1. In 1952, local industry produced 59·6 per cent. of national gross value of industrial production, according to the First Five-Year Plan. In 1954 it produced 57 per cent Under the Plan, it was still to produce 56 per cent. in 1957, the last year of the Plan. See First Five Year Plan for Development of the National Economy of the People's Republic of China, 1953–1957 (FFYP) (Peking, 1956)Google Scholar, and “Pi-hsü yu-chi-hua ti fa-chan ti-fang kung-yeh” (“Local industry must be developed in a planned manner”), Jen-min jih-pao (People's Daily) (JMJP), (Peking) 2 03 1955.Google Scholar

2. For definitions of these terms, see Chung-hua jen-min kung-ho-kuo fa-chan kuo-min ching-chi ti ti-i-ko wu-nien chi-hua ti ming-tz'u chien-shih (A brief explanation of terms in the FFYP for the development of the national economy of the Chinese People's Republic) (Peking, 1955)Google Scholar. See also Ishikawa, Shigeru, National Income and Capital Formation in Mainland China (Tokyo, 1965).Google Scholar

3. See Stanford Research Institute (SRI), “Notes on Small Industry and Handicraft Development in Mainland China, 1952–58,” Miscellaneous Paper No. 2, 12 1958.Google Scholar

4. For a good general discussion of the problem of defining industrial size, see Fisher, Douglas, “A Survey of the Literature on Small-Sized Industrial Undertakings in India,” in Hoselitz, B. (ed.), The Role of Small Industry in the Process of Economic Growth (The Hague, 1968), pp. 124–129.Google Scholar

5. Government Administration Council (GAC), “Decision of the Government Administration Council Concerning State-Operated Industrial Productive Constructions [sic] in 1951,” as passed by the 79th session of the GAC, 29 04 1951Google Scholar, in Survey of the China Mainland Press (SCMP) (Hong Kong: U.S. Consulate General), No. 101.Google Scholar

6. Ta-kung pao (Peking), 22 01 1957Google Scholar, in SCMP, No. 1836.Google Scholar

7. For a more extensive statement of this case, see Riskin, C., “Local Industry and Choice of Techniques in Planning of Industrial Development in Mainland China,”Google Scholar in United Nations Industrial Development Organization, Planning for Advanced Skills and Technologies (Vienna, 1969), pp. 171–173Google Scholar. Sen, A. K., “Choice of Technology, A Critical Survey of a Class of Debates,”Google Scholar in the same volume, is an excellent summary of the main theoretical contributions to this area of economics.

8. See for example Po, Wei, “Ti-i-ko wu-nien chi-hua ch'i-chien ti ti-fang kun-gyeh” (“Local industry in the FFYP period”), Nan-fang jih-pao (Southern Daily) (NF) (Canton), 11 01 1956.Google Scholar

9. Information in the next several paragraphs is taken from the First Five Year Plan, pp. 97–105.Google Scholar

10. However, the Plan states that the below-norm construction projects would “mainly serve the needs of agricultural production and the rural population” (p. 103).Google Scholar

11. These percentages have been calculated from data cited in Chen, Nai-ruenn, Chinese Economic Statistics (Chicago, 1967), p. 211.Google Scholar

12. “Economic construction expenditure” is roughly equivalent to gross fixed capital investment minus certain types of major repairs, plus investment in “working capital” consisting of production stocks, semi-finished goods and goods in process. See Chen, , Chinese Economic Statistics, pp. 16, 103.Google Scholar

13. These percentages are calculated from figures contained in Chen, , Chinese Economic Statistics, p. 446Google Scholar, for 1955 and 1956, and in Hsien-nien, Li, “Implementation of the State Budget for 1957 and the Draft State Budget for 1958,” Current Background (Hong Kong), No. 493 (1958), for 1957.Google Scholar

14. Chih-ta, Ko, Kuo-tu shih-ch'i Chung-kuo yü-suan (China's budget in the transition period) (Peking, 1957), p. 38.Google Scholar

15. “Chi Hsien-chang tai-piao ti fa-yen” (“Representative Chi Hsien-chang's speech”), NF, 7 02 1955.Google Scholar

