Homeless Smuggler

Anthony Eden rose last week in the House of Commons to answer a question concerning the attitude of His Majesty's Government on Japanese smuggling into North China:

"The serious consequences to legitimate trade of extensive smuggling of Japanese goods into North China," declared the Foreign Secretary, "have been engaging the attention of the Government for some time and have formed the subject of representations to the Chinese and Japanese Governments. The Government is actively considering what further steps will be taken to safeguard Bntish trade in North China."

Lukewarm are small Japanese exporters on the advantages of the enormously expensive Manchukuoan conquest. Six months ago they suddenly became aware of another adventure of Japanese militar ists for which they had only the wildest enthusiasm. Last November, without the use of a single regiment, Japan's Major General Kenji Doihara set up a pro-Japanese "autonomous government" in eastern Hopei known as the Autonomous Federation for Joint Defense Against Communism. Its head was a twerpish-looking young man known as Yin Ju-keng, whose only flash of independence is a stolid refusal to allow himself to be photo graphed with his two Japanese advisers.

Eastern Hopei lies between the Great Wall of Peiping and the vitally important port of Tientsin. One of the first moves of Puppet Yin was to cut customs duties to 25% of those of the Nationalist Government. Japanese junks landed huge cargoes of silk, rayon, woolen goods, cosmetics and, most of all, sugar at Hopei fishing villages. Trucks and canal boats, most of them flying Japanese flags, smuggled the goods into Peiping and Tientsin, have recently extended the trade to Kiangsu, Anhwei, Honan, Shensi and even Kansu province.

North China customs receipts dropped 40% in the past three months, but inter nationally more important was the fresh Japanese threat to British trade and British loans guaranteed by Chinese customs collections. In Tientsin last week was hulking, hook-nosed Sir Frederick William Leith-Ross, chief economic adviser to the British Government since 1932. Around to Japanese Consul General Shigeru Kawagoe (now Ambassador) he rushed to demand the end of Japanese smuggling into North China. Sucking his teeth politely, Consul General Kawagoe countered with comments on the thriving smuggling trade from British Hongkong to Canton.

Down over his impressive stomach huge Sir Frederick gazed at the little yellow man.

"That has nothing whatever to do with it," snapped the Briton. "Smuggling from Hongkong is almost entirely conducted by Chinese of a low order, while North China's financial and economic status is being upset by Japanese and Koreans."

Impressed with the fact that Britain meant business, Japanese generals in Tientsin huddled with North China offi cials. Then came an announcement: Pup pet Yin Ju-keng's glorious "autonomous government" was about to come to an un timely end, but in order to save face for Mr. Yin, a home must be provided for him. Japan would be satisfied if he were made either mayor of Tientsin or adviser to the Governments of Hopei and Chahar provinces. In addition Japan demanded the right to station troops along all the railroads in Hopei and Chahar. Japan, in other words, would be delighted to abandon smuggling into Tientsin if the chief smuggler were made that city's mayor.

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