INDO-CHINA DISPUTE

Evening Post, Volume CXXX, Issue 58, 5 September 1940, Page 12

INDO-CHINA DISPUTE

FRANCE AND JAPAN

TALKS PROGRESSING

U.S.A. CONCERN

A WARNING ISSUED

LONDON, September 4. The talks between the French authorities and the Japanese over the Japanese demand for the right of passage of troops through IndoChina are reported to be proceeding in an outwardly friendly manner. They were resumed today after the French rejection of the ultimatum which the Japanese are reported to have presented to the French authorities last Sunday. Reports from Hong Kong today state that the Japanese had informed the French authorities of their intention to land troops in Indo-China on Friday, but later messages from Saigon give more reassuring news. The messages state that the Japanese military officer who is conducting the talks said he was not insisting on the conditions of the ultimatum.

In Tokio, the Japanese Foreign Office spokesman said: "We hope that matters will be smoothed over in a few days." He indicated that negotiations were going on also directly with Vichy.

Nevertheless, some uneasiness still exists about the situation in the Far East. The Japanese have again closed the Pearl River, their warships are reported to be cruising just outside Indo-Chinese waters, and it is reported that French and local troops are manning the defence 'positions along the Indo-Chinese coast. It is also said that preparations are being made to evacuate French women and children from coastal towns.

A Reuter message from Hong Kong quotes a Chinese report saying that agreement has been reached, between the authorities in Indo-China and the Chinese Government at Chungking about measures to be taken in the event of an invasion of Indo-China by Japan. The Governor-General is said to have assured the Chinese Government that he will not in any circumstances permit the passage of Japanese armies or allow the Japanese to set up bases in his territory. The commander-in-chief of the United States Asiatic fleet returned unexpectedly to Shanghai today from north China.

The authorities in French Indo-China have announced that France will defend Indo-China against all menaces, but the French now say that some of the Japanese demands are justified.

The United States Government has warned Japan again about its concern for the security of French IndoChina.