16. “Pi-hsü yu-chi-hua ti fa-chan ti-fang kung-yeh,” in JCMP, 2 03, 1955.Google Scholar

17. Kuang-chou jih-pao, 22 04 1957.Google Scholar

18. See , C. M.Li, Economic Development of Communist China (Berkeley, Calif., 1959), pp. 219–220Google Scholar, and Tang, Anthony, “Policy and Performance in Agriculture,” in Eckstein, , Galenson, and Liu, (eds.), Economic Trends in Communist China (Chicago, 1968).Google Scholar

19. Riskin, , Local Industry in Chinese Economic Development, pp. 106, 114.Google Scholar

20. Because the evidence on which it rests comes principally from Kwangtung Province, which like other provinces had special characteristics of its own, this conclusion must be regarded as hypothetical with respect to China as a whole.

21. For examples of such criticism, see Wen hui pao, 6 08 1956Google Scholar, in SCMP, No. 1248, and New China News Agency (NCNA), 14 05 1957Google Scholar, in SCMP, No. 1536, p. 17.Google Scholar

22. See NF, 18 08 1953Google Scholar, in SCMP, No. 677 (Supplement), Po, Wei, in NF 11 01 1956.Google Scholar

23. Pai-chü, Feng, in NF, 10 08 1957.Google Scholar

24. I-wen, Chao, Hsin Chung-kuo ti kung-yeh (Industry of New China) (Peking; 1957)Google Scholar; Chao, Kang, “Policies and Performance in Industry,”Google Scholar in Eckstein, , Galenson, and Liu, . (eds), Economic Trends in Communist ChinaGoogle Scholar; Tsai-hsing, Liu, Wo-kuo ti-i-ko wu-nien chi-hua ti kung-yeh ti-ch'ü fen-pu wen-t'i (Problems of regional distribution of industry under the FFYP) (Shanghai, 1956).Google Scholar

25. Ta-lun, Ch'en, “Wo-kuo kung-yeh kuan-li t'i-chih ti kai-pien” (“Reform of China's industrial administrative system”), Ching-chi yen-chiu (CCYC), No. 3 (03 1958), pp. 30–31.Google Scholar

26. T'o-fu, Chia, “Problems of Light Industry in China,” NCNA, 19 06 1956Google Scholar, in Current Background, No. 407 (1956), p. 15.Google Scholar

27. Ibid. The argument that construction of local industries was neglected during the First Plan period might appear to contradict the high growth rate assigned this sector by the Plan. But most of this growth was to be derived from existing enterprises on the basis of minimal capital investment. In general, about 70 per cent, of the increase in industrial value product over the Plan period was to come from existing enterprises (FFYP, p. 51)Google Scholar, rather than new or reconstructed ones, and much of this 70 per cent was concentrated in the local sector where excess capacity was common.

28. Donnithorne, Audrey, China's Economic System (New York, 1967), Chs. 17 and 18Google Scholar. Although Mao Tse-tung was later credited with initiating, with his speech “On the Ten Great Relationships” in 04 1956Google Scholar, the stress on local industries that was to characterize the Great Leap Forward, available texts of this speech contain no reference to such industries per se, but urge that local authority and responsibility in general be increased relative to that of the centre (Chen, Jerome (ed.), Mao (Engelwood Cliffs, New Jersey, 1969), pp. 74–76).Google Scholar

29. These percentages are calculated from the state budgets for various years, presented each year by the Minister of Finance.

