SEQUEL TO ALCAN

Trade with
blocked by

Trade deals with China by Ford of Canada and the Aluminum Company of Canada
were blocked (in the first case directly, in. the second indirectly) by U.S. policy, and there are
strong reasons for believing that at least 30 sit‘lar deals (kept secret from the public) have

been sidetracked by Washington. .

instead “of making inquiries
through the Canadian embas-
sy, if any such approach to the
U.S. was required, contends
Baiden.

This charge -is made in the
current issue of Saturday
. Night by R. M. Baiden, the
publication’s business mana-
ger, who demands that the
federa¥ government “must now
make a full and frank dis-
closure of the effect of U.S. pol.
icies and attitudes on Cana-
dian trade.”

Aluminum Company of Ca-
nada claims to be a Canadian
firm, but there is speculation
that actual control “may rest
with a major shareholder in
the U.S.”—thought to be Rey-
nols Metal Co. (a major
aluminum producer.)

Baiden compares the true
state of U.S. influence on
Canadian exports to an iceberg
which is nine-tenths below
water. Ford-Alcan was the
visible portion of the iceberg.
The invisible section involved
the blocking of exports of
“wheat, metals, textile and a
broad range of capital and

The Saturday Night article
comments that “it is aston-
ishing — and disturbing—that
there is so little public infor-
mation” on a matter which
vitally affects the public inter-

consumer goods.” . est.” =
When Alcan had a chance to Aluminum company does
sell aluminum to China, the most of its business with

company ran to the U.S. treas-
ury department for advice,

Britain and the United States,
and the latter is by far its

“biggest customer,

Last year, due to lack of
orders,- development at Kiti-

mat was curtailed and many —

men laid off.

Despite the need for alumi-
num order, the company re-
fused an offer by China to
buy $1,000,000 worth of alumi-
num,

So afraid of Washington’s
reaction to a Canadian com-
pany was Alcan, that it even
hedged on giving a reply to
the offer. .

Saturday Night indicates
that this has become a _ pat-
tern with many Canadian
firms and has resulted in a
loss of valuable
which would have
work for Canadians.

contracts
created

out 30,000 cars and trucks annually,

Private industry in many parts of China is being transformed into state enterprise in a
peaceful and enthusiastic way. Top photo shows rubber workers and former owners of
their factory joining in festivities to mark th’s advance to a socialist society. Lower photo
shows China’s first motor car plant, which went into production three years ago and turns

Ottawa protects US.
by phoney dump duty

Canadians are being denied the opportunity to buy cheap
and good—products from China because Ottawa has dect®
that whatever price the Chinese may offer,
reckon on its being lifted to the equivalent of the U.S. pi

The Financial Post revealed
this situation in its February
14 issue, in an article which
commented on the “dump
duty” recently applied to

Chinese brushes (PT, Febru-.

ary 13).

The second big case involves
imports of cotton “grey goods”
of superior quality which
some Canadian firms have
been buying in considerable
quantities. There is no reason
to. believe that China is
“dumping” these goods, so
customs authorities, in some-
what of a dilemma, resorted to
valuation at the price set by
the U.S.

Says The Financial Post:

“In the case of cotton grey
goods ... it was adopted
somewhat reluctantly because
it may be called’ the price of a
high-cost producer—and no-
body pretends that China is
that. ~ i

“Whatever price the Chinese
may offer, the importer must
reckon on its being lifted to
the equivalent of the U.S.
price.

Mao Tse-tung at a celebration in Peking.

_regarded in some quarters

to break into the Ca

&

the importer @

“The same thing applies,»
only -to edotton goods, but
any imports of Chinese £00

“The sudden spurt in °
imports from China has be

a new, all-out drive by P.

market.

“But sophisticated observe
with fuller knowledge of be
nese trade practices, bell
it arises from nothing me
than China’s need for foret
exchange,

“For a couple of years?
China has been selling tex
to the U.K. in quantities
least 100 times larger than¢
rent sales to Canada. ...

“The effect of the anti-dum
ing duty, however, is to $
prive China of any price
vantage over the U.S.” —

Customs inspectors at
ports, The Financial Post
have instructions to 4a
entries from China as “Su
to amendment” and they ‘
also been given a special
cedure for reporting these
tries to Ottawa immedia

lic of China.”

CLIP AND MAIL TO YOUR MLA

I wish to register my support for the resolution moved
by Leo Nimsick (CCF—Cranbrook);

“Whereas the question of exports is so important. to”
the economy of British Columbia; dud
And whereas China, due to geographical position, is a
natural avenue for trade with British Columbia:

Therefore be it Resolved, That this House urge the
Federal Government to give immediate diplomatic
recognition to the Government of the People’s Repub-

ef Te een ine a a ln wp ws wh

February 20, 1959 — PACIFIC TRIBUNE—PAGE