WORLD TRADE: Cloak & Dagger Economics

On the night of May 13, 1953, a British revenue officer in Hong Kong, watching the midnight sailing of the Hong Kong-Macao ferry, spotted a man swimming in the dark water alongside the ferry's hull.

He was towing several inflated rubber bags. When the officer shouted at him, the swimmer dived and escaped. Inspectors who got the bags out of the water found that they contained American tool bits, of a type in great demand in Communist China. The Communist frogman had hoped to attach them to the ferry's hull, for the journey out of Hong Kong's territorial waters. After...

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