Site:LRP:Western Technology & Soviet Economic Development

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by Congress:Member:Leslie R. Pastor [West Tech: A Product of the Control Paradigm] Copyright © 2009




The three (3) volume study of Western Technology and Soviet Economic Development written by Antony C. Sutton provided a significant ‘revelation,’ that the West, first funded the Russian Revolution and installed a Bolshevik government in Russia, exclusive of all other factions, who were fighting for freedom from ‘centrist’ authoritative

totalitarian control, eliminating Kerensky, the Whites, and the Greens, and ultimately the Czar, Czarina and their entire family. Then, subsequently, the United States, European nations and Japan, set about to create and then to sustain the Soviet Union, economically, by providing huge transfers of technology and engineering know-how. All of this is

laid out in Western Technology and Soviet Economic Development firstly, and then in Wall Street and the Bolshevik Revolution secondly. While the American public were literally starving during the Great Depression, and dead broke, having neither income, work, nor pensions, a massive building program was being engineered on the Russian mainland complete with American technology, American Engineering and know-how. Why?

Antony C. Sutton explains: "One of the truly great surprises in researching this study was the discovery that the architectural design and supervision of construction of industrial units as well as the supply of equipment and similar assistance was very much an American responsibility. In the words of Albert Kahn Co., Inc., the foremost industrial architects in the United States:

"It was in 1928…that the most extraordinary commission ever given an architect came in the door unannounced. In that year a group of engineers from the U.S.S.R. came to the Kahn office with an order for a $40 million (dollar) tractor plant, and an outline of a program for an additional two billion dollars’ worth of buildings. About a dozen of these factories were done in Detroit the rest were handled in a special office with 1,500 draftsmen in Moscow.

The 'outline of the program' presented to the Kahn organization in 1928 was nothing less than the First and Second Five-Year Plans of ‘socialist construction.’ Gosplan had decided upon those sectors it wanted developed and their approximate capacities. No foreign influence has been found at the Gosplan level. These plans were then turned over to the Albert Kahn Company for conversion into production units.

Albert Kahn, Inc., probably unknown to even well-informed readers, is the most famous of U.S. industrial architects. In 1938 the company handled 19 percent of all architect-designed industrial building in the United States, in addition to projects in most major countries elsewhere in the world. Prior to 1939 the company designed and supervised construction of about $800,000,000 worth of industrial buildings in the United States alone. This included the famous River Rouge plant of Henry Ford, plants for the Chevrolet, Packard, Hudson, General Motors, Oldsmobile, Cadillac, Chrysler, and De Soto automobile companies, Kelvinator, United Air Lines, Burroughs Adding Machine, Pratt & Whitney Aircraft, the Glenn L. Martin Company, and dozens of similar firms. For one customer alone, General Motors, the Kahn Company designed 127 major structures prior to 1939.

The $2-billion Soviet design project was two and a half times greater than all the U.S. business handled by the company between its foundation date, 1903, and 1939. As Kahn described the contract:

"Probably no organization has ever had a more severe test of its flexibility, speed, and competence. Not only did the plants have to be designed, but machinery had to be selected and ordered, process layouts had to be prepared and the very tools needed to build the plants had to be ordered here and shipped there."

The formal agreement between Albert Kahn, Inc., and Vesenkha, under which the Kahn Company became consulting architects to the Soviet Union, was concluded in early 1930 upon signing the agreement Moritz Kahn (one of the three Kahn brothers) commented:

"In a short time I shall proceed to Moscow with a staff of twenty-five specialist assistants. We shall then help the Soviet Government to organize a designing bureau, which will comprise about forty-five hundred architectural and engineering designers, selected principally from Soviet Russia, but also from America and other foreign countries. The bureau will be directed by the head of the Building Commission of the Supreme Economic Council."

