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Australia’s Wheat Trade and the Betrayal of Trust: A Case Study in Bureaucratic Failure

 
Introduction
Australia’s wheat trade with Communist China during the Vietnam War represents one of the most troubling contradictions in the nation’s history. While young Australians were conscripted to fight Communist forces in Vietnam, their government continued to export wheat to China — knowing that some of it was being redeployed to North Vietnam.
 
Warnings were issued by Kim Beazley Sr. in 1965. The consequences were experienced by seafarers aboard the Hopepeak in 1967. Appeals were made to Malcolm Fraser in 1967 and again in the 1990s. Yet bureaucrats and ministers ignored them all.
 
This paper traces the sordid mess from political foresight to lived ordeal to ignored accountability.
 
1965 — Political Warning by Kim Beazley Sr.
In The Bulletin (Vol. 87, No. 4462, 4 September 1965), Kim Beazley Sr., MP, cited a Department of External Affairs handbook, Studies on Vietnam, which confirmed that the Viet Cong were armed with Chinese weapons:
 
Beazley warned that Australian trade commissioners failed to see that commerce with China was financing Australia’s “own destruction.” He specifically identified the wheat trade as morally indefensible and strategically reckless.
 
1967 — The Hopepeak Voyage
Two years later, the contradiction became a lived ordeal. Serving aboard the Hopepeak, I witnessed firsthand how wheat shipments to China were entangled with the Vietnam conflict:
Frog‑marched off the ship under armed guard by Red Guards, accused of being a spy.
Forced to write letters under threat of execution.
Commonwealth Police met the ship in Sydney on 18 September 1967, confirming the seriousness of what had occurred.
British crew members refused to sail the ship back to China, fearing for their lives.
Despite these warnings, Australia continued to send wheat shipments, knowing some of that grain was being redeployed to North Vietnam — feeding the very forces fighting Australian, New Zealand, and American conscripts.
 
1967 — Appeal to Malcolm Fraser (Minister for the Army)
On 18 September 1967, I wrote to Malcolm Fraser, then Minister for the Army, urging him to stop further wheat shipments to China. My plea was simple: do not feed the enemy while sending young Australians to die in Vietnam.
 
The shipments continued regardless. Fraser, like others in government, chose silence over accountability.
 
1993–1994 — Renewed Appeals to Malcolm Fraser (Prime Minister)
Decades later, I telephoned Malcolm Fraser in April 1993 and again in April 1994, reminding him of the contradiction and the personal ordeal I had endured. By then, the consequences were long established:
Wheat shipments had gone ahead despite warnings.
Australian conscripts had fought and died in Vietnam.
Bureaucrats and ministers had ignored both political foresight and lived testimony.
My appeals were met with indifference. The government remained unwilling to confront its past mistakes.
 
The Broader Pattern of Bureaucratic Failure
The wheat trade episode fits into a wider pattern of bureaucratic negligence in Australia:
The Ericsson AXE Exchange Scandal — regulators ignored systemic telecommunications faults, leaving businesses crippled.
The corrupted COT arbitrations — bureaucrats allowed Telstra to run the process, conceal evidence, and destroy small businesses.
The Robodebt scandal — officials ignored legal advice and harmed vulnerable citizens.
The Home Insulation Program — rushed implementation led to deaths, fires, and wasted millions.
In each case, bureaucrats failed to act, concealed evidence, or prioritised institutional interests over the public good. The result was devastation for ordinary Australians.
 
Conclusion
The wheat trade with China during the Vietnam War stands as one of the most shameful episodes in Australia’s history. Warnings were ignored. Lives were endangered. Trust was betrayed.
Kim Beazley Sr. saw the contradiction in 1965. I lived its consequences in 1967. Malcolm Fraser heard my appeals in 1967 and again in the 1990s. Yet the government chose silence, allowing bureaucratic mistakes to ruin the lives of the COT Cases, their families, and countless Australians who placed their faith in public institutions.
This sordid mess is not just history. It is a reminder that when bureaucrats fail in their duty, the consequences echo for decades — destroying lives, eroding trust, and staining the nation’s integrity.
 
References
1. Beazley, Kim Sr. The Bulletin, Vol. 87, No. 4462, 4 September 1965. National Library of Australia.
2. Smith, Alan. Personal testimony aboard the Hopepeak, September 1967. Commonwealth Police interviews, Sydney.
3. Correspondence to Malcolm Fraser, Minister for the Army, 18 September 1967.
4. Telephone appeals to Malcolm Fraser, Prime Minister, April 1993 and April 1994.
5. Absentjustice.com archives: Ericsson AXE Exchange faults, COT arbitration evidence.
6. Royal Commission reports: Robodebt (2023); Home Insulation Program (2014).
 
