CHINA'S TERMS

Evening Post, Volume CXXXIX, Issue 47, 24 February 1945, Page 8

CHINA'S TERMS

TRADE WITH AUSTRALIA

Rec. 1 p.m.

SYDNEY,. Feb. 24.

China would buy Australian products after the war if Australia would do business with China on a loan basis, said Dr. Tsiang Ting-fu, chairman of the Far Eastern conference of UNRRA, when speaking at Sydney. He said China was prepared to buy wool, dried milk, steel, and spare parts from Australia on a loan basis,

"If Australia cannot do business with China in this way we will have to go elsewhere," he said. "We cannot enter into any agreement on a cash basis until we stabilise prices after the forces responsible for the present inflation in our country are overcome."

Dr. Tsiang said there were three fundamental reasons for the inflation in China. They were, firstly, the blockade of the China coast; secondly, the Japanese hold on almost half China, including the richest part of the country; thirdly, internal transportation difficulties.

"Until the present Government took over transportation in China 10 years ago, modern transportation was unknown there." he said. "Although we will industrialise our country after the war, agriculture will remain our mainstay."