JAPAN AND U.S.

Press, Volume LXXVI, Issue 22919, 16 January 1940, Page 7

JAPAN AND U.S.

Apparent Trade Deadlock TOKYO SUBMITS PROPOSALS (united pbess associatiost—coptbighi.) (Received January 16, 12.15 a.m.) NEW YORK, January 15. The Washington correspondent of the United Press of America says that the United States-Japanese trade crisis appears to have reached a deadlock, and prospects are increasing that there will not be even a stop-gap agreement when the treaty expires on January 26. The United States is believed to be prepared to enter on a non-treaty period, without substantial changes in trade status, until it is ascertained whether the incoming Japanese Cabinet will meet the American demands. If there is no satisfaction within a reasonable time it is that Congress will be given a free - iln to act on the many anti-Japanese embargo measures, and also that the Secretary of State (Mr Cordell Hull) will extend the “moral” embargo.

The indications are that the United States is anxious to avoid anti-Japanese retaliatory measures at present. The greatest threat to Japan is that Congress may decide overnight to pass one of the six pending bills providing for an embargo on the sale of war materials. It is understood that only Mr Hull’s influence Las prevented such action. It is emphasised that the defeat of the measures would embarrass