Tokyo, Feb. 16.
Questioned regarding the new national notes issued by the Central Reserve Bank of China, Mr. Isao Kawada, Finance Minister, at the general budgetary meeting of the House of Representatives yesterday replied that "the new legal tender of China issued by the Central Reserve Bank of China is provided with ample reserve."
The Finance Minister stressed that Japan was fully determined to extend complete support to the new Chinese money and that while it was at present at par with the Chungking "Fapi" it would seem necessary to cut-off its present relation to the latter it "Fapi" follows a further downward trend.
Asked whether it was contemplated to cut off the new money from "Fapi," Mr. Kawada replied that he was not in a position to express opinions as the bank itself belonged to China.
The Finance Minister declared that "according to Mr. Chow Forhai, Finance Minister of the National Government, concurrently governor of the Central Reserve Bank, it is the intention to peg the new notes at par with Chungking money due to the tremendous loss the people would suffer if any change were made. ment' to the British, I need cite only one example. Last December we had on order certain bombers of the B-type, the first deliveries of which were expected to begin that month: We consented to defer these des liveries to us in order that the manufacturer might instead make delivery to the British of some of the same type of planes, thus postponing our own deliveries for several months.
As consideration for the transaction we received outright from the British a large number of aircraft engines owned by them and urgently needed by our air corps.
Text read from the printed page and cleaned; old type leaves the occasional error.