Category Archives: industry

by | 14 June 2025 · 3:42 pm

Ryukyu Exports to Ming China

From Maritime Ryukyu, 1050–1650, by Gregory Smits (University of Hawaii Press, 2018), Kindle pp. 115, 122-124:

By the late fourteenth century gunpowder weapons had become crucial in warfare. The Hóngwǔ emperor, “the gunpowder emperor” according to Tonio Andrade, embraced this powerful technology. “The extraordinary success of the Ming dynasty,” argues Andrade, “was based on the effective use of guns.” Sulfur was a key ingredient in gunpowder. Japan produced it in abundance, especially in and around Kyushu. China possessed abundant potassium nitrate (saltpeter) but lacked sulfur in a form that was readily usable. Therefore, sulfur had great profit potential as a trade item.

…

The frequency of tribute trade increased dramatically after 1383. Total Ryukyuan tribute trade, including the number of embassies per year, number of ships, and quantity of goods, reached a peak during the 1420s and 1430s. Subsequently, it began a gradual decline, followed by a sharp decline during the 1520s.

No single metric captures the entire picture of official trade. The number of tribute missions per year is one possible measure, but each mission might consist of variable numbers and sizes of ships with different mixes of cargo. It is more useful to measure the quantity of sulfur, an item shipped with each tribute voyage. Ryukyu had access to a steady supply of sulfur from the island of Iōtorishima [Sulfur Bird Island]. Here, I follow Ikuta Shigeru’s analysis, with quantities derived from Rekidai hōan documents. Ikuta divides Ryukyuan tribute trade into seven periods, each based on significant changes in circumstances affecting the trade.

Period two was the approximate peak of Ryukyu’s tribute trade. The average annual shipment of sulfur to China on Ryukyuan tribute vessels during this time was 38,013 jīn. Using this quantity as 100 percent, table 1 shows the decline in Ryukyuan sulfur shipments to China relative to each immediate previous period and to period two, the peak of trade. Period three marks the start of Ming-imposed restrictions on Ryukyu’s tribute trade, the most important of which was limiting tribute missions to one per year. By 1440, once per year was already the typical frequency, so the practical impact on trade volume was small.

…

Sulfur and horses help illuminate the maritime network in which Ryukyu was embedded and the role of wakō. Ryukyu’s tribute cargo of sulfur was not simply a token. Elemental sulfur was scarce in China, requiring that it be manufactured from pyrite, an iron sulfide. During the Ming dynasty “the number of areas producing pyrite-derived sulfur greatly increased. Ming dynasty documents (1564) mention that the emperor allowed the central and four local governments to buy about 10,000 jin of sulfur per year to replenish their supplies for gunpowder manufacture.”

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Filed under China, economics, industry, Japan, Korea, military

by | 21 April 2025 · 6:20 am

China’s Current Gold Rush in Africa

From The Chinese Question: The Gold Rushes and  Global Politics, by Mae Ngai (W. W. Norton, 2021), Kindle pp. 304-305:

The contours of Chinese small-scale gold mining in twenty-first-century Ghana and other gold-rich areas of West and Central Africa bear some uncanny resemblances to Chinese gold-mining and migration practices in the mid-nineteenth century: small companies with partners pooling resources; network-based migrations and brokers that pave the journey from home to foreign goldfields; and uneasy relations with citizens and governments in destination countries. These economic and cultural patterns are remarkable for their persistence and adaptability.

But the Chinese gold rush to Ghana is quite different from the gold rushes of the nineteenth century. Gold is no longer the money-commodity and hence does not generate the same kind of global fever that it did in the past. Nevertheless, gold remains a premier store of value and is highly sought during economic recessions. Thus, Chinese mining entrepreneurs rushed to Ghana between 2008 and 2013 because the world price of gold hit historic highs after the 2008 financial crisis. Gold remains valuable, furthermore, for use in some industrial applications and especially for ornament. China and India are the two largest consumers of gold in the world, nearly all of it for jewelry. China is actually the world’s largest producer of gold (400 tons in 2018), but its declining reserves cannot keep up with domestic demand.

Chinese participation in small-scale gold mining, while not insignificant, is just one aspect of China’s mining interest in Africa. China also engages in industrial gold mining, with investments in South African mines, which are still producing after 150 years on the Witwatersrand but now at nearly two miles below the surface. In addition, copper, cobalt, manganese, bauxite, coltan (used in electronics and mobile phones), and dozens of other minerals and metals are critical elements in Chinese manufacturing, especially in top sectors like electronics, vehicles, and steel production. Africa’s rich mineral reserves and China’s voracious industrial appetite have made China the largest importer of minerals from sub-Saharan Africa.

