THE SOVIET SEVEN-YEAR PLAN AND SOME OF ITS INTERNATIONAL ASPECTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62S00545A000100090020-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 9, 2016
• Document Release Date: July 17, 1998
• Sequence Number: 20
• Publication Date: May 21, 1959
• Content Type: REPORT

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THURSDAY, MAY 21, 1959
THE SOVIET SEVEN-YEAR PLAN
AND SOME OF ITS INTERNATIONAL ASPECTS
g
the information and understanding I have gathered regarding the seven-year plan for the eco-a
nomic development of the Soviet Union and some of its international aspects. May I say that
hted to be here this evening to have an opportunity to share with you some of
I am deli
Speech by Dr. Amasasp A. Aroutunian, Soviet Ambassador,
to the Montreal Branch of the Canadian Institute of International Affairs,
Queen Elizabeth Hotel, on May 21, 1959
It is always a pleasure for me to speak in Montreal on international problems. Montreal
is a large centre of international trade. It is the seat of an important international specialized
agency. Many international conferences have been held here. I recollect the first steps of
my diplomatic activities at an international conference which took place in your wonderful
city in 1944. I enjoyed my work at that time, particularly because of the mutual understand-.
ing and good co-operation of the Soviet and Canadian representatives. I can assure you that
I have come today to address this meeting in the good spirit of those days.
11 faut parlor frangais dans cette villa, qui a si bien concervd las traditions do la culture
frangaise Maio tout le monde me comprendra quand je parle anglais.
stoat possible pace. And we believe that our drive for a better life is not a threat to other
uman beings trying to do their best to improve their economic and cultural life further at the
he seven-year plan is not a creation of the devil against humanity. It is a program of ordinar:
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les. on the contrary it Is an encoaragement for them in their economic and cultural
progress. We invite all of them to. peaceful international economic co-operasion.
ti
Allen W. Dulles does not agree with that. He thinks that the seven-year plan is a
You can be sure that even if the Bible were introduced today he would greet it with suspic
and consider it a subversive conspiracy against society. By the way the guardians of ord e
reacted exactly that way when the Bible first appeared.
Trying to put naive people in fear, Mr. Dulles in a speech last April 8, before the Ed
Electric Institute, considered that the target figures and the tasks of the seven-year plan
"formidable", "unrealistic", "patently nonsense"" , and certainly, "a standard tool of C(
munist propaganda". If that is so, one may wonder why Allen W. Dullea'expresses such
great anxiety about that plan airi says that it represents a threat to the society which he gi
He to, at least, not consistent and not realistic. I am glad that in response to that very p
liar and contradictory speech by Allen W. Dulles some sound voices of his friends were I
advocating a realistic appraisal of the Soviet seven-year plan.
. The seven-year plan for the economic development of the Soviet Union is indeed a ve:
realistic undertaking with all its staggering goals and the greatness of its target figures .
Moreover the seven-year plan is already in operation and it is working very well The im
part of that plan which covers the first quarter of this year has been successfully carried
conspiracy agaunsi um ll ix.:1C4Y
that is. a professional method of approaching the matter by a director of an intelltgiency a
The plan of industrial production for the first quarter of 1959 was fulfilled by 106 per cem
The output of industrial production increased in the first quarter of the current year in a
rison with that for last year by 11 per cent. That means that the fulfilment of the seven-y
plan has been started at a pace even more rapid than was envisaged in the plan itself. 11
:seven-year plan envisages average annual growth of industrial output of 8.6 per cent.
The rapid development of industry is a basic economic law of the whole progress of
oviet union. That basic law lies at the foundation of the seven-year plan for the develol
the national economy of the Soviet Union. for 1959-65. The plan is a vigorous program
r, massive, industrial, agricult-Gra.l, and cultural progress of the country. The pli
ovides for a high rate of growth and for a very large increase in the physical volume o
Ion, for a further development of science, technics, and culture and for a substantia
rovement in the standard of living of the whole population.
To carry out the plan will certainly not be an easy job. We understand that better Ow
on a else. We are conscious of what we lack and we know how to remedy that. The Sot
r,. ., - L-_ __ "_ _......_.~...~., ...,A v,..,~toA.ro to fulfill their eeonomi
Planes.
