Nov. 4
The, new announcement of policy in east Asia by the Japanese Government on the eve of the anniversary of the birth of Emperor Meiji contains nothing surprising, fand may be summed up as a restatement of frequently announced aims, without any very great modification. 'The one important feature is the outline of the Japanese position regarding the Kuomintang, and it is now made clear that a properly' purged Kuomintang, without the leadership of Generalissimo Chiang Kal-shole and his immediate followers, freed of its alleged Communist leanings might be permitted to play its rule in whatever government is eventually set up for China The gentle hint is obviously designed to drive a wedge between the Generalissimo and the party, in an attempt to bring about the downfall of the former, with some hope to the latter of still being able to take some part in the govern= ment of the remodelled nation. It is doubtful whether this ingenious move will have any real effect, for since the fall of Canton and the Wuhan cities it is apparent that even these severe blows have failed to daunt the determination of Chiang Kai-shek, and party to continue fighting. The rest of the document consists of familiar reiterations which will serve to convince no one save, perhaps, the Japanese themselves, represents no vital departure from the famous declara~ tion of January 16, affords no contribution in Chinese eyes tothe cause of peace, and demonstrates beyond a peradventure that the task of reconciling the two governments would be just as dificult now as it has been in the past. Japan is as insistent now upon the surrender of the Chinese Government was when hostilities opened, and in the absence of this Japan stands committed to pursue the Chinese government and its forces, to the very boundaries of China in an endeavour to crush it once and for all, That may indeed represent the intentions of the Japanese militarily dominated government, but whether it coincides with the wishes of the commercial community of Japan is an entirely different matter, With the completely ruthless behaviour of the Japanese military and naval authorities towards third Power interests in China, a complete contrast is to be found in the soft blandishments of Mr. Kenji Kodama, president of the Central China Development Ca. He, in an interview in Tokyo, promised that foreign companies would be encouraged to resume their normal activities in Central China as soon as circumstances permitted. The reason has been given by Mr. Neville Chamberlain in the House of Commons debate on foreign affairs, by Sir Frederick Whyte, and by a large number of competent observers on present trends in the Far East, Japan will eventually want money. She has taken upon herself great responsibilities in China which will require the use of more funds than Japan can possibly provide, and, as Mr. Chamberlain rightly says, there can be no development of China without a good deal of capital, and for that Japan will have to go to other countries including Great Britain. Mr. Kodama is too closely in touch with the principal money markets of the world to expect foreign financiers to supply funds directly for the rehabilitation of the areas Japan has occupied in China without considerable change of conditions, and as president of the new company he will probably seek to pave the way for foreign eapitalists who may become interested in the schemes of development. In. short Mr. Xodama realizes that it is necessary for Japan to restore that commercial confidence which has been sadly damaged by the action
Text read from the printed page and cleaned; old type leaves the occasional error.