Rebirth: I am in Jin-Cha-Ji

A 100-cubic-meter blast furnace, based on current technology, can produce to tons per day, or at least to tons per year. If the blast furnace is used well, the annual output could even reach to tons.

With the current technology of China's steel industry, a 100-cubic-meter blast furnace can be produced independently. With the current local budget, it would be no problem to build a dozen or so small steel mills nationwide within a year or two. The steel market is currently in short supply, so as long as a steel mill is built, it will be profitable.

After making a profit, you can build a second blast furnace and then a third blast furnace, and gradually increase the output of the steel plant.

In order to support the development of the local steel industry, the Ministry of Heavy Industry and the Ministry of Metallurgical Industry jointly organized an expert group and recruited a group of technicians from Anshan Iron and Steel, Xuanwu Iron and Steel, Baotou Iron and Steel, Wuhan Iron and Steel, and Fuzhou Iron and Steel to participate in the technical support of local steel mills.

These expert groups will be organized into several teams, and whenever a local steel mill requires technical support, they will be immediately dispatched. By centralizing a number of technical teams, the technical challenges of blast furnaces of 100, 300, or even 500 cubic meters can be solved. However, many provinces lack this technical expertise, so the central government must fully support the development of the local steel industry at the technical level.

Regarding funding, a three-pronged approach was implemented. First, the Ministry of Finance decided to borrow a special fund from banks totaling 50 million yuan. The investment required for a small steel plant is only a few million yuan, not more than 10 million yuan. The central government will use this special fund specifically to support the construction of steel plants in impoverished provinces. This constitutes central government support for the local steel industry.

One option is to accept Wei Hongjun's suggestion and allow neighboring provinces to jointly raise funds to establish steel mills. If some provinces find it difficult to independently establish factories, two or three provinces can join forces. Of course, the steel produced by these local steel mills will be supplied to their own provinces first. This kind of benefit must be provided by the central government to motivate local governments. The central government may even allow some wealthy provinces to provide funds to support the construction of steel mills in other provinces.

For example, Guangdong, currently enjoying strong financial conditions, has been granted central government approval to support steel mill construction in other provinces. Of course, this financial support comes with conditions. One is that Guangdong must own shares in these steel mills and receive dividends from their profits. The other is that the steel produced by these mills must prioritize supporting Guangdong's steel needs.

Guangdong, Shanghai, and Heilongjiang are currently the most developed regions in China's light industry, with a huge demand for steel. However, with the exception of Heilongjiang, Guangdong and Shanghai have very little local steel production. Therefore, their demand for steel has always required state support. Therefore, at this financial conference, the central government supported wealthy regions like Guangdong and Shanghai, funding the construction of steel mills to ensure their steel supply.

Finally, some organizations are supporting local steel mills. For example, some state-owned factories have a huge demand for steel, but the government allocation is insufficient. If these companies have the funds, they can support local steel mills and require them to supply their factories first after producing steel.

The most typical example of this is FAW. As China's largest automobile manufacturer, FAW's demand for steel is growing rapidly. This year, it produces 20 tons. After the upgrade and renovation are completed in 1960, the company plans to produce 80000 large trucks annually, requiring 50 to 60 tons of steel per year. With continued growth, this could reach 100 million to 200 million tons.

If the state allocates everything, what happens if there's a shortage in a particular year? For example, this year, the state allocated less steel than FAW would have liked. FAW's annual profit is currently around 1200 million RMB, and the remaining profit after paying it to the state is easily enough to support the construction of a small steel mill.

The reason behind these many policies is to find funds to develop the local steel industry. This is because the Ministry of Finance currently lacks the necessary funds.

Although national finances had been increasing over the past few years, so too had investment. The atomic bomb project had already entered its final stages, with ever-increasing numbers of personnel involved and expenditures. Furthermore, numerous cooperation agreements had been reached with the Soviet Union in 1957, and with France in 1958. For example, the car company partnering with France had already selected its location.

The French were also stubborn and decided to build an automobile factory in Zhuzhou, Hunan. They were dissatisfied with the Soviet-aided Second Automobile Works, believing their trucks were far superior to the Soviets. Therefore, they wanted to compete with Second Automobile Works.

Therefore, the central government decided to build the Third Automobile Works in Zhuzhou, also known as Sanqi, to primarily produce trucks, with a planned annual production capacity of 5000 vehicles.

These are all projects outside the Second Five-Year Plan, and each requires substantial investment, leading to another round of deficits for the Ministry of Finance over the past two years. Therefore, this meeting focused on how to mobilize local funds into the steel sector.

Loans from the Ministry of Finance, funds from local provinces, and contributions from cities and counties where steel mills are located. After all, a single steel mill can boost a region's economy. Even at the meeting, the idea was to get wealthy factories to contribute some of their own money.

