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43 Plan

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The Four Three Plan or 43 Plan is the People's Republic of China's plan to introduce complete sets of technical equipment on a large scale from the United States, the Federal Republic of Germany , France, Japan, the Netherlands, Switzerland, Italy and other Western countries in the early 1970s. Since the late 1960s and early 1970s, China made use of foreign exchange reserve as well as deferred payment to import US$ 4.24 billion of machinery.[1]

The so-called "Four Three Plan" is the abbreviation of the foreign introduction plan "aimed at improving people's livelihood" proposed to the State Council by the State Planning Commission in the late "Cultural Revolution" in accordance with the spirit of Chairman Mao Zedong's instructions. Because the plan proposes "to solve the problem of food and clothing for the people ", it is planned to introduce complete sets of equipment with a total value of US$4.3 billion from the United States, the Federal Republic of Germany, France, Japan and other Western developed countries in three to five years.", which is how it got it's name the "43 Plan" Also known as "Project 43".[2]

Background

Since 1954, China has implemented a ticket printing system for many years. The number of cloth tickets issued each year needs to be calculated repeatedly and stipulated in a central document. Depending on the climate, the standards in various places are slightly different. Generally speaking, each adult is issued a ticket of 16 feet, 18 feet or 20 feet per year (a pillow towel requires about 2 feet of tickets). The reason why the clothing issue is tense is that the annual cotton output has been hovering at more than 40 million tons, and textile raw materials are in short supply. In order to solve the problem of cotton production, Zhou Enlai held a cotton work meeting every year. Moreover, increasing cotton production also faces the problem of competition for land between grain and cotton. At that time, in industrialized countries, chemical fibers accounted for 40% or more of textile raw materials. In China, this proportion is only 5.5%. In July 1970, the former Ministry of Textile Industry, the First Ministry of Light Industry, and the Second Ministry of Light Industry were officially merged into the Ministry of Light Industry, with Qian Zhiguang as minister. Zhou Enlai announced: The country will focus on light industry, light industry will focus on textiles, and textiles will focus on chemical fibers.[3]

Planning Procedure

Gu Xiulian, an outstanding young female cadre and model worker carefully cultivated by the Ministry of Textiles, was chosen by the organization and transferred to the planning team. In the second half of 1971, Qian Zhiguang proposed that China's own oil and gas resources could be used to build several chemical fiber bases with a production capacity of 1 million tons, equivalent to 20 million dans of cotton. The required technical equipment can be imported from abroad. In this regard, Zhou Enlai and Li Xiannian instructed the State Planning Commission to study and consider introducing chemical fiber equipment to solve the clothing problem and fertilizer equipment to solve the problem.[3]

During the National Planning Conference in early January 1972, Gu Xiulian, who was in charge of the Ministry of Light Industry, called Chen Jinhua, a representative of the ministry and deputy leader of the planning team, and asked him to report to Minister Qian Zhiguang and draft a report on behalf of the Planning Commission. According to the instructions, Chen Jinhua drafted the "Report on the Import of Complete Sets of Chemical Fiber and Fertilizer Technology and Equipment" based on discussions in the ministry and handed it over to Gu Xiulian.

According to the report, it is recommended to take advantage of the favorable opportunity of Western countries eager to find export markets and low prices of commodities and technologies during the economic crisis to introduce 4 sets of new chemical fiber equipment, 2 sets of fertilizer equipment, and some key equipment and materials that are urgently needed in the country in the first half of 1972. It will cost approximately US$400 million. Once put into operation, it can produce 240,000 tons of chemical fiber and 4 million tons of chemical fertilizers per year. The required petroleum gas , oil field gas , and petroleum raw materials are also guaranteed domestically.

The Planning Commission reported this report to the State Council, and Li Xiannian, Hua Guofeng and Yu Qiuli jointly reported it to Zhou Enlai. In early February, Zhou Enlai and Mao Zedong successively gave their approval.

On May 5, 1972, the Ministry of Metallurgy proposed to the State Planning Commission to import and absorb advanced 1.7-meter large-scale steel plate cold rolling mills and supporting hot rolling mills from abroad and other equipment and technologies urgently needed by the domestic steel industry . On August 6 of the same year, the State Planning Commission submitted a "Report on the Problem of Importing a 1.7-meter Continuous Plate Rolling Mill", which cost approximately US$400 million. Mao Zedong and Zhou Enlai approved it.

On November 7, 1972, the State Planning Commission submitted a " Request for Instructions on Importing Complete Sets of Chemical Equipment ", involving 23 sets of chemical equipment and costing approximately US$600 million. Obtained approval from Mao and Zhou. It also requested the State Planning Commission to submit another import plan totaling US$3.3 billion to the central government for consolidation and consideration.

In January 1973, the Planning Commission submitted a comprehensive fourth report, namely the "Request for Instructions on Increasing Equipment Imports and Expanding Economic Exchanges.", The report reads:

"Our country's foreign relations have developed rapidly, and our international prestige has increased unprecedentedly. Imperialism and social imperialism want to isolate us, but instead isolate themselves. The economic crisis in the capitalist world has further deepened, and people are eager to find a way out of product market funds. Actively use this opportunity It is a good opportunity to expand foreign economic exchanges, which will not only help cooperate with international political struggles, but also help accelerate domestic economic construction."

