Chapter 229 Time Is Running Out (Bug Fixes): Capital is the Most Greedy

Ivanov was right; Wang Xiao did indeed talk with Secretary Fang for almost half an hour.

Ivanov was wrong, because in that half hour, they only talked for less than three minutes about the government-established company issuing bonds.

Even if Wang Xiao were an expert in the financial industry, let alone an outsider, she wouldn't be able to give specific instructions to the provincial government's top leader on how to do things in this setting.

She only needs to suggest a direction, and her task is complete.

Secretary Fang's real purpose in talking to her was about the LCD screen factory.

I went to Japan last summer and finalized the plan. Now that the land has been acquired, the project should be making some progress, right?

Wang Xiao bluntly stated: "It's not easy to recruit people, it's quite difficult. Engineers have many concerns, and there are relatively few people willing to come."

Why is that? Are Japanese engineers particularly patriotic and refuse to work abroad?

No, no.

While it's true that Japanese people don't travel abroad much, and Japanese dramas are now popular throughout Asia, and Japan's cultural exports are quite impressive, are Japanese celebrities generally not very interested in becoming global superstars, and do they even rarely go abroad to hold concerts?

However, this does not mean that Japanese people are so insistent on working in Japan. Otherwise, Samsung in South Korea would not have been able to poach Japanese LCD engineers, nor would it have had the opportunity to develop its own LCD business.

To put it bluntly, Japanese engineers lacked confidence in the future prospects of Chinese LCD screens.

Are they afraid that the LCD screen factories in China will not be able to survive and will go bankrupt soon, leaving them without their wages?

If that's the case, things will be simple.

The boss is wealthy and powerful; we can sign contracts with them guaranteeing their income for a certain period, including after the factory closes down.

The problem is that engineers are more concerned with their own career development.

As we all know, LCD screens, like chips, are updated and replaced very quickly.

The nature of the industry dictates that practitioners are constantly moving against the current; if they don't move forward, they will fall behind.

If you leave this environment and fail to keep up with the latest knowledge, you will most likely be eliminated in a few years.

Japanese engineers are willing to work in South Korea because South Korea's economy has taken off; it's one of the Four Asian Tigers, and its electronics industry is developing very rapidly, with Samsung being a renowned large corporation.

When people apply for jobs at Samsung, their resumes are quite impressive.

If we switch the focus to mainland China, consider this: in Japan right now, Chinese goods are synonymous with cheap and low-quality products. What would Japanese engineers think of China's industrial development, especially its emerging electronics sector?

These words, no matter how they are rhetorically packaged and expressed, are quite hurtful.

But since Secretary Fang has risen to the top position in the province, she can't just listen to pretty words. She wants the truth and needs to know the facts in order to decide what to do next.

This is indeed a troublesome problem; if it's not resolved properly, subsequent work will be unable to proceed.

Wang Xiao first lowered the leader's expectations, and then offered reassurance: "The headhunting company is indeed working hard to recruit people. So far, they have found some interested engineers and are in in-depth contact with them. Among them is a factory construction expert. If we can recruit him, the entire project can start."

Seeing that she didn't offer any further details, Secretary Fang guessed that she was afraid of having to explain things if things fell through, so he didn't press her further. Instead, he reiterated, "If the people are confirmed, they and their families can raise any needs they may have. Jiangdong will fully cooperate."

Wang Xiao smiled broadly: "Then I'll have to trouble you, Secretary. I'll need to trouble you again later."

When the conversation ended and Secretary Fang was about to leave, Ivanov was already drinking corn water.

Good heavens, this is amazing! The water used to boil corn tastes so good. Nothing was added, just the water from boiling corn. It's incredible!

Secretary Fang stood up and greeted everyone: "I'm sorry, I'm getting old and my energy can't keep up with yours, so I'll take my leave first. Please make yourselves at home. We've all been busy for a year, so let's take this opportunity to get together and chat some more."

Wang Xiao also stood up, cupped his hands in farewell, and said, "I also want to apologize. I just got off the plane today and I haven't adjusted to the time difference yet. I can't even keep my eyes open when I drink coffee."

