¹ Po, I-po, “The Socialist Industrialisation of China [written for Cuba Socialista of Cuba],” Peking Review, No. 41, 10 11, 1963.Google Scholar

² “Continue Striving for the Construction of an Independent, Comprehensive and Modern National Economic System,” People's Daily editorial, 12 4, 1963, p. 2Google Scholar; translated in Peking Review, No. 49, 12 6, 1963. It is, of course, possible that the country is self-sufficient because of a drastic reduction in consumption.Google ScholarPubMed

³ “Press Communiqué of National People's Congress,” People's Daily, 12 4, 1963Google Scholar; translated in Peking Review, No. 49, December 6, 1963.Google ScholarPubMed

⁴ “Situation in Industry—Good,” Peking Review, No. 31, August 2, 1963.Google Scholar

⁵ “Press Communiqué …,” op. cit.Google Scholar

⁶ A technical note is in order. The official statistical figures quoted in this paper are taken from Chinese and Russian official publications familiar to all those working in this field of study. They will not be cited in the interest of space. All rouble figures have been converted in terms of the 1961 rouble, which is equivalent to $1·10 or 4·44 roubles of the 1950 variety. The official exchange rate of the yuan is 2·617 to the U.S. dollar, but the market rate in Hong Kong, according to one report, was about 5·5 yuan to the U.S. dollar in 1958, 7·7 in 1959, 7·9 in 1960, and 8·0 in 1961 and 1962.Google Scholar

⁷ People's Daily, 07 7, 1956.Google ScholarPubMed

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⁹ Chou, En-lai, “Report on the Proposal concerning the Second Five-Year Plan (1958–62) for Economic Development,” People's Daily, 09 19, 1956.Google Scholar

¹⁰ Chia, Fu, “On the Growth Rates for the Period of the Second Five-Year Plan,” Chi-hua Ching-chi (Planned Economy), No. 10, 10 23, 1956Google Scholar. Also reprinted in Hsin-hua Pan-yueh-k'an (New China Semi-Monthly), No. 24, 12 21, 1956, pp. 40–42.Google Scholar

¹¹ Li, Fu-ch'un, “On the Achievements of China's First Five-Year Plan and the Tasks and Directions of Socialist Construction in the Immediate Future,” People's Daily, 12 8, 1957. This was a speech given at the Eighth National Congress of All-China Labour Unions.Google Scholar

¹² Liu, Shao-ch'i, “Report on the Work of the Chinese Communist Party's Central Committee to the Second Session of the Party's National Congress,” New China Semi-Monthly, No. 11, 06 10, 1958, pp. 1–11.Google Scholar

¹³ See my volume, The Statistical System of Communist China (Berkeley: University of California Press, 1962), especially Part II.Google Scholar

¹⁴ Ts'ai-cheng (Finance), No. 8, 08 5, 1958.Google Scholar

¹⁵ People's Daily, 03 31, 1960, pp. 2–3.Google ScholarPubMed

¹⁶ People's Daily, 09 27, 1960.Google ScholarPubMed

¹⁷ People's Daily, 01 21, 1961.Google Scholar

¹⁸ Kung, Hsiang-cheng, “Produce More and Better Light Industrial Products for Daily Use,” Red Flag, No. 89–90, 02 10, 1962.Google Scholar

¹⁹ “A Report on World Grain Exports to Red China,” Foreign Agriculture, I, No. 18, 05 6, 1963Google Scholar, and “Australia Sells Communist China more Wheat,” Foreign Agriculture No. 26, 07 1, 1963Google Scholar. These estimates by the United States Department of Agriculture differ somewhat from other estimates, such as those published in this journal; see Barry, Allan J., “The Chinese Food Purchases,” The China Quarterly, No. 11.Google Scholar

²⁰ It has been widely reported that during this period of economic crisis several other policy documents were also issued, namely, “Thirty-five Articles of Handicraft Policy” issued by the State Council in December 1960, and “Sixty Articles of the By-laws (Draft) for Rural People's Communes” and “Seventy Articles of Cultural and Educational Policy” issued by the Party's central authorities in about May 1961. Copies of these have been smuggled out to Hong Kong. The Union Research Institute, for example, has records of them. Extracts have been published in several issues of the Institute's journal, China Weekly.Google Scholar

