China Among the concessions made by China, the first Fer Eastern power with which the United States has negotiated under the Trade Agreement Act, 110 seperate items (listed in Schedule VIII annexed to the General Agreement on Tariffs and Trade) were of primary interest to the United States. These 110 items involve a considerably larger number of individual products; this is especially true in the case of China because China's tariff contains comparatively few items, and the number of products included in an individual tariff item is therefore greater than in many countries. On 20 of these concession items duties were reduced; on 89 items the existing duties, recognized for the most part to be generally low revenue duties, were bound against increase; and on 1 item maintenance of the present duty-free treatment, which because of the importance of customs revenue as a source of governmental income is accorded to few imports into China, was assured for duration of the agreement. China's imports of these 110 items from the United States in 1939 were valued at approximately 64,448,000 Customs Gold Units ($48,340,000). This represented about 75 percent of China's total imports from the United States in that year. On the basis of available (incomplete) 1946 trade data, the corresponding figures for that year were about 450 billion Chinese dollars ($202,500,000/). and about 52 percent.

Items of principal interest to the United States on which concessions were granted include cotton, tobacco, wheat, wheat flour, certain dried fruits, radios, automobiles, machine tools, office machines, tires, certain foodstuffs, and specified dyes.

Agricultural Products

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Tariff concessions of interest to an important segment of the United States economy were obtained on a sizable list of agricultural products. The present duties of 10 percent ad valorem on raw cotton, having a staple of 7/8 inch or more in length, and on leaf tobacco, were bound. Chine is an important market for both products. exports of cotton being valued at over $14,000,000 in 1939, and over $91,000,000 in 1946, while exports of leaf tobacco were valued at more than $5,000,000 in 1939 and at more than $19,000,000 in 1946. The present duties of 15 percent ad valorem on wheat and wheat flour, for which China has also been an important market in most years, were likewise bound against increase. These 4 commodities accounted for nearly half of United States exports to China in 1939.

Moderate duties on dried prunes, currants, and raisins were also bound, and reductions of 20 percent were obtained in the present duties on condensed milk, evaporated or sterilized milk and cream, and milk food (including dried milk). Additionally, the present duties were bound on canned asparagus, oatmeal, rolled oats, and groats, canned vegetables, and "other canned or packaged foodstuffs," a classification under which such items as packaged breakfast cereals, canned tomato Juice, canned soups, and similar canned or packaged groceries have been imported.

Automotive Products Among the more important concessions made by China were those on trucks, buses, passenger cars, tractors, and aircraft. The existing duty of 15 percent ad valorem on motor tractors, buses, trucks over 1 metric ton carrying capacity, and chassis for any of the above was bound against increase. A reduction of 16-2/3 percent was obtained in the duty on trucks not over 1 metric ton carrying capacity, and on chassis for such trucks. In the case of passenger cars, chassis for passenger cars, and motorcycles, the present duty was bound. The duty on parts and accessories for motorcycles was reduced by 16-2/3 percent, while the much lower duty on parts and accessories for motorcars and trucks was bound. The revenue duty of 5 percent on airplanes and parts thereof was also bound.

Converted at US$0.75007 equals 1 C. G.U.

Machinery and Appliances - ▲ large number of concessions were made by China on a variety of machine items and appliances. The present low duty of 7-1/2 percent ad valorem on agricultural machinery, machine tools, machine shop tools, and hand tools (wholly or chiefly of metal), was bound, as was the existing duty of 10 percent on pumping machinery. industrial refrigerating equipment, and "other machinery", a broad "basket" classification under which many types of heavy machinery have been imported. On prime movers, including such items as gas and oil engines, steam engines, end steam and hydraulic turbines, a reduction of 25 percent was obtained. A reduction was also granted on dynamos, motors, and transformers of comparatively small capacity, while the low duty on heavier electrical generating and transmitting machinery was bound.

Existing moderate duties on sewing machines, household refrigerators, and complete radio sets, including radio-phonograph combinations, were bound. On most radio parts a uniform duty of 15 percent has now been obtained as a result of a 25 percent reduction in the duty on receiving tubes and certain other parts, and a binding of the duty on loud speakers, condensers, etc. A small reduction was obtained in the duty on a broad item covering almost all office machines (including typewriters, cash registers, calculating machines, etc.), and a binding of the existing rate on office filing cabinets and systems made wholly or chiefly of metal.

Dyes Chemicals and Related Products - China, which is traditionally a very great importer of dyes, bound its present duties on aniline dyes and other coal-ter dyes, carbon black, and artificial indigo. The duties on carbolic acid, crude or refined borax, nitrate of soda, inks, enamels, paints, polishes, varnishes, pyroxylin lacquers, and unmanufactured synthetic resins were also bound. In the case of insecticides, disinfectants, and anti-biotics, such as penicillin and penicillin products, China granted reduction of from 10 to 20 percent in existing duties. The duties on most other drugs and medicines were bound against increase. An unusual item is ginseng (highly prized in China as a drug), on which the duty was also bound.

Metal Products In the category of metal products China bound present relatively low duties on aluminum foil, sheets, plates, castings, and moldings, on copper ingots and slabs, on a number of iron and steel products, such as billets, blooms, ingots, slabs, sheet-bars, bamboo steel, and decorated and plain tinplate, and on certain enameled ironware.

Wood and Paper Products - Continued free entry was provided for current newspapers and periodicals, while the duty on old newspapers was bound. A reduction of 16-2/3 percent was obtained in the duties on document paper and on many types of writing and/or printing paper, free of mechanical wood pulp, while the duty on many paper products such as office forms and paper napkins, towels, and handkerchiefs was bound. The low duty

on chemical wood pulp was also bound, as were the duties on sewn softwood lumber and plywood.

Miscellaneous Products

The present duties on tires and tubes were reduced 20 percent, while the duty on miscellaneous rubber manufactures (under which classification such items as rubber aprons, gloves, hose, bandages, bands, and sponges have been imported) was bound. Reductions of from 16 to 20 percent in existing duties on lubricating oil and grease, wholly or partly of mineral origin, are significant in view of a recent increase in duties on certain other petroleum products. Duties on leather for belting, upper leather of certain types, patent leather, undressed skins or furs, dressed and/or dyed furs, resin, asphalt, and miscellaneous building materials were bound. The duty on linoleum and other hard

surface floor coverings, which may be of special interest to United States exporters, was bound at a more favorable rate than that applicable to other floor coverings. Binding of the duty on cameras, lenses, other camera perts, unexposed film, plates, photographic paper, and a number of other kinds of photographic and cinematographic materials is significant because of the fairly substantial volume of trade involved. Other Concessions considerable number of tariff concessions, in addition to those in which the United States has a primary interest, were made which are of considerable importance. Concessions on many iron and steel semi-manufactures, such as sheets and plates, structurel sections, and pipes and tubes are of interest to the United States, &B are concessions on timber, certain forms of aluminum, asbestos, paraffin, and printing and textile machinery. Binding against increase of duties on a number of alcoholic beverages will be of interest to United States exporters in that field. The volume of China's imports from the United States of these items totaled nearly 5,000,000 Oustoms Gold Units (approximately $3,750,000) in 1939, and, on the basis of incomplete statistics, more then 35 billion Chinese dollars ($15,750,000) in 1946.