Agranov forwarded to Stalin a decrypted intercept of a telegram (November 17, 1934) from ambassador Joseph Grew, in Tokyo, to the U.S. State Department, concerning a conversation with Japanese foreign minister Kōki Hirota, who had stated that, given the various agreements among European powers, Japan could not remain isolated and would have to follow suit. “A decision was taken such that the foreign ministry would search for an ally,” Hirota was quoted as saying of the cabinet. “The chosen country should above all have no specific interests in Asia. In this category could be included Russia or England.” Stalin underlined that passage. “But the USSR is completely excluded as a potential ally because of its aggressive position toward Japan and its interests.” By contrast, Hirota thought a deal could be reached with Britain over weapons sales and trade, provided Japanese interests were recognized in China. The United States was also on Hirota’s potential ally list, and he concluded what Grew deemed an “unusual conversation” with a desire for friendly relations. Stalin wrote on the document, “And so it happens, it’s become tough for Hirota. Interesting.”51

On November 27, Stalin received the Mongols again, this time with Kirov in tow, even though he was not a member of the politburo’s Mongolia commission.Stalin began by noting that he was forgiving all of Mongolia’s debt as of January 1, 1934—30 million tugriks, the equivalent of almost 10 million gold rubles (at the official exchange rate)—and half the debt accumulated in the coming year: another 33 million tugriks, with the other half to be paid starting in 1941. “If you do not have a good army, the imperialists, Japan, will swallow you,” he said, pointing out that the Mongolian army numbered only 10,000. He said their army budget was 14 million tugriks but offered to pay 6 million a year for five years for expansion, and advised the Mongols to pay their portion with state monopolies on tobacco, salt, and matches, alongside alcohol. He also informed them that they needed to sign bilateral pacts of nonaggression and of mutual assistance, but that the second, for now, would not be published, a message for Japan, but not an overly provocative one.52 The nonpublic pact would allow the Red Army to defend the USSR by reassuming advance positions on Mongolian territory. “There should be a difference between Soviet assistance in wartime and in peacetime,” Demid, a graduate of the prestigious Officers’ Cavalry School in Tver, urged.53 Resistance proved futile, however.54 Soon, some 2,000 Red Army troops would reenter Mongolia.

Kirov had returned to Moscow because of a Central Committee plenum, the third and final of the year, from November 25 to 28, 1934. It dealt with the end of bread rationing, which involved some 50 million people, a costly subsidy and administrative expense amid financial challenges. Rye bread, which cost 50 kopecks per kilo in a state store with a ration coupon (and 1 ruble 50 kopecks at commercial shops), would now cost 1 ruble, a significant increase for workers.55 “What is the idea of the policy of abolition of the rationing system?” Stalin remarked at the plenum. “The cash economy is one of the few bourgeois economic mechanisms that we socialists must make full use of. . . . It is very flexible, and we need it.”56 Kirov said little, as usual. Afterward, Stalin took a small group, including Kirov, to the Kremlin cinema, where Shumyatsky showed Chapayev, which Stalin said he was seeing for the eleventh time. Orjonikidze, meanwhile, was suffering from heart palpitations and stomach pains. He had been the only member of the inner circle left out of that fall’s harvest mobilization, and had had his holiday extended. Stalin had compelled him to stay away from the capital until November 29. By the time Orjonikidze returned to Moscow, his friend Kirov had left.57 Stalin saw Kirov off at the station.58

A TERRORIST

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