Tokyo, Jan. 10.
After the conclusion of the extraordinary Cabinet meeting this: ing, which was held to take a formal yesterday, the Premier, Konoye, proceeded to the Palace at 4 o'clock this afternoon.
He reported to the Emperor fundamental policies towards. 4
"The letter suggests that since the Secretary of the Council and the view that Japan's only course was to Commissioner of Police draw yearly: resort to prolonged hostilities in order salaries of "$35,000" and "$40,000," not. to obtain her original objective—the to mention house and passage allow- tota] elimination of the anti-Japanese ances, they would not be underpaid|'régime in China, if their salaries were halved. Noj. The Premier also obtained the sanc-mention is made of Japanese em-ition of the Throne for the opening of ployees, but "the pay of those Chinese|a most important Imperial Confer-and foreign employees of the S.M.C. ence, in the presence of the Emperor, who draw more than $500 should also|at the Imperial Palace to-morrow be reduced by 25 per cent. in order afternoon. The conference is "de-to reduce expenses." signed to carry out the Government's.
"Qn the other hand," continues thè] policies towards China to meet the letter, finally getting to the point, "the mew situation." general municipal rates should A free and frank exchange of v remitted until the conckision of the} took place at yesterday of hostilities."
The letter provides a novel reason for this statement, namely "that the authorities of the Settlement have reled the safety of the lives of inese residents and their property. Instead of protecting them, the authorities have allowed the Japanese militarists to use the Settlement as an armi, avar and air base to invade "How can we continue to bear the burden of taxes?" the letter ask somewhat plaintively, and suggests that the local British community alone should defray the operating costs of running the Settlement. "It is un> necessary for them to ask the Chinese residents to pay the rates to meet the expenditure." The chop of the alleged organization ends the letter at this point.
Text read from the printed page and cleaned; old type leaves the occasional error.