The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-02-02
JAPAN CLOSING
open DOOR TO
CHINA MARKET
Conquest Threatens U. S.
With Huge Loss in
Foreign Trade.
BY WILLIAM PHILIP SIMMS
Scripps-Howard Foreign Editor

SorIpps-Howard Foreign Editor
WASHINGTON, Feb. 2.-Japan's
far eastern conquest, if allowed to
stand. spells the beginning of the
end of the open door'-after the
Monroe Doctrine, the chief foreign
policy of the United States.
Certain penny-wise, pound-fool-
ish American interests to the con-
trary Notwithstanding, Japanized
Orient would mean the loss of what
is potentially their greatest foreign
market.
Japan's far-hung, all-embracing
policy Of subsidies eventually would
give her virtually complete control
over the fsst-growing Chinese trade
throughout such an area as would
come under her domination.
If China could duplicate the feat
Of Japan in world progress, in fifty
years her imports would amount to
S50,000,000,00O annually, or more
than three times the present total
export trade of the United States,
Germany, France and Italy com
bined
China Vast Market
If, in her reconstruction, she
could go one-f1fth as fast as Japan
and that is well within the bounds
of the possible-her foreign pur-
chases would amount to $l0,000,000,-
600 a year, or equal to the combined
exports of Britain and the United
States at the peak of their pros
perity.
Japan's system of business boun-
ties can be-and, in spots, already
is-as deadly to foreign competition
as the system of the much-feared
Soviet Russia.
BY rebates, subsidies and other
forms of direct and indirect gov
eminent aid, Japanese merchants
can undersell competitors in almost
any field. Certainly they can do so
in regions politically or economic
ally dominated by Toxic.
Since the awakening" of the is
land empire seventy years ago, it
has followed sweeping plan of
national industrialization and trade
expansion, less spectacular perhaps,
than that of Communist Russia,
but no less carefully worked out.
Japan Subsidies Cut Costs
Railways, ship building, shipping,
steel, agriculture, labor, construc-
ton, foreign trade, domestic COM
MERGE, industry generally-prac-
tically every important Japanese
enterprise at home and abroad
receives, or has received government
support.
A government subsidized industry
turns out a product. 1t is shipped
to port on government-owned
railway; loaded on board a govern
ment subsidized ship built at a
government subsidized shipyard of
steel from a government subsidized
mill.
Then-if its destination is Man
churia or some other Japanese zone
1t is unloaded at government
docks, shipped on government rail-
ways and so on until it reaches the
hands of the consumer.
In proportion to the extent that
Japan expands, therefore, whether
in Manchuria, Mongolia or China
proper, the open door" gradually
but effectively will be closed. The
leavings-what she can not very
we'll take care of herself-will fall
to the United States and the rest
Of the world.
China Big u. S. Customer.
The personalities of the Chinese
market were indicated in a trade
review just issued by the depart
ment of commerce. Despite famine,
fire, flood, war and pestilence,
China's imports of American raw
cotton during 1881 were the great
est in history.
China's per capita imports now
amount to something like $185
year. Mexico's per capita imports
amount to SLIPS a year. Even on
a low Mexican basis, China would
buy $6,0O00O0,0o0 worth of the
worlds goods every year, or more
by far than the biggest and richest
nation in the world now purchases.
About 20 per cent of her imports
are furnished by this country. Our
share, therefore, would amount to
some 81 100000 annually or nearly
double what we now are selling to