Throughout the meeting, Wei Hongjun only occasionally interjected, with no intention of dominating the proceedings. After all, this was a financial work meeting, not a Secretariat meeting. Unless there was a serious deviation in the overall thinking, Wei Hongjun wouldn't speak up and disrupt the proceedings.

The meeting lasted for several days, and Wei Hongjun and Deng Zhihui chatted during the meeting.

"How's the harvest this year?"

Although he is now handling party affairs, what Wei Hongjun is most concerned about is still the issue of China's rural development and the issue of grain production.

Deng Zhihui grinned and said, "Haha, the weather is good. There haven't been any major natural disasters in my country this year, and most grain-producing areas have enjoyed good weather. The promotion of improved varieties has been very successful, and the corn planting area has increased as planned. In the past two years, the planting area has increased by about 3600 million mu. Now, more and more rural cooperatives have begun to grow corn independently, and we don't need to do any work. Last year's fertilizer production was 176 million tons. By 1960, my country's fertilizer production would definitely have exceeded 200 million tons. This year, my country's grain production will increase by 1957% to 10% compared to 15."

Deng Zhihui was in a really good mood.

1958 was a truly good year, with generally favorable weather and good harvests throughout the country. Although there were some minor disasters, they were limited in scale.

Of course, what made Deng Zhihui even more satisfied was the smooth progress of the agricultural program of the Second Five-Year Plan. One area was the promotion of improved varieties. Although there were some issues, it was generally going smoothly. Furthermore, seed research institutes in various regions had achieved significant results in recent years.

Next, we're talking about increasing corn planting area. This was also a key component of the Second Five-Year Plan. At the founding of the People's Republic of China, the national corn planting area was around 100 million mu. While there was some increase during the First Five-Year Plan, the increase was limited.

During the Second Five-Year Plan, based on the situation of land reclamation after the founding of New China and the conditions of mountainous and dry land, a plan was formulated to increase the corn planting area to 2.4 million mu.

Don't assume that promoting corn cultivation is easy. Many farmers would rather plant a low-yielding, familiar crop than a high-yielding, unfamiliar one. Many lack the capital to make such a move; a single mistake could wipe out everything. Farmers are accused of being conservative and having a small-scale mentality, but that's because their foundation is too limited. A single misstep could lead to starvation.

Therefore, promoting corn cultivation requires convincing local governments and rural cooperatives. Only by making everyone see the advantages of corn can the corn planting area be increased.

The Ministry of Rural Affairs plans to increase the national corn planting area to around 3 million mu.

Corn is drought-resistant, and its yield is high after improved seeds. The increase in corn planting area has also greatly promoted the increase in grain production.

"A 10 to 15 percent increase?"

"Don't worry, I'm not exaggerating. During the summer harvest, our Rural Affairs Department and the Ministry of Agriculture conducted investigations. This year is indeed a bumper year. We also investigated areas where the autumn harvest was earlier. The yield has indeed increased significantly."

Deng Zhihui understood what Wei Hongjun was worried about, so he gave Wei Hongjun a reassurance.

Deng Zhihui's words put Wei Hongjun's mind at ease. Deng Zhihui was the most stable cadre Wei Hongjun had ever worked with. He had a generally good personality, but when faced with a problem, he could be even more stubborn than he'd imagined.

In comparison, Chen Yun is also a steady cadre, but he cannot be as stubborn as Deng Zhihui and cannot insist on what he believes to be right.

According to Deng Zhihui, 1958 was truly a bumper year. No wonder, historically, in 1958, many regions began to scramble, with the nationwide steelmaking drive significantly impacting agricultural development, particularly the autumn harvest. However, in 1958, rural cooperatives provided public grain, and the state successfully completed its procurement tasks, resulting in no shortage of grain in rural areas. Later statistics showed that much grain rotted in the fields due to delays in harvesting, demonstrating that 1958 was indeed a good year.

"5000 billion jin?"

Wei Hongjun asked Deng Zhihui in a low voice.

"According to our statistics, the total is at least 4800 billion catties. Of course, it is also possible that it exceeds 5000 billion catties. The specific number needs further statistics."

"Okay."

Wei Hongjun couldn't help but slap his thigh. Since the founding of New China, grain production has increased every year, and now it has reached 5000 billion jin.

This is the combined effect of land reclamation and farmland expansion, fertile farmland construction, water conservancy construction, promotion of improved varieties, and large-scale production of chemical fertilizers.

Wei Hongjun is very happy because he has contributed to the steady growth of China's grain production.

No matter what, with so much food, China will have the confidence and will not be in chaos.

"How's the situation in the Soviet Union?"

"You're right. Although the Soviet Union didn't release specific figures, they certainly couldn't achieve the goals they set out."

"How to say?"

