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accordance with the defence plan. The movement began at dusk on the 11th December and was completed during the following night without much interference. All artillery and armoured cars were successfully evacuated, together with most of the carriers and M.T. The coast defence guns on Stone- cutters Island, the dockyard and important military establishments on the mainland were demolished before evacuation.

Japanese artillery has bombarded the gun positions, naval dockyard and pillboxes on the north shore of the Island with some effect, but military casualties have so far been light. Our own artillery have effectively shelled enemy batteries and troop concentrations on the mainland.

Concentrations of ferry craft on the mainland shore and of enemy troops on Lamma Island, approximately two miles to the south-west of Hong Kong Island, indicate that landings may shortly be attempted.

Civilian morale, though shaken at first, is improving and the distribution. of rice is becoming less difficult.

On the 13th December, and again on the 17th, the Governor refused demands. for surrender.

Western Pacific.

43. Ocean and Nauru Islands have been bombed from the air. The phosphate plants at both places have been demolished by us, according to plan. Three small islands in the Gilbert group have been occupied by the Japanese.

Portuguese Timor.

44. It has been announced by the Netherlands East Indies Government that on the morning of the 17th December Portuguese Timor was occupied by Dutch and Australian Forces. As far as is known, the occupation took place quietly.

Burma.

45. The general situation in Burma is reported as being quiet.

being quiet. All necessary defence arrangements have been put into operation and all Japanese and about 300 Fifth Columnists arrested. Victoria Point, Mergui and Tavoy (all in Tenasserim) have been bombed, but Rangoon so far has had warnings only.

Japanese forces are reported to have landed on the Thai coast at Chumphorn and Prachuab Kirikhan, and to have occupied Marang (35 miles North-East of Victoria Point, in Tenasserim).

The plan for demolitions of Victoria Point has been put into effect, and the garrison withdrawn.

A raiding party from Mergui to cut the railway south of Prachuab Kirikhan met strong enemy opposition and suffered some casualties. It withdrew without achieving its object.

Commander-in-Chief, India, assumed command of Burma, with effect from the 15th December, 1941.

Intelligence.

France.

46. Recent reports provide no confirmation of the rumours of a German concentration in S.W. France. It is probable, however, that a number of tired divisions have returned from the Eastern Front to France for rest and refit. To balance this, there are indications of the departure eastwards, as drafts, of an equivalent number of troops, including possibly one low-category division for L. of C. duties.

The estimate of German divisions in France remains at 24, of which two are in the area south of the River Gironde. Air reconnaissance of the Western end of the Franco-Spanish frontier on the 11th and 12th December reveals no unusual activity.

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