740.0011 P. W./334: Telegram

The Minister in Thailand (Grant) to the Secretary of State

364. The Japanese Minister Futami informed the Prime Minister “informally” several days ago of the Japanese intention to occupy Saigon with military forces, according to statement made to me in strict confidence today by a high official of the Foreign Office. This official said that according to later information received from the Secretary of the Japanese Legation the Japanese forces are either already in Saigon or are probably entering that port today. He said he understood that Camranh Bay would be occupied later. The Japanese officials had explained to the Thai officials that they must get a strong foothold in Indochina because of the United States and Great Britain. He said that the Thai Cabinet would hold a meeting tomorrow to examine the situation but did not anticipate that any formal action would be taken and that Thailand would maintain her neutrality. This official admitted that additional Thai military forces were being moved up to the eastern frontier.

I am of the opinion that the responsible officials have been informed in detail in advance of the latest Japanese plans in Indochina and that there is an understanding which is tantamount to collaboration in that Thailand will be permitted to take over eventually the province of Laos and the remainder of Cambodia as indicated in my telegram 365 [356], July 20, 11 a.m.

Shanghai please repeat to Tokyo.

Grant