²¹ Wen, Shih-jun, “Centralise all Effort to Seek Solutions for Industrial Problems,” Red Flag, No. 24, 12 16, 1961.Google Scholar

²² People's Daily, 04 17, 1962, p. 1. The official translation of the ten immediate tasks in Peking Review is too abbreviated to convey the full meaning of the original.Google ScholarPubMed

²³ This seems to imply that official statistics for 1961 and 1962 were not finalised until July 1963.Google Scholar

²⁴ Ta-chung, Liu and Kung-chia, Yeh, The Economy of the Chinese Mainland: National Income and Economic Development, 1933–59 (Santa Monica, California: The RAND Corporation, Memorandum RM-3519-PR, 04 1963), two vols.Google Scholar

²⁵ Alexander, Eckstein, The National Income of Communist China (Glencoe, Illinois: The Free Press, 1961).Google Scholar

²⁶ Hollister, William W., China's Gross National Product and Social Accounts, 1950–57 (Glencoe, Illinois: The Free Press, 1958);Google Scholar also his “Estimates of the Gross National Product [of China], 1958–59,” in Yuan-li, Wu, ed., The Realities of Communist China (Milwaukee, Wisconsin: Marquette University, October 1960). See also his article below.Google Scholar

²⁷ The Economic Potential of Communist China (Menlo Park, California: Stanford Research Institute, Technical Report No. 2, 10 1963), two vols.Google ScholarThe national income estimates given in this work apparently supersede an earlier estimate by Wu, Y. L. which appears in his volume Economic Development and the Use of Energy Resources in Communist China (New York: Praeger, 1963).Google Scholar

²⁸ Kang, Chao, “Indices of Industrial Output in Communist China,” Review of Economics and Statistics, XIV, No. 3, 08 1963. For an estimate by Hung and Wu according to a short-cut method, see their joint article.Google Scholar

²⁹ Thus Lin and Yeh regarded their estimates for 1958–62 as “conjectural.”Google Scholar

³⁰ Discussion of this problem can be found in many publications. See, e.g., my volume Economic Development of Communist China (Berkeley: University of California Press, 1959), pp. 30–35.Google Scholar

³¹ For more details, see Leslie T. C. Kuo's article below. I have commented on the subject in a chapter entitled “Communist China's Economy and its Impact on Afro-Asia,” in Kurt, London, ed., New Nations in a Divided World (New York: Praeger, 1964);Google Scholar a popular version appears as “What Happened to the Great Leap Forward,” Challenge (New York University), XI, No. 10 (07 1963).Google Scholar

³² Lin, I-fu, “Seek all effective Means to Develop fully the Productive Potential in Existing Industrial Enterprises,” Planned Economy, No. 3, 03 9, 1958.Google Scholar

³³ Fang, Chung, “High Speed and the Wavy Course,” Chi-hua yü T'ung-chi (Planning and Statistics), No. 10, 07 23, 1959.Google Scholar

³⁴ Finance, No. 8, 08 5, 1958.Google ScholarPubMed

³⁵ People's Daily, 08 29, 1959.Google ScholarPubMed

³⁶ “Simultaneous Development of Industry and Agriculture is an Important Law in China's Socialist Economy,” Red Flag, No. 22, 11 16, 1960.Google Scholar

³⁷ “Explore the Labor-Supply Potential in the Communes,” People's Daily editorial, 09 27, 1960.Google Scholar

³⁸ Wu et al., Ibid. p. 340, Table 80.

