Having been forced out of Finschhafen and Jivevaneng, the Japanese forces on the Huon Peninsula launched a counter-attack, aimed at recapturing the Australian-held Scarlett Beach. This is where stores and reinforcements were being landed by the Australian and American forces. Lose Scarlett Beach and the entire area would become precarious. Fortunately, a plan of the coming offensive had been discovered on a dead Japanese officer and so General Wootten knew roughly where and when things were going to happen. But knowing this, and being able to do something about it, were two completely different things. His already stretched 9 Division would be severely tested.

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