Despite its isolated position in the South Pacific, developments in New Zealand during 1941 were dominated by the converging conflicts in Europe and the Far East. To an ever-increasing extent, New Zealand's governmental activity, industry, agriculture, and every-day life were deeply affected by the war effort. Added impetus was given to the dominion's mobilization when its government declared war on Japan on Dec. 9, as a result of the treacherous Japanese attack on British and American possessions two days before.
New Zealand's principal contribution to the Allied cause continued to be strong and well-trained manpower. By the end of the year, one-fifth of the population of 1,640,000 had been enlisted in the defense services. Over 80,000 were enrolled in the regular army, of which half were serving overseas. The home guard had a strength of 138,000 and the civilian defense organization 98,000. More than 13,000 airmen, trained in New Zealand or Canada, were stationed at home or abroad. The Royal New Zealand Navy, a unit separated from the British Navy during the year, included over 4,000 seamen. In addition, 15,000 women volunteers were placed in positions ranging from signalers to truck drivers, with the Women's War Service Auxiliary. New Zealand troops saw active service in the two dramatic Allied offensives in Libya during 1941, and a full division was sent with the Allied forces to the Balkans. In the Greek and Cretan campaigns, the New Zealanders distinguished themselves and left behind over 5,000, killed, captured by the Nazis, or hiding in the mountains of Crete. Even before Japan struck in the Pacific, the dominion sent army and air units to Singapore and to outposts in the Fiji islands and the East Indies. When the Pacific conflict blazed up, New Zealand forces went into action in Malaya, while at home the defenses of the two main islands and the outlying territories were strengthened. Complete mobilization was ordered as the year ended.
The dominion's limited industrial resources underwent almost complete conversion for war production, and its factories produced Bren gun carriers, mortars, bombs, shells, steel helmets, and small arms during the year. The opening of a new ammunition plant in March doubled the country's output. A factory to manufacture training planes was also completed, while other firms made aircraft parts. Great Britain and the United States sent fighter and bomber planes, heavy coast defense guns, and tanks for the protection of the dominion. Altogether New Zealand planned to spend £71,000,000 in 1941-42 on the war effort, of which Britain agreed to provide £31,000,000 by loan. The economic position of the dominion deteriorated as the year progressed, for Britain, desiring to save shipping by buying in nearer markets, reduced its purchases of New Zealand's chief export products, meat and dairy products. The Wellington government thereupon sent a trade mission to the United States in May and developed plans for preserving perishable foods and diversifying agricultural output.
There were few important political developments in 1941. Prime Minister Peter Fraser continued to head a regular Labor cabinet, dealing with domestic matters, and a war cabinet, composed of three government and two minority members, with authority over war production and military policy. Proposals for a single cabinet of coalition, with all parties participating, were advanced by the Nationalist Party, especially after it had absorbed several small political groups on Feb. 20 and thereby consolidated the opposition. Labor's fears of dilution of its social program through coalition brought the proposals to naught. In October the government asked and obtained permission to postpone the parliamentary election, scheduled for 1941, on the ground that it would be an upsetting factor in a critical period. Meanwhile, the Labor government continued to advance its social reforms. A system of free medical care was inaugurated on Nov. 1, after overcoming the opposition of the organized medical practitioners. A bill to abolish capital punishment and flogging and another to establish standard specifications in industry were passed by Parliament, in which Labor continued to enjoy a two-to-one majority. That Labor was not, however, oblivious to the international crisis was indicated when the Prime Minister, addressing the party in April, stated that 'war needs must be placed ahead of social development.'
As the year closed, New Zealand faced, for the first time in its history, the prospect of invasion by an enemy power. Its people forgot their past differences and labored to fortify their island home against either raiding Japanese ships or a full-scale attempt to secure domination over them. They realized, however, that safety lay, not so much in their own efforts, as in cooperation with the other Allies. Fortunately, contacts with London and Washington had been developed during 1941, especially by Mr. Fraser's mid-year trip to those capitals, and in addition, New Zealand and the United States had determined, in February, to exchange diplomatic representatives. New Zealand prepared to face the enemy with resolution and courage, as one of the free United Nations.
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