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Xinjiang and the former Soviet Union jointly operated the Dushanzi oil refinery

Dushanzi, the starting point of the Duku Highway in Xinjiang, is located at the southwest edge of the Junggar Basin in the northern foothills of the Tianshan Mountains, and is the birthplace of Xinjiang's petroleum industry and one of the cradles of China's petroleum industry.

In April 1933, after Sheng Shicai took over the military and political power in Xinjiang, he actively sought support from the Soviet Union. In 1935, the Soviet Union sent a scientific expedition headed by the geological expert Shayidov and the drilling expert Ramuzes as the deputy head of the scientific expedition to conduct geological surveys in front of the Andi Sea and the northern foothills of the Tianshan Mountains. In 1936, the Xinjiang provincial government and the Soviet government decided to jointly explore and exploit Dushanzi oil. In April, the Dushanzi Petroleum Expedition Group was established, and in August it was renamed Dushanzi Petroleum ExpeditionAry, and began to conduct petroleum geological survey and drilling in Dushanzi.

1. The establishment of dushanzi oil refinery

In 1934, the Xinjiang provincial government and the Office of the Governor approved the opening of an oil refinery in Anjihai, collecting Dushanzi's crude oil, transporting it to Anjihai, using firewood as fuel, and refining gasoline, lamp oil and lubricating oil from kettle distillation units purchased from Russia in the late Qing Dynasty. It is closed when there is a financial constraint.

In October 1936, The Anjihai Refinery abolished the equipment and assets and relocated Dushanzi, merged with the Petroleum Inspection Plant to form the Dushanzi Refinery, which was called Dushanzi Oil Campina (i.e. the Joint Company).

On January 14, 1937, Dushanzi's first shallow well was drilled. This is a shallow well of more than 200 meters, the initial daily output of about 10 tons, soon reduced to 1 to 2 tons, soon exhausted. Most of the 15 shallow wells with a depth of 200 to 300 meters that were built in the early stage were similar to this, and they did not form a stable production capacity. The refining equipment is a kettle distillation unit relocated from Anjihai, and in February 1937, the refining of gasoline and lamp oil began, and it can only be used for the factory's own use. After the reconstruction in August, qualified products were refined.

The Xinjiang provincial government and the Soviet government cooperated to operate the Dushanzi refinery. There are no formal agreements or contracts, and there are no documents that both parties can follow. The chairman of the provincial government and the border inspector appoint the director of the factory, responsible for administrative management and living supplies, and the Soviet government appoints a chief engineer to take charge of production organization, technology, planning, finance, personnel, and sales. All equipment and equipment and the salaries of The Soviet personnel were advanced by the Soviet side, and the materials and personnel supplies purchased on the spot were allocated by the Xinjiang Provincial Government. The Consul General of the Soviet Union in Urumqi often stayed in the mines to learn about the situation.

Second, the production scale of Dushanzi Refinery in its heyday

The period from 1942 to 1943 was the heyday of the Dushanzi refinery. In 1941, deep well drilling rigs were introduced. On November 12, 1942, well No. 20 was drilled at a depth of 730 meters, with an initial daily output of more than 40 tons, and maintained more than 10 tons after one month, which was the first oil well with industrial value in Dushanzi. On November 24, 1942, the Finance Department of the Xinjiang Provincial Government commended the director and chief engineer of the power generation plant for "supervising the accurate drilling, and the source of energy is not only the blessing of Xinjiang's economic future, but also the glorious work achievements of the director, and hopes to continue to work hard in order to achieve skin work." In January 1943, another Well 19 was drilled with a daily output of 35 tons. From 1936 to 1943, the Dushanzi refinery drilled a total of 33 wells, including 15 shallow wells of about 300 meters and 18 wells of about 300 meters to more than 1000 meters. 26 wells were drilled, with a total advance of 14152 meters (15838 meters also recorded), and the deepest well 21 was 1453 meters. The cost per meter is S$140 and US$50 for a total of US$93.8. According to the report of the investigation team composed of experts from the Gansu Oil and Mineral Bureau headed by Guo Keyi at the end of 1942, "There are only 8 drilling rigs with a total of 11 sizes that can be used, and the maximum drilling depth is only 1800 meters." 80 hp boiler 16 80 hp diesel engine 4 pcs. The derrick has 2 wooden derricks and 12 iron derricks. Other types of drill bits, casings, mud pumps, mixers and other equipment are still complete"

