STRONG NOTE TO JAPAN

Southland Times, Issue 23652, 29 October 1938, Page 7

STRONG NOTE TO JAPAN

America Opposed To Trade Situation

EVENTS IN CHINA SINCE BEGINNING OF WAR

(United Press Assn.—Telegraph Copyright) (Received October 28, 8.40 p.m.) WASHINGTON, October 27. The United States has informed Tokyo in a forceful, bluntly-worded Note that she is finding it increasingly difficult to reconcile herself with the trade situation the Japanese have created in China. The Note lists arbitrary and illegal acts to the detriment of the United States, contrasts the Japanese promises with Japan’s performances and asks for prompt measures to maintain the “open door in China. The Note was delivered in Tokyo on October 6 and has just been made public. It is not revealed whether Japan replied. Presumably she did not, in spite of the sharp concluding paragraph: “The Government believes that in the interests of the relations between the United States and Japan an early reply would be helpful.” The Note asked for the. discontinuance of exchange control in the parts of China controlled by the Japanese, the discontinuance of monopolistic or preferential Japanese projects, and the discontinuance of Japanese interference with American property and other rights, including the censorship of mail and the restrictions upon residence, travel, trade and shipping. Five specific illegal Japanese acts are given in detail, all alleging that the Japanese control huge Chinese enterprises. : ‘ AMERICANS PENALIZED The Note gives as an example Manchuria, where Japanese companies are given privileged or exclusive positions in the business world, compelling . a large part of the American companies to withdraw. Two specific cases are given where Americans have suffered so seriously as to result in exchange control.

The Note recalls a warning sent by the United States to Japan against the establishment of preference or mon* opolistic rights favouring any foreign country in China, and the assurances the Japanese Foreign Minister (General Ugaki) gave the United States Ambassador (Mr J. C. Grew) on July 4 that the “open door” would be maintained.

The Note asserts that nowhere has the United States attempted to impose embargoes, import prohibitions, exchange controls, preferential restrictions, monopolies or special companies designed to eliminate Japanese trade and enterprise. Orfe interpretation of the United States’s intention behind the Note to Japan is that unless a favourable reply is received very soon “relations between the two countries will become strained.” * It is also felt in certain quarters that Japan could reasonably conclude that the United States intends some form of retaliation against Japanese business men in the United States or in areas where American influence is predominant similar to the violation of American business men’s rights in China.

BRITISH DOMINANCE ENDED?