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One of the main characteristics of the seven-year plan is to secure a high rate of develq
so on. In the next seven years the production of consumer goods will rise by 65 per,ceat
520-billion kilowatt hours, the output of mineral fertilizers 35-million metric tons, la
4 -:5gy'
nation In the world. In 1966. steel production will reach 100-million tons; oil extraction,
1.7-billion barrels; coal output .609-million metric tons; the production of electricity
material growth of the economy. The Soviet Union is the second most powerful inddpstrial
ment of the national economy of the country. Industrial output in the Soviet union is to be
raised by 80 per cent in 1965 in comparison with that of 1958. One has to two Into account_,,
the high level of the present Industrial production in thee.
nary is order'to ?isua line the re4
groups of workers will even have a shorter working-week than I have mentioned. The 3
some other categories of workers and a 35-hour week for the rest of the wage-earners.
workers. In 1964 we shall start to set up, gradually, a 30-hour week for underground
billion roubles, two-thirds of which will represent national, state investments, and one-tb`
will come from local resources, from collective farms and individuals. In terms of dolliu
11
the averagey annual investments for 1959-65 grill be more than 100-billion dollars.
The national Income of the Soviet Union will increase by 65 per cent, which is a subst
tial growth The real incomes of the workers, farmers, and employees are to be raised l
40 per cent; popular consumption - by 63 per cent. In the next few years we are going to:
give up collaatiag_iesee_. romt, population. In 1960 we shall accomplish the switch to a+
seven-hour working day for all wage-earners and a six-hour working day for undergroun'i
To insure the overall large increases in the Soviet economy and culture In the.next ,se
years we shall have such a huge capital investment that It will equal that in all the precedi4
years of the Soviet regime. The total capital investments for 1958-59 will run We 3, 000-
the gross output of agriculture - by 75 per cent.
increase wages at the same time.
progress now without any curtailment of wages; on the contrary everything is done
!week will be the maximum working week in the country. The reduction of the working
The seven-year plan provides for: large- cale housing construction, a substantial
rovement in social security and Insurance activities and public health and free medical
s; a new great encouragement of the development of culture, art, the theatre, muss
o, TV, and so on; a further development of educational and scientific establishmes
series, kindergarten.,, schools, universities, institutes, laboratories. During the
-period over 2, 300, 000 specialists will secure a higher education and in 1965 the i
them manities will exceed 4, 500, 000.
of varsity and institute graduated specialists in different fields of science, technique
1 The seven-year plan, as you see, opens up a continuous improvement in the living
atr 4,rds of the people. The distribution of the goods produced by a nation among all i1
bers is one of the most important problems of any society. In the Soviet Union the diet
of material and cultural values is based upon the socialist principle: from each accor
his abilities, to each according to his labour. The Soviet Union has now entered a nev
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period of its historical development the period of the gradual over-growing of socialism
_ a _,r J ~__~ Lw,~? ?w. wawa~ld {fn~'~8 e,AOM
future economic, scientific and cultural conditions, and particularly, an abucuituoe of mater
values, for the systematic, gradual, step-by-step transition to the distribution of goods on
the communist principle: from each according to his ability, to each according to his need.
For that reason we call the new period of the development of the Soviet Uniop the period of
the extensive building of a communist society.
N. S. Khrushchev in his report at the 21st Congress of the Communist Party of the Soviet
Union last January 27, defined the main tasks of that new period of Soviet development as
follows: "The principal tasks of this period are to establish the material and technical base
of communism, to further strengthen the economic and defensive might of the USSR and, at
the same time, to provide for the fuller satisfaction of the growing material and spiritual
requirements of the people" .
The Soviet people have started the fulfilment of the seven-year plan with great confidence
and a.firm certainty of success for the inspiring program of the economic and cultural deve-
lopment of the country and of a decisive growth in the living standards of all the population.
The Communist Party of the Soviet Union gives the right leadership In the peaceful economic,
and cultural construction under the seven-year plan.
