Letter to the Politburo of the Central Committee of the RCP(b) Regarding the Agreement with the Consortium of German Firms
To Comrade STALIN, for the Politburo; copy to Comrade KAMENEV.
I have carefully studied the agreement with Otto Wolff. I find that Comrade Kamenev’s objections are entirely based on a misunderstanding, and I believe the matter should be brought before the Politburo for decision without delay—indeed, the disagreement between myself and Kamenev calls for an authoritative, conclusive resolution.
Kamenev writes in his memorandum that we “are obligated to purchase Wolff’s goods.” This is a complete misunderstanding. Upon reading the agreement, I noted in numerous clauses that we retain the right to inspect the list of goods that Wolff presents to us. We assume absolutely no obligation whatsoever to purchase Wolff’s goods. Should Wolff prove unable to compile a list of goods that we agree to purchase, then the agreement will apply only to that portion of Wolff’s goods which we have consented to buy. I clarified this matter in detail today, both with Lezhava and with Frumkin, and both confirmed that not the slightest obligation to purchase Wolff’s goods rests upon us in any way whatsoever.
The same kind of misunderstanding on the part of Comrade Kamenev explains why he claims that Lezhava, as he puts it, “intensified” his doubts. In fact, the proposal put forward by Stomonakov—formulated on page 2 of Protocol No. 62 and unanimously adopted by all our economic officials—is explained quite differently. The proposal consists in prioritizing, in the interests of our reviving industry, Wolff may well expand the delivery of machine tools and other essential equipment—for example, for the Electrical Trust. Wolff is likely to go along with this, because such an order will also yield him a profit, and the German metalworking industry, in general, is in dire need of new orders. For us, machine tools and machinery—such as those required for the Electrical Trust—are absolutely indispensable, since our industry is beginning to revive, and it is of utmost importance that we develop this industry within our own borders, firmly anchoring it with German means of production once and for all.
Consequently, the amendment introduced by Lezhava stems from a correctly understood economic interest of Russia, which now requires protectionist measures—especially for the entire light industry—so that we may more easily restore this industry and thereby safeguard the interests of our proletariat. Lezhava’s amendment has nothing whatsoever to do with free trade or even with the opening of borders, even if customs duties are maintained. Comrade Kamenev writes at the end of his memorandum:
“In short: in exchange for deferring our payments to Wolff for one year on goods unknown to us, we are now granting him a monopoly on the procurement and export of raw materials—cheaply.”
This is a complete misunderstanding. It is impossible to imagine a more favorable agreement than the one we are concluding with Wolff. We pay him 10% annual interest, whereas even England now pays 7%, while the German government itself pays 12%. That is one point. Second, the goods we purchase from him are by no means “unknown”; rather, they have been carefully reviewed by us according to a pre‑approved list and cleared for import. Third, the monopoly on procurement and export that we grant him is tied to a profit-sharing arrangement that has nothing whatsoever to do with customs duties. To be precise: first, we receive a 10% dividend; second, we share in 10% of the profits just as Wolff does; and third, if profits exceed 40%, we take 75% of the remaining surplus, while the consortium receives only 25%.

Letter on the Agreement with the Consortium of German Firms
I believe that the agreement with Wolff represents a typical contract with German capitalist enterprises.
Such an agreement is infinitely advantageous for us, not least because we secure a share of the profits—which could very well reach well over 100%—split evenly between us. In doing so, the interests of our reviving industry, and consequently of our industrial enterprises, are fully protected. Not a trace remains of those ruinous consequences that would have followed even the conditional, even the temporary, opening of our borders. Therefore, I unreservedly insist on the ratification of the agreement with Wolff, and given the extreme urgency of this matter, I request that the question be placed before the Politburo tomorrow. I am attaching herewith the agreement with Wolff and Comrade Kamenev’s memorandum, No. 141.
Chairman of the Council of People’s Commissars
V. Ulyanov (Lenin)
Written on October 18, 1922.

First published here, based on a typewritten copy proofread and signed by V. I. Lenin.