FROM JULY 10 TO AUGUST 10
FAR EAST
Japan in Indo-China. —At the close of July Japan moved into the naval base at Camranh Bay, French Indo-China, with naval forces, troops, and an efficient military organization. This was but one step in the projected Japanese occupation of 8 new air bases—5 on the east coast of Indo- China and 3 on the Gulf of Siam, together with new army stations in which Japan was putting an estimated total of about 40,000 troops. The naval base at Camranh Bay is about 850 miles from Manila, 735 from Singapore, and 700 from the nearest Netherland Indies. The French capital at Saigon was made the main gateway for the Japanese influx into Cochin China and Cambodia.
The occupation was the outcome of what Japan described as a “complete agreement” reached on July 21 in negotiations carried on by Japanese Ambassador Kato at Vichy, concerning measures for “joint defense” of the French eastern colony. The resultant accord was signed at Vichy on July 29, and published, save for detailed military arrangements, on the same day. Of chief significance was the recognition by Vichy that “in a case where the security of French Indo-China may be menaced, Japan will have the right to consider the tranquility in Eastern Asia and her own security endangered.” Secondly, Japan pledged herself “to respect the rights and interests of France in the Far East. . . and the sovereign rights of France over all parts of the Indo-Chinese Union. . . .” Then followed the specific agreements:
(1) The two governments engaged themselves to co-operate militarily for the common defense of French Indo-China. (2) Measures to be taken in view of this co-operation will be the object of special arrangements. (3) The present dispositions will remain in effect only so long as the circumstances which caused their adoption continue.
At first in France there was some pretense that the mutual defense pact with Japan was motivated by some real menace to the colony from the British or Chinese, or both, and by the inadequacy of French defense forces. Later it was generally admitted that France was pushed into the surrender by her present policy of full cooperation with the Axis and Axis allies, and that the change amounted to a complete taking over of the strategically located colony by Japan.
American Trade Curbs. —As a result of the Japanese move into Indo-China President Roosevelt on July 25 ordered the freezing of all Japanese assets (as well as those of China under Japanese control), and thus sharply restricted further trade between Japan and this country. While sales of oil and other commodities to Japan were still possible under license, the export of motor fuel suitable for aircraft (other than to Britain and her allies) was forbidden on August 1, and it was believed that sales of lower grade oils to Japan would be cut by at least two-thirds. Since Japan took similar measures against American assets in Japan and parts of China, it appeared certain that further trade between the two countries was virtually at end.
The application of economic restrictions against Japan marked a sharp change in American policy, the reasons for which were given by Acting Secretary of State Welles in a press issue of July 24. He declared that neither the United States, Great Britain, nor the Netherlands had made or planned “any moves which could have been regarded as a threat to Japan”; that the Japanese occupation of Indo- China “endangered the peaceful use by peaceful nations of the Pacific,” and tended to “jeopardize the procurement by the United States of essential materials such as tin and rubber.” He characterized the Japanese move as an attempt to change the Pacific status quo by use of force. In a later statement on August 2 the Acting Secretary criticized the Vichy Government for surrendering to Japan bases from which that nation would be in a position to attack peoples friendly to France.
Anglo-Dutch Action. —In line with their co-ordinated policies in Eastern affairs, Britain and the British dominions at once took similar action to that of the United States in freezing Japanese assets and curbing further trade. The British government also notified Japan of its intention to abrogate the Anglo-Japanese Commercial Treaty of 1911, the Indo-Japanese Agreement of 1934, and the Burma-Japan pact of 1937. The same action was taken on July 28 by the Netherlands Indies Government at Batavia. The Dutch oil agreement with Japan was suspended, after consultation with Great Britain and the United States, though oil sales could still be carried on by government permits. In view of the risks involved, it appeared certain that the Batavia Government could hardly have adopted such a course without definite assurance of support against Japan from the Western powers.
Threat to Thailand. — Both the United States and Great Britain on August 6 warned Japan against the consequences of an aggressive move against Thailand. Following the occupation of Indo-China there was every indication that Japan was preparing for such a move and there were definite reports that she was offering portions of Southern Indo- China to the Thai Government in return for full adherence to the new order in East Asia. As a further inducement, Japanese troops were put in position to strike along the Thailand frontier. Thai completed a new commercial agreement with Japan at the close of July. To counter the Japanese threats, Thailand forces were mobilized and Britain was reported to have massed considerable military strength along the Malayan-Thai border.
