COMRADES DEPUTIES! The draft State Budget submitted by the government to the present session of the U.S.S.R. Supreme Soviet completely
ensures the financing of tasks connected with the development of the national economy in 1953, the third year of the Fifth Five-Year Plan, the
implementation of which will be an important step forward on the path of building a communist society in our country.

The State Budget reflects the policy of the Soviet government and of our
Party, which aims at the development and the steady progress of the socialist
national economy.

Of the budget revenue, totalling 543,357 million roubles, the overwhelming
part, amounting to 86 per cent., comes from industry, agriculture, and other
branches of the national economy. Among the items of budget expenditure, in
its turn, the greatest is the financing of the national economy.
For the further development of the national economy, the 1953 Budget
provides 192,500 million roubles, or over 36 per cent. of all budget
expenditure, as compared with 178,800 million roubles last year. Apart from
budget allocations, in accordance with the national, economic plan, for these
same purposes almost 98,000 million roubles are being allocated from
enterprises and economic organisations own funds made up from their profits
and other sources. Thus altogether, for the financing of the national economy
this year, there will be allocated more than 290,000 million roubles as
compared with 265,000 million roubles in 1952. With all this one must bear in
mind that, as a result of the price reduction, which has been carried out, the
purchasing power of the rouble has increased, and consequently the amount
for the financing of the national economy is de facto being increased even
more.

Funds allocated for the development of the national economy, ensure the
uninterrupted growth of social production as the basis for the further advance
of the people’s wellbeing and a still further strengthening of the defensive
capacity of our country.

The State Budget reflects the concern of the Soviet state for the steady
raising of the material and cultural standard of life of the working people.
Expenditure on education, the health services, social and cultural measures,
on pensions, as well as payments to the population on loans, will amount this
year to 139,500 million roubles, as compared with 129,600 million roubles in
1952. In addition to this, expenditure is being incurred out of the Budget on
the reduction of state retail prices, which ensures for the population a gain of
over 46,000 million roubles, calculated on the basis of one year, and on a
number of other measures directly aimed at raising the people’s wellbeing.
Altogether, the population will receive from this year’s Budget 192,000
million roubles, or over 36 per cent. of the entire budget expenditure; as
against 147,000 million roubles last year. At the, same time from their
personal incomes the working people will contribute to the Budget in the form
of taxation and duties, and also by subscribing to the loan, 65,000 million
roubles, i.e., 21,000 million roubles less than last year. Thus, during the
current year factory and office workers and collective farmers will receive, from
the Budget 127,000 million roubles more than they will contribute to it out of
their personal incomes. In 1952 the population received 61,000 million roubles
more than it contributed to the Budget.

The State Budget provides for expenditure on defence to the amount of
110,200 million roubles. This sum 20.8 per. cent. of the entire budget
expenditure, 23.6 per cent. in 1952.
In proposing the allocations for defence, the government has proceeded
from the premise, that we are obliged untiringly to perfect and strengthen the
Soviet armed forces in order to ensure the safety of our motherland and be
ready to give a crushing rebuff to any aggressor who might seek to violate the
peaceful life of the peoples of the Union of Soviet Socialist Republics (stormy
and prolonged applause).

1. Urgent Tasks in the Sphere of Industry and Agriculture,
and Measures for the Further Improvement of the
People’s Material Wellbeing.

COMRADES! In connection with the discussion on the Budget, I should like
to speak about certain urgent tasks in the sphere of industry and agriculture
the solution of which, would enable us to carry out more successfully our main
task of ensuring a further improvement in the material wellbeing of the
workers, the, collective farmers, and the intelligentsia, of all the Soviet people.
The economic results of the first half of 1953, as well as those of 1951 and,
1952, show that the targets of the Fifth Five-Year Plan are being successfully
fulfilled by our industry. The volume of industrial output in 1953 will be
approximately two and a half times as great as in 1940.
The growth of output in the basic branches of heavy industry will be
characterised by the following data:

In 1953 there will be produced: over 38 million tons of steel -more than
double the 1940 figure; over 320 million tons of coal-93 per cent. more than in
1940; over 52 million tons of oil-nearly 70 percent. more than in 1940; 16
million tons of cement-nearly three times as much as in 1940; 133,000 million
kilowatt-hours of electricity, or 180 per cent. more than in 1940; output of the
chemical industry in 1953 will be trebled in comparison with 1940; the output
of machines and equipment will be increased by 280 per cent.

As for the production of consumer goods, we have the following picture:
In 1953 there will be produced: 5,300 million metres of cotton textiles, or 34 per cent. more than in 1940; more than 200 million metres of woollen textiles,
or approximately 70 per cent. more than in 1940; more than 400 million
metres of silk textiles, or over five times as much as in 1940; 3,600,000 tons
of sugar, or nearly 70 per cent. more than in 1940; 400,000 tons of butter,
which will be nearly 80 per cent. above the prewar level of industrial
production of butter.

These figures are eloquent evidence of the successes achieved by our
industry.

It is known that the Party started the task of industrialising the country by
developing heavy industry-metallurgy, the fuel and power industries and the
development of the country’s own engineering. Without this there could have
been no talk of ensuring the independence of our country. The Party has firmly
and unswervingly implemented its line in the struggle against Trotskyites and
right-wing capitulators and traitors who opposed the construction of heavy
industry and demanded the transfer of funds from heavy to light industry.
Acceptance of these proposals would have meant the doom of our Revolution,
the doom of our country, for we would have found ourselves disarmed in the
face of capitalist encirclement.

Remember, Comrades, what our industry looked like when the Party
adopted the course aimed at the industrialisation of the country.

On the eve of the XIV Party Congress in the financial year 1924-1925, only
1,868,000 tons of steel were being produced in the U.S.S.R., only 16,526,000
tons or’ coal were being extracted, and the power stations were producing less
than 3,000 million kilowatt-hours of electric power. In the production of ferrous
and non-ferrous metals, the extraction of coal and oil, and the output of
electric power we were lowest in comparison with the large capitalist countries.
We had no tractor, motor, aviation, or machine tool industries. We had no
chemical industry to speak of and no production of agricultural machinery.
Now our country has a powerful and technically perfect heavy industry.
In the 28 years which have elapsed since the XIV Party Congress the output
of industrial production has increased 29 homes over. In comparison with
1924-25, our production has increased in the case of steel, 21 times; coal, 19
times; electric power, 45 times. The chemical industry and engineering have
grown at an even faster rate. Most branches of these two industries have been
set up from scratch.

During this period new industrial centres have been set up in the Volga
areas, the Urals, Siberia, the Far East, in the north European regions, in
Kazakhstan, the republics of Central. Asia, and Transcaucasia. We possess well
developed heavy industry in all economic areas of our country.
The solution of the problem of developing heavy industry as the first task
has radically changed the relations between heavy and light industries in the
whole volume of industrial production.

At present heavy industry employs about 70 per cent. of all industrial
workers. If in 1924-25 the share of means of production in the output of the
whole industry of the Soviet Union amounted to 34 per cent., then towards
the. end of the Second Five-Year Plan, in 1937, it had already reached 58 per
cent., and in 1953 about 70 per cent.
Thus the relative proportion of heavy industry, which in 1924-25-as in pre-
revolutionary Russia-was only a third is now more than two-thirds of the total
volume of industrial production.

Parallel with the development of heavy industry, railway and water
transport have also developed in our country. Motor and air transport have
been created. In the period from 1925 to 1953 the goods turnover of an
transport increased 13½ times over; at the same time the goods turn-over of
railway transport increased more than 15 times over. We shall continue in
every way to develop heavy industry metallurgy, the fuel industry, the power,
chemical and timber industries, engineering, and the building industry. We
shall develop and improve our transport. We must always remember that
heavy industry is the very foundation of our socialist economy, because
without the development of heavy industry it is impossible to ensure the
further development of light industry, the growth of the productive forces of
agriculture, and the strengthening of the defensive power of our country.
Now on the basis of the successes achieved in the development of heavy
industry, we have all the conditions for organising a sharp rise in the
production of consumer goods.

