RUBLE EXCHANGE/INTERNAL LOAN POLICY

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CIA-RDP80T00246A001700410001-7
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RIPPUB
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C
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46
Document Creation Date: 
December 21, 2016
Document Release Date: 
November 12, 2008
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1
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Publication Date: 
August 20, 1957
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REPORT
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Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Next 2 Page(s) In Document Denied Iq Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 25X1 The introduction of a new rate of exchange for foreign currency into Soviet money for tourists coming to the USSR by no means signifies that the stability of the ruble is wavering. This s tleo has merely been taken for the purpose o E making it easier for tourists from other countries to visit the USSR. The official course of the soviet ruble remains just what it was: four rubles to the dollar. All financial operations with offices and organizations in other countries are based on this course. It is merely that an exemption has been made in the case of individuals -- of foreign tourists in this country -- an addition of six rubles to the official cou-rose of one nmerican dollar. As a matter of fact there is really nothing new in this measure. Most countries in addition to the usual official course have some type of special course for individual cases. Tow as far as the postponement of payment on our loans is concerned, that cannot possibly have 'ny effect on the course of our ruble abroad, for the reason that no one in any other country possesses Soviet loans. The truth is that the ruble is more stable than ever. That is nuite understandable, in my opinion, inasmuch as the state does not have to make payments on the loans for the next twenty years. In order to understand why payment on the loans has been postponed, a little bit about their nature must be understood. The Soviet Union received a backward and poverty-stricken economy as a herita-e from tsarism. T remendous funds were needed to develop industry and agriculture. whey could not be obtained abroad -- the cap-i_talistJcountries refused us credit. Under these circum- stances, the assistance accorded by the population in voluntarily giving the state part of their earnings constituted an important contribution to the development of our econ miy. During the first five-year ;?le.n the sum received from the population in the _:'orm I Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 --- Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 of loan subscriptions was equal to the co ct of bui l:lin2 three: iron and steel plants as ln.r.;e as the one at 1ia;nitogorsk. But it {roes without sayin, that the state cannot -float loans indefinitely. If they continue to be issued in increasin, sums, it becomes a burden for the population. And if `they c'.re is >ued in smaller sums, almost the entire sum will be used up in rpajin" out winnings and paying off loans that have expired. hs a result ther?E would be an endless and burdensome roces~3 of issuing and 'aying out loans that grew larger all the time. The soviet government decided, be{;inning '-iith 19'8, to :stop floating state loans and to postpone payment on the old loans for a 20 year period. The draft of this pl _en was placed before a popular poll and had the approval of the population. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 1st Program. We have received quite a long letter from one of our listeners in the U.S. and he25X1 begins by saying: "The February issue of Fortune Magazine carried an article dealing very extensively with the Soviet Union. After reading it, I have had several questions enter my mind." he would like us to answer his questions. This it is our intention to do. We will not stop now to read you all 25X1 his questions, as there are ten of them and they are quite full. We will simply say that they cover a broad range of problems from last year's events in Hungary to next year's World Fair in Brussels, and that Radio Moscow has asked its commentators to answer them one by one in the course of ten days,beginning today. The talks will take place every day at the same time -- 18.50 EST, with a repeat three hours later at 21.50. Today our commentator Alexander Alexandrov replies to first question. Your first question is whether the people of 25X1 Soviet Russia know the story of the Hungarian revolt, and also the opinion of the United Nations on it. In order to understand what raised that question in your mind, the first thing I naturally did was to find out what Fortune Magazine had to say about Hungary. And the main conclusion this left me with was that it was not for the Americans to ask us such aquestion, but the other way around -- It's we Russians who ought to be asking the Americans how much of the truth they 'know about what happened in Hungary? What makes me say that? Well, we Soviet people were too close Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 i Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 2. to the events there, living through them as we did right from the first day to the last, right at the side of the Hungarian people, not to know exactly what happened in Hungary. Soviet people not only heard how things were going there from their papers and the radio reports, but as soldiers in the Soviet Army they saw what was taking place on the streets of Budapest and other cities in the country with their own eyes. They saw the gangs that had carefully armed them- selves to the hilt well in advance of the events crawl out of their hiding places.and try to overthrow the legally elected government of the people. With their own eyes they saw American and west- German arms and equipment being moved into the country through the open border from Austria, and detachments of~ counter-revolutionary emigrees sweeping over that border. With their own eyes they read the American leaflets that were dropped on the streets, and with their own ears heard the American radio broadcasts urging the people to revolt. And they were there watching, too, when the insurgents opened the doors of Budapest's prisons and let out 10,000 common criminals and 3,000 Nazi war criminals, spies, and fascists. In front of them and the horrified inhabitants of the city, these cut- throats burned, hanged, and hacked to death Hungarian patriots, murdering these ordinary workers and clerks, Communists and non- Party people merely because they had remained faithful to their country and its popular, democratic mode of government. Finally, we Soviet people were able to personally apprise ourselves of the purpose of all these atrocities. With our own eyes we saw Otto Hapsburg, and Duke Josef, and Count Estergazy and the other landed aristocrats come out and demand the return of their lands, which had been distributed among the needy peasants of the country as a result of the peaceful revolution of 1945. We also heard .the Hungarian reactionaries announce that they meant to take the Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 3? factories away from the people and give them to the capitalists. We saw the Horthy gangs try to reinstate the old fascist regime which had chained and oppressed the people of Hungary between the first and second world wars. Nor is that all. We Soviet people also know the truth about Hungary because we were the only ones who came to the aid of our brothers in Hungary and helped them put down the uprising. And today we are giving them every possible economic assistance to help them heal the wounds left on the economy of their country as quickly 25X1 as possible. In case the American press has failed to tell you about it, let me give you a few facts about the nature of this hel Immediately after the disturbances, the Soviet Union sent Hungary huge quentities of foodstuffs, fuel and building materials, to keep the Hungarian people from becoming a prey to famine, cold and other hardships. These supplies were gratis. As a result of the talks held, in March between the two governments, Hungary is to receive goods and free valuta to the tune of 214 million dollars from the Soviet Union this year on a favourable ten-year, two per cent credit basis. And there is another point The Soviet people also 25X1 know the truth about the Hungarian uprising because they have been welcoming representatives of the Hungarian people and government to our country and receiving them here as dear guests. And these representatives, including Yanosh Kadar, the head of the government, have made public speeches here giving us all the details of what happened in Hungary last October. 