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              <text>Madrid (FIXTRI)
Vichy (PRESIDENT LAVAL)
July 1944
PAD

NOOVE

Two part message complete.

In case Your Excellency may not yet be correctly informed about the motives for the serious political disagreement which has just arisen between Washington and Buenos Aires - motives about which the press seems to keep silent for the time being - I hasten to convey to Your Excellency what I hear from the Argentine Chargé d'Affaires in Madrid.

The beginning of the incident is due to a certain speech of General PERSON, in which the promotor of last February's "coup d'état", speaking in favor of a necessary and rapid re-equipment of Argentina, is said to have made an ungracious allusion to "the great nations which attempt to arrogate to themselves the leadership of entire continents".

A refusal by the Minister to retract or explain is supposed to have led to the recall of the Ambassador of the United States to Buenos Aires; he had been kept there as de facto representative after the suspension of diplomatic relations which occurred at the time of the change of government.

This act, they tell me, will possibly be followed reciprocally very soon by the recall of Mr. ESCOBAR, who, they say, has done rather little to allay the strife.

INTER 1 July 44
Rec'd 13 July 44
Trans 1 Aug. 44
Rec'd Ottawa August 11, 1944.

File: D-5304

Examination Unit
National Research Council
August 11, 1944.</text>
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              <text>Vichy (BLEMAUT)
Manol
1 July 1944
FBT
No (737457)

From the Admiralty:

"Your no 4193 of 12 July and no 4316 of 15 July."

"1. As a result of your exposé of the electric power situation in the Saigon-Cholon district, I have decided to reverse my decision on the question of reserving to the Arsenal the whole of its electric power production. I am sending instructions accordingly to the Commanding Officer of the Navy of the Navy of Indochina.

"2. This is to inform you that I have notified the Commanding Officer of the Navy that it is impossible to authorize installation by the Navy of the unit 480 KVA, by which it had been planned to achieve electrical independence for the Arsenal, (if it is not made certain that this unit will be relatively safe, by placing it at a sufficient distance from the arsenal and from the densely-populated center of Saigon. If this condition, which is in keeping with the necessity for safety in case of bombing, cannot be met, I must decide against the proposed installation. It could be done by the Colony, with the full cooperation of the Navy.

"3. I request that you communicate the present message --IN-- to (the Commanding Officer of the Navy) --IN--."

a - SSA no 131277
b - Available if requested (see footnote c of SSA 131277).

Inter 21 July 44
Rec'd 28 July 44
Trans 1 Aug. 44
Rec'd Ottawa Aug. 11, 1944.

File: D-5303

Examination Unit
National Research Council
August 11, 1944.</text>
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              <text>Shanghai (MISSAUTINE)
Tichy (Colonies)
29 June 1944
PBU

No 135-137 (3 parts, complete)

GIST

PART I I have the honor to report that the material conditions of life of the soldiers in the Occupation Corps in China have become progressively very hard, this in spite of the successive lowerings of the rate of the dollar, which have not sufficiently compensated for the rise and (recontinuation particularly?) of the prices mentioned at the end of my no 130-132 of 17 June 1944. The Europeans, however, have been able up until now to keep up an irreducible minimum by virtue of the substantial betterment of their pay under the decree of 10 January 1944. But the Indo-Chinese, not having benefitted from any similar measure, are in a precarious position; moreover, in the matter of morale, the crying inequality of their pay as compared with that of the Europeans is giving rise to an uneasiness which may in time become acute.

PART 2 (Here follow several examples of this inequality.)

Consequently I have the honor to request that a special temporary allowance for cost of living, amounting to 50% of their present pay, be granted to the Indochinese of the Occupation Corps in China, beginning as of 1 June.

PART 3 The Tonkingess Auxiliary Battalion is in even slightly more desperate straits, and therefore I have the honor to request that an allowance be granted to the Auxiliary Battalion (with respect to their present pay): 50% for unmarried men and heads of families not accompanied by their families, 60% for heads of families who have their families with them.

The added expense per month would be 140,000 for the regular troops, 115,600 for the 50% group of the Auxiliary Battalion, 28,700 for the 60% group. Total: 287,500 francs.

a - SSA no 127707.

