THAILAND AND JAPAN.

Ashburton Guardian, Volume 61, Issue 249, 2 August 1941, Page 5

THAILAND AND JAPAN.

TRADE AGREEMENT REPORTED. BANK CREDITS ALLOTTED. LONDON, August IS Japan and Thailand are reported to have signed an economic agreement. The spokesman for the Information Board (Mr Ishii) announcing that Japan and Thailand had signed the economic agreement, said that Thailand would extend to Japan credits of 10,000,000 bahts, the equivalent of about 15,000,000 yen. It is believed that Japan will obtain rice from Thailand. Mr Ishii said that the economic agreement was between the Yokohama Specie Bank and three large Thailand banks.

It is stated that the agreement will serve to maintain trade between Japan and Thailand, which would otherwise be disrupted by the freezing of Japan’s foreign credits. Japanese sources were urging yesterday that Thailand should fall in line with Indo-China and come under Japanese protection. The Thai consulgeneral in Singapore, however, is reported as saying that Thailand will not grant bases to any nation. General Chiang Kai-shek is reported to have ordered a . “scorched earth” policy in Chinese territory bordering on French Indo-China. All bridges and roads in a 20-miles strip have been destroyed. A Tokio message says that the newspaper “Asalii” in an interview with Major-General Snmita (who headed the Japanese delegation to IndoChina) from Bangkok, says that General Sumita declared that Japan’s construction of the new order in East Asia was completed. Japanese aeroplanes fighters and bombers —landed at the Saigon airfield yesterday. The Japanese forces have occupied Pnom Penh, in Cambodia. A later Tokio message says that the first general mobilisation commission approved an ordinance regarding harbour management and marine transportation aiming at maximum efficiency in sea transport. It is understood that the plans establish a new semiofficial agency completely controlling all harbour facilities and all ships belonging to shipping companies throughout Japan. JAPAN RETALIATES NO TRADE WITH,PANAMA • ___ WASHINGTON, July 31. The Department of Commerce announced to-day that Japan had suspended her trade with the Panama Republic, since the United States had not permitted Japanese ships to traverse the canal, ostensibly because the canal was under repairs. MORE FRIENDLY IN TONE. i NEWSPAPERS AT HANOI. (Roc. 9 a.m.) SAIGON, August 1. The Associated Press of Great Britain correspondent reports that as the Japanese troops continued to pour into Southern Indo-China, the press at Hanoi began 'to exhibit a friendly attitude toward the United States. In presumably-inspired articles the United States’ Far East policy is described as far-sightedly aware of the Japanese danger and is sympathetic to France.