Evening star., 1940-08-04
Aviution Gas
Continued From First Page)

anese Far Eastern desires, and now
Japan faces the prospect Of pres
sure from the two great English
speaking nations. The United States
since July has been develo/ng
gradually a policy for squeezing
Japan commercially to supplement
the political antipathy often ex-
pressed in the past for the Jap
anese Asiatic policies.
Scrap Iron Not Mentioned.
The Ambassador saw Mr.. Welles
in the morning. AfterWard he de-
clined to disclose to neWsmen the
subject of his communication except
to say that it dealt with a COM
mercial matter. Elsewhere it was
learned that the aviation gasoline
embargo was the point at issue. The
question of the presidential order
placing iron scrap under a system
of export licensing was not referred
to, it was said. Scrap iron, needed
in munition manufacture, is still
available to Japan.
The japanese anxiety over the
embargo arises from the fact that
the United States is the primary
source of aviation gas. The Ameri-
can Petroleum Institute reports that
reflneries in this country are now
producing the worlds only adequate
supply of fighting grade" gasoline
for airplanes. During the first six
months of 1910, the United States
shipped 100000 barrels of aviation
gasoline to Japan. From January
to December l, last year, the United
States exported to Japan petroleum
and petroleum products worth $40
638,000-65 per cent of all Japanese
petroleum.
1910 Purchases Down.
japanese purchases were con-
siderably larger last year than this.
They declined the first half of 1910,
Government experts said, due partly
to the accumulation of a reserve,
partly to the growth. Of. refining
facilities in Japan and partly per
haps-to lack of foreign exchange
for large purchases.
The present problem. in Japa-
nese-American relations is only
generally connected with the con-
siderations that led the administra-
ton to denounce the commercial
treaty JUL 81, 1899. The political
consideration there was principally
a protest against the Japanese use
of force against China and the
Japanese disregard of the commit
ments Toxic had made in signing
the nine-power treaty.
When the treaty went out of ex-
istence last January 27 the United
States had the authority to set up
an embargo on goods for Japan,
but the State Department preferred
to keep the commercial relations
of the two countries on a day-to-
day basis. State Department ef-
forts discouraged congressional
move to pass embargo legislation,
which had the backing of Chairman
Pittman of the Senate Foreign Re-
lations Committee.
Peace Sought in China.
The arrival of the intense period
in the European war had reactions
in Japan which contribute to the
current British-Japanese and Amer
ican-Japanese policies. Since April
l Japan has made gestures indi-
eating wish to establish at least
economic hegemony over the Meth
erlands Indies, has put pressure on
Frencn Indo-China, has massed
troops by lie British possession of
Hong Kong, and now has, through
Prince Eonnye, pr'EIeimed plan
for "Gteater East Asia"
Contemporary with these extra
China moves, Japan set out to force
Chang Kai-shek into accepting a
peaceful end to what Toxic calls
the China incident" BY official
statements and loans, this Govern
ment has supported the Chinese
government and encouraged it to
stand its ground.
Export Licenses Authorized.
On July 2 the way for apphca-
tions of economic pressure against
Japan was opened through the en-
actment of a law authorizing the
President to require export licenses
for certain commodities which might
be needed at home for the defense
effort. This move, it becomes ap-
parent now, was designed for put
ting difficulties in the way of Japan
that would hearten China.
On July 10 Mr.. Roosevelt put
aviation gasoline on the license list
The Ambassador of Japan called al
the State Department for enlighten.