Evening star., 1938-12-25

markets of the United States were chal-
lenged both In Europe and the Far East.
Even the future of democracy itself began
to appear less certain than at any time in
a century and half.
AS a result, the country was awak-
ened from its placid belief that its
position in the world was unchalleng-
able The latter months of the year
saw resurgence of aggressive Amer
icanism, dedicated to the protection of
national institutions at home and treaty
rights abroad President Roosevelt pre-
pared to strengthen the Nations de-
fenses and, at the same time, to culti-
vate closer relations with other democ-
racies.
The coming year undoubtedly will see
the broad development of more ag-
gressive American foreign policy and
an expansion of American might on
land, at sea and, especially, in the air.
Specifically, the developments in the
world which caused apprehension in
Washington were
l. Japan's fragrant violation of Amer
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in a sitting of our trade and the mis-
treatment of United States citizens.
2. Germany's refusal to assume finan-
cial obligations patiently owed the United
States under the accepted rules of in
ternational law.
Latin America Courted.
3. German, Japanese and Italian ef-
forts to spread their political influence
in Latin America
4. The growth of Fascist and Com
munist political propaganda in Amer
lea and its possessions.
S. Determinations against Jews, in
Guiding American Jews, in the Fascist
states.
g. Growth of the war spirit" in Eu-
rope and the threatened involvement of
the United States in another World
War.
The most direct challenge to Amer
icas clearly-dehned treaty rights was
offered by Japan, engaged during all
the year in vast military campaign
to conquer China. There the United
States has direct investment of $24O,-
100000 in banks, business concerns and
mission and college property. Under a
treaty with China, the United States
has extensive extraterritorial rights
the right of having citizens tried in their
own courts, the right to maintain troops
and the right to trade freely.
Japan is signatory of the nine-power
treaty, signed at the Washington Naval
Conference of 1922, which guarantees
the status quo in China and pledges the
signers to respect its territorial in
tegrity.
From the American point of view,
Japan's campaign in China has been,
from the very first. patent violation of
the nine-power treaty. as Tokio's obvious
aim has been to establish its political
power over China. AS the Toxic war
lords pushed farther and farther into
the country, however. gaining control of
important ports like Shanghai, Tientsin
and Hankow. they also began to violate
American treaty rights.
Checkmate American Business.
The Yangtze River, chief artery of
trade, was closed to all but japanese
ships. japanese commercial companies
were established with special rights to
take over the trade of American con-
Germs. American mission property was
bombed by Japanese airplanes. Ameri-
can businessmen were denied freedom of
travel to transact their affairs in areas
under japanese military domination.
These conditions led to year-long
exchange of protests and acrimonious
notes between Washington and Toxic
Early in January the United States,
through Ambassador Joseph C. Grew, in
Toxic, protested to Japan the destruc-
ton of American property by japanese
forces in Nanking.
Later in the year another protest was
filed with Toxic over air attacks on
Chinese civil air liners, with consequent
danger to American travellers. Japan re-
jected it fatty. Many other protests
were filed over the almost weekly viola
tions of American rights.
Finally, in November, Secretary of
State Cordell Hull sent a lengthy and
strongly worded note to Japan in which
he catalogued the many instances of
Japanese interference with American
trade and the treaty rights of American
citizens He concluded by protesting Off
cially Tokio's violation of the open
door" policy in China-which Japan had
consistently. even during the fighting in
China. sworn to uphold-and demanded
the same privileges for Americans in
China that japanese subjects enjoy in
the United States.
Coming into the open for the first
time. Japan admitted that it's campaign
in China was aimed at complete domina-
ton of the country and advised other
nations to adapt their attitude to new
conditions" This amounted, in effect, to
unilateral denunciation of a treaty
among nine powers which Japan had
signed in good faith and for which it
had received definite compensation
the cessation of American battleship
building and the scrapping of American
plans for Strengthening its naval bases
in the Pacific.