The ``May 7th Directive'' refers to a letter Mao Zedong wrote to Lin Biao on May 7, 1966, after he had examined the ``Report on Further Developing Agricultural Production and Side-Occupations in the Armed Forces'' submitted by the General Logistics Department of the Chinese People's Liberation Army. Among other things, the letter stated that the army should be made a great school in which the troops should study politics and military affairs, raise their educational level, and also engage in agricultural production and side-occupations and run some medium-sized or small factories to make certain products for their own needs or for exchange with the state against equal values.