The production was carried out without a clear understanding of the oilfield situation. During the drilling process, the oil reservoir is perforated to test the oil, transfer production, and at the same time extend the well in the front curtain according to the triangle to expand the exploration and exploitation scope. Dushanzi Oilfield is a dissolved gas-driven oilfield with short-term high yield characteristics. Regardless of deep wells and shallow wells, the initial production is relatively high, and after a large number of underground crude oil is degassed, the output declines rapidly, or even completely stops the injection. Of the 33 wells drilled, 11 have been officially mined, and 7 have a better oil production situation. In March 1943, the daily output reached a maximum of 110 tons, and the general daily output was about 30 to 50 tons. According to the investigation report written by Guo Keyi's investigation team, there were 2 crude oil storage tanks in the well site, 2 refineries, a total of 4, which could store 1400 tons of oil, 2.5 kilometers of 6-inch oil pipelines, and 6000 tons of oil per day.

In August 1937, a new kettle distillation unit was installed, including a distillation kettle with a volume of 7 cubic meters, a heating furnace, three 18 cubic meters of cold ponds, a 10 cubic meter crude oil tank and three 45 cubic meters of residual oil tanks. The distillation kettle is loaded with 4 to 6 tons of crude oil each time, and can produce 2 tons of gasoline and 1.3 tons of kerosene. In 1941, a tubular atmospheric distillation unit with an annual processing capacity of 50,000 tons was built, and in January 1942, oil refining began, and in addition to gasoline and kerosene, heavy diesel oil was also produced, and residual oil was used as boiler fuel. According to the investigation report of Guo Keyi and others, the refining equipment is still called perfect, "all kinds of devices are available."

Automatic control equipment, so the refining of the required labor is very small, the oil storage and transportation arrangement is also very appropriate, every 24 hours can refine crude oil up to about 52/5000 gallons can produce about 20,000 gallons of gasoline, kerosene about 10,000 gallons, the rest of the fuel oil." Huang Jiqing, who came to Dushanzi in November 1942 to investigate, also said: "Oil refining work... The methods and machinery used are also extremely modern, the maximum capacity of oil refining is 240 tons (crude oil) per day, and the most suitable capacity for refining is 170 tons per day, which shows the capacity of the refinery, which is inevitably too large, and the crude oil produced by each well in January can be refined within four to five days, so most of the monthly time of the refinery is idle. There is still an old-fashioned refinery in Nangou with a capacity of 6 tons a day." In 1942, 7060 tons of crude oil were processed, 1900 tons of gasoline and 1350 tons of kerosene were produced. The refinery has 11 refined oil tanks, including 5 gasoline tanks, 4 kerosene tanks and 2 fuel oil tanks, with a total capacity of 2500 tons.

In 1942, the refinery had 54 Chinese employees and 776 workers, a total of 830 people, and 120 Soviet employees. Of the 830, 522 were Han Chinese, accounting for 62.9%; Ethnic Russians 25, accounting for 3%; There were 283 other ethnic minorities, accounting for 34.1 per cent. In addition to drilling, oil production, and refining workers, there are also derrick installation teams, machine repair departments, laboratories, etc. In 1939, a small coal mine was opened in Four Trees, Wusu County. The refinery also has a brick kiln and a lime kiln wood factory. A cooperative was established to operate daily necessities and non-staple foods. There are schools, hospitals, and clubs for children.

