APPEASE REDS' CHINA TRADERS TELL U. S., U. K.
DEVERALL, RICHARD
Appease Reds', China Traders Tell U. S. U. K. By Richard Deverall ANEW WESTERN "APPEASEMENT" POLICY in the Far East is slowly emerging under the drive of British diplomats—pushing for early...
...But this Course is part of orthodox Stalinist strategy which proceeds to Communism by certain definite predetermined steps...
...Let Us not contribute to the entrenchment of Stalinist totalitarian in Asia...
...Thg~read estate lobbyists, quickly noses, discovered that their side had a temporary majority on the floor...
...Some other reason must be found to account for the fact that, on the test vote on the Housing Bill, the Southern states provided a 13-vote margin in favor, whereas the Northern states provided a 14-vote margin in favor...
...Five Southern states split their votes, and six Northern vstates split theirs...
...When an epidemic or physical disease starts to spread, the community approves and Joins In a quarantine of the patients in order to protect the health of the community against the spread of the disease...
...AImm Dane Woshington and the Nation oting on T-H, Housing Bills its Thru Mason-Dixon Line Jonathan Stout WASHINGTON...
...When the Communists took over, it was finally processed . . . for and by the Chinese Communists...
...pinning their hopes on a long Chinese NEP, and are quite undaunted by present political considerations or inevitable future economic moves...
...The United States vessel, Pres...
...ere labor will have to do its work 90 Is indicated in another aspect i Voting on Taft-Hartley, a Southern states gave both, their orial votes in support of labor, tas only four Northern states acted be...
...By the end of February, several American shippers were ready and willing to deal with the Chinese Reds if they could get the 'green light' from the State Department...
...Eight are Republicans, mainly from the East and the industrial Midwest —Frederic R. Coudert, Jr., of New York...
...A twenty-million-dollar-a-year business between Hong Kong and the Reds in the North increased greatly in 1948, as ahips flying B*iUsh, Panamanian, •Moth*Baja Hmss fffftlgjpiaift plying between Hong Kong" and the Red Korean ports of Chinnampo and Konam...
...Wt shall let shorn evolve without interference their own eeoaemlc settlement...
...Charles E. Bennett, Dwight L. Rogers, George A. Smathers and Robert L. F. Sikes of Florida...
...By mid-May, the British Government had received an appeal from the British Chamber of Commerce in Shanghai to be "realistic" about recognition of the Mao regime...
...On June 9, Foreign Secretary Bevin told the British Labor Party's Blackpool Conference: "It would not be unwise for whoever gains supremacy in China le ostracise her friends all over the world...
...On April 18, Pravda quoted Jen Pi-shih, member of the Central Committee of the Chinese Communist party as saying: "Private enterprises which are beneficial to the national economy should be allowed to exist and grow during the rehabilitation of industry...
...It would buy time for an India already disrupted by Communist fifth column activities...
...As European Communist leaders pledged allegiance to the U. S. S. R. a few months ago, the Chinese Communist party declared officially on April 3: "If the imperialistic aggressive bloc dares to provoke . . . war...
...Upon such remarks does the business-as-usual crowd base its actions...
...Meanwhile, American airlines were busy filing applications with the Chinese Communist authorities seeking to restore their services through Shanghai...
...During the past several months, these oil operations in China have been largely financed by ECA...
...The American shippers were encouraged when on June 3, their Shanghai agent reported the Chinese Reds were "eager to resume international commerce...
...The Chinese Communists will pay in gold for rail equipment, scrap iron, electrical supplies, machine tools and what else they require for medium and heavy industry — they will pay In hard cash Just as Hitler and Tote did...
...Let us think twice before strengthening the hand at Amor* tea's throat in the Far East Richard Deverall, former Education Director of the United Automobile Workers, served two and a half years as Chief of Labor Education on General Mac Arthur's staff in Japan...
...What the Senate finally adopted is now reposing in the Senate Labor Committee...
...Also, the tern states cast only 17 opposition whereas the Northern states cast position votes...
...Moscow has been working for a quarter of a century to bring orthodox Communism to China, and its policy of patience and restraint, combined with periodic militancy, has paid off...
...And Red China is counting on support by leas responsible elements of British and American business...
...The South's nay votes actually were fewer than the North's...
...The less responsible businessmen are...
...On a third r item Congress has twice rejected the demand of the people by not ling the Taft-Hartley Act...
...Stalin waited out the Japanese assaults on China, then signed a nonaggression pact with Japan in April 1941, knowing it meant war between Japan and the United States —a war Japan would have to lose...
...Also," they will be pointing out to the real estate groups and other vested interests that they voted to gut the bill...
...move...
...Antoni N. Sadlack of Connecticut...
