Negotiations on the working conditions of Soviet experts in China

When it was decided that a new Sino-Soviet treaty would be signed, on January 5, 1950, the Soviet Ministry of Foreign Affairs, the Ministry of Communications and other institutions organized special committees to draft relevant treaties and various draft agreements. After repeated discussions and revisions, on 22 January Molotov, Mikoyan, and Vyshinsky submitted to Stalin 12 drafts drafted by the special committees, including the Agreement on the Conditions for the Payment of Fees of Soviet Experts Working in Chinese Organs, Groups and Enterprises, and the Resolution of the Council of Ministers of the USSR on sending Soviet experts and teachers to work in China. The Central Committee of the Communist Party of the Communist Party (Brazzaville) immediately approved the drafts. [Unfortunately, researchers have not yet seen the original text of the agreement and resolution.] However, in the negotiations with Zhou Enlai, the basic intentions and demands of the Soviet side were clearly seen, that is, they changed the conditions that Stalin had promised: soviet experts would only receive the same salary as Chinese experts, and the rest would be subsidized by the Soviet government.

The LEADERS of the Communist Party of China were very grateful and appreciative of the preferential conditions proposed by Stalin in August 1949. Liu Shaoqi once made a special mention of this point when he made a report at the inaugural meeting of the General Association of Sino-Soviet Friendship Associations:

Now that the Soviet Union has sent more than two hundred experts to serve in China, especially to the northeast, I have asked them about the conditions of service in China, and they have said: Stalin sent them to Serve in China at the request of the Communist Party of China, instructing them to tell Chinese all their knowledge and skills, and when Chinese can learn, to manage their factories and enterprises without difficulty, and to go back to the Soviet Union when they do not need them to serve in China. They come to China, and China assigns their work, and when they are assigned to the factories, the enterprises, and the economic organs, they work under the leadership of the Chinese leaders of the factories, enterprises, and organs, and they work only as consultants. They are paid only the same salary as the Chinese equivalent engineers, rather than the high salaries they receive like the British and American engineers. These conditions of work in China were unprecedented by foreign engineers in the past, and only Soviet experts automatically proposed them. Commerce between the Soviet Union and China has now begun, and the terms of trade proposed by the Soviet Union are also completely friendly and self-denying, which cannot be found in other capitalist countries. These are some concrete manifestations of the internationalist spirit of the Soviet people.

At the same time, considering the actual living standards of these experts in the country, the CCP leaders have also paid attention to taking special care of them in terms of treatment. On September 24, 1949, Bo Yibo, deputy director of the Central Financial and Economic Commission, called the Central Committee of the Communist Party of China and pointed out: It is said that the salaries of Soviet experts in their countries are five or six times the maximum salary of our technical personnel, but they declare that they must be paid the same as the salaries of experts in China. We are therefore preparing special shops to subsidize them through rationing in kind. On September 29, Liu Shaoqi, on behalf of the CPC Central Committee, replied to Chen Yun and Bo Yibo: Regarding the temporary salaries of Soviet experts,

The provisional maximum standard is 2500 pounds of millet, and the specific salary amount of Soviet experts at all levels below the highest standard should be decided in consultation with Comrade Kovalev. In addition to such salary provisions, the prices of meals in canteens and the establishment of special shops are still required. Regarding the establishment of special shops and the price of goods for special shops and the price of meals in the canteen, please consult with Comrade Kovalev in advance. During the war, due to the different currencies issued by the liberated areas and the instability of prices, the CPC's financial budget and final accounts and cadre supply standards were calculated in terms of millet kilograms, which continued for some time after the establishment of the new government. At that time, the treatment of the ministers of the Chinese government was 2800 kilograms of millet per person per month, and the experts who came to China with Liu Shaoqi, except for a few who were deputy ministers, were mostly cadres at the level of departments and bureaus. In addition, special-priced canteens and shops are not treated by general technicians.

However, after Zhou En's arrival in Moscow, he learned that the Soviet side had put forward new and completely different conditions.

