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SOURCE: Peking Review, No. 16, April 14, 1967
Transcribed for www.wengewang.org

The Soviet revisionist leading group is speeding up the introduction of a "new system" into Soviet industrial and other state-run enterprises, a system whose core is the capitalist principle of profit and which aims at a total restoration of capitalism.
 According to Soviet press reports, the "new system" of economic management, a further step toward capitalist restoration, was officially and widely introduced to the whole country beginning from January last year. Entering its "most important phase" this year, it will be completed in 1968. By the end of last year, the "new system" had come to stay in 673 iron and steel, metallurgical, petroleum, chemical, machine-building, and other major industrial enterprises, as well as many enterprises in the fields of railways and motor transport, inland water and sea transport, air transport, post and tele-communications and trade. "Today," boasted the Soviet press, "the scope of such reform is expanding immeasurably: such reform is taking place not in several hundred but several thousand enterprises, and in the whole of many industrial branches."
This program for all-round capitalist restoration in industrial enterprises was advanced as early as the days of the Khrushchev regime. To influence public opinion, E. Liberman, a Soviet professor of economics, prompted by the Soviet revisionist leaders, proposed a reform "based on profit" through a Pravda article in September, 1962. This was followed by many more articles in Soviet publications strongly recommending it. In defiance of the opposition of the broad masses, the Soviet leaders then started introducing this new measure, which is a further step to restore capitalism, into a number of light industrial enterprises by way of "experimentation."
Turning Socialist Enterprises into Capitalist Ones

Having assumed power, the new Soviet leadership lost no time in quickening the pace of all-round capitalist restoration in the different branches of the national economy. Great efforts were made to make the "new system" to completely restore capitalism prevail in industrial and other state-run enterprises.
 Toward the end of 1964, the new Soviet leadership decided to extend the system of marketing units directly placing orders with factories—a system which Khrushchev introduced on trial to two tailoring firms—to 400 light industrial enterprises. In early 1965, profit was made the main norm in heavy industry; this measure was later extended to motor transport, trading, catering establishments, and the food industry. In September and October of the same year, a plenary session of the Central Committee of the CPSU and a Supreme Soviet conference were held which resulted in the promulgation of the so-called "Regulations on Socialist State-Run Productive Enterprises." The regulations systematized these much-vaunted experimental measures to move back to capitalism and worked out a "new system" for all-round capitalist restoration. They were put into force throughout the country in the form of a Party resolution and government decree.

Preparations to Extend It to Every Aspect of Life

This "new system" undisguisedly makes the capitalist principle of profit the "locomotive" to set all economic activities in motion. Kosygin has asserted that profit-seeking is "the best way of making enterprises raise their efficiency," and that profit is an important criterion for appraising an enterprise's "contributions" and is the "source" of material incentive. Guided by this principle of putting profit in command, the Soviet revisionist leading group has decided to abolish the series of important norms originally set by the state so that those enterprises under the "new system" can seek high profits without restraint. To give the enterprises more ways to make money, the Soviet revisionist leaders go all-out to encourage "extensive development of direct contacts between the supplying and marketing enterprises" in accordance with the law of free competition in the capitalist market economy. The "new system" endows the leaders of enterprises with still greater and still more privileges, and, under the condition that they hand over profits to the state, they have the right to handle practically all affairs of the enterprise at their own discretion. But the masses of workers and staff members are deprived of all rights and reduced to mere employed slaves selling their labor power.
 The introduction of this "new system" of industrial management, which makes putting profits in command the core, has gone far beyond the confines of industry; it has in fact been extended to all state-run enterprises. The so-called "Regulations on Socialist State-Run Productive Enterprises" clearly lay down that the regulations, aimed at putting the "new system" into effect, are applicable not only in state-run industrial enterprises but in building, farming, transportation, and in post and telecommunication enterprises as well. At a Supreme Soviet meeting, last August 3, Kosygin further stressed the need to "continuously extend the economic reform to all branches of the national economy."
 Initiated by the Soviet leaders, there has been a new wave of enforcing the capitalist "principle of profit" in every aspect of life in the Soviet Union. A proposal was adopted at the All-Union Academic Conference that "profit-making plans should be drawn up for the institutes of scientific research and designing,' and that profit should "become the source of bonus and development funds." Some leaders of institutes of higher learning have published articles in Pravda advocating the application of "economic principles" such as "material interests" to the larger institutes of higher learning. One opera house and ballet theater manager suggested in the press that "new principles and methods of leadership" in the spirit of "the reform by the state of the entire system of leadership in the national economy" be applied to theaters. The Soviet press also published articles repeatedly advocating the implementation of the profit principle of the "new system" in film studios with a view to encouraging the production of films with "box office value."
    Rejected and Opposed by the Soviet People

The "new system" for capitalist restoration introduced by the Soviet revisionist leading group was rejected and opposed by the Soviet people at the very outset.
 There have been traces of the Soviet people's dissatisfaction and protest in the press, over which the Soviet revisionist leading group exercises tight control. One reader wrote to the Literaturnaya Gazeta to say: "Rubles, rubles, money, and business . . . this is all you read in the newspapers and hear on the radio nowadays. For fifty years, we have been taught to deal with people and functionaries in an unselfish and humane manner, refusing to soil our hands with cash, and now suddenly people can think of saying: I’ve all the respect in the world for you, as long as you bring me profit.' ... In our place profit and material incentive are beginning to push the high standards set by one's moral integrity into the background."
 There are people who exposed the essence of this reactionary line of complete capitalist restoration at the very time the Liberman "proposal" was brought up. They pointed out that these measures, if taken, would cause serious damage to the balance in the national economy, and it would signify the forfeiting of a planned national economy and the socialist gains of the October Revolution. By its overall introduction of the "new system," the Soviet revisionist leading group has provoked the Soviet people to still stronger opposition. This has caused the former to feel more and more uneasy. When the "new system" was first put into effect, the Soviet revisionist leaders already spoke a great deal about sweeping away "obstacles"; of late, they are resorting to highhanded and open means of repression through "administrative measures."
 Chairman Mao has said: "The socialist system will eventually replace the capitalist system; this is an objective law independent of man's will. However much the reactionaries try to hold back the wheel of history, sooner or later revolution will take place and will inevitably triumph." It is certain that the Soviet people, with the glorious tradition of the Great October Revolution, will vigorously rise and struggle resolutely against the Soviet revisionist leading group.
 In Soviet society, which the great Lenin himself created, in spite of temporary zigzags and an adverse current in its historical course, sooner or later it will break through barrier after barrier and forge ahead. The Soviet revisionist group of turncoats, vainly trying to stay its progress, will certainly be completely crushed by the wheel of history.

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