The plenary session discussed arrangements for the national economic plans for 1979 and 1980 and approved them in principle, and proposed that the State Council submit them after revisions to the Second Session of the National　People's Congress to be held next year for discussion and adoption. The session feels that these arrangements are both forward-looking and feasible. The session points out that the restoration and development of our national　economy since the downfall of the "gang of four" has been very rapid, and that there have been marked increases in total industrial and　agricultural output value and revenue in 1978. But it has to be noted that due to sabotage by Lin Piao and the "gang of four" over a long　period there are still quite a few problems in the　national economy, some major imbalances have　not been completely changed and some disorder　in production, construction, circulation and distribution has not been fully eliminated. A　series of problems left hanging for years as regards the people's livelihood in town and　country must be appropriately solved. We must　conscientiously solve these problems step by　step in the next few years and effectively　achieve a comprehensive balance, so as to lay a solid foundation for rapid development. We　must make concentrated efforts within the　limits of our capabilities to carry out capital　construction actively and steadily and not rush things, wasting manpower and material.

The session points out that one of the　serious shortcomings in the structure of economic management in our country is the over concentration of authority, and it is necessary boldly to shift it under guidance from the leadership to lower levels so that the local authorities and industrial and agricultural enterprises will have greater power of decision in　management under the guidance of unified state planning; big efforts should be made to simplify bodies at various levels charged with economic administration and transfer most of their　functions to such enterprises as specialized companies or complexes; it is necessary to act firmly in line with economic law, attach importance　to the role of the law of value, consciously combine ideological and political work with economic methods and give full play to the enthusiasm of cadres and workers for production; it is necessary, under the centralized leadership of the Party, to tackle conscientiously the failure to make a distinction between the Party, the government and the enterprise and to put a stop to the substitution of Party for government and the substitution of government for　enterprise administration, to institute a division of responsibilities among different levels, types of work and individuals, increase the authority and responsibility of administrative bodies and managerial personnel, reduce the number of　meetings and amount of paper work to raise　work efficiency, and conscientiously adopt the　practices of examination, reward and punishment, promotion and demotion. These measures will bring into full play the initiative, enthusiasm and creativeness of four levels, the central departments, the local authorities, the　enterprises and the workers, and invigorate all branches and links of the socialist economy.

The session discussed in detail questions in agriculture, and agreed to distribute to the provinces, municipalities and autonomous regions for discussion and trial use the Decisions of　the Central Committee of the Communist Party　of China on Some Questions Concerning the Acceleration of Agricultural Development　(Draft) and the Regulations on the Work in　the Rural People's Communes (Draft for Trial　Use).

The plenary session holds that the whole　Party should concentrate its main energy and　efforts on advancing agriculture as fast as possible because agriculture, the foundation of the　national economy, has been seriously damaged　in recent years and remains very weak on the whole. The rapid development of the national economy as a whole and the steady improvement in the living standards of the people of　the whole country depends on the vigorous restoration and speeding up of farm production, on resolutely and fully implementing the policy of simultaneous development of farming, forestry, animal husbandry, side-occupations　and fisheries, the policy of taking grain as the key link and ensuring an all-round development, the policy of adaptation to local conditions and appropriate concentration of certain　crops in certain areas, and gradual modernization of farm work. This requires first of all　releasing the socialist enthusiasm of our country's several hundred million peasants, paying　full attention to their material well-being economically and giving effective protection to　their democratic rights politically. Taking this as the guideline, the plenary session set forth a series of policies and economic measures aimed at raising present agricultural production. The most important are as follows: The right　of ownership by the people's communes, production brigades and production teams and their　power of decision must be protected effectively by the laws of the state; it is not permitted to commandeer the manpower, funds, products and material of any production team; the economic organizations at various levels of the people's commune must conscientiously implement the socialist principle of "to each according to his work," work out payment in accordance　with the amount and quality of work done, and　overcome equalitarianism; small plots of land for private use by commune members, their　domestic side-occupations, and village fairs are necessary adjuncts of the socialist economy, and must not be interfered with; the people's communes must resolutely implement the system of　three levels of ownership with the production team as the basic accounting unit, and this　should remain unchanged. Organizations at　various levels of the people's commune must　firmly carry out democratic management and　election of cadres and make public their accounts. The session holds that, for a fairly long period to come, the national figures for the agricultural tax and the state purchase of grain　will continue to be based on the five-year quotas 1971-75 and that grain purchase must never be excessive. To reduce the disparity in　prices between industrial and agricultural products, the plenary session suggests that the　State Council make a decision to raise the grain purchase price by 20 per cent, starting in 1979　when the summer grain is marketed, and the　price for the amount purchased above the quota　by an additional 50 per cent, and also raise the purchase price for cotton, oil-bearing and　sugar crops, animal by-products, aquatic and　forestry products and other farm and side-line products step by step, depending on the concrete conditions. The factory price and the　market price of farm machinery, chemical　fertilizer, insecticides, plastics and other　manufactured goods for farm use will be cut by 10 to 15 per cent in 1979 and 1980 on the basis of reduced cost of production, and these　benefits will in general be passed on to the peasants. After the purchase price of　farm produce is raised, the urban workers must be guaranteed against a fall in their living　standards. The market price of all food grain　will remain unchanged, and the selling price　of other farm products needed for daily life　must also be kept stable; if some prices have to be raised, appropriate subsidies will be given to the consumers. The plenary session also discussed the strengthening of education in agricultural science, the drafting of regional programmes for developing agriculture, forestry　and animal husbandry, the establishment of　modern farming, forestry, livestock-breeding and fishing centres, the active expansion of rural industry and side-occupations run by people's communes and production brigades and other important questions, and decided upon relevant measures.

