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light industry flourishes largely due to
industrial loans and technical assistance
from Japan, the USSR, and from
England, Italy and other European
nations.
But such help is not sufficieot to
bring about any great industrial expan–
sion at the present time. China needs
more
funds for capital investments. But
with a large share of her foreign
exchange being paid out for food prod–
ucts, there is little left for industrial
expansion.
While China's interna] peace is ques–
tionable and the nation continues to
pose a threat to international secucity,
most countries are hesitant to invest
heavily in Red China's industrial poten–
tia!
<:specially where factories could
be casily coowrted to war use'
Yet without a massivc hom<:-front
industrial capacity, China cannot enter
into a general war of aggression against
Southeast Asia.
What industry China has is devoted
largely to the production of
exportable
commodities. Exports are absolutely
necessary to bolster China's weak for–
eign exchange balances.
High-quality vehicles and industrial
machinery produced in Red China are
sold through Hong Kong and Japan.
They are often
reso/d
as products of
Japan or Nationalist China to avoid the
stigma of being presented as a product
of Red China.
Sorne wheat and other grains pur–
chased frorn Canada and Australia are
resold for hard currency by Red China
to othcr Communist countries such
as Cuba. Homc-grown r ice is also
exportcd. Tons of food are shipped to
Hong Kong daily and Red Chinese
products find a ready mark<:t in most
Southeast Asian nations.
China needs exports lo build her own
economy. Any war of aggression by
China would wipe out a large segment
of her foreign lntde - something
the Communist leadc:rs would find
disastrous.
War certainly is not what Communist
China needs at this time.
China's Foreign Trade
One of the greatest economic prob–
lems facing China is the lack of foreigo
The
PLAIN TRUTH
trade. Whi le other nations do trade
wilh Red China, most Western nations
officially refuse to do business with her.
China needs neutral outlets for hc:r
products. For the most part these outlets
are Japan, and cert<tin other border
nations.
lf Chintt ll'ere
10
invade her neigh–
bors, she u·ottld lose UJhttt gates lo the
free u •odd she
11011'
has.
It would be impossible for China to
conquer Hong Kong, for instance, and
successfully take over that city's flourish–
ing banking and business entcrpris<:s.
Phpirall).
Red China could takc: Hong
Kong tomorrow. She controls the drink–
ing water thal flows through the plush
tourist hotels. It would be so very e.tsy
for mainland China to move in any time
she picases. 13ut the Red Chinese would
lose
immcasurably more than they could
gain.
Communist China simply could not
run Hong Kong without the support
and coopcration of thc Western nations
that trade through Hong Kong today -
support and cooperation she would not
have in c:vent of war. Yes, China
NEEDS
a free Hong Kong and frc:e nations of
Southeasl Asia to maintain a large por–
tion of her foreign trade.
It is the
trading
aspcct which is more
important than the mi litary. And here,
"tiny Japan" is the big oriental giant -
not China.
Heavy cquipment and vehicles, appar–
<:ntly of high quality, are manu–
factured in
/imited
volume by China
and sold to foreign nations by devious
means. One businessman told me of
having equipment in his plant which
had been manufactured in China - the
Chinese markings wcre still on the
inside of the machine. But on the out–
side, in bold letters, were the words,
"Made in Japan."
Condusion? China needs
Japttll'
J
cooperation to sell her wares. Japanese
industry is calling thc shots!
China' s Future?
Supposc: the West<:rn Powers pulled
out of Southc:ast Asia? Would China
take ovcr l<:adership in the area?
Probabl) not!
Communist China has
ambitions of conquest and leadcrship,
but little opportunity for either.
January 1971
Shc might attcmpt the capture of thc
Nationalist Chincse stronghold of Tai –
wan. Without American aid, <ltionalisl
China could not long defend her island
fortress. And make no mistake! Main–
Jand China
u•ants to conquer
and rule
Taiwan, which stands tcday as a defi.tnt
symbol of Chincse anti-Communist feel–
ings. And since many Chinese regard
Korea as a part of China, and since the
Vietnam rice surplus is sorely needed by
China, the Chincse might hope to takc
over these two nations if thcy could.
But to much of Southeast Asia, Red
China poses littlc immediate threat and
has l ittle to offcr. She is having too
many problems of her own.
The Powerful Japanese
There is only
one
nation in that
wholc area capablc of commanding thc
respect of Asiatic nations. Only one
Asian nation has
proved
it
ca11
lead.
Japan!
Rising from thc ashes of total defeat
in World War Il, Japan today is one of
the most industrially powerful nations
on earth. Japancse products fill markets
and stores of every civílized country and
especially in Soulheast Asia.
But Japan is doing more than offer–
ing her products. The Japanese are
im,esting he,,,¡¡)'
in thesc nations
- land reform, exploitation of oil
resources, minerals, timber and agricul–
tur',tl products. Japan is giving tech–
nological and engineering aid as well as
financing road and bridge building in
sorne Asian nations. Japanese - not
Red Chinese - are moving into other
nations in a pcaceful invasion of tech–
nicians and businessmen that rivals
their military invasions of those nations
in World War II!
Japan, not Red China, is the pow–
erhouse in Asia.
Eventually Red China must turn to
Japan for leadcrship. Red China, the
"Sick Fifth of Humanity," needs help.
Japan is ready and willing to give that
help as long as Red China is profitable
to hc:r in return.
China's time is not
110111.
Write for the surprising facts on
Japan's growing power, in our
FREr:
rc:print "The }.1panese- Yankces of thc
Orient." O