Evening star., 1941-07-28
Qualified Blockade

HuOliiiCN OIO(NOOS
In theory, President Roosevelt's
sudden economic thrust at ia
pan last Friday evening was COM
plete. BY freezing Japanese assets
in the United States and its posses
sions, including the Philippine Com
monwealth, commercial and f1nan-
cial transactions between us and
Japan depend entirely upon execu-
tive discretion. Henceforth Japan
cannot liquidate any of her Ameri-
can assets without first obtaining a
license from the Treasury permitting
her to do so. For instance, Japans
enormous purchases of American oil
can be cut to zero simply by refusing
to issue single license for the con-
version of assets into cash when the
purpose is to buy oil. And the same
thing can be done for any other
commodity.
| japanese exports to this country
are similarly affected, because the
island empires silk and other prod
ucts will no longer be landed here if
new assets obtained by their sale
are Immediately frozen. The same
applies to shipments of japanese
gold, so extensively employed during
recent years to cover extraordinary
purchases of oil, scrap, lumber and
other American products largely
destined to build up reserves in ia
pan for expected emergencies.
However, the extent to which our
Government intends to exercise its
powers against Japan is not yet dis
closed. Washington seems to be
watchfully waiting to see what Japan
is going to do before fixing definite
regulations. The fact that Toxic has
responded by similarly freezing
American assets in Japan is imma-
| terial. That gesture was foreSeen as
inevitable. The important point is
how far Toxic will translate the ges-
ture into action.
Toxic clearly diSlikes what has
happened and wishes the unpleasant
consequences could somehow be
averted This is evident in the
mixed reaction of both Japanese
| press and official comment. Along
! side expressions of bitterness and
| self-confidence there appear regrets
that we do not understand" Japans
position and the hope that the diff
Guilty can be adjusted.
These contrasting emotions are
we'll illustrated by two statements
made Saturday by Masatsune Ogura,
japanese Finance Minister and rep
resentative of big business in the
| Konoye cabinet. The first of these
was an obvious pep talk addressed to
the Japanese people, assuring them
of the elf-sufficiency of resources in
Japan'S ''co-proSperity sphere" in
Eastern Asia. But later that same
day Mr.. Ogura stated that his gov
ernment'S freezing of American as
sets would be administered in the
same spirit displayed by Washington.
| The inference is that Toxic will go
easy if we do the same.
Such tentative olive branches held
out by TOXIC should not distract
Americans from the real issue. The
| Presidents aSset-freezing order was
issued in response to Japan's brazen
aggression in French Indo-China,
which our Government has declared
| to be a menace to our vital interests
and the prelude to still other aggres-
SiOnS of an even more dangerous
character. Possession of Indo-C China
does ease Japan's shortages of rice,
tin, coal and a few other cOmmod-
tiles. But it does not meet the en-
pire's vital requirements for oil, iron
and many other necessities. America,
in conjunction with Britain and the
Netherlands, can keep those necessi-
| ties from Japan and throttle most of
its foreign trade by economic weap-
ons, without resorting to armed force.
We must face the risk that, in the
process, desperate Japan may take
up arms. But there should be no
| backdown from the stand just as
sumed. Japan must be halted and
made to realize that its aggressive
| program will not be tolerated.
|