11 NOVEMBER 1938, Page 21

Snt,—On Tue3day, October 25th, thz new Japanese Ambassador in London

vowed to do his utmost to "strengthen the great friendship existing between the two island Empires." (The world during the last few years has been liberally supplied with the means of assessing such professions at their worth.) On the very same day, the new Japanese Ambassador to Italy, in an interview in Tokyo, said :

"Britain's predominance in the Far East has now come to an end for ever. The New China is to become a second Manchukuo and German technicians and industries will be given preferential treatment."

When Japan annexed Manchuria many simple-minded people in London professed a belief that foreign trading interests there would not permanently suffer ; the principle of the open door would soon be re-established. But the door, so far from opening, has shut tighter. After seven years of Japanese " administration " Manchuria has been emptied of British and American firms ; trade in competition with the system of interlocking State-controlled trusts estab- lished by the gentle invaders has been rendered wholly imposssible.

According to an article in the Statesman :

"As with Manchuria so with North China ; already a vast chain of Government aided mercantile organisations of totalitarian type have been set up to the grave detriment of established interests. Linked to the vast holding concerns known as the 'North China Development Company' and the Central China Promotion Company' are innumerable subsidiaries handling not only public utility undertakings such as water works, gas works, transport, electric power, telegraphs and telephones, but tobacco, coal, iron and wool. A vast monopolistic organisation for the complete control of shipping in Chinese waters has been created. There is also an oil monopoly comparable to that which so successfully evicted foreign concerns from Manchuria."

South China is now clearly destined to be subjected to precisely similar treatment. Some " experts " contend that, though individual foreign concerns in China must inevitably suffer severely from this process of military and economic invasion, the total volume of trade between Europe or America and the Far East will, we are told, be greatly increased to the general benefit by the rapid modernisation of China under Japanese tutelage which would follow the war. No one outside a madhouse can surely believe all that nonsense. The truth is that Japan's plans are to industrialise China all in her own interest, and to treat China merely as a colossal private reservoir from which to extract every ounce of raw materials and thus enable her completely to dominate the whole of the Far East. Britain, weak enough in Europe and almost defenceless in the Far East, is sure to capitulate.

The outlook for Hong-kong at this moment is extremely

dark. A glance at the map shows that the colony presents a singularly forlorn appearance today. Situated nearly r,soo. miles from Singapore, containing in an area comparable to Middlesex two crowded cities with a total population exceeding a million, it projects into a sea whereon the Japanese navy is supreme, and now owing to last month's swift success of the expedition against Canton, it has been completely severed from the Chinese hinterland on whose trade it depends. Recent Japanese Cabinet changes have imparted to Japanese foreign policy a. specifically anti-British twist. This is seen from the violent comments in the Japanese Press and more substantially by the Government's decision to capture Canton. The military clique now dominant in Tokyo is permeated with the ambition to evict Britain as soon as possible from the China seas and reduce her interests in the Far East to nullity.' It is thus seen that the new Japanese Ambassador in London has received the usual "instructions " to talk to the British people with his tongue in his cheek.

Meanwhile the British and American Governments are busy bombarding Tokyo with silly and futile " chits " containing complaints about " discrimination " against British and American interests in those areas in China now occupied by Japan. At the same time both America and Britain are giving every possible support to Japan to murder the Chinese Republic by shipping to Japan colossal supplies of war material for which she is in desperate need. Is it possible for pig-headed- ness and criminal folly to go further ?—I am, Sir, yours, &c.,