Daring, Daring, Once Again Daring

Political Report to the First Plenary Session of the Central Committee of the Communist Party of Indonesia, 10 February 1963

D.N. Aidit (1963)

Source: Problems of the Indonesia Revolution, D.N. Aidit. Published by DEMOS - 1963

Transcribed to HTML by Ted Sprague (July 2011)

This first Plenary Session of the Central Committee is being held 10 months after the Seventh (Extraordinary) National Congress which took place in April, 1962. That historic Congress clarified all the ideological, political and organizational questions that needed to be clarified at that time. Since there was complete unanimity of thought on all these questions, our Party has been able during this past 10 months -- as it will also be able to do in the coming period -- to stride forward, to swing its arms and fists. As was the wish of that Congress, our Party is really and truly united in thought, in heart and in objective in unfurling the Triple Banner of the Nation, i.e. Democracy, Unity and Mobilization, in continuing to build the Party and in fulfilling all its national and international tasks.

The unity of thought in the ranks of the Communists and the people played a very great positive role in the upswing of the people's struggle in face of the possibility of a war with the Dutch colonialists over the Question of West Irian, in face of the mass mobilization for the restoration of security, and in preventing total bankruptcy in the economy as a result of the destructive role of the bureaucrat-capitalists. Whilst raising high the Triple Banner of the Nation, we have also struggled and will continue to struggle with the unanimous resolve: a rifle in one hand and a spade in the other, in other words, we are always ready to storm the enemies of the revolution and ready, too, to increase production.

Thanks to this correct line and unanimous resolve, the Indonesian people succeeded in executing the Triple Command of the Nation [Triple Command of, the Nation: Issued by President Sukarno on December 19, 1961: 1. Defeat the establishment of a Papua State, 2. Unfurl the Red-and-White flag in West Irian. 3. Be ready for total mobilization.] without having to wage a total war against the Dutch colonialists because the Dutch were compelled to withdraw before entering the arena. Together with that, the counter-revolutionary rebels at home have basically been smashed. All this has been made possible because, within certain limits, the people have succeeded in seizing democracy, they have succeeded in strengthening their unity with NASAKOM as the fulcrum, and within limits have also succeeded in mobilizing the entire national revolutionary potential and in particular mobilizing the patriotic forces within the Armed Forces with the complete assistance of the people, they have succeeded in drawing upon the assistance of the Socialist countries and of the other new forces that are now emerging in the world.

There is not a single power in the world that can halt the masses when they have risen up. It will not only bring to completion the struggle for the liberation of West Irian and for the restoration of security but it will continue forward sweeping aside everything that stands in the way of the people's revolutionary movement such as the state of emergency, the bureaucrat-capitalists, the compradors and the landlords, in short the anti-Manipolists and those who are against national gotong-royong with NASAKOM as the fulcrum.

Today, three practical tasks stand before us: 1. consolidate the victories that have already keen scared; 2. tackle the economic difficulties, and 3, oppose neo-colonialism.

We can only carry out this domestic Triple Task well if we continue resolutely to unfurl the Triple Banner of the Nation and if the implementation of these tasks is combined with the tasks of building the Party and with the international tasks.

After making ail these tasks clear, the domestic tasks as well as the tasks of building the Party and the international tasks, we must then accompany all this with the daring to think, to speak and to act.

We have declared 1963 to be a "Year of Daring". This is in accord with the call made by President Sukarno that the Indonesian people should live in a spirit of “vivere periceloso”, a spirit of daring to skirt danger. This name "Year of Daring" conforms very closely indeed to what the people want, namely that the foremost ranks of the masses of the millions of people should be more daring in leading them. And this is why we give this Political Report the title,"Daring, Daring, Once Again Daring"-

During the period that has elapsed since the Seventh National Congress, we have lost two deeply beloved comrades, Comrade Subadi and Comrade Sarmidi Utarjo, Let us stand and bow our head to them in respect and gratitude for everything they did for the glory of the people and the Communist Party of Indonesia.


Inspired by the Sixth National Congress. the slogan of which was. "For Democracy and a Gotong-Royong Cabinet",the General Report to the CPI Seventh National Congress stated among other things, that "the outstandingly important domestic political question today is to unfurl the Triple Banner of the Nation, the banner of Democracy, Unity And Mobilisation in order to lead towards consistent democratic changes in the political system and in the field of political freedoms for the people. This means concretely, to lead to: the formation of a Gotong-Royong Cabinet and the lifting of the state of emergency as well as a reconsideration of the Law on the State of Emergency now in force". Up to this present time, that conclusion is still valid because the successes that we have achieved during the past 10 months have not yet exceeded this political task.

The Kerdja Cabinet is now three-and-a-half years old, including the time that has elapsed since the regrouping. Its Programme, known as the Triple Programme, is: 1. supply food-and-clothing for the people; 2. Bring about security far the people and the State; 3. Continue the struggle against economic against economic imperialism and political imperialism (West Irian).

The first point of the programme has not been executed at all. The second point of the programme has been executed in part in connection with the defeat of the RGRI-Permesta and DI-TII counter-revolutionary rebels, but this does not mean that there is already security for the people and the State. The third point of the programme has been implemented in pan in the form of a formal agreement on the transfer of West Irian to the Republic of Indonesia, but this does not mean that the struggle against imperialism in the field of economics and politics, especially in the field of economics has been completed.

President Sukarno correctly named his 17th August, 1962, speech, "A Year of Triumph" because indeed finishing off the question of West Irian and smashing the counter-revolutionary gangs are great victories. This does not mean (hat points 2 arid 3 have been completed. This is why President Sukarno also stressed that what has been achieved is just the beginning of victory.

Indonesia Communists must be thoroughly conscious of the feet that what has been achieved is only the beginning of victory, in fact it would be perhaps more appropriate to call it victory that is stilt precariously perched, victory that is not yet properly grounded. This is so particularly in view of the fact that the food-and-clothing requirements of the people have not yet been met, on the contrary things have become even more difficult, and also in view of the fact that the imperialists and their agents are still free to play their role both in West Irian as wed as in other parts of our Republic,

It is for this reason that we Indonesian Communists, when welcoming the "Tear of Triumph", placed three most urgent, most practical tasks upon our shoulders, namely 1. consolidate the victories that have already been achieved; 2. tackle the economic difficulties; 3. Appose neo-colonialism.

We must implement this Triple Task not as something separated off from the implementation of the General Line of the Party as summed up in the Triple Banner of the Party and not as something separated off from important and decisive tasks that crop up alt along the path of implementing the General line of the Party, namely the tasks summed up in the Triple Banner of the Nation. Not only should these not be separated off, but they must be fully integrated, and for this we have the slogan: "Unfurl the two Triple Banners for implementation of the Triple Task".

The Triple Task is the condensation of all the practical tasks that arise out of the development of the situation at the present time. In order to push forward political developments in our country, Indonesian Communists must thoroughly implement this Triple Task and this is why we need to speak about this at some length.

1. The Task of Consolidating the Victories Already Scored

In the framework of consolidating the great victories that have already been scored, we must not relax for a single moment in consolidating the forces of the Republic in West Irian so that West Irian as quickly as possible becomes part of the sovereign territory of the Republic of Indonesia and so that West Irian does not become a neo-colonial area where the imperialists are free to invest their capital with the result that, when they feel the need at some future time, they can bring in their military forces on the pretext of "safe-guarding their properties there". If this happens, West Irian would once again be a pistol aimed at the heart of the Republic of Indonesia, but this time not the pistol of the already absolute Dutch colonialists but the pistol of the American imperialists, the most aggressive, rapacious and brazen imperialists of all.

It is a very gratifying thing that there has been awakening of our Indonesian brother in West Irian who, at the present stage of the struggle for the liberation of West Irian are actively demanding that the incorporation of the region of West Irian into the sovereign territory of the Republic of Indonesia be speeded up. This is an added force also needed to oppose neo-colonialism there.

In consolidating security,the progressives, and in particular the Indonesian Communists, must regard the question of security as their own question, and for this reason they must work in the best possible co-operation with those responsible for security. The lifting of the state of emergency (SOB) as decreed by President Sukarno on the occasion of the anniversary of the Triple Command of the People, on 19th December, 1962, in Surabaya, is not intended to make us less vigilant in security affairs and to give the chance to the counter-revolutionaries to play their role. On the contrary, the lifting of the state of emergency must further raise our vigilant against the counter-revolutionaries, it must be directed at giving liberties to the people so that they can "dance the kiprah" [the "kiprah' is the dance performed in the wayang play just before going into victorious battle] and roll up their sleeves both in order to raise the level of production as well as to crush the counter-revolutionaries.

The bureaucrat-capitalists and the other reactionaries are doing everything in their power to prepare a series of plans and measures to rob the people of the democracy they will obtain with the lifting of the state of emergency, They have already for a long time been working to create a situation of "SOB without SOB" by means, among others of continuing with one man dictatorship in the name of the "four-in-one" in the regions, by exercising mastery over the villages by appointing their agents there, by setting up bodies that usurp the tasks of the existing civil authorities, and so on, all of which seriously disturbs the operation of civil administration. The rightwing socialists are very busy creating and propagating reactionary concepts for a "SOB without SOB". All this is in conflict with the statement by the First Minister Ing. H. Djuanda in his speech of welcome to the Governor’s' Conference in Solo on 21st January last in which he said among other things that as from 1st May, 1963, the supreme war authority (Peperda's) and the regional war authorities (Peperda's) would officially be dissolved and that as from, that date too, all governmental powers at the centre and in the regions would be fully handed back to the civil government. The Head of District would wield political and policing powers in his region which would mean that the Head of District is responsible within the bounds ofthe laws in force to determine the policies or basic lines to be obeyed by all official and non-official authorities so. as to preserve public law and order in his district.

The entire democratic and patriotic forces must not be confused and beat a retreat; on the contrary they must be daring enough to prevent the attempts aimed at creating a "SOB without SOB". In brief, after the lifting of SOB, what was said by President Sukarno about the "Manipol guiding the rifle" should genuinely and completely be put into practice.

In the understanding that the lifting of the state of emergency is really and truly aimed at freeing revolutionary activities and the creative powers of the people and not at giving free rein to the counter-revolutionaries, our Party considers that there are positive aspects to the establishment of the Councill to Assist the Leadership of the Revolution (Musyawarah Pembantu Pimpinan Revolusi) which includes NASAKOM (not as the fulcrum), to assist President Sukarno in exercising his supreme powers under conditions without SOB in the framework of completing the revolution.

Another great victory that we must consolidate is the organization of the National Front. Despite the fact that we have sometimes been "tripped up" or "had our feet tied" by the state apparatus itself, we have nevertheless, within a period of only two years, succeeded in building up an organization of the National Front throughout the entire country with a membership that covers all parties, all mass organizations which accept the Manipol, and the entire Armed Forces.

This is a very great accomplishment and it is thanks to national gotong-royong with the NASAKOM as the fulcrum under the leadership of Bung Karno. This proves once again that where there is national gotong-royong with NASAKOM as the fulcrum, everything goes well. This does not meanthat a struggle against the hypocrite Manipol-ists is not needed.

After having been unable to foil the National Front, the reactionaries are continuing the attempts to spread chaos by disseminating the idea that the parties should be dissolved and the National Front should become the sole party. In this way, they hope not only to destroy party life but also and in the first place to destroy the National Front itself because they knew very well that it has been possible for the National Front to develop rapidly precisely because of the excellent co-operation between the parties and the mass organizations.

Defence of the National Front cannot be separated from defence of the party system. Uniting in the National Front means uniting to execute a joint programme, the Manipol, and not to merge things that cannot be merged. Regarding this, Bung Karno once said very correctly: "It is not our hope that the Nationalists will change their ideas and become Moslems, nor is it our intention to urge the Marxists and Moslems to change into Nationalists; our dream is harmony, unity between these three groups," (Under the Flag of the Revolution, p.5.)

In his work Towards on Independent Indonesia, Bung Karno writes about the need for a genuine vanguard party and he goes on to explain that "there can be other parties ... not as commanders ... but only as sergeants ... and corporals". Thus it is clear that there is no similarity whatsoever between Bung Karno's ideas and the ideas of Hitler or Mussolini or their followers here in Indonesia, namely to make a reactionary bourgeois party and suppress the Party of the working class. This becomes even clearer if we bear in mind what Bung Karno once wrote, namely: "Our army is indeed the army of the Marhaen, an army which takes much of its personnel from the peasants, but our vanguard is the corps of workers, the corps of the proletarians". (Under the flag of the Revolution, p. 26.)

Thus, there is no taboo against having more than one party and today it is a fact that there are 10 parties in our country, whilst as regarding which of them shall become the vanguard, that is a matter that must be left to the people, dependent upon the absolute devotion of a party to the interests and the struggle of the people and not because of some subjective desire, nor because of it being established by a regulation or law. The Communists are fully conscious that the position of the vanguard in the people's struggle is not something to be got for nothing and it is not something to be got just because, according to the law of history, the working class and its Party must hold the position of leadership; it is something that can only be got as a result of unlimited fidelity with sacrifice and exceptional daring in defending the interests of the people. In the framework of the activities of the reactionaries to split national unity, the phenomenon of neo-Masjumi-ism has emerged in the recent period, that is to say, splitting the Sila of "belief in One God" off from the Pantja Sila and with this one Sila fanning the flames of religious fanaticism. They completely disregard the fact that the essence of the Pantja Sila is the Eka Sila or gotong-royong which embraces revolutionary tolerance between all forces and trends in society.

The National Front has already played an extremely important role and it will continue to do so, and it will become more and more important in the political life of our country. In the execution of the Triple Task, too, the consolidation of the victories already scored, the tackling of economic difficulties and the opposition to neocolonialism, the National Front can play a very great and positive role.

