Tokyo, Apr.
A readjustment of "Sino-Japanese relations is essential to the solution of the economic and financial situa. lon now confronting Japan.
This bold assertion was made here last night by Mr. Toyotaro Yuki Finance Minister, in a general dis jon of governmental policies dur-reso interview.
sincerely to be hoped that economic ce-operation in North China Will, be achieved by means of w real pnutual understanding between the peoples," Mr, Yuki said.
Military circles, the Finance Miniser asserted, shared the same desire, "hat is'why I believe that the visit to China of the Kodama Mission was signifteant," he added.
Returning from a trip to Nanking and Shanghai at the head of a Jax anese Economic Mission, Mr. Keni Kodama, a former president of the Yokohama Specie Bank, to-day intimated that a Sino-Japanese agreement in principle had already been Teached on the questions of trade, cotton, sugar and banking.
While declining to reveal details, Mr, Kodama told the press that the Mission had conducted a "frank and free exchange of views" with Chinese officials and business men regarding Sarlous "Sino-Japanese questions. North China Issues and trade problems were included among the sub-Sects reviewed, he said.
'Me. Kodama' cited the recent hand ing over by Japanese banks $0,500,000 in' silver to Chinese me' stitutions 10 militate China's cur Sino-Japanese economic co-opera tion, the veteran banker added, would take "a definite form" in the future.
The returning leader said he had been deeply impressed with the re~ habilitation of China and expressed Boycott would never recur in China.
"Pellet that both China and Japanese have deen "greatly benefitted" by the recent visit of the Japanese economic mission to Shanghai and Nanking was expressed last night by Mr, Kodama, Mr, Kodama denied the reports current both here and in Shanghai that the visit had been a failure.
Ject to close, scrutiny at this gather-Ing, 1 was learned.
Mr. Kodama, who once served as manager of the Shanghai ranch of the Yokohama Specie Bank and later a president of the semi-oficial in~ stitution, is "understood to have stressed, In his interview with Mr. [Sato the changes that are taking place in China.
The neighbouring republic is endeavouring to gain the attributes of unified "nation, Mr. Kodama was understood to have pointed out. The Chinese people are seriously devoting their efforts towards the realization of this ideal, unconditionally supporting the Nanking Government, Tu formulating Japan's policy to deal with China, the retired banker was reported to have emphasized, the Tokyo Government should take into account these changing circumstances, the groundwork for Sino-Japanese ce-operation prepared by his mission to be exploited to the deneft of both nations.
While taking " sympathetic view of the stand assumed by Mr. Kodama, Foreign OMice circles to-day were described by observers as showing Increased concern in connection with the recent attitude of China:
Renewed Chinese agitation favour of the abolition of the East Hopel Autonomous Government and the solution of itg correlated "special fade" question. the abrogation of the Tanga and. Shanghai truce agree ments andthe eventual return of Manchuria to" Chinese" sovereignty, 2 cited. a3 evidence. of an alleged "about face" by China, Such a change, was reportedly a tributed by Gaimusho ofeals, to misunderstanding" by the Chinese of the announcement by Mr. Sato Gat Japanese foreign policy would be guided by-a spirit of equality and mutual concessions, "This Chinese titude, coupled with an alleged disregard of Japanese requests for arly settlement of the murders of [Japanese subjects in Hankow and Shanghai last year and the question Involving the" re-opening of. the Tapanese Contulate-General in Cheng {uy cannot but produce. stiffening of Japanese policy, they were said He said that the special committees to be established here and In Shang-hal as a result of the mission's de-Nberations with Chinese businessmen will have sub-committees dealing with the prohi of finance, trade, 1 and sugar manufacturing—Domel, This, observers pointed out, would result"in playing into the hands of the Japanese advocates of "strong measures" in China, who have recent: ly receded from the political scene 10 bide their time for a drastic strok Need for Adjustment Osaka, Apr. 7.
'A. readjustment of Sino-Japanese relations. forms. the most, important problem confronting, Japan's financial circles to-day, the Finance Minister, 'Mr, Toyotaro' Yuki, declared on his arrival here "Unt our reited, there can be no. expansion in Japan's: preactive power nor in Nor export" trade.
"qe future of our national economy can be sold to rest on the solution
Text read from the printed page and cleaned; old type leaves the occasional error.