SOVIET GOLD

New Zealand Herald, Volume LXXVI, Issue 23339, 6 May 1939, Page 15 (Supplement)

SOVIET GOLD

American Engineer's On Country's AIM TO RIVAL SOUTH AFRICA IN 1940

By SCRUTATOR

WITH international relations strained * perilously near breaking-point in Europe and democratic powers endeavouring to form an alliance for mutual defence in the event of further totalitarian aggression, the position of Russia becomes of paramount importance. After all, surprisingly little is known of modern Russia's value as a potential ally. To the greater part of the world the extent of the {|oviet Union's resources is a m3'SEconomic Position Since war-clouds gathered low over Europe last September, millions of people throughout the world have been mentally ranging the forces of democracy against those of totalitarianism, and wondering whether Russia might safely be added to the strength wielded by Britain and France. Recent developments have indicated that in the event of a European war, Russia would lend her support to the democracies, but just how valuable that support would be is a question that remains unsettled in the public mind. The might of Russia's air force has become almost legendary. Newsrecls and newspapers have carried pictures

and rail, Mr. Littlepage travelled some 200.000 miles in central and Asiatic Russia, and rose to become chief engineer to the Gold Trust, the organisation controlling Stalin's own pet industry. Through Demarce Mr. Littlepage tells the story of his 10 years in Russia in the book, "In Search of Soviet Gold." It is a straightforward account, dealing not with impressions and idealistic meanderings, as do many books about modern Russia, but with cold facts of production, returns, and estimated profits of mines, together with some general observations' regarding the effect of Soviet rule upon the industry itself. • But if he does not discuss politics, he resolutely refuses to do so in fact, Mr. Littlepage is willing to discuss goldmining in all its aspects, and as far as Russian mining is concerned, he has the highest possible credentials to support his views.' The prospect of world leadership in gold production is even possible of attainment by Russia, Mr. Littlepage believes, as early as 1940. Tremendous Investments "The Soviets have poured tremendous investments of money and effort into gold-mining since 1928, and this is one of the industries for which millions of Soviet men, women and children have gone short of i°°d> clothing and all kinds of luxuries.

of hundreds of thousands of soldiers of the Soviet Union assembled on ceremonial occasions in the Red Square, but beyond vague references to "great mineral wealth," "coal, oil, timber and iron," the subject of Russia's economic position has been given little prominence.

Mr. Littlepage says. "This is because the machinery and plant, and services of foreign engineers in the gold industry have been paid for by agricultural and dairy products during a period when the Russian peoples were experiencing an acute shortage of such products. "Stalin and his associates apparently thought these sacrifices were worth making, so far as gold was concerned, not only because of the purchase which gold would make abroad as soon as it was brought out of the ground, but also because of its potential usefulness in case of war.

Gold, millions of pounds' worth of dull, gleaming gold, remain to be mined in the vast territory that comprises the United States of Soviet Russia. It is doubtful whether even the Russians themseh'es realised this a few years ago, and it remained for an American engineer to find it out in detail and make it known to the men who run this strange country. Tempting Contract John D. Littlepage was superintendent of a gold-mining property near Juneau, Alaska, in 1927, when chance acquaintance with a man prominent in the Soviet Gold Trust resulted in an offer for him to go to Russia. Mr. Littlepage did not want to go, and with typical American frankness, said that he did not like the Bolsheviks and their hobby of shooting people, particularly engineers. A most tempting contract was offered, and Mr. Littlepage weakened. When ho learned that he would be welcome to take his wife and children to Russia with him, he accepted the post. So began Russia's rise as one of the world's gold-producing nations. By road, air

"For years the Russian leaders have based all their actions 011 the belief that they will soon he involved in war. They apparently started to build up a larger gold reserve in order to strengthen their military position. If gold were demonetised, the value of their gold reserves would, of course, drop to a small fraction of its present worth. "However it seems to mo that the Soviets may protect the world price of gold and still push ahead with development of their gold-mining industry, almost as rapidly as in the past. It is even possible that they may endeavour to attain production equal to that of South Africa in 1940, as Soviet papers have on more than one occasion suggested they intend to do."

"In Search of Soviet Gold," by John D Littlepage (Harrap).