The Japanese Fleet is stated to be cruising just, outside Indo-China waters and is blockading the entire berth-east coast, according to Chinese reports from Kwang. Chow Wan, Haiphong is a hive of activity, the report continues, and French and na~ tive (cops are mobilized and are manning all defence positions along the. coast, Preparations are being made to evacuate French women and children from coastal towns, while French authorities have placed a severe censorship on all out-going telegrams.
An agreement has been reached between the Indo-China and Chung Xing Governments regarding measures to be adopted in the event of fan invasion of Indo-China, states. the Chinese report. Dees Governor-General of Indo-China, has assured Chungking that under no eir~ cumstances will he permit the pass faye of Japanese armed forces oF al-Jow Japanese to establish bases in Ultimatum Withdrawn Hongkong, Sept. 4.
'The Japanese ultimatum, demanding permission for the passage troops through Indo-China, has. been withdrawn for the time being, ac~ cording to information received' here tonight by well-informed circles. Dis cussions between French authorities fand the Japanese mission were re~ sumed in Hanoi today, it is underance in principle of Japan's demands for the passage of troops through Indo-China.
'The restimption of negotiations in Hanoi today between "Major-General Issaku Nishihara, head of the Japanese Mission, and Governor-General Jean Decoux' indicated that - the French "authorities in. Indo-China were attempting to limit the movements of Japanese troops in Indo-(China to certain areas.
Informed quarters firmly believed that Indo-China was not prepared to resist the Japanese and that Japanese troops would actually be landed in Indo-China on Friday, September 6. Gen. Nishihara was reported to have informed Hanoi that Japanese troops would start entering' Indo-China on Friday, 'Admiral Decoux was reported to have been informed on September 1 by Vichy that France' was according the Japanese "certain military privileges" under conditions which the French Government would. specify and which would then become the subject of negotiations between the French and Japanese authorities in was officially announced in Without awaiting for negotiations, the Japanese military mission insisted Jon the signing of the agreement before midnight; September 3. The! [Japanese demanded the right of pas-[sage for troops across Indo-China [without previous aiseussion and under conditions irreconcilable with the of Fret such Government's stipulations. The Indo-China Government decided on Monday that it could not accept the terms of the Japanese ultimatum, according to a communique issued in Saigon—United Press.
Japanese Not Insisting on Terms stood.
Tension in the French Colony, following the French rejection of Japanese demands, however, remains acute, The Saigon radio. last night announced the suspension of regular Rangoon, Sept. 4.
Discussions between French auihorities in French Indo-China and Japanese were resumed at Hanoi today. Tt is understood that Gen
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