Conversations were then started which lasted throughout the month of August and culminated in an agreement on August 30. Japan formally pledged to respect France's rights in the Far East, including the integrity of Indo-China. In turn, the French Government recognized Japan's dominant position in the Far East and accepted to conclude a military and economic agreement, train arrived here from the border carrying more than a hundred soldiers wound-Jed in Sunday nights fighting with the Japanese.
Red Cross hospitals were establish ed in several districts of Hanoi} yesterday in preparation for any emergency. Large Red Cross flags were displayed above all first aid}
The economic accord grants Japan a preponderant position in Indo-China as regards third powers, while the mi y agreement was signed on September 22.
All Governments concerned, including Washington. were constantly kept informed of the negotiations by the French Govern ut, M. Baudoin said in conclusion.
—Havas. stations.
The French Army commandeered all motor cars here ling. Eurasia airline service from Chungking was cut off and Imperial Airways suspended service from Hongkong. All French shipping r mained at Haiphong.
French officials last night ridiculed official Japanese statements alleging that the Japanese had entered Indo-China peacefully and in a friendly manner. They also denied responbility for the border fighting. ner Was City of Benares London, Sept. 24.
It is now disclosed that the liner torpedoed with a loss of 83 child evacuees while en route to Canada was the City of Benares (Glasgow, 11,081 tons), of Ellerman Lines. Limited.—Reuter.
Anyone coming across the border in the middle of the night in combat formation and using arm: ly be considered friendly, said.
French officials insisted that the Franco-Japanese agreement signed here on Sunday afternoon made no provision for the Japanese Canton Army to enter Indo-China. They said that the French had agreed to discuss that issue later and that the [United Press (Continued on page 2, col. 5%)
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