The Archive · 1938

Difficult Situation

Generally, as far as foreign business houses in Manchoukuo are concerned, the situation is becoming increasingly difficult, Imports are strictly limited io such articles as are urgently required to meet national needs, whilst the list of articles on the "free"—unprohibited list is being gradually reduced, In general, exporters discount the repeated reports regarding the establishment of export monopolies which would pass on the more lucrative portion of the export trade to Japanese concerns. They assert here and in Dairen that Japanese exporting houses are not in a position to handle this business at present, that they know nothing of foreign clients' requirements, and that they do not have the necessary contacts with foreign markets.

Whilst these assertions are made with a certain amount of confidence, exporters are believed to fear further Government intervention in the shape of prohibition or the encouragement of Japanese-controlled monopolies.

One, prominent foreign business man has expressed the situation in a few words. "When the so-called Open Door was slammed in our faces, we could generally get through a back door whenever imported articles Were wanted or whenever we needed money or credits abroad for produce we had to export, The back door is no longer available. Our friends in North China appear to be headed in the same direction. Foreign trade there is bound to go the same way."—Reuter.

Text read from the printed page and cleaned; old type leaves the occasional error.

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