The following is a note by the First Sea Lord [2] referred to in
paragraph 6 of my immediately preceding telegram. [3]

The whole Naval situation has been upset by the losses of the
United States Fleet at Pearl Harbour and our own Naval losses.

At the moment there can be no question of providing a combined
fleet capable of dealing with the main Japanese Fleet.

Until the United States Fleet is repaired we must do the best we
can with the ships available. We are discussing this with America.

The time will come when it would be possible to provide a combined
fleet which is superior in numbers to the Japanese. The Australian
Chiefs of Staffs appear to think that once this has been achieved
it will be quite easy to bring about fleet action with the
Japanese and that the Pacific problem will then be solved.

This conception of Naval war[fare] is far from being a correct
one.

It may be extremely difficult to bring on a fleet action except in
areas where the Japanese have superiority and where the whole
course of action might be altered to our disadvantage by air
attacks.

Unless, therefore, the American Naval strategy is such [as] to
ensure either a fleet action at our chosen time or to create such
a threat to the Japanese that they will not send important Naval
Forces into the Indian Ocean, it might be greatly to our
disadvantage to reinforce the strength of the American Pacific
Fleet and leave the Indian Ocean insufficiently protected.

We are endeavouring to concert with the Americans the best
arrangements not only for the time when ships become available to
make either a large combined fleet or two smaller fleets but also
during the interim period.