French officials announced here Jast night that France-Japanese negotiations had been resumed here yesterday "in a favourable atmosphere after the Japanese had "modified the range" of their latest demands on Indo-China.
French officials gave the impressic that the present conversations would produce an early agreement, probably before midnight on Sunday when the Japanese ultimatum expires, No 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 to Japanese fighting forces in Indo-China. Officials refused to reveal in what manner the Japanese had altered their original demands, but the impression prevailing "here was that they had not yielded on duy major points.
French officials said the agreement which probably would be reached this weekend would "take into equal account the interests of both France and Japan."
Observers here believed that the sudden change in the attitude of French officials here was the result of a statement made in Vichy this week by the French Foreign Minister. M. Paul Baudoin, in which he revealed that neither Britain nor the States would offer any materi sistance to Indo-China in resisting Japanese pressure.
Announcement that the negotiations were being resumed in a cordial atmosphere here followed a warning by the head of the Japanese mi mission, Major-General Issaku Nishi hara, who told the press early yesterday that the situation might lake a turn for the worse.
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