By January ’46, Pact forces were closing in on Adelaide, attempting to cut the defenders in half, while furious battles were being fought all over the Australian continent. In the West, Montgomery’s Task Force west advanced on Derby, while Montgomery was halted near Brisbande in the East. A special detachment of combined British and German divisions was sent southwards, smashing all opposition it encountered. While US and Australian forces had little to no desert combat experience, the 72th Armee consisted of battle-hardened veterans from the Afrika Korps and the British Colonial Forces, who used the wide empty plains to pierce through enemy lines, causing havoc upon the heavy artillery batteries stationed around Adelaide.

In the following weeks, British and German aicraft launched from New-Guinea to bomb AOF fleets and convoys attempting to reinforce and supply the troops stationed in Australia. In the Far West Clipperton Fracture zone, one such transport fleet was encountered and annihilated.
In the meanwhile, US submarine fleets had managed to infiltrate the seas around Micronesia, sinking a large amount of the Pacific Merchant Fleet, as British shipping came under heavy fire.
The war above Sao Tomé continued, as the skies above the Niger Delta became a theatre for full-scale air combat between the Channel Pact and the AOF.
In the South of Australia, British forces smashed out of the Perth pocket and continued their advance.
After the capture of Adelaide, the RAF began a destructive air campaign against the isolated industrial centres of Australia, pushing the country’s war economy further to the brink.