CHANGE IN JAPAN

New Zealand Herald, Volume LXXIV, Issue 22643, 3 February 1937, Page 13

CHANGE IN JAPAN

NEW CABINET FORMED

VICTORY FOR THE ARMY FOUR CHIEF MINISTERS By Telegraph—Press Association—Copyright TOKIO, Fob. 1 General Hayashi, a former Minister of War, has ended a week's uncertainty bv announcing that he has formed a Ministry to succeed Mr. Koki Hirota's Cabinet, which resigned owing to Army pressure. The other chief portfolios have been allotted as follows: Foreign Affairs.—Mr. Saito. War. —General Nakamura. Navy.—Vice-A d illfra 1 Yon ai.

The appointment of General Nakamura is a victory to the Army, as General Hayashi wanted another nominee. It is expected that the Cabinet will seek to form a new Coalition Party.

General Havashi's success caused a favourable reaction on the stock market, particularly advancing prices in shares in cotton, rayon, munitions, shipping and mining. Observers expect a moderate policy. The new Prime Minister is believed to have complied with Vice-Admiral Yonai's insistence on safeguarding the naval 'estimates and fully observing the constitution in connection with national administration and unification of foreign policy. General Nakamura demands acceptance of his Army Estimates and realisation of his predecessor's plans for administrative reforms.

The Cabinet which has been succeeded by that of General Hayashi was constituted as follows: —Mr. Hirota, Prime Minister; General Terauchi, War; Mr. Arita, Foreign Affairs; Admiral Nagano, Marine; Dr. Baba, Finance; Mr. Ushio, Home and Education; Dr. Hayashi, Justice; Mr. Magata, Oversea; Mr. Shimada, Agriculture; Mr. Tanainogi, Communications; Mr. Yonezo Maeda, Railways; Mr. Takukichi Kawasaki, Commerce.