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The Ambassador in Japan (Forbes) to the Secretary of State
[Received February 13—5:15 a.m.]
65. From various sources I have heard that Minister of War Araki, the leader of what might be called the “ultra military faction”, has been conservative to an extent that his former followers feel he is now no longer supporting them.
This conservative attitude is attributed in part to the influence of Minister of Finance Takahashi who has pointed out that Japan is headed directly for financial ruin if the operations in China continue. There is also a large conservative element in the community who make no secret of their concern over the present policies, and their influence is all for peace.
Baron Kato has again urged upon me the importance of patience and inactivity on our part for the present, in the belief that the conservative elements, in the absence of outside pressure, are forming to assert themselves. Popular sentiment, once the war psychology has passed, will be in favor of peaceable methods.