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Japan's “Special Trade” in North China, 1935–37

Published online by Cambridge University Press:  23 March 2011

Burke Inlow
Affiliation:
The Johns Hopkins University
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Extract

When considered in retrospect, one of the most interesting phases of the recent Sino-Japanese conflict was a local condition that arose in North China between the years 1935–37, known to the Japanese as the “special trade” in China.

Following the Mukden incident of September 18, 1931, the Kwangtung Army began its inexorable march to the southward. Within two years Manchuria had been conquered, an independent “Manchukuo” had been proclaimed, and Japanese troops stood at the gates of the Great Wall. The story of Japanese penetration beyond that historic barrier is a fascinating study in diplomacy. For four years, the Island Empire sought by every means short of war to establish its position of paramountcy in North China. Intrigue on a vast scale, involving official proclamations, “spontaneous” autonomy movements, organized smuggling, threats of reprisals, and even direct military action was the order of the day.

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Articles
Copyright
Copyright © The Association for Asian Studies, Inc. 1947

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References

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4 Ibid., p. 496; compare China's Ch. $6.22 with U.S.A.'s Ch. $810; Britain's Ch. $2,630; Japan's Ch. $223.

5 For loans outstanding (principal) in 1935, see ibid., p. 493. For loans secured on customs income, see Royal Institute of International Affairs, Information Department Papers No. 21, China and Japan (New York: Oxford University Press, 1938), p. 99. Cited hereafter as China and japan. It should he noted that “no Japanese loans are directly secured on the Chinese Maritime Customs,” see Parliamentary debates, 5th series, vol. 312, House of Commons (London: H.M. Stationery. Office, 1936), p. 1988. Cited hereafter as PD:HC, S5:312.

6 Shih shih hsin pao, June 30, 1934. Quoted in Royal Institute of International Affairs, Summaries of leading articles in the Chinese press, 3 (August 14, 1934), 7. Cited hereafter as Press summaries.

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8 “Business abroad”, Business week (June 15, 1935), 29.

9 For text, see Chinese yearbook, 1935–36 (Shanghai: Commercial Press, 1937), p. 431.

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22 This act undoubtedly inspired the unrivaled silver smuggling of 1935. However, the new currency proclaimed throughout China in November, 1934 probably had its effect (Mah, op. cit., p. 14).

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25 It should be emphasized that responsibility for the silver smuggling did not rest with the Japanese. The North China herald of December 18, 1935 aptly referred to it as an “international” scandal.

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28 Central news (Shanghai), May 12, 1936. Japan invoked the Tangku Truce to give a spurious legality to the demand. It was, of course, without foundation; see the China yearbook, 1936, p. 140.

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50 Trade of China, 1935, p. 10. See also ibid., p. 11. The Kailan Mining Company was a Sino-British concern operating coal mines near Chinwangtao.

51 Trade of China, 1933, p. 45.

53 Ibid., p. 44. Silver exports had declined from Ch. $256.7 millions in 1934 to Ch. $59.4 millions in 1935 (Ibid., p. 5).

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91 North China daily news, May 5, 1936.

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110 Supra, p. 00.

111 See the statement of Captain Euan Wallace, Secretary of the Overseas Trade Department in PD:HC, S5:313, p. 614. Also China weekly review, 80 (March 13, 1937), 53.

112 This “defense”, however, was never a consistent one and lapsed early. By the spring of 1937, the American Chamber of Commerce in Tientsin could report that “Japan's 'special trade' is not directed against American goods. They want to drive down the Chinese customs tariffs… On the whole, American business has been good during the past year” (China weekly review, 80 [March 13, 1937], 53).

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121 North China herald, June 3, 1936. A similarly worded telegram was dispatched to the British Foreign Office hy R. Calder Marshall, chairman of the British Chamber of Commerce in Shanghai.

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139 Toynbee, , op. cit., 1937, p. 178.Google Scholar For China's answer to the Japanese protest over this incident see also ibid., 1936, p. 913.

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148 Ibid., 1936, p. 50.

149 ibid., p. 51. See also Chen, P. T., op. cit., p. 1Google Scholar, supplement.

150 Trade of China, 1936, p. 51.

151 Ibid., pp. 9 ff. This total loss amounts to approximately Ch. $21,000,000 and does not include miscellaneous items.