5. The central government will seek to unify the Chinese currency System and establish a new Central Bank. The Japanese Government as-fumes that the projected central gov. ernment will not absorb the Federal Reserve Bank of China in view of its special mission, '6. The Japanese Government does jot intend at present to change the lation of the Japanese yen note and yuan of the Federal Reserve nese Government wilt adopt, prudent attitude toward "sap sot the Chungking Government, avoiding any radical change kely "to. affect the economic life of the Chinese.
The Japanese, Government is determined to make the Chit tunderatand Cully the "tol on which Japan is to conclude p With China, The terms are based on the Konoye Statement issued In De-comber, 1938, calling for the so-called three prinedples, namely, joint op: position to the Comintern, economic ce-operation between China and Japan, and no territorial or indemity) demands by. Japa 9%. "The Chungking Government is treading the path of decay owing the raising' of a strong party advocate ing peace, intensification of friction Between the Chungking Government and the communists, uneasiness ce terning the future of the Tegal euro veney oF "fai." shortage of materials and decrease' in its Feventie from customs duties, 'The military power Of the Chinese forces has been so weakened the the strength' of one Chinese division is equal to Urat of (talion of Japanese troops." inese Government be-
Japan's Economic China \Poliey Tokyo, Feb. The China Affairs Board has tal down a set of principles for deter mining what types of Japanese bus ness and industrial enterprises will be allowed to operate in China, according to the "Asahi Shimbur 'AS a general rule, the paper points out, the Board will not permit. the selting up of any business or commercial enterprise which willie dependent on Japan for its raw mat enols. This is believed to be a measure for conserving Japan's raw materials, such as coal and copper. for domestic uso in order to prevent far as possible such coal shortages fas the one at present existing in Japan apanese Indust.falists in China, the Board will not permit Japanese to set up enterprises in China of types already in operation in Japan, New enterprises will be limited to those unlikely to compete with Japanese Industries. "Nevertheless, it docs. not seem to be suggested specifically that the Japanese silk and cotton textile Industries should not expand in China. where they are already an important Ihetor.
Shanghai Industriat Zone understood that factories of Jany enterprises to be operated in Central China in the future are to be built inthe industrial" zone specified in the new city plan of The China Affairs Board has also decided that care must be exercised see that the advance of Japanese asinessmen into China "does not lash with Chinese interests" in that territory.
'The "Asahi Shimbun" learns that the North China Development Company' plans to shift the main offices of the company to Peiping and Kalyan, instead of Tokyo. Should the plan, worked out by the company's president, Mr. Okinori Kayo, trid reportedly approved by the China Affairs Board, be carried out, it is stood that the president. the vice-president, the directors of the company and approximately two-thirds of the 200 employees of the office. will be transferred 10 ing and Kalgan.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.