Director Nian's first reaction after hearing this was four words.

"To seek help from a tiger for its skin."

She said it very bluntly.

"Let's not be blinded by the immediate benefits."

That bastard Reagan, what's the value of the promises he made to the President of the United States? He can be lenient with the COCOM regulations today, but he can be strict with them tomorrow.

The rules have always been there, unchanged; he can loosen them or tighten them at will. You might get something today because he's lenient, but the day he turns his back or someone else takes over, that wall will be built back up again in no time! How can you stake your life on something so easily changeable?

Slava listened as she continued.

"Let's talk about joining the international patent system." Director Nian thought for a moment, "This is what Reagan really wanted to take from the Soviet Union. I advise you not to even think about it."

As foreign minister, she frequently negotiates with other countries, and her understanding of this patent issue is deeper than that of Slava.

The Soviet Union never used the Western system of "patents." Instead, it used "inventor certificates"—if someone made an invention, the state would give them honor and a prize, and the ownership of the invention would belong to the state.

This means that the concept of private intellectual property rights simply did not exist in the Soviet Union. Inventions were public property, and any state-owned enterprise could use them. This logic conflicts with the Western concept of the sanctity and inviolability of patents.

The Soviet Union acceded to the Paris Convention in 1965, theoretically recognizing the validity of foreign patents within the Soviet Union. However, in reality, this was largely one-way—the Soviet Union occasionally needed to protect a few commercially valuable items in the West, while Western patents were practically worthless in the Soviet Union!

Without an independent judiciary, without private enterprises, and without market competition, the concept of infringement had no place in a planned economy. As for the more binding core mechanism of the Patent Cooperation Treaty, the Soviet Union never even joined it.

So even if the Soviet Union stole Western data and used it for production, so what? What could the United States do about it? Sue Soviet state-owned enterprises in US courts? The Soviet Union enjoyed sovereign immunity.

Sue them in a Soviet court? The Soviet Union's intellectual property enforcement mechanism was practically non-existent.

Complaining to the General Agreement on Tariffs and Trade (the predecessor to the WTO)? The Soviet Union was not a member state. During the Cold War, the Soviet bloc was outside the Western-dominated international economic and trade legal system, which had no jurisdiction over it whatsoever!

What the United States can really do is compete in third-party markets. If the Soviet Union exported goods to the Middle East and Africa, the United States could wage price wars, provide bundled aid, and put pressure on importing countries.

But this is a geopolitical game, not a legal rights protection matter. Even if the Soviet Union hadn't stolen American technology, the United States would still be doing this.

The United States could also retaliate by further tightening restrictions on other technology exports to the Soviet Union under the COCOM framework, but this would punish other Soviet industries—instead increasing the scale of Soviet technology theft.

One of the main reasons the Soviet Union chose to steal Western technology was that COCOM's control prevented the Soviet Union from purchasing technology normally, which resulted in a double loss.

"Therefore, the advantages of not aligning with international standards in this regard far outweigh the disadvantages."

"Isn't it faster for the KGB's Science and Technology Intelligence Bureau to systematically acquire technology from the West than for us to beg the Americans to loosen their grip on technology? We have a specific list of technologies to 'acquire' every year—microelectronics, aerospace, materials, chemicals, agriculture—we take everything."

You know better than I how much money this system saved us and how many years we traveled.

When it comes to stealing technology, the only thing that can restrain thieves, barring legal enforcement or financial loss, is morality. Legal enforcement? There is no government above the state; financial loss? We are now in the Cold War era, not the era of globalization, and the Soviet Union, independent of the Western system, is unlikely to be affected.

That depends on the morality of the Soviet leaders.

Unfortunately, both Slava and Director Nian's moral standards are like clay, which can be molded into any shape depending on the situation.

The answer is that the US compensation after World War II was insufficient, and the answer is that the Tsar paid for it when he sold Alaska to the US.