The others naturally tried to persuade him to stay, and even asked the secretary for more guidance on his work.

However, this attempt to retain them should not be forceful, as it cannot disrupt the leader's schedule.

Ivanov watched the whole thing, and only after getting on the bus did he sigh to Wang Xiao, "Wang, I now truly believe that saying: comrades are more alike than compatriots."

Ah, although the Soviet Union no longer exists, it was once a socialist country.

He listened to these entrepreneurs and government leaders talking in the provincial government's canteen and felt a real sense of warmth and familiarity.

Wang Xiao smiled and pinched his brow: "That's why we always say that the Soviet Union was China's teacher."

From birth to death, it is.

Ivanov handed her a thermos of corn water. He noticed she hadn't been drinking much water earlier, and then asked curiously, "Wang, how large a scale of bonds will Jiangdong issue?"

Wang Xiao took a sip of the corn water, which did indeed have a faint sweetness and was very thirst-quenching.

The driver waited until she put down her cup before asking, "Shall we go?"

Seeing the boss nod, he immediately released the clutch, and the car drove out of the provincial government compound.

Wang Xiao shook his head: "No, we didn't talk that much. Secretary Fang was concerned about the LCD screen factory."

Ivanov immediately covered his face with his hands: "Oh God, may we find our Armand Hammer soon."

Who was Armand Hammer? He was an American of Jewish descent. His father, Julius Hammer, born in Russia, was one of the founders of the Communist Party of the United States. He himself was the first American capitalist to obtain a franchise in the Soviet Union. Through his efforts, 30 major American companies formed the United American Corporation to trade with the Soviet Union, shipping American food and industrial products to the Soviet Union.

He became friends with Lenin and is widely recognized as one of the key figures in the early industrialization of the Soviet Union.

In the 1930s, he returned to the United States and became an oil tycoon, but he remained a major player in US-Soviet trade.

After China's reform and opening up, he visited China by private jet at the invitation of Chinese leaders. His oil company also became the first American company to obtain offshore oil exploration rights in China.

The old man passed away in 1990.

In his 90 years of life, he achieved a level of brilliance that others couldn't accomplish in three lifetimes—truly an amazing feat.

Wang Xiao shook his head: "It's probably difficult, but the headhunting company has found Fred Koch for us."

Who is this Mr. Koch?

Scientist, a bigwig in the oil industry.

In 1927, at the age of 27, he invented the cracking process, which enabled small oil companies to compete with large oil companies.

This led to as many as 44 lawsuits from oil giants. See, those in power always find ways to prevent the common people from building the Tower of Babel.

In short, under the pressure of these lawsuits, he was unable to conduct oil business in the United States.

After being driven out of the American oil industry, Fred Koch had nowhere else to turn but to the Soviet Union.

Coincidentally, the thermal cracking technology he possessed was a magic bullet for the Soviet Union, which was in dire need of exchanging oil for foreign exchange at the time.

In just a few years, he helped the Soviet Union build 15 large-scale modern oil refineries, making him a key figure in the Soviet Union's modern oil industry.

However, his breakup with the Soviet Union was not pleasant, and the ending was quite complicated.

During the Great Purge in the Soviet Union, several of his colleagues were brutally purged.

This angered and shamed Fred Koch, who considered his cooperation with the Soviet Union a dark chapter in his history.

He left the Soviet Union for Germany, where he built the third largest oil refinery for Nazi Germany. After World War II, he became one of the founding members of the John Birch Society, a right-wing group known for its skepticism of the government and its creation of anti-communist panic.

But these are all things to be discussed later, and are not within the scope of what Wang Xiao and Ivanov are discussing now.

Ivanov thought for a moment, then laughed: "It really is Fred Koch."

The identities of the factory construction experts targeted by headhunting firms are also somewhat ambiguous.

He is of mixed race; his father is Japanese and his mother is from Taiwan.

After the signing of the Treaty of Shimonoseki, a large number of Japanese troops and immigrants began to appear on the island of Taiwan, and he was born in this context.

Undoubtedly, with the changes of history, he, who grew up in Taiwan Province, has experienced considerable confusion about his identity.

