Evening star., 1937-08-08
By CONSTANTINE BROWN.
THE Japanese invasion of
/ Northern China has shattered

tlle Ilndl nOpeS ana Illusions OF
Il the principal advocates of
"peace and respect for international
obligations" Secretary of State Cor
dell Hull, one of the last sincere
believers in better world in which
international trade may be resumed
on the basis of honorable treaty OBJ
legations" sees in this unwarranted
aggression the final blow to his hopes
OF bringing the nations of the world
together in a friendly cooperation
for the promotion of peace and trade
Once more one of the three leading
relationships has shown that it relies
more on the mailed fist than on agree
ments by negotiation. And what Japan
did in 1881, what Italy did in 1886
and what Japan is doing again now
may be repeated shortly by Germany
This totalitarian state has so far OBJ
tained virtually no new territories.
The example Of Japan and the help
lessness of the democratic states in
lace OF armed aggression set an eX-
ample for nations with a strong mill
tary force. 1t is in this light that
the new Sino-Japanese conflict is re-
garded in Washington, Paris and
London.
The japanese incursion of the
northern provinces is the result of a
vell-thought-out plan of the Japa-
nese military clique in Toxic and
their associates. the powerful finan-
cial and industrial groups.
Disappointing Manchukuo.
Manchukuo has been a disappoint-
ment because it neither offered a
suitable territory for colonization nor
did its natural resources reach the
expectations of the Japanese INDUS
trlalists. International bankers rate
IT as frozen asset which cannot
be thawed out for years. Not more
than 175000 individuals have settled
IN Manchurla since Japan took it
over. The former soldiers were given
Tree lano, were granted long term
credits for agricultural equipment.
Along the South Manchuria Rallroa Il
farms have been established which
were so fully equipped and we'll Or
gani1ed that they compared favor
ably in the eyes of American OBJ
servers with our Wisconsin model
farms. Despite all the expensive ad-
vantages provided for these farmers
by the government, they were not able
TO compete with the Chinese who
emigrated into Manchukuo in large
numbers after 1882, and today most of
those model farms are abandoned
The exploitation of the natural re-
sources OF the puppet state were
disappointment, too. Soon after Man
churla became the independent state
Of Manchukuo the extraction of the
various minerals from the Manchukuo
soil proved more costly than if they
were purchased in foreign countries.
This was known to the japanese in
dustr1al magnates for long time, and
their patriotic contributions" to the
many loans f1oated by the government
OF Manchukuo were obtained prac-
tfca1ly at pistol point. These power
ful hackers of the military clique
maintained that the financial sacri-
noes OF the empire would begin to
Yield profitable returns only if the
rest OF Northern China were placed
under the direct control of the i'm
perial government. They told the
government and the Emperor that
While Northern China would not offer
any better ground for the surplus
population Of Japan than Manchu-
kuo, the enormous wealth of the five
provinces would permit them to es-
tablish branch factories there.
Coal, Iron, Cotton and Oil.
Iron Is to be found in large GUAM
titles In the provinces of Shansi and
Shantung. In Shansi alone there
are some 30O,00O,OOO tons and the
annual production under the uncer-
tain administration of the Chinese
war lords amounted to 100000 tons
year. The principal coal mines of
China are in the same province. There
IS cotton and antimony and oil in the
coveted territory With raw materials
and tho cheap labor which is to be
found IN China and with the japanese
genius for business, said the Toxic,
Osaka and Yokohama magnates, the
western powers would soon be pushed
out OF Asia and the trade which for
nearly century has been in British
and American hands would fall into
the hands Of the japanese indus
trialists and workers
The physical control of the five
provinces-Suiyuan, Hopei, Chahar.
Shantung and Shansi-became in the
eyes OF the Japanese government an
essential factor for establishing the
country on solid economic and social
basis. 1t is true that since 1895 the
military commanders of three of the
f1ve provinces have been In the pay
OF the imperial government. But
arrangement was costly and unsatis-
factory.
While the invasion of the northern
provinces had the full approval of
the flnanciers and industrialists, the
general stah saw in it chance to
consolidate their position on the
Asiatic mainland The operations
they believed, would last no longer
than two or three months at most
They would require the transportation
to China of something like half a
million men. These troops might be
used either IN the Fall, weather per-
mitting, or next Spring against the
Soviets to complete the conquest OF
the northern section OF Asia by tax.
ing the maritime provinces from
Russia. Vlacivostok Is considered by
the japanese as the most important
port for the development of thei,
newly acquired provinces.
Chiang's Bark Worse.
Toxic, like many observers in Wash.
ington and In London, does not be.
neve that Gen. Chang Kai-shek will
do more than threaten and talk. He
will not risk his German -treinee
divisions far from their base of opera
tions against the incomparably better
prepared and equipped Japanese Army
The position of Chang is, of course
difficult. He Is compelled to adopt 9