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HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex


                    HCO POLICY LETTER OF 4 DECEMBER 1966


Remimeo




                               ADMIN KNOW-HOW
                                           EXPANSION


                              THEORY OF POLICY



    It is not very hard to grasp the basic principle underlying  all  policy
letters and organisation.

    It is an empirical  (observed  and  proven  by  observation)  fact  that
nothing remains exactly the same forever. This condition is foreign to  this
universe. Things grow or they lessen. They cannot  apparently  maintain  the
same equilibrium or stability.

    Thus things either expand or they contract. They do not remain level  in
this universe. Further when something seeks to remain  level  and  unchanged
it contracts.

    Thus we have three actions and only three. First is expansion, second is
the effort to  remain  level  or  unchanged  and  third  is  contraction  or
lessening.

    As nothing in this universe can remain exactly the same, then the second
action (level) above will become the third action  (lessen)  if  undisturbed
or not acted on by an outside  force.  Thus  actions  two  and  three  above
(level and lessen) are similar in potential and both will lessen.

    This leaves expansion  as  the  only  positive  action  which  tends  to
guarantee survival.

    The point of assumption in all policy  letters  is  that  we  intend  to
survive and intend so on all dynamics.

    To survive, then,  one  must  expand  as  the  only  safe  condition  of
operation.

    If one remains level one tends  to  contract.  If  one  contracts  one's
chances of survival diminish.

    Therefore there is only one chance left and that, for  an  organisation,
is expansion.

                                   PRODUCT


    To expand any company needs a demanded product and  will  and  skill  to
produce and deliver it. It can be a service or an item.

    If a company has a demanded product and will and skill  to  produce  and
deliver it, it must organise to expand. If it does it will  survive.  If  it
organises to stay level or seeks to grow smaller it will perish.

    This is easily observed in nations. Whenever one  seeks  to  remain  the
same or to lessen itself it usually perishes.  It  need  not  seek  only  to
expand its borders. It can also expand its influence  and  service.  Indeed,
the effort to expand borders in a nation without  increasing  a  demand  for
its influence and products is a primary cause of war. If a  nation  expanded
the demand for its influence and products it would expand without war.  When
a nation seeks to merely expand by force of arms and  does  not  expand  the
demand for  its  products  one  gets  a  dark  age  or  at  least  a  social
catastrophe.

    Rome, early on, was in  great  demand  for  its  social  technology  and
manufacturing skill and only a cruel streak in her  made  her  wage  war  to
expand. Britain, for instance,  was  ready  to  welcome  Roman  baskets  and
pottery and art and had been demanding