aloe delay, the Japanese reply p e ter a very long, and apparent!
4 and apparently unreal
mination, ans in China f October 6 on the subject was ín districts aanded to the U. S.
Friday. The American Note, afte: at length the various complaints which has been made concerning the manner in which developed in a manner detrimental to trading conditions in China were interests of U. S. citizens operating h this country, made the following demands 1. The discontinuance of discriminatory ex ngo control and of other measures im-Tol which operate either directly or indirectly sed i e as in China under Japanese conto disd against American trade and enterprise K aem 2. The discontinuance of any monopoly or of any rence which would deprive Ameri-any Matonal of the right of undertaking any legitimate trade or industry in China or of any arrangement which might purport to establish in favour of Japanese interests any general superiority of rights with regard to commercial or economic development. in any region of discontinuance of interference by na; and
Japanese authorities in China with American property and other rights, including suc forms of interference as censorship of American mail and telegrams and restrictions upon residence and travel by Americans and upon American trade and shipping.
Shorn of all its evasive verbiage the Japanese reply amounts to nothing less than a complete refusal to entertain any of the American demands, and, though in the drafting a spirit of sweet reasonableness seems to prevail, an examination of all the facts of the case show: that this gloss is but to hide the deliberate and unconditional rejection which. Tokyo has made. The attempt to justify the discrimination by exchange control in North China is weak in the extreme, either on the face of the reply itself, or in the light of the facts as they are known in China at this moment. The exchange control, the formation of the Manchoukuo-China-Japan economic bloc, the refusal to permit American traders in North China to do business unless financed through Japanese banks at rates out of all proportions io the existing exchange conditions is clear and satisfactory proof of the existence of just that type of discrimination of which the United States so pointedly complains.
The Japanese reply to the American complaint, regarding the revision of the Customs Tariff some short while ago, that the schedule is one approved by the Powers in 1931, does not obliterate the fact that its adoption was designed primarily to give Japanese traders special benefits, and it was most certainly not adopted with the idea of in any way easing the burdens of other foreign importers. The most sardonic claim of the whole of those advanced by the Japanese Government for its actions in China is that referring to the establishment of the monopolistic system in those parts of China under the control of its forces. It claims that the North China Development Company and the Central China Development Company were established with a view to giving China the necessary assistance towards restoration, and also with the aim of contributing towards ihe development of China's natural resources. Fortunately this bland assurance will deceive no one, for the evidence is plain for all men to see that, while Japan has undoubtedly the restoration of China at heart, it desires it only for the exclusive benefit of the Japanese themselves. That the Japanese are bent upon the ruthless exploitation of China in order to recoup the enormous expenditure to which they have been put during the present hostilities is a conclusion which cannot be denied.
The only possible justification which the military caste of Japan can give in Japanese eyes for their costly adventure into China is a complete and profitable victory. That the monopoly system is the surest way of securing the profits is believed by the Japanese, and the Governments statement that it does not oppose, but heartily welcomes the participation of the Third Powers en the basis of the new situation which has arisen, merely implies that it will keep China trade io itself, but would welcome financial assistance from other foreign nations for the speedier exploitation which is quite obviously planned. In short Japan wishes to reorient third party activities in China, and while denying them the trading rights of the open door and equal opportunity would willingly welcome financial assistance in dishonouring its own commitments.
This talk of new conditions will in fact convince no one. That there are new conditions will be readily admitted, but these have been brought about by the Japanese breach of the Nine Power Treaty, the sinful foundation upon which it is now designed to erect a new economic structure as equally reprehensible. The Japanese reply on the other points mentioned in the American Note are just as unsatisfactory, and the tone of the whole document is so familiar that it is rcminis cent of "the before-named gentleman playing upon the above-mentioned instrument." it is merely an ofücial'summing up of the assurances which the Japanese Government or its spokesmen have been repeating ad nauseam, and far from placating United States' opinion is likely to have the precisely opposite effect. Obviously any reply which seeks to fob off the just complaints of another nation in the manner which Japan is now seeking to do must be unsatisfactory, and the world will wait with considerable interest to see what steps will be taken next. It is just as obvious that matters cannot be allowed io stand where they are. To do so would be to admit a diplomatic defeat for the acceptance of which there is absolutely no necessity. It is not to be anticipated that developments will follow with any great rapidity. The situation demands that there shall be a continuance of the policy of parallel action which has already been demonstrated to be in effect, and it is likely that much consultation will take place before any new development occurs.
The issues involved are not, in view of the Japanese attitude, capable of immediate settlement, but that in the end there will be one, may be taken for granted. If, to use a homely phrase, Japan thinks she can get away with it, she is running the risks of a very serious disappointment. The possibility of effective retaliation should always be kept in mind, and it is even now to be doubted that when wiser counsels prevail in Tokyo, and among the authorities so active in China they will be content with the position Japan is seeking to secure in China if it is to be purchased at the very heavy cost of the loss of advantages elsewhere.
Text read from the printed page and cleaned; old type leaves the occasional error.