Hanoi, Aug. 17.
Apprehension is growing here because of the great number of Japanese "Altering into Indo-China under the cover of being officials attached to the Japanese Mission and other varied pretexts.
There was considerable anxiety over the actions of these Japanese who were engaged in a wide-scale Programme of research work as well ry and naval bases The Japanese, however, thus far have not launched a political propaganda campaign among the natives.
With the Governor-General, Vice-Admiral Jean Decoux, adopting a firmer attitude, the scene of negotia tions has shifted from Hanoi Vichy, where all arrangements between France and Japan on the Indo-China question will be dis cussed.
'Although Admiral Decoux has re~ jected Japanese demands, Tokyo will Fenew the demands at' Vichy and Wiesbaden will be consulted on the question. Admiral Decoux. rejected the demands upon Viehy's consent.
The situation generally was slight ly less tense, fears of al lack being minimized by the departure of Colonel IK. Sato, reputed author of the Japanese demands and leader of the Canton Army clique which Is desirous of action against Chunj king through Indo-China.
Colonel Sato acted as the head of the Japanese Mission during the absence of Major-General 1. Nishi-
There was also an easing of tension because of the refusal of the French authorities to allow the two Japanese minclayers and a steamer to unload cargoes of munitions and Bascengers suspected of being Japan-
The Japanese demands included:
4. The right of passage for Japanese troops through Indo-China te the Haiphong-Kunming railway.
'2. Occupation of some acrodrome:
The right to use the naval bases of Camranh, Haiphong and Bale Along.
Meanwhile, the demands of the Japanese Economic Mission also were, partially' rejected.
Japan demanded that she be given. the same rights as those enjoyed by nations not required to pay customs dues and. also entry into Indo-China without passports.
At present, the economic talks are at a standstill pending the organization of a commission of consultation discuss the subjects with the Japanese, The talks were halted after a purely nominal opening—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.