Is there anything inherently inefficient using a data queue in this
manner?  Would it be better to use multiple data queue's (one for host
to java another for java to host)?


Data queues were designed for just that type of application and in fact 
are the fastest ways to accomplish what you are after doing.  A data queue 
is really  a special type of user queue but meant for data.  IBM uses them 
all over internally because of the API support and the inherent speed.


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