 C00175691
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 CLAS UNCLASSIFIED
 CLAS UNCLASSIFIED
 AFSN LD3004111190C
 DDAT 900426
 SLIM Moscow Television Service in Russian 1500 GMT 26 Apr 90
 RUTH Gorbachev and other officials to workers at the Uralmash production
 association in Sverdlovsk on 25 April, and including Gorbachev answering
 workers' questions -- recorded
 SUBS [Addresses by Gorbachev and other officials to workers at the Uralmash
 production association in Sverdlovsk on 25 April, and including Gorbachev
 answering workers' questions -- recorded
 SUBJ TAKE ALL-- Gorbachev Addresses Uralmash Workers
 Full Text Superzone of Message
 1     ]
 2     [Excerpts] [Gorbachev] I believe that what the Urals are doing and the.
 responsibility resting on the shoulders of the worl'ing people of the Urals
 demand that everything that happens on this soil should always and
 constantly be within the field of vision of the center, the government,
 the party Central Committee, the leadership of the country.
 3     What is worrying us?  It is the fact that the Urals, which has done, is
 doing, and will do so much for the country, that this mighty region now is
 experiencing great distortions and strains in its development.  Not only
 production and economic distortions, but social ones, as well.  This
 already is spilling out into certain moods.  The situation is worrying us.
 4     These last few hours of contacts and conversations with the Uralmash
 people show that the correct information--is reaehingc._ People are
 confirming what was already known to us, which gives rise to a certain
 disquiet.  All the same, we evidently are getting into a situation in
 which this region, which has done so.much and always has tackled -- on the
 move, as they say -- enormous state tasks, tasks concerning the whole
 state: in defense, in the whole economy, in the country's power, has ended
 up in a position in which many issues concerning people's lives here have
 been moved aside, as it were.  In any case, one evidently can speak of
 certain deformations having taken place in the development of production
 forces in the Urals.  On the one hand, a mighty cadre and scientific
 potential has been created, which yet is capable of performing great
 tasks.  On the other hand, there are problems of ecology and social
 tension because there are great distortions and lags, primarily in the
 development of the social sphere.  What does the center need to do?  What
 do you need to do here?  What must be done together?  I would like to ask
 you to talk about this, especially as our meeting and my arrival in your
 oblast coincide precisely with a very important stage in the development
 of our economic reform.  We have gone through a sort of preparatory stage
 in that reform and have come to understand the country in which we live.
 Perhaps we have mainly understood its illnesses, which along with its
 achievements, undoubtedly exist.  We have tried many approaches in the
 economic sphere, many new methods of management.  Some have succeeded,
 others not.  Here and there we have simply miscalculated.  Now we have the
 starting foundations of a legal order and economic experience.  We have
 acquired experience, and have started thinking and talking to each other
 differently.  An environment has come about in which one can get economic
 reform underway solidly and radically.
 Approved for Release
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 5     Therefore talk is important from these positions, too.  What is more, I
 see anxiety.  It has appeared both in the press and here.  There is also
 what we are always discussing and want then to put forward for judgement
 with you -- the working people, specialists, and scientists -- and the
 whole country: the proposals we need to implement now in order for us to
 embark on sharper changes and more serious turnabouts, to put it bluntly.
 Misunderstandings and anxiety have arisen here.  Primarily, all people
 have gotten the idea that it is planned to do something to prices, so how
 we are going to live?  In general, it touches precisely upon what we are
 going to do in order to live better, so that the situation should change
 for the better.  Evidently the people's, patience is already at its limit.
 6     We have conducted two Presidential Councils, joint session of the
 Presidential Council and the Council of the Federation, and we will
 assemble somewhere around the 10th.  The government will carry out the
 critical observations and evaluations that have been expressed on the
 proposals we discussed, all the things I have just been talking about.  We
 will return to that again, and then, as they say, we will go to the people
 in order to weigh everything up thoroughly.  Such a change needs to be
 made by everybody, together, if we understand each other.  You have your
 own wishes, desires, demands,and judgements here on all aspects of our
 life, both domestic and foreign policy, on everything that worries you and
 that you would like either to put forward or to ask directly, in a spirit
 of openness, truth, and glasnost.
 7     LD3004111190TAKE1
 8     [Excerpts] [Uralmash General Director Stroganov] [Passage omitted:
 problems and barriers in the way of transition to free market] The third
 thing on which I would like to dwell--- i-s--*a*a..~~ion-,-- wh1ch already-is-being-
 examined by the government today.  To be frank, we have prepared a letter
 to you and would like to ask you to examine it.  What do I want to say in
 connection with that?  I think that the system has not yet been thought
 out deeply, and I mean taxation as a whole.  As for the approach with
 which we are familiar--we participated; I. was at a meeting with Nikolay
 Ivanovich Ryzhkov on the transition to a free market, and our specialists
 participated--if we put it into practice, then I am not afraid to say,
 Mikhail Sergeyevich, that it will be the end for machine- building because
 there simply will not be any money left for develpment, not expanded
 reproduction, but normal development of the enterprise.  In other words,
 for us to develop normally, to develop normally and to live, it is
 necessary for us to be left with--I do not want to calculate this
 percentage precisely today--but at least no less than 60 percent of our
 earned profit.
 9     [Gorbachev] I noticed that labor productivity is growing decently at your
 enterprie.  Is this linked with modernization of production, price
 formation, or with the intensification of labor?
 10    [Stroganov] Unfortunately with intensification...
 11    [Gorbachev] When you say that according to your calculations the
 changeover to the new economic relations could ruin machine- building,
 which calculations do you have in mind?
 12    [Stroganov] These calculations have been done on the basis of the planned
 deductions: 30 percent to the union budget, 25 percent to the republican
 budget, plus new types of payment for land, electr`city, and labor
 resources.  If you add all of this together, then we are left with less
 than 30 percent.  That is to say that nothing remains for forming capital
 C00175691
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 funds.  This is a key question for us.
 13   [Gorbachev] Tell me, do you compare your output?  Is it competitive on the
 world market?  At least, what percentage is competitive?  In connection
 with that, my next question: For your competitive output, what is the
 difference between union prices and the world prices at which this output
 is sold?
 14   [Stronganov] By way of example, I will say that our quarry excavator is
 absolutely competitive with foreign machines of the same class.  We supply
 this equipment to Soviet customers for 190,000 Rubles.  There has never
 been an instance when we sold an excavator abroad for less than R600,000.
 15   [Chebotarev] I am Yuiry Fedorovich Chebotarev, chief of the social and
 cultural service directorate of the Uralmash works.  I would like to say a
 few words, specifically, on the subject of consumer services.  [passagee
 omitted: covered by referent item]
 16   [Gorbachev) How much housing do you have and what is the subsidy for
 maintaining it?
 17   [Chebotarev] The subsidy from the works is almost R7 million.
 18   [Gorbachev] Obviously many people would agree to take apartments as their
 own property?
 19   [Chebotarev] There is such an initiative, but the right to carry out such
 a transferral has not yet been given to the local soviets.
 20   [Gorbachev] But this concrns your housing, it is departmental.