"Back then, the French obtained documents about our theft of Western technology from a defector KGB officer, exposing the entire scale of our theft system. That bastard Mitterrand even personally handed the intelligence over to Reagan. How did the West respond?"

The director said, "They didn't sanction us. Their choice was to tighten export controls in COCOM. You should notice this difference—they used pre-emptive controls from beginning to end, keeping the technology out; rather than pursuing accountability afterward, because once the technology is out, it can't be brought back."

Take Argentina, for example. Monsanto and other American companies' genetically modified soybeans spread all over the world, and Argentina planted a large area of ​​unauthorized genetically modified soybeans and exported them on a large scale.

Monsanto has been trying to seize Argentine soybean shipments at European ports for years, but the results have been very limited.

Argentina is at least a market economy country that nominally respects intellectual property rights. But if it were the Soviet Union, which completely ignored the United States, and dared to seize ships and cargo, the Soviet Union would actually send warships. The European bastards could only tremble between the two superpowers.

“This is our biggest advantage right now,” Director Nian said. “We’re outside the system; if we steal or take something, they can only watch helplessly. But if you plunge headlong into international patent organizations for this short-term benefit of Reagan’s actions—you might reap a short-term windfall, but from then on, you’ll be tied down by the American system. If you want to take their technology, you have to pay, get licenses, and abide by their rules, understand?”

Slava listened very attentively.

"So my suggestion is to agree symbolically."

"Symbolic?"

"If Reagan wants a gesture, then give him a gesture!"

They verbally express their willingness to study and gradually align, signing a perfunctory letter of intent. After all, Reagan's promises are only valid during his term.

He'll be out of a job next January, and all the promises he's making today will be worthless after his term ends! Why should we waste our hard-earned money on a lame-faced president's last words?

Slava nodded, but his mind had already turned to something else.

"Okay, we'll do as you say regarding the patent, just give a token agreement and let it slide."

But boss, I'm thinking, since the US wants our help so much, could we take this opportunity to ask for a little more?

Director Nian looked at him.

"The terms Reagan offered—such as loosening of technology, cancellation of patents, and South Africa—were all good things, but they were things he could afford to give and could take back at any time."

Slava said, "I want something he can't give so easily, something that will be more long-term for us."

"what?"

“The market,” Slava said. “I want the United States to allow some Soviet companies to enter the markets of America’s core allies.”

Director Nian looked at Slava with great interest: "Which ally?"

"Japan."

Slava said confidently, "Boss, the US will definitely take action against Japan next, and it will definitely make a killing on Japan. We can certainly seize Japanese overseas assets after the Japanese bubble bursts, but can't we earn even more now?"

We don't have much power to interfere in Japan's domestic affairs. When the US takes over Japan, they can't possibly take all the spoils from the Japanese mainland, can they? Besides, we can sow discord in Japanese internal politics and plant our own seeds.

Director Nian stared at Slava for a while and said, "You have quite an appetite."

But she didn't object. Because Slava's idea was far more lucrative than simply helping the US stabilize its economy in exchange for some technology. This wasn't free help; it was opportunistic exploitation, taking a bite out of the Soviet Union from one of America's own allies.

“This matter requires the approval of the Politburo; I’ll handle this,” Director Nian said.

“The meeting will be held tomorrow,” Slava said.

Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.

The following day, the Politburo held a meeting chaired by Rigachev. Slava first presented the price Reagan had set.

The Politburo members reacted remarkably in unison after hearing this—they were unmoved.

The logic is simple. It wasn't the Soviet Union that was in a hurry; it was the United States whose economy had collapsed, Reagan who was crippled, and the United States that was begging the Soviet Union for help.

Since the initiative was in their own hands, the Soviet Union was not worried at all about what they were given. They could take it or leave it.

Some even said that if he cools down, he'll get anxious and raise the price even more.

What truly energized the assembled committee members was the second thing Slava brought up.

“Comrades,” Slava said, “I have another bold idea.”

