ally fixed, and prohibited in such factories the employment of workers under 14 years of age, in accordance with the Draft Convention fixing the Minimum Age for the Admission of Children to Industrial Employment, adopted at a Plenary Session of the First International Labour Conference. Regulations prohibiting nightwork for all male and female workers under 16 years of age will come into force on July 1, 1929.

On September 13 the South Seas Trade Conference was opened by the Foreign Minister, Baron Shidehara. Some 200 delegates assembled in the Diet building, and the main object of the Conference was the encouragement of Japanese trade, especially with India and the South Sea Islands.

Baron Shidehara laid emphasis in his speech on the Government's oft-stated policy of discouraging emigrants from proceeding to countries where they were not wanted, and called attention to the absence of emigration questions from the agenda, in spite of the intimate connexion of the subject with trade. The agenda dealt in great detail with the organisation and protection of enterprise and investment, and the improvement of communications. Further points discussed were the reforms required in Japanese merchandising and trading methods, and the existing conditions as regards insurance, customs tariffs, and commercial treaties in relation to the projected betterment of trade facilities between Japan and the countries above-named.

An Act by which Japan came into line with most of the countries of the world took effect on November 1. Originally promulgated on April 13, 1910, the Alien Land Ownership Act underwent some modifications, of which the most important provided that, contrary to the unmodified Act, a foreigner, or foreign juridical person, may own land in Japan irrespective of nationality and of reciprocity as regards Japanese land ownership in their own country, excepting only in Japanese fortified zones, naval bases, or other places essential for national defence, unless by the authorisation of the respective Ministers of the Navy and Army. Japan and Saghalien came under the new law, but not Formosa; whilst in Korea, where foreign land ownership is permitted, no change takes place.

On October 7 a loan entitled the City of Tokio Loan was successfully floated in London. The amount was 6,000,000l., carrying interest at 5 per cent., the issue price being 8341. per nominal 1007. The payment of principal and interest was unconditionally guaranteed by the Japanese Government. The loan was raised principally for the purpose of reconstructing the city of Tokio, but 3,000,000l. was earmarked for repayment of existing short-term debt.

NETHERLANDS EAST INDIES.

In 1926 the new "Law regarding the Statute of Government of the Netherlands East Indies" (vide ANNUAL REGISTER, 1925, pp. 264-65) came into force, and for the last time the Dutch Parliament settled the Indian Budget in detail: in future it will decide only upon each of the sections as a whole. As a token of the new order, the new Governor-General, Jhr. Dr. A. C. D. de Graeff, who had been appointed to succeed Dr. Fock, formally assumed office before a public gathering of the People's Council. Jhr. Dr. de Graeff had already been Vice-President of the "Council of the Indies," besides having had a distinguished diplomatic career, and his appointment was greeted with great satisfaction, both in Holland and in the Dutch East Indies. He completely estranged public feeling, however, by the inaugural address which he delivered to the People's Council on September 7.

In this speech he announced that he would refrain from unfolding any definite programme, but that he considered it his duty to make a short statement concerning the standpoint of the Government with regard to the agitation of the so-called extremists. Although prepared to give sympathetic consideration to the wishes and ideals of every political movement, he could not regard as such any movement which was utterly opposed, not only to the existing, but to any other order. Such a purely destructive movement was dangerous to the State, and must be combated by every Government with every legal weapon at its command; nor would he himself abstain from weapons the employment of which conflicted with his own personal feelings. Such weapons, however, should only be used in very exceptional circumstances. Government action in this matter ought not to degenerate into a systematic hunting down of extremists. The first thing needed was to restore the confidence of the "inheemsche" population in the Government's sense of justice. Jhr. de Graeff called for the co-operation of the European section of the population and Press, as also for the active support of those members of the native population whose education had qualified them to lead and direct the thoughts and feelings of their fellows. Opportunity for co-operation would be offered in various ways, one of which would be by opening to the natives the highest and most responsible positions in public life.

This address, and particularly the clause about the restoring of the confidence of the "inheemsche" population, was regarded as a stricture on the administration of the retiring GovernorGeneral. Jhr. de Graeff, therefore, took the first opportunity that offered in the debate on the supplementary estimates in the People's Council, to make an explanation on this point. He denied, with the greatest emphasis, that it had been his intention to criticise, even indirectly, the rule of his predecessor, or to

reproach him in any way. The word "inheemsche," which most people had regarded as synonymous with "inlandsch" (native), really referred to all those permanently settled in the Dutch East Indies, for whom that country had become a "fatherland." It was true that the interests of the natives were meant in the first instance, but not exclusively.

The Government was soon called upon to translate its principles into action. In the night of November 13 disorders broke out at several points in the western part of Java. Troops of armed native Communists made attacks on various Government buildings, even at Batavia. The simultaneousness of these attacks afforded clear evidence of a plot. The attempt, however, failed, and the Government succeeded in a short time in restoring peace and order. The outbreak of further disturbances in Java was prevented. An inquiry into the disorders led to the conclusion that they had been fomented from Communist centres at Singapore and in China.

