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Full text of "War diary : German Naval Staff Operations Division"

RETURN TC ^P-32-CU 

INTELLIGENCE .ja&JULX 

MAVY DEPARTMENT 



WAR D I ARY 



( ♦ 



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German Naval Staff 
Operations Division 



DBCUSSFlED-MfT. 0445, OPNAVIKST 5510.10 

■ » 9/C D AT T --7-67 



PART A VOLUME 28 



December 1941 



9862 



DECUSMJED 



WAR DIARY OP THE GERMAN NAVAL STAFF 
(Operations Division) 

PART A 
December 1941 



Chief, Naval Staff: Grand Admiral Raeder, Dr. h.c. 

Chief of Staff, Naval Staff: Vice Admiral Fricke 

Chief, Operations Division, Naval Staff: Captain Wagner 



Volume 28 

begun; 1 Dee. 19^1 

closed: 31 Dec. 19*1 



9862 



CaWIDcETL-kL 



OFFICE OF NAVAL INTELLIGENCE 
Washington, D. C. 



Foreword 



1. The Office of Naval Intelligence has undertaken to translate 
important parts of the War Diary of the German Naval Staff. The 
present volume, entitled War Diary of the German Naval Staff, Op - 
erations Division , Part A, Volume 2tf, is the first one of the 
series to appear. Other volumes will follow shortly. 

2. The War Diaries, Part A, are important because they contain 
a day by day summary of the information available to the German 
Naval Staff and the decisions reached on the basis thereof. To- 
gether with the Fuehrer Conferences on Matters Dealing with the 
German Navy, 1939- 19^5 # which are in the process of being pub- 
lished by this office, the War Diaries should provide valuable 
material for the study of naval problems arising from total war. 
The War Diary, Part A, is also a useful index to the German Naval 
Archives of World War II; references may be found in the micro- 
film library of Naval Records and Library. 

3. Due to the cost of publication, only a limited number of 
copies could be made; it is therefore desirable that the copies 
which have been distributed are made available to other offices 
which may be interested. 



Washington, D . C , 
19^7 



9862 



c 



CONFIDENTIAL 

1 Dec. 1941 

Items of Political Importance 

Great Britain ; 

In a speech on the occasion of the beginning of "Navy Week", the 
First Lord of the Admiralty declared that Japan is close to com- 
mitting a tragic error, should she choose to follov the voices 
of her chauvinistic militarists. Japan can expect nothing from 
Hitler tut the same fate as Italy. Aid to Russia depends main- 
ly upon accelerating British production in order to keep the 
British Armed Forces well equipped. 

According to news agency reports, a state of immediate readi- 
ness has been ordered in British Malaya. An Armed Forces High 
Command has been created for Burma. 

British-American discussions about economic consequences of the 
Lend-Lease Law are continuing, and are said to have led to con- 
siderable discord between the British Minister of Foreign Trade 
and the U.S. Ambassador. For details see Political Review No. 
282. 

Turkey ; 

According to a DNB report from Ankara, news about the arrival of 
Russian warships in Turkey are to be regarded with considerable 
skepticism. Actually only three loaded tankers have entered the 
Bosporus so far. All reports about the passage and arrival of 
Russian warships are obviously premature. 



Conference on the Situation with the Chief, Naval Staff . 

I. > The Chief, Naval Communications Division reports that a 
teletype decoding machine has fallen into enemy hands in North 
Africa. The loss is unimportant. The alleged bad results at- 
tained by search receivers (S-Geraete) on destroyers are being 
checked by special officials. Inquiries so far have indicated 
that the actual technical installations meet all specifications. 

II. Naval Staff, Operations Division, Foreign Affairs Section 
reports that the Turkish Government, on account of the German 
protest regarding entrance and passage of Russian vessels in 
the Straits, has assented to procedure in accordance with regu- 
lations laid down at the Montreux conference. 

III. The Armistice Commission will begin the planned conferences 
on military questions on 27 Dec. First of all, the question of 
making French tonnage available for shipping troops and supplies 
to North Africa will be taken under consideration. 



_1_ 9862 



1 Dec. 19*U CONFIDENTIAL 

Situation I Dec. 19*11 

I. War In Foreign Waters 

1. Enemy Situation ; 

North Atlantic ; 

According to newspaper reports, the assignment of U.S. 
Naval Forces to the Atlantic has permitted the British Navy to 
send considerable reinforcements to the Pacific as well as to 
the Mediterranean. A statement of further particulars concern- 
ing the suspension of the Neutrality Act in the U.S. may he 
read in News Analysis No. 41, Naval Staff, Foreign Navies Branch. 

According to a Reuter report from Washington, official circles 
there know of the existence of a secret device for long distance 
locating of planes and ships. This device has apparently been 
in use for some time. It is said to be possible to locate planes 
as well as naval craft on the surface and under water with this 
device. 

2. Own Situation : 

Ship "41" is informed by Radiogram 1200 about contents 
of a deciphered secret radio report of Admiralty to British 
cruiser SIDNEY and request to send position not later than 10 
Dec. (see War Diary 30 Nov.). 

It is unlikely, however, that the radiogram will still bring re- 
sults, since there could hardly be any doubt about the Admiralty 
report. But it seems advisable in any case to send the message. 

Reports on the Enemy Situation by Radiogram 1305, 1500 and 2048. 



II. Situation West Area 

1. Enemy Situation ; 
Nothing to report. 

2. Own Situation ; 

Atlantic Coast ; 

Enemy daylight air activity in the La Pallice sector. 
No bombing. 

Channel Coast ; 

Battery "Hundius" and Army Coastal Battery *308' laid 
a barrage on enemy PT boats which had been reported by harbor 
defense craft at 2330. Results were not observed. On route 



c 



_2- 9862 



1 Dec. 1941 



♦ 



"Lila" skirmish "between 1st Motor Minesweeper Flotilla and Brit- 
ish PT boats. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Aerial activity normal during the day, becoming lively 
in the evening throughout entire North Sea area. Radio monitor- 
ing intercepts message from British vessel about sighting two PT 
"boats in the Harwich area. 

Own Situation : 

Unidentified targets located off Hook of Holland were 
fired on by battery "Veneta" during enemy air attacks centered 
mainly on Hamburg and Emden in the night of 30 Nov.. Emden sus- 
tained damage to the extent of 30 houses destroyed and about 300 
damaged. There have been no reports of major military or eco- 
nomic damage throughout the area. Counting the 5 planes defi- 
nitely shot down during that night (see War Diary 30 Nov.), the 
total number of planes shot down within the command area of Ad- 
miral, North Sea Station has been brought up to 250. 

2. Norway : 

Z "23", Z "25", and Z "27" left Bergen northbound on 
30 Nov.. U "134 T ' and U T, 54" have left Kiel for Kirkenes to be 
at the disposal of the Commanding Admiral, Norway. U "131" has 
been detailed as a third ship for the northern area. Otherwise 
nothing to report. It is not contemplated to establish a com- 
mand post on land for the Admiral, Arctic Ocean. Extension of 
the radio stations in Hammerfest and Vardoe, as requested by the 
Commanding Admiral, Norway is unnecessary since submarine escort 
TANGA will be at the disposition of the Admiral, Arctic Ocean as 
long as the Norwegian area retains its present significance. 
After capture of Murmansk and disruption of the Russian overland 
route to Archangel the existing radio stations will be suffi- 
cient for the tasks which still remain. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Se a 

1. Enemy Situation : 

Enemy formation of five vessels sighted in squares 
3516 A0 and 3542 A0 on southwest course. Finns intend to at- 
tack with surface forces and submarines. The 3rd Motor Mine- 
sweeper Flotilla took part in a short skirmish south of Jus- 
saroe without noteworthy results. 



-3- 9862 



BC. 1941 CONFIDENTIAL 

2. ~ l:.:-~l Dn: 

Lp raids on the Kiel and Sch'leswig-Holstein area 
curing the night of J? Nov. resulted in negligible military and 

I _al damage. Three enemy planes were shot down by naval 
anti-aircraft artillery. See Radiogram 23^5 for details. The 
steamer TE. TELS from convoy proceeding from Oslo to Vasa has 
been damaged by collision near Anholt. Troops were transferred 
casualties. TRAUTE:~::L5, which is temporarily grounded 
in shallow water, will dock in Copenhagen after leak has been re- 

_red. The office of Commander, Convoy Control Station, East 
was deactivated on 30 Nov.. Convoy control from now on by Com- 
mander, Mine sweeping Flotillas, North. 



V. Merchant Shipping : 

or ship RIO GRANDE received orders by Radiogram 1135 to pro- 
ceed to Osaka instead of to Yokohama, and not to establish land 
contact until Naval Attache has boarded shio. 



VI. Submarine Warfare 

1. Enemy Situation : 

Radio monitoring intercepted enemy message from Brit- 
b vessel at 2045 from area between 7.5° and 22.5 E, in Mid- 
dle to South Atlantic. American steamers received orders in 
the night of 30 Nov. to change their course and not to acknowl- 
edge radio signals. According to Italian report, convoy SL 
92 was located approximately 250 miles northeast of the Azores 
on northerly course on 22 Nov. 

A British plane sighted surfaced submarine off Cape Spartel at 
2250. British troop transport RANDITATA (16,737 3RT) arrived 
at Gibraltar from the west according to Spanish report. Approxi- 
mately 500 Army and Navy personnel were seen on deck. A fairly 
large tanker as well as a transport of 15,000 3RT, which appar- 
ently carried troops, passed Gibraltar in the afternoon proceed- 
ing eastward. According to Italian report, a convoy of approxi- 
mately 25 steamers is due to leave Gibraltar within a short time, 

2. Own Situation : 

No contact has been reestablished with the convoy 
north of the Azores. For further reports on the situation see 
IP Diary, Part B, Vol. IV. 

Commanding Admiral, Submarines has been advised by Radiogram 
1212 that "Gata" supply base can supply only three, more subma- 
rines and cannot be used Tor this purpose before the night of 
5 Dec. because of the full moon. 



-k- 



9862 



1 Dec. 1941 CONFIDENTIAL 

VII. Aerial Warfare 

1. British Isles and Vicinity : 

According to our count, tBe enemy lost 15 planes in the 
night of 30 Nov.. Only 3 of these were shot down by the Navy. 
British news service reports loss of 19 planes. Armed reconnais- 
sance damaged a steamer of 1,000 BRT during the day off the Shet- 
lands and in the evening while mining the Humber estuary sank a 
ship of 2,000 BRT with an aerial mine, Type B. A 5,000 BRT steam- 
er was reported damaged by an armed reconnaissance plane in the 
Bristol Channel. 

2. Mediterranean Theater ; 

Attacks on convoy of 8 steamers escorted by 6 destroy- 
ers off Solium. No report yet on' results. According to reports 
received so far, the following number of enemy planes were de- 
stroyed in the African theater from 18 Nov. to 30 Nov.^ 75 en- 
emy planes by pursuit planes, 7 by long range fighters and 2 by 
bomber formations. Total: 84 enemy planes destroyed. Anti- 
aircraft artillery shot down 8 enemy planes, damaged 26 enemy 
tanks and destroyed 3 armored scout cars. 

Command post of Field Marshal Kesselring carries the designation 
of "Commanding General, South". Headquarters in Frascati near 
Rome. 

3. Eastern Front : 

Little action on all fronts. Nothing noteworthy ob- 
served in air reconnaissance over Sevastopol. Otherwise nothing 
to report. 



VIII. Warfare in the. Mediterranean 

1. Enemy Situation : 

Western Mediterranean : 

A former Dutch submarine arrived 28 Nov. in Gibraltar 
from the east and is said to have unloaded 26 prisoners. 

Central and Eastern Mediterranean : 

From Italian radio monitoring it is learned that light 
British naval forces operated in two separate groups in the Cen- 
tral Mediterranean on 30 Nov.. The first group, consisting of 
AURORA and PENELOPE, most likely returned to Malta in the after- 
noon. The second group, consisting of ARETHUSA and GALATHEA, 
probably sank the transport ADRIATICO on 1 Dec. at 0300. During 
1 Dec, several British cruiser and destroyer groups operated 
along the entire North African coast between Tripoli and Marsa 
Matruh. At 0955 air reconnaissance located a cruiser and three 



-5- 



9 86 2 



1 Dec. 1941 CONFIDENTIAL 

submarines 50 miles north of Benghazi. Benghazi reported mine- 
laying off the harbor by enemy naval forces at 1100. At 1420 
one of these vessels asked for fighter cover. Three cruisers 
were 66 miles off Tripoli at 1830. See Radiogram 2115 for fur- 
ther details. 

2. Situation Italy ; 

Reports about Italian naval forces scheduled to arrive 
at Taranto at noon 1 Dec. have not yet been received. According 
to radio monitoring, the hospital ship RAMB IV ran aground 60 
miles off Tobruk but was able to get off with damage to the bow. 

3. Transport of Supplies to North Africa : 

The Afrika Korps reports by radio to the Armed Forces 
High Command as follows: "The local impression is that the 
British fleet operates entirely unhindered off the Cyrenaica 
coast. The area south of Tobruk has been bombarded from the sea 
repeatedly with shells of heavy and very heavy caliber. British 
naval and supply vessels arrive day and night at Tobruk harbors. 
Information is requested to what extent the Italian fleet is be- 
ing used to combat British naval forces and what the German sub- 
marines are doing at present. In the opinion of the Panzer Group, 
the latter should constantly lie in wait ready for action off To- 
bruk. The most important and worthwhile targets should be found 
there . " 

An escort torpedo boat took aboard 111 survivors from steamer 
CAPO FARO. They arrived in Argostoli aboard steamer ISEO. The 
tanker MANTOVANI was damaged by aerial torpedo en route to Trip- 
oli 30 Nov.. She was taken in tow by escort torpedo boat and 
later on was attacked again by enemy planes. No further reports 
received. The auxiliary vessel ADRIATICO was sunk on 1 Dec. by 
enemy naval forces north of Benghazi (see Enemy Situation). 
Steamer WACHTFELS put In at Messina because of engine trouble. 
Through enemy air raids on Benghazi between 28 Nov. and 30 Nov., 
the Italian steamer PRIARUGGIA, two tug boats, the motor tanker 
SPERAUCA and one auxiliary sailing vessel were sunk. From 2 Dec. 
to 5 Dec. a transport submarine carrying gasoline and rations is 
to arrive in Bardia every evening. According to report from the 
Commanding Officer, Supplies and Transports, Italy, the following 
supplies have been landed for the Air Force in Derna, Benghazi 
and Bardia since 19 Nov.: 122 tons of fuel, 159 tons of ammuni- 
tion and 50 tons of materiel. 

4. Area Naval Group South : 
Aegean Sea : 

Departure of BARLETTA has been postponed until 2 Dec. 
Black Sea : 

Arrival of supply transport URLAUBST0ERN which left 
Burgas 30 Nov. with ZAR FERDINAND and left Constanta on 1 Dec. 



9862 



1 Dec. 19^1 CONFIDENTIAL 

with CARPATI and CARVANIA and Rumanian escort. Rumanian destroy- 
er escort returned to Constanta because of heavy seas. 

Repeated unsuccessful enemy submarine attacks on ZAR FERDINAND; 
it was extraordinary that they always occurred just when the 
course was changed. 



IX. Army Situation 

1. Russian Front ; 

Southern Army Group ; 

In the 1st Panzer Army sector the enemy followed the 
southern flank of the Army front which had been withdrawn dur- 
ing the night, and at daybreak immediately began attacking the 
rear guard, whereby our line was broken through. The Tuzlov 
front also had to be withdrawn due to strong enemy pressure. 
It is planned to deploy the 1st Panzer Army along the line Primo 
skoye (10 km east of Taganrog-Pokrovskoye, which is 22 km north 
of Taganrog )-Mius for a prolonged defense. 

Central Army Group ; 

The 4th Army, along with the 2nd Army Corps, has 
started to attack toward the northeast as planned, and has 
gained up to 8 km. Panzer Group 4 has gained up to 10 km In 
continued attack to the east and southeast. Panzer Group 3 
reached Khaborovo after a slow advance to the south. 

Northern Army Group ; 

In spite of very heavy artillery fire the enemy at- 
tacked from the Neva bridgehead; attack was repulsed, however. 
Enemy is withdrawing forces from the Leningrad front for use 
south of Lake Ladoga. 

2. Finnish and Norwegian Front ; 
Nothing to report. 

J>. North Africa ; 

In continuing the fight against units of the 2nd New 
Zealand Division, which have been encircled southeast of To- 
bruk, Bel Ramet has been taken. Diversionary attacks from 
the west were successfully repulsed. Since lo Nov., 840 armor- 
ed cars and scout cars have been destroyed and 127 airplanes 
shot down. The number of prisoners exceeds 9,000; among them 
are three generals. 



************************* 



-J- 9862 



CONFIDENTIAL 
2 Dec. 19^1 

I:enis of Political Importance 

France : 

Reichsmarschall Goering, Marshal Petain and Darlan met 1 Dec. 
near Orleans. Results of talks have not been announced so far. 

Croatia: 

According to a report from a diplomatic source, the insurgent 
movement in Bosnia is still in full swing. Large sections of 
the Catholic and Mohammedan population have joined the insur- 
ger. 

• 

Turkey : 

According to reports from the German Embassy, the Turkish Govern- 
ment considers that the Russian danger has passed. The Turkish 
Government counts on being requested by Germany or Great Britain 
to make a clear decision, but it does not believe this will hap- 
pen before next spring. Turkey still hopes to be able to stay 
out of the war and believes this possible if Germany does not 
undertake operations after the occupation of the Caucasus which 
would endanger Turkey's independence. On the other hand, Tur- 
key is vitally interested in the continued flow of material from 
Great Britain and America. She is therefore trying to avoid 
anything which might create the impression of her siding com- 
pletely with Germany. 

U.S.A . : 

The Japanese envoys have made known that they are under instruc- 
tions from Tokyo to continue negotiations. To jo's announcement 
to the effect that Japan will oppose with all her power Anglo- 
Saxon predominance in East Asia has caused greatest concern in 
the U.S.. Kurusu and Nomura are trying to soften these remarks. 
In view of the delay shown by both parties at the talks, concern 
has arisen in U.S. diplomatic circles that the Japanese have 
only the intention of prolonging the conferences in order to as- 
semble meanwhile enough forces for a southern offensive. 

Argentina : 

Government has advised that prior to occupation of Dutch 
Guiana by the U.S. no consultation of the American Republics 
took place, as stipulated in the Havana resolutions. The Ar- 
gentine Government approved the action subsequently, to be 
sure, but Buenos Aires is said to be especially upset about 
the fact that even Brazil gave no notice of the impending move. 

Brazil: 

No Brazilian troops were sen 4 the border as was planned in 
the event of occupation of D Guiana. 



_8- 9862 



2 Dec. 1941 CONFIDENTIAL 

Japan : 

According to Domei, the Japanese Government has fully recognized 
the fundamental differences existing betveen the Japanese and the 
U.S. points of view. However, the Japanese Government is said to 
have resolved to continue the conferences In the interest of 
keeping peace In the Pacific and to invite the U.S.A. to recon- 
sider their attitude. 

Diplomatic circles report that the mood of Japanese Army and 
Navy contingents stationed in Indo-China is predominantly in 
favor of striking soon. Even in the event that It should he 
possible to come to a temporary agreement in Washington, it is 
not impossible that the Japanese High Command in Indo-China will 
independently give orders to advance so as finally to wreck ne- 
gotiations In Washington. 

It would not be the first time that the Japanese Armed Forces 
have made their own policy. 



Conference ,on the Situation with the Deputy Commander in Chief , 
Navy . 

No particular reports or decisions. 



Special Items ; 

The Armed Forces High Command, Operations Staff, National Defense 
has requested the High Command, Army to Investigate possibilities 
for later employment of railway artillery against Moscow and in- 
stallations around Moscow, such as airfields. To be considered: 
whether to make such equipment available from other places, pos- 
sibly also from the Channel coast, for the duration of the winter. 
The Commander In Chief, Navy and the Chief, Armed Forces, Trans- 
portation are to take part in the investigation. (See Radiogram 
1440.) 



Situation 2 Dec. 1941 

I. War in Foreign Waters 

1. Enemy Situation : 

North Atlantic : 

According to U.S. Navy Department the British cruiser 
PHOEBE is lying In New York and the corvette CLARKIA in Mobile 
for repairs. According to the German Legation in Panama, a ship 



-9- 



9862 



2 Dec. 19lU CONFIDENTIAL 

will be leaving New York within the next few days bound for French 
Equatorial Africa. It is loaded exclusively with American engi- 
neers, technicians and experts for installing airplane bases. Ac- 
cording to the Canadian Foreign Minister's declaration of 29 Nov., 
German submarines are still in vicinity of Canadian coast. Accord- 
ing to Associated Press report of 30 Nov., the First Lord of the 
Admiralty declared that in the evacuation of Dunkirk 10 British de- 
stroyers were sunk and 75 were so heavily damaged that they were out 
of commission for a long time. According to another Associated 
Press report, two British submarines have sunk eight Axis ships, 
loaded with troops or supplies, in Arctic waters. 

South Atlantic ; 

U.S. cruiser MEMPHIS and destroyer DAVIS arrived in. 
Pernambuco 1 Dec. 

Pacific Ocean ; 

18 submarines and 96 planes are reported in Hawaii. 
According to British broadcasts, a Japanese force of about 16 
vessels, among them cruisers and carriers, is on a southerly 
course near the Japanese mandated Islands. 

2. Own Situation ; 

U "A" and U "68" reported on the evening of 1 Dec. 
that PYTHON was sunk in. the South Atlantic by a British heavy 
cruiser. All members of the crew, including those of ship "16", 
have been rescued and are being towed northward by the two sub- 
marines. See Submarine Warfare for measures taken by the Naval 
Staff for the shipwrecked. 

Reuter reported as follows about the sinking of ship "16": 
"Just before dawn on 22 Nov. a merchant ship lying to was sight- 
ed in the South Atlantic by an airplane from the DEVONSHIRE. 
DEVONSHIRE approached at high speed and dispatched another plane 
for closer observation. The plane observed a number of oil 
drums aboard the ship. The general appearance of the ship was 
reminiscent of that of a German armed raider. Answer to signals 
from DEVONSHIRE was not satisfactory. This further confirmed 
the enemy origin of the suspicious ship and consequently fire 
was opened. The enemy ship tried to hide behind a smoke screen 
but It was burning within ten minutes and the crew abandoned 
ship. The magazines exploded and the ship sank. The presence 
of a submarine was suspected and confirmed. Under these circum- 
stances it was impossible to take aboard survivors. DEVONSHIRE 
suffered neither losses nor damage." 

Noteworthy in this account is the fact that the auxiliary cruiser 
was first sighted by a plane, which testifies to the systematic 
patrol of the region. From that one could conclude that the en- 
counter was not so accidental as had previously been assumed. 
Another thing to be seen from the report is that the presence of 
a submarine in the vicinity of the German ship was suspected. 
This too might Indicate that the enemy has after all possession 
of some sort of authoritative Information about our measures. 
On the other hand It is possible .that these two suspicions are - 



C 



-10- 



9862 



2 Dec. 1941 CONFIDENTIAL 

entirely unfounded, since the opponent will certainly have reck- 
oned vith our supplying the submarines they located in the South 
Atlantic "by floating bases in outlying regions. 

Concerning the battle between ship "4l" and SIDNEY, Reuter pub- 
lishes a communique of the Australian Government which states 
that SIDNEY was in an engagement with an armed enemy auxiliary 
cruiser which was sunk by gunfire. There was "no further news 
from SIDNEY and it must he supposed that she is lost". The Aus- 
tralian Prime Minister has announced that the entire crew of the 
SIDNEY, 42 officers and 60J> men, are missing. According to a 
further Reuter report, the SIDNEY was sunk hy the STEIERMARK. 
These reports confirm the assumption that the sinking of the SID- 
NEY is connected with the auxiliary cruiser ship "4l (see War 
Diary 1 Dec). As far as can be determined at present, the aux- 
iliary cruiser sold her life dearly and crowned the unfortunate 
end of her successful career with a last success which is espe- 
cially gratifying and valuable. Since reports so far received 
indicate that several of the crew of ship "4l" have survived, 
we may count on further news. 

Naval Staff orders that the next of kin of the crew be notified, 
in order to let them know about loss of the ship in an appropri- 
ate way "before the fact is published or "becomes generally known. 
At the same time immediate inquiries about the whereabouts of 
survivors will be instituted with the Red Cross. 



II. Situation Vest Area 

1. Enemy Situation ; 

Air reconnaissance reports a convoy of ten ships on 
northern course in St. George* s Channel. 

2. Own Situation ; 

Atlantic Coast ; 

No sea patrols northwest of Spain because of weather 
conditions . 

Channel Coast ; 

Mine operation of 4th PT Boat Flotilla executed as 
planned. 1st Motor Minesweeper Flotilla had a short engage- 
ment with four British PT boats off Kwinte Bank. Hits on the 
enemy were observed. No damage to our ships. Bombardment of 
targets located off Nieuport by Army battery, without observa- 
tion of results. 



III. North Sea, Norway, Arctic Ocean 



-11- 9862 



2 Dec. 1941 



CONFIDENTIAL 



1. North Sea ; 
Nothing to report. 

2. Norway ; 

Enemy Situation ; 

According to radio monitoring, bombardment of Vardoe 
on 25 Nov. was carried out by the British cruiser KENYA, two 
British destroyers, and two Russian destroyers. 

Own Situation ; 

The 8th Destroyer Flotilla with Z "24" and Z "26" 
awaits arrival in Tromsoe of TANGA with Z "25", Z "25", and 
Z "27" in order to proceed north together with them. 

The 8th PT Boat Flotilla with LUEDERITZ has left Aalesund for 
the north. According to report from the Commanding General, 
Norwegian Theater the two 21 cm Army coastal batteries in Pet- 
samo and Kirkenes will be equipped with only two guns each. 
Since this is entirely insufficient for shelling targets at sea, 
the Commanding Admiral, Norway has urged the Naval Staff to e- 
quip them with at least three guns each (see Radiogram 1255). 
The Naval Staff, Quartermaster Division receives orders to set- 
tle the matter. % 



c 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea ; 

Minelayer "529" was sunk by a mine in the western Kolberg mine 
field. 

Group North reports that minesweeping operations north of Dagoe 
could not be started yet due to weather conditions and icing of 
ships. Steps will be taken to substitute larger and better 
adapted vessels for the small motor minesweepers which are un- 
suitable because their spray freezes on them. (See Radiogram 
1750.) Finnish reports state that two ships from the convoy 
sighted 1 Dec. have been sunk by coastal artillery. 



< 



V. Submarine Warfare 

1. Enemy Situation ; 

Radio monitoring reports that the British steamer 
MIGUEL DE LARRINAGA (5,231 BRT) was chased and shelled by a 
submarine 200 miles southwest of the /.'.ores. Airplanes re- 
ported submarines west of Cape Sparte 

Acceding to Italian reports, additional patrols for the Strait 



-12- 



9862 



2 Dec. 1941 CONFIDENTIAL 



of Gibraltar consisting of two destroyers and six gunboats are 
being established between Cape spartel and Cape Trafalgar. 

2. Own Situation ; 

Report in War Diary, Part B, Vol. V. : Commanding Ad- 
miral, Submarines receives following instructions regarding res- 
cue of PYTHON survivors and survivors of ship "16". 

1. The following alternatives are to be considered: 

a. Transport home by German and Italian submarines sent 
out to meet them. 

b. Towing to Angola by own submarines. 

c. Towing to St. Helena. 

d. Calling neutral or enemy ship to take them aboard. 

Decision depends entirely upon supply situation. Most favorable 
solution is "a", but it probably cannot be achieved. Then "b" 
should be tried. 

2. Rescue of survivors must under no circumstances lead to 
loss of submarine. Therefore in any case only so many survivors 
should be taken aboard as can be handled without impairing the 
submarine's diving ability. 

3. Men to be taken aboard submarine for return to Germany will 
be chosen by commanding officer of ship "16". 

4. Initiate procedures immediately. Make suggestions. (See 
Radiogram 2020. ) 

"Gata" Supply Base : 

Political pressure on Spain by the enemy and related increasing 
difficulties in transporting additional fuel supplies force us 
not only to particular caution in using "Gata" but also to its 
limitation to the most urgent cases. Reports show that the en- 
emy suspects that we are supplying our submarines from south 
Spanish harbors. Our current operations In the Gibraltar area 
will make him more aiert. Considering this, the use of "Gata" 
is dangerous and unfavorable at present. There is a particular- 
ly great risk that it could be completely paralyzed. 

Along with information about this situation, the Commanding Ad- 
miral, Submarines therefore receives directive that particular- 
ly Group Steuben is to try to get along without "Gata" supplies, 
possibly using "Bernardo" in emergency. Premature termination 
of current operation of this group must be reckoned with. 

Refueling of submarines proceeding from Baltic Sea in western 
French ports is deemed advisable by Naval Staff. Use of "Gata" 
for these boats will thus be postponed or avoided entirely. 



-13- 



9862 



2 Dec. 1941 CONFIDENTIAL 

See Radiogram 1553 for further details. 



VI. Aerial .Warfare 

1. British Isles and Vicinity : 

Armed reconnaissance of 5th Air Force reported severe 
damage to steamer (3,000 BRT) near Suderoe (Faroe Islands). 
Otherwise nothing to report. Night action against ship targets 
met with no success. 

2. Mediterranean Theater ; 

Because of existing conditions at sea, the Armed Forces 
High Command, Operations Staff, National Defense has ordered that 
the most important reinforcements for North Africa be transported 
in the main by air rather than by water. The Commanding General, 
Armed Forces, South received directions to support the battle in ( 
Cyrenaica by active combat and by air transports until the bulk of 
the scheduled planes arrives, to combat enemy shipping in the cen- 
tral Mediterranean and the enemy supply lines to Tobruk, to pro- 
vide for the security of our own convoys, and to keep the British 
Air Force grounded at Malta. After arrival of units assigned to 
him, the main task of the Commanding General, Armed Forces, South 
will be a continuous attack on Malta and its supply routes, with 
the aim of eliminating this British sea and air base. 

3. Eastern Front : 

Operations by strong bomber and divebomber units in 
Rostov area. Nuisance raids on Moscow and Leningrad. 



VII. Warfare in the Mediterranean 

1. Enemy Situation : , 

Western Mediterranean : 

According to unconfirmed Italian reports, a large con- 
voy passed Gibraltar the morning of 29 Nov. with an easterly 
course. This might have bt*en the announced convoy from the- U.S. 

Central and Eastern Mediterranean : 

From reports of German and Italian air reconnaissance 
and from radio monitoring the following can be determined: A 
convoy of eight steamers and six destroyers was located in the 
Bay of Solium the evening of 1 Dec, and 3 hours later it was 
northeast of Tobruk. It may be assumed that it arrived in To- 
bruk during the night. According to a submarine report, five 



_l4_ 9862 



2 Dec. 19^1 CONFIDENTIAL 

cruisers and tvo destroyers arrived in Tobruk on 2 Dec. at 0417. 
These same units were again off Tobruk at 0900 on a northerly- 
course. A steamer and two destroyers moved eastward in the same 
area. One hour later there were reports from a unit northeast 
of Solium with designation "Local", and another unit with desig- 
nation "Nobad" west of Benghazi that they were under a bomb at- 
tack by enemy aircraft. In the eastern Mediterranean heavy bat- 
tle forces were ^5 miles- north of Alexandria at about 1100. At 
approximately the same time two cruisers and three destroyers 
were in this area heading for Alexandria, while 100 miles west 
of that port there were four merchantmen and east of them one 
destroyer on west course. These various reports point out the 
scope and speed of the supply traffic and its escorts between 
Tobruk and Alexandria. According to reports of 1 Dec. from an 
Italian agent, a damaged heavy British cruiser has arrived in 
Alexandria. The date is unfortunately missing. Besides that, 
more submarines are said to have arrived in Malta. Extensive 
air and sea operations are said to be planned against our own 
supply traffic by way of Salonika to Libya, and against our air 
reinforcements by way of Crete. 

Beginning at 1115, & British plane tracked two Italian destroy- 
ers 25 miles west of Crete. According to a deciphered radio 
message of British Admiralty, the Dutch submarine "21" sank 
two schooners off the Italian coast by gunfire and ramming on 
a recent date. (Cf. War Diary 1 Dec, Enemy Situation, Western 
Mediterranean. ) 

2. Situation Italy : 

Air raids on Benghazi and Derna during the night of 1 
Dec; no report of damage was received. A belated report tells 
of successful attack 'on British force off Tobruk by Italian 
torpedo planes. One destroyer of AURORA class was sunk in this 
attack. 

3. Transport of Supplies to North Africa : 

Naval Staff takes the following position to the esti- 
mate of the situation of the German Panzer Group, Africa as 
given by the Naval Liaison Officer to the Army High Command (see 
War Diary 1 Dec . ) : 

A. a. Naval Staff of same opinion regarding operations of 
British naval forces. 

b. Italian Fleet incapable of prevailing over even an 
outnumbered opponent or of gaining temporary control of the 
seas. Employment of light Italian forces for transport of 
supplies is strongly urged here. 

c German submarines, in recognition of the significance 
of the fight in North Africa, will do their best in the face of 
severe handicaps. Their main area of operations is In accord 
with the suggestion of the German Afrika Korps. Planned maxi- 
mum number of boats In eastern Mediterranean not yet reached 
for technical reasons. 



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9862 



2 Dec. 1941 CONFIDENTIAL 

B. Transmission to German Afrika Korps left to discretion. To 
this the Navy Liaison Officer reports to the Army High Command: 
The German General at Headquarters, Italian Armed Forces has al- 
ready answered radiogram from German Afrika Korps today as fol- 
lows : 

a. All available German submarines in the eastern Mediter- 
ranean are operating along the Cyrenaican coast and farther east. 
Reinforcements are being brought up at an accelerated tempo. 

b. Italian surface forces are being employed as far as 
possible for ferrying supplies and as transport escorts. 

Therefore do not pass on telegram received from there. 

In view of the tense situation at sea, the Armed Forces High Com- 
mand has again intervened and designates by the following di- 
rectives air transport as the main carrier across the Mediterranean . 

The situation in North Africa demands utmost efforts to supply 
units of the German Armed Forces fighting there, to replenish the 
considerable losses and to bring up first rate reinforcements. 
With the present situation at sea, air traffic Is the main car- 
rier across the Mediterranean. 

Compilation of requirements for all branches of the Armed Forces 
and allocation of priorities is the task of the German General, 
Headquarters, Italian Armed Forces, Rome. He will order from 
Germany according to transportation facilities. The High Com- 
mands will report to him what is available for shipment. (Copy 
to Supply and Transportation Office of the Armed Forces Overseas, 
and Armed Forces High Command, Operations Staff, National Defense.) 

The following holds for processing these transports: 

1. Transports from Germany to Italy will be processed by central 
Supply and Transportation Office of the Armed Forces Overseas, 
rail transportation in collaboration with Chief, Armed Forces, 
Transportation, and air transportation (In exceptional cases) in 
collaboration with Headquarters, Commander in Chief, Air. 

2. Transports from Italy to North Africa will be processed cen- 
trally by German General at Headquarters, Italian Armed Forces, 
Rome. He makes allocations, in collaboration with 2nd Air Force, 
to either air or water transport. 

5. Execution of air transports to North Africa is task of Com- 
mander in Chief, Air (2nd Air Force) who collaborates on trans- 
ports from the Balkan area with the Commanding General, Armed 
Forces, Balkans. 

(See Radiogram Armed Forces High Command, Operations Staff, Na- 
tional Defense, Quartermaster Supplies Division, OKW/WFST./L. 
I op H Qu. 002890/^1 Gkdos. in War Diary, Part C, Vol. XIV.) 

While on transport duty, the Italian destroyer DA MOSTO and tank- 



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9862 



2 Dec. 19^1 CONFIDENTIAL 

er MONTEVANI were sunk by enemy naval forces on 1 Dec. 65 miles 
northwest of Tripoli. (See War Diary 1 Dec.) Because of dam- 
age sustained from depth charge, transport submarine MITTA was 
forced to cut short her voyage from Benghazi to Derna on 2 Dec. 
and to return directly to Italy. It was possible to salvage 
392 barrels of gasoline from the tanker BERBERA. Three cruisers, 
two destroyers and three steamers are being loaded in Taranto. 
Transfer of Special Command 289 from the Aegean Sea has been 
postponed. 

4. Area Naval Group South ; 
Aegean Sea : 

Nothing to report. 

Black Sea t 

Enemy Situation : 

According to Italian report, a Russian destroyer has 
been sunk by a floating mine in the Black Sea. 

Own Situation : 

Nothing to report. 

5. Situation Turkey : 

Besides giving fantastic rumors about Germany, decoded 
radio reports from British Communication Officer in Istanbul of 
13 and 22 Nov. tell about our intention to intensify air attacks 
on Egyptian bases, about air transports as compensation for in - 
creased shipping difficulties (unfortunately connection not clear ) , 
and about equipping Russian vessels when they pass by Istanbul 
with demolition charges to prevent capture by the enemy. (Cf . 
Radio Intelligence Reports 1^55 and 1655.) Another deciphered 
radio report of a naval attache from Ankara to the Admiralty con- 
tains particulars about British-Turkish cooperation in military 
matters and has been made available to the Foreign Office by the 
Naval Staff. 