After graduating from university in the United States, he went to work in Japan. Due to the prejudice against mixed-race people in Japan, he has always found it difficult to truly integrate into Japanese society.

During this time, he met a Japanese war orphan by chance. Because they both felt rejected by Japanese society, they became friends.

After living in Japan for several years, the orphan couldn't bear it any longer and returned to China to find his adoptive parents. Before leaving, he chatted with the factory construction expert and expressed that even though he was a pure Japanese, he felt that the Japanese were inhumane and far less kind to him than his adoptive parents and fellow villagers.

This matter caught the attention of the factory construction expert, which is why he didn't immediately reject the headhunting firm when they approached him, but instead expressed interest.

Ivanov made a gesture of raising his hand: "I hope we have the good luck of the Soviet Union, and I hope we, Fred Koch, also have good luck."

Wang Xiao nodded: "I hope so."

She was really sleepy; she couldn't help but yawn as she spoke.

Even so, she didn't let her equally exhausted assistant off the hook: "How's the ruble now? What new developments has the Moscow government made?"

The assistant quickly perked up and reported, "It's still 1200; there are no new developments for now."

Wang Xiao yawned again: "Keep a close eye on it, continue to sell rubles and buy dollars."

Since the bank manager hasn't been appointed yet, Wang Xiao is currently in charge of running the newly licensed commercial bank. She is responsible for finalizing the bank's business direction.

The assistant immediately agreed, "Okay."

After responding, he hesitated for a moment, then asked, "Should we continue with large transactions?"

After yawning twice, Wang Xiao felt a little better and even had the energy to ask his assistant, "Don't you think it's unnecessary to be in such a hurry?"

The assistant quickly explained, "Boss, that's not what I meant."

“No!” Wang Xiao raised her hand slightly, signaling him to stop. “Yes, I did estimate that the public would give the president about six months to verify whether he could keep his promises.”

This was similar to the assistant's initial prediction, so he largely agreed with his boss's opinion.

In fact, the Russian federal government has indeed held firm. With fiscal intervention, the ruble has not fallen below the exchange rate of 1:1200 since August of last year.

Wang Xiao sighed: "But that was before. Now the president has absolute power and is fully implementing privatization reforms. Large enterprises are going to be auctioned off. What do you think people who are preparing to participate in the auctions are most looking forward to?"

Undoubtedly, buyers will always think the price is too high and will always want to buy the goods at a lower price.

Yes, the privatization auctions of large enterprises in the Russian Federation have now become a game for a select few, with outsiders having no chance to participate.

However, auctions have a starting price. If the starting price exceeds the bidders' expectations, the auction will fail to sell.

What can bidders do to lower the starting price?

Upon realizing this, the assistant couldn't help but change his expression.

Those who want to bid have no control over the factory's valuation, because the figure is based on the book value of Russian companies in July 1992.

They want to change the valuation, but that would come at a huge cost and would give away an existing handle against them.

In this situation, how can bidding merchants obtain the greatest profit with the least cost? The answer is obvious: manipulate the exchange rate.

The factory's valuation was in rubles.

In July 1992, one US dollar could be exchanged for approximately 150 rubles.

Now, that number has become 1200 rubles.

8 times.

In other words, even if the initial valuation was very accurate, the factory's value has now fallen to one-eighth of what it was a year and a half ago.

The devaluation was alarmingly high, but bidders still felt it wasn't enough.

They hope the ruble will fall even further so they can acquire the companies they want for 1/10, 1/20, or even 1/30 of the price.

The assistant couldn't stay calm; he felt a chill run down his spine.

Because he knew they could do it.

The vast majority of Russia's new elites are bankers, and they are also people with the power to buy large enterprises.

Driven by a shared goal, they wanted to manipulate the ruble's exchange rate, artificially devaluing it, which they were perfectly capable of doing.

Ivanov sighed: "With a 50% profit, capital will take risks. For a 100% profit, capital will dare to trample on all human laws. With a profit of more than 300%, capital will dare to commit any crime, even risking the gallows."

