693.001/464
Statement by the Japanese Minister for Foreign Affairs (Arita) on December 19, 193836
As has been made clear by the statement of November 3rd made by the Japanese Government,37 what Japan desires is the establishment of a new order which will ensure the permanent stability of East Asia; or in other words, the establishment of a relationship of mutual helpfulness and co-ordination between Japan, Manchoukuo and China in political, economic and cultural fields.
That the formation of a closely co-operative relationship between the three countries is an imperious necessity is explained by the fact that it is, in its political aspect, a measure of self-defence against the Communist menace and of safeguarding the civilization and culture of the Orient, and in its economic aspect, a measure of self-preservation in presence of the world-wide tendency to erect high Customs barriers and to employ economic measures for political ends.
It is not only of benefit to the Chinese people themselves but to the whole of East Asia, to lift China from its present semi-colonial status to the position of a modern State. The establishment of the new order, that is, of a relationship of mutual aid and co-ordination between Japan, Manchoukuo and China, simply signifies the creation of solidarity between these three countries for the common purpose [Page 817] of preserving the integrity of East Asia, while enabling each nation to maintain its independence and fully to develope its individuality.
It is the firm conviction of Japan that the establishment of such a new order will be perfectly in consonance with international justice and will contribute toward the peace and tranquillity of East Asia, and it is her inflexible resolution to carry out her policy in this regard.
Leaving for a later occasion the political and cultural phases of the proposed tripartite relationship, I wish today to offer a few remarks on its economic aspect.
The new order envisages a certain degree of economic cohesion and coordination between Japan, Manchoukuo and China, and the formation of a single economic unit in presence of the similar units which already exist elsewhere and which are both powerful and selfsufficing. Although the term “bloc economy” is frequently applied to such an arrangement, the proposed unit in East Asia is by no means to be a system of closed trade. If by “bloc economy” is meant the exclusion of all interests other than those of the parties directly concerned, the employment of the term is wholly improper in the present case.
At the moment, not a few observers seem inclined to feel as though Japan, by the inauguration of the so-called “Japan-Manchoukuo-China Economic Bloc” were aiming at the exclusion from East Asia of all enterprises, capital investments, trade and other economic activities on the part of foreigners. It is quite regrettable that some such idea is to be seen reflected in the comments of various newspapers and magazines published in Europe and America. Japan has long stoutly upheld before all the world the principle of equality of commercial opportunity—though as a matter of fact, that principle has received scant regard elsewhere, and Japanese products of good quality and moderate price have everywhere been subjected to discriminatory treatment. Japan, nevertheless, still believes that the way to bring about the prosperity of each and every nation is to give effect to the principle of equality of commercial opportunity, and she upholds the freedom of economic activity in all parts of the world as a matter of principle. It is far from Japan’s thought to aim at excluding European and American economic activities from East Asia.
However, it is most natural and proper that the two neighbour nations closely bound together by the ties of race and culture—Japan, poor in natural resources and without a large domestic market, and China, still economically weak—should work together in order to ensure their independence as regards vital supplies as well as their markets in times of emergency. Within those limits it must be admitted that the economic activities of the countries which lie [Page 818] outside the limits of East Asia would have to be regulated. In other words, it is imperative that the economic activities of other Powers should be subject to certain restrictions dictated by the requirements of the national defence and economic security of the countries grouped under the new order, and that no political privileges should be attached to those activities. The necessity of such restrictions is recognized by “all modern states,” including, I am sure, the British Empire and the United States. But even if these restrictions are put in force, there will remain vast fields of commercial and economic activity open to the people of other Powers.
The formation and existence of an economic co-partnership of nations, such as is contemplated for Japan, Manchoukuo and China, would by no means entail any diminution of the trade between that group and other countries. In this connection I might add a few words regarding Manchoukuo. To say that the new state has been closed to Powers other than Japan is a gross mis-statement. Statistics show plainly the progressive increase that has characterized the foreign trade of Manchoukuo during the past few years. The total value of the foreign trade of that country, which was 1,060,000,000 yuan in 1930, the year before her independence, leaped to 1,530,000,000 yuan in 1937. As for the imports from other countries during the same period, they witnessed an increase of 35.3% for Great Britain, 98.9% for the United States, and 332.2% for France. Especially conspicuous was the increase in the importation of machinery, tools, vehicles, hardware and timber, the demand for which is expected to expand further, with the progress of the work of economic construction in Manchoukuo. We should also take into consideration the imports from Western countries via Japan, though these are not indicated in the statistics. Again, we should take note of the trade of Manchoukuo with the British and French colonies, which is fast developing with the years.
In brief, the proposed new order for East Asia, when established, will not only bring permanent stability to this part of the globe but will also serve, I am firmly convinced, to put the economic activities of Occidental Powers in East Asia upon a far more solid foundation than at present.