2. The Task of Tackling Economic Difficulties

In discussing the second task, the task of tackling the economic difficulties, it is first of all necessary to describe briefly some aspects of the economic situation in our country. We shall briefly discuss the following: a. State Finances b. Production, c. Foreign Trade, and d. Living Costs of the People.

a. State Finances

The decision of the Madjelis Permusjawaratan Rakjat Sementara (MPRS - Provisional People's Consultative Council, the organ in which is vested supreme people's sovereignty, Tr.) establishes the need for monetary stability as an important factor in facilitating development. Raising production in all fields is the foremost objective at every stage of planned development. The smooth internal circulation of necessities and the question of increasing the standard of living of the people depends upon the stage of development of production. Monetary stability depends upon the development of production, but conversely, difficulties in the financial sphere reacts back by creating havoc with production. This means that it is necessary to have a financial policy that serves production and not to have production being made the victim or being worsened because of an erroneous financial policy, a policy that does not orientate towards production and towards improving the living standards of the people. The President's assistants [In the President Cabinet, where the President has the position of Prime Minister, the Ministers occupy the position of assistants to the President] in the economic financial field have not succeeded in implementing such a financial policy and they have failed to execute the MPRS Decision regarding monetary stability.

President Sukarno is correct to have said that for the struggle for the liberation of West Irian, in implementing the Triple Command of the People, and crushing the RGRI-Permesta and DI-TlI counter-revolutionaries, adequate finances were required and had to be provided. This political task therefore had an influence on the economic and financial situation. But it isalso a fact that economic and financial mismanagement greatly worsened the economic and financial situation which should not have happened and should not have been allowed to happen at a time when the Triple Command was being executed. The Triple Command was misused by the mismanagers in their own interests. In connection with this, it is important to stamp out mismanagement in the economy and finances by consistently implementing the President's "Year of Triumph" speech and the speech on the occasion of the First Anniversary of the Triple Command in Surabaya.

Management of state finances today clearly does not guarantee efficiency with the result that it has not been possible to prevent waste in the utilization of state finances. The results are evident from society. Cases of mis-appropriation of state finance are being reported more and more frequently and undoubtedly there are many more cases that are not reported at all. In addition to waste, mismanagement in the financial field is basically indicated by the following facts:

1. Supervision from above by the competent authorities is not being done as it should. Supervision from below, from the masses, is even less possible, supervision which government officials themselves so frequently talk about as "social control”. Even the creation of apparatus for this, among other things, the Enterprise Councils or the Advisory Councils as part of the democratization of management, is proceeding at snail's pace, to use President Sukarno’s expression.

2. Co-ordination as the essential element in organization of the management of the state finances is not being effected, with the result that it is not possible to realize an allocation of state finances to the development sectors. According to the schedule of priorities that has already been established. The result is that less important sectors take the place of sectors that have been given priority.

3. The Budget of State Revenue and Expenditures, both routine as well as development, have not yet been Manipol-ised. In other words, economic-financial concepts based on the Manipol are not reflected in the Budget of State Revenue and Expenditures. The Manipol and the guide lines for its implementation stipulate that the state sector of the economy must occupy the commanding position, but the present budget has not yet changed in nature from former times when state revenues depended upon direct and indirect revenues, and there is no orientation towards the existing state corporations or towards the productive sector in general. Difficulties in state revenue are being dealt with only from the monetary technical angle and this is confined to the levying of direct and indirect taxes. This is the easiest way to get more money from society but it greatly weighs down upon the living conditions of the people and presses, down-upon the economic development of the state whereas those who make profits from the inflation are not affected at all. Taxation policy does not hold by the principle of "from the people back to the people" but it is even, on occasion, from the people into the pockets of the bureaucrat-capitalists and the "newly rich".

4. The state corporations (the PN's and PON's) which should become the most important source of state revenue are not only not yet performing this task but are still even a financial burden to the state, because of the tremendous amount of credit they use un-productively and because of continuous waste of funds. All this is basically caused by the widespread mismanagement.

The value of the rupiah is declining severely from year to year. The exchange rate of the rupiah against foodstuffs has declined by 76 per cent which leaves only 54 per cent because the price index of foodstuffs in Jakarta alone at the end of November 1962 had risen 420 per cent by comparison with the beginning of January 1961. In view of the fact that the average wage increase was only 30 per cent in the same period, the purchasing power of the people has fallen drastically.

In view of the above, facts regarding monetary affairs, it is necessary to take the following measures of a principal and technical-economic nature in the financial field:

1. State revenue must rely upon the intensity of the existing state corporations, in the productive sector, in transportation as well as in domestic and foreign trade (the PN's and the PDN's). State receipts must be raised by increasing the operational capacity or by a rise in the level of production through a retooling (overhaul) of personnel and organization in management. That, is to say receipts should not be increased by means of raising prices and rates.

2. Receipts from direct and indirect taxes should be realized not by means of raising the rate of taxation but by means of healthy economic development. The levying of taxes from the trade sector must be achieved through raising the volume of trade or the trade turnover. Additions to company tax receipts should be achieved by means of raising the level of production or raising the operational capacity. Taxes or other levies that weigh heavily upon the people such as extra profits, price components and the like must be abolished or the rates reduced.

3. New sources of revenue must be opened up by exploiting or processing natural resources that can give returns after a short period, for example, at the most after one year of expenditure. Examples of this are sea-fishing, forestry, the production of corn, tobacco and other items.

4. The foreign exchange earnings obtained by the foreign oil companies (Stanvac, Caltex and Shell) should be placed under State control so that it will be possible to cover the shortage of foreign exchange. In other words, the oil companies should be treated in the same way as the foreign companies in the estate, industrial and other sectors which are not permitted to keep control of their foreign exchange earnings themselves, with the exception of that which is allocated by the Government for transfer of profit, services and the like.

5. State expenditures must be regulated as efficiently as possible, based upon development priorities. The allocation of funds, both rupiahs and foreign currency, must conform with this schedule of priorities.

6. In order to surmount the inflation stage by stage there needs to be a planned circulation of money. This means that the money issued must be counter-balanced by a greater level of production, The principle of a correlation between money and goods must be the guide, or in other words the circulation of money must not be divorced from the supply of goods required by society.

b. Production

Enough is known and realized about how very important isthe role of agriculture, the estates, mining and national industrial production in general to Indonesia's economy.

In the long run, this role is decisive in determining whether the Indonesian economy will succeed in freeing itself from dependence upon the foreign imperialist economy or whether it will continue to be colonial and dependent incharacter.

We must continuously struggle to transform the colonial economy into an independent, national economy with agriculture and the estates as the basis and industry as the backbone. This struggle is of assistance to the political struggle to complete the demands of the August 1945 Revolution in their entirety.

The role of national production in the short run is extremely vital as a concrete barometer to evaluate the extent to which we have succeeded in our struggle to change the colonial economy into an independent national economy. It is nonsense to shout to the skies about the aims of the August Revolution, about an Indonesian Socialist society, about a just and prosperous society, while one is quite indifferent to the decline in production in all sectors, while blaming the workers, or even while in fact taking steps that bring about a further decline in the present level of production, President Sukarno correctly stated in his RESOPlM speech: "…production, economy, that is the stomach of the state, and this is why the reactionaries always concentrate their sabotage on this stomach of the state."

Thus an attitude of indifference, of blaming the workers or the taking of measures that cause a further decline in the present level of production means, directly or indirectly, consciously or unconsciously, assisting the sabotage of the imperialists and their agents, the domestic reactionaries.

On the contrary, if we succeed within certain limits in raising the level of production, quantitatively and qualitatively, inmaking costs of production low, or in short, in stamping out all forms of mismanagements in the field of production, and together with that, also stamping out mismanagements in the field of distribution, communications, etc, then this will mean:

1. concretely implementing the food-and-clothing programme within a short period of time;

2. helping the State in its efforts to stabilize the monetary situation;

3. on the one hand, large-scale economization, that is, if we succeed in. stopping rice imports and reducing the import of other consumer goods, particularly textiles, and on the other hand increasing foreign exchange earnings by raising the production and export of important existing export goods and expanding them by adding new exports where production exceeds domestic requirements.

4. laying a strong foundation for success in thestruggle to transform the colonial economy into an independent national economy free from dependence upon the foreign monopoly capitalist economy.

The situation in almost all sectors of production reveals a very serious picture indeed during the past few years.

The Government itself in the Gotong-Royong People's Legislative Assembly, recently endorsed the conclusion drawn by Commission D of the Assembly to the effect that production trends in 1962 experienced a downturn, and production was even heeding towards collapse, in particular the production of domestic consumer goods and the production of goods for export.

This conclusion is correct. In general the productive sector has declined by comparison with the previous year, and there are only one or two sectors of production where the level has been "constant" or has "risen" slightly. It is a fact that production faces the danger of collapseif considered from the point of view of full capacity that ought to be achieved. In a situation where mismanagement is widespread, and this includes the field of statistics and the collection of figures regarding the production of vital products, it is not possible to base the size of production only upon formal and official figures, but living realities must also be taken into account, in particular factors in the practice of production.

The most decisive factor of all in the practice of production is the management of production which is composed of the human element and of organization where, in the last analysis, the human being is the most important element. Itdepends upon the human being who is manager and the human being as the labour force, who directly produces as to whether the available natural resources and means of production can create material wealth useful for society or not. If the manager mismanages in production, then output will decline and costs will be high and the result will weigh heavily on the people as the consumers.

Apart from that, decline and collapse in production today is also the result of corruption, waste, large-scale smuggling and the like, a form of mismanagement which is sabotage and reactionary in the extreme.

If we take only four or five types of production that are the most essential and vital, it is very easy to prove the above statement regarding the unreliability of figures and decline in output.

As regards the production of rice which has been managed and guided for more than 10 years by the Department of Agriculture (now the Department of Agriculture and Agrarian Affairs), there is still up to this day no positive single set of figures that can be relied upon. The Department of Agriculture and Agrarian Affairs has put the production of paddy in 1962 at 19.8 million tons, while the Central Bureau of Statistics puts the figure much lower, that is 17.8 million tons. "In order to avoid this confusion", the Djuned (Minister for National Researeh) Commission was set up which succeeded in one way or another in "cutting the difference", and put it at 18.3 million tons, a figure that is still far below the production target for 1962 set by the MPRS Decision, namely 20.4 million tons, and even below the target set for 1961, namely 19.2 million tons.

The Central Bureau of Statistics (CBS) which should work with great precision, caution and perseverance, appears to be more fond of taking the easiest way, that is, it simply made a subtraction from the production target for 1962, namely 20.4 million tons, for the amount of rice imports estimated at the equivalent of 2.6 million, tons of paddy, that is to say, 20.4 – 2.6 = 17.8 million tons of paddy. This completely unscientific and careless way of working has very much lowered the prestige of the Central Bureau of Statistics and has misled those persons who seriously want to analyze the situation with the help of figures from the CBS. Every patriot, every scientific worker and writer who is accustomed to using exact figures will agree that it would be better for the leadership of such a CBS to be retooled than to go on deceiving and misleading people like that. Even more disgraceful is the fact that foreigners write books based on these erroneous CBS figures, such books are then imported and are used as bases by officials, students and others.

Figures regarding textile production are even more confusing and conflicting. According to the figures of the National Planning Council that have been endorsed by the MPRS and subsequently improved upon by the Working Committee of the National Planning Council, the number of Non-Mechanized Spindles (NMS) is 150,000 and the number of Mechanized Spindles (MS) is 18,000, of which 9,000 are of single width and 9,000 are of double width, according to information obtained directly from the mass organization of textile workers and the organization of private textile operator.

Not long ago, the First Assistant to the Minister of Light Industry announced that the total number of NMS had increased to 400,000 and the number of MS was now 19,500, and explained that with such capacity it was in fact now possible to meet the MPRS target set for 1968 ("Ekonomi Nasional" daily, 10 November 1962), that isto say, 1.7milliard meters based on the calculation of a population of 111.29 million in 1968 when every person should get 15 meters annually. What a difference there is between this figure and the figure announced by the Government, that textile production in 1961 was 460 million meters and that estimated output for 1961 was 460 million meters, that is to say a mere 25 per cent of the output that should be possible according to the statement made by the First Assistant of the Minister of Light Industry.

The figures of sugar production are not conflicting but they reveal a very bleak situation indeed. The MPRS target of 900,000 tons has been cut by the Government to 730,000 tons for the year 1962, but in actual fact the estimated production of sugar for 1962 is far below 600,000 tons, a figure that marks a severe decline by comparison with production in 1961 (640,000 tons) and with an output of 675,000 tons in 1960.

According to the Government, the production of estate rubber in 1962 was 230,000 tons which is almost the same as production in 1961 (228,000 tons), but it representsa severe decline by comparison with 1953 (309,098 tons). Smallholders rubber production fell from 440,000 tons in 1961 to 440,000 tons in 1962. According to a statement by the Minister of Agriculture and Agrarian Affairs himself before the Working Conference of the Association of Exporters (GPEIS), it is estimated that about 30,000 tons of rubber are smuggled abroad each year ("Ekonomi Nasional" daily, 25 November 1962). But if we examine the figures of rubber exports from Indonesia to Singapore according to Indonesia's. statistics and according to Malaya's statistics, there isa big difference between the two figures amounting to almost 1,044,000 tons over a period of 7 years from 1954 to 1960 or an annual average of about 150,000 tons, which means that the smuggling of rubber to Singapore and Malaya each year alone is five times the estimate made by the Minister of Agriculture and Agrarian Affairs of the total rubber smuggled.

Smuggling of copra exports has recently attained extraordinary proportions in the region of Sulawesi and the waters around Ambon. This is because of the swindling and speculation of the copra middlemen who are agents of certain cliques of copra smugglers, andwho offer far higher prices than the price paid to the copra peasants by the state trading corporations. And in addition to all that, the middlemen bring in goods from abroad that are very "attractive" to the copra-exporting society, such as textiles, glasses, plates, crockery, woollen clothes, cigarettes, etc.

