Evening star., 1937-12-29
JAPANESE REFUSE.
TO PAY DUTIES ON.
IMPORTS
Foreign Debtors Aroused as
Customs Are Ignored
by Merchants.
INSIST ON EXTENDING
LAW INTO ALIEN AREA
Military Police Demand Right to
Make Arrests in Foreign
Concessions.
BACKGROUND

BACKGROUND
japanese high command in
Shanghai Monday announced that
Americans and other foreigners
,could be subject to death penalty
TOR series OF 10 hostile acts
against japanese armed forces.
Order made applicable only to
Hongke,v and Yangtzepoo, Jap
anese-controlled sections of Shan
hat. Indications giuen, howeuer,
that military rule ,rould be ertend-
ed to all parts of China conquered
by Japan and pould continue as
long as the japanese remain in
opposition. Governments not yet
Officially notified OF intended ac-
tionS. American ertraterritorial
rights threatened.
Ps the Associated Press
Japanese moves to cash in on their
Chinese conquest intensified the ap-
prehension of foreigners today over
their economic future in the Orient.
While Japanese armed forces we're
penetrating deeper and deeper into
Chinese territory. Nipponse merchants
were landing cargoes at Shanghai,
duty free and without customs exami-
nation. at Japanese-controlled docks
Foreigners also feared China would
be unable to pay her debts to the
United States and other countries,
since her internal and external in
debtedness. estimated at $500 900, 900,
is guaranteed by customs revenues.
Attempt to Extend Law.
Another cause for concern was the
attempt of the Japanese Army to ex-
tend provisions of its military law into
Shanghai's International Settlement
and French concession. where thou
sends Of Americans and other for
eigners live. A japanese Army spokes-
man contended troops could enter
foreign areas and arrest and try AL
persons" suspected of crimes against
Japanese armed forces
japanese and Chinese troops were
fighting bitterly in two of the nations
richest provinces - Shantung and
Chekiang-with Tsingtao, Standings
main seaport, in imminent danger of
capture. Two United States warcraft
stood by to evacuate Americans.
Tsingtao Terror Rules.
Chinese began campaign of destruc-
ton, blowing up all telegraph, cable
and radio terminals at Tsingtao. ap-
parently in preparation for abandon
ment of the besieged port in the face
of tightening Japanese siege of the
city.
This is the policy the Chinese
military has followed in other cities
when japanese occupation seemed
imminent.
The explosions, which shook the
entire city, cut off all communica-
tions and resulted in the greatest
tension among the populace, including
l59 Americans who had not yet
evacuated.
Apprehension Growing.
There was growing apprehension at
Shanghai over the future of American
and other foreign firms in China as we'll
as the nations ability to pay her debts.
China's internal and external in
debtedness, guaranteed by customs
revenues, has been estimated at $780,
100000. OF this amount foreign loans
total $780, 100000 and Boxer indem-
nifty payments, $36,000.000. Major
loan and indemnity holders-the
United States, England, Trance and
Japan-thus far have received full
payments, but payment Of the next in
stallment, due February /, was con-
sidered questionable.
Cargoes Land Without Paying.
American and other foreign firms
pointed out that Japanese cargoes
were being landed without duty at
japanese controlled Yangtzepoo,
Hongkew and Pootung docks, while
their own consignments were subject
to customs payments. This inequitable
(see DUTIES, Page A-3)