HC Deb 19 June 1951 vol 489 cc245-52
The President of the Board of Trade (Sir Hartley Shawcross)

With the permission of the House, I should like to make a further statement on our trade with China. Hon. Members will recall that, in the course of the debate in Committee of Supply on 10th May, I said that we were keeping under review the whole question of exports to China, taking into account the proposals which were then under consideration by the Additional Measures Committee of the United Nations.

The Resolution passed by the United Nations on 18th May recommended that every State should apply an embargo on shipments to areas under the control of the Central People's Government of the People's Republic of China and of the North Korean authorities, of arms, ammunition and implements of war, atomic energy materials, petroleum, transportation material of strategic value, and items useful in the production of arms, ammunition and implements of war. The Resolution further required each State to determine which commodities exported from its territories fall within the embargo, and to co-operate with other States in the application of the embargo.

As a result of the review to which I have referred, the Government have now decided to impose export licence control on all goods to be sent from the United Kingdom to China and Hong Kong, and an Order has been published to-day giving effect to that decision. The effect of the Order, which will come into operation on 25th June, is that we shall be in a position to keep a close watch on all exports to China and, in the case of exports to Hong Kong, to satisfy ourselves where this seems necessary, by inquiring from the Hong Kong authorities whether or not the goods in question are required for use in Hong Kong or whether the intention of the importer is to re-export them to China.

As I stated previously, it is not our intention to impose a total embargo on trade with China, and export licences for goods which are not considered to be of military or strategic importance to China will be granted freely, subject to avail-abilities and the prior claims on our resources. On the other hand, licences will not be granted for export to China of goods which in present circumstances could be of strategic and military importance. Licences to export these goods to Hong Kong will only be issued when the Hong Kong authorities have given an assurance by the issue of import licences or otherwise that the goods will not find their way to China.

I am arranging for the list of goods for which no export licences will be granted for export to China to be included in the OFFICIAL REPORT. The goods on this list will also be embargoed for China by all British Dependent Territories, including Hong Kong. In addition, we have recommended to the Governor of Hong Kong that he should consider subjecting all these goods to import licence control. This should ensure that other countries can export such goods to Hong Kong in the confident knowledge that the goods are required for use in the Colony or for export to permisible destinations.

I should like to make it clear that the prohibited list does not involve a major intensification of the measures which we in the United Kingdom have progressively adopted since the Korean hostilities began. We are satisfied that the measures which we have been operating have been effective in preventing any supplies of substantial military or strategic importance reaching China from the United Kingdom, but we decided that it was desirable to introduce statutory controls to replace certain informal arrangements with industries on which we have hitherto relied to prevent the export to China of many types of goods of strategic importance in connection with her military operations in Korea.

Our representative in the United Nations has already reported to the Additional Measures Committee that the United Kingdom and Dependent Territories will embargo to China and North Korea any exports of goods on the list to which I have referred. I think that it will be generally agreed that the measures we are taking represent a comprehensive interpretation of the intentions of the United Nations Resolution.

Mr. R. S. Hudson

While welcoming the right hon. and learned Gentleman's statement, may I ask whether we can take it that it will not interfere with legitimate re-export trade between Hong Kong and China upon which the very existence of Hong Kong depends?

Sir H. Shawcross

I am obliged to the right hon. Gentleman for his question. As we have pointed out on previous occasions, the economic existence of Hong Kong does depend on its maintaining trade with other countries. We hope that the arrangements which we have now established will permit that trade to go on whilst assuring that there will be no re-exports to China of goods which may have any military or strategic significance.

Mr. Gammans

Is it not a fact that only one-third of the external trade of Hong Kong is now with China? May I also ask the right hon. and learned Gentleman whether he will tell the House what is the present position with regard to rubber? Is it not a fact that both from this country and from British Dependent Territories we have prohibited the export of abnormal quantities of rubber to China? To what extent has that example been followed by Ceylon, Indo-China and Siam and other countries which produce rubber?

Sir H. Shawcross

It is the fact that Hong Kong maintains substantial trading relations with countries other than China,_ although her trade with China is of considerable importance in view of the imports of essential commodities, particularly food, which she obtains from China. As for rubber, the position is that a total embargo has been placed on the export of rubber from the United Kingdom or from British Colonies to China. I should want notice of the question about arrangements made by other countries in regard to their exports of rubber direct to China, but many other countries have, I believe, adopted a similar position.