 21   [Chebotarev] Departmental; yes, it is departmental, but there are many
 complicated issues here.
 22   [Gorbachev] But this is a matter of handing them over for free.  The
 apartments are received; people live according to the norm.  We are not
 talking about those who are waiting.- Their situation, of courses must-be--
 improved, but those whose housing corresponds to the norms should have it
 given to them as their own property, for free.  Let them amaintain their
 apartments themselves and pay for it themselves.  For comrades, when we
 say that rents here are low, this is an artificial approach. They reduced
 wages, and at the expense of this they made housing cheap.
 23   Naturally, this does not concern people in need, people of little means.
 The state is bound to take care of them, but as far as the basic mass is
 concerned, it is possible to act in this way.  However, when someone
 realises that it is his own apartment, he will maintain it in a different
 way, and the housing stock will be in a completely different condition,
 especially our entrances.
 24    Look at what the West has donel, There wages decide everything.
 25    LD3004111690TAKE2
 26    [Excerpts] [Gorbachev continues] Public stock is very small.  On the
 whole, people live on their wages.  They get, say, $2,000 and immediately
 30 percent goes on housing and 11 percent on taxes.  Forty-odd percent of
 their earnings have gone already.
 27    We are used to this or that being free, and people do not see their wages
 anyway.  Now, if they were to receive them in full and pay for everything
 themselves, then it would be a completely different matter.
 28    Apart from this, what does receiving housing as property mean?  It means
 that people have received property: One person, two, or many.  That is how
 market relations appear in society.  So far, this does not exist here, but
 the question probably must be considered properly.
 29    [A.A. Tokminov, leader of Uralmash's mixed-skill team] workers' initiative
 and their labor vigor and fervor have declined significantly here
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 recently, Mikhail Sergeyevich.  [passage omitted: covered in referent
 item]
 30    People somehow need to be taught to work well, to earn well, and to live
 well.  If we teach any person, not just the producer, but the worker, the
 designer, and the technologist, they all will do their work.
 31    [Gorbachev] If we forget how to work, or to put it the other way round, do
 not learn how to work even better, nothing will happen.  You might have
 the most brilliant rallies and even, let me tell you, the very best laws
 -- I do not think we already have ideal laws, but assume that we do -- but
 it will all be left hanging if it does not come through the person and his
 labor.
 32     [Tokminov] [passage indistinct]
 33     [Gorbachev] This is the first thing I support very much.  I believe that
 all the good things that have been accumulated to stimulate human labor --
 both moral and material stimuli -- must be used, while adding new ones to
 them -- I do not want to talk about this now -- through new provisions, so
 to speak, to enable the person to have a real influence on all matters.
 We have been throttled by egalitarianism [uravnikovka].  If we do not
 properly value the labor of the worker, the collective farm worker, the
 teacher, the doctor and the engineer, but keep on assessing it according
 to the scale and the rate, we will not move forward.  I have been told of
 cases in which surgeons, for instance, cannot carry out an important
 operation without high-grade nurses, but a surgeon does not possess any
 rights to encourage a specialist who, in his opinion, is worthy of a
 professor's wage.  So what happens?  Such a nurse leaves the team and the
 whole cycle of complex operations falls apart.  There is a similar picture
 everywhere.                                     - --- -               -
 34    In science, too, remuneration is according to rank and degree: seniors,
 juniors, and scientific assistants.  However, the contribution to the
 common cause over a year, over the last five years, which a man has
 contributed, hardly bothers anyone.  But if his work was noticed because,
 according to the contract, some amount was received thanks to this, then
 in any case it was divided equally.
 35    We are faced with the problem of stimulating the labor of our top
 scientists.  First, conditions must be created for them, so they all have
 the necessary apparatus and are armed, so to speak, with appliance to
 realise their potential.  Second, in general, we must, accept the
 appropriate expenditure in this case.  Once, in Stalin's time, a practice
 dragged on for a long time -- and we have not gotten away from it yet --
 for developing, for solving the task of the atom bomb.  The leading
 academicians were given property from the state forever, in order to solve
 that task, to say nothing of other matters.  In other words, we must, in
 general....[changes thought] There is a task.  The collective has made a
 decision; it must be stimulated.  One hundred or 200 must be given over,
 and not counted.  Really, R300 have been counted, and that is all.  Or
 200, and that gets you nowhere.   What then? What will happen then, in
 general, to the smaller number and better quality?  After all, who can do
 it better and produce more?  It is the person who is capable of providing
 quality.  That is talent, his own talent.  I do not know; this has to be
 thought about without waiting for any reforms. I wanted to support you
 completely.
 36    [Workshop chief Tobolov) [passage omitted: Calls for an end to the
 election of managers]
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 37          [Foundry worker V.F. Boyankin] [passage omitted: General complaints about
 waste] This used to be a purely male profession.  People asked why there
 were no women, but men do not come here now; the pay is low.  This is at
 hot furnaces -- you have seen what sort of furnaces we have; they are not
 Russian furnaces; they take a load of 300 to 500 tonnes -- it is not
 something to be done by women.
 38    [Gorbachev] In general, the situation of women, above all, is an indicator
 of the fact that our society needs changes.  Let us acknowledge this
 honestly.  Take just the USSR Presidential Council: There are no women.
 39    LD300411179OTAKE3
 40    [Excerpts[ [Gorbachev continues] Take the other leading bodies: It is the
 same dismal picture.  On the other hand, they are working in places where
 there should not be any women at all; In hot workshops.  So comrades, we
 can look at any issue and we will see that here, in this matter, all the
 work still lies head of us.
 41    If you have no objections, I will answer your questions and say something.
 Right.  [video shows Gorbachev and officials on a platform; Gorbachev and
 subsequent speakers take the rostrum in turn, with Gorbachev interrupting
 rostrum, speakers from his position on the platform; then Gorbachev
 leaving the platform and mounting the rostrum, from which his subsequent
 remarks are addressed]
 42    The first thing I have felt in my dealings with the people of the
 Urals--until now I knew about it only from reports--is that the people
 here have endured much and are enduring much, and they are reliable and
 strong, but that much anxiety and alarm has appeared, even among these
 people.  This also has begun to reach us: precisely, an understanding of
 the meaning of the Urals for us, and--within-the--Ura-1s;              k-------
 Oblast, which probably shares second or third place in terms of its
 potential, probably behind Leningrad.  All the same...
 43    [Unidentified speaker from out of shot, interrupting] Ahead!
 44    [Gorbachev] Ahead, eh?  Well, that means you have achieved second place.
 This confirms even more the thought of what role and contribution are made
 both by the Urals.as a whole--that mighty industrial area of our country
 and major region in the scientific field and in all other respects--and
 within it, by Sverdlovsk Oblast and the working people of this oblast,
 where--if you leave out the northern parts, so to speak, and the
 forests--huge masses of people are concentrated who are dealing with great
 tasks for our country, on the defense, economic, and scientific planes.
