TNAG-0616-FCO40-764-Policy-of-UK-on-status-of-Hong-Kong-1977 — Page 83

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I. 20 Oct 77

T 6

PRC

NATIONAL AFFAIRS

Together with relevant departments under the centralized leadership and unified planning of party committees at all levels, we must unite, support each other and cooperate in the division of work according to local conditions and product classifications in a common effort to develop the economy, insure supplies and increase the production of export goods.

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V. Is It Necessary to Uphold the Policy of "Overall Planning and Proper Arrangement' and Correctly Handle the Relationship Between Domestic and Foreign Marketing so as To Set Aside a Portion of Commodities for Exports?

As two closely related segments in the sphere of circulation, the relationship between external and internal trade, like other things, is also a dialectical relationship of both unity and contradiction, On the basis of Chairman Mao's policy of "OVERALL PLANNING AND PROPER ARRANGEMENT" and Premier Chou's instructions, we have always followed these three principles in handling the relationship between external and internal marketings, Pirst, the export of essential supplies having a bearing on the rational economy and people's livelihood is to be limited. Second, actively develop the pro- duation of those commodities in short supply and earmarked for the domestic market and for export purposes, and set aside a portion for export, Third, commodities that are insignificant in the domestic market may largely be used for export. Implementing this three-point principle calls for "setting aside" a portion of commodities for expert on the basis of developing production. Chairman Mao often pointed out: "THE DOMESTIC MARKET IS THE MAIN THING, WITH THE POREIGN MARKET SUBSIDIARY. "THE OVERSEAS MARKET, HOWEVER, IS VERY IMPORTANT. WE MUST NOT OVERLOOK IT NOR TREAT IT LIGHTLY." "WE MUST ECONOMIZE ON FOOD AND CLOTHING TO INSURE EXPORTS, OTHERWISE WHAT LITTLE EXTRA WE HAVE MAY BE CONSUMED BY OUR 650 MILLION POPULATION. Practice over the years has shown that making proper arrangements can produce more things for export without affecting the domestic market. The "gang of four" attacked exporting as "unlimited export" and as "exporting even those things badly needed in the country." They did so to deliberately drive a wedge between the party and the masses, a downright mot of inciting and misleading the public.

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The comrades engaged in foreign trade must strengthen their concept of the overall situation.

They must understand all the aspects of the national economy and the party's economic policies, taking the initiative in making a success of uniting and in cooperating with various quarters. They should avoid judging foreign trade work from a single aspect. In striving to do export work well, they should also show concern for and support the domestic market.

VI. Is It Necessary To Adhere to the Principle of Equality and Mutual Benefit in Foreign Trade?

The great leader Chairman Mao and esteemed and beloved Premier Chou often declared that equality and mutual benefit is an important principle in our foreign policy and one which we must follow in conducting foreign trade. The principle means exchanging what one has for what one lacks. It is in opposition to the imperialist policy of monopoly and dumping, and opposes imperialism, especially the superpowers, seeking economic and political privileges.

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The "gang of four" frenziedly attacked and sabotaged our foreign trade principle of equality and mutual benefit. They fabricated many charges against our foreign trade departments. When our exports met the demand of foreign market, they attacked us for "making the foreign bourgeoisie comfortable by serving them" and for "being lead around by the nose by imperialism, When we sold our goods at international market prices, they cursed us for "simply giving away the blood and sweat of the masses of workers, peasants and soldiers to the foreign capitalists." Even when we were working in accord

they with Premier Chou's instructions, adhering to contracts and acting in good faith, maligned us as "rightist concessionists." (paragraph continues}