Evening star., 1937-01-10
Continued From First Page.)

under a billion yen that the new
budget entails Is certain to bring in.
flation, in the opinion of Japan''
financial world. The proposed export
taxes are believed likely to prove
detrimental to foreign commerce
while tariff increases can serve only
to raise prices of all imported goods
The finance minister, who ha.
stated that he sought to enact a
''semi-wartime economy" wishes tt
organize an economic. general stat
that would give him almost as com.
plete control OF business and in.
dustry as is enjoyed by Signor Musso-
lini in Italy. He would also have
legislation enacted placing private
banks, insurance companies and al
forms of investment institutions sc
firmly under his power that he could
dictate the manner in which almost
every penny in Japan would be in
vested. So much opposition has al
ready been voiced to these two latter
measures that it is doubtful whether
the finance minister will have the
courage to push them. but he may
try instead to accomplish very much
the same end through existing laws
and institutions.
Army Plans Alterations.
The army, finding a recalcitrant
and militantly opposed Diet on its
hands, is working out plans for al
terationS in the governmental struc-
ture Of the empire that would make
the Diet purely advisory In nature,
shorn Of all real power 1t would
also make it impossible for the mem
Der Of any political party to become
a cabinet minister.
In lieu Of the present government
as the executive and policy-formulat-
ing body in the nation, there would
be set up sort Of super-government
Of ministers without portfolio, and
the army would see to it that these
ministers were in full sympathy with
the Fascist ideas Of the military.
This Is the situation confronting
Japan as the Seventieth session of
the Imperial japanese Diet convenes.
And as Japan moves in one direction
or the other within the months i'm
med.ately ahead will it be possible to
read its future? Either it must go
Fascist, or it must reverse this trend
without equivocation.
The issue is steadily becoming more
clear-cut between the pro and anti
Fascist elements in Japan, which has
now become the major issue of the
empire and the outcome of which dur
ing 1887 will have a direct bearing on
the whole world situation. AS the
struggle progresses. the entire nation
will find itself divided into these two
opposing camps. The convening of
the Diet for business toward the end
of January will bring the combat, al
ready well under way, even further
into the open.
Two Schools Of Thought.
There are two schools of political
thought at work in Japan at present
which are utterly incompatible with
each other. One is the militaristic
school, which believes Japan must
adopt and model to its own needs the
government processes now in vogue
in Germany and Italy; the other be-
lieves the only salvation for the ma
ton lies in a return to the practices
Of the great democratic powers. such
as the United States and the British
Empire, always, however, leaving the
Japanese throne in its present SUI
preme position. Democracy under the
throne versus Fascist military autoc-
racy under the throne is the issue.
The complexities Of the situation
become relatively simple when dis
sected and examined. There has al
ways been contest among the three
major working forces in the Japanese
political body for power under the
throne. Ever since the Emperor
Meiji granted the nation a constitu-
ton. the bureaucrats, the army
coupled with the navy and the po-
litical parties have striven among
themselves for this power. The con-
tinental policy of the last five years
and more has found the army in COM
mand, but the abortive military re-
volt of last February weakened its
hold greatly, and the conclusion of
the theological pact with Germany
threatens now to destroy it complete
ly. Added to this is the failure of the
army's policy in China. BY signing
that pact, the bitter fruits Of which
Toxic already has begun to reap, the
Democratic Fascist conflict was pre-
cipitated.
Outstanding in the Fascist camp Is
the japanese military organization,
but even it is divided within itself.
The younger element, fiery and fanat-
ical, would go the whole way and
make Of the empire a totalitarian
state. The more conservative ele-
ment, which is the group actually in
power, Is more cautious and less pos
tive. 1t does not know exactly what
course to follow, and so. by virtue OF
laiSsez-faire, is being led further and
further in the direction of fascism.
Bureaucrats With Army.
Allied with the army in these views
are the so-called young bureaucrats
They correspond to the younger ele-
ment in the army, but are much bet
ter informed on world conditions, on
economics, on politics and on affairs
in general. Their outstanding leader
is Shigeru Yoshida (not the Japanese
Ambassador to London of the same
name), who recently resigned as d.
rector of the Cabinet Inquiry Bureau.
In that position he prepared most of
the data which went before the cab
met, and he saw to it that it was pre-
pared to his liking.
It was Yoshida who worked out the
plan for a super er-government of min
isters without portfolio, the plan for
shearing the Diet of all substantial
power, the plan for making the polit-
ical parties political nonentities. He
would create a general staff for gov
erning the country independent Of
rartv nolitics. and a general staff for