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and the fight for peace; (3) End want, for a higher standard of living:
(4) Cultural--education, mass communications media, science and the arts;
(5) The defense and oxtension of democracy; (6) The fight against monopoly;
(7) Labor and its allies--trade union movement, Negro people, farmers,
middle strata, (8) Political action and the anti-monopoly coalition govern-
ment, (9) The transition to socialism and the socialist potential, (10) Role
of the Party. In the working out of the draft, the order may be changed
considerably. The draft program questions should be ready by the end of
May or the first week in June. They will be submitted to members of the NC
and other qualified people for comment, suggestions and expression of
interest in working on a specified phase.

2. On the basis of these comments and suggestions, the Program Committee is to prepare an Analytic Outline, in which a basic approach is already incorporated, explicitly or implicitly, wherever possible, while controversial questions are raised in provisional form. It is hoped to have this ready about Labor Day for comment and public discussion.

3. The organization of special study and research on the program questions is to begin immediately, involving existing Party commissions (like the Negro and Economic), specially qualified individuals, and all those able to con tribute. While the Program Committee will have to bear a special responsibility, the burden of this work should not be restricted to the Committee members, nor to the New York area. Special efforts have to be made to involve people in many parts of the country.

4. As material of substance becomes available on key questions of the program it should be published for comment and discussion. It is proposed to set aside a special section of Political Affairs for this purpose, under the supervision of the Program Committee or a subcommittee designated by it.

5. The Draft Program Committee should consist of members able to contribute to the formulation of program and willing to take special responsibility for its proparation. Its function is to prepare a draft program, for submission to the National Committee which has the responsibility for passing on it, and submitting it to the Party for discussion and final action at a Party Conven tion. The resident members of the Draft Program Committee shall meet regularly, organize and guide the work of preparation, consult with the nonresident members, and meet together with them whenever possiblo.

ACTION ON THE REPORT BY THE NEC

1. A general consensus of opinion was recorded that the report provides a basis for boginning systematic work on program.

2. Decided to present the report to members of the NC and others to be involved in program preparation, for information and comment. The question of publioation of the report was left to the Resident Program Committee.

3. Approved the roommendations of the Initiating Committee for work on the program.

4. Designated a Draft Program Committee, consisting of:

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(Please address all comment to Draft Program Committee, 28 West 26th Street,

Now York 10, N. Y. )

PRUSSION EXHIBIT NO. 3

PRESS CONFERENCE

OCT. 27th & 28th, 1956

Following is an abridged version of report by Al Richmond, on behalf of State Board and the management committee:

HISTORIC BACKGROUND

ORIGIN: Initial suggestion for launching daily paper on Pacific Coast oame from national committee in early 1937. Proposal was enthusiastically adopted at a California conference. National committee envisioned chain of three daily papers ir New York, Chicago and California. (Chicago paper was launched shortly after The People's World, but gave up the ghost after a year's publication.)

SITUATION IN 1937: Conditions were favorable for launching daily because:

1. There was the militant upsurge of the CIO movement in California, with Left-maritime unions in the van.

2.

New Deal movement in California wąs nearing its high tide (resulting in election of Olson-Patterson ticket in 1938)

3. Party had great prestige and influence in labor movement and progressive political currents.

THE EARLY DAYS

The paper enlisted considerable official labor support, including AFL and CIO unions.

Quite a number of New Deal political figures some quite far from the Left participated in various activities on the paper's behalf.

Paper played a vital, generally recognized role in such mass movements as 1938 elections, last stages of free-Mooney fight, strikes and organizing drives.

The paper objectively achieved a united front character because a united front did exist, in which the party and the Left generally were recognized and active components.

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To a greater or lesser extent, depending on turns in the political situation, the paper retained this character into the early postwar years.

COLD WAR

With the onset of the cold war and the attendant repressive hysteria, coupled with our own sectarian errors, the Party became increasingly isolated, and so did the paper.

Official labor support declined to the vanishing point, as did expressions of support from progressive political figures. The united front character of the paper diminished, and was ultimately destroyed because in life the many united front relationships of the party and the Left had ceased to exist.

Situation became more acute after outbreak of the Korean war, especially after decisions made around the events of June, 1951.

The State Board adopted a policy of a determined fight to maintain the daily under those circumstances because:

1. The paper remained as the sole consistent medium for public expression of our views.

2. The paper represented a principal toehold on a legal status.

3. Abandorment of this position, under enemy attack, would have grave

consequences on morale of party and movemont.

