1936-03-04 — Page 15

I'

THE HONGKONG

TELEGRAPH. WEDNESDAY, MARCH 4. 1936.

CHEMICAL FIRM AS "JEKYLL AND HYDE"

HONGKONG AND JARDINE

COMPANY MENTIONED

AT ARMS INQUIRY

"It-seems," remarked Sir Philip Gibbs at the Arms Inquiry last month, "that there are two different sides to Imperial. Chemical Industrias-one for fertilising the fruits of the earth, the other for producing materials capable of blasting those fruits off the face of the earth.” *

After the Royal Commission had heard Sir Harry McGowan, chairman of I.C.I., Sir Philip said:

"You say there is a widespread fallacy that I.C.I. is essentially an armament firm, and you lay considerable stress on the smallness of your profit, but is not that like the answer given by the unfortunate lady who put in a plea that her unwanted child was only a little' one?”

Alluding to evidence given at the American inquiry, Sir Philip remarked that it seemed “LC.i. acted the part of Dr. Jekyll and Mr. Hyde" in China.

"FALLACIOUS

IMPRESSION"

Imperial Chemical Industrica, in. their evidence submitted by Sir Harry McGowan, emphasised that there was a widespread but utterly fallacious Impression that they) armaments: essentially an

were

firm engaged to a large extent in) the production. of war materials. Proportion of total profits attribut able to munitions neeinged 1.4 perf cont, over the past five years.

Referring to its utility to the State, 1.C.I. stressed that, while not to any material extent engaged during times of ace in the manufacture of mill-

peace tary products, it had great potential resources for their manufacture.

REASONS FOR SECRECY

Before evidence was taken Bir John Eldon Bankes, chairman of the Commission, referred to the letter quoted below.

The Commission, he said, only agreed to private hearing when the matter was one affecting national defence and Government preparations for an emergency, or which the

character

The of evidence might be injurious to the business interests of a parti cular party.

SIR PHILIP GIBBS

In the Paraguay-Bolivia war. Mr. J. A. Spender anked if Harry would have any objections a Government nominee on the gested Supervisory Board. |CONVERTIBLE

CHEMICALS.

"SPY AGENT FOR 12 COMPANIES"

You have arangements with cer- | tain firms of one sort or another in many countries of the world, includ ing Germany and Spain; have I your perminalon to mention these firmi? Yes, do. EXPLOSIVES

RING DENIAL

Sir Philip: I think these rather vague charges made against your firm are really due to a sort of anxiety in the public mind because they im- agine, rightly or wrongly, that you are in control of a widespread organization of chemical firms which can instantly get to work to create explosives in any part of the world where there happens to be a spot of trouble. I don't agree with that de- finition for a moment.

-Allegation

if that meant that I.C.I. were trying to create peace in the Far East.

Bir Harry said that that was not the job of a company. I.C.I knew that there was certain business in the offing, and were endeavouring to get it for this 'country. They did not stimulato ordors from the Chinese Government or any other party.

Sr Philip asked, "You were en- deavouring to get busincas with Japan, but it was difleult to do so because of the Japanese making their own munitions, but you did deal in cer- toin specialities?

"These presumably were for the invasion of Manchukuo, and at the some time you were supplying the Chinese with the same materials of war in order to defend Manchukno,

Is this

system of private sales Sir Philip asked Sir Harry a mum. ber of questions regarding LC.I.'s abroad that has aroused such criticism. Agreement with the international arm-By it an aggressive nation is supplied ament firm Du Pont do Nemours with weapons, and at the same time ana defending nation is supplied with and particularly with regard to

similar weapons for defence and thero- Sir agreement relating to Germany.

Mr. John Rogers, another 1.C.I. of the world's explosives."

by increasing the quantity and quality sug-director, said to Sir Philip that, on NO SPECIAL

behalf of the firm, he could deny any suggestion that IC.I and Du Pont's had" appointed an agent to bring Ger-: Hemary within their word selling ar-

to

Sir Harry said that he would. thought industry was quite competent) to look after its own business.

A

Mr. Spender: You don't think Government nominee on the Boarl would be a satisfactory way of assur

ng the public that everything was (all right?—No.

Mr. Mitchell agreed that two of

Dame Rachel Crowdy asked if ICI the documents which had been

exported to warring nations or polen- tial warring nations commercial pro- marked "Confidential” referred to those exhibited in the inquiry induce which could be easily converted the United States of America.

into war material;

"It is no reasonable," commented Sir John Eldon Banken, "that you Although much of its equipment hould ask us to treat as confidential was designed for commercial pro-locuments which have already been ducts, it could be readily converted to other uses.

na

War,

Under modern conditions of the I.C.I. state that it would be im- possible for any first-class nation to defend itself without an extensive, highly-skilled and perfectly equipped chemical Industry Fuch II. offered.

