PLANS BY JAPAN

Nelson Evening Mail, Volume 76, 29 July 1941, Page 5

PLANS BY JAPAN

FURTHER MOVES IN FAR EAST Armies in Manchuria and Korea Increased LARGE FORCES AT FORMOSA AND HAINAN London, July 28. In Tokio to-day the seal is to be fixed to the F ranco-Japanese agreement under which Japanese troops are to occupy strategic positions in Indo-China. Ihe agreement is to be ratified at an extraordinary session of the Japanese Privy Council presided over by the Emperor. In the meantime reports continue to arrive of Japanese preparations which indicate plans for still further moves in the Ear Last. Chungking dispatches state that the Japanese armies in Manchuria and Korea are being increased to 17 divisions. I.arge forces are also being concentrated on the islands of Formosa and Hainan. The Japanese navy is reported to have mined the straits between Korea and Japan proper.

General Douglas MacArthur, who has been appointed commander of the United States armed forces in the Far East, to day spoke of his country’s de termination to defend its rights and interests. In a statement to the Press at Manila, he said that the action of the Ameri can Government in establishing the new Far East Command could only mean that it intended to maintain, at any cost or effort, its full rights in the Far East. It was quite evident that the determination of the United States was immutable and its will indomitable. To this end, both American and Filipino soldiers could be expected to give of their utmost. The London “Sunday Times" says: “Having deceived Italy with France. Germany now deceives France with Japan. Japan announces she is going into Indo-China to protect France from China. There has been no word of Germany protecting France from Japan. After all there might be more to be got out of her Oriental accomplice now that she is at war with Russia. This is her idea of realism.” JAPAN’S NEXT MOVE Correspondents in the Far East speculate about Japan’s next move. An Associated Press message from Saigon says that Japan will station a powerful force within easy striking distance of Thailand. A few days ago a Japanese newspaper, referring to Thailand, said: "This country is in need of external protection.” The German radio announces that passenger and merchant ships are no longer to call at Hong Kong. FREEZING ORDERS The Japanese Finance Ministry announced that the freezing order against United States assets will be eased as much as possible, depending upon the severity with which the United States applies her own freezing order against Japan. It is still not clear whether the order applies to Britain. The Government statements do not mention specific measures against Britain, but the news papers agree that British assets have | been frozen. The “New York Times” Tokio corI respondent says the British assets will jbe automatically frozen when official j notification of the British action against [Japan is received. President Roosevelt’s swift action shocked and surprised even the Japanese Government, which, though it had taken precautionary measures, had been rather hopefully reiving on Mr Mat suoka's past assurances of America's ; passivity and on the influence of American isolationists. ACTION BY EAST INDIES The Netherlands East Indies Government to-day applied immediately effecj tive sanctions against Japan, as the result of which all monetary and goods . traffic with Japan is dependent upon [ special permits. This action suspend! the recent agreement under which the yen was linked with the guilder and i also the oil agreement by which Japan received 1.800.000 tons of petroleum products annually. Other vital products n °w unavailable to Japan include rubber, tin, vegetable fats and quinine. According to the Hsinking correspon dent of the Domei news agency, it is officially announced that Manchukuo has frozen American and British assets. Officials in Washington describe the freezing measure as the first of a series of retaliatory economic moves against Japan. Some Japanese circles in Shanghai believe that America's action will prove a long step toward the sever ance of diplomatic relations between the two nations and also that it will inevitably speed up Japanese southward expansion through Thailand, be cause of the necessity for Japan to obtain raw materials. The British Empire, the United States, and the Netherlands normally supplied Japan with 86 per cent of her essential war materials. The actual seizure of Japanese ships in American ports is not authorised under the American order, but Japan use vessels will not be permitted to sail from American ports without permission from the Treasury. The American Department of Com- j merce estimates that the order will result in a trade loss to the United States of 50,000.000 dollars annually. The Office of Production Management has ordered the freezing of all stocks of raw silk in the United States “to meet the threatened shortage due to unsettled conditions in the Far East.” China has given warm support to the British and United States action' in freezing Japanese assets. A Reuter I message from Chungking this afternoon says that both Government and public services welcome the move as a definite abandonment of the appeasement policy toward Japan. A Government spokesman said he hoped that an embargo on oil shipments to Japan would be put into effect by the United States.

