When it was announced a short while ago that arrangements were being made to resume conservancy work on the Whangpoo, the impression was formed that the Japanese Government was taking steps to bring about a much better state of affairs between itself and the neutral Powers having interests in China. That improvement has now been emphasized by the announcement made on Monday that it was the intention of Japan to reopen the Yangtze as far as Nanking to foreign shipping subject to certain restrictions the effect of which has not yet been announced. The text of the communique was as follows In view of the fact that absolute military requirements calling for the closure of the lower Yangtze River area have become amenable to gradual modification, the Japanese forces have accordingly decided to make preparations with a view to lifting the ban on navigation on the Yangtze from Nanking downward under certain restrictions for the maintenances of peace and order and for military operations, That is a most welcome announcement the importance of which is made all the clearer by the statement made by the spokesman of the Gaimusho in which he said "It is greatly regrettable that Japan is misunderstood in some quarters as if it were intending to act in an exclusive and monopolistic manner," for this may be taken as an indication that, while there will be restrictions for the purpose of maintenance of law and order, and to prevent interference with military operations, foreigners will be able to resume trading. Without this the mere opening of the lower Yangtze to foreign shipping would amount to an empty gesture, and it is not to be believed, now that the Japanese Government has taken so decided a step, that it will seek to hedge it about with conditions which would make trade impossible. In any event even those who may be disposed to regard this latest gesture on the part of Japan with scepticism would do well to withhold judgment until it is seen exactly what the reopening does mean and the conditions under which it will be operated. Indeed that would be only common justice to the Japanese who are clearly demonstrating their wish to see an improvement in the relations existing between themselves and the third-party neutrals.
The effect of the reopening, when it comes about, should be profound, so far as Shanghai is concerned, for it should immediately benefit trade, exchange, shipping, and, what is today of paramount importance, the rice supply of this great city. During the last iwo-and-a-half years Shanghai has managed to carry on a minimum of trade which has done much to keep the city alive, and re-natively prosperous in view of all the circumstances, and it is a very natural hope that the Japanese authorities will not long delay putting their decision into operation. With the very substantial area which would thus be opened up, a considerable amount of additional trade should be possible for this port, and as it lives very largely upon such trade the general effect upon the fortunes of Shanghai and its large population should be wholly a beneficial one. While it may yet be some time before Shanghai can expect to resume its former trade to the fullest extent, the fact that it will, it is hoped shortly, be able again to take up the function,—and that by no means an unimportant one—of serving the hinterland, should mark the commencement of that progress towards increased prosperity which the outbreak of hostilities in 1937 brought so tragically to a temporary conclusion. The announcement made in Tokyo is of particular importance from a point of view which may not generally be recognized. It marks the admission of the well known fact that foreign communities in China are here for the purposes of trade, playing no political role and neutral in the Sino-Japanese struggle. That is a point which has been insisted upon times out of number, and the fullest recognition of that fact by Japan cannot but be the best possible augury for increasing betterment of relations which have undoubtedly been somewhat strained during the last two years. For during that period the enormous investments of foreign neutrals in China have been left idle, where they have not actually suffered material damage, and they have every right to expect that their position shall, and their rights, and interests recognized.
It has to be admitted that there will still be much to be done before the very natural
Text read from the printed page and cleaned; old type leaves the occasional error.