Berlin, Feb. 7.
The Tokyo correspondent of the "Frankfurter Zeitung" outlined the situation in Japan since the resignation of the Konoye Cabinet.
He declared in his paper this morning that the failure of Prince Konoye's attempts to reach peace with China was decisive for the Japanese Premier, The Chinese Government's refusal to discuss peace conditions has marked a new phase in the war, he added.
"It is now necessary io pass from the phase of military action to the phase of permanent occupation in China and to get rid of Chinese snipers," he continued. "Conditions allowing an economic exploitation of Occupied China will be then reached. The new phase in the war must be organized by the Hiranuma Government which hopes to break down China's resistance and obtain recognition from her of Japan's position. Japan has understood that a further advance inside China would give still less results than the occupation by the Japanese of important towns and strategic centers. Even the Japanese military chiefs doubt that it is necessary to link the Canton and Hankow military fronts. Even without peace, Japan wishes to settle down strongly in the occupied territories."
The correspondent then pointed out that this will demand considerable Statement by Royal Italian Embassy Several Italian Fathers were arrested in the interior by Chinese authorities late last year on the suspicion that they were Japanese spies. Their personal belongings including a radio set, which was alleged to have been used for sending messages, was reported to have been confiscated. It is now learnt that they have been released and that all accusations against them have been dismissed.
The Italian's Embassy statement follows:
A Shanghai newspaper having published a report on the solution of the incidents concerning the Italian religious missions of Laohokow, the Royal Mahan Embassy has been approached on this subject. The Italian officials have expressed their satisfaction on the fact that a regrettable situation has been settled and that all suspicions and accusations have been withdrawn.
They have furthermore stated that, although no-one by any means wishes to belittle the aid offered to the missionaries by the Catholic authorities, for the sake of truth it must nevertheless be pointed out that the recognition of the innocence and of the rights of the Italian missionaries has been obtained mainly as a result of pourparlers started on December 9, 1938 at Chungking between the Chi nese Ministry of Foreign Affairs and the representative of the Royal Italian Embassy, and on January 5, 1939, between the Chinese Charge d'Affaires in Rome and the competent bureau of the Italian Ministry of Foreign Affairs,
Text read from the printed page and cleaned; old type leaves the occasional error.