Washington, Jan. 7.
The Far Eastern Survey of the Institute of Pacific relations today predicted a trade war between the United States and Japan in South America after the conclusion of the Sino-
Japanese war and said the Pan-American. Conference recently adjourned at Lima, Peru, had made it clear that United States efforts to unite the American republics against foreign influence would "not have perfectly smooth sailing."
The monthly publication said Germany was making strenuous efforts to introduce German goods and doctrines into South America and pointed out that Japanese penetration, although crippled because of the current hostilities in China, had shown alarming strides until last year.
"While the chief obstacle to Pan-American solidarity come from, Euro-po," the article said, "Japan also is a factor which although less important at present, cannot be left out of the picture. Although halted at present because of the war in China, her recent trade gains in the Americas have created potential rivalry between Japan and the United States."
Japan's trade with Latin America, the article pointed out, expanded amazingly since 1932, totalling Y.164,- 000,000 in 1937 which represented a gain of 100 per cent. 1936.—over
Text read from the printed page and cleaned; old type leaves the occasional error.