Sinister significance is attached in well-informed quarters here to news of the assembly of large Japanes: expeditionary forces on, Hainan and Formosa Islands. It is believed the troops probably are preparing for occupation of Saigon and the adjacent bay.
The importance of such a manoeuvre lies in the fact that the occupation would give the Japanese the only real naval base in Indo-China from which to threaten Singapore. Manila and the Netherlands East Indies, while from Saigon land forces could easily march to Thai. It is reported here that Japan now has the assistance of German military advise: Officials are closely watching the situntion.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.