THURSDAY, NOVEMBER 29, 1934 TRADE WITH MANCHUKUO

Otago Daily Times, Issue 22432, 29 November 1934, Page 8

THURSDAY, NOVEMBER 29, 1934 TRADE WITH MANCHUKUO

It is rather unfortunate that, following closely upon the visit of a British industrial mission headed by Lord Barnby to Manchukuo, with the object of ascertaining' what opportunities may be made for British trade in a large, thickly populated, and potentially wealthy but as yet undeveloped part of the Far East, the difficulty should have arisen in the shape of the declaration of a Manchukuo State oil monopoly. The British trade mission was entirely unofficial and nonpolitical in character, being sent out by the Federation of British Industries. The oil monopoly declaration is, however, a matter of international interest, and, as Sir John Simon indicated this week in the House of Commons, the British Government has found it necessary to make representations on the subject to the Government at Tokio. The United States Government has likewise made representations of protest on behalf of American oil interests. In the meantime, however, State control governing the importation, supply, and distribution of oil, and the fixation by law of the price of all petroleum products has apparently come into operation in .Manchukuo. The protest by the foreign Governments is grounded on the

contention that the creation of a monopoly of the kind involves a violation of treaty provisions, to which Japan is a party, relating to the maintenance of equal opportunity of trade in China. Some weeks ago the Foreign Spokesman at Tokio was reported to have stated that Japan was unaware that she had any treaty obligation to maintain the open door in Manchukuo with foreign Powers, of which she was herself one. It was suggested by him that as the Powers did not recognise Manchukuo as an independent State, but regarded it as part of China, they should address their representations to Nanking. Evidently such reply as the British Government has thus far received from the Japanese Government has not afforded it much satisfaction, as Sir John Simon has indicated that the matter is still receiving close attention. The inference has been drawn that Japan has in view the establishment of a trade monopoly in Manchukuo largely financed by Japanese capital, and that she aims at the accumulation, at the expense of foreign companies, of vast reserves of oil. However that may be, foreign oil interests are naturally perturbed at the situation which confronts them, and the general augury seems scarcely of the best for the successful development of British enterprise in regard to Manchukuo. The prospect in that relation must largely depend upon the extent to which British enterprise is able to co-operate with Japanese interests. The British trade mission visited Japan and was very well received there both by the Government and by leaders of business and finance with whom it was able to discuss the possibilities of increased co-operation between the industries of the two countries. It evidently came to the conclusion that the most effective way of promoting Anglo-Japanese trade co-operation was for the responsible leaders of industry in Britain to get into personal touch with the corresponding leaders in Japan and endeavour to reach agreements advantageous to both countries. The industrial mission appeared, however, to be impressed with the possibilities of British industry participating in the work of developing the resources of Manchukuo. But it was for the Manchukuo authorities to decide, observed Lord Barnby in a speech at the official reception of the mission, whether and to what extent they desired co-opera-tion in the great work which they had undertaken. It' is difficult to regard their declaration of an oil monopoly as an altogether auspicious initial gesture.