THE PLANNING OF CAPITAL WORKS
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Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP81-01043R001000050007-4
Release Decision:
RIPPUB
Original Classification:
U
Document Page Count:
186
Document Creation Date:
December 22, 2016
Document Release Date:
October 7, 2010
Sequence Number:
7
Case Number:
Publication Date:
July 9, 1957
Content Type:
REPORT
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Body:
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^
'~ 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~
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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
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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
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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-
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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
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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 ..
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~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
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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.
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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
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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
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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
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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
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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 -
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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