+
TRADE WITH
THE CHINA MAIL, MONDAY, JUNE 22, 1953.
RED
CHINA Britain's
British Fears Of Loss Of Market To Continent Reserves HONGKONG Suggestion By "Economist”
SHARE MARKET
(From Our Correspondent)
Business done on the Stock Exchange its morning amount ed to $231,020. Noon quotations and the morning's transäellons:- #AN OVERS SELLRICH SALES JANKS
INSURANCES
Cani
Tinion
Underwriters
1 Fe
DOCKS, ETC
1 Bank
1520
East Asia
LAD
204
125 470
760
1:10
In
100 719
3.70 780 200
4000 1
2:30 180
02
1.30
110
K. Whart
Provident Whook
LAND, ETC.
10 Tatel. HK Land Shai Land
UTILITIES.
Star Ferry C. Light to C. Light IN)
Electri
Hope
STORES, ETC.
31 $1.30 1500
TiQ 720 3000, 1
1500
25.10 25.20 2750 *
11.20
7 10:
7.13,
24.10 )
10 10 30 500 0.10
Telephone
INDUSTRIALS
Cement
14 F
1350
Dairy
Watson
202
24
200210.30 1000 20 20
Crawford
213 214
ber
COTTONS
F
Textile Corps 5.35 320-
Loans For West
Germany
May
Be Adopted
(FROM OUR OWN CORRESPONDENT)
London, June 21. The prospect of an early end to the fighting in Korea has revived interest in the possibility of expanding East-West trade when the need for tight control over exports to Communist countries becomes less im- perative.
This matter was given an airing in Parliament twice last week. On the first occasion Mr Harold Nutting, Under-Secretary of State for Foreign Affairs, sought to make the British position of this trade per- fectly clear in the eyes of the world.
·
And Policies
In Whitehall the reduced surpluses in May with both the dollar area and the EPU as a result of
which, the addition to
true monthly the reserves
TANKER OUTLOOK SURVEYED
are
J
*Events can only be taken 48 Indicating a further deteriora- tion in the already poor market," and "exceptionally few crafts Avaliable
dutnumbered looking for by the vessels employment," pre two staic- ate- ments in the latest summary of the tanker market issued by John 1. Jacobs and Co., Ltd, which may appear to possess on ominous ring-the kind of state- ment applied to all shipping 20
stomped from $117 million years or so ago. in April to only $37 million in May-are described as seasonal.
It is said that the surpluses could not have been and were not expected to continue at the high level of April and earlier months. The summer months are the lean ones for sterling area commodity camliga, and heavy ones for zome Seasonal payments of sterling to the
Boiled down, he said, Britain stood by the United Nations resolution of May 1951 calling for an embargo on the supply of strategic goods to China.
Britain a, in fact, imposed, be: have always been the mast
Continent, Bellain's temporis that embargo nearly a your be-important of Tore the U.N. resolution was from Russia but shipments of these commodities have fallen idealed.
Mr Nutting also outlined the heavily since the Communists In- measures which have been taken dustrialisation programmes be- more recently to prevent Britishgan.
A similar decline has taken ships calling at Chinese portaf
East European unless specifically censed to do place in other
commodity exports since the
Careful Study Being Given
Kramie.
New York, June 21.
pro-
so.
AGREES. WITH US.
