The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun TUESDAY, JULY 29, 1911. JAPAN AND "CO-PROSPERITY"

Auckland Star, Volume LXXII, Issue 177, 29 July 1941, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun TUESDAY, JULY 29, 1911. JAPAN AND "CO-PROSPERITY"

Japanese Minister of Finance has been saying that the urgent thing for Japan to do. as the result of the economic struggle against Britain and the United States, is to forge ahead towards the establishment of her "greater East Asia co-prosperity sphere." Where that "sphere" begins and ends is a matter much in doubt; its boundaries seem to be elastic, and capable of being stretched whenever the military and diplomatic situation appears to the Japanese to have become more favourable to them. It became more favourable to them after the German conquest of the Netherlands and France, and since then they have been steadily endeavouring to exploit the advantage. Their effort'-; have been directed mainly, though not exclusively, towards French IndoChina and the Netherlands: East Indies. In respect of the Indies they were not able to gain the kind of economic agreement they wished, for the Kingdom of the Netherlands is still a belligerent country, and its Government in the Indies would not increase its exports of certain raw materials to Japan, on the ground that the extra quantities Japan desired might be handed on to Germany, through Russia. The Indies Government was. of course, strongly supported in its attitude by Britain, and also by the United States.

In its negotiations with the Indies the Japanese met a Government which had both the means and the will to defend itself. In French lndo-Chma the Government seems to have had neither, and—no doubt through the dominating German influence at Vichy—it was precluded from accepting British and American support. So far has German influence and Vichy weakness gone that the Indo-China authorities have been obliged to subscribe to the fiction that their colony was in danger irom Britain, and that it was incumbent upon them to accept Japanese protection." and this despite the fact that they already know what •protection , , , means. They gained their knowledge, if they did not possess it before, when they were obliged to sign economic agreements with Japan.

Beiore the war Japans trade with Indo-China was relatively small b lfty-seven per cent of Indo-China's imports in 1939 came from Franco or french territories, and only 2.3 per cent from Japan. Oniv :j per cent of her exports went to Japan. But under the agreement" signed on May 0. Japan not only receives most-favoured-nation treatment but her staple product;? entering Inclo-China are exempt from Customs duties, or the duties are lowered below the existing minimum Moreover, payments between the two countries are to , be made in the ven itnd piastre, discarding the use of foreign exchange. Indo-China agrees to accord Japan ■special favour"' in respect of rice purchases Japanese dims are to oe admitted into trie Federation of Importers and Exporters in Indo-Chma, Japanese capital is to be admitted in agricultural miniiv and hydraulic concessions, and Japanese schools may be established' This agreement, according to a Japanese trade publication, establishes relations "on a now basis characterised by good neighbourliness" and is in accord with tnc Japanese programme or constructing the Greater East Asia Mutual Prosperity Sphere." This is the '■agreement" which has been so quickly followed by Japanese military occupation Those who are not bemused by high-sounding words will have no difficulty in deciding just what "co-prosperity" is likely to mean for any other country which is so unlucky as to fall within its influence