172 FROM ABORTIVE REVOLUTION TO OPEN WAR Germany's need for colonies. He spoke ironically regarding the anti- Comintern agreement. The Ambassador emphasized the fact that Soviet-Japanese relations had suffered a severe set-back as a result of the German-Japanese agreement. AS JAPAN PREPARED TO FIGHT THE WORLD January i, 1937 The New Year for Japan, so far as her international relations are concerned, opens in an ominous key. Not only has her reputation in the world, suffered an important deterioration during the past year, but her relations with Great Britain, Soviet Russia and China are on a far from satisfactory footing and recently have been growing worse. With the Dutch East Indies relations have improved. Only with the United States, among her nearer neighbours, can it be said that the status quo has been maintained, but with the expiration of the Washington Naval Treaty, due to Japan's intransigeance, and the risk of a race in sea power and fortifications, the long future as contrasted with the immediate present holds out no evident grounds for optimism. * For this unhappy situation Japan herself is primarily to blame, for she has played her cards unwisely and is now reaping the logical results. It is the old story of the defects arising out of a dual control of foreign policy wherein the civil authorities of the Government, including the Prime Minister and the Foreign Office, are overridden by the military and are subject to the behests of the Army and Navy, which know or care little about developing good relations with foreign countries but without whose support the cabinet could not long survive. We saw very much the same thing working out in Germany in 1914. United States General Araki observed to the British Ambassador a year or two ago that if it were not for the exclusion clause of the Immigration Act of 1924, the relations between Japan and the United States might be considered as thoroughly satisfactory. While it is true that no current controversies of prime importance are at present sufficiently acute seriously to disturb those relations, nevertheless we should not close our eyes to the fact that several current issues may in due course become acute and are potentially hazardous. First and foremost is the naval issue which has automatically arisen with the termination of the Washington Naval Treaty. How the future will shape up in this respect we cannot yet foresee, but it is safe to say that if a race in naval building and in the construction of fortifications results, the suspicion and uneasiness engendered will inevitably make for tenseness in those relations. Other issues which appear to be potentially disturbing are Japan's aggressive policy in China with the possibility of that policy eventually interfering with