of Agriculture,
There the Budget Bureau
THE
to
1
in
af
Contravention of these regula-] war. ons verulei make the ship
DIFFICULTY able to be huntest down
The dimeulty which ari- the high sens by Britisks naval vocate: of greater East-West US The
Administration Is j vessels." 5.00 10.70
trade com to have overlooked, 500 + 1 giving careful study to a
Dealing with future policy the therefore, is that Britain would posal to rid the Government Under-Secretary watch Brinbe
ዳር exporting largely capitat would of part of its farm-commodity
continue to apply the
Communist The slock by using it to supplement embargo en long as
The UN ods
countries presumably at the the Mutual Security pro- resolution remained in force. exper
exports
the according
But 20 to
far as nd-strategic Commonwealth which also has Washington despatch pubilshed goods were concerned it in the urgent need for innchinery of In the Journal of Commerce.policy of Her Majesty's Govern all types and receiving The plan would permit trans-ment to develop trade with the return an uncertain supply fer of up to $1,300 million in countries of the Soviet bioc and primary products, Commodity Credit Corporation China. We cannot live without
Hopes
that the Comununist sole traite and we consider this trade countries would take consider- holdings to the MSA for to participating countries for non-strategic goods is to the able amounts of British Con- their own currencies. Govern-advantage of the free world," sumer goods are also based un ment agencies involved the
doubtful reasoning. Before the Department Bonn, June 21.
War only three per cent of all West Germany will obtak the MSA.
i therefore, Jess British exports went to fussin toans from the World and others--have expressed in- difference between Britain and and
two per separato
cent to the Bank for various branches
the idea and at least the. United States on this ques- European satellites. Shipments in Industry- rather than un
overall
on top official is "favourably tion than many people believe. now are much smaller, yet, as
Economisi Joan, according to the Econo- diesel, it is stated. Others. In fact, Mr Nutting merely cous- The
points out, mics Ministry in Bonn.
that they favour the firmed Président Eisenhower's Britain is Western Europe's purpose of the plan but would revent statement that "It would largest exporter to, the Soviet The Ministry sald this was
of the details be foolish to say that we could bloc. So far as the possibility of have to know between agreed upon at talks.
before Mr Eugene Black, the
thes Bank
comment win the position we are seeking increasing shipments of British
In the world by refusing to trade President,
Herr and
Ludwig spcctcally.
everybody Erhard. West Germans
the The Americas Farm Burean with Econo-
except like."
that if and when the Peking Minister. Mr Black. who Fotteration mane the suggestion people we happen to micr
Government is in a position to There is a section of the Bri- Germany arrived in West
to the Senate Foreign Relations:
the
however, who, sanel
Party, House tish Labour
such goods It will hardly June 3. discussed the Republic's Committee
for nok farther. the need
alleid for financial
policies and credit Forsgn Affairs Committee Inst while decepting with the Minister. Veer-end, the despatch says control over exports while-Bei- than Japan.
tish
This does not mean, of course, troops are fighting in Korea, believe that the Government that there is no case at all for should now be considering ways expanding East-West trade. of expanding East-West trade as suply shows that such trade soon as the shooting stops. cannot be expanied as much as
critics Mr Nutting held out le some
of
British the to this troup when he was Government believe. hone
questioned in the Commons last
nerda itcuter.
on
1 tat
expinn
Runter.
eould
London Exchange
Passes Another Unexciting Week
(FROM OUR OWN- CORRESPONDENT)
London, June 21.
The setback in Korea and the news from East Germany last week added to the uncertainty which has been restricting business on the London Stock Exchange.
¦
of
Cont
But the outlook is not as dig mal as it may seem, says the Liverpool "Journal nierce," and Sir Federick God- ber, chairman of the
"Shell" Transport and Trading Co., Ltd.. put the matter into its proper perspective in the stutement circulated with the
company's report for last year.
He pointed out that since the end of the war the 'oll Industry has been engaged in intensivo construction of new plant and other facilities to meet
the rapidly-growing demand for all products,
This construction.overtook, in 1952, the rate of increase of de mand, white showed signs of
these factors was a much freer
Some other reassuring factors could be elted. The poor show- ing in May is only a slowing- down in the rate of improve- ment; it is not selback. A similar decoloration in Murch lasted for only the one month, As the Agures are subject to accidental month to month fluctuations, the same thingpausing. The combined effect of
agal, Receipts could happen of U.S. ajd may be bigger In
In supply of all products. June. "Under the Democrat Adnánistration this was a re gulor feature in June, the last mouth
Bnoncial of the U.S. year, as the spending depart- cleared ments in Washington up arrears, to reduce the carry- ever the unspent appropriations which Congres dislikes and might claw Înek.
fol
to pay
Sin "+I1
back- is against
stated, ground." Sir Fredrick "that the industry has entered o period of growing competition, which may, perhaps, be looked upon as conditions."
