The Japanese Government and people, working in close ce-operation, he stated, would certainly be able to conduct long-term hostilities, especially with progress being made in the economic rehabilitation of North China*and in the establishment of an economic bloc in East Asia.
The Finance Minister assured his colleagues that all financial measures necessary for the carrying on of long-term hostilities—including a readjustment of capital funds and the demand and supply of goods, the "digestion" of Government bonds, the maintenance of the yen exchange rate, a readjustment of foreign trade, and increased taxation—had been carried out since August 15 last year, when the Government abandoned "its. policy of non-aggravation in view of China's recalcitrant attitude towards Japan."
Text read from the printed page and cleaned; old type leaves the occasional error.