30. Hsien-nien, Li, “Report on the State Final Accounts for 1955 and the State Budget for 1956,” Current Background, No. 392 (1956), p. 13.Google Scholar

31. En-lai, Chou, “Report on the Second Five Year Plan,” Current Background, No. 413 (1956)Google Scholar. Other statements urging increased attention to small industry in 1956 also were made in this context. See, for example, Yun, Ch'en, “New Problems in the Transformation of Industry and Commerce,” Current Background, No. 416 (1956), p. 17.Google Scholar

32. I-po, Po, “Working of the National Economic Plan for 1956 and Draft Economic Plan for 1957,” Current Background, No. 465 (1957).Google Scholar

33. In April, the National Economic Commission decided to allot over Y11 million to 19 provinces for construction or renovation of small coal pits, and over Y12 million for developing local blast furnaces and iron mines in 14 provinces. Matching funds of over Y80 million were added by various provinces and muncipalities. The resulting production of pig-iron was earmarked for agricultural implements (NCNA, 12 04 1957Google Scholar, in SCMP, No. 1517, p. 13)Google Scholar. In August, the Ministry of Metallurgical Industry announced the development of a plan for establishing 18 small- and medium-sized iron and steel plants in as many provinces, autonomous regions and municipalities (JMJP, 19 08 1957Google Scholar, in SCMP, No. 1602, p. 17)Google Scholar. In December, the Ministry of Electric Power reported on the acceleration in the growth of small power stations under local authorities, designed to provide electricity to local industry, irrigation and lighting (NCNA, 12 12 1957Google Scholar, in SCMP, No. 1673, p. 30).Google Scholar

34. The industries involved included mining and extracting of ferrous and non-ferrous metals, coal mining and dressing, chemical fertilizers, synthetic oil, electric power, paper and rubber production, cement kilns, machine repair shops, textile mills, printing and dyeing factories, and establishments for processing various types of agricultural products (NCNA, 19 03 1958Google Scholar, in SCMP, No. 1739, p. 5).Google Scholar

35. Tang, Anthony, “Policy and Performance in Agriculture,” Economic Trends, p. 80Google Scholar; Chen, , Chinese Economic Statistics, p. 403.Google Scholar

36. Tang, , in Economic Trends, pp. 80–81.Google Scholar

37. In addition, of course, the leadership was much concerned at this time with the bureaucratic and unwieldy character of the industrial planning and control system, a concern which increased the attractiveness of the second alternative. See Donnithorne, , China's Economic System.Google Scholar

38. Tung, Shih, “Correctly Understand the Policy of Industralization of People's Communes,” Shih-shih shou-ts'e (Current Events), No. 24 (21 12 1958, in Extracts from China Mainland Magazines (Hong Kong) (ECMM), No. 160).Google Scholar

39. Shih, Chao, “Research on the Direction of Development of Commune Industry in the Rural People's Communes,” CCYC, 07 1961.Google Scholar

40. Ming-sheng, Wen, in NF, 4 05 1958.Google Scholar

41. See above, p. 247.

42. See, e.g., Chün-chieh, Liu, “Ta-li pan-hao kung-she kung-yeh” (“Run Commune Industry Energetically and Well”), Kuang-chou jih-pao, 10 01 1959Google Scholar; NCNA, 28 01 1959Google Scholar, in SCMP, No. 1948, pp. 22–23Google Scholar; NF, 22 02 1959Google Scholar, article on Hua, hsienGoogle Scholar; Ch'eng-jui, Li and Ch'un-t'ai, Tso, “Commune Industry: Its Construction, Consolidation and Development,” Hung-ch'i (HC), No. 8 (04 1961)Google Scholar, in Survey of China Mainland Magazines (SCMM) (Hong Kong: U.S. Consulate General), No. 260Google Scholar; Shih, Chao, in CCYC, 07 1961Google Scholar, Tzu-yang, Chao, “Let the Whole People Develop Agriculture Energetically,” JMJP, 23 07 1960Google Scholar, in SCMP, No. 2319.

43. Shih, Chao, in CCYC, 07 1961.Google Scholar

44. Ch'eng-jui, Li and Ch'un-t'ai, Tso, in HC, No. 8 (04 1961).Google Scholar

45. Shih, Chao, in CCYC, 07 1961.Google Scholar

46. The 1959 figure apparently, and the 1960 figure definitely, exclude units operated by the production brigades and teams below the commune level.

47. Ch'eng-jui, Li and Ch'un-t'ai, Tso, in HC, No. 8 (04 1961).Google Scholar

48. Shih, Chao, in CCYC, 07 1961.Google Scholar

49. Ibid. and Ch'eng-jui, Li and Ch'un-t'ai, Tso, in HC, No. 8 (04 1961)Google Scholar. It should be repeated that, in view of the well-known statistical problems of 1958, any such estimate should be treated with great caution.