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SIMILAR SITUATION Part of the reduction in
of the
A similar
has Hituation the EPU surplus in May might
to oil developed In regard have been a technical and non-
Tanker tonnage is transport. recurrent Alling of the British
passing through a period when hanks' pipeline under the cur
arbitrage
freight rates are far below the rency
scheme. As
levels which have prevalled that scheme allows the bank
and during the past few years, to hold certain lines of
the main cause has been, on they exchange which
the one hand, the levelling-off have had previously
In the demand for petroleum promptly to the Bank of Eng- Inad. part of what would products and, on the other, the tankers otherwise have been Britain's steady dow of
Into service-24 mn, coming! EPU surplus in May must have lodgext In the
last year alone. banks Instead. The same thing will probably have occurred in
other EPU Seven
countries which In the ves participate
currency arbitrage
the Scheme. When banks reach the limits of their permitted holdings of foreign exchange under
the
scheine, there is no similar detraction from the EPU surplus in n future month. Filling a pipe- line of clothing a machine" is Dance-and-for-all operation.
consumer goods to China 15
concerned, the
buy
paper observes
them
It
week.
A SOLUTION? British policy. he said, "will
A possible solution-and one which, incidentally, would help in which i depend on the way events develop in the Far East bring the two opposing camps
after the
truce.
H
conclusion
ان
11
closer together is
by The Economist,
suggested
It is to continue to operate Any remaining doubt as the international mechanism 04 through which the free world
the official · Brith
view
trade with the Communist has been restricting East-West
Jong
is
world-at least
as trade in strategie goods but, to British soldiers are engaged in
extend
purely negative dighting the Communists in functions so that it can hold out Korea-was dispelled by My lo the Communists positive Peter Thorneycroft, President of propositions of expanded trade the Board of Trade.
In return for clear acts of poll- fical
co-operation." This may not satisfy all those have been prissing for East-West trade but It is n
Jikely Course
to be adopted by the British Govern- ment if and when a satisfactory
A GOOD IDEA He could see no useful pur-whe pose in discussing trade ques-greater tions with the Chinese Govern- inent "in present circumstances."
Business was again quiet and the chief fea-Meanwhile Britain was ready to
non-strategic goods.
ture of the week was the decline of gilt-edged expand her trade with China in solution is found to the Korean prices following their recent steady rise,
Immediate cause of this decline,
of an was the announcement anticipated Government funding operation. This turned out to be smaller than the market had £100 mil- reckoned on. Only lion of the Government's floating debt has been funded and this was accomplished by the issue of three per cent Exchequer stack, This is the second 1060, at par.
of this stock to be issued though the previous issue, in March, was priced at 00
Anollier factor in the decline
of gilt-edged prices was the issue of a further £10 million of coal compensation stock.
3
This
per cent stack, dated 1977-HO, was trsued at 80%
The existing coal stack started the week at D1, dipped to 90%
and finished at 90%.
Other gilt-edged prices also
dropped under the influence of
statements,
to
problem.
Tone Of
Steadiness In Cotton
the
REASSURING LESS Some other aspects are less reassuring. Part of the cut in the EPU surplus may be a continu- ing result of Britain's recent relaxation of restrictions Continental
and
imperts
Qu
21
tourism. Seasonal payments on those accounts may be heavier In June/September than they were in May. The seasonal June increase in .Said receipts the Democrats may or under may not recur under the Re- publicans.
