Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-07-02

the southern and eastern coasts.
But the Japanese have not paci-
fled a single province nor any single
large area. BY Japanese count, for
example, there are still $4,000 Chi
nese guerillas within Is miles of
Shanghai and whole Chinese army
few miles south of Marking. Oc-
cupation of coastal cities does not
extend for more than a few miles
back from the sea.
Manchukuo Fate Faces China.
Plans for he future are not vet
completely clear, but it is evident
that the Japanese intend 10 domi-
nate every phase of life in China.
If Japan wins the war, China
probably will be reduced to a status
like that of independent" Man.
chukuo, with no more room for
foreign business in the new China
than in Manchukuo.
The Japanese admit that their
job will take many years, and some
of them are no longer certain it can
be accomplished at all.
Here is the way japanese officers
explain their problem:
Our biggest task now is to make
friends with the Chinese people
That is essential if our victory is
to mean anything, since there are
too many of them spread over too
vast territory for us to rule in
definitely by force. We have not
even started to do this job"
The Chinese people today show
little disposition to welcome the
Japanese as friends.
Instead of the rich market of 450,-
100000 people she expected to ex-
plot, Japan holds scores of burned
and partly destroyed, partly de-
serted cities scattered over a ter
ritory two and one-half times the
size of Japan.
Progress Toward Restoring Trade
Out of this economic wilderness
however, the japanese have be-
gun to develop some semblance of
order. They are making slow but
undeniable progress toward restora-
ton of trade despite guerilla activi-
ties and the resistance of the popu-
lace.
First steps toward the realization
of Japan's real dream of empire
have been taken through the de-
velopment of monopolies in what is
left of China's utilities, real estate
railroads, shipping, communication
textile industry, iron mining, silk
trade, fishing industry and others
But unless they begin to show q
profit Japan cannot continue to pour
money into them indefinitely.
Foreign traders are pinned in half
a dozen cities along the coast, COM
pletely cut off from the interior and
internationally threatened with a
complete blockade.
Customs, tariff, financial and ex-
port restrictions, enforced by SOL
diers and warships, have handcuffed
most of them. There is no sign that
any restrictions will be slackened.
China is doing everything possible
to hamper Japan's economic prog
ress. The Chinese farmers and
workers cooperate with the jap
anese only when forced to do So
Only one of China's important natu-
raj resources. coal, is being exploited
to profitable extent. Some iron is
being mined in the Hankow region
but other sources of wealth and
supplies have not yet been touched
Decrease in Casualties.
Since Hankow fell land OPERA
lions have been confined to guerilla
chasing, the capture of Nanchang
3OO miles southeast of Hankow and
a drive into Hupeh and Honan
Provinces.
Slowing down of large-scale mill
tary operations brought decrease
IN the monthly average of casualties
but the effectiveness of guerilla
operations was revealed in an official
Japanese report showing a proper
tlonal increase in Japanese losses in
the early months of this year as
compared to the previous 10 months
For the second time since the war
started, Japan is hesitating over the
question: Where do we 60 from
here?" The first time, after the
capture of Marking, the Japanese
guessed wrong. They sat down and
waited for the Chinese government
to collapse.
One group of the Japanese Army
favors bringing in another million
troops in final effort to corne,
Chang Kai-shek's armies and wipe
them out in a crushing blow. Japan
may be forced to attempt it.
Such a step means an additions
heavy drain on Japan's resources
AS lar as is known, no decision ha.
oeen reached, although large rein.
lorcements have been coming init
China lately.