"The Soviet Union's imports of live pigs and pork products from my country this year have increased by 60% compared to the same period last year. The sudden surge in pork imports, along with various canned pork products and sausages, must indicate a supply problem within the Soviet Union. It's only been less than nine months, but this year's pork and pork product exports to the Soviet Union alone have exceeded million rubles. For the entire year, we estimate this to be around million rubles."

Pork is firmly at the forefront of China's current exports. China exports billions of rubles worth of pork products to countries like the Soviet Union, Eastern Europe, North Korea, and Vietnam each year.

Furthermore, canned pork from China is exported to other Western countries through Hong Kong. While not as much as in the socialist bloc, the volume is still significant. Furthermore, while pig bristle exports are not as high as during the war, they remain an important export product.

China has been able to import so many machines and equipment, including large quantities of industrial products like trucks, without collapsing in foreign exchange rates in recent years thanks to the surge in exports.

Among them, the second brother has made great contributions to China's exports.

"Does that mean everyone making money raising pigs this year?"

"Of course. The price of export pigs from farmers is 40 yuan per 40 kilograms. That's roughly 100 yuan per pig. Plus, the pig manure also costs money. So, a rural family raising two or three pigs a year can steadily earn over yuan."

For rural families, 100 yuan is not a small amount. And most importantly, they can receive the money in one lump sum.

"Do you think Khrushchev's reforms in agriculture and animal husbandry are doomed to fail?"

"Why, are you worried?"

"How can we not be worried? After years of government support, coupled with increased grain production and rising pork prices, almost every rural household now raises pigs. Some have just two, while some families with many children have five or six. Right now, one-third of our pigs are exported, with the Soviet Union and East Germany being the largest markets. If problems arise in these two markets, farmers across the country will be affected."

Although the rural economy has been booming in recent years, Deng Zhihui remains wary, fearing any disturbance could devastate the countryside. After all, while the rural economy has some money, its foundation remains weak, and its ability to withstand risks remains limited.

100 yuan was an acceptable loss for cadres like Wei Hongjun and Deng Zhihui, but for farmers with limited income, it was truly an unbearable loss.

Wei Hongjun nodded confidently and said, "It's not that his reforms will necessarily fail. It's that the Soviet Union alone can't fulfill the promises Khrushchev made. If he wants to continue to prove himself right and fulfill his promises, he must import large quantities of meat from my country. Maybe in two years, Khrushchev will even need to import grain from my country."

"Ah."

Deng Zhihui nodded.

Deng Zhihui had made the same analysis, but he was always worried about making mistakes that would cause losses to farmers nationwide. Now, after hearing Wei Hongjun's words, he felt relieved.

Soon, Deng Zhihui said, "I found that it's not just the Soviet Union and Eastern Europe. European countries are also very fond of canned food. A lot of the canned food we export from Hong Kong eventually ends up in Europe."

"They are all markets that can be developed. I heard that the canned fruit that Comrade Gu Mu developed in Guangxi was very popular in the Soviet Union?"

"Yes. Comrade Su Zhenhua brought in a number of small factories from Shanghai, hoping to develop Guangxi's industry. One of them happened to be a cannery, so small it was on the verge of being phased out in Shanghai. Unexpectedly, it flourished in Guangxi, using the abundant fruit in the region to make canned fruit. At the Harbin Trade Fair, it received favorable comments from the Soviet and Eastern European delegations, who placed large orders. This Guangxi cannery became nationally famous, and the small factory also received a 120 million yuan investment from the Ministry of Light Industry, expanding its size several times over. Now, their canned goods are preparing to be showcased at the Canton Fair."

Although Deng Zhihui was in charge of rural affairs, he was also very familiar with the overall development of China's industry and agriculture. After all, Deng Zhihui was the deputy secretary of the Finance and Economics Working Committee, and he had to review all this information.

"Small factories in Shanghai can become large factories if they are placed in Guangxi, which has no industrial base at all. Comrade Su Zhenhua's idea is very good. Some small factories in major cities in Northeast, North, and East China may seem insignificant, but if they are moved to the northwest and southwest provinces, they are really good things. Not only can they boost local industrial development, but they are also an opportunity for these factories."

Wei Hongjun highly praised Guangxi's approach. Provinces like Guangxi are industrial deserts with almost no industrial base.

Factories that Shanghai despised became valuable in Guangxi. As the saying goes, "A tree that doesn't move dies, but a person who moves lives." These factories, once relocated to the northwest and southwest, quickly became local star enterprises, receiving support from local governments.

This is a very good resource optimization process. Many factories in Northeast China, North China, East China, and now in major cities in South China, can be relocated to Northwest China and Southwest China.

"That's right, we must be vigilant in times of peace. We can't let our guard down just because grain production has increased significantly this year. I think we can take advantage of the good grain production in recent years to further improve grain reserves at the central, provincial, municipal, and county levels, as well as at rural cooperatives. This way, we'll be prepared for any eventuality."

