STATE CAPITALISM

LENIN; On State Capitalism, During the Transition to Socialism

THE EIGHTH ALL-RUSSIA CONGRESS OF SOVIETS
DECEMBER 22-29, 1920
1
From REPORT ON CONCESSIONS DELIVERED TO THE R.C.P.(B.) GROUP AT THE EIGHTH CONGRESS OF SOVIETS DECEMBER 21
Comrades, I think you have made a fully correct decision by preferring the discussion on concessions to be held first in the Party group. To the best of our knowledge, the question of con- cessions _has everywhere aroused considerable concern and even anxiety, not only in Party circles and among the working- class masses but also among the masses of the peasantry. All comrades have pointed out that, since -the decree of November 2343 of this year, the questions most frequently raised and the writ- ten questions submitted at most meetings held on a variety of subjects have dealt with concessions, and the general tone of the questions, as well as of talk on the subject, has been one of apprehension: we have. driven out our own capitalists, and now we want to admit others. I believe that this apprehension, this widespread interest in concessions-displayed, not only by Party comrades but by many others-is a good sign, which shows that in three years of incredibly hard struggle the workers' and peasants' state power has become so strong and our experience of the capitalists has become so fixed in the mind that the broad masses consider the workers' and peasants' state power stable enough to manage without concessions; they also consider their lesson learnt well enough to avoid any deals with the capitalists unless there is a dire necessity to do so. This sort of supervision from below, _this kind of apprehension emanating from the masses, and this kind of anxiety among non- Party circles show the highly vigilant attention that is being paid to relations be tween us and the capitalists. I believe that on this score we should absolutely welcome this apprehension as revealing the temper of the masses.

Yet I think that we shall conclude that, in the question of concessions, we cannot be guided by this revolutionary instinct alone. When we have analyzed all aspects of the question, we shall see that the policy we have adopted-the policy of offering concessions-is the correct one. I can tell you briefly that the main subject of my report-or rather the repetition of a talk I had very recently in Moscow with several hundred leading executives,44 because I have not prepared a report and can- not present it to you-the main subject of this talk is to offer proof of two premises: first, that any war is merely the continuation of peacetime politics by other means, and second, that the concessions which we are giving, which we are forced to give, are a continuation of war in another form, using other means. To prove these two premises, or rather to prove only the second because the first does not require any special proof, I shall begin with the political aspect of the question. I shall dwell on those relations existing between the present-day imperialist powers, which are important for an understanding of present-day foreign policy in its entirety, and of our reasons for adopting this policy.

The American Vanderlip sent a letter to the Council of People's Commissars in which he said that the Republicans, members of the Republican Party of America, the party of the banking interests, which is linked with memories of the war against the Southern States for liberation, were not in power at the time. He wrote this before the November elections, which he hoped the Republicans would win (they have won them) and have their own president in March. The Republicans’ policy, he went on, would not repeat the follies that had involved America in European affairs, they would look after their own interests.

American interests would lead them to a clash with Japan, and they would fight Japan. It might interest you to know, he went on, that in 1923 the U.S. navy would be stronger than
Britain's. To fight, they needed control of oil, without which
they could not wage a modern war. They not only needed oil, but also had to take steps to ensure that the enemy did not get any. Japan was in a bad way in that respect. Somewhere near Kamchatka there is an inlet (whose name he had forgotten) with oil deposits, and they did not want the Japanese to get that oil. If we sold them that land, Vanderlip could vouch that the Americans would grow so enthusiastic that the U.S. would immediately recognise our government. If we offered a concession, and did not sell them the land, he could not say that they would refuse to examine the project, but he could not promise the enthusiasm that would guarantee recognition of the Soviet Government.