Still, mining ranks but third in China’s African interests, after infrastructure (roads, railroads, ports) and energy (oil and gas). China’s annual foreign direct investment in Africa is enormous, growing from $75 million in 2003 to $5.4 billion in 2018. Approximately one-half of the capital comes from the central government’s state-owned enterprises and banks. Other Chinese investors and contractors include provincial-level state-owned enterprises and private companies and, at the bottom of the hierarchy, small entrepreneurial ventures like those in artisanal mining.

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Filed under Africa, China, economics, industry, labor, migration

by | 28 March 2025 · 6:16 pm

Sad Fate of Sihanoukville

From Sihanoukville: Rise and Fall of a Frontier City, by Ivan Franceschini, with photos by Roun Ry, Global China Pulse, September 2024:

From quiet seaside town known mostly as a backpacker destination, the place turned first into a booming frontier city with aspirations to become the ‘new Macau’ and then into a notorious haven for online scam operations. How did it come to this? How did a city once famous as a destination for low-end tourism turn into a hub for human trafficking and modern slavery linked to cybercrime?

Founded in the mid-1950s around a then new deep-water port funded by France and named after the late Cambodian king and long-term ruler Norodom Sihanouk (1922–2012), the Sihanoukville of old [once known as Kampong Som] is often remembered as an enchanted place. Youk Chhang (2021), director of the Documentation Centre of Cambodia, a nongovernmental organisation (NGO) that played a fundamental role in documenting the atrocities of the Khmer Rouge, has described how, when he was growing up in Cambodia in the 1960s, he used to hear about the city in popular music. Although he had never visited the place, his youthful fascination was also fuelled by the fact that Jacqueline Kennedy had travelled there in 1967 to inaugurate a boulevard named after her late husband, John Fitzgerald Kennedy. As his words in the epigraph to this essay show, his first visit to the city in the early 1990s did not disappoint.

I had a chance to visit Sihanoukville myself in the early 2010s and have some very distinct memories of a somnolent town of low-rise buildings, with seaside resorts beside white-sand beaches where one could lie in a hammock and simply relax. The temptation to nostalgia is strong. Yet, even at that time, it was widely known that, behind the beautiful scenery, the city was an imperfect paradise. Not only were certain areas a haven for sex tourists, including several notorious paedophiles, it was also a favourite haunt of a handful of Russian oligarchs and gangsters, who for years dominated the city with their extravagant behaviour and penchant for violence.

In the early 2010s, Sihanoukville was the long-term home of a growing community of about 200 former Soviet citizens and attracted as many as 5,000 to 6,000 Russian-speaking tourists every year (Plokhii 2011). They had their own Russian-language newspaper, a monthly Russian community meeting, at least six Russian restaurants, street signs in Russian, and a Russian-owned beachside disco. There were also plans to build the first Russian Orthodox church in the city, which came to fruition a few years later (Orthodox Christianity 2014). Money—often of uncertain provenance—was pouring in. Yet, the situation on the ground was quickly shifting as new Chinese investors began to eye the lucrative opportunities in the city.

In fact, China’s presence in Sihanoukville goes way back. Under the Khmer Rouge regime (1975–79), the city was the site of one of the main Chinese aid projects in what was then known as Democratic Kampuchea: the reactivation and expansion of an oil refinery that had been built by a French company in the 1960s and abandoned due to continuous attacks from Cambodian and Vietnamese communist insurgents and US bombing in May 1975.

In Brothers in Arms, Andrew Mertha (2014: Ch. 5) documents in painstaking detail the bureaucratic and personal challenges that Chinese workers faced as they attempted to rebuild the refinery—their long-ago voices resonating with the complaints of some of their successors of today as they bemoan the lack of skills of Cambodian co-workers and the impossibility of understanding who is in charge of what (Franceschini 2020). The refinery would never be completed, the project reaching a premature end due to the onslaught of the internal purges in the Khmer Rouge bureaucracy and then the Vietnamese invasion. As the Vietnamese forces entered Kampong Som, the place ‘became noteworthy’ as a ‘site of the disorganized and panic-ridden retreat of the Chinese’ (Mertha 2014: 117). Convinced by Khmer Rouge propaganda into believing that all was well on the Vietnam front, Chinese technicians and workers took a while to realise the impending danger. It was then too late for them to escape and as many as 200 became de facto prisoners of war.

