the people.

But shall we enact a law stipulating that no counter-revolutionary in Party and government organs is to be executed? Ours is a poll for internal observance which need not be made public, and all we need do is carry it out as far as possible in practice. Supposing someone should throw a bomb into this building, killing everybody here, or half or one-third of the people present, what would you say -- execute him or not execute him? Certainly he must be executed.

Adopting the policy of killing none when eliminating counter-revolutionaries from Party and government organs in no way prevent us from being strict with them. Instead, it serves as a safeguard against irretrievable mistakes, and if mistakes are made, it gives us a opportunity to correct them. In this way many people will be put a ease and distrust among comrades inside the Party avoided. If counter-revolutionaries are not executed, they have to be fed. All counter-revolutionaries should be given a chance to earn a living, so that the can start anew. This will be good for the cause of the people and be well received abroad.

The suppression of counter-revolutionaries still calls for hard work. We must not relax. In future not only must the suppression of counter-revolutionaries in society continue, but we must also uncover all the hidden counter-revolutionaries in Party and government organs, schools and army units. We must draw a clear distinction between ourselves and the enemy. If the enemy is allowed to worm his way into our ranks and even into our organs of leadership, we know only too well how serious a threat this will be to the cause of socialism and to the dictatorship of the proletariat.

IX. THE RELATIONSHIP BETWEEN RIGHT AND WRONG

A clear distinction must be made between right and wrong, whether inside or outside the Party. How to deal with people who have made mistakes is an important question. The correct attitude towards them should be to adopt a policy of "learning from past mistakes to avoid future ones and curing the sickness to save the patient", help them correct their mistakes and allow them to go on taking part in the revolution. In those days when the dogmatists headed by Wang Ming were in the saddle, our Party erred on this question, picking up the bad aspect of Stalin's style of work. In society the dogmatists rejected the middle forces and inside the Party they did not allow people to correct their mistakes; they barred both from the revolution.

The True Story of Ah Q is a fine story. I would recommend comrades who have read it before to reread it and those who haven't to read it carefully. In this story Lu Hsun writes mainly about a peasant who is backward and politically unawakened. He devotes a whole chapter, "Barred from the Revolution", to describing how a bogus foreign devil bars Ah Q from the revolution. Actually, all Ah Q understands by revolution is helping himself to a few things just like some others. But even this kind of revolution is denied him by the bogus foreign devil. It seems to me that in this respect some people are quite like that bogus foreign devil. They barred from the revolution those who had committed errors, drawing no distinction between the making of mistakes and counter-revolution, and went so far as to kill a number of people who were guilty only of mistakes. We must take this lesson to heart. It is bad either to bar people outside the Party from the revolution or to prohibit erring comrades inside the Party from making amends.

With regard to comrades who have erred, some people say we must observe them and see if they are going to correct their mistakes. I would say just observing them will not do, we must help them correct their mistakes. That is to say, first we must observe and second we must give help. Everybody needs help; those who have not done wrong need it and those who have need it still more. Probably no one is free from mistakes, only some make more and some less, and once they do they need help. It is passive just to observe; conditions must be created to help those who have erred to mend their ways. A clear distinction must be drawn between right and wrong, for inner-Party controversies over principle are a reflection inside the Party of the class struggle in society, and no equivocation is to be tolerated. It is normal, in accordance with the merits of the case, to mete out appropriate and well grounded criticism to comrades who have erred, and even to conduct necessary struggle against them; this is to help them correct mistakes. To deny them help and, what is worse, to gloat over their mistakes, is sectarianism.

For revolution, it is always better to have more people. Except for a few who cling to their mistakes and fail to mend their ways after repeated admonition, the majority of those who have erred can correct their mistakes. People who have had typhoid become immune to it; similarly, people who have made mistakes will make fewer ones provided they are good at drawing lessons. On the other hand, since it is easier for those who have not erred to become cocky, they are prone to make mistakes. Let us be careful, for those who fix people guilty of mistakes will more often than not end up finding themselves in a fix. Kao Kang started out to lift a rock to hurl at others only to find himself being knocked down. Treating with good will those who have erred will win general approval and unite people. A helpful attitude or a hostile attitude towards comrades who have erred -- this is a criterion for judging whether one is well-intentioned or ill-intentioned.

