the mutual friendly solution of various obstacles to the revival of normal relations between the two countries. Japanese Press correspondents were also requested to withdraw from Russia, and the Japanese Post Office was notified that the transportation of mails via Siberia and telegraphic facilities with Japan would cease. The Japanese Government instructed their Minister at Peking, Mr. Yoshizawa, to enter into communication with M. Karakhan, the Soviet Envoy, on the matter. Eventually conversations were resumed at Peking, at first semi-officially, and in May official negotiations between the two Governments were formally re-opened and continued practically without intermission for the remainder of the year.

Although at first high hopes had been entertained that the Kiyoura administration would cope successfully with the many difficulties of the general situation, it became increasingly evident that the Government would not be able to rely upon a majority of supporters in the Diet. The financial and economic situation arising out of the earthquake and the movement in favour of an extension of the suffrage, as well as Japan's relations with the United States on the immigration question and the still unsolved problem of the Russo-Japanese negotiations, all tended to make the Premier's task in the realms of home and foreign policy a difficult one. The dissolution was not long delayed, and as announced by Imperial edict, issued early in February, the General Elections took place on May 10. The polling was remarkably heavy throughout the country, and the result was a severe defeat for the Seiyuhonto or Government Party, who secured only 120 seats, against 156 Kenseikai, 101 Seiyukai, 50 Kakushin Club, and some 60 Independents. Immediately after the festivities, on June 5, in connexion with the national celebration of the Prince Regent's marriage, the Premier tendered his Government's resignation to the Prince Regent, who then invited Viscount Takaaki Kato to form a Cabinet.

The constitution of the new Cabinet, which was completed on June 10, was as follows:

Viscount Takaaki Kato, G.C.M.G.
Mr. Reijiro Wakatsuki.

Baron Kijuro Shidehara, K.B.E.
Mr. Yuko Hamaguchi.

Lt.-General Kazushige Ugaki.

Admiral Hyo Takarabe.

Mr. Sennosuke Yokota.

Dr. Ryohei Okada.

Minister of Agriculture and Commerce Mr. Korekiyo Takahashi, G.C.V.O.

An extraordinary session of the Diet was opened on July 1, and the Premier foreshadowed in his speech the policy he intended to pursue in regard to Home Affairs. This policy

included the introduction in the next ordinary session of the Diet of an Electoral Reform Bill instituting a system of universal manhood suffrage.

The Government further intended to devote consideration to the reform of the House of Peers, with due regard to the spirit of the Constitution. Attention was also to be given to the creation of certain parliamentary officials with the object of smoothing the operation of parliamentary procedure. The development of national thrift, by means of financial and administrative readjustments, was also envisaged, and only the most urgent and imperative State enterprises were to be undertaken, no flotation of further national loans being permitted.

The Foreign Minister, Baron Shidehara, devoted a large portion of his speech on the same occasion to an exposition of the Government view of the situation arising out of the new Immigration Act of the United States, his familiarity with conditions in America, owing to his position of Ambassador at Washington from 1919 until 1922, lending additional weight to his remarks. Frankly admitting at the outset that Japan had no intention of calling in question the American contention that liberty to control immigration was an essential attribute of the sovereign rights of a nation, Baron Shidehara pointed out that the importance which America attached to this doctrine was due to the special conditions involved in the general trend of immigration to that country, especially from South-Eastern Europe. As a result, the feeling had arisen that there was a practical difficulty in assimilating the foreign elements in the community of original Americans, so that the new Act was primarily designed to restrict general immigration. The inclusion therein of a provision designed specifically to exclude Japanese therefore appeared unjustifiable, especially as the operation of the Gentleman's Agreement had strictly limited the number of Japanese immigrants to the United States for years past. The exclusionists declared that their objection to the Japanese was that they were unassimilable and a potential source of danger to the country, but they did not raise the plea of racial inferiority. Both the President and the Secretary of State had been opposed to the exclusion clause, and public opinion, as reflected in a large section of the American Press, was sympathetically disposed towards Japan in this matter. The Japanese protest against the exclusion clause was based on the conviction that it was contrary to the dictates of justice and fairness, and was imposed in disregard of the ordinary rules of international comity. Baron Shidehara then summed up the attitude of the Government as follows:

The legislation is now an accomplished fact in the United States, but we can by no means concede that the question is closed. Until our just contentions shall have been given satisfaction, we shall maintain our protest and shall use our best endeavours to seek an amicable adjustment of the question and to ensure for ever the traditional friendship between the two nations.

Alluding to the recent re-opening of official negotiations with Russia, the Foreign Minister declared that until various outstanding matters between the two countries had been fully and definitely settled, unpleasant disputes were likely to follow the re-establishment of diplomatic relations. Consequently no statement was possible at the moment on the Government's intentions, although they were determined to make every possible effort to arrive at a satisfactory settlement.

With regard to China, the Government were watching with sympathetic interest the efforts of the authorities to carry out the tremendous undertaking of reforming all branches of the administration to suit modern requirements. Whilst willing to assist in any way desired by China, the Japanese Government would not interfere in matters of internal politics nor take any action in disregard of China's position. At the same time, similar forbearance would be expected from China as regarded Japanese rights. The Chinese people would realise Japan's intention of fair and square dealing and that she intended to act in the spirit of the Washington agreements.

In accordance with the schemes of retrenchment and reform originated in 1922, drastic reductions in the personnel of the army were effected in the month of February, completing the quota originally foreseen. The total number of officers retired was 113 generals, 1115 colonels and majors, and 949 captains and lieutenants. In addition, 56,000 non-commissioned officers and men were discharged, and 10,000 horses disposed of. A special commission of officers of the General Staff was also set up by the Minister of War to draft recommendations for the thorough modernisation of the army on a more economical basis, a reduction in the number of divisions and a curtailment of expenditure being envisaged. With the object of studying foreign military organisations, a Military Mission left Yokohama at the end of February and visited Spain, France, Italy, Turkey, Hungary, and other European countries. The Mission was received by King George at Buckingham Palace on July 22, and eventually returned to Japan via the United States of America.