Fast forward two decades. In the newly pacified Cambodia of the 1990s, Sihanoukville gained renewed importance as the country’s only deep-water port, which made it an important hub for international trade. In the new millennium, Chinese businesses began to gain a foothold in the city and the surrounding Preah Sihanouk Province. An important event in this sense was the establishment of the Sihanoukville Special Economic Zone—a development that would later be branded a landmark project of the Belt and Road Initiative (BRI) in Cambodia (IDI 2021). A priority of both the Chinese and the Cambodian governments since its approval in 2006, the project showcased the alignment of their agendas in that period, with Cambodia prioritising the zone’s development to attract foreign capital to build its export capacities, and China eager to push its well-established manufacturers to head overseas and seek lower-cost production bases and explore access to foreign markets (Loughlin and Grimsditch 2020; Bo and Loughlin 2022).

The transformation of Sihanoukville began abruptly in the mid-2010s, accelerating around 2017, as online gambling operators set up shop in the city. They soon spread rapidly across Cambodia, but Sihanoukville was the perfect location: relatively good access to the capital, Phnom Penh, a functioning airport, and plenty of land—much of it already grabbed by local elites—available for purchase or rent; an already thriving in-person gambling industry; and very lax law enforcement. Possibly, it was made even more desirable by the impending construction of China-funded infrastructure, especially a new expressway that would connect the city to Phnom Penh, dramatically cutting travel time between the two cities.

Given these considerations, industry operators began to descend en masse on the city, investing not only in their online activities, but also in a host of new casinos, hotels, and entertainment venues, most of which were targeting the rapidly growing Chinese market. This generated a bubble that, at its peak in 2019, produced annual revenue conservatively estimated between 3.5 and 5 billion USD a year, 90 per cent of which came from online gambling (Turton 2020). The Chinese population in the city grew exponentially, as did the percentage of businesses owned by Chinese nationals, which in mid-2019 was a staggering 90 per cent of the total in the city (Hin 2019).

…

In January 2018, authorities in China launched a three-year campaign known as ‘sweeping away the black and eliminating the evil’ (扫黑除恶), to root out ‘underworld forces’ (Greitens 2020). Destinations like Sihanoukville likely presented an enticing prospect to gangsters trying to avoid the crackdown. It was around this time that reports of kidnappings, human trafficking, and forced labour to fuel the burgeoning online gambling and online scam industry in Sihanoukville started appearing with increasing frequency in Chinese-language media. As the presence of illicit online operations became better known, in July 2018, the Chinese Embassy in Cambodia released a warning about the ‘high-paying traps of online gambling recruitment’—one of the earliest instances of such advisories that we were able to locate (Chinese Embassy in Cambodia 2018). The embassy encouraged Chinese nationals who planned to come to Cambodia, especially young people, to be vigilant about offers of well-paid jobs as ‘typists’, ‘network technicians’, ‘network customer service’, and ‘network promotion’, regardless of whether these were promoted in online advertisements or introductions by friends or relatives.

…

The day in 2019 when then prime minister Hun Sen announced the online gambling ban, 18 August, was a watershed moment for Sihanoukville. No-one was more aware of this than the Chinese nationals in Cambodia, who began to refer to the event simply as ‘818’—a supposedly auspicious number transformed into a symbol of doom. If up to that point the city’s economy was soaring, afterwards the edifice showed hints of cracking. Signs began to emerge that many operations had closed and rushed to relocate, dragging with them not only their workforce but also that of ancillary industries. According to some reports, an estimated 10,000 Chinese fled Sihanoukville in the space of a few days after the ban was announced (Inside Asian Gaming 2019). Reports followed of more Chinese leaving the city and Cambodia and, in January 2020, Cambodia’s Immigration Department revealed that about 447,000 Chinese nationals had left the kingdom (Ben 2020). While this is a huge number, there was no breakdown of how many of these departures were residents and how many were short-term visitors. During the same period there were 323,000 inbound Chinese travellers, meaning the net influx of Chinese was down by more than 100,000 people. While it is not possible to isolate any other potential factors that could have caused this drop, it can be assumed that 818 had an impact.

…

Many Chinese developers decided to write off their losses and flee. Having lost faith in the future of the city and worried about the contractual obligations that bound them to pay exaggerated rents even in the face of an economy that was collapsing, many chose to evade their legal obligations and return to China. In so doing, they left behind hundreds of buildings at different stages of completion. On one hand, this spelled the ruin of local landowners, many of whom had sought to capitalise on the gambling-fuelled boom. As one of them complained to a journalist from Voice of Democracy (VoD) in July 2022: ‘I borrowed money to buy land worth more than $200,000 because I thought it was a great opportunity … We could earn $7,500 [per month]—why wouldn’t we dare to pay $2,000 per month [in loan repayments]? The banks were happy to lend money between $200,000 and $300,000’ (Mech 2022b). On the other hand, this caused mayhem among the Chinese and Cambodian workers employed on these sites, many of whom were not notified that their bosses had fled and continued to work for weeks or even months without being paid.

