London, Jan. 29.
Mr. M. D. Peterson, who was appointed Ambassador to Baghdad following the transfer of Sir Archibald Clark Kerr to China, was to-day made a Knight Commander of the Order of St. Michael and St. George. "Mr. Peterson, previous to his new appointment, was Minister to Bul-gona. He was at one time Acting h ar for Egypt—
Mr. Allison said that he reported the incident to Mr. Kiyoshi Fukui at the Japanese Embassy and received the impression that Mr. Fukui believed the Americans were out side their rights in entering the compound. Since a soldier ordered them to leave he was "seemingly within his rights slapping us, Mr. Allison revealed He added that subsequently Major Hongo visited him and apologized for the incident. Mr. Allison said that he accepted the apology personally but emphasized that he was unable to speak for the United Tokyo, Jan. 29.
Public criticism and distrust of the policies of the Finance Minister. Mr. O. Kaya, and the Commerce Minister. Mr. S. Yoshino, whose resignations being demanded by certain quarters, is said to be causing considerable worry to members of the Cabinet.
In addition, Ministers are reported to be greatly perturbed by the strone attacks in the Diet against the inconsistency of the raw materials control scheme and the yen exchange [maintenance policy, on the ground that they are insufficiently concrete to meet the needs of the emergency situation arising from Japan's policy "thoroughly to chastise the National Government in China."
The situation is considered to be delicate, and political circles are watching developments with great}
The Cabinet is stated to be conidering the creation of a Ministry ai Economics, as advocated by the Premier, for the carrying out of a strong war-time finance and economy el
Text read from the printed page and cleaned; old type leaves the occasional error.