NATIONALISTS FAIL TO HINDER RUNNERS

Press, Volume LXXXV, Issue 25996, 27 December 1949, Page 4

NATIONALISTS FAIL TO HINDER RUNNERS

HONG KONG BLOCKADE

[By

a Special Correspondent in Hong Kong of the "Sydney Morning Herald"]

(Reprinted by Arrangement)

On September 10, the Panamanian ship, s.s. NowrooZ, sent a hurried message to Royal Navy headquarters, Far East Station, Hong Kong. The message read: “Nationalist destroyer, point-blank range, bombarding 5000ton merchant vessel.” Fifteen minutes later, the master sent another message: "Merchant vessel *6s’ cn fire; sinking fast. No survivors.” More than 40 officers and men on the unidentified vessel lost their lives while attempting to enter Taku Bar, main trading point to Communist-held Tientsin. A few days later in Hong Kong, a British merchantman which had made three trips to Communist ports in North China, the s.s. Chak Sang, lit up the harbour of Hong Kong in a resounding explosion. Fourteen men were killed as thousands of pounds of the Chak Sang’s chemical cargo exploded. A Marine Court finally decided the ship had been sabotaged, but they aid not know by whom. , _ , On November 17, in the South China port of Swatow, Nationalist 825 bombers attacked two British ships, the s.s. Sing Hing and the s.s. Cloverlock, while they were smuggled up to Swatow’s quays unloading cargoes. Two officers on the Cloverlock were killed, and the Sing Hing went into dry dock after she returned to Hong Kong. Daily Incidents Such incidents have been daily occurrences in China since June 26, 1949. On that day, the rapidly falling Nationalist Government declared all Communist-held ports blockaded. To enforce this decision, the Nationalists immediately dispatched their 11 American-type destroyers and nine destroyer escorts to roam inside territorial waters and stop all ships from taking supplies to the Chinese Communists. Yet. since June 26. in spite of very real dangers, more than 180 merchant ships have reported trading with the Communists, and probably twice as many have secretly traded in North China. What is behind this sudden rush of foreign shipping companies and foreign crews to trade with the Chinese Communists? . Why have charterers been bidding against each other for ships £p take steel bars, rubber tyres, high-grade petroleum, industrial chemicals, and vital sulfa and penicillin supplies through the Nationalists’ blockade? The answer to both these questions is the same, and very simple. In the Communist-held ports of Tsingtao, Tientsin. Shanghai. Swatow. Chinampo, and Dairen sit Communist government officials with seemingly inexhaustible supplies of United States dollars, ready to pay anyone who_will supply the starved economy of Com-munist-held China.

Reds Pay Well The managing director of one of the oldest shipping firms in Hong Kong, whose ships have consistently broken the blockade, said in Hong Kong recently: ‘’Why do our ships break the blockade? Caustic soda retails in Hong Kong for about 400 dollars a ton; take the caustic soda 800 miles to Shanghai or 1400 miles to Tientsin, and the Communists pay 1700 dollars a ton. Gasoline is 20 cents a gallon in Hong Kong; send the gasoline to the Communists and they pay 1 dollar 75 cents a gallon. I can’t think of a better reason to break the blockade.” The managing director of the Shell Oil Company in Hong Kong (Mr E. E. Hudson) freely admitted that much of their product was being transhipped to the Communists. Mr Hudson added: "It is, however, not the policy of Shell Oil Company to

inquire from paying customers what they intend to do with their purchases They can just as well keep our products in their own backyards, or shin them to Timbuktu for all we care.”

And the Communists apparently agree with this policy, for they have not molested or confiscated any of the nroperty, installations, or stocks of foreign oil companies. Politically, the United States and Britain do not recognise the blockade as legal. However, the American State Department takes a technical stand —that whereas the blockade is not completely effective, it is. under international law, illegal. The Foreign Office in London has declared the blockade illegal, but has also acknowledged the right of Nationalist warshins to stop foreign merchant ships inside territorial waters. Soldiers of Fortune But, rightly or wrongly, no one denies the audacity of the officers and men of the blockade-running ships. These men, as tough and hard hitting as any who ever roamed the seas in pirate ships, are the soldiers of fortune in China to-day. Very often their gains for manning the blockade runners are a flat bonus or an extra month’s salary; yet for every man who deserts his ship after a nerve-shattering trip through the blockade, a half-dozen seamen are waiting in shipping offices, ready to sign on for a 100 dollars bonus. On November 12, the passenger and cargo ship, s.s. Tsinan, was stopped by an arching shot across its bow as it was leaving the Yangtse river. The Chinese commander, whose knowledge of English was limited, signalled: "If you are carrying passengers and/or cargo you must return to original port (Shanghai) to be cleared. Failing this, you must jettison both cargo and passengers into sea; then your vessel allowed to proceed.” ■ The Tsinan captain signalled his reply: "Would like carry out your orders, but no cargo on board, and passengers refuse be dumped overboard. Please advise.” There was no reply. Three days’ later the Tsinan escaped to territorial waters, while a Nationalist warship was playing a high-seas chess match with three other detained merchant vessels, and five more waiting to break intb Shanghai from outside territorial waters. Though the round trip for merchantmen from Hong Kong to Shanghai takes about one week, and a round trip to Tsingtao or Tientsin takes two weeks, more than 80 per cent, of blockade runners trade with Tsingtao and Tientsin. The reason for this is that the Yangtse river entrance to Shanghai can be successfully patrolled with two warships, whereas it would take a fullstrength task force to patrol the expansive entries to Tsingtao and Tientsin. It is difficult to estimate accurately the number of blockade-running ships, but it is certain that at least 150. with a gross tonnage of more than 160.000, are regularly running the blockade, with the prospect of more and more joining in the race. Last November, the World Shipping Conference decided in London to give some bills of lading for Shanghaibound ships—for the first time since the Nationalists declared the blockade.

This means that more shinning companies will be making treble profits, more seamen will be getting bonuses, more diplomatic notes will be filed while ships are being held under duress on the high seas. This also means that the Communists will win their battle for strategic materials, and pay the price with golden American dollars.