Deng Zhihui nodded.

Wei Hongjun's suggestion was exactly what Deng Zhihui had been considering. So, Deng Zhihui said, "This year's grain production is too high, so the Supply and Marketing Cooperative is planning to purchase an additional 900 billion jin of grain, on top of the 500 billion jin of grain purchased through the unified government. But the market certainly can't absorb all of this. So, I've been considering a national grain reserve system and improving the national grain reserve management system. What are your thoughts?"

"That's as it should be. Currently, my country lacks comprehensive regulations for the management of national grain reserves, nor a nationwide system for managing grain reserves. As a result, both the national grain reserves and those held by provincial, municipal, and county governments lack clear regulations. While I haven't conducted an investigation, management in many localities is likely chaotic. This isn't their fault, but the central government's. Previously, my country's grain production was limited, and the scale of grain reserves, whether national or provincial, municipal, or county, wasn't large, so the problem wasn't significant. However, as my country's grain production increases, the scale of grain reserves will also increase, making the formulation of a management policy absolutely necessary."

Wei Hongjun supported Deng Zhihui's idea.

Previously, national grain production was limited, and the annual state-produced grain and state-purchased grain essentially had to flow into the market. The amount of grain the country could reserve each year was minimal. Currently, the total national grain reserves are only around 150 billion jin.

Therefore, the main approach implemented by the country in recent years is for provinces, cities, and counties at all levels to reserve some grain locally, and for rural cooperatives to also reserve some grain. Once the country needs it, they will issue turnover certificates, which means that grain will be transferred from local areas.

However, the central government does not have data on local grain storage, which can easily lead to miscalculations. If local areas run out of grain when food is needed, that would be disastrous.

Therefore, the best solution is for the central government to introduce a grain reserve management plan, especially for the central government to have a number of directly managed grain storage warehouses.

"Then I'll come up with a management plan before the Third Plenary Session of the Eighth Central Committee next year. You can help me review it then."

"no problem."

1050

Deng Zhihui was already 62 years old, but he was full of energy and acted decisively. After discussing this with Wei Hongjun, he used the break in the meeting to immediately begin writing a plan for grain reserve management and a report to the Politburo on the establishment of a National Grain Reserve Bureau.

Deng Zhihui only needed to outline the general outline, and the staff at the Rural Work Department would naturally complete it. But Deng Zhihui's general outline was the most important.

This financial work conference was to address issues arising from the Second Five-Year Plan, so there was a lot to discuss. After the break, the meeting continued.

After discussing the steel issue, the meeting turned to Eastern European heavy industry projects and the implementation of cooperation projects with France. These were also not small issues.

After the founding of the People's Republic of China, most Soviet aid projects were implemented in Northeast China and North China. Later, industrial projects developed using machinery and equipment imported from Europe also primarily took place in Northeast China, North China, and some major cities in central China.

With heavy industrial projects from Eastern Europe now being transferred to China, as well as joint projects with France, provinces across the country are eagerly watching where these projects will be implemented, especially those with underdeveloped industries.

After all, as long as a project is located in one's own city, then with the addition of supporting factories, an industrial zone can be immediately established. This can directly change the local economic landscape for some industrially and economically backward areas.

They pulled out all the stops, sending telegrams to the central leadership one after another. Some even went to Beijing in person to find their former leaders, hoping that they would look after their provinces. Chen Yun was under the greatest pressure.

Because Chen Yun was the most sought-after. Although he didn't seem to have any direct connections, he had been a central leader since the Agrarian Revolution and had been in charge of the Organization Department during the Anti-Japanese War. He knew many cadres. These local cadres came to him one after another, calling him "old leader."

Chen Yun wasn't the type to lose his temper easily. If it were the Prime Minister, he would have lost his temper and sent the local officials back. But Chen Yun couldn't do that.

That was why he had called this meeting to quickly resolve the issue. Wei Hongjun watched everyone coming and going, and realized that the local authorities had done some work on these central officials.

Originally, the implementation of industrial projects should be considered from the perspective of economy and industrial construction. However, the reality is far more complicated than what is shown in the books. The central government must not only consider the economic level, but also the balance between local governments and the actual situation of local governments. If other factors are completely ignored, it will seriously dampen the enthusiasm of local governments. Therefore, some industrial projects must have some political factors.

Wei Hongjun admired Zeng Xisheng the most. Even when others tried to secure projects, they were tactful, offering various persuasive arguments. But Zeng Xisheng, unfazed by accusations of favoritism, immediately went out of his way to secure projects for Anhui. He even managed to secure several Eastern European industrial projects for Anhui.

In particular, they snatched the Polish mining machinery factory and settled it in Hefei. This factory was to be completed in Poland in 1958, but after Poland's economic reforms and cooperation with China, many of the original projects were cancelled.