50. Shih, Chao, in CCYC, 07 1961.Google Scholar

51. Donnithorne, , China's Economic System, pp. 391–392, 476.Google Scholar

52. NF, 22 02 1959Google Scholar (article on Hua hsien). For other examples of such criticism, see NF, 16 08 1960Google Scholar (article on Hsin-hua Commune, Hua hsien), p. 2; Kuang-tung ch'ing-nien pao, 26 01 1961Google Scholar; NF, 7 09 1961 and 2 December 1961Google Scholar; NF editorial, 7 04 1962Google Scholar, in SCMP, No. 2750, p. 4.Google Scholar

53. I deliberately avoid putting the question in terms of “material” versus “non-material” incentives, for elements of material incentives are clearly present in the “Maoist” approach, although they are not intended to operate through the market or on an individual basis. For a good discussion of this point, see Gray, Jack, “The Economics of Maoism,” Bulletin of the Atomic Scientists, 02 1969.Google Scholar

54. “Yung liang-t'iao t'uei tsou-lu” (“Walk on two legs”), Ta kung pao (Peking), 18 05 1959, p. 3.Google Scholar

55. This list was made from material summarized in SRI, “Notes on Small Industry and Handicraft Development in Mainland China, 1952–1958,” Miscellaneous Paper No. 2, 12 1958, pp. 15–19.Google Scholar

56. See, e.g., Aubrey, Henry, “Small Industry in Economic Development,” Social Research, 09 1951.Google Scholar

57. United Nations Industrial Development Organization (UNIDO), “Plant Size and Economies of Scale,” Industrialization and Productivity, No. 8 (1964).Google Scholar

58. Kojima, Reiitsu, “Self-Sustained National Economy in Mainland China,” The Developing Economies, 03 1967.Google Scholar

59. See, for example, Ta kung pao, 15 05 1959, p. 3Google Scholar; and “Explanations of Term ‘Native Equipment,’” Chi-hua yü t'ung-chi (Planning and Statistics), No. 8 (23 03 1959), p. 37.Google Scholar

60. Ch'eng-jui, Li and Ch'un-t'ai, Tso, in HC, No. 8 (04 1961).Google Scholar

61. Ibid.

62. For one example, see NF, 8 06 1961, p. 1Google Scholar, in which all of the industrial enterprises of a commune are described as previously having been handicraft co-operatives or co-operative small groups.

63. Preobrazhensky, E. A., The New Economics (Oxford, 1965), p. 84Google Scholar. (Originally published in Russian in 1926.)

64. For comparison of China with eighteenth-century England in this regard, see Eckstein, , “The Economic Heritage,” in Eckstein, Galenson and Liu (eds.), Economic Trends in Communist China, pp. 79–80.Google Scholar For comparison with the U.S.S.R. on the eve of its FFYP, see Eckstein, , Communist China's Economic Growth and Foreign Trade (New York, 1966), pp. 17–19Google Scholar. See also Ishikawa, Shigeru, Economic Development in Asian Perspective (Tokyo, 1967), Ch. 1Google Scholar; and Kuznetz, Simon, “Present Underdeveloped Countries and Past Growth Patterns,” in Nelson, E. (ed.), Economic Growth: Rationale, Problems, Cases (Austin, Tex., 1960)Google Scholar. It should be pointed out that “margin of subsistence” is not a very precise concept.

