THE PLANNING OF CAPITAL WORKS

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP81-01043R001000050007-4
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RIPPUB
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U
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186
Document Creation Date: 
December 22, 2016
Document Release Date: 
October 7, 2010
Sequence Number: 
7
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Publication Date: 
July 9, 1957
Content Type: 
REPORT
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PDF icon CIA-RDP81-01043R001000050007-4.pdf15.56 MB
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Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 ^ '~ PLAI+IIdI of CAPrF~ W .~ tai s 1Q5h; ~;~eo~:; Ica 3~1'? P~iroVB.u ~its.~_, i x~h RnbM.I Yle Plarnling o~ CBpi- V. ~? S~lek~hoY ~A33:aE C~" CO~EI'~fi5 Chapter ~. T'r~ ~e~xxtin~ o~ the capital wox~ t}i3n and its place in tYve state plaa~ of natio~l econa~i.c developa~errt Chapter iY. The cc~nierz~:a g:' the ~pit-.al wark~ ~~~z:3 Chapter III. 5ubstantistion of th+~ capi~.l works ~].an with a vf,ew to u~tin~ the xec~,uire~nents o~ the national eco~+cx~t Chapter N. ~ ~~ the necesss~xy naterial~ labor and ~ financial. provisions for the capital works pla~~ Chapter V. 3~e planning; o~ the construc+:ion inclust~y 1~6 Chapter VI. Perfort~ance control a~ the capital vorks 17~ P~ Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 C~,~ita1 confi?cr'ac;tio:~j ir.~ the : ovie'c Union ; ,~ C''..il iEc1 o,~t or, a vast scu~.e. .~,.~, '--,.~ ~ ~~ r { rCu~:'~ 1' C-JE_''-+% Gru. max. ~u The COIISt ~'L~tC ~30~. 'JeZ+-r In .~ .~ ~~ ~" oi' t11e natio:~a"! ecoro.~v-; -~ wr~ ~ -- ~~ e- ?'. . ., _o~~iet Unior in tjlr ~~!S' ~ -~~.in~~:~ ill~~~.cri eco~~~ii~~ ~viLto~~ of ~~ic .. GL~'i1~~i7~r . -~ ~' . ~. u ? ~? 1. . ~j .t,.+,~~ ~ fC'(' Yil~~ 1 J C~'~.'.J i.%L~:~~l~.~i .~.~l~~.i i.~~1ii enter~~~.Les were .:.u i. ~., ~~aR in co,-~;;a1~~F ,~reCOndi~:ion i'o~ tine cc.rutr~:ci~io?~ of ~o,~i~:1.i~:. i:~ tsl~ U~~i~i :aos`~ ' ' ~~~~ ;aLCi~~ i?,swrLci ',i1 ~.,.rsi ladle C3'C-~=~?~~Gi"l Os 'G~1C .;L:~{'21.r~~ ~3.~7111"vl..?~ scope of c~ pitcl col~u ~:~~c-~ioYi , :~i.; tllous~~l~~ ~;^~( t+i02 ' ` ~ ..C. :~. _tu a3 .? 1 stored ; ;~ui~.~~. ; _ l~C~ ..zi.~ ~ ~.o.,c,: - V ~~ yy~~ , , Ci.-~ i.. .l. ~" ) ~ ~~:~~e ?~'k n vu], ~ v :i:~ ~.ioi~ sc~ oi' iiou::in~ ::ln:cc ~~cre ~ 3.W ~ S ,,e ~'ii?st ~u ~CCOr. ii-~4-ye~;r p tl~e secia ~ izc:a ;~cc ~cr .,?~~ir~ u: ~- 1-bo:zt 220 ~i11io~: sr ~1 0l lion;si::,. space u~:v~:._-ee~: e~ozrou and uuist duiin~ the ;~ost~~~.a -~ ~: io~~_ i:.? "corns and settie~3e_t a loge . The cepi- ta? xorks co~piete~: i~, ~ ~')'S ,.lo~:e e::ceeaed blase of the entire SeC- onci Five?Year ~1~ allc p~?e,~~ is the di~?c~:t resul~ o ,,..-~~ ?,,r,r,?t.. n~~ ~at~ita~. canal action G i L:1 Vrau~.. a+ ~ l :?o~lc-:~s o: bui :dirk co~unis~ in l'ne tjSSR. The cream o~~ ~ ;:,ate~'i~:? _i~'d~strial rase of ct~unis~ calls for tY~e cont.nuea ~o~~red development of the Heavy i:?~dustry; this re- quire: enorr~ous capital invest~?ents. By far tae ia~~est p~:j ~ of capital cons-~ruction is uu i'i~ owl t; e i .~R u,'~ ~~ the s~~aLe~*iae pi~:~~ of the national economic Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 cevelopr~eit, '?'he ui~laory and practice of socia~.ist construction have evolved t?~=e :~aasic principles v~' the state planning oi' capital work in the naticnal econo~y as a ~:Tho:te, as ~~re~.