Wairarapa Times-Age SATURDAY, JULY 8, 1939. JAPAN’S DEMANDS ON BRITAIN.

Wairarapa Times-Age, 8 July 1939, Page 6

Wairarapa Times-Age SATURDAY, JULY 8, 1939. JAPAN’S DEMANDS ON BRITAIN.

0 MADE on the eve of the discussion by representatives of. Britain and Japan at, Tokio of questions arising out. of the Tientsin blockade, statements credited to the Japanese Premier (Baron Iliranuma) and War Minister (Lieutenant-General Itagaki) open up an exceedingly serious outlook in the Far EaM There is nothing new in the assertion by Japan of an overlordship of East Asia, which means simply the complete political and economic domination of China by Japan. Ihe broad aim of achieving that measure of domination has been proclaimed for years past by successive Japanese Ministries. What if} comparatively new is the unblushing revelation ol the lengths to which the present rulers of Japan are prepared to go in attempting to secure the submissive acquiescence of third Powers in Japan’s predatory design. Where outrages, and outrageous indignities in the treaty port concessions and elsewhere in China are concerned, theie have been suggestions hitherto of a distinction to be drawn between the attitude and policy of Japanese military representatives in China and those of the Japanese Government. The latest reported statements of Baron Iliranuma and General Itagaki plainly indicate approval ol all that has been done in the°blockade of the Tientsin concessions and in related activities and a determination to go as much further as may be necessary to compel the acceptance by Britain and other Powers of Japan’s pretensions in China. - Nothing less than this is to be understood from Baron Iliranuma’s statement that:— Only questions connected with the Tientsin blockade would appear on the agenda at the forthcoming Anglo-Japanese talks, but the talks would have no meaning unless Britain clearly understood Japan’s' aim of building a new order in the Far/ East. Should Britain refuse to recognise Japan’s main point and accept her claim, there will be no course left for Japan but to bieak off the talks. Making the position still clearer, the Japanese Premier has stated also that Japan will take “effective measures in selfdefence against any foreign Power supporting General Chiang Kai-shek’s regime'and directly or indirectly obstructing the creation of a new regime in Asia.” The War Minister, in his contribution, has declared that should General Chiang Kaishek’s regime collapse tomorrow, “it would be necessary to crush the anti-Japanese policy of third Powers.” Accepting these utterances as an authoritative statement of Japanese policy, no other conclusion is possible than that the Tokio negotiations are doomed to failure. In the conditions laid down by Baron Iliranuma and his War Minister the negotiations could succeed only il Britain were prepared io agree that the Japanese Government is the true and rightful Government of China and also to make a humiliating and disastrous surrender of her own commercial and trading rights in the Ear East. If the attitude of the Japanese Government has been correctly delined, it would appear that Britain will be bound to take positive measures to protect her nationals and her rights in the Ear East, including the right to determine lor herself, her relations with China. As to the nature ol practicable action, something will depend upon the possibility or otherwise of securing the co-operation of the United States and other interested Powers in resisting the outrageously arrogant demands now advanced by Japan. There is no indication yet of any general inclination on the part of the nations concerned to combine in taking the action against Japan appealed for by General Chiang Kai-shek in his message to the world on the second anniversary of the opening of the present .Japanese invasion—the imposition of economic sanctions. Even should Britain be left to act individually, however, it now seems very probable that she may be driven to lake measures of economic reprisal against Japanese trade and shipping. ’Phis policy might lead Io war, and in adopting it Britain no doubt would have Io withdraw her nationals meantime from Chinese treaty ports occupied by the Japanese. As the position has now been defined by Baron Iliranuma and his colleague, however, positive action of some kind appears to be the only alternative to a policy of ignominious surrender which would ' leave British nationals in China exposed to any outrage or indignity the Japanese liked to put upon them. EXPORT CREDITS AND DEFENCE. A - REPORT is attributed to “reliable City circles” in London that the British Treasury is almost' certain to grant export credits to New Zealand, probably £10,000.01)0. much of which will be devoted to purchasing British armaments for New Zealand defence. The (‘aided statement derives plausibility from the fact that the raising of a defence loan has been mentioned as one of the objects of the Einance Minister's visit to London and also, perhaps, from the action ol the British Government in bringing down legislation under which it will be enabled to increase largely the grant of export credits to European countries whose independence and integrity if has guaranteed. The suggested gran! of export credits for the purchase (if defence material would make some immediate contribution to the solid ion of this country’s financial difficulties, but any relief obtained of course would be temporary. The ultimate effect wo’uld be much, the same as that of raising a defence loan in London. The terms probably would be more favourable than if a loan were floated on the open market, but. as in the case of a loan, there would be an immediate addition to the Dominion’s overseas interest hill and provision of course would have to be made for redemption. The total cited would be to make il more Ilian ever necessary for the Dominion to put its affairs into such order as will (‘liable it to re-establish an adequate balance of sterling funds in London and to replenish the depleted liquid resources of the Reserve Bank.