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strong on its own feet.
Zhou Enlai says that they are beginning lery pieces.

. Zhou Enlai informs that they would like to understand this and are organizing main- Zhou Enlai repeats his request for assisto receive an additional 800 specialists from tenance and assembly plants. He adds that if tance with artillery. Emphasizes that for Soviet Union.

comrade Stalin finds it necessary to hasten every Chinese shell fired, the Americans Stalin says that this request will be ex- the process, then they will take all appropri- answer with 9 shells of their own. amined and that we will try to send as many ate measures to comply.

Stalin. That's bad. Adds that if the as we can.

Stalin asks whether divisions of some Americans are firing 9 shells, the Chinese Zhou Enlai asks also for assistance with sort have been organized in order to receive should be firing 20. We smothered the technical documentation (blueprints, etc.). the shipment of weapons for 60 divisions Germans with artillery. We had a gun staStalin answers that this is, indeed, nec- which Soviet Union sent to China.

tioned every 2 meters, while the Germans essary.

Zhou Enlai explains that out of the 10 had a gun every kilometer. Artillery is Zhou Enlai asks if it will be possible to divisions' worth of armaments that China important stuff. The Chinese government continue to educate students in the USSR has received, 3 have been given over to needs to get the munitions production going. and to send interns to Soviet enterprises. Korea and 7 have been earmarked for Chi- We will help you build these factories. Stalin expresses agreement. nese detachments in Korea.

Zhou Enlai points out that they are reorZhou Enlai touches on the question of Stalin asks if he understands correctly ganizing existing factories and are planning the military five year plan. Informs that that all of the weapons will go to the Korean new factories. materials are under preparation and that a front.

Stalin. That is necessary. Machine written report will be presented. Also wishes Zhou Enlai affirms that it will be so, tools are of utmost importance here. to receive military equipment.

assuming that the war will continue. In- Zhou Enlai says that they have machine Stalin asks what Zhou Enlai has in mind: forms that, out of the total of 60 divisions' tools, but old ones. shipments of weapons or equipment for mili- armaments, the Chinese government is in- Stalin says that machine tools are essentary factories.

tent on sending 3 to Korea, preparing 42 tial in the production of ammunition for Zhou Enlai says that he meant ship- divisions [of Chinese soldiers] to serve in 122mm, three-inch and anti-aircraft guns. ments of weapons. Noting that since agree- Korea .... [ellipsis in original]

We can help in this matter. Adds that it is not ment has already been expressed with regard Stalin asks whether the Chinese have necessary to build large factories. We build to weapons for 60 divisions, he would like to gotten used to the new weapons.

ammunition in different plants: one plant discuss shipments for naval forces. Asks Zhou Enlai explains that they are gradu- makes shell casings while another loads what sort of assistance could be received in ally becoming proficient with the new weap

them. It's difficult to do everything in one the way of airplanes. ons, with 3-4 months of training.

factory. Stalin asks whether the Chinese gov- Stalin. Under these circumstances we Zhou Enlai announces that the Chinese ernment is thinking of building aero-manu- operate in a way so as to allow soldiers to

government will act upon the advice of the facturing plants.

become familiar with the weapons and the Soviet government regarding its aviation Zhou Enlai says that this would be very overall organization of the division. This industry and take all measures to further its difficult to do in the course of the first five takes time - approximately 6 months. With- development. year plan, particularly with regard to jet out it one could lose the weapons. Besides, Stalin emphasizes the importance of airplanes. Notes that such construction is during this time we inspect the operation of

during this time we inspect the operation of first organizing assembly plants. not planned to begin until at least 5 years various mechanisms, and only then do we Zhou Enlai says that the Chinese govfrom now, and motor-building - in 3 years. send these units to the front. Of course this ernment plans to build tank-producing fac

Stalin points to the example of Czecho- preparation could be carried out behind the tories: one for light tanks with an output of 1 slovakia and Poland, which began with as- front, in Korea, for example. Half of the thousand tanks per year, and another for sembly plants. Says that the USSR could divisions receiving the new weapons should medium tanks, to be completed in 4-5 years. send China motors and other airplane parts, remain in China.

