Future developments will deter mine whether Japdn will transfer her standing army in Japan to China and Manchoukuo, It-Gen. Seishiro Htagaki, War MBinister, declared the House of Representatives today while discussing the additional military expenditures listed in the extraordinary budget allotments.
Refusing to elaborate on the statement, Gen, itagaki replied in the negative when Mr. Tanco Miyazawa, of the Minseito, asked if military expenditure will decrease afier' the next fiscal year. He maintained that the development of circumstances on the fronts should be taken into consideration when compiling annual budgetary estimates.
The War Minister revealed that, in making the additional budgetary allotment, "new circumstances Soviet Russia" were considered i the formulation of a six-year armament programme, Remarking that the Manchuria Heavy Industry Company has begun the manufacture of aeroplanes, It. Gen. Tagaki said, "In order to effect armament expansion, increase of productivity should" be enforced. These two will be advanced side by side:
Questioned as to how the addition al military expenditures of the extraordinary "budget appropriations for the coming year are related to the "new circumstances in Britain and America," Admiral Mitsumasa Yonai, Navy Minister, stated that "military plans for the coming fiscal year have Been made without. any relation to the London "Disarmament Treaties, which are not binding upon Japan's armaments for next year. Additional military expenditures for the coming fiscal year are a part of armament expenses for @ few years to come Megemony Pacific To gain hegemony in the Pacific, Japan's armaments have been determined on "a sliding scale, in proportion with a Power which main-fains the largest naval force in the Pacific" the Navy Minister declared.
Replying to Mr. Miyazawa as. whether the Naval Minister considered it necessary to improve Japan's relations with other Powers to make Japan's armaments more effective, Admiral Yonai commented, "The construction of a new order in East Asia uppermost in the minds of Japan-objective should advance toese Navy authorities, To attain this ward it despite international conflicts Japanese Naval Rearmament The five-year Naval rearmament programme, revealed with the introduction of supplementary estimates to the Diet, calls for the expenditure of '¥.1,094,000,000 to be spread over five years and, in the case of shipbuilding, over six years.
The initial "outlay for the next Ascal year will amount to ¥.172,808,000. Seventy per cent, of the ¥.1,694,000,000, namely ¥.1,205,000,000, is ear-marked as appropriations towards building new vessels, which, added to the apins already approved by the Diet towards shipbuilding, works out 1899 ¥20904000 1941 Y.s04.s8.000 Yor "Seseodoe 1912" Saates.000
The programme also calls for an expenditure of ¥.300,000,000 for expansion of the Air Force.
'A further sum of ¥.1,205,780,000 to be spread over, six years, is car-
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