Three to Make Ready

From the foreign consulates and business houses overlooking Yokohama harbor the bulk of the Japanese Fleet was in plain sight last week: the Fleet had suddenly steamed into the harbor and dropped anchor with a rattle and splash. The publicity attending this move looked like a sign that Japan was ready for adventure and did not care who knew it.

There were other signs. Three in particular pointed to something drastic--and soon:

> In an unexpected shake-up of the Army High Command, Lieut. General Seishiro Itagaki was removed as Chief of the General Staff of the Japanese forces in China, promoted to the rank of general and sent to command the Japanese forces in Korea. Mummy-faced General Itagaki ("I have often been likened to a corpse on reprieve") is the idol of the younger, Fascist-minded Army faction, is credited with originating the North China buffer state plan, which he carried out in Manchukuo. An attempt to carve another buffer state out of the Maritime Province of Siberia might well begin with an offensive from Korea.

> The Cabinet decreed a "capital mobilization plan," bringing all finance, industry, production and distribution under Government control. All financial institutions will be organized into a single body with the Bank of Japan as the nucleus. Private financing will be forbidden. A semi-compulsory national-savings plan will be inaugurated. Control of stock exchanges and money markets will be tightened. Available capital will be allocated "rationally" by the Government. At this news the Stockmarket went from a sag into a slump.

> On the motion of Home Minister Baron Kiichiro Hiranuma the Privy Council approved the appointment of two special investigators in the Foreign Affairs Section of the Police Bureau. Purpose of this move is to extend Thought Control (Japanese for suppression of free speech) to all matters of foreign policy. The police immediately issued a warning against "loose talk" in criticism of the Government's still unannounced "momentous decision" (TIME, July 14).*

On the day the Army shake-up was announced Emperor Hirohito conferred for two hours with War Minister Lieut. General Eiki Tojo. Next, the Son of Heaven received Navy Minister Admiral Koshiro Oikawa, questioned him for nearly an hour. Then for two hours more the Emperor listened to Prince Konoye. Apparently Japan was almost ready to strike. But where?

Foreign Minister Yosuke Matsuoka, who had little to do now that Japan's policy was definitely decided, took to his bed with a minor, or political, illness. There Russian Ambassador Constantin Smetanin tracked him down, spent a nervous hour and a half trying to get an assurance that Japan would not stick a knife in his country's back.

Outward signs pointed to a move to the south. The press started a campaign designed to show that Great Britain, the U.S. and Chungking were plotting the "encirclement" of Japan. There were hints that Thailand, which had a mild domestic crisis last week, might need Japanese "protection." Pointing straight at the easiest mark, Domei accused French Indo-China of persecuting pro-Japanese Annamites, of maintaining "close economic, military and political relations with Great Britain and the United States." Domei called for "counter-measures." The Japan Times and Advertiser, Foreign Office mouthpiece, said flatly: "If the alarming picture of anti-Japanese operations in Indo-China and neighboring States is only half true, this country would be justified in taking adequate measures for the protection of its interests." The advantage of attacking French Indo-China and Thailand, of course, is that Bangkok is only 905 miles, Saigon only 705 miles, from Singapore.

But Japan still had a sharp eye cocked north, to see if Russia dared weaken her Far Eastern Red Banner Armies to support the armies defending Moscow. Reason for the Fleet's presence in Yokohama harbor was made plain by Navy Spokesman Rear Admiral Minoru Mayeda, who said: "A further crisis might arise in the Sea of Japan itself, should Vladivostok take on an anti-Japanese complexion. You may be sure that the Imperial Navy is prepared to meet any emergency."

It was now or never for Japan -- even if that meant fighting three wars at once.

*Marked for Thought Control, if it does not behave itself, is a certain Council For Launching National Policies, which is backed by that grey-bearded, ascetic fire-eater, Mitsuru Toyama, head of the Black Dragon Society. The Council For Launching National Policies has been holding public meetings, and lately it sent a spokesman to see Premier Prince Fumimaro Konoye. The Premier had one of his convenient colds, so the Council sent the Government a letter of advice, with a broad hint that the advice had better be followed.

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