I could go further in reviewing the seven-year plan for the economic and cultural develo;
idea of its magnitude. Such a great program for a ve p
y ..___.... O..1' 4 . 4nfl,.?nnp th, whole human community, including, dare I say, Canada with its
meat of the Soviet Union, but I believe that what I have already said is enough to give you an
th A. 1o ment of a society at a rapid pace
A
A industrious and imaginative people. The seven-year plan of the Soviet Union certainly ceias,
with domestic affairs, with the problems of the development of.the national economy. But, nS
it will have a tremendous influence on the world economy and the international situatil
ryone present here irrespective of his philosophy realizes, I believe, the significance of
11tg' level of the economic development of a country for the role which that country might play
world affairs .
what will be the general trend of the influence of the seven-year plan on the
First of all
,
inraational relations? Will the fulfilment of the plan help to decrease international tension
to maintain lasting peace in the world? The answer can be definitely in the affirmative.
An I am going to explain why.
i
seven-year plan envisages, as I have tried to inform you, a huge amount of con-
strui1on - factories, power stations, housing, municipal and rural projects, nurseries,
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and all the modern facilities for a free, happier life for the people. That requires that a iange
amount of resources be spent.
housing, shorter working hours, good recreation, full education, a high level of cultural life',
stantial increase in people's consumption, to have better food and better clothing, modern
to achieve a continuous Improvement in the living standards of the people - to get a sub-
and other public and cultural services. The ultimate goal of the large-scale construction Is
schools, universities, theatres, health resorts, clinics, and so on. The plan provides. for
for a substantial growth of an improvement in the free health services, social insurance,
engross reacted with stormy, prolonged applause, rising into an ovation and, I may assure
Only a nation can afford such huge expenses and start such large-scale construction which }
has peace not war in its view. Who can deny that? The Soviet people need peace in order to
fulfil the seven-year plan and to enjoy the fruits of their labour. Lasting peace is a necessary
pro-condition for the success of the seven-year plan. The Soviet people, the government
itself, the Communist Party, realize that to the full extent and unconditionally. The seven-
year plan is imbued with a spirit of peace and presupposes lasting peace. The last words of
N. S. Khrushchev's report on the seven-year plan at the recent Party Congress - Long live
world peace - are not a more slogan. They expressed the spirit of the plan itself. The
all peoples are waiting for a break-through in the development of International relations
e Soviet Union. We firmly believe that the time has come to ease international tensions,
Id peace as well. The approval of the seven-year plan has consolidated the peaceful policy
that was an expression of their feelings not only towards the seven-year plan but towards
or to settle by peaceful negotiation the differences between nations and to secure a
peace.
he modern progress of science and technics, particularly in the field of nuclear energy
tercontinental missiles, in the field of mastering outer space, makes peaceful methods
ly means to resolve international conflicts. In his interview of May 5, N. S. Khrushche?
West German Social-Democratic editors: "Seeking nowadays to resolve vexed
a by unleashing a war is a policy of madmen. And the only place for crazy people Is
asylum".
realization of the seven-year plan will strengthen and invigorate the peace forces in
rld. The economic growth of the Soviet Union, China, and the other socialist
during the coming seven-year period will definitely change the correlation of force
affairs in favour of peace. The peoples of previous colonies and semi-colonies have
tive forces for peace. In the capitalist countries the democratic forces are striviz
more and more. No doubt there are people in some countries who are busy prepar
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these two countries can give a good example of a good neighbourhood.
There is no contradiction between the national interests of Canada and the Soviet Union. A
of Soviet power, stressed the desirability and necessity of the peaceful coexistence of social
ist and.oapitalist countries. Nowadays there is no alternative for socialist countries, or for
capitalist countries but peaceful coexistence. it is a vital necessity for humanity. We are
fully aware of that.
The philosophy of peaceful coexistence is a solid principle of Soviet foreign policy and
we consider that it can also be accepted by other countries.
