JAPAN TIGHTENS HOLD ON INDO-CHINA.

Auckland Star, Volume LXXI, Issue 184, 5 August 1940, Page 7

JAPAN TIGHTENS HOLD ON INDO-CHINA.

FULL CONTROL Right To Move Armies Is Demanded. NEW THREAT TO CHINA. United Free* Association.—Copyright. (Received 2 pjn.) NEW YORK, August 4. The "New York Times" Shanghai correspondent states that Japan is already, de facto, controlling IndoChina and is daily extending and tightening its grip. Even the leased territory of Kwangchowan is under Japanese domination. Officially Japanese inspectors at present control Kwangchowan Harbour and have already reduced the traffic to China by 80 per cent. Large groups of Japanese navy,' army and aviation experts and also a commission representing the Asia Development Board at present have their headquarters at Hanoi and Haipong. It is understood that the Japanese have demanded from the French:— (1) The right to move troops across Indo-China in the event of the Chungking armies appearing on the Yunnan border; (2) The right to base naval 'planes at Haipong; (3) The right for military and commercial 'planes to fly over Indo-China; (4) The Japanese navy to control incoming and outgoing tonnage at northern and central Indo-China ports; (5) That work on the French fortifications cease; (6) That the French Government and business men in northern and central Indo-China consider Japan a most friendly power and fully support Japanese trade development. Already Japanese military inspectors are ostensibly controlling cargo bound for China and have surveyed all the highways from Indo-China to Yunnan. As the position in Indo-China is solidified the Japanese are rapidly reaching a position where they can easily attack Yunnan and Szeehuen, in which the Chungking Government is developing the essential war industries of China. If these areas are invaded, the Chungking Government probably will be forced to remove to the north--west, presumably to Lanchow as the next wartime capital.