We have every possibility and we must do so. During the past 28 years the
output of means of production as a whole has grown in our country about 55
times over, while the production of consumer goods during the same period
has increased only 12 times over. A comparison of the 1953 production level
with the prewar year of 1940 shows that during this period also the output of
means of production increased over three times, while the production of
consumer goods increased by 72 per cent.
The volume of production of consumer goods which we have reached
cannot satisfy us.

Hitherto we have had no possibility of developing light industry and the
food industry at the same rate as heavy industry. At the present time we can-
and therefore we must-in the interests of ensuring a more rapid increase in the
material and cultural standards of life of the people, promote by every means
the development of light industry.

Over a long period of time, we directed our capital investment mainly
towards the development of our heavy industry and transport. During the
years of the Five-Year Plans, i.e., since 1929 and up to 1952, the amount of
state funds invested in capital construction and equipment, calculated in
accordance with current prices, was: Heavy industry, 638,000 million roubles;
transport, 193,000 million roubles; light industry, 72,000 million roubles;
agriculture, 94,000 million roubles.

The government and the central committee of the Party consider it
essential to increase considerably the investment of funds for the development
of light industry, the food industry, and, in particular, the fishing industry, and
for the development of agriculture, and consider it essential to correct the
output targets for goods consumed by the people by considerably increasing
those targets, to draw the engineering and other enterprises of heavy industry
on a wider scale into the production of consumer goods.
The urgent task lies in raising sharply in two or three years the provision for
the population of foodstuffs and manufactures, meat and meat produce, fish
and fish products, butter, sugar, confectionery, textiles, clothing, footwear,
crockery, furniture, stationery and other household goods; in raising
considerably the provision of all kinds of consumer goods to the population
(stormy applause).

As we know, the Fifth Five-Year Plan provides for an increase in consumer
goods by 1955 by approximately 65 per cent. as against 1950. We have every
possibility of developing the production of consumer goods on a scale to fulfil
this task much sooner.

One must not, however, be satisfied with a quantitative growth alone in the
production of consumer goods. The question of the quality of all manufactured
goods for general consumption is of no less importance.
It must be admitted that we lag behind in the quality of consumer goods,
and that we must introduce considerable improvements in this matter. Many
enterprises are still producing articles of an unsatisfactory quality, not meeting
the requirements and tastes of the Soviet consumer.
General consumer goods produced by our industry, though as a rule of solid
quality, leave a great deal to be desired in finish and external appearance. To
the shame of workers in the industry, the customer frequently prefers to
acquire goods of foreign production, only because they have a better finish.
Meanwhile we have every possibility of producing good quality and attractive
textiles; good quality and smart clothes; and durable and elegant footwear. We
have every possibility of providing a good finish to all the goods which serve to
satisfy the people’s requirements.

The Soviet people are right to demand from us and primarily from the
workers in the industries producing consumer goods, goods which are lasting,
well finished, and of high quality. We must respond to this demand by action.
It is the duty of every enterprise to produce high-quality goods, and to care
constantly for the durability and good finish of production.
The task is to make a drastic change in the output of consumer goods and
to ensure a speedier development of the light and food industries.
But, in order to ensure a sharp development in the output of consumer
goods, we must first of all take care of the further growth and development of
agriculture, which supplies the population with food, and light industry with
raw materials.

Our socialist agriculture has attained great successes in its development.
Year after year the commonly owned economy of the collective farms is
growing and becoming stronger the output of agricultural products is
increasing.
Our country is assured of bread. As compared with pre-war times deliveries
to the state of cotton, sugar beet, and livestock products have considerably
increased. In 1952 the deliveries were: Raw cotton, 3,770,000 tons, 70 per
cent. more than in 1940; sugar beet, 22 million tons, nearly 30 per cent. more
than in 1940. Last year deliveries to the state of meat amounted to three
million tons, which is 50 per cent. more than deliveries in 1940. Deliveries of
milk were 10 million tons, or nearly 60 per cent. more than in 1940. In
addition to state procurements, our agriculture supplies a large quantity of
meat, milk, and other foodstuffs through the co-operative and collective farm
trade.

The deliveries of bread grain and other agricultural produce are being
carried out this year successfully and in an organised manner.
Great progress has been made in equipping agriculture with new and up to
date machinery, which has made it possible completely to mechanise many
types of operations so as to lighten the work of the collective farm peasantry
and make that work more productive.

The successes of agriculture are considerable. They are an undoubted
achievement of our collective farms, of our machine and tractor stations, our
state farms, our socialist system.

However, it would have been a serious mistake not to see the lag in many
important branches of’ agriculture, not to notice that the present-day level of
agricultural production does not correspond to the increased technical
equipment in agriculture, to the potentialities inherent in the collective farm
system.

We have still quite a number of collective farms, and even of entire areas,
where agriculture is in a neglected state. In many areas of ‘the country
collective and state farms gather in low harvests of grain and other agricultural
crops and allow big losses in harvesting. As a consequence of the
underdevelopment of agriculture, some of the collective farms still have
insufficient revenue in money and kind and yield little to the collective farmers
in money, grain, and other produce for every workday unit.
It should be admitted that the position is unsatisfactory with regard to the
development of livestock breeding. In this connection we are far from having
sufficiently satisfied the growing needs of the population in meat, milk, eggs
and other livestock produce. We know that before the, war livestock breeding
was insufficiently developed. After the war, though considerable work was
carried out to restore and further to increase the head. of livestock, the lag in
the development of livestock breeding has not yet been overcome. The speed
in the increase of head of livestock is still insufficient, while the productivity of
livestock continues to remain low. On many collective farms commonly owned
stockbreeding has so far failed to become as highly productive and as
profitable a branch of the economy as it should be. All this has an adverse
effect on the economic position of the collective farms’ and is damaging the
national economy.

There is also a serious lag in the output of potatoes and vegetables, which
impedes the task of improving supplies of this produce to the population of the
towns and industrial centres, not to mention the fact that the shortage of
potatoes hinders the development of stockbreeding.
It is our most important duty to put an end at the earliest possible moment
to the neglected state of agriculture in the areas and the collective farms which
are lagging behind, to ensure the rapid development and strengthening of the
commonly owned economy of the collective farms, and on this basis
considerably to increase the remuneration for work-days to collective farmers,
in the form of cash, grain and other produce.

We must end the intolerable lag in the development of stockbreeding,
create a firm basis for supplies of fodder, provide suitable premises for cattle
and poultry, achieve a sharp increase in the productivity of stockbreeding, and
higher rates in the increase in head of livestock, particularly of cows.
We must overcome the lag in the output of potatoes and vegetables in
order considerably to improve supplies of these products to the population of
the towns and industrial centres, and, in the next two years, to raise the
output of potatoes and vegetables to a quantity which will not only fully satisfy
the needs of the population and of manufacturing industry, but also the needs,
as regards potatoes, of livestock farming.

It is our duty to ensure a further, more rapid growth in the output of grain,
bearing in mind that this is essential for our country, not only for satisfying the
growing needs of the population as regards bread but also for the rapid
development of stockbreeding and the supplying of grain to areas growing
industrial crops. In order to intensify the struggle against losses of crops and
increase the amount of grain and other agricultural crops harvested; it is
essential to put an end to the incorrect practice of, evaluating the results of the
work of collective farms as regards the production of grain and other produce,
not on the basis of the amounts actually harvested but merely on the basis of
apparent yields. We should not forget that our country, Our collective farms,
can only be rich in crops actually stored in their barns; not in crops still out in
the fields (applause).

We must continue in every way to develop the production of industrial.
crops, primarily cotton, flax; sugar beet, and oil-bearing crops.
The urgent task is, on the basis of a general development of the whole
national economy, and the further organisational and economic strengthening
of the collective farms, to achieve in our country within the next two or three
years an abundance of food for the population and raw materials for industry.
(applause).

