Evening star., 1941-03-02
Export Rules Tighten
To Meet Urgencies
OF Far East Situation
Trade Control Becomes
A Major of Diplomacy
With Jupun and Soviet
By the Associated Press.

bS tnC ASSOCldleu EAeSc'
A new major weapon of United
States diplomacy. the Governments
control over exports, now embraces
virtually every commodity useful in
war and acts as a barometer of
American relations with other
powers.
Step by step, just as Japan has
inched her way southwark in an
Asiatic expansion movement, the
flow of vital materials that nation
needs for a war economy has been
cut off or checked.
The fluctuations of Soviet Russian
diplomacy in Europe and Asia, fa-
vorable or unfavorable to the de-
mocracies, have had reactions in the
control over goods to Russia.
A liberal licensing of exports to
other Western Hemisphere countries
and to Great Britain reflect the
good neighbor" policy toward Latin
America and the policy of full ma
terial support to the British in the
war.
The licensing system, patterned
after the War Trade Board OF the
World War, was set up last July
under a special act of Congress CIV
ing President Roosevelt broad pow
ers to conserve strategic materials
for defense.
Aids British Blockade.
Its administration and expan-
sion have been linked closely to
American diplomacy. Official en-
phaSiS has been on defense, but this
is broadly interpreted to include con-
tinental defense and aid to Britain
with a more liberal licensing policy
applied to exports to those countries.
The control serves also as an
effective backstop to the British
blockade in preventing supplies
from going from the United States
to the axis nations.
Exports to any nation through
which Germany, Italy or Japan
might receive the supplies are scru-
tlnized closely for unusual increases
over normal requirements.
The export control adminlStra-
ton is under Col. Russell Maxwell,
whose recommendations to Presi-
dent Roosevelt form the basis of
executive proclamations for any
changes in the list of commodities
OF in the regulations.
Japan Hardest Hit.
anorlnipS nf the GnU-
ernment, including State. Treasury,
Commerce and Agriculture Depart
ments, the Army and Navy NUM-
tions Board, Maritime Commission
and defense officials take part in
the formulation OF the export poll
cies.
Hardest hit by the export con-
troll has been Japan. which lacks
many of the materials it needs for
war.
Long among the best customers
of the United States, Japan found
adequate sources of supply in this
country until the export control
system began a steady process of
cutting off strategic commodities.
The American policy Of exerting
trade pressure on Japan to show
opposition to her expansion drive
in Asia began in 1889 when the
American-Japanese trade treaty was
abrogated, effective in January, 1940
Hasn't Cut Trade Much.
In itself, however, this only slight
" affected trade relations between
the two countries. Even with the
export license restrictions which be-
came drastic only in the last few
months of 1910, japanese purchases
fell off only S4,O0O,600 last year
from 1899. These amounted to
S227.0OO 1000.
When first established, export
licenses we're required chiefly for
materials in which actual or poten-
tial shortages existed for the de-
f-NSa program, including aluminium,
chromium, molybdenum, rubber, tin,
n chine tools and some chemicals.
The export control also gave legal
force to a moral embargo" first
applied to airplane equipment to
Japan and later to Soviet Russia for
what was described as "unprovoked
bombing of civilian populations.
Aviation gasoline, which also had
kcen subjected to the moral en-
largo" soon was brought under the
licensing system and subsequently
embargoed entirely except for ship
ment to the Western Hemisphere.
Pressure Increases on Japan.
AS diplomatic gesture to facili-
t2.e negotiations for an improve
r. ent in relations. the moral en-
bcrgo" against Russia was lifted
recently but the only effect was to
withdraw the implied moral con-
dennation. The licensing system
sill serves as an effective check
on all exports to Russia.
Trade pressure on Japan through
export control increased after Toxic
signed the tripartite pact with Ger
many and Italy last September.
Iron and steel scrap, which Japan
had purchased almost entirely in
this country, was placed under con-
troll, resulting in a complete stop
page of shipments to Japan, followed
by license restrictions on copper,
zinc, brass and similar products
which were brought in large guam
titles here by the japanese.
Except for aviation gasoline or
petroleum products which can be
converted into aviation fuel, oil
is still available here for Japan,
however.
Restriction on Tools Hurts.
A complete oil embargo. in the
opinion Of some authorities, might
result in a prompt japanese attack
on the Netherlands Indies to obtain
a new source of supply.
Further increasing Japan's diff
ficultieS in obtaining oil in the
United States, however, the Gov
ernment recently established a IL
cense control over metal containers
Of less than five gallons, thus requir-
ing other countries to take the oil
III tankers, of which Japan is short
CT obtain licenses for the containers
Most troublesome to Russia has
been the export restriction on ma
chine tools, one of the chief SUBJ
ieptS 0f discussion in tha i1terr1it-