why is this quote signicant to the meaning of the novel? #2

And when memory failed and written records were falsified—when that happened, the claim of the Party to have improved the conditions of human life had got to be accepted, because there did not exist, and never again could exist, any standard against which it could be tested.

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Winston is talking about the idea of making fabrications into reality. The party destroyed records of the past creating their own history that validated the party's existence. In a generation or two there will won't be anybody who knows better. The lie becomes the truth.