“CO-PROSPERITY”

Ashburton Guardian, Volume 62, Issue 305, 7 October 1942, Page 4

“CO-PROSPERITY”

THE AIMS OF THE JAPANESE. EXPECTATIONS NOT REALISED. INDUSTRIES AND FINANCE. Special Correspondent, N.Z.P.AA, (Rec. 12.45 p.m.) LONDON, Oct. (3. Things are working out differently from what the Japanese expected in the co-prosperity sphere, comments “The Financial News.” The Japanese intended that a high degree of economic planning should be directed from Tokio over the conquered territories. Agriculture would he re-ad-justed. Coffee, sugar and rubber would be replaced by cotton and other textiles, exportation of minerals would be stimulated and industrial production would be concentrated in Japan, the principle of the international division of labour would be enforced, the currencies in all Japanese-controlled countries would be based on the yen, various currencies having a yen balance in Tokio and the Bank of Japan would have a central g'old reserve to secure the yen,. a steady price level would be maintained throughout extensive control of prices and Tokio would become the international finance centre.

The paepr states: “Although information from recently-conquered countries is scanty, it is sufficient to .show that in practice matters are developing very differently from the way envisaged in theory. It may be easy to reduce the, growing of calie sugar and ’rubber but the growing of cotton cannot be expanded by a stroke of the pen. A gigantic effort is needed to repair the devastations of the scorched earth policy which put out of action mines and oilfields. It will be some time before the Japasese can replace American and European engineers formerly employed, also to provide the necessary machinery and equipment. “Lack of facilities for transport prevents Japan developing international division of labour, On the contrary, many of the conquered, countries are forced to become self-sufficient to save shipping space. “Judging from the degree of devaluation forced on certain of the conquered countries their currency is likely to be stabilised at an undervalued level, resulting in the Japanese deriving considerable advantage at their expense' from over-valuation of the yen. It will be no easy matter to build up a big gold reserve for the production of gold within the coprosperity area is limited. If Japan wishes/ Tokio to become an international finance centre she is going the wrong way by borrowing from the subject races, instead of lending to them. Altogether, when one goes behind the barrage of words to find the fact all the information received from the conquered countries suggests that the 'native populations: are being subjected to ruthless exploitation.” “The Times” says that there are signs that the Siamese are jibbing against cd-prosperity. It is apparent that the Japanese are taking much and giving little to their reluctant allies.