Russian entrepreneurs in exile: Manchuria, 1920s.

Nechaeva Anzhelika Sergeevna Postgraduate student, Department of Historical Sciences and Archeology, Far Eastern Institute of Management, RANEPA 680000, Russia, Khabarovsk Krai, Khabarovsk,, Muravyov-Amursky str., 33 nechaeva-angelica@yandex.ru

Increased interest in the topic of the Manchurian branch of Russian emigration in Russian historiography appeared in the 1990s due to access to previously classified archives. A wide range of problems of the history of the Russian diaspora in Northeastern China has been studied in the works of G. V. Melikhov, E. P. Taskina, E. E. Aurilene, S. I. Lazareva, N. A. Vasilenko, M. V. Krotova, S. V. Smirnov, T. G. Mamaeva. and others . Despite the impressive number of monographs in Russian historiography, there are still issues in the topic that have not yet been well studied. These include the business activity of Russian emigrants in Manchuria.

The analysis of the experience of entrepreneurship development in the conditions of emigration is necessary to understand the process of adaptation of the Russian diaspora in China. To some extent, the study of this issue is motivated by the 100th anniversary of the end of the Civil War in the Far East, the 125th anniversary of the CER, as well as the modern development of Russian-Chinese trade and economic cooperation.

After Russia's withdrawal from the First World War (1914-1918) and the beginning of the revolutionary process, many Far Eastern entrepreneurs preferred to leave for Northern Manchuria and move their business there, but there were difficulties in the new place, one of which was the crisis of the foreign exchange market. If before 1917 the main monetary units were the local dollar - dayan and the Russian ruble, then after October the money of the white governments of Siberia and the Far East ("Siberian", "kerenki", "Croatian, etc.), insolvent due to poor execution, became widespread ^{[10, pp. 69-70]}.

This circumstance had a negative impact on business activity, especially on the work of the Sino-Eastern Railway: freight and passenger transportation were paid for in currency that was rapidly losing relevance. In October 1919, by Order No. 212 of the CER, the calculation of the flow of the Russian money supply in the equivalent of the gold ruble was established. This measure was necessary to give the monetary rate at least some stability, but in the end it turned out to be ineffective due to the rapid depreciation of Russian money. In April 1920, the Chinese authorities decided to accept the dilapidated imperial currency, which in fact was used very little, which led to another round of speculation. In May, Order No. 170 was published, limiting the volume of receipts of Russian currency. At the same time, the course continued to be set as before. In addition, gold and silver rubles were accepted as payment. Silver acceptance was restricted in November 1924 ^{[10, p. 74]}.

With the beginning of the revolution on the territory of the former Russian Empire, military interventionists began to arrive in Manchuria, followed by foreign entrepreneurs, merchants, bankers, etc. As a result, many competitive branches of foreign banks and international insurance companies have appeared. For example, the American society "International Insurance Corporation", "English Lloyd", the Anglo-Dutch company "Veritas", "Commercial Union", "Russia" - the Danish insurance Company, "Nippon Marine Insurance Company". Since 1924, the Soviet company Gosstrakh has been working in Harbin ^{[3, pp. 255-256]}.

European and North American businesses had a significant impact on the development of the Manchurian economy and formed a serious competition for entrepreneurs from the Russian diaspora. In the sphere of interests of the United States were the purchase of land plots, trade in cars and spare parts, electrical engineering, gasoline, tobacco, railway design, construction of radio and telephone communications, mining, logging. Great Britain provided food and engaged in mechanical engineering, where it shared the market with Germany. France supplied perfumes and alcohol, which was competed by Harbin manufacturers, such as the Caucasian cellar "Alazan", "Grotto", "Tatos", etc. Switzerland was famous for the production of watches. In the early 1920s, the automotive industry began to become widespread, as a result of which there was a need for garages, auto repair shops, many of which were opened by the Czechs. Special courses for drivers ("Slavia", "F. Fuchs and Co.", "Prague") they also gained popularity. Often the transport was rented out ^{[10, pp. 82-83]}. Export-import companies were opened in large numbers, of which there were more than fifty. For example, the Anglo-Chinese Oriental trading company, the import technical office "Germany", "Andersen, Mayer and Co.", "Butterfield and Swire", "Christian Holstein and Co.", "Villers, Engel and Co.", "Ravetta J. E.", etc. ^{[10, pp. 190-194]}.