 All this, taken together--both the role played by the people of
 Sverdlovsk, this region of yours, and its labor collectives, and the
 anxieties and concern that have begun reachng us from here--have brought
 me here to you, although I have long had this desire.  I even believe that
 it was, strictly speaking, a considerable omission of mine, and I am very
 glad that I am making up for it.  I think that both the president and
 general secretary of the CPSU Central Committee, as well as other members
 of the Soviet leadership probably need to pay more attention to the Urals.
 45   That was the first thing.  I have felt that, in general, people are not
 losing heart, but they have already said a lot.  This conference has
 supplemented even further what was said directly in my meeting there, in
 the course of lively contacts with workers, the working people of
 Uralmash.  I understand all that, comrades, and I want to say right away
 that it is all of very great importance for me because we have approached
 a stage in the development of the country and the development of
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 perestroyka itself--that policy aimed at the renewal of our society--in
 which we have to take political and socioeconomic decisions that are very
 important for the destiny of the country.  What people are thinking, how
 they are reflecting on the subject of perestroyka, how they assess the
 situation, what they think has to be done urgently, and what proposals
 they have on this point all are very important for me now.  You understand
 that, of course, I have my own position and my own convictions.  I might
 say a little about them.  At the same time, throughout all the years of my
 life and work, I have professed style, apart from what you think, any
 decision, any matter, must be compared with and checked against the
 opinions and judgements of people, the working people.  This is all of
 great importance becuse it is precisely this that Is perhaps a most
 important condition for both elaborating a correct policy, and managing
 with fewer losses and mistakes.
 46   After all, comrades, through perestroyka and what we have been doing in
 recent years we are heading for new forms of life in the economy, the
 organisation of social life,. the political process, democracy, and our
 federation.  We are heading for the forms that then will determine how or
 society will live in subsequent decades.---therefore, it is the greatest
 responsibility, the greatest responsibility.  If we say that as early as
 that turnabout, when we started prestroyka, we saw our society and its
 history in one light.  Then when we got into it mope deeply, and began
 considering and studying what sort of society we are actually living in,
 what we had managed to do, what kind of problems had arisen to confront
 us, what we had come up against, why we started shifting from one foot to
 the other and had, in essence, stood still in our society's movement, we
 realised that minor repairs alone, painting -and-a-change---o -wa-lpaperrs-,-- -
 would not do, comrades.  That would not do. The matter was very serious
 with regard to the economy, the federation, the party, the soviets, and
 everything, culture and the whole spiritual sphere.  Everything required
 very, very serious changes.  The aim of all these changes is, all the
 same, to ennoble society and create an environment and living conditions
 for people--from the material, cultural, and spiritual point of
 view--which enables a person to feel normal.  It would seem a simple task
 for a person to feel normal and confidente.  So, it order to reach our
 goal through him, we have to reject much, and above all, put our brains in
 order to overcome the confusion that has arisen here on the basis of our
 attempt to grasp where we have ended up and what has to be done, to
 understand each other,'to consolidate, and having made our choice, to
 proceed courageously because it is not so simple to cross that road to
 changes.
 47     LD3004112290TAKE4
 48     [Excerpts] So we now have approached the stage of adopting very major
 decisions.  Therefore, I decided to come to you, knowing the human,
 intellectual, scientific, and cultural potential of people living here, in
 this region.  This consultation is very important for me.  Thank you for
 the meeting you have given me.  I value it very highly.  I regard it as
 support, and I will say right away that there have been very pointed
 statements in the course of these conversations, and there also have been
 very pointed statements at this conference regarding perestroyka, the
 policy of perestroyka, and the activity of the center.  For the most part,
 I understand these critical observations as an attempt by people to draw
 attention to things, to insure that the leadership does not commit any
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 serious oversights or omissions, and keeps those matters in mind.  That is
 how I understand it.  For this, I express appreciation in a party-minded
 fashion.  I will tell you directly that we did not manage without demagogy
 in some conversations.  There was that, too.     Well, such is our reality
 now.  Demagogues also make use of democracy, perhaps even more strongly,
 .more often, and to a greater extent than we do.  However, it should be the
 other way around.  Everything sensible and responsible in our society
 should make use of this glasnost and democracy that have opened up to take
 power into their hands in a real way and to participate in the whole
 process of elaborating policy and of changing and restructuring our lives.
 49   In this spirit, I want to reply to the question that was raised in the
 conversation and is also here in these notes, [points to written questions
 on lectern before him] I will begin with how the party, the country's
 leadership, and I personally, as president and general secretary, view the
 role of the working class at this very important, historic stage in our
 society's development.  Comrades, the party will not be able to achieve
 the implementation of its policy, to continue its life successfully and to
 march in the vanguard of changes unless it bases itself on the working
 class.  I view with great alarm the note that comrades have sent -- I
 think it is, precisely, the head of the foundry -- saying that twelve
 workers submitted their resignations from the party today.  That worries
 me greatly because ultimately, it is at this very time that we need the
 active involvement, firmness, resolution, and support of the working class
 in everything the party is unfolding.  I am very disinclined to view this
 in the following way: somehow, just to think, that is the way the times
 are now; some come, others go.  I would ask both the works party committee
 and simply, party and works comrades-to meet- t he--eomrades--;--have-a- -    -
 comradely talk, and understand each other over what it is about.  As a
 rule, probably, these conversations will end with understanding being
 found.
 50   The country's present leadership -- the president, the government, and the
 Supreme Soviet -- hopes for an active contribution to everything.  Not
 just at the lathe, although certainly at the lathe, too.  Here I agree
 with the comrades who say -- and as the last of them asked -- when are we
 going to finish with the rallies and with the discussions, and when are we
 going to work harder, more vigorously, and more productively?  Presumably
 we all of us already realize that the discussions will probably continue,
 but the center of attention ought to be switched to implementing policy --
 both as regards the economy, social reforms, the party itself, and so on
 and so forth.
 51   LD3004114890TAKE5
 52   [Excerpts] [Gorbachev continues] In all of this we are relying on the
 support of the working class.  How has it come about?  I believe that the
 Party bears responsibility for this, and perhaps the resignation of
 certain working class comrades from the Party is an expression of their
 dissatisfaction over the Party's work from the viewpoint of the support of
 the working class, and in the sense of its active involvement in all the
 transformational processes.  All the same, it is not normal that in the
 elections, both the USSR People's Deputies and deputies for the Russian
 Federation, or even to the local soviets, all categories of workers were
 very hard pressed.  I believe, comrades, and I shall tell you straight,
 that the soviets will lose out as a result of this.  In order to prevent
 this, the soviets ought to think things through and set up consultative
 C00175691
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 bodies to be attached to every soviet without fail.  The most prominent
 and vigorous workers, workers who are committed to our cause of renewal,
 should join these in order to ensure that the elected soviet and the
 commissions under then are in permanent contact with the working class.
 That is the first thing.  The second point is that they should report back
 to the workforces and labor collective on what they have done.
 53    I shall tell you frankly that without this link between the newly created
 bodies, the soviets will not function properly.  The workers will not be
 happy.  They must know everything that is going on, and what decisions are
 made.   We need to introduce this correction factor.  That is my first
 point.