On January 30, 1950, the Council of Ministers of the USSR made a resolution stipulating the wages and conditions for Soviet experts to work in China. During negotiations with Vyshinsky and Mikoyan on Feb. 11, Zhou Enlai said he did not understand the meaning of article 4 of the draft agreement on the payment of expert fees, which stipulates that the Chinese government should pay each expert a monthly compensation of 2,000 to 4,000 rubles. The Soviet side explained that the money would be used as compensation for the enterprises where the experts had previously worked, and that it was paid through the Soviet government. Zhou Enlai also tactfully proposed: "If it is stipulated that payment is made in US dollars, then the Chinese government will have to pay a large amount of money, and if it is settled in kind, it will be easier for the Chinese government." Mikoyan replied that the draft agreement stipulated that payments could be made in kind, as well as in gold, dollars and pounds. Zhou Enlai asked again whether the agreement included all kinds of experts, including military experts and teachers. Vyshinsky replied in the affirmative. Zhou Enlai also proposed that he wanted to state in the agreement: "The period of travel of Soviet experts in China is two to three years. The Soviet side explained that the draft agreement specified that the time limit for experts in China was one year, but there was also a supplementary clause that could extend the time limit. Finally, Zhou Enlai promised to inform the Soviet side of china's amendments to the draft. From the dialogue of this negotiation, we can understand the general content of the draft new agreement of the Soviet side: First, stalin promised during the talks with Liu Shaoqi that the Chinese government would only pay the salaries of Soviet experts working in China, and its standards were consistent with the salary level of the same personnel as those in China, and now it would need to pay an additional amount of compensation; second, the payment of this fee was not only for economic and technical experts, but also for military advisers and teachers. That is to say, the Chinese government should pay an additional fee for all experts and consultants who come to China; third, this compensation fee can be paid in foreign exchange or in kind; fourth, the period of work of experts in China is generally one year, which can be extended if necessary.

Obviously, this new condition proposed by the Soviet side is very different from what Stalin said to Liu Shaoqi in August 1949, and it surprised and made the Chinese side feel surprised and difficult to accept. The next day, when Zhou Enlai met with Luo Shen, he asked him to convey to Mikoyan and Vyshinsky that after careful consideration of Article 4 of the new agreement (zhou specifically pointed out that this was negotiated with Mao Zedong himself), zhou specifically pointed out: "The monthly compensation paid to the Soviet government for the loss of enterprises for soviet experts of the monthly payment of 2,000 to 4,000 rubles, especially if it is stipulated that this money be charged in US dollars, will be very difficult for the Chinese government to accept." Zhou Enlai emphasized: "This cost is equivalent to 10,000 to 18,000 kilograms of millet per month, while the chairman and vice chairman of the Central People's Government only have 3,400 kilograms of millet per month, and the minister only has 2,800 kilograms of millet." Zhou Enlai proposed: "We believe that if we adopt the method of supplying various food and commodities as compensation, it is much easier for the Chinese side than to pay us dollars." We believe that the Soviet side will consider these circumstances. In addition, it is required to tell us the approximate figures paid to each expert, which includes the amount in United States dollars and the quantity of various food products calculated at the price of the corresponding commodity purchased on the international market. In understanding this passage, there is a question, that is, why did Zhou Enlai raise the question of the best not to pay the US dollars when the Soviet side had already explained that the compensation could be paid in kind? Literally, the draft agreement stipulates that compensation can be paid in kind or in foreign exchange, but the Soviet side stressed during the negotiations that this fee will be paid to the relevant enterprises through the Soviet government, and the actual intention is to pay foreign exchange to the Chinese side, because the physical object, especially what Zhou Enlai called "the way of various foods and commodities", is obviously unacceptable to ordinary enterprises. Zhou Enlai, of course, understood the Soviet side's intentions, so he repeatedly stressed the need to pay in kind, the original intention of which was to gently state that the amount of compensation was too large for the Chinese government to bear.

As a result, Mao Zedong and Zhou Enlai did not solve the problem when they were in Moscow.

