Page:Joseph Davies Memorandum regarding Military Strength of the Soviet Union.djvu/8

 the latest scientific methods are making satisfactory progress.

21. Under the socialist economy existing in the Soviet Union five elements are of great importance in planning the industrial structure which must support any war effort. These five elements are food, munitions, transportation, and to a lesser extent clothing and housing. Since industry is not privately controlled, the question of finance is not of the same relative importance in the industrial plans of the Soviet Union as it is in other nations. Manpower presents the important problem of industrial training, but no problem of actual manpower shortage exists. The morale factor is important, but steps already taken by the government to control public thought and mold public opinion appear to be effective.

22. Of the five questions noted above, that of food has been solved by the practically complete collectivization of agriculture. This step insures to the government a greater amount of control over both the production and distribution of food products than would be practicable in the Soviet Union under any other system. The munitions question has been met by the creation of a separate commissariat of munitions which controls all industrial activities to army supply and which guarantees to the munitions industry first priority and if necessary monopoly control over raw materials and -8-