When the territorial government decided they could not afford her upkeep, Hermes was turned over to the Pacific Air Detachment, whom she served as a store ship and general auxiliary craft.

[3] Late in November 1941 it became apparent to the American Government that Japanese forces were tactically deposed for major operations in Southeast Asia, but their precise target was unknown.

A large convoy was steaming south from the Formosa Straits, and it was hoped that learning the destination of these ships might reveal Japan's intentions.

[3] On 2 December, President Roosevelt ordered, through Chief of Naval Operations, Admiral Harold R. Stark, that the Commander in Chief, Asiatic Fleet, Admiral Thomas C. Hart "charter three small vessels to form a defensive information patrol... to observe and report by radio Japanese movements in the west China Sea and Gulf of Siam.

Tolley's orders read: "Patrol off the entrance of Cam Ranh Bay and report the direction taken by the Japanese Fleet when it emerges."

Charles Adair, flag lieutenant to Admiral Hart, approval was obtained for Lanikai to attempt to escape to the Netherlands East Indies.

On the evening of 26 December, carrying as passengers one Dutch and three American officers, Lanikai, with her Filipino crew,[4] got underway from Mariveles Bay, Luzon, "destination unknown".

Storms covered her as she crossed the three large stretches of open water which lay between Luzon and Australia, and offered no coves for daylight concealment.

Lanikai was decommissioned at Fremantle on 22 August 1942 and was transferred to the Royal Australian Navy in which she served on harbor defense throughout the war.