This has led to a severe decline in the export of copra, namely, - according to the statement by the Minister of Agriculture and Agrarian Affairs before the Board of Directors of the "Fund for the Rejuvenation and Guidance of Perennial Plants" - from an annual average of 550,000 was during the years 1954 - 1957, to roughly 290,000 tons during the years 1958 - 1960, and then fell again to 130,000 tons (PIA News Agency, 9th November 1962). These figures are at great variance with the figures published in the Statistical Trends (published by the CBS) for the months of January, February, March, April 1962. Another consequence is a very large decline in copra purchased by the state trading corporations for the soap industry and for domestic cooking oils.

As regards the production of other export products such as coffee, tea, tobacco, palm oil, palm oil kernels, fibres and kapok, an examination of figures since 1957 shows a decline, with the exception of coffee which registered a slight increase.

Bottlenecks in the field of land and sea transportation not onlycompletely disorganize the distribution and circulation of goods in general, but they also create havoc with production.

The reasons for the setbacks, declines and even collapses in many sectors of production is, as inpublicly known, the widespread prevalence of mismanagementswhich has various forms and manifestations. To take but one example, mismanagements in the field of rice production: the thousands of millions of rupiahs that have been poured into the Paddy Centres have not yield corresponding results, many varieties of fertilizers, are being imported from abroad, the utilization of the fertilizers is not in accord with soil conditions, rice "seeds" are piling up in the warehouses and those that are distributed to the peasants cannot be utilized because of mismanagement in selecting and looking after the "seeds", the Agricultural Production Council has not been set up and there is no effective control from below and from above. We could also present concrete and convincing facts about mismanagement in the field of textile production, estate production and other sectors.

Under circumstances where the state corporations, both, productive as well as the distributive, including domestic and foreign trade, are being attacked from many directions by the disease of mismanagement, it is not possible for the state sector of the economy to give leadership or to occupy a position ofcommand over the entire economic life of the country. As a result of the inability of the state sector of the economy to occupy a correct position of command, the national private sector of the economy and the progressive domestic private sector are in a state of disorder and face the danger of close-down, with the further result that the internal funds and forces which are very greatly needed for the construction of an independent national economy, have been frozen and have become non-productive. In the framework of mobilizing funds and forces, all forms of racialism must be. resolutely resisted, such as the system of compulsory participation, name changing, and the like.

Those private companies that exist can only obtain fuels, auxiliary materials and spare parts in very inadequate quantities or are quite unable to obtain them altogether, while any intention to set up new private companies encounters a great number of difficulties because of the complicated procedure for obtaining a license, and because in actual fact they are threatened by the possibility that they will be heavily burdened by severe company and property taxes.

In the framework of increasing the production of foodstuffs, our Party must more resolutely struggle for the implementation of the Law on the Division of the Product in a way which is more advantageous to the tillers, and for the implementation of the Basic Agrarian Law so as to ensure that the surplus land of the landlords is really distributed to those who most desperately need it, the agricultural workers and the poor peasants, and to resist any abuses in its implementation.

Co-operatives of working people, in particular, productive cooperatives must be more actively developed. The 1,001 Movement which has now become a broad mass movement musty be organized in a more well-regulated fashion. There must be better control, and must be improved technically by drawing in more agricultural experts and by holding seminars. By means of these activities, we are directly dealing with agricultural production affairs, and this is a very important thing; we are doing whatever we possibly can to counter the difficult living conditions being suffered today by the broad masses of the people. Of course, all these activities offer only limited possibilities as long as there is still a contradiction between the existing political power and the masses of the people.

c. Foreign Trade

Our foreign trade is still a barometer for domestic economic life because the complete dependence of the Indonesian economy upon imports has not yet been eradicated. Sixty per cent of state finances revenues are dependent upon exports and imports. There is practically complete dependence for consumer goods and important fuels for domestic production upon imports and these have to be paid for out of the export proceeds.

The facts in 1961 and 1962 show that there has been a decline in export earnings excluding petroleum, that is to say, a decline in the volume and value of export of a number of important products The figures of export realization since 1960 are asfollows;


Rp. 27,9 milliards


Rp. 23.6 milliards

1963 (first part)

Rp. 9.7 milliards

These figures show that foreign exchange earnings during the implementation of the 8-Year Plan in 1961 and 1962 have been getting less and less. The result is a very great reduction in the volume of routine imports for consumption and for domestic production. The failure to implement the rice production target in 1961 and 1962 has naturally reduced the availability of foreign currency for other sectors because it is evident that it will not be possible to halt rice imports in 1963 as had been planned in the framework of the 8-Year Plan.

There was a considerable deficit in the trade balance for the year 1961 as the following figures show:






Rp. 23,558 million

Rp. 33,273 million

Rp. 9,715 million

1962 (Jan -June)

Rp. 3,705 million

Rp. 14,478 million

Rp. 4,773 million

On the other hand, the export of petroleum has risen constantly, from Rp. 9.9 milliards in 1960 to Rp. 11.7 milliards in 1961, and in the first eight months of 1962 these exports had already reached a value of Rp. 10 milliards in foreign exchange. But all this foreign exchange is still controlled by foreign capital.

It is evident that Indonesia has been unable to draw the benefit from the continuous expansion in both the volume and value of world exports- and imports. Especially as regards the competition between the world socialist market and the world capitalist market which encounters crises, Indonesia has not yet been able to break itself away from traditional markets (read: dependence upon the world capitalist market) in such a serious situation as the present. Avoiding the world crisis in the world capitalist market requires a serious effort on the part of all officials responsible in the field of foreign trade in implementing a policy that is independent and active in the economic sphere and in strengthening cooperation with the countries of the new emerging forces.

In view of the very limited export earnings, it is necessary during 1963 to make a careful check of the import of goods. Guided by the need to give priority to production projects, the import of luxury goods and other non-urgent goods should be stopped in order to ensure a more effective utilization of foreign exchange.

The SIVA (Foreign Exchange Certificate) regulation that was introduced with the intention of carrying out an export drive by eliminating the internal price disparity has been a failure and it has had an extremely unfavourable effect upon production and the living conditions of the people in view of the sharp increase in prices as a consequence of the very high SIVA rate. The losses suffered by exporters because of the disparity between internal prices and foreign prices should not be overcome by such a thing as the SIVA regulation. As is normally done by other countries that require international means of payment, it is possible under certain circumstances to give a bonus or subsidy to the producers. and then the government exports the goods in question at the lower world price. In this way, there is a guarantee that the foreign exchange will be obtained and domestic prices need not be under-mined by price increases of the SIVA type. There must of course be care to ensure that the utilisation of the foreign exchange is effective and that there is no waste such ashas happened in the past in the purchase of goods that are not required for construction.

One way of guaranteeing greater export proceeds is by intensively combating smuggling. It is a public secret that some considerable percentage of the country's export proceeds do not in fact enter the State Treasury. The considerable smuggling of such export products as copra, pepper, rubber, tin and others must be combated in 1963 so as to bring about an increase in state receipts.

In order to simplifycontrol and to smoothen the purchases of important export products from the people it is necessary to intensify the export of important product by aState Export Agency. Collection of products from the regions should be carried out by branches of the Stale Export Agency so that the losses suffered by the producers as a result of the manipulations of the middlemen, some of whom are connected with the smugglers can be reduced.

In order to do all this, genuinely Manipol-ist persons, that is to say, people who are patriotic, honest, competent, democratic and inspired by Socialist ideals must handle foreign trade. Without this itwill not be possible for the export drive to proceed, neither will it be possible to prevent a wittling away of state receipts in the foreign trade sector.

d. Living Costs of the People

The condition for success in carrying out planned development is enthusiasm to work on the part of the producers, in particular the workers and peasants,. Enthusiasm must be aroused both morally as well as materially. To do this only morally will not produce many results because in the last resort it is the physical condition of the workers that is decisive in determining whether productivity can be raised or not. In the process of production, minimum requirements are always needed for the workers so that they are able to live and are physically capable of continuing production.

In 1961 and 1962, there were a number of basic weaknesses in arousing the labour enthusiasm of the workers, whereas the workers and peasants are the pillar of construction. This does not mean that the workers and peasants have not been willing up to the present to make sacrifices and that they only like to make demands. The Indonesian workers and peasants have long been making sacrifice without having been asked to do so.Despite the fact that they have been suffering from increasingly difficult living conditions, as the following figures will show, they nevertheless continue to discuss and tackle the economic difficulties by action. The cost-of-living index of a government employee with a family of 4 has increased as follows;

1953 - 100

1958 - 202

1959 - 293

1960 - 409

1961 - 463 (second quarter)

This indicates clearly enough how living costs have increased, whereas workers wages have been far outstripped and have risen far more slowly than the prices of goods reflected in the above index.

The living conditions of the people in the village are also becoming increasingly severe. This is apparent from the rise in the index of a basic foodstuffs and of textile goods in the countryside of Java and Madura, as follows:


Price index of 12 basic foodstuffs

index of textile prices
















1962 (March)



These figures clearly reveal that the peasants, in particular the poor peasants and the agricultural labourers who are compelled to purchase the major part or all of the basic necessities they require, have suffered a very sharp rise in their costof living.

These trends were even more serious in 1962 when consumer goods prices in Djakarta have risen 420 per cent at the end of November 1962 by comparison with the level of prices in January 1962. No one will deny that in fact prices have risen much more than is shown in the official figures. Wages, on the other hand, have risen by an average of only 30 per cent.

The above facts regarding the economic situation show clearly that there is no indication that there will be any improvement in the immediate future. But even so, it is absolutely incorrect to say that the present economic difficulties are like a vicious circle which it is impossible to break through. We can break through these difficulties so long as the forces of the people are fully mobilised and the widespread mismanagements is swept aside. On 10th October, 1962, the Political Bureau of the CC of the Party issued a statement that was entitled; "Forward in the Spirit of the Trikora to Tackle the Economic Problem" [Trikora is the abbreviation of the Triple Command of the People]which was very enthusiastically welcomed, which was widely discussed and has become an important source of material for consideration for all persons who are genuinely worried about the economic situation in our country. The Statement said among other things:

"After surveying the appalling economic situation which has befallen the state and people, the time has come to take fundamental action in the economic field. Under such circumstances, technical-administrative or financial-monetary measures are nothing more than patchwork that gives no hope, and that cannot remedy the very terrible economic-financial situation that exists today."

In that Statement, we suggested that the following measures he taken:

1. To retool the economic-financial apparatus, acomplete overhaul of the organisational structure of bureaucratic economic and financial bodies;

2. Speed up the establishment of the democratic control apparatus of society, such as Enterprise Councils, Production Councils, Councils for the Supervision of Distribution and Communications, for the Supervision, of Export and Imports, etc;

3. Guarantee democratic rights for the workers and peasants as well as the entire people so that they can “dance the kiprah” and roll up their sleeves to tackle the present economic crisis;

4. Rehabilitation and repair of the means of production and of land, sea and air communications, and planned, gradual modernisation, in keeping with the availability of capital, equipment and personnel;

5. Alter Indonesia's foreign trade policy by expanding as far as possible the volume and value of trade with the Socialist countries so as to be able to avoid the bad effects of the economic crisis in the capitalist countries;

6. Oppose neocolonialism in the economic field; the question of neo-colonialism, including the European Common Market, which threatens the Asian, African and Latin American countries should be discussed at the Second Asian-African Conference;

7. Financial policy must serve production and not the converse, not production being sacrificed to an erroneous financial policy.

We also set forth in that Statement an important principle for the policy regarding Indonesians economic development, namely: "Construction policy must be based on the understanding that agriculture and the estates are the basis while  industry is the backbone in the development of a national economy”. Upholding this principle must mean in the first place that radical land-reform must be carried out as the basic source of capital for the construction of the national economy. It is only by implementing this principle that Indonesia can solve the people's food-and-clothing problems with its own forces and abilities, and together with that lay the foundations for the industrialisation of the country.

Speaking about sources of finances for development, mining which is already rather developed in this country must play an important role side by side with agriculture and the estates.

If importance is not placed on agriculture and the estates, which are the basic source of earnings for Indonesia (besides the existing mining setter), we shall remain forever dependent on abroad for food and clothing, and the extent to which, we can improve industrial requirements will always be very greatly limited. Since we do not want our country to remain forever agrarian and dependent on the world market we must therefore also build a backbone to our economy so that it can stand independently, and that back bone is industry.

Thus, the real way out of Indonesia's economic difficulties is not begging for loans from abroad or making the Indonesian people the servants of foreign capital invested in Indonesia, but the development of a national economy that can stand on its own two feet. This means that there must be the daring to change the system of society at home by sacrificing the interest of the minority of big exploiters in the towns and the villages, that is, the bureaucrat-capitalists, the compradores and the landlords, and defending the interest of the masses of the people. For this, there must be the appropriate political power, Gotong-Royong power with NASAKOM as the fulcrum. Every leader of the people is faced with the question: oppose the big exploiters and defend the people, or oppose the people and defend she big exploiters. This is the yardstick of whether a person is a revolutionary leader or not. There is no middle way.

3. The Task of Opposing Neo-Colonialism

The third task is to oppose neo-colonialism. Our last Congress gave a very clear analysis of this. Life has proven the correctness of the conclusions we drew at that Congress.

As time has passed more and more facts have appeared testifying to the attempts of the monopoly capitalists headed by the US imperialists to hold the economic and political reins in the countries of Asia, Africa and Latin America with the aim of preserving their former positions inthe economies of the countries that have recently attained independence. Besides this, they strive to seize new positions behind the mask of economic "aid", theystrive to drag the newly independent countries into military blocs, to impose military dictatorships on these countries and establish military bases.

In Indonesia, the US imperialists are trying to carry out a variation of the "Allianza para el Progreso" (Alliance for Progress directed to Latin America) with the name "programme of economic stabilisation". The objective is the same, namely '"economic stabilisation" and ''political stabilisation" for the US imperialists. For this purpose, the US imperialists do not neglect to push forward the so-called "peace corps".

