WORLD JOURNEY

Japan 2 and sea voyage to Philippines

MARCH 1935

Mon March 4 - Lunch. Ito calling here 12.30 to Czecho, Kasomicho

22, Asabi, Roporf i, 2nd street to the left.

Shimaouchi

Lunch 12. 30 Kaikan floor.

Wed - lunch Imp Alanot, Hows

2.30 - Den

7 - Cons, Ambassador ch. Furkainra

Thurs - 12.15 Am. Club Matsukate

Fri 1. 30 - Shidehara

Mon 11 - Gordon, dinner

Tues 12 - Asano, dinner

Wed 10. 30 Imperial Kum

Hays - American Embassy - thurs Krupta Czecho - 7.30 Premier, Friday - Lunch - 12 - Rengo Iwanaga.

1) What would you consider to be fair and just terms for a new

treaty with Great Britain and the U. SIA?

2) What will be your policy in the event of no treaty being

reached?

3) How would you best explain to the British or American public

Japan’s reasons for denouncing the Washington Treaty?

would the Navy play in counteracting an Air attack?

Singapore Naval Base?

6) What is your attitude toward American plans of developing

bases in Alaska and the Aleutian Islands?

7) Admiral (n) Suetsupu states in the "Osaka Mainichi" that (Quoted Far Eastern Review, Jan 1935)

"Japan’s geographical position makes it impossible for any prospective invaders to effectively blockade the Island Empire. Japan is an easy country to defend, but a difficult one to invade from without." If this is so, why does Japan claim a Navy as big as that of the USA or of Great Britain?

8) "Navies are as obsolete as bows and arrows" What do you think of this statement based on the belief that the aeroplane has outmoded the battleship?

9) Does Japan’s leaving the League of Nations mean that she will consider herself free to fortify the mandated islands?

Restaurant.

Baron Tomi

Mr Ugawa (House of Peers) a future Prime minister they said.

Earthquake, owner cook flew with frying pan ~ everything. Dined with Kusamasko.

Radicalism very strong. Popularity of Army, character of men, against wealth.

China doesn’t like idea of international help to China, savours too much of control. No concrete plan between China and Japan. General Nogi is held up as Chief hero. Death always in the mind of the soldiers.

Baron Shidehara

"When Hamaguchi was killed on Tokyo station, I was standing just near with Baron Shidehara. Heard bang, rushed to P.M, then thought that I’d better stand near Shidehara. So I told him I’d guard his rear (his behind) while he walked away. His life was in grave danger because of his modern politics, which however, ref lated public opinion at the time.

For three months a would be assassin (rough neck) lived in a house near Shidehara’s house to kill him. But Shidehara had a heart attack which kept him in the house for a very long time, thus was not killed.

Was at Harvard, took me through gardens with Mr Kumasaki and Fuji, supposed to be among the finest gardens in Tokyo, a miniature of nature; ie: canyons, mountains, lakes.

Good collection of Grebil pictures, including two Brangwyns. Furkawa - Coal, copper, rubber, oil from coal.

Believed that yen is going to depreciate. Iron ore from Manchu disappointing.

Gave example of strength of fan~ily concern in his work when men came to Tokyo they always came’~ to visit him. Sometimes they had a tea party of 5,000 employees at which he personally poured tea for all.

Radicalism (communism) on the decline because the Manchu affair had unified the nation. But nat. rad. very strong and there is great hatred of capitalists throughout the country. Military growing in power.

M. internationalists among number of intellectuals, but they cannot organise it because crushed at once. Number of good clever intellectuals still in prison.

Japan has a belief that a miracle will happen, eg typhoon which stopped great mongol invasion; the Tsushima, the visitors are Russian, the building up after earthquake.

They have dare devilry will do anything, no thought to their own life.

Sudden actions, attempts being made to discipline young Officers, they’ve never been conquered. absence of class differences in the Army Ic officers and men.

But M says the officers mainly from town middle class; hence anti-big capitalism, but illogical, not thought out.

Disdain for wealth, stress on character, hence respect in which the army is held by the nation.

Parliamentary system is dead, but Japan does not want thorough dictatorship.

Interviewed Baron Shidehara, seemed to be afraid of saying anything, nothing except peace, impossible to conquer China etc.

I’m to abolition of political parties. Wests already doing it, even in England the party system Is undergoing big changes, according to your constitutional usage Mr MacD has no right to form a cabinet, your constitutionality should demand Mr Baldwin as Prime Minister, as leader of major party.

