TRADING WITH CHINA

Press, Volume XCV, Issue 28314, 27 June 1957, Page 13

TRADING WITH CHINA

Federal Cabinet Divided

(N.Z. Press Association—Copyright) MELBOURNE, June 26.

The Australian Cabinet is reported to be sharply divided over proposals that Australia should expand trade with Communist China. The Minister of External Affairs 'Mr R. G. Casey) is believed to have appealed to the Cabinet to refrain from trading with Communist China, the “Melbourne Herald” said. Mr Casey is reported to have told the Cabinet, that Australia, should consider the attitude of the United States before deciding to follow the British policy of trading with China. Mr Casey said that Australia’s destiny in the Pacific was closely tied to that of the United States. He referred to the defence pacts such as Anzus and S.E.A.T.O. which Australia shared with America. For this reason, any Australian decision to trade with China should be delayed, he said. The United States wasstrongly opposed to the British policy of trading with China. An Australian decision to trade with China would not be well received in- the United States, he said. A section of the Cabinet, led by the Minister of Trade (Mr J. McEwen) favours trade with China.

The Cabinet received a memorandum from the Trade Department outlining the prospects of trade with China. This was based largely on a report by the Australian Trade Commissioner at Hong Kong (Mr H. C. Menzies), who recently visited Communist China.

It said there were good prospects for substantial sales of Australian primary and secondary goods in China.