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SOVIET TRADE FROM THE PAC I F IC TO THE LEVANT '''WITH AN ECONOMIC STUDY OF THE SOVIET '. FAR EASTERN REGION ~t¥ '--', :;S4.SSDkI7lL t, qS J '.". .., ..~ .\1~'1~.~/' BY ~V;IOLET, __ -1 CONOLLY.. HIS work continues and concludes Tthe author's intensh'e study of Soviet Russia's economic relations with Eastern countries. The first ~volume dl~ssed the question In connection With Turkey, Persia, Afghanistan, ChineseTurklstan, Outer Mongolia, and Tana Tu~. Here the scene shifts to the seaboard of AsIa and the development of Soviet trade With Japan, China, the PaclficTroplcs. India. Arabia, Palestine, Syria, and Egypt. This exhaustive examination of. Russo-Japanese economic relations I. especially Interesting In view of the attention now concentrated on Far Eastern politics. \ 1.r1;'(., Price 10s.6d. net ~ ~ Dbananjayanu> Gtdgil Libmry I IIIDlIIII~IBUmmllll ;. GIPE-PUNE-Ol,2736 ~. SOVIET TRADE· FROM THE PACIFIC TO THE LEVANT SOVIET TRADE FROM THE PACIFIC TO THE LEVANT WITH AJ{ ECONOMIC STUDI' OF THE SOVIET FAR EASTERN REGION By VIOLET CONOLLY Author of Soviel &s~ PDli", in 1M East OXFORD UNIVERSITY PRESS LONDON: HUMPHREY MILFORD 1935 OXFORD UNIVERSITY PRESS AJmIf HOO'SE B.c. .. I.ondcn. EdIn_t G_ NewYorkTorontolfdJoume Capetown Bombay.......... CaJcutta HUMPHREY..- HILYORD 7VBL,aSBII TO 'l'B& UW'VSII.SITY X '.54 .S?:.OR.\l , I FOREWORD THIS book is the continuation and conclusion of a study ~ of Soviet economic relations with Eastern countries pub Iishedin 1933, which dea1twith thesubjec~insofar asTurkey, Persia. Mghanistan, Chinese Turkistan, Mongolia. and Tanna Tuva are concerned. Here the same theme is discussed in connexion with China proper and Manchuria, Japan, the Chinese Eastern R.ailway, India. the Pacific Tropics, Egypt and the Levant, and the R.ed Sea Basin. The inclusion of a chapter on the Soviet Far Eastern Region may at first sight seem curious in a work which is essentially a study of certain aspects ofSoviet foreign policy. On the other hand, it seemed to me impossible to form a just estimate of Soviet Russia's -economic policy in regard to either China or Japan, if the nature and needs of the Far Eastern Region-the base of much of this trade-its agricultural and industrial structure and the plans for its development now launched by the Soviet Government, were not in the first instance clearly understood. The very vague and scattered information available in either English, French, or German on this subject, and the virtual dearth of data on the progress of the Five-Year Plans in the Soviet Far East (except in Russian), finally convinced me that a general sketch ofthe situation was an II priori necessity. Even in Russian this information is none too easy to find, unless one is content with the most loose and diverging statements. The picture presented in this book has only taken colour in my mind by combing the files of Soviet publications, and in par ticular those periodicals,likeSoPietr~ A,Oya, Ekmwmiclw~ SkkA tk/7UlOO Vostokll (Economic Life of the Far East), Vestnik MtI1I&lwrii (Messenger of Manchuria), Torgovlill Russii s VosID- 10m (Trade of Russia with the East), <II INf1I.sIrillli1:.ak:.iu solJd sko1JO VostDkII (For the industrialization of the Soviet East), SO'IJietrkllYII Sibir (Soviet Siberia), which are specially concemed with Far Eastern problems; by analysing the laws and decrees affecting the Far East in the Soviet Union Code of Laws; by checking Soviet planned figures with published statistics ofpro duction; and by watching the Soviet press for the disclosures vi FOREWORD of the special correspondent, who almost invariably lets the cat of fact out of the bag of fiction, thus rewarding one for perhaps months of tedious investigation. This research work was, however, greatly facilitated by the invaluable Russian archives of the Ost-Europa Institut, in Breslau, and theArcnw oftheEurasiscltes SeminarattheDeutscbe Hochschule fiir Politik, Berlin, where a large range ofRussian periodicals are cut and classified most usefully for economic research work. Nothing of the kind exists as far as I know in England. I should like to remark in passing that only the most casual reader of the Soviet press can fail to find there frequent and sure sidelights on the working ofthe Soviet economic macbine. Ifjudiciously and continuously read, it will in nine cases out often provide sufficient data for a good critical estimate ofthe position even in remote areas like the Far Eastern Region. In spite of the inevitable adulation of Soviet system and policy, as such, it is in my opinion a better guide to the internal status fJUD than either the Nazi press of Germany or the Fascist press ofItaly (and I have lived in both countries while writing this book), I am VeIy deeply indebted to the Rockefeller Foundation for a Research Travelling Fellowship which I enjoyed