After Mao Zedong and Zhou Enlai left Moscow on February 17, Li Fuchun and Wang Jiaxiang, ambassador to the Soviet Union, continued to negotiate with the Soviet side as Chinese representatives on an agreement on working conditions for experts. On March 6, Zhou Enlai informed the Chinese delegates that the draft Sino-Soviet expert agreement was agreed to in its entirety, except for a few draft amendments. He also stressed two points: the compensation was set at 1500 to 3000 rubles; the subsidy fee should be clearly paid to the expert himself in China, not to the Soviet government. At this time, the Soviet side also raised the issue of the payment of salaries for non-commissioned officers and soldiers who accompanied military advisers to China. To this end, the Politburo of the Central Committee of the Communist Party of The Communist Party of Bulgaria (Brazzaville) issued a resolution on March 7, which stipulated that the Chinese government would pay the Soviet government the price of 1,500 rubles per person per month for non-commissioned officers of the Soviet army on business trips to China, in accordance with the salary conditions of Soviet experts; in addition to bearing all the living expenses of Soviet soldiers, the Chinese government would also compensate for the expenses of the round-trip journey and the cost of luggage. This undoubtedly increases the difficulty of negotiations. On March 8, Wang Jiaxiang continued to hold talks with Gromyko and acting director of the First Far East Division, Г.И. Tongjin, deputy director И.Ф. Kurdyukov, and first secretary К.А. Krudikkov. After the topic turned to the issue of the agreement between Soviet experts on working conditions in China, Wang Jiaxiang first talked about several issues such as the name of the agreement and the way of wording, and then questioned Article 4 of the agreement again. Wang Jiaxiang said that since China should pay compensation to the Soviet government at 1500 to 3000 rubles per expert every month, it was necessary to determine in what way to build up reserves to pay these funds. Gromyko replied that the question of the modalities of payment required additional discussion. Wang went on to point out that the Chinese side intends to build up the Soviet Union's currency reserves through the sale of soybeans, and the Chinese government hopes to discuss this proposal Chinese the delegation of the People's Bank of China during their stay in Moscow. Gromyko shirked that proposals like this were within the scope of trade negotiations. But Wang insisted that Zhou Enlai, when talking to Mikoyan about the necessity of the Chinese Bank delegation coming to Moscow, pointed out three tasks they faced: signing an agreement between the two sides on loan settlement, resolving problems in the payment of trade agreements, and deciding on the method of payment of soviet experts working in China. Representatives of the Chinese Mind Bank and the National Bank of the USSR have discussed only the first issue at present. The representative of the State Bank of the USSR said that on the third question, they had not yet been informed. Therefore, Wang Jiaxiang explained that he was entrusted by the government to request instructions to the representatives of the State Bank of the USSR to discuss the payment of soviet expert fees and the relevant suggestions of the Chinese side on this issue. Gromyko had to agree to report to the government before replying. Obviously, because the Chinese side believes that the one-year time limit for experts to work in China is too short, Wang Jiaxiang proposed that the Chinese government hopes that when Soviet experts come to China, they can bring their families together so that they can work longer and better. To this end, the Chinese side believes that it is best to pay the part of the compensation paid by the Chinese government to the Soviet government directly to the multi-child experts in China. Gromyko replied that there was no need to make such a modification to the agreement, and whether to bring family members to China should be decided by the experts themselves according to the existing conditions and their own income. Finally, Wang Jiaxiang raised the question of the payment of salaries for non-commissioned officers and ordinary soldiers. Wang Jiaxiang immediately objected to Gromyko's opinion on the resolution of the Politburo of the Central Committee of the Communist Party of China (Brazzaville): since the number of non-commissioned officers in the Soviet advisers accounted for the majority, the payment of non-commissioned officers would be a very large amount. Moreover, in the Soviet Union, non-commissioned officers could only earn 500 to 600 rubles a month, but their compensation was equal to that of teachers and technical experts, which was very disproportionate. Wang Stressed that the conditions set for other experts should not be extended to this section of the military, and that "judging from China's current financial situation, the standard of 1500 rubles is too high." But Gromyko insisted that "the figures have been determined with many factors in mind, and our position is based on many appropriate reasons". The two sides quarreled over this, and Wang Jiaxiang said that he would report to the government the Soviet side's opinions on the payment of military experts, including non-commissioned officers and soldiers.

