Gen, Abe succeeded in organizing his Government in one day, the Ministers being inducted into' office on August 20, With the settlement of the China Affair os its cardinal policy, the new Government launched into is task with vigour, presaging well for its success.
On September 12, the creation of the "Headquarters of the Japanese Expeditionary Fores to China was announced, while three days later, five months of sanguinary fighting on the border of Manchoukuo and Outer Mongolia was brought to an end by truce negotiated in Moscow between Mr, Shigenori Togo, Japanese Ambassador, and M. V1. Molotoff, Soviet Foreign Commissar.
The outbreak of war in Europe on September 3, caused the Government to' impose stringent regulations on stock market transactions, while commodity prices, transportation and storage "charges, rents, salaries, wages, insurance "rates and process-Ing charges were "freezed" at levels prevailing on September 18 to prevent war" boom" inflation.
American-Japanese relations came into the. limelight when Gen, Abe asked Admiral Kichisaburo Nomura, retired, to resign from his post as president of the Peers" School to as-ume the portfolio of Foreign Affairs. Admiral Nomura, who took the post on September 25, was chosen avowedly Because of his wide circle of friends in the United States, where had resided for many years, while fon duty with the Japanese Embassy in Washingt Attention was further drawn to the strained relations between Japan and the United States on October 19 when Mr. Joseph C. Grew, American Ambassador, delivered' 2 "from the horse's mouth" address giving his im-
Text read from the printed page and cleaned; old type leaves the occasional error.