CO129-575-3 Japanese affairs 2-1-1939 - 21-12-1939 — Page 24

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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task an easy one. I have referred in a separate despatch (No. 660 of the 5th October) to a difference of opinion between the Prime Minister and the Privy Council in regard to the Government's action in promulgating, without prior reference to that body, an Imperial Ordinance giving increased authority to the Prime Minister in connexion with the enforcement of the National General Mobilisation Law. The possibility of difficulties in connexion with this matter has for the time being disappeared, but there are several important projects under consideration by the Government which will require to be submitted to the Privy Council, and it is to be feared that the slight which some at least of the members consider has been put upon the Council by the Government's action in this respect will tell against the Prime Minister and his colleagues in any future dealings they may have with it.

This

7. Moreover, this is not the only matter in regard to which the Government has already experienced, or is experiencing, difficulty. As your Lordship is aware, General Abe, with a view to effecting a reduction in the membership of his Cabinet, decided in certain cases to combine two Departments under a single Minister, and in pursuance of this arrangement Admiral Godo assumed the two portfolios of Agriculture and Forestry and Commerce and Industry. There was at the time some scepticism as to the wisdom of this course, as there has in the past been much friction between the two Departments, which were formed some years ago out of the former Ministry of Agriculture and Commerce. scepticism has already proved to be well founded, for serious differences of opinion have arisen in regard to the policy to be followed in certain matters by the Departments concerned, and Admiral Godo is being vigorously attacked by many important agricultural organisations on the ground that he has shown greater favour to schemes put forward by the Ministry of Commerce and Industry than to those put forward by the other Department over which he presides. admiral, who has previously held office as Minister of Commerce and Industry and has for some years been intimately connected with many important industrial undertakings, has stated that he is determined to retain both portfolios or to resign. But there is a strong feeling that he is not properly qualified to serve as Minister of Agriculture and Forestry, and a movement is on foot to force the Prime Minister to relieve him of his additional post and to appoint to the Ministry of Agriculture and Forestry a separate Minister, who will see that the require ments of that Department will receive adequate consideration. The outcome of the dispute is still uncertain, but the position is an embarrassing one for the Prime Minister.

The

8. There is, further, a prospect of serious friction in connexion with the proposal to establish a new Ministry of Trade, to which General Abe referred in his address to the prefectural Governors. This project is a legacy from previous Cabinets, though the matter has been shelved from time to time and was practically in abeyance at the time when Baron Hiranuma resigned. It has since, however, been revived, and, the Cabinet having approved in principle, a scheme was recently drawn up by the Planning Board. It calls, according to press reports, for the merger in one Department, and, either in whole or in part, of a number of Bureaux belonging to the Ministries of Finance, Commerce and Industry, Agri- culture and Forestry, Foreign Affairs and Overseas Affairs. But there has been considerable difficulty in drawing a clear line of demarcation between production and trade, and in defining the scope of jurisdiction as regards, for example, diplomacy and commerce. Moreover, it has been found difficult to reconcile the rival claims of the various Departments concerned, whose jurisdiction over certain matters is traditional. In fact, the problem presents many difficulties, and though it has now been announced that the Cabinet has agreed to adopt the scheme put forward by the Planning Board, it is certain that the necessary arrangements for putting it into effect cannot be made without further friction. There is, for example, such strong opposition to the scheme in the Ministry for Foreign Affairs that the Director of the Commercial Bureau, the greater part of which it is proposed to transfer to the new Ministry, has tendered his resigna- tion, while many of his staff are threatening to do the same. I shall not fail to report further in regard to this matter in due course; but, meanwhile, it is unfortunate that Admiral Nomura should have been faced so soon after his appointment with a departmental dispute of this nature, and much may depend on the manner in which it is handled.

I have, &c.

(For the Ambassador), J. L. DODDS.

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Enclosure 1.

Summary (taken from press reports) of an Address delivered by the Prime Minister at a Conference of Prefectural Governors on October 2, 1939. JAPAN at present has great problems to surmount before attaining its national objectives; but she is equal to the task and the Government is determined to cope with the present emergency. Discarding the spirit of liberalism and individualism, officials and people alike must be united: and the Government desires your understanding and co-operation in the urgent problems of the day. The international situation is complicated and delicate, and it is the duty of the Government to secure Japan's position on an independent basis and thereby increase her national prestige. The conclusion of the China incident," and the creation of a new order in East Asia, are the most pressing problems con- fronting the nation to-day, and it is necessary for the Government to concentrate its efforts upon the attainment of these objectives. The fundamental policy for dealing with the China incident has already been fixed, and there can be

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no change therein. Changes of Cabinet make no difference. The power of the anti-Japanese régime is gradually declining, and a new Central Government will shortly be established. The Government will assist in its establishment and co-operate with it with a view to furthering a settlement of the "incident." However, the incident will not end with the establishment of a new Government or with the collapse of the anti-Japanese régime. What Japan desires is not only the restoration of peace, but also the construction of a new order in East Asia by means of unity between Japan and Manchukuo and a new relationship between Japan and China. Her principal object is to ensure the lasting stability of East Asia.

The Government has stated its intention to avoid being involved in the European war and its determination to improve the situation in the Far East. This, however, does not mean that Japan will stand aloof from the rest of the world; she is ready to co-operate with those countries which understand her position in East Asia; but she is determined to deal resolutely with those which are not prepared to understand Japan's true intention. It is necessary to watch the attitude of the Powers in order to prevent anything that will obstruct the construction of a new order in East Asia, and at the same time to replenish armaments and cultivate Japan's national strength. The economic structure of the country must also be strengthened, so that it is imperative to expedite the materialisation of the Government's programme for increasing production and establishing a comprehensive economic scheme for Japan, Manchukuo and China. With this end in view, the Government is planning to create a Ministry of Trade and to strengthen other trade organisations. The Government also intends to invoke additional articles of the National General Mobilisation Law with a view to reorganising the industrial and economic systems on a war footing. In this connexion the principal problem is to devise measures to prevent prices from rising and to eliminate speculation. Further economies in all directions will be required of the whole nation.

Enclosure 2.

Summary of Address delivered by the Minister for Foreign Affairs at a Conference of Prefectural Governors on October 2, 1939. (Translated from a Summary (in Japanese) issued by the Information Bureau of the Ministry for Foreign Affairs.)

AS explained by Mr. Arita at the Conference of Prefectural Governors held in May last, the Government had adopted the policy of strengthening the Anti-Comintern Pact between Japan, Germany and Italy and was engaged in negotiations with those two countries. Subsequently, however, the situation in Europe, centring round the problem of Danzig, underwent a sudden change as a result of the conclusion on the 24th August of a non-aggression agreement between Germany and the Soviet Union. On account of this agreement, the negotiations in question were suspended.

The situation in Europe went from bad to worse after the conclusion of the German-Soviet Non-Aggression Agreement, and on the 31st August hostilities

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