VICHY BOWS

New Zealand Herald, Volume LXXVII, Issue 23770, 25 September 1940, Page 10

VICHY BOWS

"LOYAL ENTENTE" PREFERENCES TO JAPAN PREPARING TRADE PACT / " v 1 (Received September 24, 7.15 p.m.), LONDON, Sept. 24 The French Foreign Minister, M. ! Baudouin, said France was granting 1 Japan air bases in Indo-China, also the right of passage for 6000 troops, • states a message from Vichy. He 1 said this was not an offensive action against China, but was to cover a possible evacuation by the Japanese i from Canton. i France and Japan had signed a . military agreement and a commercial agreement was being negoi tiated; ; - Japan would receive economic preference over all Powers, said M. Baudouin. He added: "France hopes that the eignature of the pact, in which she recognises Japan's dominating political 'i and economic interests in the Far Last, will prove the beginning of a loyal Franco-Japanese entente." The Axis had not exerted pressure ■ to secure the French acceptance of the Japanese demands, ho said. I'ranee agreed-to make the concessions when ' Mr.-' Cordell Hull, United States Secretary of State, told her that the 1 United States realised the necessity of , her doing so. According to a message from Hanoi

' French circles there said the agreement did not provide for the Canton army's ■ entry into Indo-China, although it was < admitted that the French agreed to ' discuss the question in tho future. Commenting on Tokio's announcement of peaceful and friendly entry ; into Indo-China, French officials said: "Anj-ohe, coming across the boi'der in ' the middle of tho night, in combat i formation and using arms, is hardly friendly." WASHINGTON DENIAL 'CONCESSIONS NOT APPROVED NO, CHANGE IN ATTITUDE (Received September 24. 10.35 p.m.) WASHINGTON. Sept. 24 The State Department categorically denies M. "ißaudouin's, statement that the United States approved the French concessions to Japan in Indo-China. A spokesman said: — "This Government has not at any -time 'or in any way approved the /French concessions to Japan. The attitude of this Government to developments in Indo-China is as expressed by tMr. Hull to-day and previously." i ' FOOD FROM ARGENTINA (Received September 24 , 5.35 p.m.) BUENOS AIRES, Sept. 23 It' is believed that Argentina has ; replied favourably to a British proposal that the Argentine should grant ,~™tain 500,000,000 posos (about £30,000,000) credit for food supplies.