Moscow, July 19, Japan may be forced to take serious measures" after today's "deadline" in the Soghalin Island all dispute unless the Soviet Union changes it policy toward Japanese all interests, semi-oficial Japanese sources said'here last night.
The Saghalin Island dispute was said to involve the prestige of the Japanese Government and action after today's deadline was said to be inevitable unless the Soviet Union capitulated to Japanese demands for a change of policy.
Japanese quarters said Soviet action against Japanese oil interests on the Island was resulting in perceptable pressure against Japanese naval all Supplies. Consequently, the dispute Is in different and more serious category than the Manchoukuo-Outer Mongolian border clashes, it was said.
Tokyo Demands Ignored The Soviet Union has refused to consider the Japanese Note of July 16 protesting against the fines imposed on Japanese petroleum Arms operating in northern Saghalien, the Foreign Office announced in a communique yesterday.
"The Japanese Note contested the decisions of Soviet courts regarding unlawful actions by Japanese con= cessionaries at Saghalien," the communique said.
"The Japanese Ambassador demanded an answer not later than July 18. Therefore since the Note contains threats and is in the nature fof an ultimatum, it is impossible to Accept and we return it without having considered i," the commun que added.
The Japanese Note raised three points.
1, That Judgment was obtained aus inst the Japanese companies fined in SEghalin Secause they eyuld not get a permit to Import a sumielent amount of Goods. to comply with their" contract, Bnd that the companies faced contlsca: ton of their properties if they failed to ay the Judgiemt by toda nese oni Interests: were ined 30,000 roubles Sra) Jopaneve "oil increta were ned Foubies. "The Japanese Note ack+ ea that the Judgmeni be waived.
2 The Soviet Union, has failed 10 subpiya sufficient number of workers fol permit proper operation of the Ja}
The Soviet Union has refused 10 permit Japan to load"oll at the whee Brinelpal Yeading points:
The Japanese Ambassador made representations on July 18 and sent the written memorandum on July 16. He asked for a reply by July 18 because the court judgment against the Japanese interests in Saghalin be- $25 comes effective on July 19.
The Japanese Ambassador referred to the protocol attached to the basic convention of 1929 which opened negotiations with the Soviet Union and under which the Soviet Union promised to give all facilities and Feasonable assistance to the Japanese companies.
Oficial Soviet comment on the problems was not available today. United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.