 

British Seaman’s Record R744269 -  Open Letter to PM File No 1 Alan Smith's Seaman

The Canadian Government and Its Moral Code of Ethics

By hovering your mouse over the Canadian flag image below, you can also learn about the strong ethical principles upheld by Canadian seamen. Despite facing significant challenges, they believed that sending wheat to Communist China — especially when that wheat was being redeployed to North Vietnam, a country at war with Australia, New Zealand, and the USA, where hundreds of troops were being killed or maimed — was immoral and unethical, and therefore should not have continued.

Yet the Australian Government made a conscious decision to maintain its trade relations with Communist China, despite knowing that a significant portion of Australia’s wheat was being diverted to North Vietnam. This wheat was not merely a trade commodity; it had the potential to sustain North Vietnamese soldiers who were directly engaged in combat against Australia and its allies during the conflict. The ramifications of this trade raised serious ethical questions about supporting a nation that was opposing Australian, New Zealand, and USA forces.

 

Canadian Flag - Absent Justice

 

There is a striking and thought-provoking similarity between my narrative of the Chinese Cultural Revolution and the Canadian perspective on democracy, as well as the fundamental concepts of right and wrong that underpin them. This connection is compellingly illustrated in Tianxiao Zhu's meticulously crafted 2021 paper, developed as part of his PhD requirements at the University of Minnesota. During my extensive research for my first manuscript — which ultimately inspired the launch of the website absentjustice.com — I fortuitously discovered Zhu's insightful work. His paper sheds light on a significant trade that took place during the chaotic and turbulent period I was examining.

Among the many footnotes and references in his research, one stands out: the ship Hopepeak. This name resonates deeply with me, evoking memories tied to my own experiences. According to my British Seaman's Discharge Book, I served as a crew member during that harrowing era, navigating the treacherous waters of Red China. It was a time marked by widespread famine and profound suffering, creating a stark backdrop to the life-and-death decisions being made. Without the vital trade relationship with Australia during this perilous time, the starvation rates in China would have reached unimaginable levels.

In essence, the Australian government faced an agonising moral dilemma — weighing the lives of its soldiers engaged in the conflict in North Vietnam against the desperate need to provide sustenance for an entire nation teetering on the brink of starvation. This heart-wrenching choice highlights the often-unseen complexities of international relations and humanitarian crises, revealing the painful calculations made in the pursuit of survival.

Footnote 169 → FOOD AND TRADE IN LATE MAOIST CHINA, 1960-1978

Tianxiao Zhu's Footnotes 83, 84, 169:

In September 1967, a group of British merchant seamen quit their ship, the Hope Peak, in Sydney and flew back to London. They told the press in London that they quit the job because of the humiliating experiences to which they were subjected while in Chinese ports. They also claimed that grain shipped from Australia to China was being sent straight on to North Vietnam. One of them said, “I have watched grain going off our ship on conveyor belts and straight into bags stamped North Vietnam. Our ship was being used to take grain from Australia to feed the North Vietnamese. It’s disgusting.” 

84. The Minister of Trade and Industry received an inquiry about the truth of the story in Parliament, to which the Minister pointed out that when they left Australia, the seamen only told the Australian press that they suffered such intolerable maltreatment in various Chinese ports that they were fearful about going back. But after they arrived in London, Vietnam was added to their story. Thus the Minister claimed that he did not know the facts and did not want to challenge this story, but it seemed to him that their claims about Vietnam seemed to be an “afterthought.”

169. "...In Vancouver, nine sailors refused to work on a grain ship headed to China: two of them eventually returned to work, and the others were arrested. Just when the ship was about to sail, seven more left the ship but three of them later returned to work. In Sydney, six Canadian sailors left their ship; they resigned and asked to be paid, but the Australian immigration office repatriated them. At that time, a grain ship usually had crew members of about 40 people. A British ship lost the Chief Officer and sixteen seamen, who told journalists that if the ship were going to the communist countries, they would rather go to jail than work on the ship."

Examining this wheat agreement made with the People's Republic of China during the Menzies government in the mid‑1960s is essential. This controversial deal had significant implications that were obscured by a government campaign to discredit British and Canadian merchant seamen — including me. These brave individuals tried every conceivable legal way to expose this illicit diversion of wheat to North Vietnam.