Month-to-month fluctuations largely reflect the confidence factors with the recent slight easing in spot sterling, and the rather sharper casing in transfor- uble starling, the deceleration in
prove to lie. May MIRY
he less transient then that of March.
The recent diminution in the outflow of reserves from the U.S. has been quickly reflected in a diminution of the inflow
morc
of
Mr Thorneycroft agreed with
Williams, Sir Herbert
M.P.,
reserves to Britain. The tighten- dustrial share prices remained
Secretary of the Empire
ing of money in the US. has unchanged on balance.
Economic Union, that it would
gone to the length of raining the Despite Tours that the be "a good Idea if the Chinese
Now York Treasury bill rais steci denationalisation Issues stopped shooting at our soldiers."
above the London
one, until will, not now take place
solution
"these
abnormal relationship which the autumn, investors are still.
would mallers
does not help London to attract acting with caution. The only
encourage the trade position, upward movements of any note
money. If U.S. money policy But, though the President of were caused by
revers03 the the cheering the Board of Trade insisted that
Ilde recent notcs In individunk company Britain was moving in close
reserves from the U.S. (either for technical reasons or by Gold shares had a good week, accord with the other countries
New York. June 21.
creating more confidence in tho largely in the revival of in- in Europe" in the question of
fluctuated dollar) the tide will ebb from Red China, muny Cotlen futures
Britain terest in the question of the trade with
slow dealings
than seasonally. in satisfied that narrowly official price of gold following European countries are moving through most of the week but
prople are not
With the confidence factors in Mr Haverga's Statement on the subject. Base metals were in accord with us.
managed to show an overtone her favour, it has taken Britain more tha year to regain the steadier than of late and rubber West Germany and France are of steadiness most of the time.
At Friday's
1/s close, the
reserves which she lost in the shares also improved. Dll both stepping up their trade with
first four months of 1952 alone; คุเท shares, however, tended to lose China and other Communist ruled 9 points higher to
-points-lower-or-up-45-cents-to she has still to regain the much Kround.
Tcountries.
off 55
bale
Infg losses that ho suffered In cents
compared The former Increased its ex with the previous week.
the second half of 1851. Unless VERY VULNERABLE
ports to China threefold between
Market participation was cut and until the trend and the level Murch and April and L London, June 21.
now down as truders transferred a of reserves. become much more proved discussing means of expanding good part of their attention at Britain will move cautiously dependable, it must be expectat stocks Government
with to trade
Russia parci its the faster
and vulnerable last week
in any further steps towards
in the
crop both those count-liberalisation
convertibility-her And a French Industrial and students thought that the plant end commercial group is reported to low was on the defensive and tentions are of the best; but her would have to have nearly means, though improved, are barter ideal conditions to combat the still scanty-Reuter,
the new funding issue and the very
moving grain
11
selling of the new coal stock. the developments in Korea and European ratellites through the securities market.
Old Console fell European Economie Commission, While it is still a lito carlyfreeing trade and currency, On
But another Important influence East Berlin.
on gilt-edged prices has been 23/9d, War Loan and
4 per fell 17/64 and the absence from the City of cont
212 per cent Treasury stock many big investors not sur- prisingly in view of the counter lost 20/-.
Considering the
Consols
inner
hend.
these tumbles
In
BRITISH FEARS
some seaton,
attractions at Ascot nnct Spil strength of gill-edgeds this year. ( agreement with China for £10 normal hazards to he faced be
the
in-
of freight rates The award by the London Tanker Brokers' Ponel reached a penkt in April. 1952, was substantially reduced in October,
Denin and
fell "thus re- last April, heavily vealing a change over the year from scarcity to surplus" Sir Frederick observed.
His view of the weakening in tanker freighis is the same as Uurs, viz.. that it should, not necessarily be regarded us the
"of one beginning
of those severe slunips
which occur periodically through the years, but rather ng "a healthy re- adjustment of a position which had got out of hand."