 54    The second thing is that we must think things through.  Comrades have
 asked the question: What sort of election campaign was it that introduced
 great chaos and which resulted in many people simply refusing to go and
 take part in the election campaign.  Some of them -- workers -- pulled
 out.  Even once they had-been nominated, they refused to participate in
 the contest because it was proceeding-in a form, in a manner that
 unsettled them.  Well, I must say that we cannot simply disregard this.
 We must think about the entire response we have elicited with an eye to
 the future in order to introduce correctives.  Lessons must be learned
 from this election campaign.  Lessons must be learned.  We cannot allow
 the soviets -- which to some extent have, I would say, been deprived of
 the genuine representation of the working call and the peasantry -- to
 become cut off from real life and the real concerns of people.  We must
 ensure that they are in constant touch with the working people via the
 electoral constituencies and consultative machinery.  This must be done,
 and we must act in this fashion.
 55   And so, in answering the question of how I regard the role of the working
 class at the present time -- an important time, I repeat -- my main thesis
 is that of the working class stands aloof from these processes, or at any
 rate does not take a particularly vigorous stance, then I shall tell you
 here and now that perestroyka will lose out.  Lose out.  We will be left
 marking time.  I want us to understand this.  Thera are still great
 opportunities to take part in tackling all these issues.  The Party, the
 trade unions, the councils of labor collectives, all these mechanisms must
 be utilized in such a way that the working class exerts its influence on
 all that is going on just now.
 56   Nov I want to answer a number of questions, because they may just cover
 much of what I was going to talk about later.  Two years ago in the
 country, a resolution of the Council of Ministers and the Central
 Committee was adopted on the development of private housing construction.
 At the present moment we have people willing to build housing for
 themselves under any conditions, but for the past year and a half the
 initiative group has been coming up against the problems of land
 allocation.  You cannot build on farmland in accordance with a resolution
 of the Council of Ministers, you cannot.build on forest land, because the
 State Committee for Nature Protection does not permit it.  Where can
 housing be built?  Now we must think it over; we need a different housing
 policy.
 57  First, different cities.  So the old ones must also be used and rationally
 reconstructed.  But now it is necessary above all to build.  Second, we
 must lift the restrictions on cooperative and private housing
 construction, and we must open up every opportunity, provide opportunities
 C00175691
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 to make use of loans, building materials, and so on and so forth.  I
 consider this to be such an important question that the comrades are'
 raising -- I am replying to a question that was asked of me: Mikhail
 Sergeyevich , did I believe that by the year 2000 ? ?e would fulfill the
 very task that we had set.  If we work as we worked in 1989 and we started
 to lower the scales and rates of growth of housing construction, then I
 will tell you plainly that we will not fulfill the plan.  However, if we
 step it up as we started to in 1987, and 1988 especially, and we develop
 housing construction using all sources, all forms of housing construction,
 bringing in people's own funds, too, going half way to help with loans,
 with enterprises, then we will develop initiative, and we could
 considerably expand the scales and solve the housing problem more quickly.
 I consider that we must at this stage think things over and get going.
 Resources must be diverted.
 58     LD3004115590TAKE6
 59     [Excerpts] [Gorbachev continues] Resources should be diversified, and in
 connection with this our investment policy should be reviewed.  There is
 now a real possibility to really speed up housing construction using
 people's initiative-and drive.--Therefore,--I have been pondering over a
 proposal on this account -- I even have already spoken about it -- and in
 the near future I want, as president, to put forward my ideas for the
 country -- and to instruct by decree -- in order to continue work aimed at
 expanding housing construction on a broader scale and using new
 approaches.  I would not like to go into details now.  You will learn
 about that, but I would support and I ask the local bodies of power to
 examine this issue from the point of view of allocating land for
 individual housing construction.  Ways-should          i comrades,_  d
 assistance given.  Countries build in different conditions and find such
 plots of land.  Similarly, land should-be allocated for gardens and
 orchards, so that people may grow all they need for themselves.   This has
 significance both in terms purely of food production and in social and
 educational terms.  Man who lives on land and is in touch with land and
 nature is a totally different man.  Next question: Mikhail Sergeyevich, in
 the spirit of openness, allow me to express the view that the open letter
 of the CPSU Central Committee on consolidation on a fundamental basis is,
 in my view, contrary to the fundamental basis set out in your talk on
 Lenin.  To me as a rank- and-file party member, your basis is closer.
 Knowing your style well enough, thanks to the medii, it was to my liking
 that you personally did not take part.  [Gorbachev corrects himself] it
 seemed to me that you personally did not take part in drawing up the
 letter. What can you say about this?
 60   Well, if I am to answer only the last question about whether or not I took
 part, I can say that I did take part.  But this, perhaps, is not enough.
 I think, comrades, we have to regard the letter as concern coming from the
 party organization.  Simply, communists alarm and disturb us very much
 every day.  We have received letters from you, including I think some
 letters from the urals, and from the party conference at the
 Uralmashzavod, which contained definite demands.  That is right.  In other
 words, a good deal of worry about the party emanates from conferences and
 meetings of communists, concern about preparing the congress in a defined
 way so that the congress can cope with the tasks facing it, both from the
 point of view of the purposes of restructuring and from the point of view
 of strengthening and enhancing the vanguard role of our Party in this
 C00175691
 Page: 25    of 37
 restructuring.  In other words, the question is th.-.tt we should more
 speedily reform our party along the lines of democratization and by
 opening up all the possibilities and forms enabling rank-and-file
 communists to participate in all processes of Party life.
 61   We have taken this onboard and have tried as far as possible to give it
 expression in the platform and in the draft rules.  Perhaps we should have
 worked on them a bit more, but we published them so that Communists could
 discuss them, so that they could gather material and critical remarks in
 time for the congress and come to it with good, necessary documents that
 would strengthen our party and give it another aspect, and so that
 communists might feel like masters of their own party.  If you take the
 platform or the party rules, then the main idea is that a Communist should
 feel that he is in charge within his primary party organization, in his
 rayon party organisation, and in the Party generally.  Therein lies the
 role of the primary party organization: to allow communists to select
 their own delegates, and in this way to exert influence on what the
 congresses decide.  We embarked upon this even without changing the rules;
 we took it to the Central Committee where it was adopted -- district by
 district, from the primary organizations.  We opted to support the desire
 of Communists to elect their leaders directly -- people they know, rather
 than electing 20 or 30 people and then finding that the secretary is
 someone else, and not the person expected by the communists.  Decide at
 your assemblies; decide at your conference on a multi-candidate basis;
 decide at the congress, when all is said and done.  That is the way we
 phrased it; on a multi-candidate basis, directly.   Let the delegates
 arrive at the congress straight from their constituencies and elect the
 main party leadership.  We want to uphold- hl-s--idea.-- I-t---could---be -t-hat - not-----
 everything will work out.  It could be that we are not quite ready for
 everything.  As the saying goes, there is something here to grasp hold of
 and to say.  Comrades, we must see this through; we must build up our
 experience; we may come down with some illness; but we have gone in the
 right direction and taken the correct line.