According to the report sent by the Construction Department of the Xinjiang Provincial Department of Finance on November 25, 1943 to check the investment situation between China and the Soviet Union, the Soviet side of the Dushanzi refinery invested 434617 million US dollars, and the New side invested 1053978 million US dollars.

Third, the concern of CCP members and progressives for the Dushanzi oil refinery

In 1939, Mao Zemin, a member of the Communist Party of China, was retained by the Xinjiang provincial government through Xinjiang and appointed as the head of the provincial finance department and concurrently served as the president. At that time, the Dushanzi refinery reported directly to the Department of Finance on investment, production plans, oil production, refining statements, production that urgently needed to be solved, and difficulties in living materials, etc. Mao Zemin not only vigorously supported the appropriation, but also paid great attention to the production and construction of the refinery and the supply of workers. From 1937 to October 1942, the Department of Finance allocated a total of 4.26 million yuan to the Dushanzi refinery, of which Mao Yangmin allocated 2.87 million yuan, accounting for 67% of the total. On June 14, 1940, Mao Zemin instructed in the report on dushanzi refinery's extensive petition for the disposal of waste oil barrels: "The director of the plant can pay so much attention to public property, which is particularly good to say that in response to the conservation movement, he should try to sell the iron barrels of all sizes selected for use by the people and report them at a variable price, so as not to abandon the wheat and rice and sheep needed by the staff and workers of the Dushanzi refinery, which are only allocated in kind taxes collected by the counties near Dushanzi under the supervision of the Department of Finance, and Mao Zemin has repeatedly instructed to settle and transfer the accounts at the lowest price." On January 31, 1941, Mao Zemin also approved the lease of an official piece of official land in Wusu County to the Dushanzi Oil Refinery for the development of agricultural and animal husbandry production.

From March 1938 to May 1939, Zhao Guoyuan (formerly known as Zhao Yushi), a member of the Communist Party, served as the director of the Dushanzi Oil Refinery. According to a report from the Department of Finance to the provincial government, "by the time the factory was more than a year old, there was a lot of construction, and the work was indeed an effort." During his tenure, two training sessions were held to train 85 workers, the youngest being 17 years old and the oldest 28 years old. The first phase of 20 completed in May 1938 and the second phase of 65 in July 1939. The courses are mainly drilling, and both mechanics and electricians are studied. There are also political classes, which teach the situation of the War of Resistance Against Japan and the Soviet Union's introduction to Xinjiang's "Six Congresses" policy. Technical culture classes were taught by Soviet experts, and political classes were taught by Zhao Guoyuan. The training method adopts half-day work and half-day study, 4 hours of class per day, 75 days of completion, salary according to the original standard, food and paper and ink stationery are supplied by the factory.

When Du Chongyuan, a well-known democrat, was the president of Xinjiang College, in August 1939, he led a summer working group composed of teachers and students of the college to Yining and other places to publicize the anti-Japanese resistance. After arriving in Wusu, at the request of the staff of Dushanzi Refinery, he made a special trip to Dushanzi to carry out propaganda. The refinery workers soon set up an open stage, Du Chongyuan made anti-Japanese propaganda to highly praise the contributions of oil workers to the anti-Japanese production of oil, and teachers and students performed anti-Japanese literary and artistic programs.

Fourth, after the deterioration of relations between the Xinjiang provincial government and the Soviet Union, the contradictions between the two sides at the Dushanzi refinery intensified

In 1942, Sheng Shicai completely defected to the Kuomintang to carry out anti-Soviet and anti-communist activities. In May 1942, Sheng Shicai sent his brother Sheng Shiji and Zhang Yuanfu, the representative of Xinjiang Province in Chongqing, to Chongqing to meet Chiang Kai-shek, bringing documents on Dushanzi and other issues concerning the Soviet Union, and asking Chiang kai-shek to send important officials to Xinjiang. On 28 June, Sheng sent another telegram to Chiang Kai-shek, saying that the Soviet government would send Vice Foreign Minister Dicanosov to Xinjiang to solve the Dushanzi oil refinery and other important problems, and asked Chiang to "send Minister Supai Weng (Wen Hao) to Xinxin to jointly study and discuss the Dushanzi oil refinery issue with the Soviet government and local governments, so as to sign a contract at an early date and produce a large amount of oil to benefit China's war of resistance against Japanese aggression and the Soviet Union's War of Resistance Against Germany."

