[Enclosure]
The Chinese Ambassador (Koo) to the
President of the Export-Import Bank of Washington (Martin)
[Washington,] December 18, 1947.
Dear Mr. Martin: It was indicated in my letter
to you on November 17, 1947,86 that my Government was gathering more information
which the Export-Import Bank deemed helpful to obtain for its
consideration of our application for a cotton credit filed with your
bank last July. I have now received a further communication from my
Government on this subject and hasten to transmit to you the desired
information as follows:
The cotton purchased under the 1946 Export-Import Bank credit was
allocated to government and private mills in China without
discrimination as to ownership. The beneficiaries under the former group
were: The China Textile Industries, Inc., which is government-owned, and
the Joint Office of Yung Shing Industrial Company and Yu Foong Cotton
Mill, which is partly owned by the Government through the Bank of China,
Under the 1946 credit these two enterprises
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received a total amount of cotton valued at U. S.
$13,348,186.03, or about 40% of the credit; the balance of the credit
was allocated to private enterprises. It is to be pointed out that the
afore-mentioned government-owned or partly government-owned mills
operate approximately 40–45% of the total cotton spindles in China.
None of the mills concerned, whether government-owned or private,
received any special financing for the purchase of cotton in question,
us the mills were not short of working capital in Chinese currency.
Regarding exports of cotton textiles from China for the period from
January, 1946 through June, 1947, the figures are as follows:
| Cotton yarn |
5,739 |
bales |
| Cotton cloth |
75,620 |
pieces (of 40 yards each) |
| Aggregate proceeds |
US$329,782.00
£737,667.0.0 |
It is to be recalled that during the above-mentioned
period the need of textiles for the domestic economy of China was
exceedingly heavy and it was not possible to export on a large
scale.
Since June, 1947, however, plans have been put into effect for the export
of substantial amounts of textiles. From June, 1947 to date, these
exports have amounted to the following:
| Cotton yarn |
11,742 |
bales |
| Cotton cloth |
1,313,051 |
pieces
US$6,598,539.00 |
| Aggregate proceeds |
£2,246,758.0.0 |
Rupees 413,930.00
(or about US$15,000,000 in
total) |
The above export figures represent the overall amount of cotton textiles
which China withheld from domestic consumption and shipped to export
markets. As to what part of these exports was produced actually from the
cotton under the 1946 credit, it has not been possible to determine.
In conclusion, it may be added that for the six month period ending June,
1948, the target of export in cotton textiles is set at about
US$5,000,000 and £10,000,000.
Yours truly,
[File copy not signed.]
