Prince Fumimaro Konoye has formed his Cabinet and it gen-rally accords with - expectations that" it" would represent. a true coalition of the political parties ind the defence ministries. The prob-em Uefore the Premier is that. of meeting the nation's anxiety over the rise in prices which makes it imtrative to put a severe limitation on expenditure. On the expenditure side of the Budget the demands of the Army and the Navy have pre dominant call. These demands "de-Pend on the country's ability in for~ ign affairs to limit its commitments. It is curious to note therefore that although the policy of "the new concept" of China's relations with Japan actually began to take shape when Mr. Koki Hirota was Prime Minister, his return to the Foreign Oflce is associated by some comment. in Tokyo with his "hands off China" Pronouncement of 1934, "his three
Text read from the printed page and cleaned; old type leaves the occasional error.