Editorial Page Features

Civics 7\

TEN PAGES. WASHINGTON, D. C., FEBRUARY 8, 1942.

Japan Mapped World Conquest In Tanaka Memorial of 1927

Democracies Scoffed at Forecast, as They Did at Hitler’s Mein Kampf, but Part of Project

Already Is Fulfilled. By Marquis W. Childs.

Japan has Its own Mein Kampf, a

document drawn up nearly 15 years ago laying out the line of conquest leading to overlordship of the world for Japan’s Emperor.

This is the Tanaka Memorial, a mem-

orandum prepared by Baron Tanaka for Emperor Hirohito following a con-

ference at Mukden. In Manchuria, of Japanese militarists and industrial leaders. At the conference practical steps for a plan of conquest were agreed upon. As with Hitler's sinister auto-

biography, peace-loving peoples ignored the import of the Tanaka Memorial.

Americans. British and many Chinese preferred not to believe that the Jap- anese meant what they said, just as

Hitler's fantastic plans were put down as the ravings of an ego-maniac. The Japanese denied the authenticity of the document, which was made public sev-

eral months after the conference at Mukden through Chinese sources. But scholars believe it Is authentic. The Tanaka Memorial has just been re-

issued by Harper & Brothers in a spe- cial edition with an introduction by Carl Crow, a former Missourian and a long- time resident of the Orient.

“There is no doubt,” says Mr. Crow on

the question of authenticity, “that the conference was held in Manchuria at the time stated and that its purpose was to draw up a program of policy for Japan to follow in China, especially In Manchuria and Mongolia. It would have been a most extraordinary thing for a con-

ference of that sort to be held without embodying the results in a report of some sort, and, as he was the Premier of the country, it was the duty of Baron Tanaka to present this report to the

Emperor. The fact that the conference was participated in by such a large number of officials, many of whom had Chinese servants and clerks, made the task of espionage comparatively easy and It Is not at all improbable that a

copy of the report fell Into Chinese hands.”

Already Fulfilled in Part.

A large part of the memorial deals with the steps to be taken for the economic conquest of Manchuria and Mongolia. As Mr. Crow points out, the

Japanese have since that time followed more or less closely the pattern that

Baron Tanaka laid down, which is an-

other indication of the document's au-

thenticity. While most of the secret memorial is

takea up with plans for Manchuria and Mongolia, it states specifically that war between the United States and Japan is Inevitable. Necessary first, Tanaka point* out, is a policy of “Blood and Iron” in Manchuria and Eastern Asia.

"But bi carrying out this policy,” the Premier wrote to his Emperor, “we have to face the United States, which has been turned against us by China’s policy of fighting poison with poison. In the future if we want to control China, we

must first crush the United States just as in the past we had to fight in the Russo-Japanese War. But. in order to

conquer China, we must first conquer Manchuria and Mongolia.

“In order to conquer the world we must first conquer China. If we succeed in

conquering China the rest of the Asiatic countries and the South Sea countries will fear us and surrender to us. Then the world will realize that Eastern Asia Is ours and will not dare to violate our

rights. This is the plan left to us by Emperor Meiji (the Emperor who brought Japan out of Its isolation in a

reign lasting from 1868 to 1912), the success of which is essential to our na-

tional existence.” Raw Materials First Goal.

The memorial described the economic and military infiltration of Manchuria which should proceed actual attack on

this province of China. The objective was to build a far-flung raw materials base in Mongolia and Manchuria and "under the pretense of trade and com- merce penetrate the rest of China.”

At the time of the conference in 1927, the South Manchuria Railway had been

developed to a high degree as a force for

economic penetration. The railway com-

pany controlled many related trade ac-

tivities. But Baron Tanaka complained that a different type of management

was necessary If the railway company was to fulfill its politico-military mission.

Moreover, he told his Emperor in the document, it was essential to build rail-

way lines penetrating ihto North Man- churia to tap the great iron, coal and shale oil reserves to be found there. Manchuria and Mongolia must be made the Belgium of the Par East, the me-

morial states, with Japan’s wars fought out there rather than in Japan proper. Railways to be built in Manchuria, he

pointed out, would open up fabulously rich resources.

