740.0011 P. W./493
The Consul at Saigon (Flood) to the Secretary of State
[Received August 30.]
Sir: I have the honor to refer to my telegram No. 61 of July 26 4:00 PM44 and subsequent telegrams concerning recent developments affecting southern French Indochina and to give below a review of the situation as it appears at present.
[Page 260][Here follows a review of the immediate background of events leading to the Franco-Japanese agreement.]
Summary
In accordance with the terms of the Franco-Japanese Mutual Defense Agreement which was forced upon France and which became effective July 29, 1941, the Japanese are now in the process of garrisoning military, naval, and air bases in southern Indochina with 40,000 or more troops. They apparently intend to take up a permanent position here. As a result French sovereignty is no more than a name. The effects of this occupation on Indochina’s economy will undoubtedly prove very unfavorable in the immediate future.
The French people appear resigned to the situation but rather thankful that actual war in Indochina has been averted at least for the present.
Very respectfully yours,
- Not printed.↩