-2-
 
      
 
 
RUSSIA
. The German General Staff having decided to 
      try to stabilise their Russian front, the danger which threatened 
      MOSCOW is probably removed at least till the Spring. The German 
      troops are on the defensive along most of the line and are even 
      under such pressure in some sectors that the with-drawl of divisions 
      to refit may not be easy. In the southern sector, it is of particular 
      importance for the Germans to resume their advance, but weeks 
      and possibly months might now elapse before they recapture ROSTOV 
      with corresponding postponement of their time-table for CAUCASIA. 
      Finally, the air situation is encouraging, for it appears that 
      the Russian Air Force at present holds superiority on the most 
      of the front, particularly in the MOSCOW sector.
 
      
 
 
JAPAN
. It appears probable that the primary Japanese 
      objectives are SINGAPORE and the PHILIPPINES. Operations against 
      HONG KONG and the Pacific Islands are subsiduary to these principal 
      aims, the threat to BURMA and BORNEO being intended to develop 
      subsequently. At HONG KONG, our troops have now acted on their 
      standing orders to evacuate the Mainland when attacked in overwhelming 
      strength. Their retirement has been successful in so far as they 
      have fought off enemy attempts to interfere with its orderly 
      execution. Guerilla activity by the Chinese may develop later 
      in the rear of the Japanese attacking force. In MALAYA, our naval 
      and air losses have compelled our land forces to face a situation 
      which had not been contemplated, in as much as they must now 
      bear the brunt of an attack by Japanese forces enjoying sea and 
      air superiority, enabling them to reinforce with little British 
      interference. The demolition of railway bridges, etc., which 
      our troops are effecting as they retire should impede the enemy's 
      advance. Further north, the occupation of SIAM gives the enemy 
      an important base for operations against either MALAYA or BURMA, 
      and even against our sea communications in the BAY OF BENGAL. 
      The Japanese have some ten divisio %ns already in MALAYA. SIAM 
      and Southern INDO-CHINA and a further 12 or so, including most 
      of the seven in JAPAN, might be made available immediately or 
      at short notice for other operations. The limiting factor, however, 
      would be shipping and air support.
 
      
 
 
WESTERN PACIFIC.
 The phosphate plants in OCEAN and 
      NAURU Islands have been demolished according to previously prepared 
      plans.
 
      
 
 
BURMA. 
The second flight of an Indian infantry brigade 
      has left INDIA for RANGOON.
 
      
 
 
HUNGARY
. The number of Hungarian troops on the Russian 
      front has been reduced to about 30,000.
 
      
 
 
RUMANIA.
 The Rumanian contingent in RUSSIA, though 
      being reduced, still amounts to the equivalent of about two divisions 
      in action in the CRIMEA.