June 26.
STAGGERING blow has been dealt to German trade with China, particularly Shanghai, with the closure of the trans~ Siberian route, following the outbreak of hostilities between Nazi Germany and' the Soviet Union, it was learned from reli ble sources yesterday.
'A number of Germans who were hoping to return home and who were awaiting visas from the Soviet Embassy in Tokyo are virtually stranded here.
The last world war saw German trade in China suffering a severe setback with British and allied Arms doing an unprecedented amount of Dusiness. A reversal was seen since the present conflict began, with the Germans playing almost a dominant trade role, via the Siberian overland route. Iiformed sources declared. that the Customs figures did not reveal half of the trade actually done by German merchants with head~ quarters in Shanghai.
Through Other Hongs properly accredited representatives of the Soviet Union here.
Mr, T. Knudtzon, Norwegian Charge Affaire in China, who was in charge of the Interests of the Soviet Con~ late here until the end of May last, yesterday told the "North. China Dally. News" that it would be reasonable now to expect the USSR. to change its attitude towards Norway, namely that they no longer considered Norway an independent state for which reason' they thought a Norwegian Legation in Moscow was no' more necessary, Imports from Germany last year totalled approximately US$5.500.000 for China of which Shanghai's share was U.S$4530,000, while official figures showed that exports totalled $245,0000 for China of which U'S$6060 was for Shanghai, While it' was stated that the official import figures were dependable, the total for exports to Germany from Shanghai, was said to be hardly compatible With actual facts. Considerable buslhess in exports was done by Germans through Japanese and Chinese firms and hongs, shipments being made via Siberia.
'The abnormally high freights levied by the trans-Siberian railway did not present' a serious hindrance to German imports as a number of [diminutive but expensive articles oe. cupying little space, could stand the charges, While imports from Germany were fon the increase and were assuming an almost predominant position in the market here, official figures released show a contrasting decline exports to Germany which supercially indicated that while she could sell her goods here and obtain for-feign currency, she was unable to obtain the sorely needed produce of China.
An investigation into the market by local economists and financial experts disclosed that considerable purchases were made for German accounts by Japanese and Chinese firms and hongs here, The. figures involved proved beyond suspicion that exports to Germany from this country were anything but the insignifant business shown on actual records.
Text read from the printed page and cleaned; old type leaves the occasional error.