...Twelve of this group are Southern Democrats—A...
...The British at Hong Kong have already developed a flourishing trade with the Communists in Manchuria and North Korea...
...An added fillip to this picture of "old China hands" peeking trade with the Chinese Communists was the declaration on June 24, by the Secretary of Commerce Sawyer that Americanowned scrap iron and steel overseas could be shipped "to countries other than the United States...
...Bvest seeonunondod rooognlilon for Rod ffltfna...
...American oil interests have no thought of getting out of China, will remain there as long as possible...
...Until the Communists crossed the Yangtze, the industrial areas and the large cities of Free China were subsidized by the United States...
...And Joe Keenan, director of the AFi Political Education League, made the flat assertion that the Senators and Representatives who sided with Senator Taft last week will be hearing a great deal about Taft-Hartley in the 1950 election campaign...
...At the March plenary session of the Central Committee of the Chinese Communist party, it was declared that "the peoples' democratic leadership was based on the Russian system, and it • was wise for the Communist Party of China to unite closely with the U. S.S. R. or the Cominform...
...George M. Grant of Alabama...
...Our job in the Far East today is to quarantine totalitarian Communism in Red China, not to recognise the Mao regime...
...THE MOST FANTASTIC development of all was that reported by the United Press, printed in the Tokyo Nippon Times May 4, quoting officers of some San Francisco shipping companies who said: "Trade with China is out of the question unless the- Government of the United States helps on the currency situation...
...while the 16 states in the South and Southwest voted 81 in favor, 68 against...
...Wo shall be ready to trade with them If they wiU let u...
...American traders and businessmen in Shanghai placed advertising in the local newspapers after the Communists took the city in order to curry favor with the Communists...
...Fried, "B...
...We can follow the path indicated by the British and favored by American "old China hands" recognize Communist China and permit free trade with the Chinese Communists, in the fond hope of weaning Mao away from the Kremlin...
...and Alvin E. O'Konski of Wisconsin...
...Moscow Ticker UNDER the rubric, "Critical Comments," the Soviet writers' journal, Novyi Mir (No...
...Others include the Shanghai Telephone Company (owned by International Telephone and Telegraph), Cal-Tex Oil, Standard-Vacuum Oil, Chase National Bank, National City Bank, Pan Amer. ican Air, Northwest Airlines, and smaller installations of assorted American shipping and trading outfits...
...D. C. FULL HALF YEAR HAS GONE BY and, to date, Congress has responded to the mandate of last November by passing only two pieces " of legislation the people said they wanted when they voted for Harry lan...
...Herbert Ivstt told the Australian House of ComItbf asewisHise about the oaasisU poslslan wo won to giro thi Comn mucdsta reason to think they salsjhi never expect any aid from na, wo mifbl drive ttma . . . Into eke anw of the Soviet Union...
...Robert J. Corbett and James E. Van Zandt of Pennsylvania...
...The U. S. S. R. cannot provide the machine tools, natural resources and scrap iron and steeT the Chinese Reds need so urgently...
...A LITTLE-KNOWN CUSTOM on Capitol Hill, whereby a Congressman votes on both sides of an issue so that he can go home and tell you he voted your way and then turn around and tell the other side he voted their way, was practiced assiduously on the Housing Bill...
...By April, approximately $13 million worth of this ECA cotton was in Shanghai...
...THE SOVIET UNION, still bound by the Russo-Chinese Treaty of 1945, is remaining absolutely "correct" in its official dealings with the Chinese Nationalist Government...
...On June 11, Drew Pearson reported a British proposal to recognize Red China in order to save its Hong Kong base...
...Mewever, Senator Paul Dangles of Illinois...
...tdent Fillmore, which arrived at Redheld Tientsin last February, was the first American ship to deal with the Chinese Communists...
...and L. Mendel Rivers and James P. Richards of South Carolina...
...Stalin's game was to use the Japanese invasion and the Pacific war to serve the twin aims of destroying Japanese military power and paving the way for a unified Red China...
...Such a policy would protect our military base in Japan and the resource-rich areas of Indo-China, Burma, Siam, Malaya and the East Indies...
...Soviet Foreign Minister Vishinsky's pressure in Paris for action on a Japanese peace treaty indicated that the Soviets now expect to be accompanied to a Japan peacetable by Red China...
...Shanghai's electric power company, owned by the American and Foreign Power Company, has been waiting since mid-May for a Texas Oil tanker to replenish its dwindling oil supplies...
...Food, cotton and oil flowed into China (with the ECA spending $20,000,000 per month in Nationalist China), half of it to the Shanghai area...
...But this is just a smokescreen...
