Lt.-Col. Ishimoto, member of the Special Service Corps of the Japanese Army stationed in Peiping, who was recently in Tokyo for negotiations on half of the Japanese Army in North China with the Government, the organizing committee for the North China Development Corporation and ether quarters regarding North China development, summarizes the situation follows:
The subsidiaries of the North China Development Corporation are to be Chinese juridical persons with Sino-Japanese joint investment, As funds required by the subsidiaries may not be covered completely by the investment of Chinese and foreign financiers, any shortage may be covered by the North China Development Corporation, provided that it does not exceed the total of the corporation's capital and its North China Development debentures, or ¥.2100-million, The said capital supply shall be spread over a period five years.
Tokyo Dislikes Monopolies The Japanese Army authorities in North China desire the application of the principle of "one company for one Industry" to facilitate controlling the industries. 'The Japartese Government {insist on allowing several companies for one industry because monopoly affects eMciency, as the state of affairs in, Manchoukuo' bears. witness.
The Government further proposed that one of the several companies each line of business should b" formed chiefly by a Japanese or Munchoukuo company engaged in the same industry.
The Japanese Army in North China demanded that the profit-making policies of the subsidiaries should Be subordinated to the progress of economic development itself. Tokyo interests insisted that profit-making, by the North China Development Corporation should not be neglected and that the business of the subsidiaries should be adjusted in accordance that idea.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.