STRONG NOTE

New Zealand Herald, Volume LXXV, Issue 23181, 29 October 1938, Page 13

STRONG NOTE

america_ angry ACTIONS of JAPAN [TRADE RESTRICTIONS CESSATION DEMANDED Telegraph —Presi Association—Copyright WASHINGTON. Oct. 27 The United States Government has informed the Japanese Government in a forceful and bluntlyworded Note that it is finding it increasingly difficult to reconcile itself with the trade situation which the Japanese have created in China. The Note was delivered to Tokio on October 6, but it has only just been made public. It is not revealed whether Japan has replied. Presumably she has not, in spite of the sharp concluding paragraph asking for an early reply. The Note draws attention to repeated exceptions the United States has taken to the actions and policies of Japan in China contravening the "open door" policy, and the repeated failure of Japan to carry out assurances that the •'open door" would be maintained. Privileges lor Japanese The Note then instances Manchuria, where Japanese companies have been jftan privileged or exclusive positions in the business world, a large part of the American companies to withdraw. "The United States is apprehensive lest there should develop in other areas of China occupied by Japan a similar situation, in its adverse effects upon the competitive position of American business, to' that which now exists in Manchuria," it is stated. The Note recalls the United States' warning against possible financial discriminatory measures against American interests in North China,, and instances the establishment recently of exchange control at Tsingtao and Chefoo, and the probable establishment of a similar system throughout North China, giving control of trade and commercial enterprise to the Japanese, and placing imports from and exports to the United States subject to the dispensation of Japanese authorities.

."Arbitrary and Illegal" Two specific cases are quoted where 'Americans suffered seriously from the exchange control. The Note adds: "The United States has already pointed out to the Japanese Government that alterations of the Chinese Customs tariff by the regimes which are functioning in those portions of China occupied by Japanese armed forces and which the Japanese Government has formally asgured of its support, are arbitrary and illegal assumptions of authority for which the Japanese Government has inescapable responsibility."

The Note recalls the warning of the United States to Japan against the establishment of preference -on monopolistic rights favouring any foreign country in China and the' assurances the Foreign Minister, General Ugaki, gave the United States Ambassador, Mr. J. C. Grew, on July 4, that the "open door" would be maintained, and then instances, notwithstanding, the inauguration of the China Telephone and Telegraph Company having exclusive rights ia North China and the China Telecommunications Company, which proposes- to control such communications in Central China.

Control of Commodities The Note further instances the Shanghai Island Navigation and Steamship which is to control water transportation in the Shanghai delta area; a Japanese company to operate the wharves at Tsingtao, and the formation of wool and tobacco companies to control these commodities in North China. ■ "The United States will find it difficult to reconcile itself to a situation in which American nationals must contend with continuing unwarranted interference with their rights at the hands of the Japanese authorities in China," the Note proceeds. "It is also pertinent to mention that in Japan, too, American trade and other interests are undergoing severe hardships as the result of industrial, trade, exchange and other controls, which the Japanese Government has imposed incident to its military operations in China."

"In its treatment of Japanese nationals and their trade enterprise, the American Government has been guided not only by the letter and spirit of the Japan-America commercial treaty of 1911, but by those fundamental principles of international law and order which have formed the basis of its policy to all peoples and their interests, and Japanese commerce and enterprise have continued to enjoy in the United States equality of the Note states.

Prompt Measures Demanded "In the light of the situation here reviewed', the United States Government asks the Japanese Government to implement its assurances already given with regard to the maintenance of the 'open door' and non-interference with American fights by taking prompt and effective measures to cause the following : "(1) The discontinuance of discriminatory exchange control and other measures imposed in areas of China under Japanese control which operate either directly or indirectly to discriminate against American trade and enterprise.

"(2) The discontinuance of any monopoly or any preference which deprive American nationals of their right of undertaking any legitimate trade or industry in China, or any arrangement which might purport to establish in favour of Japanese interests any general superiority of rights regarding the commercial or economic development of •By region in China. "(3) The discontinuance of interference by Japanese authorities in China *ith American property and other *ight«, including such forms of interference as censorship of American mail •ad telegrams, restriction upon residence and travel by Americans, and ~ *>pon American trade and shipping. "The Government of" the United States believes that in the interests of relations between the United fcufces and Japan an early reply would Irtlpful."