Vanderlip's letter is quite outspoken; with unparalleled cynicism he outlines the point of view of an imperialist who clearly sees that a war with Japan is imminent and poses the question openly and directly-enter into a deal with us and you will get certain advantages from it. The issue is the following: the Far East, Kamchatka and a piece of Siberia are de facto in the pos- session of Japan insofar as her troops are in control there, and circumstances made necessary the creation of a buffer state, the Far Eastern Republic.45 We are well aware of the unbelievable sufferings that the Siberian peasants are enduring at the hands of the Japanese imperialists and the atrocities the Japanese have committed in Siberia. The comrades from Siberia know this; their recent publications have given details of it. 46 Nevertheless, we cannot go to war with Japan and must make every effort, not only to put off a war with Japan but, if possible, to avert it because, for reasons known to you, it is beyond our strength. At the same time Japan is causing us tremendous losses by depriving us of our links with world trade through the Pacific Ocean. Under such conditions, when we are confronted with a growing conflict, an imminent clash between America and Japan-for a most stubborn struggle has been going on for many decades between Japan and America over the Pacific Ocean and the mastery of its shores, and the entire diplomatic, economic and trade history of the Pacific Ocean and its shores is full of quite definite indications that the struggle is developing and making war between America and Japan inevitable-we return to a situation we were in for three years: we are a Socialist Republic sur rounded by imperialist countries that are far stronger than us in the military sense are using every means of agitation and propaganda to increase hatred. for the Soviet Republic, and will never miss an opportunity for military intervention, as they put it, i.e., to strangle Soviet power.

If, remembering this, we cast a glance over the history of the past three years from the point of view of the international situation of the Soviet Republic, it becomes clear that we have been able to hold out and have been able to defeat the Entente powers-an alliance of unparalleled might that was sup- ported by our white guards-only because there has been no unity among these powers. We have so far been victorious only because of the most profound discord among the imperialist powers, and only because that discord has not been a fortuitous and internal dissension between parties, but a most deep-seated and ineradicable conflict of economic interests among the imperialist countries which, based on private property in land and capital, cannot but pursue a predatory policy which has stultified their efforts to unite their forces against the Soviets. I take Japan, who controlled almost the whole of Siberia and could, of course, have helped Kolchak at any time. The main reason she did not do so was that her interests differ radically from those of America, and she did not want to pull chestnuts out of the fire for U.S. capital. Knowing this weakness, we could of course pursue no other policy than that of taking advantage of this enmity between America and Japan so as to strengthen ourselves and delay any possibility of an agreement between Japan and America against us; we have had an instance of the possibility of such an agreement: American newspapers carried the text of an agreement between all countries who had promised to support Kolchak.

That agreement fell through, of course, but it is not impossible that an attempt will be made to restore it at the first opportunity. The deeper and more formidable the communist movement grows, the greater will be the number of new attempts to strangle our Republic. Hence our policy of utilising the discord among the imperialist powers so as to hamper an agreement or to make one temporarily impossible. This has been the fundamental line of our policy for three years; it necessitated the conclusion of the Peace of Brest-Litovsk, as well as the signing, with Bullitt, of a peace treaty and an armistice agreements most disadvantageous to us. This political line of conduct enjoins us to grasp at a proposal on the granting of concessions. Today we are giving America Kamchatka, which in any case is not actually ours because it is held by Japanese troops. At the moment we are in no condition to fight Japan. We are giving America, for economic exploitation, a territory where we have absolutely no naval or military forces, and where we cannot send them. By doing so we are setting American imperialism against Japanese imperialism and against the bourgeoisie closest to us, the Japanese bourgeoisie, which still maintains its hold on the Far Eastern Republic.

Thus, our main interests were political at the concessions negotiations. Recent events, moreover, have shown with the greatest clarity that we have been the gainers from the mere fact of negotiations on ·concessions. We have not yet granted any concessions, and shall not be able to do so until the American president takes office, which will not be before March; besides, we reserve--the possibility of renouncing the agreement when the details are being worked out.

