MORAL EMBARGO LIKELY

Timaru Herald, Volume CXLVIII, Issue 21553, 16 January 1940, Page 5

MORAL EMBARGO LIKELY

Deadlock Ih Trade Treaty United Press Association —By Electric Telegraph—Copyright (Received January 15, 6.30 p.m.) NEW YORK, January 14. The Washington correspondent of the United Press of America says that the Japanese trade crisis appears to have reached a deadlock and prospects are increasing that there will not even be a stop-gap agreement when the treaty expires on January 26. The United States is believed to be prepared to enter into a non-treaty period without substantial changes in trade status until it is ascertained whether the incoming Cabinet will meet the American demands. If there is no satisfaction within a reasonable time it is believed that Congress will be given a free rein to act on the numerous anti-Japanese embargo measures, also that Mr Cordell Hull will extend a moral embargo. The indications are that the United States is anxious to avoid anti-Japanese retaliatory measures at present. The greatest threat to Japan is that Congress may decide overnight to pass cne of the six pending Bills providing for an embargo on the sale of war materials. It is understood that only Mr Hull's influence has prevented this action from being taken. It is emphasised that the defeat of the measures would embarrass the United States as Japan would feel at liberty to intensify commercial hegemony in China. The choice of Admiral Yonai and Mr Arita is regarded as a gesture of appeasement to the United States. The Tckio correspondent of the United Press of America says the Foreign Office spokesman stated that Japan’s draft of the proposed stop-gap agreement with the United States had been presented to the State Department at Washington. The Japanese Foreign Office expected a response before the trade pact expired. Japan was agreeable to a temporary arrangement to operate pending a formal long-term pact. The spokesman added that he did not believe that the change in the Cabinet would affect the negotiations. interest In Statement Widespread interest and discussion regarding the statement by Mr W. Stimson, a former Secretary of State, that there should be an embargo on supplies to Japan, is evidenced by a flood of letters in the “New Yofk Times” preponderantly favourable, characterising assistance to Japan as discreditable to the United States, but the prdbleffis are approached cautiously. For example the “New York Times,” editorially answering criticism of a suggestion that it is desirable to seek the support of other powers, emphasised that joint action had greater moral significance than unilateral. The embargo would necessarily have certain consequences beneficial in strengthening the Japanese moderates instead of driving them into the arms of the militarists and thence into the arms of Russia, thus ushering in a new chapter of still greater anarchy in Asia.