Comrades, Now, I should like to present a report to the congress on behalf of the Fourteenth Central Committee.

The Fifteenth National Congress of the Communist Party of China is an extremely important congress. Held at the turn of the century to break new ground for the future, it will ensure that the whole Party will carry out Comrade Deng Xiaoping's behests and march unswervingly and triumphantly along the correct line adopted since the Third Plenary Session of the Eleventh Central Committee.

The theme of the congress is to hold high the great banner of Deng Xiaoping Theory for an all-round advancement of the cause of building socialism with Chinese characteristics to the 21st century.

The issue of the banner is of the utmost importance. The banner represents our orientation and image. Firmly adhering to the line formulated since the Third Plenary Session of the Eleventh Central Committee means firmly holding high the banner of Deng Xiaoping Theory. After the death of Comrade Deng Xiaoping, it is all the more necessary for the whole Party to keep a high level of consciousness and staunchness on this issue.

To advance our cause to the 21st century in an all-round way requires us to seize opportunities without fail, and blaze new trails instead of following the beaten tracks. Taking economic development as our central task, we should make new breakthroughs in economic restructuring, deepen political restructuring and develop socialist culture and ethics in real earnest. These aspects of work should be handled in tandem with a view to bringing about economic development and all-round social progress.

The theme has been defined in the light of the requirements of the times and the aspirations of the people.

. . . .

III. Historical Status and Guiding Significance of Deng Xiaoping Theory

During the new period of the socialist reform, opening up and modernization drive and the cross-century new journey ahead, we must hold high the great banner of Deng Xiaoping Theory and apply it to our entire cause and all our undertakings. This is an unshakable conclusion the Party has drawn from the past and present realities.

The Chinese Communist Party attaches great importance to the guiding role of theory. Since the Chinese people found Marxism-Leninism, the Chinese revolution has taken on an entirely new look. The integration of Marxism-Leninism with China's reality has experienced two historic leaps, resulting in two great theories. The result of the first leap was a correct theory, a body of correct principles and a summary of experience that have been confirmed in the practice of the Chinese revolution and construction. Its principal founder being Mao Zedong, our Party has called it Mao Zedong Thought. The result of the second leap was the theory of building socialism with Chinese characteristics. Its principal founder being Deng Xiaoping, our Party has called it Deng Xiaoping Theory. These two great theories so achieved are the crystallization of the practical experience and collective wisdom of the Party and the people.

Ever since it was founded, our Party has taken Marxism-Leninism as its guiding ideology. After the Zunyi Meeting and the Yan'an Rectification, the Party decided at its Seventh Congress to take Mao Zedong Thought -- the integration of the theory of Marxism-Leninism with the practice of the Chinese revolution - as its guiding ideology. This historic decision was based on a summary of the experience of 24 years after the founding of the Party. On the basis of the Third Plenary Session of the Eleventh Central Committee and the Twelfth, Thirteenth and especially Fourteenth Congresses of the Party, the Central Committee has proposed that the Party, at its Fifteenth Congress, establish Deng Xiaoping Theory as its guiding ideology by stipulating in its Constitution that the Chinese Communist Party takes Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory as its guide to action. This historic decision has been made by our Party after nearly 20 years of successful practice of the reform, opening up and the socialist modernization drive. It shows the determination and conviction of the central collective leadership and the whole Party to bring about an all-round advancement of the cause of building socialism with Chinese characteristics initiated by Deng Xiaoping to the new century. It also reflects the common understanding and aspirations of the people of the whole country.

Practice proves that Deng Xiaoping Theory, a continuation and development of Mao Zedong Thought, is a correct theory guiding the Chinese people in successfully accomplishing their socialist modernization in the process of reform and opening to the outside world. In China today, it is Deng Xiaoping Theory, which integrates Marxism with the practice of present-day China and the features of the times, and this theory alone, that can settle the issues concerning the future and destiny of socialism. Deng Xiaoping Theory is Marxism of present-day China, representing a new stage of development of Marxism in China.