As long as there was no solution tothe West Irian question, the Indonesian people regarded Dutch imperialism as their enemy number one while at the same time regarding American imperialism as the most dangerous enemy. Today, now that it is certain that Dutch colonialism is soon to come to an endin West Irian, there is no point any more in establishing Dutch imperialism as enemy number one. The UNTEA (United Nations Temporary Executive Administration) which is still in power in West Irian serves the interests of American imperialism more than it serve the interests of Dutch imperialism. Therefore, the enemy number one and the most dangerous enemy of the Indonesian people at the present time is US imperialism. From the point of view of its political influence in Indonesia, its military and cultural penetration, US imperialism stands above all the rest.

The US imperialist are at present working very hard and doing everything in their power, with the use of demagogic slogans, to expand and strengthen their economic and political influence which indeed already exists in Indonesia. The methods they are using are as follows;

1. Increasing existing American capital investments, particularly in the oil industry,

2. Expanding American ”aid” in new forms.

Regarding the expansion of American capital investments, it is clear that this is taking place in the Shell (part American capital), Stanvac and Caltex Oil Companies which have increased their capital investments since 1954 as follows:

Shell, an increase of $78 million

Stanvac, an increase of $40 million.

Caltex,   an increase of $47 million

The position regarding US economic "aid", the great part of which is consumptive, is that it has amounted to $639 million since 1950, according to a statement by the US Ambassador, Jones, before the American Men's Association.

This is the basis on which American imperialism now rests.

Today, the US imperialist, are making new efforts so replace the Dutch imperialists. The American imperialists are making plans for "special aid" with the slogan for "economic stabilisation" and "political stabilisation". This is long-term aid, they say, just as if Indonesian soil were already so barren that the country cannot stand on its own two feet any more but will have to depend upon foreign aid for the rest of its life. What they mean by "political stabilisation" is stabilisation for "their people" who are holding positions of importance in the government.

Aid given with such political strings is an abuse of the independence and sovereignty of the Republic of Indonesia.

Theattitude of thebureaucrat-capitalists on the question of foreign aid is a dishonest one. Misusing their powers, they sabotage the implementation of aid from the Socialist countries which is based on equal rights and mutual benefit. They always talk about economic aid from the imperialist countries in glowing terms because such aid is invariably accompanied by "something" to strengthen the personal economic basis of the big exploiters in the towns and the villages.

As a result of the widespread prevalence of mismanagement in economic and financial affairs, it has become apparent that utilizing foreign assistance does not guarantee the greatest possible profits for the development of the economy of the state. In addition to "aid" from the USA and from other capitalist countries which is available in considerable amounts, there is also assistance from the Socialist countries which are in a constant state of growth, and there are no political ties attached that would violate the sovereignty of the Republic of Indonesia. The assistance from the Socialist countries is furthermore just assistance and not the key source of financing and it is provided in thehope that within a short time Indonesia will be able to stand on its own two feet and will not be forever dependent on foreign assistance.

Assistance from the Socialist states has not yet a long life in Indonesia but there is enough of it to facilitate economic construction were it not for the sabotage and economic andfinancial mismanagement right here in our own country. According to figures published by the ECAFE, aid from the Socialist countries to Indonesia has amounted to the following:

up to the end of 1957, $137 million

up to the end of 1960, $466 million, or an increase to 340% of the first figure, and further increase in 1961 and 1963.

The declining confidence of countries with backward economics in "aid" fromthe United States is one of the factors that has stimulated the development of aid from the Socialist countries. ECAFE figures show that aid from the Socialist countries to the countries with backward economies has risen as follow:

up to the endof 1957, $822 million

up to the end of 1960, $3,198 million, or an increase to 300% of the first figure.

The new US "aid" that is now being planned is also intended to be channelled through the Private Development Bank to be handed on to their cronies. US imperialist "aid" is intended to strengthen the economic position of their stooges and eradicating the role of the state sector of the economy which should occupy a position of command. This is in conflict with the Manipol even though the US imperialists state that they "agree" with the Manipol, and Jones even states that they want to achieve harmonic relations between American capitalist enterprises (private enterprises) and "Indonesian Socialism".

This makes it clearer than ever that the CPI was right when it warned during the discussions of the Law on the Private Development Bank in the People's Legislative Assembly that there was a danger of foreign imperialist capital infiltrating into the Private Development Bank. We must be very vigilant in this matter and prevent foreign imperialist adventures through the Private Development Bank.

Dutch imperialisms is still a dangerous enemy of the Indonesian People because this imperialism still has rather considerable investments  (in the BPM and elsewhere), became it will still present completely unreasonable demands regarding the Dutch enterprises that were taken over and nationalised, because it still has its former political connections here and will strive to renew these connections.

In the recent period, British imperialism has come to the fore with its Malaysia plan, as well as West German imperialism and Japanese imperialism with their economic penetration. All this certainly arouses the vigilance of the Indonesian people. But of all these imperialisms that are playing their role in Indonesia, the enemy number one and the most dangerous enemy of the Indonesian people is American imperialism. This is the imperialism that must be the main target in opposing neo-colonialism.

There are some people who are doubtful and ask does neocolonialism really represent an acute danger for Indonesia? This question is raised in view of the fact that Indonesia, by contrast to other Asian countries, achieved its national independence through an armed struggle. We Communists answer this question most categorically: yes, very acute! We have good reason to answer in this way. Our everyday experience proves that the greatest vigilance is required regarding the danger of neo-colonialism.

More than six years ago, at the Plenary Session of the CC that was held in July, 1956, we drew the conclusion, based on a profound analysis, that there are three forces and three concepts in connection with completing the demands of the August 1945 Revolution.

The firstforce is the diehardforces, that is, the reactionaries, and their concept itto turn Indonesia into a country that is independent in form only but in essence submits to imperialism, defends the interests of the big foreign capitalists and the landlords. According to them, this is the objective of the August 1945 Revolution.

The second force is the progressive forces, that isthe workers, the peasants, the petty bourgeoisie, the revolutionary intellectuals and other democratic elements, and their concept is that the privileges of the imperialists in the political, economic, and cultural fields must be completely eradicated from Indonesian soil; the same goes too for feudal ownership of the land which must be eradicated and the slogan "land to the tillers" consistently implemented.

The third force is the middle-of-road forces, that is, the national bourgeoisie, and their concept isanti-imperialist and anti-feudal, they want changes to take place inIndonesia with the purpose of defending their own interests for the development of national capitalism.

These three forces wrestle with each other every day and every hour in all fields of life, in the political field as well as the economic field, in the cultural field, and so on. In the recent period, the wrestling between them in the economic field has been particularly apparent and particularly strongly felt, particularly in connection with the question of overcoming the present economic difficulties.

The diehards are of the opinion that the economic difficulties can only be surmounted if Indonesia opens wide the door to foreign capital investments because if there is a lot of foreign investment operating here, we shall be able to get a lot of taxes from them as capital for the construction of our country. They also speak about the "programme for economic stabilisation" with imperialist credit. They are very busily bringing here imperialist experts to carry out various investigations. They regard advisers from the International Monetary Fund (IMF) and such like as wizards who can cure all ills. They orientate towards the IMF which has a programme of exploitation, domination and the perpetuation of backwardness. They naturally do not orientate towards the people at all in their efforts to solve the economic difficulties, and in fact they accuse the people of being the source of the economic difficulties because the people are always demanding this and that. They are not patriots but foreign agent and traitors in the field of economic affairs.

The diehards consist mainly of the right-wing socialist who still occupy important official posts, of the bureaucrat-capitalists, of the compradores and the rightwing of the middle-of-the-road forces who do not have a concept of their own but are very clever at shaping and selling the concepts of the right-wing socialists.

The progressives are of the opinion that Indonesia's economic difficulties must be overcome by mobilizing the entire forces of the people and the natural resources of Indonesia. Indonesia has rich natural resources, its soil is very fertile, it has a huge population that is skilful and hardworking. All this is an inexhaustible source for constructing our national economy. All the objective conditions exist for making Indonesia a country where the people live in prosperity.

At this present time, the progressive political and economic concepts already exists and they have even become official state policy. What isneeded now is the political power that conforms with the economy that isto be constructed. But it is precisely this that does not yet existand it is this that is the foremost obstacle in the efforts to overcome the present economic difficulties. And the reason why this condition does not yet exist, as President Sukarno has frequently stated, is because Communist-phobia, left-phobia, people-phobia, and peasant-phobia still have a heavy hold on the heads and hearts of some part of the state apparatus.

According to the progressives, genuine economic assistance can only be obtained from countries that join in the struggle against imperialism, particularly the Socialist countries, and even in the case of this aid, it is nothing more than an external factor, it is nothing more than aid, that is to say, it does not have a decisive role in the construction of Indonesia's economy. The deceive thing is the efforts, the strivings, the drills, the hard-work, the unity and the determination of the Indonesian People themselves. The progressives are not only patriots in political and cultural affairs but they are also patriots in economic affairs.

The middle-of-the-roaders do not reject the opinion of the progressives, in fact they too like to talk about the necessity of placing confidence in our own forces, about the country’s abundant riches, about the diligence and abilities of the Indonesian people. But they say, either openly or in their hearts, that the path of “placing confidence in one's own forces" is too difficult and too lengthy and that iswhy, they say, we must look for assistance from abroad, both credit as well "non-dangerous” foreign capital investment.

The opinion of the middle-of-the-roaders appears different from that of the diehards, and indeed it is different, as a concept, but our experience up to the present shows *hat in practice these two opinions are quite the same, they both rely upon foreign "assistance''. After having obtained foreign "assistance", the middle-of-the-roaders then 'forget" about the path of "placing confidence in, our own forces" with the result that right up 10 the present time the political conditions have not been provided forther working people to "dance the kiprah” and roll up their sleeves to deal with the economic difficulties.

But developments in the recent period show that not all the middle-of-the-roaders "forget" about the path of "placing confidence in our own forces". Gradually and with time, the left wing of the middle-of-the-roaders have come to realise that the only way to deal with the economic difficulties is, together with the progressives, to sweep aside mismanagement, to carry out retooling on a grand scale, and they also agree to the formation of a NASAKOM Cabinet.

The above analysis shows that the danger of neo-colonialism is indeed an acute danger in our country. This danger comes from the reactionaries who are only too anxious to invite foreign capital investments and who want to carry out the "economic stabilisation programme" with imperialist credit, and from the middle-of-the-roaders who also open the door to "non-dangerous" capital investment.

This danger is all the more acute since both the invitation to foreign capital investments as well as the "economic stabilisation programme" with imperialist credit, and the invitation to "non-dangerous" foreign capital investments are all done in the name of "Indonesian Socialism". The result is that there is no difference between capitalism and "socialism" and even between imperialism and "socialism".

This is why Indonesian patriots must not adopt an attitude of indifference to the economic problems in our country, because the danger that threatens our country comes precisely from here. The danger that comes from other directions, for example from Malaysian neo-colonialism, mast of course be opposed, but the people get to know about this quickly and it is easy to mobilise opposition to it. When it come through the economy, it is “unfelt” and there are even some who feel things very nice, arid the independence of our country is undermined and whittled away by the imperialists until in the end we shall wake up one fine morning to discover that our country has become one of the foremost neo-colonial countries.

Thus, in the struggle in the economic field, two, we must be guided by the spirit of patriotism, the spirit of the Trikora and the spirit of the Manipol, that is, the spirit of relying on our own forces, the spirit of selflessness and of life and death struggle to construct a national economy that is not dependent on imperialism. Make the economic issue the issue of all patriots!

This is, then, is the Triple Task which now faces us.

The core of the Triple Task is the task of tackling the economic difficulties. This is why the Communists joyfully hailed President Sukarno's "Year of Triumph" speech which declared readiness to overcome "the difficulties in economic affairs" and also stated where the basic trouble lies, namely because "the disease of Communist-phobia, left-phobia, people-phobia, worker-phobia and peasant-phobia is so very serious".

If we donot tackle the economic difficulties we cannot possibly consolidate the victories that have already been scored; for example, we cannot build up West Irian, bring real security for the people and the state, and so on; on the contrary, dissatisfaction could emerge among the people in West Irian, security may continue to be disturbed, etc.

If we do not succeed in tackling the economic difficulties, the diehards, in particular the right-wing socialist leaders and the bureaucrat-capitalists, will achieve greater success in pressing their neo-colonialist economic concepts upon the government through key officials who do not have a concept of their own but are nothing more than recipient and sellers of concepts. When the economy is plagued with difficulties, the middle-of-the-roaders can easily swallow these neo-colonial concepts and by so doing they are acting in the same way as the diehards.

In this bitter struggle, we must not retreat an inch, we must win victory for our economic concept, the concept of a Guided Economy or a Gotong-Royong Economy, the essence of which is an anti-imperialist and anti-feudal economy as is clearly contained in the Broad Lines of Development (MPRS Decision, No. II).

In connection with the question of surmounting the economic difficulties, we can take note of two advances that have been made inthe way of thinking of many people in the recent period;

Firstly, the idea is already widely accepted that the inflation cannot be overcame by monetary measures alone. The question of inflation mustin the first place be solved by raising domestic production. Many people could not accept this idea a few years ago. Placing the stress in solving the inflation upon the question of production means that there must be a real consciousness of what is said in the Manipol, namely that the workers and peasants are the basic forces of the revolution, because without them it is impossible to have the production that isneeded to solve the inflation. Thus, worker-phobia and peasant-phobia must he really and truly stopped if it is genuinely intended to solve the inflation, the practice of flinging "commands" about must be stopped, and thepath of consultation and accord with the workers and peasants must be taken.