~. as in its various aran~hes. ~~~.s work is de,~oted to a br ief oui;line o~:~ t'rie ~~eti:od~ of ~lannir.~ capital ~roz~lts i~~ the ~aLion~::l econor::~~ oi' ~L~~e UPS=~ ~:s a whole. C:I~iI l'E~ 1. ~'r'tE i~`~i~I~i~G GF i'rk' C1~PI7.'t L ~G,~, ;~ ~~,~'~:' !a ~y r~S i'i~C~ ~~ lilE STATE Ph ~~~ FOIZ +1'11.'IOI~L Et;O~~G~IIC DEVELOY~~~` pl~~nnint; cFipita~. works (or capital i::ves~-~~en~,) :.i~~lt~la plannir,~ tiie e.:parfdec~ :.,oculist reproduction of th~. I.}~lril, caritai f'un~~~.s of ~t~~e natio~~al econony. ~i'Y~c place arc si~rlifict~z:ce of the car ~.ts.I works j la:~ are deterni~,e~ u~ t~~c er:clusi'; e role o' tl>`e ~rvwth au~d pe:?fection of the ~~asic finds, c>articuia.rly vl:e -oasic industrial fur:tis, il~ the aystenQtic ara proportional c:e :'slop-~E. t o,' t~~.e entire national econoay. Easic production funds represent implewe;jts o' la~or as distin~-iahet: from objects of labor. sic production funds are the products of la'aor used for production purposes but, unlike Working capital or o;~~ecta of labor (Which are entirel~~ consuaed in production}; Wear oat ~radj~.ll;; ax3 therefore continue to par- ticipate in the production process chile retaining their natural form. The coat of the basic funds is ad~~ed to the coat of produc- tip ~radu~lly, f~'? Proporuion to their depreciation. The basic production finds con8ist first of machines as w'~:j.l as industrial Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 bui? dims ~"~_?ry~l>;tc".~:. ~&, t;Oi4- ~.37v1;?' . ~ ? ~';? . ~. oci~;S ~e?:C~pt i~e;?:- ..A,. "1..,.n t. .~, Y _ _ a~~i~.r w ~.,u.~..: \s~:G?+:i f ~ .L1?J. i~jC.;, U.4Vi: .I.L4i.4 ilt:... =Y ~.:.o:: ~ F.in(i Z~02"ki Ilg i'~onproduct~.ve ozs;ic ~u..us ~: ~ ~o ~:?~,sis?~ oiy d~ara~le stocks ~~ut these ax?o osry u nonprociucti1,~e C:c~tL'.Y~% 3:1V pro ~~_e~: for consu~pW tior~: house, auilai~,~sj arc:: insta~.l~itio;}s ::uc~~ uw scfsools, horn y~.Ltl~..~-~i ~~~SCT ^! ~7t~ ~+. f ~ a '~? ~ y... ~.. ~.~ ,~ r, r , ~.~..t~...~~ ~.~.~.,,.;, ...~.iv~::,id:l~:~ ~~4G ~ ~:ei ~~~ ~.Ieir oauip:.Len~~? ~~ ~: a 1Ar.. ~J GA L J.'..f.: GL..,,, a~ ~,~~~ :~~.. tota PY"~er co~'re itsl od this ~~ industrLee, that is, the producti:~ ~.aeic c~P -13- Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 through a dei'iuite apportfvrraent of capital conctruction ag the indt.str~.es p u~, ~v~~ e~pleg the ~c~t fmport~ant aspect of te3.cal progress' the M? ectri~icatia~ o~ th4 national ecc~o~gr, provides that the capacity o~ the power plus ej ceet; ~~'.~ development og the ens tits national econaauy. Only thus is it possible to create the ne~ ce"a~ary ;~rerc~,~~isitea ~'or ti?~ ~:o:~tinuec~ a~encian o~ electric po~Ter to everyr prt~uctic~ proc:eas, a.nc~ to it~prave such production processes on the arxuis tu' ~:lectric ct; er 'i~~n~s to tre c.anaiMtent rea].itiation of t}~e proportional de- velop~ent of she nations.l. econaa~i v~' the '~:~~, the production off' electr~.c power is cou~cideraul~? ~i?eater than the output o~ the otrzer industries ~ The ~ i~;ures shown be "low char the corxel~tion between the rates o~ increase in the ~?os~: 3~jciu.