Such diversity made it possible to saturate the domestic market of Manchuria with various foreign industrial innovations, as well as to import locally produced goods to foreign countries. On the one hand, it created new technological opportunities for Russian entrepreneurs, on the other, it reduced the competitiveness of goods on the market. Due to the outbreak of the economic crisis after the First World War and the Civil War, many enterprises of former subjects of the Russian Empire suffered losses. Among the victims was the famous trading house "Churin & Co.", which was left without its chief executive A.V. Kasyanov, who was able to leave Moscow only in 1922. Upon arrival in Harbin, he was forced to reduce staff, reduce wages, cancel receiving interest on sales, reduce sales and production outside Manchuria. The restoration of trade relations and additional capital helped to ensure regular supplies of high-quality goods ^{[9, p. 95]}.

After the end of the Russian Civil War, new emigrants began to arrive in Manchuria. The composition of the settlers was very diverse both in the national composition (Russians, Jews, Poles, Georgians, Germans, etc.) and in the social (industrialists, merchants, peasants, workers, Cossacks, military, intellectuals – teachers, doctors, engineers, etc.) The population was divided into "old-timers" and "newcomers", who represented a rather diverse mass of political views and financial situation. Newcomers had to put a lot of effort into starting their own business or finding a suitable workplace due to the high competition that the "old-timers" made up ^{[2, p. 377]}.

Due to the influx of refugees, Harbin was actively built up, new retail outlets, catering, workshops were opened. The increase in the number of visitors inevitably entailed a complication of the situation in the real estate market. The cost of one room corresponded to the salary of an employee of the KVZhD. The construction of houses was often carried out from cheap and easily accessible materials: adobe was often used, sawdust was filled in between the outer and inner walls for insulation ^{[6, p. 120]}. The Harbin Society of Landowners and Homeowners dealt with the issue of construction. In 1924, the Society submitted a petition to the Harbin City Administration for a revision of fiscal policy in the form of the abolition of the sanitary and hospital fee, a revision of the collection of the assessment fee in local dollars with an unstable exchange rate of the yen and the refusal of police participation in tax collection ^{[10, p. 79]}. To help Russian refugees, the Harbin Committee was organized in 1923, which later became one of the largest charitable organizations in the 1920s and 1930s. He helped not only in registering and obtaining documents, but also in further settling in a new place – finding housing, work, etc. ^{[8, p. 14]}.

The number of the Russian diaspora in 1918 was 60,200 people. By 1923, the Russian population of Harbin had increased to 165,857, the total population in the exclusion zone was 300-350 thousand ^{[16, p. 82]}. The multinational composition of the diaspora was of great importance, which influenced the specifics of entrepreneurial activity.

The Jewish community, for example, has traditionally been engaged in commercial activities: mining, construction, supply of necessary materials, banking. At the initiative of the gold industrialist J. D. Frizer in 1921, it was decided to open the "Far Eastern Jewish Commercial Bank", which would allow the distribution of shares among merchants and artisans of the community. In 1923, the "Jewish People's Bank" began its activity, whose representatives were located in many European capitals. For example, in Berlin, Paris, London ^{[9, p. 74]}. Its opening was necessary to support Jewish merchants in need of financial support, whose number by 1926 was 489 people. The significant role of Jewish entrepreneurs in the economic life of Harbin can be judged by the following data: 31.6% of Jews were present in the commercial sphere, 46.5% in industry ^{[1, p. 100]}. As examples, we can name the company "Galberg G. A. and Co.", entrepreneurs of the brothers Vigdorchik, L. Sh. Kazarnovsky. One of the profitable items for sale was jewelry. The largest stores belonged to B. Weil, I. A. Kaspe, Polonsky & Co., etc.