VIII. Army Situation 

1. Russian Front : 

Southern Army Group : 

No change in the Crimean situation. Movements of 1st 
Panzer Army for drawing back its front effected as planned. En- 
emy follows with strong forces. 

Enemy attacks on the 17th and 6th Army sectors have been repulsed. 



-17- 



9862 



2 Dec. 1941 CONFIDENTIAL 

Central Army Group ; 

2nd Army on the advance. 3rd Panzer Division broke 
through enemy position east of Tula. Operations of 4th Army to 
complete encircling front were continued and therefore only 
small territorial gains were made in the south. At the 9th Army 
sector Panzer Group 3 encountered fairly strong resistance in 
its attacks at Dmitrov. At Kalinin ve sustained considerable 
losses through enemy air attacks. 

Northern Army Group : 

Attack near Tikhvin repulsed. 

2. Finnish and Norwegian Front : 

Enemy measures to evacuate Hangoe are continuing. At 
the Karelian Army sector, attack of VII and II Army Corps against 
Medvezhya Gora has gained further ground. Artillery engagement 
between Finnish coast artillery and enemy convoy escort southeast 
of the Koivisto islands. 

3. North Africa : 

A good part of the 2nd New Zealand Division was taken 
prisoner southeast of Tobruk. The rest retreated behind the 
Trigh el Abd. Air reconnaissance impossible because of bad 
weather. No change in Solium and Bardia front. 



*♦*♦*•**♦****♦***#*******# 



-18- 



9862 



• 



CONFIDENTIAL 

3 Dec. 19^1 

Items of Political Importance 

Denmark ; 

The Danish Minister at London, Count Reventlow, made known to 
his Foreign Office that he can no longer accept its directives, 
since Denmark's joining the Anti- Comintern Pact has jeopardized 
the traditional Anglo-Danish relations. 

Great Britain ; 

In a speech to the House of Commons on 2 Dec. Churchill demanded 
sweeping expansion of the use of manpower in the British war e- 
conomy. Drafting of women should be included in these measures. 
For details see Political Review No. 284, Paragraph 2. 

Italy ; 

From remarks made by Italian officers at Huntzinger's funeral, 
German participants concluded that a definite change in Italy's 
attitude regarding collaboration with France can be seen. The 
Italo-French questions should be cleared up and Italian terri- 
torial claims discussed, Ciano is to contact the German Govern- 
ment in this matter. 

Rumania; 

The British Government has presented Hungary and Rumania with 
the same ultimatum as that which Finland received. 

U.S.A . : 

Welles, upon express request by Roosevelt, has asked an explana- 
tion from the Japanese representatives regarding the reinforce- 
ment of Japanese forces in Indo-China. No time limit is said to 
have been set for answering this question, however. 

Japan ; 

The Japanese Government and Armed Forces are still studying the 
U.S. note of 26 Nov.. Special difficulties are said to be 
caused by the fact that the note contains to a large extent the 
uncompromising demands of Chiang Kai Chek. Japan would regard 
the announced U.S. air control of the Burma Road as armed prov- 
ocation. A situation similar to the one confronting the Axis 
Powers in the Atlantic defense zone would be created. 



Situation 3 Dec. 1941 
I. War in Foreign Waters 
1. Enemy Situation ; 



-19- 9862 



3 Dec. 1941 CONFIDENTIAL 

North Atlantic ; 

According to Spanish reports, transfer of the French 
Fleet from Dakar to the Mediterranean is expected at Gibraltar 
as result of the meeting between Goering and Pet a in. 

South Atlantic : 

According to a decoded radio message, the Commander in 
Chief, South Atlantic has reported radio fix on a submarine about 
^o u ilfo w on 17 Nov.. DRAGON and DUNEDIN stood northwest of 
Eathurst on 15 Nov.. Auxiliary cruiser CANTON stood north of St. 
Paul's Rocks on northwest course from 21 to 24 Nov.. Auxiliary 
cruiser ALCANTARA left Capetown on 16 Nov. and was located in the 
La Plata area on about 26 Nov. 

Indian Ocean : 

According to a decoded radio message, convoy WS 12 J, 
part of the convoy WS 12, which was escorted across the Atlan- 
tic by PRINCE OF WALES, was reported to be 12 miles south of the 
Gulf of Bengal on 26 Nov.. The GLASGOW was also there at the 
time. According to newspaper reports, a British naval force, in- 
cluding several heavy units, has arrived in Singapore. The new 
Commander in Chief of the British Far Eastern Fleet, Sir Tom 
Phillips, has placed his flag on the PRINCE OF WALES. A zone 
closed to navigation has been designated south of the Johore 
coast and east of Singapore. 

Pacific Ocean ; 

The British Admiralty has ordered cessation of Brit- 
ish merchant shipping in the China Sea, according to news re- 
ports . According to radio monitoring, the Siamese Naval Attache 
has Informed the British Naval Attache in Tokyo that one Japa- 
nese battleship of 45,000 tons with nine 40.6 cm guns is being 
commissioned, and that a second one of this class will be ready 
by the end of the year. Besides this, the Siamese assumes that 
construction of two heavy cruisers will begin by spring 1942. 

2. Own Situation : 

Reuter reports to the sinking of SIDNEY and ship 
"41" that the German ship STEIERMARK has been known for some 
time as the pirate ship 41", and it sailed under the name of 
C0RM0RAN. Furthermore, data on the sinking of this auxiliary 
cruiser are announced. Two lifeboats with survivors of the 
C0RM0RAN have reached the city of Carnarvon in western Australia. 
The survivors declared that their ship scored immediate, success- 
ful hits on the SIDNEY. However, the sinking cruiser returned 
fire and was able to set the C0RM0RAN afire. A number of survi- 
vors from several lifeboats were taken aboard fishing craft and 
scout planes. The Commanding Officer of the C0RM0RAN was res- 
cued by an Australian ship. 320 men were rescued from the C0R- 
M0RAN according to latest reports. 

It is the opinion of an American observer that the cruiser SID- 



-20- 



3 Dec. 19*U CONFIDENTIAL 

NEY vas sunk by a heavy cruiser ( "Taschenkreuzer ") vhich accom- 
panied the STEIERMARK on some of her raids. He thinks it doubt- 
ful that the STEIERMARK, with a speed of 18 knots, could be vic- 
torious over the SIDNEY with a speed of 33 knots. 

Since the complement of ship "41" amounted to about 400 men, the 
high number of men rescued is most gratifying. It is not yet 
possible to form a clear picture of the action from reports now 
on hand. The circumstance that in all probability there are no 
survivors of the SIDNEY leads one to suppose that the cruiser 
went down suddenly as the result of an explosion or that she cap- 
sized immediately. 

Radiogram 0543 gives locations of Swedish ships as of 28 Nov. as 
well as movements of American merchantmen. 



II. Situation Vest Area 



1. Enemy Situation: 



At 2016 radio monitoring intercepted continuous loca- 
tion reports to British PT boats on movements of one of our con- 
voys. Permission to fire was given to one of these PT boat 
units. 

British PT boat "54" was stranded in the Portland «rea at noon. 

2. Own Situation ; 

Atlantic Coast : 

Fourteen Mark XIV mines, with little growth on them, 
were removed in the La. Rochelle area by the 54th Minesweeper 
Flotilla. 

Channel Coast ; 

Mine-exploding vessel "168" sank two vessels and dam- 
aged another two in an engagement with enemy PT boats off Cape 
Gris Nez. Patrol vessel 1809" sank one large PT boat, and 
another one was badly damaged by patrol vessel "1813". Our own 
units arrived in Boulogne as planned. We have to wait for de- 
tails about this new and gratifying success of the defense forces. 

According to a report by Commander, Torpedo Boats, radio monitor- 
ing seems to have confirmed success of the C mines laid at buoy 
"54" by the 4th PT Flotilla. Busy minesweeping could be observed 
along this part, of the convoy route during 2 Dec. Removal of 
four acoustic mines has been reported as a result of this activ- 
ity, so that we can be sure, that the opponent is able to sweep our 
aerial mine Type B with Fab XI . (See Radiogram 1505.) 



-21- 



9862 



3 Dec. 19*U C ONFIDENTIAL 

III. Situation North Sea, Norway, Arctic Ocean 

1. North Sea ; 
Nothing to report. 

2. Norway : 

Enemy Situation : 

According to a new survey of the Finnish Hydrographic 
Office, transmitted by the Army High Command, Norway through the 
Armed Forces High Command, shipping in the White Sea needs as- 
sistance of icebreakers beginning the middle of December. Usu- 
ally it is possible to keep this sea route open throughout Janu- 
ary by using medium-sized icebreakers. Peacetime experience has 
shown that all shipping is impossible during February, March, 
and the beginning of April. Starting the middle of April, ship- 
ping may be possible with the aid of heavy icebreakers. In May 
the ice disappears from the middle of the White Sea. However, 
drift ice may still be heavy enough with south and northeast 
winds to interrupt shipping and even to stop heavy icebreakers. 
Report to Group North, Admiral Arctic Ocean, Commanding Admiral, 
Norway by Radiogram 1933. 

Own Situation ; 

Two torpedo misses on convoy north of Hammer f est at 
1230. Surfaced enemy submarine was pursued by submarine chasers. 
Submarine chaser UJ 1708" was sunk by a torpedo during the 
chase, which apparently came from a second enemy submarine. Hits 
of our own on the pursued submarine are assumed although clear 
observation was not possible. 

The steamer NORDLICHT, loaded with Christmas gifts for the troops 
in northern Norway, was attacked by an enemy plane near Feistein 
and received a bomb hit. The ship reached Stavanger under her 
own power and is being kept afloat by pump steamers. No loss of 
personnel. 

Two fishing cutters were shelled by an undetermined enemy east 
of Vadsoe and one of them set afire. Entrance to Kvaenangen 
Fjord has been closed because of mine danger. 

Submarines u "45V, U "13V, and U "130" left Kris tiansand- South 
northbound. The 15th Minesweeper Flotilla is at Bergen, and de- 
stroyers Z "23", Z "25" and Z 1l 27" arrived at Trondheim. De- 
parture of the submarine U "584" from Bergen was postponed for* 
ten days because the Commanding Officer is sick. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 
1. Enemy Situation ; 

According to radio monitoring, submarine S "9" received 



22- 



9862 



3 Dec. 19^1 CONFIDENTIAL 

orders to put into Hogland. A Finnish report states that a group 
of six vessels was shelled by Finnish heavy artillery in quadrant 
3526 AO. A second group of three ships was located in quadrant 3525 
AO on an easterly course. A transport, most likely the MOLOTOV, 
struck a mine in the Korbetha field. About fifty detonations were 
observed on Odensholm during the night of 2 Dec, apparently caused 
by destroying ammunition and blasting the lighthouse; it can be 
assumed that Odensholm is being evacuated. An 800 ton Russian 
freighter was sunk southeast of Kallbaadagrund by artillery fire. 

2. Own Situation : 

The Russian transport STALIN (12,000 BRT) was driven 
aground off the west point of Reval Bay. Her bow was severely 
damaged. Officers and women were taken aboard patrol boats "313" 
and 314". The steamer was boarded by Naval .Irtillery Unit 636. 
According to first reports, 6,000 soldiers of all ranks from 
Hangoe were aboard. The ship supposedly received three mine hits. 

Hangoe and Russaroe have been occupied by the Finns. 

Substitute convoy from Stettin to Vasa, consisting of three 
steamers with 2,228 men and 235 vehicles, departed on 2 Dec. 
Nothing to report from the western Baltic and the Baltic Sea en- 
trances. 



V. Submarine Warfare 

1. Enemy Situation ; 

A British cruiser patrolled the Denmark Strait on 30 
Nov.. On 3 Dec radio monitoring located one British vessel a- 
bout 250 miles southwest of Rockall Bank and another one 400 
miles west of Vigo. Names and locations, probably reference 
points, were intercepted from Newfoundland. According to Italian 
reports, the vicinity of the coast of Iceland is being patrolled 
by naval vessels to assist the trawlers there. A northern (White 
Patrol) and a southern (Black Patrol) zone have been established. 
The center line of the Black Patrol runs from about 63° 30' North 
150 15' West on 2500. According to another Italian report, steps 
were taken on 24 Nov. to accelerate sending more British subma- 
rines from home to the Mediterranean. UP 35" is supposed to 
leave the Rosyth area on 6 Dec. Another U-boat from the Orkney 
area should arrive in Gibraltar on 12 Dec. In the Strait of 
Gibraltar during 2 Dec. there was heavy traffic of destroyers 
and gunboats on patrol under air cover. According to a Spanish 
report, the cable ship MIRROR has been installing sound detect- 
ing equipment at Punta de Europa since 29 Nov. 

2. Own Situation : 

Our own submarines have confirmed the heavy patrolling 
of the Strait of Gibraltar. U-boats operating in the South re- 
port sinking of the American steamer SAGADAHOC (6,275 BRT) which 
was en route from New York to Durban with lights dimmed and with- 



-23- 



9862 



3 Dec. 19^1 CONFIDENTIAL 

out proper markings. Comma riding Admiral, Submarines reports that 
• submarines U "124* and U "129" nave been sent to meet U "A" in or- 
der to rescue the crevs of the PYTHON and ship "16". They are to 
take the survivors aboard and return home as fast as possible. 
The submarines must be able to submerge at any time. Plans have 
been made to send additional (Italian) submarines to assist in 
rescue operations. Three submarines located in the operational 
area and three scheduled to put to sea on 8 Dec. are being con- 
sidered. 

For further reports on the situation see War Diary, Part B, Vol. 
IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 
Nothing to report. 

2. Mediterranean Theater ; 

An enemy cruiser of the AURORA, class, which was sunk 
on 1 Dec, received almost simultaneous hits from three Italian 
torpedo planes and sank within 2 minutes. 

3. Eastern Front ; 
Nothing to report. 



VII. Warfare in the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean ; 

According to Reuter, the Australian Prime Minister has 
announced the sinking of the destroyer PARRAMATA (1,060 tons) L 

which had been serving as convoy escort. l4l officers and men 
are missing. The destroyer had last been identified in the Medi- 
terranean during May 19*11. 

Central and Eastern Medit erranean ; 

Activity by the Mediterranean Fleet and radio traffic in 
the eastern Mediterranean was lighter than in previous days. 
A convoy moving toward Tobruk and light defense units were re- 
ported off the Marmarica coast by German and Italian air recon- 
naissance. A submarine was sighted north of Benghazi. 

2. Situation Italy ; 
Nothing to report. 



-24- 9862 



3 Dec. 19^1 CONFIDENTIAL 

3. Transport of Supplies to North Africa : 

The scheduled reinforcement movements have been exe- 
cuted without Interference. Report about the 49th and 50th 
Squadrons leaving Tripoli not yet received. 

4. Area Naval Group South : 
Aegean Sea : 

Enemy Situation : 

Air reconnaissance sighted an unidentified freighter 
in Turkish territorial waters at the outlet of the Dardanelles. 
She flew a red flag; no crescent moon could be discerned. I- 
talian PT boats attacked an icebreaker at Castelrosso. She flew 
a faded Turkish flag and had a faint Turkish emblem on her gun- 
wale. 

Own Situation : 

The auxiliary naval vessel BARLETTA and three PT boats 
have postponed departure again because of weather conditions. 

Bl ack Sea : 

Enemy Situation : 

According to an Italian report from a reliable source, 
the Russian steamer SAKHALIN and icebreaker NIK0LI0N left the 
Bosporus the afternoon of 2 Dec. in the direction of the .Aegean 
Sea. 

Own Situation : 

During the afternoon of 2 Dec. underwater detonations 
sank the steamers CAVARNA and CORDELIA from the supply convoy 
Urlaubstoern 7 miles south of Burgas. The steamer ZAR FERDINAND 
turned back and arrived at Sulina. The steamer CARPATI continued 
her voyage and arrived at Ochakov North. Communications were 
disrupted before more information could be obtained. 



VIII. Army Situation 

1. Russian Front : 

Southern Army Group : 

The situation in the Crimea remains unchanged. The 
enemy advanced cautiously toward positions of the 1st Panzer 
Army which had been withdrawn, and attacked on several sectors 
with tank and plane support. The attacks were repulsed. At the 
17th and 6th Army sectors enemy attacks on several positions al- 
so were repulsed. 



-25- 

9662 



5 Dec. 19^1 CONFIDENTIAL 

Ceatral Army Group : 

Operations of the 2nd Army and 2nd Panzer Army are con- 
tinuing successfully. Enemy attempts to break out of the encir- 
clement were repulsed. Situation at the 4th and 9th Armies has 
not undergone noteworthy changes. 

Northern Army Group ; 

At 16th Army sector, parts of X Army Corps have gained 
ground against pillbox positions and heavily mined terrain. 
North of Lake Ilmen the enemy attacked the position of the 250th 
Spanish Division at Novgorod after heavy artillery preparation. 
Enemy attacks on Tikhvin from the north and northvest were repul- 
sed. Enemy transport of reinforcements from Leningrad across the 
ice to the sector west of Volkhovstroy was continued. Attacks 
from Leningrad with tank and plane support collapsed under the 
fire of the 1st Infantry Division. 16th Army has taken more than 
50,000 prisoners from 16 Nov. to J>0 Nov. 

2. Finnish and Norwegian Front : 
Nothing to report. 

3. North Africa : 

The enemy stopped retreating and remained south of 
Trigh el Abd. Rather strong enemy forces were brought into 
action north of there to create a diversion. A renewed attack 
from this area is expected. A Panzer Group, with the German 
Afrika Korps and the Italian XXI Army, continued mopping-up op- 
erations in the area southeast of Tobruk. The Gambara Corps 
was deployed along Trigh Capuzzo, ready to throw off an attack 
from the south. 



#♦#****»♦*************♦*♦ 



" 26 " 



CONFIDENTIAL 

4 Dec. 1941 

Items of Political Importance 

India: 

The government has set free members of the Congress Party who 
had been imprisoned for civil disobedience, among them the well- 
known leaders of the Indian independence movement, Nehru and 
Azad. 

Turkey : 

On 2 Dec. three Russian tankers unloaded 27,000 tons of gasoline 
at Istanbul, bought in accord with recently concluded trade agree- 
ments. The tankers will return to Batum for additional loads. 

Afghanistan : 

The British and Russian governments have demanded permission to 
use the road from India over Afghanistan to Russia for Anglo- 
Russian traffic. 

U.S.A . : 

Public opinion, changeable as is usual in times of crisis, is at 
present taking a slight turn for the better. Japanese circles 
profess to know that British Influence in Washington tends to 
have a moderating effect. 

It was announced in Washington that Turkey will receive aid under 
Lend-Lease, since according to Roosevelt's declaration the de- 
fense of Turkey is vital to the protection of the United States. 
The Turkish attitude is not yet known. 

The responsible committee in the House of Representatives passed 
a new appropriation of 8 billion dollars, so that now a total of 
68 billion dollars has been appropriated since 1 July 1940. The 
House of Representatives passed a resolution giving the govern- 
ment power to intervene in strikes in essential industries. Ac- 
cording to a Department of Agriculture report, agricultural pro- 
ducts worth $200,000,000, seven eights of them foodstuffs, have 
been made available to the representative of the British govern- 
ment from April to September 1941. 

Argentina : 

The government has consented to put the entire production of 
wolfram ores up to 3»000 tons yearly at the disposal of the U.S.A. 
over a period of three years. Production schedules call for an 
increase from 1,250 tons in 1940 to 2,000 tons in the first year 
of the contract and 5,000 tons in the third year. 

Australia : 

Political Review No. 284 discusses internal difficulties in con- 



-27- 



9862 



k Dec. 1941 CONFIDENTIAL 

Election with the Australian war effort overseas and the high rate 
of casualties among Australian troops. 



Special Items ; 

The Duce stated on 1 Dec. to the German General at the Italian 
Armed Forces Headquarters, in the presence of General Cavallero, 
that he is confident that the battle in Marmarlca will be brought 
to a successful conclusion. No matter what the outcome of this 
battle, however, he has the strongest apprehensions about the 
further progress of the struggle for Libya. During the last months 
the situation there has gotten steadily worse, so that it is al- 
most impossible to supply the forces there with their most urgent 
needs. In view of this situation, the Duce does not see how he 
can replenish the losses of men and material incurred In the fight- 
ing or how to ship fresh troops. Neither the use of German subma- 
rines, valuable as they are, nor the arrival in Sicily of the II 
Air Corps could change the transportation situation sufficiently 
to enable us to keep up witn the British in the long run. The only 
chance that he can see for a basic improvement In the transporta- 
tion situation is in freeing Bizerte harbor. This problem is of 
such importance that one could make far-reaching concessions to the 
French for It, for Instance by releasing prisoners of war. A solu- 
tion must be found as quickly as possible, since we would have to 
have the use of Bizerte by December at the latest. In case the 
French should not willingly consent to our use of Bizerte, the har- 
bor should be taken by force. This seems necessary because the on- 
ly other alternative for real improvement of the transportation 
situation, the occupation of Malta, Is not possible. The Duce ex- 
plicitly asked the German General to transmit his opinions to the 
Chief of Staff, Armed Forces High Command. He does not believe 
that Libya can be held much longer nor that a flow of supplies can 
be maintained unless it Is possible at least for supply trucks to 
pass through Tunisia in the immediate future. 

After the conference with the Duce, General Cavallero asked the 
German General to emphasize In his report that the only way the 
difficult problem of transportation could be solved was by rout- 
ing traffic through Tunisia. He added that in his opinion the 
Duce 1 s Idea of taking Bizerte by force, If necessary, could not 
be realized. 

This very noteworthy contribution to the theme of collaboration 
has been transmitted to the Chief of Staff, Armed Forces High Com- 
mand and the Commanders in Chief of the three branches of the Arm- 
ed Forces by the Chief, Intelligence Division. It proves very con- 
clusively the critical situation in which the Axis Powers now find 
themselves in the Mediterranean area and in North Africa, and in 
which they will remain for a long time to come because of the fact 
that the supply routes were not kept open in time and with suffl - 
cient~forces b y heavy attacks of t he air forces at decisive points . 
The Naval Staff had repeatedly enphaslzed the vital significance 
of doing so . This viewpoint is .ot to be ta cen as a criticism of 



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4 Dec. 19^1 CONFIDENTIAL 

decisions which have been made, since these were no doubt strong- 
ly influenced by the campaign against Russia and by other impor- 
tant political considerations. 



Situation 4 Dec. 1941 

I. Var in Foreign Waters 

1. Enemy Situation ; 

North Atlantic : 

Destroyers ZULU and SIKH arrived in Gibraltar from 
England on 4 Dec. The Portuguese freighter JOANNA was escort- 
ed to Gibraltar by British naval forces. Details about con- 
struction of a U.S. naval base in Londonderry (northern Ireland) 
in News Analysis No. 42 of the series "Foreign Navies" of the 
Naval Staff, Intelligence Division. 

t 

According to a semi-official report, construction of a U.S. naval 
base on the arctic island of Jan Mayen is under consideration. 

South Atlantic : 

Five British merchantmen headed for the Pacific and 
nine for the Atlantic passed through the Panama Canal between 
2 Nov. and J50 Nov.. On 1 Dec. an auxiliary cruiser of 6,000 tons 
passed through to the east. U.S. cruiser MEMPHIS and destroyer 
DAVIS left Pernambuco on J> Dec. A convoy with troops, ammuni- 
tion and tanks is expected in Freetown on 10 Dec. 

Pacific Ocean : 

Target practice of coastal artillery at Manila. Mines 
are to be laid beginning in December and the naval bases of Ca- 
vite and Olongapo will be blacked out until further notice. 

According to press reports from Shanghai, an agreement has been 
reached for the cooperation of the British and American Far 
Eastern Fleets. The Americans are charged with protection of 
the area around the Philippines and between Manila and Hong Kong, 
under the Commanding Admiral of the U.S. Navy in Cavite. The 
light British forces stationed In Hong Kong, including the air 
units, will be under his command. The remaining area will be 
patrolled for the time being by the British naval units stationed 
in Singapore. In case heavy U.S. units are transferred to East 
Asia, this will become mainly their responsibility. Singapore 
will then become a joint Anglo-American base. The British Naval 
Commander is responsible for defending the area west of Singapore 
and the sea route to Australia and the Malayan waters. Dutch 
naval vessels remain in the defense service of the Dutch Colonies. 
The supreme command in case of joint Anglo-American operations was 
also discussed. 

Among the British units which arrived in Singapore are two battle- 
ships . 



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9862 



4 Dec. 1941 CONFIDENTIAL 

2. Own Situation : 

Further reports about the battle of the SIDNEY with the 
auxiliary cruiser CORMORAN mention that CORMORAN scored hits on 
SIDNEYS bridge with the first salvo, destroying the lines of 
communication and artillery control. The battle took place in 
the evening at dusk, and lasted two and a half hours. CORMORAJJ 
exploded after the crew had abandoned ship. The German survivors 
saw the burning SIDNEY disappear over the horizon. Nothing fur- 
ther was observed. 

Report about enemy situation by Radiograms I856, 1928 and 2343. 



II. Situation Vest Area 



1. Enemy Situation : 

Nothing to report. ( 

2. Own Situation : ' 

Atlantic Coast : 

Returning blockade runner BURGENLAND was apparently lo- 
cated in Spanish waters by our air reconnaissance. She is ex- 
pected on 5 Dec. A Mark XVI mine has been swept west of Oleron 
along convoy route "Rosa". 

Channel Coast : 

Departure of ship "10" postponed for 24 hours. On a 
detour of route "Rosa", which is mined near Fecamp, 18 or 19 
mines were also detected. The new detour is evidently free of 
mines. 

The 4th PT Flotilla with five vessels and the 2nd PT Flotilla 
with two vessels laid mines along convoy routes in the evening. 

Eight enemy air raids were made in November on forces of the ( 

Commanding Admiral, Defenses, West during which one minesweeper 
was sunk. Loss of personnel : 6 dead, 1J wounded. Five enemy 
planes were shot down. 



III . North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Brisk air activity observed. Location reports of our 
PT boats. According to radio intelligence the Convoy Control 



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9862 



> 



4 Dec. 194l CONFIDENTIAL 

Station at Reykjavik reported departure of convoy P 18, of which 
8 units are meant for Edinburgh and 23 for Hull; it confirms the 
Convoy Control Stations at Aberdeen and Edinburgh as to the sink- 
ing of the units NG, MK, and MS and asked when tankers "RU" and 
"RO" will leave. Convoy Control Station Londonderry was notified 
that convoy P 4 left Reykjavik at midnight with 56 freighters. 
(See Radio Intelligence Report 1225.) 

Own Situation : 

Mine-exploding vessel "53" (ship "10") is proceeding 
in the area of the Commanding Admiral, Defenses, North to Flush- 
ing according to plan with the 2nd Torpedo Boat Flotilla and the 
4th Minesweeper Flotilla. Otherwise nothing to report. 

2. Norway t 

Enemy Situation ; 

A submarine has been reported south of Kvaloe and 
another one north of Hammerfest. The submarine which was at- 
tacked by submarine chasers on 3 Dec. escaped after dark. 

Own Situation ; 

For preliminary report by Commander, 12th Submarine 
Chaser Flotilla about submarine pursuit and loss of submarine 
chaser UJ "1708" see Radiogram 2140. Search for survivors of 
UJ "1708" unsuccessful. TANGA and 8th PT Boat Flotilla with 
the LUEDERITZ arrived in Trondheim. Admiral, Arctic Ocean ar- 
rived in Kirkenes. He will proceed to Rovaniemi and Kemi for 
conferences with 5th Air Fleet and Army High Command, Norway on 

5 Dec. The Norwegian steamer VESTRI (499 BRT) was set afire 
during an enemy air raid off Tungenes and was later beached. 

Regarding convoy traffic the following directive has been is- 
sued by the Naval Staff: 

1. Whenever the situation permits, fast ships equipped with 
anti-aircraft guns are to sail independently. 

2. Since delays resulting from the transshipment regulations 
of the Transportation Ministry can hardly be remedied, it is 
especially important that all other causes for delay be avoid- 
ed. 

3. Possible greater risk for vessels sailing independently 
must be reckoned with. See Radiogram 1545 and compare War 
Diary 2 Dec. 

The allocation of three additional submarines requested by the 
Commanding Admiral, Norway is rejected. The three submarines 
which he has already, U "134", U "454", and U "131" are replace- 
ments for the three submarines U "567", U "578", and U "757", 
which will not be ready for action for 3ome time, and for U "132", 
which was transferred by order of the Commanding Admiral, Subma- 
rines. The Naval Staff has no objections to the proposal of the 



-3I- 9862 



4 Dec. 19*11 CONFIDENTIAL 



Commanding Admiral, Norway to order one of the three U-boats to 
temporary duty off Bear Island. 



IV. Skagerrak, Baltic Sea, Baltic Sea Entrances 

1. Enemy Situation : 

Besides the STALIN and a steamer of 700 BRT, a medium 
sized transport and a PT boat were sunk in the Juminda mine field. 
Od ens holm raised two white flags after artillery bombardment. The 
"White Sea Canal and the Vyg Lake are frozen over. 

2. Own Situation : 

There are still about 800 men aboard the STALIN, accord- 
ing to the Navy Liaison Officer to the Armed Forces High Command, 
Part of the original 6,000 men carried aboard was removed by Rus- 
sian destroyers. 

Since numerous explosions were observed on Seiskari, the evacua- 
tion of the Islands In the inner part of the Gulf of Finland may 
be assumed. Occupation of Odensholm by naval shock troop is 
planned for 5 Dec. 

Railroad transportation between Reval and Helsinki has been dis- 
continued. 

The German steamer ERICH FAULBAUM sank after a detonation off 
Warnemuende . 



V. Merchant Shipping : 

The Transportation Ministry plans to use some Belgian and Dutch 
steamers, especially steam trawlers, for service along the west 
coast of Norway. These ships will sail under Belgian or Dutch 
flags and will be manned exclusively by Belgian or Dutch person- 
nel. The Transportation Ministry asks whether there are any ob- 
jections to this on the part of the Naval Staff and what measures 
the Naval Staff considers necessary to prevent possible flight of 
these ships to Allied ports. 



VI. Submarine Warfare 

1. Enemy Situation : 

At noon a British plane met a convoy northwest of Rockall 
Bank. A torpedo boat flying the Norwegian flag was reported south- 
east of Rockall Bank. According to a British Admiralty report, a 
British steamer of 5,369 BRT in convoy northwest of Azores was tor- 
pedoed and exploded on 29 Nov.. The British steamer CLAN MACBEAM 



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9862 



4 Dec. 1941 



CONFIDENTIAL 



(5,000 BRT) reported sighting a torpedo on 3 Dec. in GF 6110. 

2. Ovn Situation ; 

A submarine reported sinking an ore steamer. Another 
submarine reported sinking the steamer FJORD (4,032 BRT), sur- 
vivors of which were landed at Gibraltar on 3 Dec. 

Commanding Admiral, Submarines received orders from the Naval 
Staff on 2 Dec. to send four more submarines to eastern Medi- 
terranean area Immediately at the expense of a temporary weak- 
ening of the position west of Gibraltar. 

With reference to employing submarines to prevent Russian ships 
from leaving the Turkish Straits (see War Diary 29 Nov., Black 
Sea, Own Situation), Commander, Submarines at the German Naval 
Command, Italy reports that after return of submarines U "331" 
and U "559", the eastern Mediterranean has only five submarines. 
Reinforcement by the four submarines coming from the western 
Mediterranean (see foregoing directive to the Commanding Admiral, 
Submarines) cannot be expected before 9 Dec. Naval High Command, 
Italy considers it urgently necessary to concentrate- all available 
submarines in this area in view of the present situation in North 
Africa. Naval High Command, Italy recommends sending the subma- 
rine originally scheduled for keeping Russian ships in the Turk- 
ish Straits for duty along the North African coast at least until 
the four U-boats arrive from the west. 

The Naval Staff rejects this request since the submarine was 
given the assignment by the Fuehrer personally. 

Submarines U "97" and U "371" have left Salamis. 

t 

Further report on the situation In War Diary, Part B, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 
Nothing to report. 

2. Mediterranean Theater : 

Use of German air forces In fighting in Libya, 

3. Eastern Front : 
Nothing to report. 



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9862 



4 Dec. 19^1 CONFIDENTIAL 

VIII. Warfare In the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean ; 

The following ships, besides the vessels of Group H, 
are in Gibraltar: 47 steamers, 1 tanker, 2 passenger liners and 

5 auxiliary cruisers. Day and night patrol of the Strait of 
Gibraltar by destroyers and gunboats continues to be strong. The 
night patrol now includes Moroccan territorial waters. According 
to a Spanish agent, the transport RANGITATA, which left on 1 Dec. 
ostensibly for Libya, has 2,000 to 3,000 infantry troops, air 
force personnel and marines aboard. 

Central and Eastern Mediterranean: 

Three British ships of an undetermined type shelled 
the coast west of Tobruk shortly after midnight and afterwards 
moved west. According to radio monitoring, planes left at 0530 
and 0830 to assist vessels under attack presumably off the Mar- 
marican coast. Radio communication between the British Admiral- 
ty and the Mediterranean Fleet as well as between Malta, Alexan- 
dria and some submarines was extremely active. 

According to reports 'received from Italian agents on 3 Dec, two 
damaged vessels put in at Alexandria in the last few days. One 
seriously damaged battleship is supposed to go to the United 
States via the Red Sea for repairs. Two destroyers arrived on 2 
Dec. with many survivors of a cruiser which is said to have been 
sunk by a mine. However, the Italian Navy believes an Italian 
aerial torpedo was responsible for the sinking. According to a 
report from the Italian Naval Attache at Bucharest, a convoy is 
waiting at Alexandria to take part in landing operations along 
the Gulf of Sidra. 

The Australian destroyer PARAMATTA was torpedoed off Tobruk dur- 
ing the night of 27 Nov., according to a deciphered radio message. 
For Life Magazine coverage of bomber attacks on the ILLUSTRIOUS on 
10 Jan. 1941 see News Analysis No. 42, section "Foreign Navies", 
of the Naval Staff, Intelligence Division. 

2. Situation Italy : 

Five German PT boats arrived in Augusta on 3 Dec. 
Twelve Italian submarines are in waiting position in the Medi- 
terranean and five in the Atlantic. 211 men are missing from 
the tanker MONTEVANI and the destroyer DA M0ST0. 

3. Transport of Supplies to North Africa : 

In transporting three landing craft from Tripoli to 
Benghazi, one sank because of heavy seas on 3 Dec. Other traf- 
fic normal . 

4. Area Naval Group South: 



■34- 9862 



4 Dec. 1941 CONFIDENTIAL 

Aegean Sea ; 

Auxiliary naval vessel BARLETTA arrived at Piraeus 
after laying mines. See War Diary, Part B, Vol. IV for report 
from Naval Shore Command, Crete about torpedoing of the sal- 
vage steamer HERKULES at Candia through a single net barrage, 
and about proposals of Net Barrage Unit to Group Command South 
for laying a four-fold barrage. 

Black Sea ; 

Enemy Situation ; 

According to an Italian report, there are now 13 Rus- 
sian vessels at Istanbul, including three recent arrivals. Air 
reconnaissance over Sevastopol reveals nothing new. 

Own Situation ; 

At Burgas two Siebel ferries burned out during the night 
of 2 Dec. Cause of fires unknown. The DELFTNUL did not leave 
because of damage to torpedo tube. Cause of loss of steamers 
CAVARNA and CORDELIA not yet determined. 



IX. Army Situation 

1. Russian Front ; 
Southern Army Group ; 

Little action in the Crimea because of bad weather. 

At the 1st Panzer Army sector the enemy continued strong attacks 
along the entire front of the III Panzer Corps . Attacks on the 
16th Infantry Division, the 4th Mountain Division on the left 
flank of the Army, as well as a night attack on Italian mechan- 
ized divisions were repulsed. Only sporadic enemy attacks at 
the 17th and 6th Army sectors. 

Central Army Group ; 

2nd Army and 2nd Panzer Army movements are continuing 
with success. Little fighting in sectors of 4th and 9th Army 
southwest of Moscow. Repeated strong enemy attacks were repulsed 
west and northwest of Moscow. 

1 

Northern Army Group ; 

Enemy attacks at Tikhvin, and attempts to break through 
along the Leningrad front were repulsed. 

2. Finnish and Norwegian Front ; 

Attack on Medver'.iya Gora by Karelian Army is continu- 



.,£- 9862 



j] 



4 Dec. 19*U CONFIDENTIAL 

ing successfully. 

3. North Africa : 

Enemy reconnaissance with strong forces from the area 
around Bir el Gobi in direction El Adem. Armored Group expects 
enemy to attack by 5 Dec. 

Own losses from 18 Nov. to 4 Dec: 

16 commanding officers and a corresponding number of offi- 
cers. No exact figures available. 
3,800 non-commissioned officers and men. 

Materiel : 

22 tanks "II* 1 

95 tanks "III" 

25 tanks "IV" 

10 heavy armored scout cars 

15 light armored scout cars. 