25X1; That's how things stand with regard to whether or not the people of Soviet Russia know the true story of the Horthy counter-revolutionary uprising. The way your question is put, one would think that somebody was trying to mislead the Soviet people, whereas the American people had been told the whole truth and nothing Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12: CIA-RDP80T00246AO01700410001-7 but the truth. ' That's really where the tragedy lies -- the truth 25X1 about Hungary has been carefully kept from the peoples of the west, and especially the United States. It has been kept from them deliberately, for underhand reasons. By whom? you ask. By the same circles in"the western governments and political parties that encouraged the insurgents and helped them. And their purpose in doing so has been to hide their own part in organizing the counter- revolutionary uprising and to try to use that situation as another weapons in their cold war against the Soviet Union and People's Democracies. Unfortunately, the bourgeois press is the faithful servant of these same circles, and far from helping the American people to understand what happened in Hungary, it is doing everything it can to prevent it. Judging from your question, you too. have accepted the Fortune Magaine's false version, which shamelessly makes out the counter-revolutionary uprising in Hungary to be a people's revolution and claims that it was brutally crushed by the Soviet army. Yet Fortune is only. another of the Henry Loos publications which are known to specialize in vivious slander of everything Soviet. Can such a publication be expected to present objective reports on Soviet policy and activities? Obviously not. You must have noticed that not a single one of the anti-Soviet statements in the article is bolstered with facts. Fortune's version of events in Hungary is only a continuation of the big campaign of distortion and lies that other American magazines and newspapers have been conducting for some months now, and with them, the diplomats of both the United States and other western countries. That explains how the Hungarian question came up before the General Assembly in the doctored version with which Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 you are acquainted. The Assembly set up a special committee to investigate the situation in Hungary. But, strangely enough, the investigation is being conducted in the United States and west European countries; runaway traitors and enemies of the Hungarian people's government are being interrrogated, and the same lies and slanders they used to whitewash their crimes are repeated in the .committee's reports. And then this is passed off on the public as the truth about Hungary! Only fear of the truth can explain the hostile attitude the American and certain other western government have 5. taken to the present Hungarian government. The latter, after all, is in all respects the lawful government of the country, and the western countries maintain diplomatic relations with it. And yet not a single one of them has considered giving it material assistance. UNO is holding back the mandate of the Hungarian delegation to that body. Early this month the American and British embassies refused to attend the memorial ceremony in Budapest when wreath were laid on the graves of the American and British soldiers who gave their lives in Hungary during the second world war. Aside from the fact that this was an-insult to the finest feelings of the Hungarian people, it seems to say that the American and British governments now regret that their soldiers gave their lives to help free the Hungarian people from fascist slavery. Perhaps it was something of the same feeling that drove them into such a rage when a new attempt to enslave the Hungarian people failed last October? All I can say in conclusion, is that the hostile propaganda unleashed in your country against the Soviet and Hungarian peoples is hardly the right prism to look through if you want to see the truth about Hungary. Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 2nd Program Yesterday we began a series of replies to ten questions from an American listener the coming days we s hall reply to another Every day for 25X questions. Today you hear the reply of a Soviet journalist, MMMikhail25X1 Nadezhdin which read as follows: Do Many people flee into either Russia or the satellites each year? How many? Here is what Mikhail Nadezhdin says in reply: In your letter of April 2nd,l you ask whether many 25X1 people come to Russia and the people' democracies to live. I under- stand that you are interested in who these people are and why they come to our country, or, if they were formerly Soviet citizens, why they return to their homeland. To understand, that we must first take a look back. You have probably heard that following the war quite a large number of Soviet citizens or so-called displaced persons found themselves in West Germany and other countries Nazis had driven from their former prisoners of war, had disgraced themselves in the West. These were people whom the homes to work in other countries, or a certain number of people who by collaborating with the Germans during the occupation and retreated punishment. After the war, most of the Soviet Union. There are with the Nazis in order to escape these displaced persons returned to still some living abroad now, and not only criminal elements, but honest people too -- although the latter are in the mindrity, -- and if they have not returned, it is only because the command of the British and American Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 ____ Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 occupation armies it West Germany tried so hard at the time to keep them from doing so, intimidating them with stories to the effect that. their very having beem abroad was a "crime" in Soviet eyes. From a human point of view, it is easy to see how these stories could give rise to doubts and hesitation in the minds of the displaced persons in question. Living far from their country for many years, and subjected to the false and hostile information of the foreign press and hearsay, one can readily understand why they lost their heads. But now these same people are coming back by the thousands. And Why? Because they have realized what a mistake they made. also because the Soviet government has facilitated their return by granting amnesty to all former collaborationists. Even those who took part in anti-Soviet subversive organizations after the war have been assured safe return and pardons provided they make a clean breast of their deeds. Let me give you several examples thatshow what prompts people to come back to their homeland. As a journalist, I have met quite a few of them. Johannis Skeberdis has returned to Lithuania from Canada. "I lived abroad for many years," he related, "and what have I to show for it? Perhaps I became a scientist, or an engineer, or even just a skilled worker in Canada? Nothing of the sort! All I did was wash dishes in a restaurant at 75 cents an hour. Life has turned out differently for my son, whom I left behind in Lithuania when he was just a little boy. He went to college, and became an engineer..." The stories of many of the other displaced persons are no different. I wouldn't say that all of them have had the same fate abroad, but it is certainly true of the overwhleming majority. U Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 3. How about those who betrayed their country during or after the war? Well-- they are lso coming back. I have been to Ostankino, where Victor Zalessky now lives and works. Taken out of the country as a prisoner of war, he succumbed to the anti- Soviet atmosphere of migree circles abroad and for four years was active in the subversive anti-Soviet organization known as the "League of Struggle for the Emancipation of Russia." Today he is teaching mathematics in Ostankino, in one of the building schools is there, while his wife heads the curricular department of one of the municipal schools, and his dauther is a student in a Teachers' College. There are scores of people like Zalessky who have come home and found a place for themselves again in life. Among them are quite a few who while abroad were enlisted for espionage Work by American and other sevret services, underwent training there, and were sent to the Soviet Union to carry out secret assignments. I don't know whether you have read the reports of the press conference given by a group of such people at the Soviet Foreign Ministry. In case you did not see these reports, let me quote from the account one 25X1 of the men, Nikolai Yakuta, gave at press conference. "It took us some time to make up our minds to give ourselves up," he stated. "But contact with Soviet realities showed us that we had been cruelly deceived by the American secret agents, and that they had lied to us about our people". By the way not only Soviet citizens come to the Soviet Union to live. In recent years there have been many applica- tions for permission to live in our country and to take out Soviet citizenship from foreigners as well. Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 25X1 11 many people come to the Soviet Union and 25X1 all kinds of people, with all kinds of reasons for taking this ,step,, but common to them all I believe is the realization that in the Soviet Union they can live and work for the benefit of society under conditions of freedom and democracy. And that suggests another example, which I am sure you too will find very interesting, Mr. Kuehn. Last September the Red Cross societies of Spain and the Soviet Union reached an Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 5. agreement on the return of about two thousand Spaniards to their own country. These were people who had been received here as small children, at the time of the civil war in Spain, at the request of their parents, who wanted to save them from the horrors of that war. They left the Soviet Union last September, and by the middle of Apri some two hundred of them were already back here from Spain. The other day I met several of them and asked them what had induced them to come back. Each replied in almost the same words: "The working man has a better time of it and is freer in your country than in Spain". As for why foreigners go to the people's democracies to live, I don't know that I can speak for them (perhaps it 25X1 would be better if you asked them directly. All I can suggest is that they are probably motivited by much the same reasons. v Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 3rd Program 25X1 One of our American listeners question has addressed ten questions to Radio Moscow which25X1 occured to him when reading the articles about the Soviet Union published in the February issue of Fortune Magazine. our commentators are answering these questions in a ten- day series of talks which began last Saturday. You, will be able to hear them every day till April twenty-ninth inclusive, at 6.50 Eastern Standard Time, with a repeat at 9.50. In this evening's talk, our staff commentator,Alexander Alexandrov answers writes: Your third. I quote: "Since Kremlin has been Do you feel that you will recall, is this. 25X1 collective leadership has replaced (Stalin the losing its grip on foreign Communist Parties. this decentralization is good or b'iad?" Your statement of the question is incorrect from beginning to end, and that is the outcome of deep misconceptions and a lack of knowledge of the real state of affairs. I ',have to tell you this for the sake'o.f truth. Apparently 25X1 a desire to know the truth was the motive behind your questions. Fortune Magazine which led you to ask your question was guided by entirely different motives. Its aim is to instill hatred and suspicion of everything Soviet and to create the impression that people in other countries censure the way of life the Soviet people are building and defending. And in order l to prove the unprovable, it has to dissemble, juggle facts, and engage in wishful thinking. The cold war crusaders have to third question. Here is what he 25X1 .1 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 - Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 resort to such means beccause they have no others. But to get down to the essense of your question. "hy is your statement of it incorrect and unfounded? Fortune has started talking about "de-Stalinization" in ahattempt to discredit the USSR and Communism. As a matter of fact there is no de-Stalinization just as there is no need for such a thing. In the closing period of his life, Stalin did commit a number of errors. But that was not all that he did. And who does not make mistakes? For that reason, the Soviet people, having revealed those mistakes and roundly condemned them, continue to place high Stalin's tremendous services to the country. And in order to ensure against such mistakes being repeated, the Communist Party of the Soviet Union has established principles of eollective leadership and is continuing to strengthen and develop democracy in all sphere of life in our country. For that reason, it is 25X1 incorrect to contrast a period in Stalin's life with the present collective leadership. The"Com-munist Party's chief aim now remains, as before, to work for the welfare of the common people. And that brings us to the second part of your question, I don't want to be rude, but to allege, as you do, 25X1 that the Kremlin controls communist parties abroad shows that you have a completely distorted idea of the Soviet Union, its Communist Party and the international Communist movement. The enemies of Communism thought up that falsehood in order to scare people with the notorious "Communist Menace", and. with myths about the world Communist plot. But how could anyone believe it? The colidarity among the Communists in different countries Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 3. stems from their-common aims which are to create a state system under which there would be justice, freedom and democracy for al J lth shared in common. But that solidarity of ideas all wea and s never had anything in common with a plot nor with interferen?4 ha C i sm ommun ce by one Communist Party in the affairs of another. is a science created by the great humanitarians, Marx, Engels and Lenin. And Communists in any country know that a new system cannot be imposed from without. But if the conditions for its ascendancy develop, the people of the country concerned will occupy themselves with consolidating it. Outside inter- ference, Communists hold, would only injure the cause. Lenin many times referred to the export of Communism as nonsense. And look for yourself and see what the solidarity, friendship and cooperation among Communists of different countries has meant in.practice. They all, in cooperation with other democratic organizations, came out in a united front in the period between the two wars, against the plans for preparing another slaughter, and they carried on an energe- i N s the az tic struggle against those who were preparing it - fascists in Italy and Spain, and the militarists Germany, the were t t s in Japan. And when the war did break out, the Communis among the first to call for resistance against the aggressors and to lay dowm their lives for the liberation of their les from the horrors of Hitlerism? eo p p Since `r orld War II, the Communists of different countries have taken similar stands where ways for promoting peace and world. security are concerned* They are unanimous in their demand for universal disarmament, a ban on the nuclear weapon, _ Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 4. a stop to the cold war, and for the government to renounce the policy from strength. 'hey are unanimous in wanting peaceful coexistence and the development of friendly trade and cultural contacts among nations. And though certain of the haters of Communism and the chasers after profits from another war don't like this unanimity, that does not mean that it is a bad thing. The Communists are unanimous on these points because they all want a lasting peace for mankind and peaceful coexistence of the two systems. That is also "eninist policy. But you should understand yourself that to have a common viewpoint on the problems of humanity does not mean that one party is giving orders to another. No Communist Party, and the Communist Party of the Soviet Union all the more so, desires anything of the kind. o dictate would only disrupt unity. And the talt about such a thing is merely a malicious fabrication by enemies of Communism. For that reasons your question about a "decentralization of the inter- national Communist movement is merely a misunderstanding arising from your believ in these fabrications The revelation of Stalin's mistakes has beyond doubt LJ~.I impelled the Communist parties in other countries to make a critical review of their activities and to eliminate their own mistakes if they have made any. ?l he elimination of mistakes and misunderstandings, naturally, will still further strengthen the international mutual understanding among Communists. of mankind And that, from the standpoint of the interests will be a very good thing -- a very good thing. I Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 CIA-RDP80T00246AO01700410001-7 4f 4th rogram. listener in the United States We continue now with our answers to questions by a February issue of Fortune magazine, a number of questions In reading the articles about the Soviet Union in the 25X1 occured which he has addressed to Radio'Moscow. 25X1 We're answering them in a series of talks which will be on the air every day till April 29th at 6.50 p.m. Estarn Standard Time a repeat at 9.50 p.m. Tonight we're answering fourth question. Hez25X1 is what our commentator Alexander Alexandrov writes about it. 25X1 As usual, we'll begin by quoting your questions. You write: "With the de-Stalinization of Russia your country has moved closer to a peaceful stand on world problems. As your five- year plans are continued they are becoming more and more successful. Your country is moving closer and closer to a Socialistic way of life. Is it possible that the future may see Russia ruled by a. council of several men with supporting legislatures, and that your country will continue past 6ocialism and drift into Capitalism? that, as you see for yourself, is the dream of the editors of the magazine Fortune we are talking about. However, they have a bitter disappointment coming to them. But before explaining to you just why that will happen, I want to make a couple of remarks concerning the wording of your question. Neither the Soviet people not their Communist Party nor their government have been "de-Stalinizing" as you put it. Nor have they any intention of doing so in the future. And that is for good and simple reason that there has never been any such r; thing in existence as "Stalinism". That is a vulgar term If not, why not? As conserns Russia's returning to capitalism, 1 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 2. invented by anti-Soviet propagandists in order to discredit the great process of building a Communist society in the USSR. That society is being created in accordance with Marxist-Leninist scientific theory. Furthermore, what do you mean by your assertion that Russia has moved closer to a peaceful stand? One would have to be blind not to see that Soviet Russia took peaceful coexistence, a struggle for peace, and friendship among nations as the corner stone of her foreign policy. right from the beginning -- from the very first day of her existence. And the Soviet Union has never deviated from ? b that course and never will deviate from it. If a number of vexting international problems - problems of our time still remain unsilved it is not our fault. To my mind, it is the actions of the American government that are forcing its country and also its allies in Western Europe to be eternally balancing on the brink of war. But that's just a remark in passing -- just for clarity. 