What the Embargo Means

How vulnerable is Red China to the U.N. Embargo?

Because of its vast land mass, its self-sustaining peasant economy, its 5,000 miles of friendly Russian border, Red China may withstand limited economic sanctions. It can feed itself, after a fashion. It can maintain lightly armed armies on its own resources. With its arsenals (especially in Manchuria) unbombed and its overland supply lines to Russia open, it can probably prolong indefinitely the kind of war it is waging in Korea. But the U.N. embargo will deny Red China easy access to important warmaking materials, will burden her already strained industrial economy.

How much trade is affected?

During 1950's first half, Red China imported $65 million in goods from the non-Communist world. During 1950's last half --the first six months of the Korean war--Red China bought $350 million worth, an increase of almost 450%. The soaring trend continued in the early part of 1951.

On Dec. 16, the U.S. banned all exports to Red China. Japanese exports are screened by SCAP to bar all but strictly civilian items. Britain claims she has never shipped munitions; but it was only two weeks ago that she got around to clamping a complete embargo on rubber shipments from Malaya and Hong Kong. A burgeoning West German trade with Red China, mostly via third countries, is now being curtailed by allied officials.

Are there loopholes?

There are three big ones:

1) Transshipment and reexport, i.e., the device whereby goods secretly consigned to China are first shipped to a third country and then reshipped to their real destination. Pre-embargo example: A fortnight ago 51 U.S.-made Dodge trucks, first sent to India, finally showed up in Hong Kong, presumably bound for Red China. The British seized them.

2) Loose definition as to which exports are aiding the Red Chinese war machine. Each U.N. member country is free to decide which goods are "non-strategic"; many of these, e.g., medicine, textiles, fertilizers, pulp & paper, will help the Chinese war machine.

3) Juggling of ship registry. Last week the British freighter Nancy Moller, under charter to a Chinese firm, tried to take a cargo of rubber into China. A British warship ordered her back to Singapore. U.S. freighters, under Panamanian registry, are also evading the embargo (see WAR IN ASIA). Panama, however, voted for the U.N. embargo, is now under obligation to curb such sailings.

Can economic sanctions be tightened?

The U.N. seems far from ready for the logical next step: a naval blockade. Douglas MacArthur had proposed it. George Marshall had shied from a unilateral U.S. blockade, chiefly because it would involve the halting of Russian and other foreign ships. Some Administration supporters are now veering toward the idea. Last week Senator Paul Douglas, after welcoming the U.N. embargo (see NATIONAL AFFAIRS), added: "It may well be we should go further and institute, a joint blockade . . ."

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