It follows, therefore, that in this matter the economic interest is secondary, its real value lying in its political interest. The contents of the press we have received goes to show that we have been the . gainers. Vanderlip himself insisted that the concessions plan should 'be kept secret for the time being, until the Republican Party had won the elections. We agreed not to publish either his letter or the entire preliminary draft. However, it appeared that such a secret could not be kept for long. No sooner had Vanderlip returned to America than exposures of various kinds began. Before the elections Harding was candidate for the presidency; he has now been elected. The selfsame Har- ding published in the press a denial of the report that he was in touch with the Soviets through Vanderlip. That denial was categorical, almost in the following words: I don't know Vander- lip and recognise no relations with the Soviets. The reason behind this denial is quite obvious. On the eve of the elections in bourgeois America, it might have meant losing several hundred thousand votes for Harding to become known as a supporter of an agreement with the Soviets, and so he hastened to announce in the press that he did not know any Vanderlip. As soon as the elections were over1 however, information of a quite different kind began to come in from America. In a number of newspaper articles Vanderlip came out in full support of an agreement with the Soviets and even wrote in one article that he compared Lenin to Washington. It turns out, therefore, that in the bourgeois countries we have propagandists for an agreement with us, and have won these propagandists from among representatives of exploiters of the worst type, such as Vanderlip, and not in the person of the Soviet ambassador or among certain journalists. When I told a meeting of leading executives what I am now telling you, a comrade just back from America where he had worked in Vanderlip's factories, said he had been horrified; nowhere had he seen such exploitation as at Vanderlip's factories. And now in the person of this capitalist shark we have won a propagandist for trade relations with Soviet Russia, and even if we do not get anything except the proposed agreement on concessions we shall still be able to say that we have gained some- thing. We have received a number of reports, secret ones, of course, to the effect that the capitalist countries have not given up the idea of launching a new war against Soviet Russia in the spring. We have learnt that preliminary steps are being taken by some capitalist states, while white guard elements are, it may be said, making preparations in all, countries. Our chief interest therefore, lies in achieving the re-establishment of trade relations, and for that purpose we need to have at least a section of the capitalists on our side.

In Britain the struggle has been going on for a long time. We have gained by the mere fact that among those who represent the worst capitalist exploitation we have people who back the policy of restoring trade relations with Russia. The agreement with Britain-a trade agreement-has not yet been signed. Krasin is now actively negotiating it in London. The British Government has submitted its draft to us and we have presented our counter draft, but all the same we see that the British Government is dragging out the negotiations and that there is a reactionary military group hard at work there which is hindering the conclusion of trade agreements and has so far been successful. It is our prime interest and prime duty to support anything that can strengthen the parties and groups working for the conclusion of this agreement with us. In Vanderlip we have gained such a supporter, not by mere chance or because Vanderlip is particularly enterprising or knows Siberia very well. The causes here lie much deeper and are linked with the development of the interests of British imperialism, which possesses a huge number of colonies. This rift between American and British imperialism is deep, and it is our imperative duty to base ourselves on it.

I have mentioned that Vanderlip is particularly knowledge- able in respect of Siberia. When our, talks were ending, Comrade Chicherin pointed out that Vanderlip should be received because it would have an excellent effect on his further actions in Western Europe. Of course, the prospect of talking to such a capitalist shark was not of the pleasantest; but then I had had to talk very politely, by way of duty, even to the late Mirbach, so I was certainly not afraid of a talk with Vanderlip. It is interesting that when Vanderlip and I exchanged all sorts of pleasantries and he started joking and telling me that the Americans are an extremely practical people and do not believe what they are told until they see it with their own eyes, I said to him, half in banter: "Now you can see how good things are in Soviet Russia and you can introduce the same in America." He answered me, not in English but in Russian: "Mozhethyt."* "Why, you even know Russian?" He answered: "A long time ago I travelled five thousand versts through Siberia and the country interested me, greatly." This humorous exchange of pleasantries with Vanderlip ended by his saying as he was leaving "Yes, it is true Mr. Lenin has no horns and I must tell that to my friends in America." It would have seemed simply ridiculous had it not been for the further reports in the European press to the effect that the Soviets are a monster no relations can be established with. We were given an opportunity to throw into that swamp a stone in the person of Vanderlip, who favours the re- establishment of trade relations with us.

There has not been a single report from Japan that has not spoken of the extraordinary alarm in Japanese commercial circles. The Japanese public say that they will never go against their own interests and are opposed to concessions in Soviet Russia. In short, we have a terrific aggravation of the enmity between Japan and America and thus an undoubted slackening or both Japanese and American pressure on us.