 62   LD3004122990TAKE7
 63   [Excerpts] [Gorbachev continues] Following on from this, we invited people
 to submit alternative points of view and platforms.  We want this: we want
 dissent, we want a contrast in viewpoints.  We encourage this.  The
 Democratic Platform -- we published it and started discussing it.  Then
 the platform of a Marxist party appeared -- a Marxist platform.  We took
 it on board it and published it.  Nov, comrade communists, discuss it!
 But against that -- and this is why we had to write that letter --
 communists are worried that instead of discussing views and going to the
 congress with some sort of [Gorbachev changes thought] Instead of
 consolidating and coming along with progressive and far-reaching
 documents, instead of that, practical work has begun to split the party.
 To split it.  This is not a struggle between opinic,ns, nor a comparison of
 viewpoints, nor a search for the truth, nor the consolidation of the
 party, all of which are important.  This is already an attempt to split
 the party in the run-up to the congress- - or perhaps at the congress
 itself.  At this important, indeed crucial stage in the development of the
 country, the state and society, we cannot expose a force like the
 Communist Party to attack.  There, this is only directed against the
 splitters and not those who think, who criticize the platform and the
 draft statutes.  When the letter was discussed, we asked what it was they
 C00175691
 Page: 26    of 37
 were criticizing?  I myself, the Politburo and the members of the Central
 Committee raised the question.  Incidentally, we sent all Central
 Committee members a draft of the letter -- all members of the Central
 Committee and first secretaries.  They took part and expressed their
 thoughts; and a question arose there: What's this, if they criticize the
 platform or the draft statutes, does it mean that that a comrade or
 comrades must be excluded from the Party?  In that case the first one we
 must exclude is comrade Prokofiyev, secretary of the Moscow City Party
 Committee, who expressed very critical and serious remarks on the draft
 platform at a recent meeting of the Politburo.  No, this is not what it is
 about.  It is about those who are creating groups, creating factions,
 creating intra-discipline, and pushing to break up...[Gorbachev changes
 thought] The party cannot fulfil the role of a vanguard in the present
 responsible stage if it is drawn into this struggle or into factions.
 Therefore, whoever does not like our principles and aims should leave.
 That's one choice; and they won't be treated as an enemy of the people or
 put in prison.  It is a political shake-up, a political shake-up of those
 who have embarked on a splittist path; (?it is also) a consolidation of
 all forces.  It also includes those within the ran)-.s of the Democratic
 Platform who both compare, ponder, and defend.  It also includes those who
 have proposed, so to speak, a Marxist platform.  People are pondering.
 Something is bothering both groups.  So let's compare all of these points
 of view.  Let's proceed so that our Congress fulfils its task.
 64    What do you think?  What level of work quality can one expect from a
 kindergarten teacher if his workload is such-and-such and his wage is
 such-and-such?  Well, I accept that question.  Much that is convincing has
 been said here. We need to think. We need to think
 65    I have talked about the working class.'  I was just referring to a
 particular note.
 66    Do you know that the composition of the Presidential Council has not met
 with approval among a significant part of the population?  I don't know,
 and also I'm not convinced that comrade Zhenin, who said to me that the
 Presidential Council has not met with approval among a significant part of
 the population, himself knows, and I would advise that conslusions on this
 should be made with very great care, conclusions to the effect that
 somebody in our country knows everything.  We've got used to the people
 consider, the people think, the people condemn, the people.  Let's start
 using these categories more carefully.  These references to the people:
 The people will say what they think.  In the final analysis they will
 express their decisive word.  When it is necessary they will always have
 their say.  Therefore one must not talk about the people in this way.  As
 for approaches to the Presidential Council, a certain part is, as it were,
 formed according to the post principle. This is a Presidential Council
 with political functions.  Incidentally, it is a council.  It is a
 collegium.  It is not a deciding body.  It advises in order to help; it
 advises and works through questions for the president.
 67     LD3004133990TAKE8
 68     [Excerpts] [Gorbachev continues] Incidentally the Presidential Council has
 not yet finished being formed.  I think that one o. two major economic
 planners should be on it.  We have agricultural experts on it but there is
 no economic planner on the industrialists' side.  The working class is
 representated by comrade Yarin.  He has proved himself already.  He is a
 man of firm convictions, fairly adherent, so to speak, to socialist
 C00175691
 UNCLASSIFIED
 .  Page: 27    of 37
 ideals.  He stands firmly on positions of the working class and has
 sufficient strength of character to speak the truth to everyone -- which
 is very important -- and to convey the workers' mood to the Presidential
 Council.  He has broad contacts so he was included in it.  As for the
 others like Nikolay Ivanovich, that is obvious; the minister of foreign
 affairs and of defense, I think that is understandable, there,is no need
 to justify that.  Our science is represented and natural sciences are also
 represented, as is economic science.  Russia's representative is Comrade
 Rasputin from the creative intelligentsia, and Comrade Aytmatov is
 representative to our multi-ethnic country.  I must say that the last few
 sessions which have been held attained huge satisfaction from the
 participation of these people.  There is very much that they can say that
 is useful.  So, I,-comrades,-believe-from-the first sessions that the
 collegium can justify the hopes of the president, and I have had no
 disappointments so far.  We shall not hasten, life will show.  But much
 will depend on the president, too, on where he turns.
 69    The government's economic measures which are to be taken in the immediate
 future contradict the assurances of the chairman of the Council of
 Ministers at the second congress.  Why is this?  Yes, this is the second
 question.  Well, I have already touched on this with you, I think.  I have
 tried in the conversations during my visits to the workshops to tell the
 comrades and answer this question, and here we have already touched on the
 subject.   Comrades, we are really approaching a very important stage in
 the development of economic reform.  As proposed by the government in its
 program in the fall, you will remember it contains a pre-market stage, so
 to speak, on the creation and improvement of the market, the improvement
 of the financial system, and the implementat-ion---of--measures ---in--mone-tary
 circulation.  All this has to be implemented.  Well, we can see that the
 four months since have shown that the measures which we wanted for 1992
 and 1998 have to be brought forward.  The economy, perhaps, cannot hold
 out until then.  It will collapse.  So I would say this is not a denial
 and we are. not repudiating the program.  We see that adjustments have to
 be made to the program and the schedules have to be tightened. We have to
 make the transition more quickly.  We have given up the command-
 administrative methods but we have not replaced them with the economic
 methods yet and we have to put this whole system of measures into action
 as soon as possible, which means we must get moving.
 70    That means we must move in a responsible way toward a market economy,
 toward the mechanism of a market economy, toward new approaches to price
 formation, toward the whole package connected with a market economy.  We
 must work through many issues and decide our next moves for both the
 remaining months of this year and for 1991 onward.  These will be very
 important moves.  We shall certainly publish them and have a nationwide
 discussion on them, and after obtaining general agreement, so to say -- at
 least that of the majority of our people -- we shall launch them.  They
 will be measures providing for both radicalization and intensification,
 but at the same time safety mechanisms will be included: fixed prices for
 a number of the most important goods, so that, in aarticular, things
 affecting people's lives should not collapse, and so that the market
 should not worsen things yet further for us.  There will be measures for
 protection, for compensation, and so on and so forth.  In other words,
 people must know this for certain: As we said, we shall discuss these
 questions when we approach that stage, and when we have to engage in price
 C00175691
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 formation and everything else.