~trial output and in the pro- ciuctf arz of electric power t l~O cam- lg~jO car:- 195 cad paxed to P~ to to lq~U ~ ~.ve- 1 ~ 1 0 Year Pl~ua ~~~~ ?Orr~MA~~A Gross output o~ industry ~. ~ times 1?3~~ 170; Eie~ctric r p~~oductioa 9.6 times 1~i7,~ 18a;~ This fader rate vi' elec tr~.c poster prr~duction is achieved b3- the large-scale construction c~P po~uer elaats. about SOU pater plants, not coLmting wall ones ~t9ere built a~ expc~hled in the fY1~st ~ y~rs of tl~ Fi~tth ?r'iive-Y~ Plao alos~ . The fourth problem in the gleaaiag olf capita3. v~on'lte i8 a better gefl~gr~e-phfca l $istributi:~ o~` ~roci:~ctive basic capital. Tbst is ~e c~ the mast effective meters o~ riving svcsal labor. ~- tioa~]. aietrib~.ttion ~ ;~roa:: Yt:~~ .~ in~et~ent on3y ~D a socieli>at Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 nat~.onal economy based ors t~-~e pablic ~p=nership of the inplements and producer goods. The xp pol; cy can the matter of basic capital. distribution reelects the advantages of the sociai.ist system off' nations. economy in the sphere of the economic and cultural development off' the var~.- ous districts o~ the co~~aat~?y. The Poll ~~ policy toRaard the distribution of production ~~as adopte~~ 'ay the ~?esolutic~ of the i~ightee~;th. CP Congress on the Third Fi ire-Year P?~n for the development of the ~jetional econoe~y of the US5R (1q3~-19~~) , "The Confess believed tP~it the distribution of the neRJ con- struction projects under the Third Five-Year Plan in the various areas of tie USSR should. be governed by the necessity of getting tre industry closez.? to the raw material sou+?ces anc~ cornimtn~ areas with a ?,rie~~ to e1.ir~inating the i2?rational an:~ exceed:inCly long 'baul- ~~~, Gis#,ances a,s cell as developing the economically back~tard arses of the t~SR" (KPSS v reed -uts i aheni~,kh s"ems , kon- f~ts , i plenumov Ts3iC ~:5~ssolutions and Decisions of the Congresses, Conferences, and TsK Plenums osf the ~, Part 2, seventh edition, pages 8gr-~gb). ~lith this in mind, the KP Congress established a system under which caam~odity production in every economic district -- and the production of certain i:ypes C~ cta~odities in ever",r republic, $ray and Oblast ?- would meet the demand for the respectiveai~tric a, republic, lsray end Oblast far particular types of goods. The cong- ress decided to buil~~ in the eaet~ern erase, 'the Urals and the Volga ~io? several duplicate enterprises of the machine?buildi~g, ofi- refining, sad chemical industries to aprevent the possibility of misusing the output of cerJ~ain ca~odities b;~ the ?~migtie enterprises . l5 .. Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 ~predpriyatiya?un~:~~" ~Ibid . } . The congress outlined a more rapid development of capita. works in the eastern and far eastern areas ~ the USSR, as well as a further economic and cultural de- velo~ent of the national republics and oblasts. The policy adopted by the ~ighteentb: K:t~ Congress on the dis- tribution off' capital construction, as we11 a~ the congress' defini- Lion of the sues an~~ t;~res of the constr',zction proiects hn.tre re- tained their g:~eP4t ii~portu.nce to this day. The July plenun of the TsK KPSS (195 ~) noted a marked im- provenent in the distribution of the industry in the country. Wh~.le the output of industrial co.~odities in the USSR ms a t*: ~:le in 195 ~raa 2.u s.s much as in l; ?he i~~dustrial output volune in the western areas shcnler~ r~. ~ -fold increase dur in ~ the sane period . At the same time the ~?~,en~ also pointed out that "the it~pleraentation of the ~:i~-~eteerith CP ConL,ress directives on the i~tprover~ert of the geo~raphica~. distribution of ij~t ustrial e.