Secondly, the idea is broadly accepted that the solution to the country's economic problems cannot be divorced from the solution of other problem, particularly the political problem. In other words, there must be a political power that is in accord with the economic structure that is to be built. History as well as present-day facts show that a certain typeof economic structure requires a corresponding political power. Today, the Indonesian people have been charged by the MPRS with the task of building a progressive economic structure that is anti-imperialist and anti-feudal, that is national and democratic, that is operated in Gotong-Royong fashion by the entire people and in which there is control by society and support of society. But the odd thing isthat the political power we have today does not reflect a political power that could implement this economic task. In short, there is a contradiction between the economic structure that we want to build and the political power that we have today. This contradiction can only be solved if a Gotong-Royong Cabinet based on balanced representations is formed in keeping with what is demanded by President Sukarno’s Concept (the speech of 21st February 1957), with what is demanded by the Monipol and by the MPRS Decision No. II, Appendix A regarding Government Affairs. So long as this contradiction is not solved, there is no practical value in talking about solving the economic difficulties, in talking about constructing a national economy, or what is more, in talking about Socialism.

At the end of 1962 and the beginning of 1963 the demand for the formation of a NASAKOM Cabinet became much more vociferous. During this period, the demand for a NASAKOM Cabinet has for the first time been supported by NASAKOM. Before, it was only the Communists, the progressive mass organization and President Sukarno who talked about this (President Sukarno used the expression Gotong-Royong Cabinet in the President's Concept). Today, the demand for a Gotong-Royong or NASAKOM Cabinet is also supported by the Nationalist parties (the PNI, Partindo and others) and the religious parties (the Moslem Party, Perti, regional leaders of the Nahdatul Ulama, the PSII, and others). The Indonesian Journalists' Association also supports the demand. All thus indicates an upswing in the political consciousness of the Indonesian people, it indicates a new development of the political situation in our country, it points to a seriousness regarding the affairs of the country and the people and a genuine desire to find a way out of the difficulties.

The upswing in the demand for the formation of a NASAKOM Cabinet has made the reactionaries more isolated, it reflects a shift to the left of the middle-of-the-road forces and the further broadening and consolidation of the progressive forces. This means that the national unity of the Indonesian people has become even more stronger.

And this is indeed the case. Although they are still there and must not be ignored, the reactionary or diehard forces suffered a number of hard blows during the period being reviewed from the revolutionary awakening of the people during the mass mobilisation to smash the terrorists, in all the preparations connected with the question of West Irian, in the struggle against the landlords in the countryside, in the struggle against mismanagement and against lawless behaviour which has been made possible by the state of emergency being still in force.

The friends of the diehard forces among the middle-of-the-roaders have also suffered defeats, both because they have been dragged down by the defeats of the diehards as well as because of the growing political consciousness ofthe masses and of some leaders within the middle-of-the-road forces.

The progressive forces have expanded and become more consolidated in particular because of the new developments inthe peasants and workers movement and the new awakening among the revolutionary intellectuals. The movement of the progressive masses has made advances on all fronts.

With the expansion and consolidation of the progressive forces and the national front, the conditions have improved for continuous advance towards consistent democratic changes in the political system and in the field of political freedoms for the people, for a Gotong-Royong Cabinet, for democratic regional government, for the lifting of SOB, for free and democratic general elections, etc.

The demand for the formation of a Gotong-Royong Cabinet is a scientific, objective, democratic and patriotic demand. All talk about Pantja Sila, the 1945 Constitution, the Manipol, Guided Democracy, Guided Economy, the peaceful and democratic path for the attainment of the aims of the revolution, and so on, are just a demonstration of hypocrisy ifnot accompanied by agreement with the formation of a NASAKOM Cabinet.

Although the demand for the formation of a Gotong-Royong Cabinet with NASAKOM as the fulcrum is scientific, objective, democratic and patriotic, the Indonesian Communists must be fully conscious of the fact that the question of the formation of a Gotong-Royong Cabinet with NASAKOM as thefulcrum is a question of the balance of forces, and that there is no class that voluntarily wants to share power with another class. Not only does the reactionary-bourgeoisie not want to share power with another class, but the national bourgeoisie too, unless compelled to do so, does not want to share power with the proletariat. Thus, there should not be the idea among Communists that the question of participating in power is only a matter of scientific truth, a matter of objectivity, a matter of justice according to democratic principles and patriotism.

The progressive forces are indeed large today, but the middle-of-the-road forces and the right-wing forces taken together are still larger. Indeed part of the middle-of-the-road forces are now, under the pressure of the masses, prepared to co-operate with the progressive forces in a NASAKOM Cabinet and they no longer take heed of the intimidation by the diehards, but a considerable part of the middle-of-the-road forces are still captives of the diehards.

In order to change the balance of force so that there are adequate conditions for the formation of a Gotong-Royong Cabinet with NASAKOM as the fulcrum, we must more resolutely uphold the line which we laid down six years ago, namely: exert all efforts tirelessly to develop the progressive forces, unite with the middle-of-the-road forces and isolate the diehard forces. We must practise this line through practising the "five mores": more during, more skilful, more vigilant, more resolute and more persevering.

For the enemies of the people, namely the imperialists, the landlords, the compradors and the bureaucrat-capitalists, a NASAKOM Cabinet is not scientific, not objective, not democratic and not patriotic, because they have other standards that accord with their own interests. This is why, even though Bung Karno has repeatedly stressed the necessity of revolutionary national unity and the absolute necessity of NASAKOM as the fulcrum, the diehards and the right wing of the middle-of-the-road forces, including some important state officials who declare themselves to be “loyal to the President", completely ignore all this and even smuggle in their opposition to revolutionary national unity and NASAKOM. So as not to make it easy to see that they are actually against President Sukarno and the people, these officials make a habit of paying lip-service to Pantja Sila, the 1945 Constitution, the Manipol and the guidelines for its implementation. But their foremost characteristic is that they never speak about the need for national Gotong-Royong and the absolute necessity for NASAKOM as the fulcrum. Whereas not speaking about this is the same as saying nothing at all because without it, it is impossible for the Manipol and all the other things to be implemented. It is thus clear that it is absolutely essential for the struggle for the realisation of the Manipol to be accompanied by a struggle against the hypocrite or the sham Manipolists.

We Communists do not represent these old, outdated forces, we represent the new emerging forces. This is why we shall never for a moment stop propagating the need for revolutionary national unity and theabsolute necessity for NASAKOM as the fulcrum. It is certain that this will be victorious, that this will be what is due to be implemented, not only because it has the agreement and support of the people but in the first place because the people struggle for it and make sacrifices for it. The individualist, reactionary diehards who do not have the support of the people will certainly be defeated.

The formation of a NASAKOM Cabinet is the first political step that must first taken by any one who genuinely wants to take the path of peace and democracy to Socialism. If one does not agree with the formation of a NASAKOM Cabinet, all talk about the "peaceful and democratic path" is sheer nonsense.

True, a NASAKOM Cabinet is not yet a definite guarantee that conditions will improve within a short time hut the formation of such a Cabinet indicates an earnestness to concentrate all national potentials and it is an effective step against Communist-phobia. True, a NASAKOM Cabinet is not an Aladdin's lamp, but the formation of such a Cabinet will definitely open up possibilities for surmounting the difficulties and this is better than there being no possibilities at all, as is the case with the Cabinets we have had up to the present.

In order to overcome the present economic difficulties, the state apparatus in the field of government and in economic and financial affairs as well as the leaders of the state-owned corporations must be made subject to review and retooling. For this purpose we have raised the demand that a Gotong-Royong Cabinet with NASAKOM as the fulcrum be established under the leadership of President Sukarno. This retooling is needed not only as a rectification of our failure to replace consistently the colonial apparatus by a completely new apparatus at the beginning of the 1945 Revolution, but even more it is needed because as a result of the Round Table Conference agreement andthe state of emergency that has been in force for more than five years, too many people have been "mis-appointed”, namely these unsuitable individualists who have been placed in position within the state apparatus and the economic and financial sectors and who have thus become the source of mismanagement.

In the question of retooling, the reactionaries shun very much retooling of personnel. They go round in circles talking about retooling of the apparatus and mental retooling, just as if the apparatus and mentality had no connection whatsoever with personnel, with people. They deliberately present the question in such a way so as to retain in position the reactionaries who still hold many important official posts, with the result that retooling of the apparatus and mental retooling would in essence apply only in words. In this way, they deceive the whole of society. This iswhy we revolutionaries must stress that the most important thing is retooling of personnel so that the mis-appointed people should be replaced by persons who will devote themselves wholeheartedly and devote all their thought to serving the people, by persons who are not individualists, who are genuine Manipolist. With such people, it will be possible to compensate for the shortcomings in the apparatus, but with persons whom President Sukarno has called "persons whose brains and hearts are so rusty that they cannot adjust themselves to the Manipol", whatever apparatus there may be, it will not be possible to use it to serve the people.

Of course, we must not underestimate the importance of mental retooling in the framework of changing the ideas of backward persons into progressive ideas. But this must be done in a correct way and there are already instructions about indoctrination, namely the "nine counsels" in President Sukarno's "Year of Triumph" speech. We must work hard to bring about a total integration of the Manipol with the masses of the people.

For the sake of the implementation of the Triple Task, we must continue forward with the spirit of "vivere pericoloso", the spirit of the daring to skirt danger, more daring than ever before, for the formation of a NASAKQM Cabinet, for the implementation of retooling in all fields and for correct indoctrination on the basis of the "nine counsels". Rejecting these three conditions means rejecting the consolidation of the victories that have already been scored, it means wanting the economic situation to remain in the terrible state it is now in. and it means letting neo-colonialism take over in our country.


The international situation shows that the anti-imperialist and peace-loving front which Bung Karno calls the new emerging forces is developing more and more and is achieving victories that are pressing the imperialists back.

The situation in West Europe today dearly shows how sharp are the internal conflicts in the imperialist camp, how much the relations between the imperialist states are strained today.

The United States of America wants a Europe that is united to face up to the Socialist camp but that united Europe must remain dependent upon and submissive to the USA, militarily, economically as well as politically. America is very much displeased with the ambitions of Britain, France as well as West Germany, each of whom wants to have their own nuclear force. America and the West European states are joined together in one multilateral nuclear force of NATO, under the leadership and single power of the USA. In the US "grand strategy", the whole of Europe, including Britain, is indeed only intended to occupy the role of conventional infantry troops whilst the USA itself is the single leader with indisputable "nuclear teeth".

For these purposes, the USA has been very insistent that Britain which has "special relations'' with theUS should be able to join the European Common Market (ECM) and so participate in forming a European Political Union; and then at the same time, the US can take over Britain's colonial interests in the Commonwealth and Africa.

But de Gaulle, aidedby Adenauer, two old men in Europe who mutually need each other for their own respective interests, do not want to submit to US hegemony. They look upon Britain as an American agent that is suspect andshould not be allowed to enter the ECM. West Germany itself, which, from the point of view of its own industrial interests, does not reject Britain as a member of the ECM, is no longer able to do anything to help Britain get into the ECM because of the Gaulle's stubborn attitude of  rejection. At the end of January of this year, a decision was taken rejecting British entry into the ECM and the negotiations which were being held in Brussels were officially stopped. After de Gaulle had published his nuclear budget to make France an independent nuclear power, a Bonn-Paris agreement was signed a few days ago. This agreement in essence means the establishment of a "Little Europe" around the Bonn-Paris axis, excluding Britain, and which, within limits, is not dependent upon the USA. Meanwhile the other members of the ECM are afraid indeed to see this de Gaulle-Adenauer axis becoming more and more powerful. Indeed, Kennedy's "grand strategy" can indeed be said to have failed. Official Washington reaction has indeed stated that US interests no longer feel sale lit Europe now that there is this Bonn-Paris axis. The western alliance is collapsing and falling to pieces, a fact which cannot be concealed however hard they may try to fan the differences of opinion that have temporarily arisen to the ranks of the international Communist movement.

During the period under review, the Socialist countries have accomplished a number of achievements and advances that are very important indeed, among other things the successful launching of two space ships by the Soviet Union which orbited the world together. This once again testifies to the absolute superiority of the Soviet Union over all imperialist states in rocket science and technology. In People's China, the difficulties that arose as a result of great natural calamities for several years in succession have now been brilliantly overcome thanks to the powerfulness of the Socialist economy and this testifies in particular to the exceptional staying powers of the People's Communes.

The people's movements for national independence inAsia, Africa, and Latin America have recorded brilliant successes that have shaken the position of world imperialism.

The Laos people have achieved great victories and extraordinary progress has been made by the people's troops in South Vietnam. The sham 'non aligned' policy, the bankrupt pro-imperialist policy of Nehru, in particular regarding the border dispute between India and People's China, has been more and more exposed, and the recent military adventures of the Chiang Kai-shek bandits in Kwan-tung have been smashed. Four new independent states have been born, Algeria, Uganda. Rwanda and Burundi on the continent of Africa, and people's resistance in South and North Rhodesia, in Angola, Kenya, Zanzibar, South Africa, Mozambique, Basutoland, Bechuanaland, and Swazi is becoming more and more powerful.

A glorious epic in the history of the liberation of the peoples has been written by the heroic people of Cuba. Relying upon the granite-like unity of the people, upon full confidence in the strength of the people which is the most powerful weapon of all, upon its Marxist-Leninist Party, upon its revolutionary government led by Comrade Fidel Castro, as well as upon the tremendous assistance being given by the Socialist countries and the progressive peoples of the world, Cuba has stood firm and does not bend the knee to any aggression or intimidation from the US imperialists. Resolutely and unshakably, the Cuban people are taking the path of building Socialism. Insisting upon Castro's Five Ppoints, the Cuban people have preserved the sovereignty and independence of their country, have saved their Socialist state. Comrade Fidel Castrowas very correct indeed when he said that the basic experience of the recent Caribbean incident is: "Don't place trust in the words of the imperialists”, and that the imperialists and reactionaries must be faced and conquered with force and not through co-operation or excessive compromise.