On July 5, 1942, Weng Wenhao, Minister of Economy of the National Government, came to Xinjiang accompanied by Gong Xuesui, director of the Highway Bureau of the Ministry of Communications, and Sun Yueqi, general manager of the Gansu Oil Mining Bureau. Dikarnosov carried a letter from Soviet Foreign Minister Molotov to Sheng Shicai, saying that Sheng had agreed that the Xinjiang provincial government and the Soviet government would jointly set up the Dushanzi oil refinery, and that he was now inviting the Minister of Economy of the National Government to come to Xinjiang for negotiations, but that there was a lack of friendship with the Soviet Union, and it was inconvenient for the Soviet side to accept it. Sheng Shicai said that he was willing to introduce Weng Wenhao to negotiate with Di and discuss a reasonable and feasible method. Weng Wenhao said that before he left Chongqing, he had asked Chiang Kai-shek and received consent, willing to jointly run the Dushanzi oil refinery with the Soviet Union, and the Soviet Union would supply the refining equipment and technology. Afterwards, Weng led Gong and Sun to the Dushanzi refinery to understand the situation.

On July 17, 1942, Sheng Shicai telephoned Soviet Foreign Minister Molotov, saying that he did not agree with the Soviet side's proposal to jointly manage the Dushanzi refinery with Xinjiang, stating that "it is advisable for this enterprise to be managed by both the Chinese central government and the Soviet government." On August 20, Molotov replied to Sheng Shicai, expressing his agreement with Sheng's opinion, and Sheng immediately sent a reply to Chiang Kai-shek.

Due to the bad relations between Sheng Shicai and the Soviet Union, the friction between the two sides at the Dushanzi refinery increased day by day, and disputes arose.

Dushanzi refinery refined oil products sales have always been the chief engineer of the Soviet side in charge of the provincial oil by the Ministry of Finance approved, with the "oil lift certificate" issued by the department to the plant to lift oil, the Soviet side with the Soviet government in Xinjiang set up the Soviet new trading company to develop the oil bill to lift oil. In September 1942, the Suxin Trading Company repeatedly exchanged the bill of kerosene at a low price (700 yuan per ton of kerosene for civil kerosene 10001300 yuan per ton) in exchange for the local products of the merchants, and the merchants used the single oil to raise the oil and then sell it at a higher price, so the Finance Department notified the refinery: There must be an oil withdrawal certificate issued by the Department of Finance to raise the oil, and sent a letter to the Soviet Commercial Agent in Urumqi, requesting that the Activities of the Suxin Trading Company to purchase local products at low prices The Xinjiang Provincial Government and the Office of Supervision instructed the refinery: The oil products issued must be sent and sent by the factory director and the chief engineer, and the oil card should be signed by the plant director and the chief engineer. Keep one copy for assessment. However, the chief engineer of the Soviet side refused to carry out the implementation on the grounds that "he did not follow the same order from the Soviet consulate". Sometimes even the provincial unit is refused to raise oil. According to the materials of the Dushanzi Public Security Bureau's investigation into the "Oil Theft Case by the Soviet Side", it is claimed that from August 9 to September 28, 1942, the Soviet side stole 29,885 kilograms of gasoline and 12,287 kilograms of kerosene by over-reporting or under-reporting or not remembering the oil: 22,400 kilograms of gasoline and 12,600 kilograms of kerosene without oil in October. It is also said that the oil refined by the kettle distillation device is not enough for the scale, nor is it a warehouse, and it is taken away by the Su side, about dozens of tons. The Soviet side denied the above facts and was unable to do so. On November 23, the Soviet Consulate General in Urumqi sent a letter to the Xinjiang provincial government, accusing Chinese factory directors and local governments of unjustifiably obstructing the work of the refinery and stopping the supply of gasoline to the Soviet authorities in Ukraine, refusing to pay the refinery funds, not supplying the refinery with food and charcoal, threatening and "workers not going to work", etc., with strong wording.