, at the request of the Chinese Governj ment the same steps have been taken I regarding Chinese balances in Britain l as have been taken against Japanese : assets. It is understood that the same request has been made to the governI ments concerned regarding Chinese i credits in the Dominions. I Treasury directions which have been issued by the British Government ! blocking the sterling balance and other j assets of persons resident in China j come into operation on 29th July. [ General authority w ill be given for any j payments in the sterling area authori ised on behalf of the Chinese Government as well as payments necessary l for the fulfilment ol certain outstanding transactions.—B.O.W.

ECONOMIC BLOW TO JAPAN

SUPPLIES CUT OFF FROM DUTCH EAST INDIES (Rec. 9.30 a.m.) Batavia, July 28. The sanctions imposed also apply to China. Dutch officials point out. however, that this now includes consign ments of goods via Burma road or any other route whereby free China was assured of receiving them. Well informed circles in the East Indies anticipate that Japan will probably endeavour to cheapen the effect nf the sanctions. However, it is regarded as a great economic blow, not only cutting off tin, rubber, vegetable fats and quinine but also irreplacable trade. During the period January-April last the East Indies imported Japanese goods to the value of £5,000.000, compared with £5.250.000 in the same period last year, and exported £2.652.000 to Japan in the first four months of this year compared with £2.733.000 in the corresponding period last year —U.P.A.

CHINESE CREDITS

(R*’c. 9.15 a.m.) Rugby. July 28 It is officially stated m London that

FRICTION ENDED

CHUNGKING AND CHINESE COMMUNISTS (Rec. 9.0 a.m.) Tientsin, July 28. The newspaper “Yung Pao,” which frequently reflects Japanese army opinion, reported that the Chungking regime and the Chinese Communists have reached a compromise, ending the friction. The Reds have agreed to support General Chiang Kai-shek to the end, placing themselves under Chungking supervision and disbanding the fourth route army. Chungking has agreed to subsidise the Reds to the amount of 2.000.000 dollars a month and slightly extend the territory under Communist control.—U.P.A.

THREAT TO SIBERIA

REPORTED JAPANESE MOVE Chungking, July 28. The Military Council reported a series !of warlike Japanese moves largely in ithe direction of Siberia. It said that vast quantities of arms and gasoline with technicians were being sent to , Manchukuo and Korea, and there were heavy air force concentrations in ManJchukuo and at bases east of Harbin. ' MANOEUVRES IN JAVA Batavia, July 27. Extensive A.R.P. exercises and Army j manoeuvres covering the whole of west I Java were begun to-day. The Java Press reports that the Netherlands East Indies Second Army and Country Guards are growing steadily. It is estimated that the present J strength of the reserve totals GOO bn-

INCIDENT AT SHANGHAI

HO USE-TO-HO USE SEARCH B Y JAPANESE Shanghai, July 27. Numerous Europeans, Jewish refugees. and hundreds of Chinese civilians were man handled by Japanese marines duringa 12-hour reign of terror in the Hongkew section following the fatal shooting of a Japanese naval officer in the Japanese-occupied part of the inter national settlement supposedly by a Chinese gunman. The Japanese searched the district house by house, ousting the occupants and forcing them to stand all night in the rain. Thousands of people of both sexes and all nationalities were roughly searched by the Japanese marines. JAPANESE RETALIATION AGAINST UNITED KINGDOM. ißec. 9.30 a.m.) Tohio, July 28. The Finance Minister applied the freezing regulations to Britain and Northern Ireland in retaliation for the freezing of Japanese assets.—UP.A.