DIRECTIVE OF THE FIRST MINISTRY OF MACHINE INDUSTRY ON PRESENT CONDITIONS IN STATE-OPERATED MACHINERY INDUSTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700180301-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: September 6, 2011
• Sequence Number: 301
• Publication Date: May 21, 1954
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700180301-6
STAT
Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700180301-6
 Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700180301
DIRECTIVE OF THE FIRST b1IlIISTRY OF MACHINE I1HJU3TRY
ON PRESENT CONDITIONS IN STATE-OPERATED MACHINERY INDUSTRIES
The basic weakness of L'hina's rzachine industry, and its present st.nte of
disorganization, and technological and administrative deficiencies, have re-
sulted in a failure to fully utill:e the potential productive power of the
industry and also in an inability to :'ulflll the nced~ o: national construction.
Present Conditions
A preliminary analysis of the industry reveal:: the following situation:
1. It was discovered that present plant capacity is not being fully
utilized. Moreover, while some plants produce only u single item, others
produce many items. In many cases, plant equipment is improperly used --
such as using precision equipment to produce coarse goods and vice-versa.
Due to alternating periods of rush and slack production, machinery is utilized
at less than ,0 percent capacity. These hroble;na are caused by the blind sub-
,Jectivism of the cadres and their failura to correlate prroduction capacity to
general needs.
The i'ailure to achieve smooth production is n serious problem. With-
out exception, ali of the ';1 enterprises under this; ministry made the mistake
of stepping up production at the end of n worit period to take up the s1acY,
made at the beginning of the period.
3. Another serious problem is the poor quality of the output of rice
machinery industry. Often out-dated designs continue to be used and goods are
not properly checked in the production process for defective products.
4. In basic construction, government funds are wasted by poor planning.
Also, cadres have a tendency to orde:? more than their actual needs and to
demand immediate delivery of ~oodc.
Important Tasks
This is the first year of rho five-Year Iational Construction. Ylan and
an important year for national industriali:;ation. The total value of goods
produced by state-operated machinery plants muet be G4 percent above that
of 1952; labor productivity must be increased 24 percent, and production costs
must be lowered by 11 percent. Sin::e over ten projects will be initiated in
19>3, construction will rise 1>30 percent above that for 19;.
If the production plan for 19.3 is to be surpassed, the following steps
!st be taken:
1. F.:tis.ing plant:; must be reorganized to permit production according
to nn orderly plan.
2. Factories must implement u system o.' responsibility and improve
their production. techniques. Factories must produce new products and must
not stick to a single item.
Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700180301-6
 Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700180301-6
3? To eliminate errors in thinking among cadres and workers, leadership
in basic construction moat be strengthened. Planning must be stepped up and
planning data must be promptly furnished to the Soviet Union, which is helping
ua with our planning. In implementing project plane, cadres must avoid mistakes
made in the planning process. Finally, workers must improve their technique
by attending classes.
Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700180301-6