The Ambassador in Japan (Grew) to the Secretary of State
[Received October 23—5 a.m.]
164. My 156, October 11, noon.68 Latest indications are that the Army and Navy will secure most of their monetary demands in the next budget, but that the Minister for Foreign Affairs will obtain general acceptance of his contention that the country is in no danger of attack at this time; and that the increased expenditure for the Army and Navy, especially the former, will be based largely on their technical and reasonable need of much new equipment because of the general advance in military and naval armament in recent years of which Japan must keep abreast.
Outwardly this does not look like a victory for the moderate elements; as a matter of fact it is a recognition of the position of the Minister for Foreign Affairs to an extent which seemed unlikely a few months ago. Consequently we may expect less bluster and truculence on the part of the military in matters affecting foreign affairs; they will have most of the money they want, but will admit that the Minister for Foreign Affairs should not be embarrassed in [Page 441] the conduct of his office by provocative measures and statements which tend to nullify his efforts towards improving Japan’s international relations.
In view of the foregoing situation, which amounts to a compromise between the discordant elements in the Cabinet, the outlook for a continuance of the present govermnent appears more favorable than when my 156 was sent.