Mr. Eden

Do we understand that the United Nations have some organisation which is co-ordinating this action? Is the right hon. and learned Gentleman in touch with them and does he know what the other countries are doing to take parallel action—for instance, the Portuguese at Macao, and other countries which have just as direct a trade with China as Hong Kong?

Sir H. Shawcross

Yes; we are, of course, in very close touch with the United Nations Additional Measures Committee on which the United Kingdom is represented. Rubber happens not to have been one of the commodities included in the list established by that Committee.

Mr. Eden

I did not mention rubber.

Sir H. Shawcross

I am obliged. We are in touch with them in regard to the general embargoes, and all States which are members of the United Nations were placed under an obligation to provide information to the Additional Measures Committee, I think by about this time, as to what steps they were going to take.

Mr. Churchill

May we take it that the purport and character of the right hon. and learned Gentleman's statement today is to clarify a system which is at work in Hong Kong in such a manner as to make a more strict and effective control of all things which may have directly or indirectly a military or strategic value going from Hong Kong into China with whom the United Nations are conducting hostilities at the present time?

Sir H. Shawcross

Yes, Sir. That is the object of my statement; and the object of the policy which we have adopted, and which is embodied in the Order published today, is to ensure that the control will be tightened up so that Hong Kong will not be used as a place to which goods and commodities of strategic value can be imported with a view to their re-export to China.

Mr. Maclay

On the question asked by my right hon. Friend the Member for Warwick and Leamington (Mr. Eden), could the President of the Board of Trade state whether the detailed list of military and strategic materials which will be circulated in the OFFICIAL REPORT is agreed with any other nations involved, or is it the British Government's interpretation of the recommendations of the Additional Measures Committee?

Sir H. Shawcross

It has not been agreed in that sense with any other country concerned. It has been the subject of consultations, but it is finally our interpretation of the requirements of the Additional Measures Committee, although in fact it includes various items which were not included in the list published by that Committee, of which rubber is a notable example.

Mr. Grimond

The President of the Board of Trade has indicated that the Additional Measures Committee has made what amounts to certain recommendations. Can he say how far those recommendations have been put into effect by other countries? Is he satisfied that, apart from Hong Kong, there is not a considerable export of potential war materials into China from other places?

Sir H. Shawcross

I am not in a position to say because the time has not quite elapsed for other countries to make their reports to the United Nations' Additional Measures Committee, nor has there yet been an opportunity for that Committee to examine the reports and find out how far other countries are complying with their Resolution, but I think I can say that I have no reason to doubt that, generally speaking, other countries, Members of the United Nations, are being loyal to the recommendations of the Additional Measures Committee.

Major Legge-Bourke

The right hon. and learned Gentleman said that it was not proposed to issue any export licences for any materials which might possibly be of strategic value. In view of the fact that we have over the past years been exporting a considerable tonnage of tinplate, would he say whether tinplate has now been placed on the prohibited list? If not, why not?

Sir H. Shawcross

Perhaps the hon. and gallant Gentleman would be wise to await the publication of the list in the OFFICIAL REPORT. Some tinplate for packing foodstuffs may be going. As the hon. and gallant Gentleman knows—I think I gave the figures in an answer the other day—we have obtained a considerable supply of liquid eggs from China.

Mr. Paton

Can my right hon. and learned Friend say whether the Portuguese authorities have done anything at all to try to control imports to the Port of Macao?

Sir H. Shawcross

I am afraid I cannot answer for the steps taken by the Portuguese authorities. All I can say is that we have exercised a certain control over exports from Hong Kong to Macao to ensure that those are of a volume not significantly exceeding what is likely to be consumed in Macao itself.

Mr. Roland Robinson

Has the right hon. and learned Gentleman considered imposing similar restrictions on imports either into Singapore or Indonesia?

Sir H. Shawcross

No, Sir. We do not intend to do that so far as Singapore is concerned, although Singapore will in turn impose corresponding restrictions on her exports to China or Hong Kong.

Following is the list:

ITEMS SUBJECT TO EMBARGO FOR CHINA

1. Arms, ammunition and implements of war, including aircraft and engines.

2. Atomic energy materials and equipment.

3. Petroleum products. Crude petroleum, and refined petroleum products. Naphtha, mineral spirits and solvents.

4. Transportation Materials:

  1. (a) Internal combustion engines.
  2. (b) All motor vehicles (including tractors and motor cycles); trailers; and components and spares.
  3. (c) Rails, locomotives and rolling-stock, and parts thereof.
  4. (d) Ships and floating docks; including important parts.
  5. (e) Cables suitable for harbour defence or minesweeping.
  6. (f) Minesweeping equipment.
  7. (g) Road and aerodrome construction machinery.
  8. (h) Cranes.
  9. (i) Nylon rope and parachute cloth.
  10. (j) Containers suitable for use in storing or transporting petroleum of capacity of 4 gallons or more.