Sigh, what's there to laugh at? He's just another member of the capitalist class.

He's even buying rubles now in the face of a sharp drop, hoping to profit from the situation.

Xiao Gao's worldview was shattered by what he heard.

He had considered the possibility of the ruble devaluing.

Frankly speaking, anyone familiar with the current state of Russia's industry and agriculture would not expect the ruble to remain stable. The value of money, in essence, depends on the wealth of society.

But when he discussed it with Xiao Zhao, he never linked the rise and fall of the ruble to the privatization process in Russia.

He thought the two were completely unrelated.

Xiao Zhao blurted out, "Then the president won't abolish the ruble again, will he?"

Good heavens, if this happened again, not only would the boss go crazy, but even his bodyguard would.

Those few days in late July last year were truly unbearable.

But it really worked! Didn't you see how the ruble's exchange rate has stabilized since what happened last summer?

Ivanov's face fell instantly, his expression blank: "If that's the case, I'll personally pilot a plane and bomb the Kremlin."

I don't want to live anymore. There's no point in living. Let's all perish together.

He also made careful arrangements: "Don't worry, I will send you out of Russia before I board the plane."

Wang Xiao comforted him, "It hasn't come to that. The government might try to salvage the ruble's exchange rate to save face, but it can't stop the ruble from depreciating."

"If it wants to help businesses out of their predicament and stimulate economic development, it can only loosen monetary policy. Prices are rising rapidly, and it has to remedy the situation. So even if it's a desperate measure, the only thing it can do is print more money and flood the market with liquidity."

"In addition, the devaluation of the ruble is in the fiscal interest of the government. Because it is poor, it cannot repay its debts, so it can only dilute its debts and transfer the debt to the people."

Ivanov sighed again: "God, look, this is our government, a shameless and utterly shameless government."

Wang Xiao cleared his throat and said seriously, "It's not that serious, this is standard procedure."

Putting aside other issues, let's talk about the triangular debt problem in China and the bad debts of banks. How are these problems being resolved? One reason is the influx of foreign capital after China joined the WTO, and another is that they are being absorbed internally.

Looking at the whole world, the tricks are all the same few.

The course of the crisis depends on whether the economy can recover subsequently.

If you can get up, that's the best medicine to save the world.

Can't get up? Hehehe, who else should I scold if not you?

Ivanov stopped criticizing the Moscow government; after all, he was tired of the same old accusations.

He muttered to himself, "Just wait, just for an opportunity, a blatant opportunity."

What kind of opportunity would that be? Most likely, it would be the government announcing specific economic policies or releasing a cabinet list.

Who knows which one it is? Russia's economy is so fragile that any slight disturbance can be used to manipulate the ruble's decline.

“God,” Ivanov murmured sleepily, “where are they going to find a scapegoat this time? Ha, Congress, I knew they should have bombarded the White House so soon.”

Xiao Gao muttered to himself, thinking that given Russia's economic situation, if it weren't for the president's attack on the White House last October, the government might not have been able to maintain the ruble's exchange rate to this day through fiscal means.

But this time, who will the president attack? It can't be the Duma, can it?

Ha! That's not enough.

Wang Xiao had already closed his eyes and was muttering as if in his sleep: "War, war is very likely to break out."

Ivanov's eyes widened suddenly, his drowsiness vanishing in fright.

Yes, yes, yes, ever since the collapse of the Soviet Union, the CIS countries have never been peaceful, and there is still constant fighting, but those are localized and don't affect the overall situation. Apart from those caught up in it, not many people care.

Wang Neng specifically brought up the war, which means that the scale and intensity of the war she was referring to far exceeded the current situation; it was a real war, not just a so-called conflict.

So Ivanov repeated, "War?"

"Hmm." Wang Xiao kept her eyes closed; she was too sleepy to open them, but this made her words sound more like a well-thought-out decision. "When domestic conflicts become irreconcilable, diverting the public's attention to international conflicts and provoking war is the most effective and immediate way."

"If the ruble plummets and the economic situation deteriorates further, public resentment towards the government will rise sharply. The government needs war to divert public anger."

"There is no better way to unite a nation than through war."

