Late on December 30, he and his inner circle received the delegation from Mongolia in Molotov’s office, and took an aggressive posture. Molotov: “You, Genden, when drunk, all the time speak anti-Soviet provocations. We know that before your departure to come here, you said that we would recommend a long stay in the Kremlin hospital or holiday in Crimea, ‘in connection with your health.’” Stalin reprimanded Genden for spending only 25 percent of the state budget on the military, asserting that the USSR would spend 70–80 percent when necessary, and demanding that Mongolia spend 50–60 percent. “If you, Genden, are not concerned with the defense of your country, and you think that Mongolia suffers from its ties to the USSR, which you think cheats and takes advantage of Mongolia, and you want to get friendly with Japan, then go ahead!” Stalin declared disingenuously. “We do not compel you to have relations with us if you do not want to.” He added: “You do nothing about the lamas. . . . They can undermine a good army and the rear.”237
Molotov declared a break and invited them to “tea” (often code for spirits). Demid, the defense minister, understood that his country could not manage against possible Japanese aggression without Soviet assistance, while Genden preferred to rely on the country’s own army, with more Soviet weapons, even as he feared excessive debt to, and therefore dependence on, Moscow.238 Whether at this Kremlin session or a New Year’s reception at the Mongolian embassy, Genden, in a drunken state, did something no one else ever had or would—he snatched Stalin’s pipe and smashed it.239
“INTERESTING”
Stalin welcomed the year 1936 with a larger crowd than usual at the Near Dacha: the inner circle and nearly all the people’s commissars as well as his relatives.240 “The country has never lived so full-blooded a life as at present,”
Molotov boasted to the central executive committee, as reported by the Soviet press, that “representatives of the German government had raised the question of a new and larger credit facility covering a ten-year period.”241 In Berlin, Kandelaki presented a list of desiderata that included submarines, IG Farben chemical patents, and Zeiss optical technology.242 The British embassy in Berlin warned the foreign office about a grand deal in the offing.243 Schacht, who had originally deflected Kandelaki’s attempts to shift their conversations to political matters, now remarked to him, “If a meeting between Stalin and Hitler could take place, it would change many things.” Stalin wrote on his copy of the secret report: “Interesting.”244
“Trotskyites” had also seized attention. Valentin Olberg, a provincial teacher who happened to have just returned from Germany, was arrested by the NKVD (January 5, 1936), which extracted “testimony” from him that he had come back with a special task assigned to him by none other than Trotsky: a “terrorist act” against Stalin. Olberg named other “terrorists” he had “recruited”; arrests followed.245 By spring the NKVD would arrest 508 “Trotskyites,” one of whom was found in possession of Trotsky’s personal archive for 1927. Stalin ordered the NKVD to furnish Yezhov with copies of all documents pertaining to Trotskyites and freed him from overseeing party organs, a task passed to Yezhov’s deputy, Georgy Malenkov (b. 1902). Yezhov now oversaw the NKVD full time.246
In Ulan Bator on January 20, Choibalsan, minister of livestock and agriculture, made an impassioned speech in favor of accepting Soviet “proposals.” Many of the top Mongolian party officials present were reluctant to submit to Stalin’s diktat; some perhaps even favored negotiations with Japan, but they knew someone would immediately inform Moscow. They approved a formal invitation to the USSR for two army brigades, and resolved to increase their own army to 17,000 and their national guard to 2,500.247