1938-01-20 — Page 10

Always

a good

reception

the World

Over

White Label WEST SCOTCH WHISH obo Dewar & Soc

OF GREAT AGE

·DISTILLERI

PERT

DEWARS

"White Label called for everywhere

SOLE AGENTS:............

A. S. WATSON & CO., LTD.

Jel. 28151.

CLEARANCE SALE PROCEEDING

Bargains In The Men's Wear.

LINCOLN BENNETT

SOFT FELT

HATS

SNAP BRIM

IN

ALL SHADES AND SIZES

USUAL PRICE - $22.50

TO BE CLEARED

AT

$12.50

BARGAINS IN ALL DEPTS.

LANE CRAWFORD'S 725252525

The House of Quality & Service

G. FALCONER & CO. (HONG KONG LTD.) WATCHMAKERS, & JEWELLERS, DIAMOND MERCHANTS, UNION BUILDING (opposite G.P.O.)

Agents for ADMIRALTY CHARTS, ROSS' BINOCULARS and TELESCOPES, KELVIN'S NAUTICAL INSTRUMENTS, ENGLISH SILVERWARE Direct from Manufacturers, High Class English Jewellery.

THE CHINA MAIL, JANUARY 20, 1938.

The China Mail

inety-Third Year Publication

mains in the background. nation at war must always cur- tail exports and increase im- porta. The demand for essential war materials grows. Industries which normally serve the export trade are, in part, at least, turn

3A Wyndham Street, Hong Konged to war uses.

Telephone 20022.

London Office:

Garrick Street, London, W.C.2.

Notice To Contributors. All communications intended for publication should be addressed to the Editor, and be accompanied by

the Writer's Name and Address,

not necessarily for insertion but

as a guarantee of good faith.

Subscription Rates.

Months

6. Month's

One Year

HK$ 9.00

H.K.$18.00

H.F:$36.00

Postage Abroad Extra

Hong Kong, Thursday, Jan, 20, 1938.

JAPAN'S FINANCES

A second reason why Japan desires a quick decision is that every additional month,even every additional week or day of struggle makes it more d

difficult to preserve the fiction that there is no war and increases the pos- sibilities of friction with other

powers.

as the It is inevitable that, war assumes a more widespread character, the and protracted injury to foreign commercial in- terests in China will increase. And there are bound to be more and more issues on which Japan- ese military and naval officers and foreign business men and diplomatic and consular repre- sentatives will not see eye to eye.

A third reason for seeking as speedy and decisive a solution as possible is Japan's technical mil- itary superiority to China. Given their many advantages in staff work, training of officers and men and provision with modern weapons, the Japanese military leaders could desire nothing bet ter than an early "showdown."

Yugo-Slavia's Policy

between An understanding Italy and Yugo-Slavia was long As the area of the Sino-Japan- regarded as one of the essentials ese conflict steadily widens, the for lasting European peace, and importance of the time element France, before any country, was becomes increasingly evident. It eager that it should be achieved. is necessary for Japan not only The present understanding, how- to win, but to win with a reason ever owes nothing to the good able degree of speed if there is offices of France and much to to be a good prospect of har- the diminished strength of the victory. League, the rearmament of Ger- vesting the fruits of --- Time works, in the main, for many, and Italy's new designs.

Yugo-Slavia is a small country China and against Japan. *

only Austria separates it from War Minister Gen. Hajime Germany and only the Adriatic Sugiyama, in a recent statement from Italy. Thus Yugo-Slavia to a group of members of the has lately striven-as Poland, Japanese Diet, set forth in the another country set among giants following words Japan's policy-to take the middle way be of seeking an early decision:tween conflicting alliances. The first gesture to Italy was made It is the earnest wish of the by Yugo-Slavia in her Concordat Japanese Government to end the

with the Vatican in 1935. Italy present situation as soon

be- possible. With this desire in view,tween Yugo-Slavia and Bulgaria,

next prompted discussions it has been decided to open posi and the pact of friendship be tive military operations, instead

as

of fighting - the Chinese when tween the two countries at the

beginning of this the past, 80 they attack as in

year ended that China will realise as early their long disputes over frontiers as possible that she should not and minorities. In March the fake an antagonistic attitude movement towards Italy came to against Japan. We will, therefore, a climax in the Belgrade pact of not be caught by China's tactics trade and friendship, by which Yugo-Slavia recognised the Ital of purposely prolonging the

ian hold over Albania and Italy cident.

promised to give kinder treat There are three good reasons ment to the Yugo-Slav minorit- why Japan wishes to impose ies around Trieste and Fiume. its terms of settlement on China The commercial part of the treaty as quickly as possible. First, was enlarged during the recent and most obvious, is the strait- visit of M. Stoyadinovitch ened position of the state finan-Rome. M. Delbos, however, during ces, of which yesterday's warn- his visit to Belgrade did not find ing to the Japanese nation by that there had been any lessen- Baron Goh provided ample evid- ing of Yugo-Slavia's regard for ence. Even before the outbreak France the earlier visits of the of fighting in China în July the Yugo-Slav Prime Minister to Japanese Finance Ministry rec- Paris and London showed that koned with a deficit of almost it was as warm as ever or that one billion yen.

Yugo-Slavia has, at any rate, any immediate intention of join- Moreover, Japan's gold re-ing the anti-Communist pact, serve is worth only about half nor does the visit, just conclud- a billion dollars—not a large ed, of M. Stoyadinovic to Berlin, chest for a modern war, especial contain any hint that Belgrade ly as it would be very risky to is drawing away from Paris, exhaust all financial reserves in Yugo-Slavia's policy is natural a conflict with China, when a in the present state of the world much more dangerous potential to countries which are set be- enemy, the Soviet Union, re-tween the great and turbulent.