Chinese Occupation and The 1921 Revolution
After Chinese troops under General Xu Shuzheng occupied Mongolia in 1919, Magsarjav was imprisoned in Niislel Khuree in mid-1920 on suspicion of having contacts with resistance groups headed by Sükhbaatar. Manlaibaatar Damdinsüren had died in the same prison after suffering torture at the hands of the Chinese. Magsarjav was freed by Baron Ungern after the latter had liberated Niislel Khüree from Chinese troops in February 1921. From March 1921, Magsarjav served as commander-in-chief of all Mongolian troops under Ungern von Sternberg's puppet government. He assisted Baron Ungern in recruiting Mongolian soldiers and participated in the Baron's operation expelling remaining Chinese troops from Mongolia.
In May 1921, Magsarjav left the capital ostensibly to mobilize troops in Uliastai and western provinces to confront the expected invasion of Mongolian partisans (commanded by Sükhbaatar) and Red Army units. However, in July 1921, Magsarjav joined the Russian Reds and Mongolian revolutionaries with his troops. Later that month, Magsarjav's troops unexpectedly encircled and killed Ungern's Buryats and Russian contingents stationed near Uliastai; their commanders ran but were killed later. At night to July 22, under the pretext of destroying Whites, Uliastai was seized, and a considerable part of Russian settlers and refugees was killed.
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