~terp:~ises was no. satis- factory." The plentm r>alled for t::e eliaination of the e~:i3tin6 shortcom3.ngs in the distribu~;ion of the productive forces and the imgravement of the statewide planning of the distribution: of pr o- ductive forces in the county in coni'ormity with the ~' cirectives ~ improving the g~iapb~cal distribution oi' industrial enterprises, om locating the industries closer to the raw material and fuel sources end consuming areas] Apse, ova the specigl.ieation and complex develt~a~nt of the ecaaamic districts Bad ea a faster rate of indus- trial de~vel.o~t in t2ye eastern areas of the couat-ry. It is no~es- eazy to restrict the further cooceatratioa of industrial enterprises it several large cities . i'o tackle tie problem of g~roe-t~ s-~:ial- isatiar~ sad cooperation in iad~tr~r, the plenum found it necessary Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 to eree,te in various district$ of the ;o~antr~r ~; e, } equipped. and specializes f~ndriES, clro~?forgtr~~, ~itis, al"1t ~rooc:~or~~ Plants a ~e socia~.ist dw~?~ ML:~ir~l~.t~J,[i ~~' +~x~tuct~.ve orCea is eff@cted chief ~.~' tb~t~ou"b. a sy a ~ffi~:1;ic i~prav~en t in the aistribut Son of new pz~od~;cti'~ e 'ac. is ccpAt~.~ iu t;a~ C~3 ~oiltj' The i~tpro~re~ent ~n the c~?stribat~,on of p:coe~ucti~~e basic capi- tn.:l ~:a7?f',l ,~ir~, ir:~~; cf ~.~.; ~:a ~~~~ ~?a~~ion~l ~::~~ ~ ui ~~~tion oi' the i~t~t'a7.'a~ l'C: otI~"CCC '~~.r~~'~~:1 i;ti~t: forced deve~.optaen t of ne~1 ~zrea.s fence the close colnnectio?.~etween the sol.uf;i?n E~:~' t'szis c:apits.l trorks p~aa:~ers ?~rd t.e achic:~~er~eats ire Leo ~ ?~~.~c'^ ~~tospectin~ o '~~T't~e.y;. ~h.. ;.ru,~~rc~~ent~a~t in tb~ dis~i:ribwi~.o:~ of uasic capital .~ec,~;u t?~.c :.'vaple:; ~ieve.~np~ent of the ecoz,c~;~.t; :~rc~c and the futro- iatc uc:t ors o:~ ~~_ ~:7~ ~;t.~:~ ~tioz~al syster~~ of f'r~:i~ht l~uli:~~ . Tl~ distribution of productive 'u:^ces under soci?lism aims to develop rise ecanar~ and, first of all, t .e inc~uBtry of the na- tional z~enublics and backward ecaa~omic districts on the veriplmery of the country; the sin o: liquicating the herit~e of capitalise, the ecana~cic inequality off' thane districts vis-a?vis the industrial- iced centers a the country. T~ i~rover~ent of the distribution of socialist productia~ should also be guided by the necessity of strEngthex~ing time social. ist f at~erlabd' a c'lafense. The Fifth plroble~a of the capital, harks plan is to iueure the etagdy growth sad pertectia~ oaf unproductive basic capital s,aa the necessary iDduetrtal sad territorial praportio~as in time uapraduc? five epbere. 17 Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 The social and cultural r~easures of tDe socialist state p?.ay ;rest rt iz: insuring the maximum satisfactia:~ of the needs of a ~ octet In a socialist econony the capital investments in the s y construction a'~d eau=pi~e:~t of the housing and calamunal econa~gY, ^ s~~mtoiti--:, uL~~;,;;,s= theaters, stadiums, etc, are made hospitalu, Fccord~.~ng to & state plan and are f~x~anced from surplus ~~ ? Qnl~r a s}"!Aly ~?rt di t~~e increase in unproductive basic capi- tal is s.cb3eved the people t~.emsel~:es: t:~is applies mostly to ? ~.; hp~:.in~ canstr~~ction . ~3ut even ir: this respect tre state in,dlvid provides for Gefi~ite ~aeas~.~x`s desiUnes to "relp inuyvidaal plan b?