Foreign News: FACE IN FUSHUN

Manchuria’s mightiest industrial enterprise is the Japanese-built Fushun Combine—a nexus of aluminum, shale oil, steel and power plants based on the world’s biggest open-pit coal mine. The Russians stripped Fushun of much of its heavy machinery, let its coal production fall from 10,000 tons to 1,000 tons a day. Last month their army pulled out, leaving behind 20-odd Soviet mine and railroad officials with orders to operate the Combine jointly with the Chinese. But the technicians sent in by Chungking had other ideas. TIME Correspondent Richard Lauterbach cabled this story of force and face:

Invitation to Tea. Headed by dark, spectacled C. Y. Cheng, a coal expert in Szechwan during the war, 22 Chinese engineers detrained at Fushun. Said Cheng: “It is not necessary for me even to see the Russians. If they call on me, I will see them. Cooperation with Russians was not in my instructions.”

Cheng explained that Premier T. V. Soong, during his negotiations with Generalissimo Joseph Stalin over the Sino-Soviet Treaty of last August, had asked that the Fushun Combine be excluded from joint ownership provisions; Stalin had agreed. What did Cheng intend to do about the Russians living in the Combine’s Yamato Hotel and working in its main offices? “I’ll just ignore them,” said Cheng. “Fushun’s Mayor Yung Ning Lou has instructed 22,000 Japanese workers not to take orders from the Russians, but only from me. In the future, the Russians may sit in their offices and drink tea, if they wish, but they may not give orders.”

Cheng’s challenge was promptly conveyed to Yuri Mikhailovich Zezukevich, the Russians’ acting director of the Combine, and his assistant, multilingual George Chneider. Countered Chneider: “Our presence is not only admitted and approved by both Russia and China, but ordered. I have been informed that a joint commission in Harbin is even now discussing the future of Fushun. Until they reach a decision, the Combine continues to belong to the Sino-Soviet Changchun Railroad. Surely we do not intend just to sit around and drink tea. Maybe it is a Chinese custom to drink tea in the office, but it is not a Soviet one.”

Invitation to Amity. The Russians, miffed because Cheng did not call on them, decided to call on the Chinese.

Face-wise Director Cheng was in no hurry to see the Russians. For two days he was “too busy.” Finally he set a date for a 10 a.m. meeting. The Russians showed up an hour early because they were on Russian time. They were shepherded into a small waiting room, allowed to cool their well-worn heels a half hour.

Zezukevich asked: “Can’t you appreciate our service here in keeping the mines open?” Cheng replied affirmatively. Zezukevich declaimed: “We technicians are truly international.” Cheng remained passive. Zezukevich asked if the Russians should remain in Fushun or leave. Cheng replied: “Do as you please.” Zezukevich inquired if Cheng thought the mines were part of the Changchun Railroad. Cheng said no.

Invitation to Leave. At 5 p.m. that day Mayor Yung gave a banquet for Russians and Chinese. Many toasts were drunk; but a ghost sat at the groaning board. The Russians complained that the Chinese made many “transparent allusions” to the murder of Chinese Engineer Chang Hsin-fu, killed near Fushun last January. The Chinese believe the Russians were responsible. The Russians believe that Chinese Communists were guilty. Reported Chneider: “The Chinese kept telling us that they would guarantee our safety to Mukden, and then the Chinese would remind us that the Red Army gave the same pledge to their murdered colleague.”

The Russians held a meeting, worried about a possible “incident,” wondered how to protect their wives and children who had settled in Fushun with them. “The Chinese have taken over by force,” Chneider said, shrugging as only Russians can. “We have no force.” Finally, the Russians got in touch with their headquarters in Mukden, gratefully received their orders to leave Fushun.

But the question of Fushun’s ownership has not been really settled. As far as Cheng is concerned, the Combine is Chinese and will stay that way. The Russians, despite their withdrawal, may have other ideas.