0112 13 June 1940
Defense Minister Peter Fraser again sat in his office in the wee small hours of the morning. Now the fat was in the fire. Italy had declared war on France and Britain and Australasia had duly replied on the following day, 11 June 1940. France had clearly gone, Paris had been declared an open city and it seemed little could currently stop the remorseless German advance. 1st Corps was now in Egypt and 3rd Division had departed for Palestine 19 days ago. 4th Division was almost fully formed and would follow along in time. The creation of two further divisions of the ROAIF had been been approved only yesterday, namely 5th Division and 1st Armoured Division. On the home front, the government had legislated to clarify the conditions upon which militia may serve overseas, clearly stating that they could be used within Australasia's colonies, protectorates and territories as well as States. Five Militia Divisions so far existed "on paper", , the 11th, 12th, 13th, 14th and 15th, but were all short of equipment, supplies and manpower, being drained to feed the ROAIF.
The navy already had a light carrier, two light cruisers and six destroyers in the Mediterranean. Another light carrier and two more heavy cruisers, along with three destroyers were escorting 3rd Division to Palestine. Success had already been obtained, the Italian liner Reno 9,700 tons being captured at Fremantle whilst lying at the port. Her sister ship Romolo had sailed from Brisbane and the hunt was on for her. The biggest prize was the 18,700 ton liner Conte Verde, captured by HMAS Melbourne and escorts on her way to Singapore. She had on board almost 2000 Germana and Austrian refugee Jews. The ship and the passengers would come back to Australasia. The navy had already expressed an interest in converting her to a carrier along the lines of the Australasia. The RAN had commissioned three Bathurst Class corvettes, eight minesweepers, three armed merchant cruisers, two hospital ships, one destroyer, one monitor and a submarine since 1st September last year.
The air force had one squadron of Sunderlands based in the UK, plus three of Hurricanes and one of Spitfires, all located in South West England. Two squadrons of Wellingtons, two of Ansons and two of He 112's were in Egypt. The first He 111 had been delivered a month ago. The CAC Boomerang was now in production with the first deliveries of an order of 105 due at the end of the month. Finally, the He 100 had two more comparative prototypes ready. When testing was finished early July, it was hoped to place an order and start serial production from Hencalls Point Cook factory in September. Numbers would be limited as production of the Merlin was still in it's infancy and a suitable location for a factory to produce in volume would have to be found and a workforce trained and recruited.