Appendix No. 1

Hirota Cabinet's National and Foreign Policies (Informally reported to the Emperor on 15 August 1936)

Fundamental Principles of National Policy

1. The aims of our state administration are to stabilize the government at home, and to promote better diplomatic and trade relations abroad. It is in line with the fundamental principles of the Empire that we should seek to become in name and in fact a stabilizing power for assuring peace in East Asia, thereby ultimately contributing to the peace and welfare of humanity. The fundamental national policy for Japan, dictated by the prevailing domestic and international situation, is the securing of a firm diplomatic and defensive position on the East Asiatic Continent and the extension of national influence as far as the South Seas. The following is the outline of the basic program for the realization of these aims:

a. It is the embodiment of the spirit of the Japanese way of life to attempt to achieve unity in East Asia based on a "live- and-let-live" principle. This may be accomplished by destroying the Great Powers' East Asiatic policy of aggression. This should be the principle aim of our foreign policy.

b. National defense will be brought to a level necessary for Japan to secure her position as the stabilizing power in East Asia. This will be accomplished through preservation of her peace and safeguarding her development.

c. Our basic policies for the continent include the elimination of the menace of the Soviet Union by assisting in the sound development of Manchukuo and strengthening the Japan-Manchukuo defense setup, preparing against Great Britain and the United States economic development by bringing about the close cooperation of Manchukuo, Japan and China. In carrying out these policies, care must be exercised to avoid aggravating friendly relations with other nations.

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d. In our national and economic expansion to the South Seas, especially to the outer South Seas area, our influence will be extended gradually and by peaceful means, with utmost care being exercised to avoid provoking other nations. This development, together with the healthy growth of Manchukuo, will contribute to the repletion of our national strength.

2. All our domestic and international policies will be adjusted and unified along lines of the basic national policies mentioned above. New administrative policies and actions in conformity with the current situation will be effected, and the following measures; will be taken for this purpose:

a. National defense and armament.

(1). The repletion of Army forces will aim at a strength to resist the forces the Soviet Union can employ in the Far East. The garrisons in Manchukuo and Korea will be replenished in order that they can deliver the initial blow to Soviet forces in the. Far East at the outbreak of hostilities.
(2) Naval rearmament will be brought to a level sufficient to secure command of the Western Pacific against the United States Navy.

b. Foreign policy will be revamped with a view to achieving our fundamental national policy. The Army and Navy, while avoiding all direct action, will do everything possible to facilitate the working of the diplomatic machinery.

c. In order that the revision of political and administrative structures, the establishment of economic and financial policies, and the operation of all facilities may conform with the fundamental national policy mentioned above, the following measures will be taken:

(1) The people's determination to overcome the crisis will be strengthened by guiding and unifying public opinion.
(2) Administrative structures and economic systems will

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be reformed with a view to promoting industries essential for the execution of national policy and reviving vitally necessary foreign trade.
(3) Proper measures will be taken to establish good living conditions for the people, increase their bodily strength and foster sound thinking.
(4) Appropriate measures will be taken for the rapid expansion of aviation and shipbuilding industries.
(5) Policies aimed at self-sufficiency in resources and materials essential to national defense and industry will be established.
(6) Diplomatic activities and cultural propaganda abroad will be intensified through the revision of the diplomatic set-up as well as by information and propaganda agencies.

Foreign Policy of the Empire

Foreign policy will be based on the accomplishment of our national policy. In order to bring all actions into line with national policy, close liaison will be maintained with all civil and military authorities dispatched abroad, Moreover, positive guidance will be given to the people and complete control will be effected over diplomacy. For the protection and promotion of our just and proper national rights and interests, a self-effacing attitude is to be avoided and a positive one taken. At the same time, efforts will be made to allay the Great Powers' suspicion and apprehension toward the Empire.

I. Over-all Policy

Our fundamental foreign policy aims at the establishment of the Empire as the stabilizing power in East Asia to secure lasting peace in this part of the world and to assure the existence and advancement of the Empire. To this end, the growth of Manchukuo will be promoted, our special and inseparable relations with that country

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will be further strengthened, our relations with the Soviet Union and China will be independently adjusted from a global standpoint, and our advancement to the South Seas area will be made peacefully. In recent years, the Soviet Union has strengthened sharply its national defense and international positional. It has reinforced its forces in the Far East to an unwarranted degree, exerting increasing military and revolutionary pressure against this region. Moreover, the Soviet Union is planning the communication of all areas of this region, seeking to force the Empire into still more disadvantageous positions. This is a direct menace to the national security of the Empire and a serious obstacle to the execution of current East Asian policy. Therefore, emphasis will be laid for the present on the frustration of Soviet aggressive designs in the Far East. In particular, we should seek through diplomatic means to eliminate the menace of Soviet armament and halt its communization attempt, while working for the replenishment of national defense armament. Accordingly, it is necessary that the Empire, considering the over-all current international situation, adjust her relations with major powers, and bring her diplomatic machinery into operation, thereby making the situation mope favorable to us.