…

I was in Sihanoukville between December 2019 and January 2020, right before the pandemic hit, and encountered several of these workers. While by that time many Cambodian workers had already returned to their homes in the provinces, having received the back salaries they were owed—which were much lower than those of their Chinese colleagues—or having given up on being paid at all, many of their Chinese counterparts were still stuck in the city. Many were living in conditions of destitution in the half-finished construction sites, unable to go home either because they did not have the money or because they were still clinging to the hope of retrieving the often-significant amounts they were owed. As I recounted at length elsewhere (Franceschini 2020), this was a heartbreaking experience.

…

Although the online gambling ban had clear immediate impacts, paradoxically, this marked a point when awareness of the scale of the online industries and their associated crimes really came to the fore. Scam operations had existed for years in the city, discreetly hosted within the same operations that were home to ostensibly more legitimate gambling activities. As news emerged of the hardships occurring in Sihanoukville, it became clear that business was still booming in many of the larger hotel and casino-based online scam operations, and in the major compounds that proliferated across the city. Many companies providing real online gambling services (rather than rigged games or scams) likely left, and recently arrived scam operators and smaller players with less well-established connections probably got cold feet. However, at the same time, the compounds became increasingly secretive, and failing casinos converted premises to provide more space for online operations. In both cases, security increased and the movement of workers in and out became tightly restricted.

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by | 20 March 2025 · 3:05 am

Pacific Trade Growth in 1849

From The Chinese Question: The Gold Rushes and  Global Politics, by Mae Ngai (W. W. Norton, 2021), Kindle pp. 23-25:

Even as the forty-niners poured in from the eastern United States, California’s Pacific connections grew. Who would feed and provision the masses of gold seekers? There were entrepreneurs among the forty-niners, like Robert LeMott, who quickly sold a stock of pants and nails he had brought from Pennsylvania. But emigrants from the East could bring only small amounts of goods with them, and there was little farming in California to support the forty-niners, least of all in the hills. Most American merchants who sold provisions and amenities during the gold rush dealt in imported goods—dried fish and beef jerky, canvas and clothing, tools, lumber, candles, coffee, livestock, and even prefabricated houses—from Honolulu, Valparaiso, and Oregon; from Hong Kong and Sydney. LeMott, who speculated broadly, invested in clothing, especially that which was “heavy, well made, and of dark colors.” He wrote that merchants were making a 50 percent profit on everything they sold. Or more: in 1851 over 300,000 barrels of foreign flour—mostly from Chile—entered San Francisco, selling at an average price of thirteen dollars per barrel, compared to one dollar a barrel in New England.

The schooner Julia exemplified the changing Pacific trade of the era. She was a prize ship seized during the Mexican war, bought at auction by an American in December 1847 and registered in Honolulu. A decline in the number of Pacific whaling ships calling at Hawaiian ports had created an economic slump there in the spring of 1848, but the gold rush opened new opportunities, according to the Polynesian, for “an immense market for our products.” From June to October 1848, nearly thirty ships left Honolulu for San Francisco, carrying all manner of goods and provisions. The Julia’s voyage that summer commanded payments of $30,000 for cargo shipped by the Honolulu firm of Skinner and Company, which chartered the ship, and hefty sums from consignees, including $50,000 for Starkey Janion and Company and $6,700 for the Hudson’s Bay Company—all paid in gold. Soon the Julia would add a Honolulu-Guangzhou leg to her journeys across the Pacific.

The Julia’s transpacific travels linked Old and New World trade by connecting California to a longer history of British and American interests in China. The Hudson’s Bay agent in San Francisco who sent the gold sample to Hong Kong for advice on its quality knew it was much faster to get from San Francisco to Hong Kong than to London. The San Francisco-Honolulu-Hong Kong connection also was one of the main ways that people in both Hong Kong and California received news about each other. Just as the Hong Kong paper Friend of China reprinted news from California that was reported in the Honolulu Polynesian, the San Francisco newspaper the Californian reprinted news from the Friend of China, which traveled via Honolulu.

