ECONOMIC SWORD

Auckland Star, Volume LXX, Issue 144, 21 June 1939, Page 11

ECONOMIC SWORD

WILL BRITAIN DRAW?

Powerful Influences Urging

Its Use.

PRESSURE ON GOVERNMENT

LONDON, June 10.

Britain may draw her economic su-unl-an, use it—in reply t<, the ricntsin blockade. The injury to •Japan would he twofold.

Her ability to wa<ro war would be undermined by damage to her already shrunken export trade, and fuller British support for the Chinese would mapnifv the difficulties, already tremendous, facing the Japanese armies of occupation.

Powerful influence-, here have Ion" urged that Britain should use her tremendous power to damage Japan's export trade. '

The British Government may be both unable and unwilling to maintain its opposition to economic reprisal* in the face of the calculated challenge at Tientsin to British interests in China.

The British Government would face a critical situation in the House of Commons if the Japanese were .ippeased at Tientsin by the surrender to them of the four Chinese they demand.

The nation, too. would lose prestige throughout the Kant.

The "Daily Telegraph" points out that the Tientsin blockade is the latest of a series of nlfroiits to Britain.

Others were the death of Mr. K. M. Tinkler, the Briton bayoneted at Sbsilljfhai. the arrest of Lieutenant-Colonel Spear at Kalian, the arrest -of Major Law, and interference with British shippin".

"This leaves the uneasy impression that the ant i Brit i-It incidents are being deliberately provoked,' , the "Daily Telegraph" adds.

JAP. GOLD RESERVES.

Reported Huge Fall Within A Year. RUSE TO PROVIDE CASH. Independent t'nble Service. (Received 11 a.m.) LONDON. .Tune 20. The '"Evening Standard' , diarist says that .Japan's gold reserves n year H{fo were £7">().()0().l)00. and are now £2.-».(tOO,<MKI. It is freely stated in Tokyo business circles that the Chinese war cannot be maintained for six months unless new money is obtained, hence the pressure on Britain at Tientsin on the grounds that the liquidation of American and European interests in China, which may thus be provoked, will provide much needed ca.sh.

"ON BERLIN'S ORDERS."

French Opinion Of Tientsin Blockade. LOCALE SHREWDLY CHOSEN. Independent Cable Service. LOXDOX, June 16. The French newspaper "L'Epoque" says it is difficult to see what Japan hopes to gain from her Tientsin threat to Britain and France. "Perhaps they are simply carrying out the orders of Berlin and Rome," the paper says. "Le Matin" say*: "Japan «hows a determination to put an end to the Western Power*" ext ratcrritoi ial right-; in the Fur mid a desire to cause Us to 10.-e "face - in the eyes of t lie Chinese. The «nteome will l>" of great importance to place in Asin.' , The French (I'lvenitnt'iit if closely watching the blockade developments, mid the Council of Ministers discussed the .situation yesterday. In Tokyo it is widely felt thnt Tientsin has lieen shrewdly chosen for a showdown hecaiise America lias no concession or major interest there. The United States, therefore, may not feel compelled to net with Britain and Fiance, as she did at Kulangsu last month. But the Japanese are reported to be closing the roud to the American 'barrack* at Tientsin. The American Consulate is in the British concession.

SINGAPORE TALKS

French And British Exchangee Close Secret. DEFENCE CONSIDERATIONS. (Received 11 a.m.) NIXCJAPORK, June 20. The closest secrecy is being observed here concerning the subjects to be discussed at the British and Freucp defence talks, which begin on Thursday. It is understood that the main items will be co-ordination of sea, land and air defences, joint usual and air patrols to guard shipping laws, the carrying of food supplies, a frank exchange of information on the disposition of forces and of defences, and common use of French and British aerodromes and naval stations.

VAST PROGRAMME.

RUSSIA TO AID CHINESE. MOSCOW, June 10. A vast railway building programme for China is announced by "Pravda," official organ of the Kremlin. Two thousand miles of line will be built in Western China, to develop 480,000 sc|uare miles remote from Japanese occupation. "Pravda" says that foreign materials will be made "available. It is presumed that most assistance will come from Russia. The railways will link strategic centres. The southernmost terminal will be Suifu, near the border of French Indo-China. The line will then link Kunming (already the terminus of the French railway from Indo-China) with Chungking, .the provisional capital of China. From Kunming it will veer north-west 200 miles to C liengtu. Then it will be carried i>oo miles northward to Cinnfu, the terminus of the main road from Russia into China. At no point, except behind the- screen of French Indo-China, in the south, will the projected railway system be less than 600 miles from the sea. "Pravda" reports that one section, near Chungking, is almost complete.