 With a second counter-thrust having been beaten back again and the loss of Sattelberg, Katagiri decided to fall back to the north, to form a defensive line around Wareo to wait for the Australians to follow up their victories with a further advance.By this time, Katagiri's forces were suffering from a manpower shortage due to a lack of reinforcements and the supply situation had still not been rectified.The Australian commander, Wootten, was keen to regain the initiative and he decided to resume the advance in the north with a view to securing the remainder of the Huon Peninsula.