This bureau became Gosproekstroi (State Project Construction Trust) the major Soviet design and construction organization. Chief of Gosproekstroi and Chairman of the Vesenkha Building Commission was G. K. Scrymgeour, a Kahn engineer and the only American on the National Technical Soviet. Scrymgeour outlined the Kahn unit functions as follows:

“The Albert Kahn unit was engaged to control, teach and design all light and heavy industry… By the end of the second year we controlled in Moscow, and from Moscow branches in Leningrad, Kharkov, Kiev, Dniepretrovsk, Odessa, Sverdlovsk and Novo-Sibirsk 3,000 designers, and completed the design of buildings costing (these are Soviet figures) 417 million rubles.

The 3,000 designers in Gosproekstroi can be compared to the small size of the Kahn Company in the U.S. The company handled the immense volume of work outlined above, and then absorbed the Soviet design contract, with the following staff:

"In normal times the firm…employs about 400 men and women among accountants 80-90 mechanical and electrical engineers 40-50 field superintendents some 30 specification writers estimators, expeditors etc., 175 architectural designers and draftsmen."

The problem, according to Kahn, was that ‘a large percentage of Soviet draftsmen…had apparently never seen a pencil before and Kahn representatives not only had to run it by day, but to hold classes at night.’

Albert Kahn attributed further major advantages to the Soviet Union in its relationship with the Kahn Company. For example, said Kahn, there was only one client: ‘this permits standardization of building construction all factory buildings for any one type of construction can be built on standardized principles. The result will be a great saving in time and in cost in the preparation of plans and the cost of buildings.’ Moreover, added Kahn, this would enable revision of the Soviet building code with a ‘saving of millions of dollars per annum because of the ultra-conservative character of that code.’

There is in the State Department files an interesting report of an interview with nine engineers from the Albert Kahn unit who called at the U.S. Riga consulate in late 1930 for renewal of entry permits. The report confirms that Kahn was undertaking supply of ‘engineering and architectural talent’ and that 27 American structural engineers, architects, sanitary engineers, and draftsmen were working in one large building in Moscow with 300 Russian engineers. They reported that the Soviet planners indicated the nature of the plant required and the Kahn unit made the designs and drawings. Albert Kahn also maintained its own representatives at larger projects under construction for example a Mr. Drabkin was the Kahn representative at the Stalingrad Tractor Plant.


This was an excerpt from Antony C. Sutton’s monumental three (3) volume study taken from Western Technology and Soviet Economic Development 1930-1945 pp. 249-252.


Alan H. Belmont (the former Assistant Director For Domestic Intelligence - FBI) permitted the publication of the following volumes by Dr. Sutton, at the Hoover Institution, Stanford University circa 1968-1973, subsequently, notifying the FBI of these data, and arranged a significant covert operation, known as Operation Solo, to ascertain the extent of Soviet penetration of American technology and science.

Western Technology and Soviet Economic Development.1917-1930 [Publication 76]

Western Technology and Soviet Economic Development 1930-1945 [Publication 90]

Western Technology and Soviet Economic Development 1945-1965 [Publication 113]

'Western Technology and Soviet Economic Development (1917-1965)' [1] [2] [3]






[An excerpt from the book: America's Secret Establishment by Antony C. Sutton]

Between 1917 and 1921 the Soviets pushed their control of Russia into

Siberia and the Caucuses. As we have noted, the United States

intervened in Siberia along the Trans-Siberian Railroad. Histories of U.S. intervention by George Kennan and the Soviets maintain this was an anti-Soviet intervention. In fact, it was nothing of the kind. The U.S. spread troops along the Siberian railroad only to keep out the Japanese, not to keep out the Soviets. When they left through Vladivostok, the Soviet authorities gave American forces a resounding send-off. But this is yet another untold story, not in the textbooks. The immediate problem facing the Soviets was to

restore silent Russian factories. This needed raw materials, technical skills and working capital. The key to Russian reconstruction was the oil fields of the Caucasus.

The Caucasus oil fields are a major segment of Russian natural resource wealth. Baku, the most important field, was developed in the 1870s. In 1900 it was producing more crude oil than the United States, and in 1902. more than half of the total world crude output. The Caucasus oil fields survived Revolution and Intervention without major structural damage and became a significant factor in Soviet economic recovery, generating about 20 percent of all exports by value the largest single source of foreign exchange. The Bolsheviks took over the Caucasus in 1920-1, but until 1923 oil field drilling almost ceased. During the first year of Soviet rule ". . . not one

single new well has started giving oil"(1) and even two years after Soviet occupation, no new oil-field properties had been developed. In addition, deepening of old wells virtually ceased.

