1953-06-22 — Page 9

+

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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P.O. Box 63. Queen's Bldg.

Butward.

M

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M

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m.v. "ELSE MAERSK" m. V. "TRBIN MAERSK" FLV. "ALABEN MARDAK"

July

July

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new

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),

For Freight and Further Particulars please apply to:---

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BUSINESS REGULATION

ORDINANCE 1952

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