Konoe was hostile to the reform bureaucrats, seeing them as 'communists in nationalist clothing,' so when Kiichiro HIRANUMA joined the cabinet in December, he planned to settle the matter by watering down the new economic policy plan; in addition, Hiranuma had the authors of the plan arrested as communists, and Nobusuke KISHI resigned.
近衛は革新官僚を「国体の衣を着けたる共産主義者」として敵視し、12月の平沼騏一郎の入閣で、経済新体制確立要綱を骨抜きにさせて決着を図り、平沼らは更に経済新体制確立要綱の原案作成者たちを共産主義者として逮捕させ、岸信介も辞職した。