Japan's - New Government The political problem in Japan has been
solved, but what the solution portends, or who really rules Japan, it is hard to know. Mr. Hirota has formed his Govern- ment, meeting the Army's objections to his proposed Foreign Minister by becoming Foreign Minister himself. His Cabinet consists in the main of officials rather than politicians, and the Finance Minister has already given- notice that he will reverse the prudent policy of his predecessor, the murdered Mr. Takahashi, and increase expenditure on schemes of expansion in Manchukuo. Increased taxation, he observes optimistically, will be borne cheerfully in the interests of national co-operation. To that extent the Army would appear to have had its way, but simultaneously all the' most important Generals, including General Araki and General Minami, the Military Governor of Manchukuo, have resigned, together with a large number of officers of lesser rank. Mr. Hirota has- thrown out the idea of discussions between Japan, Great Britain and the United States on economic problems, and the allocation of markets. No suggestio.. of that kind should be lightly dismissed, but those very problems may have to be discussed at an early date not on a TI.r_e- Power but on a universal scale.
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