perimeter and, with her present relatively inferior operational fleet, she does not dare risk possible heavy attrition by any major offensive moves. Japan continues to possess a large, fairly equipped and well trained army which, as a whole, has not been seriously engaged. SITUATION AND INTENTION IN PARTICULAR AREAS 5. Japan Proper, Northern Pacific, Manchuria, and China. (See Appendix "O".) Japan will continue the development of economic self-sufficiency in these areas to the greatest possible extent through stockpiling and substitution.