Evening star., 1935-05-12

NV
recently stayed the hand Of the Hol-
land officials from putting prohibitive
tariffs on japanese goods. So des-
perate did the situation become, how
ever, with factories in Leyden closed
and workrnen on the dole, that the
Dutch administrators have served
notice that they must shut down on
imports from Japan. So Gov. Hisao
Hayashi Of "Japan's East Indies" the
inundated Islands, makes trip to
Toxic and advises that capital be
slipped under the new tariff walls OF
Java, Sumatra and Dutch Borneo. to
be used in building up a native in
dustry behind them. It will be harder
for the Dutch to cope with this. Can
the rulers forbid the growth of in
dustry among their subjects, with the
subjects. appearing as partners and
directors?
British Forced to Compromise.
This same situation drove the
British to compromise with Japan
over the cotton goods market of India
and incidentally planted one toe
of Japan's new world industrial en-
pire squarely in John Bulls prize
game preserve. Japan has entered
into relations with Indian cotton mill
owners to modernize their plants-for
an interest in the bus0ess-and with
the Rajah of Kutch. north Of Bombay.
to build the first Indian port under
control of a native prince where goods
may be landed without paying British
imposed duties.
Before tracing some of the footsteps
of Japan's new economic imperialism
we might call attention to the aston
ishing fact that a nation which went
heavily in debt to older nations
generation ago, in order to industrial
ize herself, is now herself a creditor
and investing nation. At present
Japan's investments in Manchukuo
alone total more than her entire for
eign Indebtedness.
Already 30-year- Hanni Ito has
boasted that he will "dethrone Lon
don" as the worlds financial center.
Last year Japan sold a half million
more yards of piece goods than Eng
land; this year she will make more
rayon yardage than the United States
(hitherto far and away first in pro-
duction), mostly for export. She Is
striving to capture first place in the
export of finished rubber goods. small
motor cars, electric equipment and
other lines. Let her become the first
trading nation in a few more of the
worlds largest export items, and
though her domestic consumption re-
main a fraction of that in American
or European nations, she will de-
throne London. For he who con-
trolls trade controls world banking
exchanges.
1t is significant that this Hanni Ite
who reminds the American much
of Huey Long, heads a cult of implicit
followers, runs in the greatest news
papers two-page advertisements about
himself which he writes himself, anc
apparently makes fortunes by turn.
ing over his hand while preaching
redistribution Of wealth between the
white and yellow races-has founded
an organization for establishing the
new financial center of the world ir
Shanghai rather than in Japan
proper.
Philippine Market Near.
The nearest to home of Japan's new
economic world bases outside Of Man.
churia and China, where no one can
now question her, is in our own semi
possession, the Philippines. The jap
anese settlement of Davao, in the great
southern island, Mindanao, is grimly
called ''Davaokuo" by Manila news
papers. Here is located the Japanese
hemp industry and the United States
Rubber Co. Of Japan" After consid-
ering evidence that the plantations OF
the islands were acquired by japanese
through doubtful methods, such al
marriage Of Filipino women by Japa-
nese laborers, who then turned over
the land to their companies, the Phil
ippine secretary of agriculture pro-
posed enforced sale of Japanese land
holdings for $5,000,000. The Japanese
consul Immediately warned the Fill
pino official that Japan would contest
such an effort strongly, and placed
five times this value upon lJapan's Min
danao investments.
Throughout the Southern Pacific
island world Japanese shopkeepers are
taking from the Chinese their inne-
mortal position as shopkeepers for the
native population. They are backed
by home factories and banks, and
grant credits on what for that part
of the world is small interest. This
gives Japan a very sizable credit In
vestment In the South Seas.
Over in friendly Siam-more
friendly than ever since the elimina-
ton of the pro-British King-Japa-
nese money is operating fisheries and
rice plantations, getting into teak
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