740.0011 P. W./117
The Navy Department to the Department of State 76
From: Director of Central Division.
Our Naval Attaché in London has been officially informed by the Admiralty that the Japanese are apparently planning a large scale offensive, presumably against Indo-China, the Malay Peninsula or the Dutch East Indies no doubt to be coordinated with an attack on Great Britain approximately February 10. Certain it is that Japanese and German relations are becoming most intimate and that a hatred campaign is being conducted against the British by the Japanese even in formerly pro-English press. Further indication of an impending offensive is shown in the fact that two large Japanese merchant ship sailings have been cancelled. Reports believed to be reliable state that all Japanese shipping is being called home to be taken over by the Government (The Admiralty has requested our knowledge of such a movement and a reply is being prepared).
The Japanese have been mediating the Thai Indo-China affair aboard a Japanese cruiser. It has been unreliably reported that the price of Japan’s service as mediator will be bases on the west coast of Thailand which can be utilized by light craft for cutting communications to Singapore via the Malacca Straits.77