He explained to Director Nian his plan to join forces with the United States to seize Japan and plunder its assets.

The atmosphere in the meeting room changed instantly. Compared to cleaning up someone else's mess by helping the US stabilize its economy, the prospect of taking over Japan was far more tempting to everyone present.

What is Japan? Japan is a member of the US camp and the second largest economy in the Western world. Now that the US is taking action against this second largest economy in its own camp, this is itself an internal conflict within the capitalist camp.

As the leader of socialism, the Soviet Union not only didn't need to mediate the conflict, but could also take advantage of this internal strife to get a share of the spoils and cut into the hands of America's allies!

This deal is too good to pass up. With two capitalist countries fighting each other, the Soviet Union can still get in and profit from the chaos—the Politburo members think it's a dream come true.

“I agree,” Ryzhkov said.

“I have no objection.” The veteran Gromyko, as always, supported his good student, Director Nian’s, suggestion. “The American camp is fighting like dogs; why not add fuel to the fire and get a piece of the pie?”

The Politburo quickly reached a consensus: Reagan's demands should be dealt with coldly and symbolically; while the matter of taking over Japan should be discussed with all its might, and if it is to be discussed, it should be discussed on a large scale, preferably by making a big move against Japan.

That same afternoon, after reaching a consensus, Slava went to meet with Reagan.

Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.

When Slava met Reagan, he first made an excuse to politely decline the price Reagan had offered the day before.

He spoke very politely—the Politburo had discussed it and felt that matters such as technological cooperation and patents were of great importance, and the Soviet Union needed more time to study them, so it was not convenient to make a hasty agreement at the moment.

Reagan was a seasoned veteran; a cunning fox who had been playing games with you for years. He immediately understood Slava's diplomatic rhetoric—the offers he had made the day before weren't enough.

Reagan paused for a moment, then offered a new proposal.

"Mr. General Secretary, let me put it another way. If the Soviet Union is willing to help the United States stabilize the dollar—then the United States can invite the Soviet Union to join in reaping the benefits from Japan."

Slava held his tea without making a sound; this was exactly what he was waiting for.

In 1988, Japan was in the midst of a crazy bubble economy.

Three years ago, the Plaza Accord of 1985 forced the yen to appreciate sharply—the yen rose from 250 yen to 120 against the dollar. But instead of reducing Japan's trade surplus as the US had hoped, this appreciation plunged Japan into an asset bubble.

The Bank of Japan drastically cut interest rates to offset the pressure on exports caused by the appreciation of the currency. As soon as the low interest rates were released, the stock market and real estate market went crazy.

By 1988, the bubble was inflating rapidly—land prices in Tokyo had risen to an absurd level, with the land beneath the Imperial Palace alone worth more than the entire state of California, and the land value of Tokyo alone enough to buy the entire United States!

The United States, embroiled in the Great Depression, was seething with anger and searching the world for a scapegoat. Japan in 1988 was precisely the most readily available and conspicuous target. There was already a strong anti-Japanese sentiment within the US, and Trump's national address claiming "Japan has bought up America" ​​further fueled public outrage. Those within the US whose base was affected by the Great Depression were eager to immediately take action and eliminate Japan.

The problem now is that the Great Depression weakened America's leverage, and it wants to take advantage of Japan, but it has fewer bargaining chips than before.

That's why it wanted to involve the Soviet Union.

The Soviet Union could exert pressure on Japan regarding resources. Japan is a country with extremely scarce resources, relying almost entirely on imports for oil, natural gas, and metal ores. The Soviet Union, on the other hand, was Japan's neighbor, holding everything Japan needed—Siberian oil and natural gas, and Far Eastern timber and fisheries.

If the Soviet Union had tightened its resource exports to Japan while the United States was putting pressure on it, or conversely used resources as bait to force Japan to make concessions, these would have been real bargaining chips.