»***♦***#********♦******# 






-36- 



986 2 



CONFIDENTIAL 

5 Dec. 1941 

Items of Political Importance 

Great Britain ; 

The debate in the House of Commons regarding extension of uni- 
versal military service led to passing the government proposal 
that all male and female workers he mobilized with 321 votes 
to 10. An amendment to nationalize industry (railroads, mines 
and munitions factories), sponsored by the Labor Party, was re- 
jected by a vote of 336 to 40. The shortage of coal necessi- 
tates a further reduction of railroad traffic, which has already 
been reduced to 75$ of normal . 

Finland: 

On 4 Dec. the government gave a negative reply to the British 
ultimatum. 

U.S.S.R. : 

A pact has been signed by Stalin and the head of the Polish 
Government in Exile providing that Poland and Russia, together 
with the other Allies and with help from the United States, 
will fight the war to a successful conclusion. For further de- 
tails see Political Review No. 286, Paragraph 4. 

U.S.A. : 

According to Reuter, the Japanese answer to the U.S. request for 
an explanation of Japanese troop reinforcements in Indo-China 
is to be handed to U.S. officials in Washington on 5 Dec. 

Domei declares that the principles contained in the U.S. note 
could not form a basis for negotiations between the U.S. and 
Japan. With regard to rumors about the possibility of a break 
in U.S. -Japanese relations in the near future, Japanese Govern - 
ment sources declare that even an unfavorable conclusion of the • 
talks in Washington would not necessarily lead directly to out - 
right war in the Pacific . 

The isolationist paper Chicago Tribune published a supposedly 
very confidential report of Roosevelt's about preparation of a 
strong invasion army numbering five million men for use in 
Europe in July 1943. 

The installation of American food and ammunition depots, flying 
schools, and repair shops in Egypt, Iraq and Iran as well as 
inauguration of daily plane service between Washington and Cairo 
are given as proof that Roosevelt expects to stay in Africa for 
a long time and that he expects the decisive battle of this war 
to be in the Atlantic. 

According to newspaper repqrts, U.S. shipments to Russia are 
supposed to have remained far below schedule during the last 



-37" 9862 



5 Dec. 1941 CONFIDENTIAL 

two months, due partly to transportation difficulties and partly 
to the hesitation of the British and American Armed Forces to 
release war materiel. 

Thailand : 

Occupation of Thailand by Japanese troops is imminent, accord- . 
ing to foreign press reports. 

Turkey ; 

Comments in the Turkish press about the German reverses at Rostov 
are in part very unfriendly. 



Situation 5 Dec. 1941 

I. War in Foreign Waters 

1. Enemy Situation ; 

Special Items ; 

For a synopsis of enemy reports gathered from radio 
monitoring and radio decoding by the Naval Staff, Chief of Naval 
Communications Divisions, Intelligence Branch up to 30 Nov. 1941, 
see Radio Intelligence Reports (B-Berichte) No. 48/41. 

North Atlantic ; 

According to a Spanish report, the transport RANGITATA, 
which was reported on 4 Dec. as loaded with troops for Libya, 
left on 5 Dec. with three destroyers on a westerly course . Prob- 
ably camouflage course! 

According to an Italian report, both American and British forces 
are patrolling off the Azores. Two battleships and several de- 
stroyers are said to be on duty there. 

According to a review by the U.S. Navy Department, two battle- ( 

ships, one carrier, fourteen destroyers and ten submarines were 
commissioned during 1941 up to 1 Dec. 

South Atlantic ; 

The British tanker WOLFE sent a merchant raider dis- 
tress signal off the Lesser Antilles on 15 Nov. . This message 
was cancelled later and transmitted to radio station Annapolis 
by U.S. radio station San Juan. 

Indian Ocean ; 

« 

According to a report from the Japanese naval attache 
at Bangkok, the following British ships were lying in Trincomalee 
harbor on 20 Nov.: The battleshiDs PRINCE OF WALES, REPULSE, and 



-38- 



9862 



5 Dec. 19^1 CONFIDENTIAL 

REVENGE; the carriers EAGLE and HERMES; 9 cruisers and 6 de- 
stroyers. This force left on 25 Nov. and arrived in Singapore 
on 2 Dec. with the exception of one carrier and several cruisers 
which apparently made for another port. 

Pacific Ocean ; 

According to a deciphered radio directive from the U.S. 
station at Cavite, American merchantmen in the Pacific are again 
receiving definite sailing orders and directions on showing 
lights. 



2. Own Situation: 
1917. 



For enemy situation reports see Radiograms 0720, 1753, 



II. Situation West Area 

1. Enemy Situation t 

Air reconnaissance sighted ten steamers lying to off 
Plymouth, and a destroyer on southwest course east of Falmouth. 

2. Own Situation : 
Atlantic Coast : 

Three ground mines were removed off Brest. 

Directive to Group West: Commanding Admiral, Submarines reports 
that the supply ship BENNO, a tanker, will depart in a manner 
similar to the PY/PHON. The BENNO, intended for transporting fuel 
and other supplies for blockade -runners to Japan, will be ready 
for departure at St. Nazaire after 12 Dec. 

Order for departure of BENNO according to directive of Naval Staff, 
Operations Division (l/Skl. Ik 2077/^1 op Gkdos. Chefs.) in War 
Diary, Part C, Vol. IX. 

Regarding allocation of light naval forces (cf. War Diary 30 Nov.) 
the Commanding Admiral, Submarines and Group West have been re- 
quested to make available the 2nd Torpedo Boat Flotilla beginning 
10 Jan. and the four destroyers beginning 18 Jan. . Contrary to 
this directive, Group North requested that the 2nd Torpedo Boat 
Flotilla be given a rest period and that newly commissioned de- 
stroyers and torpedo boats be employed to reinforce the defense 
forces in the Skagerrak. This request is denied. Regarding the 
length of time which the torpedo boats must spend in dry dock, 
the decision has been left to Group West in accord with Fleet Com- 
mand and Commander, Torpedo Boats. 

Channel Coast : 

Departure of ship "10" postponed another 2k hours. 



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9862 



5 Dec. 19^1 CONFIDENTIAL 

Minelaying by the 2nd and 4th PT Flotillas was carried out ac- 
cording to plan. Destroyers were unable to prevent successful 
attacks on convoys because of the bright moonlight. For brief 
reports from the two flotillas see Radiograms 1515 and 2010. 
Enemy air raids in the Channel area during the day. A harbor 
defense vessel was damaged off Boulogne during these raids with 
a few casualties among personnel. Two harbor defense boats sus- 
tained light damage off Le Havre and one attacker was shot down 
by a naval battery. A few casualties among personnel from at- 
tacks on a group of the 38th Minesweeper Flotilla and motor fish- 
ing vessel of the training unit. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation : 

Little air activity before noon, but very lively air 
activity in the afternoon over the entire North Sea region. A 
plane sent an SOS northwest of Stadland. 

Own Situation : 

Steamers KAI and ARIEL in an eastbound convoy ran 
aground off Schiermonnikoog. The ARIEL was able to get free. 
Salvage of the KAI has started. A few casualties among the 
crew of a fishing vessel. 

2. Norway : 

Enemy Situation : 

According to air reconnaissance, the regular patrols 
are operating off Kola Bay and in the western sea lanes, other- 
wise there i& very little ship traffic. According to radio 
monitoring, submarines are suspected off Kvaloe and Nordkyn. A 
submarine was sighted off North Cape. 

Radio monitoring by the Air Force daily intercepted radio-tele- 
phone conversations in the Hammerfest region between British and 
Russian submarines and stations on land in English, Russian and 
Norwegian. It was learned that three British submarines off 
Hammerfest were relieved on 3 Dec. and that Russian submarines 
were probably lying off Honningsvaag. 

Own Situation : 

Steps have been taken to make use of the radio moni- 
toring of the Air Force and to make available radio equipment 
and Russian interpreters. It was learned from the conversation 
between two enemy submarines on 4 Dec. that the British subma- 
rine HENRY was so heavily damaged by one of our subchasers that 
she had to be abandoned and the crew was transferred to the Rus- 






-40- 



9862 



5 Dec. 194l CONFIDENTIAL 

sian submarine SUGAR. It Is gratifying to kr.ow that the attack 
on the submarine was successful, even though the subchaser UJ 
"1708" was sunk. (See War Diary 3 Dec. 1941.) The Norwegian 
steamer ISLAND was torpedoed by an enemy submarine off Mehavn. 
The crew was rescued. 

In view of the threat of enemy submarines along the inter-island 
route off the Arctic coast, the Commanding Admiral, Norway rec- 
ommends diversion of destroyers and TANGA off this route. The 
Commanding Admiral, Norway points out the possibility that ap- 
pearance of enemy forces off the Arctic coast is connected with 
probable arrival of convoy PQ 5 in the Arctic Ocean between 4 
Dec. and 8 Dec. headed for Murmansk, See Radiogram 1645. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation ; 
1 
According to radio monitoring, transport MOLOTOV 
radioed Hogland for help the morning of 3 Dec. According to 
further intercepted news, traffic on Lake Ladoga virtually came 
to a standstill on 3 Dec. as a result of the fuel shortage. It 
is planned to free several icebound ships by blasting. A chan- 
nel free of ice approximately 2 km. wide in the Volkhov estuary 
was reported on 5 Dec. Six ships with steam up were lying in 
the channel. The channel between Kronstadt and Leningrad was 
frozen over. According to a report by the Commander in Chief, 
Air, Operations Staff to 1st Air Force, the Liaison Officer of 
Northern Army Group reports that the battleship MARAT shells our 
radio intercept points and battery daily with eight to twelve 
salvos of 30.5 cm caliber from her two triple turrets remaining 
in action. According to Army opinion, the MARAT, which is being 
painted white at present, can be put completely out of action 
only by heavy or very heavy bombs. 

Interrogation of the Commander of the Russian Transport Fleet, 
who was captured aboard the STALIN, brought out the following 
information: The STALIN left Kronstadt on 24 Nov. preceded by 
three minesweepers and accompanied by two destroyers. The STALIN 
had waited in Kronstadt for 13 days until a way had been cleared 
north of Juminda mine barrage, and then arrived in Hangoe on 27 
Nov.. Evacuation of Hangoe has been under way since 25 Nov.. 
According to the prisoner's statement, morale of the Navy is good, 
but that of the Army bad. North shipyard in Leningrad has been 
knocked out by German shelling; other shipyards were damaged but 
are still working. OKTYABRSKAYA. REVOLUTSIYA and MAXIM GORKI are 
said to be ready for action again, but MARAT is out of commission. 
All ships are supposed to be blown up rather than be captured by 
the enemy. The transport fleet for evacuation of Hangoe and 
Odensholm consists of STALIN, MOLOTOV (9,000 tons each), OTTO 
SCHMIDT, LEVANDOVSKI, STARAYA PETILETKA (8,000 tons each), AXEL 
KARL (German prize of 4,000,ton^ and six smaller steamers. There 
are also five icebreakers, two heavy, two medium and one light. 



9862 



5 Dec. 194l CONFIDENTIAL 

Transport fleet was used for reinforcements in the Gulf of Finland 
and also evacuated Bjoerkoe (see Radiogram 08ll). 

2. Ovn Situation ; 

Odensholm was occupied at 1100 "by Marine shock troops. 
According to a report from Commanding Admiral, Baltic Countries, 
about 7,050 men were taken aboard the STALIN at Hangoe. The ship 
received two mine hits and one artillery hit, whereby about 4,000 
men are said to have been killed. After the first mine hit, 500 
men were transferred to a destroyer, among them the Commanding 
Officer of Hangoe, commissars and the mine pilot. Present 
weather conditions make further investigation impossible. 

The Great Belt has been closed temporarily because of suspected 
danger from aerial mines. The 4th Transport Squadron Oslo-Vasa, 
with a complement of 1,775 men aboard, will leave Horten on 6 Dec. 
with two steamers. 

The request of the Finnish Naval Command for Russian prisoners 
from the STALIN for the purpose of questioning them about the lo- 
cation of land and sea mines and for use in minesweeping was en- 
dorsed by the Naval Staff and transmitted to the Armed Forces 
High Command. One condition for granting this request is that 
our own Naval Staff is informed of the testimony and the use to 
which it Is put. Corresponding message to Group North by order 
of Commanding Admiral, Baltic Countries, see Radiogram l8l8. 

3. Special Items ; 

a. The assignments which were given the Navy by the 
Fuehrer for the war in the Baltic against Soviet Russia have been 
carried out in spite of very strong enemy superiority and with 
limited forces, which were partly hardly fit for action. The en- 
emy was put on the defensive from the very beginning of the cam- 
paign. 

These successes, the like of which has never occurred in the 
history of the war, were achieved because the commanding offi- 
cers in charge of operations and their staffs were capable of 
making bold decisions and the troops were constantly resolved 
and ready to give all they had. The Commander in Chief, Navy 
commends all admirals, commanding officers, officers and men of 
the armed forces engaged In the war in the Baltic Sea for their 
willingness to give their utmost at all times. 

For copy of this directive of the Naval Staff, Operations Di- 
vision (1 Ski. 1 Abt. 52987 g/4l), in which unit and personal 
citations are given, see War Diary, file "Barbarossa". 

b. From a dispatch to Field Marshal Mannerheim from 
the Chief of Staff, Armed Forces High Coriiiand on 21 Nov. 1941; 

The Army High Command, Norway will be transferred n Ic to Oslo 
in the beginning of January. A new Army High Conmu i will be 
created for central and northern Finland, with Gene al Dietl in 
command. The first task for the new Army High Command is the 



_U?- 9 862 



♦ 



5 Dec. 19^1 CONFIDENTIAL 

attack on Kandalaksha, which is planned for March. Plans for 
this operation call for bringing up tvo mountain divisions with 
special equipment. The Finns are requested to make available 
two ski brigades for the attack. The command of the southern 
group for encirclement, to which a German mountain division will 
be assigned, is to be given a Finnish General, possibly the Com- 
manding General of the III Army Corps . German air units are ex- 
pected to participate. The clearing of Hangoe and Odensholm has 
simplified transportation difficulties. 



V. Merchant Shipping ; 

Brief Report No. 53 in the report series of the Naval Staff, In- 
telligence Division under the heading "Foreign Merchant Shipping" 
includes the following: 

a. A list of British, Allied and neutral ships which were 
lying in French harbors at the time the armistice with France 
was concluded; the British justify the seizure of French ships 
by saying that we have detained the above mentioned vessels. 

b. A survey of the activities of Japanese merchantmen 
during the first half of 19^1. 

c. Other news. 



VI. Submarine Warfare 

1. Enemy Situation ; 

Lively air activity from Gibraltar toward the west. 
One submarine was reported. According to an unconfirmed Italian 
report, Britain has lost eight submarines during October and has 
asked the U.S. for the use of eleven submarines. Two U.S. sub- 
marines are said to be stationed in the Atlantic. 

2. . Own Situation ; 

According to the Commanding Admiral, Submarines, Italy, 
submarine U "97" ran aground off Phleva after leaving Salamis. 
Salvage operations have been started. (See Radiogram 0930.) 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

Enemy air activity over Channel coast and Dutch coast. 
At dusk seven of our planes attacked ship targets. No reports 



*3 9 ^2 



5 Dec. 19*H CONFIDENTIAL 

of success. According to a report from 5th Air Force, catapult 
ship FRIESENLAND was transferred to Tromsoe to take on a squad- 
ron of reconnaissance seaplanes BV 138. 

2. Mediterranean Theater ; 

For results of air reconnaissance see Mediterranean 
Situation. It Is sure that 13 British planes were shot down by- 
Italian pursuit planes on 4 Dec. The Italians were escorting 
our air transports. One of our planes is missing. Weather con- 
ditions made air support of ground fighting in North Africa Im- 
possible. The X Air Corps reports that while attacking a British 
cruiser with torpedoes, the vessel shot projectiles which explod- 
ed into a great number of pieces over an area of 100 sq. meters 
when they fell. 

3. Eastern Front ; 

For results of air reconnaissance see Situation Black 
Sea and Baltic Sea. Otherwise nothing to report. 



VIII. Warfare in the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean ; 

Radio decoding of the report from British Naval At- 
tache in Madrid to the British Intelligence Service regarding 
torpedoing of Spanish steamer CASTILLO 0R0PESA off Melilla on 
11 Nov. contains the remark that the Spanish director of ship- 
ping is of the opinion that an Axis submarine is responsible 
for the torpedoing. (See Radio. Intelligence Report 1655.) 
Situation In Gibraltar remains almost unchanged. 

Central and Eastern Mediterranean ; 

Only light naval forces were sighted by air reconnait 
sance off the Marmarica coast. For details see Radiogram 2000. 
According to radio monitoring, a British convoy or vessel was 
under attack off the Marmarica coast at 0530, 1000 and 1005. 

2. Special Items ; 

In order to strengthen our position in the Mediter- 
ranean and to create a concentration of Axis fighting power in 
the central Mediterranean , the Fuehrer, in accord with the Puce, 
has ordered the following: 

Air Force units no longer essential in the East up to one air corps 
in strength are to be transferred to the areas of southern Italy 
and North Africa, together with the necessary anti-aircraft defense 
units. 






.44. '"" 



5 Dec. 1941 CONFIDENTIAL 

Besides having an immediate effect on the warfare in the Mediter- 
ranean and in North Africa, this action should have a fundamental 
influence on the entire, further development in the Mediterranean 
area. 

The Fuehrer entrusted the command of all forces being concentrated 
for this purpose to Field Marshal Kesselring and designated him 
Commanding General, Armed Forces, South. 

The German naval forces on duty in the central Mediterranean re- 
ma in~lIn^el r ThT~command — of the Commander in Chief, Navy. 

The Commanding General, Armed Forces, South is authorized to is- 
sue directives to the German Admiral at the Italian Admiralty 
and if necessary to Naval Group South (for the eastern Mediter- 
ranean) in order to execute the tasks assigned to him . Combat or- 
ders will be issued by the naval offices in conformity with those 
given by the Commanding General, Armed Forces, South. Any reauest 
by the Commanding General, Armed Forces, South for joint naval 
action of the Axis forces is to be submitted only to the German 
Admiral at the Italian Admiralty. 

Copy of Directive 38 of Fuehrer and Supreme Commander, Armed Forces 
giving the above orders and outlining the duties and command rela- 
tionships of the new Commanding General is in War Diary, Part C, 
Vol. XIV (l/Skl. I op. 2081/41 Gkdos. Chefs.). 

]5. Situation Italy ; 

An enemy submarine sank the steamer ERIDANO on 4 Dec. 
north of Cephalonla. An enemy air raid on the town of Villa San 
Giovanni (opposite Messina) caused heavy damage to railroads and 
light damage on the auxiliary vessel LAGOTANA. Two of the at- 
tacking planes were shot down by Italian pursuit planes. 

On 25 and 26 Nov. the Italian torpedo boat CASTORE contacted 
and pursued an enemy submarine which had been sighted and report- 
ed by a plane. The CASTORE is equipped with a German submarine 
detector (S-Geraet) with which it achieved excellent results . The 
enemy submarine was definitely destroyed by depth charges. Ital- 
ian planes could plainly 3ee the wreck of the submarine 68 meters 
under water. The detector was operated by specialists from the 
destroyer LODY. The commanding officer of the torpedo boat was 
trained in Gdynia. 

This victory clearly proves the value of the support the Axis 
partner obtains from the German Navy both in personnel and ma-- 
teriel . 

4. Transport of Supplies to North Africa ; 

The German General at the Headquarters of the Italian 
Armed Forces forwarded a very pertinent estimate of the situa- 
tion to the Armed Forces" High Command, Operations Staff, Nation- 
al Defense. Recommendations from the Italian High Command for 
Improvement of the situation were enclosed. He reported: 



-45- 

"-" 9862 



5 Dec. 19^1 CONFIDENTIAL 

"Combat fitness of German and Italian troops can be maintained 
only if fresh supplies and reinforcements of all types are forth- 
coming Immediately. As long as the British dominate the air and 
the sea in the central Mediterranean, only a small percentage of 
what is needed can be shipped. At present destroyers and subma- 
rine supply ships are helping out, but at best they can carry only 
15,000 ton3 per month of the 100,000 tons which are needed. Bad 
weather reduces even this figure by preventing destroyers from 
leaving port. Cruisers could raise the tonnage only slightly. 
During the last few weeks merchantmen were able to get through 
the blockade in only a few instances. They need a stronger escort 
by the Italian Navy, but the latter is obliged to use her fuel oil 
sparingly. More planes are also badly needed for escort and recon- 
naissance duty. Air transports must be used to the greatest extent 
possible, but they cannot replace ships. Libya will not be proper- 
ly supplied until we can again send freighters, independently or in 
convoys, to North Africa, especially to Benghazi and Tripoli. Mer- 
chantmen cannot cross the Mediterranean successfully during the ' 
present full moon. Unless the fighting in the Marmarica lets up, 
the Air Force will be unable to carry out reconnaissance and pro- 
tect shipping adequately. Sicily has particularly few planes at 
the moment because the airfields were cleared to make way for the 
II Air Corps. The Commanding General, Armed Forces, South has 
taken up the problem of convoy protection. A regular schedule of 
troop transportation cannot be resumed until the II Air Corps has 
created the proper conditions for regular convoy traffic by keep- 
ing Malta in check and can take over directly the air protection 
of these convoys. 

The Italian High Command makes the following recommendations for 
relieving the situation: 

a. Make greatest possible use of German transport planes. 

b. If the quantity of fuel oil cannot be increased, speed 
up the delivery of fuel oil which was promised. 

c. Get II Air Corps into action quickly." 

Copy of the above in War Diary, Part C, Vol. XIV in accordance 
with directive of Commander in Chief, Navy (Ob.d.M. 2071/41 
Gkdos. Chefs.). 

Convoy movements on 5 Dec. without incident. For details see 
naval transport situation, Radiogram 1420. 

5. Area Naval Group South : 

Aegean Sea : 

Nothing to report. 

Black Sea : 

Enemy Situation : 

Air reconnaissance reveals no significant changes at 
Sevastopol, Taman and Novorossisk. 



-46- 9862 



4 






5 Dec. 1941 CONFIDENTIAL 

According to a report from Army Group, the possibility exists 
that the Russians will try to land in the rear of the 1st Panzer 
Army, between Taganrog and Mariupol, by way of the Sea of Azov. 

Own Situation : 

For directive from Commander in Chief, Navy to Naval 
Group South to assist the Southern Army Group in the reconnais- 
sance of possible enemy action across the Sea of Azov see Radio- 
gram 1616. 

t 

Two new mines, presumably pearl mines, were removed during 
sweeping operations off Varna mole. On 4 Dec. the steamer CAR- 
PATI was frozen fast east of Ochakov North. Engineers are try- 
ing to free her. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

Supplies for the attack on Sevastopol are delayed by 
transportation difficulties. Enemy attacks on the motorized III 
Army Corps began again during the early morning. The 13th and 
14th Panzer Divisions repulsed very heavy attacks. The cold wave 
is breaking. 

At the 17th Army sector a surprise attack of the IV Army Corps 
with support of the Italian Psubio Division was successful in 
the direction of Lomovatka. The enemy retreated toward the 
southeast. At the 6th Army sector enemy patrols and holding 
attacks were repulsed. 

Central Army Group : 

Separate divisions of the 2nd Army gained some terrain 
toward the east. At the sector of the 2nd Panzer Army, tempera- 
tures as low as -35° C made fighting and use of weapons impossi- 
ble. Many cases of frostbite. Attacks on 17th, 3rd and 4th 
Panzer Divisions were repulsed. On the 4th Army sector the sit- 
uation of the southern flank of the forces encircling Moscow re- 
mained largely unchanged. Strong enemy attacks, some lasting 
all day, had to be repulsed at many positions southwest, west 
and northwest of Moscow. Between 16 Nov. and 3 Dec. Panzer Group 
4 took 21,860 prisoners in this sector and captured or destroyed 
449 tanks and 264 guns. 

The anticipated attack at the 9th Army sector east of Kalinin 
was carried out by strong enemy forces. The enemy succeeded 
in crossing the Volga at several places, but was thrown back 
by counterattacks. Strong enemy concentrations north of Kalinin 
were destroyed by our artillery. Enemy attacks west of Kalinin" 
were repulsed by the 162nd Infantry Division. 






-47- 9862 



5 Dec. 1941 CONFIDENTIAL 

Northern Army Group ; 

The strong enemy attacks east of Tikhvin are 3 till In 
progress. Attacks in the Volkhov sector vere repulsed. 

2. Finnish and Norvegian Front : 
No noteworthy changes. 

3. North Africa : 

1 % 

Reinforced enemy reconnaissance detachments tried to 
establish contact with the Pavia Division but did not attack. 
Air reconnaissance revealed that further reinforcements for the 
2nd South African Division are being brought up from western 
Egypt. 

The state of siege on the eastern front had to be abandoned after 
renewed enemy attacks from Tobruk . 

Parts of the 22nd Guard Brigade and the 4th Armored Brigade, 
which were stationad in the area around Bir el Gubi, were forced 
back in an attack by the Panzer Group. The Solium and Bardia 
fronts were held. Food supplies there are exhausted. Supplies 
by air and water are insufficient. 



♦*»♦******#**♦♦♦*♦*»#*♦♦♦ 



I 



-48- 



9862 



• 



♦ 



CONFIDENTIAL 

6 Dec. 1941 

Items of Political Importance 

Great Britain ; 

According to official report there have been no satisfactory 
answers to the British demands from the Finnish, Hungarian and 
Rumanian Governments. These governments will therefore be no- 
tified that a state of war exists between them and Britain. 

U.S.A .t 

The answer from the Japanese Government regarding occupation of 
Indo-China states that Chinese troops recently showed signs of 
activity at the northern border of French Indo-China. As a 
countermeasure it was necessary to reinforce Japanese troops to 
a certain degree, causing troop movements also in the southern 
part of the country. 

The report signed by Chief of Staff Marshall and Chief of Naval 
Operations Stark and published by the Chicago Tribune contains 
the following points : 

1. War aim of the U.S. is total defeat of Germany and her 
allies. 

2. There are important reasons for the U.S. to continue 
the war until final victory, even in case of total defeat of 
Britain and the Soviet Union. 

J>. Strategy of the U.S. must provide for giving all pos- 
sible aid for successful continuation of military operations. 
Finally, these operations will have to be strengthened by active 
U.S. participation in the war, Japan being kept in check at the 
same time. 

4. Since the U.S. and her allies will not be able to 
launch a military offensive against Germany in the near future, 
the economic blockade must be continued. In areas where Ger- 
man forces are located, air and sea offensives must be under- 
taken. It is particularly important that' any resistance move- 
ment in the areas occupied by Germany be supported. 

Secretary of War Stimson declared that publication of this re- 
port was the result of gross indiscretion and has done great 
harm to U.S. interests. 

Japan ; 

According to report from Japanese diplomatic circles, the con- 
ferences with the U.S. are taking a course unsatisfactory to 
Japan. The U.S. Government pbviously wants to gain time. Roo- 
sevelt's anyielding attitude was evidently strengthened by the 
Chinese Government's threat that China will anticipate an Ameri- 
can-Japanese rapprochement at China's expense by a corresponding 



-49- 



986 2 



6 Dec. 19^1 CONFIDENTIAL 

compromise of her ovn with Japan. Britain is watching very anx- 
iously the negative course these negotiations are taking. Future 
developments are unpredictable. The war of nerves is so real 
that nobody can tell whether an armed conflict will develop from 
or not. 

The change in the Japanese cabinet has no significance for for- 
eign policy, unless the appointment of a separate cabinet member 
for the Overseas Ministry, formerly administered by the Foreign 
Minister, is intended to lighten the work of the latter in view 
of the international situation. 

Thailand : 

According to diplomatic reports, the situation in Thailand seems 
to be rapidly approaching a crisis. Japanese troop movements 
from the north to southern Indo-China lead to the conclusion that 
the Japanese offensive against the Burma Road by way of Yunnan 
province has been abandoned and that an occupation of Thailand is 
planned. The pro- Japanese Prime Minister has also been named Com- 
mander in Chief of the Armed Forces. He is of the opinion that 
British promises of aid are worthless and therefore has definitely 
decided on collaboration with Japan. Besides, he is said to be 
convinced of the victory of the Axis Powers. 

According to report from Japanese- informed circles, the time for 
launchin g the offensive in the south is not dependent on the re- 
sult of Kurusu's mission , which is mainly a device to gain time. 
The Japanese expect little or no resistance from the Siamese Armed 
Forces. 



Special Items ; 

I. Participation of the United States in the War : 

The measures which the U.S. has taken for aiding Britain have 
been in gross disregard of neutrality. With the change of the 
Neutrality Law with respect to naval and commercial warfare, 
they have now reached a point where an open declaration of war 
cannot make any appreciable difference. If, in spite of these 
facts, the basic policy of avoiding any incidents involving the 
U.S. is to be followed, the war against merchant shipping no 
longer offers any prospects of success. If American ships are 
able to bring supplies to Britain, even though only as far as 
Iceland or some intermediate port, without running any risk of 
submarine attack, chances of a successful war against merchant 
shipping diminish in the same proportion in which American ton- 
nage replaces that of the enemy. The fact remains that the only 
course with some prospect of forcing Britain to make peace is at 
present an attack on her supply lines and destruction of tonnage 
in her service. Therefore the Naval Staff considers the present 
instructions no longer tenable under which the United States, 
which is in fact an active participant in the war, receives more 
considerate treatment than a country which is actually neutral. 



-50- 



9862 



♦ 



6 Dec. 1941 CONFIDENTIAL 

Taking these facts into consideration, the Naval Staff proposes 
new regulations for action against naval and merchant vessels 
within and outside of the blockade area. The Naval Staff re- 
news its demand for permission to wage war within the entire Pan- 
American Safety Zone and a directive is requested whereby enemy 
destination of absolute contraband will be considered proved if 
the goods are destined for a country which supplies the enemy 
contrary to its professed neutrality. 

For request to this effect from Naval Staff, Chief of Operations 
Branch. Deputy to Chief of Operations Division (l/Skl la 24608/41 
Okdos.) to the Armed Forces High Command, Operations Staff; the 
Armed Forces High Command, Operations Staff, National Defense; 
the Armed Forces High Command, Foreign Affairs Division and the 
Foreign Office, see War Diary, Part B, Vol. XVII. 

II. Concerning Readiness of the Destroyers ; 

Commander, Destroyers reports the following destroyers ready for 
duty: 

A. In the Northern Area: 

1. Destroyers Z "23", "24", "25", "26", "27", all under 
Commander, 8th Destroyer Flotilla. 

2. THEODOR RIEDEL, now in Bergen, will be available for 
home duty the end of December. 

B. In Germany and ready for action are: 

1. Beginning 10 Dec: JAKOBI 

2. Beginning 1 Jan.: 

a. RICHARD BEITZEN 

b. HEINEMANN 

C. HERMANN SCHOEMANN 

C. At the end of January the following will be ready for duty: 
A FRIEDRICH IHN, Z "28", Z "29". 

D. Z "30" will be ready for duty the second half of March. 

E. Schedule of ships in dry dock: 

1. STEINBRINK until 26 Jan. 

2. LODY until 16 Feb. 

3. ECKHOLDT until 15 Mar. 

4. OALSTER until 15 Apr. 

Naval Group West reports that transfer of destroyers BEITZEN, 
HEINEMANN, and SCHOEMANN to the West Area is planned for the be- 



-51- 

98 6 2 



6 Dec. 1941 CONFIDENTIAL 

ginning of January. However, Commander, Destroyers Is advised to 
be prepared that they might be sent for on short notice at an 
earlier date, since their use depends on the ice conditions in 
the Baltic and North Sea. 

The Naval Staff orders that destroyer Z "29" is to be transferred 
to the north in order to bring the number of destroyers there up 
to six. Upon the request of Naval Group West, four destroyers 
will be transferred west. The fifth destroyer will be at the dis- 
position of the Ship Gunnery School from 5 Jan. to 24 Jan. . For 
telegram to this effect as ordered by Naval Staff, Operations Di- 
vision (l/Skl I op 2076/41 Gkdos. Chefsache) see War Diary, Part 
C, Vol. IX. 

III. Fuel Oil Situation : 

A supplementary shipment of 25,000 to 50,000 tons of fuel oil to 
the Italian Navy Is necessary due to absence of shipments from 
Rumania in the months of November and December. The German Navy 
can expect 47,000 tons of fuel oil from home production during 
December. 

In January and February 1942 the German Navy also expects 47,000 
tons of f oel oil per month from home production. Shipments from 
Rumania are expected to total 40,000 tons per month for Germany 
and Italy together, 3,000 tons of which will be allocated to Na- 
val Group South. We may count on slowly increasing production 
and an increase in the shipments from Rumania beginning with 
March 1942. The maximum figure for Rumanian exports may be set 
at 85,000 tons per month. Of the monthly Estonian production 
of 3,500 tons, the first 3,000 tons are put at the disposal of 
the Finnish Navy each month. For comprehensive report on the 
fuel oil situation and directive to Naval Staff, Quartermaster 
Division regarding fuel oil shipments to Italy by Naval Staff. 
Operations Division, Fuel and Supply Section (l/Skl Ig 28346/41 
Gkdos.) see War Diary, Part C, Vol. IX. 

IV. On the basis of a telephone request, the Armed Forces High 
Command, Operations Staff, National Defense and the Fuehrer Head- 
quarters are notified for Captain von Puttkamer that the cranes 
of HIPPER and PR-INZ ETJGEN have. a load capacity of 12 tons, those 
of the armored cruisers and the small cruisers a capacity of 10 
tons. Also the cruising range of the PT boats in the Mediterranean 
was reported, with the annotation that the use over larger dis- 
tances of the five boats does not depend so much upon their cruis- 
ing range as upon their navigational inadequacy and upon the fact 
that they possess only one watch. According to the opinion of the 
Naval Staff, it is hardly possible to use PT boats over distances 
greater than 150 to 200 miles. (See Radiogram 2121.) 



Situation 6 Dec. 1941 
I. War in Foreign Waters 
1. Enemy Situation ! 



-52- 

9862 



6 Dec. 19^1 CONFIDENTIAL 

North Atlantic ; 

The auxiliary cruiser CIRCASSIA vas at sea in the area 
off Canada on 3 Dec. Aircraft carrier FURIOUS was presumably 
also at sea in the western Atlantic off the U.S.. ILLUSTRIOUS 
is probably located between Bermuda and the U.S.. INDOMITABLE 
was in Vest Indian waters on 4 Dec; she is obviously returning 
to port. 

South Atlantic ; 

Auxiliary cruiser ASTURIAS arrived at Montevideo on 5 
Dec. The press again mentions the assembly of another convoy. 
The convoys which have repeatedly been reported from La Plata 
were never confirmed. According to radio monitoring most of the 
ships which sail alone between the West Indies and the Cape of 
Good Hope avoid the area around Ascension Island and St. Helena, 
taking a route via 15 S 30 W and 31 S 10 W. The fast steamers 
EMPRESS OF AUSTRALIA, MAURETANIA and NIEUW AMSTERDAM were sight- 
ed in Capetown toward the end of October. They were loaded with 
troops. Capetown and Durban are crowded beyond capacity. The 
ships' lights are dimmed but the towns themselves are not blacked 
out. No mine fields are suspected outside of the harbors. 

2. Own Situation; 

1 ' ■ « ■ «■' »■■ ■■ » 

According to deciphered radio report from the British 
Admiralty on 2 Dec, cruiser DORSETSHIRE sighted an enemy steamer 
650 miles northeast of Tristan da Cunha. The enemy steamer was 
scuttled after DORSETSHIRE fired a warning shot. Boats loaded 
with fuel and supplies were lying alongside. Survivors were not 
taken aboard because of possible submarines in the vicinity. 
Later a plane sighted fifteen boats and one float. The action 
described was the sinking of the submarine supply ship PYTHON. 

According to newspaper reports, the Australian Government has 
asked for a legal opinion about the question whether the aux- 
iliary cruiser C0RM0RAN is to be treated as a pirate if she opened 
fire before hoisting her own ensign. 

This propaganda report cannot be said to have serious significance 

The rescued personnel from C0RM0RAN amounts to 318 men according 
to announcement by the Australian Navy. All hope of finding sur- 
vivors from SIDNEY has been abandoned. 

Report to Naval Attache in Tokyo concerning fate of KOTA NOPAN, 
SLLVAPLANA, ship "16" and ship "4l" by Radiogram 1212. Report 
about situation of the enemy by Radiograms I836 and 235 1 *. 



II. Situation West Area 
1. Enemy Situation ; 

According to a report of the British Admiralty on 30 



-53- 



9862 



6 Dec. 19*1 CONFIDENTIAL 

Nov., 2,840 BRT were sunk out of a convoy off Cromer. The report 
is incomplete. 

2. Ovn Situation : 

Atlantic Coast : 

Nothing to report. 

Channel Coast: 

— — — — ^— — — • 

The 2nd Minesweeper Flotilla had an engagement with 
several enemy PT boats at 0334 off Cape Gris Nez while patrolling 
the convoy lanes. One enemy PT boat was destroyed and another 
seriously damaged. No loss or damage to our own ships. A fuel 
depot at Carner was shot into flames during enemy air raids at noon. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Cruiser KENYA arrived in Rosyth, coming apparently from 
the polar area. DUKE OF YORK and TRINIDAD held exercises with 
airplanes on 5 Dec. in northern Scottish waters. RENOWN arrived 
at Scapa from the north. It is surmised that RAMILLIES and RESO- 
LUTION are at Scapa; RAMILLIES could also be on the northern 
route, however. RODNEY was still in the Reykjavik area on 4 Dec. 