The policy of "learning from past mistakes to avoid future ones and curing the sickness to save the patient" is a policy for uniting the whole Party. We must stick to this policy.

X. THE RELATIONSHIP BETWEEN CHINA AND OTHER COUNTRIES

We have put forward the slogan of learning from other countries. I think we have been right. At present, the leaders of some countries are chary and even afraid of advancing this slogan. It takes some courage to do so, because theatrical pretensions have to be discarded.

It must be admitted that every nation has its strong points. If not, how can it survive? How can it progress? On the other hand, every nation has its weak points. Some believe that socialism is just perfect, without a single flaw. How can that be true? It must be recognized that there are always two aspects, the strong points and the weak points. The secretaries of our Party branches, the company commanders and platoon leaders of our army have all learned to jot down both aspects in their pocket notebooks, the weak points as well as the strong ones, when summing up their experience. They all know there are two aspects to everything, why do we mention only one? There will always be two aspects, even ten thousand years from now. Each age, whether the future or the present, has its own two aspects, and each individual has his own two aspects. In short, there are two aspects, not just one. To say there is only one is to be aware of one aspect and to be ignorant of the other.

Our policy is to learn from the strong points of all nations and all countries, learn all that is genuinely good in the political, economic, scientific and technological fields and in literature and art. But we must learn with an analytical and critical eye, not blindly, and we mustn't copy everything indiscriminately and transplant mechanically. Naturally, we mustn't pick up their shortcomings and weak points.

We should adopt the same attitude in learning from the experience of the Soviet Union and other socialist countries. Some of our people were not clear about this before and even picked up their weaknesses. While they were swelling with pride over what they had picked up, it was already being discarded in those countries; as a result, they had to do a somersault like the Monkey Sun Wu-kung. For instance, there were people who accused us of making a mistake of principle in setting up a Ministry of Culture and a Bureau of Cinematography rather than a Ministry of Cinematography and a Bureau of Culture, as was the case in the Soviet Union. They did not anticipate that shortly afterwards the Soviet Union would make a change and set up a Ministry of Culture as we had done. Some people never take the trouble to analyse, they simply follow the "wind". Today, when the north wind is blowing, they join the "north wind" school; tomorrow, when there is a west wind, they switch to the "west wind" school; afterwards when the north wind blows again, they switch back to the "north wind" school. They hold no independent opinion of their own and often go from one extreme to the other.

In the Soviet Union, those who once extolled Stalin to the skies have now in one swoop consigned him to purgatory. Here in China some people are following their example. It is the opinion of the Central Committee that Stalin's mistakes amounted to only 30 per cent of the whole and his achievements to 70 per cent, and that all things considered Stalin was nonetheless a great Marxist. We wrote "On the Historical Experience of the Dictatorship of the Proletariat" on the basis of this evaluation. This assessment of 30 per cent for mistakes and 70 per cent for achievements is just about right. Stalin did a number of wrong things in connection with China. The "Left" adventurism pursued by Wang Ming in the latter part of the Second Revolutionary Civil War period and his Right opportunism in the early days of the War of Resistance Against Japan can both be traced to Stalin. At the time of the War of Liberation, Stalin first enjoined us not to press on with the revolution, maintaining that if civil war flared up, the Chinese nation would run the risk of destroying itself. Then when fighting did erupt, he took us half seriously, half sceptically. When we won the war, Stalin suspected that ours was a victory of the Tito type, and in 1949 and 1950 the pressure on us was very strong indeed. Even so, we maintain the estimate of 30 per cent for his mistakes and 70 per cent for his achievements. This is only fair.

