CO129-585-4 Sino-Japanese conflict- Japanese air raids on China 26-1-1940 - 5-7-1940 — Page 36

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granted to Wang Ching-vei, terms which would astonish M. Henry by their mildness. He said that Chiang Kai-shek had been informed of the progress of negotiations throughout, though he did not make it clear whether Chiang Kai-shek had inilicated any approval of the negotiations, and that an agreement was now imminent. If, therefore, the French Government would be prepared to undertake not to repair the Indo-China railway, Japan would be ready to help to obtain favourable conditions for France in the new China set up under the Government of Wang Ching-wei. Not only would the New Order not damage French interests. but France would be able to develop considerably her commercial position there.

6. Copies of this despatch are being sent to His Majesty's Ambassadors at Tokyo and Shanghai.

I am, etc.

(For the Secretary of State).

(Signed)