The Georgians competed with the Jews, who formed the Georgian Joint Stock Company in 1920, the purpose of which was to establish trade relations between Manchuria and Georgia and create a monopoly on the supply of tobacco, cognac, and Kakhetian wines. People from the Caucasus owned popular catering enterprises: the restaurant "Exchange" by M. N. Gidulyan, the establishments of L. F. Abashidze - "Basilashvili" and "Vokzalny", the cafe "Iveria" ^{[9, p. 51]}.

With the development of entrepreneurial activity, the demand for household goods, such as bed linen, tablecloths, curtains, haberdashery items, began to grow among the population. In Harbin, the production and trade of clothing were established, sales were often held. In the newspaper "Russian Word" you can find ads of tailors (for example, M. I. Dryazgov), shoe workshops (the partnership "Skorokhod"), large stores that sold wholesale and retail, among which were "Churin and Co.", "Nadezhda", "Machura and Co.", "The Rising Sun", "Br. Eskins" ^{[12, 1926, №249]}. The enterprises of the Agishev brothers and the Deushev brothers were in particular demand. In 1929, G. A. Hovhannisyan's perfume shop appeared. The office was in great demand. In this area, the trading house "Sorokin & Co.", which owned book and stationery stores, became popular ^{[9, pp. 53-54]}.

Russian Russian Business, the Society of Russian Orientalists ("Bulletin of Asia"), typolithography "Commercial Press", the partnership "Enlightenment", the partnership "Printing Business" began to develop actively in the 1920s, many printing houses and publishing houses appeared, among which one can single out "Dawn", founded by M. S. Lembich, "Russkoe Delo", the Society of Russian Orientalists ("Bulletin of Asia"), the typolithography "Commercial Press", the partnership "Enlightenment", the partnership "Printing Business" ^{[10, pp. 224-227]}. The largest publisher was the office of the KVZhD. Thus, in the issue of the newspaper "Russian Word" dated February 16, 1926, it is said about the first issue of the "Bulletin of Railway Workers" at 15 kopecks per copy ^{[12, 1926, No. 243]}. Novelties could be purchased from Churin & Co., the partnership of M. I. Borisov and E. M. Perov, V. I. Vakhrushev, "Culture" of Y. M. Slavuchich, Ya. Arakin, "Russian-Manchurian Bookselling", etc. ^{[10, p. 231]}.

As they adapted to the conditions of existence in the multicultural environment of Northeast China, Russian entrepreneurs mastered the field of entertainment. Cinema visits have become a popular form of leisure among Harbin residents. In December 1926, the American film "The Black Pirate" was shown in the Harbin cinemas "Palace", "Modern" and "Oriant" with the support of the partnership "Alekseev, Donatello and Co.", in which the main roles were played by Douglas Fairbanks and Billy Dove ^{[12, 1926, No. 259]}. During the same period, the largest cinema in the Far East "Atlantic" was opened, accommodating up to 2 thousand people ^{[12, 1926, No. 272]}. Artistic photography began to be in great demand. In this regard, studios began to open: "Art-Light", "Svetopis" by M. F. Kuzina, etc. To attract new clients, photographers advertised their services using newspapers. For example, one of the ads reported that Y. M. Lifshits carries out group photography, landscape and other subjects at a great distance ^{[12, 1926, No. 10]}.

An important part of economic relations were traditional enterprises for Russian manufacturers, many of which began their activities before mass emigration. Among the successfully developing areas, it should be noted the production of tea, the main supplier of which was the firm Churin & Co. The range of tea products was presented by China, India, Java and Ceylon. Teas were sold under the brands "Pervosborny", "Amateur", "Bouquet", "Economic", etc. One of the competitors of the trading house was the firm of I. F. Chistyakova ^{[9, p. 66]}.

In Manchuria, due to the lack of satisfactory quality of flour produced, Russians actively built mills. The first of them was built in 1900 . "The First Manchurian Flour Milling Partnership" with a capital of 384 thousand rubles. The second one, which started working in 1902, joined the Sungari Flour Milling Partnership, which became part of the "Joint Stock Company of Sungari Mills". In the same year, the mill of I. V. Kulaev began work. The gradual spread of Harbin flour across the provinces of Manchuria made it possible to oust American and Canadian competitors from the market – by the mid-1920s, about 50 enterprises were functioning ^{[9, p. 59]}. According to N. Staroselskaya, the basis of the flour milling industry was laid by M. A. Borodin, who was previously engaged in the transportation of timber to Port Arthur and Harbin ^[15].

