JAPS. IN INDO-CHINA

Greymouth Evening Star, 28 July 1941, Page 5

JAPS. IN INDO-CHINA

AGREEMENT WITH VICHY

ANGLO-U.S.A. ECONOMIC WAR

CUTTING OFF SUPPLIES

LONDON, July 27. The occupation by Japanese forces of naval and military bases in IndoChina has already begun. Naval and army vessels, and bombers, arrived at Saigon yesterday and landings are also reported to,have been made in Cambodia. Transports are expected to arrive at any time. The airfield at Saigon has been evacuated in readiness for the Japanese occupation, and warehouses near the wharves at Sai-~ gon have been emptied for the use of the Japanese. _. It is officially announced in vichy and Tokio that France and Japan have concluded an agreement “for .the mutual defence of Indo-China.” It is reliably reported that the agreement provides for stationing 40,000 Japanese troops in Indo-China, to be maintained by Indo-China, and the occupation of Cam Ranh Bay and the Saigon air base. . , , , Major-General Sumita, the leader of the Japanese delegation in IndoChina, and other officers, arrived at Saigon to-day. U.S.A. FAR EAST FORCE. WASHINGTON, July 27. Mr. Roosevelt has ordered the Army and Navy in the Philippines Commonwealth into a command known as the Armed Forces of the United States for the duration of the emergency. The forces in the Philippines are placed under the control oi Field-Marshal Douglas MacArthur, formerly chief of staff, United States Army, and more recently Director of Organisation of National Defence in the Philippines. He retired with the rank of field-marshal, and is returning to duty with the temporary rank of lieutenant-general. He will have a force of 300,000 men—7s,ooo fullytrained and 75,000 partly-trained United States soldiers and 150.000 fully or partly-trained Filipinos. All United States troops in Hawaii have been placed on an alert and precautionary status. Units of the army outside Hawaii will also be affected. FIRM ATTITUDE URGED. NEW YORK, July 27. Major Fielding Eliot, writing in the “New York Herald-Tribune,” stated that Japan’s current coup leaves her far from her goal, and that her supply lines to Indo-China will be vulnerable to attack from Hong Kong and Manila. There are no roads to enable the Japanese to concentrate men and supplies in Indo-China for a great campaign against Thailand and British Malaya. Indo-China itself cannot support a great offensive of any kind. “If the Western Powers, with or without 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.” PRESS DEMANDS WASHINGTON, July 25. The Washington “Post” said that Mr. Welles’s statement could be regarded as a certain prelude to action by the United States. “Like Hitler, Japan cannot stop now, but'must go on from aggresion to aggression,” the paper stated. The United States could not afford to let the move go uncontested. The paper urged the Government to enforce an economic blockade of Japan. The New York “Times” stated that the presence of Japanese warships off the coast of Indo-China marked the end of America’s present policy in the Far East. The paper stated that the United States should impose an embargo on Japan, which would mean business. AUXILIARY VESSELS SAN FRANCISCO, July 25. A huge fleet of small fishing boats and pleasure craft is being assembled by the United States Navy in San Francisco, Monterey and other ports to help guard the coast. Their principal function will be patrolling and augmenting the force of larger vessels. They have been enlisted voluntarily. NO “EMERGENCY.” WASHINGTON, July 26. The Military Committee have rejected the Administration’s request for a declaration of a national emergency. ASSETS AND TRADE.

ANGLO-U.S.A. EMBARGO

LONDON, July 27. Britain has informed Japan that she is severing trade relations between the two countries. This followed earlier announcements from London and Washington that all Japanese credits in the British Empire and the United States had been frozen as a counter to Japanese aggression in Indo-China. Japan has retaliated by freezing British and United States credits. The American order freezing credits unexpectedly extended to Chinese assets at the request of Marshal Chiang Kai-shek “for the purpose, of helping the Chinese Government.” The object is to prevent the misuse of Chinese assets which may come under the control of the Japanese. The order will be diluted by granting general licenses to China to strengthen her foreign trade and exchange. ' , , Officials in Washington described the freezing as the first of a series of retaliatory economic moves against Japan. The actual seizure of Japanese ships in American ports is not authorised under the American order, but the vessels will not be permitted to sail from American ports without permission from the Treasury. A Washington message says that the Office of Production Management has ordered the freezing of all stocks! of raw silk in the United States ‘ to i meet the threatened shortage due to unsettled conditions in the Far East. The San Francisco Department of Commerce estimates that the order freezing Japanese credits will result in a trade loss to the United States of 50,000,000 dollars annually. The freezing of Japanese assets oy the United States would increase the total Axis credits immobilised there to more than 700,000,000 dollars, said officials in Washington. Approximately 500,000,000 dollars ItaloGerman credits are affected.by President Roosevelt’s order on June 14. Available reports 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 holdings. Japanese retaliation, however, would make the United States a loser since American holdings in Japan include 67,000,000 dollars in short term investments, 45,000,000 dollars in direct holdings, and 105,000,000 dollars in Japanese bonds, most of which are owned by residents of the Philippines.

BLOCKADE’S EFFECTIVENESS.