Since then, the Chinese representative has held talks with Mikoyan, vice chairman of the Council of Ministers of the Soviet Union, but there has been no progress. On March 16, Li Fuchun and others telephoned Mao Zedong and the Central Committee of the Communist Party of China, arguing that the treatment and conditions of experts proposed by the Soviet Union were too different from what Liu Shaoqi had discussed when he was in Moscow, and that especially non-commissioned officers and low-ranking officers should also be compared with the treatment and conditions of experts, which was difficult to accept. Li Fuchun and others proposed that experts and professors should be treated according to the agreement proposed by the Soviet side, but the treatment of military personnel should be agreed on separately and renegotiated, in which the treatment of non-commissioned officers and lieutenants should be reduced, and the compensation should be paid by the Chinese government according to 70% or 80% of the salary they received in the Soviet Union. After Mao Zedong saw this, he told Zhou Enlai in person: "There is no need to argue anymore, that is, to handle it as proposed." On the 19th, Zhou Enlai telegraphed Li Fuchun, Wang Jiaxiang, and Wu Xiuquan in the name of the CPC Central Committee: Regarding the terms of the expert agreement, "there is no need to argue anymore, that is, to handle it according to the conditions proposed by the Soviet government, and we have gained experience, stepped up our study, and worked cautiously so that we can streamline the experts in the next year, which is also very beneficial."

Perhaps sensing the Chinese government's difficulties, the Soviet leadership also considered the demands made by the Chinese side. On 22 March, the Politburo of the Central Committee of the Communist Party of The Communist Party of Bulgaria (Brazzaville) made three amendments to the resolutions of the Council of Ministers of the USSR of 30 January and 7 March 1950: first, the agreement "shall apply to all Soviet experts who had previously worked in China"; second, to reduce the compensation paid by the Chinese government to the Soviet government for Soviet non-commissioned officers in China to 1,000 rubles per person per month; third, to accept the Chinese side's proposal to amend article 3 of the agreement. The author found a document in the archives of the Chinese Ministry of Foreign Affairs on the agreement on the working conditions of Soviet experts in China, which should be the draft text of the agreement adopted by the Politburo of the CPSU Central Committee and submitted to China. This is the most complete agreement on the working conditions of Soviet experts in China that has been seen so far.

The Central People's Government of the People's Republic of China and the Government of the Union of Soviet Socialist Republics

Agreement on the conditions of work of Soviet experts in China

(March 1950)

