SAGHALIEN.

Press, Volume LX, Issue 18182, 19 September 1924, Page 9

SAGHALIEN.

COAL AND OIL LEASES. RUSSO-JAPANESE NEGOTIATIONS. (Br CA3LE—PRESS ASSOCIATION—COPTHIGHT) (STDNES "STO" SJ&VICE.) (Received September 18th, 8.10 p.m.) TOKYO, September 17. The Foreign Minister has informed Cabinet that unless Russia changes her attitude within a day or two, and accepts Japan's Saghalien. proposal regarding tho leasas of collieries and oilfields, negotiations wHI bo broken off. He sent the Soviet Ambassador an ultimatum yesterday, to which Moscow has not yefc replied. JAPAN'S AIM. "MONROE DOCTRINE FOR ASIA » Japan must, evacuate Saghalien, or break her word to the Allies (wrote tho Japanese correspondent of tho •'Morning Post", a couple of months ago), and she does not desire to do .so without a quid pro quo, which, in this case, means oil concessions. Not that Japan is in such sore need of oil, as some would suggest, for she has olenty of oil nearer home, but she desires to eliminate the possibility of concessions there to Western Powers, and so maintain her policy ox a Monroe doctrine for Eastern Asia. Negotiations have been under weigh on this matter for nearly two years, first in Tokyo and now in Peking. The Soviet feels that to concede any tangible interests in Russian _ to Japan would be tantamount to giving ■ her a lien on such territory, which would ultimately mean possession, as is practically the case in China. Japan already possesses the southern half ol tho island; and it is natural that she should desire to have the whole, as originally the island was hers, and was acquired by Russia only through deceiving Japan into accepting the worthless Kuriles. If Janan does not wish to share Saghalien with Russia much less does she desire to share it with any other country. The island has valuable coal mines, timber ■ limits, and furs. Tfie petroleum deposits are being prospected, but are not yet developed. The concessions for petroleum prospecting, granted to the American Sinclair Company, before Russia began negotiating with Japan, are a violation of Japan's policy oi preventing further concessions to Western nations in Eastern Asia. This the Soviet has been hesitating to accept, sinca it is in the presence or tho American company that Russia finds a sense of security. As the American company has not yet invested much capital in prospecting its concessions in Saghalien, while Japanese companies have already spent millions in this work, Japan contends that the occidental company can be compensated and dismissed. It remains fco be seen whether the Soviet has consemted to this. . To supoose that Japan is dependent on Saghalien for oil, however, is a mistake, for Japan's own wells are f ar more productive than Saghalien I can hope to be for a considerable time to come. Japan annually imports oil to the volume of some 110,000,000 pallons., and tho value of over £1.000.000 chiefly from America and Java, but the home output is fully equal to this, ir not now greater.