4. The paper afforded a channel for exercising leadership when other "normal" ohannels wero disrupted or clogged because of the system of leadership established in party.

5. At the onset of this period we still had a relatively adequate circulation base. (In October, 1950, we published 8,000 daily papers and a shade less than 17,000 on the weekend.)

As a negative development in this period, the pressures resulting from the faot that the paper increasingly became a primary medium for exercising leadership in the narrow inner sense tended still further to give the paper the more pronounced stamp of a party organ.

Nonetheless, paper played considerable role in such mass activity as was carried on by the Left in this period (fight to save Wells; petition campaign in connection with UN anniversary meeting and peace action generally; fight for party's legality, most notably around California Smith Act cases).

The paper was a major factor in emergence of California party from recent pericd in relatively better shape than the organization elsewhere.

PARTY CRISIS AND EFFECTS ON PAPER

At the beginning of 1956 the paper was in a fairly precarious position.

FINANCES:

Because of the deficits accumulated over the years, the paper's dobts were in the neighborhood of $115,000.

CIRCULATION: From about 1954 on the paper's losses possible to speak of a relatively stabilized circulation

were minimal, and it was but at a low level.

The position was such that any appreciable loss in financial support or circulation activity placed the existence of the paper as a daily in jeopardy.

Estimating the situation in May, the State Board decided to launch the fund drive with the perspective of fighting for the daily, but recognizing that this perspective might not be realized in view of the oritical situation developing within the party. The Stato Board perspective of maintaining the daily was related to two factors: fulfillment of the fund drive approximately on schedule, and maintaining circulation. Succoss in the fund drive was regarded not only as an economic question (although the paper desperately needed every penny sought) but also as a political measure of the entire party's capacity and readiness to fight for the paper.

With the development of the party discussion, some very sharp criticims were directed at the paper, The staff sought to encourage discusion of the proeris content - through readers' conferences, questionnaires, and letters in the paper. At the same time, the staff sought to assess this oriticis, and to make changes along the lines that, in its judgement, was indicated by the bulk of the criticis.

In staff discussion, and consultation with the state board a general approach was adopted for striving to rake of the paper n voice of the Loft (going boyond the party), but directing itself to the broader mass movement.

The revamped week:ond paper was undertaken as a pilot project in the direction of a broader character and a more popular appoal.

SITUATION TODAY

FINANCES: Aa of the end of Cotober, even after a month's extension of the fund drivo, the drive was still some $30,000 short of the $150.000 goal. The paper was faced with an accumulated indebtedness of $150,000 by the end of the year.

CIRCULATION: Bocause of a virtual halt in circulation activity, the paper's combined (daily and weekend) subscription list deolined by 14 percent between May 1 and Oct. 1. While there has always been a dip in circulation between May, the height of the circulation drivo, and Cotober, this year's decline was far sharper. Last year, for instanco, the decline was 7 percont in the same period. Thus, the rate of deolino was twice as great this year.

POLITICAL OUTLOOK: Whatever the long range perspective for the party, and this is at the ooro of the pre-convention discussion, the short haul the next six months is cloudod with uncertainty, and it is unlikely that the critical situation within the organization will bo rosolved quickly.

Against this background, an intense discussion has developed about the papor's future, contored on the issue of whothor it can continue as a daily, or should be transformed into a weekly.

Arguments for a weekly:

THE THREE POSITIONS

1. The movement, given its present numerical size and relative isolation, Just cannot carry the burden of a daily paper, especially in view of the paper's small circulation and narrow base. If, by any chance, through a super-human effort, the movement did realize the finances, it would be only at the expanse of other activities which are essential if we are to break out of our isolation.

2. With our relatively meager financial resources, wo can at best sustain the manpower ari technical facilitios for putting out a poo: and iradequate daily, If the same rosaroos were poured into a weekly, we could pur out a paper of superior quality politically and technically - that could better attract and retain readers.

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This is a positive perspective, and such a paper could do a botter job of interpreting and analyzing eronts, of treating issueɛ more skillfully and thoughtfully, and could better meet the other needs of its readers.

With such a paper we could strive for a radical improvement in circulation. As one comrade put it, it is preferable to have one paper a week that reaches five people than to have five papers a wook that reach only one person.