from 1933 to 1935 and as a result ofwhicb I was enabled to pursue my research work in the libraries of Germany, Paris, and Geneva under ideal conditions, as well as to travel in Turkey, Syria, Palestine, and Persia. Russian material is notoriously difficult of access at the pre sent time both in Germany and Italy, where most of this book was written. That no administrative difficulties were long allowed to obstruct my work I have to bless the presence in Berlin and Rome of the respective Ministers of the Irish Free State, their Excellencies Charles H. Bewley and W. B. Macauley, who were always ready to explain my case to the authorities and to get me what I wanted. And, it should be added, the authorities in both countries eventually proved most reasonable. I would like to thank the following bodies for generously placing their archives and libraries at my disposal, and the FOREWORD vii staff in each case for collaboration which far exceeded the requirements ofduty: EurasiscMs Stminar (HochsckulefiJr Politilr.), Berlin (where the Archivist Frau Bestak was an indefatigable collaborator). Gesellsc!uift ;:um Studium Ost-.Europas, Berlin. Instituto I~ d' Agricoltura, Rome (where MM. Lungobardi and Grinenco helped me over many statisti cal stiles). Ost-Europa Institut, Breslau. Wirlsckaftsinstitut for Russland und die Randstaaten, Kiinigs6erg. Many times in the preparation of this book difficulties of one kind or another have been solved for me by the goodwill and unfailing resourcefulness of the staff of the Royal Institute of International Affairs. I hope that, in particular, Miss Cleeve, Mr. G. E. Hubbard, and the two librarians, Miss Grindrod and Miss Stiff, will accept this tardy word ofgratitude for the help they have given me. VIOLET CONOLLY. IlOME, February 1935. CONTENTS FOREWORD • v I. THE SOVIET FAR EASTERN REGION. I (6) General featureo. (b) Sakhalin. (e) Economic Resources (Mineral, Agricultura1, Fisheries). (4) The Five-Year Plans and the Far Eastcrn Region. (e) Colonization. (f) Birobidjan. (g) Trade and Trading Organs of the Far Eastcrn Region. (n) Vladivootok. II. SOVIET ECONOMIC RELATIONS WITH JAFAN 33 III. SOVIET ECONOMIC RELATIONS WITH CHINA. 5" IV. THE CHINESE EASTERN RAILWAY-BONE OF CONTENTION BETWEEN RUSSIA, CHINA, AND JAFAN ('9'1-'934) lis V. SOVIET ECONOMIC RELATIONS WI'IH INDIA, WITH A NOTE ON SOVIET TRADE WI'IH THE PACIFIC TROPICS • 88 VI. SOVIET ECONOMIC RELATIONS WITH EGYPT; g8 VII. SOVIET TRADE WI'IH THE LEVANT, 'IRAQ., AND THE RED SEA BASIN .os VIII. SOVIET TRADE FROM THE PACIFIC TO THE LEVANT (SUMMARY) 118 APPENDIXES 126 I Text of d=- releasing the Far Eastern Region from the strict enforcement of the Foreign Trade Monopoly. II ,Text of Soviet d=- affecting Far Eastern colonization. III Text ofthe Fisheries Convention betweenRUIIia andJapan ('9O'l). IV Japanese Memorandum on the exploitation of coal and oil in North Sakhalin presented to the Soviet Govemmeot in August '9·4· V Protocols re Concessions affixed to Russo-Japanese Agreement of .g2S· ' VI Fisheries Agreement between the U.8.S.R. and Japan (1928). " CONTENTS VII Agreement on General Principlea for the Settlement of Q!restiono between the Republic of China and the U.S.s.R. '924. VIII Documenu concerning the C.E.R.: (A) Contlact eovering Conotruction and Operation of the . C.E.R. (I8g6). (8) Statutes of the c.E.R. (.8g6). (e) Kazac:han Declaration of '9'9. (D) Supplement to the Agreement for the Conotruction and Ex ploitation of the C.E.R. ('9.0). (E) Agreement for the Provisional Management of the C.E.R. ('9'4)· (P) Habarovsk Agreemcot (December 19"9). (a) Statement concerning suspemion of direct freight transit at the pogran;chnaya frontier (May '933). eH} Statement of the Manch"kuo Delegation. Tokio, Aug. '5, '933· . e.} The Chinese Eastern Railway Sale Agreement (March 's. '935). IX Decree of the High Com"';.. i~r of the Freoch Republic in Syria conc:eming customs tari/lS ('9.6). X Decree of the High Commissioner of the Frenob Republic regulat ing c:ommercial exchanges between the U.S.S.R. and the Freoch ~tory States of the Levant (Dec. '933). XI Table showing details ofSovietexporl3 oftimbertoJapan, China, . India, and Egypt. XII Text of TreaW of Friendship. between the. Yemen and the U.s.S.R. (Julf '928). BIBLIOGRAPHY . ....8 MAPS (.) Illustration from. Pmoda (Jan. 8. '933) showing development of Soviet YJSbiug Industry, '933. (Chap. I. facing page ,.) (.) Map of Far Eastern Russian litoral indicating p1acc:s excluded from. the scope of the Fisheries eon"""tiom with Japan ('9"7. '9.8). (Chap. II, facing page 35.) (3) Railway Map ofMancbukuo. showing C.E.R. and _lines inter seeting it. (Chap. IIi. page-67.) (4) Map of the Soviet Far Eastern Region showing economic resourcc:a. Btc. (At end of book.) - APPENDIX I TEXT' OF DECREES RELEASING THE FAR EASTERN REGION FROM THE STRICT ENFORCEMENT OF THE FOREIGN TRADE MONOP0LY.