Very existence of MacD cabinet is a violation of your own constitution. But you have that curious ability to accomodate self in a common sense way to the aims.

Even in the US Am pol. not carried out according to political party line, great many so called Republicans support the President, or he couldn’t have had such a majority. In Cal, Mr Sinclair, a socialist was supported by Democrats. Political party line has been crossed in the States.

Then it had grown too obvious, Spain only one party.

I mean ‘abolition’ of more than one party. ‘Do you mean fascism?’

In Japan it is the firm belief, taking racial traits and history that we cannot carry out anything like what Mussolini or Hitler has been doing, it’s not our temperament to allow any dictator to boss the whole country, such things have never occurred in Japan.

Some young people when saw appearance of Mussolini, it appealed to the imagination, but when I came back from Geneva, I have told the people that Mussolinism can have no place in Japan. Some things are very good but autocratic power and stabilisation of power by violence we cannot carry out in Japan.

When I met Mussolini on 3 Jan 2 years ago I told him so, admitted it had done a lot of good, but not for Japan. Just like Leninism cannot be carried out here.

If we could only carry out Mussolinism together. It might be the shortest way out of the situation, but we cannot do it.

Q. Why Japan not go for?

1) Examine nations racial history. Take Hideyoshi, the greatest warrior statesman of Japan, even he couldn’t do what Mussolini has done. he consulted with the leading dignatories.

Take Tokugawa Iesayu, the founder member of the Shofunale.

These laid more stress on leaving regime to oldest son. Hideyoshi’s biggest concern, that he could not prevent Iesagoi from being successor, even Hide couldn’t do it.

If one becomes a dictator in Japanese history, they differ from the European dictators.

Hide. did not unite Japan purely by force, used diplomacy, treaty, negotiated and had to compromise with leading dacuers*.

Even the Emperor hasn’t dared to rule the country autocratically. Suppose a man arises in Japanese town with coup de etat and attempts to rule autocratically, he couldn’t last a month.

No man in Japan can carry out coup d’etat. Without the army you couldn’t do it. You can’t form a private army like blackshirts in Japan, a racial charter stating army and police maintain state law. No particle of hope to entice army or police force. Even the most popular admiral or general cannot entice army or navy, unthinkable.

Q. Young Officers? Now the young officers try to carry out revolution, they are naturally fiery and they are deeply dissatisfied. Worry as to the future of the country. It’s not that they forget duty, they think they are saving the country.

These attempts have occurred, but no man can move major parties or one division of army for coup d’etat, impossible.

In England Cromwell arose, but in Japan no Cromwell can come up.

2) Suppose one did it, - an Impossibility -, couldn’t last more than a month.

We have character of fighting against power, if we are dictated to we fight against It. We have more temperament to rebel against power. When a man commands based on strength, we fight.

When a man ******, we are softer in yielding than Europeans. We are not subservient and we are not disciplined. Notwithstanding, discipline has taken root among foreigners. Wrong. No people is as independent as the Japanese, you can appeal more to emotion than to reason.

We imported wholesale West ideas, western institutions. We imported many things that don’t fit.

Mainspring is the Emperor. Emperor is the person responsible for all that happens in Japan. Meyi wrote in letter - "If there’s a man not contented, then I am responsible."

The Emperor rules according to the will of Heaven. The will of the people is the will of Heaven is our saying, that’s our Japanese democracy.

State ministers are solely responsible to the Emperor. That they should be responsible to a parent can have no place in our history.

Through the Emperor, the minister is responsible to the people. For 3,000 yrs we have had that notion. Try and change that and make Minister responsible to Parent and it’s impossible. You cannot make a Britain out of a Japanese in a day.

Present constitution says that ministers responsible to the Emperor, but by slow transformation your notion got into our political ideas, caused confusion. So I’m trying to convince the people that that is not our way. The moment you tell a Japanese, he becomes responsible to the Emperor, he becomes serious.

I’ve been telling the people that they must go back to Japanism first, regain Japanese spirit. While we profitted greatly from material provision by importing Western customs and ways, we are losing some of the first things in Japanism, ie spiritual ~.

Q. What do you think is wrong’ in Western civilisation? The West is facing a kind of catastrophy. Why? Excessive

capitalism, mechanisation are standard cause, Westerners have become too individualistic and egoistic.

