Evening star., 1941-07-28
Dutch Suspend Japanese Oil Pact;
Reds Attacking at Several Points;
Roosevelt Scans Far East Reaction
All Indies Trade
With Nippon Put
On Permit Bosis
ry the Associated Press.

ey the Associated Press.
BATAVIA, Netherlands Indies,
July 28.-The agreement of last
year whereby Japan was to
receive 100000 tons of oil an
nually from the Netherlands
Indies has been suspended by
the Dutch and all monetary and
commercial dealings with Japan
have been placed on special
permit basis.
The extent of the economic meas
ures was outlined early today at a
session of the Peoples Council of
this Dutch colony by H. J. van Nook.
director of economic affairs, who
has been the chief economic nego-
tlator with the japanese.
Exchange Transactions stopped.
He said all exports to Japan,
Manchukuo, China and Indo-China
henceforth are subject to special
permit. all foreign exchange trans
tctions between the East Indies
and Japan discontinued for the
time being and japanese accounts
in the Indies frozen.
"As a result of these measures
monetary and goods traffic with
Japan has been frozen-that is,
been made entirely dependent on
special permits" he said.
Japans prospective intake of oil
from the largely American and
British-owned properties here had
been stepped up from 494 900 tons a
year to the 100000 figure by an
agreement announced last Novem-
Der 13
Financial Accord Suspended.
1t was worked out among Dutch
colonial officials, the oil companies,
Ichiro Kobayashi. representing the
Toxic government. and Tadaharu
Mukai. chairman of the vast Mltsui
interests of Japan,
The Dutch action also suspended
a recent agreement whereby the
japanese yen was linked to the
Dutch guilder through the medium
of the Java Netherlands Indies Bank
and the Yokohama Specie Bank.
BY the Dutch action. foreign eX-
change traffic has been discontinued,
except on a special permit basis,
between the colony and Japan, oc-
cupied China and French Indo-
China. Banks here were prohibited
from debiting or crediting the ac-
counts of Japanese subjects.
Barter to Be Examined.
Van NOOK said the measures were
not intended to hinder the internal
activity of japanese enterprises,
however, and that this purpose
would be taken into account in
the issuing of necessary permits.
In due course" he added, the
question of arranging barter in
goods with Japan would be exam
tned, but Japan's latest action in
Indo-China would have to be taken
into account.
He described the Dutch action as
IAN appropriate conference.-the"
to Japans export regulations of
July 7 which were directed against
the British Empire and the Neither
lands Indies"
AS a result, he said, japanese
exports to the East Indies had prac-
tically come to a StandStill
japanese Goods Pile Up.
Despite extreme doubt whether
the Japanese government would
grant export licenses. he said, Jap
anese goods we're continuing to pile
up on japanese docks and were be-
ing paid for by the Dutch as re-
ceived at the warehouses under the
trade agreement in force since
February.
1t was, therefore. necessary to stop
yen payments in order to prevent
heavy losses to the Dutch, he said
and because settlements in United
States dollars no longer were pos
sible by freezing actions.
Japanese exports to the East In
dies have consisted principally of
textiles This trade amounted in
the first four months of the year to
29,6O000 guilders. The Java guilder
is nominally quoted at about SO
cents. Netherlands East Indies eX-
ports to Japan in the same period
were 15,90000O guilders.
Today's action caught no japanese
ships in Indies waters, put several
ships which we're expected changed
their plans.
Some observers have held that a
sharp need of oil would send Japan
against the Netherlands Indies to
take it by force if necessary. Japan
must import all but II per cent of
her petroleum and its byproducts.
(See INDIES, Page A-3D