Monday, Feb. 22, 1937

Generals on Top

A strictly perfect Constitutional monarch, dwelling almost entirely in moated Tokyo Palace grounds, and never known to have kicked over the traces is Japanese Emperor Hirohito. Last week His Majesty, the impassive, bespectacled, studious Son-Of-Heaven who had just weathered a grave Cabinet crisis (TIME, Feb. 8), donned medieval court costume and pre- sided in the Palace of his ancestors over nationwide celebrations to mark the 2,597th anniversary of his Imperial Dynasty.

Highhandedly ruling Japan's roost last week was His Majesty's new "Gold-Braid" Cabinet led by handle-bar-mustached Premier General Senjuro Hayashi who had whittled down the customary 13 Cabinet officers to eight, pocketing the portfolios of Foreign Affairs and Education for himself. Premier Hayashi, moreover, had given every vital Cabinet job to a general or admiral, except that President Toyotaro Yuki of the Industrial Bank of Japan received the thankless post of Finance Minister, must somehow find the billions which Japan's fighting services demand.

Premier General Hayashi lost no time in revealing the mailed fist. He insisted that civilian ministers resign their party affiliations before entering his Cabinet, thus ousting completely from the conduct of Japanese affairs the Empire's two great political parties, the Minseito (majority) and Seiyukal (minority). His second high-handed act was to get the Emperor to suspend the Diet throughout last fortnight.

As a gesture of appeasement to Tokyo capitalists, Premier General Hayashi named Managing Director Seihin Ikeda of Mitsui & Co. to be president of the Bank of Japan. This was as if President Roosevelt should suddenly appoint a Morgan Partner to be Governor of the Federal Reserve Board. As would have been the case in Wall Street, financial Tokyo was ''immensely relieved." Next followed a hammer blow. When Premier Hayashi first received imperial orders to form a Government, the "gold-braiders" clamored for Lieut. General Gen Sugiyama, an out-and-out militarist, to be War Minister. Premier Hayashi, however, with a show of tact, gave that portfolio to Kotaro Nakamura. Last week Kotaro Nakamura, after being in office for only one week, conveniently fell ill, and to the undisguised joy of the Army, General Sugi yama was given his job. The new War Minister at once showed his gratitude by announcing to Finance Minister Yuki that "the Army would not consent to a reduction of its $205,000,000 budget."

After this Japan's political parties attached scant importance to a high-sounding declaration made this week by Premier & Foreign Minister General Senjuro Hayashi: "The present Government will seek adjustment of the Empire's relations with China & the Soviet Union," will "adhere to the principle of non-menace and non-aggression."

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