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The Far East.

29.

Malaya.

In the North-East there has been little activity, apart from patrol encounters. On the 21st December the 8th Indian Infantry Brigade was with- drawn to a new area in Pahang about 60 miles north-east of Kuala Lumpur, leaving at Babong, about 90 miles to the North, a rearguard with an armoured train, whose task is to withdraw down the railway, demolishing it as they go.

The Japanese have now advanced down the East coast as far as Dungun (120 miles south of Kota Bharu) without opposition.

30. Pressure by the enemy advancing down the West coast, which had been heavy, has ceased in the last two days. Withdrawal by stages of the 11th Indian Division has been carried out, and they are now reorganised in the Ipoh area east of the Perak River.

31. Penang was successfully evacuated on the 18th December, air raid. casualties have totalled 600 killed and 1,000 wounded.

32. The estimated Japanese strength in this area remains at four divisions and one Tank Regiment.

Sarawak.

33. All denial schemes, including the destruction of Kuching aerodrome, have been completed.

Hong Kong.

34. The Japanese have succeeded in making further landings, and the Western half of the island is in their hands, with our troops holding three isolated areas in the South, Central and North-West districts.

On three occasions we have taken offensive action, but, although the first had some success, the last two failed owing to the exhaustion of our troops. We shelled and destroyed one of the two oil installations on the mainland, but the other cannot be bombarded on account of its proximity to a civil hospital. Bombardment by dive-bombing, mortars and artillery has been carried out persistently by the enemy and the situation must be regarded as having reached a critical stage. One of our main ammunition and supply depots has been surrounded. Our troops are very tired and the water and transport situation is grave. One report on the 23rd December stated that little more than one day's supply of water was available. Health and conduct of civilians is good, but casualties have been roughly 4,000, of whom 1,000 have been killed.

Philippine Islands.

35. Japanese landings in force and with tanks have been repeated in the Philippines. It is estimated that the Japanese are employing up to five divisions in these operations.

Western Pacific.

36. In Portuguese Timor Australian troops now occupy the airfield of Dilli. The Japanese are reported to have withdrawn from Taraua in the North Gilbert Islands.

Persia.

37. There has been some fighting between the Kurds and Persian troops north of Sinneh. The situation is still obscure, but it appears that the Kurds have been forced to retire North. Our troops took no part in these operations.

Intelligence.

Germany.

38. As has been announced, Field-Marshal von Brauchitsch has been retired and succeeded as Commander-in-Chief of the German Army by Hitler himself. Hitler has been, since February 1938, Supreme Commander of the German Armed

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