The Waterbury Democrat., 1938-11-03
Japanese Premier Asks
 World For ''New Deal"
Continued from Page D

We believe that the only means of breaking through the current crisis lies in perfecting these condi- tions."
 Thus the government statement o1 last night was extended to embrace a world policy in which Japan pre- sumably would be united firmly with the other "have not" nations, in- cluding her allies of the German Italian-Japanes "anti- Communist front, and at the same time would reserve for herself the future o1 vast China with it's untold wealth its 450,000,000 people and its 4,480 00C square miles of territory, regardless of such nations as Great Britain France and the United States, which have interests in China.
 Prince Konoye in his speech main- tained a close parallel with the gov ernment statement on Chiese policy
 He started out by saying that seven great Chinese cities had fallen tc Japan and that Japan held the key to the disposal of China.
 Development, Not Ruin
 However, Japan desires the de- velopment, not the ruin; coopera- tion with, not the conquest of China," Prince Konoye continued "She desires to build a stabilized Far East with the cooperation of the Chinese people, who have now awakened to the need for self de- termination as an oriental race.
 "No country exceeds Japan in de- string the perfection of China as an independent state, and recognition of China's race passion"
 He then said that Japan and Manchukuo were closely related and must work closely on their com- mon mission toward establishment of peace and order in the Far East through displaying their own indi- viduality.
 Paralleling the government state ment, he said that China had been lax in its policies and had per- mitted the infiltration of Com munism.
 He repeated the governments statements affirmation that Japan, Manchukuo and China must unite against Communism.
 Strike at Kai-Shek
 Then referring directly to Gen. eralissimo Chiang Kai Shek, whom the government regards as its arch enemy among Chinese leaders, Prince Konoye said that Chiang's crimes were heavy and never would be atoned even in the event that he removed himself from the Chi nese picture.
 Chiang did not repent, Prince Konoye said, but still sacrificed the Chinese people and continued bluff fling in an effort to save his life.
 Tn. the event that Chiang Kali Shek does not change his attitude, it is possible that hostilities will be extended to southwestern and northwestern China," the premier warned.
 He said it was absolutely neces- sary to crush Chiang.
 The fall of Hankow, Prince Kon- oye said, did not end the situat tion. He urged the Japanese nation to continue its efforts.
 Other Powers Must Understand
 Then in ending, he said that other powers should clearly understand the new situation in the Far East.
 If anything more were needed to the world importance of the government statement and the speech of Prince Konoye it was that the government arranged for Finance Minister Seihin Ikeda, one of the great financial figures of the country, to make a supplementary statement.
 In this statement, Ikeda was ex- pected to explain Japan's ideas on Japanese -Manchukuan- Chinese CO., in exploiting the natural resources of east Asia resources