In order to solve this task successfully, the government and the central
committee of the Party have considered it necessary to carry out a number of
major steps to ensure the further rapid development of agriculture and
primarily measures for heightening the economic interests of collective and
state farmers in the development of lagging branches of agriculture.
One cannot regard as normal the existing situation when, for the
development of certain branches of agriculture and certain agricultural crops
such as, for instance, cotton, sugar beet, tea, and citrus crops, we have the
essential economic stimulus for the collective farms and collective farmers,
while the production of a number of other crops-potatoes, vegetables, and the
development of such an extremely important branch as livestock breeding-is
getting insufficient economic encouragement from the state.
It is, of course, not a question of lowering the economic stimulus for
collective and state farmers for increasing the production of cotton, sugar beet
and other crops which are well encouraged by the state. On the contrary, it is
essential to go on showing concern for the further all-embracing development
of the production of these important crops.

It is a, question of implementing a number of measures for heightening the
material interests of collective farms and collective farmers in increasing the
production of potatoes, vegetables, and the development of livestock breeding.
Without increasing retail prices in trade, and unswervingly carrying out the
policy of further lowering them, the government and the central committee of
the Party have this year already decided to increase the delivery prices of
meat, milk, wool, potatoes and vegetables which are delivered by collective
farms and farmers to the state as obligatory deliveries; to organise on a large
scale the state purchase of surpluses of grain, vegetables, potatoes, meat,
milk, eggs, and other agricultural products at increased prices, from collective
farms and collective farmers who have fulfilled their obligatory deliveries; to
develop on a wide scale collective farm trade; and to assist collective farms in
the organisation of the sale of surplus agricultural produce on collective farm
markets and through the consumers’ co-operative system.

As well as increasing the material interests of collective farmers in the
development of the commonly owned economy of collective farms, the
government and the central committee of the Party have decided also to
improve and alter to a great extent the incorrect attitude which has existed in
our, country towards the private auxiliary farmstead of the , collective farmer.
It is well, known that, together with the commonly owned economy, which
is the mainstay of the collective farm, every collective farmer-in accordance
with the collective farm statute-has an auxiliary farmstead intended to meet
certain personal requirements of the collective farm family, as these
requirements cannot yet be met fully from the collective farm economy.
As a result of the shortcomings which we have, in the taxation policy with
regard to the private auxiliary farmsteads of collective farmers, there has
occurred in recent years a certain decline in the income of collective farmers
derived from their private auxiliary farmsteads. A reduction has been allowed
to take place in the number of cattle, and particularly cows, forming part of the
private property of the collective farmstead, which is contrary to the policy of
our Party in the sphere of collective farm development.

In this connection the government and the central committee of the Party
have considered it necessary to adopt the policy of considerably reducing the
norms of obligatory deliveries from the private auxiliary farmsteads of
collective farms, and have decided, as -already reported by the Finance
Minister, Comrade Zverev, to alter the systems of agricultural taxation of
collective farmers, to reduce the monetary tax on every collective farmstead
on an average by approximately half, and completely to abolish the obligation
to make up the underpayments of the agricultural tax remaining from past
years (applause).

The State Budget provides, for, allocations to increase the prices for
deliveries to the state of the products of livestock breeding, potatoes and
vegetables. The State Budget also takes into consideration the changes in the
revenue in connection with the reduction in the size of the agricultural tax and
the obligatory deliveries of products of livestock breeding by collective farmers,
As a result of the carrying out of measures aimed at the economic encouragement of collective farms and collective farmers, and also measures in the sphere of taxation policy, the income of collective farms and collective farmers will increase already in 1953 by over 13,000 million roubles, and in a whole year by over 20,000 million roubles.

The State Budget also provides appropriations for carrying out new,
additional measures for considerably improving the mechanisation and the
electrification of agriculture, for increasing the output of chemical fertilisers;
and for increasing the agronomic and zootechnical assistance to the collective
farms.

Among the priority measures contemplated are: The establishment of
permanent cadres in the machine and tractor stations of tractor drivers,
mechanics, and workers of other specialities, for the absence of such
permanent cadres of mechanisers is one of the main causes of the
unsatisfactory use made of machinery in agriculture;

Increasing the supply to agriculture of machines and tractors especially
cultivator tractors, and increasing the repairing facilities of the machine and
tractor stations; Increasing work on the electrification of agriculture both by means of
building new power stations and by connecting the machine and tractor
stations, the collective farms, and the state farms to the state power systems;
Considerably increasing the supplies to the collective farms and the state
farms of chemical fertilisers;

Making permanently available to every collective farm the work of one or
two specialists in agriculture and maintaining them on the staff of the machine
and tractor stations.

All these measures will facilitate to a great extent the successful solution of
the main task confronting the collective farms, the machine and tractor
stations, and the state farms-the’ task of increasing by every means the
harvest yield of all agricultural crops; increasing the head of livestock while at
the same time increasing its productivity; increasing the overall output of
goods from agriculture and livestock.

For the development of agriculture, during the present year, the state
proposes to spend, as laid down in the State Budget and also from other state
funds, a sum amounting to nearly 52,000 million roubles. One should also bear
in mind that during the present year the collective farms will draw from the
state 3,500 million roubles for long-term credits for the development of the
commonly owned economy. The collective farms themselves out of their own
funds, will, in 1953, make capital investments to the amount of not less than
17,000 million roubles.
Comrades we are faced with very great tasks for the development of
agriculture. There is no doubt that, if all our collective farmers and agricultural
workers, all our workers, engineers and technicians in industry producing
agricultural machinery and fertilisers, if all of us together, with determination
and perseverance, apply ourselves to our common task-the further
development of agriculture-and if we do not spare for this our strength and
means, then the task of producing during the next two or three years an
abundance of food for the population and of raw materials for our light industry
will be successfully accomplished (stormy, prolonged applause).

In connection with the further development of industry producing consumer
goods and the development of agriculture, the task of the all-round
development of the turnover of goods and the task of improving the
organisation of state, co-operative and collective farm trade become still more
important.

Our Soviet trade serves the interests and needs of the people. It is called
upon to serve socialist society and to help forward the development and
strengthening of socialist production and to link it with popular consumption.
Through the wide network of state and co-operative shops and kiosks, trade
ware-houses and bases and collective farm markets, a varied assortment of
consumer goods, produced by our industry and agriculture, is being made
available to the people. Soviet trade is also a vitally important link in the
overall system of production and economic relations between state industry
and collective farm agriculture.

Under socialism, trade is and will remain for a long time the basic form of
distributing consumer goods among members of socialist society, the basic
form by means of which the growing personal needs of the working people will
be satisfied.

In order that Soviet trade may successfully fulfil its functions vitally
necessary for the socialist society, we must show constant solicitude for its all-
round development. The government is daily engaged in questions dealing with
the development of Soviet trade. This is reflected in the constant growth in the
amount of goods directed into the trade network, in the systematic reduction
of prices for foodstuffs and manufactured goods, in the expansion of the
network of trade enterprises, and the all-round assistance to collective farmers
in the sale of their surplus agricultural produce.

In order to satisfy the growing purchasing power of the population, the
government has adopted in recent months additional measures for the
development of the turnover of goods by means of an increase in the
production of consumer goods and in the supply of goods for the market at the
expense of other resources. A large number of engineering plants are taking
part in the production of goods of general consumption. As a result, goods
worth 32,000 million roubles will enter trade this year, above the 312,000
million roubles’ worth primarily intended for sale to the population from April to
December, 1953 (applause). At the same time stocks have been increased of
the goods in great demand by the population, notably cotton, woollen and silk
textiles, ready-made garments, furniture, kitchen utensils, butter and
vegetable oils, sugar, fish, meat, and tinned goods. The sale of top-grade
wheat flour has been increased. The sales to the population of timber and
building materials and such industrial goods as cars, motor-cycles, bicycles,
refrigerators, clocks and watches, television and wireless sets, and so on, are
being increased.