The second important commodity in terms of production was soybeans. A well-known entrepreneur in this field was R. M. Kabalkin, who founded the company Natanson & Co. With the depreciation of the Russian currency, he had to attract foreign capital in order not to lose business. However, already in 1922, the business was developing quite successfully due to an increase in export goods. The products were in particular demand in the UK due to a lean year.

Russian entrepreneurs were interested in the development of traditional industries that bring a lot of income, namely in the procurement and sale of grain, plum oil, wine and beer products. One of the most famous enterprises for the production of alcoholic beverages were the wine and vodka G. D. Antipasa and the distillery E. N. Nikitina; the plant created by the Joint-Stock Company "Borodin and Takata" under the leadership of M. A. Borodin. The volumes of grain sent abroad were quite high. For example, in 1920-1922 S. Soskin's company exported more than 40 million pounds of bread ^[15].

Russian entrepreneurs were also engaged in the production of sugar. In particular, even before the First World War, sugar beet factories were built by L. Tsykman and B. Bronovsky. With the improvement of the quality of life of the population, the need for a variety of food products increased, which stimulated an increase in the number of productions in accordance with the requests. Churin & Co., which founded a sausage factory in 1918, was the leader in the meat sector. The main supplier of mineral water was R. B. Rabinovich. The companies "Churin and Co.", "Shovel S-way", "A. N. Nastashevsky and Co." offered customers a wide range of tobacco products ^{[9, p. 69]}.

In the first half of the 1920s, the brothers M. M. and D. M. Vorontsov created a dairy farm, bred sheep and trotters of the Oryol breed, built distilleries and vodka factories. Under their leadership, the experience of crossing a Mongolian sheep with a ram of the New Zealand breed "Romney March" was carried out. In 1926, the brothers built a mill at Yakeshi station, and in 1929 – an electric station ^{[2, p. 382]}.

A significant share of Russian business in Manchuria was the timber industry, which had considerable resources at its disposal, since the forest area occupied 40% of the area of Northern Manchuria. Most of the reserves were in the regions of the taiga zone, namely in the Heilongjiang and Jilin provinces, where about 100 species of trees grow to this day, of which about 30 are suitable for production. It is known that Gurevich's timber warehouse offered customers raw materials from larch and birch ^{[12, 1926, No. 13]}.

Several concession enterprises were engaged in the implementation of the forest area on the basis of contracts with the Chinese government. In the 1920s, the largest plots belonged to the heirs of L. Sh. Skidelsky (6030 km2), V. F. Kovalsky (5455 km2) and KVZhD (1045 km2) ^{[13, p. 77]}. The "Russian Commercial and Industrial Partnership of the Popov Brothers", founded back in 1896, supplied goods to the Korean and Japanese markets. 

The Vorontsov brothers were engaged in woodworking. In the 1920s, their company acquired the Khingana-Urkichikihna and Yadorskaya concessions, which worked mainly with larch. In 1925, the Vorontsovs founded the "Khaimin Forestry Partnership", in which representatives of the KVZhD and the Tsitsikar Provincial Administration took part ^{[2, p. 381]}.

An important role in the development of the region's economy was occupied by the extraction of coal, which was an ergonomic fuel necessary for enterprises and KVZhD. Of the coal deposits, the Zhalaynor mines should be noted, the development of which was carried out by the trading house "The Heirs of L. S. Skidelsky", but since 1924 control over the enterprise has passed to the Soviet representatives of the Board of the KVZhD.

It is worth mentioning the Mulinsky coal deposit, which was studied by S. L. Skidelsky. After obtaining a satisfactory result, 4 coal mines began their work. Under Skidelsky's leadership, the Russian-Chinese "Mulin Coal Mining Partnership" was formed in 1925, which became the largest coal mining enterprise in Northern Manchuria ^{[13, p. 79]}. 