As to Canada, I firmly believe in genuine peaceful coexistence between the Soviet Unica
and this country. I venture to affirm that there is not a single question In the relations beti
wean Canada and the Soviet Union which cannot be resolved in a friendly way by means of
negotiation, by a good-neighbour approach. There can be misunderstandings, even mistake
there can be hard issues in our relationship, but all of them can be removed in a friendly r
As far as the 'Soviet Union is concerned I may assure you that our policy towards Canada
to develop friendly and good-neighbourly relations in the political field as well as in the eoi
nomic, --cultural, scientific, and technical fields, Soviet policy towards Canada has no otl
end or Intention but to develop friendly relations with Canada. Any other supposition will b
wrong. Nothing in the past produced any conflict of national interests between our oountrli
certainly not a subversive one. From the very beginning of the Soviet regime Ienin, father
The philosophy of peaceful coexistence is not a new idea in Soviet foreign policy and
all countries regardless of their social and economic system.
and economic system. That creates a solid foundation for the lasting peaceful coexistence
families. That noble aspiration is common to the peoples of all countries whatever the'`soc
Lion for a better life, to work in peace, to secure happiness for their children and for their
anew war. But nowadays the peace-loving forces are much stronger than the people rattling:
nuclear arms. The fulfilment of the seven-year plan and the further growth of this peaces foroel
will devaluate more and more the policy of the cold war, the policy of from positions of
strength, the brink--of-war policy.
Not only the Soviet peoples but the peoples of other countries as well have a great "P"',
I firmly believe that good-neighbour relations between Canada and the Soviet Union nr
a very important positive influence upon world affairs helping to ease international
on and to secure lasting peace. In certain conditions Canada may play a more Impoz
ro ' in International policy.
.,There is no question but that there is mutual mistrust between the socialist and the
cap alist countries, which puts obstacles in the way of the development of peacefulcoexli
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But obstacles can be,overcome, at least gradually. And all genuine forces for peace have to
make contributions to overcome the mutual mistrust between peoples of different countries.
The exchange of people and knowledge in various fields of human activities - culture, art,
education, sports, medicine, sciences, technics, industry, agriculture, transport, banking,
business, trade anions, and so forth - can only help to develop mutual understanding and to
promote bettex relations between the countries with different national cultures and different
social systems The Soviet Union greatly favours the normal mutual exchange of people and ~
knowledge tothat end. The seven-year plan provides for great opportunities in the development
of friendly. relations between the nations, which will promote the strengthening of world peace.'
The seven-year plan attaches a great importance to the extension of foreign trade and
business contacts with other nations including Canada. It is envisaged to double at least Soviet
foreign trade during the next seven years. At present Soviet exports equal more than four
billion dollars. The same goes for Soviet imports. The Soviet Union occupies sixth place in
world trade. The growth of Soviet foreign trade under the sever.-year plan will open up good
good possibilities for an increase in world commerce.
You see there is not the slightest mark of autarky, self-sufficiency , in the economic de-
velopment of the Soviet Union. I know that there are some people in the West who teach that
the dogma of autarky is basic to communist doctrine. I have read about that, may I remark,
in one of the articles in the "International Journal", published quarterly by the Canadian
Institute of International Affairs. That is not correct, it contradicts the real development of the
Soviet economy. We believe in a world division of labour, but not under. the domination of a
big power. It is not our fault that towards trade with the Soviet Union, China, and the other
socialist countries some capitalist countries exercise a policy of discrimination which gives a
h to those countries to develop their own production of articles which they previously im-
orted from the West. Besides that, nobody can scientifically justify the thinking that the full-
anged development of the economic resources of a Country is autarky. Neither is it autarky
develop the economic independence of a country, which does not exclude exports and imports
a fact that the economically independent countries nowadays are the countries which are
'-hly industrialized with a large foreign trade. Talk about the dogma of autarky is generally
u d. to try to discredit the industrialization, of a new country, particularly a country which is
,cdi omically underdeveloped and dependent upon the country from where, generally, the
iism of industrialization under the veil of talks about autarky comes from.
As to the Soviet Union, we intend to continue the development of our economic resources
to ne full extent in order to secure our economic might and independence at the same time
pus ling ahead our foreign trade. tinder the severs-year plan the rate of increase of the foreign
tra of our country will be even more than. that of industrial production. But foreign trade
will like a very small part of our national product:. 'The economic independence of the Soviet
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Union will secure the fulfilment of the seven-year plan. The Soviet Union's own efforts, its
internal and not foreign resources will bring the success afthe plan But that does not exclude
the foreign.. exchange of goods if both the Soviet Union and its trade partners express a mutual
interest in trade. On that basis we can also develop good trade. with Canada.
