Controlling Commodities To China

Chronicle (Levin), 4 November 1949, Page 5

Controlling Commodities To China

Received Thursdav 8.50 p.m. NEW YORK, Nov. 2. The United States and Britain had agreed after months of discussion t;o control the sale of aviation oils and high grade petroi to Communist China, reports the New York Heral'd-Tribune's Washington correspondent. There is still no agreement, however, on a number of other export items which the Ainericah Government regarded as strategic commodities. The U.S.A. Commerce Department announced yesterday • export eontrols in \iine classifications of refined oils, chiefly aviation. Licences • for sueh exports previously were required only for European destinations with a view to preventing the sale to Russia and its allies.

j The correspondent says the British, .who had contended the banning from ' China of a long list of items was too diffieult to enforce, promised to eontroi' petroi exports through voluntary cooperation with the British oil eompanies. The American Government aimed to ban eventually from Communist China the same list of strategic commities it tried to keep from Eastern Europe. The British, however, with large eommerical interests in China were reluctant to aecept sueh a big list of prohibited goods. The British had always held that ( tight restrictions on trade with the I Communist areas would disrupt the leeonomy of the whole world. They suggested that normal trade with China was one of the best means of persuading Ihe Chinese Communists to be reasonable.