25X1 Now for the chief point in your question We are not only, as you put it, "moving closer and closer to a 6ociastli way of life," we have in the main, already built socialism, and are now beginning to develop it further -- to carry out gradually the transition from Socialism to Communise. Millions of people take an active part in administering the Soviet state, in the most democratic possible way. Why should we give this up? To make it clear to you -- I'll just recall for you the main features of the Soviet system. The highest government body in the USSR is.the Supreme Soviet, an elected body. It does not consist of a few members, but of more than 1300 deputies. And they are not professional politicians who are out of contact with the people as they are in the Western countries including Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 wow_ 3. yours, but of workers, peasants and professional people really chosen by the people. And each of the republics of the Soviet Union has its own Supreme Soviet which exercises the highest power there. The government bodies in the smaller administrative areas of the country -- the territories, regions, districts, cities and so~~on, are also.elective bodies -- local councils of.people's deputies. The Supreme Soviets appoint the highest state administra- tive bodies -- the Council of Ministers of the USSR and of the republics. The local administrative bodies are the executive committees of the soviets, or councils, of people 's deputies. This system ensures the Soviet people-against any violation of the laws; it ensures them that the state will look to their welfare, and it also ensures them broad democracy. Citizens of the. USSR .enjoy freedom of speech and the press, freedom of conscience, and freedom of assembly including the right to hold meetings, street processions and demonstrations: IT heir persons and their homes. are inviolable and the secrecy of correspondence is absolutely guaranteed. From this, of course, it is not to be assumed that our system of state administration will never have changes made in it. It is being improved constantly. Right now, for instance, the whole country is discussing proposals for reforming the management of Soviet industry by doing away with the centralized ministries and replacing them by economic councils which would manage industry in economic areas. The progress of the socialist system means the development of freedom and democracy for allrmetmbers8 of. society. According to the sd.ientific deductions..of 16arx.,' Engels and Lenin, when a Communist society is b-uilt;' it will be poes.ble to do away of others. And thaat . is bb l I rgpan vz cv na~~usz~iv , vy JLU #"-'' '- ' take. place. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 4. And since the Soviet people do not want illusory 25X1 bourgeois democracy, they are still more against any resurgence of capitalist ways in their country. I know the Western press just licks its chops whenever the Soviet Union tackles some temporary shortcoming or other in its economy. It gives it an opportunity to shout: "Crisis in the USSR! "state capitalism", and so on and so forth. That's just the hue and cry you are witnessing now. And Fortune has joined in it. In a word, the enemies of socialism are doing their best.to persuade the Western public that nothing has come of socialism. But they are doing that most of all because all is well with socialism; it is not socialism that is falling to pieces but capitalism. And since socialism has shown its advantages, since it is having one success after another, the Soviet people will never give it up. They will advance further, and only towards Communism. It is socialism that is responsible for all the economic and cultural achievements of the peoples.of the USSR. Now all the country's wealth, its floarising industries, its rapidly developing-anr:riculture, its mineral resources, its forests -- everything in the country -- belongs to the people and the people enjoy it all together. They are developing their economy for the common good. And only the most naive could imagine that they would ever take it into their head to give all that to capitalists and take to breaking their backs a-;ain, to give them profit. Russia has already tasted the joys of capitalism -- she has drunk deep of a huge cup of bitterness, sweat and tears. And her people will never try to turn the wheel of history back, nor will they permit would-be restores of capitalism to=.&o it from outside. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 5th . rogram. This evening we're answering we quote: "Is your labor organized into unions'Y 25X1 } What caused the sitdown strike in the Kaganovich bearing plant?" Our staff commentator Lyev Setyayev, has answered the question. Here is what he writes: There Eire 'trade unions in the USS~ an important part in the life of the country. Your question is a very typical one from an American. It has been asked in several of our letters from the United States. It is true, as a matter of fact, that it may seem strange at first glance that there should be trade unions in the USSR. There are no private oropriators against whom it might be necessary to defend the workers' interests. The factory managements consist of state employees just like the workers themselves. Both of them are working for the same aim -- the building of socialism. That means that the workers and the management have the same interests. it must be borne in mind here that the management may wever H , o make mistakes, there may be shortcomings in its work which affect the position of the worker. It is in such cases that trade unions are needed to defend the interests of the workers. Vladimir Ilyich Lenin called the Soviet trade unions "schools of Communism' The trade unions teach the workers how to manage socialist industry.! the trade unions in the USSR are a major force. They have a membership of over forty-five million. `hey have branches at every factory and institution. The unions see to it that safety regulations and wage laws are observed; they conclude yearly contracts with the factory managements, and occupy themselves with social security, improving living and working conditions, vacations, and so on. In his theses on the reorganization of Soviet economic management, Nikita Khrushchev underlined that in the future, the role and significance of the trade unions in Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 managing enterprises would still further increase. Labour and wages are among the most important things the trade unions occupy themselves with. They take part in planning the payroll, and see to it that the worker gets the right pay for his work. At the end of last year, for instance, the wage scale at many factories was raised. The project was worked out by the USSR Central Council of Trade Unions, and before it came into force, it was discussed in details by the workers at factory and shop meetings. They made many suggestions and amendments to it. In your letter, you mention the Kaganovich 25X1 Bearing Plant. So in my remarks about trade unions I shall be taking my illustrations from that plant. It is interesting to note what has been done there to improve working conditions.. Last year over one million rubles was spent for the purpose. In the automatic turning ship, mobile devices for handling the heavy machine-parts was installed. In the roller-bering shop, five cranes were installed for transportation purposes. In the forge, automatic devices for handling the blanks to be forged were put in. Now the workers don't have to do any of this by hand and the accident risk has been completely done away with. The trade unions have charge of the distribution of state social insurance. They issue sick insurance and see to it that the medical services and health protection measures are kept at par. The trade unions also provide their members with health- ful and. pleasant vacations. hey arrange for their accomoda- tions at health resorts, and pay seventy percent of their cost. The worker pays only thirty percent. So if the cost is a thousand rubles, the worker only has to pay three hundred. Last year, the trade-union at the Ka-anovich plant paid out about a Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 3. million rubles for this purpose. Also the trade union maintains a so-called night sanatorium for the workers at the plant. It can, take care of seven hundred people a year. The worker spends all his time outside working hours at the sanatorium. He sleeps and gets his meals there, and is given whatever treatments he needs. There are also recreation facilities at the night sanatorium. The trade unions do a great deal to improve the living condi- tions of the workers. The Fearing Plant is building a lot of housing for its personnel. Just recently a seven-story apartment house was turned over for tenancy there. Also, many of the workers are building their own homes. The trade union gives them loans on easy terms and helps them with building materials. Much is done to im,)rove the cultural level of the workers. The plant has its own club where the personnel can see a movie, dance, and enjoy a considerable number of recreation facilities. The factory trade union committee also maintains a big library and reading room for the personnel. As for the sitdou'm strike that supposedly occurred at the Bearing Plant, Fortune has ben pulling your leg. There was no such thing. The rumours the Western press circulated about it were refuted long ago by Radio Berlin correspondent Heinz ~'?