'The Premier's failure to name a Foreign Minister, he retaining the post concurrently, is creating great! uneasiness. Japan's dual diplomacy' is well known and the.partles and. people are insistent on its being ended, but they have no desire to see this accomplished by making the Foreign Office a dependency, of the' War OMice. "The course so far followed cannot but give the Impression. that this is Premier Hayashi's aim, Until and unless he names n capable: non-militarist as Minister of Foreign. Affairs, he must remain under this suspicion.
The Minister of Finance, Mr. Toyolaro Yukd, is much the ablest man in the Cabinet, Financer and. industrial expert, the business world has complete confidence in him if only he is allowed to have his own way in shaping fiscal polley. Tals, of course, he will not be allowed to despite Premier Hayashi's pledge to' that effect. He will come nearer to getting it, however, than could any'other man in this post, and the benelieal reaction on the Japanese mediate. market to his appointment was im-
Mr. Yuki will reshape the ¥3,041,- 000,000 Budget prepared to "the Hirota Government, The most that can be hoped for is that he will recognize the total amount demanded for long-time military replenishment, but possibly reduce the percentage to be expended during the next fiscal year. He will, however, revise the tax reform plans in a way that will make them more acceptable to busi-ress and the general public.+
To Increase State Revenue Mr. Yuki is quite as much concerned with increasing State revenue by fostering industry at home and stimulating foreign trade. He is an opponent of economic nationalism, and favours the substitution of honest economic ce-operation with China" for even, So far as to. urge, just the imperialism of the past. He has
prior to the Diet erlsls, that Japan ce-operate with Great Britain in the economic development of the Chinese Republic. The Minister of Commerce and Industry, a retired Vice-Admiral of Naval Ordnance, likewise commands the respect of the Japanese business world, The Hayashi Government has not yet Issued a detailed statement of its policies. "Tt has very grave problems to solve, and it is unlikely that, it will be able to solve them. Relations with China, Soviet Russia and Great Britain are not of the best, The proposed Budget is dispropor-
Text read from the printed page and cleaned; old type leaves the occasional error.