On June 4, 1933 Khoja Niyaz concluded Peace Agreement with Sheng Shicai in Jimsar under mediation of newly appointed Soviet Consul-General in Urumchi Garegin Apressof, close associate of Joseph Stalin, and agreed to turn his Uyghur forces against general Ma Chung-ying in exchange for granting control over Southern Xinjiang (Kashgaria or Tarim Basin), which already was lost by Chinese and where bloody struggle for power between different rebel forces was being developed, also over Turpan Basin and Kumul Region, which currently were occupied by Ma Chung-ying forces. All territory south of Tengritagh Mountains was granted the " autonomous status " inside of Xinjiang Province, Chinese promised in Agreement not to cross Tengritagh. Yulbars Khan not followed Khoja Niyaz in this decision and remained to be ally of Ma Chung-ying, who appointed him to be the Chief of Procurement Department of Kuomintang (KMT) 36th Division.