SOVIET ECONOMY Profit Incentive And Trade With West

Press, Volume CV, Issue 31029, 7 April 1966, Page 22

SOVIET ECONOMY Profit Incentive And Trade With West

(N.Z.P.A.-Reuter—Copyright) MOSCOW, April 6.

Russia's Communist leaders plan to push ahead with profit incentives for the workers and to increase trade with the West.

The Soviet Prime Minister, Mr Alexei Kosygin, told the Communist Party’s 23rd National Congress in Moscow today that the Soviet Union would press towards a new economic system setting profits as the main indicator of economic success.

By the beginning of next year nearly a third of the nation's factory workers would work under the new system, he said. The reforms, giving factory managers greater scope for initiative, might be going ahead even faster than planned, the Soviet Premier suggested. When they were introduced last September the reforms w’ere due to come into effect gradually this year in certain sectors of industry. Full change to the new system was planned for 1967 and 1968. Pressing Ahead

Mr Kosygin asked the Congress to endorse a new fiveyear plan for 1966-70 covering all aspects of production.

Observers in Moscow thought the Kremlin leaders might be pressing ahead faster than planned to give the reforms more chance to have their effect on the five-year plan.

Mr Kosygin criticised his predecessor, Mr Nikita Khrushchev, emphasising that the ways of the past could no longer serve the economy. He did not mention Mr Khrushchev by name but was clearly referring to him when' he condemned subjectivism; in deciding economic matters i as “amateurish contempt for! the data of science and prac-! tical experience.’’ Consumer Production The new five-year plan | which was published in February gives greater weight to consumer production than any of Russia’s previous eight plans since 1928. The 5000 Congress delegates, meeting in the Krem-i lin, will discuss it over the: next two or three days. : Mr Kosygin called for a big j

i expansion of exports, especially of plant and other manufactured goods, and he criticised poor advertising and serving for holding back sales of Soviet goods. Mr Kosygin called for increased long-term trade with the West, but he warned the United States against attempting to block Soviet trade with the West, the Associated Press reported. During the last five years, he said, the volume of Soviet trade with the capitalist countries—notably with Finland, France, Italy, Japan. Britain and Sweden—had increased by more than 50 per cent. “But the West’s trade rela-

tions with the Soviet Union are hampered by artificial barriers. A number of countries still levy high duties on Soviet goods. “The United States is trying to obstruct the development of Soviet trade with other countries, but its attempts are unsuccessful. “By doing so, the United States will only gain the unenviable reputation of trying in the 20th century to erect barriers to broad international commerce.” Mr Kosygin said that in connexion with the planned economic growth over the next five years, the Soviet Union expected to increase its purchases in the West.