In the social sciences and in Marxism-Leninism, we must continue to study Stalin diligently wherever he is right. What we must study is all that is universally true and we must make sure that this study is linked with Chinese reality. It would lead to a mess if every single sentence, even of Marx's, were followed. Our theory is an integration of the universal truth of Marxism-Leninism with the concrete practice of the Chinese revolution. At one time some people in the Party went in for dogmatism, and this came under our criticism. Nevertheless, there is still dogmatism today. It still exists in academic circles and in economic circles too.

In the natural sciences we are rather backward, and here we should make a special effort to learn from foreign countries. And yet we must learn critically, not blindly. In technology I think first we have to follow others in most cases, and it is better for us to do so, since that is what we are lacking at present and know little about. However, in those cases where we already have clear knowledge, we must not follow others in every detail.

We must firmly reject and criticize all the decadent bourgeois systems, ideologies and ways of life of foreign countries. But this should in no way prevent us from learning the advanced sciences and technologies of capitalist countries and whatever is scientific in the management of their enterprises. In the industrially developed countries they run their enterprises with fewer people and greater efficiency and they know how to do business. All this should be learned well in accordance with our own principles in order to improve our work. Nowadays, those who make English their study no longer work hard at it, and research papers are no longer translated into English, French, German or Japanese for exchange with other countries. This too is a kind of blind prejudice. Neither the indiscriminate rejection of everything foreign, whether scientific, technological or cultural, nor the indiscriminate imitation of everything foreign as noted above, has anything in common with the Marxist attitude, and neither in any way benefits our cause.

In my opinion, China has two weaknesses, which are at the same time two strong points.

First, in the past China was a colonial and semi-colonial country, not an imperialist power, and was always bullied by others. Its industry and agriculture are not developed and its scientific and technological level is low, and except for its vast territory, rich resources, large population, long history, The Dream of the Red Chamber in literature, and so on, China is inferior to other countries in many respects, and so has no reason to feel conceited. However, there are people who, having been slaves too long, feel inferior in everything and don't stand up straight in the presence of foreigners. They are just like Chia Kuei [3] in the opera The Famen Temple who, when asked to take a seat, refuses to do so, giving the excuse that he is used to standing in attendance. Here we need to bestir ourselves, enhance our national confidence and encourage the spirit typified by "scorn U.S. imperialism", which was fostered during the movement to resist U.S. aggression and aid Korea.

Second, our revolution came late. Although the Revolution of 1911 which overthrew the Ching emperor preceded the Russian revolution, there was no Communist Party at that time and the revolution failed. Victory in the people's revolution came only in 1949, some thirty years later than the October Revolution. On this account too, we are not in a position to feel conceited. The Soviet Union differs from our country in that, firstly, tsarist Russia was an imperialist power and, secondly, it had the October Revolution. As a result, many people in the Soviet Union are conceited and very arrogant.

Our two weaknesses are also strong points. As I have said elsewhere, we are first "poor" and second "blank". By "poor" I mean we do not have much industry and our agriculture is underdeveloped. By "blank" I mean we are like a blank sheet of paper and our cultural and scientific level is not high. From the developmental point of view, this is not bad. The poor want revolution, whereas it is difficult for the rich to want revolution. Countries with a high scientific and technological level are overblown with arrogance. We are like a blank sheet of paper, which is good for writing on.

Being "poor" and "blank" is therefore all to our good. Even when one day our country becomes strong and prosperous, we must still adhere to the revolutionary stand, remain modest and prudent, learn from other countries and not allow ourselves to become swollen with conceit. We must not only learn from other countries during the period of our First Five-Year Plan, but must go on doing so after the completion of scores of five-year plans. We must be ready to learn even ten thousand years from now. Is there anything bad about that?

I have taken up ten topics altogether. These ten relationships are all contradictions. The world consists of contradictions. Without contradictions the world would cease to exist. Our task is to handle these contradictions correctly. As to whether or not they can be resolved entirely to our satisfaction in practice, we must be prepared for either possibility; furthermore, in the course of resolving these contradictions we are bound to come up against new ones, new problems. But as we have often said, while the road ahead is tortuous, the future is bright. We must do our best to mobilize all positive factors, both inside and outside the Party, both at home and abroad, both direct and indirect, and make China a powerful socialist country.