The gold rush dramatically changed the nature of the U.S.-China trade. Yankee merchants in Guangzhou and Hong Kong, anchored in the traditional U.S.-China trade to Boston and New York via the Indian and Atlantic Oceans, had already begun to establish transpacific routes in the 1830s and ’40s. They linked China to Hawaii and then to California, which was less a final destination than a transshipment point for goods headed to Acapulco, Valparaiso, or, via the Horn, New York. The gold rush represented a new opportunity for merchants in Hong Kong—both Euro-Americans and Chinese—to export diverse goods to California.

Hong Kong was a British colony and a free port—that is, imported goods from one place could be unloaded and reloaded for export to another place without payment of customs duty—and as such it quickly became the premier Asian entrepôt for both goods and emigrants headed for the gold mountains. For the year 1849 alone, twenty-three vessels exported nearly five thousand tons of goods from Hong Kong to San Francisco, including sugar, rice, and tea; beer, coffee, cigars, and chocolate; hats and clothing; furniture and canvas; tools and implements; timber logs and planks, window frames, bricks, and marble slabs. In 1849 Chinese imported and erected some 75 to 100 buildings, modular designs of premade frames and constructed with interlocking camphor wood panels. Most of these were built in San Francisco—including John Frémont’s home—but some were erected in the interior. One such “Chinese house” built in Double Springs, Calaveras County, was used as the county courthouse, then as the post office, and later as a chicken coop. In the early 1850s, Hong Kong merchants shipped thousands of blocks of granite, along with Chinese workers, for building the homes and businesses of San Francisco’s new elites.

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Filed under Australia, China, economics, Hawai'i, industry, labor, migration, Pacific, publishing, U.S.

by | 18 March 2025 · 6:25 am

Chinese Gold Rush Destinations

From The Chinese Question: The Gold Rushes and  Global Politics, by Mae Ngai (W. W. Norton, 2021), Kindle pp. 14-15:

GOLD MINING IS famously risky, with high stakes, often compared to gambling. Driven by the desire for wealth, gold seekers took great risks that were explainable only by the potential for reward. Gold fever drove daring, hard work, technological invention, and political experimentation, as well as violence against humans and against the environment. The cold calculus of business, banking, and geopolitical interests harnessed gold fever for profit and advantage. For companies and nation-states, the desire for gold led to enormous expenditures of capital for digging and operating deeper and deeper mines. But the deeper the ore, the scarcer it was and the lower its grade, such that more and more rock had to be excavated for smaller and smaller yields of the precious metal. In the Witwatersrand gold mines in South Africa, for example, in 1905 it took on average 2.3 tons of ore to yield one ounce of gold worth $20.67. Hence the relentless drive for cheap labor in order to make gold mining payable.

Thus, at the turn of the twentieth century, South Africa recruited sixty thousand indentured Chinese mine laborers to work in highly capitalized and industrialized, deep underground mines. Their indenture marked an important difference in experience from that of the independent prospectors who went to North America and Australasia. But there were also broad similarities in the patterns of Chinese workers’ culture and resistance. This book tracks the migration of Chinese gold seekers to California, to the Australian colony of Victoria, and to the deep mines of the Witwatersrand. It considers how their experience and reception contributed to the evolution of their identity as “Chinese,” to China’s identity as a nation, and to their identification in the West as a global racial danger.

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by | 15 March 2025 · 8:17 am

Inspecting Ust Kara Mines, 1885

From Into Siberia: George Kennan’s Epic Journey Through the Brutal, Frozen Heart of Russia, by Gregory J. Wallance (St. Martin’s Press, 2023), Kindle pp. 166-169:

Greek mining engineers advised Peter the Great in the late seventeenth century that mineral wealth lay underground in the regions east of Lake Baikal. Hard labor convicts were soon digging down to the silver veins in the vicinity of Nerchinsk. Gold mining began later near the Kara River, a name derived from a Tatar word meaning “black.” The Nerchinsk Mining Region, as it became known, eventually stretched over thousands of square miles from the eastern shore of Lake Baikal to the Chinese border.

In late October 1885 Kennan and Frost rode their horses through the valley of the Kara River to the prison complex at Ust Kara, or Kara mouth, the first of the prisons, convict settlements, and open placer gold mines stretching twenty miles up the valley. In addition to Ust Kara, there were the Lower Prison, the Political Prison, the Lower Diggings, Middle Kara and Upper Kara convict settlements, and the Upper Prison. Their total exile population was around twenty-five hundred, of whom two-thirds were hard-labor convicts and the rest women and children who had accompanied their husbands and fathers to the mines. Many of the political convicts in Eastern Siberia were held at Kara.

