7510.94/47: Telegram
The Consul at Hanoi (Reed) to the Secretary of State
[Received 4:40 p.m.]
During a conversation yesterday afternoon the Governor General declared that the situation vis-à-vis the Japanese is deteriorating and he expressed definite fears for the future. He stated that the question of passage of Japanese troops has not been settled but he added that Japanese pressure to obtain [further?] military and economic privileges is increasing.
The return of Colonel Sato from Canton has contributed nothing towards easing the tension as he represents the army element reputed to be not unwilling to take steps against Indochina.
The Governor General said that in his opinion a declaration by the United States Government as to maintaining the status quo in Indochina would avert the growing danger of aggression. He stressed the vital importance of the immediate delivery of the airplanes chosen by the Indochina Commission (my telegram dated June 25, 2 p.m.49). He expressed the hope that the U. S. Government would assist Indochina in both respects.
He commented on the influx of Japanese into Indochina and alluded to Japanese propaganda among the natives.
Sent to Cavite for repetition to the Department, Chungking, Peiping, Hong Kong.