VICHY FRANCE: France has capitulated to Japan's ultimatum to accept its proposals for settlement of the border dispute between its colony in Indochina and Thailand.

The Vichy cabinet's decision in the early hours of this morning came only hours after the Japanese ultimatum expired. Throughout yesterday Japan made it clear that it was ready to implement its proposals by force if necessary.

When the agreement is signed Indochina will cede to Thailand all of Laos west of the Mekong and an important part of north-western Cambodia. Japan wants military bases in southern Indochina and Thailand, and expects to capitalise on its intervention by making a military pact with Thailand.

The government reduces the bread ration from 350g to 280g (12 to 10 ounces). 

GERMANY: U-129 launched.

GREECE: The RAF claim 27 Italian aircraft destroyed today. Italian records show the loss of four bombers and four fighters.
Flt. Lt. Montague T St. John "Pat" Pattle of 80 Sqn. claims three CR42s although Italian records show only two are lost.

British Commando's, having been left to hold the Island Castelorizzo in the Dodecanese  without Naval support or reinforcement, are forced to evacuate when the Italians land troops on the island. 

MEDITERRANEAN SEA:

MERCHANT SHIPPING WAR:

Losses: 2 ships of 8,000 tons.

ERITREA: RAF planes bomb the town of Asmara.

AUSTRALIA: Minesweeper HMAS Gouldburn commissioned.

CANADA: Corvette HMCS Kitchener (ex-Vancouver) laid down Sorel, Province of Quebec.

U.S.A.: Ten North American NA.69s, built for Siam have been impounded by the USAAC, redesignated A-27-NAs and assigned USAAC serial numbers 41-18890 to 41-18899.

ATLANTIC OCEAN: BATTLE OF THE ATLANTIC:

Adm Sir Percy Noble takes over as C-in-C, Western Approaches, just as the command moves from Plymouth to Liverpool.

Losses: 69 ships of 317,000 tons.

1 Italian U-boat.

MERCHANT SHIPPING WAR: Losses: 26 ships of 51,000 tons.

At 2332, the unescorted SS Effna was torpedoed and sunk by U-108 SE of Iceland. The master and 32 crewmembers were lost.

In the early morning, SS Holmelea, a straggler from Convoy HX-109, was damaged by gunfire by U-47 and sunk by a coup de grâce SW of Rockall. A torpedo from U-99 had missed the ship earlier that night. The master and 26 crewmembers were lost. On 5 March, ten crewmembers and one gunner in one lifeboat were picked up by the Icelandic trawler Baldur and landed at Fleetwood. On the same day, the trawler had picked up 39 survivors from the Dutch merchantman Simaloer, which had been bombed and sunk by a German aircraft 60 hours before.