Montana labor news., 1937-11-25
PLOTS IN
China AND BRAZIL
CLOSELY AFFECT u. ),
By ELIOT JANEWAY

JapanS reason 1Of asking Ter
many to mediate" for her in China
is simple. Japan is nearing the end
of her rope. Her wan is becoming
too expensive.
Having shipped nearly $780, 900, 900
in gold to the U. S. in payment for
war necessities bought here and in
England, Japan's London hackers
have now called upon her to put up
over $15,000,0 900 additional in gold
on their commercial paper which is
rapidly losing its face value. Ac-
c%ordingly, at the turn of the month
at precisely the time when Ger
many's ambassador in China was
approaching the Chinese government
with peace proposals"-Japan was
forced to dig down deep again and
send another $20,0OO,0 900 in hard cash
to U. S. banks.
Moreover, evidence accumulates
that Japan's behind-the-lines war
machine has stalled hopelessly. An
ambitious program was launched for
creating a machine tool syndicate.
1t collapsed before it went into pro-
duction, partly because of a fatal
skilled labor shortage. Meanwhile,
Japanese agents have been frantical-
ly attempting to fill the gap by
placing large-scale orders with
American manufacturers.
Rejecting their acute oil shortage,
Japanese buyers are seeking further
supplies of fuel oil of a special quail
ity required by the navy; 1000
tons is the amount, and an addi-
tional 10000 barrels have already
been shipped. And finally, Japan
has come to the two most patriotic
corporations in the U. S. for re-
| Punishment of her scanty steel
supply.
Our already great naval arms pro-
gram is to be speeded this year. Two
corporations dominate the shipbuild-
ing and shipbuilding supplies bust
ness. They are U. S. Steel and Beth
lehem Steel. Recently the South
Manchuria Acknowledgements agen-
cy for domination of North China
placed an order for 10000 tons Of
rails with the Ensley mill of U. S,
Steels southern subsidiary. At the
same time, Bethlehem and two in
dependents split a 14,000-ton order
for steel to be used for tanks. Dur
ing the same week, Bethlehem closed
an extremely profitable contract
with our own navy department.
At this point, Germany enters the
picture. Germany has been content
not only to make Japan her ally, and
North China a play yard for her
steel and chemical industries. She
has also cultivated relations with
China, especially with the key rail
road ministry which has granted
profitable contracts to German con-
tractors. Indeed, Germany's former
unfavorable trade with China has
now been converted into a satisfac-
torily favorable balance. Moreover
German industry has come to depend
upon strategic Chinese metals such
as tungsten and anthony, while
China's tung oil has been relied upor
to produce fats on the highly vul-
nerable German food front.
Germany's motive for attempting
to induce China to sell out to Japar
is, therefore, clear. But the Fascist
program is sensitive to pressure from
one source in particular. This is ar
embargo on shipments of American
strategic supplies to Japan.
Fear of such an embargo has I'm,
doubtedly played some part in the
latest Fascist coup in Brazil. Thar
Brazil has long been under German
political influence is known. Tha-
Japan has recently acquired a strong
foothold in Brazil's new and increas.
ingly important cotton and ore mar
kets is also known. Germany anc
Japan see in Brazil a prospective
colony much more profitable anc
satisfactory than Ethiopia or Tan.
ganyika. But they also e in oul
sister republic to the south a colder
opportunity to spread their nuisance
value to the hemisphere of the Mon.
roe Doctrine.
In a word, the Fascist powers wan
not only to get supplies in the U. S
for their armed forces, but they also
want to hold over the heads of the
American people the threat of lin.
cidents' and violence in the very
shadow of our borders.
We have not yet met the challenge
of their aggression. We have not yet
taken advantage of their bankruptcy
Perhaps we will at least refuse to bS
blackmailed by them.