861.50/11–1046: Telegram
The Chargé in the Soviet Union (Durbrow) to the Secretary of State
priority
[Received November 10—11:10 a.m.]
4105. As indicated in Embtel 4096, November 8, Zhdanov’s speech November 6 is one of most revealing pronouncements made by Soviet leader represent[ing?] economic plight of country despite its obvious sophistry and Bolshevik double-talk.
Audience at Bolshoi Theater received speech with marked lack of enthusiasm which gave impression they fully realize real significance black picture as painted directly or between lines. General tenor of speech in text as well as emphasis given by speaker may be summed up as follows: You may think that life is most difficult here but you ought to see how bad life is in capitalist countries and how much the people are suffering in those countries; your Govt doing something to help, others are not.
Zhdanov emphasized the “political and economic crises” in US and UK and other capitalist countries and claimed that in contrast Soviet Union had no such crises. In order to prove this point he used such tricks as a false comparison between production in US and USSR, stating that total US production 1946 was one-third less than total production 1943, while in USSR civilian (underlined) production during first three quarters 1946 compared to same period 1945 had increased 19 percent and average daily carloadings during same period had risen by 12 percent. It will be noted that for American figures total production is used and that cited for USSR is only civilian production.
Despite Zhdanov’s effort to prove that crises only arise in capitalist states, entire speech is admission of grave economic, political and ideological crises now taking place in Soviet Union.
He makes it clear that severe hardships face Soviet people in overcoming difficulties brought about by the war, that they all must tighten belts for indeterminate time, all must work harder, and makes it clear that tens of thousands of people who are either not now working or have white collar jobs will be forced into factory work in order to try fulfill 5-year capital investment plans. While Zhdanov did not say so, it was clearly implied that recent measures of depriving [Page 805] various categories of adults, particularly women, of ration cards unless they were engaged in useful work were measures taken to force these persons into factories. Furthermore, his reference to redistribution of manpower was confirmation of fact that many white collar workers in bureaucracy, including that of collective farms, are being dismissed, thereby deprived of ration cards, and thus forced to seek employment in factories. These admissions tend confirm low productivity of labor, failure of production in many industries to come up to plan, and lack of enthusiasm on part of masses to enter factories and get behind 5-year plan to produce goods which in general will not alleviate their individual plights.
As indication of hard pull ahead, he reiterated Stalin’s recent statement that restoration of devastated areas will take at least 6 or 7 years. Zhdanov attempts to explain difficulties and hardships as an economy measure necessitated by tremendous expenditures which state must make under 5-year plan. Without saying so, he makes it clear by this argument and others, as well as by admission that local and cooperative industries particularly must increase consumers’ goods production, that one of principal reasons for increased ration prices was to drain off surplus rubles from masses so that they would not be in position to create run on consumers’ goods and foodstuffs markets if, as and when derationing takes place. Increased ration prices, of course, will also tend to force workers to overfulfill their norms to attain sufficient rubles to make ends meet after their surplus rubles have been drained off by high prices.
It is interesting to note that for first time it has been officially admitted in connection with cut in rations and increase in ration prices that this was necessary because of “reduction of state stocks”. This tends confirm not only that stocks low but that because of sales on free markets etc., state does not control sufficient amount of available stocks.
In this connection it is significant that Zhdanov thought it necessary again to refer in detail to recent measures taken to stamp out survivals of capitalism in the economy, particularly in agriculture. His further reference to serious efforts now being made by Govt to put entire machine back on ideological track, indicates extent to which individualistic tendencies have grown up in recent years and how, despite 29 years of Marxian inoculations, the serum has not cured basic trait of human nature to look out for oneself first.
Speech as regards internal economic situation was most defensive in tone and was obviously given for purpose of trying to quell discontent and disillusionment of masses caused by recent decrees and actions of Govt by trying to give them some solace in thought that despite hard times they were better off than anybody else in world. Despite explanations [Page 806] given, it is not felt that speech which emphasizes sacrifices ahead will raise morale to any extent.
In the international section of speech, the principal economic fabrication was the reiteration of Soviet opposition to the internationalization of Danube and “unjust principle of equal opportunity” which Zhdanov stated signified in reality desire of economically powerful countries to enslave small countries. He, of course, made no mention of heavy Soviet reparations or establishment of 50–50 Soviet-satellite companies which in fact are endeavoring to monopolize principle industries and “enslave” former enemy countries.
Department repeat to Paris, Nanking, Tokyo and London.