Russian-expansion and state export of capital

495 Pages·029.605 MB·English

by  Mayers, Jackson

RUSSIAN EXPANSION
AND STATE EXPORT OF CAPITAL
A Thesis
Presented to
the Faculty of the Department of Economics
University of Southern California
In Partial Fulfillment
of the Requirements for the Degree
Master of Arts
by
Jackson Mayers
August, 1950
UMI Number: EP44708
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This thesis, written by
JACKS01 MAYERS
under the guidance of h’LB.... Faculty Committee,
and approved by all its members, has been
presented to and accepted by the Council on
Graduate Study and Research in partial fulfill­
ment of the requirements for the degree of
..MASIEER.-.QE-ARTS-
____ In Economics__
Date August..135.0._____
Faculty Committee
Chairman
TABLE OP CONTENTS
CHAPTER PAGE
I. SUMMARY OF THE THESIS .......... 1
Statement of the problem................... 1
Organization of chapters. . . . . . . . . 2
Previous studies. '....................... 3
Methods and sources ..................... 4
Denial of economic expansion............... 5
Reasons for self-sufficiency............. 6
Russia's own explanation................. 8
Origin of expansion....................... 10
How to raise capital. ................. 11
Capital export resumes................... 15
Meaning of pacts with Hitler............... 17
Stalin's offer....................... 18
Business relations with Germany . . . . . 20
The post-war expansion. .......... 24
Seizures and looting. . ............... 25
Capital export techniques ............... 27
Imperialism and revolution. . . . . . . . . 29
II. THE INTERNAL 'ECONOMY. ................. 32
The production system . ................. 32
Law of value ................... 34
Planning............ 35
War economy . ......................... 37
ill
>»
CHAPTER PAGE
Property relations and classes .......... . 38
Management and classes ................... 38
State capitalism......................... 40
A single capitalist....................... 4l
Collective farms ............................ 43
Property rights................ .......... 44
Labor relations. ..................... 46
Piecework wages........................... 48
Forced labor and unemployment. . ......... 51
Money and banking........................... 52
Ruble shifts................ ............ 53
«
Price-fixing .............................. 55
Rationing.................................. 56
Banking.................................... 58
Capital accumulation . 60
Turnover t a x ............................. 6l
Bonds and loans........................... 64
Social change............................... 67
III. STATE CAPITALISM UNDER CZARISM AND REVOLUTION. 69
Mercantilism and state monopoly............. 70
Land expansion........................... 74
The state bank ................... 78
Communal and state land................... 77
Industrial growth and capital import . . . . 78
lv
CHAPTER PAGE
Capital import............ 79
Shift in trade....................... 80
Export of capital......................... 8l
Wartime controls.......................... . 83
The first revolution....................... 84
Lenin proposes state capitalism.......... 85
Renunciation of imperialism*. . . . . . . 87
Lenin’s prophecy of downfall ............... 89
IV. STATE MONOPOLY OF FOREIGN TRADE TO 1924. . . . 91
Revolution in economy...................... 92
Proletarian revolution................... 93
Nationalization of foreign trade .......... 94
Alternative controls . . . . . 96
War communism................................ 97
Polish war ................ 99
Trade agreements, 1920 .......... 100
New Economic Policy. . .............. . . 102
Concessions.......... 103
Joint-stock and mixed companies.......... 104
Tariff not enough. . . . . . . . 105
Trade aims ..................... 106
Rapalio...................................... 107
Primitive ’’socialist” accumulation........ 109
Sources of capital ..................... 110
V
CHAPTER PAGE
Import of capital....................... 112
V. RE-ENTRY INTO WORLD ECONOMY................. Ilk
Two steps backward in the Far East. . . . . 114
Sinkiang, Azerbaid jan, Khiva and Bukhara. 115
Outer Mongolia........................... 116
Chinese Eastern Railway ................. 118
Spheres of influence. ............. 121
What NEP left ................... 122
Commodity production. . . . . ........... 123
Surplus value........................... 12^
Investor class........................... 128
Strikes................ 131
Collectivization and accumulation . . . . 132
Pact of 1926.............................. * 134
Import of technology....................... 135
German trade.......... 137
Concessions.............................. 138
Technical a i d .......... 138
VI. DEPRESSION AND SELF-SUFFICIENCY............. ikO
Dumping.................................... 1^0
World market rules....................... lk2
Depression within Russia................. 1 ^
Turn to self-sufficiency................... 146
Import of capital . . . . . ............. 1^8
vi
CHAPTER PAGE
Why foreign trade ............. . . . . . 149
Most favored nation..................... 150
Par Eastern moves to the right............. 151
Tannu Tuva to 1931 ..................... 153
Outer Mongolia. ....................... 153
Hitler in power....................... 155
The eastern school...................... 156
Russian bonds on the stock exchange . . . 157
Drive outward............................. 158
Trade treaty with the United States . . . 159
Swedish credit........................... 160
League of Nations....................... 160
people1 s fronts................ 162
VII. CAPITAL EXPORT RESUMES....................... 164
Caucasus oil to Mussolini................. 16H-
Years of great change . . . . . .......... 167
The return of capitalist norms.......... 168
Was socialism achieved. ............... 170
Exports exceed imports..................... 172
Russia’s own fleet....................... 175
Rise of capital exports................... 1?6
Decline of agricultural exports ........ 177
Industrial exports predominate.......... 178
Trade volume. ......................... 179
vii
CHAPTER pAGE
Capital provider to the east............. l8l
Organization of trade................... 182
Imports from the east................... I83
Exports to the east..................... 184
Transition to colonies................. 186
Business relations with everyone ........ 188
VIII. EXPANSION OP 1939........................... 190
Nonintervention in Spain . . . . . . . . 192
A place in the s u n ....................... 193
Trade pact of 1938 ....................... 195
Exclusion from Europe. ........ 196
The start of secret talks................. 198
Stalin * s offer................ 199
Czechoslovakia falls ................... 203
Germany moves against Poland ........... 204
Indirect aggression. . .......... 206
Secret negotiations....................... 207
Litvinov's ouster... ................... 209
Political hases. .............. 211
Unity of politics and economics. . . . . . 213
IX. THE BASIC EXPANSIONIST DEMANDS OP 1939 . . . 216
Molotov's first speech ............. 216
Germany outraaneuvers the west. . . . . . . 218
The Strang mission ................... 221
viii
CHAPTER PAGE
Political bases ........................... 222
Berlin treaty . ......................... 223
Three stages and seven points.......... 224
The political thought.............. 228
Allied military mission................. 229
Telegram from Moscow..................... 230
Hitler's six point offer................... 231
Russia's draft of a pact................... 233
Commercial treaty, August 1 9 . ............. 235
Trade figures........................... 236
Personal contract with Stalin............. 239
X. PACTS OF AUGUST 23-24, 1939 ................. 243
A fascist in the Kremlin................ 243
Fifteen-year nonaggression p a c t .......... 244
Secret protocol ......................... 245
Molotov explains history................... 24?
Rate of exchange. ........ 24y
Molotov’s speech of August 31 • « • • • • 248
Effect of the August pacts................ 251
Breathing space ................... 252
Russia driven by the w e s t ............... 254
Drang nach westen.......................... 255
The change in lines of march........ .. . 256
Poland is drawn and halved................. 258