The Archive · 1923

Trade Negotiations

Tokio, June 4.

Soviet Russia must accept the conditions laid down by the Japanese Government as a preliminary to the opening of negotiations looking: to a possible restoration of relations.

This attitude of the Cabinet will be conveyd to M. Joffe after its meeting on June 6 at the same time as Japan's minimum conditions, which, well-informed persons state, include extraordinary concessions.

Nevertheless, it is regarded as extremely doubtful if Moscow will! immediately accept Japan's terms. Indecision is expected to continue over a considerable period.

The more conservative element is becoming alarmed at the extent of propaganda in favour of establishment of relations with the Soviet, which has ostensibly been promoted by commercial interests, though it is asserted that the hand of the Internationale can be distinguished and undoubtedly the number of active supporters of the Soviet is increasing. appears that the threatening utterances made by M. Joffe on June 2 have alienated some enthusiastic Japanese sympathizers, but the commercial element. is making increasing efforts to secure the establishment of trade relations, urging M. Joffe not to insist on immediate recognition and pointing out that this would certainly follow. The same element is urging tne Cabinet to abandon its demand that Russia shall accept full responsibility for the Nikolaievsk incident.

One of the most influential Privy Councillors, interviewed by Reuter's correspondent, said that the Government was undoubtedly seeking an opening for the resumption of trade relations but that it will not move without the fullest con-

tain.. sultation with America and Bri-The Councillor pointed out that the position of Japan was different from that of all the other Powers because of her proximity to two vast countries at present stagnated, while Japan must extend her trade with her neighbours and find means of expansion. She must also stem the flowing tide of insidious propaganda which was slowly affecting the nation.—Reuter.

Text read from the printed page and cleaned; old type leaves the occasional error.

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