~ Stueler. About a month ago, he decided to check up on them. Stueler had detailed talks with workers and trade-union leaders at the plant and, when he asked them about the rumoured strike, they were very much surprised. For that reason, it would have been much more correct to state your question in this way: Are there any labor disputes at Soviet plants, and if so, how are they settled? Labour disputes between personnel and management do occur, and we're not afraid to talk about them. Disputes may occur concerning pay for overtime, payment of bonuses, dismissals Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 from work, and so on. There are special commissions, called labor dispute commissions at every enterprise which settle such disputes. They are made up of an equal number of members of the personnel and the management, all of whom have aneclual voice in the matter. Each case is discussed in the presence of the person cohcerned, and the committee's decision does not have to be approved by any other body. If the person is not satisfied its decision he can go to law about it. with I went to the Bearing plant today in connection with your question and had a talk with Vitold fsheradovsky. He works in the,machine-repair shop and is one of the workers' representatives on the committee on labor disputes. I asked him for some examples of the disputes which had been decided in favour of the workers. Vitold Psheradovsky said that the committee had had such a case just recently. One of the shop foremen, Anisimov, was discharged as being redundant on Janury twenty-fourth. The personeel department did not find him another job and Anisimov was without a job till Narch fifteenth. He demanded pay from the plant management for this time. The management refused to pay the whole sum, but the committee took the side of the worker and the plant paid him his average earnings for the time he was out of work. Or here's another instance-of the kind. A mechanic named Sorokin, in the roller-bering shop, repaired several machines in January and he got a bonus for the job. But in February, one of the machines broke down again, and fifty percent of Sorokin's bonus was deducted from his wages. Sorokin applied to the committee of labour disputes. A through investigation was made and it was found that Sorokin's work was not to blame for the machine's breaking down. Sorokin's bonus was returned. Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 CIA-RDP80T00246AO01700410001-7 5. 25X1 And so you see labour disputes in our country are not settled and never have been by strikes of any kind. The workers just haven't any reason for striking. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 bth2rogram. This time our observer Stanislav P11enshikov is replying to the sixth questio "does your industry 25X1 estimate it will be able to enter world trade competiion on a large scae? What products do you think will be exported?" In replying to those-question I should like tc25X1 make the point right at the outset that they are really not worded quite correctly. The Soviet Union does not intend to take part in international competition, because our economy does not and will not experience any heed for the conquest of world markets. Now that may sound strange to people living under the conditions of the capitalist system and accustomed to seeing day after day how private business houses, large and small, do their.utmost to raise their sales and the level of their profits, making use, among other things, of the markets of other countries. There are no private companies in the Soviet Union. The overwhelming majority of the goods turned out belongs to the state. Goods are made and sold according to a general plan. And for that reason we always have the opportunity of finding the best consumer for any goods right here in the country. This does not mean however that we are not interested in commercial ties with other countries. To promote its economic development the Soviet Union readily makes purchases abroad of many types of machines, equipment and raw materials. But trade cannot be one-sided. In order to have the opportunity of importing the goods we need, we must sell our own goods in other countries. Our state sets aside a certain part of the output of industry and agriculture for export. And our foreign trade organizations see to it that these goods are purchased by foreign consumers. Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 2. 25X1 The Soviet Union now has extensive business ties with the People's Democracies in Europe and Asia. But this is certainly not a question of competition. Our economic cooperation with the countries belonging to the socialist camp would more correctly be called mutual assistance. By means of mutual trade, the socialist countries are working to-11ards unity of effort, and are helping each other in achieving a rapid economic upsurge and technical progress. In trading with the underdeveloped countries of Asia and Africa, the Soviet Union follows consideration of mutual advantage!! At the same time, the Soviet Union is ready to give and does give economic help to 'those underdeveloped countries which desire it, without any strings attached. The Soviet Union is also interested in extending its commercial contacts with all countries because this would help to improve the international political atmosphere. You can see from what has been said that even 25X1 though the Soviet Union is not entered in world trade competition to use your own phrase -- it has extensive foreign trade ties and is interested in seeing them still larger. You would be wrong you thought, as is so often assumed in the West, that our country holds only a modest place in world trade. On the contrary, the USSR is today one of the largest trading nations in the world. Its total foreign trade turnover amounts to more than six billion dollars. Only five other countries, the United States, Great Britain, West Germany, France and Canada, have a larger foreign trade turnover than we do. Before the second world war, the situation was quite a different one -- we held only 16th place in the world then. So it has been precisely in the past few years, in spite of the unvilling- Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 3. ness of a number of western countries to trade with us actively, that the Soviet Union has begun to conduct its foreign trade on a truly large scale. And in this same period another very essential change has taken place. Soviet industry has been advancing rapidly and has begun to enter more and more actively into our exports. The Soviet Union has now become one of the most important exporters of oil products, ferrous and non-ferrous metals and, what is especially important, machines and equipment. The specific weiTht of the latter in total Soviet exports has now grown to 22 percent, as-against 5 percent in the pre-war yesrs. Soviet engineering plants export equipment for the oil, mining, chemical, steel and aluminum industries, for electric power stations, they export tractors and other farm machines, automobiles and other goods. Soviet equipment finds eager buyers not only in the People's Democracies and the underdeveloped countries, but also in some capitalist states with well-developed industries..' recall hat Dressers industries of the 25X1 You may' United States last year bought from the Soviet Union the licence for the manufacture of a new Soviet-designed turbo-drill. But the U.S. State Department stepped in and. prevented the deal from being realized. It is a fact, however, that there are busine3s men in the United States who are interested in the purchase of Soviet goods. Judging by the Way Soviet industrial goods are regarded in foreign countries, their export should be increased greatly in the next few years. This is a natural process. No matter how hard the author of the article in the February issue of Fortune tried to prove that there was a "crisis" in Soviet industry, facts remain facts. