Chemical world This week CHINA:
Trade with credit Two weeks after the admission of the People's Republic of China to the United Nations and two months before President Nixon's journey to Peking, there is a growing interest in the effect of these events upon potential trade between China and the U.S. Although there is little agreement yet about the potential magnitude of that trade, there is a mounting consensus that one key to the effect of the two events may be China's willingness to accept credit for foreign purchases. A rapid expansion of trade between the U.S. and China will require extensive credit, says Dr. J. Mark Mobius, chairman of the trade expansion committee of the American Chamber of Commerce in Hong Kong. Addressing an American Management Association seminar on China trade, Dr. Mobius last week urged the creation of a privately financed trade fund to guarantee short- and medium-term loans and to extend long-term credit. Such a fund should contain between $1 and $3 billion, he says, but be free of government financing to minimize political complications. Currently, however, the Chinese prefer cash rather than credit transactions, so lack of credit may not be of great significance, Lawrence C. McQuade told the seminar. Mr. McQuade, who is president and chief executive officer of Procon, Inc., says that such credit is speculative but alternative sources of credit could become available. One direct result of the President's trip to China, he says, may be the opening to China of the U.S. Export-Import Bank. Eximbank could provide government-backed loans, guarantees, and insurance for trade with China, but the future of such transactions is clouded by the fact that China still owes the bank Vote in ACS election Candidates' biographies and views about the Society were published in C&EN, Oct. 25, starting on page 41. Ballots for ACS President-Elect and regional directors for Regions II and IV, which were mailed to members Nov. 1, must be returned to ACS by Nov. 29. Ballots for directors-at-large, mailed to voting councilors on Oct. 25, must be returned by Nov. 22.
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C&EN NOV. 8, 1971
$39 million for loans made before scientific bodies. Its scientists have attended only one international the Korean conflict. Another source might be the meeting in recent years, and they World Bank, Mr. McQuade tells do not publish abroad. U.S. libraries once received nuC&EN, but admission to the UN does not provide automatic access merous Chinese scientific journals, to that bank. Admission to in- but all ceased publication during dividual units of the UN requires a j the cultural revolution. Current vote within the unit, and the voting "exchanges" between U.S. and Chipattern of the World Bank is based nese institutions are one-way afon investment in the bank. The fairs: The U.S. institutions send U.S. supplies nearly 30% of the publications to China but have had bank's assets, he says, so China's nothing in return since 1966. T Chemical Abstracts once w as reaccess to the bank will undoubtedly depend upon the U.S.—which has ceiving 112 different journals from China. In exchange, CA sent ACS not yet indicated its intentions. Even assuming that financial ar- journals to three Chinese libraries. rangements can be worked out and CA has received no journals and no that potential markets develop, one reply to its inquiries since 1966. Chinese libraries are well stocked further obstacle remains. If a company wants to do business with the with U.S. journals, but most are not People's Republic, Mr. McQuade obtained directly from the U.S. In concludes, it may have to sacrifice 1964, there were 240 Chinese subits dealings with Taiwan. Given the scriptions to ACS journals. Most current political climate, you can't paid subscriptions were canceled in 1966, and ACS stopped the 40 comdeal with both, he says. plimentary exchange subscriptions in 1968. Now, there is only one subscription—Chemical Titles—to the Few scientific contacts When President Nixon visits the National Library of Peking. And People's Republic of China next the last two ACS members in China year, one area for initiation of new left the society in 1967. relations will be scientific exchange. Scientific contacts between the two FOREIGN AID: countries will be starting from a Cutback costly for CPI baseline of nearly zero, according to telephone interviews by C&EN's Substantial cutbacks in or even an Richard Seltzer with research cen- end to the U.S. foreign aid program ters, scientific societies, and science would prove costly to the chemical industry and to chemists in private libraries. Many U.S. scientists are inter- and nonprofit research and techniested in exchanges of data and pub- cal organizations. At week's end lications with Chinese investigators. the future of the foreign aid proVisits to China this year by several gram was still doubtful after the scientists have aroused hopes for in- Senate defeated a $2.9 billion Housepassed aid bill 10 days ago. Spendcreased contacts. A Committee on Scholarly Com- ing authority in the current aid promunications with the People's Re- gram is due to end Nov. 15, despite public of China was jointly estab- efforts of some Senators and the lished in 1966 by the National Acad- Nixon Administration to revive it. Out of the nearly $1 billion in emy of Sciences, Social Science Research Council, and American Coun- sales of U.S.-produced commodities cil of Learned Societies. However, financed through the Agency for Inthe Chinese "cultural revolution" of ternational Development in fiscal 1965-68 put a damper on its activi- 1971, chemicals totaled more than $172 million. This includes chemities. NAS's W. Murray Todd says that cal elements and compounds, $53.8 the committee is now trying to es- million; fertilizers, $44.1 million; tablish contact by emissaries and plastics and related products, $23.5 letters, especially through the Chi- million; pesticides, $16.5 million; nese Academy of Science. So far, dyeing, tanning, and coloring mathere has been no response. Indi- terials, $11.4 million; medicines and vidual scientists have written Chi- pharmaceuticals, $9.1 million; and nese colleagues, but also without other chemicals, $13.7 million. reply. Although the chances are slim Indeed, China is largely isolated that all of these sales will go down from scientists in other countries, the drain, there's increasing prestoo. It does not belong to world sure from Senate Foreign Relations