Inter 20 June 44
Reel &amp; Ill June 44
Trans 28 July 44
Reel &amp; Ottawa August 11, 1944.

Examination Unit
National Research Council
August 11, 1944.</text>
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              <text>Shanghai (MISSAUTIER)
Vichy (Colonies)
23 July 1944
PBU

No 150-151 (2 parts complete)

1 Part. I refer to your telegram no 92 of 4 July.

1. There is only an artificial relation between the buying-power of the dollar, which is lower every day, and the franc, the rate of which is fixed by the Ministry of Finance at varying intervals. No foreign currency is quoted officially. Even the Japanese Military yen has been withdrawn from circulation for a year.

For your information: (1) Since the telegraphic exchange rate is 1 Swiss franc for 18 French francs, and 1 Swiss franc for 150 CRB dollars, the rate of the dollar should be 0.15 francs. (2) Since the American dollar is quoted at 500 CRB on the black market, which has a direct influence on the price of merchandise (whereas in December 1941 its official value was 45.80 francs), the rate of the CRB dollar should be 0.08 francs.

No other currency than the CRB can at present be used to serve as a basis for study of the rise in the cost of living; the only possible term of comparison is the actual selling price of goods on the black market, seeing that it is impossible to procure goods, even those of prime necessity, at ration prices. For example: (1) The Japanese Embassy has recently suppressed the small monthly allowance of rise granted until now to the French troops in Shanghai at the regulated price of 17,125 dollars per ton. Following my demarches the Embassy refers me to the black market, where the price regularly received is 150,000 dollars per ton. (2) It is impossible to obtain coal at the fixed ration price of 1500 dollars per ton; one is obliged to pay 40,000 per ton in order to get any.

Granting that the growing scarcity of merchandise is due in large part to the state of war, which is responsible for the almost complete cutting-off of supply lines, the reasons for the very serious disorganization of local markets are numerous and cannot all be presented in this telegram.

Among other reasons are these: requisitions by the Army of Occupation, the difficulties confronting the Japanese authorities in limiting the hoarding and the speculation on a large scale which the Chinese population goes in for, profiting by the economic unrest.

(continued)

File: D-5301

Examination Unit</text>
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              <text>To take another aspect of the situation, one can get the losses due to time-lag of in the aligning of the official local dollar with the rate which results from the real value of the power of the dollar, recently established officially by the Chinese municipality, as compared with the consular rate of this dollar for the following dates:

|  Date | Purchase Date  |
| --- | --- |
|  1936 | 1939  |
|  1939 | 1943  |
|  1943 | 1944  |
|  1944 | 1946  |
|  1946 | 1947  |
|  1947 | 1948  |

In October 1939, purchasing power 100; rate 6.00 francs.

In October 1939, " 40; 4.00 francs.

In May 1943, " 3.12; 75 francs.

In January 1944, " 1.03; 40 francs.

In June 1944, " 0.16; 07 francs.

And part. These data on values today are especially liable to rapid shifting inasmuch as the CRB dollar is currency controlled officially by the Japanese authorities at an artificial value closely linked to the changing military situation.

2. As regards the pay for the Indochinese, order, and from the fact that this progress has been accentuated by having lived so long in a cosmopolitan atmosphere.

It should be kept in mind, along this same line of thought, that, in satisfying the requirements of the bare necessities under the same conditions as Chinese buyers of the lower classes, (they?) nevertheless do not --13-- this solution of the budget problem.

In fact, on the --13-- basis of 100 dollars in 1936, the cost-of-living index, which was 196 in 1939, by last June came to 41,400 for Chinese workers, as against 250 and 21,000 for Europeans-official round numbers.

It is only under the stress of pecuniary preoccupations that the colonial infantryman, who before 1939 thought it quite all right to be paid three times less than the European soldier, is now dismayed at getting roughly five times less than he. But this let-down cannot go so far as to break through the morale of the Indochinese, which has been kept on a high plane in spite of the unprecedented difficulties encountered.

a - D-5300 b - The Chinese CRB dollar. c - Be antecedent.

