San Francisco, June 2, 'HINA'S continued resistance to the Japanese invasion has forced Japan to build up a war-time industrial plant that will constitute her greatest danger of economic collapse, according to the Institute of Pacific Relations.
Regardless of whether she wins or loses the war, this menace will have to be faced by Japan considered suMeient to regulate the affair, Since that time, "however, more than ¥.1,894,000,000 (U.S.82,144,= 260,000) have been budgeted for the invasion. Military and naval expenses already appropriated amount to 30 per cent. of the national income, The: cost of the war now is about ¥.404, (000,000 per month, Nevertheless, the Institute reports, Japanese banks are still able to} absorb the bond Issues made to cover this and there is no indication that any serious financial strain has as yet been reached—United Press, when the moment comes for this great industrial plant to be de~ mobilized and shifted to a peace The situation will be the same as} that which existed in most of the countries that participated in the World War when, after the armistice was signed, they found themselves Yoaded up with vast war material industries, Keyed to the highest point of production, which it then Beeine necessary to return to a peace-time basis, The situation for many of these nations was saved only by the vast reconstruction loans made by the United States, of which little has ever been paid back.
"The size of the wartime industrial plant which Japanese are now building up is indicated by the amount of new capital that has been invested in Japan in 1937, and especially the amount invested in the five-industries that have most to do with the making of war-time materials, the Institute said. Japanese Tnvestments The Bank of Japan has estimated the amount of new capital invested formal control of the Settlement Sir Patrick Hannen, Conservative member for the Moseley division of Birmingham, asked whether the Government had received a, reply.
Mr. Butler: "Not. yet."—Reuter, Tsingtao Banking In reply to a question in the House London. June 2. of Commons yesterday, Mr. R. A. Butler, Under-Secretary of State for Foreign Affairs, said that Viscount Halifax, the Foreign Secretary, was urgently consulting the British Constl-General at Tsingtao regarding the enforced transfers of accounts from British banks to Japanese or Jepanese-sponsored banks.
Tt had been reported from Tsingtao on May 18 that the Chinese Chamber of Commerce there, which is under Japanese. military occupation, had Instructed Its members to withdraw balances with the Hongkon: jank and the Chartered Bonk, and to do exchange business only through the Yokohama Specie Bonk and the Federal Reserve Bank. time basis, the Institute said, in Japan during 1997 at ¥.3,577,000,. 000, or an increase of 79 per: jeent. over that of 1936. Of this!
79 per cent. increase, 53 per cent. was diverted into the war-time industries.
The distribution of this percentage between the five leading industries of that nature and the abnormal Increase of each of these as caused by the demand for war supplies is follows:
Metals, 264 per cent, increase over 1936; mining, 147 per cent. increase; machinery, 341 per cent. increase; shipbuilding, 204 per cent. increase; chemicals, 198 per cent. increase.
The two possibilities which Jspan will have for avoiding economic collapse when the moment comes for the demobilization of this wartime industrial plant, the Institute states, will be the frst, the finding of new peaceable outlets for her wartime Industries and secondly, continuing to arm for. new military adventures.
Text read from the printed page and cleaned; old type leaves the occasional error.