A) Luckily the tide of battle moved elsewhere after the American victory at Midway and an Australian victory over Japan at Milne Bay.
B) It could have been no more than a delaying tactic.
C) The Australian military, knowing the position was hopeless, planned to fall back to the south-east in the hope of defending the main cities.
D) They had captured most of the Solomon Islands and much of New Guinea, and seemed poised for an invasion.
E) Not many people outside Australia realize how close the Japanese got.
(2003)
Easiest pair to identify is ED. "They" in statement D refers to Japanese. Statement C follows the pair ED. Statement D talks about the position of Japanese. Then statement C talks about the position of Australian military being hopeless because of Japanese being in such a strong position.
Hence, option A is the correct answer.