The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1946-03-15
BIZ JAMES R. YOUNG

Cotton will be the first and most
highly controversial economic issue
between the United States and
Japan.
Cotton Is the keystone q indus
trial Japan.
Uncle sam and King Cotton are
headed for an international trade
war with the Emperor OF Japan and
the Japan Cotton Association.
Within a year. through the plan
now agreed upon by the Depart
ment Of Agriculture, the L. S. Com
mercial Company. which Is an RFC
subsidiary. and the State Depart
ment. we shall supply on credit TO
Japan, 200, 900 bales a month, which
is above pre-Pearl Harbor shipment
figures.
The agreement, say the policy
planners, will get Japanese industry
going again. clothe the Japanese
people, and relieve the worlds tex
tile shortages.
Why could we not initiate the
same cooperation with our ally,
China, and export cotton on credit
10 Chinese mills? We could help
clothe the Chinese; we could aid
them in their absorption o. demo
billed troops into factories. Chi
nese mills could help make goods
for the people in liberated areas.
We halt flour and wheat ship
ments to our ally. the Philippine
Commonwealth, then transfer the
goods to Japan. Now we commence
a rebuilding Of Japan's cloth trade
We bypass the Chinese and the
Filipinos 10 aid a country with
which we have not even signed a
peace treaty.
am very suspicious OF the State
Department denials that our cotton
policy is aimed at reNving Japan
ese economic life. The diplomats
say that only part OF the cotton
goods manufactured in Japan will
remain there, the bulk going 10 the
natives of the freed areas OF the
Pacific. Such exports from Japan
are dangerous.
The 2O0.000-bale monthly ship
ment will stimulate trade-hungry
Japanese industrialists to try 20 re-
capture the basic business OF Japan
-cotton-ln the areas which we
fought 20 liberate from japanese
occupation. Now we are going 10
finance the Japs with cotton so
they can do business again with the
very people whom their war
lords prosecuted.
The subtle and immediate pro-
cess OF Japan's manufacturers Will
be 10 provide textiles for their peo-
nile. use ex-soidiers in the factories
and relieve unemployment. Later
the Japanese will attempt long
term record OF profitable expan-
sion that will threaten the sale OF
American textiles.
japanese spinners are not short
sighted. They will work as an or
Ranized group, leaving no chances
for competition, and will play one
American group against another.
This maneuver could mean disas-
trous consequences 10 the Amer
lean textile business.
The cotton advisers to General
Macarthur will be trapped Il they
do not anticipate that special cred
Il accommodation to reconstruct
Japan's textile industries are shap-
ing Japan's first weapon In an IN
ternational trade conflict.
Years ago the Japanese cotton
industry merged 70 companies. one
giant corporation imported the cot
ton and directed the product
through spinning. weaving, dyeing,.
printing, packaging. selling and
shipping. Thus their prices IN
world market were quickly adjust
ed 10 competitive situations.
This monopoly, which In the
future can weaken and possibly de-
stroy outlets In the Philippines,
China and Malaga for American
and British textiles, overcame tar
IF problems, economic embargoes'
quota threats, currency and ex-
change restrictions. The Japs could
buy a bale OF cotton in Dallas, Tex
ship It by rail to Galveston, Tex"
and from there get the bale to
Japan more cheaply than q New
England manufacturer could ship
the same bale in an American YES