It was explained that phenol which was obtained as a by-product, from gaswerks, was used in large quantities in the production of synthetic resins.

ublished in full in America.

Mr. Mitchell said that he onw no cason why they should not be pub ished.

Sir Harry sald that chlorine was exported to foreign countries for com- mercial purposes.

Dame Rachel Crowdy asked if this would be done even if a country had been declared an aggressor, as was the ease with Italy and Japan; and also whether a licence was needed from the Board of Trade for exporting these easily convertible chemicals,

Sir Harry McGowan informed the Commission that only two sales agree-NAMES OF FIRMS nents came within the ambit of mili- ary supplier.

to

KEPT SECRET

Sir Harry said that no licence was required, and that there had not been;

noticeable increase in the amount of exports to countries where there had been wars.

Sir John: There Aeems to be an mpression. that if you or any other aglish company desire to evade the censing regulations, or desire over up the real destination of some of your products, it is necessary that

Dame Rachel naked Sir Harry if It was a purely accidental circum-ou should have an existing agree were his opinion that it was an easy stance that its derivative, picric ent with some foreign Government. thing for a firm to avoid an embargo acid, could he used as an explosiva

by the

ch other.

rangementa,

WHY AGENTS

IN CHINA?

Sir Philip said he wondered why the Brm had appofited the Jarding Engineering Corporation agents in China when, I.C.I had an office in Shanghal.

ATTACK ON L.C.I.

Bir Harry said that if the system of private manufacture were stopped Governments would simply put down. their own plant for their own ro- quirements.

Sir Phillp enld that he was making no special attack on 1.C.I., but merely analysing the system."

Sir

Sir Philip Gibba questioned Harry McGowan about the association of Imperial Chemical Industries with there Vickers in China, and Sir Harry said:

"Do

He wondered iso whether was any kind of delicate feeling in the minds of the directora as to the impropriety or inadvisability of selling powder and explosives in some parts of China and material for agriculture in other parts,

Sir Philip said it seemed that by the arrangement between the ICI, and Du Pont they were able to make pro fits by selling explosives in any part of the world.

There was also a feeling, Judging by correspondence at the American inquiry, that because of the objec- tions to the policy of the Nanking Government by certain of the Provinces, it would have been dif- ficult to conduct a military business at Shanghai.

o you suggest this association was prejudicial to someone?!

Sir Phillp: I think it might be interpreted as being rather danger- 01. 1. feel myself it is a Bitla dangerous chormons

to the world that

private combinations should get together to exploit the needs of the world."

Sir Harry McGowan: I object to the word explolt.

Sir

that word. You do not feel there is Philip: All right. I withdraw some kind of danger attached ?---Nono at all.

Sir Philip naked Sir Harry if he was responsible for the personal and ingral character of 1.C.I. agents. Sir Harry: I am afraid not. "SPY" AS AGENT FOR

12 COMPANIES

What applied to phenol could be " law without some previous agree with each arrangements they had likely to materialise in those parts international spy; that he had acted

in me of war.

ho

Sir Harry: Of course, it could be

Sir Philip: Under the

present licensing system, you do try to get the biggest orders possible from any part of the world. These orders are

most troubled by the fear of war?

Sir Harry: Yes.

Philip: You do hesitate as

örders 7-Emphatically yes we do.

TRYING TO SOLVE

Sir Philip referred to one man and said, "Do you know that he was an

as agent for twelve different com- panies; that he was used by the Ger mana to mine Dardanelles and

done, but I do not think it would be good piness men to promote these Heligoland and that ba dan Working

t is quite as easy, I take it, to evade to-day

nent as with one 7 said of other, organie substances. Mr. Mitchell: I should say it is

With so much to be achieved in the nsier. field of organle chemistry, in humant- Sir Harry McGowan, replying to tarian and remunerative industrial "rofessor Gutteridge, said that only directions, it was obvious that thene of the subsidiary companies which company would not be prepared waste time and

en poison gases

and other lothal

to

balances. It was well known that chlorine was used in the carly days of the war for gau attacks. It had not to be over- looked that chlorine, apart from its Important role in peaceful pursuits, afforded in the form of bleaching now- der the only efficient means of decon- tamination after a mustard gas at- tack.

Consequently it was a defensive weapon of the highest value, not only to the military, but possibly also to the civilian population

Mustard gas was not produced by the 1.0.1.

1.C.L, nor was any other lethal gas

for offensive purposes,

van in Canada manufactured cannon.

Professor Gutteridge: It has been suggested that one, way evading Government regulations in to pass on to some company of that-kind an order which they will execute.

