July 29.
President Roosevelt's action on Friday, of issuing a proclamation bringing American oil and serap metals under the export licensing system, has, as it was only to be expected, created something of a major sensation throughout all the world, but particularly in Japan.
The materials which have been listed as coming under rigid export control are (1) aviation motor fuel, i.e high octane asolines, hydro-carbon mixtures, and any material from which by commercial distilla~ tion, can be separated more than three per cent. of such gasoline, or hydrocarbon mixture: (2) aviation lubricating of; (3) telraethyl lead, i.e. pure tetraethyl lead, and ethyl Muid and (4) Iron, steel and serap, i. number one heavy smelting scrap. Who export, esses arelecn well, cesainalty set up on July 2, it was expected that sooner or later its provisions would be tightened in order to give the US. Government as complete control as possible of the export of material which would be of considerable value to it in its scheme of rearmament, while at the same time it would be designed to prevent potential enemies of the United States accumulating war reserves in prepara tion for some hostile act in the future.
With the passage of legislation providing for an enormously enlarged navy, and all the other schemes which have been put forward for the purpose of putting the United States in the best posture of defence, it is but natural that Washington should look to the conserva~ tion of all her resources, and export control was obviously one of the prime essentials in the furtherance of any such scheme. Upon this aspect of the matter the New York Herald Tribune" has very pointedly remarked The colossal anomaly of a nation preparing conscript youth, and voting money by tens of billions for defence, while at the same time continuing to allow liv material resources 10 bbe exploited by the only Power against which defence is ever likely to become necessary becomes too obvious for even die-hard isolationism to defend it with any conviction.
In that journal's view the export licensing system is aimed at preventing German} through the intermediation of Spain, receiving supplies which might in certain events be used against the United States, though, of course it has not overlooked the potentialities in the Pacific.
Germany, through Spain, is more interested in the supply of oil and its derivatives, and the intention of the United States is to ensure that while legitimate Spanish needs may be met, there is no intention of permitting her to import abnormal quantities for ultimate export to Germany. In this connection the difference between neutrality and non-belligerency is clearly established, for the United States are taking action which should render unnecessary a blockade of the Spanish coast by Great Britain and the further straining of relations between London and Madrid. With ro yard to Germany the question of scrap iron emphatically docs not arise. In the first ease, with the capture of the French mining areas substantial additions have been made to Germany's iron and coal supplies, serap is not in the circumstances an urgent requirement. Japan is interested in both oil and scrap. For many years past she has been importing vast quantities of serap material from United States ports, for utilization in her armaments. There has been hardly a Bottom which has left the United States for Japan in recent years which has not carried large quantities of scray some vessels doing the journey bringing "nothing else. There has, since the commencement of the Sino-Japanese hostilities, been considerable critic ism of the United States for allowing this export trade to continue, but adopting an attitude of neutrality in the matter, and affording China the opportunity of securing the supplies she needed there was not a great amount of actual merit in the criticism.
The practice operated with fairness to both sides. Now, events in Asia have put a new complexion on the matter. The stoppage under Japanese pressure of the routes by which U.S. goods could reach the Chinese National Government at Chungking, practieally imposing a blockade, despite the failure of cither of the combatants in the Far East fo declare a state of war to exist, constitutes in American. eyes an infringement of their ordinary trading rights, and has, consequent ly done nothing to improve relations between the United States and Japan, which have een by no means satisfactory since the American denunciation of the Amer Japanese treaty on navigation and trade.
1 is indeed, perhaps too carly to describe this new export licensing system as an embargo against Japan, or for that matter any other country, except in the circumstances described above. Some resentment seems to have been aroused _in Japan by reports that the United States Government permitted the chartering of an oil tanker to Soviet Russia while refusing similar charters to Japanese firms. -But that isolated instance, occurring before the licensing system comes into force fon August 1 cannot be the test of what are Washington's intentions. In the meantime its assurances that the extension of the export licensing system is not aimed solely at Japan, but applies equally to all nations, must be accepted on its face. There can be no question as (0 the propriety of the step which has been taken. It is well within the sovereignty of any nation to decide how and. when its exports shall be controlled. Nor is to be believed that, should Japan be denied further American scrap iron, any very severe blow will have been delivered it in its military adventure in China, The same applies to American aviation gasoline of which large quantities have been supplied to Japan. In both cases the American case, that these goods are desired for themselves, cannot be uted, for obviously with the contemplated increase of American defences, and that not specifically against Japan, but rather against the European Nazi menace, the United States must be the sole judge of her necessity. It is to be regretted that this Latest decision should come so closely upon the heels of re~ cent unpleasant incidents between Americans. and Japanese in the Far East, but it would bbe vastly improper, in the light of the as~ surances which have been given in Washington, to endeavour to establish any connection between the two... It would have been almost impossible to devise an arrangement dealing with the European situation alone, which would not have been dubbed as diserimination, but the application of a general system of licensing in the manner which has been adopted, removes any real ground for complaint from any country which might be affected. A recognition that, however convenient this new development, may be, it is nevertheless within the rights of the United States to adopt, and is the best and only means of meeting the new situation which has een "created, is necessary at this juncture.
Text read from the printed page and cleaned; old type leaves the occasional error.