Smnquos Tokyo and Berlin continue. to maintain reticence regarding the reported German-Japanese agreement, the 'North-China Daily News" learns from reliable' sources that th: principal features include a joint declaration against Communism, and a signed agreement whereby Germany will sell to Japan war supplies. which will enable Japan to re-organize her army on mechanized basis within three or four years, and grant credit facilities to make this possible, Moly has been mentioned in connection with this anti-Communist front, but it is understood that, while this country is not! involved' in the political' aspect of the agreement, efforts: will be made to persuade Signor Mussolini to subscribe to the joint declara~ tion against Communism.
The declaration, it 1a understood, will eniphasize the seriousness of the} Communist menace and the desirabllly of adopting concerted action to prevent its spread, in view of the expanding power and Influence of Soviet Russia in Europe and the. Far Bast, 'The "North-China Daily News" further Jearns that the military aspect} of the agreement provides for the purchase'by Japan from Germany of] war material, "including aeroplanes and tanks, fo enable the eddy mechanization" of the' Japanese army, which, as observers' recent-pointed out, following the recent military manceuvres in Hokkaido, reveals a weakness in' this respect, A six-year programme, Involving ani expenditure of over ¥, 3,000,000,000, Jo in existence, but assistance from Germany will enable Japan to reduce fulaiment of this plan' to three or four years. German assistance necessary, as It is believed thi Japan's domestic industries are' unable to' cope with this programme, and there exists a large. surplus of funds voted by the Diet for military purposes which has not yet been @bsortbed by Japanese war industries To finance these purchases, It is re-Ported, Germany will grant credit facilities extending over six years and commencing with the first) payment} next April,
Text read from the printed page and cleaned; old type leaves the occasional error.