Sir Harry: It cannot be done. JARDINE ENGINEERING

COMPANY

possible but not probable.

Dame Rachol: You don't think that is a danger?-It may be, of course.

FAR EASTERN QUESTION”

were

in close association with Von Papen in the United States before the end of the

war?"

Another representative of IC.L

Ponta.

Sir Harry read a letter written to replied that the man was never agent She was asking further questions when the chairman remarked, "It is a South American representative re for I.G.I., but was appointed by Du of always possible to commit a crime." lating to an order in which it was Later Sir Philip Cibbs asked: emphasised that the LCL Why In it you desire to keep secret anxious to avoid foreign countries and confidential the names of cer- having supplies of explosives need tain frms with whom you have lessly. been dealing Sir Harry McGowan: I think that Is a commercial practice.

Dame_Rachel Crowdy asked_Sir. Barry about the Jardine Engineer, ing Corporation, a company seling ALCI. agents in the Far East. 'and she said that they were also agents for Vickers, and 1! had been written

of them: "This is established company in the military

"Do

work direct with this concern, or do Vickera act as your liaison officer?” she asked,

There was a long standing instruc-

веден that they tion within the company should not do so except at the direct request of the Government.

you

an

Alluding to one letter, which said: "L.C.I. are trying to solve the Far Eastern question," Sir Phillp asked asked

WITNESSES' PROTEST AGAINST SECRECY

Another question asked was what was the agreement between I.C.I. and German companies.

Mr. Rodgers said that there was a technical association, but definitely none of a military character, The Commission adjourned.

Route To El Dorado?

the British company, though contrary Mystery Ruins Which May

(4) Solicitation for Ordera--It is claimed that, so far as Messrs. Vickers

State-owned factories alone would

Signed by persons who have never be quite expable of meeting the Sir Harry: Direct with Jardine. demands of this country and of the Damo Rachel then asked about given evidence before the Arms to the national interest? Empire in the of

event a great war. arrangements concerning the export Commission. a letter by the Much greator benefit and security of explosives to China, and Sir Harry National Pence Council refers to could be obtained from the establish said that it was always done on the Messrs. Vickers: unpublished ment of a permanent supervisory authority of the, Nanking Govárn- body to co-ordinate private-manufacment.

answers to questions.

A

Be Milestones are concerned, there is no general practice of soliciting for orders for the Africa is claimed to have been An ancient gold route through armament material. Only where it

Is definitely known that the Govern- found by a Southern Rhodesian

ture and provide auxiliary help in At Berlin the Government had After expressing the view that ment is in the market for a certain prospector. factories where the demand was likely purchasing commission. Only once "relevant information which concerns type of material, and where the agent to be in excess of the capacity of wore they allowed to make one ahip major issues and does not affect of the company so recommends, doce 41 years' experience of prospect

ment direct to Canton, and that was national security should be published," the company send

Chinese Embassy in London. HONGKONG

private concerns.

CHANCES FOR

CORRUPTION

Sir Harry McGowan said that the suggested supervisory body would be a kind of shadow Bfinistry of Muni- tlons.

A further statement was put in on behalf of the company in reply to

questions which the Commission had

put to them as to subsidiary com-

panies under their control.

Sir Harry had replied to the nine! questions pot by the Commission, but gave certain information condition that it was not madej pablic.

on

"Any military requirement, such as we supply," Sir Harry had stated, "is

open to public tender, and even agents can afford it or favour tlie

tlas for bribery and corruption.

Mr. A. Macneilage, who has had

other abroad,"ing in the colony, and who has

that the agents are paid on a Rings.

technical

verust returned Home from a six however,

on the authority of a letter from the the jetter suggests the following ques- Messrs. Vickura admitted, ommian-months' expedition in the south-

CONSIGNMENTS

tions for further examination: (1) National Armament,

It is admitted int competition has on baels as a general practice, the western part of Southern Rhodeain, been to a great extent eliminated in commission being paid only upon his put forward # remarkable Consigaments were never sent to the iron and steel trade, and that, for orders actually received: the agents theory.

Interior from there..

of workers.

in France, while their mater

(2)

Armament

Con

in

Hongkong to be forwarded to the ring no longer exists. Is the ex. learn "that the Government of that babwe Ruins along a line drawn supplies of armour plate, competitive have to inform the firm when they He states that from the Zim- Sir Harry and other officials of the Isting governmental costing systems an country is considering or has decided south-east to Sofala I.C.I. were questioned by Sir Ken- adequate gaurantee for the taxpayer? to make purchases." Solicitation for tuguese cost heals on the Por neth Lee on the point of conscription (A similar question will, we bebeve orders is surely inherent in this sys-ruins each a day's march apart.

ariso later in connection with airerađi tom.