Instead of receiving praise and support for their stance, they were slandered by the Liberal Coalition government of the time. Twenty-seven years later, the same government allowed five Australian citizens — out of twenty-one who had faced similar challenges with Telstra — to have their arbitration claims assessed by the Senate under a litmus test scenario. If the Senate ruled in favour of the litmus test case, the remaining sixteen claimants would be treated equally in that agreement. However, the Coalition government did not honour this understanding. (Refer to An Injustice to the remaining 16 Australian citizens).

The Coalition government followed with a similar campaign, reminiscent of the slanderous tactics they employed during the Communist China episode in 1967. They labelled the claims of the sixteen COT cases as frivolous and referred to the individuals involved as vexatious litigants.

 

Absent Justice - The Peoples Republic of China

 

A Far More Complex and Alarming Story
But let’s take a moment to consider the gravity of the situation: how does the author of this narrative — Alan Smith (me) — delve into a far more complex and alarming story that involves government officials who, much like those in the COT (Communications and Technology) story, were willing to jeopardise the lives of their fellow Australians?

These officials concealed even more pressing public interest issues that unfolded over thirty years before the events surrounding Telstra and the COT arbitrations. Indeed, some aspects of my story trace back to significant dates between 28 June 1967 and 18 September 1967, when the People’s Republic of China arrested me on dubious charges of espionage. My alleged crime stemmed from being seen with a notebook and a pen, in which I took meticulous notes on dates and times.

MS Hopepeak - Absent JusticeMy presence in China was more accidental than intentional; I served as a crew member on the British tramp ship Hopepea

Our vessel was engaged in the humanitarian task of unloading Australian wheat, which we had loaded at the port of Albany in Western Australia. This shipment was not just ordinary trade — it was sent with the noble intention of alleviating hunger in the suffering nation of China.
However, a significant and troubling twist emerged: some of this wheat was redirected to North Vietnam, providing sustenance to the very Viet Cong forces who were at war with Australia, New Zealand, and the United States (refer to
Chapter 7- Vietnam-Vietcong-2).

As a result, we may be left in the dark about the sheer volume of Australian wheat that found its way into the hands of Viet Cong guerrilla forces, who marched through the jungles of North Vietnam, intending to slaughter and maim as many Australian, New Zealand, and USA troops as possible.

The following three statements, taken from a report prepared by Australia’s Kim Beazley MP on 4 September 1965 (father of Australia’s former Minister of Defence Kim Beazley), only tell part of this tragic episode — the part I wanted to convey to Malcolm Fraser, former Prime Minister of Australia, when I telephoned him in April 1993 and again in April 1994 concerning Australia’s wheat deals, which I originally wrote to him about on 18 September 1967, when he was Minister for the Army.

📮 A Letter That Was Never Answered
In my letter dated 18 September 1967, addressed to The Hon. Malcolm Fraser and hand-delivered to the Commonwealth Police (now the Australian Federal Police), I reported a story strikingly similar to that of Tianxiao Zhu.

I advised Mr Fraser—then Minister of the Army—that the wheat dispatched to China was sent under the guise of humanitarian aid. Yet it was deeply troubling to learn that some of this same wheat was being redeployed to North Vietnam, a nation actively engaged in war against Australia, New Zealand, and the United States.

How could Australia justify sending wheat to Communist China on humanitarian grounds while knowing it was being redirected to an enemy killing its own soldiers and those of its allies?

I never received a response to that letter. Not then. Not ever. And that silence remains one of the most disappointing chapters in my long fight for truth.

The sacrifice   

Absent Justice - The Peoples Republic of China

Feeding the enemy

1 July 2021 — The editorial in The Australian Financial Review of August 28, 1967, argues that Australia's position on wheat sales to China was rational: https://shorturl.at/90OoP.

While the Financial Review might argue in this 1 July 2021 editorial that supplying wheat to a starving China saved millions of Chinese lives, one must also ask how many  Australian, New Zealand and USA lives were lost after Australia's wheat fed the bellies of the North Vietnamese Vietcong guerrilla's before they marched into the jungle's of North Vietnam to kill and maim as many Australian, New Zealand and USA soldiers as they could.

I reported to the government that Australian wheat shipped on humanitarian grounds to the People's Republic of China was being redirected to another communist country under the cloak of humanitarian aid. This raises serious questions about the legitimacy of shipping food to a country under the guise of humanitarian assistance while that country is killing and maiming the soldiers of the country who are supplying this humanitarian aid.

