"It is a source of profound satisfaction to both countries that the so-called peace and national salvation movement is now well under way and that a central Chinese government under the leadership of Mr. Wang Ching-wel is to be established in the near future. With regard to Our attitude towards the proposed new government, we intend to continue the declared policy of the previous Cabinet. That is to say, we shall do all in our power to assist its formation and growth, since its aims are largely in accord with our own.
"In connection with a new order in East Asia, I should like to add that although there are some who suspect Japan of the intention to eliminate the rights and interests of third Powers in China, the Japanese Government, as has been repeatedly en-undated, have absolutely no desire to do away with the rights and interests vf third Powers in China. We are, in fact, anxious to see the development of China's trade with other Powers and welcome foreign investment in China as long as they are of a purely economic character. "And that, I am confident, is also the wish of the new central government of China about to be established.
"There will at first, owing to the fact that military operations are still being carried out, perforce be restrictions of one kind or another, but these restrictions will be modified or removed as soon as local conditions are restored to normal, Manchoukuo Progress "Manchoukuo, to which our country is bound by neighbour ly and' inseparable ties of relationship, having made swift and splendid progress, is now ready to emerge as a great Power of East Asia, a fact which is most gratifying for the sake of general peace and prosperity in this part of the globe.
"The Japanese Government always desired to adjust relations with the (Continued on page 8, col. 1) necessary commodities as rice, and the suitable distribution of them with the current purpose of accom-pushing the unprecedented task in Japan's history,"
Reviewing the international situa-the Premier asserted he said, the Government could not easily predict what changes would be made in the future.
"In view of these circumstances, Japan will stick to the principle already adopted: that she will not become involved in the European conflict, but will drive for the disposal of the China conflict, "In the relations with other powers, Japan will definitely take an independent. standpoint of its own, and effect a readjustment of relations with them.
"As for the situation that may ensue from the European war, Japan will cope with each problem in accordance with such policies."
Affairs in China Turning to. affairs in China, Admiral Yonai declared that "Japan already has determined her fundament tal and unchangeable policies, and the Government in accordance with these policies, wiin firm determination, and in consideration of internal and external trends, will resort to all possible means and devote its active en-orgies for the settlement of the current conflict, "With the progress of the China affair," he continued, "there has come to prevail an atmosphere for peace and national salvation all over China, "In the near future there will be established a new Central Government of China with Mr. Wang Ching. wei as the leading figure, "Japan is prepared to give its whole-hearted support towards the smooth development of this new Government," the Premier assured.
Text read from the printed page and cleaned; old type leaves the occasional error.