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The Chargé in Japan (Neville) to the Secretary of State

No. 561

Sir: Referring to the Embassy’s despatch No. 512 of February 27, 1932,5 I have the honor to report that attention has been further directed [Page 682] towards reactionism in Japan as a result of disclosures which followed the assassination on March 5th of Baron Dan, Managing Director of Mitsui, and of frank interpellations during the extraordinary session of the Diet that ended March 24th.

According to reports in the press the assassin of Baron Dan, as well as the assassin of Dr. Inouye, Minister of Finance, who was murdered on February 9th, were members of a “blood brotherhood league” which had twenty members and which intended to murder eight other prominent Japanese. (Details are given in Enclosure No. 1.)6 Fourteen members of this group have been indicted for murder, including the alleged leader, a priest named Nissho Inouye. The press states that “it is reported that the late Lieutenant-Commander Fujii of the Imperial Navy (killed early in the recent action at Shanghai) supplied eight revolvers to the blood brotherhood and that a certain military officer in active service supplied fifteen revolvers.”

That the organization of assassins was on a larger scale than the press reports indicate I have heard from a reliable Japanese source in direct contact with the Metropolitan Police Board. According to this informant the police discovered seven groups* of approximately twenty members each, all under the direction of the priest, each group maturing plans for similar direct action, all in possession of revolvers that were supplied by naval and army officers—the revolvers having been brought from China by airplane. I was further told that the membership included intellectuals, university students, and even lower officials of the Government, and that all the members have been or are in custody for investigation.

The most interesting point—but one on which definite information is as yet unobtainable—is the possible connection of the priest and these seven groups (which appear to be a perversion of the communist cell system) with persons of importance. The informant mentioned above stated that a number of culprits took refuge in the house of Mitsuru Toyama, entry of the police being prevented for some days by super-patriots armed with swords. Mitsuru Toyama founded and has been the leading spirit of the Kokuryukai (Black Dragon Society) the membership of which includes General Araki, Minister of War, Admiral Kanji Kato, former Chief of the Naval General Staff, and (retired) Admiral Kamiizumi, advocate of a stronger navy. The press reported that some of the offenders were discovered hiding in a house rented but not occupied by a Mr. Gondo, who in the past has taught military men a philosophy which is a mixture of the principles [Page 683] of Bushido, Shintoism, and Chinese classics. In the past among these pupils were General Araki and Lieutenant-Commander Fujii, mentioned in connection with the supply of revolvers. The priest, Nissho Inouye, frequented Gondo’s house until shortly before his arrest, at which time he was in hiding in the residence of a junior naval officer.

All this has aroused widespread suspicion that men of standing were implicated in the assassination conspiracy. This is indicated by a statement reported to have been made by the Public Procurator, apparently for the purpose of allaying such doubts. He is quoted as having said that “the judicial authorities have disclosed the fact that Nissho Inouye (the priest) is the only leader and instigator of the members of the Blood Brotherhood League” and that “no other persons of great influence outside the League are implicated in the movement of this body”. I am unable to throw more light on this point at present. If there are others of importance culpable the reason for refraining from taking measures to punish them are very probably similar to those that prevented police action after the discovery of the coup d’état plot of last October, namely, the danger of organized resistance.

The effect of the police disclosures created widespread uneasiness, which was reflected in certain speeches made in the recent extraordinary session of the Diet, although certain allowance must be made for utterances by members of the Opposition. In the Lower House a representative said on March 24th: “Of late the capital is almost in chaos; social unrest is very conspicuous, almost unprecedented.… Sensational rumors are everywhere.… It is surprising to find that bullet-proof vests are selling well and that one was presented to Premier Inukai.… In Japan to-day there are two dangerous undercurrents, namely, communism and Fascism. I might say that Fascism has for its object the destruction of parliamentary government and capitalism. In fact the Fascists are looking for an opportunity to alter the national organization of Japan.”7 In reply the Prime Minister said, in part: “It is true that the movements of Fascists are progressing remarkably beneath the surface.” In the House of Peers a member stated on the same day: “The police have arrested accomplices of the two assassins. Among them are several university students. It seems that military men have had connection with various groups of a dangerous character.… Through the medium of magazines and other publications these dangerous bodies have been propagating Fascism.… The Blood Brotherhood League is merely one of such dangerous bodies.”7

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The uneasiness that was prevalent during March, however, has noticeably decreased during the past week or two. There are fewer rumors of a disturbing nature in circulation. It is recognized that the reactionary groups continue to be a potential danger, particularly if a section of the military were to express its dissatisfaction with political affairs by direct action. At the moment any such action is not regarded as imminent. This aspect of the subject, however, will be discussed in a despatch now in preparation9 that deals with the growth, organization, and aims of the reactionary societies.

Respectfully yours,

Edwin L. Neville
  1. Not printed.
  2. Not printed.
  3. The first group was organized on April 10, 1931. [Footnote in the original.]
  4. Omissions indicated in the original.
  5. Omissions indicated in the original.
  6. Not printed.