Evening star., 1936-05-15
GREW CITES CHINA
SMUGGLING EVILS
Ambassador Has Taken Up
Trade Situation With
Toxic Authorities.
nv CONSTANTINE BROWN.

Ambassador Joseph Grew has taken
up the question Of wholesale smuggling
of Japanese products into China, to
the detriment Of the American ex-
porters, with the Toxic government, 1t
was revealed by the State Department
today.
So far there has been no protest from
the United States Government to
Japan. Ambassador Grew has dis
cussed the situation informally while
the American consuls and other
authorities in China are gathering
material for the information Of the
State Department.
Whatever future action may be
deemed necessary will be taken only
after Secretary Hull has all the neces-
sary data on this subject.
So far various reports have indicated
clearly that under the protection Of the
Japanese government large consign-
ments Of manufactured products are
being sent to China through Hopei and
Shanghai.
LANDED at various Points.
These products are landed in various
parts of China under the protection of
the japanese authorities and pay no
import duty.
Thus it Is known that Japanese
manufactured automobile tires, which
have to pay an import duty of about
27 per cent. are sent to that impor-
tant Chinese port on board japanese
gun boats and handed over to the
japanese distributors without pass
ing the customs. The Japanese dis
tributors find a ready market for
their tires, which now are flooding
Shanghai, since they can be sold so
much cheaper than the American or
the British manufacturers tires.
The same thing applies to almost
every other commodity which has
good market throughout the repub-
lie.
In this manner the Japanese gov
ernment has added another handicap
to the foreign commercial interests,
besides the closing Of the door of
equal commercial opportunities in
Manchuria, Jehol and parts of the
northern provinces.
Pressure on Contracts.
Furthermore. reports from China
indicate that the japanese diplomats
are exerting pressure on the Chinese
government to force it to cancel Or
ders placed with American firms
Thus it is reported that the order
placed by Chinese provincial COVER
nor with an American firm for a
number of airplanes was Cancelled.
Upon investigation by the representa-
tiveS Of the American concern, the
Chinese authorities confessed that the
order had been Cancelled at the
pressing request" Of the Japanese Of
ficials who had learned about the
transaction.
At the same time when Ambassador
Grew discussed informally the mat
ter with the Japanese foreign Office,
the British government instructed its
ambassador at Toxic to ask explana-
tions about this government SNUG
Cling"
Britain's Interest Greatest
The interest of the British in the
matter is still greater than ours.
Great Britain has important loans
in China. all guaranteed by revenue
from customs.
The fall in that revenue due to the
importation Of Japanese goods duty
free" Is causing serious loss to the
British loan holders.
1t was pointed out today at the
State Department that the British
and the American governments act
independently at Toxic. There is, of
course. ar exchange Of information
between the two governments regard
ing the steps they are taking, but for
the time being at least, there is no
question Of a common action.
LONDON PESSIMISTIC.