This overall plan planned to introduce 26 technology projects, requiring a total of US$4.3 billion in funds, so it was called the "Four Three Plan" (this plan was later added, with a total investment of US$5.18 billion). In early February, Zhou Enlai and Mao Zedong approved this plan.

List of projects

Category Project Name Annual Production Scale Culminative Investment (100 million yuan) Location Foreign Investor Signing Time Completion and Comission
Chemical Fibres Tianjin Petrochemical Fiber Factory 64,000 tons of paraxylene, 20,000 tons of benzene, and 90,000 tons of dimethyl terephthalate 10.37 Tianjin Japan, Germany
Chemical Fibres Liaoning Petrochemical Fiber Factory 130,000 tons of chemical fiber raw materials 24.15 Liaoning Liaoyang France, Italy, Germany
Chemical Fibres Shanghai Petrochemical Plant 108,000 tons of chemical fiber raw materials and 52,000 tons of chemical fiber 20.79 Shanghai Jinshanwei Japan, Germany
Chemical Fibres Sichuan Vinylon Factory 45,000 tons of chemical fiber, 90,000 tons of vinyl acetate, 95,000 tons of methanol, and 26,000 tons of acetylene 7.2 Sichuan Changshou France, Japan
Petrochemical Beijing Petrochemical General Plant 300,000 tons of ethylene, 180,000 tons of high-pressure polyethylene, and 80,000 tons of polypropylene 23.7 Beijing Fangshan Japan, Germany, USA
Petrochemical Jilin Chemical Industry Company 115,000 tons of ethylene, 100,000 tons of ethanol, 80,000 tons of styrene-butadiene rubber, 50,000 tons of octanol, and 6,590 tons of n-butanol 2.09 Jilin Japan, Germany
Petrochemical Beijing Chemical Plant No. 2 80,000 tons of vinyl chloride, 25,000-75,000 tons of polyvinyl chloride 1.39 Beijing Jiulong Shan Germany
Fertilizer Cangzhou Fertilizer Factory 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.39 Hebei Cangzhou USA, Netherlands
Fertilizer Liaohe Fertilizer Factory 300,000 tons of synthetic ammonia and 480,000 tons of urea 3.48 Liaoning Pangshan USA, Netherlands
Fertilizer Daqing Fertilizer Factory 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.43 Heilongjiang

Daqing

USA, Netherlands
Fertilizer Hubei Fertilizer Factory 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.45 Hubei Zhijiang USA, Netherlands
Fertilizer Dongting Lake Fertilizer Factory 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.50 Hunan Yueyang USA, Netherlands
Fertilizer Luzhou Natural Gas Chemical Plant 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.40 Sichuan Luzhou USA, Netherlands
Fertilizer Chishuihe Natural Gas Chemical Plant 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.73 Guizhou

Chishuihe

USA, Netherlands
Fertilizer Yunnan Natural Gas Chemical Plant 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.77 Yunnan Shuifu USA, Netherlands
Fertilizer Qixiashan Fertilizer Factory 300,000 tons of synthetic ammonia and 520,000 tons of urea 2.98 Jiangsu Nanjing France
Ferilizer Anqing Fertilizer Factory 300,000 tons of synthetic ammonia and 520,000 tons of urea 3.01 Anhui

Anqing

France
Fertilizer Guangzhou Fertilizer Factory 300,000 tons of synthetic ammonia and 520,000 tons of urea 3.14 Guangdong Guangzhou France
Fertilizer Qilu Second Fertilizer Factory 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.47 Shandong Zibo Japan
Fertilizer Sichuan Chemical Plant 300,000 tons of synthetic ammonia and 480,000 tons of urea 2.61 Sichuan Chengdu Japan
Power Station Dagang Power Plant 2 X 250,000 kilowatts 4.50 Tianjin Beidagang Italy
Power Station Tangshan Douhe Power Plant 2 X 320,000 kilowatts 5.30 Hebei Tangshan Japan
Power Station Yuanbaoshan Power Plant 1 X 300,000 kilowatts 3.92 Nei Menggu

Chifeng

France, Switzerland
Steel Wuhan Iron and Steel Company‘s1.7m rolling mill 1 million tons of cold rolled plates, 1 million tons of hot rolled plates, and 70,000 tons of silicon steel 38.9 Hubei

Wuhan

Japan, Germany
Steel Nanjing Iron and Steel Company's Chlorinated Pellets 300,000 tons of sulfuric acid residue chlorinated pellets 1 Jiangsu Nanjing Japan
Steel Nanjing Alkyl Benzene Factory 50,000 tons of normal alkanes and 50,000 tons of linear alkanes 2.21 Jiangsu

Nanjing

Italy

In addition, another 43 sets of mechanized comprehensive coal mining units, as well as world-leading turbine compressors were included.[4]

References

  1. 石林 (Shi Lin), 当代中国的对外经济合作 (Contemporary China’s Economic Cooperation). China Academy of Social Science Press, 1989: 320. Quoted in 崔新健 (Cui Xinjing), 中国 利用外资三十年 (China Making Use of Foreign Capital in 30 Years). China Financial and Economic Press, 2008: 6.
  2. Mao Zedong and the formulation and implementation of the little-known "Four Three Plans" - Zhonghong.com
  3. 3.0 3.1 "April Three Plan": The first intimate contact with capitalism - China News network
  4. Chen Jinhua. "Recollections of National Affairs": Chinese Communist Party History Publishing House, 2005-07-01