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Of the 40 years that the Soviet government has existed, 18 years have been spent fighting wars forced on our country or liquidating the economic consequences of those wars. Neverthe- less, as compared with the pre-revolutionary period, the volume of industrial production in the USSR has risen 30 times, and as against 1940, four times. In the case of the machine building and metal working industries, output has risen 180 times since 1913. The Soviet Union. has become the second most.important industrial power in the world, and is confidently overtaking the first -- the United States. This means that Soviet foreign trade in industrial products will continue to grow. Sometimes the expansion of Soviet foreign trade is pictured by the press in your country as some kind of an "export offensive" which, supposedly, threatens manufacturing firms in the United States with the loss of markets. I do not believe there is any serious justification for fears of this kind. The volume of international trade has been growing of late, and there is plenty of room on the world market for all the goods for which a demand really exists. On the other hand, the increase of Soviet industrial exports does not mean that we have any intention of cutting our imports of the products of foreign industry.. OUT country continues, as in the past to be a large importer of machines and equipment. Many firms in Western Europe, which have regular dealings with our foreign trade organizations, know that the Soviet Union imports machines and equipment-every year to the approximate value of one billion dollars. Our imports in this field include sea-going and river boats, boilers, power station and foundry equipment, machine tools and so forth. There could be nothing more absurd than to think that the Soviet Union is striving toward autarky, which is a national policy of netting ~r. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 along without goods from other countries. In my opinion,F all of the aforesaid offers a sound basis for closer commercial ties being established between the Soviet Union and the United States, and I sincerely hope that such contacts will develop more successfully in the future than they have up to the present. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 7th Program. 25X1 Toni ht we deal with his 7th question "Russia's problems stem from the time of Peter the Great and his quest to westernize Russia by obtaining warm water sea ports. Is Russia still trying to get these warm water ports? Will they be needed in order that you may enter world trade?" d at is , U - l ? The problem you have in 1I1_L11 warm water seaports, was of great significance to czarist Russia long before. the days of Peter the First. Long after it had become a great power Russia still lacked an outlet to the seas on which lay the international trade routes. That naturally hindered its economic development and so Czarist Russia persevered in its serch for an opening. That does not mean that Russia did not. trade with other countries'. It did, by overland routes. But a great country needs more mercantile arteries with the outside world, As far back as the 16th century Czar Ivan the 4th, known as! Ivan the Terrible, again and again sought to get out to the Baltic Sea. He was frustrated by Sweden and the Germanic states, while in', the south Turkey and the Cirmean Tatars blocked all egress to the Black Sea. By the time Pter the Great ascended the throne Russia's need for broader trade and cultural ties with other European countries had grown much more pressing. That need and aspiration were most plainly expressed by Peter the Great during his reign at the end of the 17th and the beginning of the 18th centuries. After its successful land and sea wars against Sweden, Czarist Russia obtained an outlet to the Baltid Sea. That is when Peter built his new capital, the town and port of St. Ptersburg -- now Leningrad-- on the banks of the Neva. Peter the First also tried to obtain an exit to the Black - Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 yea, but in vain. It was only under Catherine the =nd that Russia at last achieved that goal. The Baltic and Black Sea ports grew very rapidly and served as vital trade arteries to czarist Russia. And when 1-3iberia and the Far East were broucht under its win;, Russia also obtained ports on the Pacific Ocean, but these developed much more slowly, due to their greet distance from the center of Russia. Mention should also be made of the northern trade route, which is connected with Murmansk, a port which never freezes over. From this brief historical note you can see that 25X1 by the time of the 1917 revolution Rurria has sifficient warm water sea ports through which she traded with other countries. After the revolution of 1917 Soviet Russia lived through the difficult years of the intervention launched by the capitalist countries of Europe and America. The interventionists set them- selves the goal of crushing Soviet power and dismembering, Russia. But they never succeeded. The Soviet people smashed then and flung them out of the country. Soviet Russia retained intact territorially, keeping its vital conmetcial ports on the Baltic and Black Sea boards and on the Pacific coast. You ask if the Soviet Union needs warm water ports in order to enter world trade. I think the answer is clear. The Soviet Union already has ports and everything else needed for successful trade with other countries. It does not nerd to acquire any 25X1 more and has no expansionist designs. Our country possesses everything necessary for steady economic development. We have an enormous territory,.covering one-sixth of the earth's surface, and countless deposits of useful minerals. Our country is like an enormous warehouse, with all the iron and coal, oil and bauxite, gold and diamonds and many other rare metals -- some of them exceedingly rare--that are so indispensable in '7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 7 Approved For Release 2008/11/12 CIA-RDP80T00246AO01700410001-7 modern production. The Soviet people will take decades to explicit even a part of these tremendous riches. Take all that into consideration and you will understand many things about our economy, policy and trade, the latter seems to interest you most. Before concluding I want to return to the question of trade. 1e are not selfish, and don't hoard our riches like Midas. We are very willing to share them with anyone who wishes, on the basis of mutually advantageous trade. And there are many countries who wish to trade and to trade with the Soviet Union, both socialist and capitalist countries in the East and West. That brings me to America's trade policy. I don't want to go back to the distant past. There have been bad and good example. There was fruitful trade between our two countries in Roosevelt's time. But let us take the past -ten years. If we look facts square in the face we will see that Washington's Policy for nearly ten years now has been to,set up an embargo against the,Soviet Union. The United States itself broke off trading with us and is trying to compel the West European countries to do likewise. The purpose is clearly to retard our economic development. Has anyone in Washington thoucht whether it is feasible? This is like imprisoning a man in a warehouse full of food and waiting for him to die of hunger. Don't you agree that it's absurd The American 25X1 policy of blocking trade with the Soviet Union is even more absurd. We want to do business with the United States and many Americans obviously want this as well. But the State Department is of a different mind. The Soviet Union is not fading away or dying as a result. Our economy is developing at a rate that neither the United States nor any other capitalist country has ever known. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 4. The politicians in 'Washington want to fence off the Soviet Union with trade barriers, but we are steadily expanding our commercial connections and increasing our trade turnover every year. And the West European countries have no desire to sit on this American fence. They are doing more and more business with us, despite the American ban. So that the discriminatory trade policy is proving a bommerang, after all. Before closing I want ti emphasize that the Soviet Union has everything necessary for broad, fruitful trade with other countries. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 the 8th Pro gram. Today you can hear the reply to the 8th question by Moscow Radio commentator Vladimir Volgin. question reads as 25X1 follows: "The Russian government is willing to withdraw its troops from Europe if the United States do the same. is this due to the fact, that too much of your budget, just all 25X1 as ours, is being spent on the armanent race?" Yes, there is indeed a great desire among the 25X1 people and government of the Soviet Union to cut military expenditures, and that is unquestionably one of the things that has prompted the Soviet proposal of which you speak. Still, it is only a secondary, not the main reason. The main reason is that our government regards the withdrawal of foreign troops from the territory of other states as a key to greater trust and under- standing among all nations -- as one of the decisive factors in strengthening world peace and security. Suppose we stop for..a moment, and consider the situation that has arisen in Europe. The Old World is split into two opposing camps. In one of them, NATO forces are stationed, in the other, the forces of the Warsaw. Pact countries. Each has turned the mouth of its guns at the other. We here consider that to be an abnormal situation, and , in fact, a very dangeours one, liable to lead to all kinds of conflicts and clashes. This situation is the direct result of the creation of the North Atlantic Pact. You must remember that without NATO, there would have been no Warsaw Pact. When the diplomats in Washington set up NATO, and began to accelerate military preparations, throwing a rind of military bases around the USSR and other socialist countries, and then began to arm the West-German revanchists there was nothing left for the socialist countries but to take measures to guarantee their own security. And so they --- Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 ?_. concluded the Warsaw Pact. But even at the time o'L its coact sior the Soviet Union came out against the existence of such facts, the effect of 1.Aihich is to split Europe into two military blocs. It still holds to the same view today. "7e believe that the best way to assure Europe and America peace is through a system of' collec- tive security embracing all the countries of i;urope and America. This has been repeatedly urged by the Soviet Union, only to be rejected each time by the United States. It goes without saying that acceptance of the Soviet proposals on the liquidation of such blocs would. greatly facilitate the regulation of the German problem. The evacuation of foreign troops from the territories of both. the German federal and the German democratic republics would pave the way for a settlement of the que_$tion of German unification by the will and energies of the German people, who themselves, after all, are the ones directly concerned. Unfortunately, the ruling cirles of the United States have failed to heed the voice of reason, and are persisting in-their splitting activities, even intensifying them by helping the rebirth of the Hitler Wehrmacht in West Germany. They have rejected the Soviet suggestion that all four powers withdraw their troops from Germany. Despite the atubborn position taken by American diplomacy, 25X1 the Soviet government is still doing everything in its power to find a mutually acceptable solution of the problam of European security. Inasmuch as the western powers are not ready not to do away with the blocs, our government has suggested that a non-aggression pact be concluded between the NATO and 'Narsaw Pact countries, and that certain measures be implemented as a beginning. Although they do not embrace all aspects of the problem, these measures could lead to substantial progress. Perhaps, you have read about the Soviet government 25X1 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 3. disarmament statement of November 17, 1956. Among the measures suggested in that statement are: a one-third cut in the armed forces of the four great powers in ermany; the marked reduc- tion of American,. British and French forces stationed on the territories of the NATO countries, and of the Soviet forces stationed in the `'Warsaw Pact countries, and also the abolition of foreign military bases in the course of two years. These sugges- tions also provide of course for a suitable system-of control over the. implementation of these measures, including airphoto graphy in the areas where most of the NATO and Warsaw Pact forces are stationed. These suggestions tand good today, just as when they were made last autumn. We are holding to them because we believe they are the real key to the question of peace in Europe. They offer the only effective and radical solution to the wide problem of European security. 25X1 let us return to the part of your question in which you touched on the Soviet and American military budgests.1 The Fortune article of which you speak tries to prove that our economy is heavily burdened by huge military expenditures. The magazine makes this claim without any attempt at proof, and for reasons best known of it. But the truth of the matter is that our country's defense outlays look rather small compared to the military appropriations of the American, budget. In the U.S. budget, 63 per cent of experindires go for military purposes, whereas the Soviet Union has limited that item of expenditure to 16 per cent. This comparison in itself says a lot. And what has actually been taking place in the. Soviet Union in recent years ays eve125X1 more. Our country has made great economic strides Not only have our people reconstructed the cities, villages and Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 factories destroyed by the Nazis in the war, but they have brought our economy a long ways ahead. The general standard of living has been raised. They have mana,ed all this because our country has been pursuing a policy of peace and directing most of its resources for civilian and constructive needs. That is an intrinsic feature of our socialist development. Our economy is patterned not for arms races and rusing military expenditures, but for peaceful constructive work and the ultimate aim oi''which is a continued rise in the living standards of the people. That is That's where the real crux of the matter lies why we want tensions relaxed, arms cut, and peace ensured 25X1 throughout the world. Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 the 9th Program. Tonight our observer, Alexander Petrov, deals with his ninth question. "Russia As a rising country has many 25X1 openings for its youth. `What are the prospects of Russia's young people?" Here is Alexander Petrov. If you don't mind, I want to go back into Russian 25X1 history a little before answering that question. Back in 1920 the Young Communist League of Russia was having its third national congress in Moscow. The young soviet republic was still lying in ruins, after several years of. the "orld 'war and the civil war. Many delegates had come right from the front, as the fight against the foreign interventionists was still going on Russia's borders. The invaders, in collaboration with the internal counter-revolu- tionaries, were attempting to crush the Russian people's movement towards a new life with fire and the sword. I mention this congress because Vladimir Lenin, the leader of the revolution, made a never to be forgotten speech there. "Do you know what the task is now?" he asked the young delegates. Everyone thought he would talk about ending the war and restoring industry and transportation. But Lenin said simply, "your task is to study". He went on to explain that you can only become a Communist after you have enriched your mind with all the treasures produced by mankind. The young people, Alexander Petrov went on, realized what sage advice that was and enthusiastically threw themselves into their studies, although those were very difficult times and they were obliged to combine their studies with hard work. Lenin's behest became the main thing in the attitude of our state and society towards the youth, 25X1 Soviet power has only existed 40 years in this country, but see what amazing results it has obtained in the field of 25X1 The Soviet Union is the first country in the world where Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 - - -"_"` Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 2. all children receive a free, compulsory seven-year education and where the task of giving all young people a senior high school education free of charge is successfully being coped with. Basically the task will be solved by 1960. There is not a single educational establishment in this country where tuition fees are exacted. The Soviet Union has more college and technical stud(UNCODED than any other country in the world, including the United States. Most of them receive a monthly allowance from the government, which means that they do not have to 1^ok for work as a means of subsistence. The whole country is literally covered with a network of all kinds of educational establishments, beginning v,vith daytime schools and colleges and ending with young workers' schools, evening colleges, correspondence courses, and so on. The state and society are very solicitous of the young workers. Everyone between the age of 16 and 18, and older ones who study, havE a short working day, although they get the same pay as the other workers and office employees. They are also given many-other privileges, including time off with pay in which to take their examinations, in addition to the regular annual vacation, which is also paid. Thousands of clubs, stadi.Luns, water stations, tourists hotels, technical and nature lovers' stations and the like exist throughout the Soviet Union for the young people's benefit. Everyone takes an interest in the young people's education. They are imbued with humane ideals, a love of work, and respect for other nations and their culture. Our literature movies and theatre plays contain none of the obscenities, displays of hatred and disrespect for other nations and races or other perversions often found in your country) 25X1 We are noe enjoying the fruits of that education. Our country has had to overcome no small difficul.tiea in its march towards U 0 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 3. a life of abundance and happiness for all. It still has to open up new regions, build factories and sink mines in hitherto uninhabited areas, plough up virgin land, and so on. The young people are always the first to respond to the Soviet government's appeal for volunteers and they enthustiastically take their place in the front ranks of these modern pioneers. The last war, when the savage Nazi hordes treacherously attacked the Soviet Union, put a severe test on our people. When, too, our youth showed that they prize the things their fathers fought for and won. They spared neither, their forces nor their lives in the fight to smash the aggressor. Whether they were operating machines and tilling fields in the rear or fighting at the front and. in the partisan detachments, Soviet boys and girls displayed marvels of heroism. Many laid down their lives in the fight for their country. The Soviet youth confidently look to the future. 