JAPAN'S MOVE

New Zealand Herald, Volume LXXIII, Issue 22421, 18 May 1936, Page 9

JAPAN'S MOVE

PACIFIC ISLANDS CONTROL FROM FORMOSA « governor-general ■WIDE POWERS PROPOSED HUGE AREA INVOLVED JJv Telejrraph—Press Association—Copyright (Received May 17, 5.5 p.m.) TOKIO, May 1G The Japanese newspapers feature the details of Japan's impending developments in the Pacific. They state that as the result of pressure from the Navy, a high naval officer is to become Governor-General of Formosa, increased status and powers which will enable him to give proper attention to the Navy's socalled "southward policy." The Governor-General will control the JJariannes, the Carolines and the Marshall Islands, which number 2550. This Trill ensure the rational reorganisation of a huge area in tho Pacific extending southward from Japan to the equator. Mr. Arita, Foreign Minister, stated in the Diet that Japan had firmly decided never to give up the rights conferred upon her in her mandate over the Pacific islands. The Budget has been passed by tho Lower House. It provides for an expenditure of £133,000,000, of which a sum of £32,000,000 is for the Navy and £31,000,000 for the Army. A total of £41,000,000 is required in loans to balance Budget.

The Caroline, Marshall, Marianne and Pelew groups of islands, to the number of about 2500, are scattered over 20 degrees of 1 latitude and 40 degrees of longitude immediately north of tho Equator and New Guinea. 'lhe total area of the islands is about 550,000 acres. The groups generally are very fertile and support a large native population.

The islands in 1914 were German possessions and were administered together with German New Guinea and tin; Bismarck Archipelago. After the outbreak of war thoy were seized by Japan and later, under the Treaty of Versailles, Japan was giveiuthe mandate to govern all the former German possessions north of the Equator. Civil administration began on April 1, 1922. For administrative purposes the Pelew group is included with the Carolines, and Japan's mandate is generally referred to as covering three groups, the Carolines, Marshalls and Mariannes.

Before the Great War there was much trade between Australia and these groups—a trade maintained by regular lines of British and German steamers. That traffic has now almost entirely gone to Japan. Japan has set about the development of the groups in vigorous fashion, and, under her government, the economic value of the islands has considerably increased. Large numbers of Japanese have settled in these islands since 1922.

The earner history of the groups was connected with Spain, but in 1885 the new German Empire hoisted its Hag in one of the islands and claimed much of the western territory. The groups finally were ceded by Spain in 1899 and became German possessions, with the exception of Guam, one of the largest of the Marianne Islands, which belongs to the United States.

The Japanese, after seizing the islands in 1914, proceeded in 1922 to establish the South Seas Bureau for the civil government of the islands. The director of the bureau, under the superintendence of the Japanese Minister ,of Overseas Affairs, manages the various administrative affairs of the mandated territory. Practically all important matters are decided by Japanese Imperial ordinances.

The major industry of the islands is sugar-growing and refining, which has made remarkable strides under Japanese direction. The main products are coffeo, corn, potatoes, tapioca, pineapples, bananas and tangerines. Agricultural experimental stations have been introduced and improved methods are resulting. Copra is also a valuable export and deposits of guano are being worked to the extent of about 60,000 tons a .year.

TROOPS FOR CHINA TOKIO NOTIFIES BRITAIN MOVEMENT TO THE NORTH LONDON, May 15 The Sun-Herald news service states that Japan has notified Britain that Japanese reinforcements will move into North China immediately. Some will go to Tientsin and some to Peking. Additional troops will be despatched next week. < The Japanese assert that this movement of forces is necessary to protect the increased numbers of Japanese nationals in North China and to check the growing activities of Communists. However, there is a strong possibility that these troop movements are associated with' sweeping demands with which Japan contemplates confronting the Chinese Government. The smuggling activities of which Britain complained last week are believed to be part of a plan to torpedo Chinese currency reform generally so as to embarrass the Chinese Administration. The Nanking Government then probably would be unablo to resist Japan's demands which cloak her ambition to i control all China as she now controls Manchukuo. The smuggling activities of the Japanese, their currency manipulation and the development of their autonomy movement are undermining China's economic and financial strength and threaten to prevent her projected currency reform. In connection with this Sir Frederick Leith-Hoss, financial adviser to the British Government, is China at present.