The Waterbury Democrat., 1936-08-24

I AVAhhhOAhuh AASAdNAb hA8b @ASab Britain will be embroiled in the waF," writes Yu Nakayafna Of the intelligence bureau of the foreign offlce in . magazine devoted to Japanese AScendancy in the Far East.
 Situation Called Critical
 Japan hos never been more critically situated than at present.
 Tt is beset with powerful enc. mics on three sides -- Great Britain, armed spiritually, and the Soviet Union, armed in oil direc. tiong."
 The collapse of the Chen Chi- tang regime in Canton has brought China to c more centralized and stable form of government than ever before. Japan looks across the China seas with new apprenhen. sion.
 "Thc fact cannot be denied that General Chiang Kai-Bhek is oni- crging from tho recent Ranking. Canton strife and that his ambition for the national uniflcation of China is being completed" com. 0mentS the newspaper Hochi in Tokyo.
 "Tho collapse of the southwest faction will strengthen Chiang'S attention toward North China, where c more complicated situation may arise"
 Trade Expansion
 Japan desperately needs expension Of trade 70 that itg national income will support an adequate defense program. Japan has met with direct loses to It's national livelihood through action by Great Britain, Australia and the United States. If it's outlets through North China are stopped it will ios0 another most important market.
 Japan fears that NankIng, suc- ceNfui against the Cantonesc re- volt, will attempt to tighten Cofl- trol over tho Hopeh- Chahar poiiti- cal council in North China. That territory has been regarded aB un. dor JapancSe influence, district through which Japan could take advantage of low import dutioB--- some cail it smuggling, tho JapancBe cali it legitimate inportlng-to flood China with Japanese merchandise.
 Leaders in shaping JapanB for- oign policy arc concerned over that possibility. The powerful and in. fiuontial newspaper Asahl declares that Chiang, with his Unusual crafty diplomacy" iB continuing "Chlna'B traditional policy Of pitting one foreign country against another"
 Newspaper CrIstIcIses China
 "Tho Japanese government" says tho Asahi, "rcgr0tB that China has not yet awakened to the significance of Sino-Japaneso cooperation and has not abandoned her policy Of dc. pending on Europe and America, Such C situation, Japan regrets, does not contribute to Btablizatioti Of East ABia."
 Commentators here believe that China's new status will bring more emphasis to anti-japanoBo Benti- fncnt and that tho trend will be concerned algo with progressive in- naturalization. Japan would De one Of the heaviest sufferers # China over developed an industry capable of supplying It's 400,0o0,000 inhabIt- ants.
 The Hochi editorially warns Jap. an about Chinag armamentS. Stat. ing that China has powerful air forces, the newspaper continues!
 "strict caution should Dc taken as her arnamentB are solely d. rected against this country"
 Tn tho meantime Japanege mer- chants are pressing for trade ad- vantagos in North China. Late res ports from TicntBin tell of BWaTnS of JapaneS0 enroute north, with c business boom in progress. Gains In China Hailed
 The rapid influx Of Japanese is live symbol of Japan'S giant strideg," says special dispatch from Tientsin to the Tokyo Nichi NiChi.
 Another article in the same Serieg from TientgIr mentions Gn asserted necessity for political readjuSt- ments."
 Lowering the prohibitlvC tariff, resumption Of the Sino-JapaneBe tariff conference and other reme. dial measures are suggested" t says.
 Japan sent c new ambassador, Shigeru Kawagoe, tp China this summer. It is reported that Kawas gos, well-served in the North China situation, will negotiate with the Nanking government for an under standing aimed ct developing the economic probabilities of that region.
 "In spite of the great ability Of Annbasgador Kawagoe," says 6 Shanghai dispatch to the Nlchi Nichi, "only . miracle will enable him to accomplish much in his dealings with China.
 "One of the reasons why General Chiangg Japan policy has remained unimproved for 50 long Is the tangled diplomacy engineered by Britain, the United States, the U. g. R. Germany etc. in and around China.
 "since General Chiang hss been building Up national defense faciIi- tics with Japan as the presumptive foe. he has been doing his best to cultivate intimacy with powers oth- sr than Japan"
 NEXT; BEltaiH's concern ln Che Far EasL)