Evening star., 1941-08-03
Japan S Economy
Stepped Up TO Meet
U. 5. Oil Embargo
Aviation Can Dispense
With American Supply,
News Agency Asserts
Ry the Associated Press.

BY the Associated Press.
TOXIC, Aug. 2.-The japanese
government, telling its people that
the international situation has
grown explosive, further stepped up
its already war-geared domestic
economy today to make the nation
economically self sufficient and in
dependent of American supplies.
The authoritative news agency
Domei said japanese aviation could
dispense with the United States
supply Of lubricants, adding that
vegetable oils now have success
fully been processed as aviation Oils
and 90 per cent of used oils are
being reclaimed"
THE American embargo on motor
fuels and aviation oils does not
mention Japan" Domei said, but
it is competently pointed out thai
it is directed against Japan"
Japans minister of commerce ano
industry, Vice Admiral Seizo Sa-
konji, indicated the government
concern in telling japanese news
papers that "the current interna-
tional situation is so tense that a
single spark would be sufficient to
cause an explosion"
Replenishment of Defense.
"The economic situation confront
ing Japan" he said, demands ar
increase in industrial production foi
replenishment of national defense
and to maintain our standard ol
living"
Under the heading "Silker
Coercion" the Japan Times and Ad-
vertiser declared, New York is in
an uproar about silk. This is a
SEQUEL to the United States order
freezing Japanese assets and in
cidentally stopping importation OF
silk from Japan.
"The situation is so serious tna'
American textile firms have ar
ranged conferences with the Gov
ernment in an effort to meet the
crisis. Thousands are likely to be
thrown out of employment.
An icy boomerang has returned to
the hand of Uncle Sam"
Vernacular newspapers have been
handling the Russian-German con-
flict impartially, especially in the
last few days.
One factor which japanese say
is disturbing, however, is how the
United States is to go about deliver
ing promised supplies to Russia.
Gas Restrictions Increased.
There were further instances OF
increased stringency in gasoline and
oil regulations, in Toxic and the
provinces as well. The perfectural
office in Kobe, for instance, banned
the cruising of taxis from 6 pm. to
6 am, effective Immediately. The
private use of taxis and automobiles
is constantly decreasing every
where.
Japan appeared to be pressing
forward with her plans for an
East Asia "co-prosperity sphere"
by turning toward Thailand.
Usually reliable sources in Shang-
hal said Toxic had approached
Thailand tentatively with the OBJ
iect of obtaining greater CO.
operation in this sphere" SINH
lar reports were heard in London
Friday.
(Oficial circles in Bangkok
hinted that reports of Thailand's
recognition of Manchukuo were
correct, and political observers
there believed recognition of the
Nanking regime in China was
imminent. Formal recognition
of these two Japanese puppet
states is an integral part Of
the Japanese "co-prosperity"
scheme)
Concern Over Labor Shortage.
With increasing attention to eco
nomic self-sufficiency in Japan, a
labor shortage caused concern. The
(See JAPAN, Page A-16)