The Wanganui Chronicle THURSDAY, JANUARY 19, 1939. JAPAN’S ASIAN POLICY

Wanganui Chronicle, Volume 83, Issue 15, 19 January 1939, Page 6

The Wanganui Chronicle THURSDAY, JANUARY 19, 1939. JAPAN’S ASIAN POLICY

l_ pHE forecast of Japan's reply to the United States and the United Kingdom is in accordance with the anticipation expressed yesterday in this column. Japan now denies the principle of the “open door” for foreign trade in China. Japan has already formulated her plans for the exploitation of China, and these plans have been advanced on the assumption that the Government of General Chiang Kai-shek is now non est. It is asserted now that the main reasons for the failure of China’s Government to develop the resources of the country lay in its lack of capital and technique, and of stability in the political situation. It is true that China lacked sufficient capital to permit of large-scale exploitation of resources, but the capital would have been forthcoming from America and the United Kingdom, with Japan joining in, had not Japan deliberately wrecked the project. It is true also that the Chinese lacked technique, but this, too, could have been supplied from the outside just as it was supplied to Japan when her own industrialisation was in its early stages. It is true that the political situation was not sufficiently stable, but had the country not been disrupted by the invasion of the Japanese armies there was a very favourable prospect of the political sitution improving and an increasing efficiency in the general administration of the country being accomplished. It. was to ensure the dissipation of these fair prospects that Japan embarked upon the task of subjugating China. Having, to a large extent, accomplished that task, she has now started to capitalise her military gains.

Japan looks to China to supply such materials as iron, coal, salt and cotton, and from Manchuria, wool and meat as well, in due time.

Two companies have been organised to aid in the reconstruction and development of China—the North China Development Company, Limited, and the Central China Promotion Company, Limited. The North China Company will operate in Manchuria, where the railways are in good operating order, and the country has not been subjected to the ravages of war. The capital of the company will he 350,000,000 yen, or roughly £14,500,000. The company, however, is authorised to issue debentures up to five times the amount of its paid-up capital, making its resources the equivalent of £87,000,000. The company will, however, operate as a holding company, that is to say, it will invest its capital in subsidiary companies, thereby bringing a co-ordinated control into the general operation of developing Manchuria, but leaving each individual unit a fair measure of freedom within which to develop its own irtiative and enterprise. The enterprises sponsored by the. North China Development Company, Ltd., will undertake the following operations: (1) Transportation, harbour and port improvements; (2) communications; (3) electricity supply; (4) mining; (5) manufacture, sale and utilisation of salt; (6) other enterprises necessary for accelerating the economic development of North China. The Central China Promotion Company is authorised to issue capital scrip to 100,000,000 yen, <»nd debentures to five times its subscribed capital, making the total capital resources about £24,51X1,000. These funds will also be used to finance subsidiary companies, but the Central China Company may, having first obtained the consent of the Government, operate undertakings direct; that is, without, the aid of a subsidiary company. It is assumed, however, that in consequence of the devastation caused by the war, operations will be concentrated upon the restoration of public utilities and the re-estab-lishment of industries already in existence, particularly those in the Shanghai area.

With this heavy employment of Japanese capital in longterm investments in China, and with the long-term plan of drawing upon the mainland for increasing supplies of raw materials, and the sale thereto of a much larger quantity of manufactured goods. Japan’s plans naturally and necessarily contemplate the bringing of the whole Far East within the yen area. This would cause the whole of the Far East to be dragged up and down by the dictates of Japanese policy, while Japan would be greatly eonvenieneed by a simplification of her exchange problems.

Hitherto, Japan has suffered foreign intervention which robbed her of the fruits of victory; to-day Japan feels that she is safe from intervention, consequently rhe will not yield ground to the United States and the United Kingdom in their demands for the continuation of the “open-door” policy in China.