The midland journal. (Rising Sun, Md.) 1885-1947, 1938-01-14

attack. CnlneSe augnOfltleS nave
isOn gas.
danger Of closing face" To be
blunt, we depend not on power but
on prestige to maintain our posi-
ton in the Far East. 1t is colos-
sal bluff which is being called today
by the clever Japanese. For Nip
pom has discovered that our lofty
idealism and morality are hypocriti-
cal and has decided to beat us at
our own game. Instead of prestige,
Japan is using power to conquer
China.
Great Britain will be the greatest
loser in this inevitable trade argu-
ment with Japan. In addition to
being the largest foreign investor
in China, she is Nippon's favorite
target by virtue of her belief in the
open door policy for China. English
colonists are so prominent and we'll
established in the Far East as to be
synonymous Gin the Japanese mind)
with all that is wrong with Occiden-
tails. s
Americas loss cannot be as large.
A 1888 survey showed that United
States citizens have about $150,000,-
600 invested in China, representing
1.3 of all investments beyond our
frontiers. American money amounts
to about per cent of all foreign
capital in China. In order of in
vestments, Great Britain is first, ia
pan second, Russia third and the
United States fourth. Almost two
thirds of the American investment
is centered in Shanghai.
The Question: Japan's Policy.
What will happen to Occidental
investments in China must remain a
matter of conjecture, dependent,
first, on what policy the victorious
Japanese may wish to adopt, and
whether they wish to abide by the
"open door" doctrine to which they
subscribed at the Washington naval
conference. 1t is doubtful if they
will.
Quite obviously, every advantage
will be accorded Japanese mer-
chants. Already the imperial Gus
toms service at Shanghai has been
removed from European hands and
placed under Nipponese domination.
This means that Japanese goods
may enter China duty-free while
American and British goods will be
assessed heavily.
But does Japan dare close China's
door to Britain and America? And
do Britain and American turn
dare risk mourning Japan's enmity
by protesting too loudly against the
invasion of China? The truth of the
matter is that Britain and America
buy SO per cent of Japan's exports,
whereas the same two countries
account for IS per cent of Japan's
imports. In terms of trade, the
three nations are mutually depend
ent.
Last year % per cent of Americas
cotton crop landed on Japan's
shores, in addition to 10000, 900
worth of oil, $4,000, 1000 in lumber,
100000 in wood pulp, $4,000, 900
in machinery and 100000 in mis-
cellaneous purchases. In all, 10 per
cent of Americas exports 60 to ia
pan each year.
Hands-Off Policy.
In the light tof the Occidental ma
tons stake in the Orient, it is easy
to understand why Britain and
America are forsaking the mailed
fist in favor of polite diplomatic ex-
changes with Japan on such topics
as the Panay and Ladybird Incl
dents. ~
China is not yet beaten. Her pol
icy has been and will be one of stra-
tegic retreat, pulling the enemy far
Their away from home and thus maxi
ing guerilla warfare more success
full. Meanwhile Japan finds her war
expense mounting rapidly and the
folks back home may eventually get
tired of paying the bills.
It is generally conceded that ia
pan must hold out two years to win
a complete victory. If she does,
she will control China and can hold
the Western nations at her mercy.
If China wins, Japan will be driven
back to her island empire but the
Occidentals will not necessarily
profit. On the contrary China's
years of grief will have welded its
peoples into strong, purposeful ma
ton, ready to trample on the for
eigners who now hold sway in her
rich cities.
Either way You figure it, the yell
low Peril has become the white
mans peril.
9 western Newspaper Union.