America's Plain Hint To Japan Has Far-Reaching Possibilities

Northern Advocate, 29 July 1939, Page 7

America's Plain Hint To Japan Has FarReaching Possibilities

(Received 3 p.m.)

WASHINGTON, July 27,

THE STATEMENT TODAY BY MR CORDELL HULL THAT

THERE MUST BE A SATISFACTORY SETTLEMENT OF POLITICAL .DIFFERENCES BETWEEN THE UNITED STATES AND JAPAN BEFORE ANY NEW SETTLEMENT CAN BE NEGOTIATED, AND THE INTIMATION BY MR H. MORGENTHAU THAT THE TREASURY IS STUDYING MEANS TO FOLLOW UP THE ABROGATION OF THE TREATY BY ACTION RELATIVE TO UNITED STATES’ PURCHASES OF MERCHANDISE, SILVER AND GOLD, THE LATTER OF WHICH IS OVER 400,000,000 DOLLARS, TAKEN IN THE PAST TWO YEARS, THE SITUATION CREATED BY THE UNITED STATES NULLIFYING THE 19H TREATY WAS ADVANCED A STAGE FURTHER.

Treasury May Move

Senator Borah issued a statement that he is in favour of an embargo against arms shipments to Japan, but explained that the idea had nothing to do. with the abrogation, since he abrogated a similar embargo against all nations engaged in war in order to prevent the United States being involved. The Treasury action against Japan, it was Brought, might come even before the termination of the six months’ notice. It is believed that the alleged Japanese subsidies on cotton and cloth exports to the United States may elicit penalty tariff duties here. Gold and Silver Purchases. “We will take a fresh look at countervailing duties,” said Mr Morgenthau, but he declined to explain further. The Washington correspondent of the “New York Times” telegraphed that the Treasury’s gold and silver purchases have assisted Japan in a large measure to finance its aggres-

sion. Chinese bullion is being converted to dollar balances, which are being used to finance arms and war material purchases in the United States or Europe. The Associated Press of America’s Washington correspondent states: “Japanese officials cannot fail to read into the development a plain intimation that the platform planks of both the major parties in the Presidential election in 1940 are apt to call for firm resistance to any Japanese encroachment on American treaty or other rights anywhere in the Far East. “Furthermore, the abrogation move tends to offset somewhat the loss of prestige abroad which the President suffered due to his failure to obtain a revision of the neutrality law at the present session of Congress,