CO129-619-1 Parliamentary delegation to China 1-9-1947 - 23-12-1947 — Page 149

14:

CONFIDENTIAL

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12. BRITISH TRADE IN CHINA.

not attached

Attached is an extract from the Report prepared by the Trade Mission which went to China last September. The

Report is not yet published and the source of the

information in the attached document should not be

revealed. The extract gives a good rough picture of economic conditions in China and there is little that

needs to be added to it.

United Kingdom's Commercial Relations with China.

Our views about prospects of trade with China

arc naturally coloured by the facts set up in this extract. Our attitude can perhaps best be described as one of friendly but helpless sympathy for the Chineso.

We are, unfortunately, in so dire a situation ourselves economically, that it would be pointless to give even the

slightest hope to the Chinese that wo might be able to help

economically. We have done what we could with our

contributions to U.N.R.R...., although this may soom smr.11 compared with American help; there is nothing, however,

which we can do either at the moment or in the foreseeable

future in the way of additional finance, whether this takes

the form of long-term loans, or even short-term credits

on particular contracts. In fact, the situation is

so scrious that at any rate until our financial position is casior the Treasury have ruled out even assistance

in the way of credits to British firms established in

China which suffered damage or loss as a result of war.

On the other hand, the fact that both countries

are seriously handicapped by their financial difficulties

need/