The Timaru Herald SATURDAY, DECEMBER 26, 1936 JAPANESE SOUTHWARD TREND.

Timaru Herald, Volume CXLII, Issue 20610, 26 December 1936, Page 10

The Timaru Herald SATURDAY, DECEMBER 26, 1936 JAPANESE SOUTHWARD TREND.

Something more than mere newspaper talk is behind the agitation being aroused in Japan in relation to what has come to be known as Japan’s southward advance. The sensational story published by a Tokio newspaper, suggesting that Britain, France, the United States, the, Netherlands and the Philippines, are conspiring ’to thwart Japan’s plans may or may not be authoritative, but there is no mistaking Japanese designs in the Pacific, and the possible reactions in other countries. Manifestly Japanese official opinion is becoming concerned lest the repercussions from the German-Japanese Pact may not be bo harmless as the Chancelleries of Berlin and Tokio hoped. It may not be true, at the ’that the leading Powers interested in the Pacific havQ combined in an attempt to thwart Japanese aspirations, but it is not denied that many anxious eyes are turned to the Pacific in face of Japan's declared expansionist policy, which takes no account of treaty obligations or the restrictions in pacts designed to outlaw war as an instrument of national policy. As a matter of fact, the trend of Japanese police is no secret.. Recent messages from Tokio offered a further indication of the southward trend of Japan's expansion, whidi until a year or two ago hud been on the neighbouring Asiatic mainland, chiefly in Manchuria, Outer Mongolia, and Northern China. In the South, of course, there are Formosa, ceded by China in 1895, and the islqjids held by Japan under mandate:

Now It is reported, a leading Japanese industrial concern at Osaka is despatching an official on a four months’ tour to examine the possibilities, of land purchase, cotton cultivation, and the establishment of spinning mills in the Philippines, the Dutch East Indies, and New Guinea. While it is admitted that there will be Australian or British opposition with regard to New Guinea, it seems to be assumed that neither the Netherlands nor the United Istates will raise objections when their interests are touched. Not very long ago Major-General McArthur, who has been, lent by the United States to the Philippines as military adviser, boasted that the defence programme of the Republic was dsigned to make invasion of the islands too costly for even “the strongest and most ruthless nation in the world.” This certainly sounds like meaning business as far as the Philippines are concerned.

Japanese trade with the Dutch East Indies and with the Philippines has been growing at a remarkable rate, and as they offer vastly larger markets than Manchuria or North China, the leaders of industry are urging the Government to assist them to exploit them further, which would explain why a South Seas section of the Foreign Office has been created at Tokio, from which an official is setting out to establish consulates in the islands.

Well-informed observers of the march of events in the Orient point out that the curious situation prevails, or it did until very recently, that whereas the army in Japan is primarily interested in westward expansion, several spokesmen for the Navy have pressed for a strong navy to assert Japan’s rights in the South Pacific, if necessary by force of arms. According to the report of a leading Japanese news agency, Admiral Takahashi, in a statement at a business men’s dinner at Osaka, said: “Japan’s economic advance must be directed southward, and the cruising radius of the Japanese Navy expanded to enable this advance to be accelerated.” More recently, in an address in London, Mr Yusuke Tsuruma, a leading author and Liberal member of the Japanese House of Representatives, adopted a more moderate tone when he claimed the right of Japan to y participate in the development of “unused territories all over the Pacific,” if some peaceful method could be found by which that could be done. He added, significantly, that he did not suggest that his “peaceful method” would be acceptable to the majority of his countrymen, but such was his hope. Apart from the Japanese economic penetration southward, of which we have had further news this week, the situation is made the more interesting because the Washington Treaty, which restricted the naval activities of Japan in, the Pacific, in common with those of Great Britain and the United States, will expire at the end of this year, with no prospect of renewal. So far the only outcome of the expiration of this treaty is the understanding being developed by Britain and the United States. But Japan, on her part, prefers agreements that will hamper her rivals while she rides merrily through existing treaties. The Anglo-American attitude, on the other hand, has rather disturbed official Japan because of the danger of a naval race in the Pacific which would, of prove ruinous to the Nipponese people. SOURCE OF CHRISTMAS PROSPERITY. Because of the claims repeatedly made that New Zealand’s domestic affairs are not affected by the trend' of world business, the new business records being established in the United Kingdom and in the United States, coupled with the post office and travel rush, would seem to furnish the average New Zealander with some rich food for contemplation. In the Homeland, Christinas celebrations are on a larger scale than in any recent years. Post Office business and railway traffic are reported to be exceedingly heavy; indeed, it is doubtful if the figures this year both in the United Kingdom and in the United States, will not establish new records. In the United States, every national index shows sharp improvements, industrial production being 110 compared with 87 last year. It is interesting to note in passing that 500,000 more automobiles have been produced and departmental stores report a shortage of such items as mink coats! The American Post Office Department reports the largest mails in history. In the Homeland the best news is revealed in the report of the Unemployment Insurance Statutory Committee. “It is anticipated,” we are told, “that a surplus of £7,000,000 a year will be found available for disposal.” In other words, the march back to work has been so constant that the unemployment insurance fund is receiving an income out of all proportion to the demands made on the account. “Employment is good,” says the report, “and the income of the fund is consequently high and its expenditure is relatively low.” The trend of business in the Old Land and in the United States inevitably affects the economic situation in New Zealand. At the moment, the Dominion is enjoying a new burst of prosperity because of the vastly improved conditions in Britain and the United States. The operations of overseas wool buyers, for instance, have resulted in a rich Christinas box coming to this country; indeed, it can be said without fear of contradiction that the economic pulse of the Old Land is definitely felt in this country; and to-day, the very unusual strength of the economic heartbeats in the Homeland and in the United States, are being strongly felt here, despite the unsound claims of those who cherish the false illusion that New Zealand is not affected by overseas trade conditions.