BRITISH POLICY

Waikato Times, Volume 124, Issue 20832, 16 June 1939, Page 7

BRITISH POLICY

A GRAVE SITUATION STATEMENT BY PREMIER SERIOUS IMPLICATION (Official Wireless) (Received June 16, 1 p.m.) RUGBY, June 15 The Prime Minister, Mr Neville Chamberlain, in a crowded and eager House of Commons, made statements on Tientsin, the Lmitation of profiteering in arms, and the proposed rearrangement of machinery in connection with British publicity abroad. Speaking of the Far East, Mr Chamberlain said: “The Japanese blockade of the British concession at Tientsin began at 6 a.m. on Wednesday. British subjects and other foreigners are being detained and searched at the barriers. I understand that food supplies are being allowed into the concession, but there would appear to be a tendency for prices to rise. There also has been interference with British shipping up and down the river. The Britisli military authorities have taken all precautions possible for the maintenance of order, and 11.M.5 Lowestoft is moored alongside the Bund at the British concession. The British Ambassador has made full representations to Japan, and has been instructed to point out the danger of provocative action by the local Japanese, which might lead to regrettable incidents. “The Ambassador has further drawn attention to the serious implication of statements made by the Japanese military spokesman at Tientsin, to the effect that the questions at issue cannot now be settled by the handing

over of liie accused men, but that the objective of the blockade is to secure a much wider form of cooperation from the British authorities in North China, it is clear that if this statement represents the views

of tlie Tokio authorities the Japanese are using the incident to make demands far wider and more far-reach-ing than the question of handing over the four men. Such demands would raise important questions of policy, in which oilier great Powers are concerned no less than this country, and the closest loueii is being maintained with France and America. Japan Refuses Proposed Inquiry “Meantime Britain is considering the situation created by the refusal of the Japanese to accept its proposal for a committee of inquiry and by a continuance of the blockade at the concession. “Mr Chamberlain was asked whether the Government intended to invoke Article 7 of the Nine-Power Treaty, which provides for consultation with the signatory Powers. lie replied: “The situation obviously is grave and the Government is considering it in all its aspects. I am not prepared at this moment to say what action we shall decide to take.” He declined to add anything in reply to suggestions from oilier members as to the action the Government might take. Limitaticn of Profits Further measures to limit the profits of firms engaged in armament manufacture were announced by Mr Chamberlain. who recalled his undertaking at the time he announced the introduction of conscription that the matter of arms profits would also be considered. He said that the provision contained in the Ministry of Supply Bill, together with ordinary contracts procedure, revised as it had been from time to time to take account of changing conditions, went far in the direction of preventing excessive profits. The Government felt, however, that there might be cases where in particular, by reason of large increases in turnover, further measures of limitation were called for, and It therefore proposed to include In the Finance Bill provisions for a tax on concerns engaged on a large scale on armament work in respect of any excess profits arising from that work.

A memorandum explanatory of the proposals will be issued with the necessary ways and means resolution on Monday. British Publicity Abroad The Prime Minister’s statement on British publicity abroad was as follows: “The Government has recently given attention to the question of whether the further development of the present methods of publicity during peacetime is required. It is not the Government’s intention to set up a Ministry of information or propaganda, which, in its opinion, is not what is required at present.” MOTIVE FOR BLOCKADE LOCAL INCIDENT EXPLOITED CAMPAIGN AGAINST CHINA • United Press Assn.—Elec. Tel. Copyright) LONDON, June 15 In an editorial on the Tientsin position. the Times points out that Britain is ready to hand over the Chinese terrorists if valid evidence is forthcoming of their guilt. It is clear, however, that the four Chinese have never represented anything more than a pretext for bringing pressure to bear on British interests. The latest pronouncements broaden the signilicance of the blockade and lay bare the motives for its instigation. A local incident is being exploited to secure British participation in (tie campaign against China and British acquiescence in the ultimate exclusion of all but Japanese interests from Chinese territory. That, says the Times, is the inevitable reading of the events, and upon the continuation or olherwise of that impression British action will depend.