PACIFIC PROBLEM

New Zealand Herald, Volume LXXVIII, Issue 23861, 11 January 1941, Page 9

PACIFIC PROBLEM

SOUTH EAST ASIA NAVAL CO-OPERATION REPORT FROM MANILA By Telegraph—Press Association—Copyright (Received January 10, 7.15 p.m. 1 ) NEW YORK, Jan. 9 A message from Washington says diplomatic circles there are of the opinion that the situation in the Far East is "balancing on a knifeedge." Jt is felt that the last screw of indirect pressure against Japan has been turned on by the United States and that further clarification of the situation should be awaited. Although the United States does not fear a declaration of war by Japan it would defeat her own purpose to provoke one. Both the State Department and British diplomatic establishments think Japan is ; present in a highly excitable state of mind and would most likely regard as provocation any further move by the United States. A despatch from Manila says it is reliably reported that plans for cooperation between the British, United States and Dutch Navies have reached a. point where the protection of the interests of the three Powers in SouthEast. Asia is assured. It is stated that all British and Netherlands bases in the area will be available for vessels of the United States in the event of hostilities, and I vice versa. ! British naval strength in the region is very formidable, adds the report, and the Dutch defences are said to include five cruisers, 12 destroyers,. 20 submarines and 700 aeroplanes. | ]n addition, the strength of the United States Asiatic Fleet, based on Manila, is the greatest in its history. Defence preparations include the distribution of supplies of gasoline, oil and munitions to strategic harbours throughout the Philippinas. The defences of Manila are virtually impregnable.

DUTCH EAST INDIES DEFENCES GROW STRONGER ARMY, NAVY AND AIR FORCE (Received January 10, 6.30 p.m.) British Wireless LONDON, Jan. 9 Dr. SI o tern alter de Br nine, of the Netherlands Colonial Office, said in a speech in London to-day that as a result of the invasion of the Netherlands the Dutch East Indies automatics Iv gave up neutrality and entered the war against Germany. The East Indies, in common with other Powers in the Pacific, stood for the maintenance of the status quo in that part of the world. Immediately after the East Indies declared themselves at war with Germany, steps were taken to increase the defences. Conscription was introduced for all Dutchmen between the ages of 18 and 46, and all potentially dangerous German nationals, totalling about 5000, were interned. Expenditure on defence had greatly increased, the defence Budget for 1941 totalling £55,500,000. Strenuous efforts were being made to mechanise the new army. There was a growing popular demand for defence on the part of the natives, as well as of Dutchmen. In other ways, too, the native population had given striking proof of its solidarity. New officers' training schools had been opened to natives, and the same applied to the naval colleges. In the air force a number of natives were receiving training a.s pilots, gunners and observers. The most important part of the Netherlands East Indies defence was the navy. Even in peace time the larg*est part of the Royal Dutch Navy had always been based in the East Indies, and there it still remained. It contained all sorts of naval units, from cruisers to submarines, and small patrolling craft. ' A New ships of a lighter type were being built locally and the naval forces were being continually increased. In the economic field the war had brought great change®. As a result of the closing of the European market to East ludies products, new arrangements had to be made. The European market accounted for as much as 99 per cent of such exports as tobacco, and it also took respectively 17 per cent and 22 per cent of the oil and rubber. This stream of supplies to Europe had now been completely cut off.

AMERICANS IN LONDON HOME GUARD SQUADRON {Received January 10, 5.35 p.m.) British Wireless LONDON, Jan. 9 The Prime Minister, Mr. Churchill, inspected the first American mntorised squadron of the Home Guard on tho Horse Guards Parade. The squadron is made up of Americans resident in Loudon and is formally recognised as a unit of the Home Guard by Order-in-Council. Fifty men of the squadron, the full strength of which is 72, were on parade under the commanding officer, Brigadier-General W'ade H. Hayes, an American company director who served in the United States Army in the last war. Behind them were the vehicles, mostly fast American cars presented to the squadron. Brigadier-General Hayes said: "We have business men, bankers, engineers, lawyers, advertising men, efficiency experts, even a doctor of philosophy, to say nothing of newspaper men."

NAVAL CASUALTIES (Received January 10, 5.35 p.m.) LONDON 1 , Jan. 9 The Admiralty has announced that casualties on the gunboat Aphis, caused by a near miss from Italian shore bat- ! terics when the vessel was shelling ! Bardia last week, were two ratings | killed, a chief petty-officer died of j wounds and two seamen wounded.