"There have for some time been persistent and cumulative reports, which, in the absence of explicit assurances from the Japanese Government that they are ill-founded, must be deemed to be authentic, that Japan has undertaken, or intends to undertake, the construction of capital ships and cruisers not in conformity with ihe above-mentioned limits Observers pointed out here to-day that the note handed Tokyo by the United States yesterday was the strongest diplomatic communication issued by the United States since the Great War. The note, diplomatic circles here believed, was another clear indication of strained relations between the United States and Japan resulting from Japanese disregard of American rights in China. Failure of Japanese troops in China to comply with assurances given the United States by Tokyo in settlement of the Panay Incident of last December also was believed to have heightened American-Japanese tension because of the distrust of Japanese good faith in Government circles here.
The Government's note to Japan, it was believed, would bring no definite reply from Japanese naval officials and would not halt the naval building race. Its effect is expected to be considerable in the United States, however, where Navy Department requests for naval construction
Text read from the printed page and cleaned; old type leaves the occasional error.