Concession policy and practice at the Russian Far East in 1920-1940s: trade-offs and results

Modern political leverage from western countries to Russia allows researchers to use domestic historical experience of 1920-1940s. International isolation of Soviet Russia induced the search of different ways out, including making concessionary agreements with foreign entrepreneurs. Since 1921 concessionary agreements were made between Soviet Russia/USSR and Germany, England, USA, Japan, Norway, Poland, Austria, Italy, France, Persia, Denmark, Finland, Latvia, Holland, Sweden, Estonia, Lithuania, Turkey, China and Mongolia. Soviet economy began attracting private foreign capital. At the end of the 1920s Soviet government set a course to liquidate private property. Share of concessionary enterprises in the national economy decreased. But despite the absence of any new concessionary agreements since 1929, concessionary affairs in USSR lasted till mid-1940 and only with Japan because of its deep political meaning. The author analyzes Japan concessions’ activity, such as “Kita Karafuto Koogio Kabusiki Kaisha” and “Kita Karafuto Sekio Kabusiki Kaisha” in 1930-1940s (pre- and World War II period), workers’ socio-economic conditions, relations between Japanese concessioners and Soviet authorities. Permanent infringements of concessionary agreements by Japan concessioners including concessions workers’ food and goods supply, price making, Soviet workers’ housing provision and dismissal, meeting safety requirements were registered. However, neither Japan concessioners dissolve their enterprises nor Soviet authorities aned concessionary agreements. The author concludes that originally in 1925 granting concessions to Japan businessmen in USSR was among the conditions of Japan government diplomatic recognition of USSR. Further Japan concessions in USSR were deterrent factor from Japan military invasion to the Russian Far East.