There are also territorial disputes. The Northern Territories are an intractable thorn in the side of Japan-Soviet relations. The Soviet Union can use the territorial issue to restrain Japan: if you cooperate economically, I can be more "flexible" in territorial negotiations; if you side with the United States against me, this thorn will never be removed.

The third factor is the financial market. The Soviet Union had accumulated a certain amount of foreign exchange reserves. Before the Great Depression, the Soviet Union had sold off most of its US Treasury bonds, converting the rest into Japanese yen. Now, the Soviet Union could cooperate with the United States to short the yen and Japanese government bonds. Although the Soviet Union's foreign exchange reserves had certainly been significantly depleted due to the billions of dollars withdrawn for domestic construction, the very signal of the Soviet Union joining forces with the United States in the financial market was enough to shake the world.

With the Soviet Union as a bargaining chip, it became much easier for the United States to take over Japan.

“Mr. General Secretary,” Reagan put it more bluntly, “there is a consensus within the United States, both among the top Republicans and Democrats, on the matter of taking over Japan.”

Slava raised an eyebrow.

"The Democratic nominee for the next election will also be an America First advocate. Dick Gephart will most likely become the next president. Both parties are of one mind on dealing with Japan."

He turned to the side to make a gesture.

"Among the team I brought this time is a senator sent by a high-ranking Democratic official. He can represent the Democratic Party."

The senator stepped forward. Slava looked up and saw that it was Larry McDonald!

Larry McDonald, a Democrat, was a staunch anti-communist. In the original timeline, he should have been killed in 1983 when Korean Air Flight 007 was shot down by a Soviet fighter jet, but in this timeline, the Soviet Union exercised restraint, allowing him to survive.

The Democratic Party sent this person to the Soviet Union to talk to him, which shows that the United States is really sincere this time.

In dealing with Japan, the United States' anti-communist ideology has long been suppressed by the "America First" principle.

McDonald didn't exchange many pleasantries; he brought with him a series of plans for the partition of Japan. According to these plans, the Soviet Union could take Japan's overseas assets in Southeast Asia and other regions.

Slava shook his head after reading it: "Not enough."

The atmosphere in the meeting room tensed up for a moment.

"I want your overseas assets in Asia, but overseas assets alone are not enough. If you want the Soviet Union to cooperate, the United States will have to make another concession—allowing Soviet companies to enter the Japanese market."

The Americans' attitude changed. This demand was far more drastic than taking away Japan's overseas assets. Allowing the Soviet Union access to the Japanese domestic market was tantamount to opening a breach in America's most important ally, allowing the Soviet Union to extend its reach into Japan.

Several American officials immediately argued with Slava. Slava wouldn't give in; what he wanted was this bridgehead—with it, once the bubble economy burst in Japan, the Soviet Union could not only seize its overseas assets but also use the opportunity to interfere in Japan's domestic affairs.

The long-term value of this move far outweighs any technology or patent, and he refused to budge.

After much debate, the US side finally agreed to Slava's offer.

People have to bow their heads under the roof.

Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.

On May 25, Reagan returned to Washington after concluding his visit to the Soviet Union.

Immediately afterwards, the Soviet Union announced that it would use its oil foreign exchange reserves to exchange for US dollars to buy US Treasury bonds, thus lending a helping hand to the US government's financing and helping the dollar, which was fluctuating, to stabilize.

In addition, the Soviet Union announced a series of economic measures to strengthen economic cooperation with the United States.

This immediately caused an international uproar.

The Cold War lasted for decades. The US and the Soviet Union talked about arms control and regional conflicts, but this was the first time they stood together on financial issues!

It's like the sun has risen in the west.

Newspapers, politicians, and bankers worldwide were stunned. How could these two superpowers, who had been at odds for decades and wished each other dead, suddenly collude in finance? What kind of deal was behind this?

Is the Cold War coming to an end?

The Cold War may end, but it is unlikely that the Cold War will end.

So everyone was thinking: these two giants are joining forces for the first time, they must be teaming up to deal with someone!

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like