NOT WORKING WELL

Manawatu Standard, Volume LXII, Issue 264, 7 October 1942, Page 2

NOT WORKING WELL

JAP. CO-PROSPERITY MOVE. (N.Z. Press Association—Copyright.) (Special Correspondent.)

(Rec. 1.45 p.m.) LONDON, Oct. 6. Tilings are working out differently from what the Japanese exacted in the co-prosperity sphere, comments the Financial News The Japanese intended that a high degree of economic planning should be directed from Tokio over the conquered territories. Agriculture would be readjusted and coffee, sugar, and lubber replaced by cotton and other textiles. The exportation of minerals would be stimulated and industrial production would be concentrated in Japan, the principle of an international division of labour would bo enforced.

Currencies in all Japanese controlled countries would be based on the yen and various currencies having a yen balance in Tokio and the Bank of Japan would have a central gold reserve to secure the yen. A steady price level would be maintained through extensive price control, and Tokio would become the international finance centre, the paper states.

“Although information from the recently conquered countries is scanty it is sufficient to show that in practice matters are developing very differently from the way envisaged in theory,” it adds. “It may be easy to reduce the growing of cane-sugar and rubber, but cotton-growing cannot be expanded by a stroke of the pen. A gigantic effort will be needed to repair the devastations of the scorched earth policy, which put out of action mines and oilfields, and it will bo some time before the Japanese can replace the American and European engineers formerly employed and also provide the necessary machinery and equipment. LACK OF TRANSPORT. “The lack of transport facilities prevents Japan from developing an international division of labour; on the contrary, many of the conquered countries have been forced to become self-sufficient to save shipping space. “Judging from the degree of devaluation forced on certain conquered countries their currency is likely to be stabilised at an undervalued level, resulting in the Japanese deriving considerable advantage at their expense from over-valuation of the yen. It will be no easy matter to build up a big gold reserve, for gold production within the copiosperity area is limited. If Japan wishes Tokio to become the international finance centre, she is going the wrong way by borrowing from subject races instead of lending to them. Altogether, when one goes behind the barrage of words to find the true fact, then all the information received from the conquered countries suggests that the native populations arc being subjected tc ruthless exploitation.” The Times says that there arc signs that the Siamese are jibbing against co-prosperity. It is apparent that the Japanese are taking much and giving little to their reluctant allies.