At the meeting of executives in Moscow where I had to mention the fact, the following question was asked. "It appears,” one of the comrades wrote, “that we are driving Japan and America to war, but it is the workers and peasants who will do the fighting. Although these are imperialist powers, is it worthy of us socialists to drive two powers into a war against each other, which will lead to the shedding of workers’ blood?" I replied that if we were really driving workers and peasants to war that would be a crime. All our politics and propaganda, however, are directed towards putting an end to war and in no way towards driving nations to war. Experience has shown sufficiently that the socialist revolution is the only way out of eternal warfare. Our policy, therefore, is not that of involving others in a war. We have not done anything justifying, directly or indirectly, a war between Japan and America. All our propaganda and all our newspaper articles try to drive home the truth that a war between America and Japan would be just as much an imperialist war as the one between the British and the German groups in 1914, and that socialists should think, not of defending their respective countries but of overthrowing the power of the capitalists; they should think of the workers' revolution. Is it the correct policy for us to use the discord between the imperialis.t bandits to make it more difficult for them to unite against us, who are doing everything in our power to accelerate that revolution, but are in the position of a weak socialist republic that is being attacked by imperialist bandits? Of course, it is the correct policy. We have pursued that policy for four years. The Treaty of Brest-Litovsk was the chief expression of this policy. While the German imperialists were offering resistance, we were able to hold out even when the Red Army had not yet been formed, by using the contradictions existing between the imperialists.

Such was the situation in which our concessions policy in respect to Kamchatka emerged. This type of concession is quite exceptional. I shall speak later of the way the other concessions are taking shape. For the moment I shall confine myself to the political aspect of the question. I want to point out that the relations between Japan and America show why it is to our advantage to offer concessions or to use them as an inducement. Concessions presume some kind of re-establishment of peaceful agreements, the restoration of trade relations; they presume the possibility for us to begin direct and extensive purchases of the machinery we need. We must turn all our efforts to achieving this. That has not yet been done.

The comrade who has asked about the resumption of trade relations with Britain wants to know why the signing of the agreement with that country has been held up. My answer is that it is being delayed because the British Government is hesitant. Most of the trade and industrial bourgeoisie in Britain. are in favour of relations being resumed and clearly realise that any action for war means taking enormous risks and speeding up the revolution. You will remember that during our drive on Warsaw 50 the British Government presented us with an ultima tum, threatening to order its navy to sail against Petrograd. You wi1I1 remember that Councils of Action 51 sprang up all over Britain at the time and the Menshevik leaders of the British working class declared that they were against war and would not permit one. On the other hand, the reactionary section of the British bourgeoisie and the military clique at court are in favour of the war continuing. The delay in signing the trade agreement must undoubtedly be ascribed to their influence. I shall not go into all the details of these trade relations with Britain, OT of this agreement on trade relations with Britain, because it would take me too far afield. This delicate problem had recently to be very thoroughly discussed by the Central Committee of the Party. We have returned to it again and again, and our policy in this matter has been marked by the greatest degree of accommodation. Our aim now is to obtain a trade agreement with Britain so as to start more regular trade and be able to buy as soon as possible the machinery necessary for our extensive plan to rehabilitate the national economy. The sooner we do this the greater will be the basis ensuring our economic independence of the capitalist_ countries.

... While we stand alone and the capitalist world is strong, our foreign policy consists, on the one hand, in our having to utilise disagreements (to vanquish all the imperialist powers would, of course, be a most pleasant thing, but for a fairly long time we shall not be in a position to do so). On the one hand, our existence depends on the presence of radical differences between the imperialist powers, and, on the other, on the Entente's victory and the Peace of Versailles having thrown the vast majority of the German nation into a situation it is impossible for them to live in. The Peace of Versailles has created a situation in which Germany cannot even dream of a breathing- space, or of not being plundered, of not having the means of subsistence taken away from her, of her people not being doomed to starvation and extinction; Germany cannot even dream of any of these things, so that, naturally, her only means of salvation lies in an alliance with Soviet Russia, a country towards which her eyes are therefore turning. They are furiously opposing Soviet Russia; they detest the Bolsheviks and shoot down their own Communists in the manner of real white guards. The German bourgeois government has an implacable hatred of the Bolsheviks, but such is its international position that, against its own desires, the government is driven towards peace with Soviet Russia. That, comrades, is the second corner- stone of our international policy, our foreign policy; it is to show peoples that are conscious of the bourgeois yoke that there is no salvation for them without the Soviet Republic. Since the Soviet Republic withstood the onslaught of the imperialists for three years, this goes to show that one country, and that country alone, has been successful in hurling back this imperialist yoke. That country has been called a country of "robbers"; "plunderers", "bandits", Bolsheviks, etc.-let that be so, but still it is impossible to improve the economic situation without that country.