Stalin advises to start here with assemand China could organize the assembly of Zhou Enlai notes that the shipment of bly plans as well, pointing out that during the these airplanes. Cadres can be trained in this divisions to Korea results in losses, which war we converted automobile factories to way. We went through the same process. must be made up.

produce tanks. Says that it would be good Such a process would be more beneficial for Stalin emphasizes that it is imperative for China to have 1-2 auto assembly plants. Chinese comrades as well. First you must to train the divisions, so as to make them Zhou Enlai says that they plan to build build 1-2 factories for motor assembly. We stronger.

a factory in Changchun with an output of 20 will send motors and other airplane parts Zhou Enlai raises the question of assis- thousand cars and are organizing an assemwhich would then be assembled in China. tance with artillery.

bly plant with an output of 3 thousand cars a That's how it was done in Poland, Czecho- Stalin asks whether China can produce year. Asks for assistance in the planning of slovakia, and Hungary. This ought to be ammunition.

yet another factory. organized. Having organized assembly Zhou Enlai answers that they have not Stalin emphasizes that cadres must replants, you could then, in another 3 years, yet addressed this question.

ceive training in assembly and maintenance build an airplane factory. That is the easiest Stalin notes that, all in all, it is more factories. This issue must be addressed. and the best way.

difficult to transport ammunition than artil- Zhou Enlai agrees completely with this observation and notes that the Chinese gov- would be a burden for the Soviet Union. defiance of all international laws. Under ernment is addressing this matter. They Stalin points out that this is because we international law the warring sides are oblihave maintenance factories and are cur- came to power earlier, that we were lucky. If gated to return all POWs, except those conrently working to organize assembly plants; the Chinese comrades had come to power victed of crimes. What does Mao Zedong these plants will open next year.

before us, then we would have had to ask the think regarding this matter: will he give in or Stalin inquires whether China has same of them.

will he hold his own? worker education schools in their factories. To this Zhou Enlai responds that Mos- Zhou Enlai briefly relates the differAdds that we have such a school in every cow is the center from which all nations ences that separate them and the [North] factory.

derive inspiration for their struggle for lib- Korean comrades in this matter. America Zhou Enlai admits that this is one of the eration.

has agreed to return 83 thousand POWs, and weaker spots. They are taking measures to He goes on to give a short account of the (North) Korea was ready to accept the offer. rectify the situation. There are courses situation in Korea. He points out that up until However, they have not considered the crafty given in factories. They are trying to attract May 1951 the war in Korea was not static, but game that America is playing here - out of students and are selecting party members to was a war of movement. Since May 1951, a the 83 thousand, only 6400 are Chinese, and teach.

front has been established, and the war has the rest Koreans. In truth, they are supposed Stalin points out that we have a special become static. Both sides are about equal in to return another 13,600 Chinese volunteers, ministry, the Ministry of Labor Resources. strength. The enemy is in no position to carry but the Americans don't want to do this, There are vocational schools. It would be out an offensive. There is a certain equilib- though they are quite willing to return 76 good for China to establish something of the rium. But we are not carrying out large thousand Koreans. This clearly shows that sort. Every year these schools graduate offensives, either. Like the enemy which has they are out to provoke us, by trying to drive around 1 mln. young workers.

reinforced its position 15-20 km. deep, so a wedge between China and (North) Korea. Zhou Enlai asks, what sort of institu- have we created our own fortified zone, and Stalin asks how many Korean POWs tions does Soviet Union have to train middle continue to dig even now. The enemy has not

are there. management cadres[?]

been able to destroy our fortifications. The Zhou Enlai answers - 96,600. EmphaStalin explains that there are special front line extends for about 200 km and is sizes that the question of the number of technical schools for this purpose.

completely fortified, as are the left and right Chinese and Korean POWs supposed to be Zhou Enlai says that he would like to flanks.

returned is a matter of principle. Informs discuss the question of radar.

