LEAGUE ACTION IS CRITICISED.

Press, Volume LXIX, Issue 20774, 7 February 1933, Page 9

LEAGUE ACTION IS CRITICISED.

RISK OP PRECIPITATION

OP WAR.

ANGLO-JAPANESE FRIENDSHIP

RECALLED

(tfKitiD raasa asjocutior-st ttECTaio

TBLEGIWPE—COPntIOHT.)

LONDON, February 5. The "Daily Mail,? in a leading article, declares:—-

"Tiio Committee of Nineteen'® foolish action in rajecting Japan's proposals risks the disruption of the League or the precipitation of war with Japan. Britons will not allow themselves to bo entrapped in a life and death struggle with their old friend, Japan."

JAPANESE POSITION QUESTIONED.

FINANCIAL TROUBLE SAID TO BE WEAKNESS.

COULD NOT RESIST PRESSURE

BY THE WORLD

LONDON, January 22

The argument that the League o 1 Nations is powerless to act against Japau is questioned' by the "Manchester Guardian."

■ Apart from the l'aot that Japan cannot leave tue beayuts lor two yeara —although she coulu be expelled —it is uncertain, says tiio journal, whet-lier japan wuuki u« aule to ueiy Hi© leat or tue worm tor any langtn olr tirno. On the contrary, it is pointed out, her economic anu naaneial situation i® bo ditticult that u members of the League and America prohibited the export ol : munitions uua prevented Japan obtaining loans, it would be impossible loii her to ulamtaiu her resistance.

It is recalled that Japan abandoned the gold standard in 19.31, after which the yen depreciated until now it ia nearly GO per cent, below gold parity. Increased military expenditure in Manchuria and the relief of unemployed distress has prevented the balancing of the Budget, necessitating loans totalling 400,<XW,(K30 yen (£40,000,000 at pal') and the utilisation of the postal savings account of 800,000,000 yen. However, by' June last these steps bad proved inadequate, resulting in a resort to indirect inflation by the issue pf Treasury bonds, and subsequently the Government was forced to go in for direct controlled inflation by bank advances. The estimated expenditure for liW--34 is 2,833,0(50,000 yen for the army and 472,000,000 for the navy. Estimated revenue, however, is only 1,330.000,000, the deficit necessitating the floating of a 1,000,000,000' yen loan.

PRESTIGE OF THE LEAGUE.

OPINION EXPRESSED BY

" THE TIMES."

GREAT BRITAIN'S ATTITUDE

(Received February 6, 11.30 p.m.)

LONDON, February 5.

"The Times," ten an editorial, says that there is no indication of the Japanese conceding point? which they' throughout declared essential, unless some scarcely conceivable eleventh hour change occurs. There is no ground for suspicion that Great Britain nil! not adhere to the Covenant. She will d® nothing to weaken the keagua's prestige. , . , , The League, which is not a supers State, has don® everything possible. It never had >t in its power to coerce tt Japan determined to follow her own course. Conciliation has failed. It is now for the Assembly to make recommendations for a settlement. Th«?rt' is no reason why the Assembly's report shoukj compel Japan's withdrawal from the League, but if the machinarv for the preservation of peace i» to he safeguarded, the Covenant must bo Upheld at ail hazards.