Eg. England and America even in law or morality you have no obligation to care for your parents after separating from them, that’s the danger.

I’m not condemning the white people, many men of fine quality, but I disagree that tendency of a civilisation that does not make it obligatory to look after parents.

Westerners have become unconciously individualistic and egoistic. In America son could become millionaire and father could still sell papers in the street.

We are obliged to care for our parents. Our notions that children would offer even lives for the parents.

That civilisations wrong, too mechanised, too capitalistic.

Q. then your opposed to the capitalist system?

Capitalisation made men more egoistic. It makes men run after profit spiritually and intellectually. Capitalisation drives man to egotism.

Financially capitalisation plays a big part in Japan. 82% of our exports come not from capitalism understanding, but from family concerns. What I call Capitals. is based on gains.

Family undertaking is largely a sacrifice, little family concerns, dolls are product a family labour. Work is a "duty to the heavens" Capitalist system is hitting that, farmers are getting effects of capitalist atmosphere.

Younger generation crave for more gains. Older - duty to heavens.

Famine - n. t. you farmers could have stored rice, but you were forced by the capitalist system to sell.

We never had before bumper crops, famine - up to 10 or 15 yrs. Result of capitalist institution and drop in price. Formerly at time of bumper crops we were very happy, yet now we dread the bumper crops and when they fail, we are also dread.

Get back to ourselves, go back to the Emperor and the Emperor’s rule. A real Japanese notion, Emperor’s rule. Recover the Japanese spirit.

Q. Would you consider leaving L.N a starting point?

No for 10 yrs we have been self searching and decided for Japan.

Kanchu incident has accelerated that tendency, and the leaving of the L. was an expression of it.

I’m not a reactionary, I believe in comment of Meyi: "Take what is good from every country".

Q. What’s Japanism? Japanism

Very hard to define. Shortest way is to study Emperor Meyi and Japanese verses composed by that Emperor. Should not be confined to Japan alone, that’s narrowness.

Q Asia for Aslates?

If that means the conquest of Asia, you cannot do It. There’s no man foolish enough to think of conquering Asia. Impossible to conquer China, even if we could it would take 100 - 200 yrs.

It must mean a step towards finally establishing a peace through the world, to let all and every nation have own place and be sati s fled.

Manchu - If we are forced to arrest Manchu, I’ll be despaired. It’ll mean we’ll not be able to carry out Japanism.

Japanism - not to conquer anybody, but to contribute to peace and content of the world.

If we succeed in forming real independent country, that will be success to Japanism.

No effect, you must not think that by leaving L. we are going to isolate ourselves. It doesn’t mean to isolate ourselves in the Far East, we must co-operate with other nations, not the least doubt on that in our thinking.

We hated to leave genuinely, but we were forced to do it.

I believe in establishing League of Nations through the areas, I’ll put it regional understanding, and the strongest power in each region will lead a league.

Europe cannot know the conditions, eg Manchu.

I’d advocate a Far E. League. (If China had agreed to negotiate) 3 yrs ago, nobody dreamed of separate Manchu).

We do not plan ahead.

On morning of Sept 19 we were astounded, Govt. was astounded, came as a bolt from the blue. The situation afterwards gave birth to the idea of independent state.

Politicians were not thinking of it or in military circles if China had negotiated direct with the Japanese, they would probably not have been independent state.

Events marched on Eg. World War arose in same way.

We must build up Manchu, which will be an example to the rest of China. If they face ** want to unite we cannot prevent them. British Am. officials to march and ch**** and marching to Peking and putting Kang on throne, though Chinese around Kang Te of course want him to go back to Peking. It will take them 6yrs to build up Manchukuo.

Nov 17?

A joint Jap - Manch dirigible service connecting Tokyo to Hsianky subsequently to be extended to Singapore is to be inaugurated by the National Aeronautic Policy Research Soc. Co to be known as the Pacific Airways Corporation and will be capitalised at Y20,000,000 will use one zeppelin of the LZ-129 type and eventually expects to employ 3 at least.

Original Zeppelin is soon to be published at cost of Y6,000,000.

Possible extension from Singapore to US by way of Mandated Islands and Hawaii.

Atami - in car: Cafe girl flirtation "Govt of the people, by the people, for the people" giggle!

"I am, thou art, he is " slaps me on the back "to be or not to be."

March 12

Dined at Ryogo, Asano’s magnificent Mansion, the biggest house in Tokyo, all of wood, full of wonderful screens, ceilings, colours beautiful.