"While the president's attack on the White House was criticized, it also rapidly enhanced his personal prestige, which is why he was able to become the president of the most powerful country in the world."

"He was able to defeat Parliament because he secured the support of the military at a crucial moment. Now that he has consolidated power, it's time for him to repay the military."

"The best opportunity for the military to make money is war. When the front lines are in dire straits, the rear is raking in profits, which is a great opportunity for military leaders to make a fortune. But the public can't have any opinions, because everyone knows that war is expensive. If you talk too much, it means you don't have a big picture view and you're not patriotic."

"The president wants to enhance his prestige and portray himself as a national hero who will save Russia from disaster, either by revitalizing the economy or by winning a war."

"For him, the latter was obviously simpler than the former."

Ivanov couldn't sleep. He reached up and rubbed his forehead repeatedly, murmuring softly, "So who is it? Who is that poor Afghanistan? Ha, who gave them their confidence?"

They knew all too well how badly the Soviet Union was dragged into Afghanistan back then.

Some battles are better left unfought.

When you're not fighting, others don't know your true strength and are filled with fear of you.

The moment you hit someone, everyone knows you are you and your father is your father; the image of a tiger father and a dog son becomes a reality.

"I don't know." Wang Xiao shook his head slightly. "I guess it's nothing more than the republic that wants to become independent. Whoever makes the biggest fuss and is most likely to succeed is probably the one who sticks out the first bird."

She knew about the Chechen wars, but she only knew that the first Chechen war was fought in the 1990s; she didn't really know the exact timeframe.

To reiterate, Russia was no longer the focus during the era in which she grew up.

She knew about the Chechen war because after the outbreak of the Russia-Ukraine war, some people commented that the Russian president's victory in the Second Chechen War at the beginning of his term had brought him to the peak of his prestige, which enabled him to crack down on domestic oligarchs and bring hope for the recovery of the Russian economy.

It can be said that he rose to prominence through war.

However, the course of the Russia-Ukraine war might prevent him from making a graceful exit.

Before she transmigrated, her understanding of the Chechen War consisted of only a few passages.

Now, living in this era, she seriously suspects that the First Chechen War is imminent.

It's no wonder she had this suspicion; even Ivanov, a native without any special abilities, immediately thought of Chechnya.

Why? Because after the collapse of the Soviet Union, Chechnya has been constantly seeking independence, and it is the leader of the independence movements among the various Russian republics.

However, it still had this strength because after the Soviet army withdrew, 80% of its military facilities and weapons remained in Chechnya.

Don't ask why such a bizarre thing happened. Just know that strange things happen all the time in this magical land, so one more won't make a difference.

The question is that both the Soviet and Russian presidents at the time used Chechnya as a tool, trying to win over Chechen leaders and offering each other benefits.

Look, when high-ranking national leaders engage in competition, it's no different from concubines vying for favor in the imperial harem.

Politicians’ selfishness can easily plunge a country and its people into disaster.

Chechnya is now practically a completely independent country, except that it is nominally part of Russia.

It's normal for Chechnya to want independence.

First, the Chechens are predominantly Muslims, and for over two centuries, since the military invasions of Peter the Great and Catherine the Great, they have been striving for independence. During the Soviet era, in the German-Soviet War, most Chechens were willing to cooperate with the German army. Because of this, Stalin seized upon the Chechen leader Tund, forcibly relocating nearly 400,000 Chechens to Kazakhstan and erasing the Chechen administrative region.

But later, during the Khrushchev era, the Chechen-Ingush Autonomous Republic was restored, and people were moved back, along with many Russians.

Anyway, there are historical grudges and ethnic conflicts, both of which run deep.

Secondly, Chechnya is located in the Caucasus region. Although it is smaller than Beijing and has a population of only 1 million, it has abundant oil resources.

The truth is, the poor might want to cling to powerful figures, but the rich don't want to be leeched off.

But this is also one of the reasons why Russia is determined not to let it become independent. As an important oil base and oil and gas transportation route, its independence would be a huge blow to Russia.

Moreover, Russia itself has a strong attachment to its territory.