The Cuban Revolution and the two Havana Declarations which it has produced have given inspiration to actions by people throughout the entire continent of Latin America who are defending this Revolution, and has further stimulated the people's resistance in Venezuela, Ecuador, Chile, Costa Rica, Guatemala, and other countries of Latin America against the enslavement policy of the US imperialists in the form of what they call the "Alianza para el Progreso" (Alliance for Progress),

We were caught up in a great surge of happiness when in December last year, our neighbours, the people of North Kalimantan, launched a rebellion and proclaimed a new independent state. This courageous struggle is not only the way to liberation for the people of North Kalimantan, but it is also of great assistance to the Indonesian people because in this way the dam called the "Federation of Malaysia" which is to be built to encircle Indonesia has been challenged and broken through. Although British imperialism and its puppet, Tengku Abdul Rahman, will continue with their intentions to encircle Indonesia with their Malaysia, the people who are to be Malaysia-nised are ready to storm it, while the Indonesian people give full, resolute support to this just struggle. The support given by the Indonesian people and Government to the struggle of the people of North Kalimantan is very correct indeed and itmust therefore be intensified.

All the above events show clearly that the international situation is favourable to the international forces that oppose imperialism for national independence, democracy, Socialism and peace.

But the imperialists do not want to surrender just like that. The more hard-pressed they become, the more desperate becomes their aggression in order to defend their already shaky colonial positions. They continue with their acts of subversion against the people of Laos,with their attempts to sabotage the realisation of democratic unity of the Laotian people. In South Vietnam, they are continuing to intensify the undeclared colonial war. In the Congo, they are continuing to spread chaos and to suppress the independence movement of the people, as is also the case in Angola and in other parts of Africa. The American imperialists are continuing to spy on Cuba so as to be able to pounce upon it with a military attack. They are continuing to lavish dollars upon the Yugoslav modern revisionists so as to be able to spread their sabotage which is aimed at splitting the international Communist movement and working class movement, to undermine the strength and unity of the Socialist camp and to incapacitate the independence movement of the peoples. The imperialists are concentrating all their energies upon efforts to spirit the unity of the international Communist movement which is the foremost barrier to their criminal plans.

In facing the activities of the modern revisionists, the foremost danger for the international Communist movement and the independence movement of the peoples, our party must unceasingly unmask them wherever and in whatever form they appear. Defeating the anti-Marxist-Leninist revisionists means preserving the purity of Marxism-Leninism and unity in the international Communist movement, the indispensable and basic condition for consolidating the anti-imperialist and peace-loving international front.

In facing the crack that has appeared in the international Communist movement at present, fraternal consultations and discussions are needed between fraternal Parties with mutual respect for the complete sovereignty of each Party on the basis of the Moscow Declaration of 1957 and the Moscow Statement of 1960. The Moscow Statement of 1960, the most important Joint Document for the international Communist movement, states that: “Whenever a Party wants to clear up questions relating to the activities of another fraternal Party, its leadership approaches the leadership of the Patty concerned, if necessary, they hold meetings and consultations."

For the CPI as also for other Communist Parties, the Moscow Declaration and Statement are the most recent and most basic joint documents; theyare today thejoint guide and programme which must be loyally adhered to and implemented by every Marxist-Leninist Party in regulating inter-Party relations and in implementing the universal struggle against imperialism for national independence, democracy, Socialism and peace. Loyalty in practice to the Declaration and Statement is the main yardstick of purity of a Communist Party.

We Indonesian Communists have never believed that, with polemics and mutual recrimination between Marxist-Leninist Parties in front of the imperialists, it will be easier to solve the differences of opinion. A Party Congress that invites other fraternal Parties must be made into a manifestation of the unity of thought and unanimity of resolve of the Communists from various parts of the world to oppose the common enemy, imperialism. In the resolution of the Political Bureau of the CC of our Party adopted on 15th December, 1961, it was dearly stated that our Party took a very correct and important attitude in not attacking the Albanian Workers' Party at the Twenty-Second Congress of the CPSU because in this way we did not join in creating a bad precedent of Communist and Workers' Parties attacking each other in the congress of a Party. With the passing of time, the correctness of this attitude has been proven to be correct and the masses of Party members as well as the working people in our country feel very much indeed how very correct this attitude is.

What we foresaw in 1961, that is, that a bad habit would appear of launching mutual attacks in the congress of a Party, has been proven by the events in the recent congresses of the Communist Party of Bulgaria, the Socialist Workers' Party of Hungary; the Communist Party of Italy, the Communist Patty of Czechoslovakia and the Socialist Unity Party of Germany. These congresses were not manifestations of unanimity of thought and unanimity of resolve of the Communists of the world in the struggle against the common enemy imperialism. On the contrary, although there were some good decisions adopted, the thing about these congresses that sticks in the minds and hearts of the world proletariat is the crack and dispute within the Communist family. And just see how disgustingly the representatives of the Yugoslav revisionists utilised the platform of the Congress of the Communist Party of Italy and the Congress of the Socialist Unity Party of Germany in order to split the international Communist movement.

All the commotion in the international Communist movement during the recent period can lower the prestige of Communists wherever they may be, weaken Communist solidarity on a world scale, make Communists indifferent towards decisions taken by congresses of a fraternal Party, towards the successes of a fraternal Party that as a result they strive less to draw the lessons from fraternal Parties and they are not interested enough in seeing whether a fraternal Party is being successful or unsuccessful. This is a phenomenon within the world Communist movement which Communist leaders in all countries must be thoroughly aware of. Aware of this phenomenon, our Party has in the recent period greatly stressed to its cadres that, despite the differences of opinion with otherParties, we must continue to study enthusiastically from fraternal Parties, study both from their successes as well as their failures. We must stamp out the attitude of indifference towards fraternal Parties that hold a different opinion from us. We must continue to be full of warmth towards Comrades who are of a different opinion from us but who still oppose imperialism, because our foremost task today is to oppose imperialism. However bad a Communist or a Communist Party may be, it is still better than a bourgeois person or party as long as it opposes imperialism.

There are some people who, in connection with the fact that we do not want to take part in all this commotion in the international Communist movement, accuse us of not wanting to solve matters of principle in a Marxist-Leninist way This is too far fetched. The imperialists are also trying to provoke us into joining in the commotion.

We want, we want very much, questions of principle to be solved in a Marxist-Leninist way, and this is why, too, we do not stop for a moment in putting forward our idea that meetings should be held between the Marxist-Leninist Parties of the world; this is why we welcome the statement made by Comrade Khrushchev that the present argument is an argument within a family, and we propose that this argument within a family should be resolved in a family way, too. We also welcome the call made by Comrade Khrushchev for a halt to the polemics between Communist Parties and to the Congress ofa Party being utilised to attack another Party, as he declared on behalf of the CC of the CPSU at the Sixth Congress of the Socialist Unity Party of Germany.

The thing we do not want and the thing to which we shall never agree is solving the differences of opinion in the international Communist movement in accordance with social-democrat or anarchist methods. The social-democrats are accustomed to solving questions, including inner-party affairs, in a liberal way with the result that their followers split up into factions. They have no discipline, they are accustomed to intriguing, they do just whatever they likefor their own advantage or for the advantage of their faction. If this happens among the social-democrats there is of course something good in it but it is not good if it happens among Communists. It is a habit of the anarchists to work without any rules if they enter an organization, they break the rules and cause trouble that is disadvantageous to the people though they think that all the trouble they are making is in accord with the interests of the people. We Communists are accustomed to living a disciplined life, living according to regulations that we consciously draw up ourselves and by which we abide. These regulations already exist in the international Communist movement, the most recent being the Communist Statement of 1960.

Up to the present time and also into the future, our Party's CC is urging the cadres and members of the Party to study the opinions of the fraternal Parties that are in disagreement with each other with the help of material that we are able to obtain. We study these opinions with the aim of drawing lessons from them so as to speed up the victory of the Indonesian Revolution and to strengthen the international Communist movement. The Editorial Board of the "People's Daily" in fact opened up a column on the "International Communist Movement" with the intention of supplying material for consideration regarding the questions that have arisen in the international Communist movement. But this column was stopped when we welcomed the call made by Comrade Khrushchev at the Sixth Congress of the Socialist Unity Party of Germany to stop the polemics and mutual recriminations nations and to calm down the situation in the international Communist movement, so as to be able at the proper time to convene a meeting of Marxist-Leninist Parties of the world.

We hope that all the polemics and mutual recrimination will really stop, both in speeches as well as in articles, both against the Albanian Party of Labour aswell as against other Communist and Workers Parties. We are not naive, but we appeal to the hearts of Communist leaders in all countries who genuinely want to restore harmony in the world Communist family on the basis of the Statement of 81 Communist and Workers' Parties.

This attitude of the CC has been warmly welcomed by the members of our Party because it shows that the CC of the Party is fully convinced of the correctness of its stand, is educating the members to be critical, modest, self-confident and genuine regarding in matter of unity in the international Communist movement.

But we also remind the members of our Party that we certainly must not get drowned in endless discussions about the differences of opinion in the international Communist movement which would mean that we would lose our militancy in opposing imperialism. It is far more important to oppose imperialism itself and its agents than to know what the differences of opinion are between fraternal Parties regarding the most effective way of opposing imperialism. This means that, in discussing the differences of opinion in the international Communist movement, too, we must keep within bounds, for otherwise negligence will emerge in our ranks and only the imperialists and their agents will benefit.

As we stated at our last Congress, the difference of opinion within the international Communist movement is only a parsing phenomenon in a mighty movement of some 90 Marxist-Leninist Parties with approximately 43 million Communist, a movement that leads the Socialist countries and leads a tremendous revolutionary mass movement. The revisionists may go on saying that Marxism is out of date but the fact is that Marxism which is only just over a hundred years old have already exerted, and is exerting is superiority over philosophies that are thousands of years old, is exerting its superiority over all other political and social concepts. This is happening every day and every hour, both on a world scale as well as within our own country.

The 1957 Moscow Declaration correctly points out that the primary danger at this time is revisionism, and the 1960 Moscow Statement charges all Marxist-Leninist Parties to continuously expose and actively struggle against Yugoslav revisionism which is now in a state of dependence upon US imperialist "aid".

As a genuine Marxist-Leninist Party, our Party will continue its struggle against revisionism, both classic as well as modern. To stop opposing revisionism means ceasing to take the path of revolution, it means not seriously struggling against imperialism and the other enemies of the people, and a Party that does such a thing will be abandoned by the masses of the people before it even realises that such a thing has happened.

A Communist Party that is afflicted with the disease of revisionism cannot possibly become strong; on the contrary it will become weaker and weaker, it will more and more lose its spirit of struggle and the splits within it will become worse and worse, it cannot be any other way because revisionism does not mobilise the Communists and the masses of the people to oppose their enemies but gives priority to compromise with the enemies of the people. A Party that does not mobilise itself and does not wage a life-and-death struggle will not be tempered by the fire of revolutionary struggle, such a Party will lose fresh blood, will wilt, will become more and more isolated from the masses and its internal unity will not be steeled and tempered. A Communist Party that does not daringly and militantly struggle will only be capable of giving birth to bureaucrats in Communist garb, whose thoughts are old-fashioned and frozen, and will not give birth to genuine leaders of the people. This is why Indonesian Communists must continue in the brilliant tradition of opposing revisionism that we started right front the very first days of the foundation of the CPI.

Together with opposing revisionism, we have also struggled against dogmatism, both classical and modem, and will continue to do so. For a long time, that is to say ever since the rebirth of our Party in the first years of the second half of this century, we have waged war against classical dogmatism with the result that today our Comrades already understand that it is erroneous to impose ready-made formulas that have been taken from the classical writings of Marxism-Leninism without taking into account the concrete situation of the Indonesian Revolution. During this recent period we have successfully waged war against modern dogmatism, namely an uncritical attitude toward the experience, conclusions and programmes of fraternal Parties at this time. Of course, we must study the most recent experiences, conclusions and programmes of fraternal Party, but the purpose is not uncritically and stupidly or irresponsibly to make them the possession of our own Party. Such an attitude, this modern dogmatist attitude, would easily divorce our Party from the masses and the nation, would shut out the possibility for our Party to become the champion defender of the interest of the masses and the nation.

Revisionism, both classical and modern, and dogmatism, both classical and modern, are both subjectivism and therefore they must both be opposed. Both of them are dangerous, but the most dangerous of all is the one that we are not opposing. The choice is not revisionism or dogmatism, just as there is no choice between fish poison and snake poison. There is no choice between the two and this is why they must be attacked and stormed all the time. This is why it is a mistake to thinkthat those who oppose revisionism are dogmatists and those who oppose dogmatism are revisionist. In fact it is very likely indeed that the modern revisionists are at one and the same time modern dogmatists because both of them have the same thing as their starting point, that is, subjectivism.

Indonesian Communists must continuously oppose revisionism and dogmatism, both classical and modern, they must ceaselessly make themselves Communists who firmly uphold the principles of Marxism-Leninism but are flexible in applying these principles. That is indeed how it must be because it is not possible for there being flexibility in applying principles if the principles are not firmly upheld and there is no use firmly upholding principles if one is not able to apply these principles flexibly. Flexibility without upholding principles means opportunism, while upholding principles without flexibility means sectarianism. Neither opportunism nor sectarianism must be allowed to have a place in the ranks of Communists.

Indonesian Communists will continue unceasingly to struggle for the unanimity and for the high standing of the international Communist movement, to become active participants in this mighty movement, to practise its proletarian internationalism in words and in deeds because they are convinced that a strong international Communist movement means a strong world people's movement in opposing imperialism for national independence, for democracy, peace, Socialism and Communism. Indonesian Communists are patriots and proletarian internationalist at one and the same time. As patriots, Indonesian Communists will continue the struggle to apply the principles of Marxism-Leninism to the concrete conditions in our country which we refer to in other words as ''Indonesianising Marxism-Leninism", and on this basis, we creatively determine the policy, tactics, form, of struggle and form of organization of our Party.

