While the situation with regard to Japanese mediation between Indo-China and Thailand
delay there may have been up, it is apparent "in delivering the French reply to the second proposal put forward by Mr. Matsuoka, 4 second peace proposals have been made aad oar ie eae rected of the first plan it was reported 3 n reported, Mr. Matsuoka nae papa: ie originally proposed territorial 1 $, as a result of which it is understood that Thailand still gets all the territory west of the Mekong River in the Laos Province in addition to an important portion of northwest Cambodia. These second suggestions Vichy found basically acceptable, much a the astonishment of the French authorities wah Bute at the decision of Marshal üna, where amazement was express-
Petain's Government, this connection it is interesting to note, in the light of the allegations of the Japanese Press that Great Britain and the United were egging the Indo-China Government to hold out, that a colonial official com-cee Ari the Vichy reports said "Very and Japanese pressure has forced tance Everybody -is refusing but those who have refused should
the Far East suffers from such a that not only France \but their own step as this." That very clearly yeses of the accusations of the Japanese and reveals the methods by which it "seeks to fan the war spirit at a time when 2 in the Far East has noticeably lessen-doing so it renders a distinct disservice to the cause of peace and to its own country, despite what the chauvinists declare, Japan's best interests can only be served by keeping out of this war which so earnestly desires her to enter. full terms of the mediation pro-
9 what Japan is to get tions must remain a mystery, but that the Japanese Government has ight to profit by fte sation is something can easily be assumed. Thus if Japan ive sions tending to facilitate ture southward drive, the situation in the Far East will worsen directly that fact becomes known for no clearer proof would be wanted of the Japanese Government's intentions of ultimately proceeding with the alteration in the existing status quo to which the United States ind Great "Britain have "firmly declared themselves opposed. If, for example, Japan is to acquire a number of a air bases thi it Indo-China the possible explanation that they are merely to be used Chungking will carry with it no 4 whatever, and the establishment of bases within a few hundred miles of if that does indeed occur, will permit of only one conclusion. Japan has received all the aerodromes necessary in northern Indo-China for the further pro—secution of her campaign against China, Much will depend on what takes place during the next few days, if it has not already occurred." The French Council of Ministers Vichy have already arrived at their decision that, taking into consideration the military situation in Indo-China, it would be better to make maximum concessions regarding the frontier dispute rather than fight. There appears to have been some desire in the French colony to take the opposite view, but in all probability the opinion of Vichy is the correct one. It does not mean that the whole matter will. thus have been ended, for every s of this sort will-be subject to review directly the European war has been brought to a conclusion favourable to Britain and her Allies; Final settlements are not to be reached now, and General de Gaulle is taking the realistic view in declaring that this jing of territory from Indo-China will not be recognized by the French when the time comes to talk peace again.
Text read from the printed page and cleaned; old type leaves the occasional error.