Russian Manganese

The Soviets have continued to invite the investment of American capital in Russia, in much the same way as the fly was invited to walk into the spider's parlor. Oil operator Sinclair went to Russia, saw--and returned again to the U. S. Others have followed suit. No one doubts the splendid natural resources of Russia, but the resourcefulness of the Soviets in commandeering foreign capital has been such that U. S. capitalists have literally become gunshy.

Either W. A. Harriman is braver, more far-sighted, more lucky or more reckless than most, for he has just concluded negotiations with the Soviets for control of the Caucasian manganese ore properties (TIME, June 22, RUSSIA). The Harriman interests have acquired a 20-year grant to operate these mines, and exclusive right to export manganese. The Soviet will receive a royalty on all ore shipped, with the annual minimum figure of $1,500,000.

Manganese is an essential ingredient in steel manufacture. World's annual demand now runs to about 1,750,000 tons of the ore. The Caucasian deposit acquired by Harriman is much the largest known and is estimated to contain about 70,000,000 tons.