There was also a fierce dispute between the two sides over the placement of personnel and the payment of wages. The salaries of the staff of the two sides are extremely unequal, and the drilling foreman of the same technology is 60 to 70 yuan per month for the Chinese personnel, and 700 to 800 yuan for the Soviet side. For the Chinese staff, the Soviet side only recognized the factory director, the accounting section chief, the personnel unit chief and the rest of the four interpreters did not recognize, and the salaries were not transferred. Soviet personnel, whether they are Soviet nationals from the Soviet Union or Soviet overseas Chinese from Urumqi and Ili, enjoy preferential treatment as experts, and their salaries are paid in US dollars. Soviet personnel also often increased their salaries on their own. The Sheng government instructed the refinery director and Chinese personnel to "continue to retain the original personnel as usual"; At the same time, through the Diplomatic Commissioner of the National Government in Xinjiang, he sent a letter to the Consul General of the Soviet Union in Urumqi, asking him to instruct the refinery that "the responsible person of the Soviet side shall not arbitrarily set up personnel to increase their salaries in the future, and Chinese employees shall be treated as one and shall not be discriminated against." But the Soviet side ignored this. For the salary increase of the Soviet personnel, the Chinese factory director "although he was ordered to show that he did not agree, he could not stop it."

Due to disorderly order discipline loosened the refinery twice fire. On December 2, 1942, oil pumpers smoked and burned the crude oil lost next to the well at the construction site, causing the fire to burn several tons of crude oil; On July 17, 1943, the offices of the Chinese and Soviet unions were burned down.

Due to the intensification of contradictions between the two sides, on December 3, 1942, Peng Jiyuan, director of the Finance Department of the Xinjiang Provincial Government, Li Pulin, director of the Construction Department, and Pu Sijin, consul general of the Soviet Union in Urumqi, convened a talking meeting between Wen Zixuan, chief engineer of the Dushanzi Refinery. Since then, production has been greatly affected, only 4 oil wells remain, and the daily output is only about 20 tons of drilling work in January 1943 basically stopped in July, and the refining work stopped.

On January 19, 1943, in the name of protecting the refinery, Soviet personnel took advantage of the withdrawal opportunity of the Soviet troops originally stationed in Hami to enter the refinery, with a total of 19 trucks, two tanks and 70 armed officers and men, which were increased later, and by the time of the withdrawal on February 27, 1944, the garrison reached 117. Important intersections are guarded, and patrols are set up at night to strictly inspect the personnel entering the refinery. Cao Tianjue, deputy director of the Public Security Administration Office of the Xinjiang Provincial Government stationed in the oil mining area, Wang Enjiu, director of the Public Security Bureau of the Mining Area, and Wen Zixuan, acting director of the refinery, were all issued long-term access permits by the Soviet army. On June 22 of the same year, the Soviet troops stationed in the mine also announced by telephone that all those who hold long-term access permits must attach their own photos, otherwise they are prohibited from entering and leaving the mining areas.

5. Negotiations between the Chinese and Soviet governments on the joint establishment of the Dushanzi oil refinery

In August 1942, when Sheng Shicai forwarded Molotov's reply to The Dushanzi Refinery being operated by the Chinese and Soviet governments to Chiang Kai-shek, Chiang forwarded it to Vice Foreign Ministers Fu Bingchang and Qian Changtai and Economy Minister Weng Wenhao on September 1 to discuss specific measures

On September 3, the Ministry of Foreign Affairs of the Nationalist Government sent a letter to the Soviet Embassy in China stating that "the Chinese Government has decided to jointly operate with the Soviet Union to exploit the Dushanzi Oil Mine in Xinjiang Province" and asked the Embassy to send a telegram to the Soviet Government to seek consent, appoint personnel, and participate in the negotiations. On September 28, the Soviet Embassy replied that the Soviet government had authorized The Ambassador to China, Pan Youxin, to negotiate with Bakulin, the commercial representative.

