Brave Words

Japan's rubber-stamp Diet last week heard its new Premier, Fascist-minded Baron Kiichiro Hiranuma, make some unorthodox admissions: 1) Chinese resistance was formidable; 2) in conquered territory Japanese troops controlled only cities and communications lines; 3) the Japanese Army will have to remain in China for a long time to come.

On the other side of the war, the Chinese appeared cocky. Back in Washington, Nelson Trusler Johnson, able and well-informed U. S. Ambassador to China, reported that Chinese morale was excellent, China's hopes high. In Chungking, Sun Fo, President of the Chinese Legislative Yuan, son of the late Dr. Sun Yatsen, substantiated Mr. Johnson: "Our prospects are progressively brighter. We fight on with growing confidence, new unity and new strength."

No less bright was the picture of Chinese finances. China has borrowed $25,000,000 from the U. S., hopes for $15,000,000 from Great Britain. Last week China canceled interest and amortization payments on debts secured by her customs because the Japanese collect nearly all the customs. At the beginning of the war there was an estimated $300,000,000 worth of Chinese assets held abroad. The present Chinese kitty is supplied with funds raised by taxing the internal transportation of goods, salt, cigarets and textiles, by floating some $200,000,000 worth of patriotic loans.

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