Mao Zedong has put forth three ques- that the Chinese government is firmly comStalin promises to assist in this matter. tions. First - will we be able to repulse the mitted on having all 116 thous. POWs, inRadio and radar are very important. enemy? We are convinced that we will. cluding 20 thous. Chinese, returned. But if

Zhou Enlai says that they were thinking Second - will we be able to hold our present Americans were to agree on returning a few of building assembly plants for this pur- positions? This year has shown that we will less, then we would not strongly object, if pose. be able to hold and strengthen our positions. (they) promised that negotiations for the

] Stalin emphasizes that subsequently Third will we be able to carry out an return of the other POWs will continue. they should build radar equipment manu- offensive, to attack the enemy? Earlier we Stalin affirms that this is the right posifacturing plants.

thought that we would hardly be able to carry tion. Zhou Enlai says that so far they are not out an offensive for more than 7 days. Now Zhou Enlai informs that Mao Zedong, capable of producing radar equipment. we are sufficiently strong to launch longer having analyzed the current situation reStalin promises to help.

offensives and have entrenched ourselves garding this matter, believes that one should Zhou Enlai returns to the question of well enough to withstand bombing raids. stand firmly committed on the return of all specialists. Says that the Chinese govern- Stalin asks whether they are capable of POWs. The (North) Koreans believe that ment does not intend merely to ask us for widening the scope of the offensives. the continuation of the war is not advantahelp with specialists but also plans to pre- Zhou Enlai explains that they can launch geous because the daily losses are greater pare its own specialists.

offensives to capture isolated positions, but a than the number of POWs whose return is Stalin approves of this, pointing out general offensive would be difficult to carry being discussed. But ending the war would that, in time, other countries will ask China out. Since the war acquired its static nature, not be advantageous to the USA. Mao for specialists: India, Burma, Indo-China. the American command has been intent on Zedong believes that the continuation of the Adds that it would be wiser for the Chinese drawing out the negotiations and is not inter- war is advantageous to us, since it detracts government to send engineers and techni- ested in signing a truce.

USA from preparing for a new world war. cians to Soviet factories, where they could Stalin says that apparently the Ameri- Stalin. Mao Zedong is right. This war hone their skills.

cans want to keep more Chinese POWs. That is getting on America's nerves. The North Zhou Enlai raises the question of de- would explain their refusal to return POWs. Koreans have lost nothing, except for casufraying the costs that China bears from the Perhaps they turned them over to Jiang Jieshi. alties that they suffered during the war. trade imbalance between the two countries. Zhou Enlai affirms that there are agents Americans understand that this war is not Says that the Chinese government would of Jiang Jieshi among the POWs.

advantageous and they will have to end it, like to ask for a new loan. However, ob- Stalin observes that Americans want to especially after it becomes clear that our serves Zhou Enlai, we understand that this decide the POW question on their own, in troops

will remain in China. Endurance and

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patience is needed here. Of course, one Every American soldier is a speculator, oc- fire. On the POW question (he) enumerates needs to understand Korea - they have suf- cupied with buying and selling. Germans three positions. First - announce from the fered many casualties. But they need to be conquered France in 20 days. It's been beginning that they will hold back the same explained that this is an important matter. already two years, and USA has still not percentage of South Korean and American They need patience and lots of endurance. subdued little Korea. What kind of strength POWs as the percentage of North Koreans The war in Korea has shown America's is that? America's primary weapons, says and Chinese held back by America, and weakness. The armies of 24 countries can- comrade Stalin jokingly, are stockings, ciga- leave it at that. Second - resort to mediation not continue the war in Korea for long, since rettes, and other merchandise. They want to by a neutral country. Third - sign an armithey have not achieved their goals and can- subjugate the world, yet they cannot subdue stice agreement by putting off the POW not count on success in this matter. Koreans little Korea. No, Americans don't know question and resuming its discussion afterneed our help and support.

