London, Mar. 10.
Considerable satisfaction at the delsion of the British Government grant commercial credits to China and guaranice a Chinese Exchange Equalization Pund was ext shire Post."
"The decision to establish a £10,- 900,000 stabilization fund to support China's currency haz borne the pearance of a ripost to Japan," the oper declared." "But in fact, nego-Hations for the establishment of this fund have been going on for some time as can well be imagined, and Fepresent mot so much a desire to counter the Japanese designs os te provide basic financial conditions on which trade between China and this country may be developed. It is oh. vious that if China loses control of her currency, there goes with it every vestige of freedom to direct the course of her own trade. The Gov ernment will be represented. lear that this arrangement combinee with the use of export credits recent ly granted, should materially assist the efforts now 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 mea~ sure," the paper stated. "It is true that' the extension of this credit is Jan event of major importance and itis bound to have far-reaching consequences. It is also true that these consequences will largely be political in so far as a disintegration of the whole Chinese "economy may "be averted and one of the principal conditions for an absolute Japanese victory thereby remain unfulliled The view taken here is that this ean-not be helped.
"It would hardly have been pos-to refrain from the action taken
view to protecting British commer-supporting Chinese credit with a ial interest in China merely because the Japanese might f@ar that the ultimate political consequences would tell against them'"—Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.