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11. Main offensive against Japan will be economic. American intervention, patrols to cut Japanese trade with North America will be unnecessary.

12.

Primary role of Dutch naval forces should be to provide local defence in Netherlands East Indies and to hola gateways into Indian Ocean in collaboration with other Allied Forces.

13. We consider that possibility of Japanese expedition against Australasia can be ruled out altogether now that American intervention is at least strong possibility. Japanese may, however, gamble on American indecision and attempt at least capture of Hong Kong.

14. With American battlefleet in Far East, likelihood of seaborne attack on Malaya or Netherlands East Indies would be greatly reduced, and Japanese communications to Indo-China subject to interruption. Nevertheless, possibility of land and air attack on Malaya romains.

15. We assume that American contribution would be purely naval, so that local defence problem in Malaya would not be fundamentally changed prior to arrival of American fleet, apart from reduced likelihood of attack by sea.

16. We suggest that Chiefs of Staff Appreciation, amplified by your tactical appreciation, and modified by assumption of American intervention, should form basis of discussions on local defence problems.

17.

Considerable ground in regard to detailed technical aspects of Anglo-American co-operation in event of intervention against Germany has already been covered in London. Much of this is also applicable to Far East. You will be informed direct of progress already made by Admiralty, War Office and Air Ministry, in order to avoid duplication.

18. As regards command, our views, which are subject to agreement of Australian and New Zealand Governments are that unified strategical naval command in Pacific and Far East, including waters around Netherlands East Indies, Malaya and Australasia, is desirable. If Australian and New Zealand Governments concur, you should propose that our own (including Dominions) and Dutch naval forces operating in Far East and Pacific should be placed under American command, with exception of purely local defence forces which would remain under local British and Dutch commands. Any Dutch naval forces operating in purely local defence of Singapore should be under British command.

19.

You will be informed of views of Australian and New Zealand Governments on points referred to in preceding paragraph.

20.

Indian Ocean would remain a British command, under Commander-in-Chief, East Indies, and we suggest Americans and Dutoh should place any naval forces operating to westward of Dutch Islands under our operational command.

21.

Detailed definition of proposed limits of naval commands will be communicated by Admiralty.

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