The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-06-21
'SQUEEzE=MAY
ENFORCE open
DOOR IN China
Want Recognition Of An
glo-American Priority
Right in Investments
ECONOMIC WALL FOR
CHINA IS FEARED
BY MACK JOHNSON =
Copyright, 1888, United Press)

NSoPyFiButs 1900 SusS0o AsoSsf,
WASHINGTON, June FL. (UP)
The United States ana Great Bri-
tain, chief sources of Japanese
credit, are preparing for Joint
financial action against Japan to
prevent the island empire from
erecting wall Of economic re-
strictions around China to the ex-
clusion of Anglo-American trade,
a high administration official told
the United Press last night.
The program, in tentative
stage, envisages Squeeze play
in which this. country and Britain
would shut of Japanese credit un-
til Japan agrees to observe the
integrity and priority of Anglo
American investments in China
as we'll as guarantee continuation
of the so-called open-door trade
treaty policy.
The United States invested
stake in China is more than $780,
100000. In addition this coun-
try's annual trade with China is
more than $160,000,000. Great
Britain's invested stake Is more
than $1,000, 100000 snd her an
nual trade totals five times more
than this country's.
The United Press informant
said Anglo-American officials fear
an economic wall around China
such as Japan threw around MAR
chukuo after her conquest OF that
territory in 1882, in which ia
pan psaKsd the 44anchukuoan cur.
rency to the yen and then imposed
restrictions. which made It almost
impossible for occidental export
ers to obtain foreign exchange Tor
their merchandise.
He said confidential information
in the hands of British and Amer
lean authorities indicates Japan is
preparing to initiate similar pol
lev in North China and extend 1t
to all of China if she is victorl-
Gus in the present war. Japan.s
objective, the informant said, Is
to seize economic hegemony over
all Eastern Asia.
Because there has been no overt
act for Q diplomatic protest to
Japan for violation Of the open
door policy, lo-American au-
thorities set out to ind otner
means Of curbing Japanese ambi-
tons. To this end, this correspon..
dent was told, the squeeze play
is being mapped.
Gravity Of the situation was en-
phasized yesterday when the Dc.
partment of commerce warned
American exporters that they
should have Confirmed, irrevoca-
bic letters Of credit" before ex-
porting to Japan because OF the
increasing severity of foreign
exchange restrictions.
The Japanese yen is controlled
by curtailing imports whose coun-
terparts are not produced domes-
tically. A license is required Tor
such imports. Japan does not re-
strict movement Of commodities
between Manchukuo and Japan,
or vice versa, although licensing
restrictions are applied to other
nations.
British and American officials
hold that application Of the same
principles in China would impris-
on Anglo-Afneriesn investments
and, moreover, destroy trade with
China.
Il was emphasized Japan's war
on China enters into the situation
only to the extent that Japan must
have American and British credit
to successfully prosecute the ven
ture. It was stressed that officials
are not out to curb Japan's terri
torial aspirations but merely are
seeking means Of safeguarding
Angle.American interests in the
Orient. =