The reasons why Deng Xiaoping Theory has become a new stage of development of Marxism in China are as follows:

First, Deng Xiaoping Theory, upholding the principles of emancipating the mind and seeking truth from facts, not only inherits the achievements of our predecessors but also breaks with outmoded conventions on the basis of new practice, and explores a new realm for Marxism. Seeking truth from facts is the quintessence of Marxism-Leninism, of Mao Zedong Thought, and of Deng Xiaoping Theory as well. The speech entitled "Emancipate the Mind, Seek Truth from Facts and Unite as One in Looking to the Future" made by Deng Xiaoping in 1978 was a declaration which, at the end of the "cultural revolution" when China was at a crucial historical juncture and was faced with the question of which course to take, shattered the argument of the "two whatevers" [the notion that after the death of Chairman Mao Zedong, whatever policy decisions he had made must be firmly upheld and whatever instructions he had given must be followed unswervingly -- Tr.], opened up a new road for a new era and initiated the new theory of building socialism with Chinese characteristics. The talks given by Deng Xiaoping in the South in 1992 constituted another declaration showing the spirit of emancipating the mind and seeking truth from facts, which, at a crucial historical juncture when we experienced severe tests of political disturbances at home and abroad, upheld the theory and line formulated since the Third Plenary Session of the Eleventh Central Committee, cleared up many important misconceptions that had long shackled people's thinking, and promoted the reform, opening up and the modernization drive to a new stage. Under the new situation when the 21st century is approaching and when we are faced with many hard issues we have never met before, Deng Xiaoping Theory requires us to emancipate our minds and seek truth from facts more firmly and more conscientiously, and judge everything by the fundamental criterion whether it is favorable to promoting the growth of the productive forces in a socialist society, increasing the overall strength of the socialist state and raising the people's living standards, or the "three favorables" for short, so as to open new horizons for our cause.

Second, Deng Xiaoping Theory, upholding the basic achievements of the theory and practice of scientific socialism, has grappled with the fundamental question of what socialism is and how to build it and incisively expounded the essence of socialism, raising our understanding of socialism to a new scientific level. To emancipate the mind in the new period, the key lies in doing it on this question. Failure to have a very clear understanding of this question has, in the final analysis, been the cause of the twists and turns and mistakes our socialism experienced before the reform and opening up, and the cause of the perplexities people encountered on their way forward since then. The efforts to set things right and the all-round reform, from taking class struggle as the key link to taking economic development as the central task, from closedness or semi-closedness to reform and opening up, and from a planned economy to a socialist market economy - these historic changes of the recent period of nearly 20 years have constituted a process of gradually understanding this fundamental question. And this process will continue in practice in the years to come.

Third, Deng Xiaoping Theory, persisting in observing the world in the broad perspective of Marxism, has made new, scientific judgments on the basis of correctly analyzing the features of the times and the overall international situation, the success or failure of other socialist countries in the world, the gains or losses of the developing countries in seeking development, and the trend of development and the conflicts of the developed countries. Great and rapid changes are taking place in the world, and particularly the daily advancing science and technology have profoundly changed and will continue to change the current economic and social activities and the appearance of the world. Marxists of any country have to take this seriously. It is in these circumstances that Deng Xiaoping Theory has determined the line and international strategy of our Party, requiring us to understand, carry forward and develop Marxism from a new point of view, and stressing that only that is true Marxism whereas sticking to conventions can only lead to backwardness and even failure. This shows Deng Xiaoping Theory is clearly geared to the times.

Fourth, to sum up, Deng Xiaoping Theory constitutes a new, scientific system of the theory of building socialism with Chinese characteristics. It has been gradually formed and developed under the historical conditions in which peace and development have become the main themes of the times, in the practice of China's reform, opening up and modernization drive, and on the basis of reviewing the historical experience of successes and setbacks of socialism in China and learning from the historical experience of the rise and fall of other socialist countries. For the first time it has given preliminary but systematic answers to a series of basic questions concerning the road to socialism in China, the stages of development, the fundamental tasks, the motive force, the external conditions, the political guarantee, the strategic steps, Party leadership, the forces to be relied on, and the reunification of the motherland. It has guided our Party in formulating the basic line for the primary stage of socialism. It is a fairly complete scientific system which embraces philosophy, political economy and scientific socialism and covers, among other things, the economy, politics, science and technology, education, culture, ethnic, military and foreign affairs, the united front and Party building. It is also a scientific system which needs to be further enriched and developed in all aspects.

