JAPAN'S DEMANDS

Otago Daily Times, Issue 24406, 18 September 1940, Page 7

JAPAN'S DEMANDS

FOOTING IN INDOCHINA ESTABLISHMENT OF TROOPS CONFLICT NOT UNLIKELY (United Press Association) (By Electric Telegraph—Copyright) LONDON, Sept. 17. (Received Sept. 17, at 10.30 p.m.) The Hanoi correspondent of the Associated Press of Britain says that French officials admit unofficially that the negotiations are likely '.o result in an immediate . agreement permitting Japan to establish 25,000 troops in Indo-China, possibly causing China to send troops over the frontier and thus precipitating a conflict ending France's rule. All re convinced that only the United States could prevent Japan gaining possibly an jnshakeable hold. The Vichy Government's inability to deter the Japanese has strengthened the position of General De Gaulle, but lack of organisation has prevented the i'ormation of a movement able to sway the administration's decisions Thailand's Demands A message from Bankok states that Thailand has made the following demands on Indo-China:— 1. Delimitation of the Thailand-indo-China border with the deepest channel of the Mekong River forming the boundary; also thp immediate tranfer of 40 of Mie riparian islands to Thailand. 2. Cession of the Luang Praband area along the northern border of Thailand. 3. A guarantee of safety for the Siamese inhabiting the Laos Steppes in north-west Indo-China. or cession of this area. It is understood that Thailand will denounce its non-aggression treaty with Indo-China unless the demands are met.

FAR EAST CAMPAIGN EARLY CLIMAX PROBABLE JAPAN FACING PROBLEMS NEW YORK, Sept. 16. The Hongkong correspondent of the North America Associated Press stated that officials believe that the climax of the Sind-Japanese war will come within a few weeks. The Japanese are in unmist .kable internal straits because of the growing economic pinch at home and unrest in the field in China. They desire a great 1940 push before the weather prolongs the campaign into the winter. It is also reported that they want a good victory to strengthen home morale. There is nothing to indicate that ths Chinese are not ready for an attack. If the Chinese can deliver a smashing defeat of the expected blitzkrieg the Japanese are likely to have the worst winter since their attempt at a new order in China started.

A message from Chungking states that over 50 Japanese planes participated in two raids on the office and residential districts. The casualties were few, but the damage was extensive.

AMERICAN FIRMS RESTRICTIONS IN CHINA MANY FACING BANKRUPTCY SHANGHAI, Sept. 17. (Received Sept. 17, at 10.30 p.m.) The American Consulates throughout China have received a new flood of complaints about the Japanese anti-American embargo One of the largest American companies reported from Tientsin that the tota 1 business for the first half of September was 6 dollars (United States), compared with the normal 30,000 dollars. Businessmen predict that half the American firms in China will be bankrubt before the end of the year unless the Japanese restrictions are relaxed.