Commercial relations between the Soviet Union and Canada are, relatively, a new business.`%
The trade people: of both countries do not know enough about. the possibilities of trade ex
pansion..between both countries. But the possibilities are great and they have not been used
for our mutual advantage. The Soviet Union is. really interested in increasing its trade with
Canada and In negotiating a new trade agreement. I believe Canada has at least the same in-
terest. Under the seven-year plan we can expand our trade in both directions - from Canada
to the Soviet Union and from the Soviet Union to Canada.
As to the progress of the discussions cua.cerning the renegotiation of the trade agreement
between our two countries, I stated last April 20 in the Canadian Club in Ottawa that we are
busy now finding out the proper formula wh~ch corresponds to the interests of both countries.
Mr. Gordon Churchill, Minister of Trade and Commerce, said on May 14, in the House of
Commons that discussions are proceeding with Soviet representatives to establish a mutually
satisfactory basis for a renewal of the trade agreement.
Our philosophy is that the normal development of commercial relations between countries
is highly desirable. Trade should be mutually advantageous. On the world market we can find
the proper solution of problems which may arise. Only equal partnership, a respect for
mutual interests, is needed in trade. All obstacles including the political discrimination
hampering world trade should be taken awa:.,. Trade. is a very sound foundation for the develop-
ment of mutual understanding and good political relations. The Soviet Union is ready to develop
its normal commercial and economic i gel rattans with all the nations.
It is not known widely that the Soviet ar.d Br?it'.sh Prime Ministers, N. S. Khrushchev and
H. Macmillan agreed that it is desirahic and possible to enlarge the trade between these two
countries. About a week ago a Hrltish th,'aogatlon w!dk Sir David Eccles, Minister of Trade,
at the head arrived in Moscow for trade axegutlatiom . Sir David Eccles declared that the
iritish have examined the seven--year piae..a. w'tY great interest and that the British Government
going to encourage British trade w:t h the ov) et fix? (on. That gives me the opportunity to
ate that Great Britain Is the first western L uunLrv which is going to take advantage of the
.)anaion of Soviet foreign trade under t-be _,eveen - year plan..
I often-hear that the seven-year pl,.ei is n ecn.rac,onIe challenge to the Western world. I
~~gree with that In one respect, and only in one, rlawn:ly, that the seven-year plan invites
,e nations to show their best in the development of their economy for the benefit of the
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and for peaceful, international economic co-operation. We call that '`'
people peaceful ecaaiom
competition between different countries and we believe it is beneficial to all. If one wants
call it an economic challenge, that is up to shim. N. 8.; Khrushchev said:
We want to compete With the capitalist countries in peaceful pursuits, to compete
them in the development of. the productive forces, in the development of the nation
potential, in the promotion of the people's materisland cultural standards. We want eJIC
system to demonstrate its economic and spiritual powers in this competition. To. `ui e
language of commerce and business, which apparen ly, the representatives of this crap
world understand more easily, we can put it this way.; Let us - the socialist aorldjaun
capitalist world - display our "goods" , each showing its own. Let each system sho e
working day is shorter, where the working man gets more material and spiritual values,
where he has better living quarters, where he has,-'more opportunities for an education,
what part he takes in deciding matters of state and. in the political affairs of his country..
each show who is the real owner of all the material and cultural riches - the man whc
of the man who does not work but has the capital".