The measures which are being carried out are beginning to yield results. As
you know, the volume of retail trade in 1952 increased, as compared with the
previous year, by 10 per cent. In the first quarter of this year it increased by 7
per cent., and in the second quarter already by 23 per cent., as compared with
the corresponding period of last year.
But this is not sufficient. We cannot be satisfied with the present volume of
the turnover of goods. Moreover, there are serious shortcomings in the
organisation of trade itself. In a number of areas the trade in all goods
necessary for the population has not yet been organised. There are not
infrequent cases where a customer wanting to buy some article or other has to
go to another town or another area.
The trade and planning organisations must carefully study the demand of
the population for goods. The necessity for an all-round analysis of demand
and of all the various needs of the population follows from the very essence of
Soviet trade. Only on this basis can a better distribution of stocks for trade
among the areas be organised.

The task is to have in the country Within the next two or three years
enough foodstuffs and manufactured goods to enable all necessary articles to
be bought in every town, in every agricultural area.
The Five-Year Plan provides for an increase in state and co-operative retail
trade of about 70 per cent. in 1955 as compared with 1950. We possess all the
means to fulfil this task already in 1954 (applause).

Trade organisations shoulder a great responsibility also for the quality of
goods of general consumption. Trade must make wide use of its available
economic levers in order to exert an active influence on production in the
interests of a greater output of goods demanded by the population and to
reduce output of goods for which the population shows no demand.
Comrades in the cause of the improved wellbeing of the people an
important part is played by the further improvement of housing conditions, the
health service, the development of the network of schools and children’s
establishments.

Although before the war, and especially in the postwar years, large housing
schemes have been carried out, housing needs are far from being satisfied,
and acute shortages In this respect are felt everywhere. This is especially felt
in towns, because town populations have grown considerably. According to the
1926 census, we had an urban population of 26 million, and in 1940, 61
million, and the present urban population is about 80 million.
During the current year, state capital investment in house building has
been considerably increased and the aggregate sum is nearly four times the
expenditure made for this purpose in 1940. However, the building of dwelling
houses is still being carried out badly. House building plans are not being
completely fulfilled. Funds provided for these purposes by the state are not
being fully utilised. Many executives in Ministries and local Soviet and Party
organisations do not pay sufficient attention to house building. We still have a
good number of such economic workers who do not bother about housing.
When building new enterprises, houses for the workers and employees of these
enterprises are on many occasions not built in sufficient numbers, and
therefore big manpower difficulties often arise at the newly built plants. Many
builders have adopted the evil practice of putting into use new houses with
many items incomplete and carelessly finished, which reduces the value of
these dwellings and provokes the justifiable reproaches of the workers.
The task is to improve house building and ensure the definite fulfilment of
the government assignments for the building and repair of houses.

We also need more schools and children’s and medical establishments. The
national economic plan for 1953 envisaged an increase, compared with last
year, in the building of schools of 30 per cent., kindergartens and children’s
nurseries 40 per cent., and hospitals 54 percent.

The building of schools, hospitals, and children’s establishments this year,
in spite of all shortcomings, is proceeding at a swifter pace than all other types
of construction. However, there are many cases of the funds allocated not
being fully used, and of the building of schools and children’s establishments
being late. The plan for building children’s establishments is being badly
carried out in enterprises of the light industry in which, as we know, many
women work, and where, therefore, the question of kindergartens and
children’s nurseries is particularly important. The building of children’s
establishments is progressing unsatisfactorily in the Ukraine, Byelorussia, and
several regions of the R.S.F.S.R.

In the task of expanding the network and improving the work on the schools, hospitals, nurseries and kindergartens great responsibility rests with
the Ministry of Health, Ministries of Education in the union republics and local
administrative and Party organs, upon whom it is incumbent that they intensify
their efforts to build schools, children’s and medical establishments and devote
mare attention to this sphere.
Comrades, in order to solve the urgent tasks facing us in the sphere of
industry and agriculture, and to improve the well-being of the people, it is
essential to raise our whole economic and organisational work to a new and
considerably higher level.

It would be incorrect not to see in the work of state and economic organs
considerable shortcomings which considerably damage the national economy.
These short comings were referred to in the decisions of our XIX Party
Congress. One must admit that Ministries and local Party and local Soviet
bodies are still unsatisfactorily implementing the directives of the congress and
are not taking the required steps to improve the work of providing leadership
for enterprises. The task now is more energetically to eliminate existing
shortcomings. An example of unsatisfactory leadership of enterprises is
provided by the lack of attention of our economic financial and planning bodies
to the problem of reducing production costs.

It is well known that production costs are the fundamental index which
characterises the quality of the entire work of an enterprise. At the same time
many economic leaders, forgetting this, are showing little interest in the
problem of the profitability of enterprises. In a number of industrial branches
the tasks laid dawn by the state plan for reducing production costs of industrial
products and far increasing the productivity of labour were not fulfilled during
the first six months of 1953. Many enterprises which are running at a loss still
exist in industry, enterprises in which production costs are higher than the
prices of the goods produced. Losses incurred by such enterprises are covered
at the expense of profitable, properly working enterprises. The existence of
factories, enterprises and mines which are running at a loss and are living at
the expense of leading enterprises undermines the foundations of the cost
accounting of our industry, does not create the necessary stimulus for a further
increase of accumulations, and is adversely affecting the growth of the revenue
of the State Budget.

There are very many enterprises working at a loss, and the losses are
indeed high in the coal and timber industries. Many enterprises in these
branches for a number of years have failed to fulfil the plans for the reduction
of production costs and increase of labour productivity. As a result of this,
production costs in the timber and coal industries are still high, while high
production costs of coal and timber impede the reduction of prices not only for
coal and timber but also for many other industrial goods.
The losses of unprofitable industrial enterprises amounted in 1952 to
16,000 million roubles. Considerable losses were allowed to occur in
unprofitable enterprises also in the first half of 1953.

A bad state of affairs with regard to the fulfilment of the plan for the
reduction of production costs is prevalent not only in industry. The cost of
building is still high, and losses are running high in the majority of building
organisations. Many machine and tractor stations are not fulfilling the plan
targets in respect of the cost of works. The reduction of costs of river transport
is in an unsatisfactory state. The plans far the reduction of overheads in trade
are not being fulfilled.

The decisive factor in the reduction of production costs of goods is the
growth of labour productivity in all enterprises. We have all possibilities at
hand for a more successful solution of this task. Our enterprises’ advanced
technique, correctly used, enables the labour of the workers to be eased more
and more and ensures an uninterrupted growth in labour productivity. Of
enormous significance for the increased productivity of social labour and
reduced production costs is the correct, rational organisation of production, the
raising of the relative proportion of the workers directly engaged on the main
production processes at the expense of auxiliary, maintenance, and ancillary
personnel.

Reduced production costs and increased labour productivity in all branches
of production are of decisive significance in improving the material well-being
of the Soviet people. The higher the productivity of labouring our undertakings
and the lower the production costs, the lower are the prices of products and
commodities, and the higher is the standard of living for the people.
The task is to put an end to the negligent attitude to production costs, to
questions ensuring the systematic reduction of production costs and achieving
the profitability of every enterprise.
In order to solve successfully the task facing us it is essential substantially
to raise responsibility and efficiency in the work of all links of the state and
economic administration.

During recent months Ministries have been enlarged by amalgamation and
Ministers’ powers have been considerably increased. These measures are
producing their positive results in the administration of the economy and have
enabled nearly 6,500 million roubles to be saved this year. But it must be
admitted that the maintenance of the administrative apparatus is still costing a
great deal. The government will continue to improve the work of the state
apparatus and still more decisively to reduce its maintenance costs. At the
same time it must be stated that we shall have to make certain corrections to
the reorganisation of Ministries which is being carried out in connection with
the new tasks for further developing individual branches of the national
economy.

Our national economy is confidently advancing along the road of further
development. The source of our strength is the mighty activity and initiative of
workers, collective farmers, and intelligentsia. We have enormous possibilities
for the fulfilment of our main task-the maximum satisfaction of the steadily
growing material and cultural requirements of the people. We are firmly
convinced that we shall solve these problems in a brief period of time (stormy,
prolonged applause).