Coincidentally, the speaker of parliament who was ousted by the president last October was also a Chechen.

Furthermore, Chechens have a poor image in Russian society; they are generally perceived as unproductive, violent individuals who advocate force, and are rife with mafia-like activities. Robbery, theft, and fraud are commonplace.

Combating the Chechens would likely garner a lot of support from ethnic Russians.

Thinking about this, Ivanov felt that it would be truly foolish for the Moscow government not to take action against Chechnya.

Oh God.

He sighed, thinking he might as well have just gone to sleep on the bus.

Now, he won't be able to sleep tonight.

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Happy Year of the Snake! Here's some information. The following information is from the internet.

Many who have read history textbooks know that the Soviet Union faced blockade and interference from Western powers during its early years. The reason was simple: the fate of the Tsar and his family terrified old Europe, which was still largely ruled by monarchies. It's important to note that the Tsar had never ordered the execution of Bolsheviks during his reign, yet he met such a fate. Therefore, after the fighting of World War I, the nobles and their relatives decided to kill the "bear" before it pounced, and to support White Russian forces to bring Russia "back on track."

Their reasons for intervention were also reasonable, as Lenin had signed the Treaty of Brest-Litovsk, allowing the German army to fight a single-front war against Britain and France. This resulted in far more casualties and losses for the Allies than they should have suffered, and both the government and the public were filled with anger at this "treachery." For many Tsarist soldiers, the Soviet Union was a blatant "traitor," having not only executed their former employers' entire families but also ceded territory to the Germans. However, this alliance was not monolithic, and the two sides had differing interests, ultimately failing to reach an agreement.

The Russian Empire's expenditure of 6 billion marks resulted in the loss of 90% of its national coal production, 73% of its iron ore production, 54% of its industry, 33% of its railways, and the livelihood of 50 million people. It's no wonder that many Russian soldiers who had fought against the German army on the front lines of World War I viewed the new regime as traitors and joined the armed intervention.

However, this intervention did have an effect. In the first few years after the founding of the Soviet Union, industrial output not only failed to increase but actually dropped by half. Agriculture did not fare much better, with output decreasing by a full third compared to 1913. This made the reconstruction of the Soviet Union extremely difficult. As early as 1922, Lenin pointed out, "Our situation is particularly difficult because we do not have the funds to restore fixed capital, that is, the funds for machinery, tools, factories, etc." Therefore, Lenin had to make compromises, ceasing the requisition of surplus grain and allowing farmers to partially privatize their land, but requiring them to pay a grain tax in exchange for funds. Through his efforts, industry did achieve some recovery, but this was mainly concentrated in light industry. This period is usually referred to as the "Recovery Period" (1921-1925).

Before World War I, Russia was the fifth largest industrial nation in the world, while the United States was the largest, more than twice the size of the second largest.

During this period, the Soviet Union also encountered its own difficulties: whether to compromise with Neptune. Undoubtedly, after abolishing policies such as the requisition of surplus grain, private sector power in the Soviet Union grew stronger again. It is estimated that private capital even rebounded to one-eighth at one point, but such growth must be tolerated for economic development. While the New Economic Policy certainly helped the Soviet Union recover to and even surpass its 1913 levels by 1926, this level of power was absolutely insufficient to build a truly industrialized nation.

external forces

Lenin, as a leader, was certainly not foolish; he was well aware of the principle that one person cannot hold up the entire country alone. In fact, as early as 1924, American businessman Hammer met with Soviet People's Commissar for Foreign Trade, Leonid Pokolakhin. The two sides signed a contract to change the factory that manufactured pens. However, the blockade of old Europe was still in place, and the relatives still expressed their inability to forgive the execution of the Tsar's entire family—a sentiment that was absent in a newly established republic without a monarch like the United States.

However, the Soviets were finally blessed by God, as Europe and America faced a crisis—the Great Depression. The timing of this Great Depression was also perfect; the Soviet Union began its first Five-Year Plan in October 1928, marking the start of a full-scale industrialization phase. At this time, much outdated equipment needed to be replaced, and a large number of new projects needed to be built. And the Great Depression began in 1929, just in time! As is well known, one of the characteristics of the Great Depression was overcapacity. Capitalists, in order to escape their own economic crisis, competed to sell surplus products and machinery to the Soviet Union: "What does it matter to us if His Majesty the King's cousin and his entire family are killed?!"

