TRADE WITH CHINA

Press, Volume LXXXIX, Issue 26986, 11 March 1953, Page 9

TRADE WITH CHINA

Effect Of New Agreement (N.Z. Press Association—Copyright) (Rec. 7 p.m.) LONDON, Mar. 9. British-registered ships, with Hong Kong as their home port, will no longer be allowed to carry strategic materials between South-east Asia ports and Communist China under the new system of licensing agreed on by Britain and America in Washington last week, says Reuter’s diplomatic correspondent. It was agreed to license British registered ships plying to China so that they would not load strategic goods at non-British ports. A Foreign Office spokesman said today that he did not think the Washington decision implied an extension of the prohibited list of strategic materials which Britain and many other countries decided not to send to China as the result of a United Nations resolution in 1951. British officials firmly maintaind that there has been no British infringement of the prohibited list. Another result of the new regulations would be the absolute prohibition of any ships bunkering in ports of Britain or her colonies if they carry strategic materials for Communist China. - In Colombo today, the Trade and Commerce Minister (Mr Richard Senanayake) said that Britain and America must deal directly with the Soviet bloc if they wished to stop supplies of strategic materials to China, instead of trying to starve us into obedience for our sale of rubber to that country.” China sells rice to Ceylon in exchange for rubber, which is believed to be carried in Polish ships. “Substitute for Blockade” United States experts cautioned today against over-estimating the immediate importance of the new British trade embargo agreement as a blow to Communist China. Only about 30 per cent, of China’s strategic imports arrived by sea, the remainder coming overland from the Soviet Union. Also, a considerable part of China’s ocean imports were carried in Polish ships that could sail from Poland to Shanghai without having to refuel. The “Manchester Guardian,” commenting on the British and American decision for tighter measures to restrict the transport of strategic goods to China, doubted whether the decision would much affect the actual volume of trade. It would not be easy to get the cooperation of other countries. “Ceylon, for instance, is not a member of the United Nations, and now depends on exports of rubber to China for rice,” says the paper. The decision to license Britishregistered ships plying to China so that they would not load strategic goods at non-British ports would possibly have a greater effect on American public opinion than on China’s supplies. The newspaper added: "Together with the other measures announced in the Washington communique, it may amount to a substitute for a blockade of the Chinese coast, which has been so freely canvassed in Washington.” Captain I. Marimaa. master of the Finnish tanker, Wiima, now at Singapore with a cargo of Rumanian aviation fuel for Shanghai, said today that the British-American plan to stop strategic materials reaching China could not affect his ship’s future in any way. “I can 'sail away from here any time I get instructions from my owners.” he said.

The Wiima has been in port for more than two weeks after waiting outside for 11 days.