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 the war it could be captured by Japan, since the Philippines lie opposite the Japanese naval base of Formosa. Yet the Philippines have economic importance also for the United States. It is well-known that the United States are absolutely dependent upon Britain for their supply of rubber. Investigations undertaken recently have shown that climatic and soil conditions are favorable for the raising of rubber in the Southern part of the islands. On the island of Mindanao and the small islands adjacent there can be accomodated at least 1,500,000 rubber trees which will produce approximately 200,000 tons of rubber, enough to supply the world market.

In the same year, 1898, the United States, by skilful utilization of the revolutionary movement in the Hawaiian Islands (on the way between the American Pacific coast and the Philippines), annexed also these islands and transformed them into one of the chief links in the chain of naval bases on the Pacific Ocean. In order to comprehend the importance of these islands in the struggle for the Pacific, one must take into consideration the fact that not a single ship can sail across the Pacific and back without at least running into one of their harbors. Aside from the Hawaiian Islands there is not another point on the Pacific where ships can supply themselves with coal and fresh water. Thanks to this importance the Hawaiian Islands might to a certain extent be reckoned as the Gibraltar of the Pacific Ocean. Here upon these islands at Pearl Harbor the American navy concentrates its aeroplane fleet consisting of 150 aeroplanes. A fleet of submarines alternative with torpedo boats. The dry dock can accomodate simultaneously a dreadnought and a cruiser. The range of the radio station in Hawaii includes China, Australia, and New York. In concrete barracks there is infantry equipped for gas warfare, mine throwers, ete. This is the switch-yard of the coming war in the Pacific Ocean. Only very recently the