Tokyo, July 25.
R, Tetsuji Kato, well-known Japanese economist, writing in the "Chugai Shogyo" remarks that the wheel of fate has caused the resignation of the Hiranuma and Yonai Cabinets on question of foreign policy. Now, he says, all the Japanese people have come to recognize the new concept of East Asia as exceeding Japan, Manchoukuo and China and including the South Seas ter~ ritories.
At the moment it is not yet clear whether Japan's southward policy will be carried out by, "economic and political development" or by more positive measures." Anyway, it. common knowledge that "Japan is not Going to preserve the status quo in {ts relation to the South Seas territories." This policy imgsies strength~ ening of the Axis. It is Britain, America and France who have been thinking of their political and economic interests in the Far East, not Germany and Italy, above all not Germany. "If we don't want to be confronted by the whole world" we must keep in close liaison with te Axis, says Mr. Kato, The writer warns the nation that! "we must guard against the optimistic theory that through unconditional junction with the axis the question the South Seas territories can be solved with the greatest of ease." Ideology in diplomacy "is next useless. "The German-Soviet pact is good example of realistic diplomacy.
Japan takes a strictly positive policy she may move towards war." Japan's policy, he continues, should ibe dependent "on her own strength not that of others. Also in pursuing southward policy, industrial ex-Pansion and the pushing of exports are essential factors. Further, the standard of living must be lowered.
Mr, Kato concludes by advising the pew Government that by easy going they will achieve nothing—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.