CHINA & JAPAN

Hokitika Guardian, 15 September 1937, Page 6

CHINA & JAPAN

ITALIAN REINFORCEMENTS ARRIVE. (United Press Association--By Electric Telegraph—Copy right). (Received this day at 10.0 a.in.) SHANGHAI, September 14. ,A thousand Italian troops were warmly welcomed as an addition to international units. HEAVY LOSSES. (Received this day at 1.30 p.m.) S H ANGHAT, September 14. Four divisions of crack Chinese troops are entering Pootung in order to prevent the .jja, panose investing the town, crossing the Whangpoo river and enveloping the Chinese on Shanghai bank.

The “Telegraph’s’’ Shanghai correspondent says the Japanese have lost heavily, truck loads of dead and wounded are pouring into the International Settlement. Japanese nurses and field hospitals say the deaths from wounds are appallingly numerous. It is estimated that from five to six thousand Japanese and Chinese wounded were sent to the hospitals in Shanghai. The Japanese Chief of Staff, Fujita, says that t/ieir landing forces are now united, and have ample room to develop an offensive. The Chinese, aware that a fan-like area separated them from the- Japanese, remain un-dcmoralizerl, and declare they do not mind the bombardments. They advise Nanking tc keep their aeroplanes in reserve, because Chinese can withstand prolonged warfare better than the Japanese. The Chinese are equipped with an odd variety of uniforms. Some are clad in civilian felt hats, running shorts, and gymn shoes. They are wearing badges containing Chiang Kai-Shek’s photograph, and are' smoking expensive cigars, presented by wealthy merchants. JAPANESE CLAIM. (Received this day at 2.5 p.m.) TOKIO, September 14. The Japanese claim they have finally defeated fifty thousand Chinese converging on the Peking and Tientsin areas in an attempt .to invade the Jehol province. AIR DEFENCE MANOEUVRES. JAPAN ANTICIPATES RUSSIAN ATTACK. TOKIO, September 14. For five days from, to-morrow the Tokio region will be the ."cene of the : most rigorous and elaborate air defence manoeuvres yet held. This is the latest confirmation of the public’s exfqibctatpm tluHong foreseen clash with Russia must now not he far distant since there is only a very slim chance of a Chinese air attack. EFFECT ON BUSINESS IN N.Z. WELLINGTON, September 'l4. Al|ready (the hostilities between Japan and China are having a disturbing effect on business in New Zealand, according to the official organ of the New Zealand Federation of Drapers, Clothiers, and Boot Retailers. This journal emphasises the substantial trade that had developed 'between Japan and New Zealand, and refers to the effect on orders and supplies of the present conflict. After referring to post-war improvements in Japanese manufacturing, the article states: “With all this improvement Japan has been able to keep production costs so low that, aided by a heavily depreciated currency, she was ablfc to scale the barriers of ad valorem tariffs and compete with local manufacturers in the domestic markets of such highly-protected countries as 1 the United States, Canada, and Australia, while in low tariff countries like New Zealand, .China, India, Africa, and the East generally, she was able to flood the markets with textiles, fancy goods, footwear, and an ever-widening variety of goods, at prices against which manufacturers of other countries were quite unable to quote. “Here in New Zealand there \*as considerable resistance to this whole-. sale invasion, particularly while the quality and standard of the goods was unreliable, and our traders preferred to lely on more satisfactory sources of supply. “But with the slump and the rapidly decreasing purchasing power of the public occurring at the same time as . a marked improvement in the standards of these Eastern goods, our shopkeepers were forced into meeting the increased public demand for them, and our trade with Japan has been increased by leaps and bounds.” . Figures are given showing the increase in New Zealand imports from Japan from £332,281 in 1931 to . £1,505,474 for 1937,' and it is remark- |. ed that “we are now spending nearly' five times as much on Japanese goods | as wo were spending in 1931, and the 1 , United States is now the only foreign country- which supplies us with more manufactured goods flhan Japan.” It is pointed out that the Japanese! are not only large sellers of goods to New Zealand, but also substantial: buyers, and since her disagreement with the Commonwealth over- Australia’s restriction of Japanese imports, Japan is looking more and more to Nbw Zealand for supplies of wool to her textile factories. In 193 G Japan, for the first time, took more than £1.000,000 worth of New Zealand exports, but this year for the three months only ended on March 31, we had shipped nearly £2,000,000 worth of exports to Japan, as against about

lialf tliat' val’ue of imports from there, j “This outbreak of hostilities is | houml to be disturbing to trade here, on account of tlie interference in the delivery of orders, but so long as the war is confined to the two countries tlie necessary adjustments will soon be made, and trade will probably revert to former channels,” the article adds. “But the danger of other countries being drawn into the conflict, and the critical situation which persists i’n Europe as a result- of conditions in’ Spain, must continue to cause our traders considerable cogitation and anxiety, and it militates against business activities when supply markets j become hazardous and uncertain.” I