... policies of the Japanese leadership were influenced by world external events. In July 1937 an accidental clash with the Chinese escalated into a full-scale war. Despite Japanese operations in China endangering American trade, the US persistently rebuffed British requests for joint diplomatic pressure against Tokyo to force a halt to the Chinese campaign. America only issued verbal warnings like the "quarantine aggressor" speech of October 5, 1937 where Roosevelt called for 'positive endeavours to perverse peace'. Public outcry for isolationism in the United States forced the President to retreat even from economic sanctions. Inaction at this stage proved a decisive factor as it allowed Japan to consolidate its position in China, and allowed the military to secure its hold over Japanese policy. Britain attempted to defend its financial interests in China by encouraging Chinese currency reforms and by insisting on dominating the Chinese Maritime Customs Service1. This persuaded officials ...

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