TNAG-0616-FCO40-764-Policy-of-UK-on-status-of-Hong-Kong-1977 — Page 82

I. 20 Oct 77

E 5

PRC

NATIONAL AFFAIRS

Only with the development of production and an abundance of commodities can we have an adequate supply of goods for export and broaden our exchanges with foreign countries. At the same time, making a success of foreign trade work will stimulate the develop- ment of production, while making a mess of it will hamper the development of production Therefore, foreign trade departments must not confine themselves to the circulation channels. They must care about production, take part in it and organize and promote it.

In counseling party committees and implementing the general principle for financial and economic work of "DEVELOPING THE ECONOMY AND INSURING SUPPLIES," foreign trade departments in various localities must closely coordinate with relevant departments in going deep into the spheres of production, in maintaining contacts with the masses, in conducting investigation and study, in participating in production, in doing a great amount of work, and in acquiring abundant experiences. For instance, on the basis of international market requirements, they should outline export categories, assist production departments and rural communes and teams to organize and promote production and handle procurement work well. They should acquaint the masses with certain processing techniques, introduce fine seeds and improve varieties. They should bring in equipment for key projects and explain samples and their production techniques, giving necessary economic assistance in accordance with the stipulations set by the state, etc. From now on we must commend achievements and overcome shortcomings so we can do better in this field.

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The supply of goods for export in foreign trade relies mainly on supplies furnished according to state plans by various departments, provinces, municipalities and auto- nomous regions. This procedure will be followed in the future. Led by local party committees, bases for producing export commodities, plants and workshops for turning out industrial goods for export at selected points should also be set up, for this will go a long way toward increasing the supply of export items. Premier Chou said in 1960, "It is quite imperative for the Ministry of Foreign Trade to set up bases for producing export commodities and to undertake capital construction. He again remarked in April 1972, "Why can't we let plants with better facilities produce export items?" Practice has shown that doing so will facilitate meeting the requirements of the international market, promoting the sales of commodities of high quality and well- known brands, and stabilizing the supply of export items on a regular basis according to fixed schedules and established norms for quality and quantity. This will also promote the development of production, raise the leve of production techniques, promote the growth of the collective economy, increase the incomes of the communes, brigades and the masses, increase the accumulation of capital for the mechanization of agriculture and promote a flourishing domestic market.

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Brandishing their big stick of the "theory of productive forces, the "gang of four" disrupted agriculture, industry, communications and transport, thus wrecking the foundations of domestic commerce and foreign trade. In the name of criticizing "the set of stringent rules and regulations drawn up by the ministry concerned, they also used the mass media under their control to attack the establishment of bases for producing export goods as "forming a separate system and rejecting the centralized leadership of local party committees" and "disrupting the socialist economy. This was an out-and-out attempt to confuse right and wrong. In fact, the initially successful operation of bases for producing export goods over the past years has been due to the centralized leadership of local party committees and the result of bringing into play both the central and local initiatives.

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In order to meet the needs of the developing situation, we must further unify our understanding and make a success of setting up bases for producing export goods in selected areas. In this regard, the bases for this purpose may take different forms, such as joint operations by several departments, division of work on the basis of product categories, or separate operations under a zoning system. [paragraph continues]

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