1938-05-27 — Page 18

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THE CHINA MAIL, MAY 27, 1938,

The China Mail

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The Japanese programme in China as is well known, is twofold first the establish- ment of Japan-dominated Chin- governments, and second launching of all sorts of economic developments, “in- cluding the harnessing of the Yellow River. But progress in the first is slow and illusory, and

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DOES AGGRESSION

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progress in the second is поп- existent, outside the things, which have been done in the Pei- ping-Tientsin area, which is far from the really important scene for development.

Japanese leaders in China are reluctant to admit it, and perhaps

not wholly conscious of it, but the financial pinch upon Japan's programme is extremely hard. It will be relieved only by foreign loans, which are not and will not be forthcoming.

The American and British money markets remain closed while Japan is engaged in a Chinese war of aggression, and even a paper peace unsanctified by official American and British Government approval would not change this situation. The Pow- ers that are friendly have not got enough money to handle their own programmes.

In Shanghai there has been It is not because Japan is work-much planning. It has not been ing quietly behind the scenes

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necessary to think too much except by methods which reveal of the plans was to be provided. about how the financial backing themselves in seizure of Chinese Enough trouble could be found mill property in Shanghai and without that, especially in such the control of the Shanghai- matters as discovering Chinese of Nanking Railway against the in-standing who were willing to defy their own Government and allow terests of British bondholders-their names to be linked with that so little has been heard late-those of the invaders. ly of her grandiose schemes for development of the "conquered" calculated to be speeded up now This stage of self-deception is

territories in China. Straws in that Hsuchow, has fallen into the wind, plentiful enough, tell Japanese hands, but the final re- quite another story, of further sult is unlikely to be of any serious miscalculation

greater importance and it will not in the solve the problem of finance. Now Japanese programme. To their far Japan's economy has already shock and surprise, the belief that been injured was strikingly re- inspiring reports of the immense week, in his outline of world vealed by Mr. Oliver Stanley this profits to be gained by co-opera- trade trends. Japan's overseas tion with Japan in the exploita- purchases of cotton have dropped tion of China's natural wealth practically to one per cent. of the pre-war volume. If the financial would tempt British and Ameri-problem has to-day reached the can financiers into the field has stage where such strict cutting- been sadly falsified. Apart from of-the-cloth is essential, Japan's any moralistic attitude which grand-scale plans for develop

ment in China cannot possibly may have been an influence in proceed far beyond the paper London and Washington, a purely stage. Foreign interests will cer- business study of the situation has been seen of the methods in tainly not intervene. Sufficient would certainly have resulted the Tientsin area to expose how Japanese overtures in falling on odd is Japan's idea of the open deaf ears. The conviction of door. Financing of a Japanese interest to squeeze out British, Tokyo that final military con-American and other interests, is quest is just a matter of time hardly likely to be accepted as is, strangely enough to the Jap-an intelligent interpretation of Even anese mind, not shared in West-commercial enterprise.

that, however, is of less force ern countries. They have yet to than simple recognition that be convinced that it is a better, nearly eleven months of warfare safer and fairer thing to lend have served to demonstrate not cash and materials to Japan for China's tremendous powers of Japan's military might, but use in China that it formerly endurable. How long Japan will would have been to do the same remain in China no-one to-day can thing for China direct having safely predict, but this much is certain that her hold upon an regard to Japanese obstruction to upwilling China will remain every foreign move prior to July, throughout the whole period so 1937, to lend financial support to precarious as automatically to destroy the confidence which China's programme for internal would be essential to any genuine economic reconstruction.

investment.

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