The Japanese themselves naively admit the activities of their emissary fes, and attribute no credit to the generosity of their dupes. The handbook, and guide to Japan is full of allusions 10 various masters of their ceramic and lacquer industries who jin the 15th and 16th centuries crossed to China and stole the secrets of manufacture. Fortunately for the Test of the world, Japanese industry and persistence is offset by a grave disability, the lack of inventive power. They are always a lap be-[hind their foreign competitors and, in these days of immensely rapid Frogress in science and engineering, they are at a grave disadvantage. Their utter lack of psychological When she had contacts with the world Japan progressed founding rate, but, her sense of security coming uppermost, she tempted to return 10 the "isolation afforded by her insular position. Bven 80, Korea appeared too close and, once embarked on expansion on the mainland, Japan felt menaced be. cause there was no longer a sea to protect her. The desire for a neutral zone to keep Russia at arms length lod to the war of 19045, and the zones of influence in Manchuria, The riches of the neutral zone led to the arge to control it, Large Scale Aggression was established a fresh neutral zone had to be found to protect it, "Jehol and' the auionomeus area in East Hopei, quickly followed, to be absorbed in turn, The next neutral zone staked out was the three northern Provinces and the whole of Taner Mongolia, An dependent government was set up, Dut the desire to control was 100 strong and the attempt to enforce it led to the present hostilities.
Since the occupation of Manchuria it has been "evident that Japan determined to extend the isolation policy {0 her overseas possessions, No foreign interests are to be permitted to remain and if she herself is unable to supply, her tributaries must go without. Trade will always ud the most profitable outlet, or be killed, with adverse effects on the body politic. Apply a tourniquet to the arm of 2 man and interrupt the flow of blood and the hand withers dies. The body loses one of its imps, "This is what the Japanese are doing in north China, American firms purchased carpets, cosings and furs thereby introducing feurrency which the Chinese could exchange for Japanese goods. The Japanese want the iron ore of the Lungyen mines and cotton, but the Chinese must have something in return on which to live. The price Jcffered for the commodities is not /suMiciont to buy foreign: flour, s0 the farmer ceases growing cotton and plants wheat. Japan gets no cotton snd loses her market for rayon, 100 Per cent, of Each Bargain The urge to got 100 per cent. of very bargain, oF lack of reciprocity, defeats itself and will in the end defeat Japan. 'There are 400,000,000 Chinese farmers against her and all the narcotics in the world will net make an end of them. Spain tried the same one-sided policy' with the Americas and rapidly decayed. Mol-and was forced to drop her _monoolies and lost the greater part of For colonial! empire.
In spite of censorship the whole world knows that the situation Jo JJepan has deteriorated enormously in the ast three years. Every sort of restriction, even on thoughts, has been imposed, Production, exempt on armaments, has fallen toa marked extent, and foreign trade, the life Blood "of the country, is declining. The gold reserve is nearly exhausted and "America, which has hitherto furnished many of the sinews of war, imposing embargos in retaliation for the interference with her tnter-
Meanwhile Japan, regardless of the menace behind her, is bent ending her commitments even fusther from her bases. Her Army has never encountered the troops of a first-rate power, and the disproportion between her material and that the Soviet is overwhelming, Her treatment of the occupied Chinese territory has built up behind her Jines the finest Fifth Column in the world. Her two clashes with the Russians at Changkoufeng and No-mahan were anything but reassure ing and in each case the Soviets did more that maintain the integrity of their territory.
Until Russia's military strength was fully developed. she remained on the defensive in the Far East, but judging from her policy in the West with Poland, Rumania andthe never abandons the ying lost territories 'The' exhaustion of her adversaries is to be her opportunity,
Text read from the printed page and cleaned; old type leaves the occasional error.