4. We should mention that many reports have been received that the Japanese have infiltrated military and air stores into Thailand (Siam). Any such infiltration would facilitate an attack on Malaya. 5. Finally we consider that we must take into account the possibility that this report from Tokyo is part of the Axis "War of Nerves". Any marked German successes, however, in the European or African theatres of war are likely to encourage Japan to make a sudden move southwards. All military preparations for such a move have been made.