Evening star., 1952-05-19
British Businessmen Will Close
Companies in Red China Worth
$40 Million and Quit Country
Exit Visus Asked:
Diplomatic Status
IS Not Affected
By the Assoeicted Pres.

LONDON, May 19.-Britair
told Red China today remaining
British businessmen in China
have decided to close down OF
dispose of their 300 million pound
($840 million) investment and
quit the country.
In a note delivered in Peiping,
Britain also asked the Chinese
Communist government to grant
exit visaS for an estimated 12O
Britons, who would leave the
country as soon as their busi-
nesses are wound up.
The note said the decision to
give up any further attempt to
continue in business in China
was made by the business firms
concerned.
A Foreign Office spokesman said
Britain's one-sided recognition of
the Peiping regime would con-
tinue. Britain, largely at the prod
ding Of British business interests
in China, recognized the Com
munist government in January,
1850. British business has been in
dominant position in China for
more than two centuries.
Little Hope of Selling.
Full diplomatic relations never
have been established. Britain has
a charge d'affaires, L. H. Lamb,
in Peiping. He has only limited
access to Peiping Foreign Office
officials, however. Communist
China has not made any move to
open a diplomatic mission in Lon
don.
Our contacts with China, such
as they are, will be maintained"
q Foreign Office spokesman said.
Selwyn Lloyd, minister of state
for foreign affairs, is expected to
make a statement in the House of
Commons tomorrow on the with
drawal Of British business men.
Newspaper reports said British
owners would try to sell their
property to Chinese government
agencies. but there was little op-
timiSm.
"The Foreign Office thinks the
chances of the companies getting
compensation for their abandoned
property are very small" said the
Daily Express.
U. S. Property Seized in 1850.
The Communists ordered the
seizure of all American properties
on the Chinese mainland at the
end Of 1850. No compensation was
paid.
The Reds have seized outright
only one British holding, however,
the Asiatic Petroleum Co., in April,
1851. This was in retaliation for
British seizure in Hong Kong of
tanker formerly owned by the
Chinese Nationalist government
and claimed by the Reds.
The properties the British firms
have now decided to give up
are located chiefly in Shanghai,
Tientsin. Hankow. Canton and a
Sprinkling of smaller cities. Be-
longing to firms covering almost
the entire field Of commerce, they
include factories, shipyards, ware
houses, hotels and Office buildings.
The firms include some Of the
greatest names in the history of
trade in the Far East-among
them the British-American To-
bacco Co., the Shell Oil Co., But
terfield & Swire, Jardine, Mathe-
son & Co.
Government Asked to Help.
Formerly 10000 Britons ran the
holdings in China. Now the scat
tered British colony totals only
about 120' persons.
Getting them out may present
keen diplomatic problems. Some
Western businessmen have been
held in the past by the Chinese
Red authorities until their en-
ployes were paid vast settlement"
sums set by the Chinese them
selves.
The Daily Express said this was
where the British government had
been asked to step in and assist
in the liquidation-"the govern
ment will help by safeguarding
the interests of British employees"
The Express did not say how.