751G.94/295: Telegram
The Ambassador in France (Leahy) to the Secretary of State
[Received 9:20 p.m.]
131. The Embassy learned in confidence from a high official in the Finance Ministry that a joint German-Japanese concern (the Nippo-European Company) has arranged to purchase 25,000 tons of Indo-Chinese rubber and that more than half of it is to go to Germany. Chauvel confirmed the accuracy of this yesterday and said that the transaction is tied up with the economic negotiations now in course in Tokyo. The Japanese, he said, and presumably their German allies, are desirous of purchasing Indochina’s entire rubber output. This is one of the reasons, he said, why the French are so anxious to proceed with the negotiations with us that Henry-Haye was instructed to suggest several weeks ago.
Chauvel also showed us Henry-Haye’s telegram following his conversation with the Under Secretary. Henry-Haye reported an understanding attitude as to the difficulties which beset Indochina and the necessity for accepting Japanese mediation. The Ambassador likewise indicated that the French should expect little real help from us in the matter of armament. Chauvel said that he quite understood our necessity to reserve for ourselves and the British practically all of our current military output, especially that of planes.
He said, however, that he wished we had made this clearer some time ago so that the French could have adjusted their policy accordingly: For example, they could probably have settled their difficulties earlier with Thailand. Any little help, however, which we can give in the way of replacements for bombs, munitions, et cetera, subsequently expended in the recent border fighting will be most welcome. Since we can give France no real assistance in defending Indochina, [Page 50] he hopes that we will continue to understand their necessity of dealing with the Japanese. The French will play, he said, a delaying game as far as possible.