As a result, water percolated into the wells, and the flow of crude oil became a mixture of oil and water. Drilling records are an excellent indicator of the state of oil field maintenance, development, and production. The complete collapse after the Soviet takeover is clearly suggested by the statistics. In 1900, Russia had been the world's largest producer and exporter of crude oil almost 50,000 feet of drilling per month had been required in Baku alone to maintain this production. By early 1921, the average monthly drilling in Baku had declined to an insignificant 370 feet or so (0.7 percent of the 1900 rate), although 162 rigs were in working

order. Then, Serebrovsky, Chairman of Azneft (the Soviet oil production trust) , put forward a program for recovery in a Pravda article.

The plan for 1923 was to increase oil well drilling to 35,000 sazhens per year (245,000 feet). This would require 35 rotary drills (to drill 77,000 feet) and 157 percussion drills (to drill 130,000 feet). Serebrovsky pointed out that Azneft had no rotary drills, and that Russian enterprise could (1)U. S. State Dept. Decimal File. 316-137-221. -149- not supply them. Rotary drilling, however, was essential for the success of the plan. He then announced: "But just here American capital is Going to support us. The American firm International Barnsdall Corporation has submitted a plan . . .

lack of equipment prevents us from increasing the production of the oil industry of Baku by ourselves.

"The American firm . . . will provide the equipment, start drilling in the oil fields and organize the technical production of oil with deep pumps." (1) During the next few years International Barnsdall, together with the Lucey Manufacturing Company and other major foreign oil well equipment firms, fulfilled Serebrovsky's program. Massive imports of equipment came from the United States. International Barnsdall inaugurated the rotary drilling program, initiated Azneft drilling crews into its operational problems, and reorganized oil well pumping with deep well electrical pumps. The first International Barnsdall concession was signed in October 1921, and was followed in September of 1922 by two further agreements. There is no doubt that Barnsdall did work under the agreements. Pravda reported groups of American oil field workers on their way to the oil fields, and a couple of months previously the United States, Constantinople Consulate, had reported that Philip Chadbourn, the Barnsdall Caucasus representative, had passed through on his way out of Russia.

The U.S. State Department Archives Contain an intriguing quotation from Rykov, dated October 1922: "The one comparatively bright spot in Russia is the petroleum industry, and this is due largely to the fact that a number of American workers have been brought into the oil fields to superin- tend their operation." (2) Who, or what, was International Barnsdall Corporation? The Chairman of International Barnsdall Corporation was Matthew C. Brush whom we previously identified as The Order's "front man." Guaranty Trust, Lee, Higginson Company and W.A. Harriman owned Barnsdall Corporation, and International Barnsdall Corporation was owned 75% by the Barnsdall Corporation and 25% by H. Mason Day. The Guaranty Trust interest was represented by Eugene W. Stet- son (also a Vice President of Guaranty Trust), whose son, Eugene W. Stetson Jr., was initiated into The Order in 1934. The Lee Higginson interest was represented by Frederick Winthrop Allen (The Order'00) (1) Pravda, September 21. 1922. (2) U.S. State Department Decimal File. Microcopy 316. Roll 107. Frame 1167.

In brief, The Order controlled International Barnsdall Corporation. The second potentially largest source of Soviet foreign exchange in the 1920s was the large Russian manganese deposits. In 1913, tsarist Russia supplied 52 percent of world manganese, of which about 76 per- cent, or one million tons, was mined from the Chiaturi deposits in the Caucasus. Production in 1920 was zero, and by 1924 had risen only to about 320,000 tons per year. The basic problem was: ' "that further development- was seriously retarded by the primitive equipment, which was considered grossly inadequate even according to prewar standards." The Chiaturi deposits, situated on high plateaus some distance from Batum, were mined in a primitive manner, and the ore was brought on donkeys from the plateaus to the railroads. There was a change of gauge en route, and the manganese had to be transshipped between the original loading point and the port. When at the port, the ore was transferred by bucket: a slow, expensive process.