Own Situation : 

Nothing to report. 

2. Norway : 

Enemy Situation : 

Radio telephone communication between the Norwegian 
land station and British and Russian submarines off Hammerfest 
was further observed. Valuable hints about submarine activities 
were intercepted. For details see Radiogram 1715. 

Own Situation : 

The operations staff of the Commanding Admiral, Norway 
was decommissioned on 5 Dec. after transfer of duties to Admiral, 
Arctic Ocean. Destroyers Z "23", Z "25" and Z "27" and TANGA ar- 
rived in Tromsoe. THE0D0R RIEDEL and submarine U "578" have start- 
ed the trip to return home from Bergen. The mines suspected in 
Mageroe Sound were confirmed. During an air raid on Petsamo in 
the night of 5 Dec, a steamer was slightly damaged with small 
loss of personnel. Two small vessels of the 54th Minesweeper Flo- 
tilla were sunk on 4 Dec. off Kristiansund North. 



-54- 9862 



6 Dec. 194l CONFIDENTIAL 

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

For result of the interrogation of prisoners from STALIN 
"by Commanding Admiral, Baltic Countries regarding Russian occupa- 
tion of Hangoe and other items, see Radiogram 1845 and War Diary 
5 Dec. - 

According to further testimony by prisoners, Hogland has been evac- 
uated. 

2. Ovn Situation ; 

For report about occupation of Odensholm on 5 Dec. by 
the 2nd Company of the Naval Shock Troop Detachment see Radiogram 
1215. About 800 prisoners were taken off STALIN on 5 Dec. An 
equal number is said to be still aboard. Twelve Russian Army of- 
ficers were turned over to the Finns for clearing land mines at 
Hangoe. The Commanding Admiral, Baltic Countries doubts the wis- 
dom of giving all the prisoners from STALIN to the Finns in view 
of the labor situation in the Estonian oil shale region. 



V. Submarine Warfare 

1. Enemy Situation : ' 

Lone cruisers on patrol in Iceland area and Denmark 
Strait. South of Cape St. Vincent, one of our submarines pro- 
ceeding south was unsuccessfully attacked by a plane. Radio 
monitoring intercepted news about further aerial bombing attacks 
on two submarines with location unknown and on one submarine in 
the eastern Mediterranean. Both attacks were unsuccessful. 

According to Reuter the British Admiralty announces the sinking 
of submarine U "501" by two corvettes. 37 m©n a*© said to have 
been taken prisoner and 10 drowned. According to press reports 
the British steamer EMPIRE ABILITY, formerly the German UHLENFELS 
(7,603 BRT), was sunk in the vicinity of the Canary Islands, and 
the British steamer ASHBY (4,868 BRT) was sunk off the Azores, 
both on 30 Nov. 

2. Own Situation : 

There are no reports from the submarines in the North 
Atlantic. Probable hits were scored on a tanker, a freighter 
and a destroyer in a submarine attack in the eastern Mediter- 
ranean on a convoy en route to Tobruk. The destroyer was ap- 
parently heavily damaged. 

Commanding Admiral, Submarines reports that there have been no 
reports from submarine U "206" (Lt. Opitz), since she left St. 
Nazaire on 29 Nov.. The submarine must be presumed lost, prob- 
ably due to a mine. Commanding Admiral, Submarines requests al 



-55- 



9862 



6 Dec. 1941 CONFIDENTIAL 

location of more minesweepers to Commanding Admiral, Defenses, 
Vest. (See Radiogram 1330.) 

The Naval Staff inforas Commanding Admiral, Submarines that there 
are about 800 tons of fuel available at "5ernardo" and rations 
for only about two to three vessels. Schedule for supplying sub- 
marines at "Bernardo" is as follows: U "575" during night of 11 
Dec, U "574" during night of 12 Dec, U "434" during night of 
13 Dec, and U "43" during night of 14 Dec. See Radiogram 2210. 

According to report from German Naval Command, Italy, it is plan- 
ned to take over command of submarines in the western Mediter- 
ranean at noon on 8 Dec. (See Radiogram 1930.) 

Further report on the situation in War Diary, Part B, Vol. IV. 

The Commanding Admiral, Submarines does not believe that many re- 
inforcements and supplies are going to the eastern Mediterranean 
through the Strait of Gibraltar. He thinks an attack on Algiers 
and Oran improbable. Therefore he is of the opinion that the 
center of submarine activity in the Mediterranean should be in 
the east, with ten ships constantly at sea. For the same reason, 
Commanding Admiral, Submarines thinks that fifteen submarines in 
the Gibraltar area simultaneously are too many, and he recommends 
constant operation of only six to eight submarines there, half of 
them east and the other half west of Gibraltar, thus using about 
thirty six submarines in the Mediterranean area. 

Since the Commanding Admiral, Submarines does not think the 
North Atlantic should be stripped of all submarines, he requests 
that the following be used in the North Atlantic: all large 
boats which become ready for action and which are not suited for 
operations in the Mediterranean and around Gibraltar; all medium- 
sized submarines which are not used in the eastern Mediterranean 
or in the Gibraltar area; and the submarines in use in the North- 
ern Area. 

So long as the extraordinary destruction of tankers during supply 
operations for submarines is not solved, Commanding Admiral, Sub- 
marines considers further employment of surface vessels for sup- 
plying submarines unwise. The first submarine tanker has been com- 
missioned. The Commanding Admiral, Submarines plans to use her 
with submarine packs in remote areas as soon as she is ready for 
operations. He asks for permission to use the area off Halifax 
and Bermuda for the first operation of this kind, which will be 
possible by about January. 

Naval Staff decides that, so long as the situation in the Medi- 
terranean is not fundamentally changed and the enemy is forced 
to use the route through the Mediterranean because of the neces- 
sity for speedy and sufficient assistance to the Libya offen- 
sive, neither the zones of operation nor the number of submarines 
being used should be changed. The problem is under constant 
study by the Naval Staff and new orders will be issued at the 
appropriate time. Transfer of submarines from the Northern Area 
must be refused in view of the constant enemy convoy traffic 
there. Permission to use the region off Halifax and Bermuda 
will be requested as soon as the political situation permits. 



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> 



9862 



6 Dec. 19^1 CONFIDENTIAL 

Central and Eastern Mediterranean : 

Convoy movements and light enemy forces were reported 
in several instances at sea off Marmarica. For details see 
Radiograms 0900 and 1930. Only limited traffic was observed in 
Palestinian harbors. 

2. Situation Italy : 

According to report from Benghazi, two units, probably 
a cruiser and a destroyer, torpedoed by torpedo planes between 
Tobruk and Marsa Matruh on 5 Dec. at about 2300. It was not de- 
termined with certainty whether they were sunk. According to a 
deciphered radio message from the British Admiralty of 2 Dec. 
two British cruisers and a destroyer were attacked off Tobruk at 
0200 on 1 Dec. without success. 

3. Transport of Supplies to North Africa : 

Movements according to plan and without interference. 
The three barges which were transferred from Tripoli to Benghazi 
(the fourth one was sunk - see War Diary 5 Dec.) were so batter- 
ed by the heavy seas that they will not be ready for service for 
some time. 

The German Admiral in Rome wrote to the Deputy Commander in Chief, 
Italian Navy and stated quite frankly that the conduct of the 
Italian Navy since the arrival of the two British cruisers at 
Malta and especially since the beginning of the battle in Marmarica 
shows that the repeated proposals and suggestions of the German 
Staff for improving the supply situation and improving conditions 
of naval warfare in the Mediterranean have been disregarded. In 
spite of the sacrifices made, it is apparent that the Italian ef- 
fort since the beginning of the Marmarica battle is no longer suf- 
ficient to meet the need. This does not mean. that necessarily 
the entire fleet must be committed, but rather that greater dar- 
ing should be shown in the execution of the various tasks. To be 
more specific, the following points demand consideration: 

a. Mining operations in the Strait of Sicily and off Ben- 
ghazi. 

b. Action by naval forces to destroy the cruisers at Malta. 

c. Action against enemy supply lines. 

d. Maintenance of our own supply transportation. 

e. The problem of using the Libyan harbors to their full 
capacity for unloading. 

For teletype copy of the letta/ see l/Skl 28382/41 Gkdos. in War 
Diary, Part C, Vol. XIII. 

On the basis of the report from the German General in Rome (see 
War Diary 4 Dec, Special Items) the Armed Forces High Command 
transmits the following to the Italian High Command through the 



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6 Dec. 19^1 CONFIDENTIAL 

German General, Rome after a conference at the Fuehrer's Headquar- 
ters : 

The Armed Forces High Command has ordered all measures in its 
power to be taken for the safe conduct of the traffic between 
Italy and North Africa. A gradual improvement in the situation 
can be expected, especially after 2nd Air Force goes into action 
and light naval forces are operating in increased numbers. Only 
when the predominance of Axis sea and air power in the central 
Mediterranean has been reestablished will it be possible to make 
renewed overtures to the French for the use of the harbor of Bi- 
zerte. A premature use of the harbor would lead to undesirable 
intervention in French North Africa on the part of the British. 
There are at present no adequate French forces for defense nor 
any possibility on the part of the Axis Powers to come to the aid 
of the French. The question of advance shipments of foodstuffs 
and goods exclusive of war materiel is at present under study by 
the German Armistice Commission in collaboration with the Italian 
Armistice Commission. At the present time there are, however, 
neither vehicles nor fuel for covering the distance from Bizerte 
to the front. 

The opinion of the Armed Forces High Command that the dominance 
of the Axis Powers in the Mediterranean can be reestablished is 
most noteworthy. The Naval Staff will be able to refer to this 
at the proper time, once the possibility of air action against 
enemy naval forces exists. 

4. Area Naval Group South : 

Aegean Sea ; 

Enemy Situation : 

The icebreaker NICOLIAN left the Dardanelles during the 
night of 29 Nov. 

Own Situation ; 

The auxiliary vessel BARLETTA has been sent to bring 
another shipment of mines from Salonika. 

The Russian icebreaker which was torpedoed off Castelrosso by 
Italian submarines is suspected of having shown Turkish colors. 
Therefore the Commanding Admiral, Aegean Sea has proposed that 
it be suggested to Ankara that Turkish vessels should sail in 
the waters in question only by day and the Turkish Government 
should take appropriate measures to prevent misuse of the Turkish 
flag. This proposal supported by Naval Group South must be re- 
jected by the Naval Staff since it is impossible to prescribe to 
the Turks when they may use their own territorial waters; besides, 
the attention of the Turks would only be drawn to our own plans 
by such suggestions regarding prevention of misuse of the flag. 

Black Sea ; 

Enemy Situation ; 

Nothing to report. 



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6 Dec. 19^1 CONFIDENTIAL 

Own Situation : 

DELFINUL departed. New mines were detected south of 
Grigoryevka. Otherwise nothing to report. 



VIII. Army Situation 

1. Russian Front : 

Southern Army Group : 

Landing attempts by three enemy PT boats at Eupatoria 
in the Crimea were repulsed. Unsuccessful enemy scouting forays 
south of Kerch with motor boats. 

Weak enemy attacks at the 1st Panzer Army sector were repulsed 
off the southern flank. In general the situation at the 17th 
and 6th Army sectors is unchanged. 

Central Army Group : 

Isolated enemy attacks on the armies of this group were 
repulsed. Some enemy penetrations were successfully mopped up. 

Northern Army Group : 

This army group also had to repulse isolated enemy at- 
tacks . Our own counterattack at Tikhvin with parts of the 18th 
Panzer Division gained some territory in the east. 

2. Finnish and Norwegian Front : 

All war materiel and all means of transportation on 
Hangoe were destroyed or sunk. 

Otherwise nothing to report. 

5. North Africa : 

By evening, the enemy apparently, has not yet realized 
that we have abandoned the siege of Tobruk from the east. The 
German Afrika Korps could not continue its attack until after- 
noon since the Gambara Corps was very slow in moving up. The area 
immediately northwest of Bir el Gubi was reached. 



************************* 



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♦ 



CONFIDENTIAL 
7 Dec. 19^1 

Items of Political Importance ; 

This evening it became known that Japanese Armed Forces have 
opened hostilities against the U.S.A. and Britain. The attacks 
on the U.S. bases in the Pacific and against Singapore were a 
complete surprise. At the same time as hostilities were opened, 
Kurusu and Nomura went to the White House to hand a note from 
the Japanese Government to Secretary of State Hull, stating that 
there is no use to continue the conferences. 

With this the hitherto impenetrable veil has fallen from Jap- 
anese policy. A clear and sober estimate of its own situation 
has caused a government unafraid of making decisions and tak- 
ing responsibilities to throw the sword onto the scales while 
there is still time. It acted without hesitation or scruple 
and before the future strength of the opponent would make the 
inevitable recourse to weapons an unsupportable risk. Roose- 
velt has lost his political game. The methods of provocation 
and procrastination with which he tried to control the law of 
action have been struck from his hands for good. Now he has the 
war which he always wanted, but at a time and under circumstances 
that were not included in his calculations. 

It remains to be seen what immediate repercussions this event 
will bring about. Undoubtedly few nations will stay out of 
this war in which all the great powers are now involved. The 
new order of things can therefore become a general one; this 
depends entirely on the success of the weapons, the ability of 
the various leaderships and the stamina of the peoples involved. 
Therefore the day of .7 Dec. 19^1 marks not only the beginning 
of a new chapter in the history of war, but also opens an unob- 
structed global and supra-continental view of the future world 
order. The extension of this struggle to the seven seas and the 
participation in it of a third great sea power will cause every 
last European to realize the importance of overseas communica- 
tions and sea power. It is that much more painful for the Naval 
Staff that the German Navy cannot be the one to deal the deci- 
sive blows whose historical significance is being felt already. 
For the Navy, the war with England began five years too soon in 
regard to materiel. For this reason the Navy is not even in a 
position to exploit decisively in the Atlantic and the Mediter- 
ranean the great advantage which the war in the Pacific brings. 



Situation 7 Dec. 19*U 
I. War in Foreign Waters 
1. Enemy Situation ; 
North Atlantic; 



According to a Spanish report from Algeciras, the 



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7 Dec. 19^1 CONFIDENTIAL 

RANGITATA is supposed to be carrying the relieved "Black Watch" 
regiment to England. This news again would indicate that she will 
leave Gibraltar in a westerly direction (cf. War Diary 5 Dec. and 
6 Dec. ) . 

Pacific ; 

Hostilities between the U.S.A., Britain, and Japan be- 
gan in the afternoon. For further details see Situation East 
Asia. 

2. Own Situation : 

Radio decoding deciphered a message from the radio 
station at Slangkop reporting that survivors of the German ship 
PYTHON which was sunk south of St. Helena are in fifteen life- 
boats, and that they are probably armed and accompanied by sub- 
marines. For this reason Allied vessels should steer clear of 
them; in case they are sighted, they should be reported by radio 
at once. Report about the enemy situation by Radiogram 1400. 



II. Situation West Area 

1 . Enemy Situation ; 

Air reconnaissance sighted a group of four steamers off 
Land's End on eastward course. According to radio monitoring, a 
convoy probably passed the Straits of Dover during the night on a 
westerly course. A British merchantman of 2,330 BRT was sunk by 
aerial torpedo 3 miles southwest of Cardiff the afternoon of 3 
Dec. 

2. Own Situation ; 

Atlantic Coast ; 

The Naval Staff replies in the negative to the question 
from Group West as to whether submarine escort is available for 
BENKO, which will be ready to leave within the next few days. 

No reports of damage from the enemy air raids on Brest between 
1905 and 2225 have been received so far. 

Channel Coast: 

— — — — — — — * 

No reports of damage due to enemy air activity in the 
Zeebrugge and Dunkirk region in the afternoon and early evening. 



III. North Sea, Norway, Arctic Ocean: 



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• 



7 Dec. 19^1 CONFIDENTIAL 

1. North Sea : 

Enemy Situation : 

According to radio monitoring, a British tanker of 
6,968 BRT was sunk by a mine on 2 Dec. southeast of Loves toft. 
Probably a success to be attributed to the 4th PT Boat Flotilla. 

Own Situation : 

Convoys handicapped by bad weather. Salvage operations 
on steamer KAI temporarily discontinued. 

2. Norway : 

Enemy Situation : 

One icebreaker of 500 to 800' tons and three freighters 
of approximately 6,000 BRT each arrived on 6 Dec. in the 
Rabocheostrovsk Harbor. A channel in the ice is open, running 
northeast from the harbor. Air reconnaissance reports the White 
Sea frozen over as far as they could see. A submarine was sighted 
off Kirkenes on 7 Dec. and was shelled from land. The ship re- 
turned fire but without success. Off the entrance to Petsamo 
Fjord two Russian submarines were both sighted and located by 
sound detection. 

Own Situation : 

The 8th PT Boat Flotilla was delayed in its voyage north 
because of bad weather. Three mines were swept at the western 
exit of Mageroe Sound. Because of increased danger from the enemy 
and because of the unfavorable phase of the moon, the TANGA convoy 
is not scheduled to proceed from Tromsoe to Kirkenes outside of 
the inter-island route until 10 Dec. Unsuccessful enemy bombing 
of escort torpedo boat DIEDENH0FEN off Ekeroe and Feistein. One 
attacker was shot down. 



IV. Skagerrak, Baltic Sea Entrances, Baltic S ea: 

The Norwegian steamer STANDART was heavily damaged by a ground 
mine off Oslo. Defense measures have been instituted. Four 
torpedo mines Type B were laid in the Kronstadt channel. The 
shipping lane to Riga has been declared open to navigation with- 
out depth limit. 



V. Submarine Warfare 

1. Enemy Situation : 

According to an Italian report, two groups of mine- 



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9862 



7 Dec. 1941 CONFIDENTIAL 

sweepers with air escort are engaged In chasing submarines off 
Gibraltar. The groups operate separately by day and together by 
night. 

2. Own Situation ; 

Report In War Diary, Part B, Vol. IV. 

The Italians have reported their plan to transfer their submarines 
which have been operating in the Atlantic to the Mediterranean for 
transport purposes as soon as the current special task (rescue of 
the survivors from ship "16" and PYTHON) under direction of the 
Commanding Admiral, Submarines is finished. The German Naval Com- 
mand, Italy and the Commanding Admiral, Submarines are directed to 
assist the transfer which is endorsed by the Naval Staff. Armed 
Forces High Command, Operations Staff, National Defense is advised 
of this (see Radiogram 1212). 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

A steamer of 2,500 BRT was- damaged off Dundee by armed 
reconnaissance. Thirty planes laid mines in the Humber during 
the evening; three attacked ship targets but without success. 
Enemy air activity with thirty five planes in the area Wesel- 
Wuppertal- Trier-Luxemburg without noteworthy damage. 

2. Mediterranean Theater ; 

On 6 Dec. planes of the nightfighter group in Sicily 
attacked a large transport steamer of 12,000 to 15,000 BRT 120 
miles northwest of Benghazi. They made three direct hits but 
could not observe the effect because of enemy defense. Recon- 
naissance on 7 Dec. noted numerous capsized rubber boats, ship 
wreckage and two corpses in civilian clothes at the scene of the 
attack. Continuous attack with twenty seven planes on Tobruk in 
the night of 6 Dec. in order to prevent enemy unloading operations. 

At 1040 German air reconnaissance sighted an enemy force of two 
cruisers and one destroyer 200 miles northwest of Benghazi. 
Bomber Group 606 attacked at 1043, 1339 and 1620 and achieved 
two direct hits on a cruiser in the third attack. A flame and 
then a column of fire was seen on the cruiser, which afterwards 
followed the rest of the formation with decreased speed into the 
distance. At 1805 Bomber Group 606 made three direct hits on a 
steamer of 12,000 BRT, 160 miles northwest of Benghazi. Own dif- 
ficulties prevented observations of results. 

According to radio monitoring, the British transport SOMERSETSHIRE 
reported enemy air attack at 1630 north of Solium and thereafter 
sent SOS. 



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7 Dec. 19*U CONFIDENTIAL 

J>. Eastern Front ; 

Nothing to report. 



VII. Warfare in the Mediterranean 

1. Enemy Situation : 
Western Mediterranean ; 
Nothing to report. 

Central and Eastern Mediterranean ; 

According to Italian report from Cyprus, the entire 
British Mediterranean Fleet is at sea between the Ionian Sea and 
Africa. Radio monitoring on 6 Dec. in the evening confirms that 
the High Command of the Mediterranean Fleet is at sea, presumably 
for protection of convoys en route east from the central Mediter- 
ranean. 

According to air reconnaissance, probably tvo groups of light. na- 
val forces were at sea north and northwest of Benghazi. They 
were sighted repeatedly between Benghazi and Malta. At noon Ital- 
ian planes sighted a battleship northeast of Tobruk, proceeding in 
westerly direction, and at 1600 in the same area a heavy cruiser 
accompanied by five destroyers proceeding north-northeasterly at 
20 knots. 

Radio monitoring intercepted reports of air attacks from British 
ships; one of these reports came from transport SOMERSETSHIRE 
(see Aerial Warfare ) . 

At 1700 a cruiser was sighted in Tobruk. 

2. Situation Italy ; 

A report belatedly tells of the sinking of a submarine 
by the torpedo boat SIRTORI on 5 Dec. The submarine made an 
earlier but unsuccessful attack on the convoy off Capo Armi 
(Calabria). Likewise torpedo boat PARTHENOPE reported a subma- 
rine chase off Tagiura on 5 Dec, in the course of which a loud 
underwater explosion occurred and a heavy oil spot appeared, so 
that a mine hit on the submarine is suspected. Submarine TRICHESO 
reported an attack on four enemy cruisers and two destroyers on 
50 Nov., 90 miles northeast of Tripoli. Results were not ob- 
served. Two torpedo boats and two Italian PT boats of the harbor 
patrol flotilla (MAS) were lying in wait in the Strait of Sicily 
the night of 6 Dec. 

3. Transport of Supplies to North Africa ; 

Departure of cruiser CADORNA from Taranto and torpedo 



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9862 



7 Dec. 19^1 CONFIDENTIAL 

boat ORSA from Suda were postponed because enemy vessels vere 
sighted. All other transport movements according to plan. Steam- 
ers ANKARA and ISEO are scheduled to proceed to Benghazi from 
Taranto and Argostoli respectively on 8 Dec. to 11 Dec. Battle- 
ship DUILIO, two cruisers and eight destroyers have been assigned 
to escort them beginning 10 Dec, 1400 to within 40 miles of 
Benghazi. 

4. Area Naval Group South ; 

Aegean Sea ; 

Enemy Situation ; 

Submarine sighted off the Gulf of Suda. 

Ovn Situation ; 

Unsuccessful enemy submarine attack on steamer 3ELL0NA 
in Gulf of Suda. Net barrage unit left Piraeus for Suda. So 
far no success in the attempts to tow U "97" lying off Phi eve. 
Submarine U "371" has been substituted for U "97" to patrol the 
Dardanelles region. The 13th Coastal Defense Flotilla consist- 
ing of six ships was commissioned on 23 Nov. 

Black Sea ; 

Enemy Situation ; 

Air reconnaissance reported a gunboat in the Kerch 
Strait at 0900; a destroyer off Sevastopol; sixteen merchant- 
men in Sevastopol; and seven sailing vessels in the Kerch Strait. 
No courses were given for the latter. 

Own Situation ; 

The steamer CARPATI is being unloaded in Ochakov 
North, with the aid of makeshift equipment. Three icebreakers 
are being employed to make a navigational channel. The steamer 
TISSA is frozen fast at Nikolayev. Traffic on the Bug River is 
now impossible. 



VIII. Situation East Asia ; 

Hostilities between Japan, U.S.A. and Britain began in the after- 
noon of 7 Dec. with a surprise attack by the Japanese. 

The following locations were attacked according to reports so far 
received: Honolulu, Pearl Harbor, Wake, Guam, Manila and Singa- 
pore. 

In Shanghai the Japanese occupied the part of the International 
Settlement which is situated on the waterfront. The attack on 



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7 Dec. 19^1 CONFIDENTIAL 

Hawaii is said to have caused considerable destruction and losses. 

A series of wholly unconfirmed and hasty radio reports gives the 
following view of the situation which is as yet unconfirmed in all 
instances: a naval battle is said to be under way in the Hawaiian 
area, probably involving a Japanese aircraft carrier. The U.S. 
battleship OKLAHOMA is said to have been set afire and the WEST 
VIRGINIA sunk. The Japanese aircraft carrier is supposed to have 
been lost too. (Cf. War Diary 2 Dec. regarding a Japanese force 
of sixteen units on south course off the Japanese mandated islands). 
Two British cruisers are said to have been sunk during the air at- 
tack on Singapore. Landing attempts by the Japanese are supposed 
to be under way in the vicinity of Singapore. Further reports 
tell that Wake is already in Japanese hands and that Guam will be 
taken by the Japanese within a short time. 



IX. Army Situation 

1 . Russian Front : 

Southern Army Group : 

No change in the Crimean situation. Movements on the 
1st Panzer Army sector lead to the conclusion that the enemy is 
preparing a new attack. Isolated enemy attacks were repulsed on 
the 17th and 6th Army sectors. The 111th Infantry Division ad- 
vanced to the vicinity of the railroad station of Debaltsevo. 
Temperatures down to -50° Centigrade. 

Central Army Group : 

On the 2nd Army sector, the 9th Panzer Division reached 
Marmuji on the advance. Enemy attacks were repulsed on the other 
sectors. Severe casualties due to the cold at temperatures down 
to -58° Centigrade. Enemy attacks of increasing strength against 
the 2nd Panzer Army in the south and the 4th and 9th Army west 
and north of Moscow. They forced us to withdraw our front lines 
in several places, and penetrated our lines at Kalinin. 

Northern Army Group : 

Enemy attacks had to be repulsed on the various sectors 
along the entire front of the Army Group. 

2. Finnish and Norwegian Front : 
No important events. 

3. North Africa : 

There are no reports from General Rommel about events 
on 7 Dec. According to a report from Lt. Colonel Monsezerolo 
who was sent to the Cyrenaica by the Italian High Command, Gen- 



7 Dec 19*U CONFIDENTIAL 

eral Rommel i3 forced to retreat to the Ain El Gazala position "be- 
cause of his own heavy losses and the numerical superiority of the 
enemy . 

The Savona Division received orders to withdraw to Bardia. 



**#♦*»♦♦#*♦♦♦*♦♦**♦*»**** 



- 68 ~ 9862 



CONFIDENTIAL 

8 Dec. 1941 

Items of Political Importance 

Far East ; 

After receipt of the Japanese note, Secretary of State Hull de- 
clared that never In his whole political life had he seen a doc- 
ument so full of infamous lies and distortions. He 3aid he vould 
never have believed a government could even be capable of sending 
such a note at all. 

The Japanese Government published a declaration to the effect that 
Japan considers herself at war with the U.S. and Great Britain as 
of 0600 on 8 Dec. 19^1 Japanese time, I.e. 7 Dec. 19^1, 2200 Cen- 
tral European time. 

The President of the United States ordered total mobilization. 
All American Republics were notified of the Japanese attack. 

The Governments of the Dutch East Indies, Canada, and Costa Rica 
have officially declared war on Japan. A session of both houses 
of the British Parliament is scheduled for noon, at which time 
the British Government will undoubtedly announce the British 
declaration of war against Japan. 

NQthing definite is known at present concerning the official at- 
titude of the Government of Thailand. However, it is said that 
the troops have received orders to retreat from the eastern bor- 
der and that British ships are forbidden to use the territorial 
waters of Thailand. Thus Thailand has joined the Japanese to all 
intents and purposes . 

Japanese troops have' occupied the entire shore area of the Inter- 
national Settlement in Shanghai. 

The German News Agency (DNB) reported the following from New York 
concerning the effect of the outbreak of war on relations be- 
tween the U.S. and Germany: according to a letter from Secretary 
of State Hull, the U.S. -German treaty ratified on 25 January 1929 
is still in force; this treaty stipulates that both countries 
pledge themselves not to undertake any warlike acts against each 
other or to declare war on one another without first submitting 
their disputes to a permanent international body for mediation. 

It is hardly conceivable that the government of 
the U.S. seriously expects adherence to the terms 
of this treaty in view of the present situation. 

U.S.A . : 

For further discussion of the publication of the secret report 
of the U.S. General Staff by the Chicago Tribune, based on a 
diplomatic report, see Political Review No. 288, Paragraphs 6a 
and b. Particular attention is drawn to the detached manner in 



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7 9862 



8 Dec. 1941 CONFIDENTIAL 

which the U.S. High Command reckons with the elimination of Soviet 
Russia as a fighting power in summer 1942 at the latest and the 
collapse of the British Empire. 

Great 3ritain ; 

According to press reports, the British Government has communi- 
cated to the Governments of Finland, Hungary, and Rumania that 
she considers herself at war with these countries as of 7 Dec. 
19^1. 



Conference on the Situation with the Chief, Naval Staff . 

I. It will again be possible to use the heavy cruisers ADMIRAL 
SCHEER and LUETZOW for warfare in foreign waters due to the 
change in the situation brought about by the outbreak of war in 
the Pacific. The Chief, Naval Staff intends to discuss this prob- 
lem with the Fuehrer. The operations planned for the auxiliary 
cruisers should certainly be made easier by the new situation. 

II. The Chief, Naval Communications Division reports about coop- 
eration with Japan in the field of communications, which will 
consist mainly in making the results of our observations available 
to Japan. The Chief, Naval Ordnance Division points out that the 
aid we can give to Japan with respect to weapons, etc., must neces- 
sarily be limited because of difficulties in transportation. The 
Chief, Naval Staff remarks that as a matter of principle every- 
thing possible must be done to aid our ally, the Japanese Navy. 

III. The Chief, Naval Staff orders a court-martial investigation 
of the serious irregularities which became apparent at the Wil- 
helmshaven shipyards during work on the destroyer JAKOBI. 

IV. Report by the Chief, Naval Ordnance Division about currency 
difficulties in Rumania. As a result of these difficulties the 
Rumanian Government will make no deliveries to Germany unless 
payment is made in gold or foreign currency. This explains the 
pres_* . critical fuel oil situation. 

V. According to a report from the Chief, Naval Staff, Quarter- 
master Division, all minesweepers and PT boats scheduled for the 
Mediterranean have either arrived at their ports of destination 
or are en route . 

VT. The Chief, Naval Staff directs that preparations should be 
made at once for overland transfer of five small submarines to 
the Black Sea, without regard to doubts voiced about the advis- 
ability of the operation. 

VII. The Chief, Naval Staff agrees with the Chief, Naval Ord- 
nance Division that it would be wise to permit the French to com- 
plete construction of the battleship CLEMENCEAU. This measure 



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8 Dec. 19^1 ' CONFIDENTIAL 

has no practical significance in view of the raw material situa- 
tion, but could be regarded as having political trading value for 
demands of our own. 

VIII. The Chief, Naval Ordnance Division reports a directive from 
the Fuehrer regarding conservation of non-ferrous metals in view 
of the now inevitable prolongation of the war. 

IX. Naval Staff, Chief of Operations Branch reports concerning 

the ship construction program in Italian shipyards that according to 
the Naval Liaison Officer with the Armed Forces High Command, 
the Fuehrer is considering handing this project over to the Todt 
Ministry if the authorities now in charge do not get some practi- 
cal results soon. At the moment a Fuehrer directive can be ex- 
pected, however, turning over the execution of the program to the 
Navy. The Chief, Naval Staff renewed his earlier directions for 
collecting iron for ship construction in the captured Black Sea 
ports . 

X. On the basis of observations made during his recent in- 
spection trip in the West Area, the Chief, Naval Staff orders 
that plans be drawn up for acceleration of PT boat construction. 
Construction of these boats should have the same priority as that 
of submarines. The PT boats are to be treated like the submarines 
also in regard to personnel. The Commanding Admiral, Defenses, 
West considers it possible, though hazardous, to get a cruiser 
through the Channel once . But it is utterly impossible in the 
case of battleships. 

The Chief, Naval Staff orders an investigation within the Navy 
of the organizational setup of the PT boats and torpedo boats, 
without participation of outside authorities. It is the opinion 
of the Chief, Naval Staff that the PT boats are sufficiently im- 
portant to merit creation of an independent fleet command . 



Special Items : 

I. Concerning the Commitment of Forces ; 

The Naval Staff confirms to the Armed Forces High Command, Oper- 
ations Staff, National Defense the proposals made by telephone by 
the Naval Staff, Foreign Affairs Section concerning new regula- 
tions for the commitment of forces. The following orders are re- 
garded as sufficient: 

t 

1. All orders limiting warfare in the blockade regions are 
rescinded, with the exception of those applying to traffic be- 
tween Goeteborg and South America. 

2. Naval and merchant vessels of the United States, as 
well as those of Central and South American countries aligning 
themselves with the United States, are to be treated the same as 
British ones. 



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8 Dec. 19^1 ' CONFIDENTIAL 

3. Contraband regulations apply to U.S. territory (includ- 
ing Chiang Kai Shek China?) and to territory of American countries 
which align themselves with the United States. 

4. The Pan-American security zone and the territorial waters 
of the United States, etc., are no longer to be respected. 

It is pointed out that Paragraph 3 constitutes a state of war ac- 
cording to international law. If war is not formally declared, 
Paragraph 3 should be made known to neutral nations . 

II. Concerning the Aircraft Carrier GRAF ZEPPELIN t 

Acting on the suggestion by the Chief of the Naval Staff, the 
Fuehrer has announced that he desires construction of the air- 
craft carrier GRAF ZEPPELIN to continue. He believes that the 
Air Force will be able to convert planes for this purpose, since 
final models of special carrier planes will not be ready before 
the end of 19^4 at the earliest. The Naval Staff Operations Di- 
vision therefore asks the General of the Air Force at the High 
Command, Navy, the Air Ministry, and the Commander in Chief, Air 
for clarification of the situation arising from the decision of 
the Fuehrer. Corresponding letter: l/Skl 28173/^1 Gkdos. in 
War Diary, Part C, Vol. V. 

III. Meeting of the Commander in Chief, Navy and Admiral Riccardi ; 

Respecting the urgent reasons advanced by Admiral Riccardi, the 
Commander in Chief, Navy agrees to postpone the meeting which was 
to have taken place in Garmisch on 11 and 12 Dec. The Commander 
in Chief, Navy proposes setting a new date for the meeting in 
January 19^2, after the intended operations have been concluded. 

The Italian Admiralty Staff had asked for a postponement of the 
meeting because intended operations in the Mediterranean demand 
Admiral Riccardi 's presence in Rome. 



Situation 8 Dec. 19^1 

I. Var in Foreign Waters 

1. Enemy Situation : 

North Atlantic : 

According to deciphered radio messages, VARSPITE was 
still in the U.S. on 3 Dec, BERWICK was at sea off northern 
Scotland on 7 Dec, and HAWKINS reported a position west of the 
Azores on 2k Nov. 

South Atlantic : 

The U.S. destroyer CLEMSON arrived in Pernambuco on 
6 Dec. According to radio deciphering, a British heavy cruiser, 



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8 Dec. 19^1 CONFIDE JIT IAL 

probably SHROPSHIRE, was located in the Middle Atlantic en route 
to Freetown. At the same time DEVONSHIRE was west of St. Helena 
and CARNAVON CASTLE was northwest of Capetown. 

Indian Ocean ; 

According to an Italian report, steamers loaded with 
troops and war materiel destined for the Persian Gulf have been 
rerouted to the Red Sea in order to bring the troops and the ma- 
teriel to Egypt. PRINCE OF WALES left Singapore, evidently in 
connection with the Japanese landings near Singora. 

Pacific Ocean : 

On 7 and 8 Dec. radio monitoring intercepted orders to 
British and American steamers to change course and keep radio si- 
lence. According to a "Times" report from New York, U.S. Navy 
officials are conducting an investigation as to whether Callao 
has been used as a supply base for Axis ships. 

The result of the investigation will no doubt 
serve as a reason for the acquisition of U.S. 
bases in South America! 

2. Own Situation : 

Report to all blockade -runners and submarine supply 
ships by Radiogram 2310 that the motor ships BURGENLAND and RIO 
GRANDE arrived at their ports of destination. Directive to all 
blockade-runners and submarine supply ships that a state of war 
exists between the U.S.A. and Japan, and instructions to discon- 
tinue use of the Japanese flag sent by Radiograms 0205, 0114, and 
0307. Reports about enemy situation by Radiograms 1932 and 2137. 

The German Naval Attache in Tokyo receives orders to take over 
immediately the command of all German merchant ships in the area 
of the Japanese bases located west of l60° and north of the equa- 
tor. Orders to the ships are to go through the Naval Communica- 
tions Officer at Berlin until direct connections with ships is 
possible from Tokyo by a special channel of communications which 
is to be installed. See Radiogram 1616. 

The reasons for the Fuehrer's award of the Knight's Cross of the 
Iron Cross on 5 Dec. to the commanding officer of the auxiliary 
cruiser C0RM0RAN (ship "4l"), Commander Detmers, are to be found 
in 1/Skl I k 28180/41 Gkdos. in War Diary, Part B, Vol. V. 

