The declaration made before the Lower House of the Diet in Tokyo by the Japanese Foreign Minister, Mr. Koki Hirota, that Japan is determined to colicer an indemnity for the "China Incident" whether the—nationalist government is able to pay such an indemnor not, raises a delicate and somewhat paradoxical' issue. Japanese military' commanders have repeatedly declared their intention to wipe out the government of General Chiang Kai-shek and to establish in its place government "friendly" to the Japanese. They have succeeded to a limited extent in. dol this in some parts of the country, and in [the meanwhile have withdrawn Fecognition from the government against whom they are fighting and from whom Tokyo intends collect the indemnity. If this government is fo be destroyed, can it be asked to pay the indemnity? Or alternatively, can the government set up in Peiping under the inspiration of the Japanese be.cxpected to pay for the actions of the Kuomintang government and stil remain, "friendly" to Japan? The answer both questions would seem to be in the negative. "Mr. Hirota's hint that indemnities can be paid in kind as well ax in cash does rer, To take produce—coal, iron, or anything else—of a "friendly" government in recompense. for
would almost, certainly have the effect losses caused by the acts of a unfriendly one changing the "friendly" attitude into bitter hostility. Tt is a dilemma the solu which will be watched with interest.
Text read from the printed page and cleaned; old type leaves the occasional error.