65. Ishikawa, , Economic Development in Asian Perspective, Ch. 4.Google Scholar

66. According to one source, handicrafts in 1962 accounted for 67 per cent, of “goods for production and livelihood” sold by the supply and marketing co-operatives, the main organs of rural commerce. Over 80 per cent. of small farm tools were reported to be made by handicraftsmen. See Hu, and Yuan, , “A Discussion of Handicraft Industry and its Economic Forms,” CCYC, No. 7 (1962), p. 5Google Scholar; also JMJP editorial, 7 10 1963, p. 1Google Scholar. Both are cited in Donnithorne, , China's Economic System, p. 220.Google Scholar

67. Donnithorne, , China's Economic System, p. 224.Google Scholar

68. For examples of criticisms of this disruption, see JMJP, 30 06 1959Google Scholar, in SCMPs, No. 2051, p. 27Google Scholar; Yang-ch'eng wan-pao, 18 07 1962, p. 1.Google Scholar

69. JMJP, 30 06 1959Google Scholar, in SCMP, No. 2051.

70. For examples, see NF, 31 08 1960Google Scholar, in SCMP, No. 2365; NF, 30 06 1961Google Scholar; JMJP, 4 07 1961Google Scholar, in SCMP, No. 2538. See also “Nung-tsun jen-min kung-she kung-tso t'iao-li hsiu-cheng ts'ao-an,” (“Revised Work Regulations for Rural People's Communes,”) 09 1962Google Scholar, Article 14, which stresses that “the commune management committee should actively promote the development of handicraft production,” and that rural handicraft producer co-operatives and co-operative small groups “are independently managed units, receiving joint leadership from the hsien association of handicraft co-operatives and the commune.” Article 12 of the Seventy Articles of Industrial Policy, adopted in 12 1961Google Scholar, directed that “all factories amalgamated in 1958 from producer co-operatives to local state operation, excepting those to which special conditions apply, will bit by bit [fen-p'i fen-ch'i], gradually revert to producer co-operatives.”

71. About two million workers were shifted out of agriculture over the period between the iron and steel movement of autumn 1958 and the middle of 1960, comprising nearly one million transferred to industrial enterprises at the hsien level and above, and over one million moved into commune extractive, processing and manufacturing activities (Tzu-yang, Chao, “Let the Whole People Develop Agriculture Energetically,” JMJP, 23 07 1960 in SCMP, No. 2319)Google Scholar. Two million is also the number of workers reported transferred to the production teams from “various fronts” and from commune and brigade enterprises, in late 1960 (Yü, Ch'en, “Report on Work of the Third Session of the Second Kwangtung Provincial People's Congress (Excerpts),” NF, 4 12 1960Google Scholar, in SCMP, No. 2419).

72. The persistence of this dependence upon redistribution is reminiscent of William Hinton's village of “Long Bow,” whose inhabitants remained obsessed with hunting buried landlord wealth long after returns from such hunts had diminished drastically. See Hinton, 's Fanshen (New York, 1966), Chs. 21, 22.Google Scholar

73. See above.

74. Tang, , in Eckstein, , Galenson, and Liu, (eds.). Economic Trends in Communist China.Google Scholar

75. Stalin, , Sochineniya, 13 vols. (Moscow, 1946–1951), Vol. IX, p. 120Google Scholar, quoted in Erlich, Alexander, The Soviet Industrialization Debate, 1924–1928 (Cambridge, Mass., 1960), p. 96.CrossRefGoogle Scholar

76. Dobb, Maurice, Soviet Economic Development Since 1917, revised edition (New York, 1966), pp. 240Google Scholar; 483. Stalin called attention to this change of conditions in 1931.

77. Kojima, , in The Developing Economies, 03 1967, pp. 53–54.Google Scholar

78. Thus, Ishikawa makes the high income elasticity of demand for consumption goods a major parameter in his analysis of the Asian development problem. See his “Resource Flow Between Agriculture and Industry: The Chinese Experience,” in The Developing Economies, 03 1967.Google Scholar

79. See “China's Road of Socialist Industrialization,” by the Writing Group of the Peking Municipal Revolutionary Committee, in Peking Review, No. 43 (24 10 1969), pp. 7–13.Google Scholar

80. The approach described in the above three paragraphs has been most clearly stated in various issues of the journal Nung-yeh chi-hsieh chi-shu (Agricultural Machine Technology). See especially No. 5 (8 August 1967), an article entitled “Completely Settle the Heinous Crimes of China's Khrushchev and Company in Undermining Agricultural Mechanization,” in SCMM, No. 610, pp. 17–32Google Scholar; and No. 6, 18 September 1967, article entitled “Wipe Out State Monopoly and Promote Mechanization on the Basis of Self-Reliance in a Big Way,” in SCMM, No. 610, pp. 10–16Google Scholar. See also “Achieve Greater, Faster, Better and More Economical Results in Developing Local Industry,” in HC, No. 6 (1970)Google Scholar; MacDougall, Colina, “Pie in the Sky,” The Far Eastern Economic Review, 26 06 1969, pp. 706–708.Google Scholar

