Chapter 548: Visiting Europe (13)
Volume 5: International Relations · Chapter 78
Comrade Stalin was very concerned about He Rui's trip to Europe. Especially when he learned that He Rui had actually signed a Sino-French economic cooperation agreement with France, Comrade Stalin was even stunned for a few seconds, momentarily unsure of how to face this matter.
As a revolutionary and political leader from the Tsarist era, Stalin was no stranger to France engaging in such cooperation. Tsarist Russia had engaged in such cooperation with France, and after the Russian Revolution, the Soviet Union handled these debts. In accordance with Comrade Lenin's stance of not repaying odious debts, the Soviet Union felt it had reasonably disposed of these debts. However, the French side insisted that the Soviet government owed debts and was not repaying them. This was also one of the reasons why France participated in the containment of the Soviet Union.
Now that France had actually signed such an agreement with China again, while Comrade Stalin could not determine all the details of the Sino-French cooperation, he could only understand it according to the judgment of the revolutionary mentor: 'France, this usury imperialism, never changes its thieving nature.'
Soon, Comrade Stalin made a judgment based on the economic report of the Supreme Council of the National Economy of the Soviet Union and ordered the establishment of a Central Bureau for Foreign Consultation under the Supreme Council of the National Economy, specifically responsible for leading the introduction and utilization of foreign technological forces.
So, Vyacheslav Molotov, People's Commissar for Foreign Affairs of the Soviet Union, started preparing to visit China. At this time, He Rui was still visiting the UK, and the earliest return time would probably be in April. Molotov visited Grigory Konstantinovich Ordzhonikidze, Chairman of the Supreme Council of the National Economy.
From 1921, Comrade Stalin was in charge of Sino-Soviet trade. Initially, it wasn't a special arrangement, just that someone had to be responsible for it, and the Politburo decided Comrade Stalin would be responsible. As a result, Sino-Soviet trade became increasingly valuable to the Soviet Union. In the process of Comrade Stalin's rapid rise in prestige within the party, this work he was responsible for also played a certain role.
Grigory's position corresponds to a Minister of Finance in foreign countries. Grigory also served as the People's Commissar for Heavy Industry, so Molotov actually felt that perhaps he hadn't found the right person. However, when Molotov took out the gift he brought, Darjeeling black tea, Grigory was immediately happy.
Holding the black tea emitting a sweet fragrance, Molotov asked: "Comrade Grigory, I am very interested in the help of imported goods for agricultural collection mentioned in your report. Could you explain it more clearly?"
Commissar Grigory, like Molotov, was a Politburo member of the CPSU who firmly supported General Secretary Stalin. Although he felt that more detailed content could probably be sought from the People's Commissar for Agriculture, since it involved two fields, Grigory was also one of the persons in charge. His two thick eyebrows slightly turned up, and he explained while drinking tea: "The plan of 'Light Industrial Goods to the Countryside' has achieved success."
Molotov knew that this was similar to China's "Bicycles to the Countryside" plan. The state sent goods needed by the people to the countryside and sold them directly to rural areas. In these aspects, the Soviet Union felt a great sense of familiarity with many policies of the Chinese government. Directly borrowing them was no pressure at all.
"This policy is very successful. The total amount of goods purchased by farmers and collective farms has increased by three times, and the enthusiasm for handing over grain has also increased," Grigory explained.
Molotov nodded slightly. All along, there had been massive problems with the Soviet Union's grain collection. Forcing farmers to hand over grain with bayonets was a norm in the early days of the revolution, and grain collection was a long-term problem afterwards. Even in the past two years, Comrade Kirov, whom Comrade Stalin valued very highly, had said harsh words when he was in the Leningrad (St. Petersburg) region: "When collecting grain, if you see a farmer's legs shaking, go and raid his house. You will definitely find hidden grain." Under such circumstances, if Grigory said 'enthusiasm for handing over grain has increased', one could imagine how successful the grain collection actually was.
Grigory finished a cup of tea, refilled the water, and poured another cup. The honey taste of that black tea was truly comfortable. Although there was still some gap between Darjeeling black tea and Fujian black tea, the price of Darjeeling black tea was there. Soviet foreign trade personnel naturally chose products with high cost-performance ratios.
"We in the Soviet Union have the ability to produce light industrial goods, and also the ability to mass-produce light industrial goods. But we cannot mass-produce light industrial goods at such a low price," Grigory lamented.
As a commissar trusted by Comrade Stalin, he would not be misunderstood for saying this. Molotov nodded, expressing agreement. Just as Grigory said, in the initial stage of Sino-Soviet trade, the Soviet Union on one hand had doubts about the quality of Chinese industrial goods, and also worried that China would use the Soviet Union as a dumping ground for industrial goods. But none of these things happened. The quality of Chinese light industrial goods was passable, and the price was truly favorable.
In addition to high cost-performance, the quantity was large and sufficient. China also provided the Soviet Union with technology and equipment for producing light industrial goods through cooperation with the Soviet Union, and had no intention of turning the Soviet Union into a dumping ground. Moreover, China did not suppress the prices of Soviet raw materials, and both sides conducted quite fair trade. So in recent years, the Soviet Union did not deliberately expand the policy of Sino-Soviet trade, but it exported more and more raw materials to China and purchased more and more light industrial goods from China.
Molotov asked: "Has the Supreme Council of the National Economy already formulated a calculation formula based on economic needs?"
"...Indeed, based on domestic demand, a portion of import and export transaction volume has been formulated." Grigory admitted part of it.
"At this stage, is there a gap between the evaluation of light industrial goods for farmers and the current import volume?" Molotov asked straightforwardly.
