The Waterbury Democrat., 1938-12-09
AMBASSADOR TO.
 CHINA RECALLED.
United States Determined Not to Take Japanese
 Stand Lying Down.
BY GRATTAN McGROARTY United Press Staff Correspondent

United Press Staff COrrespondent)
 Washington, Dec. 9. (UP) The unexpected recall for consultation of the American ambassador to China foreslnadowed today 8 revision of Far Eastern policy in an effort to frustrate complete Japanese dominance and control of trade with China.
 A delicate international situation had been created by Japan's alleged violation of the nine power treaty guaranteeing the territorial integ- rity of China and the alleged estab- lishment, by military force, of conn., mercial preferences for Japan to the almost complete exclusion of other powers.
 U. s. Is Determined
 This government will make every effort through diplomatic channels to obtain assurances from Japan that equality of opportunity in China will be continued. But high administration officials indicated that, regardless of the action of other nations, the United States does not intend to take it lying down..
 The possibility of military or na- val action to halt present discrim- ination against American trade was declared by high officials to be ''fantastic", but they indicated that there were other means through which the United States might Ideal" with Japan.
 By "other means" apparently was meant the possibility of economic action - large commercial credits to China rather than economic or fi- nancial moves directly against Ja- pan.
 Technically, since the United States does not officially recognize that 8 state of war exists in the Orient, Japan would have no grounds for potest or counter action against the United States if com- mercial credits were extended to China, it was said.
 Background of Dispute
 The background for the present strained relations between the United States and Japan has been developing for several months. Ja- pan, in the official eyes of this gov- ernment, is guilty of violation of the open door policy in China; per- sistent discrimination against the American interests and violation of the rights of American nationals; establishment of comprehensive exchange regulation system designed to give her absolute control over trade and commercial enterprise; al- terntion of the Chinese customs tariff; arbitrary and illegal" as- sumption of authority in a foreign land; assumption of the ultimate authority to regulate, tax or prohibit foreign trade in China at her own discretion; censorship of and inter ference with American mail and telegrams: illegal exclusion of American shipping from the Yangtze river.
 The American ambassador to Japan, Joseph c. Grew, was called to the Tokyo foreign office yester- day for a frank discussion of prob- lens arising from Japan's en- croachment on China. It was un- derstood here, although full official reports were still lacking, that Japanese Foreign Minister Hachiro Arita informed Grew that foreign powers with interests in China would have to revise their policies to meet Japan's stipulations.
 Grew Might Come Home
 State Department officials said there was no present plan to re- call Grew for consultation, but it was believed that he might "come home" after, or even before, Chin csc Ambassador Nelson T. Johnson is scheduled to return to China.
 Johnson will leave Chunking, pro- visional capital of China, on De- cember 12 and travel by motor car to Rangoon, Burma. From Rangoon he will fly to London and then sail for New York, arriving around the middle of January.
 His trip to Rangoon, along the so-called Burma road, is regard ed significant, for 1t is along this route that China hopes to obtain supplies from the outside. Japan now controls all other means of eutr.o nca int0 China