NOTES

1. The system of fixed quotas for the production, purchase and marketing of grain was instituted in the spring of 1955. The quotas for production fixed in that year were based on the grain yield per mou in normal years, and increases in production were not to entail extra sales of grain to the state for three years. The fixed quota for purchase refers to the purchase by the state of a fixed proportion of surplus grain from peasant households having a surplus. The fixed quota for marketing refers to the quota for the state's supply of grain to grain-deficient households. The system was adopted in order to raise the peasants' enthusiasm for increasing production.

2. The system of obligatory sales enforced in the Soviet Union from 1933 to 1957 was the principal measure by which the state bought agricultural products. Under it the collective farms and individual peasant households were required to sell their agricultural products annually to the state in quantities and at prices fixed by the state.

3. In the Peking opera The Famen Temple, Chia Kuei is a trusted lackey of Liu Chin, a Ming Dynasty eunuch.

Food and Money: Regulations concerning land property

Grain is the arbiter of human destiny; earth is the breeder of grain; man is governed by his lord. If there is grain enough, a country is well equipped; if the (possession of) soil is rectified, people have enough to eat; if the inhabitants are examined well, labour services are equally distributed. A ruler who is aware of these three crucial points, has a well governed country [...]

In the 25th year of the era Kaiyuan "Opening the Origin" (738) of the Great Tang dynasty, an edict said: A field of the seize of one mu shall be one pace broad and 240 paces long; one hundred mu are one qing. A male adult is given a field of 20 mu for lifelong cultivation (yongye), and a personal field (koufen) of 80 mu; young men above the age of 18 are also given the same amount like male adults. Old men, seriously ill people and people with incurable diseases are only given 40 mu of personal field; widows, wifes and women are given a personal field of 30 mu. Persons that were first to obtain a lifelong cultivation field, all obtain the full amount of personal field. Babies, children, young an adult men and women as well as old and sick persons, widows, wifes and women that live in the same household, are all given a field of 20 mu for lifelong cultivation, and a personal field of 20 mu seize [...] As field for lifelong cultivation, the princes as relatives of the emperor obtain one hundred qing, the officials of superior first rank obtain 60 qing, princes in commanderies and their officials of vice first rank obtain 50 qing, the dukes and their officials of superior second rank all obtain 40 qing [...]

In the era Tianbao "Heavenly Treasure" (742-755), all in all field of the amount of 14,303,862 qing and 13 mu were distributed.

State regulation

Duke Huan asked: "Please tell me of state regulation." Guan Zhong replied: "There are regulations for farms, for men, for disbursals, for rural areas, for public enterprises, for the currency, for the districts, and for the entire state..." Duke Huan said: "How shall I regulate?" Guan Zhong replied": In each village, the amount of farm land, the number of workers and the amount of grain produced should be ascertained. Similarly, in each district, the number of people, the amount of farm land, the consumption of grain, and the surplus of food supplies in a normal year should be determined. Again, in each village, the output of each year's spinning by the women should be noted, making estimates according to the four seasons. And record should be made of the surplus over and above what is needed to clothe the inhabitants... Also the various types of soil should be classified." Duke Huan asked: "What do you mean by classifying the soils?" Guan Zhong replied: "There is soil suitable for rushes; there is soil for bamboo, for sandalwood, and for mulberry trees; there is soil located in lowlands and swamps; there is land that may be flooded, suitable for stocking fish and turtles. These four types of soil should be carefully controlled and maintained by the government. The tax should be fixed according to the production, rathern than according to men or area."

