AN UNOFFICIAL BOYCOTT

Waikato Times, Volume 122, Issue 20507, 25 May 1938, Page 6

AN UNOFFICIAL BOYCOTT

No Government has taken the extreme step of placing an embargo on Japanese goods, although in the early stages of the struggle in the Far East many organisations asked their Governments to take some such action. But in many countries unofficial boycotts were organised, sometimes by influential bodies. This was particularly the case in the United States where several national movements encouraged members not to buy Japanese goods or produce. Japan could not protest because the development was entirely non-official. And, in any case, a Government could not compel its citizens to purchase goods they did not wish to buy. This unofficial boycott, however, was of distinct interest because it represented the first concerted movement by individual consumers to direct their purchasing power away from a certain channel. Consumers make the market and if they consistently refuse to buy goods from a particular country then it will not be long before the business firms, which cater for the public requirements, will stop placing orders with that country. A report, said to be based on official figures, states that Japan’s export trade lias commenced to decline and that the movement is becoming more marked. In February exports were IS per cent, below the total for the corresponding period of last year, so that overseas credits will also have fallen. The most marked decrease is said to be shown in exports to the United States, the volume for February for the United States is the biggest market Japan has. It takes annually more than 70 per cent, of all Japanese exports of silk and silk goods. If this market is threatened, because of the concerted actions of individuals or for any other reason, then the financial problems of the Government at Tokio will become more serious. The purchases of munitions, and of materials necessary for their manufacture on Japanese account, have been very heavy, and the exports have assisted to defray the cost. If exports shrink then either other sources of credit must be found or the already reduced gold holdings must be again used. The unofficial boycott may develop into an economic weapon of immense strength. It lias been used by trade unionists at Home and in the LTiited States against the Nazis, whose forcible destruction of labour organisations in the Reich was strongly resented, but the movement to weaken Japan economically, because of her aggressive policy in China, has been the most ambitious attempt yet made. It appears to have been Surprisingly effective.