 71    LD3004140490TAKE91
 72    [Excerpts] [Gorbachev continues] We shall discuss these questions.
 73    There was a question here from -- I'm sorry, I don't rermember the surname
 -- but a foreman-mentor [man shouts name from crowd].      Yes, comrade
 (?Boyavkin); he said: Mikhail Sergeyevich, you said -- I understand that
 people follow what the leadership of the country say -- that we shall not
 change prices, but that prices change.  Comrades, if you remember, and you
 [Gorbachev changes thought] We shall not touch them for two years and so
 on; we always say that we shall not have a price reform, and we have not
 had one.  We have done it via the law, through contract prices, at the
 enterprises, through stimulating new goods, we embarked on [word
 indistinct], on all those supplementary payments, just as you do, for
 quality and for new output, and this process is still going on.  It is
 still going on.  But we have not implemented such a large-scale and
 complex reform.  We are now approaching this; wholesale, procurement, and
 retail ones.  All of this will be fully considered, and we shall start to
 take counsel with you: How to act in these conditions and what mechanisms
 we need so that social protection may be assured.  So we
 shall...[Gorbachev changes thought] In my opinion, on the level of
 principle, we are keeping our word and we remember what we said.
 74    I have tried to answer in brief.
 75    Third.  Possible alternatives in the development of events in Lithuania.
 We still hope that by using measures, even severe ones, we shall arrive at
 a political solution to this problem.  We are committed to this.
 76    But we have come up against -- I have to say this both before you and
 before the country -- we have come up-aga-ins-t a leader-ship----t-hat -s-
 incl.ined to adventurism and separatism.  That has to be said bluntly.  It
 is speculating on democracy and our adherence to political solutions for
 all questions that have come to a head. Listen: How do we resolve the
 simplest of questions in this or that oblast, in ore or another republic?
 A proposal is prepared.  Then there is preliminary discussion of it in
 this or that soviet, at this or that session.  Then it is put out for
 discussion by people in one or another republic, or one or another region.
 People express their opinions and then we return once more and adopt this
 or that decision.
 77    Here a fundamental question is being resolved about the fate of a republic
 and the people living there.  This solution affects the fate of our entire
 multi-national state.  They assembled at night, raised their hands, and
 decided.  This does not fit into any kind of democratic framework, and we
 can't...  [Gorbachev changes thought] I think that the Third Congress of
 People's Deputies acted correctly, and we -- that means the president, the
 government, and all at the center -- have only the mandate of the third
 congress.  The constitutional system must be restored.  We have to return
 to the position of 10 March, and then we will be ready to consider the
 question.
 78    Then we'll show the cards.  Here's a variant for when you leave the Soviet
 Union.  Here's what it will mean.  What will people do, who may perhaps
 want to return to their indigenous republics -- and there are about
 800,000 such people there, non-Lithuanians?  What will the fate of
 Belorussian lands be?  In 1940 they handed over five rayons.  The
 Belorussians have put this question.  Klaipeda was in the hands of the
 Germans for 500 years.  As a result of the war it became ours, so to
 C00175691
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 speak, and since then Lithuania has become part of the Soviet Union.
 Today the people of Kaliningrad are putting forward a proposal to join
 Klaipeda and the whole coast to Kaliningrad.     Russia is also putting the
 question -- the Russians.  Russia expanded towards the seas for hundreds
 of years.  It should have ports, and it is putting forward these
 proposals; it is calling on the center to resolve these questions.
 Finally, how are you going to pay for oil, for everything, for other
 things -- with hard currency?  We'll discuss this.
 79     LD3004145590TAKEIO
 80     [Excerpts] [Gorbachev continues] We will settle all this.  I beg of you,
 we'll settle these divorce proceedings.  This initially requires a
 referendum to see what people want.  I think the L=thuanians too are a
 very reasonable people, very cultured, educated, and capable of
 reflection.  True, they are in the grip of euphoria, and now the Sajudis
 is exploiting the people's craving for an independcnt Lithuanian state, so
 to speak.  But we say that state independence can also be settled in the
 framework of a new federation.  So we have something to offer.  Let the
 people reflect: either this way or another.  But this question must be
 settled normally in constitutional forms.  We will not withdraw from the
 mandate of the third Congress of People's Deputies.  I think sober voices
 are on the increase in Lithuania, understanding voices.
 81    I am conveying, at the wish of many people, the desire to take part in
 such meetings with you.  Azalmal.  Well, I am taking note of that.
 Tomorrow, comrades, there is a proposal to expand the hall, to change it
 for another one where there will be more people.  But overall I would say
 plainly that in the factories I would like to have meetings just like this
 one in a hall like this.  I know what 2 000 is and what 5,000 is.  I have
 conducted three Congresses of People's Deputies; I conducted the
 5,000-strong 19th conference.  So, comrades, you can have meetings, but
 conversations like the one you and I are having today, delving-into the
 essence of issues, is difficult in such halls.  Here, I can see all of
 you, and you can see me.  That is very important fir this process, so to
 speak, to take place.  Here we have no doubt come to the stage when there
 is more business, more depth, and not just a proclamation of slogans to
 one another.  We have already had our meetings.  Now for business.  Even
 for the most inveterate enthusiasts of meetings who get into the soviets
 the time is ripe for business, and it is business which will be the test
 of these lovers of meetings.  They have become agitated.  [applause]
 82    The question is being raised: Why is a ship canal not built in the narrow
 part of Sakhalin Island for the passage of our ships to Sovetskaya Gavan.
 Well, I take note of it.  I cannot say anything.  ;laughter]
 83    Incidentally, there was also the question: Will we give back the islands
 or not?  We don't have an inch of superfluous land, but we don't want
 somebody else's either.  [applause] The question is clear.  This,
 comrades, is excluded, and we will stand on the positions of Helsinki and
 the recognition of post-war realities, including the inviolability of
 borders.  Here we have the question will we give the Kurile Islands back
 to Japan.  I've answered.
 K84      True, there is one other very serious question: Does the government occupy
 `      itself with such phenomena as unidentified flying objects?  [laughter]
 Well, I think that this isn't a joke.  Probably there are some kind of
 occurrences in nature, and in that sense the comrade wants an explanation.
 In general certain scientific collectives are oriented, and they must know
 C00175691
 Page: 30    of 37
 and be involved with the nature of these phenomena.
 85   A question about ownership: What awaits us-- people's ownership, people's
 enterprises, or state ones-- and how can one overcome the alienation of
 the worker from the means of production?  One needs to start with the last
 statement, and we began with that.  You see, the kind of society we have
 found ourselves in, comrades, is one in which the working people in a
 socialist society have found themselves alienated from power, from
 ownership of the means of production-- they were not genuine masters-- and
 let's say, from the sphere of culture, from the attainment of culture, and
 so on.  It is necessary within the framework of what we have set in
 motion, and along all directions we are returning man-- via
 democratization and economic processes -- we are returning man's labour
 collectives.  By using new methods of management and new forms of
 ownership we are returning this process-- as a master, as a manager.  We
 are returning via a new system of elections; via new approaches to forming
 electoral bodies to soviets; via the party; via new approaches toward the
 formation of party bodies; to the political process of man; and thereby we
 are overcoming his alienation from politics.  It is just the same in other
 spheres.  The whole idea of perestroyka is aimed at this, at returning man
 as the character, the main character, to the center in our society.