81. Cf. Douglas Fisher's conclusion: “Here, then, is the place of small industries in Indian policy, for it is clearly desired to have a new class of entrepreneur in India, and the diffusion of small units is especially suitable in this respect” (in Hoselitz, (ed.), The Role of Small Industry, p. 137)Google Scholar. Fisher, after surveying various theoretical justifications for the development of small industry, concludes that the “Myrdalian diffusion thesis,” which has much in common with Chinese policy as described above, offers “the best general explanation of the growth process involved” (ibid. p. 148, emphasis in the original).

82. The emphasis on human capital is particularly clear in “Achieve Greater, Faster, Better and More Economical Results in Developing Local Industry,” HC, No. 6 (1970), p. 84.Google Scholar

83. “Completely Settle the Heinous Crimes,” Nung-yeh chi-hsieh chi-shu, No. 5 p. 19Google Scholar. “Wo-kuo she-hui-chu-i nung-yeh ti fa-chan tao-lu” (The path of development for China's socialist agriculture”), HC, No. 2 (1970), p. 12Google Scholar: “only the gradual implementation of agricultural mechanization…can greatly raise labour productivity, progressively solve the problem of linking the development of agriculture with the development of industry, and progressively consolidate the worker-peasant alliance.”

84. It is still held that heavy industry must get priority, but that the correct way to do this is to increase development efforts in agriculture and light industry so as to satisfy the demands of the people for consumer goods, and provide raw materials and funds for heavy industry as well as markets for its products. See “China's Road of Socialist Industralization,” in Peking Review. No. 43, pp. 11–12.Google Scholar

85. Tzu-yang, Chao, in JMJP, 23 07 1960, p. 7 ff.Google Scholar

86. “Sheng kung-yeh pu-men chih-yuan-le nung-yeh yu ch'iang-ta tzu-chi” (“Provindal industrial departments aid agriculture, strengthen themselves”), NF, 30 06 1964, p. 1.Google Scholar

87. NCNA (English) (Peking), 9 01 1962Google Scholar, in SCMP, No. 2658, p. 25.Google Scholar

88. The quotation continues: “Where conditions permit, coordination zones, and then provinces, should establish relatively independent but varied industrial systems.” The translation is from “China's Road of Socialist Industrialization,” in Peking Review, No. 43.Google Scholar

89. Ta kung pao (Hong Kong English Language Weekly Supplement), 24 04 1969.Google Scholar

90. See Ming-sheng, Wen, “Go all out, aim high, faster, better, more economically, strive to realize the industrialization and agricultural mechanization of our province,” NF, 14 05 1958.Google Scholar

91. Some additional recent descriptions of small industrial development: “Development of small factories in Hopei,” Ta kung pao (Hong Kong, English) (TKPHKE), 21 08 1969Google Scholar, “Small Industries Flourish,” TKPHKE, 13 11 1969 (re: Honan Province)Google Scholar; “Kwangsi Industry Grows,” TKPHKE, 4 12 1969Google Scholar; “Farm-machinery Plants Mushroomed,” TKPHKE 18 12 1969Google Scholar (re: Ninghsia Hui Autonomous Region and Kiangsu Province); “Small Hsien Enterprises Play a Big Role in China,” NCNA (Canton), 11 04 1966Google Scholar, in SCMP, No. 3678, pp. 20–21Google Scholar (re: Tung-kuan hsien, Kwangtung); Chung-kuo hsin-wen, 27 10 1964Google Scholar (re: Hsin-hui hsien, Kwangtung); TKPHKE, 4 09 1969, p. 4Google Scholar (article on Chao-tung hsien, Heilungkiang); “Heilungkiang County Develops Small Local Industries,” broadcast monitored by FBIS, Daily Report, Communist China, Vol. I, No. 118 (18 06 1970)Google Scholar (Hai-lun hsien); TKPHKE, 11 09 1969Google Scholar (article on Yi-cheng hsien, Shansi); “Achieve Greater, Faster, Better and More Economical Results in Developing Local Industry,” HC, No. 6 (1970)Google Scholar (re: Heilungkiang Province); “Pan-hao ‘hsiao hua-fei’” (“Handle ‘small chemical fertilizer’ well”), HC, No. 12 (1969) (Shanghai area).Google Scholar