...In the 1650 campaign, no doubt, these 20 Congressmen will be pointing out to the plain folks back home that they voted for the bill...
...a leader of the liberal group which made tiie sight against Taft, predicted to this reporter that another attempt will be made to repeal Ta/t-Harttey some time after next Jantutry"in the second session of the 81st Congress...
...Yakovlev (Holzman)," A. Leites...
...of humane instincts which today are creating a state of international anarchy and instability from which there is no escape through mere isolation or neutrality...
...Will this mean that scrap-hungry steel mills in Red Manchuria and Communist-dominated, industrial North Korea will be revitalized by U. S.-owned scrap acquired through British and American dealers in the Far East...
...Have those who formerly said, "We can do business with Hitler" really learned anything...
...As of June 25, the tanker Rum River was reported off Shanghai under convoy of an American destroyer...
...i Maryland, West Virginia, Tennessee, Alabama and (Oklahoma each cast two Senatorial votes for labor...
...J. Allen Freer, Jr., of Delaware, Herbert R. O'Connor and Millard E. Tydings of Maryland, and Edward J. Thye of Minnesota managed to vote first with labor, then against labs*, on the test issue of giving Federal Courts power to break strikes by issuing injunctions...
...On June 18, British Consul General R. W. Urquhart told the British Chambar of Commerce that Britain would cooperate with the Chinese lads in foreign trade, and praised the "restraint" of the Communiata, • Two day* Tatar, tit...
...Here is a representative sample of those attacked: Mark Rosenthal, B. Meilakh, I. Altman, M. Lifshits, A. Gurvich, F. Levin, G. Brovman, E. Tager, Ya...
...A month later, the highly authoritative Li Li-san, Vice-Chairman of the All-China Federation of Labor wrote: "During the period of the 'new democracy', capitalism would be necessary to develop the country...
...One airline even advertised in the official Communist organ, Liberation Daily...
...The Ninth, it states, was the spiritual forerunner of the Communist Manifesto...
...This power plant is one of our few direct investments in China, which reportedly total only $130,080,000...
...FOUR SENATORS PULLED this same kind of fast footwork on TaftHartley...
...Edward H. Rees of Emporia, Kansas, brought up his amendment to delete from the bill the provision for building public housing for low-income families...
...Let us never forget the scrap iron our businessmen sent to Japan before 1M1 which found its way into the bodies of American GI's...
...In the final Senate vote the Republican leadership, headed by Robert A. Taft of Ohio, with the help of 15 Southern Democrats, successfully stopped President Truman's second attempt in this session of Congress to redeem his campaign pledge to repeal the TaftHartley Act...
...As early as February 23 of this year, Eric Himsworth, head of the British Colonial Exports and Imports Office at Hong Kong, declared: "There ui good prospects for trade, in Horthsesi, Asia, a)} the war from Japan to Manchuria, provided it is conducted on a business basis and politics is kept out of It" The New York Times added that American traders in Hong Kong Were "worried" lest the British get the jump on them in exploiting this rich traffic with the Communists...
...Appease Reds', China Traders Tell U. S. U. K. By Richard Deverall ANEW WESTERN "APPEASEMENT" POLICY in the Far East is slowly emerging under the drive of British diplomats—pushing for early recognition of the Chinese Communists—and of American and' British businessmen, whose trade with Red China during the past several months has already compromised us throughout the Orient...
...It therefore seems obvious that the big play in China is to lure Britons and Americana with honeyed words about the "profit system" and "capitalism...
...Virginia, Georgia, Mississippi, Arkansas, Texas and Missouri cast both their Senatorial votes against labor, and it is expected that in those states labor will concentrate its efforts in the 1950 campaign...
...Only two Southern states (Florida and Mississippi) cast the total votes of their delegations against, whereas four Northern States (Maine, Vermont, New Hampshire, and Delaware) voted against...
...An ECA allocation of $15,000,000 for cotton for Shanghai was cancelled at that time, but on February 19, ECA chief Paul Hoffman ordered shipment resumed after American cotton exporters wailed they would lose money...
...The vast coal, iron and other resources of the Soviet Far Bast, China and North Korea could, given two decades of intensive development, make the Soviet republics a Pacific superpower...
...For ice," the 16 South and Southrn states gave labor 15 votes, >as the North and Midwest states labor only 14 votes...
...Commented Newtwetk on June life "Old China hands agree, and standard Marxist doctrine concurs, expropriations will some day take place...
...the whole, it appears that the i showed up better than the North pport of labor on this issue...
...These are extension of rent control, approved earlier in the >n, and passage of the National Housing Bill last week...
...In the North, only Rhode Island, Illinois and Minnesota cast both their Senatorial votes for labor, while Maine, Ohio, Michigan, Wisconsin and New Jersey were entirely opposed...