Di Xin, (the last ruler of Shang)

His first name was Shou; this was Zhow; he is also called Shouxin. In his first year, which was a jihai year (1101 BC), when he came to the throne, he dwelt in Yin. He gave appointments to the Marquis of Jiu (or Chou 仇), Zhou (the Marquis of Zhou was the Chief of the West 西伯, Ji Chang 姬昌), and Yu.
3rd year, a sparrow produced a hawk.
4th year, he had a great hunting in Li. He invented the punishment of roasting.
5th year, summer, he built the tower of Nandan. There was a shower of earth in Bo.
6th year, the Chief of the West offered sacrifice for the first time for his ancestors in Bi.
9th year, the royal forces attacked the state of Su, and brought away Princess Daji (not: Danji!) as a captive. The king made an apartment for her, with walls of carnation stone, and the doors all-adorned with gems.
10th year, summer, 6th month, he hunted in the western borders.
17th year, the Chief of the West smote the Di tribes. In the winter, the king made a pleasure excursion to Ji.
21st year, spring, 1st month, the feudal lords went to Zhou to do homage. Boyi and Shuqi betook themselves to Zhou from Guzhu.
22nd year, winter, he had a great hunting along the Wei River.
23rd year, he imprisoned the Chief of the West in Youli.
29th year, he liberated the Chief of the West, who was met met by many of the feudal lords, and escorted back to Cheng.
30th year, spring, 3rd month, the Chief of the West lead the feudal lords to the court with their tributes.
31st year, the Chief of the West began to form a regular army in Bi, with Lü Shang as its commander.
32nd year, there was a conjunction of the five planets in Fang. A red crow lighted on the altar to the spirits of the land of Zhou. The people of Mi invaded Ruan, when the Chief of the West led a force against Mi.
33rd year, the people of Mi surrendered to the army of Zhou, and were removed to Cheng. The King granted power to the Chief of the West to punish and attack offending states on his own discretion.
34th year, the forces of Zhou took Qi and Yu; and then attacked Chong, which surrendered. Winter, 12th month, the Kunyi people overran Zhou.
35th year, great famine in Zhou. The Chief of the West removed from Cheng to Feng.
36th year, spring, 1st month, the feudal lords went to the court at Zhou; and then they smote the hordes of the Kunyi. The Chief of the West made his heir-son Fa build the capital Hao.
37th year, Zhou built a royal college.
39th year, the great officer Xinjia fled to Zhou.
40th year, Zhou erected the Soul Terrace (Lingtai). The King sent Jiao Li to seek for gems in the territory of Zhou.
41st year, spring, 3rd month, Chang, the Chief of the West (later called King Zhou Wenwang), died (; he was buried in Bi).
42nd year, Fa, the Chief of the West (later King Zhou Wuwang), obtained the Vermillion Book from Lü Shang. A girl changed into a man.
43rd year, spring, the King of Shang had a grand review. Part of Mount Yao fell down.
44th year, Fa, the Chief of the West, smote Li.
47th year, the recorder of the interior, Xiang Zhi, fled to Zhou.
48th year, the ominous Yi goat was seen. Two suns appeared together.
51st year, winter, 11th month, day wuzi, the army of Zhou crossed the Mengjin Ford; but returned. The King of Shang imprisoned the Viscount of Ji, and put Prince Bigan to death; the Viscount of Wei fled away (to Zhou).
52nd year, (gengyin), Zhou made its first attack on Yin (Shang). In the autumn, the army of Zhou camped in the plain of Xian. In the winter, 12th month, the army of Zhou made offerings to the Highest Deity. The men of Yong, Shu, Qiong, Wu, Wei, Lu, Peng, and Pu joined the Zhou army to attack Yin (Shang).
From the time when Tang the Great destroyed the Xia Dynasty down to the time of King Shou, there ruled 29 kings of the Shang Dynasty, for 496 years.

Fengjian System - The Chinese Feudalism

1. According to the regulations of emolument and rank framed by the kings, there were the duke; the marquis; the earl; the count; and the baron:--in all, five gradations (of rank). There were (also), in the feudal states, Great officers of the highest grade,-the ministers; and Great officers of the lowest grade; officers of the highest, the middle, and the lowest grades:--in all, five gradations (of office).

