"So far og China is concerned, it is understood that the Japanese Govern= ment is to exercise control, at least for some tine, through the Asia Development Council in Tokyo, which is charged with the formulation and execution of the _poliey connected with political, economic and cultural affairs in. China, four Exeelicney's own communica tion to the press indicates that. the tri-partite combination is to form the single econontic unit and that econo= mie activities of other Powers are to be subjected to restrictions dictated by the requirements of national defence and the economic security of the proposed bloc.
"According, to Prince Konoye, has tilties in China are to continue until the present Chinese Government have Ween crushed or will consent to enter the proposed combination on Japanese terms. Chinn, he said, witl be required to conclude with' Japan #nti-Comintern agreement and Japanese troops are to be stationed at specified points in Chinese territory. for an indefinite period, presumably. 10 ensure that the Japanese conditions for the suspension of hostilities are observed.
"Moreover, His Excellency stated that the Inner Mongolian region must be designated as a special anti-Com-what is meant by this but, in the absence of fuller information, it can only be assumed that Inner Moniolia is to be subjected to uneven greater degree of Japanese military control than other parts. of China.
"His Majesty's Government are at a loss to understand how Prince Konoye's assurance that Japan seeks; no territory and. respects the sover= Clanty of China can be reconciled with the declared intention of the Japanese Government to compel the Chinese People, by u force of arms, to accept conditions involving the surrender of their political, economic and cultural life to Japanese control, the indefinite maintenance in China of considerable Japanese garrisons and the. virtual detachment. from China of the territory of Inner Mongolia, "For their part, His Majesty's Go ernment desire to make it clear that they are not prepared to accept or to recognize changes of the nature. in-Gicated, which are drought about b: force. "They intend to adhere to the Principles of the Nine Power Treaty And cannot agree to an. unilateral modification of its terms,
Text read from the printed page and cleaned; old type leaves the occasional error.