Evening star., 1941-03-09
Hard Fucts Bose of
British Need
BIZ OUen L. Scott.

alone, underlie this Nations decision to
help the British. On the other hand, a
determination to protect British, Dutch
and American interests in the Far East,
and not the facts and figures of trade,
lies back of the decision to resist further
encroachment by Japan in the Pacific.
Essentially this war is being fought
for control of markets and control OF
sources of raw material supply. Britain
and the United States long have domi-
mated world trade and have exercised
control over the principal raw materials.
That dominance and control are threat
ened by Germany and Japan. If lost,
the repercuSsions on American industry
and American agriculture can be seri-
Gus.
Take the case of Britain: The British
long have been the principal market for
surplus American industrial products
and surplus American cotton, wheat, to-
bacco, pork products, fruit and other
commodities Without the British mar
ket, many American farmers and Amer
lean workers would face difficulty.
Yet Britain, in order to maintain the
industrial activity and the living stand
ard that enables her to buy American
farm and industrial products must be
able to find markets for the goods her
industries produce. More than one-third
of that market has been inside the
Europe that Germany controls and that
Germany will insist upon supplying from
Il,
tinueS. More than that, much OF Brit
aims prosperity has rested upon the fact
that she served as banker and middle
man for Europe, financing and handling
the trade of the British Empire with
Europe The British, in addition, ham
died the shipping.
This whole trade and financial system
now is threatened by Germany The
large British investments on the conti-
nent of Europe and the large British
markets are gone if Germany emerges
as victor.
England stands to lose the real basis
Of her livelihood unless she can regain
her old relationship with Europe. The
British Isles, which have been a very
large market for American and Cana
dian goods, will no longer be the market
they were. Furthermore. Hitler -domi-
mated Europe will not dispace the BIT
ish Isles as a market for this country,
because Hitlers whole emphasis is upon
self-suffCiency, if that is possible and
upon dominating the market in which
he buys if self-suff1ciency is not possible.
II, <1Fr Il oI-o i
vided by the facts and figures of recent
trade.
Europe now is cut of as a market for
American goods. The British are buy
ing immense amounts of American in
dustrial products and are thereby filling
the void created by loss of markets on
the continent. However. the British
hard pressed for dollars-are not buying
their usual quota of American farm
products, with the result that exports of
cotton and wheat and pork products and
fruit have dWindled near to the vanish
ing point. The effect is being cushioned
by Government aids and it may be cush-
ioned farther, once the lend-lease bill is
enacted, by leasing" of agricultural and
industrial products to the British.
But unless the war is won by Britain
and the markets of the British Isles and
of Europe are opened again to American
products on a relatively free basis of ex-
change, there will be serious trouble
ahead for American industry and agri-
culture.
Or, take the case of Japan. The
japanese for many years have bought
in the United States more than one
third of the goods they import. In the
past they have sold in the United States
more than two-ffths of the goods they
export. This trade has been compile
mentary for the most part. with Japan
buying cotton and machinery and oil
and other products and selling silk and
fish and other relatively competitive
products
Now the japanese are moving toward
the Dutch East Indies and the British
Malay states. In that area the United
States buys nearly all of its rubber, much
of its tin most of its spices and vege-
table oils and kapok-in fact, nearly one
able that the japanese, if controlling
these raw materials would be as ready
to sell to the United States as the Brit
ish or Dutch. AS matter of hard fact.
the japanese would have to sell in this
market or face grave economic difficulty.
However the catch is this: If the Brit
ish lose the riches of the Malay area. the
empire is dealt another severe blow
And if the Japanese reach that part of
the world they will have outf1anked the
Philippine Islands and will threaten
Australia This government is unwilling
to accept any of those results without at
least making an effort to prevent them.
The overall situation, thus, adds up
to the following:
If Great Britain is unable to win the
war. the British Empire will crack up
through loss of market for its products
in England and through the inability of
Britain to continue to serve as the mid
dleman and banker and shipper in mar
keting empire products in Europe. Hit
Ter will want to take over that job him.
self in Europe and Japan will want to
succeed to it in the Far East. That will
mean trouble for the United States, too,
inasmuch as this country has found in
England and in Europe the principal
market for its surplus farm and indus
trial products.
On the other hand, if Great Britain