JAPAN IN FAR EAST.

Western Star, 24 February 1939, Page 3

JAPAN IN FAR EAST.

BRITAIN'S POSSIBLE LOSSES

NIPPON'S ECONOMIC GRIP. Britain is perturbed about the possible loss of huge sums which sho has invested in China over a long period. Simultaneously, she faces an unspoken threat that her trade may be excluded from that country, though this would be less grave than the lose of her investments.

Japan lias not so far communicated her intentions to Britain, nor has Britain opened the question with Japan; consequently, newspaper .reports of "decisions" are unfounded.

Nevertheless, Britain is prepared for the worst, on the basis that the trend of Japanese policy, despite Japanese Spokesmen's protestations, has always been towards monopoly. British official quarters say it is impossible to tell whether Australian or other dominion exports to China and Japan will ultimately be affected, but it is conjectured that Japan will show some consideration for States which already have, trade agreements. There is little that Britain can do. AH recent efforts to negotiate outstanding differences with Japan have failed, including an attempt at a wider understanding with Japan. The situation is to some extent ascribed to the refusal of the United States to co-operate with Britain in i firm stand against Japan and to the failure of the alternative policy of ''parallel action" by Britain and America.

BRITAIN FACES THREE FACTORS,

Britain now finds herself with three

Actors—Germany, Italy, and Japan—■ vbose entente, if so far not consoliTarted t 0 the extent claimed, might very easily be hardened by provocation from Britain.

Britain has some difficulty in find, 'ng any support. France is immoibi'•sed by her internal troubles, and Russia is an unknown quantity, ifnited States opinion is taking a long time t 0 grow firm. It is realised, however, that'' the Tapanese have .not yet conquered. China. They have no effective control of the -o-th, iand even if Chiang Kai-shek is eclipsed, the spread of anarchy is likely L o increase Japanese difficulties. Nevertheless. China is in a sorry plight. Britain, despite months of negotia'ion, has received no satisfaction regarding such, grievances, as the denial >f facilities to shipping on the Yangtze, occupation of a large part of he Shanghai International Settlement, -nd refusal to pay interest to British bondholders interested in the Chinese railways now under Japanese military control.