Including the last comprehensive report to the Naval Staff in the 
middle of April, ship 4l" had captured eight steamers with a 
total of 56,708 BRT. Of these ships, a valuable tanker of 11,309 
BRT was brought to western France as a prize. According to fur- 
ther reports, the ship captured and sank three steamers of 11,566 
BRT in all, in the Indian Ocean, so that the total achievement of 
the ship in cruiser warfare amounted to eleven steamers of 68,274 
BRT. The auxiliary cruiser has fulfilled her mission brilliantly 
both in raider warfare and particularly in the successful battle 



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8 Dec. 19^1 CONFIDENTIAL 

with the SIDNEY. This was due primarily to superior leadership 
of the commanding officer. 



II. Situation Vest Area 

1. Enemy Situation : 

Radio monitoring intercepted seven British distress 
signals from the Channel and a report of a ship sinking in the 
Dundee area, probably from among the minesweeping forces. 

2. Ovn Situation : 

Atlantic Coast : 

The motor ship BURGENLAND arrived at 1015. She was 
brought into the Gironde as planned . In the afternoon harbor pa- 
trol boats made a depth charge attack on a target located off the 
entrance to Brest harbor. Minesweeper M "1203 was sunk off Brest 
as the result of a bomb hit. 

Group West and the Commanding Admiral, Submarines receive a direc- 
tive to get BENNO ready to sail and to keep her on the alert in 
view of the changed situation in the Pacific. She is not to leave 
however, until the situation in the port of destination is clear- 
ed up and the Naval Staff gives permission to depart. 

Channel Coast : 

Enemy air activity in the Boulogne area at noon. Two 
enemy planes were shot down. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

An enemy plane was detailed to search for a German sub- 
marine 20 miles southwest of Lister. 

Own Situation: ■ 

The westbound convoy and the activities of the mine- 
sweeping forces had to be halted because of bad weather. Salvage 
operations on the steamer KAI were abandoned. 

2. Norway : 

Enemy Situation : 

Radio telephone conversation between enemy submarines 
indicate the intention to make a united attack on Hammerfest in 



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8 Dec. 19^1 * CONFIDENTIAL 

case German warships are not sighted. Submarine BOB and Russian 
submarine SUGAR are participating in the plan. German counter- 
measures apparently have been recognized since the submarines were 
warned of a submarine trap. 

Own Situation : 

The Commanding Admiral, Norway is pressing for the re- 
quested Russian interpreter. He recommends increased alert for 
Hammerfest and Honningsvaag and use of the search light batteries 
at Tromsoe Sound. Otherwise nothing to report. 

On 15 Oct. the Naval Staff had ordered that operations of ships 
in the Arctic Ocean area will be under the command of the Command- 
ing Admiral, Norway on the basis of directions from Group North. 
In accord with a proposal from the Commanding Admiral, Norway 
this order is revised to the effect that operations of ships in 
the Arctic Ocean area will be conducted by Group North. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

OKTYABRSKAYA REVOLUTSIYA. is again ready for action ac- 
cording to testimony from prisoners. MAKSIM GORKI is also said 
to be ready for action again. Completion of a third 10,000 ton 
cruiser is possible. Two more new ships are being fitted out in 
Leningrad. It is possible that ten to twelve destroyers and 
twenty to twenty five submarines are ready for action. Detailed 
reports about losses of the Russian Baltic Sea Fleet and data a- 
bout Russian mine barrages in War Diary Files "Barbarossa" ac- 
cording to Naval Staff, Operations Division, secret reports: 
1/Skl geh: 5 1 * 731, 54 732, 5* 733. 

If the testimony of the Russian prisoners is true, 
then the resistance of the Russian forces to the 
daily air raids is remarkable. The air raids were 
also incapable of completely destroying the capa- 
city of the shipyards. 

2. Own Situation : 

In the Kolberg mine field 407 mines have been swept up 
to now. Another fourteen mines were exploded or salvaged, and 
twenty nine mines are still unaccounted for. Convoy and trans- 
port traffic according to plan. According to the report of a 
German steamer captain, the Norwegian steamers CHARENTE and 
GUDVANG have changed berth in Goeteborg harbor. Both ships are 
under steam and have a full complement of personnel aboard, so 
that we can count on their early departure. There are 1,300 pris- 
oners from the Russian steamer STALIN in Reval and vicinity. They 
are at the disposal of the Finnish Naval Command, which has been 
asked to remove them. 



-7R- 9862 



8 Dec. 1941 CO NFIDENTIAL 

For information concerning replacements for the motor-minesweep- 
ers which are to be transferred from the Deputy Admiral, Subma- 
rines to the Commander, Minesweepers, North Sea as ordered by 
Group North, see Radiogram 1526. 

For directive from Group North regarding rescission of the order 
requiring ships to travel in convoy see Radiogram 1246. For al- 
location of the hospital ships in the zone of Group North see 
Radiogram 1600. 



V. Submarine Warfare 

1. Enemy Situation ; 
Nothing to report. 

2. Own Situation ; ' 

Submarine U "130 " sighted a convoy consisting of only 
two steamers and three corvettes. The convoy was at first pro- 
ceeding westward and then northwestward, presumably making for 
Iceland. An attack on the convoy had to be abandoned because of 
increasingly bad weather. On her return trip, submarine U "131" 
sank an unescorted steamer of 6,000 tons on 6 Dec. west of Rock- 
all Bank. For a further report on the situation see War Diary, 
Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

Ten enemy pursuits were shot down by our own pursuit 
planes, and three more enemy planes by anti-aircraft in defense 
against daylight raids. Armed reconnaissance sank one destroyer, 
two steamers of 4,000 BRT each, and another steamer of 3,000 BRT 
in the sea region off Dundee. Sixty planes took part in an at- 
tack on Newcastle during the night of 8 Dec. 

2. Mediterranean Theater ; 

Five JU 52 's and 9,000 liters of fuel were burned in an 
enemy attack on the Derna airport. Four JU 52's and three other 
planes were damaged. 

It has been confirmed that three enemy planes were shot down by 
German fighters, two by anti-aircraft, and five by Italian fight- 
ers. Seven enemy fighters were probably shot down in addition. 

For results of air reconnaissance see Enemy Situation, Eastern 
Med i terranean . 



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8 Dec. 19^1 CONFIDENTIAL 

The following directive from the Air Force High Command, Opera- 
tions Staff was sent to the X Air Corps: 

a. The X Air Corps is to assure accelerated supply of pur- 
suit planes to Africa in eyery way possible. Adequate pursuit 
cover is of decisive importance. 

b. As far as possible, our forces at the Solium front are 
to be supplied by air. 

c. Minelaying at Tobruk is to be continued. 

3. Eastern Front ; 

Only limited activity because of bad weather. For a 
compilation of the successes of the 4th Air Force in the Black 
Sea area see daily situation report. 



VII. Warfare in the Mediterranean 

1. Enemy Situation : 

Western Mediterranean ; 

According to an Italian report which again concerns 
the transport RANGITATA, this ship is supposed to have entered 
the Mediterranean after all. The success of Nightfighter Group, 
Sicily on 6 Dec. (see War Diary 7 Dec.) is linked with the 
RANGITATA. The 7th Infantry Regiment as well as Air Force per- 
sonnel is said to have been aboard. The entire surface of the 
airport at Gibraltar, with the exception of the take-off strip, 
was covered with planes on 6 Dec. 

Central and Eastern Mediterranean : 

The group of cruisers which was sighted on 7 Dec. be- 
tween Malta and Benghazi arrived in Malta during the night of 
7 Dec, according to an Italian report. One cruiser was damaged 
by air attack. Radio monitoring determined further movements 
between Alexandria and the Cyrenaica. Air reconnaissance con- 
firmed this by sighting several units. Among others, a force 
of one battleship and three destroyers was located 60 miles 
northeast of Marsa Matruh. Amother force of two auxiliary 
cruisers, one steamer and three destroyers was sighted 20 miles 
off Alexandria. Submarines were sighted off Cape Matapan and 
Argostoli. 

2. Situation Italy ; 

Enemy air raids on Bardia in the evening and night of 
6 Dec. An enemy air raid on Catania the evening of 7 Dec. re- 
sulted in no damages to military installations. The underwater 
explosion followed by an oil spot on the water, which the torpe- 



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986 2 



8 Dec. 1941 CONFIDENTIAL 

do boat PARTHENOPE reported after her submarine chase on 5 Dec. 
(see War Diary 7 Dec.) occurred in the area of the German mine 
barrage off Tripoli. Possibly this means a success of this mine 
field. 

Benghazi reported shelling by enemy naval forces at 0130. 

3. Transport of Supplies to North Africa : 

There are no reports of arrivals of merchantmen in North 
African harbors. Two destroyers which were to proceed to Derna 
arrived in Navarino the evening of 7 Dec. The total supplies 
transported by units of the Italian Navy between 12 Nov. and 3 Dec. 
amount to 1,247 tons of fuel, twenty three tons of supplies for 
the Army and thirty tons for the Air Force. 

These figures prove the inadequacy of the supplies 
transported by naval vessels. The fact that hard- 
ly any regular transport vessels have reached their 
ports of destination during the last few days fully 
explains the difficult situation in which the X Air 
Corps and the divisions at the Solium and the Marsa 
Matruh fronts find themselves. 

Losses among the German troops who were aboard the 51st Transport 
Squadron fortunately amount to only sixteen men. 

4. Area Naval Group South ; 
Aegean Sea ; 

Enemy Situation ; 

At the end of September a message from the French Naval 
Attache to the British Naval Attache in Istanbul was Intercepted 
by our radio deciphering service. According to this message, the 
Turks planned to lay a deep mine field off the Dardanelles. The 
Commander in Chief of the Mediterranean Fleet did not think this 
desirable, however, and proposed relying on sub-chasers for sub- 
marine defense. Protection against surface forces would no£ be 
necessary as long as control of the eastern Mediterranean is in 
British hands. 

Intelligence reports the presence of a submarine net In the Dar- 
danelles between Naghara and Akban off Kilia. 

Own Situation ; 

Nothing to report. 

Black Sea ; 

Enemy Situation ; 

Air reconnaissance reported a large naval vessel in the 
harbor of Sevastopol. Otherwise nothing new. 



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9862 



8 Dec. 19^1 CONFIDENTIAL 

Ovn Situation ; 

Minelaying at Constanta was executed as planned "by mine- 
layer MURGESCU. 

Otherwise nothing to report. 



VIII. Situation East Asia : 

According to Japanese statement, U.S. battleships WEST VIRGINIA 
and OKLAHOMA and two cruisers were sunk at Pearl Harbor. Two 
transport steamers were sunk west of San Francisco. One British 
monitor was sunk in the vicinity of Shanghai. 

The British Settlement In Shanghai is in Japanese hands. The U.S. 
gunboat WAKE was captured by the Japanese. 

Continuous heavy air raids are being directed against the Philip- 
pines. Parachute troops are said to have been landed also. Guam 
is blockaded by Japanese ships; the Midway Islands are said to 
be occupied by the Japanese. 

The Philippine cable has been cut. 

Hong Kong is under attack from air and land. 

The Japanese have occupied large parts of southern Thailand. One 
of the landings directed against the Malay Peninsula took place 
just north of the Malay-Thailand border. The British airdrome at 
Kota Bharu was attacked and taken. Padang Tabek is mentioned as 
the location of another landing. Japanese attacks on Sabak are 
said to have been repulsed by British troops. Singapore itself 
sustained two severe air raids. 



IX. Army Situation 

1. Russian Front ; 

Southern Army Group ; 

No change in the situation in the Crimea. Enemy attacks 
on the 1st Panzer Army diminished on 8 Dec. Strong enemy attacks 
on the 17th Army sector were partially repulsed by counterattacks. 
The 6th Army gained some ground in the attack of the LV Army Corps 
Strong enemy attacks on the left flank of the Army were repulsed. 

Central Army Group ; 

Seven enemy attacks west of relets forced the divisions 
of the XXXIV Corps to withdraw. On the 2nd Panzer Army sector, 



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9862 



8 Dec. 19^1 . CONFIDENTIAL 

the 3rd Panzer Division also had to take up new positions east of 
Tula. Strong enemy attacks west and north of Moscow resulted in 
retreat of advanced sections of the 4th Army. North of Klin the 
enemy succeeded in breaking through the positions of the 36th 
Motorized Infantry Division and the 1st Panzer Division and to in- 
flict severe losses on our forces. 

Northern Army Group ; 

At Tikhvin strong enemy pressure also caused retreat of 
the front lines in the area west of the city, which thus fell a- 
gain Into the hands of the enemy. At the encirclement front at 
Leningrad strong attacks and attempts to break through were re- 
pulsed. 

2. Finnish and Norwegian Front ; 

The Karelian Army reached the end of the Stalin Canal 
with the capture of Povyenets. The enemy force encircled west of 
Medvezhya Gora is being destroyed. Nothing to report from the 
other sectors of the front. 

3. North Africa ; 

The enemy is pushing with moderately strong forces out 
of the Bir el Gubi area and the area east of El Adem. Large con- 
centrations of motor vehicles lead us to expect an imminent at- 
tack toward the west from the Tobruk fortress. Retreat of the 
Panzer Division to the Ain el Gazala position lasted until even- 
ing because the Gambara Corps did not provide cover at the time 
directed. One enemy group is proceeding In the direction of 
Agedabia and has occupied Shabi (130 km. northwest of Gialo). 
Two British armored cars shelled an Italian motor vehicle on the 
Via Balbia between Sirte and En Nofilia on 6 Dec. 



***♦**»*****##*#*♦***»**♦ 



.fln- 



9862 



CONFIDENTIAL 

9 Dec. 19^1 

Items of Political Importance 

Great Britain ; 

In a speech before the House of Commons on 8 Dec, Churchill 
stated that the British declaration of var on Japan should pre- 
cede the American one since British territory was attacked at 
Malacca. Hitler's madness has poisoned the mind of the Japanese. 
He is the one who has to be wiped out as the root of all evil. 
The extent of the new danger must not be underrated. Part of the 
war materiel for Russia will now have to be manufactured in Eng- 
land. The new conflict will be very difficult and will probably 
last a long time, but Britain knows that four fifths of the 
earth's population is on her side. 

The French Committee of National Liberation, headed by De Gaulle, 
declared war on Japan. 

U.S.A .; 

In his message to Congress, President Roosevelt dealt exhaust- 
ively with the events of 7 Dec. He declared that the American 
people are aware that the life and safety of the nation are at 
stake. However long the war may last, the righteous forces of 
America will be victorious. As Commander in Chief of the Armed 
Forces he has ordered all necessary measures to be taken and he 
asks Congress to declare that a state of war exists between the 
United States and Japan since Japan's cowardly attack on 7 Dec. 

The Senate voted 82 to and the House of Representatives 388 to 
1 for the declaration of war, which was signed by President Roose- 
velt. 

The press now announces that Hull had proposed a non-aggression 
pact in his memorandum to Japan on 26 Nov. between the U.S., 
China, Russia, the Dutch East Indies, Thailand, and Japan. Such 
a pact would completely have destroyed Japan's freedom of action. 

Central America : 

Haiti, Honduras, Nicaragua, and San Salvador declared war on 
Japan. Declarations of war from Guatemala, Cuba, and the Do- 
minican Republic are said to be imminent. 

Brazil ; 

President Vargas released a declaration of solidarity with the 
United States. Confidentially he let the German Ambassador know 
that he would not think of a break in the relations with Germany, 
even under U.S. pressure. . 

Mexico : 

The Government has broken diplomatic relations with Japan and 



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9 Dec. 19^1 CONFIDENTIAL 

will ask Congress for a declaration of war. Measures were taken 
for collaborating with the United States in coastal defense a- 
gainst Japanese naval forces. 

China: 

The Chungking Government declared war on Germany, Japan , and Italy. 

U.S.S.R . : 

The press shows great reserve in its comments on the outbreak of 
war between Japan and the United States. 

Japan : 

According to Domei, the Japanese answer on 26 Nov. made it clear 
that the fundamental attitude of the United States during the 
conferences was false. The U.S. proposal for a multilateral non - 
agression treaty is incompatible with the real situation in East - 
ern As iiT The economic pressure applied by Britain and the United 
States is less humane than the use of weapons. The imperialistic 
exploitation by Britain and the United States is the curse of East 
Asia. Japan could not allow the continuation of U.S. assistance 
to Chiang Kai Shek. Japan cannot tolerate intrigues which would 
prolong the war between China and Japan by uniting the anti- Japa- 
nese states. 

The imperial war manifesto declares that Japan's war aim is the 
creation of a lasting peace in East Asia. 



Conference on the Situation with the Chief , Naval Staff . 

I. Report by Naval Staff, Chief of Operations Branch about lift - 
ing all restrictions on the use of weapons in naval and air war- 
fare against naval and merchant shipping. The corresponding di- 
rective from the Fuehrer reads as follows: 

"1. All orders limiting use of weapons in the defined block- 
ade areas (Atlantic Ocean, Mediterranean Sea, Black Sea, Arctic 
Ocean) are rescinded. Regulations concerning passage of Swedish 
ships (Goeteborg-South America traffic) remain in force. 

"2. The United States and all those countries of Central 
and South America who align themselves with the U.S. against Ger- 
many or her allies are now to be regarded as enemies. The same 
regulations are applicable to their naval and merchant vessels as 
against British ships. The contraband regulations are in force 
against these states. Territorial waters of these states are no 
longer to be respected. 

" Appendix : At present the following states are considered 
as having aligned themselves with the U.S.: Uruguay, Panama, 



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9862 



9 Dec. 19^1 CONFIDENTIAL 

Costa Rica, Nicaragua, Honduras, Haiti, San Salvador, and Domini- 
can Republic. 

"3. The so-called Pan-American Safety Zone is no longer to 
be respected. 

"4. The ships of those states which remain neutral, especially 
the ABC states of South America (Argentina, Brazil, Chile Tr.N. ), 
are to be treated until further notice according to the interna- 
tional 'Rules Governing Prizes', so long as they are clearly marked 
as neutral. 

"5. Paragraph 2 also applies to Chungking China since this 
country has declared war on Germany." 

The Chief, Naval Staff orders immediate distribution of the above 
directive to all front stations, which is effected by Naval Staff. 
Operations Division. Copy of the teletype under l/Skl Ic 28519/41 
Gkdos. in War Diary files "Directives for Warfare against Merchant 
Shipping". 

II. After hearing the report of the Naval Staff, Quartermaster 
Division, the Chief, Naval Staff orders that only one of the three 
anti-aircraft sections in the area of Gdynia, Pillau, and Danzig 
may be transferred to Brest. The defense of Gdynia is not to be 
weakened . 

III. The Chief, Naval Staff, Quartermaster Division reports that 
the fleet is practically paralyzed as a result of the critical 
fuel oil situation, except for a few possible days of maneuvers. 

IV. A secret resume to the Armistice Commission reports the sink- 
ing of a British steamer off East London by the submarine GLORIEUX 
as a French reprisal measure. 

V. The Naval Staff considers it necessary to reach an agreement 
with the Japanese on the following points: 

1. Mutual exchange of intelligence. All reports important 
to the treaty partner for the conduct of the war are to be trans- 
mitted: enemy communications, operations executed, successes 
achieved, and estimates of the situation. 

2. The treaty partner should be informed of all plans that 
may be of importance to him for the conduct of the war. If nec- 
essary, the actions planned should be synchronized. 

3. In connection with Paragraph 2 the following should be 
arranged when German ships operate in the Indian or Pacific Ocean: 
agreements as to areas of operation, mutual support, radio ser- 
vice, supplies, etc. 

4. Communications from Navy to Navy should be channelled 
by way of the attaches. 



- 8 ^- 9862 



9 Dec. 19^1 CONFIDENTIAL 

5. Continuation of the crude rubber transports. Supply of 
fuel to the blockade-runners. 

The Chief, Naval Staff agrees that a teletype to this effect be 
sent to the Armed Forces High Command, Operations Staff, Planning 
Section. 



Situation 9 Dec. 19^1 

I. War in Foreign Waters 

1. Enemy Situation ; 

North Atlantic t 

The Portuguese Government is considering an embargo on 
Portuguese shipping to the United States and other states at war 
with Japan. 

According to a report from the Naval Attache in Washington, from 
1 Jan. 19^1 until the end of November three American battleships, 
six cruisers, and nineteen destroyers were launched; two battle- 
ships, three aircraft carriers, eighteen cruisers, eighty destroy- 
ers, and twenty five submarines were put under construction. (For 
ships commissioned during this period see War Diary 5 Dec.) The 
Secretary of the Navy announced on 5 Dec. that Britain informed 
the United States in advance that she is sending out a new Far 
Eastern Fleet, including two battleships. He refused to answer 
the question whether this would mean that as a consequence U.S. 
warships would be transferred from the Pacific to the Atlantic. 
In the new budget of about eight million dollars for the Armed 
Forces, about one billion dollars are earmarked for the Navy. 
Special items in the naval budget are construction of four-motored 
naval transport planes and conversion of merchantmen to auxiliary 
aircraft carriers. Other items include armament for 1,000 mer- 
chantmen and construction or purchase of 400 small vessels for 
minesweeping and harbor patrol services. Britain returned thirty 
five of the seventy five borrowed tankers in October and November; 
the rest is to be returned this month. 

This report unfortunately confirms the fact that 
Britain's supply problem has improved. 

2. Own Situation : 

Enemy report on the situation by Radiogram 2334. 



-8*" 



► 



9 Dec. 19^1 CONFIDENTIAL 

II. Situation Vest Area 

1. Enemy Situation : 

According to radio deciphering, British air reconnais- 
sance reported our three large ships as still lying in Brest on 
6 Dec. According to air reconnaissance, twelve steamers in con- 
voy were sighted east of Falmouth on a westerly course. 

2. Own Situation : 

Atlantic Coast : 

Blockade -runner BURGENLAND arrived in Bordeaux. The 
home front has thus once again received most valuable goods, par- 
ticularly rubber, and also tin and other critical raw materials. 

Regarding the loss of U "206" Commanding Admiral, Submarines sus- 
pects that a mine was the cause, see War Diary 6 Dec. Group 
West reports that routes leading around the mine fields as well 
as the limits of the fields had been established in cooperation 
with, and in accordance with the requirements of, the Commanding 
Admiral, Submarines. Even before the defense units were trans- 
ferred to the east the Commanding Admiral, Defenses, West was in 
a position to keep only known routes under constant control. For 
submarine test dives it would be useful to decide on areas which 
can- be kept under constant observation by the Commanding Admiral, 
Defenses, West. The forces of the Commanding Admiral, Defenses, 
West will be relieved to a certain extent as soon as destroyers 
and torpedo boats become available to the West Area in January 
(see Radiogram 0100). 

Radiogram 1907 contains a directive from the Naval Staff to the 
Commanding Admiral, France and the Commanding Admiral, Submarines 
with copies to Group West, Supply Ship Unit, Branch West, and 
Station East of the Supply and Transportation Office of the Armed 
Forces Overseas regarding preparations for the reception of the 
crews of ship "16" and PYTHON. These will probably arrive around 
26 Dec 

Minesweeper M "1203" was sunk by a bomb hit on 8 Dec. Nine men 
were killed, among them the commanding officer. 

Channel Coast : 

Mine -exploding vessel "143" was damaged on route "Rosa" 
between Boulogne and Dunkirk after successfully removing nine 
mines, and is laid up for repairs. 



III. North Sea, Norway, Arctic Ocean 
1. North Sea: 

Enemy Situation: 



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9862 



9 Dec. 19^1 CONFIDENTIAL 

Lively minesweeping off the eastern coast. Six mines 
were swept -outheast of Southwold. 

Own Situat i on : 

According to a report from the Commanding Admiral, De- 
fenses, North the steamer MADRID (ship used for living quarters 
by the 28th Submarine Flotilla) received a bomb hit off Den Helder. 
One enemy plane was shot down by a patrol vessel. Convoys pro- 
ceeding according to plan. Light enemy air activity off the Fris- 
ian coast and at Hook of Holland during the morning and afternoon. 

2. Norway ; 

Enemy Situation : 

Aerial photography located eighty two freighters with 
a total tonnage of approximately 100,000 BRT and 160 freight bar- 
ges in Archangel on 7 Dec. This remarkably large aggregation of 
ships is obviously due to the ice conditions. 

Own Situation ; 

The supposedly hostile submarine which was shelled off 
Kirkenes on 7 Dec. was our own motor-minesweeper R "160". Off 
Risoer an engine exploded aboard the CHRISTIAN RADICH, which is 
used as floating naval quarters. Two men were killed and several 
badly injured. The steamer STEINBECK (2,185 BRT) sank in the 
western entrance of Tana Fjord after an explosion. The cause is 
still undetermined. Twelve men were lost. The Norwegian steamer 
BJ0ENN (5,500 BRT) with a cargo of 9,000 tons of ore was bombed 
by enemy planes and caught fire in the latitude of Bud. The ship 
had to be abandoned because of bad weather. Five Norwegians are 
missing. 

The Commanding Admiral, Norway gives the following directive to 
the Admiral, Arctic Ocean and the Admiral, Arctic Coast concern- 
ing priorities in minelaying in the Arctic Coast area: anti-sub- 
mar inT^alFr^gTs — bTf~^P^Tiamo in the Boek and Kjoe Fjords are of 
primary importance, followed by a mine barrage in Kola Bay. Copy 
of the directive 1/Skl 28592/41 Gkdos. in War Diary, Part C, 
Vol. Ila. 

3. Arctic Ocean : 

It is necessary to supplement reconnaissance and intel- 
ligence reports concerning the waters between Scotland and Ice- 
land, the Denmark Strait, and the waters between these straits. 
Submarines and planes have not yet been utilized to the fullest 
possible extent for this purpose. It would therefore be useful 
to give to such units in these regions certain definite tasks, 
which can be accomplished on the side without interfering with 
their principal missions. The Naval Staff charges Group North 
to carry on such continuous, systematic reconnaissance by subma- 
rine and plane in the area where the enemy might break through. 



• 86- 



•) 



) 



9 Dec. 19^1 CONFIDENTIAL 

Group North is ordered to contact the 5th Air Force immediately in 
this connection. The Naval Staff will request the cooperation of 
the Commanding Admiral, Submarines. Corresponding directive l/Skl 
I op 2083A1 op Gkdos. Chefs, in War Diary, Part C, Vol. Ha. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation t 

An Estonian captain who escaped from Suursaari reports 
that evacuation of the Russian islands in the inner Gulf of Fin- 
land started on 1 Dec; four ships and two barges are engaged in 
this operation. Continuous explosions were observed. A captured 
mine chart shows the location of six Russian mine fields. A copy 
of the report from Intelligence Sub-Station Reval, l/Skl 5484}/ 
geh«, is in War Diary files "Barbarossa" 

A Russian merchantman, converted into a minelayer, was sunk at 
the beginning of October at 59° 58' 2" N, 29° 51' 5" E on the 
same day the MARAT was destroyed. (See Radiogram 1800.) 

2. Own Situation ; 

Supply convoy Stettin-Vasa, consisting of three ships 
with 1,069 men and 214 planes, has left Stettin. 

Group North has opened certain routes north and east of Libau to 
merchantmen sailing alone. See Radiogram 1203. 

The Naval Staff has given permission for ships carrying men on 
furlough to travel to Finland outside the Swedish inter-island 
route. See Radiogram 2011. 



y. Submarine Warfare 

1. Enemy Situation ; 

The Fleet Commander, North Atlantic sent three urgent 
radiograms after 1700 concerning the location of enemy forces. 
A radiogram giving operational instructions to units of the Home 
Fleet followed. 

Lively air activity in the Gibraltar area. Radio monitoring in- 
tercepted a report from a merchantman about sighting a submarine 
off Ascension Island, and subsequently a warning against subma- 
rines issued for this region. 

Steamer ST DENIS (2,435 BRT) reported an attack by two submarines 
in the western Mediterranean. The Naval Attache in Istanbul re- 
ports that according to a Japanese source the Russian icebreaker 



9662 

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9 Dec. 19*1 CONFIDENTIAL 

MAKAROV left the Dardanelles on. 8 Dec. 

2. Ovn Situation : 

The British steamer ST DENIS, inadequately marked as a 
French vessel, was sunk by submarine U "652" south of Mallorca 
because she sent a submarine warning. It is learned from Italian 
radio monitoring, that the French Admiral, South sent a destroyer 
and several planes to aid the ship. (See Radiogram 2230.) 

The Commanding Admiral, Submarines received notice from the Naval 
Staff that "Bernardo" is ready to supply four submarines. The 
utmost precautions are urged because of the phase of the moon. 
See Radiogram l6l6. 

Further reports about the submarine situation in War Diary, Part B, 
Vol. IV. 

The following submarines are accounted for as of 1 Dec. according 
to a list from the Representative of the Submarine Branch on the 
Naval Staff: 

86 operational submarines 

40 submarines at the Submarine Acceptance Command 

54 submarines in training and getting ready for operations 

55 training submarines* 

Thus there is a total of 235 submarines in active service. 

Twenty one new submarines will probably be commissioned in Decem- 
ber. Twenty three submarines were commissioned in November, but 
only seven of these went into the operational zones. 

Normally only about forty submarines at a time should be in train- 
ing for operational duty, and about twenty new submarines should 
go to the operational zones every month. The unusually unfavor- 
able balance of both these categories in November is the result of 
the following: 

a. The great shortage in torpedo recovery vessels ready 
for action. 

b. The repeated failure of practice warheads on torpedoes. 

c. Certain limitations in the training possibilities re- 
sulting from the eastern campaign. 

d. The unfortunate delays in the time required for final 
fitting operations. 

The Submarine Branch of the Naval Staff expects that an improve- 
ment of the unfortunate disparity between the large number of 
submarines constructed and the number ready for operations will 
result from the measures which have been taken. 



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9 Dec. 19^1 CONFIDENTIAL 

The Naval Staff, Quartermaster Division, Fleet Branch reports the 
following concerning the overland transfer of submarines en route 
to the Black Sea from the Elbe to the Danube on Kuhlemeyer rail- 
road cars : The 250 ton submarines can be considered for this 
transport. The engines would have to be taken out and the conning 
towers taken off the hulls. If the submarines are transported by- 
river, pontoons would be needed, and it would be necessary to 
blast a Danube bridge which is being preserved as a historical 
monument. The total time required for the transfer is estimated 
at ten to twelve months . 



VI. Aerial Warfare 

1. British Isles and Vicinity : 
Nothing to report. 

2. Mediterranean Theater : 

For results of reconnaissance see Enemy Situation, War- 
fare in the Mediterranean. 

3. Eastern Front : 

Only light activity in support of the Army. 



VII. Warfare in the Mediterranean 

1. Enemy Situation : 

Western Mediterranean : 

According to Italian reports and radio nonltoring, 
HERMIONE and several destroyers were at sea in the western Medi- 
terranean, where three more destroyers are said to have joined 
them. According to an unconfirmed Italian report, thirty ships 
are supposed to leave Gibraltar for Alexandria in a convoy with- 
in the next few days . 

Central and Eastern Mediterranean : 

According to radio monitoring, the Commander in Chief, 
Mediterranean Fleet and heavy British units are said to be in 
Alexandria. Light forces were located between Alexandria and 
Cyrenaica. German air reconnaissance in this region observed a 
cruiser and several destroyers and merchantmen, obviously the 
regular supply vessels for Tobruk. Three cruisers and four de- 
stroyers were at Malta. A large ship with two smokestacks was 
sighted from the south coast of Crete. Submarines were sighted 
off Argostoli, off Cape Matapan, Navarino, Zante, and northeast 
of Punta Alice. 



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9862 



9 Dec. 19^1 CONFIDENTIAL 

According to an Italian report at 0200, forces were operating a- 
gainst Benghazi during the night, among them probably the flag- 
ship of the 1st Battleship Squadron. Details are missing. At 
noon radio monitoring Intercepted a message about an air attack 
from a force which apparently was entering Alexandria. 

A report from a Spanish source about the part of the French Fleet 
which has been lying at anchor in Alexandria since the armistice 
Is in News Analysis No. 44, "Foreign Navies" series of the Naval 
Staff, Intelligence Division. 

2. Situation Italy : 

The reported bombardment of Benghazi of 8 Dec. was an 
error resulting from a mistake in the Italian code. Enemy air 
attack on Bardia harbor on 9 Dec. but no report of damage. 

3. Transport of Supplies to North Africa ; 

Also on 9 Dec. no supply ships arrived in the North 
African harbors. Two destroyers unloaded in Derna. Two torpedo 
boats did not leave port because of bad weather. The cruiser 
CAVORNA also put into Argostoli for protection from the weather. 

The Admiral, Aegean Sea is to provide a torpedo boat or an aux- 
iliary sailing vessel to take supplies arriving by transport sub- 
marine at Bardia to the Solium front. Group South suggests use ■ 
of the naval barges available at Benghazi. 

4. Area Naval Group South ; 
Aegean Sea ; 

Enemy Situation ; 

A submarine was sighted 45 miles north-northeast of 
Suda the evening of 8 Dec . 

Own Situation ; 

The coal situation in Piraeus forces us to the utmost 
conservation. The most important task at the present time is the 
transfer of troops to and from Crete. All other tasks have to 
take second priority. For corresponding directive from Group 
South, see Radiogram 1520. 

Black Sea ; 

Enemy Situation ; 

For intelligence reports concerning supposed Russian 
landing attempts and the landing craft made ready for such an 
operation, see Radiogram 1919. 



-90- 



986] 



♦) 



• 



9 Dec. 19^1 CONFIDENTIAL 

Ovn Situation ; 

Situation at sea uneventful. For attitude of Group South 
to a transfer of German Armed Forces from Rumania, see l/Skl 
28603/41 Gkdos., War Diary, Part C, Vol. XIV. 



VIII. Situation East Asia 

1. Enemy Situation : 

Radio monitoring intercepted a general message from 
Bandoeng about closing areas in the eastern Pacific to all ship- 
ping and fishing. For chart with plotted areas and radio intel- 
ligence report l/Skl 54768/geh. see War Diary, Part C, Vol. XV. 

According to Reuter, U.S. troop transports, GENERAL HUGH SCOTT 
(12,579 BRT) and PRESIDENT HARRISON (10,508 BRT) were lost by 
Japanese attack in the Pacific. Daventry reports that several 
Japanese planes were sighted on the Pacific coast of the United 
States, but no bombs were dropped. Especially heavy daylight 
raids are said to have taken place on Manila. British naval ves- 
sels (destroyers) are said to have been damaged during intensified 
Japanese air raids on Hong Kong. 

The Japanese troop movements into Thailand continue. Bangkok is 
being occupied by Japanese troops. 

The Japanese achieved certain successes on Malacca. 

2. Situation Japan : 

According to an authoritative Japanese report, PRINCE 
OF WALES and REPULSE were sunk by air raids east of Malacca . 

This report which first came from a French source 
still needs authoritative confirmation. Direct 
Japanese reports are unfortunately very scarce, 
but it is certain that the Japanese successes in 
the first two days of the war are extraordinary. 
The Naval Air Force and the Navy as well as the 
Army have dealt crushing blows to the enemy. 

The Naval Attache at Rome sends the following report which the 
Japanese Naval Attache made to the Italian Undersecretary of the 
Navy: "The material strength of the Japanese Fleet has been kept 
highly secret up to this time. Even Japanese naval officers are 
not permitted to inspect the most modern units. Japan has approx- 
imately the same number of battleships as America. 

"Japanese aircraft carriers are listed at 26,000 tons, but really 
are 45*000 tons. Modern submarines have a surface speed of more 
than 20 knots so that they can be used as fleet escorts. Torpedo 
plane units have been trained systematically and amount to a con- 
siderable number. The Japanese Fleet amounts to about 85$ of the 



9862 

-91- 



9 Dec. 1941 CONFIDENTIAL 

American total. Training of the Navy has been under way for 
twenty years for war against the United States, for five years al- 
so for war against Britain. The Japanese Navy saw this war coming 
for years and will fight to the finish. The Navy has no doubt a- 
bout victory when it meets the U.S. Fleet. The only problem is 
whether the U.S. Navy will come out to fight in the central Pacific. 
Japan's oil supplies are sufficient for fourteen months. Supplies 
of rice and fish are wholly adequate. Provided the war is of short 
duration there can be no doubt of success." 



IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

The 1st Panzer Army repulsed strong enemy attacks before 
they could gather momentum. New attacks are to be expected. No 
change in the situation at the 17th and 6th Army sectors. 

Central Army Group : 

Strong enemy attacks at the 2nd Army sector forces us 
to pull back our lines again. Enemy attacks at Kalinin were 
stopped after all available reserves were thrown in. 

Northern Army Group : 

Strong enemy attacks against our new positions west of 
Tikhvin were repulsed. 

2. Finnish and Norwegian Front : 
No change in the situation. 

3. North Africa : 

Reports of the day were not received. 



