I. 20 Oct 77
B 7
PRC
NATIONAL AFFAIRS
We must thoroughly criticize the many fallacies of the "gang of four" and conscientiously implement the foreign trade principle of equality and mutual benefit.
In order to adhere to the principle of equality and mutual benefit in foreign trade trade work, extensive consideration of politics and economics is necessary. They are not to be considered separately. First, we should put politios in command and resolutely implement our foreign policy. Be it in exporting or importing, any unequal or unreason- able conditions cannot be attached. of course, we never impose unequal conditions en or make unreasonable requests of others. At the same time, the impert and expert commedi- ties must meet each other's needs. Reasonable prices must be set by mutual censent. We oppose the raising or holding down of prices by taking advantage of monopoly positions. We should mutually adhere to contracts, aot in good faith and meet the deadline, quality and quantity set down in contracts. We will continue to keep in step with the Third World countries in opposing and in striving to smash the centrol and menopoly of imperialism, especially the superpowers, over the prices of raw materials and primary products that we and the Third World countries export so that they can be sold at appropriate prices.
VII. Is It Necessary To Do Business With Flexibility?
Chairman Mao taught us: "WE SHOULD BE FIRM IN PRINCIPLE; WE SHOULD ALSO HAVE ALL THE FLEXIBILITY PERMISSIBLE AND NECESSARY POR IMPLEMENTING OUR PRINCIPLES. # In order to develop foreign trade, it is necessary to make appropriate use of accepted practices in international trade under the premise of upholding socialist principles. Whether we do business flexibly is a vital business question and also a question of whether we are going to struggle against the imperialist blockade, embargo, restriction and discrimina- tion.
Under the premise of adhering to principles, we adopted some flexible practices. The "gang of four" slandered these practices as "rightist capitulation" and "humiliating the nation and forfeiting its sovereignty." These alanders were intended to confuse right and wrong.
Acting according to their practices would only benefit imperialism, revi-
sionism and reaction, but not our socialist motherland.
Lenín said, "WE HOPE TO DO BUSINESS WHICH IS BENEFICIAL TO US AND THEY HOPE TO DO BUSINESS BENEFICIAL TO THEM. HOW THE STRUGGLE EVOLVES DEPENDS ON THE TACT OF OUR DIPLOMATIC PERSONNEL. "["The 11th Congress of the RCP (B)," from the "Collected Works of Lanin", Vol 33, p 231) A lot can be said about how to do business with flexibility in interna- tional trade. Although we have adopted some flexible trade practices, on the whole sur business has not been done with sufficient flexibility. Chairwan Mac pointed out:
* VE MUST FIRMLY REJECT AND CRITICIZE ALL THE DECADENT BOURGEOIS SYSTEMS, IDEOLOGIES AND WAYS OF LIFE OF POREIGN COUNTRIES. BUT THIS SHOULD IN NO WAY PREVENT US FROM LEARNING THE ADVANCED SCIENCES AND TECHNOLOGIES OF CAPITALIST COUNTRIES AND WHATEVER IS SCIENTIFIC IN THE MANAGEMENT OF THEIR ENTERPRISES. IN THE INDUSTRIALLY DEVELOPED COUNTRIES THEY RUN THEIR ENTERPRISES WITH FEWER PEOPLE AND GREATER EFFICIENCY AND THEY KNOW HOW TO DO BUSI- NESS. ALL THIS SHOULD BE LEARNED WELL IN ACCORDANCE WITH OUR OWN PRINCIPLES IN ORDER TO IMPROVE OUR WORK. We must conscientiously sum up the rich experiences of socialist foreign trade gained over the past 20 years or so. In addition, we have to learn from foreign experiences, strengthen our investigation and studies on the international market and continue to make an effort to learn to do business. We must be good at using differ- ent products, times and markets in importing and experting and flexibly use all trading methods under various complicated conditions, Doing business with flexibility is not only the task of the people engaged in foreign affairs but a task shared by various quarters concerned with foreign trade. We must give full rein to the superiority of our socialist system and make an effort to meet Premier Chou's demand to "do every business transaction well."
"