 That's the idea.  As for development, how our economic life is going to
 develop on the basis of adopted laws, then I think that one can forecast
 to a certain extent.  Of course, state property will play a decisive role
 in our society for a long time.  I think that is not in doubt.  Another
 matter is that this property also needs to be used in introducing new
 mechanisms of management, and in order to stimulate man, so that he takes
 on more responsibility and gives better--results,-d-i-splays-t-lat-ive,-
 enterprise, beginning (?both) at the level of enterprises and
 lover-ranking collectives.  I think we will see... [Gorbachev changes
 thought] We have avoided the concept of private ownership, but there will
 be family ownership, some kind of family labor collective-- that is
 individual labor ownership.
 86   LD3004145890TAKEll
 87   [Excerpts] [Gorbachev continues] I am asked: Are you allowing private
 property owners to emerge?  But first, people in everyday life always say
 that private property owners put up prices -- we'vp always said this about
 private property owners.  That is, even in his subsidiary plot he is doing
 something.
 88   You know, in principle I think we cannot go down the road of exchanging
 state property, people's property and collective property for individual,
 private property.  I am convinced of this; I am convinced that by making
 use of the possibilities laid down in the social and public system that is
 socialism, we can solve everything that worries us, and the problems too.
 And this is a system for the workers.  Private property will lead to
 radical changes in the basis of both the political process and in th
 esphere of power.  For this reason private property obviusly could arise
 with us, and there will be some.  I admit this, even though there are no
 laws, but I have said that at such and such a state it could appear.  Some
 sort of small enterprises, where the large state enterprises won't take
 something on, or the cooperatives won't take it on or the cooperative or
 some private owners will tackle some problem on their own.  But you know,
 this will be a percentage, and not one of decisive importance.  It will,
 as it were, supplement things where large enterprises won't take something
 C00175691
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 on.  We have lots of such gaps and lacunae, and there is a need to satisfy
 these services, to repair, to do some other such thing, some odd jobs.  I
 think that in such a sphere it is possible.       We must proceed further and
 further by way of what we laid down in the law on property, and it seems
 to me that there are great possibilities there.
 89   Why, in my opinion, does comrade Yeltsin enjoy great prestige in the Urals
 and at Uralmash, and does not enjoy prestige among the government?
 90   I was asked this question when I was speaking to Uralmash workers in the
 street.  How I regard him, and my attitude to Boris Nikolayevich Yeltsin.
 Well, my attitude to Boris Nikolayevich Yeltsin has changed.  When the
 need arose in Moscow to tackle the cadre question and the question of the
 first secretary, we took on what we had and the choice fell on Boris
 Nikolayevich Yeltsin.  I must say that I tried to support him.  He gave
 everything he had, passionately.  I wouldn't like to dwell at length on
 this question, but things developed in such a way that in the end the
 situation started to become heated in the town party organization, and
 Boris Nikolayevich started to worry; the party organization started to
 have sharp conversations, there were exchanges of opinion in the framework
 of the Politburo.  The question arouse acutely whenI was on holiday in
 the summer.  He sent a letter, but I said I would return and we would have
 a conversation.  I returned and I said that once we have had the 70th
 anniversary celebrations we'll have a chat.  My aim was to cool passions,
 and, so to say, let comrade Yeltsin continue his work, even though the
 situation really had reached an acute state by then.
 91   Well, Boris Nikolayevich didn't heed my advice and he did as his question.
 We were discussing the anniversary request at the anniversary sitting.  He
 asked his question about the Politbur-o-and-the--Seere--ar-iat.-Mere--about
 the Secretariat, really, and the fact that he wanted to be released.  He
 didn't want to work in that atmosphere.  I don't think the arguments were
 sufficient because, basically, it was a sort of whim, and that's how it
 was seen by the Central Committee at that time.  We published the entire
 conversation in full.  You've read it.  To be frank, I was still convinced
 then that we had to keep him and no doubt you saw my position.
 92   LD3004151290TAKE12
 93   [Excerpts] [Gorbachev continues] I tried to delay the procedure so that he
 could proceed within the framework of party democracy and comradely
 debate, even if it was of a critical nature.  I tried to ask him again how
 he looked upon the comments from the comrades and was he able.  No, he
 said firmly, I ask you to release me.  So that is how the matter rests.
 That, then, is what we came to.  I think that subsequently, even after all
 this, I still insisted that he remain in the Central Committee, that he be
 given a ministerial post, and that he use his experience to carry on with
 his activities.  Well, there are all kinds of turning points in life.  All
 the same, I feel it has not been a success, and, no doubt, those qualities
 manifested even when he was still here; you know his style better than I.
 We took it into account when we were deciding the matter.
 94   But, you know, we thought that the Moscow Party Organization and the
 responsibility would bring him into line and set him to rights.  It didn't
 happen.  Then, I think, he chose what is not the best route.  He embarked,
 so to speak, on a path of confrontation and I would say that what we get
 from him is the full measure of criticism.  And so'  That is the right of
 every member of the Central Committee or deputy.  It is his right.  But it
 seems to me now that the Comrade Yeltsins have got carried away.  I am
 'C00175691
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 familiar with his program and his speeches.      If you read his speeches in
 order, they are like an old and well-worn record, a collection of theses.
 The leadershiop is coming to the end of its time; it has worn itself out;
 it has become cut off from the people, etc.
 95     Well, what can I say?  If you take the critical part of it, there is some
 use in all this, but I cannot agree with the wholesale accusations which
 he makes against the leadership of the country, against the Party and the
 Central Committee.  Everything that he touches on, all these subjects
 require serious political analysis, and this should be done only by
 devoting oneself in a principled, exacting, and critical way.  But the
 dialogue must be conducted responsibly and seriously.
 96    Comrade Yeltsin is speculating on the difficulties. on the dissatisfaction
 which really exists in our country, and indeed the socio-economic tension
 and other tensions are all something that exist.  One can act by drawing
 lessons from this and turning the cause, the country, the Party toward
 solving the question.  And one can act by simply speculating on it from
 demagogic positions.  I think Boris Nikolayevich has become carried away;
 Yeltsin has got carried away and he just cannot get down and away from
 this destructive position, you understand.
 97    Perhaps as I am in Sverdlovsk, since you ask me, I have said it more or
 less extensively, so to speak.  I have never generally been drawn into
 these discussions.  I consider them on the whole unnecessary.  We need to
 do the job and not to become engaged in populist slogans and promises.
 You know, from what is being said by comrade Yeltsin and others, I could
 in every case show how much of it is unfounded and contrived.
 98    Well, perhaps I should answer the Sverdlovsk people since much has been
 said no doubt to you also by comrade -Ye-ltsi-n-abo             s, No_doubt___ -
 this question is of interest to those in the hall and those outside the
 hall who are listening to our conversation, and Sverdlovsk people overall
 want to receive my answer on this account.