2. The International Situation and the Foreign Policy of the
Soviet Union

COMRADES DEPUTIES, in examining our domestic problems we naturally
cannot disregard the international situation.
The international situation at present is characterised primarily by
important successes achieved by thy Soviet Union, the People’s Republic of
China, and the entire camp of peace and democracy in the struggle to ease
international tension, for peace and for the prevention of a new world war.
In the East, bloodshed has been stopped which carried away a vast number
of human lives and was fraught with the danger of most serious international
complications.

The peoples of all the world welcomed the signing of the armistice in Korea
with the greatest joy. They rightly regard it as a victory for the peaceloving
forces (stormy applause). For over three years the camp of peace and
democracy strove to end the war in Korea. The signing of the armistice has
crowned this struggle with success. The will of the millions of people for peace
has become a mighty and effective force. The aggressors have been compelled
to take account of it.

Having unleashed the war in Korea, the aggressive circles hoped that they
would succeed in forcing the Korean people to their knees. However, the
interventionists who launched the war against the Korean People’s Democratic
Republic miscalculated. They have proved unable to break the heroic Korean
people. In embarking on this military venture, the interventionists hoped to
achieve their aims by a lightning stroke and without any particular effort. In
fact, however, things turned out differently. The interventionists involved
themselves in a protracted and bloody war and, having suffered great losses in
manpower and equipment, having had their military prestige badly tattered,
they were forced to renounce their aggressive plans. This is, indeed, as the
popular saying goes, a case of setting out to get wool and coming back shorn
of their own (general laughter and stormy applause).

The struggle of the Korean people against the interventionists and their
hirelings in the Syngman Rhee clique has shown that devotion to the cause of
freedom and independence of their country gives birth to great steadfastness,
courage and mass heroism. The Korean people, upon whom were directed the
blows of the most powerful war machine of present-day imperialism, became
invincible because they were fighting for a just cause. At the same time
mankind will never forget the noble deed of the glorious Chinese People’s
Volunteers who came to the help of the Korean people (stormy, prolonged
applause). This achievement arouses pride, not only in the great Chinese
people, but also in the whole of progressive mankind (stormy applause). The
peoples of the Soviet Union from the bottom of their hearts congratulate the
Chinese and Korean peoples on the achieving of the armistice (stormy
applause).

The task now is to secure the reborn peaceful life of the Korean people who
have suffered so much and who, at the cost of great sacrifices, defended their
right to decide their own fate the fate of their country.

We Soviet people warmly wish that the life of the glorious Korean people
should flourish in conditions of peace. The Soviet Union will help the Korean
people to heal the serious wounds inflicted by war (stormy, prolonged
applause). The government has decided to allocate immediately 1,000 million
roubles for the restoration of the destroyed national economy of Korea
(stormy, prolonged applause). We believe that the Supreme Soviet will
unanimously approve this decision (stormy applause).
In the West the persistence and consistency of the Soviet Union in the
pursuance of a policy of peace led to the frustration of the provocative
adventure in Berlin.

The organisers of the Berlin adventure, were aiming at far-reaching
objectives: they intended to strangle the democratic forces of Germany, to
destroy the German Democratic Republic, which is a stronghold of the
peaceloving forces of the German people, to convert Germany into a militarist
state, and to re-establish a hotbed of war in the centre of Europe. There is no
doubt that, had the Soviet Union not shown steadfastness and firmness in the
defence of the interests of peace, the Berlin adventure might have led to quite
serious international consequences.

This is why one should consider that the liquidation of the Berlin adventure
also represents an important victory for the cause of peace (stormy applause).
The successes of the U.S.S.R. in the struggle for the relaxation of
international tension also include the improvement of relations with
neighbouring states.

Striving for the development, of peaceful co-operation among all countries,
the Soviet government attaches special importance to strengthening relations
with neighbouring states. To raise these relations to a genuinely good
neighbourly level is the goal towards which we have striven and are striving.
The Soviet Union has no territorial claims against any state whatsoever,
including any of its neighbouring states. It is the inviolable principle of our
foreign policy to respect the national freedom and sovereignty of any country,
large or small (applause). It is obvious that the difference in, the social and
economic system in our country and in some neighbouring states cannot serve
as an obstacle to the strengthening of friendly relations among them. For its
part, the Soviet government has taken steps to strengthen good neighbourly
relations with such states, and now it is a question of the readiness of their
governments to take an active part in establishing, not in words but in deeds,
friendship that presupposes mutual concern for the strengthening of. the peace
and security of our countries.

Our neighbour in the south is Iran. The experience of 35 years has shown
that the Soviet Union and Iran are interested in mutual friendship and
collaboration. Soviet-Iranian relations have therefore such a stable basis as
makes it possible to solve problems arising in the relations between the two
parties to their mutual satisfaction. At present, on the initiative of the Soviet
Union” talks are being held concerning the settlement of a number of frontier
problems and financial claims between the two countries. We hope that these
talks will be successfully concluded. Recently an agreement was reached on a
mutually advantageous basis, on increasing trade between the two countries.
It depends on the Iranian government whether Soviet Iranian relations develop
along the path of good neighbourly relations, along the path of extending
economic and cultural relations.

The relations of the Soviet Union with Afghanistan continue to remain
stable and are characterised by respect for mutual interests. This creates
favourable conditions for the further consolidation of relations between our
countries.

Everyone remembers the statement made by the Soviet government to the
government of Turkey. This statement establishes the essential prerequisites
for the development of good neighbourly relations providing, of course, that
the Turkish side in its turn makes due efforts in this direction. The
improvement of relations between Turkey and the Soviet Union would
undoubtedly serve the interests of both parties and make an important
contribution to the strengthening of security in the Black Sea area.
As regards relations with Finland, the Soviet Union proceeds in the interests
of both countries. The signing of’ the five-year economic agreement in 1950,
which was then supplemented by the agreement an the exchange of goods in
1952-55, has led to a considerable extension of Soviet-Finnish economic
relations. The Treaty of Friendship, Co-operation, and Mutual Assistance
between the Soviet Union and Finland accords with the interests of both
countries and promotes the strengthening of peace and security in the
northern part of Europe. The treaty provides a good basis for the
establishment of good neighbourly relations. Net only our government, but
also the government of Finland, should see that this treaty is carried out
steadfastly.

Striving to ease the general tension, the Soviet government agreed to
restore diplomatic relations with the state of Israel. In so doing, it took into
consideration the pledge of the government of Israel that “Israel will not be a
party to any alliance or pact aiming at aggression against the Soviet Union.”
We consider that the restoration of diplomatic relations will promote co-
operation between the two states.

The assertions of some foreign newspapers that the restoration of
diplomatic relations with Israel will lead to a weakening of the relations of the
Soviet Union with the Arab states are without any foundation. The activity of
the Soviet government will be directed, in the future as well, towards the
strengthening of friendly co-operation with the Arab states.
Our government has displayed initiative by exchanging, after a long
interval, envoys with Yugoslavia and Greece. We hope that this will lead to the
appropriate normalisation of relations with both countries and will produce
useful results.

There are no objective reasons which could hinder the improvement of
relations between the Soviet Union and Italy. It stands to reason that relations
between states can grow stronger when the mutual obligations assumed by
them are carried out. Given a favourable development of Soviet-Italian
relations. Italian industry, which is undergoing great difficulties, could receive
considerable support from the improvement of economic relations between our
states. On the basis of a mutually beneficial agreement, Italy would be
ensured, supplies of coal and grain, and also contracts for her industry. There
is no doubt that this would help to improve the living conditions of the glorious
Italian people (applause).

The peoples of all countries hope that the signing of an armistice in Korea
will prove to be an important step in the matter of strengthening peace and
security, above all in the Far East.

