21 MAY 1937, Page 2

Japan and China In a speech explaining his foreign policy

to the Prefectural Governors on Monday, Mr. Sato, the Japanese Foreign Minister, once again insisted on Japan's pacific intentions towards China. The hostility which Japan meets in China, said Mr. Sato, is due to a misconception of her attitude ; what Japan wants is cultural and economic co-operation. The Chinese, remembering Manchukuo, can hardly be . blamed if they receive such declarations with scepticism ; yet it would be a mistake to reject them out of hand. Japan's military adventures have brought her no return commensurate with their enormous cost ; and to continue in them is hardly within her means. They have prevented any profitable development of Sino-Japanese trade, which potentially is of far greater value to Japan than the conquest of Manchukuo or of North China. Equally, the policy of conquest threatens to involve her in hopeless conflict with the other Pacific Powers. There is no progress for Japan on these lines, and Mr. Sato's statement may well be an admission that such is the case. But if friendly relations with China, which mean also friendly relations with Great Britain, which Mi. Sato desires, are to be possible, Japan must recognise that her " special interests " in China are commercial and not military ; and it is doubtful whether General Hayashi, or the Army, is capable of such a change of heart and of mind. * * * *