In December 1967, Trade Minister Sir John McEwebecame Australia's 18th  Prime Minister. Other Australian Prime Ministers, namely John Howard, have more recently misled and deceived Australian citizens concerning the Iraq War. This misleading and deceptive conduct has harmed many Australians. The government's refusal to acknowledge what happened in China while delivering Australian wheat is a matter of public interest and should be addressed. I hope my website, absentjustice.com, will achieve this. 

In early September 1967, members of the Hopeprak crew, including me, took urgent action after we observed the disturbing reshipping of Australian wheat destined for North Vietnam. Recognising the potential implications of this situation, we promptly notified the Seamen’s Union in Australia and the Labour government at the time. Our direct accounts of the events drew considerable attention from the Australian Senate, as once documented in the Senate Hansard on September 6, 1967 - https://shorturl.at/ovEW5(but has since disappeared from Senate records)

This statement is significant to feature on the absentjustice.com website because it underscores Mr Aldermann, the Primary Industry Minister, 's assertion that the Australian Government appeared unconcerned about the ultimate destination of Australia’s wheat. Alarmingly, it was likely being sent to the North Vietnamese Vietcong, who were in direct conflict with Australian, New Zealand, and American forces during the Vietnam War. I feel compelled to share this statement to highlight the character and priorities of many of Australia's Liberal Coalition politicians. These politicians have consistently overlooked or dismissed the truth surrounding the COT (Contractor's Outrageous Treatment) issue, raising serious questions about their integrity and commitment to accountability.

This Hansard https://shorturl.at/ovEW5 shows Dr Patterson (a minister in opposition) asking Mr Aldermann, the Minister of Primary Industry. 

"What guarantees has the Australian Government that Australian wheat being sent to mainland China is not forwarding China to North Vietnam 

Mr Adermann, on behalf of the Liberal and Country Party government that had authorised this three-year wheat deal to China, answered Dr Patterson as follows:

"The Australian Government does not exercise control over the ultimate destination of goods purchased by foreign buyers"

I can only assume that Mr Alderman did not have a sibling fighting in North Vietnam when he made that statement on behalf of the Australian government.   

 

 

Image of vietcong guerilla
 

 

Image of vietcong guerilla
 

 

Image of vietcong guerilla
 

 

Image of vietcong guerilla
 

 More images

Vietcong guerilla
 
Viet Cong (VC), in full Viet Nam Cong San, English Vietnamese Communists, the guerrilla force that, with the support of the North Vietnamese Army, fought against South Vietnam (late 1950s–1975) and the United States (early 1960s–1973). The name is said to have first been used by South Vietnamese Press.

 

Absent Justice - TF200 EXICOM telephone

 

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“I am writing in reference to your article in last Friday’s Herald-Sun (2nd April 1993) about phone difficulties experienced by businesses.

I wish to confirm that I have had problems trying to contact Cape Bridgewater Holiday Camp over the past 2 years.

I also experienced problems while trying to organise our family camp for September this year. On numerous occasions I have rung from both this business number 053 424 675 and also my home number and received no response – a dead line.

I rang around the end of February (1993) and twice was subjected to a piercing noise similar to a fax. I reported this incident to Telstra who got the same noise when testing.”

Cathy Lindsey

“…the very large number of persons that had been forced into an arbitration process and have been obliged to settle as a result of the sheer weight that Telstra has brought to bear on them as a consequence where they have faced financial ruin if they did not settle…”

Senator Carr

“I am writing in reference to your article in last Friday’s Herald-Sun (2nd April 1993) about phone difficulties experienced by businesses.

I wish to confirm that I have had problems trying to contact Cape Bridgewater Holiday Camp over the past 2 years.

I also experienced problems while trying to organise our family camp for September this year. On numerous occasions I have rung from both this business number 053 424 675 and also my home number and received no response – a dead line.

I rang around the end of February (1993) and twice was subjected to a piercing noise similar to a fax. I reported this incident to Telstra who got the same noise when testing.”

Cathy Lindsey

“A number of people seem to be experiencing some or all of the problems which you have outlined to me. …

“I trust that your meeting tomorrow with Senators Alston and Boswell is a profitable one.”

Hon David Hawker MP

“…your persistence to bring about improvements to Telecom’s country services. I regret that it was at such a high personal cost.”

The Hon David Hawker MP

“Only I know from personal experience that your story is true, otherwise I would find it difficult to believe. I was amazed and impressed with the thorough, detailed work you have done in your efforts to find justice”

Sister Burke

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