Evening star., 1940-09-27

body Of the United States feet IS
being kept In the Pacific, now based
in Hawaiian waters. There has been
talk Of possible American use Of the
strong British naval base at Singa-
pore.
American policy in opposing Japa-
nese moves in the Pacific has been
based on the conclusion that these
were aimed at complete economic
and military domination in the
Orient and exclusion Of American
and other foreign interests. Achieve
ment of such a program, in the
opinion Of policy guiding officials
here, would constitute serious mill
tary and economic threat.
Relied on Scrap Supply.
Mr. Roosevelt's order of yesterday
banning iron and steel scrap exports
to all but Western Hemisphere ma
tions and Great Britain was inter-
preted here as the immediate an
swer to Japan's present operations
in Indo-China. Japan has relied
heavily on American scrap for the
needs of her war economy.
Other economic weapons. diplo-
matte sources said. were being held
in reserve for use if Japan con-
tinued the line of action described
In official quarters here as her
challenge" to the whole American
policy on Far Eastern status quo.
There are several economic weap-
ons with which the United States
may express further disapproval, in
formed ons pointed out. The
present e.. largo on the export Of
aviation gasoline could be extended
to include all other types Of oil and
petroleum products. Barriers could
be raised against Japanese exports
to the United States, notably silk
a major source Of foreign exchange
for Japan. Another possibility cited
was an embargo on copper.
Heavy Copper Buying.
This last apparently seemed the
most likely to Japanese commercial
representative in the United States,
for announcement of the scrap iron
embargo yesterday was followed by
heavy Japanese buying of copper in
New York City metal markets.
Some American steelmen Endorsed
the scrap iron embargo as a step
in the right direction" saying that
domestic scrap inventories were
dangerously low" and that large
supply of the metal was essential
for defense program requirements.
Although main official attention
here was riveted on the axis treaty
and the result of the embargo
proclamation, the State Department
kept an alert eye on developments
in Shanghai, where a growing strike
movement was in progress.
Delicate Situation In Shanghai.
Whether or not the strike might
have an ultimate bearing on the
delicate Shanghai situation, dis
pute continued there between jap
anese and American forces over the
patrol of the former British area
in the International Settlement.
Prospects for its settlement by diplo-
matte negotiations appeared remote.
In this dispute. the United States
has insisted upon patrolling a sec
ton of the former British-held area
in which the American consulate
and other interests are located,
while Japan has sought unsuccess-
fully to take over the entire area.
The latest economic measure in
voked against Japan was reinforced
by a new declaration from Secre-
tary of State Hull yesterday that the
United States continued to follow
the basic principles which had gov
erned its policies for many years
and that any countries opposing or
seeking to destroy them did so at
their own risk.