On July 3 sensational changes in China's tariff schedules were made by order of Generalissimo Chiang Kai-Shek. These changes were Japan's price for not seizing Peiping. The new tariffs upped rates sharply against the leading exports to China from the U. S., Britain and Russia, at the same time cutting rates on the chief exports to China from Japan. To keep all this as quiet as possible, Chinese censors were ordered to obstruct and discourage white correspondents in their cabling of the story.
Chiang's tariff concussions go even further than to give Japan major advantages over other great exporters to China. They cut certain rates so low that Chinese owners of cotton mills, paper mills, breweries, coal yards and fish markets declared last week they could no longer compete with Japanese prices in depreciated yen, were threatened with ruin. By every post petitions poured in upon the Generalissimo and he received irate telegrams night and day.
Reports from Chinese seacoast cities were that Japanese freighters are now rolling in loaded to the scuppers and that most Japanese lines in the China trade have chartered extra freighters. Propped up in front of Chinese editors were orders from the Government threatening to suppress any newspaper which "supports the stand of the ignorant merchants." In a circular telegram the Generalissimo wrathfully declared: "THE GOVERNMENT WILL NO LONGER TOLERATE THE UNREASONABLE ATTITUDE OF THE PUBLIC."
As the public continued its "unreasonable attitude," Generalissimo Chiang summoned a secret conference of government leaders last week at his summer headquarters at Ruling in the Lushan Mountains. Up for discussion was, among other things, a new Constitution which would take the President of China out of the figurehead class (a Mr. Lin Sen is now President) and give him full powers. The implication was that Generalissimo Chiang will make himself President and move into the brand new $100,000 Chinese "White House" (yellow walls, blue tile roof) at Nanking which puppet President Lin has never ventured to occupy.
En route to the conference last week owl-eyed Premier Wang Ching-Wei set an example of close-lipped secrecy which was followed by all except Finance Minister Dr. H. H. Kung, stogie-smoking Christian descendant of Confucius. He felt obliged to comment on President Roosevelt's nationalization of silver as he stepped aboard an airplane at Shanghai. Said Dr. Kung: "We also would like to nationalize silver but for China this is impossible because our Government is hampered by extraterritorial treaties. We do not want the price to skyrocket, for silver is vital to our national life."
Indicating that China would slap an embargo on silver exports if the U. S. nationalization program creates undue demand for the metal, Dr. Kung declared after a vigorous pull on his cigar: "China should be ready to act instantly—which we are—if necessary."
Again, Famine. Not up for action at the Generalissimo's conference was what a government spokesman blandly called "the worst drought which has smitten Central China in half a century, or perhaps in living memory."