Deng Xiaoping was a great Marxist. He performed immortal deeds for the independence and liberation of the Chinese nation, for the establishment of the socialist system in China and for its reform, opening up and modernization drive. He dedicated all his life to the Chinese people, with the interests of the people as the starting point and objective in everything he did. His greatest contribution to the Party, the people and Marxism, or his valuable legacy to us, is Deng Xiaoping Theory. This theory is embodied in the works of Deng Xiaoping and the important documents of the Party and the state written since the Third Plenary Session of the Eleventh Central Committee.

Marxism is a science, which is firmly based on objective facts. Actual life, however, is always changing and the changes over the past century and more have been so drastic and profound that our predecessors could hardly have conceived them. Hence, Marxism will necessarily advance along with the development of the times, practice and science; it cannot remain unchanged. There is a question concerning the style of study of Marxism: whether we should indulge in book worship, or use the Marxist stand, viewpoint and method to study and solve the practical problems in China. During the rectification campaign in Yan'an, Mao Zedong emphasized, "A policy should be established of focusing on the study of the practical problems of the Chinese revolution and using the basic principles of Marxism-Leninism as the guide, and the method of studying Marxism-Leninism statically and in isolation should be discarded." Today when we advocate arming the whole Party with Deng Xiaoping Theory and studying Marxism-Leninism and Mao Zedong Thought with the focus on studying the theory of building socialism with Chinese characteristics, we mean precisely to carry forward this fine tradition. We must never discard Marxism-Leninism and Mao Zedong Thought. If we did, we would lose our foundation. Meanwhile, centering on the practical problems in the reform, opening up and the modernization drive and on the things we are doing, we must emphasize the application of the Marxist theory, the theoretical study of practical problems, and new practice and development. It is meaningless to talk about Marxism in isolation from a given country's reality and the development of the times. We would get nowhere if we studied Marxism statically and in isolation, and separated it from its vigorous development in actual life, or set them against each other. In present-day China, Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory constitute a unified scientific system imbued with the same spirit. Adhering to Deng Xiaoping Theory means genuinely adhering to Marxism-Leninism and Mao Zedong Thought; holding high the banner of Deng Xiaoping Theory means genuinely holding high the banner of Marxism-Leninism and Mao Zedong Thought.

IV. The Basic Line and Program for the Primary Stage of Socialism

Since the Third Plenary Session of the Eleventh Central Committee, the Party has correctly analyzed China's conditions and formulated the scientific thesis that China is still in the primary stage of socialism. When we talk about the need to proceed from reality in everything we do, the true reality is that China is currently in the primary stage of socialism and will remain in this stage for a long time to come. When we say we must be clear about what socialism is and how to build it, we must acquire a clear understanding of what socialism in the primary stage is and how to build it. One of the fundamental reasons for our failings in building socialism prior to the convocation of the Third Plenary Session of the Eleventh Central Committee is that some of our tasks and policies overstepped the primary stage of socialism. One of the basic reasons for the achievements in the reform, opening up and the modernization drive over the recent period of nearly 20 years is that we corrected the erroneous concepts and policies transcending the primary stage of socialism and rejected the erroneous proposition that we should give up the basic system of socialism. By so doing, instead of deviating from it, we are building socialism in a down-to-earth manner, so that it is full of vigor and flourishing in China, and the people, thanks to their personal experiences, have become all the more enthusiastic in supporting socialism.

The reason why we are laying further emphasis on this question at the current congress is that, in the face of the arduous tasks of tackling hard issues in the reform and creating a new situation, the key to resolving various contradictions, dispelling doubts and understanding why we must carry out the existing line and policies and not any other line and policies lies in our unified, correct understanding of the basic conditions in China today in the primary stage of socialism.

Socialism is the primary stage of communism and China is in the primary stage of socialism, that is, the stage of underdevelopment. In this large Eastern country, it is a great victory for us to take the socialist road after a period of New Democracy. But, at the time when China entered socialism, it lagged far behind the developed countries in terms of the level of development of the productive forces. We are, therefore, destined to go through a rather long primary stage of socialism. During this stage we shall accomplish industrialization and the socialization, market-orientation and modernization of the economy. This is a historical stage we cannot jump over.

