TRADE HOSTILITIES

Grey River Argus, 16 January 1940, Page 8

TRADE HOSTILITIES

U.S.A. AND JAPAN Threatened Increase Over China [Aust. & N.Z. Cable Assn.] (Received January 15, 7.30 p.m.) NEW YORK, January 14. The Washington correspondent ot the United Press says: “The United States-Japanese trade crisis appears to have reached a deadlock, and prospects are increasing that there may not even be a stop-gap agreement when the United States-Japan Trade Treaty expires on January 26 The United States is believed to be prepared to enter the non-Treat.v period without any substantial changes in the trade status until it is ascertained whether the incoming Japanese Cabinet will meet American demands. If there is no satisfaction within a reasonable time, it is believed that Congress ( will be given a free rein to act on numerous anti-Japanese embargo measures and also that Senator Hull (Secretary of State), will extend the moral embargo against Japan. The indications are, however that the United States is anxious to avo ; d anti-Japanese retaliatory measures at present. The greatest threat to Japan is that Congress may decide, overnight, to pass one of six pending Bills providing for an embargo on the sale of American war materials to Japan. It is understood that only Secretary Hull’s influence has prevented action. It is stressed that the defeat of these measures would embarrass the United States, as Japan would then feel at liberty to intensify her commercial hegemony in China. The choice of Admiral Ypnai as Premier and Mr. Arita as Foreign Minister is regarded as a gesture of appeasement to the United States.

TEMPORARY TRADE PLAN.

JAPAN PROPOSAL TO U.S.A. (Received January 15, 11.40 p.m.) NEW YORK, January 15. The Tokio correspondent of the United Press of America says: The Japanese Foreign Office spokesman stated that Japan’s draft of a proposed stop-gap trade agreement with the United States has been presented to the State Department at Washington. The Japanese Foreign Office expected a response before the U.S.-Japan Trade Pact expired on January 26. He said Japan was agreeable to a temporary arrangement to operate pending the conclusion of a formal long term pact. The spokesman added that he did not believe the change of the Japanese Cabinet would affect the ne • gotiations.