Dec, 29, Very considerable interest has been aroused by the publication in these columns yesterday of a despatch from the special correspondent of the "North-China Dall News" in Japan reporting Mr. Ginjiro Fuji-bhara's views on the possibility of Japan being. able to carry out her ambitious project for the reconstruction of China without foreign financial assistance. "Mr. Fujihara is one Japan's foremost industrialists, and business Jeaders, and his opinions deserve the greatest. Fespect, always with the proviso, however, that much of what he said was probably designed solely for home consumption, It is. necessary that his conclusions should be recalled. They are as follow:
Japan alone can accomplish the task of reconstructing China by means of her own Alnaneial resources and ability, plus her human strength: that is, unflinching determination to Succeed and hard work.
Atter reform of China's financial structure it can be made to defray the expenses of the new government to be established, as well the Japanese army that will have to be maintained there to preserve peace and order.
Afler China's commerce has been readjusted, the work of reconstruction and development can be achieved without borrowing a single penny from foreign capitalists. though their Investments will be welcomed if advanced in the spirit of real ce-operation.
The idea prevalent abroad that Japan can bbe beaten by economic warfare is a fallacy, because it fails to take the human element {into consideration.
Tremendous progress and prosperity awaits!
reborn China, attended by commensurate benefits to both Japan and China, and in which they dao"in China ix seen not only in the succeastal founding of Manchoukuo (which Westerners Expected would bresle Japan Angnelaiy) but {nthe development of Taiwan formosa) and Chosen Corea) whose foreign (rade increased 5000 er cent. and 2000 percent. respectively Since hey were sequlred by Japan, which ten times greater than the" similar increases in" New Zealand' and" Australia respectively uring' the comparable' periods of their development Mr. Pujihara bases his views largely on what Japan has done in, Korea, Manchoukuo, and 'Taiwan, and_in the course of his address adduced imposing reasons to support. the fententlons which he makes. in fact, the Speech. may be. taken as an industrialist' Feply to" Mr. Neville Chamberlain's recent Batement about Japan's future need for money in the development of China.
'AE fist glance there is a great deal what he says, but his arguments are not without their fallacies. It earn be admitted that possible for Japan to carry ott her pro~ itramme without outside assistance, but desired to obtain a quick return on the enormous amounts of money she has already Spent in China, and in all probability" will innve to spend for quite some time to come, foreign assistance willie necessary. Here, naturally, the time factor plays an important part. If she is prepared to postpone reaping The fruits of her military. venture, awaiting the slow process which fs inevitable if she determines to carry out the work unaided, she may very well dispense with the assistance from abroad which it is confidently expected in some quarters will be necessary. Again after the reform of financial structure of the Sccupied portion of China it may be possible defray' the expenses of the new fovern= ment. and. the "maintenance of Japanese farrisons in the country, but the experience ff the past year in north China shows that tempts to remodel the financial structure there have met with nothing. but failure, while indications from the north concerning the new taxation which itis proposed to levy are o the effect that a heavy' burden will ibe placed upon the Chinese at a time when they need "every assistance. for their habitation. "A noteworthy example of this is to be found in the difference between the old and new taxation at Chefoo, for instance. The old revenue obtained by "taxes by. the municipal authorities was a litle over $204,- 000: per annum: the proposed new taxes are expected to. bring inno less astm than '$670,000. well over' three times as great Obviously so heavy a burden, repeated throughout the whole of the occupied ter-Fitories must have a bad effect upon trade in general, and place a very onerous load the people engaged in the struggle back to their former prosperity. True, it's proposed to-raise about half this sum by means of an opium tax, but it is quite plain that the ens enragement of opium smoking is again likely {o militate against all round improvement When it is realized that the disaster which has been wreaked on China is already greater than that of the Taipings, and, when it is understood that there are districts in China which never recovered from that catastrophe, the likelihood of a rapid development without the use of very considerable sums of money seems not a little remote. Nevertheless it docs depend entirely upon what Japan's policy is to be. If slow she can cary it out herself; if it is to be rapid she will need outside assistance. For this reason it is sugested that the financial threat ig, not quite So powerful as it would appear at first blush, It is only really applicable in one set circumstances, and it has been shown that Japan has an' alternative in this matter, It is obvious then that the real weapon in the hands of outraged foreign neutrals which can be depended upon to be the most effective is adequate retaliation for discrimination, With the ability to strike at forty per cent. of Japan's foreign trade, a means is available of shutting off that supply of money which in the event of Japan deciding to do without foreign assistance would make her task of rehabilitation in China even more difficult. It would be a blow at the very vitals of Japan's economic structure. The placing of Japanese trade under every disability which is at present placed upon neutral trade in China is the most powerful means of bringing pressure to bear upon Japan, for she has no means of avoiding its results, The destruction of a great portion of her trading, the subject tion of her ocean carrying business to similar discrimination as that which she is exercising in China are perfectly good weapons, the use of which can be justified by precedents created by Japan. The financial arm Is not quite so strong, for Mr, Fujihara has shown, with considerable conviction, that its. of-factiveness can be diminished merely by a change of policy concerning the Fapidity with which it is proposed to reconstruct China,
Text read from the printed page and cleaned; old type leaves the occasional error.