There were problems in the economic life of emigrants caused by the dynamics of the domestic political regime. The activities of Russian entrepreneurs were limited to local authorities, which was due to the growth of Chinese nationalism. In 1924, Russian vessels were banned from rafting on the Sungari. Russian merchants were required to place signs in Chinese and Russian at their stores. If the requirement was not met, the city council had the right to contact the police ^{[12, 1926, No. 256]}. The Chinese authorities carried out regular raids on gambling establishments. An order was prepared prohibiting such places under the pretext of the penetration of undesirable elements ^[5].

Another factor complicating the entrepreneurial activity of emigrants was the Soviet-Chinese confrontation over the CER. Despite the fact that after the signing of the "Agreement on the temporary management of the Chinese-Eastern Railway" by both sides of the conflict, according to which the CER was considered as a joint venture, by virtue of which an equal composition of the Board of 10 people was assumed, there was no real equality. The management of the road was entrusted to the representative from the USSR, who made all the main decisions, regardless of the opinion of the Chinese side ^{[4, p. 343]}.

The current situation kept the White emigrants in constant tension, because the CER not only brought regular income, but also provided many jobs. The Russian Word newspaper of February 21, 1926 expressed concern about possible dismissals of Chinese subjects and about the reshuffle of personnel among senior agents. So "engineer Blumberg was moved from Manchuria to the place of the head of the 9th precinct. Engineer Bocharov was moved to Manchuria. Engineer Shimkin from Hailar was transferred to Handaohezzi. Engineer Vertepov was appointed in his place" ^{[11, 1924, №41]}.

Due to regular problems with movement, Russian entrepreneurs were interested in building the Taonan-Anganchi railway line. The newspaper "News of Life" expressed the opinion that the new road in the future will become the main competitor of the KVZhD ^{[11, 1924, No. 18]}.

A great danger to the Russian population was represented by the Khunkhuz and various bandit groups that controlled the production of opium, monitored the ongoing trade operations, organized regular attacks and kidnappings for the purpose of easy profit. Due to the weak protection of the north-eastern suburbs, Russians often had to defend themselves against robbers on their own or pay off ^{[14, p. 219]}. In his memoirs, entrepreneur I. V. Kulaev mentions the first successful abduction of the furrier Tonkonogov. For his release, it was necessary to pay a ransom in the amount of 250 thousand yen. Kulaev himself was also attacked: the bandits knew the industrialist's usual summer travel route, within which he first visited his perfume and soap factory, and then flour mills. He was rescued during a police operation. Another high–profile case was the abduction in March 1926 of the co-owner of the shoe store "Conros" of the Tismenitsky brothers - L. A. Tismenitsky ^[7].

The events that took place within the partner countries also had an impact on the economic life of Manchuria in general and on the business of the Russian diaspora in particular. The general strike that took place in Great Britain in May 1926: the miners, despite the recognition of the strike as illegal, protested for almost 7 months. In this regard, Manchurian white emigrants expressed concern about the depression of export trade. It was noted that the crisis would be protracted due to the lack of coal supplies to the Far East. "In past years, at this time, exporters bought millions of pounds of grain and loaded exports to Europe. The lull in the grain and grain market causes a general lull" ^{[12, 1926, №249]}. A similar situation affected not only grain, but also the raw materials market. "Skin, hair and bristles are in low demand, because current prices do not correspond to consumer countries" ^{[12, 1926, №249]}. The situation with furs was better due to the increased interest in furs at American and European auctions, but the declining state of the fur trade in Northern Manchuria did not allow to reach a higher level of trade. Import trade experienced difficulties due to lower prices ^{[12, 1926, No. 249]}. However, already in December, a batch of manufactory from the UK arrived in Harbin, as a result of which a temporary Liquidator store was opened" ^{[12, 1926, №256]}.

Thus, Russian entrepreneurs who left their homeland had to adapt to various difficulties: unstable financial market, socio-political restrictions, the presence of competition in the face of Europeans, regular attacks by bandits. Despite the existing problems, the Russian diaspora in the 1920s made a significant contribution to the economy of the region, engaging in trade, the development of new industries, the creation of a banking system, participation in charity events. The business activity of emigrants contributed to the modernization of Manchuria, which allowed Harbin to become the center of economic development of the region.