AMERICAN STAND

Gisborne Herald, Volume LXVI, Issue 20002, 29 July 1939, Page 7

AMERICAN STAND

RIGHTS IN CHINA ATTITUDE OF JAPANESE MUST BE SETTLEMENT TREATY ABROGATION TR EASURY 1N DICATION (Elec. Tel. Copyright—United Press Assn.) (Reed. July 28, 2.45 p.m.) NEW YORK, July 27. With the statement to-day by the Secretary of State, Mr. Cordell Hull, that there must be a satisfactory setilcmciu of the political differences between the United States- and Japan before any new treaty may be negotiated and the intimation by the Secretary of ithe Treasury, Mr. 11. MorgerJthau, itha t the Treasury is studying means to follow up the abrogation of the 1911 commercial agreement toy action relative to the United States’ purchases of merchandise and- silver involving over £80,000,000 in the past two years, the situation created toy the United States nullifying the 1911 treaty advanced a stage further. Senator W. E. Borah, in a statement, said that he was in favour of the imposition of an embargo against the shipment of arms to Japan, but he explained that this idea had nothing to do with the abrogation of the treaty since he advocated a similar embargo against all nations engaged in war, his aim Toeing to prevent the United States becoming involved. Action by Treasury Treasury action against Japan, it was thought, might come even before the termination of the six months of notice. It is believed that the alleged Japanese subsidies on cotton and cloth exports to the United States may elicit a penalty tariff and duties here. “We take a fresh look at the countervailing duties,” said Mr. Morgenthau, but he declined to explain further.

The Washington correspondent of the New York Times 1 says that the Treasury’s gold and silver purchases have assisted Japan- in a largo measure in financing its aggressions in China, the bullion being converted to dollar balances which are used to finance the purchase of arms, and raw materials, either in the United States or Europe. The Washington correspondent of the Associated Press of America states: "The Japanese officials cannot fail to read 1 into the development a plain intimation that the platform planks of bath major parties in the Presidential election of 1940 are apt to call for firm resistance to any Japanese encroachment on American treaty or other rights anywhere in the Far East. Furthermore the abrogation move tends to offset somewhat the loss of prestige abroad which the President suffered due to his failure to obtain a revision of the neutrality law in the present session of Congress.”