ECONOMIC PRESSURE

Poverty Bay Herald, Volume LXVI, Issue 19880, 6 March 1939, Page 7

ECONOMIC PRESSURE

RESTRAINT ON JAPAN

DEMOCRACIES' POWER IttTBARCHJ OX IMPORTS (Klec. Tt-J, Copyright—United Press Assn.) LONDON, Feb. 24. Britain, Franco and the United States of America possess powerful methods of economic pressure by which, if they so desire, they can force Japan's back to the wall, says the Tokio correspondent of The Times. It is this fact that is causing Japan to create an "economic bomb-proof shelter" in the Far East—an East Asian bloc under the sovereignty of Japan. Japan, unlike Italy and Germany, does not face a food problem every winter, but is confronted by a shortage of foreign currency unless the democracies buy sufficient Japanese products. The democracies need not put an embargo on the export of iron, rubber and oil to Japan. They need only discriminate against Japanese goods as a reprisal for Japanese discrimination against their trade to China. * Hypnotised by Germany The anti-Comintern alliance is to day good only for sabre-rattling. The Japanese atmosphere suggests, however, that economic pressure will not make Japan abandon easily the great prize at which she is aiming. But neither the Japanese army nor the people realise the overwhelming nature of the economic pressure to which the country may be subjected. They are blinded by the apparent ease with which, thus far, they have endured the strain; and Germany's exploits have hypnotised them. The Germans, however, are living in a chronic regulated scarcity which the Japanese thus far have not experienced. It would be' rash, of course, to predict that the Japanese would not tighten their belts for a test of endurance wherein they would also exploit the Rome-Berlin axis and use their naval power to injure their enemies.

Some gleams of hope remain in the democracies' agreement that a prosperous and secure Japan is the best guarantee of peace in the Pacific. Also the democracies do not object to Japanese trading in China provided they use fair competitive methods.

Moreover, China would gain by a Far Eastern stabilisation which might arrest the disintegration indicated by the loss of Manchvikuo to Japan and outer Mongolia to Russia. Accordingly the democracies' task will be a test of both diplomatic skill and political firmness. An over-brusque'show of economic strength would only confirm the insecurity complex from which the Japanese are suffering. U.S.A.'s Interest Evident

American opinion would unquestionably be greatly disturbed by Japanese attacks on Australia, New Zealand or the Dutch East Indies, says The Economist in an article discussing the possibilities of the American attitude in the event of a European war in 1939.

It is by no means impossible, and is even likely, that America will warn the Japanese Fleet to keep to home waters.

Such action, like any taken, would be regarded as being in America's own interests and not for affection for a foreign nation, but nevertheless it would greatly assist Britain and France by relieving them of liabilities in the Far East.

The paper, emphasising the growing American feeling for Britain and France, expresses the opinion that the United States would not be able U' assist the democracies to withstand the first brutal blows. But, it adds, it would render decisive aid in the second phase which it would enter far earlier than was the case in the Great War.