AGAINST JAPAN

Dominion, Volume 34, Issue 258, 28 July 1941, Page 6

AGAINST JAPAN

Action Taken By New Zealand TRADE AND EXCHANGE RELATIONS Full Agreement With Britain And U.S.A.

An announcement that New Zealand was taking parallel action with other Governments of the British .Commonwealth in trade and exchange relations with Japan was made by the Acting-Prime Minister, Mr. Nash, last night. He.said that the measures were being made applicable to Manchuria also, it being regarded as of assistance to China that this should be done.

“As. the people of the Dominion are aware the military occupation of strategic bases in Indo-China by Japan is a matter of grave moment to all countries in the Pacific,” Mr. Nash said, after quoting the text of a statement made in the British House of Commons by the Foreign Secretary, Mr. Anthony Eden. “The United States has reacted to this southward move by freezing Japanese assets. The United Kingdom and the other Governments of the British Commonwealth are taking parallel action, the idea being to make these measures as generally effective as possible. . “The reasons for joint Anglo-Ameri-can action against this latest instance of Japanese aggression have been made quite clear at Washington and in Mr. Eden’s statement,” Mr. Nash continued. “In presenting their demands for the military occupation of bases in Indo-China, the Japanese have made it plain they are prepared to use force if necessary, and the fact that Vichy has acquiesced without any show of resistance does not alter the fact that the naval and military bases now being occupied are in reality being taken under duress. In Total Agreement.

“In these circumstances, the response of the Governments of the British Commonwealth and of the United States has been immediate and with these reactions the New Zealand Government is in total agreement, however reluctant it may be to interfere with normal trading relations,” he said, “I have therefore to i announce that New Zealand is taking parallel action with the other govern-: ments of the British Commonwealth.

“The system of exchange control and external trade regulations in operation in New Zealanc] is such that we can take the most important step in performing the Dominion’s part of the measures simply and speedily. And I am accordingly taking this opportunity of announcing that, notwithstanding that a permit or exchange authority may already have been issued by the Reserve Bank, no remittance to any country in respect of any trade or other transaction with the Japanese Empire, or by or on behalf of any Japanese national or Japanese controlled firm, may be made without prior confirmation from the Reserve Bank. We are taking parallel action with the other parties to the agreement in making these measures applicable to Manchuria also.

“This requirement I have outlined will not necessarily result in a complete stoppage of exchange transactions, but in order to co-operate with other British Commonwealth Governments, and the United States of America, it is desirable that every transaction, including those which had already been initiated, should be carefully reviewed. The restriction on remittances will be operative immediately, but though the effect of this may be an almost complete stoppage of trade with Japan, at least for the time being, it is not proposed to cancel existing import and export licences. Trade Agreement.

“Another step which has been taken concerns the trade treaty with Japan. In 1928 New Zealand concluded by exchange of notes an arrangement whereby the Japanese and New Zealand Governments engaged to accord each other most favoured nation treatment. Notice has been given today to the Japanese representative in New Zealand that this will no longer be accorded after the expiration of three months’ notice provided in the 1928 arrangement.

“What the effect of the measures taken by the Governments of the British Commonwealth and the United States may be on the policy of Japan remains to be seen, but it is quite obvious that a period of tension must ensue and I would like to assure the people of the Dominion that the Government is in continuous consultation with the United Kingdom and the other members of the British Commonwealth, with which it is acting in the closest collaboration.

“Our cause is just, our policy is clear. It is against aggression, whatever its form —from wherever it comes. We are then with the United Kingdom, with Canada, with Australia and with the United States, taking the steps necessary to show our determination to stand against aggression in all its forms and to take whatever steps are necessary to reach conditions where peaceful development without fear is possible for all nations.”

Mr. Nash added that an announcement would be made today on the procedure to be adopted for the exchange and trade control for the guidance of the public and the banks throughout the Dominion.