how to fight. After the Korean war, in wards. Asks about the bread situation in Korea. particular, they have lost the capability to Then Zhou Enlai returned to the quesSays that we can help them.

wage a large-scale war. They are pinning tion of military assistance and put forth the Zhou Enlai says that Korea is having their hopes on the atom bomb and air power. Korean comrades' request for 10 anti-airdifficulties in this regard. The Chinese gov- But one cannot win a war with that. One craft gun regiments. We told the Koreans ernment knows that USSR has helped Ko- needs infantry, and they don't have much that we don't have such capabilities, but that rea. Says that they have also helped Korea infantry; the infantry they do have is weak. we would bring this up with the Soviet and have told Kim Il Sung that this is not an They are fighting with little Korea, and al- government. obstacle, that they will give them foodstuffs ready people are weeping in the USA. What Stalin. Kim Il Sung asked as for 5 and clothing and everything they ask for, but will happen if they start a large-scale war? regiments. We promised to send him these.

that they cannot give weapons.

Then, perhaps, everyone will weep. Perhaps China will also give 5 regiments? Stalin says that we can give Korea addi- Zhou Enlai states that if America makes Zhou Enlai repeats that they do not have tional weapons. We will begrudge nothing some sort of compromises, even if they are such capabilities and that this is new to them. to Korea.

small, then they should accept. If America Stalin says that this question needs to be Zhou Enlai repeats that they cannot does not agree to return all POWs and pro- cleared up with Kim Il Sung. yield to the Americans during the negotia- poses a smaller number, then they should As for Zhou Enlai's request to send 10 tions.

accept the offer, under the condition that the regiments, irrespective of those promised Stalin observes that if the Americans question of the remaining POWs will be earlier, comrade Stalin answers that it will back down a little, then you can accept, resolved under mediation by some neutral have to be examined. assuming that negotiations will continue on country, like India, or the remaining POWs Zhou Enlai brings up the Korean comquestions still unresolved.

transferred to this neutral country until the rades' request for advice on whether they Zhou Enlai agrees, adding that if the question is resolved.

should start bombing South Korea. They are Americans don't want peace, then we must Stalin asks how many American POWs not sure whether it's the right way to go. be prepared to continue the war, even if it there are.

Stalin explains that the air force belongs were to take another year.

Zhou Enlai explains that the overall to the state and that Chinese volunteers should Stalin affirms that this is correct. number of POWs in North Korean and Chi- not use state planes.

Zhou Enlai emphasizes the truth of com- nese hands is 12,000, out of which 7,400 are Zhou Enlai informs that the Korean rade Stalin's observations, namely that this South Koreans.

comrades have asked about launching a new war is getting on America's nerves and that Stalin does not exclude such a resolu- offensive, to which the Chinese government the USA is not ready for the world war. tion to the question, as proposed by Zhou replied that they cannot carry out a strategic

a Adds that China, by playing the vanguard Enlai. On his part, (he) proposes that they offensive. role in this war, is helping to stave off the war could announce to the Americans that if they Stalin points out that when armistice for 15-20 years, assuming that they will are holding back a certain percentage of negotiations are taking place, they should succeed in containing the American offen- Korean and Chinese POWs, then North Korea not be launching either strategic or tactical sive in Korea. Then the USA will not be able and China will hold back the same percent- offensives. They shouldn't be launching to unleash a third world war at all.

age of South Korean and American POWs any offensives. Stalin says that this is true, but with one until a final solution to the POW question is Zhou Enlai asks, referring to Mao stipulation: Americans are not capable of agreed upon. This needs to be tried as a way Zedong's question whether Kim Il Sung and

