Word: manchukuo
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...exports which suffered most from the souring of world trade ten years ago. In the first quarter of 1940, only two crops showed major export improvement over 1939: soybeans and cotton. Soybeans, still a lusty infant, were up a phenomenal 1,176% at the expense of Manchukuo, went in large quantities to Canada and The Netherlands. Reason for cotton's recovery: Henry Wallace's 1.5? subsidy (TIME, July 31). But this subsidy was not paid after January; hence cotton exports fell from 1,027,000 bales in January to 747,000 bales in February, to 434,000 bales...
First reports of difficulties came from Nomonhan, on the Manchukuo-Outer Mongolian border, scene of severe fighting last summer. Observers told of troop and supply trains being rushed to the old front. Fighting was reported, then denied by Japan...
PARIS--Premier Edouard Daladier, in an exclusive interview with the Osaka Mainichi tonight, revealed that French military preparations envisage a "massive German attack with all forces," this spring, that France and Japan are preparing to open negotiations for French recognition of Manchukuo and that the French government views Russian Bolshevism and German Nazlism as essentially the same thing, comparable to cholera or the plague...
...Goading Manchukuo into war on her side...
...Japanese relations. They thought the Nine-Power Treaty of 1922 was designed to maintain the integrity of China; whereas to the Japanese it was merely "a gangsters' agreement to divide China's spoils." They thought Japan invaded Manchuria in 1931; whereas Japan merely "established Manchukuo" in defense of her own rights. They certainly failed to realize the real reason for the China Incident which began in 1937: Japan's solicitude for a fellow race being plundered by alien powers. But the worst mistake the U. S. made was to think that by penalizing Japan (by abrogating...