The Soviet Union also made full use of this opportunity to introduce a large number of advanced technologies and equipment needed for industrialization, which greatly promoted the completion of the Five-Year Plan.

Excessive production led American dairy farmers to strike in order to prevent other dairy farmers from selling their milk at lower prices.

In 1929, the Supreme Council of National Economy of the USSR established a Central Bureau for Foreign Advisory, specifically responsible for leading the introduction and utilization of foreign technical expertise. By the end of 1929, the USSR had signed more than 70 technical assistance and advisory agreements with foreign countries, covering several important economic sectors such as machinery, metallurgy, petrochemicals, and transportation. By early 1931, the number of technical assistance projects received by the USSR had increased to 124, with a total investment of 83 million rubles.

During the First Five-Year Plan, almost all of the large number of modern backbone enterprises established in the Soviet Union were built with Western assistance. The three major Soviet steel plants—Magnitogorsk, Kuznetsk, and Zaporizhzhia—were built with aid from the United States and Germany. The three major Soviet automobile plants were upgraded with Western equipment and expertise. Most of the four major tractor plants were new factories built with aid from the United States, Germany, and other countries; the famous Stalingrad Tractor Plant was built with the help of nearly 80 American factories. The Dnieper Power Station, the largest power station in the 1930s, and other large power stations were built with equipment provided by Britain, Germany, and the United States.

The Stalingrad Tractor Plant was originally established in the United States but was eventually incorporated into the Soviet Union. During World War II, it supplied the Soviet Union with a large number of tanks and made a significant contribution to the decisive Battle of Stalingrad.

In addition, during the Great Depression, the Soviet Union successfully imported and utilized a large amount of advanced foreign technology and equipment. In 1931, the Soviet Union purchased one-third of the world's total equipment exports, and this figure rose to about half in 1932. The Soviet Union not only rapidly acquired advanced production capacity but also mastered the most advanced technologies of the time, providing strong conditions for its later independent industrial development and laying the foundation for socialist industrialization. ⑥

Talent is the most important thing

With a wealth of advanced technology and supporting facilities, what could Russia, ravaged by war, do if it lacked sufficient operators and engineers?

The Great Depression presented another opportunity. Many unemployed people in Europe and America were worrying about their next meal, and with Soviet agriculture recovering, their families could be guaranteed a livelihood! In fact, as early as 1925, the Central Committee of the Communist Party of the Soviet Union (Bolsheviks) approved the "Outline on the Recruitment of Foreign Experts to Work in Soviet Industrial Sectors and the Sending of Soviet University Students, Engineers, and Technicians Abroad for Study." With the implementation of this outline, the number of foreign experts and technicians recruited increased rapidly.

Some sources indicate that in 1932, there were 20,000 foreign experts working in various sectors of the Soviet Union. The work of these experts was highly valued by the Soviet government; they were entrusted with important responsibilities, some even holding key positions such as chief engineer and chief architect. Many received awards from the Soviet government, and some were awarded the Order of Lenin, the highest technical award in the USSR. In 1931, the Donbas coal mines alone employed approximately 2,000 foreign workers. Skilled technicians were another crucial factor in the effective application of advanced technology.

At the same time, taking advantage of the established cooperative relationship, the Soviet Union sent a large number of students abroad to learn advanced technologies.

From January 1929 to June 1930, the Soviet Union sent over 1,000 people to the United States to transfer American technology to the Soviet Union. In 1929 alone, the Supreme Council of National Economy sent 1,200 engineering and technical personnel for further training, and in 1931, another 485 were sent. After returning to their home countries, these personnel played a significant role in the industrialization of their respective nations.

It's hard to imagine what the Soviets would have been like without the Great Depression and this "win-win" situation.