“We shall save the expense of $60,000,- 000 which we pay for the importation of steel every year,” the report said. “When we can have sufficient iron and steel

for our own industries, we shall have

acquired the secret for becoming the

leading nation in the world. Thus

strengthened, we can conquer both the

East and the West. In order to attain this goal, the iron works must be sepa- rated from the South Manchuria Rail- way. Such unified control will keep- China from preventing us to become self-sufficient in iron and steel.”

May Have Big Steel Reeervea.

A reference to a "secret” survey raises

the question whether Japan may not have large secret resources of steel, tar

beyond what she has been generally assumed to have. Most authorities have said that the Japanese could not endure

a long war because of their limited steel

capacity. During the past three or four

years the United States has exported to

Japan $100,000,000 worth of pig lion, steel and iron scrap, steel Ingots and

steel and iron plates. But this may have been to create a reserve In addition to

Japan's own secret steel resources. Or it may have been, In part at least, a blind to conceal hidden resources in Man- churia and Mongolia.

A large number of Chinese had settled In Manchuria by 1927 and the author of the Tanaka Memorial recommended va-

rious plans for their ruin. Japanese were

to destroy them by lower prices made

possible through a government subsidy. The Chinese silver currency was to be

debauched through currency manipula- tion schemes worked undercover by the

Japs, Last, and most important, numerous

secret agents were to be sent into the region to prepare the way for Japanese

I conquest. It was specifically proposed j that 1,000.000 yen (about $500,000) be ap-

propriated from.the "secret funds’* of the army to aend 400 retired army officers into Manchuria disguised as teachers and Chinese citizens in order to lay the "foundation” for Japanese "national in- terest* for the next hundred yean.”

They tin also to penetrate Mongolia in Chinese disguise, dressed as farmers, herdsmen or dealers In wool. The me-

mgylal pointed out that 19 retired Jap- anese officers were already living in the house of the reigning Mongolian prince and "the daughter of Gen. Fukushi- ma, Governor of Kwantung, risked her life among the barbarous Mongolian people” in order to become chief ad- viser to the prince.

Slaying Touched Off Conquest. In this connection the incident that

led to the Japanese conquest of Man- churia lakes on a special significance. The invasion was touched off when Chinese soldiers killed a Capt. Nakamura of the Japanese Army, who was travel-

ing in Manchuria under a passport as a

school teacher. Large sums of money were found on his person. ITiree associ- ates were killed with him. This occurred on July 28, 1931. A year later the Japs were in complete control of Manchuria, having finished the military job that was laid on the economic-political base.

On July 7, 1937, just 10 years after the end of the Manchuria conference out of which the Tanaka Memorial is

i supposed to have come, the illegal ma-

neuvers at Lukouchiao, near Peking, precipitated the clash which led to

Japan's undeclared war on China. The same Manchurian militarists who had attended the conference, says Mr. Crow, ■were in command in North China when

the crisis developed into & series of major offensives against the Chinese. That war is still going on, with the Japs

(See CHILDS, Page B-3.)

Wartime dust bowl.

Planning Post-War Economy Maintenance of Income Held Essential

By Raymond P. Brandt.

\ MERICANS who are fearful or hope- ful of what may happen after the war

will And a speculative blueprint of the

next few years in a 20-page pamphlet issued recently by the National Re-

sources Planning Board, one of Presi-

dent Roosevelt's faiorite governmental organizations. It is titled "After the War—Pull Employment" and was writ- ten by Dr. Alvin H. Hansen, llttauer professor of political science at Harvard University and a special economic ad-

ment and a $100,000,000,000 national In- come at 1940 prices. With rising prices, it probably will go beyond that figure. But on the dark side he reports:

"When the war is over, the Govern- ment cannot Just disband the Army, close down munitions factories, stop building ships and remove all economic controls. We want an orderly program

of demobilization and reconstruction. The Government cannot escape the re-

sponsibility. TO fulfill Its responsibility it needs the hearty co-operation of bust-

* DR. ALVIN H. HANSEN, Member of the Harvard University faculty and special economic adviser to the Board of Governors of

the Federal Reserve System. —Harris-Ewing Photo.

viser to the Board of Governors of the Federal Reserve System.

