STRATEGICAL IMPORTANCE OF PACIFIC ISLANDS
1. ITEM SUBMITTED
 The New Zealand Government has submitted the subject of the
      strategical importance of Pacific Islands.
2. OBSERVATIONS OF AUSTRALIAN NAVAL STAFF
(a) Introduction
 Any examination of the strategical value of the Pacific Islands
      must start from an estimate of the position in the Pacific after
      war has broken out.
 The only possible enemy is Japan, and although the disparity of
      force in our disfavour will be large at the outset, we shall be in
      possession of a first-class and almost impregnable base-Singapore.
 Furthermore, it is impossible to conceive of a world situation
      such that the United Kingdom would be unable to despatch a large
      proportion of the Main Fleet to Eastern Waters in the case of such
      a war. Hence, we may expect the balance of forces at the scene of
      operations to be levelled up in a comparatively short time.
(b) Importance of Pacific Islands to the Empire
 To consider, firstly, the importance of these Islands to
      ourselves.
 From the point of view of supplies, Borneo is of some importance
      for the supply of oil, while Nauru is of the highest importance on
      account of the supply of phosphates from that source.
 As regards Imperial Communications, Fiji, Norfolk and Fanning
      Islands are cable stations, and are therefore of some importance.
      The destruction of the cable and instruments at these points would
      cause an interruption of some three weeks on this line, causing an
      overload on other lines.
 From the point of view of warlike operations, none of the Islands
      are of very much value to us. Their only use would be as advanced
      bases, and for this purpose they are too far from any possible
      points of attack to be of value.
 The only exceptions to this are the Japanese Mandated Islands,
      raids on which might have the effect of forcing a limited degree
      of dispersion on the enemy forces.
(c) Importance of Pacific Islands to Japan
 An examination of the importance of these Islands from a Japanese
      point of view presents a slightly different picture. Several of
      them possess good harbours, which would be-if usable-of great
      value as advanced bases for attacks on our possessions and trade.
      In addition, Borneo would be a valuable source of oil supply for
      the Japanese Navy.
 The islands under Japanese Mandate are of little importance from
      the point of view of trade, but there are several good harbours in
      these groups which could be used as advanced bases. What is
      probably of high importance, however, is the question of the loss
      of Japanese prestige involved in any successful attack on these
      islands'
 To examine in slightly greater detail the use of islands not under
      Japanese control as advanced bases for their forces, it may be
      said that the further West they are, the better they are. For
      example, Borneo, the Solomons, New Guinea and Fiji, all possess
      numbers of good harbours, which would serve as bases for large
      fleets.
 The remainder of the islands are poor in harbours, although there
      are many that a single cruiser could use as a fuelling base.
      From the Japanese point of view, however, all these islands,
      however great their natural advantages, suffer from one
      overwhelming disadvantage. That is their distance from the main
      base of supply-Japan. As long as Singapore remains in British
      hands and the British Fleet is in being, it will be an
      impossibility for Japan to subsist a fleet at such a distance from
      home, and the greatest use to which they can put any of the
      islands is as bases for cruisers and submarines employed on
      commerce destruction. Even so, the area in which they could work
      is not one in which our trade is vital.
(d) Conclusion
 From the above, it will be seen that the strategical importance of
      the
      Pacific Islands is not high, although those under Japanese mandate
      are of value to us as points of possible raiding attack, with a
      view to forcing dispersion on the enemy.
 The trade in phosphates from Nauru is of high importance to
      Australia, and every effort should be made to safeguard this, if
      possible.
 It is desired to state that, in this question-as in so many
      others-the greatest factor is the Sea Power of the Empire. With
      it, the importance of these islands is low-without it, this
      importance does not matter, for the enemy can work his will
      regardless of geographical situations.
ARCHDALE PARKHILL
Minister for Defence
[AA : CP 4/3, BUNDLE 1, ITEM 17]
