Evening star., 1935-01-06
What Will Follow Japan's Denunciation
OF the Five-Five-Thr Naval Ratio?

really Is less rivalry IN the trade of
the United States and Japan than in
the trade of any other two major
powers.
Japan sells to the United States
principally raw silk, which is not pro-
duced here. She buys from the
United States principally cotton and
certain manufactures and raw ma
terials not produced in Japan. There
has been much talk of an invasion of
the American markets by cheap jap
anese goods. At this point the fig
ures enter. They show that, unlike
most other countries of the world,
Japan now is buying from US goods
in the prosperity days of 1929. She
is an unusually good customer. At
the same time she is selling to this
country a sharply smaller volume Of
goods than in 1929. What used to
be balance of trade favorable to the
japanese has become a balance of
trade favorable to the United States
Some speciality manufactures have
come into this market, but the phe-
nomenal expansion of Japanese ex-
port trade has been in other markets
than the American market, and prin-
cipally at the expense of traders of
other countries. This seems to let out
trade rivalry as an important cause
of trouble between the two countries.
Which country, then, is feeling this
rivalry? The answer is that British
interests have been hardest hit. Back
in 1929 English manufacturers sold
cotton goods to twice the value of
those sold by the japanese. BY 1893
the Japanese had taken the place of
the British as leaders in the field.
Similarly with exports of rayon, OF
woolen manufactures and of other
light articles, the exporters of Japan
struck at English and European man
ufacturers more than at American.
At the same time, Great Britain
with a huge stake in Asia, with in
terests in China proper that are much
wider than those of the United States
stands to lose more by Japanese ag-
gression than does the United States
Her naval base at Singapore appears
TO cut across japanese trade lanes
more effectively than any base this
country possesses. Yet this country
rather than England, finds itself
squared of in diplomatic tussle with
Japan.
Why should this be so? Principally,
so 1t is explained here, because the
British are adept at trading and
maneuvering. The Japanese think
they can deal with Britain according
to the older rules of imperialism and
on a business basis. The Americans,
meanwhile, seem more concerned with
principles than with trade. They in
sist on keeping open the door to China
and on standing opposed to Japan's
determination to extend her sway over
more of Asia, even when other ma
tions have much bigger stake than
has the United States. Both countries
now have their backs up and scarcely
can retreat without losing face
The Roosevelt administration is glad
to accommodate any foreign buyers in
the American market and to give
thought to the chances Of buying
goods from foreigners, so that they
can pay for what they buy from us,
but it does not expect to pull the
country out of the depression through
development of foreign markets
Rather the whole stress is on making
adjustments within the Nation that
will cause the United States to be
more independent of the ups and
downs of world economy.
On that basis America can be ex-
pected to build up her Navy and to
make sure of her security. but there
is little chance that she will do any
fighting to prevent Japan from ex-
tending her sway in Asia. Russia and
England may end up with that job
If it is to be done. But right now
this country has been maneuvered
into a position where it looks like
Japans adversary.
(Copyrisht. 1881