~zi.ldex?s :pith cxedits, uuildi~~~ :aaterial.s, eta . ~~or cal the solution of tl:e problan of reproducing; u~~~1~`odN'=' ':sic capital, uncle~^ the capital work: plan, 'oe reutl?icted to tive ere definition of the voluoe a~' sucl; capital . Here, too, the am roblem is poi. only tre expansion but also the perfection of unpro- p ve `aasic caps ~al as weld. s ~ the coordination of basic ^,apital ducts. --~_..,,~?r ;? ~-~,{a pa,~icu~.ar sphere and in t:'xe ~~rious areas ;rith i~ ~ requ,~,rements and consumer needs of the population . S ce l.t to point to the :~st importazzce of the grotiting housing uff`i cultural construction not only in ~~~~ the popul'a'tion's and s but al$o in the Byste~.tic enlistment of labor forces for Deed the newly settled areas, in coc~batting labor turnover, etc Ca tal ~ror~ p~Y ~ ~Portant pert in securing the basic pi tel for defense parposes and in expanding and imp='avin8 the caps ks designed t0 etreagt~ the o~` '~+'' g def~eive capacity, basic stoc the sixth problem of the capital Aga P~ ~ to reduce the ~, and cost of cos stru~ctloon sad imp~roy'e its quality b;' Indus durati coosttrvctioa oa the beds o~ advanced tecbnolo~t ? d'his tr~islisi~6 Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 I~P's policy in construction as an integral prouleo expresses the of i~~s po~c~r for capital invGsen is . re ror~uction of basic capi~al is ca.rrie~a out :,ltuou~ the p ? in a~.idition to the const~"~.ction induutryp it by several industr~.es s e constx'uctiQn industry that co~pletPe t'ne process is precisely th ntroducing ae~~r '~asic capital in the rational ?f creating and i .: - r ..;ce tion of the 6xAdina.ry acquisitions o~' equip- econo~y (w1G~ tse c p The CoTl3t~'aCvi+'~'- jndliBt~I pt1tG bent that xec~uires no assezab~.ing) d instal~.ations and a5cer~blPc equipmen~~ thereby up vuiidings an ?ration ~aost of the basic r;f~-u~,tiel? T'iu: cons'~:.?uc- putting into op~' ~rorls ca.~'ried ?ut by the con;~truction industry Lion and. assemul3~ a 1~.r"e p?crt ire the ~,rolajn~; VOlLBs7E Oi c~.,~t ~c,.s. lei w ~~ ~~.-Clj ~ u . p3ays ~ the ~,an a' the construction industry represents an TY~t is ~hY ~' t oxn the ~,eneral p3 an a ~pital ~.nvec~t:~ents , integra3. pSZ' ~~ i~~. tasks of developing; the construction in- The plan spe ~~~, improve continLOUely the perf`ornance of dustry are designed to P is orge,niZationa . That ~prov~ent is meni- c~astruction and pro~ec acceleration of construction, t'r1e cor~isaion - fia~~.ed L~1 '~~ maxit~um _~ ldin s arx~ insta3lations~ the nowt econos~icas. use ul ing of near bui ~ for construction and essenbly ~.rork, and the i,i~prt+ve- f~nde allocated Went of the qu~.ity of `~struction pork. eau ad t~ by the TsK ~S ant the Co~mcil of 3'Y~ deciei aP et 1 5, "~ puree ar P1~r~her ~dustrial- i~nlatere ~ Attu ~ t o~ ite ~iuo~lity sad Reduction of i C~etruction, the ~ of rai?ing tine c'~etr'v`~ioaa iaduetry Cost?" oi'f'e1's a broad ~ i regent.de~y reQ~-~eats ?~ ca??timiet r~et-ruc- to the level of ~~ p tiara in the ' lg Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 ced ~ the very close conneCtipns be- ~}~~ should 1~e P~ f the capital wor1~ Ply' ~ ~ 1~'~io~'&r' ' ,~obl~~ ~- tween all the ~? structionl the reductios~ of its cos u f the r~eximw~ acceleration or can the basis of ~,sastriali.zation ipcrease and raise its quality o~, ~ossi'ole solution of all problems in the posy ibil3,tiea for ts~e best ~ the e shorter the construction periods, capital investments. Th r Ctl.on t~'ok and the greater the possi- cheaper and better the con.~trU ?