In its statement to the People's Council on December 4, the Government declared that the facts already ascertained left little doubt that the disturbances were the outcome of a comprehensive scheme for the overthrow of the Government planned for a long time by the Communist leaders. The Government, therefore, had decided that the leaders of the Communist organisations in the Dutch East Indies ought to be rendered impotent for mischief. Those against whom legal proceedings in connexion with the disturbances were not being taken would be interned in New Guinea and in other remote islands. The vast majority of the population of the Dutch East Indies had no sympathy with Communist outrages, and might be assured that only those would be removed who were dangerous to society. The policy of confidence, outlined in the Governor-General's inaugural speech, would be adhered to.

A further step in the policy of decentralisation was taken by the inauguration of the first Provincial Council, that of West Java, by the Governor-General on January 25. Among the legislative acts of the People's Council the Bill for regulating the working of rubber deserves mention. The consent of the Governor-General will henceforth be necessary for establishing a factory for the working of native rubber. In granting a permit, account will be taken of the quantity of native rubber in the district in question, in proportion to the capacity, not only of the new factory, but also of those already in existence, so that on the one hand excessive competition amongst factories in the same district will be avoided, whilst on the other owners of rubber-lands will not be penalised by restriction of the opportunity to market their product.

Both the new Minister for the Colonies, Dr. J. C. Koningsberger, in introducing, in March, the Budget for 1926, and the

retiring Governor-General, Dr. D. Fock, in his valedictory address to the People's Council on May, 1925, pointed with great satisfaction to the state of the Dutch East Indies finances. The year 1925 indeed, instead of an estimated deficit of 13.3 million guilders on the ordinary, and of 52.6 millions on the whole service, showed a surplus of 100-3 millions on the ordinary, and of 52.6 millions on the whole service. For 1926 there was expected a deficit of 9 millions on the ordinary and of 56-7 millions on the whole service. In the Explanatory Memorandum to the Budget for 1927 the Government was able to announce that probably the receipts for 1926 would yield 64 millions more, and the expenditure would be 0.3 million less than was estimated. For 1927 there was expected a surplus of 3.9 millions on the ordinary and a deficit of 53-3 on the whole service. The Minister of the Colonies being authorised by Parliament to proceed to the conversion of the loans of 1919 and 1921, which originally yielded interest at 6, 7, and 6 per cent., two loans bearing 4 per cent., one of 148.5 millions at a rate of issue of 97 and one of 114-625,000 at a rate of 98, were floated, and were immediately absorbed by the money market.

GENERAL HERTZOG's visit to England for the Imperial Conference was the first he had paid to this country since his election to the Premiership. With his return to Pretoria an eventful year was brought to a close. Not since the advent of Union had legislative questions of a more contentious character arisen to engage the attention of a South African Government than during the twelve months of 1926. In this trying period the strength, as well as the fundamental weakness, of the Nationalist-Labour pact was strikingly revealed.

An anti-Asiatic measure, known as the Areas Reservation Bill (see ANNUAL REGISTER, 1925, p. 266), was a legacy from the previous year which quickly forced itself upon public attention. Following the heated repudiation of the Government's intention by the fortieth session of the Indian National Congress in Cawnpore, the Bishop of Pretoria created something akin to a sensation by publicly stating that the proposed enactment constituted a breach of the agreement between General Smuts and Mr. Gandhi. Indian opinion was hardened in opposition by protest meetings in Bombay, Calcutta, and Madras, at which it was declared by the leader of the South African delegation that under no cir

cumstances would Indians accept the stigma of inferiority. Mr. Patrick Duncan, who had held Cabinet rank in the Smuts' Government, reiterated that there would be no breach of faith as regarded the Smuts-Gandhi agreement.

The position from a South African point of view was further clarified by the Governor-General (the Earl of Athlone), at the opening of Parliament on January 22. In his reference to the Asiatic question His Excellency said: "For the purpose of securing a healthier relation between the various elements of the population and the safeguarding of the proper economic development of the country, a Bill will be introduced for the reservation to various classes of persons of areas for residential and trading purposes, and for amending the registration and immigration laws in certain respects. In this connexion certain proposals and representations have been received from the Government of India, and although Ministers have found themselves unable to agree to the particular method of dealing with the problems involved in the proposals of that Government, they have given as an assurance that the representations made will receive their most earnest consideration."

The Bill was read for the first time on February 8, and the second reading was set down for a fortnight later. Meanwhile, however, as a result of discussions between the Government and the official Indian deputation, it was decided to refer the Bill to a Select Committee before, instead of after, the second reading. On April 23 Dr. Malan, Minister of the Interior, made an important announcement on the subject of the Bill, which was generally regarded as a friendly gesture towards India.

Inter alia the Minister said: "The Government of the Union of South Africa and the Government of India have been further in communication with each other regarding the best method of arriving at an amicable solution of the Indian problem. The Government of the Union have impressed on the Government of India that public opinion in South Africa will not view with favour any settlement which does not hold out a reasonable prospect of safeguarding the maintenance of Western standards of life by just, legitimate means. The Government of India are prepared to assist in exploring all possible methods of settling the Asiatic problem, and have offered to enter into Conference with the Union Government for the purpose. Any proposals that the Conference might make would be subject to confirmation. by the Governments of the two countries. The Union Government has accepted the offer of the Government of India, and, in order to ensure that the Conference should meet under the best auspices, has decided, subject to the approval of the Select Committee and Parliament, not to proceed further with the Areas Reservation (Further Provision) Bill until the results of the Conference are available,'