The plenary session points out that it is imperative to improve the livelihood of the people in town and country step by step on the basis of the growth of production. The bureaucratic attitude of paying no attention at all to urgent problems in the people's livelihood must be resolutely opposed. On the other hand, since our economy is still very backward at present, it is impossible to improve the people's livelihood very rapidly and it is essential to keep　the people informed on the relevant state of affairs and to intensify education in the revolutionary ideas of self-reliance and hard struggle among the youth and other sectors of the people, and leading comrades at all levels must make themselves exemplars in this regard.

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The session had a serious discussion on　some major political events which occurred during the Great Cultural Revolution and certain　historical questions left over from an earlier　period. It holds that satisfactory settlement of these questions is very necessary for consolidating stability and unity, facilitating the shift in the focus of the work of the whole Party and　getting the whole Party, the whole army and the people of all our nationalities to unite as one and to look forward so as to mobilize all positive factors to work for the four modernizations.

The session points out that in 1975, in the period when Comrade Teng Hsiao-ping was entrusted by Comrade Mao Tsetung with the responsibility of presiding over the work of the Central Committee, there were great achievements in all fields of work, with which the whole Party, the whole army and the people throughout the country were satisfied. In accordance with Comrade Mao Tsetung's instructions, Comrade Teng Hsiao-ping and other leading comrades of the Central Committee waged　tit-for-tat struggles against interference and　sabotage by the "gang of four." The gang arbitrarily described the political line and the achievements of 1975 as a "Right-deviationist　wind to reverse correct verdicts." This reversal　of history must be reversed again. The session points out that the Tien An Men events of April　5, 1976, were entirely revolutionary actions. The great revolutionary mass movement, which　unfolded around the Tien An Men events and in which millions upon millions of people in all parts of the country expressed deep mourning for Comrade Chou En-lai and indignantly condemned the "gang of four," provided the mass　base for our Party's success in smashing the　"gang of four." The plenary session decided to cancel the erroneous documents issued by the　Central Committee in regard to the movement　"to oppose the Right-deviationist wind to　reverse correct verdicts" and the Tien An Men　events.

The session examined and corrected the erroneous conclusions which had been adopted on Peng Teh-huai, Tao Chu, Po I-po, Yang Shangkun and other comrades, and affirmed their contributions to the Party and the people. It points out that historical questions must be settled in accordance with the principle consistently advocated by Comrade Mao Tsetung, that is, seeking truth from facts and correcting mistakes whenever discovered. Only by firmly rejecting false charges, correcting wrong sentences and rehabilitating the victims of frame ups can the unity of the Party and the people be consolidated and the high prestige of the Party and Comrade Mao Tsetung upheld. This task must be fulfilled resolutely without any relaxation after the mass movement to expose and criticize the "gang of four" ends. The session unanimously agrees that the adoption of these steps is in itself an example of grasping the scientific system of Mao Tsetung Thought comprehensively and accurately and holding high the banner of Chairman Mao.

The session holds that the past practice of setting up special-case groups to examine cadres without Party and mass supervision had great disadvantages and must be abolished once and for all.

The session held a serious discussion on the question of democracy and the legal system. It holds that socialist modernization requires centralized leadership and strict implementation of various rules and regulations and observance　of labour discipline. Bourgeois factionalism and anarchism must be firmly opposed. But　the correct concentration of ideas is possible　only when there is full democracy. Since for　a period in the past democratic centralism was　not carried out in the true sense, centralism　being divorced from democracy and there being too little democracy, it is necessary to lay particular emphasis on democracy at present, and　on the dialectical relationship between democracy and centralism, so as to make the mass　line the foundation of the Party's centralized leadership and the effective direction of the organizations of production. In ideological and　political life among the ranks of the people, only democracy is permissible and not suppression or persecution. It is essential to reiterate　the "principle of three nots": not seizing on others' faults, not putting labels on people and　not using the big stick. Leadership at all levels　should be good at concentrating the correct　ideas of the masses and making appropriate　explanation and persuasion in dealing with　incorrect ideas. The constitutional rights of citizens must be resolutely protected and no one　has the right to infringe upon them.