³⁹ See the article by Hung and Wu below.Google Scholar

⁴⁰ For a discussion of return to professionalism, see a later section in this article and also Franz Schurmann's article below.Google Scholar

⁴¹ Hsueh, Mu-ch'iao, Su, Hsing and Lin, Tse-li, The Socialist Transformation of the National Economy of China (Peking: FLP, 1960), p. 256.Google Scholar

⁴² Liang, Ying-yung, “Which is the Correct Road for China's Industrial Leap Forward,” Hsueh-hsi (Study), No. 8, 04 18, 1958.Google Scholar

⁴³ Yen, Chuan and Chiang, Chieh, “Certain Views on Statistical Work for Newly Developed Industries,” T'ung-chi Yen-chiu (Statistical Research), No. 6, 06 23, 1958.Google Scholar

⁴⁴ “Carry out Correctly the Party's Policy and Develop Handicraft Production,” People's Daily, 03 2, 1963.Google Scholar

⁴⁵ Chi, Lung, “Use the Raw Materials for Light Industry and Handicrafts Properly,” People's Daily, 02 21, 1962.Google Scholar

⁴⁶ Chen, Hung-yung, “Planning and Flexibility in Handicraft Production,” Ta Kung Pao, 03 23, 1962.Google Scholar

⁴⁷ Shigeru, Ishikawa, “Choice of Techniques in Mainland China,” The Developing Economics, Preliminary Issue No. 2 (09–12 1962), pp. 23–56. This is a publication of the Institute of Asian Economic Affairs in Tokyo, Japan.Google Scholar

⁴⁸ Liao, Chi-li, “The Double Track System,” Planned Economy, No. 8, 08 1958.Google Scholar

⁴⁹ Wu, Hsia, “Enhance the Nature of Organisation and Planning for Inter-Provincial Economic Co-operation,” Planning and Statistics, No. 6, 04 8, 1959.Google Scholar

⁵⁰ Liao Chi-li, Ibid. “Base-ism” (“Pen-wei chu-i”) refers to the principle of putting the interests of one's own base (workshop, factory, production team, commune, department, hsien, or any other) ahead of and giving them priority over the interests of all others, the national or collective interests in particular.

⁵¹ Ko, Chih-ta and Wang, Cho, “Several Problems of Relationship in Fiscal and Financial Work,” Ta Kung Pao, 11 17, 1961.Google Scholar

⁵² See, e.g., Yang, Ch'un-hsu, “The Problem of Centralisation in Socialist Economic Control,” Ta Kung Pao, 04 11, 1962.Google Scholar

⁵³ See Franz Schurmann's article, especially the section on the rise of regional economies.Google Scholar

⁵⁴ Teng, Hsiao-p'ing, “Report on the Rectification Movement,” People's Daily, 10 19, 1957.Google Scholar

⁵⁵ According to a report published in the People's Daily, 09 27, 1958, a diesel-engine factory in Shanghai had been operating with 133 sets of rules and regulations up to the early part of the year.Google ScholarPubMed

⁵⁶ Li, Ch'un, “Why is it Necessary to Broaden Management of Various Enterprises?” Chung-kuo Kung-jen (Chinese Worker), No. 6, 03 27, 1957.Google Scholar

⁵⁷ Liu, Shao-ch'i, “The Triumph of Marxism-Leninism in China,” People's Daily, 10 1, 1959.Google Scholar

⁵⁸ Li, Pao-k'un, “Problems of Plan Management in Hangchow Machine-Making Factory,” Tsai-cheng Yen-chiu (Financial Research), No. 8, 11 15, 1958.Google Scholar

⁵⁹ Hsu, Hsin-hsueh, “Strengthen further the System of Responsibility in Industrial Enterprises,” Red Flag, No. 20, 10 16, 1961.Google Scholar

⁶⁰ People's Daily, 04 19, 1959.Google ScholarPubMed

⁶¹ Tsao, T'i-chiu, “Mass Movement and Centralised Leadership in Industry,” People's Daily, 10 24, 1959.Google Scholar

⁶² Hsu Hsin-hsueh, Ibid..

