Hanoi, Jan. 20.
Japanese have presented three al~ ternate demands "or proposals French authorities regarding American-owned goods and held in American-owned warehouses here, said 9 report today which could not be confirmed.
The alleged Japanese demands were first, to forbid the French to requisition military goods from foreign Godowns in Haiphong; second, a sui gestion that goods be divided between the Japanese and the French, and third, threat to seize all the goods if the French refused to comply with, the: first two.
Informed sources said they be-Meved the French would refuse' the United Press. halting the advance of the Thal {Toops,- The unit later returned safely base, its task completed Havas, French Reeapture Mekong Island Saigon, Jan. 20.
Aided by several fast iver speedboats, French troops on Saturday succeeded in recapturing an island the Mekong River about 36 miles south: of Savannakhet, according to reports reaching. here' late last night.
At the same time French artillery sticeceded in destroying a strong That base at Banmouk, across the Mekong from Savannakhet, while! French. planes raided three separate Thal towns in the vicinity of Savannakhet in retaliation for Thai bombing roids in Indo-China during the week.
Two Thai planes, apparently reconnoitering over Indo-China terri tory, dropped two bombs on_ the French side of the Mekong River near Paklay on Saturday afternoon, Shortly thereafter a lone plane of unknown nationality was seen cir~ ling at a great height over Saigon. It was believed to be a Thai plane engaged in photographing—United Press, Thai Warships Damaged Vichy, Jan, 20, Three Thal warships were either] sunk or damaged in the first naval fengngement of the present conflict between Thailand ad French Indo-China, according to official despatches from "Saigon reaching here 3ester" lay.
'The battle occurred in the Gull] of Siam' on January 17. A squadron fof small warships" of French Far} Eastern Fleet was cruising in the Gulf of Siam and met a small fleet of Siamese warships at a point practically opposite the That-Indo-Ching boundary, near three small Islands.
The Thai ships were fung on French Jiaison plane when sighted, During the swift engagement which followed two Thal ships were sunk and a third so gravely damaged that it had to be beached, according to the official French feport,—United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.