CHINESE TRADE

Otago Daily Times, Issue 23894, 23 August 1939, Page 4

CHINESE TRADE

PROHIBITION OF IMPORTS In an attempt to arrest the increasing, adverse trade balance, amounting last year to £8,129,000, the Chinese Government has announced a drastic prohibition of " non-essen-tial " imports, said a Hongkong message printed by the Daily Telegraph on July 4. The ban comes into force immediately, and affects 234 items, of a total value of ."" 13,000,000. The chief sufferers will be Great Britain (£2,000,000), United States (£4,000,000), and Germany (£1,500,000). The Chinese Ministry of Finance stated that the Government had adopted the measures very reluctantly, but in the circumstances there was no alternative. It wat necessary to strengthen Chinese resources. The money saved would be used for the purchase of essential war commodities. The import restrictions apply to wines, spirits, tobaccos, cigars, cigarettes, sea products, silk goods, toys, medicines, meats, sugars, fruits, woollen and cotton textiles, timber, paper, and tinned commodities. Britain is the chief supplier of cotton piece goods, woollens, wines, spirits, and medicines, while British Empire countries are the chief suppliers of sea products, animals, cereals, and flour. At the same time, the Chinese Government will take over almost complete control of Chinese exports. In future, oils, tea, bristles, minerals, and many other commodities can be exported only through the Government, principally by a barter system, which is already operating with Germany. ± . Exchange for all exports must in future be delivered to two semiofficial banks, the Bank of China and the Bank of Communications, at official rates of exchange. Exporters will receive a sum based on the difference between the official rates and the rates announced by the Chinese banks associated with the stabilisation fund.