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Press, Volume LXXIV, Issue 22308, 24 January 1938, Page 11

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Conflict in the East PRINCE KONOYE'S SPEECH Appeal for Greater Sacrifices (rsITF.n TRESS ASSOCIATION—COTTRIGHT.) (Received January 23, 9.30 p.m.) TOYKO, January 22. "Far distant is the end of the conflict. It will be a long time before a settlement is reached. Ours is indeed a momentous task." declared Prince Konoye (Prime Minister of Japan), when speaking in the Diet and appealing for a dauntless spirit to meet still greater sacrifices and achieve permanent peace in East Asia, based on close co-operation between Japan and Manchukuo.

The Foreign Minister (Mr K. |Hirota), making similar utterances, z said that the calmness and f airmindedness of Great Britain and ■ America about the Panay and ! Ladybird incidents had averted the \ alienation of good feelings. He i hoped that the Government and Vpeople of Great Britain -would comiprfhend correctly Japan's position fin East Asia, and would co-operate , with her in the furtherance of peace and good understanding. Mr Hirota revealed that Japan's ipeace terms to China included the of demilitarised zones, jthe payment of an indemnity, and •an economic agreement among *China, Japan, and Manchukuo. The Minister for War (General jSugiyama) told the Diet that China originally had 1,500,000 men in the field, half of whom had since been killed or wounded. JAPANS BUDGET LESS EXPENDITURE AND REVENUE PROGRESS CLAIMED IN SPITE OF WAR (Received January 23, 9.10 p.m.) TOKYO, January 22. The Minister for Finance (M. Okinobu Kaya) said that Japan was progressing in spite of the war. The exchange rate would be maintained with the yen at 14d. The Government planned to promote exports and gold production, to regulate imports, control consumption and rising prices, utilise raw material substitutes, and check speculation. The ordinary Budget for the coming year, £167,241,000, showed a reduction of £4,433,000 in expenditure. MASS RESISTANCE IN CHINA

TRAINING CIVILIANS FOR GUERRILLA TACTICS

SHANGHAI, January 21. The Shanghai correspondent of the British United Press says that China's millions are hastily mobilising trained mass resistance. .The University of Canton is closing to enable the students to engage in a "missionary" campaign on behalf of the uniformed militia. In addition 200,000 civilians are being trained in guerrilla tactics and nearly 1,000,000 are reported to have enlisted in the Self-defence Corps in Shansi. The province of Hunan is establishing a commission to direct mass training. . Guerrilla bands continue to take toll of the Japanese near Tai-yuan, the capital of Shansi, and also at Chuensha, east of Shanghai. CAPITAL SHIPS OF JAPAN

AMBASSADOR'S INQUIRY

LONDON, January 21. The British Ambassador to Japan !Sir Robert Craigie) has been requested to sound the Japanese Government about its plans £r capital ship construction, after which Great Britain will confer with France and America. CHINESE OFFICERS EXECUTED

FAILURE TO PERFORM DUTIES SHANGHAI, January 21. It has been officially announced at Hankow that nine executions were carried out for failure to perform duties. The names of those executed are not given, but they include an army corps commander, a brigadier, a court-martial judge, a chief telegraph officer, two regimental commanders, and three battalion commanders. - General Lieu-shik, Governor oi Honan, and hitherto one of Marsnai Chiang Kai-shek's supporters, has been arrested for dereliction from his military duties.