…

Kennan and Frost went directly to the prison commandant’s residence where they were greeted by Maj. Potuloff, who was in charge of Kara’s common-law convict prisons. Potuloff, a tall, cordial man in his fifties with a bushy beard and soldierly bearing, explained that he had been alerted by telegram to expect Kennan and Frost, but he never thought that the two would make it through from Stretinsk at this time of the year. He laughed when Kennan inquired where they could find a place to stay for the night. Other than the accommodations for criminals, he explained, the only place to stay was in his home, which they were welcome to do. Kennan and Frost had no alternative than to accept his offer “and in minutes [we] were comfortably quartered in a large, well-furnished house, where our eyes were gladdened by the sight of such unfamiliar luxuries as long mirrors, big soft rugs, easy-chairs, and a piano.”

They found themselves effectively under twenty-four-hour surveillance in Maj. Potuloff’s home. He never left them alone, in fact, he seemed to have relinquished his official duties during Kennan and Frost’s stay in order to keep an eye on them. Once, when Kennan moved in the direction of his overcoat, Maj. Potuloff asked, “Where are you going?”

“Out for exercise.”

“Wait a minute and I will go with you.” Kennan’s bedroom, which was on the ground floor across the front hall from the sitting room, had no door but only a thin curtain. The sentries posted night and day outside the house could even look in his bedroom through its curtainless windows.

Under Maj. Potuloff’s watchful eye, Kennan inspected prisons that were the now-familiar “perfect hell[s] of misery,” from the impossible overcrowding to the filth and vermin to the lack of any bedding for the inmates. “Civilized human beings put straw even into the kennels of their dogs.” But no matter how many Siberian prisons Kennan inspected, he always marveled at the unendurable smell. His descriptions of prison odors steadily grew more vivid and literary the farther east he went. Of the air in the Ust Kara prison, which Maj. Potuloff readily acknowledged was repulsive, Kennan later wrote, “I can ask you to imagine cellar air, every atom of which has been half a dozen times through human lungs and is heavy with carbonic acid; to imagine that air still further vitiated by foul, pungent, slightly ammoniacal exhalations from long unwashed human bodies; to imagine that it has a suggestion of damp, decaying wood and more than a suggestion of human excrement—and still you will have no adequate idea of it.”

During Kennan’s prison inspections, convicts complained to Maj. Potuloff and even approached Kennan on the assumption that “I must be an inspector sent to Kara to investigate the prison management.” Several convicts pleaded with Maj. Potuloff that they had been imprisoned for months but still did not know what they were charged with. Another insisted that he had already finished his sentence. One man explained that he had gotten drunk on the exile march and exchanged names with another convict and ended up at Kara serving a hard labor sentence when, had he kept his name, he only would have been sent to a settlement as a forced colonist.

Bartering names for food, drink, or clothing was a common practice among the exiled convicts and not easily detected since the convoy and prison guards could hardly familiarize themselves with the faces of hundreds of convicts. The exchange, which the artels ruthlessly enforced, invariably improved one barterer’s position to the distinct disadvantage of some hapless exile who had spent his money or gambled away his clothing, and thereby gotten himself, as Kennan explained, “into such a condition that for five or ten rubles and a bottle of vodka he will sell his very soul.” Maj. Potuloff ignored the convicts and their complaints.

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by | 10 March 2025 · 3:12 am

First Transatlantic Telegraph Cable

From Into Siberia: George Kennan’s Epic Journey Through the Brutal, Frozen Heart of Russia, by Gregory J. Wallance (St. Martin’s Press, 2023), Kindle pp. 52-54:

The failure in 1865 to lay the Atlantic cable hardly deterred the directors of the Atlantic Telegraph Company. With the bitter learning experience of the earlier failed attempts, the engineers improved both the cable’s design and manufacture and made modifications to the gargantuan cable-laying ship, the Great Eastern, which sailed on June 30, 1866, from the Thames Estuary. Day after day, for the most part in calm waters, the Great Eastern steamed west, steadily paying out its cable. The ship anchored in late July in Trinity Bay, Newfoundland, in sight of the wildly cheering inhabitants of the flag-draped hamlet of Heart’s Content. The Great Eastern trailed two thousand miles of undersea cable, which was spliced into undersea lines that ran to mainland Canada. “All well. Thank God, the cable is laid and is in perfect working order,” went the telegraphed message from Heart’s Content, which set off worldwide celebrations.