There were present:-

Mr Tadeharu Mukari - Managing Director, Mitsui Brussan

Mr Fukushima - Mitsui

Mr Kurokawa - President, Kokusai Kisen Kaisha

Mr Kobayashi Managing director, Naigai Arninona Kaisha (hosiery)

Mr Nuimira (oil importer)

Prof. Oshima (Engineering) Imperial University

Mr Ashida (Jap. Times)

Mr Kyohel Kato (Mitsubishi)

Mr Fukukita (Oji Paper)

Mr Shudo (Foreign Office)

Mr Komatsu (Managing Director Asano Ship Building Co)

Discussed state socialism in Manchukuo. Its only lack of finance that stops the development of State Enterprise in almost all brands of Industry. Now there is only State industry - Railway, Salt, Opium, but if situation improves they will develop the State industry in Cement, Locomotive building, Coal, in fact in almost everything, it will be ** active ** State Socialism.

In Japan there is much objection to this. They’ve had to call in private enterprises. Discussed hosiery with Mr Kobayashi at dinner, laid special stress on the Dutch East Indies. Shipping with Mr Kurokawa.

Family feeling strong in industry. Mr Asano told me that on dismissing workers they sometimes gave up to 3,000 yen compensation, if one man had worked 28yrs he got 3,000 yen. Men in high position got as much as 60,000 yen as compensation.

They hesitated to dismiss workers, hence factories overstaffed.

After dinner we assembled in the big hall, I had to make a little speech describing the object of my journey. Then Japanese made a speech.

"Chinese lack loyalty, they cannot be loyal in business enterprise. Their companies make losses because of the dishonesty of high directors. Also cannot unify themselves.

In Manchukuo we were defending ourselves against a coming Russian influx. We fought 30yrs ago to prevent the danger to Korea and to ourselves. We fought against the influx of communism recently.

The Manchurian incident was the first time when we Asiatics managed our own affairs for ourselves.

It is time that Asiatics joined in developing Asia without the domination of occidental powers."

Example of how the anti Japanese boycott in China hit Java?? find out.

Lunch with M. J. Cox and Jimmy Young.

Cox had just written to Rickardson Hatt(?), Managing Director of Reuters.

Japanese laying great pressure on the Chinese in order that they may have an understanding before the political conference on the Far East, which will probably take place before the Naval conference. The Japanese will then show the world a fait accompli. "We’ve come to this agreement, so there’s nothing you can do".

Japan will make herself economic master of China. They will probably succeed in having their own way in the Far East. They know that the other powers would not interfere.

One danger - if Chiang Kai Shek were killed - the Japanese military decided that there’s a danger - there would be chaos; local governers would claim command; central government would collapse. There might be anti - japanese movement and japanese might be killed and the Japs might occupy Nanking.

Chinese market is terribly suffocated thinks Cox. Talked about Philippines.

Cox :- They won’t go through, it’s too far. It would involve Japan perhaps in real sanctions. The cost of dominating 2,000 islands would be terrific. They’d have to have a big army and what for? The raw materials are not important enough, Japanese are hated in the Philippines.

The feeling of independence has been so strongly fostered in the Philippines by the americans that the Japanese know they would have trouble trying to rule the Philippines. It would bring them too near Dilgian? and the Dutch. It would have anti - Japanese repercussions throughout the world.

Young :- They’ll try peaceful penetration first. They have been offered by the Americans a right over business exploitation of the islands. Then they’ll extend other rights, Japanese companies etc. Incidents might occur, infringment of business rights, attack on Japanese. These might lead to armed intervention, so Japs might enter the Philippines.

Rengo & Dippon. Newspapers going to amalgamate. Unscrupulous newspapers.

Young had heard from war correspondent of leading paper that there is a growing feeling against the army among the people and that this will come out strongly at the next election. Feeling that 1935/36 crisis is merely a racket to get more money out of the government. Election in a years time.

I brought this subject up at dinner; they said no, the feeling against parties was growing and that the army was regarded as the source of honesty, source of character. Parliament losing control.

Siam - very great Japanese influence, the Kra canal is not pure fantasy. Today’s bridge contract to ₁Jap firm.

Statue of General Nogis, big Japanese commander with gold dragon on helmet. Head practically shaved, bullet near window.

Given the power of anarchy condition in China and given some sup

Dinner ~ Jorgensen's

Young officers have not enough money, very honest sincere, vague, fall for the gloss of idealism.