92. Kojima, , in The Developing Economies, 03 1967, p. 64.Google Scholar

93. For earlier discussions of the role of small-scale plants in the fertilizer industry, see Close, Alexandra, “Down to Earth,” The Far Eastern Economic Review, 8 12 1966, pp. 517–522Google Scholar; MacDougall, Colina, “Fertilizer Drive,” The Far Eastern Economic Review, 1 07 1965, pp. 14–16Google Scholar; and Kojima, , in The Developing Economies, 03 1967, p. 61Google Scholar. Perhaps because of the speed with which small-scale production was said to be growing in the period 1965–69, the estimates made by these authors of the proportion of nitrogenous fertilizer production originating in small or medium plants as of 1965 are considerably smaller than the figure cited above, although at 10–11 per cent. still substantial.

94. TKPHKE, “Small Nitrogenous Fertilizer Plants Spring Up,” 17 04 1969, p. 5.Google Scholar

95. Donnithorne, , China's Economic System, pp. 133–134Google Scholar. Some recent accounts of the development of local power production can be found in Peking Review, No. 41 (10 10 1969), pp. 36, 39Google Scholar; TKPHKE, 22 05 1969, p. 5Google Scholar; TKPHKE, 26 06 1969, p. 5Google Scholar. It is relevant here to note the claims of large increases in the production of power machinery for irrigation. Measured in horsepower, output of such machinery was reported by 1965 to have grown to 23 times its 1956 level (TKPHKE, 13 04 1966, p. 3).Google Scholar

96. Donnithorne, , China's Economic System, pp. 133–134Google Scholar. Recent reports, however, refer to construction of power stations with capacities of only a few kilowatts. See, e.g., NCNA broadcast, 17 07 1970Google Scholar, in FBIS, Vol. I, No. 140 (21 07 1970), pp. B2–B4.Google Scholar

97. One's confidence in the technology employed in these plants is strengthened by United Nations reports of a breakthrough in the technology of producing synthetic ammonia on a very small scale (UNIDO, Industrialization and Productivity, No. 7 (1964))Google Scholar. The Chinese claim to have pioneered the technology, asserting that “there is no precedent in other parts of the world for the production of synthetic ammonia in small factories” (NCNA, 7 06 1966)Google Scholar. Indeed, they were describing such factories as early as December 1959 (Hua-hsueh kung-yeh (Chemical Industry), No. 21 (6 11 1959), p. 15)Google Scholar and their scale seems somewhat smaller than that of the plants described in the above UNIDO bulletin.

98. The development of technologies which do not reflect the relative factor availabilities in advanced, industrial countries, demands a large measure of inventiveness and creativity from technical workers. The line between “rightists” and “revolutionaries” among Chinese engineers, designers and technicians seems to be drawn in part according to their attitude towards such intermediate technologies, at variance with inherited professional knowledge but adapted to Chinese conditions.

99. There has been some dispute about the method of rationalization: e.g., large-scale vs. small-scale, relatively comprehensive production vs. relatively specialized, etc.

100. “The Peng Chen Counterrevolutionary Clique's Crime is Most Heinous,” Nung-yeh chi-hsieh chi-shu, No. 6 (18 09 1967)Google Scholar, in SCMM, No. 610, p. 7Google Scholar. Also “Wipe Out State Monopoly,”, No. 6, in SCMM, No. 610, p. 15.Google Scholar

101. “Wipe Out State Monopoly,” in SCMM, No. 610, pp. 14–16.Google Scholar