Shanghai Conference on Industrial Cooperation [SECRET]

刘少奇
Liu Shaoqi

2nd Chairman of the People’s Republic of China
Vice Chairman of the Chinese Communist Party
Delegate to the National Peoples Congress

I humbly welcome the delegate of iur Fraternal Brothers in the Union of Soviet Socialist Republics to Shanghai. I have been empowered by the Chinese National Peoples Congree and the Chinese Communist Party to participate in these discussions, with the end goal of treaties and agreements to strengthen our industrial cooperation and mutual security agreements.

For this conference, the government of China has two principle topics, though both are broad. First, the continued assistance of the USSR in regards to our agricultural industry. Second, the expansion of prior technology transfer and defensive agreements. We are also more than happy to hear of any issues the USSR wishes to discuss.

Opening Statement by Comrade Alexei N. Kosygin
Chairman of the State Planning Committee of the USSR
Deputy Chairman of the Council of Ministers

Delivered at the First Session of the Sino-Soviet Industrial and Mutual Security Coordination Conference, Shanghai – 1961


Comrade Liu Shaoqi,
Esteemed delegates of the People’s Republic of China,
Fraternal comrades of the Chinese Communist Party,

On behalf of the Soviet delegation, allow me to express our sincere appreciation for the warm welcome extended to us here in Shanghai. It is an honor to be received by you personally, Comrade Liu, a stalwart of the revolution and a proven guide of the people.

Our presence here is not only a symbol of bilateral cooperation, but a reflection of something deeper: the unbroken bond between two peoples who have marched along parallel revolutionary paths, drawn forward by the teachings of Marx, Engels, Lenin, and the heroic example of China’s own socialist construction.

You have clearly outlined two vital areas of shared concern: agriculture, and technological-industrial and defense cooperation. I wish to say, from the outset, that the Soviet Union arrives not with a position of imposition, but of technical solidarity , grounded in the scientific method and socialist brotherhood.

In the field of agriculture, the Soviet Union has, in recent years, rededicated itself to the classical principles of Marxist-Leninist planning—combining central coordination with rigorous material analysis. We do not view this as innovation, but as a return to clarity: where grain, labor, and fertilizer are treated as dialectical components of the productive base , and not merely figures in a ledger. We are fully prepared to discuss continued assistance in fertilizer production, transport planning, irrigation systems, and mechanization—always with full respect for Chinese sovereignty and conditions.

On the matter of defense and industrial technology, let me affirm the Soviet Union’s position: mutual security among socialist nations is not an abstract principle—it is a practical necessity. The world remains divided, and imperialism does not rest. We therefore welcome careful, confidential discussions with our Chinese comrades regarding the expansion of previous technical understandings, with the aim of safeguarding the revolutionary gains of both our peoples.

Beyond the two topics you have raised, the Soviet delegation stands ready to share the experiences of our ongoing work to deepen rational socialist construction across all branches of national life. These are not experiments, but reaffirmations of Lenin’s vision: that socialist society is built through plan, discipline, and scientific labor , coordinated across all levels of the people’s economy.

Let this conference proceed in a spirit of discipline, openness, and shared mission. Whatever tactical differences may arise, we are united by the strategic truth that the strength of the socialist world lies not only in ideology, but in unity of method, unity of material power, and unity of purpose.

刘少奇
Liu Shaoqi

2nd Chairman of the People’s Republic of China
Vice Chairman of the Chinese Communist Party
Delegate to the National Peoples Congress

Comrade Chairman Kosygin, it would seem as we are unsurprisingly aligned in our thinking and rationale. This is a testament to the continued brotherhood of Socialist nations.

Let us first delve into the topic of defense. The People’s Republic of China has benefitted greatly from the technological expertise of the Soviet Union, and of your nations willingness to support your fellow Socialist nations. With this in mind, we feel it only appropriate to attempt to return these gestures with one of our own.

Lüshunkou harbor in Dalian, Liaoning–historically referred to as Port Arthur–has a history of hosting foreign navies, including the Russian Navy. While this arrangement had been pushed upon our nation by Imperialists in the past, we see a potential to open into such a relationship with our Brethern willingly. We feel this will be nothing but mutually beneficial, allowing the People’s Republic of China to contribute to the defensive capability of the Soviet Navy.

We offer a lease of the harbor, all facilities included, to the Soviet Union at the rate of $100,000.00 per year, for a minimum of 20 years. Aftet this time, the lease may be renewed or renegotiated.

To: Comrade Liu Shaoqi
2nd Chairman of the People’s Republic of China
Vice Chairman of the Chinese Communist Party
Delegate to the National People’s Congress

From: A.N. Kosygin
Chairman of the Council of Ministers
Union of Soviet Socialist Republics


Comrade Liu,

Your generous and fraternal proposal regarding Lüshunkou Harbor has been received with great appreciation. It stands as a powerful testament to the deepening bonds between our two socialist nations and to the strength of our common vision for collective security and internationalist cooperation.

At this moment, the Soviet Union is in the process of reassessing and refining its approach to naval posture and strategic defense. While our historical emphasis has centered upon coastal protection and nuclear deterrence, there is now growing recognition—amongst our naval planners and comrades in the scientific-technical community—that a new form of sea-based strategic denial may be both achievable and essential to countering the imperialist powers, particularly in the Western Pacific and Indian Ocean theatres.

To that end, the opportunity to establish a durable and formal presence in Lüshunkou offers precisely the kind of strategic depth and practical setting required to test and evolve this emerging theory. Your harbor—long a crucible of naval history—may again become a proving ground, this time not for domination, but for the construction of a socialist-oriented model of maritime deterrence and defensive projection.

We envision the following preliminary steps, subject to mutual consultation:

The dispatch of a joint military-technical commission to evaluate current facilities and their potential adaptation for submarine operations, coastal support vessels, and long-range reconnaissance coordination.

The possible establishment of shared observation detachments, enabling both our forces to refine doctrine through direct collaboration.

The integration of Lüshunkou into broader war games and simulations, allowing for practical validation of tactics focused on area denial, layered defense, and regional access security.

As this new naval thinking has not yet been codified into a formal doctrine, Lüshunkou may indeed become the first active laboratory where theory begins to transform into capability—guided always by the principles of proletarian solidarity and common resistance to encirclement.

We are prepared to accept the terms of your proposed lease and suggest that formal negotiation begin without delay. This act will not only advance mutual security, but affirm to the world that the socialist camp does not merely react to the maneuvers of others—it builds the foundations of a new global balance.

刘少奇
Liu Shaoqi
2nd Chairman of the People’s Republic of China
Vice Chairman of the Chinese Communist Party
Delegate to the National Peoples Congress

Your plan seems more than acceptable to us, Comrade Kosygin. The Peoples Republic has also begun research into the method of defense on the naval front. We are eager to cooperate with you to explore this new concept.

A final piece of discussion in terms of defense. Please accept this file (sent via PM) of designs that the Peoples Republic see as viable for our defense. The list is long, but we feel that with your assistance in this respect, we can easily meet our defensive needs. We are willing to discuss the terms of technology transfers for these units, including blueprints, tooling, and components.