3. In the immediate future, it is not likely that the party, as an independent force, will lead mass struggles of any consequences. Therefore, the need for a daily as an independent organizing and mobilizing instrument is greatly diminished.

Arguments for maintaining the daily:

1. Abandonment of the daily now would have the most adverse effect on the morale of the party, would have national and possibly international reporcussions, and would feed the liquidationist ourrents.

2. A daily newspaper assumes a fighting character in relation to issues as they arise that cannot be impartod to a woekly. A daily maintains a day to day contact with its readers, possesses grentur mobilizing ability, can be more flexible and timoly in reacting to events, and is more effective and consistent in the battle of ideas.

3. The present period is a period of transition. We have hung on for 18 years if we hang on for six more months, we'll bo over the hump and a strongthened, unified and more effective party organization will be able to carry the burden. Together with this, there are the improvements in the objective political situation, and the increasing possibilities for re-establishing old united front relationships and inaugurating new ones.

4. A daily ties in with the perspective in the draft rosolation for a party of action, which is best served by a daily paper.

Arguments for delaying decision until convention!

1. A daily is decirable; the real issue is whether it is feasible. We will be better able to gauge the feasibility when we see what emorgos from the convention. 2. More time is required to explore possible alternativos bufore so fateful a decision is taken.

3. There is considerable divergence of opinion on the daily vs. weekly iscue, and the period of pre-convention discussion might serve to further clarify the issue, especially as it will be considered in relation to the fundamental issue of what sort of party and movement will best moot the needs of the American working class at this time.

STATE BOARD PROPOSALS

After weighing the arguments above, the first question that faced the board was whether it should or should not make a rosorvendation. The majority felt it was the responsibility of the board to present its opinions to the party in the form of reoommer dations, fully confident that the party oorference would weigh those opinions (and all others) on their morite and would reach its decision on the basis of its independent judgement.

The issue then boiled down to - should we recommend postponement of any decision until the convention, or should we now recommend transformation of the paper into a weekly.

Generally, everyone favored waiting until the convention - IF it could be done. The rub is that for every month we delay, the paper goes into the hole for $17,000, as against about $9,000 for a weekly. The difference in the monthly deficit for a daily or a weekly in the next period is $8,000. That means about $24,000 if we wait until January, or $40,000 if we wait until March,

The majority did not see where this money would come from. The majority felt that extraordinary action would be required to come close to fulfillment of the fund drive, let alone raise any added oushion.

The majority of the board present ( 6 for and 1 abstaining; with attending members of the management committee divided 3 for and 2 opposed) decided to rocamend a weekly now,

The majority opinion was that in view of the failure to make the full fund drive quota, the drop in oirculation, the acour:lated debt, and the critical situa tion within the party, there was no realistic alternative.

We believed wo wore faced with a choice between an organized retreat now, or the danger of a rout later.

Spelled out the recomendation was:

1. That the conference recommend going over to a weekly.

2. That this recommendation be submitted to a referendum vote within the party for a three week period. Simultaneously, the popor would conduct a ballot among non-party readers, and would hold consultative sessions with reprosentative groups of non-party readers.

3. If the referendum approved the recommendation, then the state board together with the management committee would prooeed to put it into offoot. Two other recommendations wore approved:

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1. That the counties continue the fund drive until completion of their

2. That the matter of moving the paper to Los Angeles be left open, since no ocmitment has been secured from any printer to print the paper, and no spesifie bids as to costs were available as yet.

CONCLUSIONS

While the board did not see at this time the means for continuing daily publications, it also recognizod that maintenance of a weekly would greatly tax the party's energies and resources, and would require a consistont and determined fight.

because:

The board belioved the possibilities for winning such a fight were favorable 1. The $120,000 raisod in the fund drive thus far represents a considerable achievement, in view of the situation within the party, and demonstrates that the base for a Marxist paper is present on the Pacific Coast.

2. The paper's circulation on a daily basis is twice the party membership, and on the weekend is four times as great, indicating the paper retains a base among non-party persons, a base that could be expanded.

3. The revampod weekond paper represents a modest break through in the direction of the sort of paper needed, and the response to it indicates that continuing changes could generate enthusiasm for building, oirculation.

We believe that out of the present difficulties and profound upheaval, healthier and more effective party will emerge, and a Marxist paper is indispensable if such a party is to make its full contribution to the furtherance and development of a popular anti-monopoly coalition.

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