From October 15, 1942 to March 8, 1942, representatives of the Nationalist government and the Soviet government held four meetings in Chongqing to negotiate a joint venture over the Dushanzi oil mine. The Chinese representatives were Minister of Economic Affairs Weng Wenhao, Vice Foreign Minister Fu Bingchang and Hu Shize. At the meeting on October 15, the Chinese side proposed the draft Agreement between China and the Soviet Union on the joint organization of the Dushanzi Oil Mine in Xinjiang) and the Draft Articles of Association of Dushanzi Oil Mine Special Co., Ltd. After the meeting, on January 18, 1943, the representatives of the Soviet side submitted to the Ministry of Foreign Affairs of the National Government the proposal of the "Agreement between the Federal Government of the Soviet Socialist Republic and the National Government of the Republic of China on the Development of the Dushanzi Oil Mine in Xinjiang Province", and the two sides vigorously debated and did not give in to each other in three talks on January 26 and March 8, February 18. There are four main differences: 1. On the issue of investment. The Soviet side advocates an equal apportionment, that is, 50% of each share, and the Chinese side accounts for up to 49% of foreign capital according to Chinese law.

2. On the issue of leadership. The Soviet side advocates that the Soviet side be the manager, the Chinese side as the deputy manager, and the board of directors is rotated by both sides as the chairman of the board, the Chinese side advocates that the Chinese as the manager, the Soviet side as the deputy manager, and the board of directors with the Chinese side as the chairman. Su Fang served as vice chairman: 3. On the issue of whether the land used by the company is priced. The Soviet side proposed that the land should be provided free of charge by the Chinese side, and the Chinese side could not count the chinese investment, and the Chinese side claimed that the land used was owned by China, and the nature of the equipment provided by the Soviet side should be counted as the Chinese investment; 4. On legal issues. The Soviet side considers that any law is inconsistent with the principles or provisions of the agreement. None of them shall apply, and the Chinese side insists that it must comply with all laws, decrees and regulations in force in China and register with the Chinese government.

During the talks on March 8, 1943, Pan Youxin reiterated the soviet government's above four points and said: "The Soviet side believes that the above four points can protect the interests of both sides of the company, and believes that this condition is the most appropriate. ...... If the Chinese side does not accept the above four points, the Soviet Government believes that there is no other way to solve it." Weng Wenhao said: "Limited by the law, the 4 points proposed by the Soviet side are difficult to accept." But he also said: The 4 points raised by your side today are important, and after the Chinese side considers them, we will discuss them again."

On May 17, 1943, the Soviet side informed the Ministry of Foreign Affairs of the Nationalist Government that the Soviet Government had decided to dismantle the Dushanzi oil mine equipment for transportation to the Soviet Union, and the negotiations between the two sides were suspended.

6. The end of the Dushanzi oil refinery of the new Soviet joint venture

On June 16, 1943, the Soviet ambassador to China, Pan Youxin, sent a letter to Chiang Kai-shek, saying that the Soviet government had decided to "stop the Dushanzi oil mine and oil refining work, recall the experts, and ship its own equipment back to the Soviet Union."

The dismantling and transportation work of the Soviet side was very thorough. In addition to all the equipment and equipment for oil drilling and production and various auxiliary productions of oil mines, the complete set of refining equipment with an annual processing capacity of 50,000 tons and the surface and underground pipelines that have just been completed and put into operation have all been dismantled, and even a small oil refining boiler belonging to the Chinese side has also been transported. After negotiations between the diplomatic commissioner in Xinjiang and the Soviet Consulate General in Urumqi, the Soviet side admitted to "bad luck" and compensated for a boiler that the Soviet side had not yet transported. After the dismantling and transportation, only 1 35 kW generator, 1 oil pump, 1 lathe, 1 drilling machine, 1 welder, 3 tractors and 2 cars were left, all in tatters. 11 oil wells raised the oil pipe, filled with heavy mud and welded the wellhead to death.

