As the Chinese New ¥ear grew near the Nanking Govern-
ment was under the necessity of paying its troops, and
applied to their Japanese friends for the cash payment as
arranged and the arms. The Japanese, however, who had
not delivered the arms, refused to pay over the ¥7,000,000
instead, and the Nanking Government had to agree to
accept the ¥3,000,000 only. But when the moment
came for that small amount to be paid, it was not forth-
coming.' "I used all my efforts," says Dr. Terao, "to
get the firm in question to somehow raise the money, but
without success. On my return to Japan I was informed

' The loan referred to is the Okura loan, mentioned earlier. It was
officially stated that about Y2,ooo,ooo had been advanced before the
authorities forbade completion. The money was subsequently refunded
by the Chinese^



74 JAPAN'S FOREIGN POLICIES

that the firm had refused payment of the loan in question
under pressure from the Elder Statesmen. It is deplorable
that the Japanese should thus have brought upon them-
selves the disgust of the Chinese owing to pressure from
the Elder Statesmen."

The importance of M. Ijuin's rebuke to the Japanese
journalists and of Dr. Terao's statement lies in the fact
that in Japan the press, the money market and the export
trade are absolutely under governmental control. The
Press Law in Japan gives the Foreign, War and Naval mini-
sters absolute power of suppression and repression over
the newspapers. The export trade is carried on under the
strictest Government control, whilst even a debenture
loan for a private company cannot be raised without
official sanction.
