CABINET RESIGNING.

Ashburton Guardian, Volume 60, Issue 79, 13 January 1940, Page 6

CABINET RESIGNING.

JAPANESE POLITICAL CRISIS.

RELATIONS WITH AMERICA. (United Press Association-Copyright.) LONDON, January 12. The Japanese news agency reports that the Japanese Prime Minister (General Abe) is placing the resignation of his Cabinet in the hands of the Emperor. The decision was .reached at. a Cabinet meeting this morning. The agency suggests that the Japanese Diet will be either suspended or sent into recess to allow a new Cabinet to examine the Budget. The resignation will take effect on 'Sunday. The Government’s relations with the United States arc mentioned in connexion with the resignation.

AMERICAN PRESSURE ON JAPAN. RETALIATION PROBABLE. WASHINGTON, January 11. The importance that can be attached to Mr H. L. Stimson’s proposal for an embargo on the export of arms and munitions to Japan lies not only ?n his influential position as an elder statesman, hut in his earlier publicised proposal for a moral embargo on the exports of certain war materials to Japan he plainly gave the administration impetus in that direction. Some feeling exists that President Roosevelt may have had advance information abouT tlie statement made yesterday • and the public reaction to it may "be indicative of hoiv far the administration can go in producing pressure on Japan to modify her course in China. Some quarters even see the the statements as designed to warn Japan of what she faces after abrogation of the commercial treaty on J anuary 26.

Other influential quarters, however, are convinced that 'the embargo advocated by Mr Stimson would elicit retaliation from Japan which would conceivably bring the two nations perilously' close to war. It is pointed out that already Japanese sources are threatening Japanese naval building to catch up with Mr gtimson’s measure. ANaval Institute meeting in Washington brought the following comment from one speaker: “Japan can he expected to seize Guam if the United States presses her intention to fortify it.”

CONDEMNED BY JAPANESE. PROPOSAL TO FORTIFY GUAM. TOKIOj January 12. Captain Okuma, a Japanese nayal spokesman, called the United States proposal to fortify Guam “rather ungraceful.” He added that Japan could not bei blamed if she supposed it to be part of a plan to strengthen the Hawaiian Islands against Japan. The Tokioi newspaper “Asalii” issued a warning: “If the United States, disregarding the Japanese Navy’s fundamentally' peaceful programme, seeks to maintain an unjustiable superiority, Japan, in accordance with her policy of not permitting aggression, will lie compelled to strengthen her fleet to meet the American menace.”

A message from Washington says that tiie Japanese naval spokesman’s hint that expansion of the United States Navy, would precipitate a building race with Japan has not aroused official comment here.