His second term as Minister of the Navy was from January 1933-March 1936, during the cabinets of Prime Minister Saitō Makoto and Keisuke Okada. Ōsumi, despite his reputation as a liberal, supported the decision to withdraw from the League of Nations and also argued forcefully for higher naval appropriations budget and re-negotiation of the Washington Naval Treaty. In a "guns and butter" debate, Ōsumi told Japanese legislators that it was incumbent to expand Japan's navy, and that "the whole Japanese nation must make up its mind to cope with the situation, even if we are reduced to eating rice gruel.".