Moves For Chinese Harmony. —In July press reports from Washington it was stated that the chief mission of Owen Lattimore, recently appointed American adviser to General Chiang Kai-shek, would be to initiate a settlement of the strife between the Chungking Government and the Chinese Communists. In a long review of this strife entitled “The Chinese National Front,” by T. A. Bisson (Foreign Policy Reports, July 15), no positive assurance of its solution is given. The chief suggestion is for “the establishment of an authoritative inter-party organ for continual consultation and adjustment of issues,” with General Chiang as chairman. An open split would range about 400,000 in the 8th Route and 4th Armies against some 500,000 troops of the Central Government, and would end all hopes of Chinese victory. Possible deterrents to such a split would be the mutual knowledge of its fatal effects, and the sentiment of the Chinese people as opposed to the quarrels of factions.
New Japanese Cabinet. —In order to form a government “more capable of coping with the ever-changing world situation,” the Konoye Cabinet in Japan resigned on July 16 and Prince Konoye was called upon to reorganize his ministry on a “full emergency wartime basis.” Perhaps the most significant change in the new cabinet which took office two days later was the dropping of Foreign Minister Matsuoka, which would make it easier later to shed, if desirable, some of the obligations involved in his pacts with both Russia and the Axis. He was replaced by Admiral Toyoda, described as a liberal and moderate. Subsequent events, however, suggested that the direction of the foreign office might no longer be of primary importance, since Japan had passed from the field of diplomacy to action. The new Konoye Cabinet was reduced to 14 members, 7 of whom were military or naval officers, and the remainder men not closely identified with the now defunct political parties.
Amends for Tutuila Bombing. —On July 30, in a heavy Japanese air attack on Chunking, Japanese bombs struck near and slightly damaged the U. S. gunboat Tutuila, while other bombs fell near the U. S. Embassy and other American owned properties. Washington at once made a sharp protest and the Japanese Government on July 31 extended apologies, agreed to payment of damages, and promised definite measures to prevent the recurrence of similar injuries. The State Department thereupon pronounced the matter a closed incident.
THE RUSSIAN WAR
Soviet Pledges. —On July 12 Britain and the Soviet Republic signed an agreement for joint action in the war against Germany. The pact consisted of two brief provisions:
(1) The two governments mutually undertake to render each other assistance and support of all kinds in the present war against Hitlerite Germany. (2) They further undertake that during this war they will neither negotiate nor conclude an armistice or treaty of peace except by mutual agreement.
The agreement was signed at Moscow by Commissar of Foreign Affairs Molotoff and the British Ambassador, Sir Stafford Cripps, and went into effect immediately upon signature. It was reached without difficulty after two conferences between the British Ambassador and Premier Stalin.
A more difficult accomplishment was the pact signed in London on July 30 between the Soviets and the Polish Government in exile. This ended the state of war between the signatories, and like the British agreement pledged full co-operation of the two nations in the war against Germany. Polish prisoners were to be released, Polish forces were to be organized in Soviet territory, and the Soviet Government recognized that the Soviet-German treaties of 1939 despoiling Poland had lost their validity. The Soviet Government had already renewed diplomatic relations with the Czechoslovak Government in London, and was evidently ready to enter into close collaboration with all peoples and governments arrayed against Hitlerism.
As a further move fully encouraged by British diplomacy, Premier Stalin at the close of July put into writing in a note to President Inonu of Turkey his assurance that Russia had no designs on the Dardanelles or other Turkish territory. In view of previous Soviet-Turkish pledges, this assurance seemed scarcely necessary. Only by a German victory would Turkey’s territorial integrity and mastery of the Straits be seriously threatened.
As a token of Soviet-American co-operation, President Roosevelt’s Lease-Lend representative Harry L. Hopkins, with several American military representatives, visited Moscow at the end of July to discuss Soviet purchases and delivery of war materials. Later, on August 4, the United States made a formal commitment to provide Russia with all possible military weapons and supplies.
Along with these new diplomatic ties Premier Stalin in July took into his own hands the ministry of defense, transferring General Timoshenko to active duty on the central front west of Moscow. Political commissars were also restored in both the Red Army and the Red Fleet, thus renewing a political supervision of military operations which had been abolished after unfortunate experiences in the war with Finland.
Finland Breaks with Britain. —At the close of July London sources announced that Finland, as a co-belligerent with Germany against Russia, had found it necessary to sever diplomatic relations with Great Britain. The chief immediate effect was that British freezing of Finland’s credits, hitherto delayed because of former ties, was at once put into effect. On July 31 British naval forces also delivered a severe air attack on the German occupied port of Petsamo on the arctic coast of Finland, as well as on the near-by German controlled port of Kirkenes in Norway.