2. The territory of the son of Heaven amounted to 1000 lî square; that of a duke or marquis to 500 lî square; that of an earl to 79 lî square; and that of a count or baron to 50 lî square. (Lords) who could not number 50 lî square, were not admitted directly to (the audiences of) the son of Heaven. Their territories were called 'attached,' being joined to those of one of the other princes.

3. The territory assigned to each of the ducal ministers of the son of Heaven was equal to that of a duke or marquis; that of each of his high ministers was equal to that of an earl; that of his Great officers to the territory of a count or baron; and that of his officers of the chief grade to an attached territory.

4. According to the regulations, the fields of the husbandmen were in portions of a hundred acres. According to the different qualities of those acres, when they were of the highest quality, a farmer supported nine individuals; where they were of the next, eight; and so on, seven, six, and five. The pay of the common people, who were employed in government offices, was regulated in harmony with these distinctions among the husbandmen.

5. The officers of the lowest grade in the feudal states had an emolument equal to that of the husbandmen whose fields were of the highest quality; equal to what they would have made by tilling the fields. Those of the middle grade had double that of the lowest grade; and those of the highest grade double that of the middle. A Great officer of the lowest grade had double that of an officer of the highest. A high minister had four times that of a Great officer; and the ruler had ten times that of a high minister. In a state of the second class, the emolument of a minister was three times that of a Great officer; and that of the ruler ten times that of a minister. In small states, a high minister had twice as much as a Great officer; and the ruler ten times as much as a minister.

6. The highest minister, in a state of the second class, ranked with the one of the middle grade in a great state; the second, with the one of the lowest grade; and the lowest, with a Great officer of the highest grade. The highest minister in a small state ranked with the lowest of a great state; the second, with the highest Great officer of the other; and the lowest, with one of the lower grade.

7. Where there were officers of the middle grade and of the lowest, the number in each was three times that in the grade above it.

8. Of the nine provinces embracing all within, the four seas, a province was 1000 lî square, and there were established in it 30 states of 100 lî (square) each.; 60 of 70 lî; 120 of 5o lî:-in all, 210 states. The famous hills and great meres were not included in the investitures. The rest of the ground formed attached territories and unoccupied lands of the eight provinces (apart from that which formed the royal domain), each contained (the above) 210 states[1].

9. Within the domain of the son of Heaven there were 9 states of 100 lî square; 21 of 70 lî; and 63 of 50 lî:-in all, 93 states. The famous hills and great meres were not assigned[3]. The rest of the ground served to endow the officers, and to form unoccupied lands.

10. In all, in the nine provinces, there were 1773 states, not counting in (the lands of) the officers of the chief grade of the son of Heaven, nor the attached territories in the feudal states.

SECTION II.

1. (The contributions from) the first hundred lî (square) of the son of Heaven served to supply (the needs of) the (various) public offices; (those from the rest of) the thousand lî were for his own special use.

2. Beyond his thousand lî, chiefs of regions were appointed. Five states formed a union, which had a President. Ten formed a combination, which had a Leader. Thirty formed a confederation, which had a Director. Two hundred and ten formed a province, which had a Chief. In the eight provinces there were eight Chiefs, fifty-six Directors, one hundred and sixty-eight Leaders, and three hundred and thirty-six Presidents. The eight Chiefs, with those under them, were all under the two Ancients of the son of Heaven. They divided all under the sky between them, one having charge of the regions on the left and the other of those on the right, and were called the two (Great) Chiefs[1].

3. All within the thousand lî (of the royal domain) was called the Tien (or field Tenure). Outside that domain there were the Zhâi (or service territories) and the Liû (or territory for banished persons).

4. The son of Heaven had three dukes, nine high ministers, twenty-seven Great officers, and eighty-one officers of the chief grade.