The main generals are more conservative, Hayachi disappears with young officers, lack of discipline.

They’ve decided that coup d’etat is out of the question. Will be a long time before their views can be carried out.

Hatred of capitalism, because profits in Japan reach very high percent, high return on capital. Scott gave example of 20% return on capital in an electric Co (private) in part of Tokyo.

General Araki March 13.

"1 think Russia’s more generous than I thought they invited me to come and visit them." "Russians are kind hearted sons of nature."

Very keen sharp eyes and big moustache, tapering to a point. Communism

"My view is causing fare as far as the Russians are concerned, they have full freedom to develop soc. cause in their own country, but because I’m opposed to the essence of soviet doctrine, I strongly object to having Soviet propaganda in my country. In communism they treat human beings like machines.

Opposed to the machine like view of human institution. If such ideas prevail human civilisation might be destroyed.

port from the Soviets, there is a chance of communism spreading in China.

"Syechuan? Sinkiary? spreading?" "Those regions even if communism were to spread, it would be some time because communists have been meeting reverses at head of Chiangisary, but in N.W. districts there seems to be more chance of success.

(Take off shoes, put on slippers. Big picture and story wild tiger, little trees outside, small pines)

"What can Japan do to help China overcome communism?"

"In the works at Bessedovski there is a passage that the shortest cut of the Bolsheviks of China would to help Chiang Kai Shek to unify China under his authority, then when the unification of China has been accomplished by his power, then instigate young Chinese communists against Chiang Kal Shek and drive him from power. The unified China would be brought under communist direction.

Considering such possibilities, the most effective way for Japan to prevent China coming under Soviet influence would be to deal directly with the Soviets, and point out to the Soviets the stupidity of such an action and try to persuade the soviet authorities from embarking on such an undertaking.

"To send armed forces into China to counteract activities of Soviet agents would be most foolish. Bessedo says the greatest obstacle to the policy would be Japan.

Even so we must keep Japan and England from interfering by giving them some big values to keep them away.

B. writes that Russia would be ready to give Japan and even Mr. Kutski as a price of non - interfering in China. But he added we must not forget Brest and Litorsk.

But, Chiang Kai Shek proved to be more clever. With Russia’s help he successfully carried out communist policy, but when he attained success he supported Chinese communism.

How Great? - "no actual reports, but probably about 500 plans."

~ all misleading. Russians are resourceful , sometimes used scouting planes as bombers.

"Advance on Mongolia?" Prince "Futile to help the Chinese or Mongols against encroachment of Soviet infidels, the only way is to take up the issue with the Soviet authorities who deny this.

(Tiger skin on Sofa)

"I support the Pro Oriental movement if it is culture. So far the Asiatic civilisation has been too much ignored by the world. Firmly convinced that fundamental parts of Asian Civilization past as good as European Civilization is ignored. We want to assert to the entire world that we have a civilisation of our own. But if Pro Oriental in political sense, that is narrow minded and I denounce it."

Waiting room, a grand piano on it is a bronze statue of General

Fochi.

Dressing table with mirror, with four ebony elephants, suit of

Japanese armour with gold dragon on helmet, bookcase - Krupp 1812

- 1912, Boccachio’s works Decamero, Paris picturesque.

Skin or hide of big crocodile.

Victorian or early Edwardian furniture, chairs with gilt flowers. __ Bronze statue of eagle with claws upon a snake. Picture of lions on the trail. State express cigarettes. Work of Raeburn, Van Dyck, Rembrandt, Rubens, Shakespeare in french, French volume on "Le Danse", "Paris Pittoresgue".

One illustrated War News, books of travel, ‘A travers this and a travers that, Mongolia, China, Armenia.

Admiral Osumi - very jolly, round chubby face, sparkling jolly eyes, laughs, flowers in the room, gold screen, red flowers on the table, little tree pine behind.

Gave typed reply. Cpt Tayui. Wished to see me in the summer.

Jolly conversation about the respect which the people have for the Army and Navy, character of honesty.

They were very hurt with L. G’s article, why should he attack Japan? Kumasaki said that Osumi had got nerve and had shown it during the Russian Japan war.

Looked like the fat priest who sat down for l6yrs. Pictures everywhere.

