NETHERLANDS INDIES

Press, Volume LXXVII, Issue 23349, 7 June 1941, Page 9

NETHERLANDS INDIES

“Final Reply” Made To Japan CONCESSIONS NOT EXPECTED (Received June 7, 12.30 a.m.) (U.P.A.) BATAVIA, June 6. On behalf of the Netherlands Central Government in London, a reply was handed to Mr Yoshizawa, the leader of the Japanese Economic Delegation, to the note of May 19, in which Japan requested the Netherlands East Indies to reconsider its attitude to the trade talks. It is understood that the reply does not accede to the Japanese demands, and limits supplies of vital raw materials to what are considered to be Japan’s domestic requirements. The Dutch affirm that their reply is their final answer, ending the nine months of negotiations. It is believed that the maximum quantities of rubber, tin, quinine, and fat-producing products being allowed to Japan are based on her average imports from the East Indies. A small margin above this may be permitted. Mr Yoshizawa said yesterday that Japan’s final proposals had been handed to the East Indies * and would require a reply within 24 hours. “If the reply is unfavourable on the principal points my stay here will no longer be necessary,” he said. “If the East Indies says ‘No’ irrevocably, such a reply will be unfavourably received by Japan. I shall leave within 24 hours. It will then become a matter between th% Dutch and Japanese Governments.” There has been considerable diplomatic activity in Tokyo, where the Japanese Foreign Minister (Mr Matsuoka) has had interviews with the Turkish and United States Ambassadors. Agency messages report that the Netherlands East Indies has again made clear its determination to take no part in negotiations which might lead to supplies and materials reaching its arch enemy, Germany. In Chungking it was stated to-day that while Japan was uncertain about her next move in the war against China, the Chinese Army was confident that China would assume the offensive against Japan by next autumn. It is expected that supplies of American war material will have become available in sufficient quantities by that time to justify China’s taking the initiative. Relations between. Japan and ,the Soviet are stated to have adjusted themselves on a satisfactory basis since the signing of the recent non-aggres-sion pact, Japanese newspapers claim that in completing the campaign in the Shansi Province, the Japanese forces won the greatest victory in the history of the world’s battles. The Japanese inflicted 200,000 casualties and 50,000 Chinese dead were left on the battlefields.