5. In a great state there were three high ministers, all appointed by the son of Heaven; five Great officers of the lower grade; and twenty-seven officers of the highest grade. In a state of the second class there were three high ministers, two appointed by the son of Heaven and one by the ruler; five Great officers of the lower grade; and twenty-seven officers of the highest grade. In a small state there were two high ministers, both appointed by the ruler; five, Great officers of the lower grade; and twenty-seven officers of the highest grade.

6. The son of Heaven employed his Great officers as the Three Inspectors,--to inspect the states under the Chiefs of Regions. For each state there were three Inspectors.

7. Within the domain of the son of Heaven the princes enjoyed their allowances; outside it they had their inheritances.

8. According to the regulations, any one of the three ducal ministers might wear one additional symbol of distinction,--that of the descending dragon.

9. The high minister of a great state could not wear more than three of the symbols, and the ministers below him only two. The high ministers of a small state, and Great officers of the lowest class, wore only one.

10. The rule was that the abilities of all put into offices over the people should first be discussed. After they had been discussed with. discrimination, the men were employed. When they had been (proved) in the conduct of affairs, their rank was assigned; and when their position was (thus) fixed, they received salary.

11. It was in the court that rank was conferred, the (already existing) officers being (thus) associated in the act. It was in the market-place that punishment was inflicted; the multitude being (thus) associated in casting the criminals off. hence, neither the ruler, nor (the head of)a clan, would keep a criminal who had been punished about; him; a Great officer would not maintain him; nor would an officer, meeting.

12. In their relation to the son of Heaven, the feudal princes were required to send every year a minor mission to the court, and every three years a greater mission; once in five years they had to appear there in person.

13. The son of Heaven, every five years, made a tour of Inspection through the fiefs.

14. In the second month of the year, he visited those on the East, going to the honoured mountain of Tâi. There he burnt a (great) pile of wood, and announced his arrival to Heaven; and with looks directed to them, sacrificed to the hills and rivers. He gave audience to the princes; inquired out those who were 100 years old, and went to see them: ordered the Grand music-master to bring him the poems (current in the different states) 3, that he might see the manners of the people; ordered the superintendents of markets to present (lists of prices), that he might see what the people liked and disliked, and whether they were set on extravagance and loved what was bad; he ordered the superintendent of rites to examine the seasons and months, and fix the days, and to make uniform the standard tubes, the various ceremonies, the (instruments of) music, all measures, and (the fashions of) clothes. (Whatever was wrong in these) was rectified.

15. Where any of the spirits of the hills and rivers had been unattended to, it was held to be an act of irreverence, and the irreverent ruler was deprived of a part of his territory. Where there had been neglect of the proper order in the observances of the ancestral temple, it was held to show a want of filial piety and the rank of the unfilial ruler was reduced. Where any ceremony had been altered, or any instrument of music changed, it was held to be an instance of disobedience, and the disobedient ruler was banished. Where the statutory measures and the (fashion of) clothes had been changed, it was held to be rebellion, and the rebellious ruler was taken off. The ruler who had done good service for the people, and shown them an example of virtue, received an addition to his territory and rank.

16. In the seventh month, (the son of Heaven) continued his tour, going to the south, to the mountain of that quarter[1], observing the same ceremonies as in the east. In the eighth month, he went on to the west, to the mountain of that quarter, observing the same ceremonies as in the south. In the eleventh month, he went on to the north, to the mountain of that quarter[1], observing the same ceremonies as in the west. (When all was done), he returned (to the capital), repaired (to the ancestral temple) and offered a bull in each of the fanes, from that of his (high) ancestor to that of his father.

17. When the son of Heaven was about to go forth, he sacrificed specially, but with the usual forms., to God, offered the Î sacrifice at the altar of the earth, and the Zhâo in the fane of his father. When one of the feudal princes was about to go forth, he offered the Î sacrifice to the spirits of the land, and the Zhâo in the fane of his father.

18. When the son of Heaven received the feudal princes, and there was no special affair on hand, it was (simply) called an audience. They examined their ceremonies, rectified their punishments, and made uniform what they considered virtuous; thus giving honour to the son of Heaven.

