"The lished—China Affairs Board," said the Premier, "will take charge of political, cultural and economic affairs relating to China and will not meddle with Japan's foreign policy, which will be conducted by the Foreign Minister, as has been done in the past."
Mr. Arita declared that the construction of a new order in East Asi "forms the immutable policy" of Japan.
"Japen," he added, "must push forward to execute it successfully and by all means.
"The misgivings harboured by third Powers regarding Japan's action ju China—although vast fields of) activity are left to their naticnals—ere due simply to the fect that a full investigation of the damage sustained by the nationals of third Powers in China is impossible at present, owing to the military operations which are still going on and because of the extraordinary measures which have been taken for strategical necessity."
Powers Must Aid "Peace"
The Government, said Mr. Arita, was trying to arrive at an understanding with the third Powers regarding the real intentions of Japan by restoring the situation to normal as soon as possible and showing them that Japan had no intention of ousting their nationals from the Far East.
"Early termination of military operations in China, however," he concluded, "is of primary impor: ence in the clarification of the situation.
But the assistance extended to the Chiang Kai-shek regime by third Powers is resulting only in the pro-elongation of the hostilities, thus defeating the very purpose of clarifying the situation &nd safeguarding the rights and interests of these Powers."
Dispute with Soviet Russia Following Mr. Arita's address, Baron Sakatani, head of many commercial concerns, asked him whether he was confident of successfully concluding the fishery negotiations at Present in progress in Moscow.
The Soviet Government, Baron Sakatani said, gave two reasons for its refusal to conclude " fishery agreement with Japan: the failure of Manchoukuo to pay the remaining instalment of Y.5,000,000 on the purchase price of the North Manchuria Railway, and Japan's adherence to the anti-Comintern Pact.
The real cause of the deadlock in the negotiations, he contended, was not because of these two reasons, but for reasons which must be found elsewhere.
He suggested that the Government take "fundamental measures" for solution of the question, such as an exchange of Japan's fishery rights in Soviet waters for those in North Saghalien.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.