Went to see War Exhibition of Russian Japanese War in the big store opposite Maruzen, after buying books for Yiyi. Pictures of Nogi etc, his boots, his bag, his handwriting. Scenes from the battle, crowds pressing to see, numbers of children.

Dined with Stein, Margit, Guntenhein and with Chamberlain at Prumi. then to Saisrin. See Thomson and Co, Mr Griffiths, Kobe, bookshop.

March 14th

Lunch with Iwanoga and YMCA people, sat next to Tanaka, former ambassador to Moscow.

Then with Metzge to see Yamada who has a commercial information bureau. Metzge said he was a man with great influence behind the scenes.

Metzge said that the real powers were not the F.O and Russians but the army. Army hats.

Osaka — Osaka wants to beat England and bring Lancashire to her knees, but army recognises value of a close understanding with Great Britain In order to counteract the influence of Bolshevism.

Yamada - the industrialists are selfish, they are motivated by profit, by greed, by money. We believe in character, in honour, in poverty. We hate the spirit which the industrialists are putting into the nation.

We want friendship with Grt. Britain. We can go along and develop China in partnership. We realise that Manchuria will keep us busy for a very long time.

Plea for Anglo - Japanese co-operation.

Sailed on President Grant, 4pm, boat like ghost ship, almost no one on board.

S.S.President Grant - March 15

Conversation at dinner, American and German.

"The Japanese imitate and imitate, just copy." "German firm showed Japs blue prints of boat, they said ‘We want to study this before accepting’ they studied that for a long time, took the blue prints back to the hotel etc, then refused.

The Japanese built the vessel on the same lines, when launched, it fell over. The Germans fearing it would be copied, had just omitted one or two essential details!"

"In my business," said Linsky at table, "1 notice copies, in the Hotel Imperial, Tokyo, I looked and saw at dinner 1847 Rogers silverware! Gee I thought, that’s fine, I looked again and on the ware was ‘Tokyo’".

Kobe March 16th

Rain, arrived 3.30. Went to A. Morgan Young, Kobe Chronicle.

Reactionaries - growing, you hardly get punished if you kill a socialist.

We published a supplement by accident picture of the royal palace reflected In water upside down. Next day, young man who couldn’t speak English came and asked why.

I told him that I only answered questions of that type to the police, and he went.

Next day big burly ruffian "Toyama has sent me to ask why you published picture upside down?"

"Tell Toyama that I consider his petty interference in this matter is a disgrace to Japan." Heard no more.

China - Hear that Japanese are exporting stuff to Shang Hai (general merchandise) under name of "munitions for garrison" ie without duties.

They’ll probably try and rouse independence movement in N. China and separate from the rest. They believe that the national hatred can die down (example of Shantung and now Manchukuo is raffrochent).

In the Philippines they might send troops to protect the Japanese in the south. It’s quite possible that they’ll go to the Philippines.

They’re building up their navy in order to be able to bring pressure on China.

A*** generally with the Smuts* camp. Certainly planning to extend independence and joining with Manchu camp in China. They’ll certainly have a lot of trouble in Manchu.

They’ll make the Chinese give them special concessions on Japanese goods.

Dined with Mr. & Mrs Kennard, very opposed to the Japs, they are certain to fight, they’re longing for a war, their police are terrible, medieval legal methods, terror in the prisons.

Talk with Mr Hamer

Shantung - Japanese told Mr Hamer that the next movement would be an independence movement in Shantung - and that it would join with Manchu. Then Hopei (Peiping) would follow. Tsingtao is already another Dairen.

Already masses of Japanese goods going into Shantung (smuggled) without paying duty and the governor of Shantung gets bribed for it by the Japanese. From Shantung, the goods are sent on to different parts of China.

On S.S. Grant - Linsky:- They can sell their produce at 1/3 or 1/4 of the price of other nations. My firm used to buy from Europe, but now that the $ is down and Japanese goods are so much cheaper, I’ve come to Japan to make arrangements for importing into the U.S.A.

Japanese have been doing the importing, but now we are going to do as much as we can.

Their porcelain factories are quite as good as ours. then the poor people can afford to buy.

Philipines

Both the Chief Engineer and Mr Harman agreed, "We put over a raw deal with the Philippines, dirty trick, we keep the market for 10 yrs, but we raise the tariffs gradually against their goods".

Shanghai - Tues March 19

Misty morning, tender at 8 o’clock, hundreds of boats and junks. Little beggar girl, pigtail with red bow - "gimme copper" Cockney accent, - "no Papa, no Mama, no whisky, no soda".

