TONE OF GLOOM

Evening Post, Volume CXXIII, Issue 1, 2 January 1937, Page 11

TONE OF GLOOM

MESSAGE BY JAPANESE CABINET WARNINGS AT TIME OF PROSPERITY (Received January 2, 10.30 a.m.) LONDON, January 1. The Tokio correspondent of "The Times" states that reports of decorated streets, crowded shops, and lavish spending attest that a new high-water mark of prosperity was attained by Japan in 1936, but the Premier <M. Hirota) and his colleagues in a New Year message adopt a tone of gloom. They find that there is chaos in Europe, uncertainty 'in the Pacific, and dark shadows in China, point out that all nations are arming, and stress that the Japanese must strengthen their defences and prepare for a crisis. These warnings reflect the temper of the Government, which faces a difficult session when increases in taxation must be defended. In the meantime, shops report unprecedented buying. Half a dozen new theatres in the centre of Tokio are playing to crowded houses. Luxury hotels in resorts around Tokio are filled with thousands of young people. This prosperity is partly due to the munitions boom financed by borrowing, but the good rice harvest and the high prices of silk are also factors.