Hongkong, Sept. 5, Japanese residents and the Japanese. Inspectorate in French Indo-China, which had previously been ferderéd to leave Indo-China yester-have now been instructed to remain, though nevertheless, they have been warned to be prepared for evacuation, according toa message received here from Kwang Chow= wan. There is still a. searelly direct news from Indo-China all mes. Sines being stridly censored, This change in the Japanese atti finde "has eased the tense situation, Dut it is stated that the French are continuing the evacuation of coastal eas, and preparations for defence. The Governor-General of Indo-China, Admiral Decous, conferred again with Japanese oficiais yesterday, but the course of the discussions have not Foreign 'Ofllee announced here last night. 'The Foreign Office officially, Jdenied that Franco-Japanese nego! ions had broken oft 'The Foreign Office spokesman plained that the French have never considered Japanese demands for aval and air' bases andthe right fof passage of the Japanese Army across Indo-China as an ul Meanwhile, the Chinese Embassy here said that the length of the Franco-Japanese negotiations been. indicated, though unconfirmed reports state that the object. of the Japanese was to endeavour to per susde Admiral Decoux to. recognize Certain axroements which have been Teached between the Vichy Government and Japanese representatives France.
Text read from the printed page and cleaned; old type leaves the occasional error.