6ocialism ensures them an education, cork in their special field, and good, wholesome recreation. And they are doing their beat, along with the rest of the Soviet people, to multiply these opportunities. And now, before closing, I can't help mentioning the exceedingly friendly ?entiments which our young men and women nurture for boys and. girls of their own age in other lands. They l avant to see that friendship grow bigger and stronger, as the future to the youth. The sixth world festival of youth and students is goin- to be held in Moscow this summer. Guests will be coming in from all countries. There will be a big delegation from the United States). too. it would be fine if you could come with that group You would make the acquaintance of many Soviet boys and. 25X1 girls and they would tell you, better than I can over the radio, . about themselves and their plans, q 1 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 the 10th Program !?nd now we bring you our tenth and last broadcast in our series of answers by Moscow commentators to questions from I)GV^ an American listener His ,,ft question is: What type of exhibit is being planned 25X1 for the 1958 World's Fair in Brussels? I hope to attend and wonder what I can look forward to seeing. Here is what our commentator, Alexander Alexandrov, writes in answer to it. I quite understand your-interest in the coming Brussels Fair. ?ryi The last world fair was held almost two decades ago, ih 1939, in New York. Since the war there have been fairs and shows in no few countrie with many countries exhibiting at them, but they were not world fairs in the full sense of the word. The consequengm of the war and the period of cold-war following it were responsible for that. And so the Brussels Fair, which opens in April next year will be the first for a long time at which the peoples will be able to demonstrate their achievements in industry, science and culture, and exchange experience. Fifty some odd countries have announced that they will be taking part in it. including the United States and the Soviet Union. Preparations for it are already in full swing on five hundred acres of grounds in Heisel, a suburb of Brussels. Since there's a whole year ahead before the fair opens, the exhibitors have only made a general preliminary outline of .,That they intend to have on display. One thing that is certain, thourh is that scientific achievements will hold a leading place. Among other things, there is to be a very unusual structure at the fair called an atomium_. It will be in the form of an iron molecule enlarged 200 billion times. It will have nine spheres representing the atoms in the molecule, cor!nc=r-ted by tunes in Approved For Release 2008/11/12 : CIA-RDP80T00246A001700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 there will be escalators to take visitors up and down. On the too o'" the structure at a height of over three hundred feet, there ri ll be an observation platform. Each of the nine spheres will contain exhibits of one of the countries that have done the most towards iitulizing atomic energy for peaceful purposes. One of them will contain the Soviet exhibit. Science will also be centered in another pavilion -- a huge Palace of Ucience. The idea of this palace is to show the steady and inter-dependent development of science from the simpliest atom to the most complex systems. For that reason, it is to be divided into four sectors: the atom, which will have to do with questions of physics; the molecule, which will concern chemistry; the crystal, physics of solid bodies; and the living cell, biology. The work the scientists of many countries have done will also be demonstrated in the palace of science. The Soviet exhibits will illustrate, among other things, the Soviet Union's research in the sphere of organic compounds containing metals, chain reactions, and the use of isotopes in plant physiology. In addition to these international pavilions, each of the countries exhibiting at the fair will have its ovm pavilion. 25X1 I don't suppose that you expect me to describe the pavilions and exhibits of every country. For that reason, I'm only going to take up the'plans of the Soviet Union for the fair. The ceremony at which the cornerstone for the Soviet pavilion was laid took place in January. It will be one of the biggest at the fair, with a total of 1)376,000 square feet of floor space, and will be unique from the engineering standpoint. It will be 3,500 feet long and 82 feet high, and will be male of aluminum and glass. The whole of this. huge building will be suspended by means of invisible cables on sixteen slender columns. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 The entrance to the building will be decorated 'ith a two hundred foot obelisk and a sculpture of stainless steel. But what will surprise the visitor When he gets to the top of the beautiful broad staircase leading into it? I think I am safe in saying that they will be surprised by everything that the peoples of our country have done in advancing their industry, engineering, science and culture. In answer to our reporter's questions, the manager of the Soviet pavilion, Alexander Nikiforov, said that the USSR would not strive for sensation for the sake of sensation. It intends to show itself as it is. The building of soviet society presents a wide choice of interesting subjects, Alexander Nikiforov said, and we'll be slecting themes from among them for the fair." The Soviet people have transformed their country from a-backward power to one o.,' the most advanced industrial powers in the world in just the few decades since the land-owner-capitalist order here was abolished. or that reason their biggest displays will be devoted to the country's raw- materials resources and the develo-ment of its industries. The exhibits will show the visitors to the fair the latest industrial methods used in the USSR its unique machines and apparatus, and developments in Soviet electronics, remote-control, supersonics, aviation and so on. That is not all that will be shown in the Soviet pavilion however, by any means. Among many other things, the visitors will get acquainted with Russian and Soviet painting, and they will be able to see Soviet films and see Soviet stage artists perform and hear Soviet musicians. Also, if they like, they will be able to try the national dishes of the peoples of the various republics of the USSR. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7 -4. The way they're planning things now, the fair will be open for six or seven months, and about thirty-five million people are. expected to visit it. Just think hat a big part 25X1 the fair will play in increasing mutual understanding among nations. Those thirty-five million Russians, Americans, Arabs, Chinese and other people will be seeing each other's achievements qnd what they are doing. And that is a sure way to mutual confidence. I .have mentioned this because you and I have the same idea. You write in your letter of April 2 that if there were more exchange of opinion like that which hs taken place between you and Radio Moscow commentators, the need for arms would be cut by simple understanding. And that's a fact. This series of answers to your questions should show you how far from the truth` are the ideas about the USSR being spread by supporters of the cold war in the United States. True, this time, Fortune put it- self in a spot with the anti-Soviet articles you based your questions on and by means of which it was trying to show that the Soviet system was going through a crisis. Since it published them, it has had to 'take a slap in the face. the letter published in its April issue I have in mind which completely refutes the February articles 25X1 and calls them a poor service. But how many such poor services spoiling the relations between our peoples have been done by the American press and political leaders with impunity? As concerns means for counteracting propaganda, and the hatred of one country for another and of one people for another, which is so dangerous to all, the most reliable of them is to build up close international contacts in all spheres of human activity. Approved For Release 2008/11/12 : CIA-RDP80T00246AO01700410001-7