The Grey River Argus MONDAY July 28, 1941. ECONOMIC SANCTIONS AGAINST JAPAN.

Grey River Argus, 28 July 1941, Page 4

The Grey River Argus MONDAY July 28, 1941. ECONOMIC SANCTIONS AGAINST JAPAN.

Not the mere entry of Japanese troops to the extent of a couple of divisions, or tlie occupation of a few air bases, but the, possible consequences beyond Judo-China, are the explanation of all the commotion caused by this development. The possible consequences, indeed, ■which in a certain degree have already been anticipated by joint British- ' American economic hostilities, may not even be so very immediate. Japan is doubtless goingno further meantime than a single step more in her projected East Asia Joint-Co-Pros-perity sphere. The United States and Britain, however, have large economic, as well as strategical interests, in the part of East Asia into which the Japanese are now moving, after they have largelyousted Anglo-American economic predominance in China itself. For their part the Japanese say, by way of justification,, that the territories of Thailand and Burma, including the Burma. Road, are being already utilised by Britain ami the United States to co-operate with the Chinese in opposing Japan. When the Japanese go further and suggest it is a race as to whether they or she shall gain strategical points in Indo-China, they are evidently doing so as a mere excuse for what the British and Americans emphatically declare to be an act of aggression. The fact that the Japanese could display a formal agreement with the Freud; is held not to constitute a justification, first, on the ground that the French would have been quite powerless to resist, and secondly, on the ground that Japan has no need to fear Anglo-Ameri-can occupation of Indo-China. Although it momentarily may in the Avar news overshadow that from the Russian fronts, the Far Eastern development does not yet betoken an extension of actual warfare. Should Japan follow up the consolidation of her 1 military position on the East Asi- I atic eoast with a movement ! northwards into the Russian | sphere, the situation would be ' graver. It is an eventuality ' that may require to be taken into 1 account, but the present scope of I the -matter appears to be confined 1 to China and the southward ter-

ritories. The Japanese are ob- ■ viously anxious, while they may, i to consolidate their position in China, and extend the influence of the regime that they have established in Nanking so as to supplant that, of Chiang Kai Shek. Latterly, he has had to depend upon British and American support, the Soviet being otherwise engaged, and the Communists in China at loggerheads with the regime at Chungking. The Japanese are unlikely to risk major hostilities, but. they are now in a position in which many critics of their policy have for years wished to see them. They are subject at lasi Io economic saneitions on the part ol Britain and the United States, whose territories, with the Dutch Judies, are those with which Japan does the great bulk of her oversea trade. The Dutch are aligned with the British and Americans, and Japan therefore is in fact circumscribed in her relations within the very area where she aspires to be dominant for the future. .11 must impose a severe strain upon Japan, and it explains her recent struggle for interna) stability on a strictly war-time basis. This country in common with the other British States, now has virtually put an end to what little trading she had been doing with Japan. Australia, in a similar position, will feel the pinch far more. It is too soon to try and forecast the probable upshot of the new situation. the Prime Minister, speaking in England, having hinted that events may become extremely grave, even here, in consequence of the course of action being taken. For that reason, the Dominion must be more prepared than ever for emergencies. Nevertheless, it may be hoped that matters may yet be arranged so as to avert naval, aerial and military hostilities, and that the Dominion may be saved from the ordeal which these would probable entail.