: waging a large-scale war at all, especially of pressuring Americans by publicizing it in (Chinese military commander] Peng Dehuai after the Korean war. All of their strength the press. If America rejects this offer, then should be invited to Moscow. lies in air power and the atom bomb. Britain it should be declared that they apparently Stalin. I would happily talk to them, but won't fight for America. America cannot want to send Chinese POWs to Jiang Jieshi. they are far away. Besides, we are not very defeat little Korea. One must be firm when If these proposals are unsuccessful, then you comfortable with inviting them. If they were dealing with America. The Chinese com- can resort to mediation. The main thing here to bring up the question, then we would rades must know that if America does not is to propose a ceasefire.

happily welcome them here. lose this war, then China will never recap- Zhou Enlai declares that, indeed, an Zhou Enlai informs that Peng Dehuai ture Taiwan. Americans are merchants. armistice agreement also involves a cease- would very much like to come, though he is Stalin agrees.

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unsure of what Kim Il Sung thinks. Perhaps Transcribed by

PRC five year plan does not. In addition, it it would be good to speak to them about this.

A.Vyshinskii (signature] is necessary to have the complete picture of

N.Fedorenko (signature] all expenditures provided by the plan. Zhou Enlai repeats that the Chinese

We must know how much is required government believes that it is wise to con- [Source: APRF, f. 45, op. 1, d. 329, II. 54- from us on a paragraph by paragraph basis. tinue the negotiations in Panmunjom. But 72; translation by Danny Rozas. ]

It is necessary to do the calculations. The China is preparing for the possibility of

given documents do not contain such data. another 2-3 years of war. Again asks for

Hence we cannot give our final answer. We assistance with aviation, artillery, and am

need at least two months in order to do the munition, as China cannot deal with these IV: Conversation between Stalin and calculations and tell you what we can promatters on its own.

Zhou Enlai, 3 September 1952 Stalin announces that everything we

Usually it takes us at least a year to can give you, we will.

RECORD OF MEETING

prepare our five year plan. Then we analyze Asks how is the Korean morale. Is

BETWEEN COMRADES

the prepared draft for another 2 months, and there confusion?

I.V. STALIN AND ZHOU ENLAI still we manage to let mistakes go by. Zhou Enlai explains that, indeed, there

We would like you to give us some two has been much destruction in Korea, espe

3 September 1952

months to study your plan, so that we could cially after the bombing of the electric power

answer your questions. station on the Yalu river. This has had an

How do things stand in other matters? It impact on Korean morale and on their ef

Present: seems that the question of Port Arthur has forts to accelerate the struggle to achieve

been examined. In that case we need to make peace.

on the Soviet side a decision. If there are any sort of objections Stalin says that the American strategy comrs. Molotov, Malenkov, Bulganin, then they should be discussed right now. is fright. But they have not frightened

Beria, Mikoyan, Kaganovich, In addition, it seems that there are also China. Could it be said that they have also

Vyshinskii, and Kumykin. no objections to the draft communiqué on failed to frighten Korea?

the transfer of KChZhD. Zhou Enlai affirms that one could es

on the Chinese side The third question concerns hevea (rubsentially say that.

comrs. Chen Yun, Li Fuchun, ber) trees. We would like to receive from Stalin. If that is true, then it's not too

Zhang Wentian, and Su Yu you 15 to 20 thousand tons of caoutchouc bad.

(natural rubber) each year. You, it seems, Zhou Enlai adds that Korea is wavering

translated by object, citing difficulties. The fact is that we somewhat. They are in a slightly unsteady

comrs. Fedorenko and Shi Zhe. have a tremendous need for caoutchouc, state. Among certain elements of the Ko

since automobiles and trucks, which are also rean leadership one can detect a state of After an exchange of greetings the dis- being sent to you, require large amounts of panic, even.

cussion began with the question of the five rubber. We would like to receive at least 10Stalin reminds that he has been already year plan of the People's Republic of China. 15 thousand tons of caoutchouc. We have informed of these feelings through Kim Il Stalin. We have familiarized ourselves not much opportunity to buy caoutchouc, Sung's telegram to Mao Zedong.

with your five year plan for construction. since Britain keeps it to itself. We ask you to Zhou Enlai confirms this.