What is wrong with that kind of peaceful economic competition? It is much more a
a model of international relations than the cold war, not to mention a hot war. The Sov
Union invites other countries to enter into such a peaceful competition. And from that pq
of view the Soviet Union decided that its basic economic task for the near future is to ove
and to outstrip the most aavancea capitalist country - which now means the united b
industrial production increasedly 10 per cent each year; United States industrial prody
dustrial output in 1958 was not more than 40 per cent of that of the United States, while
long while ago he gave the same percentage for 1956. It is known that in 1957 and 1958
horrified by that idea which he considers heretical; he has become furious and in that 18
he has gone out of his mind. Otherwise how one can explain him saying now that Soviet
in output per head of population in the briefest possible period of history. Allen. W. Dul
In fact the Soviet industrial output now is about half of the United States; agricultw
ction is lower by 20-25 per cent. U. S. industrial output per head is more than twice
oes not care, he continues to play with this magic 40 per cent business.
reared in that period it dropped 6.5 per cent below the 1956 level. Allen W. Dull
USSR, agricultural output about 40 per cent higher. That is the present situation of
ve level of industrial and agricultural production in the Soviet Union and the Unite
is the starting point of a new stage in our peaceful economic competition with the'
under the seven-year plan.
'or the march of events connected with that competition the rate of development s
a decisive role. In recent years the average annual rate of growth of U.S. industr
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production has been 2 per cent. We take into account for the next seven years the same
or even 3 per cent. The increase of Soviet Industrial production during ,1959 shows :a mdch
industrial output as 8.6 6 rt'rt
per cent. One say; that the U .S.:rate can be an? average " 2. b,per ce'
average annual tempo. The Soviet seven-year plan fixes the. average annual rate of growth
7 7
The realization of the seven-year plan will be a decisive step to that end. In 1965 the
USSR will surpass the USA for physical output in some key lines of industry and draw near t
the present level of output in others. In major farm production - both physical output and
per head of production - the USSR will surpass the present level of the USA, N. S. Khrushc
said in his report to the last Congress of the Communist Party of the Soviet Union: "Con-
sequently, by that time (1970) - or even earlier - the Soviet Union will rank first in the
world both for physical volume of production and production per head of population. That wil
be a world historic victory for socialism in its peaceful competition with capitalism in the
international arena".
in both cases can be altered, but that will not change the trend of the movement and the Etna
results. In reality we have some indication of an acceleration of: the movement in favour of
the Soviet Union. We are sure that the average annual growth of Soviet industrial,. as well a
agricultural output, designed by the plan, will be surpassed.
It is very important to note that in annual growth of industrial production the Soviet Unif
is now ahead of the United States. We add more to national industrial output each year than
the Americans do and we go forward four times as fast.
One has to take into account the population of the country and the rates of its growth.
According to the census which took place last January 15th, the Soviet Union has a populatic
of nearly 209, 000, 000. This exceeds the population of the USA. By the end of the seven-yes
plan the Soviet population will probably exceed the United States by 15 to 20 per cent. That
means that the Soviet Union must have much greater industrial and agricultural production a
a whole in order to catch up with and surpass the United States in production output per heat
of population. Taking into account all relevant factors, our people have estimated that the
Soviet Union. will catch up and surpass the United States both for the physical volume of
production and production per head of population by 1970, if not earlier.
higher rate than is fixed by the seven-year plan, namely, 11 per cent. No doubter the rates
stand collectivization radically changed the share of the Soviet Union in world production. In
937 the Soviet Union's industrial output. was already 10 per cent of.the world's industrial
G ttput, in 1958 - 20 per cent.. In 1965 - it will rise to 30 per cent. At that time the USSR
tdustrial output. The socialist economic development of the country, Its industrialization
Russia, before the Great October Socialist Revolution, had only 3 per cent of the world
R, ana the other socialist countries together will have more than one-half of the world's
l trial output.
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One need not be a prophet to say in the light of world development that the. United States e
indu trial Runrnmanv in .,.,+
an o accept that aiigtoric fact. I guess it was almost the same wit
British people when Great Britain, once the world's industrial workshop, lost its indtstri
V
end For many of our contemporaries, ~~ .,...., IU 1L
particularly for the Americans, it is paychologic lly
difficult to understand d ~`
F-
g
o
e
rna con-
tradictions in society. Lenin formulated the basic law of the disproportionate development of
capitalist countries and industry.
bitter competition
petition and rivalry, through conflicts of interests' through dee Win
e
r
b
1
The industrial development of the capitalist countries has takennlaCe spbataneousi tl,r
ses and we leave the country and come back to the Soviet Union.
e
workers. we help them to put into operation and to handle modern industrial enter-
own country. We give them free know-how, We train their engineers, managers, and
lift
d
en them all kinds of modern machinery and assist them to produce modern machinery in
Y o wo per cezet. Sometimes we grant them economic aid. We
os
?eountries. We lend them capital under very liberal favourable conditions, at a very low rate
if interest - generall at one t t
.
velopment of socialist countries does not create rivalry among them; this is in exact contrast
to that which is very characteristic for the industrial development of capitalist countries.