In this connection the task of normalising relations between all states in the
Far East assumes immediate significance, especially the normalisation of
relations with Japan. In this direction, there are serious obstacles, since the
United States has violated the agreements concluded between the allies in
war-time and in the post-war period, and is now pursuing a policy of
suppressing the national independence of Japan, turning that country into a
military bridgehead. The healthy forces of the Japanese, nation are beginning
to realise more and more that it is essential to overcome existing obstacles and
to win back the national independence of their country. They understand that
only by this means is it possible for them to ensure a peaceful development of
their country and to ensure the necessary external political links and the
completely attainable economic links with their neighbouring states. The steps
that Japan will take along this road will meet with the sympathy and the
support of the Soviet Union and all peaceloving peoples (applause).

Of great significance for strengthening peace in the East is the position of
so large a state as India. India made a considerable contribution to the efforts
of peaceloving countries aimed at ending the war in Korea. Our relations with
India are being consolidated. Cultural and economic ties are growing. We hope
that in the future relations between India and the Soviet Union will become still
closer and will develop under the aegis of friendly co-operation (applause).
The Soviet Union also attributes great importance to the successful
development of our relations with Pakistan, so as to ensure ties of all kinds
between the two states. This undoubtedly will play a positive part in the
consolidation of peace in Asia.
The Soviet government is consistently pursuing a policy of extending
economic relations with foreign countries.

The group of states with which the Soviet Union carries an trade relations is
increasing, and at the same time the volume of goods exchange with countries
of the West and the East is extending. Trade agreements have been concluded
with France, Finland, Iran, Denmark, Greece, Norway, Sweden, the Argentine,
and Iceland, and a payments agreement has been concluded with Egypt.
Negotiations with a number of other states are proceeding successfully. We
intend with still greater insistence to pursue the line of developing the
exchange of goods between the Soviet Union and foreign states.
The strivings of business circles of a number of countries to remove from
the path of international trade all manner of discriminatory measures
restricting that trade are understandable and timely. Long overdue is the
necessity for the restoration of normal trade relations between countries for
whom mutual trade is an established tradition. Those who legitimately believe
that the development of economic relations will serve the cause of
strengthening peace cannot fail to assist in making international trade
healthier.

The government of the Soviet Union attaches primary importance to the
further strengthening of relations with the countries of the democratic camp.
These relations are characterised by close collaboration and genuine brotherly
friendship (stormy applause).

A great and indestructible friendship binds the Soviet Union and the
People’s Republic of China (stormy applause). The economic and cultural ties
of the two countries are growing rapidly and to a considerable extent.
The all-round co-operation between the Soviet Union and Poland,
Czechoslovakia, Rumania, Hungary, Bulgaria, Albania, the Mongolian People’s
Republic and the Korean People’s Democratic Republic is extending and
growing stranger (applause).
Our friendly relations with the German Democratic Republic are continually
growing stronger. The Soviet Union is rendering help, and will continue to
render help and support, to the German Democratic Republic, which represents
a bulwark in the struggle for a united, peaceloving, and democratic Germany
(applause).

One of the decisive advantages of the democratic camp, and its basic
difference from the imperialist camp, lies in the fact that it is not rent by
internal contradictions and strife, that the principal source of its strength and
progress lies in mutual care for the interests of all countries of the democratic
camp and in close economic collaboration. That is why the friendly relations of
the countries of the democratic camp and their fraternal collaboration will
inevitably develop and become stronger (applause).

The active and single-minded struggle far peace of the Soviet Union and the
whole democratic camp has produced definite results. A certain change in
international conditions is apparent. After a long period of increasing tension a
certain easing of the international atmosphere has became noticeable for the
first time in the postwar years. Hundreds of millions of people feel an
increasing hope that it is possible to find a way to settle disputed and
outstanding questions. This reflects the deep-rooted desire of the nations for a
lasting and secure peace.

But, nevertheless, it is impossible to overlook the existence of forces
countering the policy of reducing international tension, of forces which are
trying to frustrate this policy at any cast. This was precisely the reason for the
dragging out of the truce talks in Korea, for the establishment of military bases
in Western Germany and Japan, for the organising of provocations against the
countries of the democratic camp, far the carrying on of the policy of atomic
blackmail.

Aggressive circles stubbornly oppose the lessening of international tension
because they are afraid that if the development of events were to follow this
line, the arms drive, which brings huge profits far armament manufacturers
and creates artificial employment far industry, would have to be curtailed.
They fear for their fabulous profits. These circles are afraid that, in the event of
a relaxation of tension in the international sphere; new millions and millions of
people would realise that the North Atlantic bloc, allegedly established far
purposes of defence, is in actual fact the main threat to the cause of peace.
Aggressive circles also take into account that if today, in conditions of tension
in international relations, the North Atlantic bloc is rent by internal strife and
contradictions, the, relaxation of this tension may lead to its disintegration.
It is perfectly evident that, in addition to the peaceloving forces, forces are
also operating in the world which have tied themselves, far too securely to a
policy of sharpening international tension. These forces are putting their stakes
on war. Peace does not serve their ends. They regard any weakening in the
tension as a calamity for themselves. They are, pursuing an adventurist path
and they are carrying out an aggressive policy.
In the service of this policy have been placed the so-called “strategy of the
cold war” and all manner of international provocations.
The history of international relations has never witnessed wrecking
activities on such a scale, such gross interference in the internal affairs of
states, such systematic international provocations as are now being carried out
by aggressive forces.

Things have gone so far that certain American circles have raised to the
level of government policy subversive activities against lawful governments of
sovereign countries. For this purpose the U.S. state budget allocates huge
sums for recruiting gangs of saboteurs from among the dregs of society, which
are being sent into democratic countries for wrecking activities. For this
purpose, a network of government organisations has been created, which
carries out one international provocation after another, engages in propaganda
for the cult of force, and hatred towards peaceloving countries.
It is characteristic, that, just at a time when the possibility has become
plain of a major improvement in the international atmosphere, the
psychological warfare committee of the United States President published its
official report. One thought and one deduction run through the whole
document, namely, that in future any activities of the United States in the
sphere of foreign policy must to a still greater extent serve the “cold” or
“psychological war.”

What, according to this report, is the duty of American diplomacy? It
appears that this duty is to pursue the “cold war.”
What is to be the aim or trade and economic activities of the United States?
The “cold war.”

What tasks are to be solved by the cultural relations of the United States
with other countries? The tasks of the “cold war.”
Facts show that the policy of the “cold war” leads more and more to
substituting for the policy of normal diplomatic relations a policy of diktat,
disorganises international eco1lomic relations and artificially sharpens the
mutual relations between countries.

Excessive zeal in the carrying out of the “cold war” policy often results in
the conductors of this policy violating the elementary laws of cultural relations
between states, and often in their placing themselves in a ludicrous position.
Recently the whole world witnessed how the notorious strategy of the “cold
war” was applied even to the organisation of a chess match between teams
from America and the Soviet Union (animation in the hall). The Department of
Justice and the State Department refused leave to Soviet chess players, who
were invited as guests by American chess players, to relax in the summer
residence of the Soviet United Nations representative at Glencoe, 12 miles
from New York. As is well known, thousands of foreign guests who visit the
Soviet Union, including Americans, travel up and down the country and can go,
for argument’s sake, to Tashkent, Tbilisi, Kiev and other, areas. It turns out
that in the United States invited guests are barred from moving within a radius
of 12 miles at a time when, in the Soviet Union, foreign guests can move freely
for thousands of miles. Who, after all this, dares to babble about an “Iron
Curtain” in the Soviet Union? (stormy and prolonged applause).

The development of international events shows that the policy of the “cold
war,” the policy of international provocations, poisons the international
atmosphere.

Pursuing the course of exacerbating international relations, certain
prominent but, may I be permitted to say, not far-sighted officials across the
ocean (animation in the hall, applause) regard the striving of the Soviet Union
to secure peace between the peoples, its concern for easing international
tension, as a manifestation of our weakness. It is precisely this absurd belief
which explains the clearly unwise approach of certain circles in the United
States to the settlement of disputed international issues, and which also
explains their policy of pressure and all kinds of adventures.

