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2.- The relationship between coastal industry|
and industry in the interior.
It is correct to develop industry in the interior. This is of primary
importance. But it is necessary to look after the coastal regions.
On this question we have no made big or fundamental mistakes, yet
we have a few weaknesses. In the past few years we have not laid enough
stress on industry in the coastal regions. I think we should make some
How much of the industry, heavy and light, which we had at the outset,
was in the coastal regions, these being taken to include Liaoning,
Jobei, Beijing, Eastern Henan, Shandong, Anhui, Jiangsu, Shanghai,
Zhejiang, Fujian, Guangdong, Guangxi? Seventy per cent of all our
industry is in these coastal regions, and seventy per cent of our heavy
industry. Only thirty per cent is in the interior. It would be quite
wrong not to take account of this fact, not to give proper weight to
coastal industry, and not to utilize its productive power to the full.
We must do our utmost and use all our available time to enable the
industry of the coastal regions to develop.
I am not saying that all our new factories should be built in the
coastal regions. More than ninety per cent of them should be built in
the interior. But some can be built in the coastal regions. For example,
the Anshan steel mills and the Fushun coal mines are in the coastal
regions; Dairen has its shipbuilding, T'angshan has its iron and steel
and building-material industries. T'angku has its chemical industry.
Tientsin its iron and steel and machine industries. Shanghai has its
machine and shipbuilding industries. Nanjing has its chemical industry,
and there is industry in many other places. Now we are planning to
produce synthetic petroleum at Maoming in Guangdong province, where
there is oil-shale. This is also heavy industry.
In future the greater part of heavy industry -ninety per cent or perhaps
still more- should be set up in the interior so that industry may become
more evenly distributed and rationally sited over the whole country.
There is no doubt at all about that. But a proportion of heavy industry
must still be constructed or expanded in the coastal regions.
Our old industrial base is mainly in the coastal regions. If we do not
pay attention to industry in the coastal regions this will be to our
On the other hand, if we make full use of the capacity both in plant and
technology of coastal industry and develop it properly, then we shall
have all the more strength to develop and maintain industry in the
interior. It is wrong to adopt a negative attitude towards coastal
industry. This will not only hinder the full utilization of coastal
industry, it will also hinder the rapid development of industry in the
We all desire to develop industry in the interior. The question is only
whether your desire is genuine or not. If your desire is genuine and you
are not just pretending, then you must make more use of the industry of
the coastal regions, and build more )industry in the coastal regions,
especially light industry.
In the light of available information, industrial plan can be constructed
very quickly in some light industries. After going into production and
developing their productive capacity they can recoup their capital
outlay within one year. Hence within five years they can build three or
four new factories in addition to the original one. In some cases they
will be able to build two or three new factories, in other cases one new
factory. At the very least they can build half a new factory. This
provides further demonstration of the importance of utilizing coastal
In our long-term plans we have a shortage of 400,000 technical cadres.
These can be provided by training workers and technicians from the
coastal industries. Technical cadres do not need to come from literary
families. Gorki only had two years of elementary schooling. Lu Hsun was
not a university graduate. In the old society he could only be a
lecturer, not a professor. Comrade Hsiao Ch'u-nu never went to school at
all. You must realize that skilled workers have learned through
practical experience and can make very good technical cadres.
The technical level of coastal industry is high, the quality of its
products good, its costs low, and it produces many new products. Its
development has a stimulating effect on the technical level and quality
of national industry as a whole. We must be fully aware of the
importance of this question.
In short if we do not develop light industry we cannot develop heavy
industry. If we do not utilize the industry of the coastal regions we
cannot establish industry in the interior. We must not simply maintain
coastal industry. We must also develop it where appropriate.
3.- The relationship between economic construction
and defence construction.
We cannot do without defence. Would it be a good idea to demobilize all
our troops? No, it would not, because we still have enemies. These
enemies are 'containing' us. Haven't they got us encircled?
We already have quite considerable defence forces. After the war to
resist America and support Korea, our armies grew even stronger. Our
defence industry is in process of being built up.
Since P'an Ku separated heaven and earth, we have never been able to
manufacture automobiles or aeroplanes. Now we are beginning to be able
to do both. Our motor industry started with the manufacture of lorries,
not cars. So each day we have to come to our meetings in foreign cars.
We want to be patriotic, but we have to be patient. Roll on the day when
we can come to meetings in our own cars!
We still do not have atomic bombs, but in the past we didn't have
aeroplanes or big guns either. We defeated the Japanese invaders and
Chiang Kai-shek with millet and rifles. We are already pretty strong and
will be stronger in future.
A reliable way of ensuring this is to lay down appropriate ratios for
military expenditure, so that it is reduced step by step to about twenty
per cent of the state budget, while expenditure on economic construction
is increased so that it can develop more and faster. On such a basis
defence construction can make still greater progress, and in the
not-too-distant future we shall have not only many aeroplanes and guns,
but also our own atomic bombs.
Do you genuinely want atomic bombs? If you do, you must decrease the
proportion of military expenditure and increase economic construction.
Or do you only pretend to want them? In that case you will not decrease
the proportion of military expenditure, but decrease economic
construction. Which is the better plan? Will everybody please study this
question: it is a question of strategic policy.
In 1950 at the Third Plenum of the Seventh Central Committee, the
question of streamlining the state organs and decreasing military
expenditure was raised. Moreover it was considered as one of the three
preconditions for achieving a fundamental turn for the better in our
financial and economic situation.
But during the period of the first five-year plan, military expenditure
made up thirty-two per cent of the state's expenditure. That is to say,
one third of the expenditure was for non-productive purposes. This
proportion is too high. In the second five-year plan, we must find a
means of reducing this proportion in order to make more funds available
for economic and cultural[educational][R.R.] construction.