^TOP-GAP' ACCORD N JAPAN'S TRADE York Times, Jan.16, 1940. Washington Circles Indicate That Lapse of Treaty Will Not Be Circumvented DISCRIMINATION POSSIBLE Yonai Completes His Cabinet, Giving Four Positions to Civilian Party Men By BERTRAM D. HUI.EN Sp.d«l to Till HlW Tosx TWSS. WASHINGTON, Jan. 15-Jnpan's efforts to obtain a modus vlvcndl from the United States on the basis of most-favored nation treatment as a stop-sap until a new com- mercial treaty Is concluded conse- quent upon the lapse of the exist- ing twcnty-nine-year-old accord on Jan. 26 apparently are doomed to failure. According to authoritative Indica- tions today, and unless something of an exceptional character devel- ops during the next eleven days In the conversations that Joseph C. Crew, the United States Ambassa- dor In Tokyo, has been conducting with the Japanese Foreign Office, commercial relations with the two countries will be governed after Jan. 26 by domestic and interna- tional law only. This will menn. In th: opinion of competent observers, that the door will always be open to discrimina- tory lf Jnpan practices dis- crimination against this country. A new commercial treaty Is be- ing discussed by Ambassador Grew In Tokyo at tho instance of the Jap- anese, but other questions, Includ- ing those of a political nature In- volving Japan's program In China, are also being touched upon, and officials emphasize that the discus- sions have not reached the point of negotiations. Several Questions Involvrd All questions in which the two governments are Interested have been under discussion from time to time by Mr. Grew and the Japanese Foreign Office, Secretary of State Cordell Hull snld today at his press conference. They Include the sub- ject of a commercial treaty, but he maintained the position that there would be no developments at this time that called for any comment by him. As for a modus Vivendi, other of- ficials intimated that none would b« considered definitely, unless Japan gave effective guarantees that American interests would re- ceive equal and fair treatment in the Japanese-dominated areas of China. The absence of an agreement, however, will not necessarily mean a period of discrimination and re- taliation. In fact, experts pointed out that this status was not un- usual. As an example they re- ferred to tho many years that the United States had no commercial treaty or modus vlvendl with Franca, yet commercial relations were maintained on an undisturbed plane through application of do- mestic and International law. Talks Likely to Continue Whether the new Japanese Cab- inet will make substantial progress In discussions with Mr. Grew is expected to be revealed by develop- ments In a short time. It Is as- sumed that the Foreign Office will continue the talks'^ and Premier Admiral Nltsumasa Yonai Is famll-1 iar with those already held from having bean Minister of Marine in a recent government. There Is believed to be consider- able promise of progress from the character of the new Premier and his Cabinet. While American offi- cials would not comment, it was understood In diplomatic circles that the new Cabinet members, taken as a whole, were more capa- ble and experienced than those they have replaced. Moreover, it was pointed out that tha political parties were repre- sented much better In the present than In the preceding government. In addition, reports received here indicated that the policy of the new Cabinet would be moderate, both on internal and extcrnnl subjects. If, as some diplomats bollcve prob- able, the Yonai government pursues a moderate, common-sense policy In foreign affairs, it may open the way to better relations not only with the United States but also with Great Britain. On the other hand, it Is not be- lieved thnt any far-reaching politi- cal arrangement will be sought with Russia, although there may well be understandings on specialized topics. Will Continue Policy By HUGH BYAS WlreUa* to Tas Nsw yohk Timii. TOKYO. Jan. 15—The newly ap- pointed Premier. Admiral Mitau- masa Yonai, Is forming his admini- stration on lines that show that he intends to continue the former Cabinet's policies. The now govern- ment Is simply a continuation of the last, strengthened In respect to domestic polities where former Premier G>neral Nobuyuki Abe was weighed In the balance and found wanting. It Is authoritatively stated that Japanese policy toward America will be absolutely unchanged. The new Cabinet will continue negotia- tions for a temporary trade agree- ment with Washington. A reply is expected before Jan. 26 on the Jap- anese draft of such a temporary agreement that Is now before the American State Department. The press comment reveals relief rather than enthusiasm. Marked confidence Is expressed concerning Admiral Yonai's personality, but some reserve Is noted because of his short political experience. He is told that the new Cabinet's I fate will depend on Its success In dealing with economic and social questions and Is warned that he needs the confidence of all classes of the nation. This is a well-under- stood way of saying that the gov- ernment should not be guided by the army's views excluiively or pri- marily but must lean more on the country's representative Institu- tions. The Japan Times surveys tho out- look In terms that aro only slightly ahead of contemporary opinion. It says: "It Is doubtful If any Cabinet without popular support in the full sense can weather the storm now facing the country. The new Pre- mier's first duty is to bridge the gulf between the bureaucracy and the peoplo. "The government must be so di- rected that it will win back the con- fidence of tho people. This Is hard- ly possible unless the Cabinet has Its foundation In popular support. Admiral Yonai's chance of success depends almost entirely upon the support and cooperation that he can obtain from the popular assembly, which, though still unable to get back on its feet, is the only channel through which tho people can ex- press their minds as they did In the case of General Abe's Cabinet. Of Stop-Gap Calibre TOKYO, Tuesday, Jan. 16