HC Deb 27 January 1953 vol 510 cc106-8W
Mr. G. Longden

asked the Secretary of State for Foreign Affairs whether he will make a further statement on the closure of British firms in China.

Mr. Nutting

Her Majesty's Chargé d'Affaires in Peking delivered on 8th January on instructions a further Note to the Chinese Government on the position of British firms in China.

In a Note dated 19th May, Mr. Lamb informed the Chinese Government of the intention of British firms in China to close and requested facilities. The Chinese Government's reply, communicated to Mr. Lamb on 5th July, gave various assurances. This correspondence is set out in the White Paper "Correspondence between the Government of the United Kingdom of Great Britain and Northern Ireland and the Central People's Government of China on British Trade in China, Peking. 12th April—5th July, 1952" (Cmd. 8639).

The Note delivered on 8th January reminds the Chinese Government of their assurance that firms wishing to close could apply to the competent authorities locally, who would deal with each case on its merits and in accordance with the regulations. It points out that though firms have complied with this undertaking many of them have been unable to make any appreciable progress.

It also draws attention to the further assurance that any question relating to the termination of services of employees and workers in the course of closure would be expeditiously and reasonably settled on the merits of each case and in accordance with the regulations. The firms have, however, encountered many difficulties in the process of trying to wind up their businesses and, in particular, have been presented by their employees and workers with demands for settlements which appear to have been unreasonable and exorbitant.

The Chinese Government have expressed a desire for the active promotion of trade relations between China and this country on a basis of equality and mutual benefit. Her Majesty's Government share this desire; and it is in the hope that practical arrangements may now be worked out to this end that they have made this further approach to the Chinese Government.