12 JULY 1940, Page 2

Japanese Intransigence German propaganda is having considerable effect in Japan,

the policy which it seeks to promote being congenial to the military extremists. The latter are willing enough to believe that the European War presents a rare opportunity which should not be let slip, and that now is the time for staking out Japan's claims to world power. The exploitation of incidents such as that which has occurred at Shanghai, where the Ameri- cans are accused of " mistreatment " of sixteen Japanese gen- darmes arrested last Sunday, is indicative of efforts to stir up feeling against America and Great Britain. So far as Britain is concerned the outstanding question of the moment is the Japanese demand for the closing of the Burma road to China. The British Government's reply to this demand has caused " deep dissatisfaction " to Mr. Arita, the Japanese Foreign Minister, but conversations on the subject are not apparently closed. Japanese statesmen are not unaware of the fact that in spite of Britain's preoccupation with the war she and the United States have economic powers which at present Germany is incapable of exercising, and that to stake all on a German victory would be a very dangerous gamble. Because Britain is under the pressure of war she cannot be counted on to yield to any unreasonable demand that Japan may be disposed to present. Capitulation would make a bad impression both at Washington and at Moscow.