Evening star., 1938-02-11
MANCHUKU0SEEKS
AID Of i. s. CAPITAL
Help in Obtaining Imports
Without Payment in
Cash Is Asked.
By A. r. STEELE.

CNlfAe0 IHIy NEWS SOlIFSpbtHtiIt.
HSINKING, Feb. lin its hour
Of financial travail the ManchukuOan
government is turning to generous,
bir-hearted Uncle Sam for assistance.
Plagued by the war in China and the
threat Of a greater war elsewhere, the
japanese have launched a flve-year
plan for the development OF heavy
industries in this country with the
ultimate. objective of making Japan
and Manchukuo self-sufficient in all
basic war materials.
Naoki Hoshino, who. as chairman
of the Manchukuoan General Affair,
Board. is the esS.tTolling head of the
civil side of the Manchukuo govern
nent, said today that American in
dustrialists and capitalists would be
invited to play major role in carry
ine out Manchukuo's ambitious and
costly program.
Official to Visit u. $.
HoShino disclosed that GiSuke
Ayukswa. president of the newly Or
eanized Manchuria Heavy Industries
Co., would visit the United States
within few months to study Ameri-
can industrial methods and to seek
large-scale financial cooperation from
American interests. Ayukawa. who
Is an American educated financier
and reputed friend Of Henry Ford,
has been entrusted by the Manchu-
k'loan government with the custody
ard development of all basic indus
tries in Manchuria. His company.
capitalized at 40O,O00,OOO yen, is a
government enterprise
The gravity of the international Sit
uation makes speed essential in
strengthening the sineWs of the ma
tional defense of Manchukuo and ia
pan. Vast amounts of machinery and
equipment must be imported for which
Japan would normally be obliged to
export gold. This is just what the
japanese wish to avoid during this
period of national emergency; in fact
the strict application of the new ex-
change control laws of Japan and
Manchukuo makes the export of large
sums of specie practically prohibitive,
SO the Japanese are asking American
help.
We want long-term American
credits" Hoshino said, with which
tn buy large quantities OF American
heavy machinery, and We want
American experts and engineers to
come here. install machinery and run
it. The United States is pre-eminent
in the fields of automobile manufac-
turing and steel making We propose
to build automobile factories and steel
works with American materials and
American aid. We wish also to step
up the production of iron, coal. gold
and oil, to a maximum. To do so
quickly We must import machinery
from America"
Iron Ore Assays High.
Hoshino picked up slab of what
looked like black lava from his desk,
explaining:
That is sample of the ore from a
newly discovered iron deposit in the
Tungpien district of Eastern Man
churia. It assays so per cent iron,
ana II the deposit is as large as We
think, Manchuria may be supplying
all of Japan's iron needs in another
five or six years. Our coal deposits
are ample and two liquefaction plants
are under construction. Within 10
years Manchuria should be filling all
Japan's petroleum requirements, with
oil extracted from coal-and more
cheaplv than the imported product" :"
Hoshino had nothing to say about
the rough treatment American busi-
ness has suffered in this country since
the Mukden incident of 1881 or about
the possible attitude of the American
Government. but voiced the hope that
political considerations would not pre-
sent serious obstacle
(Copyright. 1o3s. by the Chicago Daily
News Inc,