Our Party and people are, therefore, faced with extremely urgent and complex problems. The former modes of production must be trans­formed and new ec… - Kaysone Phomvihane

Our fighters, cadres and Party members used the method of "armed propaganda": while hitting the enemy, they carried on propaganda work, forming a mass base and expanding the revolutionary forces in every possible way. As a result, support bases were set up in many parts of the country, where we established revolutionary power and formed popular armed forces together with mass organisations. Gradually, stage by stage, suitable methods were applied to do away with feudal and prefeudal forms of exploitation, and an improvement came about in the material and cultural life of the peasant masses; the unity of all the nationalities grew stronger and stronger.

Our ancestors had to withstand the aggression of 45 feudal states at more or less the same level of socio-economic development as our own. But our latter-day enemies were great imperialist powers with a colossal military and economic potential, a century ahead of us in technology and arma­ments and with a great deal of experience in conducting wars of aggression. The people of Laos, the makers of their history, have never before achieved a victory so splendid, so com­plete and final as that of today. This victory did not just restore the independence of Laos, an independence that had been flouted for more than two hundred years. It also made our multinational people the genuine master of their country after long years of living in slavery, poverty, backwardness and ignorance. They are masters of a country that is now fully independ­ent, free, and on the road to socialism. In our deeply loved motherland, this victory made the cherished hopes and aspirations of the Lao people come true.

The creation in Laos of highly productive so­cialist economy, based on socialist production relations and large-scale industry, entails the for­mation of a large-scale national economy equip­ped with the latest technology, with a well-de­veloped and rationally organised division of soci­al labour, and with a high level of productivity able to promote the continuing expansion of production.