Memorandum This was a pact against the Communist International. Under its terms the two governments are bound “to keep each other informed concerning the activities of the Communist International, confer upon the necessary measures of defense and to carry out such measures in close cooperation.” They also agree to take “stringent measures against those who at home or abroad work on direct or indirect duty for the Communist International or assist its disintegrating activities,” and to invite other states to associate themselves with the agreement. The Soviet Ambassador in London, Mr. I. Maisky, in a public speech on March 13, 1937, referred to “German-Japanese rapprochement, which according to the most reliable information at our disposal, amounts practically to a German-Japanese Military Alliance against the U.S.S.R.” 1937 Feb. 2 - The Hayashi Cabinet (2/2/37 to 6/3/37) took over this date. (According to Informant, General Kazushige Ugaki received an Imperial Order to form a new Cabinet, but was unable to do so because the Army refused to appoint a War Minister.) Ishiwara is said to have been the guiding spirit behind the formation of this Cabinet. A general election was held in April 1937, resulting in 100% increase for the Social Mass Party which, according to the Informant, was “in obvious protest against the Military radicalism which was fast destroying parliamentary government.” The resulting chaos forced Hayashi to resign. See F.6, S.22. May 19 - The Minister of War delivered an address to the Assembly of Prefectural Governors in Tokyo. This was shortly after the formation of the Kuomintang-Communist “United Front” in China. (See p. 154, etc. of survey of Int. Affairs 1937, Vol. 1.) This move evoked in Japan disquiet and even alarm. In this address the War Minister declared that “as a result of a centralization of power achieved under an Anti-Japanese banner,” China was becoming over-confident and adopting an attitude “insulting to Japan.” There was danger, he said, that China might soon adopt “all sorts of measures destined to balk our peaceful expansion at its very source.” June 4 - The first Konoye Cabinet (6/4/37 to 1/4/39) took over on this date. (Informant says the influence of Ishiwara continued in this Cabinet.) A secret committee, dominated by the Inner Group, drew up a plan called “Seso Shido Keikaku Sho” (War Policy Plan), which outlined the action to be taken by the Government on finance, money and banking, food, clothing, industries, trade and commerce, transportation, labor and tenant problems, when war came. The last meeting of this committee was held in August 1937, one month after the North China Incident occurred. See F.6, S.22. 2 June 21 - Amur Incident. This incident between Japan and U.S.S.R. convinced the Japanese Military that there was no immediate likelihood of Russian intervention, and it acted as a spur to force the issue in North China. (See survey of Int. Affairs 1937, Vol. 1, p.p. 148-152.) July 7 - The China Affair. This occurred near Marco Polo Bridge. This is apparently also known as the Lukouchiao Incident. (See survey, 1937, Vol. 1, p.p. 169-193.) According to the Informant named in F.6, S.22, over one year before the July 7 Incident occurred 2 This incident on July 7, 1937 was the beginning of the Invasion of China It was an incident involving Japanese and Chinese soldiers. 201