7 Sept.
The recent notification by the United States, to the Japanese Government to the effect that it was interested in maintaining the' status quo in Indo-China is now shown to] have been the forerunner of definite action by Washington if its hint were disregarded. The announcement of a U.S. $25,000,000 loan fo the Chinese National Government at Chungking has been followed with a fully embracing embargo on the export of all forms of scrap iron to all countries except Great Britain and the western hemisphere.
With regard to the second the wideness of its scope does not justify the Jepanese.contention that the embargo has been directed solely against Japan, for it is clear that it is equally applicable to Germany: and Italy, and indeed all those countries through which the enemy. might seek to import scrap. But the loan' undoubtedly shows exactly where the United States stand with regard to developments in the Far East, and the Japanese Government would do well to consider that fact.
In_any estimate which outside observers: would seek to make of the political position
Text read from the printed page and cleaned; old type leaves the occasional error.