 | | Dalny there is a whole array of enterprises that we are in no position to exploit without Soviet assistance. We should develop a closer economic collaboration there.
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| | Stalin: In other words, the agreement on Port Arthur will remain in force until a peace treaty is signed with Japan. After the signing of the peace treaty the existing agreement shall become invalid and the Russians shall withdraw their troops. Did I sum up your thoughts correctly?
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| | Mao Zedong: Yes, basically so, and it is exactly this which we would like to set forth in the new treaty.
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| | Stalin: Let us continue the discussion of the CCR question. Tell us, as an honest Communist, what doubts do you have here?
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| | Mao Zedong: The principal point is that the new treaty should note that joint exploitation and administration will continue in the future. However, in the case of administration, China should take the lead role here. Furthermore, it is necessary to examine the question of shortening the duration of the agreement and to determine the amount of investment by each side.
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| | Molotov: The conditions governing the cooperation and joint administration of an enterprise by two interested countries usually provide for equal participation by both sides, as well as for alteration in the appointment of replacements for management positions. In the old agreement the administration of the railroad belonged to the Soviets; however, in the future we think it necessary to alternate in the creation of management functions. Let's say that such an alternation could take place every two to three years.
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| | Zhou Enlai: Our comrades believe that the existing management of CCR and the office of the director ought to be abolished and a railroad administration commission be set up in their place; and that the offices of the commission chairman and of the director should be replaced by Chinese cadres. However, given Comrade Molotov's proposals, this question requires more thought.
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