A Cabinet crisis, however, appea inevitable on Monday when Gen. Shunroku Hata, Minister of War, was reported to have urged Gen. Abe to give serious consideration to a possible resignation of the entire Government, Events moved rapidly thereafter, leading up to today's action. In the last two weeks of its existence, the outgoing Cabinet passed upon the basic formula for æ settlement of the China conflict by the conclusion of peace with a new Central Government of China to be, created with Mr. Wang Ching-wei as its central figure—With two Governments come and gone in one year, Japanese industrial, commercial, financial, and agricultural circles today looked' forward to the creation of a strong Cabinet with a promise of longevity. Unanimous was the demand for the reform of bureaucratic economic control by allowing the people to have a greater voice in the conduct of planned econorhy.
Because of the prevailing conditions at hoře dhd abroad, the need of control was conceded.' However, it was pointed out, the manner in which the bureaucrats had managed matters had given rise to unnecessary friction and confusion. Many mak shift measures had been adopted by officialdom, who had failed to lay down far-sighted, long-range policies whereby they could have secured the ce-operation of the people in carrying out their objectives.
Text read from the printed page and cleaned; old type leaves the occasional error.