AMERICAN MOVE

Dominion, Volume 34, Issue 258, 28 July 1941, Page 7

AMERICAN MOVE

Chinese Credits Included

CHIANG’S REQUEST (By Telegraph—Press Assn.—Copyright.)

(Received July 27, 7.30 p.m.) LONDON, July 27.

The American order freezing Japanese credits was unexpectedly extended, at the request of Marshal Chiang Kai-shek, to Chinese assets and is “for the purpose of helping the Chinese Government.” The object of this is to prevent the misuse of Chinese assets which may come under the control of the Japanese. The order will be diluted by the granting of general licences to China to strengthen her foreign trade and exchange position.

Officials .in Washington described the freezing measure as the first of a series of retaliatory economic moves against Japan. Some Japanese circles in Shanghai believe that America’s action wilt prove a long step toward the severance of diplomatic relations between the two nations and also that it will inevitably speed up Japanese southward expansion through Thailand because of the necessity for Japan to obtain raw materials. The British Empire, the United States and the Netherlands normally supplied Japan with 86 per cent, of her essential war materials. Japanese Shipping.

The actual seizure of Japanese ships in American ports is not authorized under the American order, but such vessels will not be permitted to sail from American ports without permission from the Treasury. The American Department of Commerce estimates that the order will result in a trade loss to the United States of 50,000,000 dollars annually. When President Roosevelt disclosed at his Press conference on Friday that the United States -would retaliate with specific action against Japanese occupation of Indo-China, he said this was causing an awakening in America to a full knowledge of the deadly peril of the international situation. The President said that public opinion was swinging rapidly to a more complete realization of the dangers in which the United States was involved, but the public were still less cognisant of those inherent perils than they were of Britain’s death struggle with Nazi Germany and Russia’s stand against the Nazi blitzkrieg. This week’s events in the Far East were bringing greater public awareness of present dang<#%

Extent Of Holdings.

The order freezing all Japanese assets in the United States from Saturday was announced in Washington on Friday night. An explanatory statement issued from the White House said that the measure in effect brought all financial and import and export transactions in which Japanese interests were involved under the control of the. United States Government and imposes criminal penalties for violation of the order. The freezing of Japanese assets by the United States increases the total Axis credits immobilized there to over 700,000,000 dollars. Officials said that approximately 500,000,000 dollars of this represented Italo-German credits affected by President Roosevelt’s order of June 14. Such reports as are available from the Department of Commerce fix Japanese assets in the United States at 91,000,000 dollars in short-term investments and 40,000,000 dollars in direct holdings. However, the figures are not recent, and probably do not include all the holdings. Effect Of Retaliation.

Japanese retaliation, however, will make the United States a loser, since American holdings in Japan include 67,000,000 in short-term investments, 45,000,000 in direct holdings, and 105,000,000 dollars in Japanese bonds, most of which are owned by residents of the Philippines. JAPAN FAR FROM HER GOAL An American Opinion (Received July 27, 11.30 p.m.) _ WASHINGTON, July 26. Writing in the New York “HeraldTribune,” Captain Feilding Eliot says the current coup leaves Japan far from her goal, and her Indo-China supply lines vulnerable to attack from Hong Kong and Manila. There are no roads to enable the Japanese to concentrate men and supplies in IndoChina for a great campaign against Thailand and British Malaya. “Indo-China itself cannot support a great offensive of any kind,” he says. “If the Western Powers, with or without the Soviet aid, stick firmly together and determine to resist with armed force any further Japanese aggression, they still have every means of doing so, and the Japanese move in Indo-China does not greatly improve Japan’s position. It can be dangerous to our interests in the Far East only if we permit it to become so.’’ The Military Affairs Committee of the House of Representatives rejected a request by the Administration for the declaration of a state of national emergency. AUSTRALIA ACTS Freezing Japanese Credits (Received July 27, 7.30 p.m.) MELBOURNE, July 27. The Prime Minister, Mr. Menzies, announced that Australia’s policy in regard to the freezing of Japanese credits would be brought into line with that of Britain and the United States. Mr. Menzies pointed out that Japanese balances in Australia already had been frozen under the exchange control regulations for some time past and that commercial transactions with Japan had been conducted on a sterling or dollar basis.

IN SOUTH AFRICA ALSO (British Official Wireless.) (Received July 27, 6.30 p.m.) RUGBY, July 26. It is officially announced in Pretoria that the Government of the Union of South Africa has decided to freeze all Japanese assets in the Union.

CANADA FOLLOWS SUIT (Received July 27, 7.30 p.m.) OTTAWA, July 26. Canada followed the freezing of Japanese assets by impounding the Japanese ship Florida! Marti, which was about to sail for Japan with a cargo of hemlock.