751G.94/128: Telegram

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

My telegram of September 19, 8 p.m. The Secretary General has just informed me that this morning General Nishihara withdrew the more unacceptable demands (chiefly the occupation of Hanoi) and expressed a desire to recommence conversations, which are proceeding. However, practically all Japanese nationals are remaining in Haiphong pending the outcome of the conversations.

According to the Secretary General, the threat that Japanese armed forces would enter Indochina Sunday night, September 22, has not been withdrawn.

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The Japanese tactics of demanding much, threatening evacuation of Japanese nationals and action against Indochina, and resuming negotiations are having some measure of success inasmuch as each time the conversations are resumed the French have conceded some points.

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

Reed