This is the basic guarantee for ever-growing unity between the Party on the one hand and the masses and the nation on the other.

For Indonesia today there exists a joint platform between the people and the government in pursuing a foreign policy based on the concept of the confrontation between the two basic forces in the world, that is to say, the new emerging forces and the old established forces. This matter is indeed the basic question in international relations at this time and this is why it is necessary to have a deep understanding of it and to develop it creatively.

Developments that take place, in the new emerging forces today are developments of the forces which go to make it up, that is to say, developments in the Socialist camp, in the anti-imperialist and anti-colonial newly independent countries as well as in the other progressive forces throughout the world. The developments of these new forces are pressing the old established forces, that is to say, the imperialist countries, colonialism and no-colonialism as well as all the reactionary forces throughout the world.

Every growth that takes place in one of the three new forces at one and the same time represents a growth of the entire new forces, and must therefore be supported and assisted. The anti-Malaysia and anti-British uprising of the people of North Kalimantan to achieve national independence is also a development of one of the new emerging forces and we must therefore support and help it with all our strength. We must help it as a matter of principle, to borrow the words of Bung Karno. The same applies, too, to victories in building Socialism and Communism in the Socialist countries, to the release of Manolis Glezos, to the struggle for the release from prison of Mexican, Portuguese and Spanish patriots, to the anti-feodal uprising-in Yemen, to the armed anti-Yankee imperialist struggle of the Venezuelan people, to the struggle to smash the Tsombe clique and free Antoine Gizenga in the Congo, to victory after victory being scored in South Vietnam and South Korea, to the bitter resistance of the Cuban people against United States aggression and invasion, to the workers strikes in the United States, Italy, France, Japan, Malaya, and so on.

In face of these heavy tasks, the Indonesian people must never for a moment forget that the imperialists and counter-revolutionaries will not remain idle. Keen vigilance is needed very much so as to be able to recognise and defeat the conspiracies of the imperialists and the reactionaries who always want to split the new emerging forces and set them against each other.

For this purpose, President Sukarno idea for the holding of an Asian-African Conference during the course of this year is very correct and we fully support it. Asian-African unity is needed more than ever before so as to face up to the intrigue of the imperialists who want to stick the needle of dissension into the body of Asian-African solidarity through the "non-committed" policy of Yugoslavia andIndia. This is why we can be sure that the idea of holding a Second Asian-African Conference will certainly encounter serious obstacle from the Yugoslav revisionists who experienced defeat in their attempt tosplit the six countries that participated in the Colombo Conference on the India-China border question.

The India-China border question is a concrete example of American imperialist aggression. The policy of expansionism was launched by Nehru against People's China for the purpose of begging for the dollars he so badly needs to surmount economic bankruptcy at home, a thing that is in conformity with American plans for aggression, which therefore gives practical, unlimited assistance. In actual fact. Nehru has united himself with aggressive imperialist policy and in this way has betrayed the Ten Principles of Bandung which he himself participated in drawing up, he has betrayed the new emerging force. But it is a great pity that some of the progressives in India have been taken in by the poisonous chauvinist incitements of Nehru with the result that they support him and in this way are helping the implementation of Nehru's expansionist policy, Nehru and his group would not dare to launch an aggression against the Socialist state of People's China if the ranks of the Indian progressives were not split and if they opposed him. Were Nehru to launch aggression in such conditions, the Indian progressive movement would "reap a great harvest" because the people do not want to wage war against Socialism.

Recent political experiences show that, more than ever before, the most basic task of all is to strengthen thenew emerging forces, to build powerful unity between the anti-imperialist and peace-loving forces, nationally as well as internationally, to oppose and defeat imperialism that is headed by the United States of America, to frustrate every one of their war plans and colonial aggressions.

Marxist-Leninist consciousness and ideology must be raised and proletarian organization strengthened so to be able more skilfully and more ably to mobilise and unite the masses of the people to set forth and struggle for anti-imperialist demands, vis-a-vis the Government and in the international arena.

The Party must more skilfully mobilise the people to formulate correct public opinion regarding various international problems that must be fought for by the Government and by the people's organizations as well as in international forums, such as in the Asian-African Writers Conference, the Asian-African People's Solidarity Council Economic Conference, the Asian-African Conference of Jurists, the Asian-African People's Solidarity Council Conference in Tanganyika, and so on.

The Party must make an active contribution to the success of the forthcoming Asian-African Journalists' Conference. The work in the Friendship Leagues must also be intensified.

The Party must make the people direct as well as indirect creators of Indonesia's foreign policy. This public opinion of the people is the only stable foundation for the Republic of Indonesia to be able to play a progressive role in the international political arena.

We welcome and are ready to do everything we possibly can to help the Government’s policy of confrontation towards Tengku Abdul Rahman, Malayan Prime Minister, who without any sense of decency and shamelessly wants to implement the imperialist policy of encirclement against Indonesia through the Malaysia project. As long as the Malaysia project is not dropped altogether, Indonesia will be entitled to do everything it can to defend itself, and this is not only in accord with the interests of the Indonesian people but also fully accords with the interests of the peoples of Malaya, Singapore, Sarawak, Brunei and Sabah because Malaysia is nothing but replacement of old slave chains for new and more deceitful chains.

In order to ensure that Indonesia is better able to play the role that has been entrusted to it by history, there must not be any dualism between the line of foreign-policy as laid down by President Sukarno on the one band and the government apparatus that has to implement that line on the other. No wonder people find it so confusing when President Sukarno clearly puts the Socialist camp and all anti-imperialist forces into the ranks of the new emerging forces and puts all imperialists and all its hangers-on as well as all the dark, anti-independence forces into the old established forces, but there still are individuals, in the government apparatus who bring in the influence of West German and Japanese neo-colonialism, who bring in the so-called “peace corps" of the US, and the American-styled "economic stabilisation programme", there still are individuals who flirt with and want to establish close friendly relations with the anti-RI clique in power in South Korea, there still are people who vacillate about placing appropriate representatives offices of the Republic of Indonesia in Havana, Pyongyang, Berlin, and there are others who are doing all manners of things.

A progressive foreign policy must be in the hands of progressives, not in the hands of "persons whose brains and hearts are rusty and are unable to adjust themselves to the Manipol”, to borrow the words of President Sukarno in his Djarek speech. The progressives we have in mind are progressives who are daring and once again daring, daring enough to oppose the criminal intrigues of the imperialists and daring enough to take new paths which may appear to be more difficult and to involve more risks but which are better for the people, the country and the development of the new forces that are emerging in the world.


We call 1951 the year of the "rebirth" of our Party because it was in that year, in the month of April, that the Plenary Session of the Central Committee was held which succeeded in drafting a Marxist-Leninist CPI Constitution. But this Constitution was only endorsed at the Fifth National Congress which was held in March, 1954.  At the same time as endorsing the Constitution, that Congress also answered all important andbasic questions of the Indonesian revolution and set two urgent tasks; (1) to consolidate the united national front, and (2) to continue to build the Party.

Thus, in the almost 12 years since April, 1951, or in the almost 9 years since March, 1954, we have wrestled night and day to consolidate the united national front and to build the Party. From the hard work we have put in during the last 10 years or so, we can see the results, namely: (1) there is now a broad united national front that is based on the alliance of workers and peasant; (2) there is now a Communist Patty of Indonesia which, at the start of this great work had a membership of only 10,000 but which is now more than 2 million strong, which at the start covered only Java and a small part of Sumatera but which is now a mass Party that covers the entire country and that is consolidated politically, ideologically and organisationally. We can say that the Party is already consolidated politically, ideologically and organisationally because this is indeed the case. Both, inits attitude towards domestic and foreign policy as well as in its attitude towards the international Communist movement, there is in our Party a unanimity of opinion. Besides tins, there are more than 1.5 million Communist youths who are members of the People's Youth, the loyal assistant of our Party and who are also studying Marxism-Leninism. This means that, adding these two figures together, there are now in Indonesia more than three-and-a-half million Communists and Communist youths. All this, both the consolidation of the national front and the building of the Party, is a great accomplishment.

To mention this accomplishment is in no way to be conceited about it or to lose our bearings. In the first place, conceit and losing bearings are not characteristics of Communists. In the second place there is no reason to be conceited or lose our bearings because the united front which we now possess does not yet have a strong enough basis, we must further intensify the alliance of workers and peasants by unceasingly improving and advancing the work among the peasants, whilst the more than a million members of the Party today is not yet enough to be able to lead the people in a country that is the same in length as the distance from Britain to the Caucasus and that comprises 3,000 islands. Although the Party is already consolidated politically, ideologically and organisationally, all this is not something absolute. There is still much that we have to do in order to further consolidate it, so as in facing up to any situation to be able to still guarantee unanimity of thought, resolve and action in the Party.

We cannot possibly be conceited or lose our bearing because we are of the opinion that whatever we do for and give to the proletariat must be of the best and the most perfect, so that however good our work may be, it cannot possibly be good enough for the proletariat. And what is the meaning of all that we have done if we are not yet capable of liberating the proletariat and the entire working people from oppression and exploitation.

But we must appraise these accomplishments so that every one of our members fully realises that if we work hard with Marxism-Leninism as the guide, our work will certainly succeed. Thus although we have grown some ten years older, although there are now more Comrades, who have gone grey, whose eyes are not serving them so well so that they have to wear spectacles, we have no regrets, because we have used these ten years of our lives well, we have made ourselves useful tothe proletariat and that revolution, although we all feel not satisfied yet with what we have been able to do. The question now is how to use the remaining years of our lives as well as possible, how to use them better than in the past.

If we say that 1951 was the year of the "rebirth" of our Party, this does not mean that we belittle the activities of our Comrades, both those who have already passed away as well as those still living, and the activities of ourselves prior to 1951. We deeply appreciate the activities prior to 1951. For example, we hold in high-esteem the services of those Comrades who took part in the 1926 revolt, the resistance to Japanese militarism, the August 19r5 Revolution and so on. Without those Comrades, there would not be a revolutionary movement and a CPI as we see it today. We speak about "rebirth" because itwas at that time that our Party came to the fore again after having suffered blow during the white terror of the Hatta & Co clique, and it came to the fore with the resolve and the preparation to build a genuine Marxist-Leninist Party.

In the discussion of Patty affairs this time, I will not refer to all aspects of Party building, and neither shall I mention all aspects of mass work because there are clear guidelines about these two questions in the documents of the Sixth and Seventh Congresses and the directives that have been issued by the Secretariat of the GC.

Regarding the building of the Party, I shall only refer to the question of improving the method of leadership and the basic questions of the Four-Year Plan on Culture, Ideology and Organizations. With regard to improving the work among the national businessmen, among the peasants and the detailed targets of the Four-Year Plan, Comrade Lukman, Comrade Ismail Bakri and Comrade Djokosudjono will respectively present material.

In the building of the Party, we place very great importance on expanding membership and organization, but we consider as being even more important Marxist-Leninist education for those who are already in, the Party. Our standpoint is formulated as follows: "Building the organization is important, but building ideology is even more important" We must continue firmly to uphold this standpoint in continuing with the building of the Party.

In building the Party, we place very great importance on working with a Plan. In the first years of the re-building of the Party, we worked with plans that were not many-sided and that were short-term, a Three-Month Plan, a Six-Month Plan or a One-Year Plan, but then later we worked with plans that were longer and were many-sided. Up to the present time we have completed the First Three-Year Plan and, in a short while, shall be completing the Second Three-Year Plan. Next April, the Second Three Year Plan will be dosed and in the middle of this year, a National Conference will be held to examine the results of the implementation of the Second Three-Year Plan and to establish a new Plan. At the present time, a "final-spurt movement" is under way, in order to complete or surpass the targets of the Second Three-Year Plan, with the Four Increases as the core: (1)increase the number of Political Schools and People's Courses; (2) increase the members of the Party and the mass organizations; (3) increase the number of candidate members becoming members; (4) increase the collection of fees.

Both in order to complete the "final-spurt movement" successfully as well as to carry out the new Plan successfully, thequestion of the method of leadership must be given full attention. Many Comrades are very correct in thinking that the success of the "final-spurt movement" will open wide the way to the execution of the new Plan, and this success depends greatly on our method of leadership.

The Seventh National Congress among other things drew the conclusion that, as is the case with implementing other Party tasks, so too in the execution of the Plan: "The decisive thing and the thing which must therefore be firmly held is the method of leadership as laid down by the Sixth Congress, namely, welding general appeals with concrete directives as well as welding the leadership with the masses” and that "the method of leadership must always be linked up with a correct style of work, namely, welding theory with practice; close links with the masses and undertaking self-criticism."

Our Party regards the question of the method of leadership as being of such great importance that theSeventh National Congress decided that the method of leadership should genuinely be put into practice and taught at all levels of Party Schools, besides being material of discussion for Committees. This is not yet being done evenly everywhere; where it is being done well, the Plan and all Party work also go well, but where it is not being done or where it is not being done well, the Plan and all Party work do not proceed well either.

While there are some regions where the method of leadership is not yet being carried out, there are also regions which have held special conferences to sum up the experiences in carrying out the method ofleadership and to undertake movements to improve the method of leadership.

There are two methods that we must practise in performing every task, namely: (1) linking the general with the specific, or as we often say, welding general appeals with concrete directives; (2) linking the leadership with the members, or as we often say: welding the leadership with the masses. We cannot possibly mobilize the members for a specific task if we do not issue general appeals to all concerned. But the leaders cannot test the correctness of these general appeals or develop them and they can become completely useless if they are not directly brought in the implementation of these tasks down to the details in several organization up to the point where specific results have been achieved and then use the experiences that have just been gained to lead the work.