It is the first time in the history of Marxism that the scientific concept of the primary stage of socialism is specified in a party's program. When talking about building socialism in the primary stage, Deng Xiaoping especially emphasized, "Ours is an entirely new endeavor, one that was never mentioned by Marx, never undertaken by our predecessors and never attempted by any other socialist country. So there are no precedents for us to learn from. We can only learn from practice, feeling our way as we go." That is to say, if we really want to build socialism in China, we should proceed in everything we do only from the actual situation of the primary stage of socialism, and not from our subjective desire, nor from this or that kind of foreign models, nor from the dogmatic interpretations of some theses in Marxist works, nor from certain erroneous viewpoints imposed on Marxism.

The primary stage of socialism is a historical stage in which we shall gradually put an end to underdevelopment and realize socialist modernization by and large. It is a stage in which an agricultural country, where people engaged in agriculture take up a very large proportion of the population and mainly rely on manual labor, will gradually turn into an industrial country where non-agricultural people constitute the majority and which embraces modern agriculture and service trade. It is a stage in which a society with the natural and semi-natural economy making up a very large proportion of the whole will gradually turn into one with a fairly developed market-oriented economy. It is a stage in which a society with illiterate and semi-literate people making up a very large proportion of the population and with backward science, technology, education and culture will turn step by step into one with fairly developed science, technology, education and culture. It is a stage in which a society with poverty-stricken people making up a very large proportion of the population and the people having a low standard of living will gradually become one where the whole people are well-off. It is a stage in which a society with very uneven economic and cultural development between regions will become one in which the gap will be gradually narrowed, with some regions becoming developed first. It is a stage in which, by introducing reforms and exploring new ways, we will establish and improve a socialist market economy, a political system of socialist democracy and other systems that are relatively mature and full of vitality. It is a stage in which the great number of people will firmly foster the common ideal of building socialism with Chinese characteristics, make unremitting efforts to overcome difficulties, build the country with industry and thrift and promote cultural and ethical progress as well as material progress. It is a stage in which we will gradually narrow the gap between our level and the advanced world standard and bring about a great rejuvenation of the Chinese nation on the basis of socialism. It will take at least a century to complete this historical process. It will take a much longer period of time to consolidate and develop the socialist system, and it will require persistent struggle by many generations, a dozen or even several dozens.

In the four decades and more since the mid-1950s when China entered the primary stage of socialism, and especially in the recent period of nearly 20 years, China has greatly developed its productive forces and made much headway in all its undertakings. In general, however, due to a large population and a poor foundation to begin with, China has seen uneven regional development, and its underdeveloped productive forces have yet to be fundamentally improved. The socialist system still needs to be perfected, the socialist market economy is immature, the socialist democracy and legal system still have to be strengthened, and decadent feudal and capitalist ideas and the small-producers' force of habit still have widespread influence in society. All this shows that the socialist society in China still remains in the primary stage.

The fundamental task of socialism is to develop the productive forces. During the primary stage, it is all the more necessary to give first priority to concentrating on their development. Different contradictions exist in China's economy, politics, culture, social activities and other areas, and class contradictions, due to international and domestic factors, will still exist within a certain scope for a long time to come. But the principal contradiction in society is the one between the growing material and cultural needs of the people and the backwardness of production. This principal contradiction will remain throughout the process of China's primary stage of socialism and in all activities of society. Hence we are destined to make economic development the central task of the entire Party and the whole country and make sure that all other work is subordinated to and serves this task. Only by focusing on this principal contradiction and the central task can we soberly observe and control all social contradictions and effectively promote their resolution. Development is the absolute principle. The key to the solution of all China's problems lies in our own development.

In the primary stage of socialism, focusing on the fundamental task of developing the productive forces, we should take reform as the motive force for promoting all the work in building socialism with Chinese characteristics. Ours is a comprehensive reform which means, on the premise of upholding the basic system of socialism, we conscientiously readjust all the aspects and links of the relations of production and the superstructure so as to suit them to the level of development of the productive forces in the primary stage and the historical requirement of modernization. It is a great pioneering undertaking to combine socialism with the market economy. To do this, it is necessary to make active explorations and bold experiments and respect the pioneering initiative of the masses. It is necessary to deepen the reform and resolve the deep-rooted contradictions and crucial problems that may arise during structural transformation. It is necessary to open China wider to the outside world and absorb and use for reference the advanced technology and managerial expertise of foreign countries including developed capitalist countries.

