RELATIONS WITH AMERICA

Evening Star, Issue 23687, 21 September 1940, Page 12

RELATIONS WITH AMERICA

MAJOR CRISIS LOOMING FORECAST OF BIG PUSH SOUTHWARD 'SHANGHAI, September 20. (Received September 21, at 11 a.m.) Authoritative reports from Tokio state that Japan is prepared for a major crisis in Japanese-American relations over Indo-China. The Japanese are confident that Indo-China at the last minute will accept their ultimatum. In view of Mr Cordell Hull’s statement, they anticipate American retaliation, probably in the form of stiff embargoes.

It is believed in Tokio that the Imperial Conference irrevocably decided on an immediate push southward, including the Dutch East Indies. Then an attempt will be made to force the United States to lift the embargoes in return for Indies tin and rubber. The Japanese believe, in view of M. Baudouin’s revelation of the United States’s failure to promise definite support to Indo-China, that the French will probably announce on Sunday acceptance of the Japanese demands. The main Japanese objective is naval bases from which thev could almost immediately strike at the East Indies before the American embargoes could be effective.