Evening star., 1941-07-30
Japanese al Peiping
Preparing Reprisa|s
Against i. s, Britain
All American and English
Firms Are Restricted to
Two Foreign Quarters
Ey the Associated Press.

ey the Associated Press.
SHANGHAI. July 30-A special
capital and property adjustment
committee" to execute retaliatory
measures against British and Amer
lcan interests was established at
Peiping today.
All American and British COM
panies in North China were pre-
vented from doing business ex-
cept IN the Peiping and Tientsin
foreign quarters. reports said.
The special committee, which will
have the specific duty of super
vlslng business transactions be-
tween Chinese and japanese on the
one hand and foreigners on the
other. includes representatives of
the japanese Army, japanese En-
basSy, japanese Consulate, the Jap
Hnese Finance MiniStryS local agent,
the Asia Development Boards local
liaiSon officer and a representative
OF the Federated Reserve Bank.
Committees to Be Set Up.
Branch committees will be estab-
hshed throughout North China un-
DER the supervision of local japanese
military affairs commissions, it was
said.
Americans and BritOns arriving at
Peiplng by train reported that their
luggage was frozen" by the station
authorities who refused to release il
except on recommendation of the
japanese Embassy.
In Japan itself foreign buSi-
ness was virtually at a stand
still as assets were frozen BY the
government
American and British proper
ties in the whole of Shantung Pro-
vince were said to have been put un-
der protective custody by the jap
anese. Among those reported af-
fected were the Texas and Socony
Oil Cos.
Sentries Patrol Properties.
At some places japanese sentries
rere patrolling the properties. and
at others Chinese pickets employed
by the japanese mounted guard. it
was said
Foreign businessmen anXiouslv
awaited further actions against
them. since, they pointed out. any
moves taken by the Japanese-con-
trolled Marking government could
meet with no United States and
British retaliation. Marking has no
foreign holdings.
The SWatow branch of the Brit
iSh-oWned Hong Kong Shanghai
Bank, the largest in the Orient. was
reported picketed by japanese in
semi mi-military uniforms.
All Chinese and japanese through
out the occupied areas have been
forbidden already to do business
with nationals of the freezing pow
ers except by official permission.
japanese authorities had several
explanations for the latest actions:
In closing the oil companies-and
In Selling stocks in one place-offi-
cials said there were rumors the
owners planned to dynamite the
docks.
In other preventive action. they
said it was necessary to protect
foreigners from the wrath of the
Chinese population aroused by the
freezing of their funds
Dynamite Rumors Denied.
Oil company officials denied the
dynamite rumors as ridiculous.
Lest the japanese move to delay
her Indefinitely, the American
freighter Dona Nata left a cargo
of bristles. feathers. embroidery and
other Chinese products destined for
the United States on the docks and
sailed almost empty from Shanghai
for Manila.
While the japanese retaliated
against American freezing orders,
convoy of Is naval ships arrived
with troops at Saigon for occupa-
ton of bases in Indo-China-cause
of the strain in japanese relations
with Britain and America.
In Bangkok the Thailand govern
ment reaffirmed its intention to con-
tinue strictest neutrality and denied
that any power had put military
or economic pressure upon it.
japanese newspapers had limited
that Thailand might be treated like
Indo-China as Japan moved her
forces southwark. Saigon reported
rumors that Japan already had
asked Thailand, to Join the new
Asiatic order in return for Indo-
Chinese territory