a Japan's New Cabinet The failure of General Ugaki to
form a Cabinet in Tokyo and the subsequent success of General Hayashi mark the end of the political crisis as a decisive victory for the Army. General Ugaki failed because the Army, which has to approve the appointment of War Minister in any Cabinet, declined to approve any of General Ugaki's nominees. General Hayashi, who was the commander of the force that seized Manchuria in 1981, is one in soul and spirit with the Army leaders. His Cabinet includes few well-known figures, but it is understood that the Foreign Minister will be either Mr. Saito, Ambassador in Washington, or Mr. Sato, Ambassador in Paris. Both are men with valuable diplomatic experi- ence, but the powers of the Foreign Office in Tokyo are very limited. A Cabinet having now been formed to the liking of the military, the problem of raising revenue to cover the military expenditure has to be faced afresh. It is a task which grows steadily more formidable as the army's demands grow, and the army is quite incapable of finding the solution itself. That is a job for the civilians, but it will not be surprising if General Hayashi's Cabinet falls, like its predecessor, on finance. That the Cabinet may succeed in reducing the military estimates is conceivable, but only just. The alternative is to lay still heavier burdens on the taxpayer or to borrow with the aid of the banks, which have facilitated more than enough loans already.
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