There is, of course, nothing new in this “philosophy.” The world has not yet
had time to forget that none other than Hitler banking precisely on the stupid
calculations that the Soviet Union was supposedly a “colossus with feet of
clay,” launched his criminal adventure against our country. It is known that
this brought about the complete collapse of German fascism.
It is pertinent to ask on what ground some American politicians now repeat
utterances about the weakness of the Soviet Union.

Not a single clear-thinking individual will deny that the international
position of the Soviet Union is at present stable as never before; that together
with us in brotherly unity marches the mighty democratic camp; that the
consistent struggle of the Soviet state against the threat of a new war has
earned it great prestige and the trust of millions of people in all countries of
the world (prolonged applause). Even the most embittered enemies of our
country will admit that since the end of the Second World War there has been
in the Soviet Union a substantial development of the economy, culture, and the
people’s wellbeing from year to year. Never before has the unity of Soviet
society been so monolithic, never before has the fraternal friendship of the
Soviet peoples been so strong and unshakable as at the present time
(applause).

It is true that there have appeared abroad such politicians as have
seen a weakening of our country, in the fact that the enemy of the people,
Beria; has been unmasked and rendered harmless. But these, are short-
sighted politicians. It is clear to everyone that the fact that the rabid agent of
imperialism has been so quickly unmasked and rendered harmless: in time can
in no way be regarded as evidence of the weakening of the Soviet state
(stormy applause).

We know that abroad the warmongers for a long time cherished illusions
about the United States monopoly in the production of the atomic bomb.

History has, however, shown that this was a profound delusion. The United
States has long since ceased to have the monopoly in the matter of the
production of atomic bombs. The transatlantic enemies of peace have recently
found a fresh consolation. The United States, if you please, is in possession of
a weapon still more powerful than the atom bomb and has the monopoly of the
hydrogen bomb. This, evidently, could have been some sort of comfort for
them had it been in keeping with reality. But this is not so. The government
deems it necessary to report to the Supreme Soviet that the United States has
no monopoly in the production of the hydrogen bomb either (stormy,
prolonged applause).

As you see, convincing facts are shattering the wagging of tongues about
the weakness of the Soviet Union. Those however, who indulge in such chatter
prefer to deal not with facts, but with fiction and inventions.
Even certain official figures behave in this way, reflecting the ideology and
policy of the most aggressive groups in the United States of America. Resorting
to all sorts of fiction and invention, they are imposing the carrying out of the
so-called “tough policy” with regard to the Soviet Union and the countries of
people’s democracy, are exerting pressure, on disobedient partners in the
North Atlantic bloc, and are systematically aggravating international relations.
The supporters of the “tough policy” do not cease their threats against the
Soviet Union. They openly urge, as for instance is done by the Chairman of the
Senate foreign relations committee, Senator Wylie, that the United States
should present a number of ultimatums to the Soviet Union and that these
“should be supported by force.” Prominent representatives of the State
Department insist that the United States should talk to the Soviet Union only in
one language, “the language of force.”

We shall reply to Mr. Wylie and to everyone who preaches the policy of
force with regard to the Soviet Union; we shall reply, without going into detail:
“Oh no, my good woman, you’ve started dancing with the wrong foot”
(laughter, stormy and prolonged applause).
Comrades; the present stage in the development of international relations
is particularly important and crucial. It would be a crime against mankind if the
certain relaxation which has appeared in the international atmosphere should
be replaced by a new intensification of tension.
Soviet foreign policy is clear.
The Soviet Union will pursue the policy of maintaining and consolidating
peace consistently and firmly; of developing co-operation and trade relations
with those countries which, for their part, are striving towards the same
object; of strengthening the ties of fraternal friendship and solidarity with the
great Chinese people, and with all the countries of people’s democracy,
We firmly maintain that at the present moment there is no outstanding
issue in dispute which could not be settled in a peaceful way on the basis of
mutual agreement between the countries concerned.

This refers also to those issues under dispute which exist between the
United States and the U.S.S.R. We stood, and we stand for the peaceful co-
existence of the two systems. We consider that there is no objective ground for
a collision between the United States and the Soviet Union. The interests of the
security of both countries, as well as international security, the interests of the
development of trade between the United States and the Soviet Union, can be
safeguarded on the basis of normal relations between the two countries.

In our days the government of any country, if it seriously cares for the fate
of its people, is obliged to take measures to promote in actual fact the
settlement of disputed international questions. Talks among the great powers
could, of course, play no small part. Naturally, suitable prerequisites must be
created for this.

Recently, wide public demands for effective measures to ease the
international situation have been increasing in Britain and other countries. In
the political circles in these countries the recognition of the possibility of
settling controversial questions is becoming stronger. However, a mere verbal
recognition of this possibility is no longer sufficient.

The President of the United States stated on April 16, in his speech to the
American Society of Newspaper Editors, that no controversial issue, “great or
small, is insoluble-given only the will to respect the rights of all nations.” This
important statement could be only welcomed. But, unfortunately, the actual
policy of the ruling circles of the United States is in irreconcilable contradiction
to these statements of President Eisenhower.
If it is seriously a question of respecting the rights of all countries, one
must abandon the aggressive policy; one must step out along the road of
settling international problems on the basis of mutual agreement of the
countries concerned.

If the question of respecting the rights of all countries is taken seriously, an
end must be put to the policy of ignoring China, and the violated rights of the
People’s Republic of China in the United Nations Organisation must be restored
(stormy applause). The great Chinese power must take its lawful place in the
United Nations Organisation, as in’ the whole system of international relations
(prolonged applause).

The entire current situation emphasises the great powers’ particular
responsibility for further relaxing international tension by negotiations for
settling international questions. His upon them that the U.N. Charter places the
major responsibility for the maintenance of international peace and security.
The basic interests of strengthening peace and international security
demand that the great powers make every effort to ensure real progress in the
reduction of armaments and the banning of atomic and other weapons of mass
destruction. In the interests of mankind certain great powers ought to give up,
their pre-conceived approach to the question of concluding a peace pact
among the five great powers.

The Soviet Union, for its part, is prepared to do, everything necessary, for
the positive solution of such questions.
Urgent questions, such as the German question, which is of primary
importance, must also be solved.
The German question must and can be settled. For this it is necessary to
proceed from the interests of strengthening the security of all European
countries, and in the first place, the security of Germany’s western and eastern
neighbours; and, at the same time from the national interests of the German
people. For this purpose it is necessary to give up the policy of dragging
Germany into aggressive military blocs, the policy of restoring an aggressive
militarist Germany.

They want us to agree to the rebirth of an aggressive militarist Germany
and at the same time allow themselves to talk of ensuring peace in Europe.
But, our people did not shed the blood of millions of their sons and daughters
in war against militarist Germany in order to restore once more this most
dangerous hotbed of war in Europe (stormy applause).
The great powers have assumed the obligation to preserve, not destroy,
Germany’s national unity, to ensure the transformation of Germany into a
peaceloving, democratic state, not to facilitate the rebirth of German
militarism. The Soviet Union, for its part, will make every effort to facilitate the
carrying out of these obligations.

The German people have drawn serious conclusions from their own history.
They will not want to shed their blood once more for the interests of the
militarist clique which has already on more than one occasion brought
Germany to catastrophe.

A militarist Germany, regardless of whether it appears in its former guise or
behind the screen of the European Defence Community, is a deadly foe, of
France and other neighbouring states. Therefore any attempt to tie France to
the European Defence Community would mean handing France over to the
German revanchists.
The French nation is seeking a way out of the impasse in which it now finds
itself as the result of submission to foreign diktat; a way out undoubtedly
exists. It is the return to a self-reliant, independent foreign policy which would
strengthen the country’s security and reflect the interests, of the regeneration
of France.

We warmly wish the French people, with whom our people have long had
ties of friendship, and of blood jointly shed in the fight against the common
foe-the German militarists-success on this path (applause). We do not forget
either that the Soviet Union and France have a treaty of alliance and mutual
assistance which could serve as a basis for the development and the
strengthening of the relations between our countries and serve the cause of
ensuring European security.

