Evening star., 1941-08-03
Three>Way Economic Pressure
Can Strangle Japanese Trade
Our Observers Sav All. Out Action by L. S., Britain
and Holland Would Force Toxic to
Succumb Within Year
Br Charles e. Ross.

! terial support we have given China, we
have continued to supply the japanese
with war materials We are now saying,
through the freezing" order and through
the Presidents significant use of the past
tense in his discussion of the appease-
ment policy. that somewhere there is
limit; that we are prepared to apply
economic sanctions, even though they
NAV lead to a shooting war, if Japan
undertakes further aggressionS.
So stands the issue today. Manifestly
it contains the seeds of war. Japan has
banked heavily on the belief that the
United States and Great Britain would
do almost anything to prevent involve
ment in a war in the Pacific. She may
reason that the President is bluffing, and
press on. Then--if the President is not
bluffing-would come an embargo; then
japan would be confronted with the
alternative of knuckling under or fight
ing to take from the British and Dutch
the vital materials which had been de-
MED her.
An all-out embargo would be an ex-
tension of pressures which already have
been applied throughout the last year
and which have been responsible in part
for a marked decline in our exports to
japan. 1t is true that in the first quarter
of this year under the appeasement pol
icv. Japan was permitted to buy more
gasoline in the United States than she
did in the first quarter of last year, and
that her purchases of American lead,
copper and lumber were substantial. but
the over all total of our exports to Japan
for the three month period was only
S32, ,808 900 as compared with $62 ,906 900
for the same period of 1910 The de-
cline was 478 per cent. Partly this was
due to a marked drop in raw cotton
shipments, partly to the effects of the
export control system set up by author
ity of an act of Congress of July, 1910.
Potent Economic Weapon.
This system is another potent weapon
of economic warfare. Through its oper-
alton, shipments of iron and steel semi
manufactures were cut from S9009000
for the first quarter of last year to only
Sl65000 for the corresponding months Of
this year; scrap iron exports alone, from
S4 789 900 to $4,000: exports of power
driven Woodworking machinery. from
year. there was a total absence of ship
ments to Japan of scrap iron and other
iron and steel semi-manufactures, Of
copper, aluminium, carbon black, am
monium sulphate and potassic fertilizer
materials, all of which commodities,
among others, are now subject to export
license
The downward trend of exports to
Japan began near the end of 1910 and
has continued steadily. The latest avail
able total shows SAT ,84S 900 for the first
five months of this year, as compared
with s91 871 900 for the corresponding
1910 period.
Reports received by the Department
of Commerce show that the japanese
economic structure is already under Sc
we're strain. recent statement by the
department. covering 1910 and early 1941.
tells of "a slow deterioration of industry
under the continuous strain of the pro-
tracted struggle in China, the broad eXten-
sion of state control serious shortages of
essential materials and labor and fur
ther decline in industrial efficiency" Lit
tie profit has been derived from the eco
nomic penetration of China Industry
was severely handicapped by coal and
power shortage in 1940 Efforts made
in 1910 to expand coal production were
a failure because of inadequate transpor-
tation and shortages of labor and min
ing equipment. The iron and steel indus
try suffered from the power shortage and
the sharp decline in the volume of scrap
iron imports from the United States.
The cotton-spinning industry showed a
marked recession in 1910 from the rela
lively high level of the previous year.
L. S. Buys s. Per Cent Of Silk.
An important event of 1910 was the
announcement of an official plan for the
reorganization of the nations industries
to bring them into line with the new eco
nomic and political structure of Japan.
The plan. says the Commerce Depart
ments statement, provides for the even
(Cae ROSS papa C-2l