Evening star., 1933-02-13
JAPAN MAY FACE
FINANCIAL BOYCOTT
League Is Considering Likely
ReprisaI Steps in Man
Chukuo Crisis.
BY CONSTANTINE BROWN.

A financial boycott of Japan is con-
sidered in diplomatic circles here as
the first step which the powers be-
longing to the League of Nations will
take as a reprisal for Japan's defiant
attitude and her leaving the League.
Although the Committee of Nineteen
has been laboring for weeks endeavorA
ing to find solution to reconcile the
principles Of the covenant and the
nine-power pact. with the japanese
claims on Manchuria, it was obvious
that such solution could not be
found unless the Japanese government
decided to give up its Manchurian
policies.
Consequently, while discussions were
being carried on at Geneva, the prin-
ciple powers were negotiating among
themselves as to what means of re-
prisals could be adopted against a re-
calcitrant nation like Japan. and are
reported to have come to the con-
clusion that while an economic boy
cctt would not be necessary at the pres
ent moment, financial boycott might
be more keenly felt by the japanese,
whose finances are far from being salts
factory.
Japan Seeking Loans.
Japan has been seeking loans In the
foreign markets ever since the begin
ming of the Manchurian crisis. But
while nations which still are able to
lend money were noncommittal about
an actual cash loan, credits of about
s15,000,0 900 were extended to Japan by
some Of the leading French ammuni-
tion and arms manufacturers.
1t is questionable whether an official
financial boycott would prevent the
Japanese government from obtaining
the same kind of credits. The general
opinion is that if the ammunition
manufacturers know that they cannot
rediscount the Toxic promissory notes
it will be much less easy for the
Japanese government to order whatever
material they need from foreign coun-
tries.
Prepared for Emergency.
But, on the other hand, the japanese
government Is well prepared against
any emergency of that kind.
Ever since the outbreak of the Man
churian crisis Japan has been purchas-
ing from abroad large qualities Of war
and raw materials which can be used
for the purpose of war. A much larger
quantity of cotton than could be used
for the manufacturing of cotton goods
has been purchased in the United
States last year.
Fine steel as can be produced only
by Sweden was purchased in large
quantities last Summer and the
French and the, British arms manu-
facturers have been shipping large
consignments to Japan. All these
materials have been stored in view of
just such boycott as the League of
Nations has in mind at the present
moment.
As far as the other raw materials
are concerned, such as food, coal and
oil, Japan has ample supplies.
Oil Fields Developed.
Manchuria can produce all the food
the japanese nation needs for years to
come, The staple food Of the Japanese
around the Japanese islands. As for oil,
the Japanese government, besides hay
ing purchased and stored large guam
titles from Russia and Holland, also
has developed the oil fields of the SAX
halien Islands, which have sufficient
oil to supply all the needs Of the Japa-
nese nation and of the Japanese navy.
Under these circumstances, it Is be-
lieved that a financial boycott would not
injure too seriously the Japanese, and
IL Is certain that 1t will not deter them
from continuing their warlike activities
in China.
American Position Question.
Whether the American government
will associate itself to any boycott sug-
gested by the League Is an open ques-
ton.
So far no official approaches have
been made to the State Department.
But 1t is said that the indirect feelers
which have come from Geneva indicate
that the other powers would welcome
America joining the action of the
League, without specifying, however,
whether such an action of the United
States would be considered as inde-
pendent Of any other situations which
may occur in the future or not.
The American Government, it is GER
tain, will not join the retaliatory meas
ures Of the League unless the League
made 1t clear that such a step would
not involve the United States in the
future. That is to say, the American
oOfcI uIncLI WOulQ QOC COISlQer Joining
the League in repressive action, II
such action could be interpreted as
precedent to bind all future actions Of
this country in any other conflict.
The case of Japan is clear. There
is no doubt in the mind of the Amer
lean Government and Of the American
people that Japan is the aggressor in
the conflict with China. If America
Joined the League in a boycott, it would
do this because it Is satified as to who
the aggressor Is. But this coun-
try would hesitate to join in a boycott
because the League decided to take
such step on the broad basis of main
tanning the integrity of treaties.
The probabilities are, however, that
the League Of Nations, If 1t decided to
invite the United States to cooperate
with the other powers to enforce the
decision of the League, will realize
Americas problems and will make the
request on this specific case Of Japan
having been an aggressor, and having
violated a treaty to which the United
States Is a party.