French officials announced here last night that Franco-Japanese negoti ions had been resumed here yester day "in a favourable atmosphere' after the Japanese had "modified the range" of their latest demands on Indo-China, French officials gave the impression that the present conversations would produce an early agreement, probably before midnight on Sunday when the Japanese ultimatum expires, details of the exact nature of the Japanese demands were revealed yesterday. They were believed to be concerned mainly with the granting of naval and air base sites to Japanese fighting forees in Indo-China. OMicials refused to reves! in what manner the Japanese had altered their original demands, but the impression prevailing here was that they had not yielded on any major points.
French officials said the agreement which probably would be reached this weekend would "take into equal count the Interests of both France and Japan."
Observers here believed that the sudden change in the attitude of French oflieials here was the result of a statement made week by the French Fo Paul Baudoin, in which he reveal that neither Britain nor the United States would offer any material ase sistance 10 Inde-China in resi Japanese pressure.
Annencement that the n were being resumed in a cordial mosphere here followed a warning by the head of the Japanese military mission, Major-General Issaku Nishihara, who. told the press early yesterday that the situation take a turn for the worse—t Press,
Text read from the printed page and cleaned; old type leaves the occasional error.