Grigory knew that Molotov would conduct diplomatic negotiations with China, and Sino-Soviet trade was one of them, so it was necessary to answer this question. "According to discussions, if grain collection can increase by one time, it can completely meet economic needs."
Molotov probably got the answer he wanted. If he went to ask the People's Commissariat for Agriculture, the answer he got would likely be 'the more grain collected, the better', which would be meaningless. But at this time there was another question. Molotov asked: "Has the number of armed security personnel in the grain collection teams decreased?"
Grigory smiled, and Molotov smiled along. Both knew that this was a very implicit expression. The so-called armed security personnel were military forces used to intimidate farmers with force. And Molotov's question was not only not funny, but actually very realistic and serious. If grain collection did not require bringing armed forces, it meant that the rural contradictions in the Soviet Union had been greatly improved.
"Comrade Molotov, the work of the current armed security personnel is limited to protecting the transported goods. And this part of the work has also begun to be borne by local militias. Farmers and cooperative members can already buy most light industrial goods from cooperatives. What really needs escorting are the light industrial goods used as rewards."
After this discussion, Molotov got the answer he wanted. After Molotov took his leave, Grigory drank tea while thinking about the 'calculation formula' mentioned just now.
When going to collect grain with bayonets, one didn't need to consider any formula, only how much grain could be collected in the end. Now using light industrial goods to exchange for grain, there must be a formula. The collected grain is linked to commodities, and the calculation of the costs consumed to produce and trade these commodities is actually quite complex.
Simply put, the imported light industrial goods require the Soviet Union to produce a certain amount of export goods, and the costs consumed must at least be equivalent. And through importing light industrial goods, how much help does it provide for national economic development, for eliminating domestic contradictions, and for improving social stability?
Overall, the prices of China's light industrial goods do not have a particularly large advantage compared to other countries. But the good thing is that the quantity is large and sufficient, and the real help is mainly reflected in solving the Soviet Union's domestic contradictions. When farmers can buy a large amount of cheap light industrial goods, their enthusiasm for producing grain and handing over grain naturally increases.
With the increase in the amount of grain collected, the number of urban industrial population that can be supported naturally increases. The wages the Soviet Union pays to workers and farmers are actually not low. With sufficient grain supply in cities and sufficient supply of light industrial goods, the work enthusiasm of workers in cities also increases accordingly.
Drinking another cup of tea, Grigory returned to his study and took out some documents to start studying. That was the list of Sino-French cooperation projects that had already been announced, many of which were products in the light industrial field. Writing a few notes, Grigory would think for a while.
Although the revolutionary mentor called France "Usury Imperialism", France is indeed one of the handful of industrial countries in the world. France's light industrial goods are of good quality and low price, and the prices of many industrial goods are lower than similar Chinese industrial goods.
If China, after obtaining these technologies, can transfer the production technology to the Soviet Union after digesting and absorbing them, and at the same time export industrial goods of the same quality as France to the Soviet Union at a lower price, that would be wonderful.
The Soviet Union has conducted massive resource exploration since the Tsarist era. The reserves of timber, coal, minerals, and oil are all extremely huge. The Soviet Union's heavy industry also has quite a foundation. If it can obtain technology transfer, the Soviet Union's heavy industry can also produce excellent products. As long as these products are exported to China, it is enough to balance trade and import a large amount of cheap light industrial goods from China.
The changes in grain collection in these few years have touched Grigory deeply. A powerful socialist country is fully capable of letting the people live a good life. Fair trade can greatly improve the efficiency of improving people's quality of life. So Grigory is very looking forward to Sino-French cooperation. Because in Sino-Soviet trade, China does not require the Soviet Union to provide international hard currencies like pounds or US dollars, nor does it force the Soviet Union to accept Chinese Yuan. Both sides only use account clearing, and the settlement time is usually one quarter. Afterwards, based on the settlement results, orders are continued or cancelled. For a country like the Soviet Union that lacks foreign exchange, it is really too convenient.
Moreover, after Sino-French technical cooperation, the Soviet Union can also understand the latest level of technological development in Europe by visiting China. Although Western Europe has closed the door to technical cooperation with the Soviet Union, the Soviet Union has opened a new door in the East. This kind of technical cooperation also does not require the Soviet Union to pay precious metals or hard currencies like pounds or US dollars, and can also solve the Soviet Union's demand for advanced technology.
Of course, these things will certainly not be that simple in the execution process. People's Commissar for Foreign Affairs Molotov will definitely have to put in a lot of effort.
If He Rui knew the Soviet side's thoughts, he would definitely be very happy. Because this is also the direction He Rui hopes for. So He Rui also visited many famous British enterprises in the UK. After He Rui entered the factories to visit under the polite guidance of the enterprise owners and persons in charge, He Rui was indeed somewhat disappointed.
When giving a speech at the École Normale Supérieure in Paris, He Rui mentioned a disadvantage of the capitalist system. The contradiction between private ownership of means of production and socialized mass production is one of the fundamental contradictions of the capitalist system. British enterprises are still using steam power in large quantities. Even though British steam power has been tempered and developed for three hundred years and has reached the limit that steam power can achieve, the steam revolution is still backward compared to the electrical revolution.
He Rui does not believe that the UK lacks the technical strength for the electrical revolution, but the massive investment based on the steam revolution has now become a burden for the UK. Scrapping these investments would cost a large sum of money, and investing in the electrical revolution and developing internal combustion engines would be another large investment. Among British capitalists, a large number will inevitably be finished. Concerning life and death, how could British capitalists commit suicide?