Evening star., 1941-07-26
Toxic RetoHates

TOXIC. July 26 LP,.-Japan today
froze the funds of the United states,
acting in swift retaliation for SINH
lar United States action against
japanese assets.
At the same time the government
announced that British freezing
order would result in similar action
by Toxic.
These we're the rapid develop
ments growing out of completion OF
an agreement, officially announced,
for the Joint defense" of Indo-
China by Japan and France,
The japanese freezing order,
effective Monday. applies to all
financial transactions of United
States nationals, and applies to the
Philippines and United States terri
torial possessions.
Despite the ouickness with which
the japanese acted in retaliation,
financial circles in Japan evidently
were taken somewhat by surprise
by the extent of United States and
British moves growing out OF 1ndo-
China developments.
A selling wave swept the TOXIC
Stock Exchange and raw silk mar
kets Shares of Toxic Stock Ex-
change, lately a bell wether OF Japs =
nese shares, slumped to a 1O-year
low when it dropped to "a yen 80
sen, off yen so sen.
Disposition Controlled.
The freezing order said United
States nationals receiving more than
500 ven a month tabout Sll5) must
receive permission of the Finance
Ministry Also the disposition OF
personal. real and other properties,
Including securities. and the lending
and borrowing of funds and prop
critics. was placed under Finance
Ministry control.
- The order placed the United States
AND Japan in Identical positions
with reference to control OF the
foreign assets. The governments
NAV now control these funds within
their reach at will, but the extent
to which the authority Will be eXer-
eised remains to be seen.
There was no indication in Toxic
Of the extent of the application OF
President Roosevelt's order, and
some trade circles in Toxic seemed
10 think a limited sort OF trace
would be possible.
The newspaper Chugai said, how
ever. that the scope of the freezing
of assets by the United States may
be tremendous. since it affects Jap
anese trade in the United States,
Central and South America, Britain
and their spheres of influence
Japan must prepare to meet the
United States move by establishing
self -sufficiency in East Asia"
U. S. Seen Hit Hardest.
Yomiuri quoted a japanese in
tustrial leader as saying the freezing
orders may work greater hardship
on the United States because the
United States has more assets IN
Japan than Japan has IN the united
States.
Such large concerns as the Mltsui
and Mitsubishi interests are known,
however. to have very great assets
In the United States.
United States Ambassador Joseph
Grew remained close to the Embassy
to keep in touch with the situation.
He had conferred with Foreign
Minister Teijiro Toyoda three times
In the last "a hours.
He also conferred with Sir Robert
Leslie Craigie, British Ambassador
and Sir John Latham, the Austral-
ian Minister.
In an oral statement to the press,
Finance Minister Masatue Ogura
said japanese assets frozen In the
United States were not large.
Moreover, trade between the
United States has diminished stead
fly in recent months due to inten-
sification of American restrictive
measures. Therefore, the effect OF
(See TOXIC, Page A-3)