Possible Clues:

• In part of Japan, old family on holiday short of yen
• Japanese island of military significance
• Island of southern Japan
• Island all right to an extent that Yankee leaves
• Old relations not at home in Scotland -- foreign island looked for
• 1945 battleground
• Group of small islands in southern Japan with US military presence
• Island some took in a war
• Largest of the Ryukyu Islands, scene of heavy fighting in World War II
• Island protected by Bangkok, in a way