On Tuesday the Japanese Premier, the Marquis Salmi, speaking in
the Diet, made an important declaration of policy. He began by expressing his great satisfaction with the English Alliance, which was growing in strength and solidity. Reis.' tions with Russia were also on a satisfactory footing, and the various questions in connexion with the Portsmouth Treaty were being settled in a spirit of mutual conciliation. As to the San Francisco difficulty, Japan had taken all proper measures, and the American Government were doing their best to arrive at a solution. The Japanese Resident-General was making great progress with the reconstruction of Korea, while in Manchuria the way had been prepared for a speedy opening by China of the cities and towns to international commerce. In matters of home policy, the Government had done much for education, for the improvement of communica- tions and the development of the national resources, and the military and naval armaments, which had been reduced by the war, were being restored to full efficiency. The Premier's speech, coupled with the Budget figures, shows that Japan has made an amazing recovery from the strain of her great war.
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