In a situation such as this, the question of concessions acquires still, another aspect. The pamphlet I have in my hands is the Decree on Concessions of November 23. It will be· distributed to all members of the Congress. We intend to publish this pamphlet abroad, in several languages. It is our immediate object to do everything possible to arouse interest in concessions among the population of the greatest number of countries, to interest those countries that are the most oppressed. The divergence of interests between Japan and America is very great. They are unable to agree between themselves over China, a number of islands, etc. '!'he divergence of interests between Germany and the Entente is of another kind. Germany's existence has been made impossible by the conditions in which the Entente has placed her. People are dying there because the Entente has been requisitioning their motors and their cattle. Such a situation urges Germany towards a rapprochement with Soviet Russia. I do not know the details of the treaty between Germany and. the Entente, but in any case, the treaty is known to ban direct trade relations between Germany and Soviet Russia. When we arranged for the purchase of German locomotives, that was done through the agency of Sweden. Germany will hardly be able to restore direct trade relations with us before April 1921. However, progress in restoring our trade relations with Germany is mor rapid than with the Entente. The conditions of existence in Germany are compelling the German people as a whole, including the Black Hundreds and the capitalists, to seek relations with Soviet Russia. Germany is already linked with us by certain trade relations. These links can become closer inasmuch as we are offering Germany agricultural concessions. It is therefore clear that we must advance concessions as an economic method even irrespective of the measure in which we are able to put the project into effect. The interest in concessions is so obvious that even if we do not succeed in granting a single concession, or none of our agreements are put into effect (and even that is quite possible)—even in that case we shall still have gained something, and we still have to pursue our policy because by so doing we make it more difficult for the imperialist countries to attack us.

Irrespective of this, we must tell all the oppressed peoples that a handful of countries are overtly or covertly, consciously or unconsciously, strangling other peoples—this derives from the Treaty of Versailles—and these peoples are turning to us for help, and are becoming more and more aware of the economic necessity of an alliance with Soviet Russia against international imperialism. Agricultural concessions, therefore, are of a wider scope than the old bourgeois concessions; they are different from the old capitalist concessions. They remain capitalist in character inasmuch as we tell the German capitalists to bring so many tractors into our country, in exchange for which we shall give them so much excellent virgin land and grain. We are attracting capital with the prospect of tremendous profits. In this respect the concessions are a purely capitalist undertaking, but they acquire an immeasurably greater significance because Germany as a nation, Austria and other countries cannot exist because they need aid in food and because the entire people, irrespective of whether the capitalists make a profit of a hundred or two hundred per cent, can, despite anti-Bolshevik prejudices, see that the Bolsheviks are establishing completely different international relations which make it possible for all oppressed peoples to rid themselves of the imperialist yoke. That is why our successes of the last three years will lead to still greater successes in foreign policy during the coming year. Our policy is grouping around the Soviet Republic those capitalist countries which are being strangled by imperialism. That is why our concessions proposal has more than a capitalist significance; that is why it is a hand held out, not only to the German capitalists with the offer, “Bring us hundreds of tractors and make as much as three hundred per cent on each ruble if you like"; it is a hand held out to oppressed peoples, an alliance of the oppressed masses, which is a factor in the future proletarian revolution. The doubts and fears that still exist in the advanced countries, which assert that Russia could risk a socialist revolution because she is a vast country with her own means of subsistence while they, the industrial countries of Europe, cannot do so because they have no allies—these doubts and fears are groundless. We say: “You now have an ally, Soviet Russia.” Since we are granting concessions, this will be an alliance that will consolidate the alliance against world imperialism. This is a postulate that must not be lost sight of, it justifies our concessions policy and proves the need to grant concessions.

And now for several purely economic considerations. I shall now go on to these considerations and read out the stipulations of the law, although I hope that the comrades present here have read the law of November 23. I shall, however, remind you briefly that it says that concessionaires _shall be paid with part of the products, that when special technical improvements have been introduced, we are prepared to offer trade advantages, and that the term of concessions will be more or less prolonged, depending on the volume and character of the expenditures involved. We guarantee that property invested in an enterprise shall not be confiscated or requisitioned.

Without such a guarantee owners of private capital and private property will not, of course, enter into relations with us. The question of courts, which was at first raised in the draft agreement, was subsequently removed, since we saw that this was not to our advantage. Thus, the judicial authority on our territory remains in our hands. In the event of a dispute, the issue will be settled by our judges. This will be not requisitioning but the lawful exercise of jurisprudence by our judicial bodies.