 99    I have already said in my conversation with the Uralmash people: This is
 my point of view.  We nmust get within sight of there being no unlawfully
 [Gorbachev corrects himself] no privileges, of there being one privilege:
 That a person's toil, talent, position, and merit should be valued, but on
 a legal (?basis) so to speak.  In this connection we have already solved
 much.  I think it has reached your region too and is being dealt with.  In
 the country, overall, much has been tackled so that all kinds of mansions,
 special this, that, and the other -- all this is being transferred the
 whole time.  In many oblasts and republics this process has indeed been
 completed.  In Moscow the practice that took shape is that the country's
 supreme leadership was ensured state dachas.  This practice exists from
 the times of Lenin -- even then.
 100    LD3004154890TAKE13
 101    [Excerpts] [Gorbachev continues] But later on, in the 1930's, this whole
 practice was given legal status, so to speak, by corresponding decisions.
 I will tell you about it.  This was done to set leadership salaries at a
 certain level, to make sure that they would not differ sharply, so to
 speak, from the salaries of workers, officials, and: the intelligentsia.
 The salary of a member of the Politburo was set at R800 [rubles].  A
 secretary -- no, all of them, both members and secretaries of the
 Politburo -- received R800.  But it was possible to order provisions worth
 R400.  And there was a perk.  You could live in an apartment and pay for
 it at a fixed rate.  And there were a number of other concessions.
 C00175691
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 102           We have changed all this, comrades.  We made a decision.  All the dachas
 have been handed over.  We made the decision three years ago.  We handed
 over all the dachas either to veterans, children, or for medical purposes,
 or turned them into holiday homes.  And this process is still in progress.
 The Supreme Soviet must now tackle and discuss this problem, as is done in
 all states.  As far as the top two or three people are concerned, the
 Supreme Soviet must make an official decision on what level of salary to
 set and whether they are allowed a residence or not.  So that people know,
 all this must be published.  It's as simple as that.  The main criterion
 is that everything should be assessed in terms of salary, and from there
 on one lives as the rest of the country lives.
 103  That is the path we are taking.  It is not all that simple.  We have now
 got as far as personal pensions and what we should do about them, and
 personal transport.  It might seem straightforward.  It might seem
 straightforward, simple.  But when you delve into the issue, you find that
 it is not so simple after all.  So, we want to sort out all these
 questions.  What do we do about a director or the chairman of a collective
 farm?  Bow will we solve these questions?  If we had the same sort of
 maintenance base as in civilized states, we could probably solve this
 question quickly.  If we had technical servicing centers and so on, we
 could do it.  But we don't have these things.  Eventually we will have
 both these machines and directors sitting in ravines or some other places.
 This all needs to be thought through.
 104  I shall tell you directly.  We are determined to enforce strict order in
 these things, strict party order.  The state must decide who is entitled
 to what.  What should be its first concern?  Particularly deserving
 people, which categories of veterans and invalids,_families_-_-.families
 with many children?  In other words, what privileges are they entitled to?
 105  We have to-have a look and decide. And I think comrades, that even during
 these six months we shall finish off this work.  It turned out not to be
 easy.  But the main criterion is to evaluate the contribution of every
 person via their salary: the worker, the peasant, the professional, the
 scientist, the creative actor, the state employee.  Talents in all spheres
 must be valued, comrades.  Talents must be valued.  We are all great
 specialists in redistribution.  We must now put more stress on becoming
 even greater specialists in production.  More, better skilled, of better
 quality, and so on.  Then possibilities will open up for us by stimulating
 talent and. productivity and conscientiousness to emerge into a market
 where we can realize our rubles and move toward a normal life.  Everything
 stems from the fact that a lot of things have not been solved in the
 social sphere.  All of this is a lot.
 106   LD3004161690TAKE14
 107   [Excerpts] [Gorbachev continues] So that's how it is.  There was another
 question asked, that somewhere Gorbachev has a bank account in
 Switzerland.  It's royalties or something.  Boris Nikolayevich [yeltsin]
 too.  [passage indistinct].  My royalties -- he is perfectly well aware of
 where my party royalties go: all go into the party purses.  Of course
 there is no bank account.  What a stupid thing to say.  It is even
 humiliating to answer this.  It's simply shameful when people lower
 themselves to such a petty level, to such narrowmindedness, using
 everything for political aims and nothing further.
 108  There are many questions.  They have to be tackled.  The critical
 questions that are raised demand to be solved.  Those dealing with cadres,
 C00175691
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 and so on.  And yet, comrades, we must act responsibly and seriously, and
 I will tell you the main thing clearly: We must finally prove in Russia,
 this huge country, that socialism can carry out profound changes in the
 framework of democracy and legality.  Everything must be done to avoid
 confrontation, and civil war even more so.  This group of three or four,
 or whoever you like.  [sentence as heard] The law must reign supreme in
 our society.   This is the main thing.  There's incitement again, there is
 another witchhunt you see; they are looking out for the enemy; another
 step and there he is, the enemy of the people; let's drag him by his feet.
 What is this?  The fate-of Russia?  The fate of socialism?  We imagine
 that we must ennoble ourselves in this area, in this way?  That's to say,
 we are marching toward democratic, humane-socialism by way of lawlessness,
 by way of witchhunts again?
 109  What is that?  No, I believe that we in our country should do everything
 in a good way, in a good way.  Patience and restraint are required.
 Therefore, I am aware of the remarks comrades have made.  Many say:
 Mikhail Sergeyevich, give something else!  Dear comrades, we are expanding
 the democratic process of building a state based on law, so that the
 people themselves, through democratic processes and sessions, through
 certain processes and democratic reforms within the party itself,
 everywhere, in the economy, so that the people solve questions.  With all
 this bang, strike, disperse, catch, we will not be able to break this
 vicious circle.  We must become a civilized country.  Our peoples deserve
 better, having suffered so much and having done so much in history for the
 whole world, because without our socialist contribution, the world would
 have been different, totally different.  And if perestroyka wins today,
 the world will be totally different,--Wild    loses T-think_we_will   t__
 lose, comrades.  I think painful and less painful ways are possible here.
 The people cannot return to the old life, nor can their mouths be gagged.
 The breath of freedom that it has received, the oxygen that our society
 gets as a result of democratization and openness are what our people need.
 Man had been reduced to nothing.  We could no longer continue in such a
 state.
 110  Not everything works out the way one wishes it to, not everything.  Faults
 have been committed and we are upset because of that.  Do not think that
 we are people without feelings, so to speak, no, on the contrary, I think,
 we have so many feelings that sometimes this prevents us from showing
 decisiveness and firmness.  This seems to be in evidence.  But our people
 have suffered to much to put them through the mill again now.  The task of
 tasks is to feel these ways and continue along them.  I hope, dear
 Uralmash workers, that you will maintain your reputation and strong
 character.  The country cannot live without you, nor can you live without
 the country.  And let us part in this spirit of mutual understanding.  I
 wish you great success.  We will monitor and help the Uralmash.
 [applause] (endall) 261500                     30/1704z apr
 111    LD3004162190TAKE15

