JAPAN'S STRUGGLE FOR OIL SUPPLIES

Auckland Star, Volume LXXII, Issue 177, 29 July 1941, Page 7

JAPAN'S STRUGGLE FOR OIL SUPPLIES

ECONOMIC WAR Democracies Collaborating In Vital Moves j United I'rr-ss Association.—Copyright. j] Rce. 12.30 p.m. LONDON, July 2S. j The Vichy Government ha.s an- : nounceel that the Japanese occupy two points on the Indo-Chinese coast ; and several points in the interior. ; The delivery of rice lrom Indo-China ' to Japan is one of the essential points of the agreement between the two ; countries. The announcement omitted any further allusions to British and : Chinese threats against Indo-China. and declared that Japan asked for these concessions on behalf of its own interests. The Domei 'Japanese) Xews 'Agency says Japan has decided to liquidate trade relations with the United States and Britain and to concentrate on trading with East Asia on ;• basis of give and take. The Japan 'Tines Advertiser"' lescribos the I'nited States a hostile leader in a grim economic battle against Japan. The correspondent of the United Press Association of Great Britain says informed circles in Tokyo have stated that action by the Netherlands East Indies might produce even more far-reaching consequences, particularly if there is a shortage of oil supplies. United States Reticent Mr. Sunnier Welles, Under-Seere-tary for State, stated in Washington that Latin -American countries are free to act in any way they deem advisable in connection with economic measures against Japan. He declined to indicate whether American oil shipments to Japan would be stopped, or to say whether Japan! was seeking military concessions in Thailand, but declared that the United States, Britain and other countries directly interested were in close consultation. Major-General Douglas Macarthur, Commander-in-Chief of the new United States Army in the Far East, has issued a warning that his forces will be ready for any eventuality and will defend American interests in that zone at whatever cost and effort. The United Press correspondent at Tokyo says nearly a panic was spread to-day among traders on ihe Stock Exchange. The Government ordered the official securities company to advance funds to check tumbling prices. U.S. Xavy in Readiness A former United States Chief of Naval Operations. Admiral William Stanley, said in Washington that the United' States Navy was ready and adequate to meet essential defence needs in the Pacific and to give Britain full support to win the Battle of the Atlantic. The United States Is reported to have made a grant of £2.500,000 to the Philippines for immediate defence purposes. It is felt in Saigon that the Japanese occupation will be without incident. Rumours of incidents between Japanese and French civilians are groundless. It is understood the Indo-Chinese Government is placing at the disposal of the Japanese most of the Saigon port installations. The French Chamber of Commerce, one of the finest buildings, is being taken over to house the Japanese staff. Several barracks in the vicinity of Saigon are expected to house troops. It is reported that the FrancoJapanese agreement guarantees that the Japanese will not touch French military installations, including coastal batteries. AMERICAN VESSELS Freighters May Be Available For Dominion Trade ■ SEQUEL TO JAP. EMBARGO Rec. 12.30 p.m. SYDNEY, this day. More American freighters proK j ably will be available for trade with | Australia and other parts of the British Empire following the I embargo on trade with Japan, said the Minister of Commerce. Sir Earle Page. Shipping men had told him that seven more freighters, and possibly five oil tankers, would be available for the Australian service. REIGN OF TERROR Sequel To Fatal Shooting Of Jap. Naval Officer INCIDENT IX SHANGHAI ! ; SHANGHAI, July 28. Numerous Europeans and Jewish refugees and hundreds of Chinese civilians were manhandled by»Jap- \ anese marines during a 12-hour ' reign of terror in the Hongkew section of Shanghai, following the fatal shooting of a Japanese naval officer in the Japanese-occupied part of the International Settlement. The shooting is supposed to have been clone by a Chinese gunman. The Japanese searched the district house by house, ousting the occupants and forcing them to stand all night in the rain. Thousands of people of both sexes and of all ! nationalities were roughly searched [by the Japanese marines. CHINESE COMMUNISTS j . I AGREEMENT WITH CHUNGKING I LONDON. July 28. The Tientsin newspaper "Yung Pao, -, which frequently reflects the views of the Japanese Army, reported to-day that the Chungking Government and the Chinese Communists have reached a compromise to end the friction between them. The Reds have agreed to support .Marshal Chiang Kai-shek to the end, placing themselves under the supervision of the Chungking Government and disbanding the 4th Route Army. The Chungking Government has agreed to subsidise the Reds by '2.000.000 dollars -> month, and .'slightly to extend the territory under Communist control.