The fifth clause in the agreement deals with the code of labour laws. In the original draft of the agreement, which was discussed with Vanderlip, provision was made for the withdraw- al of the application of the labour code in localities inhabited by underdeveloped tribes, we cannot say which. In such places no code of labour laws is possible. The labour code was to be replaced in such areas by a special agreement on guarantees for the workers.

In the final clause we guarantee the concessionaire against any unilateral changes. Without this guarantee, there can, of course, be no question of granting concessions. The question of what is meant by non-unilateral changes has, however, been left open. That will depend on the text of the agreement on each individual concession. Arbitration may be possible through some of the neutral powers. This is a point that may lead to differences and leaves a certain latitude in determining the actual terms of a concession. It should, incidentally, be pointed out that in the capitalist countries the Menshevik leaders of the working class are considered reliable people. They enter bourgeois governments, and it is very difficult for bourgeois governments to challenge such mediators or arbitrators as the Mensheviks or social-traitors of the European countries. Experience has shown, however, that when any serious tension arises, the American and European Mensheviks behave just like the Russian Mensheviks do, i.e., they do not know how to behave, and are obliged to yield to the pressure of the revolutionary masses, though they themselves remain opposed to the revolution. The question remains open; we shall not decide it in advance.

From the terms that I have read out to you, you will see that economic relations between the capitalist concessionaires and the Socialist Republic are far from stable or durable. It is obvious that a capitalist who retains private property and exploitation relations cannot be anything but a foreign body in a socialist republic. Hence one of the main themes in my report: concessions are a continuation of war by other means. I shall deal with that in detail in a moment, but first I want to mention the three main forms or kinds of the concessions.

In this pamphlet we have given a list of the chief concessions; the comrades from the Supreme Council of the National Economy who provided the material for the pamphlet and edited it, have appended maps showing these objects. These maps show that the ·concessions fall into three main groups first, timber concessions in the far North, second, agricultural concessions and third, mining concessions in Siberia.

Our economic interest in timber concessions in the far North of European Russia is obvious; there are tens and even hundreds of millions of dessiatines of forest land which we are quite unable to exploit because we lack the railways, the means of pro- duction and the possibility of providing the workers there with food, but which could be exploited by a country that owns a big merchant fleet and could fell and saw timber properly and export it in tremendous quantities.

If we want to trade with foreign countries-and we do want to, because we realise its necessity-our chief interest is in obtaining as quickly as possible, from the capitalist countries, the means of production (locomotives, machinery, and electrical equipment) without which we cannot more or less seriously re- habilitate our industry, or perhaps may even be unable to do so at all, because the machinery needed by our factories cannot be made available. It is with the motive of extra profit that we must attract the capitalist. He will get surplus profit well, let him have that surplus profit; we shall obtain the fundamentals that will help strengthen us; we shall stand firmly on our own feet, and shall win in the economic field. We shall have to pay up if we want to get the best machinery, etc. What are we to pay with? We still dispose of gold reserves totaling several mil- lions. You will see from the special plan for the electrification of Russia, drawn up for several decades, that this plan, together with the additional work for the rehabilitation of industry, will involve an approximate expenditure of something like 17,000 mil- lion gold rubles. Electrification alone will require the direct expenditure of more than 1,000 million rubles in gold. We cannot cover this with our gold reserves; it is extremely undesirable and dangerous for us, to export foodstuffs because we have not got sufficient for our own industry, and yet this need has to be met. In this case there is no concession project economically more suitable for us than the forests of the far North which cover an enormous area, and where the timber is rotting away and a total loss because we are economically unable to exploit these timber reserves. Timber, however, is of tremendous value on the world market. Besides, the far North is also convenient politically because it is an outlying border area. This concession is convenient to us both politically and economically, and we must make the best possible use of it. At the Moscow Conference I have told you about, Milyutin said that negotiations with Britain about concessions in the north of European Russia are progressing. There are several scores of millions of dessiatines of standing timber there. If we grant three or five million dessiatines disposed chequerwise, we shall get 0'n opportunity to derive advantage from up-to-date enterprises, .an opportunity to learn, by stipulating that our technicians take part in the work; we shall thus gain a lot and make it difficult for capitalist powers that enter into deals with us to take part in military action against us, because war cancels everything, and should one break out we shall get possession of all the buildings, installations and railways. Any possible action against us by new Kolchaks, Denikins and others will not be made the easier.