...Gerald R. Ford, Jr., of Michigan...
...Nor can it supply the rice, cotton and other foods and materials essential to the very continuance of industry in Bad China...
...But for the moment, the new rulers seem as anxious to keep American capital in China as the Americans are anxious to stay...
...The 16 states in the North-West group gave the Housing Bill a total of 113 votes in favor and M against...
...endangering the peoples in the world, we will unite the people throughout the country . . . and march forward hand-in-hand with the ally of China, the Soviet Union...
...ANY THEORY THAT this unexpected showing made by the South and Southwest is due solely to the strength of labor unions in those areas must be revised in the light of the voting record of the Hoflae of Representatives on the National Housing Bill...
...An added item of interest is that the Congressional delegations of West Virginia in the South and Rhode Island in the North voted unanimously for the Housing Bill...
...Six states in the Southern cast both their Senators' votes it labor, and six in the North did the same...
...For families who for years have felt the pinch of the housing shortage, that section is of course the heart of the Housing BilL Twenty Congressmen who later that day voted for the Housing Bill on final passage also voted for the Rees Amendment to kill the Housing Bill...
...Lloyd M. Bentson, Jr., of Texas...
...THE STATE DEPARTMENT has got to make up its mind as to what policy it will pursue in this situation...
...The odds-on betting here 4s thpf they will continue to repose where they are and so further actios wtU .hV taken in either House s* sfoate tM*\T year on the Tkft-HarU** tarn...
...4, 1949) lashes out at "rootless cosmopolitans...
...Mao Tsc-Tung has expressed his conviction that the communization of China would perforce be a step-by-step process...
...The British were conferring with American, French and Netherlands diplomats to achieve this...
...t SOVIET CONSOLIDATION of China will place a quarter of the world's population within Soviet Eurasia...
...Walter H. Judd of Minnesota...
...White labor supported the Housing Bill, it was not singularly a labor issue as was Taft-Hartley...
...Administration forces were so sure they had ample votes to pass the bill, some supporters grew overconfident and Wandered off the the floor of the House to attend to other pressing matters...
...With warm water ports, factories, munitions plants, and ample sources of manpower in the Far East, the Pacific Ocean north of the equator could be turned into a Soviet lake...
...Swiftly, Republican Rep...
...We must bar trade 'with Red China unconditionally, especially when it involves heavy machine tools and raw materials that may later be lodged in the backs of American soldiers and sailors...
...Meanwhile local Communist authorities - were talking of converting the American-owned power plants to coal so that it could operate on coal from Red Manchuria and put the mills of Shanghai back to work...
...We would commit tragic folly if we permitted money-hungry foreign traders and investors to persuade the State Department to "forget" ideology nad recognize Comunist China...
...tudy of the test vote in the Taftey fight shows that the 16 indusstates of the North and Midwest ied a larger margin of Senators st repeal than the 16 states of the i and Southwest where the Dixieare influential...
...THERE CAN BE NO DOUBT as to where the Chinese Communists stand internationally...
...The Communist Peoples' Bank of China made a loan of $100,000 in gold bullion to keep this American outfit running with oil from Britain's Hong Kong...
...Or we can continue the main line of American foreign policy, as enunciated so clearly by Franklin D. Roosevelt on October 5, 1937: "The peace-loving nations must make a concerted effort in opposition to those violations of treaties and those ignoring...
...Ogoniok, the Komsomol organ (No...
...Herbert C. Bonner of North Carolina...
...Last February, the Chinese Communists expropriated 140,000 bags of ECA flour at Tientsin...
...Some American oil installations in China are now in the hands of the Chinese Communists...
...Edgar A. Jonas of Illinois...
...spotlight on the 15 Southern cratic Senators who left their to support Senator Taft in the over Taft-Hartley repeal has 1 momentarily to obscure some leant facts...
...By this June, American President Lines was again contacting the Chinese Reds for permission to dock two ships In Red-held Shanghai...
...And they will bury the Ideological hatchet until they have what they want...
...These San Francisco advocates of "free enterprise" recommended recognition of Red China followed by a "huge dollar loan...
...But there is no reason for blaming this double-dealing entirely on the British...
...19, 1949), justifies the playing of Beethoven's Ninth Symphony at a session of the Congress of Soviets...
...Whether or not this comes to pass depends to a great extent on the United States and Great Britain...
...A Shanghai report subsequently stated: The Asneetaaa President Lines hopes that this is an augury for continued operation Into Chinese ports, despite the changing political scene...
...Leonard Allen, Overton Brooks, and F. Edward Herbert of Louisiana...
Vol. 32 • July 1949 • No. 28
