Japanese Ship Impounded by China Over WWII Debt

Timothy Spangler
Wed, 23 Apr 2014 15:24:06 -0700
Opinion

A Shanghai court this week ordered that Baosteel Emotion, a Japanese cargo ship, be seized over an unpaid debt dating back to World War II. The seizure was promptly denounced by a senior Japanese government spokesman, demonstrating how sensitive tensions in the region are as President Barack Obama kicks off his much-heralded tour of Asia.

The tour was already postponed once, when a carefully orchestrated government shutdown last October meant Obama was stuck stateside rather than enjoying a flight on Air Force One. As a result, many Asians wonder how long the United States can remain focused on their region before other priorities distract Washington. China's influence in Asia continues to grow, putting it in potential conflict with Japan, as well as with other countries, such as South Korea, Malaysia and the Philippines. Coincidently, all are planned stops on Obama's diplomatic travels.

The story behind the impounding of Baosteel Emotion illustrates several of the deep fault lines that Obama must navigate over the next two years. The Shanghai Maritime Court ordered the seizure of the cargo ship because it is owned by Mitsui O.S.K. Lines, a successor company to Daido Kaiun, which had rented two ships in the 1930s from Chung Wei Steamship Co. Unfortunately, the Japanese Imperial Navy took control of the two ships and they were subsequently sunk during the course of World War II.
Updated: Thu Apr 24, 2014

A Shanghai court this week ordered that Baosteel Emotion, a Japanese cargo ship, be seized over an unpaid debt dating back to World War II. The seizure was promptly denounced by a senior Japanese government spokesman, demonstrating how sensitive tensions in the region are as President Barack Obama kicks off his much-heralded tour of Asia.

The tour was already postponed once, when a carefully orchestrated government shutdown last October meant Obama was stuck stateside rather than enjoying a flight on Air Force One. As a result, many Asians wonder how long the United States can remain focused on their region before other priorities distract Washington. China's influence in Asia continues to grow, putting it in potential conflict with Japan, as well as with other countries, such as South Korea, Malaysia and the Philippines. Coincidently, all are planned stops on Obama's diplomatic travels.

The story behind the impounding of Baosteel Emotion illustrates several of the deep fault lines that Obama must navigate over the next two years. The Shanghai Maritime Court ordered the seizure of the cargo ship because it is owned by Mitsui O.S.K. Lines, a successor company to Daido Kaiun, which had rented two ships in the 1930s from Chung Wei Steamship Co. Unfortunately, the Japanese Imperial Navy took control of the two ships and they were subsequently sunk during the course of World War II.

Lawsuits have been running since 1964 in order to obtain compensation for the losses. A Chinese government spokesman stressed that the seizure was part of a private business dispute and not a diplomatic event. In recent years, a number of lawsuits from individuals directly impacted by the Japanese invasion of China more than 70 years ago have been filed in Chinese courts. As part of an agreement signed by China and Japan in 1972, when the two countries re-established diplomatic ties, China agreed to waive its claims for war reparations.

Meanwhile, right-wing Japanese Prime Minister Shinzo Abe initiated his own storm of criticism when he made an offering to the controversial Yasukuni Shrine, which is linked to the militarist regime in power during World War II. Xinhua, the official Chinese state news agency, referred to the donation as a "slap in the face." The Shinto shrine in Tokyo is a place where the Japanese worship more than 2 million individuals who died in wars between 1868 and the end of World War II. To the anger of many Chinese, this also includes 14 "Class A" war criminals convicted and hanged by the Allied powers as part of the Tokyo War Crimes Tribunal.

Abe previously caused an even larger diplomatic crisis back in December, when he visited the shrine in person, although he stressed afterward his personal conviction that Japan must never wage war again. Some Japanese would equate the Yasukuni Shrine to Arlington National Cemetery or the Cenotaph in London. Critics of Japan's militarist past, however, fear that visits from high-ranking officials such as Abe simply stir up jingoism and nationalism in a country that may have only partially reconciled itself to the death and suffering it caused.

Tensions are currently very high between China and Japan. One focal point is the Senkaku Islands, which are claimed by each country and are a recurring site of attempts by "patriots" from both sides to demonstrate "sovereignty" over them. These small rocks could be a source of outright military conflict if an incident of symbolic brinkmanship ever went too far. It is important to remember that under the U.S.-Japan treaty, the United States is legally bound to defend Japan if it is ever attacked. Obama made clear this week that the treaty applies to these islands, as well. This guarantee was a centerpiece of Cold War strategy but remains a U.S. obligation long after those Cold War fears have passed.

Obama is visiting a region where the United States could play a useful role of guarantor of peace and stability. This would benefit both the Chinese and the Japanese, as well as their increasingly nervous neighbors. The central problem that Obama and his successor in 2016 must eventually address is how a strong and assertive China can best be accommodated. Open warfare involving the world's top three economies could be devastating, plunging international markets into chaos.

Given recent diplomatic failures on Ukraine and Syria, the White House faces awkward questions over its priorities in Asia. At the very least, Obama should demonstrate during his visit that he has not completely forgotten the challenges that the region faces, even if he is unable to provide compelling solutions or to convince many of the doubters that despite promises of a "pivot to Asia," the region is a real priority for his administration.