Khrushchev Plans For Affluence

Press, Volume CIII, Issue 30562, 3 October 1964, Page 13

Khrushchev Plans For Affluence

(N.Z. Press Association—Copyright) MOSCOW, October 2. The Russian people are to have better living standards under a “more-butter fewer-guns” proposal by the Premier, Mr Khrushchev.

Defence and heavy industries are good enough now, Mr Khrushchev told a recent Kremlin meeting, according to the Government newspaper “Izvestia.”

It was time to invest in raising living standards, in improving the consumer goods industries, and in producing goods up to the highest world standards, he told his planners. Westerners in Moscow say Mr Khrushchev’s proposal to stress the consumergoods industries is a radical change in the Russian pattern of the last 47 years, when leaders like Stajin sank their funds into iron and steel.

It is an issue that Mr Khrushchev quarrelled over nearly 10 years ago with the then Premier, Mr Malenkov, who wanted consumer goods in preference to heavy industry. Mr Khrushchev, the party chief, disagreed. Mr Malenkov had to resign in 1955, and Russia continued to pour investments into defence and the iron and steel industries. “Izvestia” quoted Mr Khrushchev as saying: “We have a mighty industry. The country’s defence is at an appropriate level. The party sets the task of more rapid development of the branches producing consumer goods. “At this stage of Communist construction our task consists in' further developing the production of capital goods for consumer output.” Mr Khrushchev has asked his planners—the State Planning Commission —to keep these thoughts in mind in drawing up a plan to succeed the current seven-year plan, which expires next year.

Mr Khrushchev has promised improvements before. Now he is making an attempt to keep the promises, observers say.