Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-06-30
The Trade Issue
BY RELMAN MORN

Inc China mainland groanS
under the burden Of feeding 600
million people.
Most Of them work the land. They
farm with wooden ploughs, primi-
tive fertilizers, and the water
wheel. All but Q few are bitterly
poor. Moreover. the population is
constantly increasing-an esti-
mated IL to IS million more births
than deaths per year.
How will Red China support its
multiplying millions?
This is the great problem-ever
more food and jobs-that the Com
munists must solve. It is poten-
TALLY the most dangerous Of all
their problems.
And this is the crux Of the debate
in the Free World today over the
move to ease controls on trade
with Peiping.
Britain and West Germany have
announced that they intend to
broaden the base Of their exports
to Red China. Other major trad
ing nations may follow. The United
States so far Is holding fast to the
total embargo on trade with the
Reds.
The issue has many ramifica-
tions. Perhaps the most important
is this:
BY widening the range Of exports
to China, will the Free World be
helping the Reds to industrialize, to
create jobs. to take more people
off the over-burdened land, to win
their race against time?
The official American answer
with some doubts in Congress and
also apparently in the White House
lis Eyes" BY contrast. the British
feel that the embargo has not seri-
ously hurt the Communist program
in China, and that ending 1t viii
not materially assist it.
A highly-placed State Depart
ment officer said in an interview:
Sees Chino in Trouble
The Chinese Communists are in
terrible shape. Their five-year-
plan is hopelessly begged down.
They're not getting anywhere try
ing to industrialize. They've got
trouble piling up on all sides.
AT Geneva, the very first thing
they asked was that the American
embargo be lifted. Why? Because,
to build factories and industry,
they need things that they can't
get in quantity anywhere but in
the free world.
I'm short, our policy is Just be-
ginning to pay Of. It's too bad II
any government eases up on the
Chinese at this point"
The officer declined to be identi-
fed. He said he did not wish to
disagree publicly with President
Eisenhower
In a recent news conference, the
President said:
II don't see as much advantage
in maintaining the differential be-
tween trade with Red China and
with the Soviet bloc as some people
do. although I have never advo-
Gated its complete elimination.
The background Of the differ
entail" is this:
In December. 1880. after Peiping
sent volunteers" into the Korean
War. the United States clamped
the lid on all exports to China,
regardless Of the nature Of the
article.
Five months later. the United Ma
tons recommended an embargo on
strategic" items, including those
useful in the production of arms"
The major trading nations Of the
Free World honored this control
and 1t still stands today.
But few of them went so far as
the United States. They continued
to ship goods which they consider
"non-strategic."
(, Revealing Potten
The pattern Of this trade is high
ly Illuminating.
One item keeps re-appearing as
major import-fertilizer. The Reds
are buying it In quantity from at
least seven Free World sources. Is
this reflection of the Communists
desperate need to produce more
food? A sign Of the race against
time?
The pattern Of smuggling is
equally revealing. In one month
alone. Hong Kong police caught
smugglers with high speed cutting
tools. auto brake plates. ball bear
ings. smoked rubber, steel plates,
rs tons of tin plate, copper tubing,
2.7l2 pounds Of iron cuttings, l,750
large bottles Of acetic acid, three
trucks. and 1.195 voltmeters-among
other things. They even spotted a
frog man." fiippers and all. towing
two inflated bags. In the bags were
American.made tool bits.