Evening star., 1948-11-14

Scrap metal, such as the M
fo,Ding to China in great Qut
gone to shipping companies like
Fc c;fc-Fsr East-putting some OF
the original s30,000,0 900 back into 6
few American hands-as well as tx
the Shanghai crews Of nine Chinese
LISTS.
Army and Navy officers have
declared postwar supplies
surplus and available to China, con.
fdent that they will oe replaced
from the American 'cornucopia.
u. S. Buyers Restricted
The only one who can possibly be
unhappy about this billion-ton
$500, ,0O0, 900 operation is the little
man who paid for it. Perhaps
fortunately, he also is the little mar
who was not there-or hurried home
early.
China got only second chance al
the gigantic masses of new anc
second -hand materials in Micro
nesia. First opportunity went tt
the army of American buyers who
out to the Pacific at the
Governments invitation in 1946
The mystery Of why American
prices remain high today is partly
when it is seen that al
electrical equipment Is barred, in.
cluding every kind of motor anc
generator. None of the refrigerator
resting on Pacific docks can be
returned, nor the pumps, presses
saw mills or tractors awaiting ar
owner here oc the islands. I saw
new motor lathe, perfectly pre-.
served in grease, on the dock al
Saipan going to China at % pei
cent of what it cost the taxpayer
not including shipment here.
Work clothing-high priced in the
United States, where no civilian
wants a surplus uniforms barred
gloves, and even pillow cases. x-ray
are condemned to remain
rotting in the islands or be buried
in China's unsorted acres of waste
Not even dental equipment can he
returned to the United States under
this incredible American embargo
against Americans.
Myths About Abuses
To explain these abuses severa
myths have been created. One is
Its not worth sending the stuff
back. Our troops have gone home
and Harry Bridges steyedores cost
too much" But the taxpayer has
been smitten for $50 million to move
this same "immovable" property tc
China.
Another myth: IF we bring the
stuff home and put it on sale, there 4
be unemployment in our factories
The fact is conveniently buried un.
derfoot that less waste and lower
taxes mean more consumer purchas.
ing power, hence greater produc.
ton and employment to satisfy it
However, after China took over
salvage en- bloc, new
parties of interested American busi-
ness began to open some chinks ir
the laws against the American
public benefiting from its own sal.
wage. This new group began buy.
ing from the Chinese to sell in the
United States.
American firms were able to buy
machinery from China
at around so to so cents on the
dollar. without even touching the
machinery, China made money ovel
its 22-cent cost by merely a book
operation.
With most salvage already gone te
China, American restrictions have
been lifted on telephone equipment
wire and cable, and certain kinds
Of pipe.
Bobby Pin Treasure
But out in these islands it is hare
to guess how high an article Of
must climb in the United
States before its first wartime
owner, the consumer-taxpayer, car
legally buy back his own property
through the prof1t-taking filters Of
the Chinese government, American
shipping company, job.
ber and retailer.
The huge salvage operation now
closing down in 13 Pacific islands
counts its treasure in jeeps ano
bobbypins, aerial compasses and
rubber gloves.
The Chinese se-American cleanup
has been represented variously al
an operation to help China, an op.
Grafton to restore business and ar
operation to save surplus in the is
lands.
These aims are present. Actually
however, salvage is part of the State
long-discredited pol
icy of helping China" by putting
an American floor under the mortal
ly hit Chinese yuan, or dollar.