«♦*#**********♦*********♦ 



-a?- 9862 



• 



♦ 



CONFIDENTIAL 

10 Dec. 19^1 

Items of Political Importance 

U.S.A .: 

In a radio address Roosevelt declared that the American people 
will have to give up once and for all the illusion that they can 
isolate themselves. Japanese occupation of Guam, Wake, and Mid- 
way is to be expected. The United States Government has known 
for several weeks that Germany told Japan she can share in the 
war loot only if she attacks the United States. Germany and Italy 
consider themselves at war with the U.S. without even bothering 
about a formal declaration. The U.S. hopes to remove the Japanese 
threat. Victory over Japan will be of little value if the rest of 
the world is ruled by Hitler and Mussolini. The war will be a long, 
hard struggle. 

An official directive classifies German, Italian, and Japanese 
citizens as enemy aliens. Numerous citizens of the Axis Powers 
were arrested. 

The isolationist America First Committee under the leadership of 
Lindbergh and Wheeler, and the United Mine Workers under the 
leadership of Lewis have declared their unconditional support in 
the war against Japan. 

An investigating committee of the House of Representatives on a 
tour of inspection through South America uncovered additional 
improper practices of British firms in Latin America which were 
detrimental to U.S. exports. It also protested against British 
censorship of the U.S. mail in Trinidad and Jamaica. 

A congressional delegation travelling through England was pre- 
sumably convinced of the excellent morale. As a result of a five 
months' respite from air raids and an increased food supply the 
population is free from worry. 

It seems doubtful whether this opinion still ap- 
plies to the present situation. 

Japan : 

An official Japanese spokesman declared that Soviet-Japanese re- 
lations are governed by their present neutrality pact. Japan of 
course expects Germany to declare war on the United States. Ac- 
cording to a report from the German Ambassador, it can be regard- 
ed as a fact that not even the Japanese Deputy Foreign Minister 
was informed of the outbreak of hostilities with the United States. 

In looking back on the past policies of the Japa- 
nese Government, it is apparent that the resolute 
leadership which led to the events of 7 Dec. was 
by no means shared equally by all elements of the 



-93- 



9862 



10 Dec. 19^1 CONFIDENTIAL 

Government. On the contrary, it was the success of 
a minority in which the gratifying unanimity of the 
Army and the Navy was the decisive factor. It will 
he interesting to learn later on how these forces 
were able to prevail . But even today there can be 
no doubt but that the clumsy tactics of Roosevelt 
played into their hands. 

Turkey : 

A press report notes a strong tendency by Turkey again to side with 
Britain. After he again takes over the affairs of state, Prime 
Minister Saydam will appear before the National Assembly and reaf- 
firm Turkey's intentions to fulfill the obligations of her pact 
with Britain. 

Although the interpretation is no doubt correct, it 
seems unlikely that this tendency will produce 
tangible results in the near future in view of the 
new situation. Aside from temporary adjustments 
varying with the course of the war, Turkey's ulti- 
mate policy will be to align herself with which- 
ever side offers the greatest advantages on the 
basis of unimpaired sovereignty and possessions. 

The Turkish Government resolved to extend Turkish neutrality to 
include the Pacific conflict. 

South America : 

It is possible that, on the basis of the Havana Resolutions, 
Argentina, Uruguay, and Peru will consider the United States a 
nonbelligerent. According to a statement released by the Vichy 
Telegraphic Service (OFl), the United States have proposed that 
a conference of the Foreign Ministers of the 21 American Repub- 
lics be held at Rio de Janeiro with the purpose of establishing 
the measures for mutual aid which were proposed at the Havana 
conference. 



Conference on the Situation with the Chief, Naval Staff . 

I. In view of the new situation the Chief, Naval Staff agreed 
to detail six large submarines for a surprise action along the 
American coast. 

II. The Chief, Naval Staff, Quartermaster Division discusses ac- 
quisition of iron for shipbuilding in the Black Sea ports and 
construction of transport vessels in Italian shipyards. The Min- 
istry of Transportation estimates that construction of eight 
ships can begin as soon as the necessary iron arrives. The pre- 
fabrication of plates and ribs in German ironworks will reduce 
construction time considerably. 



_9^_ 9862 



• 



• 



10 Dec. 19*1 CONFIDENTIAL 

III. The Chief, Naval Staff, Communications Division reports that 
since the outbreak of the war in the Pacific the U.S. Navy has re- 
placed its outmoded and extremely simple code with an entirely new 
one which we cannot decipher for the present. 



Situation 10 Dec. 19*1 

I. War in Foreign Waters 

1. Enemy Situation : 

North Atlantic : 

No reports. 

South Atlantic : 

A U.S. destroyer arrived in Para on 8 Dec. A deci- 
phered radio message states that sixty seven survivors, among them 
four officers, of the cruiser DUNEDIN landed in Trinidad. Two 
light cruisers were in Capetown on 1 Dec. According to a state- 
ment by the Argentine Foreign Minister, the United States is re- 
garded as a nonbelligerent and may continue to use Argentine har- 
bors. 

Pacific Ocean : 

According to radio monitoring, all British and Allied 
merchantmen in the area south of Australia are ordered to steer 
zig-zag courses. An Australian radio station announced that all 
lights and radio beacons along the Australian coast are to be 
extinguished without further notice. U.S. radio stations sent a 
similar warning concerning the U.S. coasts. 

2. Own Situation : 

The German Naval Attache at Tokyo forwarded a request 
from the Japanese Navy that the KULMERLAND await the arrival of 
Japanese escort forces 2 miles west of Hinomisaki. U.S.- subma- 
rines are said to have been detected off Yokosuka. A correspond- 
ing message was sent to KULMERLAND by Radiogram 2103. 

Report on enemy situation sent by Radiogram 1*59. 

See War Diary, Part C, Vol. I for the operational order from Naval 
Staff, Operations Division for the second undertaking of auxil- 
iary cruiser ship "10" according to l/Skl I K 1892/41 op Gkdos. 
Chefs . 



-95- 9862 



10 Dec. 19^1 CONFIDENTIAL 

II. Situation West Area 

1. Enemy Situation : 
No reports. 

2. Ovn Situation : 

Atlantic Coast : 

For proposal from Admiral, France concerning command 
problems arising from use of -decoy ship SILU see Radiogram 1300. 
SILU will be employed to mislead the enemy about the arrival and 
departure of heavy naval vessels. 

Channel Coast : 

Light damage resulted from a lov level enemy air attack 
on a merchantman off Le Havre on 9 Dec. Otherwise nothing to re- 
port. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea: 

Enemy Situation : 

Lively minesweeping activity along the eastern coast. 
Four mine detonations in the outer Thames estuary. 

Own Situation : 

Bad weather interfered with the west convoy. Other con- 
voys proceeding according to plan. There are eleven men missing 
and one dead aboard the floating naval quarters MADRID (see War 
Diary 9 Dec). Sabotage is suspected. The boatfalls and firehoses 
had been cut into. During the day isolated enemy air activity in 
the area of the Frisian Islands and between Heligoland and Weser- 
muende. Low-level air raid on Wilhelmshaven, Wesermuende, and 
Cuzhaven. Damage negligible. 

2. Norway : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

The 8th Destroyer Flotilla, including five destroyers 
and the TANGA, left Tromsoe for Kirkenes. 



9862 

-96- 



10 Dec. 19^1 



CONFIDENTIAL 



* 



The Commanding Admiral, Norway reports that the completion of the 
batteries on the Arctic Coast cannot be counted on in the near 
future, since due to the transport and unloading situation the a- 
mount transported has been reduced to one fourth. 



IV. Skagerratc, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation ; 

The following information was obtained by interrogating 
prisoners of war: 

All personnel reserves of the Baltic Fleet had been called to 
active duty by the middle of November, and were assigned to shore 
duty for the defense of Leningrad. The sudden halt in the German 
offensive on Leningrad at the beginning of October supposedly came 
as a surprise to military circles in the city. It is said that 
the city would have fallen had the offensive continued for another 
day or two. See War Diary files "Barbarossa", l/Skl 55026 and 
55027 geh., for statements by the captured radio technician of the 
cruiser KIROV concerning locations of submarines, construction of 
new cruisers, and locations of artillery batteries, as well as 
Captain Evdekimov's statement concerning possible effects of our 
own propaganda directed against the Russian population. 



2. 



Own Situation: 



According to a report from the Commanding Admiral, Bal- 
tic Countries, the transport STALIN did not run into the Juminda 
mine barrage but into another mine field. Patrols in the Skager- 
rak were hindered by bad weather. Steamer HELGOLAND was towed 
into Vejle after striking a mine off Vejle Fjord. 



* 



V. Merchant Shipping : 

A 24 hour working day is to be introduced in the United States 
for ship construction. All United States ships at sea have re- 
ceived orders to proceed to a safe harbor at once. All Soviet 
ships en route from the U.S. West Coast to the Russian Siberian 
coast were called back to America. The Japanese motor ship 
TATUTA MARU, en route to the U.S.A. with numerous U.S. nationals 
aboard, is at present between Honolulu and California. 

Italy sold Brazil eight of her ships caught in Brazilian harbors, 
60,000 BRT in all, with option to repurchase them after the war. 
The ships are to be used in traffic between Brazil and American 
countries not at war with Italy. 



-97- 



9862 



10 Dec. 1941 CONFIDENTIAL 

VI. Submarine Warfare 

1. Enemy Situation t 

Radio monitoring located a British ship 150 miles north- 
vest of the Hebrides and intercepted a message from the convoy 
control station in Hull to Reykjavik that departure of convoy 22 
has been postponed until 11 Dec. at 0700. The U.S. steamer OREGON 
reported itself sinking 200 miles east of New York. 

2. Own Situation : 

Because of bad weather contact could not be maintained 
with the convoy on eastward course west of the Rockall Bank. One 
steamer of 7*000 BRT was sunk and one tanker was hit. For further 
report on the situation see War Diary, Part B, Vol. IV. 

Due to the general lack of forces it will not be possible until 
further notice to augment the ralnesweeping forces of Commanding 
Admiral, Defenses, West, as the Commanding Admiral, Submarines 
requested in connection with the loss of submarine U "206". The 
Commanding Admiral, Submarines was advised of the situation by 
Radiogram 1030, with special reference to the opinion of Group 
West (see War Diary 9 Dec). Copies were sent to Group West and 
the Commanding Admiral, Defenses, West. 

The Commanding Admiral, Submarines requests immediate release of 
the large submarines now at sea and of those which will be ready 
to leave their harbor in the next few days, in all twelve subma- 
rines. Plan: Operation "Paukenschlag" off the American coast. 
Medium submarines can fulfill operational requirements in the 
Gibraltar area. 

The Naval Staff is releasing six large submarines which are to 
be taken from those now leaving their bases. Release of the large 
submarines already in the operational area west of Gibraltar is 
out of the question. Corresponding teletype, l/Skl Iu 2105/41 op 
Odkos. Chefs., in War Diary, Part C, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

Armed reconnaissance sighted and unsuccessfully attacked 
a convoy of thirteen steamers east of Cromer. 

2. Mediterranean Theater : 

An enemy naval force shelled Derna at 0730. Italian 
dive bombers attacked and reported five hits on a cruiser and 
one hit on a destroyer. 



•98- 



* 



10 Dec. 19^1 CONFIDENTIAL 

■ 

3. Eastern Front ; 

No news from the Army front because of defect in con- 
nection. See Situation Black Sea for results of reconnaissance 
there . 

4. Special Items ; 

The Commander in Chief, Air has no objections to the 
French request to the German Armistice Commission for thirty 
seven aerial torpedoes. (See Radiogram 1930.) 



VIII. Warfare in the Mediterranean 

1. Enemy Situation t 

Western Mediterranean : 

In Gibraltar are MALAYA, ARGUS, UNICORN, a cruiser of 
the DIDO class, MAIDSTONE, one auxiliary cruiser, one cable layer, 
eight destroyers, seven gunboats, two passenger steamers, forty 
five freighters, and twelve tankers. Still more ships are at sea 
in the western Mediterranean according to radio monitoring. The 
French command post in North Africa repeated a message about 
sighting a submarine 75 miles south of Mallorca. 

Central and Eastern Mediterranean ; 

A cruiser and two destroyers shelled Derna from 0730 to 
0800, and then left at high speed on an eastward course. Obvi- 
ously the Italian dive bomber attack was not very successful. 
Three merchantmen on a westward course were sighted east of Marsa 
Matruh; one merchantman was sighted north of Alexandria proceed- 
ing toward the harbor. Radio monitoring intercepted a message at 
noon telling of a bombing attack on a British ship. Location 
could not be determined. It was learned that auxiliary cruiser 
CHANTALA (3,129 BRT) hit a mine on 7 Dec. and that escort vessel 
FLAMINGO (l,190 BRT) was badly damaged by a bomb hit, probably 
Ai off the Egyptian coast. 

2. Situation Italy ; 

An Italian ammunition depot was set on fire during an 
enemy air raid on Tripoli on 9 Dec. The fires were .still burn- 
ing on 10 Dec. Only slight damage was caused by the shelling 
of Derna. 

The German Naval Command, Italy states in connection with the 
order to transfer Italian submarines from the Atlantic for trans- 
port of supplies to North Africa (Cf. War Diary 7 Dec, Subma- 
rine Warfare), that the capacity of the Italian submarine docks 
is already taken up by German submarines, and that the possibili- 
ties of using the Italian submarines for the above purpose are 



-99- 



9862 



10 Dec. 19^1 CONFIDENTIAL 

limited in any case. Therefore it is requested that the order "be 
checked once more and a new decision be made within five days, 
since Italian preparations will otherwise get under way (see Radio- 
gram 1320). 

3. North Africa : 

Supply steamer SPECIA is scheduled to arrive in Benghazi 
on 10 Dec. However, sufficient supplies for North Africa cannot 
be counted on for this date either, since bad weather interrupted 
the voyage of the steamer CALITEA at Argostoli and prevented the 
cruiser CADORNA from leaving Navarino. It also forced the cruisers 
BARBIANO and GIUSSANO, which left Palermo on 9 Dec, to return on 
10 Dec. On 9 Dec. they were unsuccessfully attacked by enemy 
aerial torpedos off Marittimo. 

Off Navarino on 9 Dec, an enemy submarine torpedoed the steamer 
VENIERO which was returning from Benghazi with 2,000 British 
prisoners of war aboard. The ship could no longer be steered and 
was driven on the beach. Two transport submarines were en route 
to North African harbors with cargoes of gasoline, a third subma- 
rine loaded with food and fuel is scheduled to leave for Bardia 
on 11 Dec . 

4. Area Naval Group South : 
Aegean Sea : 

Enemy Situation : 

A submarine was sighted west of Rhodes. 

Own Situation : 

The steamer TEDOL, reported grounded in Mudros Bay on 
15 Nov. with a cargo of mazut, was salvaged on 9 Dec. without 
damage or casualties. Otherwise nothing to report. 

Black Sea : 

Enemy Situation : 

Intelligence Center Turkey reported that only three Rus- 
sian tankers, besides some icebreakers, entered the Bosporus. 

Air reconnaissance over Novorossisk sighted a heavy cruiser, 
three medium sized steamers, and two docks. Twenty eight small 
ships were sighted in Tamanskaya Bay, two tankers and ten steam- 
ers in Makhach Kala (Caspian Sea). There is an oil storage depot 
southwest of the harbor with six large, forty eight medium and ten 
small oil tanks. 

Own Situation : 

Nothing to report. 



-100- 



t 



• 



10 Dec. 19^1 CONFIDENTIAL 

IX. Situation East Asia 

1. Enemy Situation ; 

The British Admiralty has admitted sinking of the PRINCE 
OF VALES and the REPULSE east of the Malacca Peninsula . 

According to radio station Daventry, Duff Cooper declared that 
severe loss of personnel was sustained In the sinkings of the two 
battleships. Japanese sources have reported two of their trans- 
ports sunk and two others damaged. Japanese landings in the 
Philippines were admitted, but a large-scale defense raid of U.S. 
planes followed. Bitter fighting is under way on Malacca. Kota 
Bharu has been abandoned . Chinese troops are said to have joined 
in the fighting at the Hong Kong front, but in spite of this the 
British lines were penetrated in some places. 

For organization of the U.S. Pacific Fleet, based on Hawaii, ac- 
cording to radio monitoring and deciphering, see War Diary, Part C, 
Vol. XVI. 

r • 

2. Situation Japan ; 

According to a report from the German Naval Attache in 
Tokyo, the attack on Hawaii lasted two hours. Eight aircraft 
carriers and more than 300 planes took part in the attack. Thirty 
planes were lost. The main weapons used were torpedoes and 1,000 
kilogram bombs. Guam and Wake are occupied. Midway is destroyed, 
its occupation is not planned. The destruction of these bases 
cuts off the U.S. air route to Manila. 

It is estimated that two months will be required for total occupa- 
tion of the Philippines and probably four months for the conquest 
of Singapore. The occupation of the oil fields in Sumatra and 
Borneo is not planned until Singapore and the U.S. Fleet have been 
crippled as much as possible. 

An attack on Vladivostok is not planned for the time being since 
forces are not available. However, supplies by sea will be cut 
off as much as possible. 

The PRINCE OF WALES and the REPULSE were sunk by torpedo planes 
off Singora. Several submarines are operating off San Francisco. 
So far they have sunk a tanker and a merchantman. 

Report from the Attache, l/Skl 28692/41 Gkdos., in War Diary, 
Part C, Vol. XV. 

The sinking of the two British battleships is an 
event of particular significance. Within a few 
days the combined power of the Japanese Fleet and 
its own Naval Air Force operating over a wide area 
has strengthened Japan's position on the sea to 
an extraordinary degree, and has given Japan sur- 
prisingly far r reaching strategic advantages at 
sea. The planning of these operations merits the 
highest praise. 

It is most significant that an air arm belonging 



-101- 



10 Dec. 19^1 ' CONFIDENTIAL 

to the Navy Itself was the prime factor in this 
achievement. Nothing could more fully justify the 
existence of such an organization than such a vic- 
tory. Only an air force which is at home on the 
sea and is an integral part of the naval forces 
could have been so successful. In any case, we 
must unreservedly admit that our own independent 
Air Force , in over two years of operations agains t 
heavy naval vessels, the backbone of the enemy's 
sea power, has achieved nothing comparable to the 
success achieved by the Japanese Naval Air Force 
in two days of operation. 

Admiral Nomura told the Chief, Naval Staff that the Japanese 
Fleet and Naval Air Force were also successful in destroying or 
heavily damaging the major part of the U.S. Far Eastern Fleet. 
Details have not yet been received. 



X. Army Situation 

1. Russian Front ; 

Southern Army Group ; 

Probable enemy defense measures east of the Strait of 
Kerch. Extensive fortifications are under construction. Numerous 
un- coordinated enemy attacks were made against the 1st Panzer Army 
sector. The attacks collapsed under our anti-aircraft artillery 
fire. The 17th Army was fighting heavy defensive engagements all 
day. The situation there is of utmost gravity. Several strong 
enemy penetrations southeast of Popasnaya. Troops of the supply 
forces had to be used as last reserves. The 6th Army gained some 
territory in continuation of the attack on the right flank. Enemy 
attacks, among them a night attack, had to be repulsed on the left 
flank in the sector of the 25th Infantry Division. 

Central Army Group ; 

The enemy attacked incessantly in an attempt to enlarge 
the gaps where he broke through the positions of the 2nd Army, 
the 3rd Panzer Group, and the 9th Army. Our positions had to be 
pulled back considerably on some parts of the front. Retreat of 
the 2nd Panzer Army to the Don-Shat-Upa line took place as plan- 
ned. We were able to throw back strong attacks at Tula. The 
4th Panzer Group also executed planned movements of evasion and 
formed a new defensive front. Attacks on the Kalinin position 
from the north and northwest were repulsed. 

Northern Army Group ; 

Increased enemy attacks. An attack reinforced by 
troops transferred from the Valdai area is expected. 



-102- 9862 



< 



10 Dec. 19^1 CONFIDENTIAL 

2. Finnish and Norwegian Front ; 

On the sector of the 163rd Infantry Division, an attempt 
"by an enemy patrol to cross the Svlr was repulsed. Embarkation of 
the 9th SS Regiment in Vasa was halted. Transport of the regiment 
"by rail to Helsinki is in preparation. Otherwise the over-all 
situation remained unchanged. 

3. North Africa ; 

The Savona Division received supplies of food and water 
from Bardia on 9 Dec. 

The Panzer Group continued retreat to the northwest on 9 Dec. and 
completed withdrawal operations of the divisions of the Italian 
XXI Army Corps to the Ain-el-Gazala position on 10 Dec. Disen- 
gagement from the Tobruk front took place according to plan and 
without enemy interference. The Gambara Corps and the Afrika 
Korps covered the maneuver. On 10 Dec. the enemy followed up all 
along the front. In order to protect the southern flank, orders 
were given for the Afrika Korps and the Gambara Corps to retreat 
to the Segnali-Bir Terarad area. The 90th Light Division has the 
task of defending the area around Agedabia and preventing enemy 
landings in the Gulf of Sidra. The commanding officer of the 
15th Panzer Division was killed in action. 

The Panzer Group reports that the over-all supply conditions and 
the immobility of the Italian Infantry Division will not permit 
defense of the Cyrenaica for any length of time. A withdrawal of 
the Italian Infantry Division to the area around Derna beginning 
on 11 Dec. is inevitable. 



♦*♦**♦*********»***#***** 



i 



-103- 9862 



CONFIDENTIAL 

11 Dec. 19^1 

Items of Political Importance 

Germany ; 

Explaining the stand of the Government, the Fuehrer issued a 
statement to the effect that, because of the attitude taken by 
the United States, Germany and Italy will side with Japan in 
this var . The Fuehrer read the text of the pact between Ger- 
many, Italy and Japan which expresses the determination of the 
signatories to fight the war to a victorious conclusion. 

For months the military aspect of the internation- 
al situation has been very disadvantageous to the 
Axis Powers. By the above statement, the position 
of the three countries signatory to the treaty is 
clearly defined according to international law. 

Great Britain ; 

The Na clonal Service Law was passed in the House of Commons after 
its first reading. The vote was 22^:0. Press releases from Lon- 
don state that public opinion demands unification of the main Brit- 
ish and U.S. naval forces in Singapore. This is said to be desired 
in order to deliver a decisive "knock-out" blow to the Japanese 
Fleet within the shortest possible time. 

This arrogance has already had catastrophic conse- 
quences in the Japanese victories over Anglo-Saxon 
naval forces in the Pacific. 

U.S.A . : 

See Political Review No. 291, Paragraph 5, for a detailed account 
of Roosevelt's fireside chat of 10 Dec. A diplomatic report con- 
cerning U.S. reaction to the Japanese attack fully confirms our 
opinion about the failure of Roosevelt's politics. See War Diary 
7 Dec. All the calculations of the U.S. war plan, as published 
by the Chicago Tribune, have now come to naught in view of the re- 
cent developments. A Pacific war, two to three years before com- 
pletion of a Two Ocean Navy, at a time when the Army is not yet 
fully equipped, and the giant armament machine has not yet gained 
momentum, must be most unwelcome to the U.S. Government and ex- 
plains the present day anxiety in the United States. Roosevelt 
has made a terrible miscalculation in counting on Japanese meek- 
ness and fear of the U.S.. As the heavy losses on Hawaii show, 
the Japanese surprise attack was not in the least suspected. The 
duration of the war against Japan is discussed these days in 
terms of two to three years instead of the "push-over" it was 
supposed to be in earlier days. 

The House of Representatives repealed the provisions limiting 
duration of service in the Armed Forces to eighteen months and 
forbidding overseas service of draftees. 



-104- 9862 



11 Dec. 19^1 CORF IDEM 1 IAL 

Japan ; 

The German Ambassador reports that the Japanese High Command was 
evidently successful in keeping secret the exact time set for the 
attack. Several effective diversionary measures were undertaken 
in order to preserve the element of surprise. The departure of 
the TATUTA (see War Diary 10 Dec.) and a social event sponsored 
by the War Ministry on the eve of 7 Dec. were a part of these. 

Finland: 

A diplomatic source reports that the Finnish people received the 
British declaration of war with a feeling of regret coupled with 
resignation and determination. 

Turkey ; 

The German Ambassador reports that Japan's entry into the war has 
had a strong effect. The Turkish Government is said to have re- 
viewed the international situation and to have arrived at the fol- 
lowing conclusion: Since the war is now world wide, the necessity 
and opportunity for a successful compromise solution has increased. 
In view of the geographic situation in the war with the United 
States, it is impossible for either side to win a decisive victory. 
Ankara is said to know very well that the discontinuation of war 
supply shipments to Russia will have a decisive influence, both 
factual and moral, on that country's military situation. 

According to a press report, U.S. trade representatives in Istan- 
bul are taking no more Turkish orders for American goods, since 
U.S. shipping space for transport of civilian goods will be a- 
vailable only to a very limited extent. 

Brazil : 

Press reports state that all business transactions of non-Ameri- 
cans were placed under Government supervision. 



Conference on the Situation with the Chief, Naval Staff . 

The Chief of the Operations Branch, Naval Staff reports on the 
Fuehrer's Directive No. 39. This directive concerns immediate 
cessation of large scale offensive operations and a shift to de- 
fensive measures and related special tasks. The Navy has to pro- 
vide safe conduct for merchantmen and troop supply ships on their 
way to Finland. The route to Helsinki is much safer now that 
Hangoe and Odensholm have been occupied by our forces and should 
be used as much as possible. Furthermore, the Navy is charged 
with substantially increasing the number of small ships to be 
constructed for the purpose of ferrying supplies and reinforce- 
ments (especially across the Black Sea and the Aegean Sea). 
These small ships are to be built in our own country as well as 
in countries allied to or occupied by Germany. All requirements 



-105- 9862 



11 Dec. 1941 CONFIDENTIAL 

and security regulations which are not absolutely essential will 
have to be foregone. 

Directives corresponding to the above text are sent to Groups 
North and South as well as. to the Quartermaster Division, Naval 
Staff, by Fleet Operations Section, Naval Staff (l/Skl I op 
2102/41 Gkdos. Chefs.). For copy of the directives see files 
"Barbarossa". 



Situation 11 Dec. 1941 

I. Var in Foreign Waters 

1. Enemy Situation ; 

North Atlantic ; 

Radio monitoring located FURIOUS in the western North 
Atlantic, RAMILLIES on the northern route and EDINBURGH in the 
Iceland region. A Japanese report states that KING GEORGE V was 
sighted in Bombay on 2 Nov.. Our confirmed reports show that 
PRINCE OF WALES was at Bombay the same day, so that a Japanese 
error seems likely. 

Radio monitoring intercepted a radiogram from Annapolis at 1640 
which was directed to all U.S. naval units. The message stated 
that Germany has declared war on the United States. A message 
intercepted at 1721 gave orders for execution of plan "Wpl 46" 
against Germany and Italy as well as Japan, and gave orders for 
the Naval Attaches to instruct the naval offices. 

The Kaval Attache at Washington reports that eight merchantmen 
per month are being outfitted with armament. This seems too 
slow to be true. 

South Atlantic ; 

Radio intelligence deciphered a report stating that an 
auxiliary cruiser, probably CIRCASSIA, was to leave Jamaica on 
10 Dec. and proceed to Trinidad by way of St. Martin, Saba, and 
St. Eustatius. The U.S. cruiser OMAHA and the destroyer SOMERS ar- 
rived in Pernambuco on 10 Dec. 

Press reports state that Argentina and Chile are conferring about 
joint fortification of the Straits of Magellan. 

Pacific Ocean ; 

• On 9 Dec. the radio station at Bandoeng broadcast a 
warning that a mine field has been laj.d off Batavia and for all 
ships to steer to a fixed control point. Press reports state 
that the British expect that German merchantmen now lying in Jap- 



-106- 9 86: 



11 Dec. 19^1 CONFIDENTIAL 

anese harbors vill be sent into the Pacific as armed merchant 
raiders. Chile and Mexico will start to patrol their terri- 
torial waters in the Pacific. 

2. Own Situation ; 

Report on the enemy situation by Radiogram 2217. 



II. Situation Vest Area : 

Some bombs were dropped during an enemy air raid on Brest between 
1920 and 2105. Some civilian property was damaged. 

Nothing to report otherwise. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea: 

Enemy Situation ; 

The radio monitoring service reports the following Brit- 
ish vessels ready for action in the Scapa area: DUKE OF YORK, RE- 
NOWN, RESOLUTION, VICTORIOUS. 

In the Clyde, but not ready for action: NELSON. 

There have been no accurate reports about KING GEORGE V 
since 2 Oct.. According to press reports, she may be in the In- 
dian Ocean. 

On 7 Dec. a cruiser, probably SHEFFIELD, received orders to pro- 
ceed to Kola Bay. 

Own Situation : 

Nothing to report. 

2. Norway : 

Enemy Situation : 

Aerial photographs of 10 Dec. show that the coastal 
waters between Byelomorsk and Pongoma, approximately 100 miles 
wide, are frozen over. No navigational channel can be seen. 
Radio telephone conversations confirmed that there still are 
submarines in the area off Hammerfest. Decoding of a British 
Admiralty radio report of 17 Oct. reveals the following: A con- 
voy of three steamers proceeding eastward was attacked on 11 Oct. 
off North Cape by submarine TIGRIS. Three probable hits were 
scorecV. A convoy of three steamers proceeding westward was at- 



-107- 



9862 



11 Dec. 19-41 CONFIDENTIAL 

tacked at the same place and presumably by the same submarine on 
14 Oct.. One certain and two probable hits were scored. 

Own Situation ; 

The 8th Destroyer Flotilla and TANGA could not enter 
Kirkenes because of fog. The ships proceeded to Vadsoe since visi- 
bility and wire communication facilities were better there. 
LUEDERITZ started on her trip to Bodoe unaccompanied. Rolfsoe 
Sound and Reppe Fjord were closed to shipping because of suspected 
mines in these waters. An artillery duel between submarine chaser 
"1212" and a submarine took place north of Haramerfest. Results 
have not yet been reported. Coastal Battery "Loedingen" is ready 
for action in an emergency. There can be no doubt that the steamer 
STEINBECK was hit and sunk by a torpedo. 



IV. Skaggerrak, Baltic Sea Entrances, Baltic Sea ; 

Nothing to report. 

According to the German Naval Attache at Helsinki, Field Marshal 
Mannerheira gave an "Order of the Day" commemorating the occupation 
of Hangoe. In it he has words of high praise for the German air 
and naval forces which played such a decisive role in the conquest 
of the island. The Commander in Chief, Navy will convey his ap- 
preciation to the Field Marshal. 



V. Submarine Warfare 

1. Enemy Situation ; 

At 1400 a British plane tracked a submarine west of the 
Faroe Islands at 60° 57' N, 12° 57' W. 

Convoy OG 77 passed 43° N 33° W probably on 8 Dec. Radio sta- 
tion Annapolis announced that a mine field has been laid in the 
approaches to New York harbor. 

2. Own Situation : 

Submarines located in the vicinity were ordered into 
action against a convoy proceeding to Lisbon. Submarine U "434" 
reported sinking three steamers of the convoy, a total of 25,000 
BRT. Submarine U "374" sank two ships off Ceuta within her pa- 
trol area. 

The sequence for supply of submarines at "Bernardo" from 11 Dec. 
to 15 Dec. is as follows; U "574", "575", "332" and "434". Naval 



-108- 9862 



11 Dec. 19*U 



CONFIDENTIAL 



# 



Staff has no objections to an underwater approach by the subma- 
rines. This maneuver was tried twice so far and was successful 
each time. (See Radiogram 1616.) 

The German Naval Command, Italy requested review and possibly 
rescission of the order transferring Italian submarines from the 
Atlantic to the Mediterranean (see War Diary 10 Dec). Naval 
Staff answers this request as follows: Transport of supplies and 
reinforcements from Italy to North Africa has top priority at this 
time. It is therefore desired that the Italians be given all pos- 
sible assistance in their plans for transferring submarines from 
the Atlantic to the Mediterranean where they will be used for 
transport purposes. (See Radiogram 1717.) 

The German Armistice Commission reports that the French requested 
assurance that steamer ST. DENIS was not sunk by an Axis submarine 

For a comprehensive report on submarine warfare in the North and 
South Atlantic as well as in the Mediterranean and the Aegean Sea, 
see War Diary, Part B, Vol. IV. An analysis of the situation by 
the Commanding Admiral of Submarines is attached to the report. 



♦ 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

Twenty five of our planes were on a mine- laying mission 
during the night of 11 Dec. Mines were laid in the mouth of the 
Humber. Forty eight enemy raids into the Reich. Main points of 
attack were Frankfurt, Wiesbaden, Mannheim. Air raids on Le Havre 
and Brest. Reports of damage have not yet been received. The Ger- 
man Army Radio Deciphering Service reports that convoy control 
station Aberdeen confirmed the sinking of transport vessels XH, XP, 
YS and XU on 10 Dec. and furthermore reported that three other 
transport vessels arrived heavily damaged at Newburgh. These ships 
were damaged by three planes of the 1st Fighter Group, Squadron 26, 
off Dundee on o Dec. (see War Diary 8 Dec;. 

2. Mediterranean Theater : 

Two German transport planes on a flight from Derna to 
Athens were shot down by British pursuit planes. 

3. Eastern Front: 



Army. 



Fairly strong Air Force operations in support of the 



-109- 



9862 



11 Dec. 19^1 CONFIDENTIAL 

VII. Warfare In the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean : 

All vessels of Task Force H are again in Gibraltar. Ac- 
cording to a report from Spanish source, thirty ships have "been 
expected to leave at any time since 28 Nov. 

Central and Eastern Mediterranean : 

Two cruisers and two destroyers were sighted 10 miles 
southeast of Malta heading southeast. Radio intelligence lo- 
cated several unaccompanied vessels at sea between Alexandria and 
Tobruk. British submarines were sighted or located in several in- 
stances . 

2. Situation Italy : 
Nothing to report. 

5. Transport of Supplies to North Africa : 

The steamer SPECIA arrived in Benghazi. Other trans- 
ports were considerably delayed by weather conditions. 

4. Area Naval Group South : 

Aegean Sea : 

During an enemy submarine attack on the convoy of steam- 
ers ELLY and ARKA, the torpedo bo.at ALCIONE was heavily damaged 
and beached off Suda. 

Black Sea : 

Nothing to report. 



VIII. Situation East Asia 

1. Enemy Situation : 

The United States War Department announced attacks by 
Japanese army, air and naval forces on the western coast of Luzon 
between San Fernando and Vlgan. Further announced was an attack 
by American bombers on the Japanese transport vessels off Vigan. 
Five transports are said to have been damaged and another one 
sunk. Reuter announced that the Philippines were the target of 
enemy air raids all day. The naval base Cavite was the main target 
of enemy bombings. The Japanese also are 33. id to have landed on the 
northern coast of Luzon. British Headquarters in Singapore reports 
that enemy attacks by air and land are con-'.nuing in northern 
Malaya and that the Japanese made a landing attempt on the east 



-110- 9862 



11 Dec. 1941 CONFIDENTIAL 

coast of the peninsula near Kuantan. A French report states that 
Tsingtao has been occupied by the Japanese.. Naval and air rein- 
forcements from the Dutch East Indies arrived in Singapore. Radio 
station Daventry reports that three bomb hits vere scored by 
American planes on the HARUNA north of Luzon. The ship is said to 
have been set afire and sunk. 

2. Situation Japan : 

Japanese Headquarters reports that Japanese landings 
took place on the Philippines. The air base at Nichols Field was 
successfully attacked. A U.S. transport vessel was sunk in Manila 
.Bay by submarine. A British steamer was taken as prize off Hong 
Kong. Further reports state that Japanese troops made a success- 
ful landing on Guam, a U.S. submarine was sunk off Palau, and a 
British patrol vessel was sunk off Hong Kong. Japanese losses are 
given as two transport vessels without loss of personnel. It is 
denied that a Japanese aircraft carrier was sunk off Hawaii. 

No reliable reports are available about the sinking of the U.S. 
carrier LEXINGTON and the British battleship KING GEORGE V. 

The Japanese Chief of Naval Staff Nagano himself explained to the 
German Naval Attache the action that took place off Cape Kuantan. 
According to his explanation the following took place: PRINCE OF 
WALES, REPULSE and four destroyers, all on north northwest course, 
were first sighted in 105° West by submarines patrolling a line in 
5° North. Air reconnaissance was dispatched but lost contact with 
the British force during the night. The British obviously steered 
a more northerly course and then reversed course to be sighted a- 
gain by the Japanese submarine line on 10 Dec. at 0^40 in 5° North 
and 104° 30 » East on southerly course. At 1115 air patrols con- 
tacted the enemy in 4° North in the same longitude. The British 
ships were proceeding on a southerly course at full speed. The 
alarm was sounded and J>k bombers and 51 torpedo planes left from 
Saigon. These planes then began the attack at 1310. REPULSE 
sank thirty minutes later and PRINCE OF WALES sank at 1450. 

Attack Maneuver : 

Bombers attacked first in order to tie down anti-aircraft artil- 
lery. Shortly afterwards came the attack by the torpedo planes 
from east and west. Only three Japanese planes were lost. The 
planes landed on newly conquered airfields in Malaya. The British 
defense was termed very weak. Japanese naval forces, mostly 
cruisers, which were stationed south of Cape Cambodia could not 
arrive in time to take part in the engagement. The operation was 
under the command of Admiral Kondo. The Hawaii operations are 
under the command of Fleet Commander Admiral Yamamoto. Nagano 
finished his explanation with the words: "The BISMARCK has been 
avenged, and this is only the beginning. My very best regards to 
the Grand Admiral." The leading personality, and the one who 
prepared the start of the whole campaign in an exemplary way, is 
Vice Admiral Ito. 



