"It is my considered belief that business in Japan faces a great recovery. The low yen has attracted buyers and has stimulated competition. It has not -been a bad thing for the country so far, but every effort should be exerted to keep the yen from falling too low. It would be a great mistake to permit this. There seems to me to be little doubt that the present low value of the yen has not been attained only because of economic conditions. I am convinced that it has been hammered down for political reasons.
"There is abroad a distinct fear that there may! be a repetition of untoward incidents of a_ political nature in Japan, which has helped, and continues to influence the fall of the yen. The death in Tokyo of so many of Japan's great men has taught even Japan's best friends to be very careful in their thinking about the future of Japan.
"It is an open secret", added Mr. James, "that the War Office during the trying days of 1931 and the early part of this year, were not effectively ce-operating with the Foreign Office. The latter had assured the world of certain things, such as troop movements—there was an apparent departmental discord. What the world would like to see was departmental co-opera tion and statements should be issued by a responsible head, "T have found that the average Japanese man feels that his country has been forced into a position of isolation, far from splendid, by exclusion laws forbidding immigration of Japanese, and by tariff laws such as the recently announced Indian tariff on cotton goods, which leave Japan no markets for her surplus goods. To these men Manchuria now begins to represent what bread and butter does to the average European or American, It is Japan's last hope for peaceful development. I think that if this fact were better understood in the United States it would be better for the peace of the world, and certainly it would make the feeling between these two great Pacific powers more cordial.
"Manchuria presents an outlet for Japanese manufactured goods which can never be choked nor blocked because Manchuria needs and can absorb everything that Japan can send her. Japan recognizes this fact and is determined, rightfully I firmly believe, to allow nothing to interfere with her development of this natural market. I hope that in developing Manchukuo that no obstacle to the free development of the trade of all other nations will even be considered by the Manchus and the Japanese. Such a move would be disastrous to friendly international relations. But I believe that Japan will see that no such action is taken for it is to Japan's advantage to maintain the open door so that all nations can realise her true sineerity."
Mr. James went on to say that he is a strong advocate of a conference of the Pacific Ocean. "There have been too many conferences over European affairs,' he said, "what is needed and what I want to see is a conference of the Great Powers about the Pacific which will enable the United States and Japan to talk over their grievances in the presence of others: and arrive at a better understanding. The present attitude of both these nations toward each other is very sadly strained due, I firmly believe, to the propaganda particularly in the press on both sides."
"Political conferences, held in the capitals of powers, at times in association with similar conferences on commercial ard economic subjects,
Text read from the printed page and cleaned; old type leaves the occasional error.