The Archive · 1940

War Would Cripple Japan's Economy

London, mort deported scoot eat hel custriotivs Hondee case te contort Moe fore ote ¢ war agai a oe various United would be tridliny compared to u full [flooded economic war which both Britain and the United States would bye in a position to wage if necessary.

Japan ix notoriously short of foreign exchange while maintenance of her ing stock position is realized to rely dependent upon her ability her export to Various centres at present towards her, and which i var with such London, et. 10.

The spotlight of publicity has the Japai ese reuetion to Britain's decision to reopen road is being watched with interest.

The British action does not seem to have aroused surprise because from the nioment Japan practically threw in her lot with the Axis Powers it was obvious that there could be 10 prolongation of a temporary measure designed to promote any prospect of appeasement in the Far East. Japan has not sought to find any basis of proach to the Government of Gen-feral Chiang Kal-shek mor has there been more than a lull in vindictive measures against British subjects and trade in those parts of China under [Japanese control.

Although there is a certain amount of bluster in some organs of the Japanese press, the present tendency is to emphasize that the Burma road will now be exposed to air attack and even complete interruption thanks to the occupation of Indo-China. The Japanese also note with satisfaction that the Hongkong route for supplies wil continue to remain this latter assumption they are quite mistaken as the only obligation which the British Government undertook with the Japanese Government roxarding closure of the Hongkons route was included In what became known ax the Burma road agreement, When this agreement lapses the British obligations to Japan regarding Hongkong will lapse simultaneously.

The original British decision close the Hongkong. route was taken unilaterally by the Governor of the Colony to ensure its security in Jantary, 199, long before. andi quite un connected with, the British under tuiking to Japan, which was given at the some. time aw the undertaking about the Burma road. It is no secret, however, that tittle trae for Chint can pass along this route owing to present Japanese Tand and sei dis positions. "Tt Is very unlikely, ever, that the situation will long remain in this indefinite state, The serious view of the United States of the course of events is 1 fected in the official advice to Ameri: Jeans in the Far East to leave while sure means of transport exist. Tt ts believed that the British Government is considering the possibility of similar ad view to British subjects, The decision of Lord Lothian, British Ambassador to the United Slates, to abandon his trip home, and consul Nous of Mr, Cordell "Hull, United States Secretary of State,' and Mr Sumner Welles, Under-Secretary State, with Admiral James O. Richard markets were una while the equally important Japanese cotton piece goods trade is known to depend largely on the yood will the British Empire market and wile ingness of India and the United States fon, Commander-in-Chief the United Siates Fleet, tell their own story of the grave interest with which developments being followed Horas the Atlantic, There ix nothing to show how Moscow thinks, but the publicity given to the British decision and. Amer comment is not without siguifieanee, amied that a certain Japan's thus. vulner United controlled irom both importing and exporting Jangles. In any ease the fet that since the outbreak of the war no shipments of nickel, cobalt or tungsten have Feachesl " British sources is viewed oritative citoles as of how might fare in the event of an extension of such a procedure. tot displeasure was attitude when the clove the Burma Roud wa Axis Po wers Lo

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

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