BREACH OF PACT

Gisborne Herald, Volume LXVIII, Issue 20625, 28 November 1941, Page 5

BREACH OF PACT

ACTION BY JAPANESE NEW FORCED CONTRACTS (Eloe. Tel. Copyright—United Press Assn.) (Reed. Nov. 28, 2 p.m.) NEW YORK, Nov. 27. The New York Herald-Tribune states that merchants’ letters and other documents smuggled from Indo-China show that after promising to supply manufactured goods to Indo-China at a fixed price under the recent agreement, Japanese groups have delayed and evaded for long periods, and also in many cases arbitrarily cancelled original contracts and forced new ones at increased prices. Only a trickle of the materials promised is reaching Indo-China, despite the fact that the purchase of such goods is the only real outlet for the Japanese yen. Credit is being built up. The Herald-Tribune claims that . secret clauses of the economic agreement forced from 'lndo-China by Japan resulted in the colony being stripped of rice, rubber and raw materials and receiving only worthless yen credits. The Herald-Tribune claims to possess documents supporting the contention that Indo-China is facing inflation as a result.

The Tokio paper Asahi Shimbun quotes a Hanoi despatch accusing Indo-China of changing its attitude to Japan as a result of the negotiations in the United States. “Indochina's attitude is betraying some points, suggesting a lack of sincerity to Japan,” states the despatch. The Japanese Ambassador has protested strongly.

A communique issued by the French colonial authorities states that recent arrests by the Japanese were made without reason.