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On the other hand, two moves by Japan during this period may have a certain significance. The first was announcement of Japanese occupation of the Spratly islands on March 31, complemented by the annexation, on April 18, of a group of reefs and islets 300 miles long between French Indo-China, the Philippines and British North Borneo in the South China Sea.[…] The line of least resistance, however, clearly lies toward the south. France and Britain, in particular, would have small military and naval forces at their disposal to protect their eastern possession; or the oil of the Dutch East Indies—for Japan the greatest prize of all. The occupation of Hainan and the Spratly islands has already pointed the way. Only one serious obstacle threatens attainment of this objective: the United States.