JAPAN'S FINANCES

Evening Post, Volume CXXVII, Issue 1, 3 January 1939, Page 9

JAPAN'S FINANCES

LOANS AND TAXES

COPING WITH WARJDEMANDS

TOKIO, January 1

The Minister of Finance (Mr. Seihiu Ikeda) says the Government is planning to issue further national bonds valued at, approximately £291,000,000. There will also be tax increases totalling £11,000,000, in order to cop^ with the demands of the war in China and other extraordinary expenditure.

In view of General Chiang Kai-shek's antagonism' and the complicated international situation in China, said Mr. Ikeda, Japan Would be forced to redouble her efforts.

"It must be emphasised that even after the establishment of Sino-Japan-ese relations on the basis already outlined," said Mr.. Ikeda, "it will be useless to expect a rapid reduction of Japan's burdens if large-scale .renovation in East Asia is to be achieved." Japan's favourable Ijrade balance in 1938 was £2,800,000.

' The Premier (Prince Konoye) and the Foreign Minister (Mr. Arita) have issued a New Year message emphasising the necessity of more severe restrictions throughout' Japan in order to exterminate Communism and emancipate the Far East from Western bondage and deploring' the assistance given by third Powers tp General Chiang Kai-shek and the interference with Japanese efforts at'reconstruction in China.