Evening star., 1939-07-23
japanese DEGREES
Menace American
Exports From China
Restrictions Give Toxic
And Yokohama Firms
'StroneIe Hold on Trade
BY JOSEPH H. BAIRD.

BY JOSEPH H. BAIRD.
A serious menace to the very life
OF Americas export business from
Japanese dominated North China
has arisen from a recent series of
arbitrary DEGREES imposed by the
country's conquerers, United States
businessmen in the area yesterday
Informed the State and Commerce
Departments.
Restrictions on American and
other foreign business laid down by
the Japanese either directly or in
directly and apparently designed to
give the big firms in Toxic and
Yokohama a virtual "strangle- hold"
on the North China trade, include
the following:
I. A decree by the North China
Provisional Government, dominated
by Toxic, that all exports must be
financed in notes of the Federal
Reserve Bank of Peiping which must
be purchased at rate of 27L4 cents
per yuan as compared with the for
mer rate of between 10 and IL cents
per yuan on the open market" This
restriction, If effective, would mean
that American exporters, buying
yuan with dollars, would pay nearly
three times as much as formerly
for their goods, The Japanese dom
mated bank, meanwhile, maintains
a parity rate between its currency
and the Toxic yen.
Ban Brings Losses.
2. Japanese military authorities
are forbidding Chinese traders to
bring their wares into the British
concession at Tientsin for sale to
foreign business firms, virtually all
Of which are located in the conces-
sion. This, according to the re-
ports, is resulting in a stoppage of
trade and heavy losses to American
exporters.
3. The Japanese military authori-
Ties. through their domination of
railroads and warehouses, are i'm
posing delays on the movement of
American-owned export goods in
cases where these compete seriously
with those owned by japanese busi-
nessmen, according to Americans in
the area.
In the view Of officials here the
most serious menace to the Ameri-
can export business from North
China-the largest previously of
any foreign power-is contained in
the currency restrictions, No. l
above, which were decreed several
days ago.
The Chinese population of North
China. according to official reports,
is highly distrustful of the new
Pelplng Federal Reserve notes and
prefers the old yuan of the Chinese
Central government. Millions of
these notes still are in circulate
among the peasants and merchants
OF the area. Hence foreign business
men have no dificulty In acquiring
them at the fluctuating rate of be-
tween 10 and II cents.
Regulate Export Permits.
However, the Japanese authorities
have foreseen the possibility of ex-
change Tor export purchases being
obtained In this manner and have
sought to counteract it by providing
that export permits for goods may
be obtained only by those who can
show receipts for yuan purchased
through the Federal Reserve Bank
equal to the value of the commodi-
ties to be exported.
American business firms report
that due to the exchange uncertainty
resulting from the decree business
Is at virtual standstill, pending
price readjustments which may re-
suit.
Recent reports to the State De-
partment from American business
men in China also have complained
OF the difficulties they are expert