Tokyo, Jan. 20.
Japan's foreign exchange policy for 1938 will show a sharp change compared with the previous year, to meet the wartime "economic situation. Government gold shipments, conducted since March last year to cover Japan's overseas-payments and maintain the yen exchange rate, will be abolished. Instead, a stricter allotment system for foreign exchange will be adopted.
This allotment system will be flexible for the import of raw materials for export goods, and more foreign currencies purchase will be allowed if manufactures with these imported raw materials are exported to a larger amount. Import of raw materials or finished -products for internal consumption will be strictly limited.
The fundamental aim of Japan' foreign exchange policy is to maintain the standard level of 1s. 2d. on London, Since the drastic control of Japan's foreign trade was made difficult last year by her production Capacity expansion programme end the outbreak of*hostilities in China, the government was forced to make gold shipments.
The Provisional Productive Fund Adjustment Act, imposed after the outbreak of hostilities in China, made the so-called planned economy workable, which is why Japan now intends to adopt a new foreign exchange policy along planned economy lines.
Text read from the printed page and cleaned; old type leaves the occasional error.