Since the Government of the Union of Soviet Socialist Republics agreed to satisfy the request of the Central People's Government of the People's Republic of China to send Soviet experts to China to assist China in the restoration and development of the people's economy, the Central People's Government of the People's Republic of China and the Government of the Union of Soviet Socialist Republics agreed on the following articles: Article 1 The Government of the Union of Soviet Socialist Republics, at the request of the Government of the People's Republic of China, dispatches Soviet experts to the disposal of the People's Government of the People's Republic of China for the purposes of enterprises in the People's Republic of China, Also works in institutions and organizations. The duration of work of Soviet experts sent to China shall be one year. The extension of their working period in China shall be determined by mutual agreement. The question of the transfer of experts from China to the USSR will be decided by agreement of the competent authorities of the two sides. Any Soviet expert who is not a result of the Central People's Government of the People's Republic of China but who is transferred before the expiry of his or her term of office shall bear the cost of his or her transfer if he or she has not completed six months of service in China. If an expert of the Soviet Union is transferred back to the Soviet Union in advance, the Soviet side must replace it with another expert, and the costs associated with such dispatch and replacement shall be borne by the Soviet side. The Central People's Government of the People's Republic of China shall pay the Soviet experts in Chinese currency in Chinese currency in accordance with the salary standards laid down in the present or future treatment of Chinese experts of the same rank and of the same degree, and shall guarantee the other conditions to which Chinese experts enjoy, including the supply of food and industrial supplies, as well as subsidies other than those prescribed for salaries. The Central People's Government of the People's Republic of China shall pay to the Soviet side the following expenses for the Soviet experts sent to China: the travel expenses, salaries, meals and hotel expenses of the experts and their families during their travels to and from the Soviet Union and China, each person may carry up to eighty kilograms of luggage, the resettlement fee based on the monthly salary of the experts in the Soviet Union before they were dispatched, the annual leave compensation fee for which the experts should be entitled to one month's salary when working in China, and the Soviet experts working in various schools in China. The annual leave compensation fee due to two months' salary shall be paid directly by the Central People's Government of the People's Republic of China in Chinese currency. The Central People's Government of the People's Republic of China shall, in accordance with the degree of soviet experts, deliver to each expert of the Soviet Government 1,500 to 3,000 rubles per month to compensate the Soviet organs or enterprises for the losses suffered by the sending of their own experts abroad. Article 5 The Central People's Government of the People's Republic of China, while working in China, shall, at no cost, supply them with dwellings furnished with furniture, warmth and lighting equipment, or pay them the same costs as rented dwellings furnished, warm and lighting equipment. Article 6 The Central People's Government of the People's Republic of China shall, when a Soviet expert falls ill, cease to pay the salary for the entire period of illness, but not for a period not exceeding three months. If a Soviet expert continues to be ill for more than three months, the Government of the Union of Soviet Socialist Republics undertakes to replace him with another specialist of the same degree. All disputes relating to this Agreement shall be settled between the Central People's Government of the People's Republic of China and the Government of the Usser in accordance with diplomatic procedures. Article 8 This Agreement shall enter into force on the date of signature and shall remain in force for a period of six months from the date on which either Party declares its willingness to cease the validity of this Agreement. It was ordered in Moscow in March 1950 in two copies, each in Chinese and a Russian instrument, and the provisions in both languages are equally valid.

Plenipotentiary representative of the Central People's Government of the People's Republic of China

Plenipotentiary of the Government of the Union of Soviet Socialist Republics

On March 27, the Agreement on Working Conditions of Soviet Experts in China was signed in Moscow. [23] On 30 May, the Council of Ministers of the USSR issued Resolution No. 2264-883 "On the Remuneration of Soviet Military and Civilian Experts Working in Various Organs, Enterprises and Organizations in China". On 25 October, the two sides signed an agreement on the conditions for the remuneration of technical experts. The basic principles are the same as those of the March 27 agreement: China should pay Soviet experts salaries equivalent to the salary level of Chinese experts, in addition to pay compensation for experts on business trips, based on 1500 to 3000 rubles per person per month, as well as living allowances for experts. In view of the large number of design experts who came to work in China, on April 18, 1951, China and the Soviet Union signed the "Contract No. 00348" on the soviet design experts coming to China to collect design information, in which the "technical assistance conditions" attached to it still stipulate that the "wages and salaries of Soviet experts shall be paid according to the current salary standards of experts with equivalent positions and abilities in China, including allowances and bonuses other than wages".

