JAPAN FREE.

Auckland Star, Volume LXVIII, Issue 1, 2 January 1937, Page 9

JAPAN FREE.

TREATIES EXPIRE. Can Replenish Defences for Mission in East. WAVE OF PROSPERITY. United Tress Association.—Copyright. (Received 12 noon.) LONDON, January 1. With the expiry of the Washington and London naval treaties, Japan has formally invoked the escalator clause enabling her to retain 15,000 tons of over-age submarines. This is regarded as a reply to the American objection to the suggested transference to the submarine category of portion of the extra 40,000 tons of destroyers which could be kept owing to Britain invoking to destroyer escalator clause. The Japanese Minister of the Navy, Admiral Nagano, in a New Year message, declared that the termination of treaties frees Japan from unjust restriction, and adds: "Japan can now replenish national defence necessary for Japan's mission to maintain peace in the Orient based on non-aggression and non-menace.

The correspondent of "The Times" in Tokyo reports that decorated streets, crowded shops and lavish spending attest the new high-water mark of prosperity attained by Japan in 1930, but the Prime Minister, Mr. Hirota, and his colleagues in a New Year message adopt a tone of gloom. They find chaos in Europe, uncertainty in "the Pacific and dark shadows in China, and point out that all nations are arming. They emphasise that Japan must strengthen her defences and prepare for a crisis. These warnings reflect the temper of the Government, which is facing a difficult session when the increases in taxation must be defended. In the meantime the shops report unprecedented buying. Half a dozen new theatres in the centre of Tokyo play to crowded houses, and the luxury hotels In the resorts around Tokyo are filled with thousands of young people. This prosperity is partly due to the munitions boom financed by borrowing, but a good rice harvest and high prices for silk are also factors.