BRITISH TRADE WITH CHINA

Press, Volume XC, Issue 27471, 4 October 1954, Page 16

BRITISH TRADE WITH CHINA

Emphasis During Tour By Labour Mission “BARRIERS SHOULD BE REMOVED ’’ . (From a Reuter Correspondent) HONG KONG. Two-way development of Sino-Brit-ish trade was one of the most frequently discussed subjects in the British Labour mission’s recent tour of the Republic of China. It is apparently a matter to which the Chinese Government is giving constant thought. Peking officials disclosed to Western. correspondents that at present more than 70 per cent, of China’s foreign trade is with the Soviet Union and satellite countries. But, according to these officials China is developing trade with some Western European countries. They said that in 1953 imports from Western Germany were nine times greater than in the previous year. One official said that judging by actual transactions France, Western Germany, Belgium and some other Western European countries seemed more anxious than Britain to do business with China. The official said: “We have imported steel, metals and machinery from Western countries. Britain has provided the shipping services to move those goods.” Asked if increased trade with Britain would mean China adjusting the proportion of her trade with the Soviet group ,the spokesman said China would develop trade with both groups. Asked if under the present embargo China was still gettings some American goods, the spokesman pointed, out that anyone could see a large number of American cars on the streets in China. The official said they considered artificial barriers to trade between Britain and China should be removed, but idded that they were not interested in getting instruments of war from Britain. They said China’s policy was to oay for imports with exports." In 1953 from trade with Western countries, China earned «30 per cent, more than the previous year, they added. Unlike some Western countries. China did not try to save a very large amount of foreign currency, the officials said. The expansion of China s foreign trade depended on development of her agriculture and industry and not on foreign loans or credits. But, they added, in certain business arrangements, long-term credits were to be considered. China’s market for foreign trade would get bigger and bigger as economic reconstruction went on. "This country will be a very big market for foreign goods,” they said. They recalled that the Chinese trade mission which recently visited London visualised the possibility of two-wav trade worth £80,000,000 to £ 100,000,000 a year. Asked if any products not previously exported to Britain could be exported in the future, the officials mentioned tobacco leaves, frozen meats, canned goods, chickens, ducks, fish, and fruits. A spokesman deprecated reports published abroad suggesting that China hoped to pay for British heavy machinery and equipment “with liquorice and weasel baits.” The officials believed Britain’s main needs included edible oils, foodstuffs, tobacco leaves, and frozen eggs—all of which China could supply in quantity. Such traditional Chinese exports as raw silk, tea, bristles, wood oil and soap oil could also be supplied. Because of her economic reconstruction plans, China needed such things as metals, capital goods—including generating plant and different kinds of machinery for heavy industries—locomotives, lorries, ships and refrigeration equipment. The officials said that because China was improving her living standards, she also required some varieties of consumer goods such as wooltops, dyestuffs, pharmaceutical supplies and chemicals. The officials claimed that China’s total volume of foreign trade in 1953 was more than five times that of 1949. In export value it was the highest since 1931, they said. Chinese exports to Britain in 1953 were worth £10,000.000 and her imports from Britain were worth £6,000,000. One spokesman said that Japan was interested in getting certain products from including coal, salt, iron ore, manganese, soya beans, oil extracts. minerals and various agricultural products.