STRAIN IN JAPAN

Hokitika Guardian, 17 September 1937, Page 7

STRAIN IN JAPAN

KEEN NEED FOR IMPORTS LONDON, September 13. According to the diplomatic correspondent of tile Times, informed circles in London are seeking to assess how China and Japan will stand prolonged hostilities. So far China has become steadily more united. Only tXo months ago the “peace-nt-any-price” movement had a strong following in many parts of China, but now little is hoard of it. Similarly differences in the Chinese higher command have been composed, and two 01 General Chiang Kai-shek’s bitterest opponents have rallied to his support. China is more of a nation than she has been for years.

If General Chiang Kai-shek can avoid a crushing defeat, he may be helped by the general geography and hold out for a long time.

Japan is feeling the financial strain acutely as a result of her heavy expenditure on armaments and her total indebtedness lias increased. Already she has been obliged -to float fresh loans to cover the cost of the campaign. Although she reduced her foreign debt in the last year, the economic, strain is aggravated h'v her lack of raw materials and of machinery needed for industrial development, and by the allround increase of costs. A devaluation of the yen might relieve the strain temporarily. but it would strangle the flow of much-needed imports-

Some industrialists are supporting the campaign, because they bene to exploit tbe cbean nviienils and raw materials ip North China, hut others believe that the gamble is not wortn tho l-'sf- -"->d th n certain Uss-vs of war. '*’h«v consider that peaceful nenetratio" would secure greater gains at smalle 1 cost.