With the benefit of hindsight, some newspapers criticized Western Union for spending millions of dollars based on the “mere conviction” that the Atlantic cable would never be successfully laid. For a time the Western Union directors insisted publicly that they would not abandon the overland route through Siberia, but they had every incentive to do just that. The month before the Great Eastern reached Heart’s Content, Western Union had hedged its investment in the Russian-American telegraph line by merging with the American Telegraph Company, one of the backers of the Atlantic cable. If the cable was successfully laid, Western Union would receive a share of the profits. In effect, Western Union had put down a bet against its own men in the Siberian wilderness.

Almost as an afterthought, Western Union dispatched a company ship to Siberia, the Onward, which arrived off Gizhiga on July 15, 1867. “We have come up to carry all the employees home,” said the captain. Kennan found it heartbreaking to close a project to which he had devoted nearly three years of his life and endured all possible hardships, but his thoughts were also of home. Maj. Abaza went by an overland route to St. Petersburg, where he hoped to persuade the Russian government to complete the line through Siberia. Kennan spent August cruising along the Siberian coast aboard the Onward to gather up the telegraph line working parties. In September the Onward put in at Okhotsk, where a letter from Maj. Abaza directed Kennan to come to St. Petersburg. The Onward, with almost all the American telegraph workers on board, prepared to sail to San Francisco. On the day of the Onward’s sailing, Kennan and Dodd were both on the edge of tears. “He could only wring my hand in silence.”

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by | 9 March 2025 · 4:51 am

U.S. Military Telegraph Corps, 1860s

From Into Siberia: George Kennan’s Epic Journey Through the Brutal, Frozen Heart of Russia, by Gregory J. Wallance (St. Martin’s Press, 2023), Kindle pp. 35-37:

Kennan never attended college because the Rebellion, as it was called in Norwalk [Ohio], broke out in 1861 and “turned all my thoughts, hopes and ambitions into a new channel.”

He was elated by the martial electricity in the air. “Patriotic by inheritance and training, and naturally adventurous, I was completely carried away by a desire to take part in the momentous struggle.” But he was too young to enlist without his father’s permission, which John Kennan was unwilling to give. He could only watch as friends joined the 55th Ohio Regiment, which mustered out in Norwalk in the early days of the war. In a festive atmosphere the ladies of Norwalk offered coffee, pies, and sweet cakes to the young soldiers of the 55th in their light blue trousers, dark blue jackets, and forage caps. Trains left Norwalk taking boys, who not long ago had been playing two-old-cat, to be cut down on battlefields from Second Bull Run to the Carolinas campaign.

Still anxious to prove his courage, George Kennan sought the equally dangerous position as a field operator in the newly formed United States Military Telegraph Corps. Despite the word “Military,” the Corps was a civilian unit whose superintendent reported to the secretary of war. By the end of the war, the Corps had built fifteen thousand miles of telegraph lines and transmitted over six million telegraph messages, which gave the Union a significant communications advantage over the Confederacy with its more limited telegraphic resources. President Lincoln was among the first to grasp the capacity of the telegraph to give him command and control from Washington over his forces in the field, a power no political leader had previously possessed without being on the battlefield.

Throughout the war Lincoln haunted the War Department’s telegraph office. He personally sent nearly one thousand telegrams to his commanders, some asking about troop dispositions in ongoing battles. “What became of our forces which held the bridge till twenty minutes ago, as you say?” Lincoln telegraphed during one battle. The incoming telegrams filled the telegraph office with blood and gore. “The wounded & killed is immense,” a field operator telegraphed to the War Department, where Lincoln paced anxiously during the Battle of Fredericksburg in 1862. “The battle rages furiously. Can hardly hear my instrument.”

From the War Department a vast network of telegraph wires stretched to every theatre of the war and onto battlefields. Before a battle, field operators weighed down with telegraphs, relays, and sounders; mules loaded with rolls of telegraph wire; and covered wagons crammed with nitric acid batteries, moved into position. They set up their instruments on hard-tack boxes beneath tent flys, and in just hours men had strung five or six miles of wire along poles, fence posts and tree branches, and sometimes over rivers to connect brigades or divisions with the commanding generals. A field operator once held the ends of a severed wire together in his bare hands and read a transmission from his tongue, which felt the shocks of the incoming dots and dashes.

Field operators were shot, blown up by artillery shells, and, when captured by Confederates, at risk of being executed as spies since they wore no military uniforms. Kennan could not entirely convince himself that he had the courage to be a field operator, but his doubts only made him more anxious to put his nerve to a supreme test. “Had I not camped out many a night—or at least many a morning—in the Big Woods?” he asked himself. “And was I not quite as familiar with firearms as most of the volunteers who were then going to the front?” He wrote Anson Stager, the superintendent of the Military Telegraph Corps, whom Kennan had met before the war when Stager was a senior Western Union official, asking to join as a field operator. Stager was too busy to respond and instead Kennan received a letter from another official advising him to defer joining the Corps and “wait and see what would happen.”

