TRADE WITH CHINA

Press, Volume LXXXIX, Issue 27096, 20 July 1953, Page 9

TRADE WITH CHINA

Charges By U.S. Committee (N.Z. Press Association—Copyright) (Rec. 8 p.m.) WASHINGTON, July 18. Senate shipping investigators said today that shipping by United States allies to Communist China was 12 times greater during the first three months of 1953 than in the same period in 1952. They said that the total trade by Allies with Chinese Communists has amounted to 2,000,000,000 dollars since the Korean fighting started and “still is flourishing in the third year of the war” in spite of United States policy to discourage it. The charges were contained in a 57page report by the Senate Permanent Investigating Sub-committee on its investigation of free world trade with China.

The chairman, Senator Joseph McCarthy, said that all four Republican members signed the report. The three Democrats who resigned from the sub-committee last week did not sign it. The sub-committee blamed the State Department for failing to halt this trade with the Chinese Communists, but it levelled its severest criticism at British and British-owned firms in Hong Kong. It also said: “Western Germany’s trade with China for the first four months of this year has reached record heights.” The “indefensible trade policy of the Allies has made our military operation in Korea a more difficult one, and unquestionably has cost the lives of American and other Allied fighting men in Korea,” the sub-committee said.