ONLY A BEGINNING

Wairarapa Times-Age, 30 July 1941, Page 6

ONLY A BEGINNING

ECONOMIC ACTION AGAINST

JAPAN

BUT NO DESIRE TO FORCE WAR. HOPES THAT TOKIO MAY SEE WISDOM. (By Telegraph—Press Association —Copyright! (Received This Day, 11.45 a.m.) WASHINGTON. July 29. Economic restrictions applied by the United States, the British Empire and the Netherlands East Indies against Japan are believed to be only preliminary to stronger measures, which will increase economic pressure and which will be taken if Japan retaliates vigorously, or if it is seen that territorial occupation obviously .is presage to further expansion. Eoth British and American sources in Washington are convinced that Japan at present seems capable of taking only what can be taken without military opposition. The Netherlands Indies order freezing assets, which permits exports to Japan under licence, provides an intentional loophole for Japan to obtain essential supplies, although under considerable restrictions. The "Christian Science Monitor’s” Washington correspondent says there is not the slightest indication in official circles that "Washington or London took their drastic anti-Japanese action in the belief that the time had come to crush Japan, as so many people in beth countries- advocated. On the contrary. all the evidence points to a strong hope in both capitals that war will not result, at least while British and American attention is still directed to the defeat of Germany. The American public’s support for the freezing measures is almost, universal, although a few isolationists are claiming that the action is taking the country into war. Mr Walter Lippman gives p. clear warning. He says that if the freezing is insufficient to paralyse Japan, or conceivably to cause a real change in the policy of Tokio, other measures must necessarily follow quickly. “Thus,” he adds, we find ourselves on the edge of an embargo, then a blockade and then war.” VICHY STATEMENT ATTEMPT TO APPEASE PUBLIC. EFFECT OF RESTRICTIONS ON TRADE. (Received This Day, 1.30 p.m.) LONDON, July 29. The Vichy Government has issued a statement informing the public of the scope and consequences cf the FrenchJapanese agreement on Indo-China, says “The Times” correspondent on the French frontier. It aims to appease public opinion, which is showing much uneasiness at the prospect of losing yet another colony, although Marshal Petain and Admiral Darlan declared that the Empire would be defended by all means. Propaganda is attempting to show that Britain, with American help, was about to steal another colony from France. Petain and Darlan thus far have succeeded in imposing their foreign policy on the Government, but opposition is growing, even in Cabinet. In -Washington, Mr Sumner Welles said the United States had not given an assurance to Japan that licences would be issued to permit a continuance of trade. A clearance would be given to Japanese ships under present conditions.

It was announced in Batavia that all trade between the Netherlands Indies and Japan was technically at a standstill. The Netherlands Indies do not intend to close down on shipments to Japan contracted before July 28, but future exports will be regulated in accordance with Japan’s attitude. It is reported from Tok io that American business is virtually at a standstill. It is believed the Government will take over as a monopoly the business of film companies. The Sarawak Government has taken further defence measures at Meri, where the oilfields are located, and the capital, Kuching, has been declared a defence area A special police force and coastguard are being formed.