Melbourne, 2 March 1961
Confidential
Without Memorandum—Wheat Sales on Terms to Mainland China
1. The Minister for Trade informed the Cabinet that the Wheat Board had received advice from the China Resources Committee1 that it wishes to buy up to an additional one million tons of wheat from Australia during the current year. Mainland China also envisages the purchase of one million tons of Australian wheat per annum in the next two years, and is seeking six to twelve months credit terms on all future purchases.
2. The Cabinet decided that there would be no political objection to the sale of wheat to Mainland China on terms which could be regarded as commercial.2
[NAA: A4940, C3287].
1 The Committee was a PRC Government body, with a base in Hong Kong through which trade contracts with foreigners were negotiated. The organisation was also referred to as the China Resources Corporation or the China Resources Company.
2 Paragraph two was amended to this form as instructed by the Prime Minister’s Department.