Evening star., 1937-08-22
FINANCES HELPING
CHINA IN CONFLICT
Japan Is Facing Exhaustion
in Trying to Impose
Will in Asia.
Special Dispat tch to The Star.

Special Dispatch to The Star.
TOXIC, August 81 Not
since the empire Of Japan faced the
old empire of Russia on the battle
fields Of Manchuria has this country
been confronted with as grave A crisis
as the present one, growing out of an
exchange OF shots between q few Chi
nese and Japanese soldiers not far
from the walls of Peiping the night
Of July T.
The usso-Japanese war was a
struggle by Japan for its very exist
ence as a fully independent nation.
From Japan's victory in 1905 dates It's
growth AS great power and essen
TALLY, the policy which has led 1t into
the present impasse.
War with China now, whether called
war or not, is a struggle by Japan for
It's continuance as a first-class power,
and this Japan realizes. The strug-
gle will not be fought out primarily
by the troops in the field, but by finan-
clal and economic forces.
There is scant prospect of de-
cislve japanese defeat in battle, but
there'is very grave likelihood othat con-
f1ict with China will prove so costly
As to exhaust the nation economically
and thus remove 1t from the chief
competitive commercial nations OF the
world.
Chinas Weapon Economic.
This, undoubtedly, is the ma jor
item in the war policy of the Marking
government. The Chinese are prone
to think in terms of economics, in
terms OF generations Dollars ard
| pounds and francs and all other cur
rencies will be Chinas chief allies IN
the contest with Japan. Unable to
defeat the japanese army directly.
China plans to defeat the whole OF
the japanese empire by the indirect
method of economic exhaustion.
! If this be done. reason the Chinese
then China and Japan will start from
somewhere near scratch in the race
to rebuild their economic and indus
trial strength, and the Chinese feel
confident they will win in such a race
1t may take generation two gen.
erations, but to the economically
minded Chinese, who think in terms
OF their descendants and the future
this is largely acceptable.
To Chang Kai-shek, however, who
has gone so far with the unification
and strengthening of the Chinese re-
public, the prospect of prolonged con-
| f1ict is tragic. 1t is more difficult for
! him tn nj in, tar st
eratlons, and he realizes that such A
! struggle means the destruction of his
| whole life's work
| Struggling to Keep Pace.
Japan is no longer fighting to retain
| economic and political control CT
| North China. 1t is struggling to keep
| its place in the economic world of
today as a principal participant. 1t
is no use pointing out now that had
Japan not sought to gain control of
! North China it would not be con-
| fronted with this problem. The fact
| is that the problem is Immediately
| to hand
| All intelligent and educated Japa-
nese know this: all others sense it.
That is why this is the most unpopular
war upon which Japan has ever en-
barked. 1t is not meant to say for
a moment that there will be any fall
tering on the part of single Japa-
nese in the prosecution OF the war
One and all they are ready to 20 to
the extreme limit. to make the su-
preme sacrifice, If their country and
their Emperor need it from them But
they feel it is all so useless, that there
is nothing to gain.
Japan, for the present certainly,
wants control Of no more territory on
the Asiatic mainland. 1t already has