Mr. Arit's statement in fult through Domei follows:
"As has been made clear by the statement of November 3 by the Japanese Government, what Japan desires is the establishment of a new order which will insure permanent stability in East Asia, or in other words, the establishment of a relationship of mutual helpfulness and ce-ordination between Japan, Manchoukuo and China in political, econo-"hie and cultural fields.
"It we shut that door, we shall soon find the Japanese willing to open the front door in China to us ^hce more."
"Guardian" Gives View If Japan persists in discriminating against foreign trade in China, Great Britain and the United States are prepared to retaliate, says the "Manchester Guardian" in an editorial today in referring to the significance nf the American credit of the £5,000,000 (approximately.$25,000,000) and the reported British credit to China.
The paper takes the British credit as a fact and fixes it at £450,000, Recognizing that British, and American discrimination against Japanese trade would be a "more serious and more effective weapon" than loans or credits, the "Manchester Guardian" adds:
"It is only to be expected that Japan will react strongly against Is these measures but it is doubtful whether she can do more than she is already doing.
As it is, continues the paper, Great Britain has assailed the Japanese press as "the real enemy" and the "power behind China" but "Since we are already condemned, it can make little difference whether we are innocent or guilty of the charges."—Reuter, Government to Define Policy That the formation of s closely cooperative relationship between the three countries is an imperative neces sity is explained by the fact that it is, in its political aspect, a measure Of self-defence against the Communist menace and in safeguarding the civilization and culture of the Orient; and im its economic aspect, a measure of self-preservation in the presence of the world-wide tendency to erect high customs barriers and to employ economic measures for political ends.
Ending China as Colony It is not only of benefit to the Chinese people themselves but to the whole of East Asia to lift China from its present semi-colonial status to the position of a modern state.
Establishment of a new order, that is, of a relationship of mutual aid and ce-ordination between Japan, Manchoukuo and China, simply signifies the creation of solidarity between these three countries for the common purpose of preserving the integrity of East Asia, while enabling each nation to maintain its independence and fully develop its individuality "It is the firm conviction of Japan that the establishment of such a new order will be perfectly in consonance with international justice and contribute toward peace and tranquility im Easts Asia, and it is her inflexible resolution to carty out her policy in London, Dec. 19.
The press here this morning expected the British Government to define clearly their policy of resi ance against any attempts at injuring British interests in the Far East.
Most of the diplomatic editors predicted that in reply to the appeal made by General Chiang Kai-shek in his recent conference with the British Ambassador to China, the British Government will place £500,000 drawn from the funds created by virtue of the law on export credits at the disposal of the Chinese Government.
"Clearly this sum is small compared with the great needs of i stated "The Times" this morning, "It amounts to something like a farthing per head of the population. A general fund, however, is far from the Government's mind. Regarding the £500,000 they have a specific point in view, which is the provision of lorries and other transport along the road of strategical and economic value now being completed from Central China to Burma—the new gateway to the East."
"Japan's operations in the East gravely, undermine the position of Hongkong as the clearing house for ihe Chinese market" the "News-Chronicle" stated. "But the flow of trade like the flow of a great river takes a lot of checking. There is nearly always a way round.' Hayas Neutrality Act May Change Washington, Dec. 18.
The "Washington Post" in an editorial today asserted that the granting of a US. 325,000,000 credit to China should assist in revision the United States' Neutrality Act.
The paper pointed out that the procedure followed in granting the credits ^was "calculated to evade and nullify the ill-named, misconceived neutrality laws, which seek to prevent private individuals from Li doing precisely what the Government now. sanctions."
Pointing out that the granting of this credit was completely inconsistent with the official neutrality policy, the paper said "when the matter comes up for discussion in Congress it should certainly assist revision of this legislation which hampers our foreign policy to such a degree that the Administration is forced to use a form of sabotage in order to safeguard essential national interests,"
The editorial coincides with widespread speculation here as to possible changes in the Neutrality Act when Congress re-convenes on January 3. Well-informed quarters felt today that the Act was due to be modified, but admitted that the changed complexion of Congress and the rapidly changing world Situation made exceedingly prob-^lematical the. form which any such changes might take. Numerous organizations in Washington and elsewhere have announced their intention: to agitate for a change in the act—United Press. this regard.
Text read from the printed page and cleaned; old type leaves the occasional error.