94
THE JUMPING FRØG OF MANCHURIA.
THE HONGKONG WEEKLY PRESS AND
I
(Daily Press, 11th August.) It seems that it is proposed to bring the foreign trade of Manchuria under the control of a huge monopoly, to be under the direct control of the Japanese Government. Not to appear too during to foreign countries, the monopoly is to be nominally divided into two one to have complete control of the communications, the other of the articles of trade, cotton goods, textiles and yarn, cement, beer, marine products, timber, etc. With regard to the former, the object is stated to be the working of the railways, and collieries of Manchuria. For this purpose the Government establishes ઠે. company, the shares in which shall be exclusively the property of the Japanese, and Chinese Governments or subjects of either; the Japanese Government to put into the company the railway or other property held by it in Manchuria. Shares are to be issued to the public to the nominal extent of one-fifth of the capital, but the shareholders shall not be required to pay up more than one-tenth of their nominal value. ¡ The head office of the Company is to bat Tokyo. All the officers shall be actually appointed by the Japanese Government, and their salaries shall likewise he fixed by it, and during their term of office they shall be absolutely debarred from undertaking any other business. The whole of the control, financial or otherwise, shall be under the Government. As under the treaty with China, Japan cannot hold railways and collieries in Manchuria, the company is nominally arranged under the joint authority of the two Governments, but it will be seen that the effective control will rest exclus vely with the Japanese Government. As to the use to which the organisation is to be put we find the explauation in another association, also to be in the hands of the Japanese Govern- meut. Five of the principle cotton mann. facturing companies about Osaka bave agreed to make a gigantic organisation for the purpose of controlling the export of Japanese cotton goods to Manchuria, and the Government has practically agreed to finance the who's affair, the Manchurian agency of which is to be placed in the bands of the Mitsui Company. Although the Government has not in so many words actually appeared as yet as the promoter. it should not be difficult to trace its sympathetic encouragement. Tae Govern- ment, then, is to guarantee in the first instance a loan of six million yen at four per cent., the loan is to be advanced in gold in Japan but to be repayable in silver at the various points in Manchuria. The company is to export a minimum of 12,000 bales, valued at 1,200,000 yea, I er annum, and the Mitsui Company is to sell it at the best price obtainable, possibly even at a luss, if necessary to move the goods. It is not to be considered necessary that the goods should be paid for in the first in-tance, the company being authorised at their discretion to sell on credit. If any one concern succeed in selling goods in any one year to the value of five million yen, the Government will allow it a rebate of one half per cent. on its advances. The goods are to be carried along the railways free of charge, or at most to pay half freights; and a similar arrangement is to be made with regard to all goods carried by Japanese steamers. Finally, for all this work, the Mitsui Company is to make no charge whatever to the shipper, it being under- stood that that company is doing its best to push on the trade, in order
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[Angust 20, 1936. life than is maintained in some older centres of civilisation. Looking at these and other circumstances, it were easy to attach more seriousness to this Alaskan affair than it really deservas. Bo consider-
to successfully promote the business in the face of inevitable competition. It is clear that the intention of the Japanese Government all through, while keeping to the letter of its engagements, is to get and keep as much of the foreign trade of Man-ing, churia in its own hands as it can, or to reader it so unprofitable to others that they will be glad to withdraw. This is bound to be a sore point with the rest of the com. mercial world, and Japan, having arranged such a favourable handicap, can afford not to take offence if we grumble and say un. kind things. Besides, there has been so much sickening nonsense talked about her "bushido" spirit that it is not to be wondered at if the pendulum of public opinion swings back violently and far. The thing to remember is that Japan has entered the war of com merce
for keeps
and this is the sort of war in which all is fair. Japan is a gigautic Trust, and those who cry down Trusts, it has been noticed, are t'ose who make nothing out of them, perhaps even lose by them. But those who are inside call it good business, and remind us that it is quite legal. Every Japanese, from the highest to the lowest, seems to be a stock- holder in the Japan amalgamation and if soldier and statesman and civilian are pulling together for their own interests, it is difficult to see room for either praise or blame. Yet it is rather amusing to find some British tariff reformers expressing annoyance at Japan's new and practically exclusive protective duties. What seem most to annoy them are the protests and excuses that the Japanese are worried into making. They do not realise that this diplomacy is exactly on all fours with the business suavity of the man behind the counter. Japan not acting dishonourably, as some are so ready to suggest; at least, Japan has done nothing worse than that fanious character of MARK TWAIN'S, who invested money on the saltatory power of a certain frog. It might be cheating, that transaction with buckshot, to the samurai soul; but we have noticed that business unen have usually smiled at the story. We cau, however, hardly expect the like applause from them when Japan wins with an unloaded frog fresh from the swanip, which, to make the parable fit still closer, we may be said to have brouglit to them.