You are setting the yearly growth at 20%. Is reexamine the question of purchasing for us Asks how should the Chinese delega- not the setting of yearly industrial growth at the necessary amount of caoutchouc. tion proceed further.

20% strained, or does the 20% provide for If all these questions get resolved, then Stalin proposes to start work immedi- some reserve margin?

the remaining can be decided with other ately. Informs that Soviet Union has as- Zhou Enlai draws attention to the fact delegation members, as it seems that Zhou signed a commission under the chairman- that they do not yet have sufficient experi- Enlai is hastening to return. ship of comrade Molotov and consisting of ence in such planning. The experiences of Zhou Enlai says that it's difficult for comrs. Bulganin, Mikoyan, Vyshinskii and

three years has shown that the PRC him to remain here for two months, that he Kumykin, and that the Chinese delegation is underestimating its capabilities. The fea- would like to return to China in mid-Sepcan speak to Molotov about when to start sibility of the plan will depend on the efforts tember. (Vice chairman of the Northeast work.

of the Chinese people and on the assistance (China) People's Government] Li Fuchun Zhou Enlai expresses thanks for the that China is counting on receiving from the can remain here. information and asks comrade Stalin to name USSR.

Stalin. Fine. the time when he can brief comrade Stalin Stalin. We draft the five year plan with There still remains the question of conon the internal situation in the PRC. a reserve margin, as it is impossible to take structing the new Ulan-Bator-Pinditsiuan

Stalin agrees to see Zhou Enlai as soon into account every instance. There are vari- railroad. The Mongolian Premier, who was as he receives a finished version of the ous reasons that may affect the plan in one just here in Moscow, has given his approval. written report.

direction or another. We always include the In other words, four questions remain to civil and military industries in the plan. The be decided by Zhou Enlai: Port Arthur,

the past

KCHZhD, caoutchouc, and the construction The publication of the plans is essential, if previous arrangement remain in force? of the new Ulan-Bator-Pinditsiuan railroad. the people are to comprehend the scope of Stalin. Everything which we have

Zhou Enlai referring to the hevea ques- development. There must be numbers. It is agreed to - military and naval-military shiption, says that they will take all measures in not advisable to limit oneself by publishing ments - will remain in force. But this must order to provide USSR with 15-20 thousand solely its general trends. There are people be taken into account when determining the tons a year, but they are apprehensive that who want to know and behold the entire total number of shipments. We are not the blockade and other measures directed scope of development as specified in the five repealing any loans nor rescinding any agreeagainst China by its enemies may prevent it year plan. That's why it is necessary to ments. In general, we find it unconscionable from fulfilling this commitment in full. The provide for military production in this plan, to run from the responsibilities that one has delegation is apprehensive that this may be though without naming military enterprises taken upon himself. Once an agreement has seen as a breach of its commitments to the and such. It will be better thus. There must been signed, it is imperative to abide by it, Soviet Union.

be a single, unitary plan that includes both and we will abide by it. (He) repeats that they will take all mea- civil and military development.

Zhou Enlai says that comr. Mao Zedong sures to fulfill this commitment, but would As far as the USSR is concerned, we, as has entrusted him to present the general like to reserve the right to explain the rea- the provider, must also know in what capac- outline of the five year plan and to ascertain sons and not be held in breach of its commit- ity and what type of assistance will be re- how much will have to be ordered from the ments, if in extraordinary cases the shipment quired of us. There is but one source - the Soviet Union for the civilian and military falls short of what was promised.

