Japan may soon follow in the £001 tens of Britain' by investing. from 4s Boxer Indemnity Fund in econo: ne reconstruction activities in Chine, This was forecast to-day aa. the Cabinet approved a draft bil liber= allzing the ways money rom. the fund may be utileed. white will be submitted at the pr ent session of the Diet. is atured oF passage, The accumulated reserves from the indemnity payments, officially known the Fund for Cultural Activities Ching, totals ¥.96,000000. "Now it may only be used to purchase Japane ce national -bonds of for" deposit with" the Treastry. "The lows Interest. policy of Dr, Eilehi Baba, Minister of Finance, which is making investments at home. unattractive, coupled with the back of funds 10 arty on" projected "ceonomie plans for the development of North China Prompled. Japenese officialdom to Seek liberalization of these rules.
Of the total, ¥.26.000000 wilt be ald the Ministry of Finance to ace Sule the 6 per" cent. "Chinese" Na tlonat Bonds delivered in payment for the Kloots! Railway, which. was restored to China in' 1029, "These securities yield almost twice as much Japanese national bonds of recent issue. "The "balance. amounting. '¥1,000000" will probably. be used to finance the construction of rallwaye the development of mines North china, 'The "projected Tientsin-Shihchiae want line to link the lent sin-Pukow and Peiping-Hankow tines In southern Hopet and. the Lungyen tron. Mine exploitation plan ave' the most Ukely objectives" for proposed. Investments, tle sources" indicated, inal decision will await format rmecting of the Cultural Affairs Com mittee of the Foreign Oftlee, foliow-Ing the passage of the bill—Domei. the present "Impasse" in Sapan's relations with China, "The Foreign Mintster, Mr. Hachiro Arita, in reply, declared that he did not believe Sino-Japanese relations were deadlocked, The Japanese Government, he said, has tong cher-Ished hope to establish friendly relations with China, and although tts efforts have not yet been crowned with full success, there was no Just cation for branding Govern ment's polley as "failure Once again returning to the rose Mr, Hamada took issue with the War Minister over, the latter's remark that Mr, Hamada's references fo the Army were "slanderous."
Gen, Terauchi interjected that ho merely remarked Mr. Hamada's yards were "regrettable" for they appeared to be insulting to the Army.
uggeat." Mr, Hamada responded before the hushed House, "that your 0 through the oMelal stenographic (ranseript of my speech.
if you find any slanderous remars in my utterances. T shall Immediate-commit. haraklel If not, T ree quest you to bear full responsibility for your words."
Text read from the printed page and cleaned; old type leaves the occasional error.