751G.92/289: Telegram

The Consul at Hanoi (Reed) to the Secretary of State

23. The Governor General stated this morning that the Japanese by formal note dated February 24 proposed that the French Government cede to Thailand those sections of Laos west of the Mekong and a large section of Cambodia, a total of about 70,000 square kilometers or one tenth of Indochina’s area. The note required a yes or no answer not later than February 28.

He stated further that the tone of the note to the French Government as well as statements by General Sumita at Hanoi showed that Japanese “mediation” was definitely assuming the form of enforced “arbitration”. He considered that the Japanese are presenting a virtual ultimatum which will be followed by a show of armed force if the above-mentioned terms are not substantially accepted. In this connection he cited Sumita’s statement that the additional troops in Tongking will be withdrawn after the Thailand dispute is settled.

Although the Governor General was unable or unwilling to inform me as to the expected reply of the French Government, the fact that he stressed the impossibility of resisting both Japan and Thailand indicates that the territorial cession will be made or at least in great part.

As during previous crises, when the Japanese wanted to impress the Indochina authorities with the futility of resistance, Japanese planes are in great evidence over Hanoi and Haiphong. However, notwithstanding [Page 95] the probability that Japanese so-called mediation will have to be accepted, I note a much better spirit among the French and a desire to resist. But there is little question that without substantial supplies of airplanes and munitions this desire cannot be realized if Japan reinforces Thai aggressions.

Sent to Cavite for repetition to the Department, Canton, Chungking, Shanghai.

Reed