JAPANESE SEAL POACHERS.
(Daily Press, 13th August.) When REUTER informed us
that the American Government had no intention of apologising to the Japanese Government for the killing of the seal poachers at the Aleutians, we were somewhat startled. It sounded unnecessarily truculent. A ro reading of the message, however, decided us that the worse than tactless expression implied more than the writer of the telegram intended. Taking the whole context, it appeared evident that America was taking the proper course, and though its despatch to Japan might not be an apology, it was in itself an indication that the Government wished Japan to take a friendly or at least dispassionate view of a regrettable incident. America, despite a good deal of very cre- ditable performances, is regarded as still a child in diplomacy, inclined to be too abrupt. It is not in the American nature
to
patiently endure the circumlocution which older nat ons seem to consider has ameliorative value; this tends to certain curtness which may often be unintentionally
offensive.
The youthhood of the American nation has also another characteristic, or at least it is popularly supposed to have; that is, a lighter estimate of the value of human
we are bound to regret the further indiscretion which we discover in one of REUTER'S messages published to-day, the one in which a connection is traced between the movements of certain of America's ships of war and this unhappy affair. It cannot but be mischievous to suggest such a connection, and we condemn it with more certainty in view of a convic. tion that it was merely a wild guess with ' absolutely no toundation, In neither country can such suggestions fail to arouse feelings much better left in abeyance. Perhaps the slain Japanese deliberately invited their fate; perhaps their slayers were too ready, too wanton, with their shooting. We do not know; and we ought to wait for the fuller information that should presently be officially forthcoming. The responsibility of newspapers commenting on a sub judice matter, without the fullest authentic advices, is indeed very great. The American public, or its press for it, is rather fond of talking war since the defeat of Spain; and the Japanese public, though it should be expected to have hal a surfeit of late is always touchy, and jealous of its national prestige. There is no dispute as to fishing rights: apparently it is admitted that the men were poaching, aud the only contro- versy that can be raised concerns the nature of their treatment.
Did their captors offer them a fair chance of submitting themselves to trial and punishment on con- stitutional lines? There is the suggestion that the Japanese “refused to surrender", which seems to imply that they were given the chance to which they were entitled. There was apparently some official on the spot before the revenue cutter arrived, and the presence of officialdom warrants us in casting out any preconceived impressions of the methods possible or probable in what we may call the wild north-west. Even in the event of the Americans being grievously in fault (which we Lave no right to suggest), there is still nothing which should involve the two nations 8.3 natious. America certainly should not consider it necessary to refuse an apology before Japan has demanded one; and Japan would certainly not demand one on the strength of reckless newspaper reports. If fairly left to Tokyo and Washington, the matter is sure of amicable arrangement, since neither nation is seeking a pretext for war. to have suggestions of warships hastening direct from one place to another, owing to a merely supposed tension, the tension
But if we are
will soon become real. M bdɔm will raise
its unreasoning voice, diplomacy will be embarrassed, and though the good sense of the governing authorities may avert the dauger for the time, there will be left rankling on both sides that which would surely make a mountain out of the next molehill.
THE GOLD RESERVE.
(Daily Press, 14:h August ) The "dismal science" of finance is sup- posed to have no more apt or experienced exponent than Lord GoSCHEN, and a good deal of interest attaches therefore to any pronouncement he may make on questions with a financial bearing. On July 11th, at the fiftieth anniversary of the foundation of the National Discount Co., Ltd., he announced to a distinguished company, which included the GOVERNOR of the Bank
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