693.9412 Manchuria/1: Telegram

The Minister in China (Johnson) to the Secretary of State

542. Reuter from Canton today.

“South China today declared economic war on Manchukuo when Southwest Executive and Political Committees decided to ban entry of goods from Manchukuo into South China. This decision was taken on grounds that profits derived from exports from Manchukuo would eventually go into Japanese war chest. Kwangtung has been great market for Manchuria products notably soya beans, wheat, coal and livestock.”