U.S.
BRITISH
 
     b.   The maintenance of essential communications.
 
     c.   Closing and tightening the ring round Germany.
 
     d.   Wearing down and undermining German resistence
               by air bombardmentt, blockade, subversive activities and propaganda.
 
     e.   The continuous development of offensive action against Germany.
 
     f.   Maintaining only such positions in the Eastern theatre as will safeguard vital
          interests (see paragraph 18) and deny to Japan access to raw materials vital to her
          continuous war effort while we are concentrating on the defeat of Germany.
 
       III. STEPS TO BE TAKEN IN 1942 TO PUT INTO EFFECT
                    THE ABOVE GENERAL POLICY
 
The Security of Areas of War Production.
 
5.   In so far as these are likely to be attacked, the main areas of war industry are situated in:-
 
     a.   The United Kingdom.
 
     b.   Continental United States, particularly the West Coast.
 
     c.   Russia.
 
6.   The United Kingdom.  - To safegaurd the United Kingdom it will be necessary to maintain
     at all times the minimum forces required to defeat invasion.
 
7.   The United States.       - The main centers of production on or near the West Coast of
     United States must be protected from Japanese sea-borne attack.  This will be facilitated
     by holding Hawaii and Alaska.  We consider that a Japanese invasion of the United States
     on a large scale is highly improbable, whether Hawaii or Alaska is held or not.
 
 
                              -2-