Considering the period from 1921 to 1925, during which the private economy revived and light industry rose while heavy industry recovered slowly, I hold a pessimistic view. Interestingly, from 1933 to 1941, Germany was also an investor in the Soviet Union, and a significant one at that. It can only be said that while friendship can last forever, the ship of friendship can capsize at any moment.

In addition, prior to this, tensions between European countries had been escalating in the late 19th and early 20th centuries.

Many countries clashed over colonial expansion and trade interests, resulting in a complex system of alliances.

Among them, the two main military alliances were the Triple Entente (composed of Great Britain, France and Russia) and the Triple Alliance (composed of Germany, Austria-Hungary and Italy).

These alliances have created a fragile balance in Europe, where a provocation of any one of them could quickly lead to a full-scale war.

Germany rose rapidly in the second half of the 19th century, becoming an economic and military power in Europe.

However, as its power grows, competition and conflicts between Germany and other European countries are also intensifying.

In this context, Germany began a series of military and diplomatic actions in an attempt to consolidate its position and gain more power and territory.

Vulnerability caused by internal turmoil

At the same time, Tsarist Russia was also facing serious turmoil and political instability.

The Russian Revolution of 1905 and a series of military setbacks in the early stages of the war weakened the rule of Tsar Nicholas II.

This political vulnerability led to the poor performance of the Tsarist army in the war, which further motivated Germany to take action.

Although Tsarist Russia was overthrown in the February Revolution of 1917, the bourgeois Provisional Government that came to power insisted on participating in World War I and refused to cease hostilities.

This put increasing pressure on the Germans on both the Eastern and Western fronts.

Therefore, the Germans devised what is known as a "dual strategy".

On the one hand, they planned to launch a swift campaign on the western front, quickly defeating France and Britain to secure the western front.

On the other hand, Germany hoped to weaken Russia by supporting various opposition forces within the Russian bourgeois provisional government, plunging it into internal strife so that more troops could be concentrated on the western front.

Germany's support for Lenin

At this time, Lenin, who was in exile in Switzerland, was a useful tool for Germany, and Lenin was also in a predicament because he had no way to return to Germany to seize power.

That's right, it's a two-way journey, with both sides having their own needs and goals.

Lenin and Germany reached an agreement: the Germans would help him return to Germany and seize power, and Lenin would handle the rest once he returned.

According to historians, Germany may have provided Lenin with some financial support to help with his exile and plans to return home.

Although the exact amount cannot be verified, this funding played a crucial role in Lenin's revolutionary activities and his return to Lenin.

Germany may have hoped to weaken Russia's war-fighting capabilities in World War I by funding Lenin and inciting unrest within Russia.

Arranging travel and providing support

The exact amount of money the Germans gave Lenin is unknown, but Germany did secretly arrange Lenin's return route and provide necessary support.

On April 3, 1917, Lenin and 30 others boarded a special train provided by Germany and returned home safely, arriving at the White Island station on the Russian border that evening.

At the time, all countries prohibited Lenin from passing through their territory. Germany's generosity in allowing him passage might not have been able to achieve its own goals, but it was a tremendous favor for Lenin, and the most important step in his return to China to seize power.

Although it is confirmed that Lenin returned to Germany with the help of the Germans, there is currently no conclusive evidence to prove that there was an explicit secret agreement between the two sides.

However, it is certain that Germany and Lenin had common interests during World War I, which may have been the motivation for their cooperation.

Germany hoped for internal turmoil in Russia to alleviate the pressure of the war, while Lenin longed to overthrow the Provisional Government and achieve a socialist revolution.

Although there was no explicit secret agreement, the common interests of both sides may have led to some cooperative actions, which resulted in Germany providing support, and Lenin was willing to accept this support.

Although there is no conclusive evidence, some subsequent events and statements have suggested that there may have been cooperation between Germany and Lenin.

For example, after Lenin successfully returned to Russia, he put forward proposals such as "withdrawal from the war, return of land to the peasants, and full Soviets" in his April Theses. These proposals were in line with Germany's strategic goal of weakening Russia.

In addition, some German government officials have also hinted at their support for Lenin.

However, these subsequent events and statements do not prove that a clear secret agreement actually existed.