5. Metals, Minerals and their Manufactures:

  1. (a) All classes of iron and steel products (including alloy steels) up to and including 251 the finished stage and including barbed wire and steel wire strand and cable, iron and steel scrap.
  2. (b) Metals, the following and alloys wholly or mainly thereof including ferro-alloys and scrap.

Aluminium Magnesium
Antimony Molybdenum
Beryllium Nickel
Bismuth Sodium
Cadmium Strontium
Calcium Tantalum
Cobalt Titanium
Columbium Tungsten
Copper Vanadium
Lead Zinc
Germanium Zirconium

(c) Items in the following fields:—

  1. (i) Items used for the production of alloy steels.
  2. (ii) Low melting-point alloys.
  3. (iii) Metals (and their compounds) used in connection with petroleum warfare and military pyrotechnics.
  4. (iv) Special abrasives for lens-grinding.
  5. (v) Compounds constituting potential sources of metals listed under 5 (b) above.

(d) Asbestos and asbestos yarn, textiles and clothing.

(e) Strategic grades of mica.

6. Rubber and Rubber Products:

  1. (a) Natural rubber (including latex and scrap).
  2. (b) Synthetic rubber.
  3. (c) Oil and fire-resisting rubber hosing and high pressure hosing.
  4. (d) Tyres and tubes, other than those for pedal cycles.

7. Chemicals: Chemicals of importance in the production of:—

  1. (a) Chemical warfare preparations.
  2. (b) Military pyrotechnics.
  3. (c) Fuels for self-propelling missiles.
  4. (d) Additives for mineral oils.
  5. (e) Strategically important plastics.
  6. (f) Explosives and stabilisers, detonators, initiators and plasticizers for explosives.
  7. (g) Anti-freeze and de-icing preparations.
  8. (h) Fluids for use in hydraulically operated mechanisms.
  9. (i) Materials having application in atomic energy.
  10. (j) Special steels.
  11. (k) Tyres and other rubber and synthetic rubber products.
  12. (l) Refrigerants for use in tanks and submarines.
  13. (m) Smoke screens and incendiary preparations.

8. Chemicals for use in the exploitation of mineral deposits and ores.

9. Catalysts for use in the manufacture of nitric acid.

10. Chemical and Petroleum Equipment and Plant:

  1. (a) For the production of poisonous gases.
  2. (b) For the production of chemicals for explosives, propellants, etc.
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  3. (c) Equipment capable of being used for bacteriological warfare purposes.
  4. (d) Petroleum refinery equipment.
  5. (e) Oil well drilling and exploration equipment.

11. Electronic (Including Radio and Radar) Equipment:

  1. (a) Radar and other radio-location equipment.
  2. (b) Electronic devices designed or specially suitable for use in warfare.
  3. (c) Communication equipment including cables.
  4. (d) Valves and other components specially suitable for use in the above and machinery for making these valves and components.
  5. (e) Tissues for use in electrical apparatus.
  6. (f) Other materials having important applications in electronics.

12. Precision and Scientific Instruments:

  1. (a) Laboratory instruments of importance in research in such strategic fields as atomic energy.
  2. (b) Precision and scientific instruments capable of being used in the development, production and testing of military equipment.
  3. (c) Telescopes, binoculars and special optical glass.

13. Other Machinery and Accessories of the following types:

  1. (a) Metal-working machine tools.
  2. (b) Specialised types of rubber machinery, and specialised machinery for making tyre fabric.
  3. (c) Diamond tools and industrial diamonds.
  4. (d) Ball and roller bearings.
  5. (e) Electric generators and motors.
  6. (f) Compressors for wind tunnels.
  7. (g) Steel mill equipment.
  8. (h) Non-ferrous metal concentrating, refining, alloying, rolling and casting equipment.
  9. (i) Portable hand held power tools.
  10. (j) Welding machines and equipment (including electrodes).
  11. (k) Measuring and testing instruments and machines for use in engineering workshops.
  12. (l) Important abrasives.