detailed
directives concerning the work of the enterprises--contrary to the
announced party policy of loosening central controls. Confusion
prevailed about the relationships between management, management
committees, and higher economic bodies.

There is no evidence on the effectiveness of the supplemental party
decision of May 1970 in resolving the problems besetting the functioning
of the management committees. A new law on the organization and
management of state enterprises and institutions was passed by the
General Assembly toward the end of 1971, but information on the
provisions of that law was not available in early 1972.

Another new element in the management of enterprises is the general
assembly of employees, introduced in 1968 along with the management
committees in accordance with the principles of collective management
and socialist democracy. Adequate legislation to formalize the new
institution had not been passed by late 1971, but an appropriate
provision may have been included in the new law on industrial
organization.

As described by a high government official, the general assembly of
employees or, in the case of large enterprises, of employee
representatives is a forum that will assure effective participation by
workers and specialists in the organization and management of the
economy and in decisionmaking concerning the fulfillment of enterprise
plans. General assemblies are supposed to exercise control over the
activities of management committees. Their authority extends beyond the
discussion of problems and evaluation of performance to recommending and
adopting decisions.

General assemblies are convened twice a year. On these occasions the
enterprise management committee must present to the assembly reports on
the committee's activities, on the results of enterprise operations, and
on the fulfillment by the enterprise of its economic and social
obligations. Together with the trade union committee of the enterprise,
the management committee must also present to the assembly for
discussion and approval the draft of a new collective contract listing
mutual obligations of the management committee and of the employees.
Decisions reached by the general assembly are obligatory for the
management committee. Decisions on measures that require action by
higher authorities must be handled by the relevant bodies responsibly
and expeditiously.

Representatives of superior economic organs, including th