On the one hand, it describes, in lucid, straightforward English, the program the

great majority of New Dealers would follow if in power when hostilities cease; on the other, it predicts what will hap- pen if the Government does not con-

tinue its control of industry and finance by taxing and spending.

Dr. Hansen bases his post-war eco-

nomic structure on three major premises. The first is psychological:

“We have to make up our mind as

a Nation that we will not permit a post- war depression to overwhelm us."

Depends on Co-operation. The second relates to resources, physi-

cal and mental: "We shall have, when the war is

over, the technical equipment, the

trained and efficient labor and the nat- ural resources required to produce a

substantially higher real income for civilian needs than ever achieved before

In our history.. Whether c$3 not w#

shall. In fact, achieve that level will

depend upon our intelligence and ca-

pacity for co-operative action." The third outlines Dr. Hansen’s con-

ceptions of the functions of private en-

terprise end of Ooreminent: “Private business can and will do the

job of production. It is the responsibility of Government to do its part to insure a sustained demand. Private Industry and Government together must act to

maintain and increase output and in- !

come sufficiently to provide substantially full employment."

The ^keystone of Dr. Hansen's struc-

ture is “full employment,” which he

would guarantee, as far as possible, by taxes and the expansion and contraction of the governmental debt. In theory, this was the New Deal program from 1933

on; in practice, taxes and the debts ex-

panded, but did not contract. Dr. Han-

sen does not dodge the probability of ever-increasing debt. He retorts that idleness Is a greater menace than debt. Of taxes and the public debt he says:

“Under a program of full employment, new enterprises would grow up; old en-

terprises would expand. Youth would find opportunity and employment.

“The notion that we cannot flnanoe our

own production is quite without founda- tion. Every cent expended, private and

public, becomes income for members of our own society. Costs and incomes are

Just opposite sides of the same shield. We can afford as high a standard of living as we are able to produce. We cannot afford to waste our resources of men and material. We cannot afford to

use them inefficiently. But we cannot afford Idleness. The idleness of the dec- ade of the ’30s was responsible for the loss of $200,000,000,000 of Income.

Payments to Ourselves. "The public expenditures required to

rebuild America, to provide needed social services and to maintain full employ- ment can be provided for out of the enormous income which the full utiliza- tion of our rich productive resources

(material and human) makes possible. The costs of producing this Income are

merely payments to ourselves for the work done.

“There is not—there cannot be—any financing problem which is not manage- able under a full employment income. From a $100,000,000,000 Income we can

raise large tax revenues—large enough to service any level of debt likely to be

reached and to cover all other Govern- ment outlays—and still retain for private expenditures more than we had left in former years under a $70,000,000,000 in- come with lower taxes.

"Everywhere it is said and constantly reiterated that we must tighten our belts and pay off our Government debt when

peace returns. When is it desirable to

pay off part of a debt? Certainly not when there is danger of an impending depression. Under certain'conditions it would be desirable to do so. Under other conditions is would be quite unsound

policy to retire the debt. "A public debt internally held has none

of the essential earmarks of the private debt of an individual. A public debt is an instrument of public policy. It is a means to control the magnitude of the national Income and in conjunction with the tax structure, to affect Income dis- tribution.”

Most post-war plans are inadequate because too nebulous and long-ranged. Or. Hansen starts with the present and carries his spedfle program only to 1990. For the war period, he Indorsee the ad-

ministration program which he breaks dcwn as follows:

(1) High corporate-income and excess-

profits taxes.

(2) Sharply progressive estate taxes. (3) Broadening of Individual income

tax base together with steeply graduated surtax rates.

(4) Sharp Increase in excise taxes on

commodities competing with the war

program. (5) Part payment of wages and sala-

ries in Defense bonds. (6) Qualitative shift in the compo-

nents of consumption. The last named point refers to such

changes as the use of wood and concrete j in place of steel and copper, and cotton ! in place of wool. Something like item i No. 5 may be enacted through a with- holding tax if the item itself is not

adopted. Proposed Tax Plan.

For the post-war period, Dr. Hansen advocates these policies:

(1) Retention of progressiva (gradu- ated) tax structure and broadened tax

base, with major emphasis on the In- dividual Income tax and less reliance on

the corporate Income tax.