The second type is agricultural concessions. With the exception of West Siberia with its vast expanses of excellent land, inaccessible to us because of its great distance from railways, there are in European Russia and along the River Ural alone (our Commissariat of Agriculture has taken the necessary steps and has calculated the amount of land we cannot cultivate, which is no less than 3,000,000 dessiatines along the River Ural, abandoned by entire Cossack villages54 as a result of the victorious culmination of the Civil War) excellent lands that must be brought under the plough, but which we cannot cultivate be- cause of the shortage of draught animals and our weakened productive forces.

The state farms of the Don Region have about 800,000 desi- tines which we cannot cultivate; to cultivate this land we shall need a tremendous number of draught animals or entire tractor columns that we cannot put on the fields, while some capitalist countries, including those that urgently need foodstuffs-Austria, Germany and Bohemia-could put tractors to work and obtain e:x;cellent wheat in good season. We do not know to what ex- tent we shall be able to carry that out. At present we have two tractor plants functioning, in Moscow and Petrograd, but in consequence of the difficult conditions that. obtain they cannot produce tractors in large numbers. We could ease the situation by purchasing a greater number of tractors. Tractors are the most important means of effecting a radical change in the old farming methods and of extending the area cultivated. By such concessions we shall show a large number of countries that we are able to develop the world economy on a gigantic scale. If our propaganda and our proposal do not meet with success, and if our proposal is not accepted, we shall still reap an advantage that is not only political but socialist as well. What is going on in the capitalist world is not only a waste of .wealth, but madness and a crime, for in some countries there is a food surplus that cannot be sold because of currency revolutions, since money has depreciated in a number of countries that have suffered defeat. Huge stocks of foodstuffs are rotting away, while tens of millions of people in countries like Germany are actually starving. This absurdity, this crime of capitalism, is becoming obvious to all capitalist countries and to the small countries that surround Russia. To the capitalist countries the Soviet Re- public says: "We have hundreds of thousands of dessiatines of excellent land that can be ploughed with tractors; you have the tractors, the petrol and the trained technicians; we propose to all peoples, including the peoples. of the capitalist countries) to make the rehabilitation of the economy and the salvation of all peoples _from hunger their main object." If the capitalists do not understand this, it is an argument demonstrating the corruption, madness and criminal nature of the capitalist system. That will be of more than mere propaganda value: it will be a communist call for revolution, for it shows beyond doubt that capital ism is falling apart and cannot satisfy the people's needs, a fact that is more and more penetrating into the consciousness of all peoples. An insignificant minority of imperialist countries are growing rich, while a large number of other countries are actually on the verge of ruin. The world economy needs reorganization, and the Soviet Republic comes forward with a plan of reconstruction, with the following incontestable business-like, and realisable proposal: "You are starving under capitalism, despite the fabulous wealth of machinery. We can solve the crisis by bringing together your machinery and our raw materials, but the capitalists are in the way. We have proposed to them that they should accept our offer, but they are holding back and wrecking our plan." That is the second type of concession, the agricultural or tractor type.

Mining concessions are the third type. These are indicated on the map of Siberia, with details of each area in· which con sessions are being considered, Siberia's mineral wealth is literally boundless, and at best, even given significant progress, we cannot exploit even a hundredth part of it for many years. The minerals are to be found in conditions that demand the best machinery. There are such products as copper ore, which the capitalists need badly for their electrical industry because it is in such short supply. It is possible to rehabilitate the world economy and improve the world’s technology if they enter into regular relations with us. ·

It is, of course, more difficult to implement these concessions, i.e., they present greater difficulties than timber or agricultural concessions do. As far as agricultural concessions are concerned, it is only a matter of a brief working period with tractors being used. Timber concessions are also easier, especially as they concern an area, we cannot avail ourselves of; but mining concessions are frequently at no great distance from the railways, frequently in densely populated areas. Here the danger is serious, and we shall weigh the pros and cons very carefully to see whether or not they should be granted; we shall do so on definite terms, for there is no doubt that concessions are a new kind of war. The capitalists are coming to us to wage a new kind of war-the very existence of the capitalists is in itself a war against the socialist world surrounding them. Capitalist enterprises in a socialist state are in the economic sense a war for freedom of trade, against the policy of compulsory deliveries,55 a war for private property against a republic that has abolished that property. On this economic basis there develop a variety of relationships (similar to the hostility between the Sukharevka Market56 and our institutions). We may be told. that we are closing down the Sukharevka black ·market but opening up a number of other "Sukharevkas" by letting the capitalists in. We have not closed our eyes to this, and say: if we have been victorious till now, if we were victorious when our enemies used every means to disrupt our enterprises; when there was disruption from within combined with that from without, then we must surely be able to deal with such things, to keep an eye on them when they are in certain limited areas and there are definite conditions and relations. We have practical experience of the struggle against military espionage and against capitalist sabotage. We fought against them when they were under . cover ·in our own institutions; surely we shall be able to handle them when the capitalists have been let in according to a definite list and under definite conditions. We know, of course, that they will try to break · these conditions, and we shall combat such infractions. But, comrades, concessions on a capitalist foundation means war.