In the primary stage of socialism, it is of the utmost importance to balance reform, development and stability and to maintain a stable political environment and public order. Without stability, nothing could be achieved. We must uphold the leadership by the Party and the people's democratic dictatorship. We should promote material progress and cultural and ethical progress, attaching equal importance to both. We must eliminate all factors jeopardizing stability, oppose bourgeois liberalization and guard against the infiltrative, subversive and splittist activities of the international and domestic hostile forces. We must balance the intensity of reform, the speed of development and people's ability to sustain them, promoting reform and development amid social and political stability and securing social and political stability through reform and development.

At this historical moment when we are advancing our cause to the 21st century in an all-round way, we must solemnly point out that the whole Party must firmly adhere to the Party's basic line for the primary stage of socialism and, in the great practice of building socialism with Chinese characteristics, combine the central task of economic development with the two basic points -- adherence to the Four Cardinal Principles [keeping to the socialist road and upholding the people's democratic dictatorship, leadership by the Communist Party, and Marxism-Leninism and Mao Zedong Thought -- Tr.], and the reform and opening up. This is the most valuable experience our Party has gained in the recent period of nearly 20 years and the most reliable guarantee for the victorious advance of our cause. We should maintain vigilance against the Right tendencies, but primarily against the "Left". We should remain sober-minded, overcome all interference and firmly adhere to Deng Xiaoping Theory and the basic line. In accordance with this theory and the basic line and with the focus on the goal of building a prosperous, strong, democratic, culturally advanced and modern socialist country, it is necessary to acquire a better understanding of what the socialist economy, politics and culture with Chinese characteristics in the primary stage of socialism are and how to build them.

-- Building a socialist economy with Chinese characteristics means developing a market economy under socialism and constantly emancipating and developing the productive forces. To do this, we should uphold and improve the basic economic system in which the socialist public ownership is dominant and diverse forms of ownership develop side by side; we should uphold and improve the socialist market economy so that the market will play a basic role in the allocation of resources under state macro-control; we should uphold and improve different modes of distribution with distribution according to work remaining dominant, allowing some people and some areas to become prosperous first so that they can help others to get well-off and achieving common prosperity step by step; and we should uphold and improve opening up and take an active part in international economic cooperation and competition. We should ensure that the national economy will develop in a sustained, rapid and sound way and that the people will share the fruits of economic prosperity.

-- Building socialist politics with Chinese characteristics means ruling the country by law and developing socialist democracy under the leadership of the Communist Party of China and with the people as the masters of the country. To do this, we should uphold and improve the people's democratic dictatorship led by the working class and based on the worker-peasant alliance; we should uphold and improve the system of people's congresses, the system of multi-party cooperation and political consultation under the leadership of the Communist Party and the system of regional national autonomy; and we should promote democracy, improve the legal system and build a socialist country ruled by law. We should create a political situation in which we have social stability, a clean and efficient government and unity, harmony and liveliness among the people of all our nationalities.

-- Building a socialist culture with Chinese characteristics means taking Marxism as the guidance, aiming at training citizens so that they have high ideals, moral integrity, a good education and a strong sense of discipline, and developing a national, scientific and popular socialist culture geared to the needs of modernization, of the world and of the future. To do this, we should persist in arming the whole Party and educating the people with Deng Xiaoping Theory; we should strive to raise the ideological and ethical standards and the educational, scientific and cultural levels of the whole nation; and we should adhere to the orientation of serving the people and socialism and the principle of "letting a hundred flowers blossom and a hundred schools of thought contend", laying emphasis on progress and boosting academic activities, art and literature. We should foster socialist ideology and ethics by basing ourselves on China's reality, carrying on the fine cultural traditions handed down from history and assimilating the advances of foreign cultures. The aforementioned basic targets and policies for building a socialist economy, politics and culture with Chinese characteristics are well integrated and inseparable. They constitute the basic program of the Party for the primary stage of socialism. This program is an important part of Deng Xiaoping Theory, an elaboration of the Party's basic line in the economic, political and cultural fields and a summary of the major experience gained over the years.