Cut & Slash

Battling desperately to sell Indians cotton cloth, Japanese and Britons gash each other with the sharp trade swords of a steadily falling Japanese yen, a steadily rising Empire tariff. Last week Japan's yen had slumped 50% below par, but Britons had more than retaliated by raising the duty on Japanese and other non-British cotton cloth entering India six times since 1930, the last time by an added 50%.

Most of the raw cotton for Japanese spindles comes from the U. S. But much comes from India.

Meeting over cups of ceremonial tea the Japanese Cotton Spinners' Federation voted unanimously to boycott raw Indian cotton. In vain Japan's rheumy-eyed Finance Minister, withered Viscount Korekiyo Takahashi, protested that "any boycott is to be deprecated." He was called "weak" by an irate Tokyo press. In their bitter reaction against Britain, Japanese last week exuberantly acclaimed and feted the U. S. cruiser Houston, first courtesy call paid by the U. S. Asiatic flagship in Japanese waters in five years.

Said Captain William Baggsley: "We have changed our opinion of Japan. . . ."

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