. . .It would be grossly mistaken to think that a peaceful agreement on concessions is a peaceful agreement with capitalists. It is an agreement concerning war, but an agreement that is less dangerous to us, besides being less burdensome for the workers and peasants, less burdensome than at the time when the best tanks and guns were being thrown into action against us; we must therefore use all methods, and, at the cost of economic concessions, develop our economic forces and ··facilitate our eco• nomic rehabilitation. The capitalists will, of course, not honour their agreements, say comrades who are afraid of concessions. It is quite impossible, of course, to be sure that the capitalists will honour agreements. It will be a war, and war is the ultimate argument, . which in general remains an argument entering the relations of the socialist republic. .

War threatens us at any hour. We are conducting peace negotiations with Poland, and there is every chance that peace will be concluded, or at least, to be more exact, the vast majority of chances are that peace will be concluded. 57 There is no doubt, however, that the Savinkovs and the French capitalists are working to prevent the treaty from being signed. To the capitalists war is possible tomorrow if not today, and they would willingly star t a war today if they had not learnt something from three years' experience. Concessions constitute a certain risk; they are a loss; they are the continuation of war. There is no doubt of this, but it is a war that is more to our advantage. When we have obtained a certain minimum of the means of production, locomotives and machines, then we shall be different, in the eco- nomic sense, from what we have been till now, and the imperialist countries will be still less dangerous to us.

We have been told that the concessionaires will create exclusive conditions for their workers, and supply them with better clothes, better footwear, and better food. That will be their propaganda among our workers, who are suffering privation and will have to suffer privation for a long time to come. We shall then have a socialist republic in which the workers are poverty- stricken and next to it a capitalist island, in which the workers get an excellent livelihood. This apprehension is frequently voiced at our Party meetings. Of course, there is a danger of that kind, and it shows that concessions are a continuation of war and do not constitute peace. We have, however, experienced far greater deprivations and have seen that workers from capitalist countries nevertheless come to our country, knowing that the economic conditions awaiting them in Russia are far worse; surely, then, we ought to be able to defend ourselves against such propaganda with counter-propaganda; surely we should be able to show the workers that capitalism can, of course, provide better conditions for certain groups of its workers, but that this does not improve the conditions of the rest of the workers. And lastly, why is it that at every contact with bourgeois Europe and America we, not they, have always won? Why is it that to this day it is they who fear to send delegations to us, and not we to them? To this day we have always managed to win over to our side at least a small part of the delegations, despite the fact that such delegations consisted in the main of Menshevik elements and that they were people who came to us for short periods'. Should we be afraid of being unable to explain the truth to the workers?! We should be in a bad way if we had such fears, if we were to place such considerations above the direct interest which is a matter of the greatest significance as far as concessions are concerned. The position of our peasants and workers re mains a difficult one. It must be improved. We cannot have any doubt on that score. I think we shall agree that the concessions policy is a policy of continuation of the war, but we must also agree that it is our task to ensure the continued existence of an isolated socialist republic surrounded by capitalist enemies, to preserve a republic that is infinitely weaker than the capitalist enemies surrounding it, thereby eliminating any possibility of our enemies forming an alliance among themselves for the struggle against us, and to hamper their policies and not give them an opportunity to win a victory. It is our task to secure for Russia the necessary machinery and funds for the restoration of the economy; when we have obtained that, we shall stand so firmly on our own feet that no capitalist enemies can overawe us. That is the point of view which has guided us in our policy on concessions, the policy I have outlined.
Vol. 31, pp. 463-72, 475-86