LONDON, July 27.

British and American newspapers agree that Japan would be hardest hit through economic action. The “Daily Telegraph” says that the blockade of Japan, would not have to be prolonged before its effect would be felt on the economic structure of the country. The paper points out that Japan depends on outside sources for 90 per cent, of its oil supply, two-thirds of which comes from the United States. The “Daily Mail” declares that Japan would suffer more than any other country in the world from a trade embargo. Although Japan produced most of its own food, it was edpendent on the goodwill bf other countries for its supplies of iron, copper, and other metals. A blockade would place an insuperable burden on an economy already heavily taxed. DOMINIONS’ ACTION. LONDON, July 27. The Prime Ministei’ of Australia (Mr Menzies) announced that Australia’s policy in regard to frozen Japanese credits would be brought into line with that of Britan and the United States. The Prime Minister said that Japanese balances in Australia had already been frozen under the exchange control regulations for some time past, and commercial transactions with Japan had been conducted on a sterling or dollar basis It is officialy announced that the Pretoria Government has decided to freeze all Japanese .assets in the Union of South Africa. A message from Ottawa says that Canada followed the freezing of Japanese assets by impounding the Japanese ship Florida Maru, which was about to sail for Japan with a cargo of hemlock. JAPANESECOMMENTS.

LONDON, July 27. Japanese in London are accepting the developments. No decision has been reached about returning members of the Embassy to Japan. Mr M. Kano, manager of the London branch of the Yokohama Specie Bank, said that Japanese banks in London would adhere 100 per cent, to the British Government’s decision, and would collaborate with the authorities to smooth out the difficulties. “To smooth out trade means peace. To make trade difficult means war, he said. “This tit-for-tat action is regrettable, but it is unavoidable at present when there is so much sus picion and propaganda.” qi _„ npha i Some Japanese circles in Shanghai believe that Americas action will Drove a long step towards severance of diplomatic relations and also inevitably speed up Japan’s southward expansion through Thailand, because of the necessity for obtaining raw materials. The British Empiie, the United States, and the Netheilands East Indies normally supplied Japan with 86 per cent, of her essential war materials. Mr M. Ogura, a prominent Japanese financier, stated in Tokio that Tananese assets in the United States werl not large, and, moreover, .trade with , the United States h ad dummshed steadily in recent months. There fore the effect of American action would be comparatively slight Mr K Ito, spokesman for tne Japanese Cabinet, in a broadcast said that the United States misunderstood Japan’s true. int ® n 4 on^ h Sl e wa e the mpnt regarding Indo-China was ine same as the American arrangement lceland. American would not affect Japan, but Japan would take counter-measures. ITALIAN REVELATION. LONDON,. July 27. While Berlin has very little to say Gayd’ahls Snfi He has revealed the connivance of‘Germany and Italyjm the Vichy. CHINESE ATTACKS. London, July,27. Authoritative quarters in Chungking stated that in view of the Jap occupation of Indo-China, rmnese had consolidated and Yunnan and Kwangsi frontiers and the Burm r °The Hong Kong correspondent of “The Times” states that the movement of Japanese transports trom Canton has apparently been completed. Foreign circles Chinese estimate that 20,000 Japanese trnnnc have sailed from Canton, pie sumably for Indo-China. thoughi the Chinese newspapers report that some have landed on islands m the Canton eS A Considerable number of _ pqp troops have already entered Indo China for the purpose of occupying the ivholp country, states the rsernn correspondent of the ?, to £^ O “Social Demokratens. The Germans consider that this presages great developments in the world situ ”° d tablv a Japanese move into Inaiiana. The “Central China News”, states that Chinese forces attacked vigoi ously in the Canton region, from where many Japanese troops were recently withdrawn, and inflicted heavy casualties on the Japanese, in spite of strong Japanese air support. The Shanghai correspondent of the Associated Press of Great Butam states 1 that Japan is mobilising more than 1,000,000 men in the greatest call to arms since 1937. inose in uie new call up are said to discharged veterans of the China war and some who were previously considered unfit for service. Mobilisation began on July 17, and is still C °Japan p s g move in Indo-China is expected to result in a sharp reduction in rice imports and also hamper Hong Kong shipping movements. Aou per cent, reduction in the milk ration W3S ordered in Tokio yesterday. DUTCH EAST INDIES BATAVIA, July 27. Extensive A.R.P. exercises and ' Army manoeuvres covering the whole lof West Java began to-day. The Java Press reports that an East Indies second army of Country i Guards, is growing steadily, it bein„ estimated that the present strength of this reserve totals six hundred brigades. DEMANDS ON THAILAND. (Rec. 12.30 p.m.) LONDON, July 27. The Japanese occupation of IndoChina has begun. The main forces will arrive between now and Thursdav. Japanese planes and army yeI hides arrived at Saigon yesterday. I Four Japanese destroyers are now at Saigon, and a cruiser and three destroyers at Camranh Bay. I Japan has demanded that Thailand shall join “the new order m East

MR NASH’S STATEMENT.

