Evening star., 1938-06-02
FATE OF HANKOW
DECISIVE j. S.
Japanese Will Win All of
China's Trade if She
Captures Capital.
BY REGINALD swEETLAND,

SHANGHAI, June 2.-As far as
America and other foreign powers are
concerned, the impending battle for
Hankow will be the most important
since the war began In China the
middle of last July. For this is to be
battle for the trade moAopoly of
China and the supreme domination of
Japan in all trade matters in the Far
East.
The Hankow battle will be decisive
in more ways than one. 1t will cause
the removal of Generalissimo Chang
Kai-shek's government once more.
This time 1t will probably 60 to
Yunnan, southwesternmost province of
China. And with all the political and
economic questions involved in such
removal the flight of most of the for
eign business interests in China is
likely to result.
This assumes that the Japanese will
capture Hankow. 1t is a pretty safe
assumption, for once Japan makes up
her mind to do something, she does it
regardless of any cost. Only the direct
Intervention of some third power can
prevent her, and that is an extremely
remote possibility.
Intentions Clearly Revealed.
Japan's policy in China during the
past few months should leave no doubt
in anybody's mind what her intentions
are towards permitting American and
other foreign business concerns to
operate.
With Japanese guns pounding the
walls of Marking American and other
foreign firms folded up and left that
capital-they would have risked their
lives by remaining-expecting to re-
sumo activities once the Japanese
Army was in full control of the city.
That was five months ago. The Jap
anese are still in control Of Nanking,
but not single American or other
foreign business man has been per-
mitted to return to resume business.
This is also true of Tsingtao, Soo-
chow, Chinkiang, Wuhu and Suchow.
Once door had been padlocked, even
though foreign flag flew high over
the plant, that was the end of it.
In the Yangtze Valley. the main
trade stem of China, Hankow is Sec
ond only to Shanghai. American
firms there include Socony, Texas Oil,
the National City Bank, wood, Oil,
chemical, hides, skins and tea ex-
porters. There are scores of smaller
importers, including automobile firms,
to say nothing of missionary societies,
hospitals and schools, all flying the
American flag.
Should the heads of these firms and
institutions evacuate when japanese
guns pour lead into Hankow, Wuchang
and Hanyang, then American business
would be ended in Central China
throughout the 500 miles from Han
kow to Shanghai. for the japanese,
following their Nanking precedent, will
not permit American and other for
eign business agents to resume. If
these leave, all business in the future
will belong to Japan.
!. This result becomes all the more
certain with Japan's announced in
tention to control all Yangtze River
shipping. 1t becomes doubly certain
with the Japanese announced inten-s
.tion to control all China coastal ship
pings. This means that no ship will
be able to move along the Yangtze or
in China coastal waters, to leave
Shanghai, or to dock at any Yangtze
River or coastal port without Japanese
consent. This is obvious with the
impediments already placed upon for
eign shippers at Tsingtao where
cargo is not permitted to be landed
without Japanese consent and no pas
senger is permitted to set foot ashore
without acceptable reason.
Urge Passage Be Forced.
A movement in British business and
shipping circles here is now under way
to demand that the admiral of the
British China Seas feet force passage
up the Yangtze without japanese con-
sent-a movement which is likely to
gain ground. 1t is felt that the only
way to save the entire Yangtze Valley
trade from japanese hands is for
American, British. French, German
and Belgian business heads to remain
at Hankow and demand the right to
carry on business.
The Japanese throughout the war
have been fairly reasonable in per-
mitting foreign business to continue,
under certain restrictions, but once a
plant has been vacated it has been i'm
possible to win their consent to reopen.
To date the excuses given have been
that territory under Japanese occupa-
tion is too unsettled and hence unsafe
for third-power nationals and that the
Yangtze River is full of floating mines
and unsafe for third-power ships to
navigate. Despite these dangers for
eign business men and missionaries
have announced that they are willing
to take a chance, but the Japanese re-
fuse permission.
Only BY overriding Japanese objec-
tions; only by maintaining what small