Negotiations on the treatment and working conditions of Soviet advisers and experts came to an end. There is a problem that needs to be explained here, namely the difference between a consultant and an expert. As mentioned above, the two concepts were different from those of the Soviet Government, and although in a broad sense, consultants could also be called experts, but technical experts could not be called consultants. In China, for a long time, the two concepts of consultant and expert were mixed, especially in grass-roots units, and the average person could not distinguish between consultants and experts, only that the status of consultants was higher. Despite the confusion of the title (experts were not collectively referred to as experts until after 1957), the Bureau of Foreign Experts Affairs of the State Council (formerly known as the Expert Working Group of the Council of Ministers) had to separate the two when dealing with its business, because the scope of work of consultants and experts, the channels of hiring and the method of payment of related fees were different. Advisers were generally high-ranking Soviet cadres, such as deputy ministers, directors of the General Bureau or directors of departments, and their positions and levels were very high. After coming to China, they were assigned to various government departments, responsible for the work of institutional setup, rules and regulations, management systems, etc., and assisted in solving some major problems. However, cultural and educational experts and military experts are usually also classified as consultants. Experts are professional and technical personnel, hired according to the contractual requirements of the assistance project, and generally work in enterprises or economic authorities to solve specific technical problems. Except for advisers to the army, security and intelligence systems, which are applied for by all branches of the armed forces and headquarters, and handled uniformly by the Central Military Commission, all the work of Soviet advisers and experts is under the unified responsibility of the Bureau of Foreign Experts' Affairs. The employment of consultants (including experts in the cultural and educational system) is generally handled by the Ministry of Foreign Affairs in accordance with the agreement between the governments, and the salary part of the fee is paid by the Chinese side in RENMINBI, and the compensation part is settled in non-trade rubles (fixed exchange rate) and paid to the Soviet government in foreign exchange. The recruitment of experts (mainly technical assistance) is generally handled by the Ministry of Foreign Trade (through the Counsellor's Office of Commerce and Trade in the SOVIET) in accordance with the contract between enterprises, and its expenses (including wages and compensation) are settled with the Soviet government in trade rubles (floating exchange rate).

The 27 March agreement was actually for consultants, while the October 25 agreement was for experts. The principles of both are the same, but the payment methods are different. In terms of wages, it is of course reasonable and acceptable for the Chinese side to determine the same standards as Soviet experts and Chinese experts. As for the issue of compensation that has embarrassed the Chinese government, it should be viewed from two aspects. Objectively speaking, it should be the international practice for staff members to receive double salaries abroad, and the personnel of the unit who go abroad to work in other countries naturally need to get economic compensation from the other side, so there is nothing unreasonable about the soviet government's request. Of course, as far as China's economic situation at that time was concerned, the soviet wage level was much higher than that of China, and coupled with the compensation for the cost of sending expert units, this economic pressure was indeed unbearable for a new government. Subjectively speaking, it lies in the differences in concepts between China and the Soviet Union. The Communist Party of China has just taken power, and it has not yet experienced and experienced how to deal with the relations between states, let alone understood that even the relations between the allied countries need to be stipulated and constrained by strict legal provisions. In the eyes of the Chinese leaders, the two parties and the two countries are fraternal relations, and it is natural for the countries that succeeded in the revolution to help those who came after them, and here the ideal spirit of proletarian internationalism comes into play. The Soviet Union, which had been established for decades and experienced the ups and downs of international relations, had long been proficient in the diplomatic principles and techniques for handling various state relations. In Stalin's view, Although China was an ally of the Soviet Union, it was another independent country after all, and it was a country he did not understand and was a headache. Unless there is a particular reason to take care of it, Moscow can only follow the rules. Since Mao Zedong did not budge on the issue of the Sino-Soviet treaty, it is predictable that the Soviet government would be preoccupied with the negotiation of some specific agreements. During the Korean War, the different conditions under which China and the Soviet Union provided assistance to Korea were very typical of this difference in concept between the two sides. In addition to the Actual Expenses (wages, medical and transportation costs, etc.), the Chinese experts in North Korea also demanded compensation of 2,000 to 4,000 rubles, as well as luggage costs and travel allowances equivalent to 1 to 2 months' wages. North Koreans who come to China for internships enjoy exactly the same treatment as Chinese personnel, only to pay accommodation and travel expenses, while in the Soviet Union, the North Korean government also paid additional guidance fees for interns (100 to 150 rubles per person per month).

However, the unpleasantness that arose in the negotiations on the terms of employment of experts did not affect the enthusiasm and enthusiasm of the Chinese government to hire Soviet experts. In fact, before China and the Soviet Union signed an agreement on the treatment and conditions of experts coming to China, a large number of consultants and experts had already begun to work in China.

~~Soviet Experts in China (1948-1960)