remain the one area from which serious land threat to Inner Zone can materialise at short notice. We think, therefore, that Japan would be most reluctant to move any divisions from Manchuria and would in any case not move more than two. (c) Agree Japs will retain 8 Divisions in Japan proper but do not think they will appreciate any threat in near future. (d) Loss of Philippines would seriously hamper but not cut sea communications. Agree, however, that in this eventuality, Japan would suffer considerable losses if she attempted to withdraw, by sea, troops in Western perimeter.