Prize to Nippon

Since Japan took advantage of the French collapse to impose "inspectors" on French Indo-China and prevent munitions shipments to China (TIME, July 1), Tokyo has assumed that France's prize Asiatic colony was safe in Nippon's bag. But before Japan could actually move in and take it, Oriental propriety demanded a righteous motive. It came last week when ousted Governor General Georges Catroux led important units of the Indo-Chinese colonial forces to the standard of General Charles de Gaulle, self-styled Commander of Free Frenchmen.

"A matter of grave moment to Japan," growled the Tokyo press, describing De Gaulle as "a mere puppet of the British Government." Major General Issaku Nishihara, head of a big Japanese mission now in Indo-China to squeeze concessions out of the new Vichy-appointed Governor General, Admiral Jean Decoux, whipped out an ultimatum. He demanded on threat of immediate invasion the use of French IndoChina's chief port, Haiphong, as a naval and air base, and permission to transport Japanese equipment and troops over the French-owned Indo-Chinese Railway for an attack on South China.

To Japan the matter of grave moment was not the prospect of De Gaulle forces acquiring control of French Indo-China but of Japan being maneuvered out of her final chance to end the "China Affair." Her front, thinned out dangerously to cover 2,000 miles of Chinese territory, was being pushed back in the north, and southern Japanese forces, stranded in Kwangsi Province, faced methodical extermination unless aid arrived via French Indo-China. To advance farther into China was to risk having supply lines cut from the rear. Japan's only hope of quick victory lay in a flanking movement from the south that would cut off Chinese supplies and give the Japanese control of the principal Chinese war industries located in Yuennan Province.

Aware that the invasion of Yuennan Province through Indo-China would put a serious crimp in his resistance and would enable the Japanese to cut the Burma Road should the British decide to reopen it, Generalissimo Chiang Kai-shek announced from Chungking that Chinese troops would counter-invade if Japanese forces were permitted to enter French Indo-China "under whatever pretext and whatever conditions."

Faced with the prospect of double invasion in addition to internal revolt, Vichy's unhappy emissary pleaded for time to communicate with his Government. The French Colonial Government canceled military leaves, closed the port of Haiphong, suspended railway traffic throughout the colony, manned coastal defenses, barricaded streets and squares in Haiphong, prepared to evacuate women and children from coastal towns. A Japanese fleet steamed outside Haiphong, and Japanese troops on the Japanese-occupied Chinese island of Hainan prepared for active duty. News from French IndoChina stopped, blocked by censorship.

Then the ponderous wheels of the international pressure machine began to turn. British Ambassador Sir Robert Leslie Craigie called at the Japanese Foreign Office to emphasize "the interest of His Majesty's Government in the preservation of the status quo of Indo-China." Secretary of State Cordell Hull remarked in Washington that the effect upon U. S. public opinion of any Japanese move in French Indo-China "would be unfortunate." From Washington also came reports of lengthy Russo-American colloquies on the Far Eastern situation, and rumors circulated of an impending $100,000,000 loan to China. Admiral Thomas C. Hart, Commander of the U. S. Asiatic Fleet, steamed unexpectedly into Shanghai on the cruiser Marblehead. To all the world it became obvious that upon the status quo of French Indo-China depended the entire Asiatic issue.

Modified Ultimatum. Oriental nerves were as taut as the single string of a Chinese violin when Admiral Decoux received General Nishihara and with scrupulous courtesy informed him that French Indo-China was "unable to accept the terms of the ultimatum," would resist any attempt at invasion. With bows and smiles the Japanese withdrew, to return 24 hours later with a "modified ultimatum." It requested that certain unspecified "military facilities" be granted Japan. Tokyo blithely hinted that General Nishihara had overstepped himself, declared that conversations concerning "peaceful processes" were continuing in an "atmosphere of good will." The Japanese News Agency suggested that the honorable foreign Governments would certainly not object to modifications in the status quo of French Indo-China effected by peaceful negotiation.

The decision, announced three days later, brought the rest of the world a long step nearer to the war in the Far East. Knowing that it was powerless to intervene, regardless of developments, the Vichy Government chose to give French Indo-China to Japan rather than see it fight under the De Gaulle banner. In a "limited" basic agreement arrived at directly with Tokyo, it granted Japan the right to establish air bases, garrison railways and transport troops through the colony in an effort to wind up the three-year-old war by a backdoor attack on China. From Vichy leaked word that Petain's France had agreed to cede the entire border province of Tonkin to Japan. In Hanoi, Admiral Decoux and General Nishihara easily agreed on details of the occupation.

War Headed South. News of the deal brought quick Chinese action. Troops on the Yunnan frontier moved into IndoChina and were met in a sharp engagement by French colonial troops forced into the odd position of fighting for Japan. From Saigon, which apparently is General Catroux's headquarters and rallying point of the anti-Vichy forces, came word that an agreement had been reached with Generalissimo Chiang Kai-shek on measures to be taken against Japanese invaders. Commander Louis Castex, noted French flier, went to Hong Kong to get fighting planes for the De Gaulle forces, and it was reported that a pro-De Gaulle Indo-Chinese mission was in the U. S. to negotiate for bombers.

The diplomatic warnings of the British and U. S. Governments would be either specifically rejected or ignored, declared Kokumin, organ of the fire-eating Japanese Army faction. The end toward which the Japanese Army had worked since 1937 was at hand: a direct challenge to the Western powers to fight or pull their stakes out of the Far East. Certain that momentous events were pending, the war-minded Government of Prince Fumimaro Konoye replaced ailing Navy Minister Vice Admiral Zengo Yoshida with tough Admiral Koshiro Oikawa, who in 1938 ordered foreign shipping out of the Yangtze River.

Because of the rainy season, which until mid-October would constitute a formidable enemy to any invader, neutral observers believed last week that Japan would be content for the time being with a victory on paper. But few doubted that war was definitely in the saddle and headed south toward Thailand, British Malaya, Singapore, and the rich curve of The Netherlands Indies (see map opposite p. 44).

This file is automatically generated by a robot program, so reader's discretion is required.