FAR EASTERN CRISIS

Waikato Times, Volume 121, Issue 20253, 23 July 1937, Page 6

FAR EASTERN CRISIS

The Japanese authorities blame the Nanking Government for rejecting the requests made for “the localisation of the trouble.” The Government at Tokio, or the army commanders, want to effect a settlement of the dispute by negotiation with certain local authorities in Northern China. The Chinese Government insists upon the matter being dealt with nationally, and refuses to regard any local settlement as binding. It might appear, at first sight, as though Nanking was acting foolishly if there were local authorities who might be able to pacify the Japanese and prevent war t but the truth is that these so-called authorities, the Hopei-Chahar Political Council and the Government of the East Hopei State are both creations of the Japanese. They have put up puppets to form these bodies and naturally wjulcl be quite willing to negotiate with them, hoping that any and all demands would be quickly granted. It was reported, early in the crisis, that a settlement with these bodies had actually been made, but Nanking refused to acknowledge the right of any organisation, other than the constitutional Government, to act for China, and the chairman of the Hopei-Chahar Council also repudiated the alleged settlement. The aim of the Japanese is to dismember China by creating certain independent States in the north. They would be about as independent as Manchukuo. Some time ago Mr Sato, then Foreign Minister, said that the Nanking Government was to be treated as an equal, but he later qualified this by stating that the policy did not apply to Northern China as that "was not part of the Chinese republic. It is evident that the authority of Nanking cannot be very strong in the north for the bodies created by Japan reduced the import duties on Japanese goods and as a result Japanese manufactures, especially textiles, found a big market. Nanking held that this was a form of smuggling and made efforts to strengthen the Customs authorities. This was one of the reasons why military units were sent to the north, and that meant a threat to markets which are of immense importance to Japan. This’ is the principal economic issue underlying the trouble. If General Chiang Kaishek could establish complete control of the northern provinces then smuggling would be stopped, and Japan would have to pay the same duties as other countries must pay. The Nanking leader has succeeded to a great extent in consolidating the rule of the central Government over most of China, and if he can strengthen its authority in the north then the republic will be able to present a united front for the first time in many years.