Late July 1937 was, for the Island Nation, a series of cruel blows to its confidence.
Before Australasia launched its large-scale offensive, the Island Nation Army still firmly believed it could hold the mainland and wait for the right moment to fight Australasia in a final decisive battle.
But once Australasia's all-out offensive officially began, the Island Nation Government suddenly discovered that its seemingly powerful army and navy were riddled with all kinds of problems, and were steadily retreating under the Australasian Army's assault.
In truth, the army could hardly be blamed. At least the Island Nation Army's performance in this war had been commendable, and the combat strength displayed by the A-class and B-class divisions could be considered that of elite forces.
As for the Type C divisions, most of which consisted of new recruits, they had only been hurriedly mobilized after the war broke out. Their appalling combat strength could therefore be forgiven.
The navy, on the other hand, consumed a huge portion of the Island Nation Government's budget every year, yet had contributed almost nothing to the war.
The navy had launched a surprise attack on Pearl Harbor, only to be swiftly crushed through the combined efforts of the Australasian Navy and Air Force. Navy Aviation Corps lost hundreds of aircraft, while the Island Nation Navy also lost many of its principal warships.
Next came Australasia's surprise attack on the naval base at Hiroshima. Both sides had launched surprise attacks, but Australasia had achieved tremendous success, sinking multiple principal warships of the Island Nation and destroying its Navy Aviation Corps.
The enormous disparity in their battle records had already proven that the Island Nation lagged behind at sea. More importantly, with both its navy and air force thoroughly inferior, the Island Nation had little hope left in