Went to see Cheng in Rue du Consulat, but he is in Nanking. Saw Pax. and talked with family. "Crash! Crash is still to come.

Conditions terrible in Shanghai. They didn’t trust the Japanese or reproachment with Japan."

"Chiang - il est puissant" We had a view over the town. Rickshaw drivers everywhere, but they do not know where they are going. I asked one to take me to the Municipal Building Office, he took me into the French Consulate.

Called at N.C.D. News and saw Haward, he asked me to lunch with lonely old Harrovianat the Cathay Hotel.

Tibet - wonderful chance they thought of China extending influence over Tibet, but the Chinese are not clever enough for it. The Dalai Lama has not yet been found.

Japanese want to control 90% of China’s trade. They want to send 3,000 officers and NCO’s to the Chinese army and send away all German advisers, also in trade they want to do that.

Consul Generals Fouchou - great diplomat very well educated. the Great Wall, Japan controls both sides. Communist retreat wa~ arranged, 6 million S.

Japanese pressure caused Chinese tariffs.

The Japanese are trying to get a foothold in Macao which i~ Portugese. They are trying to buy land.

When Chiang Kai Shek was going to bomb Fuchow, he asked Britain France etc to evacuate their civilians, they agreed. The Japanese refused, and made Chiang responsible for any Japs wh might be killed, luckily none were killed, but this puts greal weapon into Japanese hands in the future. If Japs are killed. .

(Get Tanaka Memorial, not a fake)

Japs have it’s said aeroplanes in Kwanpi. They want to hav~ control over Fukien. Their consul general, Fuchow is a man worthy of Paris and London. Embassy, large staff, obviousl~ important, can be controlled from Formosa.

In Fukien, Chiang has put governor - man who was educated ii Japan.

The tariffs of last year show very great Japanese pressure.

Communists can’t believe news of victories, their retreat from Kiengsi was arranged. They have 400 Moscow trained men, they have given up collective farm idea, they believe in distributing land equally.

The great question is Jap policy, Aviation. The Chinese won’l give permission for foreigners to fly over their territory. Bul look at the welcome given to Asahi flyers.

Chiang has about 200 - 300 planes. Guns have great strength t unify China, but it will take 50 - 75 yrs. He’s just sent governor to N. Yunnan.

Communist danger is great, don’t believe the victories of Chiang. If they get Syechuan they control, very rich control, headwater~ of the Yargette, where the opium comes up from Kereichow and dow from Syechuan. They can unite with soviet Russia in Sinkiary.

Anglo - American understanding, you can’t rely on the US, they’c say "we won’t fight for Hong Kong or Shanghai", we’d say "who should we fight for the Philippines.

Japs want to control the Dutch East Indies and the Philippines. The Philippines are to them what Ireland is to us. It’s also essential to build up Singapore as a defense to India.

We’re beaten in Asia, the Japs have got us absolutely. Their trade is smashing us.

The great fear in the Far East is the fear of Japan, Russia and Germany getting together, (Stein also believes that Russia Japan alliance is probable).

Believe war is inevitable, Japs are waiting for it, educated for

it. They could bomb Hong Kong from Formosa, controversy over whether Hong Kong can be defended.

Japan will fight if she can’t get what she wants.

Thorpe:- All these mandarins are against Japan. They all fear Japanese attack. We would have to evacuate now, but after working to the treaty we’d build up and make it defensible. They could easily bombard us from a distance.

We saw General Von Seeckt (eyeglass) in restaurant just near with Chinese general in civilian clothes.

We talked with Owen Kurls, going on manoeuvers, fear of Japan.

Japanese goods smashing British trade.

Going to spend £2 1/2 million on barracks.

Yorke :- the Hong Kong mentality knows nothing about China. Wife of liaison officer in China said "1 never can remember which came first, Japanese or Chinese civilisation". Liaison officer has not been in China for 10 yrs.

War in Pacific is inevitable, Manchuria is the testing place. If Japan make good, then N. China will be satisfied if Pu Yi comes to Peking. Jap is sure to dominate N. China.

They’re sure to attack either Peking or Vladivostok. They’re bound to get control of the Japan sea.

Chiang has made $20 million they say. Unity very precarious if Chiang dies.

Chiang is bad at choosing subordinates, they’re all yes men.

Generals are usually peasants who use the foreign educated

Chinese as a buffer against the West.