REACTION IN CAPITALS

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

REACTION IN CAPITALS

TOKIO NONPLUSSED CHUNGKING GRATIFICATION BERLIN SUSPICIOUS (Reed. July 28, 3 p.m.) LONDON, July 27. Messages from Tokio state that the Japanese Foreign Oflice spokesman to-day said that it was most difficult to gras-p tile underlying motive for the denunciation of the commercial agreement by America.

The reasons given for the step were very brief. It was highly susceptible to interpretation as a political move. The spokesman added that Japan, however, was ready to negotiate if the United States desired a new treaty conforming with the new order in Asia.

Observers in Tokio say that the American action foreshadows economic and commercial steps to combat the Japanese attempt to create a new order by force. Japanese industrialists regard the immediate effect as negligible, but say that the denunciation opens the way for more drastic action.

A Chungking message stales that the denunciation is considered as the greatest gesture ol' moral encouragement to China that any Power could make. This reaction is tempered with disappointment aver the Anglr,Japanese agreement. Paris messages stale that French diplomatic circles say the denunciation by the United Spates gives Japan six months of grace to modify her China policy. Moscow reports that Soviet political circles hope the move by the United States is the first step toward a complete embargo of all war materials to Japan. In Berlin the denunciation is described in the press as a “flank coverage for Britain to counterbalance her Tokio capitulation and one stage towards an arms embargo.”