It is also necessary to solve the Austrian question, which presupposes first
and foremost the removal of artificial barriers, such as the “abbreviated treaty”
that is contrary to the existing agreements between the four powers. No one
could dispute either, that the correct solution of the German question help to
solve the Austrian question also.

An important condition for the strengthening of the cause of peace is to
heighten the prestige and role of the United Nations. Today this international
organisation is virtually in a state of profound crisis, for it has been reduced to
the level of being one of the levers of the North Atlantic bloc.
The United Nations must return to the path which has been determined by
its Charter. The direct duty of the United Nations consists in facilitating the
settlement of international problems and in excluding the possibility of
aggression on the part of any’ member state against any other state. The
Soviet government will in this matter give it energetic support (applause).
The Soviet Union is steadfastly carrying out and will continue to carry out a
policy of peace. The Soviet Union does not intend to attack anyone. Aggressive
intentions are alien to it. Of this the peoples of all countries can be confident
(stormy applause).

But, fighting insistently for the cause of peace, we must at the same, time
firmly remember our sacred duty steadfastly to strengthen and to improve the
defence of the great Soviet Union. We must do this in case anybody, thinking
of committing an act of madness, should attempt to violate the security of our
motherland. The Soviet people must at any moment be ready to cool the hot
heads of any types of adventurers and provocateurs of war and force them to
respect the socialist attainments and the might of the Soviet Union (stormy,
prolonged applause).

For the Soviet government, for all of us Soviet people, the cause of
strengthening peace and of safeguarding the security of the peoples is not a
question of tactics and diplomatic manoeuvring. It is our general line in the
sphere of foreign policy (stormy applause).
Hundreds of millions of people believe arid hope that the immediate future
wilt lead to a further relaxation in international tension. One must see to it that
the peoples are not deceived in their expectations and hopes.

3. Our Cause is Invincible

COMRADES DEPUTIES, the policy of the Soviet Union, at home and abroad,
corresponds to the vital interests of all the peoples of the U.S.S.R. Therefore it
enjoys boundless support.

A mighty source of the strength and firmness of our socialist state, of its
success in the building of communism lies in the moral and political unity of
the Soviet people, their rallying around the Communist Party and the Soviet
government. The Soviet Union is a mighty socialist power, full of creative
forces, and is successfully advancing along the road of building a communist
society.
The socialist system existing in our country has tremendous opportunities
for a new and still more powerful development of our economy, for the
flourishing of culture, and for the further improvement of the people’s
wellbeing. We are using all these potentialities to ensure further progress in
every sphere of Soviet society and its gradual transition to communism. One
cannot doubt that so it will be (stormy applause).

All that we do, in disclosing and openly criticising shortcomings which have
been discussed at the present session of the Supreme Soviet and during all our
everyday work, we do, not in order to extricate ourselves from an economic
crisis or from an economic depression, in which capitalist states are always
struggling. We do it for the purpose of raising still higher our agriculture and
industry, our economy as a whole, and of utilising still more fully all the
possibilities of the socialist economy and improving the people’s wellbeing, so
as to make our mighty socialist motherland still stronger (stormy applause).
Unlike all the bourgeois parties and states which conceal their true aims
and policy, the aims and policy of the Communist Party and the Soviet state
are clear and open to all the people.

The founder of our Party and of the Soviet state, V.I. Lenin, teaches us that
a state is strong through the consciousness of the masses. It is strong when
the masses know everything, can judge everything and consciously accept
everything.
The Party therefore ceaselessly works to raise the political and cultural level
of the masses of the people. The Soviet state and the Communist Party are
systematically educating the masses in the spirit of Soviet patriotism, in the
spirit of the communist attitude to labour, a careful attitude towards socialist
property, a deep understanding of state interests, in the spirit of revolutionary
vigilance and the strengthening of friendship among the peoples.

The Communist Party and the Soviet government know where and how to
lead the people, because they are guided by the scientific theory of social
development-Marxism-Leninism, the banner of which has been raised so high
by our father and teacher of genius, Lenin, and the continuer of his cause-
great Stalin (stormy applause). The Soviet state and the Communist Party are
arming the people on the basis of the teaching of Marx, Engels, Lenin and
Stalin, with a profound knowledge of the objective laws of the development of
society, the laws of the building of communism, thus giving clear perspectives
for the creative activities of the Soviet people.

Our mighty Communist Party, dear to the hearts of all the Soviet people, is
showing untiring concern for the strengthening of the Soviet state for the
ensuring of the security of our motherland against the encroachments of
external enemies, and for the flourishing and wellbeing of the peoples of the
Union of Soviet Socialist Republics (stormy applause).

The steel-like unity of the Party, the guiding role of the Party in the state,
the strength and might of the Soviet state and the interests of the people are
inseparable. The Soviet people can be assured that the Communist Party and
the government will not spare their strength and labour in the cause of a
happy, well provided for and joyous life for all the Soviet people, in the cause
of the fulfilment of the great aim-the building of a communist society in our
country (stormy, prolonged applause).

The entire democratic and peaceloving camp is growing and becoming
stronger, together with the Soviet Union. The countries of people’s democracy
are confidently marching forward: The entire democratic camp is engaged in
peaceful, creative labour, in persistent work to increase the people’s well-
being.

It is rightly held in the people’s democracies that the consolidation of firm
unity between the working class and the peasantry is an indispensable
condition and, the guarantee for their successful progress forward. It is dear
that it is only by steadily pursuing this tried Leninist policy that all the tasks
confronting the people’s democracies can be solved.

In the sphere of international relations the people’s democracies are
determinedly upholding, hand in hand with the Soviet Union, the cause of
peace and the security of the nations. The People’s Republic of China and all
the people’s democracies are pursuing their own independent national foreign
policies, policies which are in keeping with the vital interests of people. The
imperialist forces can, no longer juggle with the fate of people who have
forever done away with dependence on the imperialists. This infuriates those
who love to make someone else pull the hot chestnuts out of the fire and to
exploit other nations. The people’s democracies are not at all concerned.

They have struck out on a new path, and will never step aside (stormy applause).
He who does not understand that the 800 million people, who make up the
great family of peoples of the countries belonging to the democratic camp,
cannot be compelled to give up their historic achievements, won with their
blood and sweat, to give up their own people’s power and to re-establish a
regime of exploiters, simply puts himself in a foolish position. It is dear to the
whole world that aggressive forces will not succeed in turning back the course
of history. He who wants to conduct a sober policy on international issues must
stand on the ground of stark reality, on the ground of facts, be they pleasant
or not.

It must be realised that in the present correlation of forces, in face of the
firm determination of the Soviet Union and the countries of the democratic
camp to defend their vital interests in the international arena, the carrying out
of the policy of peaceful co-existence of the two systems is an obligation, not
only of the countries of the democratic camp, but also of all countries; any
other path is a path of hopeless adventure and inevitable failure.

The democratic camp, closely rallied and uniting a third kind, is a powerful
factor in the preservation and strengthening of peace throughout the world.
The whole of mankind is indebted to the peoples of the democratic camp for
the fact that it stands as an unsurmountable barrier across the path of those
who endeavour to unleash a new world war. If the peoples are vigilant and
direct their efforts to prevent the carrying out of the plans of aggressors, peace
will be safeguarded (stormy, prolonged applause).

Comrades, the Soviet country is facing great tasks. The carrying out of
these tasks will raise our country to new heights, will lead to an improvement
in the wellbeing of the people and to the all-round prosperity of the socialist
community.

Courage and confidence are being instilled into everyone of us by the
monolithic unity of the Soviet people, and their immense solidarity around
their own Communist Party and government (stormy, prolonged applause).
The Communist Party, the Soviet government, and the whole Soviet people
will contribute their efforts to solve the historic tasks which are facing us.
Our cause is invincible!
We shall proceed confidently forward along the path of communist society
in our country (Prolonged applause, mounting to an ovation. All rise).

Enviado por Enrique Ibañes