Although the French communique said that negotiations were continu: ing, the Japanese appeared to be reboring for a brealedown In the talks.
Four hundred Japanese civilians were given orders last night to evacuate Indo-China not ater than today. Japanese from Hanot will Teave for Haiphong this morning on special train, Four and a half tons fof their baggage was sent last night Haiphong where three Japanese ships are waiting to pick up the evacuating Japanese, 'The evacuation ships were report ed to be under orders to take the Japanese civilians aboard and await sailing orders, 'Members of the Japanese mission also announced thit they planned to Jeave Hanoi, although the head, of the mission,' Major-Gen, Issalu Nie shihara, might remain here for few more days."
"Parewell Call"
Gen, Nishihara, paid a call last night on the Governor General, Admiral Jean Decoux, and his wife, The call was regarded as a "farewell visi Informed quarlers here reported Inst night that members of the Jap~ anese mission appeared to be quibble ing among themselves, apparently be-undecided og to what steps should be. taken next, the Impression prevailing here last night was that the French authorit-had called the Japanese bluff and the Japanese Government in Tokyo not yet prepared to support a show of force by the Japanese Army forees in Kwanqtung.
'Warships' Movements Meanwhile, attention centered here fon the movement of the six French warships which Britain permitted 10 pose through the Straits of Gibraltar arly this week. Some quarters believed these warships were en route to Indo-China, although it was vious that they could not arrive soon enough to affect the present tense situation, Indo-China oMeials Inst night appeared determined 10 reject the Jap-nese witimatum and the French army forees in Indo-China were re-Ported randy to resist any Japanese The Japanese, it was believed here, might launch a joint tand and sen faitack against Indo-China, "in the event the French refuse to accept the Japanese demands before the ultinatum expires, The Japanese army in Kwangtung as concentrated heavy forces on the Indo-China border and Japanese naval forces were reported eoncentreted outside Indo-China territorial waters, Nishihara, head of the Japanese Mission, today warned that the situation might take 8 turn for the worse as he prepared to depart for Haiphong and then proceed to Tokyo should the negotiations with the French authorities completely break down as a result of a new Japanese ultimatum. which, it has been reported expires on Sunday night.
"The Japanese evacuation today does not'mean that a real crisis has now been: reached os it might grow worse," he said. He announced that he was leaving Hanoi today and that Mf the negotiations reached a stage where "I think there Is no hope, I will leave for Tokyo."
Gen, Nishihara said that it would up to Tokyo to decide what steps the "Japanese chauid take if the French rejected the new Japanese demands. A time limit for a reply to the demands was being set he said. =United Press.
Franco-Japanese negotiations would bbe successfully concluded.
The Government announcement amounted to a virtual rejection of the atest Japanese demands since it em-Dhasized that the local' authorities could only stand firm by the recently. confirmed Vichy instructions.
Tension again reached a new high pitch as" Major-General Issa Nishihara, head of the Japanese Mis sion, and his aides left for Haiphong. while the French forces were placed fon emergency basis, ready to move fon short notice. trains were prepared {o evacuate women and ehildren to the south in the event of emergency, The Government announced that the negotiations. which were resumed yesterday, were approaching conclusion. But before an agree= ment had been reached new demands were presented by the Japanese which resulted in the talks reverting back {o the status In which they were left on Thursday—a deadlock, The Government's communique dich not mention the nature of the new Japanese demands, The demands which the French wore believed unable to accept clude: 1. The occupation of Hanoi bby 20,000 Japanese troops. 2. Cor trol of the Langson and Laokay railway. 3 Use of the field near Hanoi,
Text read from the printed page and cleaned; old type leaves the occasional error.