Inter 14 July 44 Rec'd 15 July 44 Trans 26 July 44 Rec'd Ottawa August 11, 1944.

File: D-5301

Examination Unit National Research Council August 11, 1944.</text>
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              <text>To: Vichy (Nléhaut)
To: Shanghai
4 July 1944
FRO

No 92

I refer to your telegram no 130-1324.

Your arguments concerning the rise in the cost of living
are insufficient to be effectively used. Base your case only on the
buying - power of the dollar. If the latter is cut to one-fifth its
value and if the cost-of-living average is five times as high in dollars
of current value as in 1943, it follows that the cost of living in francs
must not have varied. It seems absolutely necessary to take into account,
on the one hand, the disorganisation of markets, both local and general,
plus the factor of the growing scarcity of raw materials or goods; and
on the other hand, the losses we may suffer as a result of the time-lag
in the aligning of the official rate of exchange with the rate which
results from the real value of the local dollar with relation to the franc
You must base the rise in the cost of living upon currency having a
much more stable character than the dollar. Nire exact data computed
on these bases, so as to enable us to give good reasons to the Finance
Ministry for your proposed budget for 1945. --TE-- that arguments based
solely on the value of local currency are unusable in practice and have
a value limited by practical considerations.

With reference to your telegram no 135-1376: the data
requested above (emphasizing rise in costs of articles or commodities
of primary importance) will also make it possible to back up our recommend
ation for appropriation of cost-of-living bonuses to the non-officer
native troops and the natives of the Auxiliary Battalion. This
allowance meets with no objection on my part in its principle. I draw
your attention to the fact that Europeans' pay and natives' pay consti-
tute items which are not comparable. Please do not make an issue of it
after this, and take steps to see that arguments of this kind be not
used to affect the morale of the native troops placed under your command.

a - SSA no 127707.
b - The Chinese CRB dollar is meant throughout.
c - SSA no 132564.

Inter 5 July 44 (92)
Rec'd 13-19 July 44
Trans 28 July 44
Resolved Ottawa Aug. 10, 1944.

Examination Unit
National Research Council
August 10, 1944.

File: D-5300</text>
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              <text># SECRET

**From:** Dalat, To: Takyo, 10119-10120.

**Dated:** August 5, 1944

**Sent:** August 5, 1944

**Rec'd:** August 7, 1944

faisait crédit "Pour suivre au mieux la ligne de conduite essentiellement française qui a toujours été la nôtre jusqu'ici et pour éviter toute mesure susceptible d'entraîner un relâchement des liens d'allégeance de la colonie vis-à-vis de la métropole".

Au cas où l'éventualité en question se produirait et où l'estimeraie devoir user des pouvoirs qui m'ont été donnés je ne manquerai pas de vous en informer.

D'autre part le Gouvernement, à ma demande, a, par décret du 15 juillet qui sera publié incessamment en Indochine, (10120) institué auprès du Haut-Commissaire de la France dans le Pacifique, Gouverneur général de l'Indochine, un Haut Conseil. Ce Haut Conseil comprend, sous la présidence du Gouverneur général, le Général Commandant supérieur des (troupes indochinoises?), le Secrétaire général, le Directeur des Finances, le Directeur du Service diplomatique, le Directeur des Affaires politiques, le Directeur du cabinet Gouverneur général, Secrétaire avec voix délibérative.

Sur décision du Président, sont appelés à siéger avec voix délibérative, pour les affaires relevant de leur compétence, les chefs ......

**CGA**

**File D- 5299**

**Examination Unit,**

**National Research Council,**

**August 10, 1944**</text>
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              <text># CORE 

From: Tokyo, Dated: August 4, 1944, To: Hanoi, Sent: August 5, 1944, $360-361$. Rec'd: August 7, 1944.

De la part de l'attaché naval.
Depuis le changement de Ministère le bruit courait du remplacement prochain de l'Amiral SHIMADA resté Chef d'Etat-Major général et seul survivant de l'équipage militaire du général TOJO. La mutation dont il vient d'être l'objet n'a donc pas été une surprise. L'Amiral OIEANA qui le remplace est le plus ancien des officiers généraux en service après l'Amiral de la flotte NAGANO.

