Tokyo, May 28.
The Ministry of the Navy was un: derstood to-day to be planning to ask the Government for a larger aval budget for the fiscal year of 1935-38 in order to construct more subsidiary men-of-war and increase the size of the Japanese air corps.
According to authoritative circles, the Ministry of the Navy also intends to carry out important renovations of practically all the battleships and cruisers that Japan now has. Four torpedo boats are included in the remodelling plans.
'Asa result of the recent disaster the torpedo boat Tomotsuru, which sank during manoeuvres on the high seas, many naval officials have become convinced that large' scale improvements must be made on all craft of similar type now in service for the purpose of averting accidents in the future, The Ministry of Finance, however, is reported to be opposed to any increase of the naval budget, fearing that It will place too heavy finan-dal burden upon the nation. A. serious political crisis nearly developed last year when the Ministry br Finance rejected the huge expenditures as first drafted by the Ministry of Navy.
London Offer Acceptance Well informed circles understand that the present plans of naval expansion envisage the building of humorous subsidiary men-of-war none of which would be over 5,000 tons. Speed and mobility of movement would be the onstanding charreteristic of the new craft Contingent upon the distinct understanding that the proposed discussions in London preliminary to the 1935 Naval Disarmament Con. ference will be strictly limited to naval issues. The Japanese Government will officially accept the British Invitation within the next few days making Japan's acceptance the proposal, Mr. Koki Hirota, Min-Ister of Foreign Affairs, indicated to-day that he would insist that the occidental conception of what con stitutes security in the Orient could not be accepted by the Tokyo Gov-fernment which still maintains that JJopan must be the power to decide questions affecting" the stability of Far Eastern countries.
Threat of Withdrawal The reply {s also expected to claim that the recognition of Manchoukuo nda better understanding on the part of the powers of the world re farding China's position are essential to peace in the Far East. On account of these divergencies viewpoints, Mr. Hirota will empha-Size that Japan's acceptance must [therefore be based.on the promise thatthe preliminary discussions in London must be strictly confined to aval subjects.
According to circles close to the JGovernment, Japan will withdraw from the London conversations the moment the other nations attempt. to Inject their attitude toward Far Eastern political subjects into the parley and in such an event Japan would blame Great Britain, the United States and the other powers for the breakdown of the undertaking.
Tu the meantime, the Japanese Government is drafting a disarmament policy to be followed at the] London conferences.
Text read from the printed page and cleaned; old type leaves the occasional error.