risk the fate of the Japanese Empire by large-scale military aggression in the areas south of China and in the South Seas. OSHIMA, SHIRATORI, and Japanese circles close to them, cooperated in a confidential manner with the German Embassy in Japan in creating ill feeling against America by influencing the press and political leaders. 133 On 19 June 1940, KURUSU, Japanese Ambassador to Germany, reopened negotiations for the alliance. He advised Germany of the development of heavy and light industries in Japan, and as an inducement for closer cooperation reported that if, in the field of development of heavy industries, a closer cooperation between Japan and Germany were possible, "Japan will gain free¬dom of action toward the United States." The argument was advanced that if the economic circles in Japan should see Germany's great industrial development and realize that Germany had overtaken the United States in many fields, they would gladly switch their support to Germany. In line with previous German suggestions, the Japanese Ambassador stated that TOGO and he were feverishly working for the improvement of Japanese- Russian relations, and that it had become more and more clear in Japan that the future of Japan lay in the south and that the enemy in the north must be made a friend. 134 As will later appear, the suggestion of making a friend out of Russia was only a temporary expediency. The only question was the selection of 134Exhibit 5l6, TP 6,1?2. 135Exhibit 522, TP 6,171