-Ill- 9862 



11 Dec. 19^1 CONFIDENTIAL 

IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

Fairly weak enemy attacks in strength up to one regiment 
were repulsed at the 1st Armored Army sector. At the 17th Army 
sector the front was shortened in some places. Nothing worth men- 
tioning occurred at the 6th Army sector. 

Central Army Group : 

Heavy enemy forces closely follow the southern flank of 
the 2nd Armored Army. Sustained enemy pressure west of Moscow in 
the area around Klin and southeast of Kalinin. The enemy pene- 
trated our lines in several places. Withdrawal to rear positions 
generally according to plan. 

Northern Army Group : 

Isolated enemy attacks were repulsed. 

2. Finnish and Norwegian Front : 
Nothing to report. 

2. North Africa : 

The 2nd South African Infantry Division seems to he 
preparing an attack on Bard ia- Solium- Hal faya from the west. 

Enemy outposts and patrols were active in the Ain el Gazala sec- 
tor in an attempt to establish contact with Italian units. 

The Commanding Officer of the 90th Light Division was killed. 



*****♦*♦***♦****♦*#**♦**# 



-112- 



CONFIDENTIAL 

12 Dec. 1941 

Items of Political Importance 

Great Britain : 

Churchill made a speech in the House of Commons in vhich he brought 
out the following points : 

A second phase is about to begin in the Libyan campaign now that 
reinforcements have arrived. As the result of unexpectedly strong 
and skillful German resistance the first phase was much costlier 
than had been expected. The Battle of the Atlantic is progressing 
as much as ever in Britain's favor. Heavy losses in Russia have 
forced the German Army into a defensive position. This campaign 
is one of the gravest errors in German policy. As for the Far 
Eastern Campaign, Britain hardly ever before sustained so heavy 
and grievous a loss at sea as that of the two battleships. 

The Prime Minister closed with the remark that it would be a dis- 
grace not to be able to teach the German Party Organization, that 
most despicable of evils of mankind, a lesson which the world will 
not forget for a thousand years to come. 

According to press reports the Ministry of Economic Warfare declar- 
ed that the war against Japan cannot be won by a blockade alone. 
Japan would be able to stand total war for at least a year, and if 
new sources of raw materials are opened up, for four or five years. 

Portugal : 

According to sources close to British Embassy circles, the Portu- 
guese Government is being sounded out whether it would agree to 
entrust Britain with the protection of her Far Eastern possessions 
(Goa, Diu, Daman, Macao, and Timor). The Portuguese Government 
shows little inclination to such an agreement and hopes that Japan 
will respect Portuguese sovereignty rights. 

U.S.S.R . : 

Diplomatic sources report that great self-confidence is evident 
in Moscow concerning the outcome of the fighting. 

Hungary : 

The Government has broken off diplomatic relations with the United 
States. 

Turkey ; 

The Italian Government proposed to Ankara that a new Friendship 
Pact be signed as substitute for the one expiring in April 1942. 
Press reports state that there is little inclination on the part 
of Turkey to conclude an alliance of such intimate nature with 
the Axis at this time. 



-113- 



9862 



12 Dec. 19^1 CONFIDENTIAL 

U.S.A . : 

The enthusiastic ovation which the President received in Congress 
is said to reflect U.S. public opinion. A diplomatic report states 
that there is no more opposition, and goes on to say that the 
United States Government obviously expects Russia to participate 
in the war against Japan. But Lit vino v is said to have made a very 
evasive statement. There is no doubt in the public's mind about 
the seriousness of the situation in the Pacific (in view of the sur- 
prising Japanese successes in Hawaii. The significance of the 
losses is not denied. There is a pronounced tendency to blame 
Germany as the chief instigator of the war who has lead Japan a- 
stray. Russia's attitude is being watched with great interest. 

Thailand ; 

It was officially announced that Japan and Thailand signed a full 
military alliance. 



Conference on the Situation with the Chief, Naval Staff . 
No special reports or decisions. 



Special Items : 

I. Italian Fuel Oil Supplies : 

The Armed Forces High Command, War Industries and Supplies Section 
informed the Italian Armed Forces High Command through the German 
General at Headquarters of the Italian Armed Forces that the Ger- 
man Navy will send only two shipments of 30,000 tons fuel oil and 
not three as was erroneously assumed. Both shipments are under way 
at the present time. Rumanian shipments are behind schedule not 
because Rumania failed to produce enough oil but because her home 
consumption is excessive. A change in this situation is definitely 
promised. German representatives are in Bucharest at this very (j| 

moment. They are doing their utmost to persuade the Rumanians to 
release a considerable amount of fuel oil to Italy before the end 
of this month. The subsequent supply situation of the Italian Navy 
will be one of the topics of discussion at the forthcoming confer- 
ence of the German and Italian Naval Staffs. See War Diary, Part C, 
Vol. IX for exact text of the message as received from Naval Staff, 
Quartermaster Division, Supplies (Ski Qu. A. IIIc 9734/geh.). 

II. Independent versus Naval Air Force ? 

See News Analysis "Foreign Navies" No. 44 for report on the first 
mobilization measures in the United States. The same volume con- 
tains an article by Rear Admiral Yarnell, U.S.N, (ret.) which ap- 
peared in the magazine Collins (Colliers? Tr.N.) on 15 Nov. 1941. 



•114. 



9862 



12 Dec. 19 2 *! CONFIDENTIAL 

This article is a critique of the R.A.F . Admiral Yarnell takes up 
one by one the few successes scored by the R.A.F. and goes on to 
say that these vould have been far greater and the numerous errors 
and failures far less frequent were the R.A.F. not an "independent 
Air Force " but an integral part of the Army and Navy. This com- 
ment becomes significant in the face of current experiences in the 
war against Japan. 

III. Enlargement of the Finnish Navy : 

The German Naval Attache at Helsinki submitted detailed proposals 
on how the German Navy can exert influence on the future organiza- 
tion of the Finnish Navy. While the Naval Staff respects the 
principles contained in the report, they believe that the proposed 
assignment of Finnish officers to the German Naval Staff and the 
Group Commands would constitute an unnecessary encumbrance for these 
authorities. The Naval Staff believes that their assignment to the 
various frontal sectors would be more to the point. German views 
concerning the development of strategy and operations can be clear- 
ly defined in a few conferences. Unfortunately it seems as though 
the Naval Attache at Helsinki committed himself rather definitely 
to the Finns before the German Naval Staff was able to review the 
matter. It is recommended that henceforth the Naval Staff, Quarter- 
master Section, and the Naval Personnel Office participate in all 
such matters. 

IV. Overall Situation in the Defense Industry: 

The Armed Forces High Command, War Economy and Armaments Division 
gave a comprehensive report reflecting grave concern over how long 
it will be possible to maintain production at a sufficiently high 
level. Difficulties are increasing from month to month. The fol- 
lowing specific problems demand attention: * 

An overall increase in production is out of the question at 
this time. Industrial manpower reserves are exhausted. There is 
great confusion in regard to the distribution of manpower and max- 
imum exploitation of productive bapacity. Signs of weariness. 
Lowering of workers morale. Transportation conditions are criti- 
cal. The coal supply is becoming extremely low, the coal reserves 
of plants are exhausted and in some instances it has become neces- 
sary to shut down factories (even in essential industries!!). In- 
sufficient coal deliveries have caused serious difficulties in the 
production of electric power; serious complications in the long 
distance supply of gas; considerable disruption of production; 
the motor fuel supply is insufficient to fill the needs of essen- 
tial industry. The fuel shortage considerably affects transpor- 
tation. The transportation situation is extremely critical. In 
some respects it is worse than it has ever been. 

V. The Naval Attache at Tokyo transmits the following message 
from Admiral Nagano : 

1. Admiral Nagano requests information concerning the 
aerial torpedoes which Japan made available to Germany. 

2. He points out that the creation of an independent Jap- 



9862 

-115- 



12 Dec. 1941 CONFIDENTIAL 

anese Air Force 13 no longer an acute question. 

3. He expresses hope that attacks on the Suez Canal will In- 
crease from now on in view of the expected transfer of British na- 
val forces from the Mediterranean to the Pacific, and in view of 
the lull In the Russian campaign. 

This request is so logical that it was to be expect- 
ed. But since the German Air Force suffers from a 
lack of fuel it is imperative that our hard-pressed 
land forces he given priority on air support. 

VI. The Chief of Naval Staff had a conference with the Fuehrer.. 
For the text of this conference see War Diary, Part C, Vol. VII. 
Entry made according to directive from Operations Division, Naval 
Staff (1/Skl lb 21^5/41 op Gkdos. Chefs. J. 



Situation 12 Dec. 194l 

I. War in Foreign Waters 

1. Enemy Situation : 

Special Items : 

See Radio Intelligence Reports (B-Berichte) No. 49/41 of 

the Naval Staff, Chief of Naval Communications (Radio Intelligence), 

for compilation of news received up to 1 Dec. 1941 by radio moni- 
toring and intelligence services. 

North Atlantic : 

Radio monitoring service reports that U.S. ships in the 
North Atlantic received special orders about painting over mark- 
ings revealing their identity, radio silence, navigation lights, 
etc.. A mine field was laid off Chesapeake Bay. Three U.S. sub- 
marines left Bermuda on 9 Dec. headed for the Bristol Channel. A 
cruiser, probably the NAJAD, is on her way to Gibraltar from the C 

West Indies. 

Radio London reports: All British naval bases have been put at 
the disposition of the U.S.; all U.S. bases at the disposition 
of the British naval forces. The U.S. Export Line has discontin- 
ued service. 

South Atlantic : 

Radio Boston states that ships can pass through the Pan- 
ama Canal only between the hours of 0600 and 1800. OMAHA and 
SOMERS left Pernambuco. An unidentified U.S. destroyer arrived 
at Natal on 7 Dec. and additional ships are expected there. Radio 
deciphering service located ASTURIAS east of Bahia and ROYAL 
SOVEREIGN on convoy duty in the South Atlantic. 



9862 

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12 Dec. 19^1 CONFIDENTIAL 

Pacific Ocean : 

According to press reports the Chilean Government has 
put all Chilean harbors at the disposition of U.S. vessels. 

2. Own Situation ; 

The Naval Attache at Tokyo relayed a request from the 
Japanese Navy to let the PORTLAND pass north of Hawaii. She is to 
be met and escorted by Japanese na*val forces (see Radiogram 1747). 

Radiogram 0016 gives corresponding directives to the PORTLAND. 

Reports on the enemy's situation were received by Radiograms 0531, 
1154, and 2200. 



II. Situation West Area 

1. Enemy Situation ; 

Air reconnaissance sighted a convoy of six steamers on 
southward course south of Milford. 

2. Own Situation ; 

Atlantic Coast ; 

During the enemy air raids on Brest (see War Diary, 11 
Dec.) the evening of 11 Dec. in which about ten planes partici- 
pated, one bomb out of a series of six landed in the water "approx- 
imately 20 meters in front of the SCHARNHORST ' s bow. Lannion bore 
the brunt of the attack. Between 15 and 20 enemy planes renewed 
the attack on 12 Dec It lasted from 1856 to 2202. Fifty high 
explosive bombs fell in the harbor area and the air base at Brest 
South. No large vessels were damaged. 

Further heavy attacks on Brest are to be expected. 
The enemy is determined to try everything .to crip- 
ple our heavy vessels in order to enable British 
heavy vessels to proceed to the Far East. 

The Naval Staff agrees with the proposal from Commanding Admiral, 
France concerning operations of the decoy vessel SILU. It is en- 
tirely up to Group Command West how to use this vessel. (See 
Radiogram 1230. ) 

Channel Coast ; 

Enemy air activity in the evening of 11 Dec. in the Dun- 
kirk area and along the entire Belgian coast. No bombing. One 
enemy plane was shot down by naval anti-aircraft artillery. Ten 
bombs fell on Le Havre during the attack. No damage. 



-117- 



9862 



12 Dec. 19^1 CONFIDENTIAL 

III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

The steamer MARIENTHAL, sailing unescorted, was attacked 
"by enemy planes off Vangeroog Island. Otherwise nothing to report. 

2. Norway : 

Enemy Situation ; 

From monitoring radio telephone conversations we learned 
that a group of British submarines was located off Haramerfest and 
a group of Russian submarines off Cape Nordkyn in the evening of 
11 Dec. 

Own Situation ; 

Weather conditions prevent arrival of the 8th Destroyer 
Flotilla and TANGA at Kirkenes. Submarines U "134" and U "45V' 
arrived at Kirkenes. LUEDERITZ and the 8th PT Boat Flotilla ar- 
rived at Bodoe. Submarine chasers "1211" and "1212" engaged an 
enemy submarine in an artillery duel. The enemy submarine had pre- 
viously sunk two Norwegian cutters. After it submerged it was at- 
tacked with depth charges and was presumably damaged. The sea area 
off Myling was closed to shipping because mines are suspected in 
those waters. Minesweeper BALI ran aground and was towed to Trom- 
soe with a damaged screw. Radio station Gamvik burned down on 10 
Dec; All equipment was lost. Fire most likely caused by negli- 
gence. Since 2 Dec. the torpedo batteries at Korshavn and Porsoe 
are ready for action in case of emergency. The inner Petsamo 
Fjord is only navigable with the aid of icebreakers. Our convoy 
was unsuccessfully attacked by enemy planes off Obrestad on 11 Dec. 

After the arrival of submarine U "134" it was determined that the 
steamer STEINBECK was sunk by this submarine on 9 Dec. According 
to the Commanding Admiral, Arctic Ocean, the commanders of U "134 
and U "454" had presumably not been informed about our own coastal 
convoys and were not provided with code equipment or the radio com- 
munication schedule for the Arctic coast. 

This tragic failure demands a thorough investiga- ( 

tion by a military court of inquiry. 

The War Diary of the Admiral, Arctic Ocean for 20 Oct.. contains 
incorrect data in its representation of the initial situation. 
This must be charged to insufficient information. The Naval Staff 
wishes to make it understood that the Navy is in no way responsible 
for the failure of the Army attack on Murmansk. The offensive was 
not successful because the forces used were too small from the very 
beginning. Only later on did the Navy receive requests to bring up 
supplies and troop reinforcements by sea, and this was done to the 
best of our ability until the Armed Forces High Command decided, on 
the basis of considerable losses, that the risk was too great and 
that the operation should therefore be discontinued. The Naval Staff 
had always stressed the risk that would be involved. Group Command 



-118- 



12 Dec. 194l CONFIDENTIAL 

North, Commanding Admiral, Norway and Admiral, Arctic Ocean have 
been informed of this view. It was added to the War Diary of the 
Admiral, Arctic Ocean. For text of the message see entry in War 
Diary, Part C, Vol. Ha, as per Naval Staff, Operations Division, 
Northern Operations Section, l/Skl I Nord 28001/41 Gkdos. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea ; 

i 

The Swedish steamer DERNIA and the German steamer FORTUNA were 
caught in the Gjedser net barrage. 

Otherwise nothing to report. 



V. Merchant Shipping ; 

The Naval Staff, Naval Intelligence Division estimated the total 
tonnage of U.S. East Asia lines at 1.2 million BRT, or 220 ships, 
at the beginning of Nov.. At the outbreak of war, only 24 of 
these ships (160,000 BRT) were at sea in areas where the Japanese 
could seize them. 15 of them (105,000 BRT) were homeward bound 
for the U.S. Vest Coast. Nor were there many Japanese ships out- 
side the Japanese sphere of influence at the outbreak of hostili- 
ties. According to the Naval Staff, Naval Intelligence Division 
there were only eight such Japanese ships (approximately 60,000 
BRT). 

Digest- No. 54 of the "Foreign Merchant Shipping" news series by 
Naval Staff, Naval Intelligence Division contains the following; 

Names of Japanese and American ships in question; report 
about institution of prize courts at Tokyo, Yokosuka, and Sasebo; 
report about the regulation forbidding Portuguese ships to sail 
to the U.S.; backlog of orders for merchant ship construction in 
the U.S.; armament of U.S. merchantmen; limitation of Turkish 
coastal shipping. 



VI. Submarine Warfare 

1. Enemy Situation ; 

On 10 Dec. a convoy, course unknown, was proceeding at 
12 knots northwest of Porcupine Bank. A British patrol vessel 
asked for pursuit plane cover 20 miles south of Lisbon. This was 
presumably near convoy 0G 77. The British naval vessel ROSABELLA 
exploded in the Gibraltar area on 10 Dec. According to a Span- 
ish report five auxiliary cruisers, which could be used for trans- 
port purposes, are lying in Gibraltar. 



-119- 



12 Dec. 19^1 CONFIDENTIAL 

2. Own Situation ; 

The Chief of Staff, Naval Staff and the German Admiral, 
Rome conferred by telephone. As a result the power of decision 
regarding the transfer of Italian submarines from the Atlantic 
to the Mediterranean, for purposes of transport of supplies to 
North Africa, was transferred to the German Admiral, Rome. This 
was done because conditions which formed the basis of the previous 
directive from the Naval Staff will not be in existence (see 
Radiogram 1313). (Cf. War Diary 7, 10, and 11 Dec.) 

According to the German Armistice Commission, France, the French 
assume that the steamer ST. DENIS was sunk by the British. They 
plan a submarine chase in the area off the Spanish and French 
coasts, bounded by the 5th Meridian on the east and the line be- 
tween 380 20' N and Cape Palos on the south (see Radiogram 2127). 
Three men of the ST. DENIS are missing. 

The German Naval Command, Italy has ordered all available German 
submarines to take their stations off Alexandria. This measure / 
is designed to keep British forces from leaving Alexandria and V 

interfering with the planned Italian operation of escorting two 
convoys to Tripoli and Benghazi. 

For the corresponding operational order from Operations Division, 
Naval Staff (l/Skl op 2123/1*1 Gkdos . Chefs.) see War Diary, Part C, 
Vol. XIV. 

See War Diary, Part B, Vol. IV for further report on the Atlantic 
and Mediterranean situation. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

See Situation Western Area for details on the enemy day- 
light raid on Brest. An enemy steamer (9,000 BRT) was damaged off 
Lisbon by armed long range reconnaissance. Twenty three of our 
planes laid mines in the Humber estuary during the night of 12 Dec. 
Seven planes went on armed sea reconnaissance missions. A convoy 
was attacked without success. 

2. Mediterranean Theater : 

Lively enemy air activity in the Crete-Greece area. 
80 to 100 high explosive bombs were dropped during enemy air raid 
on the airbase at Maleme (Crete). Only small damage was caused. 

3. Eastern Front : 

Normal air activity in support of Army operations. 



9862 

-120- 



12 Dec. 194l CONFIDENTIAL 

VIII. Warfare in the Mediterranean 

1 . Enemy Situation : 

Western Mediterranean : 

HERMIONE left Gibraltar for the Mediterranean during the 
night of 11 Dec. Otherwise no noteworthy changes in the number 
of ships lying in the harbor. Air reconnaissance reports that four 
destroyers were sighted during the afternoon proceeding eastward 45 
miles north of Cape Bougie. 

Central and Eastern Mediterranean : 

Air reconnaissance located the following ships in Malta! 
4 light cruisers (one of them in dock), 4 destroyers, and approxi- 
mately 12 merchantmen of various sizes. Radio monitors intercepted 
a report from British air reconnaissance stating that two merchant- 
men and three destroyers were sighted on a northeast course 30 miles 
south of Cape Stilo (Ionian Sea). According to Reuter the British 
Admiralty announced that a British submarine scored three torpedo 
hits on a cruiser which presumably sank later on. This was one of 
three cruisers proceeding southward in the central Mediterranean. 
A British Admiralty report of 8 Dec. states that British naval ves- 
sels shelled and sank an Italian vessel of 2,350 BRT in Pantellaria 
on 1 Dec. (steamer ADRIATICO? - see War Diary 1 Dec). The same 
report states that the transport steamer GLEN ROY which was badly 
damaged on 12 Nov. in an air raid off Tobruk arrived in the harbor. 
German air reconnaissance reported at noon that five ships were 
sighted 35 miles north of Alexandria. They were proceeding west- 
ward at high speed. 

2. Situation Italy : 

Enemy air raid on Argostoli on 11 Dec. Air raid on 
Benghazi the same evening. 

3. Own Situation: 

The 3rd PT Flotilla left Augusta at 1630 in accordance 
with orders issued by the German Naval Command, Italy, because 
enemy ships are suspected of leaving Malta. For the operational 
order from the German Naval Command, Italy, see War Diary, Part C, 
Vol. XIV. Entry made as per Operations Division, Naval Staff, 
l/Skl I op 2116/41 Gkdos. Chefs. 

4. Transport of Supplies to North Africa : 

The steamer GALITEA was sunk by an enemy submarine in 
the evening of 11 Dec. west of Cape Matapan. The GALITEA was 
armed with four anti-aircraft cannons and had five officers and 
528 men aboard. Detailed reports are still missing. The CADORNA 
arrived at noon of 11 Dec in Benghazi and left again a few hours 
later for Brindisi. Transport of supplies by submarines and tor- 
pedo boats continues. The cruisers BARDIANO and GIUSSANO left 
Palermo in the evening of 12 Dec and are scheduled to arrive in 



-121- 



9862 



12 Dec. 1941 CONFIDENTIAL 

Tripoli on 13 Dec. Two convoys are scheduled to bring goods to 
Tripoli and Benghazi within the next few days. They will be es- 
corted by heavy Italian naval forces and strong German and Italian 
air forces. 

5« Area Naval Group South : 

Aegean Sea ; 

Radiogram 06l4 received from Group Command South reports 
on the development of Milos. In accordance with the directives 
from the Naval Staff and the Armed Forces High Command, Operation- 
al Staff, Air (see War Diary 25 Nov.), Milos is to be a base and a 
port of refuge for ships travelling between Piraeus and Crete. 
The matter is in the hands of the Naval Staff, Quartermaster Di- 
vision. For the transportation of supplies from Bardia to the 
front, three more auxiliary sailing vessels have been designated 
by the Admiral, Aegean Sea, and three naval barges, which however 
are not available at the moment, by the German Naval Command, 
Italy. Assault boats are not suited for this purpose since their 
capacity is too small (see Radiogram 2100). 

Black Sea : 

Nothing to report. 



IX. Situation East Asia 

1. Enemy Situation : 

Press reports state that the U.S. Secretary of the Navy 
announced the sinking of the Japanese battleship HARUNA by the 
Army air forces off the northern Philippine coast. The Commander 
in Chief of the U.S. Far East Fleet, Admiral Hart, announced that 
a Japanese KONGO class battleship was bombed by Navy scout planes 
and badly damaged. A further report from the U.S. Navy Department 
states that strong Japanese forces again made a landing attempt 
on the northern coast of Luzon on 11 Dec. These attempts were 
successfully fought off at Aparri by determined resistance. Jap- 
anese air bombardment of the military and naval installations 
continues. The British Headquarters at Singapore report that 
2,000 men were rescued from the PRINCE OF WALES and REPULSE. Ad- 
miral Sir Thorn Philipps is missing. The British Admiralty reports 
that 130 officers and 2,200 men of the total 170 officers and 
2,755 men of the two battleships were rescued. Radio Daventry re- 
ports that Dutch naval vessels joined the British Far East Fleet. 
According to further Anglo-Saxon press and radio reports the Jap- 
anese landed at Kuantan, about halfway between Singapore and 
Kota Bharu, and the U.S. admit only one transport vessel sunk by 
enemy action. Japanese parachute troops are said to have landed 
at Ilagan air base on Luzon. Two British gunboats were sunk by 
an air raid near Hong Kong. Vice Admiral Sir Geoffrey Layton took 
over the command of the British Far East Fleet. 



-122- 



12 Dec. 1941 CONFIDENTIAL 

According to the report of the Japanese Naval Attache at Berlin 
concerning the distribution of British and U.S. air forces in the 
Far East, 400 British planes can be expected to be on Malaya. 
The Japanese estimate the distribution of U.S. naval forces as 
follovs: 1 heavy cruiser, 2 light cruisers, 15 destroyers and 25 
submarines in the Far East; 8 battleships, 2 carriers, 11 heavy 
cruisers, 8 light cruisers, 50 destroyers and 20 submarines in 
Hawaiian waters; 1 battleship, 1 heavy cruiser, 1 carrier, 10 
destroyers, and 10 submarines on the U.S. West Coast; 2 light 
cruisers, 5 destroyers, 12 submarines in the Panama Canal zone; 
8 battleships, 5 heavy cruisers, 4 carriers, 5 light cruisers, 70 
destroyers and 35 submarines in the Atlantic; 2 light cruisers 
and 3 destroyers in South America. 

5 battleships, including 2 of the latest type, 4 new light cruisers, 

2 carriers, and several destroyers are said to have been transferred 
from the Atlantic to the Pacific, and 15 submarines supposedly were 
transferred from Hawaii to the Far East. Japanese estimates of the 
losses suffered by the U.S. Hawaii forces are: 2 battleships sunk, 

3 badly damaged and one probably sunk; 4 light cruisers of newest 
type badly damaged. 

2. Situation Japan ; 

.' cording to the German Naval Attache at Tokyo, the oc- 
cupation of Kowloon on the Hong Kong Front is nearly completed, 
the pow&4. ; station has been destroyed and the city's water supply 
disrupted . 

On Luzon, Japanese troops penetrated 40 km inland without meet- 
ing resistance. Only U.S. submarines are still lying in Cavite. 
The cruisers are said to have withdrawn to Australia. Operations 
against Singapore are proceeding according to plan. All entrances 
to the Sea of Japan are effectively blocked and thus Vladivostok 
is inaccessible too. According to the Japanese Naval Attache at 
Berlin, Japanese Headquarters deny that the HARUNA was damaged. 
Only one light cruiser is said to have been slightly damaged in 
the Manila area, but not enough to interfere with its operation; 
one submarine chaser or minesweeper sunk, and another one damaged. 
202 enemy planes are said to have been shot down over the Philip- 
pines without a single Japanese loss. More Japanese troops land- 
ed on the southern coast of Luzon on 12 Dee- 

Further communiques from Japanese Headquarters published by the 
press state that Agana, the capital of Guam, has been occupied. 
One U.S. destroyer and a submarine were sunk at Manila and one 
transport vessel damaged. The U.S. -Hong Kong cable was cut. 
The Japanese Navy designates the successful operations off Hawaii 
and Malaya as "Naval Battle of Hawaii" and "Naval Battle off 
Malaya". 



-123- 



9662 



12 Dec. 19^1 CONFIDENTIAL 

X. Army Situation 

1. Russian Front : 

Southern Army Group : 

Strong enemy attacks primarily against the southern 
flank of the 17th Army under cover of fog. Only local attacks 
against the 1st Armored Army. 

Central Army Group : 

The enemy penetration northeast of Livny'was extended 
to the north. The transfer of fresh troops from the area east 
and northeast of Kharkov and the formation of a new Russian Army 
Staff Indicate that new offensives are planned for this sector. 
Northwest of Moscow and to both sides of Kalinin strong but in 
the main unsuccessful enemy attacks are continuing. 

Northern Army Group : 

West of Tikhvin the enemy is closely following our 
withdrawing forces. The enemy is reinforcing his Neva front. 
The XXXIV Army Corps withdrew to new western positions. 

2. Finnish and Norwegian Front : 
Situation substantially unchanged. 

3. North Africa : 

Enemy forces supported by tanks attacked our eastern 
Ain el Gazala positions on 11 Dec. but were repulsed. A with- 
drawal of the Italian Division from the eastern to a western 
position is scheduled for the night of 11 Dec. The enemy suc- 
ceeded in breaking into the line of the Italian Motorized Corps 
on 12 Dec. The situation was restored by the German Afrika 
Korps which also had to fight off enemy attacks on its front 
and flank. Enemy patrol activity was detected 75 km southeast 
of Syrte (Zafran) and kO km south of Agedabia. The region east 
of Derna is being cleared of supply depots according to plan. 



*#»»**♦*###»♦♦**#»*»*♦♦#* 



~12k- 9862 



CONFIDENTIAL 

13 Dec. 1941 

Items of Political Importance 

France: 

Vice Admiral Fenard, who was named Secretary General for Africa, 
is responsible solely to Admiral Darlan. 

Great Britain : 

The newspapers give indications that the formation of an Allied 
Supreme Council is under consideration composed of Britain, the 
United States, Russia, and perhaps also China. 

Turkey : 

The National Assembly passed a bill pertaining to the Turko- 
German Trade Agreement. The bill stipulates that Turkey will 
export nothing to Germany until corresponding imports from Ger- 
many and countries in the German Customs Union have arrived on 
Turkish soil. 

U.S.A .: 

Congress is drafting a law giving extraordinary powers to the 
President. This law also is to make it compulsory for all men 
between the ages of 18 and 65 to register for selective service, 
while all men between 19 and 45 will be called to active duty in 
the Armed Forces. 

Political Review No. 295? Paragraph 4-d, contains the message 
which Roosevelt sent to the Armed Forces in the middle of Novem- 
ber. He states that the impending war against Japan will prob- 
ably last for two or three months, while the ensuing war against 
Germany and Europe can last for ten or even twenty years. The 
Communications and Intelligence Division of the Naval Staff ex- 
presses fully justified doubts concerning this statement. 

Japan : 

A comprehensive report by the German Ambassador to Japan concern- 
ing the latest events in Japan, emphasizes the role of a strongly 
pro-American group and their intrigues in which persons still 
occupying important government positions participated. The re- 
port closes with ( the statement: "Japanese negotiation tactics 
made the United States the leader of the A B C D Powers. Japan 
recognized that any further procrastination on her part would 
be tantamount to renouncing her position as a great power. In 
view of these considerations the Japanese Armed Forces decided 
to wage war, and forced the issue." Full text of the report in 
Political Review No. 295* Paragraph 6-a. 

China: 

The Nanking Government transferred control of the Chinese Mari- 

* This should read 293, Tr.N. 



-125- 



13 Dec. 1941 CONFIDENTIAL 

time Customs Administration to the Japanese. 

This marks the official end of the International 
Chinese Maritime Customs Administration which 
■was established in I856. It was one of the most 
important pillars of the British position in the 
Far East. 



Special Items : 

The Fuehrer Issued a new directive concerning the consumption of 
metals. It provides that the Chief, Armed Forces High Command 
should allocate the nonferrous metals to the various branches of 
the Armed Forces in such a way that the supply will not run out 
even if the war should be of considerable duration. 

See War Diary, Part B, Vol. V, for the Fuehrer's directive and 
corresponding directive from the Naval Ordnance Division, Eco- 
nomic Section. Entry is made as per Operations Division, Naval 
Staff, 1/Skl 5^770/geh. 



Situation 13 Dec. 1941 

I. War in Foreign Waters 

1 . Enemy Situation : 

North Atlantic : 

British naval forces captured the Frefach steamer 
FORMIGNY and escorted her to Gibraltar. The U.S. Coast Guard 
seized the French liner NORMANDIE and took the crews off all 
French ships lying in U.S. harbors. 

South Atlantic : 

According to an Italian report three destroyers and 
two monitors of the TERROR class arrived at Punta Delgada on 
10 Dec. The U.S. steamer AMERICAN PRESS reported an air atr- 
tack off Puerto Rico on 13 Dec. and stated that it suspects 
that a U.S. Army plane was the attacker. The Naval Attache at 
Rio reports that oil depots at Para are under military guard. 
U.S. planes arrived in Para on 10 Dec. 

Pacific Ocean : 

The French Admiralty reports that new agreements 
were reached between French and Japanese authorities at Hanoi 
concerning the defense of Indo-China in view of the new situa- 
tion. The agreements emphasize French sovereignty in Indo- 



• 126- 9862 



1J> Dec. 19^1 CONFIDENTIAL 

China. Press reports state that eleven U.S. naval vessels have 
anchored off Callao. U.S. -Mexican military agreements provide 
for reciprocal free passage of troops, and use of Mexican air 
bases by U.S. planes. 

The Naval Attache at. Rio reports that the petroleum harbor and 
dock installations in Santos have been occupied by the Brazilian 
Army since 12 Dec. 

2. Ovn Situation : 

In view of the military occupation of Santos harbor, 
the Naval Attache at Rio asks for authorization to destroy the 
engines of the German steamers WINDHUK and MONTEVIDEO. 

The Naval Staff thereupon orders that the ships be kept from 
falling into enemy hands by destroying not only the motors, but 
as completely as feasible the entire ships (see Radiogram 2050). 

The Commanding Admiral, Submarines is directed to send the Naval 
Staff Officer from ship "16", who is homeward bound aboard sub- 
marine U "68", to the Naval Staff for his report. 

Reports about the enemy situation sent out by Radiograms 193^ 
and 2224. 



II. Situation West Area 

1. Enemy Situation ; 

Air reconnaissance reported sighting a convoy of fif- 
teen steamers south of Milford, but no course was given. Radio 
monitoring intercepted directions issued from Plymouth to a 
British plane stating that the "object" is located 140 miles north- 
west of Cape Vilano and a report to another plane that the "object" 
was hit 60 miles off Cape Vilano. Radio intelligence deciphered a 
report from the British Assistant Attache at Madrid to the Intelli- 
gence Service containing a perhaps rather useful report from an 
alleged agent "Frutos French" who just arrived from Cherbourg: 

a. The arsenal at Cherbourg is so badly damaged that only small 
jobs can be handled there. As a result, only very few submarines 
use that harbor. 

b. Reliable sources from Brest report that SCHARNHORST and 
ONEISENAU are badly damaged and unfit for action. 

c. Work on the PRINZ EUGEN is continuing day and night. The 
ship will shortly be ready for action. 

2. Own Situation : 
Atlantic Coast: 



-127- 9862 



13 Dec. 1941 CONFIDENTIAL 

Group Command West orders commencement of operations for 
departure of ship "10" from Flushing. Enemy air activity near 
Brest at 1750. It was observed that one mine was laid. One enemy 
plane was shot down. 

Channel Coast : 

Nothing to report. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Lively enemy reconnaissance activity in direction of 
the southern Norwegian coast and German Bight in the afternoon, 
diminishing towards evening. Reports about sighting three Ger- 
man submarines off Ekeroewere intercepted. I 

Own Situation : 

Enemy air raids on Flushing and Ijmuiden in the after- 
noon. No damage was reported. Bad weather interfered with the 
westbound convoys and minesweeping operations. 

2. Norway : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

The 8th Destroyer Flotilla with destroyers Z "23" to 
"27" and the TANGA arrived in Kirkenes in the afternoon of 12 
Dec. The 8th PT Flotilla with the LUEDERITZ anchored at 
Loedingen in the evening of 13 Dec. One merchantman and the 
steamer MILOS ran aground. 

The Commanding Admiral, Norway expresses his stand on the sink- 
ing of the steamer STEINBECK by submarine U "134" (see War Diary 
12 Dec.) in Radiogram 1915* The message contains a preliminary 
resume of the neglects and grave errors which led to the tragic 
accident. 

Group Command North sends orders by Radiograms 1242 and 1451 to 
check all measures that have been taken in order to avoid con- 
fusing our own vessels with those of the enemy, and to investi- 
gate the organizational setup with this in mind. Radiogram 1310 
from the Commanding Admiral, Norway reports mine danger areas in 
northern Norway between Fugloe-Soroe and Vandoe-Fugloe. 



-128- 9862 



• 



13 Dec. 19^1 CONFIDENTIA L 

The Uaval Staff, Hydrographic and Meteorological Division is 
charged with immediate publication of these danger areas by radio 
and press. 

Reports so far received by the Naval Staff do not 
indicate whether or not the mines have as yet been 
laid. The mine barrage is intended to protect that 
part of the coastal route which is not protected by 
small islands. 

Though familiar with the escort vessel situation , Group Command 
North forwards with endorsement the request from Commanding Ad- 
miral, Norway for allocation of another patrol and reconnaissance 
flotilla consisting of at least eight vessels. These should be 
equipped with 88 mm. cannons, listening devices, and be capable 
of at least 8 knots. At present the number of escort vessels is 
so small that convoys cannot be escorted to the extent as hereto- 
fore. Approximately fifty merchantmen are lying in the Tromsoe 
area at this time and this number increases on an average of 
eleven ships a week. The eight coastal patrol vessels available 
cannot escort more than six or eight of these merchantmen to and 
from Kirkenes each week. The minesweeper and subchaser flotillas 
are so urgently needed elsewhere that they cannot be diverted to 
escort duty (see Radiogram 1240). To relieve the situation, it 
is planned first to transfer the 4th Minesweeper Flotilla, pro- 
vided this will not excessively slow up the minesweeping opera- 
tions north of Dagoe. Group Command North is afraid that this 
will be the case however, because the pinnaces can be used for 
minesweeping only in calm seas, since the spray causes excessive 
icing of the small craft. (See Radiogram 1236.) 

* 

Radiogram 1818 answers the inquiry from Group Command North to 
the effect that the 3rd Torpedo Boat Flotilla will be detailed 
to convoy escort duty in the territory of Group Command North 
and the Admiral, Norway as soon as the flotilla is ready for 
action. The Naval Staff agrees to use the 3rd Torpedo Boat 
Flotilla for mining operations in the Skagerrak as far as possi- 
ble. 



