Saigon, Mar. 2. Commander Isao Yasamura. laisot amicer between Thai and French off-ids here, today told the United Press that France had accepted the Japanese mediation offer in principle and that Indo-China would lose much ferriter to Thailand. He also warned French officials against "stubborn "Vichy already has in principle accepted the Japanese proposals," Commender Yasamura said. "and has instructed the Indo-China Government Tokyo, Mar. 2.
The Vichy government's counterproposals to the Japanese plan for settlement of the Thal-Indochina dis pute were received by the French @elegation yesterday, the "Nichi. Nichi Shimbun" believes, Prospects for the successful outcome of negotiations are bright. This, the 1s due to the French beginning to understand Japan's pure and impartial motive, Japan, however, will adhere to her original' peace proposals. the "Nichi-Nichi" declares.
Taformed quarters expressed pellet that the French reply, particularly in regard. to retrocession of western Cambodia, would be more conciliatory than hitherto.
was reported that the French Ambassador had scheduled a meeting with Mr. Matsuoka on March 1 but eencelied it in. order, to examine Viehy's instructions and seck further Setaiea orders from his Government. te conclude details with Thailand and Japan. Vichy also suggested that Indo-China attempt to lose as tittle Tand as possible. However, T warn that stubbornness might cause the French to lose still more territory."
Hanoi Repudiates Responsibility Hanoi, Mar. 2 The semi-official news agency Attp today pointed out that French Indo-Cina was not an, autonomous state
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