There are twelve socialist countries in the world including two big powers - China and
the Soviet Union - and small nations - Bulgaria, North Korea, and so on. The Soviet Union
materially assisting the other socialist countries to develop their national industry, does not
have one single Soviet-owned industrial enterprise in those countries. There is no direct
Soviet capital investment in other socialist countries. There is no affiliation, no Soviet sub-
sidiaries, or any kind of joint stock company branches with Soviet participation in th
The industrial development of the Soviet Union has quite a different character. By.its
nature socialist industrialization in. the Soviet Union does not create rivalry between nations.
Let us take, first of all, Soviet relations with other socialist countries. The Soviet Union
favours the industrialization of all socialist countries and gives appropriate assistance to
them to develop their own national industry, agriculture, and transport
The industrial de
For example, China is developing its national industry on a very large scale and with
to co-ordinate their economic and industrial development.
1 iuv economic relationships of socialist countries. On the contrary, the socialist countries
r
s indus -
tri ized country. The Soviet Union is not afraid of Chinese rivalry. There is no such notion
i ` Wishing speed. In another ten to twelve years China will become the world' +hi
d
Giving each other fraternal assistance and support, the socialist countries will raise th
e
eco mic life in all socialist countries to a common high level corresponding to the modern
rectu ~ements of human life. The distinctive feature about socialist industrialization is that
it co ;olidates first - the national economy of the country, second - the mutual economic
relati '1s of the socialist countries.
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 Approved For Release 2000/09/11 : CIA-RDP62S00545A000100090020-5
Moreover, we are.of the opinion that all countries in the world may develop, and have to,
their own national resources to the fullest extent and to Industrialize their economy - to
create extracting and manufacturing industries, mechanized agriculture, modern transport.
The time has come for the industrialization of the countries of Asia, South America, and even
Africa. This industrialization is the march of time in the so-called economically under-
developed countries. It is the most solid material foundation for the economic and political
independence of those countries. If some foreign countries ask the Soviet Union to assist them
in the development of their own national industry, the Soviet Union will do its best to the extent
of its possibilities.
The seven-year plan will increase Soviet resources for the economic and technical
assistance of those foreign countries which might want Soviet aid for the development of their
own national industry. In this case also we do not seek in the underdeveloped countries direct
capital investment or some kind of joint stock company branches with Soviet participation.
We exclude that completely; we do not want any economic penetration or domination in under-
developed countries. We consider that all the national resources of each country belong to
the people of the country concerned and have to be used by the national forces and under the
national guidance in the interests of the people of that country. Extracting or manufacturing
industries, particularly in the countries described as economically underdeveloped, should
be national - I do not say nationalized, although. 1 do not exclude that. I mean nationally
owned, without any foreign domination in any of the branches of the industry of the country.
Economically underdeveloped countries have to receive genuine material assistance to develop
their own national iidustry and economy for the benefit of their own people and for strengthen-
ing their economic and political independence.
We exclude any kind of policy which leads to imposing economic or technical aid upon
underdeveloped countries; we exclude any kind of penetration of foreign interests into the
economy or policy of underdeveloped countries under the guise of economic aid or technical
assistance. Independent economic development of countries will lead tobetter international
economic co-operation.
The .seven-year plan is a plan for peaceful economic and cultural construction in our
country and It opens up large perspectives for economic co-operation with other countries
without any exclusion and regardless of differences in the economic, social, political, racial,
and cultural structure of countries.. We call on all people to develop peaceful economic co-
operation believing that this will help to preserve and strengthen lasting peace. I conclude
my speech by stressing once more the peaceful spirit of the seven-year plan for the develop-
ment of the Soviet Union's national economy.
?~~~1C
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