II. Outline of the Program

1. In view of the current domestic and international situation, extreme caution will be exercised to avoid causing trouble with the Soviet Union, and efforts will be exerted to settle problems entirely by peaceful means.

a. Commissions will be established to decide the frontier line extending from the Khanda Lake to the Tumen River and to arbitrate on frontier zone conflicts. Similar functioning bodies will be created for the Manchukuo-Soviet and Manchukuo-Mongolian borders.

b. At an appropriate time a proposal will be made for

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the establishment of a demilitarized zone.

c. In the event the Soviet Union expresses a desire to conclude a non-aggression pact, the Empire will clearly signify its intention of agreeing, on the condition that both countries set the problems, including the problem of adjusting their military forces in the Far East, to bring about a balance of power.

d. Appropriate measures will be taken to prevent the Soviet Union from committing ideological infiltration into Japan, Manchukuo and China.

2. A dignified attitude and just measures will be adopted in dealing with Chinese central and local governments. Coupled with our economic measures for the Chinese masses, steps will be taken to guarantee correction of their attitude toward Japan. Thus, friendly cooperation between the two countries, based on the "live-and-let-live" principle, will surely materialize. In the North China area, measures will be taken to realize economic and cultural cooperation with Japan and Manchukuo, and efforts will be made to turn North China into a special area where Japan, Manchukuo and China will join in mutual. defense against communistic inroads from the Soviet Union. As regard local governments, other than that of North China, measures will not be taken to either further or obstruct the unification or split of China.

The above are the basic principles of our China policy, upon which all our practical measures will be based. In view of our present relationship with the Soviet Union, priority will be given in forming our China policy to making North China a special anti-Communist, pro-Japanese and pro-Manchukuo area, obtaining resources for our national defense program, and the expansion of communication facilities. (Plans requiring immediate execution will be dealt with separately.

3. The improvement of friendly relations between our country

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and the United States might greatly contribute to offsetting British and Soviet influences. However, in view of the fact that the United States is engaged in rearming and views the development of our China policy with great concern in the light of her traditional Far Eastern policy, there is the danger that she may assist China, making that country dependent on the West. Moreover, it is feared that this would eventually create a situation exceedingly unfavorable to the execution of our policy against the Soviet Union. Therefore, we must seek the United States' understanding of our just attitude through respect for her commercial interests in China. At the same time, we should endeavor to improve friendly relations based on economic interdependence, thereby causing the United States to refrain from interfering with our Far Eastern policy.

4. Since the development of the political situation in Europe has an important bearing on East Asia, efforts must be exerted to turn it to our advantage, particularly to hold the Soviet Union in check.

a. Great Britain and Japan have many areas of conflicting interests. In view of the fact that Great Britain, among the western powers, has the greatest stake in the Far East and since the attitude of other European countries depends largely upon that of Great Britain, it is especially important for us to take the initiative at this time to improve relations with Great Britain. In this way Great Britain may side with us in our relations with the Soviet Union and act as a counterbalance against the Soviets, thereby lessening the obstacles lying in the way of our overseas expansion. Since the adjustment of Anglo-Japanese relations in China will have far-reaching results, we must endeavor to take appropriate measures for breaking the deadlock over China and for making an over-all adjustment in Anglo-Japanese relations. This is to be accomplished through efforts to get Great Britain to recognize and respect Japan's special

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and vital interest, especially in China, and also through respecting Great Britain's rights and interests there. We must, nevertheless, guard against Great Britain, lest she adopt a policy of applying pressure against Japan in concert with other powers, particularly the United States, the Soviet Union and China.

b. Germany, in her relations with the Soviet Union, is in much the same position as Japan. In view of the special relationship between France and the Soviet Union, it is deemed advantageous for Germany to act in concert with Japan in matters of national defense and anti-Communist policy. Therefore, our friendly relations with Germany are to be improved and measures are to be taken to realize Japanese-German collaboration as occasion demands. Moreover, this relationship is to be expanded to include such countries as Poland, with a view to checking the Soviet Union. In addition, efforts are to be made to enlighten Moslem nations and European and Asian countries neighboring the Soviet Union, with attention paid to the improvement of friendly relations with those nations.

5. Occupying an important position in our global trade relations and being an area indispensable for the industrial and national defense of the Empire, as well as a natural field for our racial development, the Southern Region mist be studied as an area for our expansion. But our advance in that area must be conducted peacefully and gradually, with utmost efforts exerted to prevent provocation of other countries and to allay their misgivings against the Empire.

As for the Philippines, we will look forward to her complete independence and, if called upon, be ready to guarantee her neutrality.

For our expansion into the Netherlands East Indies, it is extremely important that we allay the misgivings of the people toward us and convert them into a pro-Japanese nation. Appropriate

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measures, therefore, will be taken for this purpose. If need be a non-aggression pact with Holland will be concluded.

Thailand and other underdeveloped nations should be given proper guidance and assistance on the basis of our principle of coexistence and coprosperity.

6. Overseas trade is not only indispensable for the maintenance and betterment of the economic life of our nation but also contributes to the improvement of our finances and the state of our international obligations. It is particularly important, under the current domestic and international situation, that foreign trade be expanded to the utmost. Thus, we must develop our economic power by rationalizing our foreign trade and at the same time acquiring important natural resources through proper adjustment of our interests to those of other powers.

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