On November 2, 1943, the Consul General of the Soviet Union in Urumqi and the Committee of Commerce went to the Office of the Diplomatic Commissioner of the Nationalist Government in Xinjiang to express their willingness to sell oil wells and other construction equipment invested by the Soviet side to the Chinese side, of which 2.02 million US dollars for oil wells and 490,000 US dollars for houses, a total of 2.51 million US dollars. On November 8, the Ministry of Economy of the Nationalist Government sent Minister Weng Wenhao to send a telegram to Sheng Shicai, agreeing to pay for the purchase of oil wells and buildings left by the Soviet side at the expense of the Resources Committee. On November 25, the Department of Finance and the Department of Construction of the Xinjiang Provincial Government sent personnel to the Dushanzi Refinery to check the investment of the two sides, according to the figures provided by the chief engineer of the Soviet side: the Soviet side invested a total of 4.34617 million US dollars, except for the part transported back to the Soviet Union, the remaining houses and oil wells totaled 201263 million US dollars. At the end of December, the Ministry of Economy of the Nationalist Government sent Li Tongzhao, an engineer from the Gansu Oil and Mining Bureau, to the Dushanzi Refinery for an asset valuation that the Houses left by the Soviet side were worth US$250,000 and the oil well project was worth US$1.25 million (Li Tongzhao also reported that the oil well was valued at US$1.14 million), for a total of US$1.5 million.

On January 28, 1944, Hao Zexiang, the diplomatic commissioner of the Chinese side on behalf of the Nationalist Government in Xinjiang, began negotiations with Pu Sijin, a representative of the Soviet side and consul general of the Soviet Union in Urumqi. Wu Zexiang proposed: The oil wells and buildings left by the Soviet side are estimated at 1.39 million US dollars, and in order to repay the Soviet side for technical assistance, it is willing to bid 1.55 million US dollars. Pushkin replied: The Soviet side reduced the selling price to 1.7 million US dollars, but stated that it would never be less after that. Wu Zexiang, Sheng Shicai, Li Tongzhao, and others held that the Soviet side's large concessions may be due to the Fact that the Soviet side was anxious to retreat and should seize the opportunity to buy according to the price. On February 16, 1944, Wu Zexiang, on behalf of the Resources Committee of the Ministry of Economic Affairs of the National Government and the People's Commissariat of Foreign Trade of the Ussal Committee of the Soviet Union, signed the "Sino-Soviet Contract for The Purchase and Sale of Construction and Equipment Owned by the Soviet Side of the Dushanzi Oil Mine" on behalf of the People's Commissariat of Foreign Trade of the Soviet Union, which was sold for US$1.7 million, stipulating that the Soviet side "explain in writing the normal methods of sealing all oil wells and the steps for opening them in the future", and promised to "hand over various information on the construction of the oil wells of the mine to the Chinese side within one month after the signing of the contract."

On February 19, 1944, the Central Bank of the National Government remitted $1.7 million to the New York Favor bank, deposited with the State Bank of the USSR.

On February 21, the Soviet side handed over the oil well houses and machinery that should be transferred to the director of the refinery sent by the Xinjiang provincial government.

On February 27, 117 Soviet troops stationed in the mines returned home.

On February 28, all Soviet personnel left the mine.

On May 16, the Soviet side returned the geological map of Dushanzi Oilfield (one in 100,000), the third series geological structure map of Dushanzi Oilfield and the electrical measurement records of 25 wells.

On June 30, the Soviet side returned the crude oil and natural gas recovery register and drilling log of Dushanzi Oilfield.

At this point, the history of the New Soviet Joint Venture Dushanzi Oil Refinery should come to an end.