The Navy Department, also as the result of the policy adopted in 1922, completed the reduction of the active ranks of the navy by issuing discharge papers to 8 admirals, 52 vice-admirals, 99 rear-admirals, 552 captains and commanders, and over 900 officers of lower ranks. Upwards of 10,000 dockyard employees also received their dismissal.

With the object of enforcing the measures of national economy demanded by the situation, the Government introduced a Tariff Bill on July 6 raising the import duty on luxuries to 100 per cent. ad valorem. The Finance Minister, Mr. Hamaguchi, in introducing the Bill, announced that only articles which were not made, and could not be made, in Japan, were to be subject to the new duty, as the Bill was aimed at the prevention of luxury, and was not a measure of protection nor an attempt to

increase revenue. The Bill passed both Houses of the Diet at the end of the month and was immediately promulgated and put into force.

THE NETHERLANDS EAST INDIES.

In his annual speech at the opening of the renewed sessions of the "Volksraad "Volksraad" (People's Council), on May 20, the Governor-General, Mr. Fock, stated that the Government by curtailing State enterprise, and by pursuing a strict policy of retrenchment, being assisted also by the gradual economic revival, had managed so to improve the financial position of the country that the Budget for 1925 would balance. The ordinary receipts for 1923 had indeed yielded a surplus of 32 million guilders instead of leaving a deficit of 82.2 millions as had been estimated, the whole deficit being thus reduced to 63 instead of 181.6 millions. This favourable issue was due to a reduction of expenditure by 49 millions and an increase in revenue of 40 millions. For 1924 the Budget showed the following figures: Ordinary expenditure 646-7, revenue 625 1, deficit 21.5 millions, deficit on the whole Budget 83.9 millions. In his Explanatory Memorandum to the Budget for 1925, however, the Minister for the Colonies was able to state that, owing to further retrenchments, the total deficit for 1924 would probably be reduced to about 63 millions and that on the ordinary Budget to 10 millions. For 1925 there is estimated a deficit of only 38 millions on the whole Budget (expenditure: 690 3, revenue 652 4 millions), the ordinary Budget showing a surplus of 2.5 millions (expenditure: 635 2 and revenue 6377 millions). In comparison with 1921 the ordinary expenditure thus shows a decrease of 26 per cent. and the extraordinary of 23 per cent. To consolidate the floating debt a loan of 75 million guilders was issued in the course of the year, bearing interest at 6 per cent., the rate of issue being 971 for the Netherlands and at par for the Dutch East Indies. The fact that this loan was subscribed about three times over shows the confidence felt in the credit of India. The financial position indeed may now be considered as quite satisfactory.

The fear expressed in the States-General that the increased taxation would render impossible a revival of industry, chiefly by hindering the investment of foreign capital necessary for the development of Insulinde, was not shared by the Government, which judged a balanced Budget and sound money indispensable above all things for economic recovery. For 1924 the produce tax was once more extended, and a petroleum tax was introduced, both for one year.

The People's Council dealt in its November session with a fresh draft Navy Bill providing for 2 cruisers, 16 submarines, 2 submarine-minelayers, 12 destroyers, 4 flotilla vessels, a number of minelayers, 1 mothership for submarines, auxiliary vessels and 108 aeroplanes, to be built within eight years. The

Government no longer asked for the construction of a naval base with auxiliary bases at Soerabaja, at Makassar, and in the Riouw Archipelago, but was willing to content itself with the enlargement and the reinforcement of the existing Soerabaja base. The People's Council, however, adopted with 22 against 22 votes an amendment, which the Government had declined to accept, to make Tandjong Priok the naval base. It decided also without a division in favour of an equal distribution of the cost between the Netherlands and the East Indies. In this form the Bill was passed with a slight majority-23 to 21. The People's Council having only an advisory competence, the Naval Bill will have to be dealt with by the States-General [vide The Netherlands].

Energetic measures were deemed to be necessary to combat Communistic propaganda which was regarded as particularly dangerous in a society presenting great social contrasts like that of the East Indies. Civil servants were warned against participating in propaganda of a revolutionary nature. Some of them were dismissed, and the foremost leaders of the moment were banished.

The Technical University at Bandoeng, established a few years ago by private initiative and subsidised by the Government, was placed under State control. A High School for Law was opened at Batavia.

The arrival at Batavia, on November 28, of the first aeroplane to make a flight from the Mother Country to the Dutch East Indies was greeted with great enthusiasm as a presage of a regular air service between the two parts of the realm.

CHAPTER IX.

AFRICA: THE UNION OF SOUTH AFRICA-RHODESIA-SOUTH-WEST PROTECTORATE-SWAZILAND-BECHUANALAND— MOZAMBIQUE -BELGIAN CONGO-MOROCCO-EGYPT.

SOUTH AFRICA.

ALTHOUGH the formal ratification of the Hertzog-Creswell pact (see ANNUAL REGISTER, 1923, p. 280) aroused the distrust of many Nationalists, and was looked upon with suspicion by the anti-republican elements of Labour, the rank and file on either side loyally obeyed the dictates of their leaders by accepting the alliance as a wisely conceived political expedient. Fundamentally, Nationalism and Labour had little in common. The chief point of contact was hatred of the Government. It was an antagonism so pronounced that it automatically minimised the difficulty of reconciliating divergent party principles, at all events for the time being. Only under the influence of a great emotional appeal could such an alliance have been brought about.

The year opened with every prospect of developing an unusually keen struggle for political supremacy.