(B) Stimulation of Demand for These, he propounds, are the re- and munitions.) Professor Gutteridge said the

that mains of resting-places, some of claimed question of variation in wages was

Armaments,-It International A very kors point during the war. Rings. It is stated that "Vickers. Makes do not in any case them semi-fortified camps, which stimulate a demand for armaments were once used in the transporta- He knew of men-soldiers who Ltd, and its subsidiaries and were working in a tenperature of es are not members of an internatio this consistent with the firm's record workings of Rhodesia to the coast. which would not othewise exist. Istion of gold from the ancient 100 degrees attending to furnaces al armaments

neither do they ring, at control any foreign companies watso-as regards, the building of the Japan-

Zimbabwe, in his opinion, : "WAS home were getting £10 a week on over by ahareholding, by nominations 80 and Chinese navlen before the war, the chief town' and centre, wherė : munitions.

of directors, or by agreements," Can the arming of the Chinese provincial If the British soldier had not been this claim be reconciled with such governments after the war, the sale gold from all parts of Rhodeala method there are but few opportun)-; the magnificent nan he was he would agreements as that between Messrs of alrernt to Japan and to China in was collected before being trans-

Vickers and the Electric Boat

recent

FORTS and the arming of ported by slaves along the route We are not going to claim that fessor.

not have stood for this, said the Pro-and with correspondence arising out South American States, particularly to Sofnin, where it was loaded on never has any of our agents passed | Bir Kenneth Les: If such a thing referred to by previous witnessez beton in War-time. What answers Macneilage was equipped with a

of this agreement, which has been

to ships. een Bolivia and Paraguay after 10287

(6) Expansion of Arms Produe- an nome of his commission.

On his recent expedition. Mr. as conscription of workers happened fore the Commission? Can It be "We do not know nor do we ap- it could not be said of anyone that reconciled with the firm's agreements apart from summary rejection would geological map of the country, and prove or consent, but the average rate they were desirous of war. Every-with Remingtons, Colts, Schneider, Messa. Vickers (and other firms con- with a comprehensive report by of commission paid proves that there body. would-be on the same footing. Botors, Skoda, Kruppe, oc,, whiels are corned to defend the present system) two prominent geologists Past Is but little scopo for irregularities." It would mean that the managing listed on page 32 of the evidenca sub make to the detailed arguments, of the site of the Birchenough Bridge

Sir Harry, replying to the chairman, directors and workers knew what was mitted by the Union of Democratic several witnesses, tending to show that said that no mustard gas or other in store for them. lethal gases had been produced

exist the existence of a private armament le pegged a claim at an ancient Control (Similar agreements Sir Harry McGowan (Interposing): In the chemical industry.) them since the war. There had been I cannot imagine any managing direc-

industry would not really facilitate working, which he thinks Was

Bo export.

"None of our research people" ho for Eis own financial benefit.

tor doing his best to stimulato War (3) Investments in Foreign Arma. rapid expansion of armament produc-probably in use. 8,000 years ago.

tion in time of war? |ments Firms.—It is admitted that

Further afield, at Moroawo, he The signatories of the letter are: found deposits of gold and tung- said, "In busy on polson gasos for usai Sir Kenneth asked it LC.L

| Mesara, Vickers have largo holdings of C. Addison, G.-Allleon, W. Arnold-sten over in war."

scribed to any of the so-called though these holdings do not amount Bailey, J. D. Bernal Fenner Brack

shares in foreign armament firma Forster, M. Corbett Ashby Gerold mile and pegged two claima

ares of half a square CANNON FACTORY-

patriotic-sociotiga.” ----

It IN CANADA

to a controlling share except in was stated, amid laughter, that

Mr. Macnellago in convinced one way Hilda Clark, Nell Hunter, that this part some years ago they subscribed £10 Investments, which are hardly of the Harry Pollitt, Rhondda II.

What is the reason for these Marley, Kingsley Martin, John Parker Rhodesia,, which, although contain- of Southern Bir John Eldon Bankee thon ques- for life membership of the Air Lea- character of normal investment? Eej W. II. Thompson, R. Mckinnon Wood, ing many ancient mines has no

Svratt, tioned Sir Harry and the other repre- gue of the British Empire, and that not the holdings mean that an intresse Dorothy Woodman. sentatives of imperial Chemical was the let

mining activity to-day, will soo Industries regarding the confidential Other L.C.I. representatives stated, Ines in Spain or other armaments in dence at provions sittings of the Com-mining of gold, copper, ellver, of foreign arnaments, eg, submar-- All these parsons have given evi.considerable exploitation in the schedule which had been put in. that they did not supply both sides Japan, may be directly profitable to mission.

tungsten, and load.

by

Bub

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