19. When the son of Heaven gave (an instrument of) music to a duke or marquis, the presentation was preceded by a note from the signal box[1]; when giving one to an earl, count, or baron, the presentation was preceded by shaking the hand-drum. When the bow and arrows were conferred on a prince, he could proceed to execute the royal justice. When the hatchet and battle-axe were conferred, he could proceed to inflict death. When a large: libation-cup was conferred, he could make the spirits from the black millet for himself. When this cup was not conferred, be had to depend for those spirits (as a gift) from the son of Heaven.

20. 'When the son of Heaven ordered a prince to institute instruction, he proceeded to build his schools; the children's, to the south of his palace, on the left of it; that for adults, in the suburbs. (The college of) the son of Heaven was called (the palace of) Bright Harmony, (and had a circlet of water). (That of) the princes was called the Palace with its semicircle of water.

21. When the son of Heaven was about to go forth on a punitive expedition, he sacrificed specially, but with the usual forms, to God; offered the Î sacrifice at the altar of the Earth, and the Zhâo in the fane of his father. He offered sacrifice also to the Father of War (on arriving) at the state which was the object of the expedition. He had received his charge from his ancestors, and the complete (plan) for the execution of it in the college. He went forth accordingly, and seized the criminals; and on his return he set forth in the college his offerings, and announced (to his ancestors) how he had questioned (his prisoners), and cut off the cars (of the slain.

22. When the son of Heaven and the princes had no (special) business in hand, they had three huntings in the year. The first object in them was to supply the sacrificial dishes with dried flesh; the second, to provide for guests and visitors; and the third, to supply the ruler's kitchen.

23. Not to hunt when there was no (special) business in the way was deemed an act of irreverence. To hunt without observing the rules (for hunting) was deemed cruelty to the creatures of Heaven.

24. The sop of Heaven did not entirely surround (the hunting ground; and a feudal prince did not take a (whole) herd by surprise. When the son of Heaven had done killing, his large flag was lowered; and when the princes had done, their smaller flag. When the Great officers had done, the auxiliary carriages were stopped[1]; and after this, the common people fell a hunting (for themselves).

25. When the otter sacrificed its fish[2], the foresters entered the meres and dams. When the wolf sacrificed its prey, the hunting commenced. When the dove changed into a hawk, they set their nets, large and small. When the plants and trees began to drop their leaves, they entered the hills and forests (with the axe). Until the insects had all withdrawn into their burrows, they did not fire the fields. They did not take fawns nor eggs. They did not kill pregnant animals, nor those which had not attained to their full growth. They did not throw down nests.

26. The chief minister determined the expenditure of the states, and it was the rule that he should do so at the close of the year. When the five kinds of grain had all been gathered in, he then determined the expenditure;-according to the size of each territory, as large or small, and the returns of the year, as abundant or poor. On the average of thirty years he determined the expenditure, regulating the outgoing by the income.

27. A tenth of the (year's) expenditure was for sacrifices. During the three years of the mourning rites (for parents), the king did not sacrifice (in person), excepting to Heaven, Earth, and the Spirits of the land and grain; and when he went to transact any business, the ropes (for his chariot) were made of hemp (and not of silk)[1]. A tithe of three years, expenditure was allowed for the rites of mourning. When there was not sufficient for the rites of sacrifice and mourning, it was owing to lavish waste; when there was more than enough, the state was described as affluent. In sacrifices there should be no extravagance in good years, and no niggardliness in bad.

28. If in a state there was not accumulated (a surplus) sufficient for nine years, its condition was called one of insufficiency; if there was not enough for six years, one of urgency. If there was not a surplus sufficient for three years, the state could not continue. The husbandry of three years was held to give an overplus of food sufficient for one year; that of nine years, an overplus sufficient for three years. Going through thirty years (in this way), though there might be bad years, drought, and inundations, the people would have no lack or be reduced to (eating merely) vegetables, and then the son of Heaven would every day have full meals and music at them.