To independent tanker uper- ators with expensive now ton- rage on their hands, or under construction, this may suggest
· smugness, but it is merely facing facts
Already it has resulted in the scrapping of a fairly large number of okl and obsolescent tankers-ships in the region of 30 years of age, which had lived a decade beyond their "allotted spans, and which only the post- war boum had kept in commls- slon. There is room for innker on a much greater scrapping scale, and this would reduce the surplus tonnage which exists at the moment and provide profit- able employment for the newer ships. No concern need be felt for the future at least over the next few years--it all owners of olti and uneconomic lenkers would dispose of them to the shipbreukers instead of retaining them in commission in anticipa- tion of an increased demand which will not transpiro.
Lowest For Years
Oslo, June 21. Currency reserves of the Bank of Norway at the end of May showed a further degrease
of 15 million kroner to 280
million. This was a decrease of 230 million kroner since January 1, and the lowest figurd registered for several years,
re- In addition to currency serves mulatained by the Bank of Norway, private banku and- shipping companies, own con
surtis siderable
in foreign dew currency, but the standy crease in the central bank's re- serves for more than a year re- flects on adverse position Norway's foreign trade.
Total foreign currency debts way as at May 31 amounted to in~ about 451 militon kroner, cluding a debt of 249 million to the European Payments Union. --Reuler.
in
Rubber Futures registered by the Bank of Nar-
In S'pore
have -entered Into n
milion worth of trade.
harvest time in were excessive.
Agitation for the British Gov-fore the STILL TO COME
there leading industrials
autumn. trade shrinkage. In ernment to permit more
with China is, therefore, coming Increasing stress was placed Last week's issue of Exchequer - Levere
business. Imperial Chemicals stock was not the big Govern- netually rose nearly & shiling, from the Industrialists who fear on the extra heavy boll weevil
that
Infestation this year following Continental ment funding operation that the Movements were up or down
are stealing a match on
in the wake of a mild persis markets had been expecting, over a relatively small range.
west as well as from left wing poli- fent drought in That is still to come though With the conspleuous exceptielens who apparently believe which
observers
Singapore, June 20. It is not ' new expected until tiona
Prices of rubbor futures closed of Royal Dulch, which that all that is needed to bring could cut the growing area in later the year—a fact which rose 12/6d, oils were
easier
today as follows: greater ex neces
par 1 July fidence in the future stato of the¦ a trend,
Ono ehenge, of goods, ··
that the survey sald
AFLA! Market 1
Japanese bonds ended an
Beptember But the question is, what! extent
of the general acre Number 2 rubber. scot and Spithead were also active weeks with gains. Ascot
Ger- goods? Do the Communist coun- action will depend on weather
July sensi- tries want British held partly reponsible for the mah Releh loans were
texilles, or conditions during the next ten Number a 'rubber;
July dullness of the industrial share tive and lost 21 while the British machinery to enable the days Rains also would bo
Number 4 rubber, market. Most sections tended to['potash loans fell £3. Dollar to make their own textiles? Un- welcomed in the central, ondi
July drift lower though, after dipping stocks kept in step with the doubledly it is the latter. eastern areas where replanting Spot rubber, unbated süghtly at mid-week, the moderate recovery In
Blanket crepe And what would Britain get in operations have been
No. 1. pale érspe. Financial Times „index of in-York-United Press,
return? Coarse grains and tkn- ploted--United Press.
areas
the two hrives of the world to- that, section around a million Number 1 rubber, Indientes the Government's con without, howover, establishing gether nga is a
some
felt
་
New
Com-
Exchange Rates
Dunia wan done in "the loent official exchango market this
an-0042 0036-
1534-00
021-03
6134-02
18-50 73-78
United Prem.
FIC pinstres (per 100)
meriting, at the following rates!-- . 11.5. Collar per 31). #1,023 Sterling Bolo (per 211
Indonesian gulitem ther 100)
Alarm Denia (per 100)
J'Singapore (Straits),
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