(Continued from. page 5) the terms of the December 22 statement outlining Japap's policy for the settlement of its relations with China.
Extension and replenishment of armaments in view of tne critical situation in East Asia.
3. Strengthening of the ties uniting Japan to italy and Germany 4. Strengthening df the national mobilization programme, with an increase in the powers of the National Planning Board.
5. Energetic expansion of e nation's productive capacity.
8. Heightening of national morale.
7. Promotion of trade.
Lieut.-Gen. Itagaki remained closeted with Baron Hiranuma for 40 minutes.
Japanese business circles today welcomed the appointment of Mr. Sotaro Ishiwatai, former Vice-Minister of Finance, to the post of Minister in the same department, as it was believed to preclude any violent changes in the Government's financial and economic policies. The new Minister, it was generally agreed among business men and financiers, would continue measures adopted by his two predecessors, Mr. Okinori Kaya and Mr. Seihin Ikeda.
A veteran careerist in the Finance Ministry, Mr. Ishiwatari is regarded io be free from any political afülialions. His long experience as vice-Minister in dealing with Japan's fnances under "war conditions" will serve him in good stead in coping with future fiscal and economic problems, it-was felt.
Mr. Ryuta One, director of the Financial Affairs Bureau of the Ministry of Finance, was regarded as the most likely successor to Mr. Ishiwatari as vice-Minister.
Stronger China Policy it was generally predicted by the the press and this belief wes shared by many observers in sources close to the government, that a stronger policy regarding the China hostilities will be a keynote of the new Cabinet programme. Leading metropolitan newspapers expressed the belief that Japan's fundamental policies concerning China and the military campaign will not be changed by the governmental reorganization.
The influential daily, "Asahi," linked the resignation of the Konoy Cabinet with policies dealing with a new political party movement and "national reorganization."—Domei.
Text read from the printed page and cleaned; old type leaves the occasional error.