Japan's demands for war indemnity against China included "not only all reparations demanded by a victor" but also the indemnification for the losses sffuered by Japanese in China, the Foreign Minister declared to-day in reply to a question on details of the four-point peace terms to the Chinese Nationalist Government, Japan "need not have" territorial ambitions in China, declared the Premier, Prince Konoye, to-day in reply to a request for the elucidation of frequent Governmental protestations that Japan is not seeking land on the continent.
"Japan need not have such an ambition" he declared, "There is no contradiction between the wish for the establishment of a new regime in north or central China and the spirit of respect for the sovereignty and territorial integrity of China, Misunderstanding abroad on this subject should be dispelled."
Gen. Gen Sugiyama, Minister of War, placed the present strength of China's armies at "no more than 1000000 men who are demoralized." He added that the day is near when Gen. Chiang Kai-shek will take a disastrous fall in spite of his brave talk of long-term resistance."
Armaments were being brought to China through Mongolia, Kwangtung and Indo-China in the opinion of Gen, Sugiyama and Admiral Mitsumasa Yonai, Navy Minister,
Text read from the printed page and cleaned; old type leaves the occasional error.