Tokyo, Mar. 9. c held here yesterday need to "serve a warning upon Great 2 " The journal states the British Ambassador in Tokyo, to Minister, Foreign Office officials It was also decided, the journal -action on the part of Japan. is stated, does not necessarily "the inevitable settlement should be postponed." In The "Hochi Shimbun" also states that the Cabinet held an emergency session -in the Diet Building on when they are stated to discussed the'Government's at-should make a this unfriendly action," positive Agreement It Britain continues in such unacts, the journal states, Japan should "resort to some retaliaaction with regard to British and interests in Chini Reuter.
Gaimusho Comment
Asserting that the currency of the Tokyo, Mar. abe tang Government Sands on verge of complete collapse, a spokesman of the Foreign Office ton in commenting on the new British loan to the Gen. Chiang Kai-shek regime, counselled Britain to grasp of affairs in East tender of the Kuomintang re-
@Mince the outbreak of the China hostilities, specie holdings abroad
decreased until it totalled only $250,- Chiang have steadily 000,000 in Shanghai dollars at the end last year," the spokesman the eight months that have since then, what little remained must be almost exhausted," he declared. 'Fa Pi, or the so-called Chinese' national currency, is now doomed, This can be proved by the sudden suspension of service by the on its foreign loans, they have On Verge of Destruction "Needless to say, this is a hard blow to the Chiang Kai-shek regime, and thus the foreign exchange of the so-called Chinese national currency stands on the verge of complete destruction.
"This no doubt accounts for the recent establishment of the present the British Government for fa pi' (The present amount of the Chinese national currency. in circulation in the interior of China is estimated roughly at $1,700,- 000,000.
"China, however, has no specie, no foreign trade. and no credit guarantee in this circulation. Therefore, the present offer by the British Government for stabilizing Chinese currency is most welcome to the Chiang Kaishek regime as a glass of water would be to one dying of thirst.
"What great benefit can the Chiang Kai-shek regime hope to derive out of this small amount? Weakening of the so-called national currency of the Chiang regime has been caused mostly by a series of military reverses which have resulted in the loss of vitally important centres of political, military, and. economic activities. Therefore, the legal tender of the Kuomintang Government is doomed unless a miracle happens.
"We Need Hardly Trouble"
"Any financial assistance to stabil liza it at this juncture would be nothing but camphor injection to a dying man.
We need hardly trouble to take it up seriously.
"As has been stated by Sir John Simon, Chancellor of the Exchequer, stabilization of the so-called Chinese national currency is a vital problem in the British economic attitude toward China and will be of great help to British enterprises and trade fu China.
"The British Government then should, by all means, have a clear insight into the general trend of affairs in East Asia, and also should give up its policy of supporting the old Chinese national currency fa pi.' Instead, she should help the new currency, thus contributing to the stabilization of the latter.
"Should Britain decide to do so she would find we firmly believe, the transfer from cld to new currency not difficult at all.
British Motives Queried "What is most important is the motive of the British Government in its effort to stabilize the so-called national currency of the Chiang regime. lared policy of the Bri tish Government toward East Asia is based on trying, by all means, to recover the status quo ante. The British Government, by means of speeches in Parliament by the Premier and the Chancellor of the Exchequer, more than once have made clear its intention to render economic and financial help to the Chiang Kai-shek regime.
"The present case, likewise, must be regarded as ancther embodiment of the same British policy. Ah this is plainly against the general trend of affairs in East Asia.
"I hope it will not be very long before far-sighted British statesmen realize their ' mistaken _policy."—
Domei.
Text read from the printed page and cleaned; old type leaves the occasional error.