TRADE FOLLOWS ARMY

Wairarapa Times-Age, 2 July 1938, Page 9

TRADE FOLLOWS ARMY

JAPAN’S ADVANCE IN CHINA. BANKERS AND INDUSTRIALISTS BUSY. Japan’s advance in China is being conducted by bankers and industrialists as well as by battle and blockade, states the (“New York Times.” A few major items, selected from the financial pages of recent newspapers, show how the military and economic fronts in Japan’s campaign to make all East Asia her economic domain, march together. They reveal on the one hand strain and scarcity, and on the other the vigorous expansion of Japan’s productive power under the forced draught war conditions create. The Japanese are tightening their belts hopefully, since they see their economic penetration of China beginning almost within the sound of their guns. The first group of clippings marks the progress of the economic advance in China. They report the foundation in Shanghai today <of the Hwachang Iron Mining Company, capitalised at 10,000,000 yen, to exploit the iron mines in Anhwei and Kiangsu Provinces. The company expects to produce 5,000,000 tons annually after completing a five-year development programme. The Nitto Flour Company has taken over 13 Chinese flour mills along the Peking-Hankow railway with a daily output of 5,800 barrels. Coal mines in Chungkiang Province operated for the Chinese National Government by a German engineer have been taken over by the Japanese authorities in North China. The Mtsubishi interests have acquired Standard Vacuum selling rights in Shantung Province. Regulations have been issued in Shanghai requiring all Japanese proposing to engage in business in Central China to obtain permits from military, naval,, and consular authorities. Those businesses are to be controlled “in the light of .’ Japan’s national policies.” They include virtually everything above vegetable stores. The newspaper “Hochi” says the provisional Government is planning a second revision of tariffs aimed at promoting “the mutual prosperity of Japan, Manchukuo, and China.”

Manchukuo contributes industrial raw materials and synthetic oil. The Japanese-Manchukud conference decided to increase the coal liquefaction output to 2,400,000 tons annually. The present output is 800,000 tons. A pulp manufacturing company has been established in Manchukuo with a capitalisation of 100,000,000 yen. Its purpose is to speed up the exploitation of timber lands and to produce pulp for Japan’s expanding industries. Japan’s function mainly is to provide funds and to co-ordinate the nation’s efforts. Okinoby Kaya, Finance Minister, told a savings banks conference that the Government wanted the people to save 7,000,000 to 8,000,000,000 yen annually and invest a large portion of it in Government bonds, so the Government can avoid compulsory measures regarding bond absorption. But the savings banks are not asked to buy Government bonds exclusively, and may invest in industrial debentures. A steel and iron distribution council was formed to .allocate supplies, of steel. Military requirements and heavy industry will get the preference. Building supplies are restricted. The output of staple fibre in March reached a new high with 26,652,0001 b. The price of beer rose two sen a bottle, and at the same time voluntary war contributions were 370,000 yen, a new record. From these and similar items the man in the Tokio street draws the inference that the war has brought its burdens, but also opportunities, and he contrasts this condition after nine months of. warfare with the economic debacle prophesied abroad when the struggle started.