“PRECARIOUS PLIGHT.’’

Manawatu Standard, Volume LVII, Issue 223, 20 August 1937, Page 7

“PRECARIOUS PLIGHT.’’

SITUATION IN SHANGHAI. WELLINGTON, Aug. 19. “The terrible thing is what is going to happen ,to all the foreign people and their investments in the international settlement. Their plight is certainly precarious,” said Mr S. Hutchison, Wellington, in an interview ■ to-day. Mr Hutchison for the last seven years has represented the New Zealand Government’s Department of Industries and Commerce at Shanghai, and has an intimate knowledge of the present troubles confronting the safety of the settlement, which lias been penetrated by Japanese forces. He left Chino, about three months ago on a business visit to New Zealand. The settlement, he said, was divided into two portions by the Soochow Creek, and the northern side was held by the .Japanese. Now that the Japanese hyd occupied the Broadway Mansion Hotel, which was under British management, a very delicate situation had been created.

“British, American, Japanese and Chinese live in the settlement,” lie said. “'They all recognise it as neutral territory, and realise that the peace must be kept. I imagine that, if any endeavours are made to exclude the Japanese or Chinese, the Chinese will ask why should they leave the settlement when Japanese were there, and the Japanese would say they have their own people there also who need protection. If one fires on the other the pot ’will boil over, and should the British or American people retaliate or show signs of an offensive, their countrymen will be in danger of their lives. I don’t think any League of Nations can settle this problem. It will just have to right itself somehow. “The Chinese have great faith in the International Settlement and in the French settlement,” Mr Hutchison added, “because it offers them a greater security.” No doubt there would be millions of Chinese seeking refuge, and this would add to the seriousness of the situation. The settlement was controlled by .a council consisting of five British, two American, five Chinese and two Japanese. There was a tremendous amount of .money invested by almost every nation r in and around the settlement. It was in grave danger of being lost. “In the settlement rates are not paid on any building unless it is occupied. It was just getting back to normal after the 1932 fighting, but now the nosition seems to be hopeless. Thousands of business people have left their premises. That means the authorities will receive no rates. And if the trouble keeps up for long the settlement mav easily l>ecome bankiupt. Not only would the settlement be deeply involved financially, but numerous shipping, insurance, trading and oil and petrol companies would lose heavilv. Banks, ton. Chinese, Japanese and foreign, would receive an unenviable setMck. “In fact, business generally will be in a. tremendous fix.” The position of the settlement is really very serious.