The United States did not wish a war with Japan, said the fnancicr, even though America was the stronger nation and could emerge victorious. Democracies did not uso their strength to make conquests, he said, so if there was a war between the two countries it would only be because Japan wished it, Sir Victor said that he had arrived' at this con= clusion after talking with many people in both America and Japan. He ad vareed the opinion that Japan would lake no action against the Nether lands East Indies, Sir Victor explained that a war between the United States and Japan would be of no beneath to any coun try except Soviet Russia, A war in the Pacitie, he said, would strengthen Stalin's position in the Far East by stopping Japanese trade in silk and canned fish and preventing Japan from obtaining essential commodities from the United States. He said that there was a danger of Russia obtain Ing German support in preparation for a war in the Orient, Russia is only working with Germany because it suits the Soviet, said Sir Victor. In the event of a Nazi victory in' Europe, Germany would attack Russia and seize Finland and the Ukraine and what. Stalin hoped for was the Allies and Germany to fight to a standstill so that Russia could be free to sprend Bolshevik Propaganda on both sides. Meanwile, Germany had warned Russia against any more expansion in the West, 50 not fo disaffect Moly. Thus, it'appeared that Russia would insist om German technical aid to strengthen liber position in the Orient and It was ikely that Russia was getting advice from Germany on how to run a sub marine campaign from Vladivostok, Terms With China With Russia thus willing to on= courage war in the Pacific, said Sir Vielor, it became daily more Impera: tive for Japan to come to terms with China'so that she could recall hor troops from this country, and make friends with the United States. Japan should recover from her present poor economic situation by taking advan-fage of the war In Europe to develop her trade with South America and then, if Russia attacked Japan, the latter country would be able 10 get much-needed supplies and war materials to enable her to resist successfully.
Sir Viclor emphasized, however, that Japan's only hope of doing this was to give China such favourable terms that the Chinese would feel that they were a free people and not vassals of Japan. This action wauld enable Chungking to cooperate with any government. Only if China wore loft free to govern herself would there bbe any possibility of preventing a civil vhen the Japanese troops. with-General Chiang Kai-shek, said Sir Victor, is a realist who would have peace if there was a free China.
The statement made in the United Slates by Rear-Admiral Joseph K. Taussig, that war between the United States. and Japan was inevitable, was, according 10 Sir Vielor, merely a bid for, bigger U. 8, Navy.
Text read from the printed page and cleaned; old type leaves the occasional error.