Mr. Arnold declared that the dogma that our trade with Japan is far more valuable than that with China is a "delusion." While we are having an immediate gain in Japanese trade through the sale of war materials, this will be cancelled by appalling losses in Chinese trade in the future Soft should China lose, "When hostilities began in July, 1937, China presented to the world the most alluring picture in prospects of increased trade. China, with a quarter of the world's population was embarking on a vast modernization programme which would have startled the world.
We were favoured with prospects for the annual sale to China Jof hundreds of millions of dollars worth of peace time commodities. Now our cotton and tobacco markets in Japan will be wiped out if China falls, for China will be reduced to a condition of serfdom and obliged to grow not only all the cotton needed, for Japan's vast textile industries, but} also the tobacco for her government! 3 tobneco monopoly.
Two-fold Loss Mr. Arnold pointed out what he declared is already a two-fold loss in commerce with China, suffered by America through Japanese war measures and forecast even greater losses if the Nipponese armies are vietorious.
"Afler the Japanese marched their armies into Manchuria we were ase Cruclal Telephone Talk London, Nov. 11 Virtual agreement on the signature of the Anglo-American commercial pact was reached last 'Tuesday fol lowing a telephone conversation be. tween the Prime Minister, Mr, Neville Chamberlain, and President' Rous volt, well-informed City quartet: stated today.
Tt was during this long-distance conversation that the two statesmen ironed out the last diMeultics in the way of a sticcessful conclusion of the agreement strived for during the past two years, Anglo-American quarters here assert that Germany has already pressed her readiness to puchi US, agricultural products which Bri-fain is Hable to import under the new treaty but for which she may not find ready markets.
As a counterpart to such purchases, it. is understood, Britain would undertake to import some German specialty goods or to employ a num ber of German experts.
General comments upon the pr sions of the mew Anglo-American trade pact classify them as. most likely to constitute an important stage in the restoration of freedom of international exchanges.—Havie.
Text read from the printed page and cleaned; old type leaves the occasional error.