The Soviets acquired modern mining and transportation facilities for their manganese deposits, acquired foreign exchange, and finally shattered American foreign policy concerning loans to the U.S.S.R., in a series of business agreements with W.A. Harriman Company and Guaranty Trust.' On July 12, 1925, a concession agreement was made between the W.A. Harriman Company at New York and the U.S.S.R. for exploita- tion of the Chiaturi manganese deposits and extensive introduction of modern mining and transportation methods. Under the Harriman concession agreement, $4 million was spent on mechanizing the mines and converting them from hand to mechanical operation. A washer and reduction plant were built and a loading elevator at Poti, with a two-million ton capacity and a railroad system were constructed, together with an aerial tramway for the transfer of manganese ore. The expenditure was approximately $2 million for the railroad system and $1 million for mechanization of the mines. The Chairman of the Georgian Manganese Company, the Harriman operating company on the site in Russia, was none other than The Order's "front man Matthew C. Brush.

(1) The interested reader is referred to over 300 pages of documents in the U.S. State Dept. Decimal File 316-138-12/331, and the German Foreign Ministry Archives. Walter Durant described the Harriman contract as "utterly inept" and von Dirksen of the German Foreign Office as "a rubber contract" The full contract was published (Vysshii sovet nardnogo khoziaistva, Concession Agreement Between The Government Of The U.S.S.R and W.A. Harriman Co. Inc. Of New York (Moscow, 1925) -149- [State Department Letter To U.S. Embassy In London (861.637/ 1)]

Source: Site:LRP:The Control Paradigm (The Control of the USA by the RTA Inc)


The Hegelian Dialectic (G. Richard Arnold)

National Defense - Creating Communism

Western Technology & Soviet Economic Development

Albert Kahn Inc

Albert Kahn & Soviet Union

Albert Kahn Papers 1896-2008


Complete corroboration for the general argument of this study comes from an excellent source: Joseph Stalin. In June 1944, W. Averell Harriman, reporting to the State Department on a discussion between Eric Johnston and Stalin, made the following significant statement:

"Stalin paid tribute to the assistance rendered by the United States to Soviet industry before and during the war. He said that about two-thirds of all the large industrial enterprises in the Soviet Union had been built with United States help or technical assistance."

Source: U.S. State Dept. Decimal File, 033.1161 Johnston, Eric/6-3044: Telegram June 30, 1944


For the interested research scholar interested in verification:

Russian, Soviet, & Eastern European Studies

U.S. Department of State Decimal Files:

Russia/the Soviet Union and Eastern Europe, 1910-1954

National Archives Record Group 59

Russia/the Soviet Union, including the Baltic States and the Transcaucasian States

Internal Affairs

Records of the Department of State relating to: the Internal Affairs

of Russia/The SOVIET UNION, 1910-1944

Decimal File 861

1910 - 1929 – M316 – 177 rolls. $4,071.00 (Antony C. Sutton’s Research)

1930 - 1939 – T1249 – 75 rolls. $1,725.00

1940 - 1944 – T1250 – 35 rolls. $805.00

'Scholarly Resources Inc [Primary Materials Used]

To Order: 1-800-772-8937

Scholarly Resources Inc.

104 Greenhill Avenue

Wilmington, DE 19805-1897


Russia & The Soviet Union (Hoover Institution Library) - Antony C. Sutton


From Russia With Love


Voline: The Unknown Revolution


Joint Russian-American Ventures Under The Former Reagan Administration


Censored History


'Woodrow Wilson: Disciple of Revolution' (1938) by Jennings Cropper Wise on page 647 states:

'"Historians must never forget that Woodrow Wilson, despite the efforts of the British police, made it possible for Leon Trotsky to enter Russia with an American passport." '


Additional Reference:


The Communist - Capitalist Alliance [Part1] [Part2] [Part3]


The Reagan Doctrine - Farewell - The French Connection

(A significant corroboration of Antony C. Sutton's Monumental Work)


The Bilderberg Group - Saviors or Destroyers

America's Secret Establishment by Antony C. Sutton

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