The Waterbury Democrat., 1940-09-20
Secretary Hull Confers

thoritative sources said today that Secretary of State Cordell Hull, British Ambassador Lord Lothian and Australian Minister Richard G.. Casey have opened defense" con- versations in Washington with par- ticular reference to matters in the Pacific.
 The issues under discussion, it was intimated, include the question of French Indo-China.
 Shanghai reports today said a crisis threatens over 8 reported Jap anese ultimatum for air and naval bases in the French colony) The conversations in Washington, 1t was said here, deal with wide is- sues in the Pacific. Asked specifical- ly whether Indo-China was con- cerned spokesman said: T don't see why any specific sub- ject should be excluded" A responsible American inform ant said that the conversations en- visage arrangements under which the United States would police" the Pacific area where the U. s. fleet is concentrated while Britain undertook responsibility for the At lantic.
 This source said the details of such an arrangement had not yet been determined although an agree ment in principle had been obtain ed which aroused profound Satisfac- ton on both sides.
 No Formal Alliance
 No formal alliance is involved in these conversations, the source said, any more than it was in the deal whereby U. s. destroyers were trad- ed for defense bases.
 It was said here that the conver- satiors may strongly influence Bri- tain's decision on the question of re- opening the Burma road. The road, one of the chief sources of supplies to the Chinese government of Gen. eral Chiang Kai-Shek, was closed temporarily by the British at Japan ese insistence until October IS.
 Britain was said to be anxious to avoid any conflict with Japan which might mean the risk of war, but it was 1CAI A1CAC tk1dO tAAC CCAACAA CO4A- versations improve the prospect of American support if Britain should reopen the road and allow traffic to the Chungking government to re- Sume.
 Japan Ready For Crisis
 Shanghai, Sept. 20 = CUP)-Au- thoritative reports from Tokyo said today that Japan was prepared for 8 major crisis in relations with the United States over Indo-C China where Japan was believed to be seeking by means of affirmative de- mands permanent airplane and na- val bases.
 It was asserted here that Japan had presented to French Indo- China authorities aneultimatum ex- piring at midnight Sunday contain ing a series of drastic demands o1 which the most important were be- lieved to concern military bases.
 Belief was expressed in authorita- tive quarters here that an imperial conference at Tokyo yesterday re- suited in an irrevocable decision to start an immediate expansionist push southward which would in- clude the Netherlands East Indies. | Dispatches from Indo-C China dis closed that Japanese nationals were being evacuated in expectation oi i trouble.
 I However, authoritative Tokyo re- ports were that the Japanese were confident that Indo-C China officials would accept their demands at the last minute, especially in view of the speech at Vichy yesterday of Paul Baudoin, foreign minister, who said that the United States had promised no material support if France re- sisted Japanese demands on Indo- China. I Expects Retaliation l However, the Tokyo advices said the Japanese expected American re- taliation against any move as re- gardS 1ndo- China, and the probabil- ity of new, stiff American embargoes on goods which Japan needs were foreSeen. I A Japanese push southward, how ever, would mean that Japan might be in position to attempt to con- pei the United States to lift em- bargoes in return for East Indies tin and rubber.
 I United States inactivity regarding Indo-C China, 1t was said here, seem- ed to have convinced the Japanese that nothing stronger than an em- bargo was to be feared as the result of any move on Netherlands Indies territory.
 Some. diplomatic quarters express ed belief that Japanese mission to Indo-C China had made demands for