Asia,” according to a statement issued by thb Chungking Board of Military Operations.The Domei News Agency stated that measures to counter British and Afnerican encirclement have been considered by the Thai Government. The Agency adds: British newspapers are warning Japan that Britain would be compelled to resist any Japanese attempt to occupy Thailand, as such action would menace Singapore. The clamping down of the British and American “long distance blockade” on Japan’s v/ar factories, is regarded in London as a red light, warning Japan that any further aggression would mean war. A report, originating in London,says that the United States Pacific Fleet is on the high seas, but officially this cannot be confirmed. Mr. Roosevelt’s order, bringing the military and naval forces of the Philippines into the command of the armed forces of. the United States, and reports as to the strengthening oi the Singapore defences, are regarded in the United States as an indication that Britain and the United States are prepared to fight if necessary to protect their interests in the Pacific. Authoritative quarters in London believe that 'Japanese aggression against Indo-China has so long been anticipated that British and American preparations have been amply taken. It is probable that no British oi* American ships will have to be withdrawn from the Atlantic or the Mediterranean, nor will other British programmes in Europe or Africa be weakened, in order fully to protect Pacific interests.—U.P.A. BRAZIL SUPPORTS U.S.A. NEW YORK, July 17. According to the Rio de Janeiro correspondent of the North American Newspaper Alliance, the Foreign Minister, Dr. Oswaldo Aranha, said in an interview that Brazil would give full support to the foreign policies of the United States in the present crisis in world affairs. -

WELLINGTON, July 27.

An announcement that New Zealand was taking parallel action with the other Governments of the British Commonwetalth in trade, and exchange relations with Japan was made by the Acting-Prime Minister (Mr Nash) to-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 the statement made in the House of Commons by the Foreign Secretary (Mr Anthony Eden). “The United States has reacted to this Japanese southward move by freezing Jap-, anese assets. The United Kingdom and 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-American action against this latest instance of Japanese aggression have been made quite clear at Washington and in Mr Eden’s statement. In presenting the demands for the military occupation of bases in Indo-China, the Japanese nave made it plain that they are prepared to use force if necessary, and the lace that Vichy 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 these circumstances, the response of the Government of the British Commonwealth and o± the United States has been immediate and with these reactions the New Zealand Government is in total agreement, however reluctant it may be to interefere with normal trading relations.” Mr Nash said. “I have, therefore, to announce that blew Zealand is taking parallel action with the other Governments of the British Commonwealth. x The system of exchange control and the external trade regulations in operation in New Zealand is such that we can take the most important step in peifoiming the Dominion’s part of the measures simply and speedily, and I am accordingly taking this opportunity of announcing that notwithstanding that 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 Emoire or by or on behalf of any Japanese ..national or Japaneseconttolled firm, may be made without prior confirmation fi om the Ke serve Bank. We are taking parallel action with other parties to the agreement in making these measures aoolicable to Manchuris. also. “This requirement I have outlined will not necessarily result in a complete stoppage of exchange transactions, but P in order to co-operate with other British Commonwealth Governments and the United States of America, it is desirable that every transaction. including 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 P r °P° s ®H to cancel existing import and expoit licenses. NO FAVOURED TREATMENT. “Another step which has been taken concerns the trade treaty with Janan In 1928, New Zealand concluded by an exchange of notesan arrangement whereby the Japanese and New Zealand Governments engaged to accord each other most favoured nation treatment. No .ice has been given to the Japanese representative in New Zealand to-day that this will no longer be accorded ot the measures taken by the Governments 01 the British and tne United States may be on the policy of Japan remains to be seen, but it is quite obvious that a period of ten sion must ensue, and I would, like to assure the people of tne Dominion that the Government is in continuous consultation with the United Kingdom and 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 aggiession, whatever its form—from wherever it comes. VZc are, then, with the Uniied Kingdom, with Canada, with Australia, and with tne United States, taking the steps necessary to snow our determination to stand against aggression in all its forms, and take whatever steps are necessary to reacn conditions where peaceful development without fear is possible for all nations.” Mr. Nash added that an announcement would be made tomorrow on the procedure to oe adopted for the exchange and trade control for guidance of the public and banks throughout the Dominion. DIMINISHING TRADE.

Trade between New Zealand and Japan has diminished considerably m the -last two years, largely because of the ‘import restrictions. Last year the Dominion had an unfavourable balance, imports from Japan being valued at £809,163, and exports from the Dominion being worth £79,491. according to the January Abstract of Statistics. r, , , Japanese exports to New Zealand last year consisted mainly of cotton, linen, silk, and artificial silk piece goods, which z were valued at

£484,619. The next largest iiem was sawn timber worth £64,176, which consisted mainly of Japanese oak for furniture making. Hats, cans, and millinery accounted for £26,124, and hosiery for £12,501. Other items , were: Clothing (£1233), footwear (£4166), drapery £2097), fencing wire (£87641 glass and glassware (£6080), paper (£4384), printing paper (£4360), fancy goods (£1903). earthenware and chinaware (£1779), hardware £2401), electrical machinery (£924), tools (£730), car and motor-bicycle tyres (£204).