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6.
Little has yet been revealed as to concrete proposals for the liaison offices in China, and it is probable that some further time will elapse before they are actually established. The existing military and naval special service sections in China have evidently resented strongly the impending usurpation of their functions by the council, and this fact is held to have been partly responsible for the delay in the promulgation of the ordinance, which has occurred since General Ugaki's resignation and the final preparation of the compromise plan early in October. The retention by the Japanese commanders on the spot of responsibility in matters connected with the maintenance of order doubtless represents a concession to their views. Moreover, it is hoped that the presence in the council of General Yanagawa, one of the heroes of the present campaign, will assist in smoothing over friction of this kind, while it may be supposed that General Sugiyama discussed this problem fully before his recent departure from Tokyo to assume supreme command of the Japanese forces in North China. 7. It is interesting to note the influence which the development of the Government's policy, as expounded in successive statements, has exercised upon the evolution of the new organisation. The name by which it has been known has also udergone corresponding changes. Originally, as the Central Organ for China Affairs, it was intended to do little more than supervise the two China Development Companies and other similar enterprises. By the 18th August last, when the chief secretary of the Cabinet announced the Government's policy to the press. new régimes had been established in Peking, Nanking and Inner Mongolia, and, as the China Council, the projected organisation was to assume the executive functions of co-ordinating and encouraging the development of these administrations. Finally, after the announcement of the
new order" policy on the 3rd November, it has become the machinery responsible for the translation of this policy into action.
8. The main charge of the council, as now constituted, will be economic reconstruction in the occupied areas of China as a means to the restoration of order. Its role will thus be similar to that performed by the General Staff of the Kwantung Army in Manchuria in the early years of the pacification of that country. The centralisation of control should, in theory, be a salutary develop- ment, but it remains to be seen how far the council will prove successful in bringing the local military and naval commanders in China into line with policies framed in Tokyo.
I have, &c.
R. L. CRAIGIE.
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Art. 3. In addition to the officials enumerated in the preceding article, the Cabinet may, upon the recommendation of the Prime Minister, appoint officers from among the senior officials of the departments concerned.
Art. 4-In the Asia Development Council, there shall be the president's secretariat and the following three departments:
Political Affairs Department,
Economics Department,
Cultural Department.
There may also be established in the Asia Development Council a technical department.
The Prime Minister shall determine the distribution of functions between the president's secretariat and the various departments.
Art. 5.-A liaison committee shall be attached to the Asia Development Council to maintain contact between the various Government departments con- cerned in important matters connected with the affairs enumerated in article 1. The director-general shall be chairman of the Liaison Committee, the members of which shall be appointed from among the senior officials of the Government departments concerned upon the recommendation of the Prime Minister.
Art. 6. The Prime Minister shall be president, and he shall direct the affairs of the council, supervise the officials of the various departments and be responsible for the appointment and retirement of subordinate officials.
Art. 7. The Ministers for Foreign Affairs, Finance, War and Marine shall be vice-presidents and they shall assist the president in his functions.
Art. 8. The director-general shall assist the president and the vice- presidents in directing the affairs of the council.
Articles 9 to 19.[Relating to subordinate staff.]
Art. 20.-Liaison offices shall be established under the Asia Development Council at necessary places in accordance with the terms of a separate ordinance.
This ordinance shall enter into force from the date of promulgation.
Enclosure.
Regulations concerning the Organisation of the Asia Development Council as promulgated in the Official Gazette on December 16, 1938.
Article 1.-For the duration of the China incident, there shall be established an Asia Development Council under the supervision of the Prime Minister, which shall be charged with the following business. Matters connected with relations with foreign Powers shall, however, be excluded:---
(1) Political, economic and cultural affairs to be dealt with in China in the course of the China incident.
(2) Framing of the various policies connected with the matters enumerated in the foregoing paragraph.
(3) Supervision of the business of companies established under special legisla- tion for the conduct of enterprises in China and the control of the business in China of persons conducting enterprises in that country.
(4) Maintenance of co-ordination between the administrative functions relating to China of the various Government departments.
Art. 2. The following officials shall be appointed to serve in the Asia Development Council:-
1 president,
4 vice-presidents,
1 director-general,
3 heads of departments, and
121 others.
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