USSR. But we need a reckoning for both the industries. They project 7,700 mln. rubles Stalin says that he understands this. We civil and military sectors. We must know for the civilian industry, and 4,500 mln. can soften the wording in the agreement, by and calculate every portion of the entire rubles for the military. Mao Zedong asked to saying that China will strive in every pos- sum.

ascertain if this is a suitable ratio, if the sible way to realize the shipments of the Let's say that in 1953 we provide weap- military portion is not too great. stated amount. But if it is unable to deliver ons for 10-15 divisions. We need to know Stalin. This is a very unbalanced ratio. caoutchouc in the amount stipulated, then how much steel and other materials will be Even during wartime we didn't have such we will have to decrease the number of needed to fulfill this order. During that same high military expenses. trucks ordered.

year 1953 we must supply a certain amount Zhou Enlai says that the 4,500 mln. Asks jokingly whether President Ho of equipment for the civil sector. This must rubles earmarked for military orders are Chi Minh might not be able to help in this also be calculated. Then both sums, the composed of the following: weapons for 60 matter.

civilian and the military, must be combined divisions - 985 mln. rbls., military-naval Zhou Enlai notes that China has many to determine whether we will be able to shipments -2,126 mln. rbls., aviation - 1,200 options in this regard (mostly through con- supply the entire amount. This is how a plan mln. rbls., and others. traband).

must be drafted for each and every year. Emphasizes that under normal condi(He) returns to the question of the con- Perhaps our Chinese comrades believe that tions the ratio between the military and civilstruction of the new railroad. Notes that here all these weapons are lying around some- ian sectors is not so unbalanced. The miliare no objections.

where in a warehouse. No, they must be tary portion is smaller. Stalin notes that they can make public produced.

Stalin. During wartime our military proannouncements on Port Arthur and KCHZhD, Zhou Enlai completely agrees with ev- duction constituted about 40-45%, but China but not on hevea, and only make announce- erything laid out by comrade Stalin, and will doesn't have a real war on its hands. Howments on the Ulan-Bator-Pinditsiuan rail- ascertain how the matter of the (weapons ever, shipments for the air and naval forces road once it has been completed.

shipments for] 60 divisions will rest. If they are necessary. Perhaps Mao Zedong is right Zhou Enlai expresses agreement with will be billed to credit, then that will also about the ratio of 7.7 bln. rbls. to 4.5 bln.rbls. this and returns to the question of the five have to be specified.

Zhou Enlai informs that in 1950 exyear plan. Again emphasizes that they are Comr. Mao Zedong had an idea - if the penses for the military constituted 44% of underestimating their capabilities. He agrees war in Korea were to continue for another the entire budget (4.2 bln. rbls.), in 1951 that it is difficult to perceive the five year year or two, then would it be possible to 52% (8 bln. rbls.), in 1952 - 27.9% (6.6 bln. plan as a general picture, as it does not extend the duration of shipments for 20 rbls.). Says that, according to the five year include the military, since they are having divisions to next year?

plan, investments in the military industry difficulties with military planning. Overall, Stalin says that right now it's difficult to (munitions arsenals, aviation, tank producthey are unsure whether to include the mili- say. Perhaps it will have to be shortened, tion, military shipbuilding) constitute 12tary in the general plan. As for publishing perhaps not. It needs to be calculated. The 13% of all industrial investments. If comthe five year plan, they were not intent on calculation will tell us. Nothing here can be rade Stalin believes that such a ratio is acpublishing the plan itself, only its general determined beforehand.

ceptable, then they will use that as the basis trends.

Zhou Enlai turns to the question of when drafting their general requisitions list. Stalin explains that our five year plans naval-military shipments. Asks whether Stalin. Good. It is acceptable. are published and that we include incognito these need to be included in the plan or not. Zhou Enlai says that at first they proarticles dealing with military technology Roughly speaking these shipments need to jected constructing 151 industrial enterprises, production, chemical and other industries. be delivered over the next six years. Will the but now they have dropped this number to

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