~, the basic ~~;pa.nsion and perfection bilitiee for necesswrv' indus~cri~:l anc:. territorial capital. and the fixing of the n tine reproduction of oasi = capital proportions i t~ ~ the direct and ~medi~te connection be- Discus5ed ?~nove ~rw~ of the capital wat~l~s plan rel$tin~ to tween tl>de close int'-eY'con t existing, for exar~Ple, bet~en tine ~- ~c~uatry is similar to tba 18x>It . ~ dgpartmenta in a machine building p suably ~n d other ~ ~ the out ? assambly d~'"t'~~ impends entirely ~ ~tput of tY~+e ants as the fawndry, forge sh~~ ~ ~? P~ ~ such me~or depar'tm other hand the o~put of tin~ese mayor ~i~ went . Oo~ tltie b the netiooal ecvnaa-Y ~ s d foac ~~ts is deed X _ wp~,1'V des es ~~ cap ~ C?~le#~c3' only by t~ ~? -,- ~~ c~aoaiti the continuous 20 Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 It is of the utl~ost i~'t8nce for taking full account of the concrete and objecti,e il~t2rdependcnce of t';e va~ous orxnches of the national eco ;oa~y if the requirene:ats ox" the law of systematic and proportional develop~ent a.-~e to be reflected in the plan , If the capital works ply z?eflectt.d the achie~~e~~~ents ~' the heav3r ind~~~try pass~.yely it ;,,*ould r"ail to soltire its proble~a . 4f course the production 1^ve3. oy" mzzcb~.ncc~, metal, co~~stz~~zctio~~ Zua.teria3 s, etc, puts the capital. works plan j~Tithin certain ~.irnits . Bv.~ iz~ the first place, as far as basic capital is concerned, capi- tal works pi&~~ deterninc~ t?le expansion rate and structural chengeu ~ the production of the heavy industry itselz' which is the largest "aasic-capital" industry in the national econc~y~ secondly, it is precisely t~~e production of basic capital, its exl3a,nsion, tierf'ec- tion, and rational distribution as well as the industrialization of car~struction that poses certain proble~s before the heavy in- duatry and, particularly, r~achine build3n~,. Bence the enor~ous iaportaace of tl7e capital works plan in determir:it~ the necessary directic~ of teci~nical prggress and in substantiating the plan for the develo~ert o1' heavy industry a Whole. ~phasie should be placed on the particularly important part of the capital Works plan in the realisation of the perspective problems of the development of the netiamel, econea~r. chile the na- tio~al economic requirements in the current year have been met sl- nost ~~~ by the productive basic capital in operation since the beginning of the year, the t~rther large-scale expansion of productfo?, the subetantiel increase in labor productivity, the f~q~c~art~iat changes in the propoartiooa Hoag the vario~ i~~tries ?21- Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 and the achievements in tr>,e distripution of producti~re forces in the count=y, in other srord.s, the tenpos and propoMtions of the eV4 pand~i reproduction of the national econony ire the ctanang 3~ears ae- peed primarily on the rate ai' e~panEio~~ and the on r.r~Les ~.n the in- dustries ~ cnd territor:~al shares of the nearly acquired hasic capi- tel. Capita. construction io, by it~u ver,~ nstu~e, of 1an~;~.r~e ?i~ificance. It is not r~erel~r a natter of construction ox~ tho number of large pr~ojectc under construction over a mamas:? o~' yeas. This, of course, is very important. It requi:ca p1.a.nnin{ scvera:t years ahead; tirithrnat such planning it would ~e impossiblE to se- cure the proportional e~cpansion of basic capital in various indus- tries . But the long r~i1~;e nature Of capital cc~nstz~uction is still Wore deter~.ined by the fact that basic