CO129-619-1 Parliamentary delegation to China 1-9-1947 - 23-12-1947 — Page 84

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inseparable from the present unsettled state of affairs in China. Trade is hampered by the most fantastic inflation and by cconomic strain. It is hopeless to think you can get a full recovery until there is a cessation of this civil war, which is straining Chinese economic resources, and, through interruption of communications, preventing the free flow of the commoditics which represent China's lifeblood. Until that problem is solved, trade in China must inevitably be very seriously handicapped.

There has boon delays in the recovery of British properties. We have tried, and we shall continue to try, to see that this process of handing over is specded up as far as possible. In the interests of the rehabilitation of the world, His Majesty's Government will give all possible support to British trade to re-establish its position in China and to supply what China needs. A Trado Mission has recently been visiting China and its report is now awaited. When it appears we shall be in a bettor position to assess the possibilities for the future and to formulate whatever stops may be necessary for the development of what is unãoub toäly a field in which our trade can operate to the groat mutual advantage of the two countries.

Meanwhile, as your Lordships have been told, a commercial treaty is at present under negotiation between the Chinese and British Governments. We have presented our draft and a Chinese counterdraft has now been seen and is undor consideration. The noble Viscount, the Leader of the Opposition, might like to know that our draft was presented in June 1946, and that it was not until this vory month that we received the Chinese counter-draft. So there does seem to have been some delay, although I am not seeking at the moment to assess the blame. We shall do the very best we can under that treaty to secure satisfactory rights for our merchants.

In answer to the question which the noble Lord, Lord Ailwyn, put in a speech which obviously indicated his friendliness to China, may I say that it is, of course, of the first importance to our trade that there should bo freedom for British ships to call at different ports and to navigate the Yang-tse. British shipping companios in particular, and British traders in general, in China have, as he said, a very honourable record and the restoration of their trade would be a groat advantage to China and to this country. We shall do what we can to see that we are given those shipping rights to which the noble Lord referred.

Then he asked about the restoration of British properties. As I have already said, we are going to do the best we can to see that this process is speeded up. He asked me whether we would insist upon the rendition of all British properties to their rightful owners as a prerequisite to the signing of a treaty. The noble Lord must remember that there are always two parties to a treaty and that it is very unwise for one of them to insist upon prerequisite conditions lest the other will not give them. We shall, however, certainly do the best we can to secure the terms for which he has asked and which I think are fair.

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