Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1917-11-19
JAPAN REFUSES
OFFER FOR Ships
Negotiations Broken OIL,
Says Toxic, but Agreement
Still Expected
PRICE IS THE
CHIEF OBSTACLE

TOXIC, nov. H. lpelaSeuJ' ~
lengthy statement today the Depart
ment OF Communications announced
that the negotiations with the uniteu
states. by which Japan was seeking TO
have the American embargo on steel
raised TO a certain extent In japan 5
favor. had been broken of TO japan
regret, because OF the differing clrcuih-
stances in which the two countries
were placed.
Americas demand for japanese ship-
ping in return for the concession would
virtually destroy Japan's European
trade. the statement said, while the
equivalent offered was inadequate.
Japan's assistance TO her Allies, the
statement asserted, could not reach
the extent OF infringing upon the ne
cesslties Of her national existence.
WASHINGTON, Nov. i9.-Omcials
here received with some surprise last
night the report from Toxic that nego-
isations between Japan and the United
states concerning the proposed trade
OF shipbuilding steel for ships had been
broken of. In fact, u was not gem
orally admitted that such was the case
and in some quarters confidence was
expressed that an agreement would be
reached within a short time Which
would bring more than 100000 tons OF
Japanese merchant shipping into the
transatlantic trade.
AS far as could be learned here, the
negotiations are still IN progress. IT
has been proposed that the United
States should purchase outright what
ever Japanese tonnage is obtained and
the question Of price has been one Of
the stumbling blocks in the negotia-
tions A price around Si75 a ton has
been mentioned as the sum which the
government felt II should pay In taking
over tonnage, although much higher
rates have been paid in the open mar
ket for shipping.
one argument made by the United
States Government In seeking a lower
price than japan considered justihable
was the fact that this nation stood
ready to deliver steel for the same rate
that II paid itself or sos a ton for
plates, a figure far below that which
Japan was paying American industry
before the embargo order on steel
went into effect
There seemed TO he a distinct feeling
last night that once a price agreement
was reached, a trade would be put
through. The portion Of the Toxic dis
patch which stated that Americas de-
mand for Japanese shipping in return
for steel would virtually destroy ia
pans European trade and infringe upoI
! the necessities to her national exis
tence, was not accepted here as a dealt
blow TO the success OF the negotia
tions. II was felt that the removal o
100000 tons or more OF Japanese ship
ping would not cause so severe a re
striction on Japanese interests, espe
oially as Japan was to receive steel 70
the construction Of other ships as
concession.
The basis OF the negotiations for
time at least, was one ton OF America
steel for every ton OF Japanese ship
ping, and this, IL was said, has bee
looked upon as equitable by American
officials
The negotiations have been going Of
] for many weeks, and have been entere,
into by representatives OF the state De
partment, the Shipping Board. and thu
War Trade Board Recent reports werl
to the effect that much progress ha,
been made, and an announcement tina
terms Of the deal We're closed had bee
expected here for several days. Con
ferences on the question were held dur
ing the visit Of the japanese Mission
in Washington. There has been M
statement here, either at that time o
| within fho 1oat foxss do,-o % t,df,,t
that an agreement was improbable.