In September 1940, the Japanese troops moved into the northern part of Indochina. In July of the following year, they advanced into the southern part of Indochina. This region provided the central granary with a large quantity of rice for export. Japan's colonial policy in Indochina had lied in putting the region under its control.
Before this invasion, since July 1939, Japan had suffered from a serious shortage of food caused by the sudden decline of Korea's rice export to Japan, due mainly to bad harvest. On the otherhand, the outbreak of World War II had caused serious economic damage to Indochina and settled it a politically isolated. Indochina had been trying for some time to find country other than France to which it could export rice.
Finally, through negotiations, Japan succeeded in establishing economic relations with Indochina. In May 1941, Japan forced France to sign several conventions (CONVENTION FRANCO-JAPONAISE D'ETABLISSEMENT ET DE NAVIGATION RELATIVE A L'INDOCHINE FRANÇAISE and ACCORD FRANCO-JAPONAIS RELATIF AU REGIME DOUANIER, AUX ECHANGES COMMERCIAUX ET A LEURS MODALITES DE REGLEMENT ENTRE L'INDOCHINE ET LE JAPON) which would make Indochina economically dependent on Japan. It was, so to speak, “an exchange clearing system.” This system guaranteed that a large quantity of rice should be exported to Japan without any interference. Therefore, Japan was free to import the resources of Indochina. In the Southeast Asian countries under Japan's dominion, this system based on the conventions was the first colonial policy adopted by Japan.
This system, the adoption of the “exchange clearing system”, was a means of serving the Japan's interests and subordinating Indochina to her needs.
Now we know “Con nguòi chi có thê tu mình lùa doi mình, chú không bao gió lùa dôi duoc lich sú” (Nguyên Khánh Toàn, “Vê nguyên nhân phát sinh Cuôc Chiên Tranh Thê Giói Thú Hai, ” NGHIÊN CÚU LICH SÙ, sô 189, Hà Nôi, 1979, tr., 6.).
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