795.00/12–351
The British Embassy to the Department of State
Telegram From the British Secretary of State for Foreign Affairs to the British Embassy in Rome1
Confidential. Immediate. Addsd to Rome tel no 1102 of 30th Nov reptd for infmn to Washington. Yrtel 653 and mytel no 1099.2
Trade with China.
Bradley’s statement ignores the situation as it exists today and in any case is very exaggerated. It is true that there was a considerable increase in trade with China immediately after the outbreak of the Korean War but all the figures available show that there has been a steady and substantial decline in trade during 1951.
2. Shipping.
No figures are available for shipping engaged in trade with China before February 1951. At the end of February there were 158 ships of all nationalities excluding Soviet Bloc engaged in China trade of which 64 were British and 56 Panamanian. At the end of November there were only 58 ships of which 26 were British and 17 Panamanian. In addition at the end of November there were 6 Polish ships engaged in this trade.
3. Trade.
[Page 1224]UK exports to China by average monthly values in thousand pounds sterling were:—
| 1950 | First Quarter | 98 |
| Second ” | 182 | |
| Third ” | 479 | |
| Fourth ” | 436 | |
| 1951 | First Quarter | 430 |
| Second ” | 250 | |
| Third ” | 120 |
Hong Kong exports to China by average monthly values in thousand pounds sterling were:
| 1950. | First Quarter | 5622 |
| Second ” | 4109 | |
| Third ” | 6754 | |
| Fourth ” | 10409 | |
| 1951. | First Quarter | 13748 |
| Second ” | 10239 | |
| Third ” | 5675 |
The figure for the third quarter of 1951 shows very clearly the effect of the United Nations Embargo. These figures include exports by sea or rail to China.
Imports into Hong Kong from all sources during 1949 were at an average monthly rate of pounds sterling 14.3 million. During 1950 at pounds sterling 19.7 million and in September 1951 at pounds sterling 20.7 million. Much of this increase can be attributed to the general rise in world prices.
4. It is worth noting that the United Nations embargo on trade with China covers only strategic materials and leaves a large range of non-strategic commodities available for legitimate trade.
5. If General Bradley is still in Rome please convey above infmn to him and also, if possible, to Mr. Acheson. H. M. Embassy, Washington will also no doubt pass it to State Dept.