4,000,000 Shocks

Shock after news shock smote the sensitive Japanese people last week, made them feel that their Empire is menaced by insidious foes, made them prouder than ever of their nutbrown, nut-hard Army.

Exclusive dispatches flashed from China's capital. Nanking, to Japan's leading newsorgans Nichi-Nichi (Tokyo) and Mainichi (Osaka), delivered the first shock to 4.000.000 slant-eyed readers. They read that a smart Japanese journalist claimed to have caught U. S. Minister to China Nelson Trusler Johnson in a piece of "backdoor diplomacy" as amazing as it would be unfriendly to Japan.

"It has transpired," read the Japanese flash, "that the United States pulled the wires in the resumption of diplomatic relations between Nanking and Moscow!

[TIME, Dec. 26.] . . . The Washington Government instructed Mr. Johnson to ... do this ... to hold Japan in check. . . .

"An understanding was also reached that the United States will give loans to China for the purchase of arms to oppose Japan. . . Having secured this promise of assistance from the United States the Nanking Government now proposes to sign a military alliance with the Soviet Union! . . . Japanese authorities here [in Nanking] are greatly shocked by these startling revelations."

Since U. S. Secretary of State Henry Lewis Stimson is a man of the mysterious West whose mental processes seem more outlandish to the East every time he sends a note, Japanese could half fear and half believe last week that Washington is leagued with Moscow and Nanking. Staggering would be such an alliance: the world's largest nation (Russia) plus the most populous (China) j)lus the richest (U. S.), and all against Japan!

Next shock to the Japanese people was news that their Government is taking specific steps to put the Army on a war basis. Ominously the Japanese War Ministry announced: "Although Soviet Russia's attitude toward Japan is at present entirely friendly it is impossible to forecast the future. Therefore, we must bring our forces in Manchuria to a state of efficiency, modernization and mechanization equal to that of the Red Army."

"More men are needed for the newly equipped units of the Army," declared War Minister General Sadao Araki in a bristling official statement. "If thorough training were carried out it would take 17 years to train the required number of [mechanized Army] specialists, but present conditions do not admit of this leisurely, though ideal, method." By rush methods 100,000 men will be trained in 1933-34. Another shock of the week was a sudden announcement by Tokyo police that they had caught four men red-handed in a plot to assassinate Premier Viscount Makoto Saito. Was there perhaps something strange about this? There was. The four men were caught not last week but last August. News of their plot was hushed by the Government, carefully saved for a purpose. Possibly the Government also had something to do with springing the "revelations" concerning U. S. Minister Johnson. To the Japanese masses these shocks were real last week, but to Japanese statesmen they were convenient. Premier Saito, who was not assassinated last August, is now trying to jam through the Japanese Diet which recently reconvened (TIME, Jan. 2) bills covering Government expenditures so stupendous that the Japanese people will only accept them if they believe Japan's very life to be at stake.

The cost of conquering Manchuria, turning it into "Independent Manchukuo," and the constantly increasing cost of policing Japan's puppet state have brought the Empire to a fiscal brink. Next year's budget is to balance at the largest figure in the history of Japan--the fantastic sum of 2,239,000,000 yen ($1,119,500,000 at par, $470,019,000 at current exchange). So much money cannot be raised by taxation. It is to be raised by what will amount to forced internal loans with consequent inflation and further depreciation of the yen. Clearly the only way to lead the Japanese people down so dangerous a road is by stuffing them with such stories as the "alliance" of China, the U. S. and Russia.

According to Japan's zodiac 1932 was the "Year of the Ape," 1933 is the "Year of the Cock." Loudly crowed bantamweight War Minister Araki on New Year's Eve:

"The Year of the Cock means that everything can be accomplished. It is fraught with great significance for Japan. The celestial light is guiding Japan toward expansion. . . .

"It is impossible to foresee what action the League of Nations will take regarding Manchuria, but there is no occasion for the Japanese to feel concerned. . . . By acting boldly, the Japanese can overcome all obstacles. By striking those who stand in our way. the Japanese can realize their national aspirations."

Two days later Japanese and Chinese troops attacked each other in the streets of Shanhaikwan, the border city between Manchukuo and what is indisputably China. Each side charged the other with firing first. As fighting continued Japanese bombers zoomed down from Mukden, streaked for Shanhaikwan. bombed the Chinese defenders of the city. All Japanese troops in North China were ordered to mobilize and reservists in the Chinchow area were rushed into action. Chinese reinforcements poured in from the south and west. While the fighting on a broadening front continued into last week Japanese forces were reported to be in full control of Shanhaikwan--within the Great Wall.

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