The Daily Times (July 26, 1940)
Shipment Of Various Materials To Be Banned Under New Presidential Order
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Japan Vitally Affected By Latest Move Made By United States Government
Washington, July 28 (UP) –
The United States wielded a powerful economic weapon today against countries relying importantly upon it for war stocks of oil and scrap metal.
Chief among the foreign buyers is Japan, the largest importer of American scrap iron and steel and a substantial purchaser of American petroleum products.
The new order, making it possible for the United States to embargo shipments of those war materials, was issued by President Roosevelt yesterday. He promised a clarification of its provisions today. A similar order is in force on such products as cotton linters, wool, rubber and manganese.
Officially, the action was taken to conserve oil, scrap iron and steel, and other scrap metals for this nation’s own defenses.
JAPAN HARD HIT
The regulations nevertheless provide a potent instrument for dealings over Far Eastern issues with Japan. Japan’s keen interest in the action was indicated when embassy officials asked the State Department for information about the order soon after it was issued. They received no information.
A year ago today, the United States abrogated the 1911 commerce treaty with Japan. The treaty actually ended six months later, on Jan. 20, 1940. It has never been renewed and trade between the two countries has been on a day-to-day basis.
The regulations likewise could be used for curtailing or stopping completely oil shipments to Spain. Spain’s imports of oil rose about one-third over normal for the first five months of this year. The British expressed belief that some of it was going to Germany or Italy. Spanish sources denied that charge.