Appendix No 2

General Principles to Cope with the Changing World Situation
(Decided at the Liaison Conference between Imperial General
Headquarters and the Government on 27 July 1940)


The Japanese Empire will strive for the immediate settlement of the China Incident by improving internal and external conditions in keeping with changes in the world situation and, at the same time, will solve the southern area problem by taking advantage of opportunities.

Changes in policies, with emphasis placed on measures for the southern area, will be decided in consideration of various conditions, internal and external.

Various preparations for the matters described in the above items will be undertaken as soon as possible.


Article 1.

In regard to the settlement of the China Incident, the combined strength of political and operational strategies will be concentrated thereon and immediate subjugation of the Chungking Regime by every possible means, to include the prevention of third power aid to Chiang Kai-shek, will be carried out. Efforts will be made to accelerate plans for the southern advance by utilizing the changes in the situation advantageously.


Article 2.

In regard to external measures to hasten the settlement of the China Incident and, at the same time, solve the problem of the southern advance, the following steps will be taken:

1. Emphasis will be placed on measures dealing with relations to Germany, Italy, and Soviet Russia. In particular, political unity with Germany and Italy will be strengthened immediately in an attempt to effect readjustment of diplomatic relations with Soviet Russia.

2. A firm attitude toward the United States will be maintained and the inevitable and natural deterioration of relations with the United States, following the execution of the measures mentioned in paragraph 1, will be accepted. However, the reactions of the United States will be kept under strict surveillance and wherever possible, measures will be taken to avoid increased friction arising from Japanese actions.

3. The following steps will be taken toward French Indo-China and Hongkong:

a. Request will be made to French Indo-China (including Kwangchowan) for complete discontinuation of aid to Chiang Kai-shek. At the same time, French Indo-China will be requested to furnish supplies to our army, to permit the use of airfields and to allow passage of Japanese troops through the country. Moreover, efforts will be exerted to obtain the resources necessary for the Japanese Empire. Armed strength will be employed, if necessary, depending upon the situation.

b. Various maneuverings will be carried out so as to


eliminate immediately the antagonistic attitude of Hongkong. Burma will be completely blockaded to prevent aid reaching Chiang Kai-shek.

c. Efforts will be made to eliminate the hostile attitude of settlements and concessions and to evacuate troops of belligerent countries from these areas. At the same time, China will be assisted in obtaining the gradual return of settlements and concessions.

d. In carrying out the measures described in the preceding two paragraphs, armed strength will be employed, where necessary, in accordance with Article 3.

4. Efforts will be made to obtain important resources from the Netherlands East Indies for the present by diplomatic measures.

5. In view of the importance to our national defense of French and former German islands in the South Pacific, steps will be taken so that possession thereof can be achieved, if possible, by diplomatic measures.

6. Measures will be taken so as to gain, by amicable means, the cooperation of other countries in the southern area.

Article 3.

Armed strength will be employed against the southern area in accordance with the following:

1. As the settlement of the China Incident is generally completed, armed strength will be used where necessary, insofar as various internal and external conditions permit, to solve the problem of the southward advance.

2. In the event the China Incident remains unsolved, necessary


measures, short of starting hostilities against a third power, will be taken. In this case armed strength may be employed to assist in the advance southward provided that various internal and external conditions improve.

3. The time, extent and method of utilizing the armed strength described in the preceding two paragraphs will be decided, depending upon the situation.

4. In employing armed strength, efforts will be made to limit the war adversary to Great Britain insofar as possible. However, thorough preparations for the commencement of hostilities against the United States will be made as it may prove impossible to avoid war with that country.

Article 4

In regard to the internal control of the nation, while creating and arranging various conditions necessary to carry out the aforementioned measures, work on the defense of Japan, based on the new world situation will be accelerated. For this purpose, efforts will be made to realize especially the following:

a. Execution of a powerful administration.

b. Comprehensive enforcement of the National General Mobilization Law.

c. Establishment of a wartime economic structure.

d. Stockpiling of war material and increasing of shipping capacity.

5. Adjustment of production increase and armament expansion.

6. Encouragement of the national spirit and unification of public opinion at home.


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