(3) Sharp reduction In defense con-

sumption taxes. (3) Adequate plans by private enter-

prise for private-investment projects in manufacturing plant and equipment. In railroads, public utilities and housing.

(4) Adequate program of public-im- provement projects including a Nation- wide development of national resources,

express highways, urban redevelopment (involving, among other things, outlays In terminal facilities and reorganization of urban transportation), and a reorga- nized public housing program (includ- ing the setting up of a housing research laboratory designed to reduce construc- tion costs and thus enlarge the scope of private housing construction).

(5) Expansion of public-welfare ex-

penditures—Federal aid to education, public health, old-age pensions and family allowances. This Involve# partly an expanded program, and partly a

means of reducing State and local prop- erty and consumption taxes, thereby stimulating private consumption expen- ditures.

(6) International collaboration to pur- sue internal policies designed to pro- mote active employment; to explore de- velopmental projects In backward coun- tries. and to implement ways and means to open outlets for foreign investment, promote W’orld trade and the effeotive world-wide use of productive resources.

Dr. Hansen’s proposals contain nothing novel or unorthodox. Many of his sug- gestions agree with the conclusions of the Brookings Institution’s studies of America s capacity to produce and con-

sume. As Dr. Hansen and the institu- tion see the American industrial ma- chine, it runs on four or six of its eight cylinders except for short spurts during boom times.

Problem of Unemployment. The problem, solved only In part by

the New Deal until the war emergency, is to find employment for all able and willing to work. The 1940 average of employment was 47,000,000 persons. Dr. Hansen estimates that in 1943 or 1944 the number available for industrial and military employment will be 12,000,000 to 16,000,000 In excess of this figure. According to semi-official predictions, 10,000,000 men will be in the armed forces by 1944, other millions will be in defense industries.

"This labor potential,’* Dr. Hansen grimly observes, “cannot suddenly be put to work in Industry. Experience, both in the United States and Germany —the countries that experienced the most rapid expansion from the great depression—shows that the task of re-

training and fitting large masses of labor into the productive process is a

slow and difficult one.

“Even in a totalitarian country, with its powers of regimentation and control, it was not possible to increase employ- ment except at a fairly moderate rate. In no single year, in the expansion from 1933 to 1939, was Germany, even with its compulsory labor regulations, able to absorb more than 1,800,000 workers. With a population half the size of ours, this would mean, in terms of our popu- lation, 3,600,000.”

Dr. Hansen calculates that the war

program will soon create a full employ-

ness, labor, farmers and the professions in the great task of developing a vigorous, expanding and prosperous society.”

The first task, he asserts, is to retain this $100,000,000,000 after the war.

"We must be vigilant,” he writes, “lest this gain slip from our grasp. If we let the income slide from 100 to 90, 80, 70 billion dollars, we will have to make the old uphill fight all over again. We must deliberately set out to hold the new

income level and to push it higher as

rapidly as increasing productivity will permit.”

Expansion Program. How can this level be maintained and

who will pay the costs? "Almost every one would benefit," Dr.

Hansen says, "bv a positive governmental expansionist program looking toward full employment.

"There is plenty of work to do,” he

points out. "We need improved manu-

facturing equipment to produce more

and better goods at lower prices. We

need to carry an extensive npperch in

laboratories of our great corporations, in our universities, and in Government bu- reaus to create new products and develop new processes. We need to rehabilitate and modernize our transportation system —by land, water and air. ^

“We need continued advance In the techniques of production, distribution and transportation: in short, in all those elements that enter into a higher stand- ard of living. We need to rebuild Amer- ica-urban redevelopment projects, rural rehabilitation, low-cost housing, express highways, terminal facilities, electrifica- tion. flood control, reforestation. Many public developmental projects-open fresh outlets for private investment.

"We need a public health program, in-

cluding expansion of hospital facilities. We need a nutrition program. We need

more adequate provision for old age. We need higher educational standards in large sections of our country. We need a program to improve and extend our

cultural and recreational facilities. We need an enrichment of the material and spiritual resources of our American way of life.

“We have seen how it is possible to mobilize the productive capacities of the country for war. We can also mobilize them for peace.”

Would Improve Business.

Private business and finance. Dr. Han-

sen asserts, would Improve rather than suffer under such an expanlonist pro- gram. According to his figures, corpo- rate net income between 1925 and 1940— which included the boom and depression

years—averaged only 4.6 per cent of the national income.

