London, Mar. 10, Considerable satisfaction at the decision of the British Government to grant commercial credits to China and guarantee a Chinese Exchange Equalization Fund was expressed in an editorial in this morning's "Yorkshire Post."
"The decision to establish a £10,- 000,009 stabilization fund to support China's currency has borne the ap-Pearanee of a ripost to Japan," the paper declared. "But in fact, negotiations for the establishment of this fund have been going on for some time as cam well be imagined, and Teprysnt not, mo much a desire to japanese designs as tw provide basic, financial. conditions on count sy "aevtloped. t's oh, ious that U Chine loses control of 4 t is her currency, there goes with it every vestige of freedom to direct the lounge of her own trade. The Government will be represented. It la clear that this arrangement combined with the use of export credits recently granted, should materially assist the efforts how being made to protect and expand British trade with China."
Action Necessary The "Manchester Guardian" commented on the reaction in Japan to the granting of credits to China.
"The exchange credit extended to China by this country is criticized in Japan as being a political measure," the paper stated. "It is true that the extension of this credit is ən event of major importance and it is bound to have far-reaching consequences. It is also true that these consequences will largely be political in so dar as a disintegration of the whole Chinese economy may be averted and one of the principal conditions for an absolute Japanese thereby remain unfulfilled. The view taken here is that this cannot be helped. 2 "It would hardly have been possible to refrain gram the action taken in supporting Chinese credit with a view to protecting British commercial interests in Chinn merely because the Japanese might fear that the ultimate political consequences would tell against them."—Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.