The Archive · 1940

Depends on New Regime

"Disposal of the special account of extraordinary military expenditure must be considered according to the conditions under which Japan will ce-operate with -the- proposed new central government in China after its formation.

"It depends, for instance, on a decision as to whether or not expenses for stationing military forces in China fu the future should be defrayed from the special account. However, the possibility cannot entirely be ruled out that the special account may be disposed of before the termination of the China Incident.

"When the proposed new central regime of China is developed perfectly, and becomes able to maintain peace and order and to take care of its national defence, it will no be necessary for Japan to assist it.

"In the transitory period, however, Japanese aid will be necessary, and therefore the State expenditure of Japan cannot be reduced easily.

Text read from the printed page and cleaned; old type leaves the occasional error.

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