Paris, Nov. 8
French observers are not surprised by the Gaimusho's latest communica tion to foreign diplomats in Tokyo, mentioning Kwangsi province as one of the future zones of military apers tions and therefore indicating military faction in the immediate vicinity of Tokyo, Nov. 9.
ciples try. to make Shanghai wi, a one of my auing Ss an international market." said Mr. Kenji Kodama, 67-year-old president of the newly-formed Central China Development Company, in an. interview. "Shanghai." he declared, "has had a great past, but I see before It an-even greater future."
"The Central' China Development Company, "Mr. Kodama explained, was caplialized at "¥.100,000,000, which half was to be subscribed by the. Imperial' Government and. the' other fait by the general public. 'The Compeny, which will have its head fice in Shanghai, came. form= ally. into existence on 'November 7. quarter of its capital, Mr. Kodama Seid, had already" been' patd up.
Mr. Kodama, who was formerly president of the "Yokohama. Specie Bank, emerged. from retirement head the new company at the special Tequest of the Prime Minister, Prince Konoye.
The concern will operate as a hold-ang company, and will develop almost every branch of commercial enter prise, including railways, waterwork, Power-plants, shipping, mining, and {elephone, telegraph and. wireless STs first task, Mr. Kodama. said, ems.
would be to reconstruct damara sulting from the hostilities, ant the second to develop entirely' new one terprises.
No lea of Monopolies"
"We have no idea of monopolies," Mr. Kodema emphasized. "Althougn we' will not solicit ty we shall welcome foreign ce-operation. My management will be on a fair basis.- We shall not try to eliminate existing foreign enterprises."
"I am hoping." Mr. Kodama con-show a sympathetic understanding. I tinued, "that the foreign Powers will formation Bureau of the Foreign!
'Mr. Amau in his statement advised: foreigners that it would be better for them to notify the Japanese authorities of their moves' in China, The same observers assert the re- will' not say. that they have been cent campaign in the Japanese Press posite, but they certainly have not against alleged "arms. tame. through been too friendly. They Have shown Tongking to the Nationalist Chinese] a°tack of understanding. so, far, but Government, was aimed to justiy|T hope their attitude wil change:
'While General Ugaki, the Foreign' Minister who was recently replaced by Mr. Arita, designated the war zone in China as covering the eastern Portion of the country, Mr, Arita said the zone is to be extended to Shensi and Kwangsi, Areas west to the line connecting Hsuchow in Kiangsu, Patung in Hupeh and Tali in Yunnan will also be subject to air attacks he said, While the extension of fighting to! this wide area is not expected before spring, it appeared to be Japan's Intention to take all of China unless the warring countries reach an underatnnding, observers sald—United Press, Tokyo, Nov. 8, Mr, Hachiro Arita, the new Japanese Foreign Minister, (s expected soon fo. astart that Japan will welcome the Principles of the "Open Door" and equal economic opportunity for all in China providing that Third Powers desiring these recognize Japan's dominant position in East Asia.
It Is expected that Mr. Arita will issue this statement soon after his return from Nara tomorrow. Mr. Arita is spending tonight at Nagoya, Both Japan and foreign countries were eagerly awaiting the Foreign Minister's heralded statement Japan's East Asia policy when Domei announced that the previously planned interview on the train had been cancelled, Mr. Arila gave, instead, a "diplomatic observers forecast" along. virtually these same lines, which Domei released as such. The Foreign Minister is expected to elaborate on this "forecast" in his more formal pro: nouncement later, The announcement probably will contain an enlargement of the "forecast's" declaration that foreign powers will be expected to ce-operate with Japan, China and Msnchoukuo™ in "building a new order" in East Asia, Domet's "un: named observer" said that Japan especially requests the United States to look at the facts and recognize the necessity of co-operate ing in building the new order. The "observer" said that Japan is ready to recognize all legitimate American rights and interests, und specifically invited investments—all under the ame condition, that recognition be: extended Japan's dominant. position. United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.