NEW NAVAL RACE.

Star (Christchurch), Volume LXVI, Issue 20282, 17 April 1934, Page 1

NEW NAVAL RACE.

U.S. and Japan Must Modify Policies. ENDANGERING PEACE. United Press Assn.—By Electric Telegraph—Copyright. WASHINGTON, April 15. The report on Far Eastern conditions, issued to-day by the Foreign Policy Association, predicts the end of international naval limitation and the inauguration of a new naval race in the Pacific unless America and Japan modify their policies before the 1936 naval conference. The report points out that the Washington policy, as stated by Mr 11. L. Stimson (President Hoover’s Secretary of State), makes the Manchukuo situation and naval ratio interrelated and interdependent, while Japan contends that they are separate and distinctive. It is suggested that America can either ease the situation by accepting the de facto situation in Manchuria or by granting other concessions such as allowing Japanese immigration on a quota basis and removing her naval bases in the Philippines. Otherwise “the Japanese refusal to discuss Manchuria and the insistence of the United States on the inclusion of Manchukuo (in the discussions of the Conference) would almost certainly lead to a complete deadlock. “Theoretically the United States could attempt to challenge Japan's supremacy in Asia by threatening to expand her navy. The consequences of such a programme, however, would be incalculable. To make the threat effective the United States would be compelled to abrogate the Washington Agreements, to build a navy at least twice the size of lapan’s and to fortify her naval bases in the Pacific. Since Japan would also be forced to expand her navy, the result would inevitably be a naval race which would endanger peace in the Pacific.”

STATUS OF MANCHUKUO.

United Press Assn.—By Electric Telegraph—Copyright. SHANGHAI. April 15. What amounts to an ultimatum has been presented to the Chinese Government through the Japanese Minister to China, Mr Ariyoshi, demanding the prompt restoration of postal and railway facilities between China and Manchukuo, failing which Japan indicates her intention to take such measures through Manchukuo to effect the resumption cf the service. Great importance therefore attaches to the discussion now taking place at Nanchang between General Chiang Kai Shek, President of China, Mr Wang Ching Wei and General Huang Fu. If China accedes to the Japanese demands and restores the services it will be tantamount 'to the recognition of the new state. To refuse the request will entail the risk cf further Japanese encroachment in North China.