capital is used for several yeIIrs after it had first been put into operation . This 1 wises the follows: g problems 2 First, t~,e drai'ting of the capital works plan should take into account the requit~nents of the national economy in the next 1C to 15 years; hence the necessity for low range general plena for the development of the national economy and its rsa~or branches; Second, the basic capital commissioned accvrdirtg to the plan Bi~uid 'xis pn-~- cc~bined with the basic capital that bas been Pva~ctioning at the beginning od' the plan period and Will for the most petrt be out of com~iasiaor, by the end at the p3.an period] h~ce the necessity for coordinating the pL~n for neir constructioo vork frith the p]~n for ~xpeading and rebuilding the existing e~aterprieea b+~riog in hind the perspective dev~elogaent oP the natiainai eco?ar~y in the next 1x15 y+aara. Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 The adver+,~,gos ~' socialist pr;xluction are manifested with particular force in the successful solution of all the above-listed problems of the >,yste~tic develop:~~t of cup~.tal construction in the T~SR. Cle:ar?.y _revea~.e~. lt7 the capital construction of the U6SR are the progressive :hakes G~.i:~.cr r~, ;~ ~.:: t~~ aocia> i.st economy, Tb~e expansion rate and structure o? capital investments in the [ASR reflect an objective basicu.liy different frog thug of capitalise and which go?~erns prcr3uc tine; iti ref lects a basically different method of attaining tYsat objective, s~~d the ns~ture of the chan~, .a in the industrial; terrritorial, and social rroportiona in the socjali..~t ~,ational economy. Capital construction in tide ~JSSR is carried on at unpi~ece- dented tempos. During the First and Second Five-Year Plans the basic capital in i~ustr-y sho~sed ~.n average annual increase of 22r. In Tsarist Rug sia, e~ren when capital construction was at its highest (].88>?1913), the average annual incree~se in bas~.c capital amounted to only 7.2~. The average annual incr~ae in basic capi~~al in tkS industry between the 2 world Wars was only 4~. Reckoned i.n present prices, tl~e volume of state capital in- ve~taenta in the rational econagy of the USSR anouuted tot in 19e9- 1g32, C~8 billion rubles; fn 1933-1937, 158 billion rubl.ee j and in the postwar pax;od to the end of 1954, over g00 billion rubles. In 1855, 167.2 billio? rubles were appropriated for capital invest- ments. The rea].isatio? of the vast proble~e of cq~uniet co?atruc- tion calls four a further rapid expansion sad improve~t ~? the basic capital. Speaking to the eighteenth CP Congress, J. Y. Stalin pointed out that the solutio? of the basic ecanamlic proble~ - z3 - Sanitized Copy Approved for Release 2010110J07 :CIA-RDP81-010438001000050007-4 Sanitized Copy Approved for Release 2010/10/07 :CIA-RDP81-010438001000050007-4 of the USSR, that is exceeding the capital~.st per capita, production oi' the na~or types or" industr-%a.l cow"'~i~ities, ". .requires, first of all, ~ c wY~onS and indomitmble desi?~?e to ~aarch for~ra~rd., a ~ ~"in~aess to make bid sacrifices Gnd ~--rye capital investments with a ~rie~r to eh-panding our socialist industry it every v~y" ;~. V. Stalin, Vo~raB,~,~l ini~a ~:'roblems of Leninism; eleve-~th edition, 1953, page h18~. Thy aide scope of capital construction in the USSR is made Possible by th~c hf.~h leti-e~. etta.ined it the development of the heavy industrf, ~s~ze ab ante off` p