Plus inattendue a été la mutation de l'Amiral YOSHIDA. Celui-ci, dont le rang d'ancienneté (le met) après celui de l'Amiral OIEANA (était) (361) préfet maritime de Tokosuka. Depuis le mois de mai je n'ai entendu aucune rumeur ni de faute ni d'erreur dont il ait pu être rendu responsable et je n'en vois aucune raison. Etant donné la personnalité de l'Amiral YOSHIDA qui a déjà été Commandant-en-shef de la grande ... ... du poste (unfinished)

COSME.

Examination Unit, National Research Council, August 10, 1944.</text>
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              <text>Dalat (DECOUX)
Vichy (Colonies)
July 1944
FBT
$11056

For the COMPANNIX CONTINENTALE, 8 rue Cambaceres, Paris.
"113/139.
"The second voyage of the (YERESONY)":
We desire, as we did previously, to insure the bull --10--6 the
F.P.A.® for war risks, for two months, Indo-China (?to?) Fort
Bayard.

"Before closing the deal for good, we are waiting for a
telegram which will set the date of departure. As soon as we can
we shall load (?to leave?) Saigon by regular steamer, with trans-
shipment at Sha Trang aboard the (YDELONTY) bound for Fort Bayard,
(?creps rubber for?) soles, and beans, to a total value of about
3,000,000.

"Do what is necessary with regard to F.P.A.® war-risk
insurance. We will inform you definitely later as to the exact
amount; however, in case of non-shipment of the merchandise, arrange
a clause for refunding of the premium.

CUTINDOG."

a - This name might also be "EROS".
b - This probably represents a figure for the amount of the policy.
It could be anything from $75,000 to 13,400,000 inclusive.
c - These letters stand for "Frais Prime Assurance" (Cost of
insurance premium).
d - This name might also be "DELOS".

Inter ? Jul 44 (92)
Rev'd 19 Jul 44
Trans 28 Jul 44 (4905-r)
Rev'd Cateen Augusthth, 1944.

Examination Unit,
National Research Council,
August 8th, 1944.

File D-5297</text>
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              <text>From: Vichy [BLEHAUT]
To: Saigon [High Commissioner]
27 July 1944
FTC

#1012/S

At the request of ASSURASSES DE GUERRE, please confirm the following ship movements of the coastal fleet during the second quarter of 1944:

MACHICE LONG - Coast of Indo-China 1 April - 18 April; 27 May - 14 June; inactive in Saigon 19 April - 26 May and 15 June - 30 June.

ALBERT SARRAUT - Coast of Indo-China 1 April - 13 April 22 June - 30 June; inactive in Saigon 14 April - 21 June.

KONTUM - Coast of Indo-China 1 April - 30 April; inactive in Saigon 1 May - 30 June.

JEAN DUPUIS - Coast of Indo-China 1 April - 10 May; inactive in Saigon 11 May - 18 May; canal trip, 19 May - 21 May; inactive in Vinh Long 22 June - 30 June.

SONG GIANG - Coast of Indo-China 1 April - 30 April; lost 30 April.

TAI FOU SEK - Coast of Indo-China 1 April - 23 April; 10 May - 15 June; inactive in Nongohs* 24 April - 9 May; inactive in Saigon 16 June - 30 June.

RAI SANG - Coast of Indo-China 19 April - 10 May, 7 June - 30 June; inactive in Kaiphong 1 April - 18 April; trip Saigon - Phom Penh, 11 May - 6 June.

ASSURASSES DE GUERRE confirms (with reference to your cable #10692 of 10 June*) that the JEAN DUPUIS and the RAI SANG have been counted as inactive in port 11 March - 31 March and 11 May - 6 June respectively.

a - This seems to be a variant spelling for HONECOME.
b - SRA #129726.

Inter F: Jul 44 (1)
Rec'd 27 Jul 44
Trans 31 Jul 44 (4905-552-t)
Rec'd Ottawa August 8th, 1944.

Examination Unit,
National Research Council,
August 8th, 1944.

File B-3296</text>
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