US. and Holland May Join Economic Plan Against Japan; Chinese Currency Loan London, Mar. 6. WIE she war in Spain rapidly approaching its close, the attention of the British Government has been turned during the past week to the question of hastening an end to the Sino-Japanese conflict, according to the Diplomatic Correspondent of the "Daily Telegraph." This, he states, is undoubtedly the true light in which to read the news that a British loan in support of China's currency "is imminent."
The correspondent understands that the sum contemplated is between £3,000,000 and £5,000,000.
By technical arrangements which; he declares, have been worked out, it is calculated that this amount will suffice to fortify China's currency against efforts which Japan is making to undermine it.
The need to husband her currency reserves with the utmost prudence in these circumstances, the correspondent goes on to state, "has been greatly increasing China's difficulties in obtaining essential supplies and equipment with which to con tinue and intensify her resistance.
Special legislation must probably be passed, he continues, before this-new British sep can become effective, but "necessary Government action is'now imminent."
"This, the edrrespondent adds, follows on the final passage of the Export Credits Bill last week, through which, he states, China will also Benet, since she will be enabled to make important purchases in Britain lorries, and other equipment.
Consideration, the correspondent emphasizes, has also been given in Fevent. weeks both by London and Washington to direct means for bring~ Ing pressure to bear on Japan in the strictly economic field, Three-Power Trade Pressure would lo within the power of Great Britain, the United States and Holland, for example, he points out, to place great obstacles in the way of Japan obtaining certain supplies essential to an Intensive prosecution, is a consequence of a similar measure taken by Washington recently.
'The credits would be devoted to the construction of a railway between Burma anc Chengtu, hich would double the vad which was Fecently linked up to the line coming' from Indo-China, The credits would serve to pay not only for the construction of the track, but also for part of the rolling stock, It is believed that the United States. would supply part of the equipment.
Chinese circles in London state that the projected railway willie 500 Kilometres in length and that more credits will most likely necessary to complete It.
The railway is of utmost import tance for China, more especially since Japan will attempt more and more to block China's war-time relations with the outside worl the war.
The sum previously in contemplat ion, declares the "Daily Telegraph" correspondent, was £20,000,000 but different. method of employing British funds had now been devised.
brief, Ne goes on, Britain, with the' collaboration of other friendly Powers, was now engaged in an ate tempt fo compel axzgressively-minded nations to keep the peace, and wax using her great financial resources primarily to. that end."
It would not be difficult to restrict the "markets for certain essential Japanese exports, in which ease. full agreement throughout the British Commonwealth would be necessars, fund notion might Tonger to ake become effective,
Text read from the printed page and cleaned; old type leaves the occasional error.