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sanctity with which tradition has invested the Emperor of Japan or the Chinese Emperor of pre-revolution days. A religion radiating from the person of the Emperor is probably out of the question. The Mongols, not to mention the Japanese, would scarcely take kindly to Confucianism as a State religion, and Shintoism, which is the State religion of Japan, could not logically be the State religion of independent Manchukuo.
75. Up to a point the Government is tolerant of all religions, and there has not yet been any systematic attempt to hinder missionary work. The danger-line is reached when zealous local officials demand attendance at wholly or semi- religious functions in front of local shrines. To the official mind attendance may seem the acid test as to whether adherence to the foreign religion is or is not compatible with loyalty to the State; to the mind of the convert it may savour of idolatry, particularly if he feels his spiritual head is in sympathy with his views. Fortunately, though I hear of friction at various centres, it has not up to the present developed into a serious issue.
76. In western districts, where the Mongols are in the majority, the authorities appear to be in sympathy with lamaism. Judging from local regulations for the running of Government-recognised primary schools by the lamas, their efforts are devoted to weaning the coming generation from the crass superstitions of the old, by giving the pupils if only a smattering of modern education and inculcating ideas of public duty.
77. In passing, it may be mentioned that from the start the Government has done its best to conciliate the Mongol population of Manchuria in order that their neighbours in Inner Mongolia may feel encouraged to throw in their lot with the new State.
(2) Teaching of Christianity.
78. Christian missionaries have cause for anxiety as to the future. In September 1938 a religious law was passed under which missionaries have to register, and they are required to obtain sanction for such acts as the opening and closing of churches and the appointment and dismissal of pastors. From the wording of the law it is clear that the authorities had Buddhist, Lama and Confucian temples in view in framing it. The representative of one mission was assured that, though it was necessary for foreign missionaries to comply, the Government had no intention of exercising rigid control in their case. This may be a promise, but it is certainly not a guarantee. Missionaries have cause, therefore, to fear that their activities may be circumscribed. They are considering at present whether to register or to risk not doing so.
79. There is also a growing difficulty in the case of mission schools. Missions are only too willing to conform to the Government curriculum, but certain of them wish it to be clear from their charter that the schools are to be run on Christian principles. By this they mean that they wish to retain freedom. of conscience in matters such as, e.g., attendance at shrines, in which conformity with the laws would involve the sacrifice of their religious principles. The authorities maintain that attendance at shrines on certain specified occasions is a matter of loyalty and has no religious significance. Certain missions accept this ruling and make no bones about attendance of their scholars or converts; others, again, reject the Government ruling and maintain that to attend would be idolatry.
X.-STATE FINANCE.
80. Preliminary estimates for the 1939 budget show an increase in ordinary revenue from 264 to 295 million yuan and in borrowing from 374 to 450 million yuan. The disproportion between actual revenue and borrowing is striking. It is presumably due to the demands of the five-year plan, but, until there has been time to study the budget in detail, it is better to reserve comment. One thing can be confidently stated: The economic chains binding Manchukuo to Japan are now so close that the finances of the former must stand or fall with those of the latter. By itself, Manchukuo's budgeting is startling. But if Japan is able to finance her until such time as a return may be expected on the present enormous outlay, then her methods of finance need not of themselves be considered unsound.
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