At no time during that period did the national income reach $100,000,000,- 000, so if corporate profits were 4.6 per cent of this income—Dr. Hansen says they would be higher—the absolute profits would be larger than the prior averages. If a few industries insisted on exorbitant profits, he explains, de- mands for wage increases and price de- creases would be encountered.

“Wage increases and price reductions," he writes, “are likely to cut across all firms in an industry, whether they make profits or not; and wage increases are

likely to spread even to industries which are not making abnormally large profits. Thus, the process of encroachment upon boom-time profits, if carried too far, may disrupt the appropriate balance in the

cost-price system.” At no point in his pamphlet does Dr.

Hansen set the maximum limit of the Federal Government debt, which is likely to reach $100,000,000,000. His formula is predicated on a “balance” between, the public debt and the national economy.

President Roosevelt has repeatedly em- phasized that he is building up a “reser- voir" of public works and social security plans to be acted upon after the war.

The National Resources Planning Board, which issued Dr. Hansen's pam- phlet is the agency thrpugh which the President is studying these possible post- war projects. Before the final p-inting of the pamphlet, a pre-print edition was

sent to member banks of the Federal Reserve system and to a group of busi- nessmen, economists and labor leaders for criticisms and suggestions. Dr. Han- sen, the pamphlet says, made numerous revisions in the text as a result of these comments. Because of Dr. Hansen’s

scholarship and connections, his propo- sals can be considered official so far as

study and debate are concerned.

United States and Brazil Hold Key to Hemisphere Defense

Close Ties Between American Giants Have Already Paid Joint Dividends in Solidifying

Latin Nations By John Lear,

Wld* World New*.

The two first Americas to free them-^ selves from Old World domination stand side by side today, twin colossi guarding tiie doors to that freedom in the South Atlantic.

One of these twin giants is the United States of America.

The other Is the United States of Brazil.

The co-operation of the two is the key to defense of the New World, be- cause it Is in Brazil that the land of the Western Hemisphere reaches closest to the land of the other half of the

globe. It Is Natal which faces the threat lurking across the Atlantic in Vichy- held Dakar, on thie African coast. It is In the Caribbean Sea, between Brazil and the United States, that the first wave of any attack on the Panama Canal must be turned back.

The vital door—to slam shut or open wide—has been going into place between4 these two American pillars, plank by plank, since Adolf Hitler first loosed his armies on his little neighbors. It was nailed shut at the conference of Ameri- can foreign ministers in Rio de Janeiro.

Brazil has broken all relations—diplo- matic, commercial and financial—with the Axis powers in spite of personal threats of revenge from Hitler, in spite of 4.500.000 Axis nationals and descend- ants within its borders and in spite of rumored Nazi preparations at Dakar for some sort of military offensive.

Producing War Materials.

A spearhead of air bases has been shaped around the jungled hump of Brazil pointing toward Africa. The sec- ond biggest navy in South America is being expanded by Brazilian shipyards in the harbor of Rio de Janeiro. War materials, so prodigally diverse that the phrase "God is a Brazilian” has become a legend, -are being carried exclusively to the United States, largely in Brazilian boats—the second biggest merchant fleet In the hemisphere. Brazilian factories are making warplanes and munitions. Brazilian workers are toiling through hilly wilderness to dig iron and tap rubber trees.

In arms the Brazilians stand shoulder

to shoulder with United States marines in protecting the aluminum ore supply of Dutch Guiana on the Caribbean. In

j diplomacy they helped the United States

i settle the bloody Chaco war between Bolivia and Paraguay and more recently, the' rtntury-old border dispute b&w*e» jbWMto and Peru.

Here’s a quick -index to what Brazil means to the United States in this war:

Navy—Two battleships, two cruisers, •even destroyers, four submarines, more

re of other ships. Bttll more

13,000 regulars, 358.000 re- serves.

Air fqrce—Constantly expanding ar- mada of United States built planes.

