Chinese Communists Tough On Traders

Chronicle (Levin), 30 July 1949, Page 5

Chinese Communists Tough On Traders

— — ' — ■ HONG KONG, July 29. Reuter says non-Chinese passengern on the blockade-running ship Avhich reaehed Hong' Kong from Tientsin last night said the Western nations must take a flrm stand against the Chinese Communists in they wished to retain their trade and investments in China. They said foreign interests were being graduallv squeezed out, and added: "We must hit baek and hit hard." They said if foreigners continued playing the game dictated by the Communists it Avould be regarded as a sign of weakness and advantage would be taken of them. Passengers said the Communists were deflnitely discrimin ating against foreigners. This was ap^ parent both in the official treatment of individuals and in the att'itude toward foreign trading coneerns. It was exeinplifled in the recent demand from business flrms of income tax for the se cond half of 1948, This tax amounted to nothing more than an arbitrary levy irrespeetive of business done or, ability to pay. British and other chambers of commerce felt that foreign flrms Avere forced to pay more than their share. In order to pay and eseape heavy penaltios some flrms had been forced to get money from abroad or dump their merchandise on the market. Practically every businessman Avho could dispose of his eommitments and property wanted to leave Communist China. Passengers said that Sovie-t Russia was the only foreign cquntry to which the Communists shoAved a friendly (At-i. - tyde although they treated individua Russians no differently from other for eigners.