Exploit the Potential of Enterprises and Speed up the Circulation of Materiel

A great deal of capital is required for socialist modernization. Where are these funds to come from? One source is external finance. However, this entails repayment of principal as well as interest, and owing to the limitations of one's ability to repay, the amount of external funds that can be borrowed is greatly limited. The basic way out of this is to rely on oneself and to exploit one's own internal potential. One source of internal potential lies in speeding up the circulation of funds. The total fixed assets, liquid assets, and the amounts earmarked for unfinished projects in basic construction is very great in our country. If we can raise the usage ratio of fixed assets by 10 percent, and the circulation rate of liquid funds also by 10 percent, and throw unfinished basic construction projects into production 10 percent faster, the funds so tapped will be more than twice as much as the state investments this year. We have a large portion of fixed assets that has not been fully utilized. The investment tied up in unfinished basic construction projects amounts to four times of this year's [state] investment. Circulating capital for industry turns over barely three times a year, whereas it reached five times in 1966. All of this demonstrates that we have immense potential.