FRANCE AND BRITAIN
Syria Peace Terms. —After 33 days of fighting, hostilities ceased in Syria and Lebanon on July 11, and on July 15 British and Free French forces carried out the full occupation of the former French mandates under the terms of a peace accord signed the day before at Acre. The signatories were General Sir Henry Wilson for the British and General de Verdillac, acting for the French supreme command in the area. The Vichy Government had made the first overtures for a settlement much earlier, but under Nazi pressure had declined to accept the British terms and finally, after further fighting which served only German purposes, had turned the negotiations over to General Dentz, the Syrian High Commissioner. Despite Vichy protests, General Georges Catroux as representative of the French Free Forces took part in the final settlement. The terms of the peace agreement were regarded as liberal. They provided for (a) full occupation of the provinces by the Allied forces and surrender of all airplanes, aeronautical installations, and oil supplies; (b) repatriation of French forces, who were accorded full honors of war and permitted to retain personal arms and equipment, with the provision that these forces should be given an option of joining the Allied armies; (c) surrender of prisoners on both sides. A considerable number of French war vessels and some equipment had been sent by General Dentz to the Turkish port of Alexandretta before the Armistice. Nothing was said regarding the sovereignty of the two states, but in the original terms presented to Vichy it was stipulated that they should be granted self-rule.
British Cabinet Shifts. —Another minor cabinet reorganization in England on July 20 resulted in the removal of Alfred Duff Cooper from the Ministry of Information, which was turned over to Breadon Bracken, one of Premier Churchill’s closest personal assistants and his Parliamentary Private Secretary since the outbreak of the war. Duff Cooper remained in the cabinet in the sinecure post of Chancellor of the Duchy of Lancaster, with a special assignment to visit the Far East and work out a better co-ordination of British political and military authorities in that area. There were several other changes in under secretaryships and additions to the Privy Council, the general effect being to give increased administrative representation to the group of younger men who have been consistent supporters of Churchill. The changes did not meet the very general demand in England for more effective direction of the British industrial effort.
UNITED STATES AND LATIN AMERICA
Black-list for Latin America. —President Roosevelt on July 17 issued a proclamation making official a list of some 1,800 firms and individuals in Central and South America who were believed to be acting in the interests of the Axis powers. The list, considerably larger than the British black-list for the same area, was the outcome of months of investigation by United States consular and diplomatic agents. The Proclamation had the effect of applying to all the listed firms the provisions of the Executive Order of June 14 freezing the assets of the Axis nations and subject states. Accordingly, no export or import business can be done with these firms except by license issued by the U. S. Export Control Authority. Every effort will be made, however, to avoid interference with legitimate inter-American trade. It was announced that the list would be modified from time to time on the basis of further investigation, and might also be extended to include business firms in the few remaining neutral states outside the Western Hemisphere.
Ecuador-Peru Truce. —It was announced on July 26 that, as a result of the friendly mediation of Argentine, Brazilian, and United States representatives, conferring in Washington, Peru and Ecuador had agreed to cease border warfare on a date to be set by the mediating powers. Hostilities ended accordingly at 6:00 P.M. the next day. Whether the mediating states would be able to effect a final settlement remained to be seen. Border hostilities, chiefly in the nature of sniping and air raids on frontier posts, had broken out some two weeks earlier, as a result of a century-old dispute regarding the sovereignty over a vast tract of 50,000 square miles of jungle territory east of the Andes. Acting Secretary of State Welles expressed the belief that the outbreak had been instigated by Axis agents. In view of Peru’s superior strength and economic development, it appeared likely that the Peruvian Government might consent to forego military action, in the prospect that the territory would ultimately gravitate to its control.
Army Mission to Costa Rica. —It was announced in July that a U. S. military mission would be sent to Costa Rica, in accordance with a 4-year agreement recently signed. Costa Rica is the 12th American nation to seek United States Army assistance, the other missions being to Argentina, Brazil, Chile, Colombia, Ecuador, El Salvador, Guatemala, Haiti, Nicaragua, Peru, and Venezuela.
Nazi Plots in Bolivia. —On evidence of widespread German fifth column activities in Bolivia and an alleged plot to seize control of the government, President Penaranda on July 19 declared a state of siege in the country, suspended publication of four pro-German newspapers, requested the immediate withdrawal of German Minister Ernst Wendler, and arrested a large number of suspects, including ex- Finance Minister Estenssoro, who was identified as a leader in the subversive movement. On the next day, Acting Secretary of State Welles announced that Bolivia would be supported by the United States in her break with Germany.