The Seventh Congress decided that we must execute the Second Three-Year Plan with the Four Increases as the core. These Four Increases as the core are correct, but many questions of detail arise out of them. Many details can arise in the question of increasing the Political Schools and People’s Courses, and also in the question of increasing the membership of the Party and the mass organization of raising candidate members to members and of increasing the collection of fees.

For leaders who want to achieve success and who really want to take part in the execution of the Plan with these Four Increases as the cores there is no other way than to "go down", to take part in discussion in two or three Party organizations, Groups or Sub-Section Committees, to carry out thorough investigation so that they have contact with matters of detail in the lower organizations regarding the method of implementing the core of Four Increases; then, take some typical members and study thoroughly their political ideas, their outlook, their attitude towards study and the results they have achieved; then give direct guidance to leaders of the units in question, to the Group or the Sub-Section Committee, so as to help them solve the practical questions thatarise in their respective units. This is also a method of giving leadership while studying to lead.

There is not a single leader who can give general appeals to unitsbelow himif he himself does not have concrete or actual experience in certain units. The method of gaining concrete experiences in certain questions or with certain individuals in certain units in order to give guidance or issue general appeals must become a habit in our Party. Herein too lies the significance of the provision we adopted some time ago making it compulsory for members of the CC and the Committees, beneath it to be responsible for the life of the Group or the Sub-Section Committee at the place where they live or nearby. In this way, the leader of our Party will not be divorced from the life and activities of the masses of the members and the masses of the people. But, I should state here that there are still many Committee members who are not yet carrying out this most important task.

The fact that the welding of a general appeal with concrete directives is not yet being consistently and evenly carried out has the result that we do not speedily improve the quality of our leadership. This is why this method of leadership must be spread out and its execution controlled better so that all leaders at all levels take part in implementing this. Only in this way shall we be able to liquidate subjective and bureaucratic methods of work, and to replace them by objective, scientific Marxist leadership.

The second question regarding the method of leadership is the question of welding the leadership with the common members, with the members, with the masses. Experience so far shows that in order for all Party work to succeed, including execution of the Plan, there must be a leadership group or a Committee consisting of several activists who are united around the leader (the head of the group, the Secretary, and so on); the unit in question and these activists (the members of the Working Committee, the members of the Plenary Committee, the members of the Sections, the members of fraction, and so on) must maintain close ties between the leadership and those being led, who take part in Party work, including implementation, of the Plan. The activities of this leadership group will have no meaning at all if it is not closely united with those whom it is leading. Thus, there must be a welding between the leadership and the members of the masses being led. Conversely, the activity of the masses will not last long and will not be able to advance in the right direction and rise to higher levels if it is not organised by a leadership group.

As is the case among the people, so too among Party members, there are three groups, those who are active, those who are half-and-half and those who are passing. The leadership must understand this very well and must be clever at drawing the small number of active persons into the leadership group by making them members of the Committee, members of the section, members of the "group of activists", members of the fractions, and so on, and basing themselves on these people, to push forward the activities of those who are still half-and-half and strive to get the guarantee of support of those who are passive. It is not a simple matter for a leadership group that is really united and firmly linked with the members to be born; it is born out of the struggle of the masses. Without being tempered in a mass struggle, it is not possible for a leadership that is really united and closely linked with the masses to emerge.

Sometimes, a leadership group must be changed as the struggle intensifies because there are members of the leadership group who may no longer be able to keep up with the developments and who will become obstacles to development. In order to ensure that the Party and the masses are not harmed, such changes must be made in good time, but not hurriedly and carelessly, and they must also not be too late. Activists who emerge in the course of a mass struggle, including in the course of the execution of the Plan, must be promoted to replace those in the leadership group who cannot keep up with the developments or who have become morally corrupted. According to experience, in the implementation of the Plan and also in the implementation of' other work, the basic reason for failure that has occurred in some places and organizations is that there is not a healthy leadership group continuously, that is firmly united and closely linked with the members, with the masses it is leading.

Our Party has for quite some time been of the opinion that correct leadership is leadership that receives "from the masses" and then gives "to the masses", leadership that upholds the principle "from the masses to the masses".But many cadres still do not have a clear understanding of this, so that there is still much subjective leadership that is not understood by the masses. Receiving "from the masses" means that we Communists must listen to the opinions of the masses, which are scattered and unsystematic. It is our duty to gather these opinions together, to examine them and to put them into systematic order, in brief to draw up a scientific conclusion of these opinions. This conclusion is then explained and disseminated among the masses so that the masses consider the concepts that we put forward through these conclusions as their own concepts, not as something completely strange, so that the masses firmly support these concepts and translate them into actions. In this way, the extent to which the concepts we put forward are correct will be tested. Based on the. experience of this practice, we once again sum up the opinions of the masses, we explain these conclusions and disseminate them again so that they really get the support of the masses. And so it goes on until our concepts, with the passing of time, more and more approach the truth, become more important and more significant with every repetition of the process.

So, the basic method in leadership is "from the masses to the masses”. In carrying out this basic method, the leadership must implement the method of combining a general appeal with concrete directives which ispart of this basic method of"from the masses to the masses". The better we grasp this method the better too will be the leadership that we give, the more welded will the leadership be with the masses.

The above explanation makes it clear that it is completely erroneous for some cadres, in the execution of the Plan, to attach very great importance to technical questions but to pay no heed to the method of leadership. The question of implementing the Plan, and also the. question of implementing all Party tasks, is not in the first place a technical question, but first and foremost a question of the method of leadership. Therefore, while implementing the "final-spurt movement" of the Second Three-Year Plan and at the beginning of the new Plan, it is necessary to have a movement to improve the method of leadership.

Aspart of the movement to improve the method of leadership, importance mast be attached to the question of bringing about a total integration of the Party Programme and every Party policy, first of all with every member and then with the masses of the people. This integration is extremely important because it is only if this is accomplished that the entire membership and the masses of the people can be aroused to struggle because they know the perspective of their struggle and know too the immediate and practical aim of the struggle. The execution of the Plan is an important part of our efforts to achieve the objective of our struggle. This objective of the Plan, that is to say, sewing the Party Programme and policy, must be explained as clearly as possible to all members, as also the task of every member in the execution of the Plan must be made as clear as possible. After the objective of the Plan and the tasks of each member in the execution of the Plan are clear to all members, a movement to "go down" is then held to implement these two methods, that is: (1) welding general appeals with concrete directives, and (2) welding the leadership with the masses. In the framework of improving this method of leadership, conferences or working meetings must be held to sum up the results of the ''going down" movement. These results must then be taken down again or "given to the masses" again to test whether they are correct. Then a "going down" movement must be held again, more conferences or working 'meetings must beheld to draw the conclusions, and the conclusions are again taken down, and so on for the whole time the Plan is in progress. But it must always be remembered that, as long as the Plan is in progress, other questions outside the Plan may well arise which will also require a "going down”. In such circumstances, these questions outside the Plan should be linked up with the work of the Plan and should not become an obstacle to the implementation of the plan; on the contrary, they should be animpulse to it.

Improving the method of leadership is the key to success or failure of our new Plan. What is our new Plan? The new Plan the implementation of which is to commence in the middle of this year is a Four-Year Plan on Culture, Ideology and Organization.

The core of this Plan on Culture, Ideology and Organization does not differ from the Second Three-Year Plan, namely Marxist-Leninist education and organization. In this new Plan, we divide the education part into two: education connected with raising the level of culture (general knowledge and specialised knowledge) of the cadres and education connected with strengthening the ideology of the cadres. This means too that our Party is taking a more active part in the cultural revolution.

Bringing Culture education to the fore in the Four-Year Plan does not mean that the ideological aspect of our Plan is being pushed into the background. That is not the case at all. Not only because Party Schools are to be increased and intensified, but the Culture aspect of the Plan is not separated from education regarding Marxist-Leninist theory.

The present stage of the struggle demands of our Party that, at this very time, it should educate Communist cadres who have general and specialised knowledge (who have a certain speciality), educate cadres tobecome "Communist and expert"

In the framework of executing the Culture aspect of the Four-Year Plan, our Party must organise a large-scale movement to raise the cultural level of the working people, including the Communists, from anti-illiteracy activities, general education at the elementary school level, up to middle-school education, specialised education about the arts and for various occupations and up to various academy and faculty branches.

In the framework of the Plan on Culture, all Central and Provincial level CPI cadres must complete a three-year academy course, cadres at the kabupaten (district) level must complete a course at the People's University which gives knowledge of the level of senior middle school, cadres at the ketjamatan (sub-district) level must complete a course at the Balai Pengobatan Rakjat (House of People's Science) which gives knowledge of the lower middle school level, and village cadres must complete a course at the Panti Pengetahuan Rakyat (League of People's Sciences) which gives education of the elementary school level. Illiteracy must he wiped out among Communists. This Plan will be executed by setting up education organs in conformity with local capabilities, by creating a network of libraries and it will be helped by written courses to be organised by Committees in question.

This concept of the Plan on Culture has already been sent out to some Central and Provincial cadres. In general, it has been very enthusiastically welcomed. This is not surprising because the spirit to study is indeed very strong in our Party. Some Comrades ask whether we shall be capable of carrying out such a tremendous project, where shall we get the teachers from and where shall we get the money from? It is indeed a tremendous project and requires many teachers and much money. We must indeed make many teachers available, but we must realise that up to now, many Communist intellectuals and many non-Communist progressive intellectuals are willing to use their science to the service of the working people but they do not know where to do it, and indeed the places in which to do this are very limited. Of course, we have to find the money to finance the schools that we are going to set up, but we must realise that up to now, many of our Comrades are spending money on the purchase of books, are paying money for courses or schools so as to increase their knowledge from bourgeois book and educational institutes. Apart from that, it is quite a normal thing for us to carry out. campaign to collect money for a particular activity that conforms with the interests of the working people and that is therefore supported by the workingpeople. Furthermore, we have already been doing the things that are set forth inthis Plan on Culture, but not systematically, not well led and not intensively. Now we are going to systematize them, lead them and carry them out intensively.

Regarding Ideology education in this Four-Year Plan, we must continue with what we have done during the First, and Second Three-Year Plans, but at a greater speed than formerly, and paying special attention to the education of teachers for Party Schools at all levels and to the subject of philosophy. There should also be special attention to ideological education for Communist writers and artists so that they possess a firm proletarian standpoint and a correct class attitude toward various concrete problems so as to achieve total integration between Communist artists and writers and the masses of the people. Marxism should be studied not only inside the Party but also by progressive people outside the Party with the help of the Party. Gradually, Marxism should become not only the possession of Communists or the possession of the proletariat alone but it should also become the possession of the nation.

Regarding the Organization aspect of the Four-Year Plan, we must multiply the number of Party members and the number of members of the mass organizations. The stress in the expansion of membership must beplaced on drawing as many people as possible from among the peasants, the women and from the intellectuals into the Party, without reducing the activities to draw in new members from the ranks of the workers, the fishermen, the youth, the students, the government officials, the urban poor, and so on. The composition of membership must also be improved from the point of view of nationality and citizens of foreign extraction.

Party work among the peasants must be further improved, research in the villages must be further perfected, appointment and promotion as well as education of peasant cadres must be given special attention.

The Sub-Section Committees must be made into the real key to the success of the execution of the Plan. Periodic discussions at all levels of Party organizations must be further enlivened, discussions about theory, politics, Party instructions and mass work. Mass organization fraction must be managed better and the method of leadership must also be implemented in the revolutionary mass organizations.

This in brief is what needs to be said about the method of leadership and about some basic aspects of the Plan on Culture, Ideology and Organization.

Once again I should like to state that we must achieve success in the "final-spurt movement" so as to fulfil or surpass the targets of the Second Three-Year Plan. For this we must arouse a high spirit throughout the Party. The success of this "final-spurt movement” will open wide the road to success of the Four-Year Plan. Both for the sake of the success of the "final-spurt movement" and for the success of the Four-Year Plan, we must consistently practise a correct method of leadership. In the implementation of the "final-spurt movement'' and in the implementation of the Four-Year Plan, too, we must work with a great spirit of daring, the daring to face all obstacles and the daring to sweep aside the obstacles that stand in our way, in keeping with the "Five Mores” line of the Seventh National Congress.

The time has now come for me to conclude this Political Report.

We have surveyed and established the domestic tasks, the international tasks, including the tasks in the international Communist movement, and the tasks of continuing the building of the Party. We emphasised the importance of daring in the implementation of these tasks.

Yes, indeed, today enough has been said about progressive internal and foreign policy concepts. We already possess the organisational apparatus to put these progressive concepts into practice, that is to say, the Republic of Indonesia, the organization of the National Front, and the people's organizations. What is needed now is daring, daring and yet again daring from all those who regard themselves a revolutionaries and who want to change the present situation into something better for the people,

In order to defend the interests of the people, to create a new Indonesia, we call upon all our friends, the non-Communist revolutionaries, to be more daring to tackle the economic difficulties, by giving priority to the interests of the majority, that is to say, the working people, and sacrificing the interests of the minority, that is to say, the landlords, the bureaucrat-capitalists and the compradors, by putting an end to the power of the big exploiters both in the towns and in the countryside, by creating a new political power, a power that is in conformity, that is Gotong-Royong with NASAKOM as the fulcrum as is being demanded by the people more and more clamorously today.

Let us more daringly carry out the struggle against the imperialists who are headed by the American imperialists, the number one and most dangerous enemy, the most aggressive and brazen enemy of the Indonesian people!

Let us strengthen the international Communist movement as the guarantee for strengthening the anti-imperialist and peace-loving international front!

Let us with a more daring spirit resist all obstacles in the way of continuing to build a Communist Party of Indonesia that is broader and more consolidated, whose cadres are skilful, daring and cultured.

Let us do all this with the Three Good's: good in work, good in study and good in morals!

Continue forward with the spirit of "vivere pericoloso", the spirit of daring to skirt danger!

Daring, daring, once again daring!