Evening star., 1936-05-31
BY WILFRID FLEISHER.

is a government Of renovation
= and reform. 1t was brought
into existence following the military
revolt in February, on one hand, to
restore order and stability and check
the agitation movement; on the other
hand. to provide program Of reforms
constituting a compromise between
the status existing previously and the
aims Of the revolutionists.
Koki Hirota, as premier, is therefore
called upon to steer q middle course
even more adroitly than he did in the
difficult post of foreign minister for
more than two years. When Prince
Saionji recommended Mr.. Hirota to
the Emperor for premier, it seems
likely that he intended to provide
check to the agitation Of the younger
officers and preserve what degree of
liberalism was still left in the gov
ernment, but 1t has been plain from
the time Mr.. Hirota undertook to form
his government that he would have to
act throughout in close cooperation
with the army.
The cabinets policy was set forth In
a formal declaration, the vague word
ing of which carried weight for those
who were able to perceive the deep
meaning underlying the wording The
essence Of the governments policy was
contained in two paragraphs, as fol-
lows:
THE first administrative principle
Is To emphasize the ideals on which
our nation was founded and to bring
about national unity, with all the peo-
pie cooperating as one man under
their sovereign, the Emperor. To make
manifest an unshakable conception of
the basic principle of the state is thus
the main objective of the government.
"All policies, foreign and domestic,
must be founded, needless to say, on
this principle. Particularly is it incum-
bent on the present government under
existing circumstances to renovate edu-
cation and culture, uphold the national
spirit, eliminate ideas incompatible
with national principles, and at all
times to preserve the integrity of the
constitution and the laws of the land"
Endorsement of National Policy"
This statement evidently was meant
as an Endorsement of the national
policy principle revolving about the
Emperor organ" theory of the famous
japanese scholar. DR.. Tatsukichi Mino-
be, on which the preceding Okada
government failed to declare itself
specifically enough for the wishes of
the military. The Okada cabinet was
compelled to issue series of three
statements on the national polity"
issue, discrediting the Minobe theory
which would make the Emperor a
mere organ" of the state, but which
| failed clearly to establish the govern
ment's own ideas. DR.. Minobe was shot
in the leg by a student agitator few
days before the military revolt broke
out last February.
The Hirota cabinets statement is
vague, but it sets forth that Ito make
manifest the unshakable conception
of the basic principle of the state is
the main objective of the government"
coupling this statement with an assur-
ance that constitutional government
was to be maintained. This assurance
is important, because 1t has been sus-
pected that some of the advocates of
the national polity" principle had in
mind that the government might be
exercised directly by the Emperor
without constitutional attributes, or to
put it more plainly, that they had
in mind the possibility of an eventual
military dictatorship under the
Emperor.
Aside from Qualification of the ma
tional polity" issue, Of which a good
deal more is destined to be heard in
the future, the new government has
so far turned its attention to strength
ening the national defense, reform of
taxation and revision of financial
policy, and In foreign affairs to what
has become known as "Japan's con-
tinental policy" namely, Japan's re-
lations with Russia and China on
the Asiatic mainland.
Army Expansion Agreed On.
No sooner had the new government
|
that Mr.. Hirota had agreed tacitly
with Gen. Terauchi before the gov
ernment was even established, upon
an army expansion program 10 cost
1000, ,000, 900 yen spread over the next
six years which would swell the army
budget by more than SOC, ,00O, 900 yen
annually.
The budget for the year 1936-1937,
as tentatively drafted for presentation
to the Diet, including two supplement
tary budgets, amounts to 2,315, $3.50, 600
yen, representing an increase of ST.
$50 900 yen over the Takahashi budget
formulated under the Okada govern
ment and an increase of 122,245,71
yen over last years budget, but the
bulk of the increased expenditure for
military purposes will not be included
until the budget for the following year
after the financial and taxation re-
forms have been effected.
Reversal Of the financial policy of
the late Mr.. Takahashi was indicated
from the day Dr.. Baba, former presi-
dent of the Hypothetic Bank, took
Office as finance minister. The Taxa
hashi policy was to curb military ex-
penditures as much as his influence
permitted, and to balance the budget
by the issuance of so-called red-ink
bonds to cover the budgetary deficit
of approximately one billion yen exist
ing for the last three years, bonds
which were absorbed by the banks and
leading induStrialiStS.
The policy Of Finance Minister Baba
appears to be to interpose no objection
to the large military expenditures, al
lowing the army and navy to obtain
whatever they demand and to meet
the deficit in the budget by increased
taxation and the issuance of more
bonds. Mr.. Takahashi aimed at grad
ually reducing the government deficit,
while DR.. Baba predicts that govern
anything against Great Britain, but
cannot have France weakened, while