⁶³ Li, Fu-ch'un, “Report on the Draft Economic Plan for 1960,” People's Daily, 03 31, 1960.Google Scholar

⁶⁴ Andreyev, I., “Friendship and Co-operation between China and the USSR,” Vneshiaia Torgovlia (Foreign Trade), No. 2, 02 1959.Google Scholar

⁶⁵ “Soviet Technical Assistance to Foreign Countries,” Foreign Trade, No. 6, 06 1961. Aid has also been extended to China in the form of 60 industrial projects by East Germany (41 projects), Czechoslovakia, Poland, Hungary, Rumania and Bulgaria.Google Scholar

⁶⁶ Li, , Choh-Ming, , Economic Development of Communist China, pp. 10–12.Google Scholar

⁶⁷ In addition, 33 of the projects aided by the six Eastern European countries had been completed.Google Scholar

⁶⁸ See supra, 23–24.Google Scholar

⁶⁹ The Tass English translation, published in The New York Times, Western Edition, 07 16, 1963.Google ScholarPubMed

⁷⁰ Sun, Hsiang-ch'ing, “Brilliant Achievements and Selfless Assistance,” Economic Research, No. 11, 11 17, 1959.Google Scholar

⁷¹ About 1,500 specialists had also come from the six Eastern European countries. The services of Soviet specialists were probably paid for with regular Chinese exports to the Soviet Union. In his Ocherki ekonomicheskikh otnoshenii SSSR s Kitaem (Essays in Economic Relations of the USSR with China) (Moscow: Foreign Trade Publishing House, 1957), M. I. Sladkovskii remarked, “China was paying with her commodity exports to the Soviet Union not only for the Soviet exports to China, but also for Soviet technical assistance (survey works, projecting, installation of equipment). This kind of expenses was rapidly increasing, particularly since 1954” (p. 333).Google Scholar

⁷² Fan, Chung, “All-Round Improvement in China's Economy,” Peking Review, No. 34, 08 23, 1963.Google Scholar

⁷³ Presumably a deficit in China's international balance of payments with the Soviet Union since there was a trade surplus of 27·9 million roubles in China's favour for the year.Google Scholar

⁷⁴ Pravda, 04 20, 1963.Google Scholar

⁷⁵ For a year-to-year discussion, see Oleg, Hoeffding, Sino-Soviet Economic Relations, 1958–1962 (Santa Monica, California: The RAND Corporation, 08 1963).Google Scholar

⁷⁶ See his article below. The detailed exposition of his study is given in his Communist China's Foreign Trade: Price Structure and Behavior 1955–1959 (Santa Monica: The RAND Corporation, 10 1963).Google Scholar

⁷⁷ Yang, Ying-chieh, “On the Problem of Comprehensive Balance in National Economic Planning,” Economic Research, No. 73, 11 17, 1962.Google Scholar

⁷⁸ See Leslie T. C. Kuo's article.Google Scholar

⁷⁹ Po I-po, op. cit.Google Scholar

⁸⁰ Yang, Po, “On the Problem of Accumulation and Consumption,” Red Flag, No. 21, 11 1, 1962.Google Scholar

⁸¹ Yang Ying-chieh, op. cit.Google Scholar

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⁸³ Liao, Lu-yen, “Collectivisation of Agriculture in China [written for Cuba Socialista of Cuba],” Peking Review, No. 44, 11 1, 1963.Google Scholar

⁸⁴ Ibid.

⁸⁵ See Hsueh, Mu-ch'iao, “The Law of Value and Our Price Policy,” Red Flag, Nos. 7–8, 04 16, 1963. His underlying viewpoint was that because pricing policy is subjective and man-made while the law of value is objective, “unchangeable at man's will,” the former would have to be adjusted to the latter.Google Scholar

⁸⁶ Editorial, “Continue Striving …,” op. cit.Google Scholar

⁸⁷ “Far Eastern Round-Up,” Far Eastern Economic Review, XIII, No. 42, 10 17, 1963.Google Scholar

⁸⁸ Editorial Departments of People's Daily and Red Flag, “The Origin and Development of the Differences Between the Leadership of the C.P.S.U. and Ourselves,” Peking Review, No. 37, 09 13, 1963, p. 20.Google Scholar

⁸⁹ People's Daily editorial, June 2, 1963; and Red Flag editorial, July 10, 1963.Google Scholar

⁹⁰ “Press Communiqué …,” op. cit.; and editorial, “Continue Striving …,” op. cit.Google Scholar

⁹¹ “Emulating Shanghai,” Peking Review, No. 48, 11 29, 1963.Google Scholar

⁹² Po I-po, op. cit.Google Scholar