11 May 1942
As it stands now the Allies are in pretty good shape all things considered. Our strategy to date might be characterized as being somewhat fabian of nature. We more or less just surrendered the Southern Resource Area, offering nothing better than token resistance, meanwhile we consolidated what early assets were available to us from out of this region into northern Australia, where, running west to east, the ports of Broome, Derby, Wyndham and Darwin present a staunch barrier to any intentions the Japanese might entertain about moving farther south than Timor Island.
In Papua new Guinea the line has been drawn at Port Moresby, which is stoutly defended both on the land, on the sea and in the air. A token force garrisons Milne Bay on the tip of the bird's tail. The Japanese have made only one serious overture in this direction, and they were spanked hard for their effort. I expect to see more aggressive moves by the enemy in this sector, but for the past two weeks this front has been mainly quiet, which has in turn allowed the Allies to build up its defenses and develop these two bases further still.
Townsville and Brisbane on the Australian eastern shore are heavily defended, with a strong presence of both air and land forces defending each. Cairns to the north is being developed rapidly while inland at Charter Towers another air base stands ready to aid in any crisis.
In New Caledonia, the port of Noumea is fully developed and stocked with all the necessaries of war. To the northeast, Luganville in the New Hebrides is being rapidly developed into a major airfield.
The central Pacific has been quiet. The Allies stand firm at their westernmost base on Baker Island. which serves as a lookout in the region and which might be used later as a linchpin for any offensive moves in this area. This base was attacked once by the Japanese but this invasion was easily repulsed. To the east, and forming a protective arc for Pearl Harbor, stand the lookouts of Midway Island to the north, Johnston Island to the west and Palmyra Atoll to the south.
Alaska is occupied by strong forces. The defense runs from Kiska Island on the western tip of the Aleutian Island chain all the way back to Anchorage. With bombers and PBYs prowling the skies here, an all-encompassing air umbrella of around-the-clock reconnaissance has been effectively established from the far north, through the central and south Pacific regions, and from there on into Australian waters. Formed in conjunction with a comprehensive line of submarine pickets, this line of "seeing eyes" ensures the Allies will have ample early warning of any enemy transgression of this far-reaching front.
Losses in shipping, however, have been heavy. To date the Allies have lost 111 merchants, nine troops ships and two tankers to hostile action. Four submarines (two American S-boats, two Dutch) have slipped beneath the waves. Fourteen destroyers are gone, eight light cruisers will never sail again, one heavy cruiser has been struck off the list, and one battlecruiser along with two battleships are no more. Thankfully, the Allied merchant marine can afford to sustain its losses, and it is felt our warship casualties have not been excessive to this juncture.
Japanese losses in merchant shipping have been a disappointment. (Allied submarine doctrine is toggled on.) Only 13 troop ships and two merchants have been accounted for to date, with the majority of this tonnage lost to 500-lb bombs flown from our bases in northern Australia. One Japanese attack transport was netted in the abortive attempt to storm Baker Island, this ship being ripped open by a Mark 16 mine, and another was chalked up at Koepang when an Allied raiding force caught the Japanese unloading in port (this maru ate a 21" Mark VIIc torpedo from a British cruiser).
On the positive side, a total of 17 Japanese submarines have been sunk, including 13 I-class boats. Also, the Imperial Navy has suffered the loss of 12 destroyers, four light cruisers a heavy cruiser, one battleship and an APD.
In all, the Allies feel confident that the day of reckoning for the Imperial Japanese is not far around the corner. Meanwhile, we hold on.
