RETRENCHMENT BY JAPAN

Press, Volume LXXIII, Issue 22017, 15 February 1937, Page 10

RETRENCHMENT BY JAPAN

REDUCTIONS IN REVISED BUDGET

SMALLER DEMANDS OF ARMY AND NAVY

(UNITED PBKSS ASSOCIATION —COI'YIUGIIT.) (Received February 13, 11.30 a.m.) LONDON, February 12. The Tokyo correspondent of "The Times" states that the Japanese Cabinet has approved of a revised budget totalling 2,769,000,000 yen, which is 460,000,000 yen more than last year, but' a saving of 270,000,000 yen compared with the previousCabinet's budget. The army and navy have each reduced their demands by 23,000,000 yen. The Home Office has saved 162,000,000 yen, chiefly through sacrificing the proposed grants for rural relief, an action _which is likely to be vigorously criticised. Whether the retrenchment is due to the tendency of rising prices to foster social unrest, or to the widespread unpopularity which the army encountered in the recent crisis, it reassures commercial cirqles and ensures public confidence. The Government is modifying the proposed tariff increases. Mr F. Yuki (Minister for Finance) tore to pieces the Foreign Office budget, but left intact appropriations for establishing a legation in South Africa and a consulate-gen-eral in New Zealand.