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December 16 marked the 50th anniversary of the first export of rubber from Sri Lanka to China, coinciding with the signing of the Rubber-Rice Pact between the two countries. The Trade Agreement was concluded when the late R.G. Senanayake was the Minister of Trade. The Commissioner of Commodity Purchase at that time, A. Sama Jinadasa, coordinated the purchase of Rubber under this Pact.

The export companies associated with the first shipments of Rubber to China were CW Mackie, Shums, Shermans and Hebtulabhoys. Under the Pact, the Chinese Government agreed to pay 10 pence per pound above the international market price and purchased 50,000 metric tonnes per annum of a mix of RSS Grades 1,2 and 3.

Those were turbulent days in South East Asia on account of the Korean War and trade was conducted under trying conditions.

Due to the high risk created by the war, insurance companies in Ceylon, as the island was known then, refused to provide insurance cover for these shipments of rubber and shippers were compelled to turn to India to insure their export consignments.

Notwithstanding the strong lobby against concluding trade agreements with China at that time, the Ceylon Government extended its support to that country, a gesture still acknowledged with gratitude by the Chinese Government.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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