Natural Resources. Raw materials—Bauxite (for alumi-

num. vital to warplanes), beryllium (hardening alloy for copper, nickel, iron), chrome (for warship steelplate and other armament), diamonds (for tools), graphite (for metal castings), mica (for

radio tubes, magnetos, sparkplugs for ■ the war machines), quartz (for direc- tion finders, submarine detectors, range

finders, periscopes, gun sights), titanium and tungsten (for tools), zirconium (for

ammunition primers), castor oil (for

high-speed engines), hemp (for rope), hides (for leather for tanks, planes, ships), wool (for uniforms, blankets), kapok (for life preservers, collapsible boats), rubber (for airplanes, tanks, trucks, pontoon bridges).

Strategic position—Controls shortest invasion route across Atlantic, guards southern shores of east Caribbean gate- way.

The fundamental achievement of the Rio conference—a democratic agreement democratically arrived at—was partici- pated in by 21 American statesmen, but the leaders were two: Undersecretary of State Sumner Welles of the United States and Foreign Minister Oswaldo

Aranha of Brazil. As a result of Its courageous stand in

the face of totalitarian threats, Brazil has moved into the No. 1 South American position which Argentina held for so

many years. Bolivia, Paraguay and Uruguay, once faithful satellites of tha Argentine, are following Brazil's lead now

while Buenos Aires hesitates. Not only have they broken with the Axis without waiting to see what Argentina would do, but they have signed financial and com-

mercial agreements directing their future toward the path of the new power in the Atlantic.

Brazil's President Getu^o Vargas dra- matized this shift by visiting Bolivia and Paraguay last year, the first time he had left his own land.

History has held Brazil and the United States on a parallel course. The land mass of the two countries was discov- ered within three years, the North Amer- ican mainland in 1497 and Brazil in 1500.

Pioneering Parallels. Both countries expanded westward

across hundreds of miles of wilderness, gaining vast territory chiefly through subjugation of aboriginal natives and peaceful annexation. The United States began as a narrow strip along the Atlan- tic coast, cut fAm the forests by men

intent on the right to worship as they chose and to govern themselves.

Brazil began as a wild empire bounded arbitrarily by a line drawn on a map by a Catholic Pope. The United States, in spite of prodigious growth, never caught up. Brazil today is the bigger of the two

powers in area, by 250.000 square miles. But Brazil never caught up with the United States, either in population or

machine power. The United States was first of the

Americas to declare independence, in 1776. Brazil was second, in 1822. Neither of the two intended their first moves

toward freedom to be absolute breaks with the old way of life. An American king was proposed in the early days of the 13 Colonies, and Brazil actually had an Emperor, Dom Pedro, son of the Portuguese King John VI, who fled Lis- bon in advance of Napoleon's armies in November of 1807. In the end, all that each kept of the motherland was the language: Brazil, the Portuguese; the United States, the English.

Turns to United States. ' When Brazil declared its freedom from

Portugal, It borrowed its basic frame of government from the United States Constitution. Now that it has declared its freedom from attempted Nazi domi- nation, it is turning again to the United States for money and technical skill and friendly sympathy to teach it how to fill its empty acres and diversify and strengthen its economy.

At the beginning of this war, there were doubts in many minds In the

.United State* as to Whether it would be safe to give too much help to Brazil. When Vargas in 1937 dissolved his Con- gress and took the government Into his own hands “for the safety of the State" he was accused of bringing European totalitarianism to the New World. Warn-

ings went abroad that sooner or later Vargas would betray democracy.

Vargas at that time denied he was

copying from anybody's book. He said

j he centralized the government because his people were too poorly developed to

govern themselves. Since then Brazil has moved slowly

closer and closer to the United States. It sponsored the plan for American con-

trol of foreign colonies in the New World, adopted at the Havana confer- ence. It clamped down on its German population, which included drilled and armed storm troopers. It seized Axis ships Interned In Brazilian ports by the war. It asked for United States Army, Navy' and air missions to develop co-

operative defenses. It grounded Ger- man airlines within Brazil and the Ital- ian Lati line across the South Atlantic to Europe. It agreed to sell all its host of vital war materials to the United States and to expand production of those materials. It closed Axis propa- ganda agencies.

The friendship has paid. Brazilian mineral production has multiplied at

least eight times in the last decade, its industrial capacity has tripled, its tex- tile output is three times as great, its Industrial production is 20 per cent above agricultural production.

Mm+nk

RUSSIA'S ALLY.