Chungking, Aug. 12.
With reference to Franco-Japanese negotiations, it Is learned that Chinese authorities are fully prepared te mect_any development in Indo-China, Chinese elveles consider. the Japanese. move to be as much a threat against China as against Bri-ruin, believing that while Japan's im. mediate objective will be Yunnan she will eventually move into Burma for 4a threat against Singapore—Reuter, Japanese Geners I Back In Hanoi Hanoi, Ang. 10, General Issaku Nishihara, head of the Japanese mission in Thdo-China who returned here yesterday, called fon Vice-Admiral Decoux, Governor General of Indo-China, at 11 am. today.
Colonel Sato, deputy leader of the Japanese mission, accompanied Gen-feral Nishihara, and took the oppor tunity to bid farewell to Vieo-Admiral Decoux, for he is leaving to velum fo his command with the Japanese forces at Canton, "The meeting this morning was held an atmosphere of "great. cordial 'AL the close, Vice-Admiral Decoux presented Colonel Sato with the Cravat of the Order of the Dragon of Annam.—Haves, Japan Seeks Bases In Indo-China Vichy, Aug. 3.
'The Petain Government has opened negotiations with Japan regarding new Japanese demands for Japanese naval and military bases in French Indo-China, diplomatic quarters reported last' night.
The Franco-Japanese negotiations, which are now progressing in Tokyo and Vichy, also are dealing with Japanese demands for greatly increased trade between Japan and French Indo-China, it was reported.
Japan is demanding naval bases in Indo-China on the grounds that they are necessary to speed up the end of the Sino-Japanese hostilities in South China, Informed quarters said Japan also wants to dump large quantities of ex: stew ly marcis tecad' isos, Shinn United Proce
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