Wairarapa Times-Age SATURDAY, JANUARY 14, 1939. RUMOURS OF ECONOMIC WAR.

Wairarapa Times-Age, 14 January 1939, Page 4

Wairarapa Times-Age SATURDAY, JANUARY 14, 1939. RUMOURS OF ECONOMIC WAR.

MR. SAVAGE, as he is reported, told an interviewer m 1 Wellington yesterday that he had heard nothing official, about an intended economic war on Japan. This disclaimer had reference to a cablegram from London which spoke 01. rumours, “apparently officially inspired,” that Britain, m conjunction with France and the United States was on the verge of declaring an economic war against Japan and that the Dominions had been asked what part thej would paj r sanctions were imposed.

The last-mentioned statement plainly is discredited bj Savage’s denial. It must be supposed that if Britain had consulted any of the Dominions on the subject of economic action against Japan she would have consulted New Zealand. The possibility of such measures being taken by Britain rests, however, on something more than rumour. In the House ot Lords on December 6 last, the Earl of Plymouth, Undersecretary for Foreign Affairs, speaking with particular reference to the Japanese policy of trade domination in China, warned Japan “that her present policy was bound to have incalculable repercussions” and added that Britain was disposed favourably to give “assistance to China in connection with export credits.”

Asked if Britain would consult the United States on the question of economic measures against Japan, Lord Plymouth replied in general terms, saying that the Government constantly kept in mind “the question of consulting other governments with a view to the possibility of taking parallel action in order to protect our respective interests in China.” Lord Plymouth said also, that Britain could not consider any alteration in the position as viewed by the Nine Power Treaty, which provides, amongst other things, for an open door to trade in China.

Viscount Elibank, speaking, of course, as a private member advocated economic action against Japan and suggested four possible methods: —

(1) Denunciation of the Anglo-Japanese trade agreement of 1911 to exclude or reduce Japanese exports to British colonies. (2) Closing of Hong Kong to Japanese ships and cargoes between Japan and South China. (3) Closing Indian and Straits Settlement ports to Japanese coastal shipping. T (4) Withholding foreign exchange and credits from Japan and giving aid to China.

No visible approach has yet been made to the more positive aspects of this policy, but it has been announced that the United States is granting export credits to China, and Mr. Chamberlain intimated recently in the House of Commons that Britain was inclined to do the same. With regard to the American credits, it was reported yesterday that a contract has been concluded under which China is to import 200 American bombing planes.

That apprehensions of economic action by both the United States and Britain are entertained in Japan appears from a statement by the Japanese Foreign Minister (Mr. Arita), reported on Wednesday last, that Britain and America should be most careful against exerting any economic pressure on Japan, “since they must realise the extent to which retaliatory measures may be taken by Japan against theip interests in China.”

Whatever the limits of the action Britain lias thus far decided upon, it must be regarded as rather strange that she lias not yet consulted the Dominions on the subject. That the Dominions, and particularly Australia and New Zealand, have an. intimate concern in any action that may be taken against Japan is sufficiently obvious.