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by | 8 March 2025 · 6:07 am

Railroad Telegraph Duties, 1860s

From Into Siberia: George Kennan’s Epic Journey Through the Brutal, Frozen Heart of Russia, by Gregory J. Wallance (St. Martin’s Press, 2023), Kindle pp. 34-35:

He became a messenger-boy and trainee in a railroad company telegraph depot in Norwalk [Ohio], working in a different office than his father’s. He was promoted to the position of telegraph operator and manager at a salary of twenty-five dollars a month. In nineteenth-century America, children did menial and exhausting work in factories, farms, textile mills, and mines. Industrialists regarded the ideal machine as one so simple that a child could operate it. It was rare to give a young boy like George Kennan a serious responsibility like the signaling of trains.

As a train came through Norwalk, small boys peered through the depot’s windows to watch Kennan busily work his instrument to alert a central dispatcher of the train’s passing. The dispatcher then sent orders to the telegraph depot ahead of the train to give to its engineer: speed up, slow down (to arrive on schedule), halt at a siding, or make an unscheduled stop to pick up freight or passengers. At the depot ahead, a hapless employee went out to the side of the tracks and held out a five-foot pole with a large wire hoop, to which the dispatcher’s written order was attached. As the steam-whistling, smoke-belching train barreled toward the “hooper,” the brakeman reached down and, unless the hooper flinched, grabbed the wire hoop.

Initially Kennan functioned in a state of panic. “The excitement and responsibility of taking and transmitting orders upon which depended the safety of trains and passengers were a severe trial, at first, to my inexperienced nerves.” But he made no serious mistakes and “gradually acquired self-confidence, as the routine of railroad business became familiar to me.” Once he set up a field telegraph office at the scene of a train wreck, and on one local election night he helped his father receive the telegraphed tallies and announce them to an excited gathering.

American Morse Code (also called Railroad Morse or land-line Morse) in those days differed from current International Morse Code, which latter is better adapted for transmission through undersea cables.

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by | 12 February 2025 · 11:13 pm

GDR Illusions in 1989

From From Peoples into Nations: A History of Eastern Europe, by John Connelly (Princeton University Press, 2020), Kindle pp. 704-705:

Gorbachev was not alone in admiring the apparent East German economic strength. In 1987, Western economists, looking primarily at numerical data, placed East Germany ahead of the United Kingdom in per capita income, a major index of development. As late as 1988, even sober Western newspapers were describing the GDR as a powerhouse. Its deep debt, similar to that of other countries (in per capita terms) was known but was not considered an impediment to growth and continued “success.” The times when East Germany’s economy was lame were “long past,” wrote journalist Peter Merseburger in 1987. He imagined the GDR lasting far into the unspecified future, thriving as a state that had solved the problem of unemployment and social insecurity, and he praised it for low rents, ignoring the fact that they reflected low investment in housing. The data existed to draw more sobering conclusions, but few did so. The GDR was so much wealthier than Poland that no one believed it, too, might have deep problems. Per capita East German gross national product was 40 percent higher than that of the Soviet Union.

The success of the GDR’s economy was an illusion. The state carried an unsustainable debt and tore down centuries-old buildings in world-class architectural gems (like Greifswald, Weimar, and Brandenburg), because it was too poor renovate them. The GDR could not compete even in areas where the state made its heaviest investments, like microelectronic technology, a major focus from the late 1970s. By September 1988, some 250,000 workers at seventeen Kombinate and 14 billion marks of investment had yielded the production of the GDR’s own 1-megabyte microchip, much celebrated in the party press, but already years behind the standard in the West. Toshiba had been mass-producing a 1-megabyte chip for two years at that point and was at work on a 4-megabyte chip.

The relatively high living standards were made possible by fortuitous circumstances: a strong preexisting industrial base; heavy investments in the 1950s; rational organizational reforms in the 1970s and 1980s (Kombinate); and the fact that West Germany considered the GDR a part of united Germany and gave it full access to the markets of the European Union, as well as several massive loans. Still, East Germany’s leaders felt that no reform was needed. Kurt Hager, East German ideology chief, said his land did not need Gorbachev’s plans for greater openness and restructuring. Simply because your neighbor puts up new wallpaper does not mean that you should do the same. The GDR leader Erich Honecker even mocked Gorbachev. “The young man has been making policy for only a year, and already he wants to take on more than he can chew.”

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