IV. Skagerrak; Baltic Sea Entrances; Baltic Sea ; 
Nothing to report. 



V. Submarine Warfare 



1. Enemy Situation ; 



Reconnaissance by the Fleet Commander, Atlantic, lo- 
cated several merchantmen in the mouth of the Tejo. A U.S. 



-129- 



13 Dec. 1941 CONFIDENTIAL 

radio station reported a German submarine near Fire Island Light- 
ship on 13 Dec. 

2. Ovn Situation ; 

Submarine U "453" sank the Spanish tanker BADALONA in 
the western Mediterranean and U "431" torpedoed an enemy tanker 
in the eastern Mediterranean. See War Diary, Part B, Vol. IV for 
further details. The German Armistice Commission, France noti- 
fied the French that it was a German submarine which sank the 
steamer ST. DENIS. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

An aerial torpedo attack by the 4o6th Bomber Group 
sank an enemy destroyer south of Milford in the night of 12 Dec. £ 

Normal air activities by our Air Force during the day. Four en- 
emy planes were shot down by our pursuit planes and six by anti- 
aircraft artillery. In the evening 25 planes flew a mine-laying 
mission in the Huuber estuary, and two of our planes attacked 
ships, but without success. No enemy air raids on the Reich 
region. 

2. Mediterranean Theater ; 

Successful air action in the battle for Libya and over 
Tobruk. For further details see Daily Situation. 

The Chief of the Japanese Admiralty Staff told the Naval Attache, 
Tokyo that he hopes that attacks on the Suez Canal will increase 
now that British ships are to be transferred from the Mediterra- 
nean to the Pacific and in view of the situation in Russia. The 
German Naval Staff believes it is important to mine the Suez 
Canal in order to show proof of German- Japanese cooperation. The 
Armed Forces High Command, Operations Staff and the Commander in 
Chief, Air, Operations Staff are informed of this opinion by 
Radiogram 1551. ( 

3. Eastern Front ; 

Air support for the Army. 



VII. Warfare in the Mediterranean 
1. Enemy Situation ; 

Western Mediterranean ; 

One British steamer with two landing craft on her fore- 



-I3O- 9862 



% 



13 Dec. 19*U CONFIDE NTIAL 

deck arrived at Gibraltar on 12 Dec. A convoy of nine vessels 
and a DIDO class cruiser, probably the HERMIONE, arrived in Gi- 
braltar on 13 Dec. from direction unknown. This increases the 
number of ships in that harbor to 66 merchantmen and 12 tankers. 

Central and Eastern Mediterranean : 

Italian destroyers sighted three British destroyers off 
Cape Bon at 0300. The Italian convoy including the DEL GRECO and 
FILZI was sighted and reported on 12 Dec. by British air recon- 
naissance in the latitude of Cape Spartivento on northerly course. 
Radio station Malta was heard relaying the message. British sur- 
face forces were located in the morning of 13 Dec. on easterly 
course 20 miles north of Malta. Air reconnaissance located several 
steamers in the eastern Mediterranean near the Marmarica coast and 
off Alexandria. According to radio monitoring reports at least 
three cruisers and two groups of destroyers were operating in that 
area. The British battleships most likely were also at sea in the 
afternoon. Radio monitoring reports that the British steamer 
MYRIEL (3,560 BRT) was torpedoed between Alexandria and Tobruk. 
After this, another steamer returned to Alexandria under pursuit 
cover. 

2 . Own Situation : 

The 3rd PT Flotilla arrived in Augusta at 0615. No 
reports of success. 

3. Situation Italy : 

Larger parts of the Italian fleet left in the after- 
noon of 13 Dec. to carry out convoy escort duty as planned. 

The Italian cruisers BARBIANO and GIDSSANO en route from Palermo 
to Tripoli with 700 tons of food stuffs and ammunition aboard were 
set afire by British destroyers at about 0400. Supermarina re- 
ports that the cruisers must be considered a total loss. Accord- 
ing to Reuter the attack was carried out by three British and one 
Dutch destroyers, which are also said to have sunk one torpedo 
boat and one PT boat. No military damage was caused by enemy air 
raids on Augusta, Patras, and Cotrone. 

4. Transport of Supplies to North Africa : 

The steamers DEL GRECO and FILZI, loaded with supplies 
for North Africa, were sunk by an enemy submarine south of Taran- 
to. The supply ships from Italy did not arrive in North African 
ports. Three transport submarines and one torpedo boat are ex- 
pected to arrive In Bardia. In view of the enemy situation it 
is feared that the two naval transport squadrons 52 and 53 can- 
not be sent across as planned. 

5. Area Naval Group South : 
Aegean Sea : 



-131- 9862 



13 Dec. 19^1 CONFIDENTIAL 



Enemy Situat ion: 

Italian agents report that three Russian tankers, which 
are at present lying in the Bosporus, are about to sail into the 
Aegean Sea. 

Own Situation : 

Shuttle steamer "P III" was sunk by an enemy submarine 
by gunfire on her trip from Suda to Iraklion (Candia). Three 
motor sailships left for Bardia loaded with supplies. 

Black Sea : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

The submarine DELFINUL cancelled her mission and re- 
turned to port. Transport of supplies to the Ukraine was post- 
poned to 16 or 17 Dec. According to the Rumanian Naval Mission, 
the Rumanian Naval Staff believes that it is both undesirable 
and unnecessary to reduce the number of German Army and Navy 
personnel assigned to coastal defense in order to cut down the 
need for Rumanian currency. The Rumanian Chief of Staff was not 
thinking of front line troops when he made his request for a re- 
duction of German troops in Rumania. For reasons pertaining to 
personnel and training it is impossible for Rumania to take over 
German Army and Navy coastal batteries anytime soon. There are 
no objections to the withdrawal of the German 688th Reserve Bat- 
talion. (See Radiogram 1200.) 

In view of the fact that the situation at the Southern Army Group 
has changed and there is a new commanding officer, the Naval 
Staff urges a personal conference between the Army and Navy Group 
Commands, South. This Is desirable in order to clarify to what 
extent the Navy can assist the Army, and to synchronize future 
operations. 

6. Situation France : 

See War Diary, Part C, Vol. XVI, for the French Dele- 
gation's report of location of French Naval Units on 1 Dec. 
19^1 as given to the German Armistice Commission, France. 



VIII. Situation East Asia 

1. Enemy Situation : 

U.S. Admiral Hart reports that a battle between the 
U.S. Asiatic Squadron and Japanese naval forces ended at sun- 



•132- 



13 Dec. 1941 CONFIDENTIAL 

down when the Japanese withdrew. The U.S. Navy Department reports 
that the Japanese occupation of Guam was not yet confirmed in 
Washington at noon 12 Dec. A British report states that the 
OKLAHOMA capsized and the TENNESSEE was set afire during the air 
raid on Pearl Harbor. One destroyer exploded and a minelayer 
was set afire. An Italian report states that one destroyer, one 
submarine, and another vessel were damaged by a Japanese bomber 
attack on Cavite, and that one U.S. merchant ship was sunk by 
Japanese submarine attack. Domei reports that the cruiser EDIN- 
BURGH became the flag ship of the British Far East forces. 

2. Situation Japan : 

The Japanese Navy reports that the ARIZONA was also 
sunk in the naval battle of Hawaii. According to the Japanese 
Naval Attache at Berlin, the Japanese Navy knows nothing about 
the sinking of another British battleship in the battle of Malaya. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

An enemy attack on the northern flank of the 1st 
Armored Army collapsed in our defensive fire. The center of the 
enemy attacks on the 17th Army was directed at the sector south 
of Popasnaya. The enemy succeeded in penetrating our lines there 
and we withdrew.. A further enemy breakthrough is to be prevented 
by bringing up all reserves within reach. 

Central Army Group : 

The enemy followed and harrassed the withdrawing parts 
of the Army Group and apparently mustered all available strength 
in order to widen the breakthrough at Livny. According to prison- 
ers of war, the enemy intends to let the group which broke 
through our lines roll up our front to the north and advance up 
to the Yefremov area. On the 2nd Army sector the 45th and 143rd 
Infantry Divisions have orders to get through the enemy lines in 
a western direction. The newly brought up 56th Infantry Division 
engaged the enemy spearheads in order to relieve the situation. 
Withdrawal of the divisions of the XXXV Army Corps proceeding ac- 
cording to plan and without much interference. The enemy contin- 
ued his attacks on the 2nd Armored Army and the 4th Army. The 
withdrawal of the V Army Corps Is hampered by lack of fuel. The 
situation is critical. Less activity on the 9th Army sector. 

Northern Army Group : 

New enemy forces are under way along the line Vologda- 
Tikhvin. Enemy pressure on the 1 6th Army continues. The enemy 



-133- 



9862 



1? Dec. 1941 CONFIDENTIAL 

succeeded in penetrating our lines on a divisional sector of the 
15th Army but was pushed back by means of a counterattack. 

2. Finnish and Norwegian Front : 

The Karelian Army's operations at Povyenets are success- 
ful. Otherwise the situation is unchanged. 

3. North Africa : 

Our defense of the Bardia-Cirene-Halfaya area continues 
Enemy attacks on the El Gazala position were repulsed. German 
casualties from 19 Nov. to 2 Dec: 198 officers, 4,522 non-com- 
missioned officers and men. Of these, 52 officers and 550 non- 
commissioned officers and men were killed. 



»**♦*»**#*♦»♦*»♦##***♦»*♦ 



-134- 9862 



CONFIDENTIAL 

14 Dec. 19^1 

Items of Political Importance 

France: 

The French Government Informed the U.S., Britain and Japan that 
France will remain neutral in the East Asia conflict. The al- 
leged general mobilization in French Indo-China is denied. It 
is rumored that the French Government is willing to break off 
diplomatic relations with the U.S., should Germany desire such 
action. 

Establishment of an Italian mission at Vichy was agreed upon 
during the Darlan-Ciano meeting. French shipments of raw mater- 
ials to Italy are also said to have been discussed. The Italians 
have consented to free French prisoners of war (about 200). 

The German Government has been informed by the French Government 
that the latter is considering conferring with the British Govern- 
ment about letting Britain use the Jibuti harbors and railroad in 
return for lifting the blockade on French Somaliland. Only lim- 
ited British transit under Red Cross supervision is said to be 
under consideration. 

Great Britain : 

The press reports that the Allies are preparing a joint declara- 
tion against the signing of separate peace treaties with the 
Axis Powers. This declaration is to be made public after the 
Russian declaration of war on Japan, which may be expected sooner 
or later. Furthermore, a new Allied program for allocation of 
war materiel is to be worked out. 

Eire: 

On the occasion of the United States' entry into the war, De 
Valera declared that Eire will be benevolently neutral . The 
large number of American citizens of Irish descent explains 
this slight change in Eire's attitude. 

U.S.S.R . : 

Litvinov stated in Washington that Japan is the common enemy of 
all the Allies. The Russian spring offensive has already begun. 
While Britain has never been asked to launch a premature mili- 
tary offensive, it would be appreciated if Allied troops were 
put into action on Russian soil. The new situation in the Pacific 
would at worst only make it impossible to use Vladivostok as a 
port of entry for Allied shipments. While the Russian press and 
radio remained neutral in the American- Japanese conflict up to 
12 Dec, the newspaper Pravda since that date has begun to attack 
Japan quite openly. 



-155- 



14 Dec. 1941 CONFIDENTIAL 

U.S.A . : 

The U.S. State Department announces that the Swedish liner KUNGS- 
HOLM (20,000 BRT) has been seized by the U.S. Government. The 
reason given for this action is that the ship cannot continue to 
sail, and under those circumstances dock fees would become unneces- 
sarily high. 

Japan : 

The Dutch Government in Exile has now forwarded a declaration of 
war to Japan. 



Special Items ; 

I. In view of the developments in the Pacific which came as a 
surprise to the Anglo-Saxon powers, it seems highly possible that 
the U.S. Government will consider it necessary to extend its 
strategic influence to the Azores, Cape Verde and French West 
Africa, the direction of least resistance, in order to gain quick 
results. This again increases the need for Franco-German collabo- 
ration. For the information of the Armed Forces High Command the 
Naval Staff therefore sends the Naval Liaison Officer at the Armed 
Forces High Command a detailed statement concerning the necessity 
and possibilities of France's defense of her African Colonies " 
against Britain and the U.S .. See War Diary, Part Q, Vol. XVI for 
a copy of the text. 

II. The Swedish Naval Attache at Berlin forwarded figures on the 
transportation of Germans on furlough from Norway to Germany and 
back via the Swedish railroads, arid other Swedish services for 
Germany and Finland. These figures show that between July 1940 
and 1 Nov. 1941, on the average about 1,400 members of the German 
Armed Forces per day were transported to Norway via Sweden, as 
well as 1,000 to 1,500 loaded freight cars per month. Approxi- 
mately 75,000 tons of German Armed Forces' materiel was transported 
to Haparanda via Sweden during this time. More than 70 German 
ships of approximately 420,000 BRT were convoyed through Swedish 
territorial waters by Swedish air and naval forces since 22 June 
194l without accidents. The German-Swedish trade exchange rose 

in proportion with the increase in the clearing sum from 800,000,000 
In 1938 to 1,800,000,000 Swedish crowns in 1941. Swedish ships 
have had to transport the bulk of these goods. The Swedes insti- 
tuted measures to improve the ore shipping facilities from Narvik 
and Lulea so that the daily export via Lulea sometimes rose as 
high as 45,000 tons. Sweden delivered to Finland approximately 
50,000 tons of foodstuffs and 13,500,000 crowns worth of war ma- 
teriel and granted credits of about 300,000,000 crowns. 

Britain no doubt has been informed about the vol- 
ume of these supply movements just as well as we. 
However, it must be admitted that these not in- 
considerable Swedish accomplishments from the point 



-156- 



14 Dec. 1941 CONFIDENTIAL 

of view of our warfare fully justify our consenting 
to the continuation of the so-called Goeteborg 
traffic (Swedish ships sailing to South America, 
Tr . N . ) . 



Situation 14 Dec. 1941 

I. War in Foreign Waters 

1 . Enemy Situation ; 

North Atlantic : 

The RAMILLIES and the destroyers DOUGLAS and BROKE are 
at sea near Iceland. According to Spanish reports a convoy con- 
sisting of approximately J>0 ships left Gibraltar in the afternoon 
in westerly direction. UNICORN is among the escort vessels. 

South Atlantic : 

The German Naval Attache at Tokyo reports that Trinidad 
is the meeting place for convoys in the West Indies. The tankers 
and bauxite transport ships assemble there. The harbor of Port 
of Spain is protected by air and naval forces. Between 20 and 50 
ships are in the harbor daily. German nationals have been in- 
terned on the leper island of Chacachacare until they can be 
transported to Canada. 

Pacific Ocean : 

A directive from Cavite orders all U.S. ships bound 
for Manila to go to Borneo, Java or Australia until further notice 
The Clearwater radio station directs all merchant ships in the Pa- 
cific to by-pass Oahu island at night by at least 45 miles, and 
issues a submarine warning for the waters between Hawaii and the 
West Coast. 

2. Own Situation ; 

The blockade runner KULMERLAND was located by Japanese 
naval forces on 12 Dec. near the Bonin Islands. 

Reports on the enemy situation by Radiogram l6l6. 

On 12 Dec. the Naval Staff gave Group Command West permission 
for BENNO to sail. 



II. Situation West Area 



-137- 



14 Dec. 194l CONFIDENTIAL 

1. Enemy Situation ; 
Nothing to report. 

2. Own Situation : 

Atlantic Coast : 

The commanding officer of M "4403" was wounded on 13 
Dec. during an enemy air raid on our ore transports from Bilbao. 
The Gironde has been closed to shipping because air-laid mines 
are suspected there. 

Channel Coast : 

The first day of the transfer of ship "10" went off 
according to plan. Departure from the intermediate port Cher- 
bourg was postponed for twenty four hours. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Convoy FS 71 anchored off the Thames and is scheduled 
for arrival on 15 Dec. A small British merchantman sank on 8 
Dec. off Cromer after hitting a mine. 

Own Situation : 

Nothing special to report. 

Group Command North reported on 10 Dec. that the commander of 
pursuit planes for the Holland-Ruhr region will no longer be able 
to continue to furnish the requested air escorts for the Navy be- 
ginning 10 Dec, since a considerable number of his planes have 
been transferred. Alarm starts are only possible in the area from 
The Hague to Helder and then only in the most urgent instances. 
However, Group Command North cannot do without pursuit cover. 

A corresponding request from the Naval Staff is sent to the Com- 
mander in Chief, Air. 

2. Norway : 

Enemy Situation : 

Air reconnaissance reports that two ships of approxi- 
mately 4,000 BRT each are lying in Kern harbor. The harbor and 
the Gulf of Kandalaksha are frozen over. A navigational channel 
in the ice can be seen. The presence of a submarine in the 
Varanger Fjord leads us to suspect mine-laying operations there. 



-I38- 9862 



# 



14 Dec. 19^1 CONFIDENTIAL 

From monitoring radio telephone conversations it was learned that 
the point of rendezvous for British and Russian submarines is 15 
miles north of Nordkyn. 

Own Situation ; 

The 8th Destroyer Flotilla reports that mines were de- 
livered at Kirkenes. The 3rd Minesweeper Flotilla was given the 
task of sweeping the entrance to the Varanger Fjord. The Norwe- 
gian coastal steamer TOPAS (142 BRT) was sunk by enemy bombing 
northwest of Haugesund. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea : 

The Finnish flag was hoisted over Hogland. 

The fire aboard the floating naval quarters of the 25th Submarine 
Flotilla LOFJORD in Neufahrwasser, reportedly caused by negli- 
gence, has not been extinguished so far in spite of the fact that 
all available extinguishing devices were used. The ship is there- 
fore burning out. There are 28 dead (among them two submarine 
commanders, one chief engineer and five gunnery and mining offi- 
cers) or missing, and eleven badly wounded (see Radiogram 1500). 

These fires aboard floating quarters must be pre- 
vented at all cost. The watch and security service 
must be intensified. The Naval Staff, Quartermas- 
ter Division and the Naval Staff, Submarine Section 
will take further measures. 



V. Submarine Warfare 

1. Enemy Situation ; 

A surfaced submarine attacked the British tanker 
CONFIDENCE (8,494 BRT) about 300 miles west of Rockall. It 
cannot have been one of our submarines. Air patrols reported 
sighting several submarines in the Gibraltar area. The convoy 
leaving Gibraltar, probably HG 77, consists of 32 vessels, 
which are escorted by UNICORN, 10 corvettes, 5 gunboats and 3 
destroyers. This constitutes a remarkably strong escort. 

2. Own Situation ; 

See War Diary, Part B, Vol. IV for reports on submarine 
operations and successes in the Atlantic and Mediterranean, es- 
pecially about the sinking of a British cruiser off Alexandria 
by submarine U "557". See War Diary, Part C, Vol. IV for obser- 
vations by the Commanding Admiral of Submarines on the submarine 



\ 

9662 



-139- 



14 Dec. 1941 CONFIDENTIAL 

situation of 11 Dec. Entry made as per Operations Division, Na- 
val Staff, l/Skl op. 2112/41, Gkdos. Chefs. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 
Nothing to report. 

2. Mediterranean Theater : 

Fifteen Ju 88' s attacked a British naval force consist- 
ing of one battleship, two cruisers and nine destroyers "but un- 
fortunately without success. See Enemy Situation, Mediterranean 
for further reconnaissance reports. 

3. Eastern Front : 

Normal air support of the Army concentrating on rail 
communications . 

4. Organization : 

The Fleet Command asks approval of its request to 
transfer Squadron 1/196 from Stavanger Sola back to the Western 
Area. The squadron was transferred under option of recall to the 
Air Force Commander, North, where it is at present, and it is 
planned to use it on shipboard from the middle of January on. 
(See Radiogram 0830.) The Naval Staff sends a corresponding re- 
quest to the Air Forces High Command, Fleet Staff. 



VII. Warfare in the Mediterranean 

1 . Enemy Situation : 

Western Mediterranean : 

Nothing to report. 

Central and Eastern Mediterranean : 

Italian reconnaissance reports that an enemy transport 
landed troops northwest of Ras Azzaz, i.e. east of our own posi- 
tions. Italian radio monitoring states that British battleships 
and the Malta Group probably were at sea on 13 Dec. A strong 
enemy naval force was located by aerial reconnaissance in the sea 
area north of Ras Azzaz and was tracked continuously. This enemy 
force presumably was for the protection of the landing operation. 
Reports as to the strength of the force varied, ranging from one 
to three battleships or two to three cruisers with a correspond- 



-140- 'a 62 



# 



14 Dec. 19^1 CONFIDENTIAL 

ing number of destroyers. They were reported on northwesterly 
course until 1300 and from then on southeasterly. Besides this 
strong naval force, another naval force consisting of one cruiser, 
three destroyers and two submarine chasers was sighted off Marsa 
Matruh. As far as could be observed under poor visibility con- 
ditions one cruiser, three destroyers and several steamers were 
lying in Malta in the morning. 

2. Own Situation : 

The arrival of the 3rd PT Flotilla in Augusta on 13 
Dec, reported by the German Naval Command, Italy, was obviously 
an error, since the night of 13 Dee. the same Command ordered the 
flotilla to turn back if no target was found by 0300, and there- 
after a report of arrival was made on 14 Dec, 0930. The flotilla 
sighted nothing. 

, 3. Situation Italy ; 

Nothing to report. 

4 . Transport of Supplies to North Africa : 

No ships with supplies from Greece or Italy arrived in 
North African ports on 14 Dec. The torpedo boat and the three 
transport submarines also did not reach their ports of destina- 
tion on that day. The scheduled large supply convoys were divided 
into three sections which left according to plan on 13 Dec. and 
14 Dec. under strong air and naval protection. Convoy No. 3 con-" 
sisted of the steamers DEL GRECO and FILZI, the sinking of which 
was reported off Taranto on 13 Dec. (see War Diary 13 Dec). 
Convoy3Nos. 1 and 2 (No. 1: Steamers PISAM, MONGINEVRO, NAPOLI. 
No. 2: Steamers ANKARA, and CAPO D' ORSO) returned to port on 14 
Dec. in view of the enemy situation. The escort and security 
forces evidently turned back too. No accurate reports are avail- 
able so far. See War 'Diary, Part C, Vol. XIII for the report 
from the German Naval Command, Italy concerning the plan for exe- 
cution of the mission. Entry made as per Operations Division, 
Naval Staff, l/Skl op. 2117/41 Gkdos. Chefs. 

5. Area Naval Group South : 
Aegean Sea : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

A submarine unsuccessfully attacked the net layer 
PANIGAGLIA and her escort on their way to Suda. We may presume 
that the attacker was damaged or even sunk by the depth charges 
released. 

Black Sea: 



-141- 9862 



14 Dec. 19^1 - CONFIDENTIAL 

Enemy Situation : 

The German Naval Attache at Istanbul reports that the 
Russians will deliver a total of 80,000 tons of fuel to the Turks. 
The tankers which are scheduled to return to Batum to haul further 
loads were still lying off Istanbul on 13 Dec. Only one single 
Russian tugboat with two tankers has so far been sighted between 
Trebizond and Batum. 

In view of this situation, Group Command South deems it unneces- 
sary to assign additional submarines in order to prevent Russian 
tankers from leaving through the Dardanelles In southerly direc- 
tion. 

The XLIV Army Corps reports that four large transport vessels were 
sighted leaving Sevastopol in the morning. 

Own Situation ; 

The steamer CARPATI is no longer icebound and has de- 
parted for Nikolayev with the steamer TISSA. Otherwise nothing 
to report. 

6. Situation France : 

The destroyer VAUQUELIN and the submarines ARGONAUTE 
and DIANE left for Oran on 13 Dec. Thus all the reinforcements 
granted are under way. 



VIII. Situation East Asia : 

Nothing to add to the reports appearing in the press. 



IX.. Army Situation 

1. Russian Front : 

Southern Army Group : 

No change In the Crimean situation. Only little activ- 
ity on the sector of the 1st Armored Army in view of bad road 
conditions. The force of the enemy attacks also diminished in 
the 17th Army Sector. The enemy penetration at Popasnaya was re- 
paired and heavy losses were inflicted on the enemy. 

Central Army Group : 

The situation on the sector of the 45th Infantry Di- 
vision is not yet clear. Withdrawal of the positions west of 
Yefremov as well as along the line Volovo-Dyedilovo proceeded 



-142- 



14 Dec. 19^1 CONFIDENTIAL 

according to plan. Isolated attacks on further divisions of the 
2nd Army were repulsed. Some enemy attacks on the 4th Army sec- 
tor, mainly on the divisions of the 3rd and 4th Armored Group 
west of Kursk were repulsed and others are still in progress. 
Kalinin which was heavily attacked by enemy air forces, is 
scheduled for evacuation during the night of 14 Dec. 

Northern Army Group : 

Enemy attacks south of Lake Ilmen on both sides of 
Volkhov and an advance from Leningrad were repulsed. 

2. Finnish and Norwegian Front ; 

The II Finnish Army Corps and the 1st Jaeger Brigade . 
succeeded in establishing a bridgehead across the White Sea Canal 
at Povyenets. The railroad Maselskaya-Velikaya Guba was crossed. 

5. North Africa : 

The enemy achieved only small territorial gains in an 
attack on the Gazala position. Our reconnaissance located a con- 
centration of about 2,000 to 3,000 combat vehicles, among them 
tanks, in the area south of Sidi Barani. These are no doubt rein- 
forcements newly brought up from the Middle East. 



**♦**#*♦*************#»#* 



-14> 



9862 



CONFIDENTIAL ,. 

15 Dec. 19*U 

Items of Political Importance 

Vatican ; 

Authoritative Vatican circles frankly criticize Roosevelt's at- 
titude, holding it responsible for the spreading of the var. 

* 

U.S.S.R . : 

United Press reports that conferences are under way in London at 
which an Anglo-Russian agreement is being discussed. The agree- 
ment is to include a full military alliance, transfer of British 
naval forces to a sector of the Soviet Union, and opening of a 
second European front. 

Turkey ; 

A report from the German Ambassador states that Japan 1 s entry 
into the war and her astonishing initial successes have caused 
grave concern in influential Turkish circles. In Foreign Ministry 
circles the German situation Is regarded as considerably improved. 

U.S.A .; 

While the American people were not quite ready for a European war, 
Roosevelt may count on their solid support in the war against 
Japan. The character of the Japanese surprise attack will no 
doubt cause a strong flare-up of national consciousness and thus 
make any propaganda on the part of the U.S. Government superfluous. 
The war against Japan means a concentration of all energy on the 
armament of the U.S. Armed Forces themselves, with consequent limi- 
tation of the aid extended to foreign countries; a transfer of main 
U.S. activity from the Atlantic to the Pacific in so far as U.S. 
commitments on Iceland permit; institution of convoys in the Pa- 
cific; the closing of Vladivostok. It also jeopardizes certain 
raw material imports. The heavy losses suffered by the Anglo-Saxon 
fleet have caused great consternation in the Government and Con- 
gress. The press points out the discrepancy between the pitiful 
state of affairs and the braggadocio that preceded it. There is 
considerable anxiety in the Eastern States (? Tr.N.), caused by 
fear of Japanese air raids. 

Argentina ; J$o] 

According to diplomatic reports the problem of fortifying the 
Straits of Magellan is to be considered without haste. ^-Fortifi- 
cation would be in violation of treaties concluded in l^|8l, which 
neutralized the Straits for all time to come and assured free 
passage for all ships. The question of the old treaty was prob- 
ably raised for the sole purpose of gaining some concessions from 
the United States. 



-144- 



♦t 



15 Dec. 1941 coufidp:ntial 

South America : 

Brazilian diplomatic circles are of the opinion that the Latin 
American countries will experience a letup in U.S. pressure as 
a result of the American- Japanese war, and that this will be 
beneficial. The coming conference at Rio de Janeiro will hard- 
ly result in more than a platonic declaration of sympathy for Pan 
American interests and be of little practical value to the U.S.. 
Recently it has been established that Uruguay declared war neither 
on Japan nor Germany. However, since Cuba and Guateiiala declared 
war, all the small Central American states are to be regarded as 
hostile. 

China: 

The Japanese-inspired Chinese press in Shanghai has already 
launched an attack on the white race. German nationals in Chung- 
king China will not be interned . 

Japan : 

The official title of the present conflict is: "The War of Great- 
er East Asia". 



Conference on the Situation with the Chief, Naval Staff . 

I. After close observation of the Mediterranean situation it 
is impossible not to be concerned about the possibility of enemy 
action against Crete. Developments must be followed carefully 
in order to permit timely intervention by submarines, should 
conditions warrant it. 

"II. The Chief, Naval Staff, Quartermaster Division reports on 
the production of engines for PT boats. If it proceeds accord- 
ing to plan there will be a 50$ reserve in PT boat engines by 
this coming summer. An additional report is made on the procure- 
ment of iron for the construction of transport vessels. It be- 
comes unnecessary to send Staatsrat Blohm on his mission since 
at his suggestion the Deutsche Werft has been commissioned to 
construct the 1,200 ton vessels also in foreign shipyards, and 
the Minister of Transportation has done everything possible to 
launch the building program of new merchant vessels. The num- 
ber of ships built will depend exclusively on whether the iron 
quota which the Fuehrer granted to the Chief, Naval Staff on 
12 Dec. will actually be allocated. 

III. On the basis of the minutes, the Chief, Naval Staff reports 
on the decisions made by the Fuehrer at the conference on 12 
Dec. (compare War Diary 12 Dec). 



9862 

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15 Dec. 19 J CC 

Situation 15 Dec. 19*11 

I. War in Foreign Waters 

1. Enemy Situation : 

North Atlantic : 

RAMILLIES vas located on a north- south route, presum- 
ably with convoy WS 14. ROYAL SOVEREIGN, which escorted' convoy 
WS 12 Z, was located in the Freetown area on 13 Dec. .-.ccording 
to documents available to the Japanese Navy, the following Brit- 
ish ships are in recair In U.S. ports: Carriers PORMIDA and 
ILLUSTRIOUS; battleships WARSPITE and MALAYA, the latter doubt- 
ful; cruisers EIDO, ORION, LIVERPOOL, NEWCASTLE, MANCHT 
destroyers BIRMINGHAM, NASTURTIUM, FIREDRAKE; corvette PRIMROJ 
auxiliary cruisers MINESTEAUS and CALIFORNIA. According to re- 
putedly reliable sources, Britain and the U.S. intend to occupy 
the Azores, Cape Verde and Dakar in the near future. 

It is entirely possible that only Japan's unex- 
pected entry into the war caused a temporary post- 
ponement of this plan. 

South Atlantic : 

Radio monitoring service reports the auxiliary cruisers 
BULOLO and ASTURIAS east of Rio and Bahia. DEVONSHIRE end auxili- 
ary cruiser CANTON are en route to Freetown. Colombia has put 
her ports at the disposition of the U.S.. Uruguay is said to 
plan installation of a naval and air base in the province of Rocha, 
Press reports state that the Lloyd Brasileiro has not yet received 
directives to discontinue trips to Europe. The Argentine Navy De- 
partment on the other hand, has issued orders to all ships to re- 
turn home or to enter U.S. ports. 

Indian Ocean : 

Press reports state that the Dutch cruisers DE RUYTER, 
JAVA, TROMP and presumably also SUMATRA, as well as seven de- 
stroyers and twelve submarines are in the East Indies. 

2. Own Situation : 
Nothing to report. 



1 



a 



II. Situation West Area 



1 . Enemy Situation : 



The German Consulate at Santander reports that on 12 
Dec. British planes unsuccessfully attacked the Spanish coastal 
steamer TREVILLA and one French coastal steamer about l/2 mile 



-146- 



15 Dec. 194l CONFIDENTIAL 

off the coast of Cape Mayor. 

2. Own Situation : 

Atlantic Coast : 

Nothing to report. 

Channel Coast : 

The Army Battery at Cape Gris Nez shelled the radio sta- 
tion at Dover. 20 rounds were fired, effect "was not observed. 



♦ 



* 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 
Enemy Situation : 
Limited air activity. 
Own Situation : 
Nothing to report. 

2. Norway : 

Enemy Situation : 

No reports . 

Own Situation : 

LUEDERITZ, the 8th PT Flotilla and the 15th Minesweeper 
Flotilla arrived in Tromsoe. Enemy air activity over Oslo. Mine- 
layer COBRA departed from Swinemuende and is proceeding to the 
North Area. 

Concerning the STEINBECK affair, the Commanding Admiral, Subma- 
rines and the Commanding Admiral, Norway disagree as to the guilt of 
the- commanding officer of the submarine. The Commanding Admiral, 
Submarines is of the opinion that the commanding officer of the 
submarine cannot be blamed in view of incomplete or nonexistent 
information on conditions in the North Area. The Commanding Ad- 
miral, Norway, on the other hand, is of the opinion that every 
submarine commander must realize that it is highly probable that 
some of our own convoys will be in the vicinity of our bases. 
Therefore only those convoys should be attacked which have defi- 
nitely been identified as those of the enemy (see Radiogram 1110 
of 14 Dec. and 1655 of 15 Dec). 

The merits of the case can only be discussed after 
we have the reports from the investigating author- 
ities. 



-147- 



15 Dec. 1941 CONFIDENTIAL 

The Commanding Admiral, Norway deems it necessary that at least 
nine submarines be at his disposal if three submarines are to pa- 
trol the Arctic Ocean at all times. He is of the opinion that in 
view of the extent of the operational area and the almost complete 
absence of aerial reconnaissance it will be necessary to have sev- 
eral submarines operate simultaneously if they are to be effective 
at all. Thus three submarines in the operational area would con- 
stitute an absolute minimum which should be raised very soon. 
Furthermore, Commanding Admiral, Norway objects to the practice 
followed so far of assigning to him only new submarines which have 
had no combat service. According to Commanding Admiral, Norway, 
the Admiral, Arctic Ocean should be assigned experienced submarine 
commanders and the submarines under his command should not be 
changed so frequently. The Commanding Admiral, Submarines was 
aaked by the Naval Staff to give his opinion on the subject, and he 
reported that it will most likely not be possible to comply with 
the request of the Commanding Admiral, Norway, since this would 
necessitate the transfer of experienced submarine commanders and 
seasoned submarines from the Atlantic and the Mediterranean. Plow- 
ever the Commanding Admiral, Submarines is willing to leave the 
submarines in the Northern Area for a longer period of time so 
that they can complete more phan one mission. This will be done 
insofar as time and other circumstances allow. The Naval Staff a- 
grees with the Commanding Admiral, Submarines. See War Diary, 
Part C, Vol. IV for the corresponding teletype. Entry made as 
per Naval Staff, Operations Division, Liaison with Submarine Sec- 
tion, l/Skl Iu 2085/41 op and 2110/41 op Gkdos. Chefs. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea : 
Nothing to report. 



V. Merchant Shipping : 

The Intelligence Division, Naval Staff drew up a comprehensive 
report on the world tanker space, its extent, activities and 
missions. It concludes that 2,572,227 BRT of tanker space are 
at present still available for supplying the British homeland, 
and that another 938,181 BRT are available to supply the rest 
of the Empire. Counting on five round trips annually, these 
tankers have an annual capacity of about 26,000,000 tons. Since 
the estimated maximum oil consumption of the British Empire is 
approximately 25,000,000 to 26,000,000 tons, the British oil sup- 
ply is so far still assured. This calculation does not even 
take into account supplies on hand or tankers that may be built. 
A summary may be found in report No. 34/41 of the "Foreign Mer- 
chant Shipping" series of the Intelligence Division, Naval Staff, 



9862 

-148- 



15 Dec. 19^1 CONFIDENTIAL 

■ VI. Submarine Warfare 

1. Enemy Situation : 

The Norwegian steamer NIDARDAL (2,368 BRT) was sinking 
on the evening of 15 Dec. about 250 miles southwest of the Rock- 
all Bank. Aerial reconnaissance repeatedly located submarines 
in the sea area west of Gibraltar. An Italian report states that 
the convoy which left Gibraltar 14 Dec. in a westerly direction 
has turned back and returned to the Mediterranean. No confirma- 
tion of this highly improbable report has yet been received from 
radio intelligence. 

2. Own Situation : 

Two or three FW 200' s are on aerial reconnaissance to 
locate the convoy near Gibraltar. Submarine U "557" reports de- 
tails on the sinking of the enemy cruiser in the eastern Mediter- 
ranean. The report states that the cruiser, presumably of the 
AURORA class, was sailing as the third ship in a column and was 
hit by three torpedoes at a distance of 2,500 meters. The cruiser 
sank within two minutes after a voilent boiler or ammunition ex- 
plosion. The crew of the tanker BADAL0NA, which was sunk by a 
German submarine, arrived in Malaga on 13 Dec. The captain of 
the tanker is not certain about the nationality of the attacking 
submarine. The German Naval Attache at Madrid reports that there 
is great excitement in the Spanish Navy about the recurrence of 
such an incident and, if possible, asks for confirmation that no 
German submarine is involved. For further discussions with the 
Foreign Office concerning this matter see War Diary, Part C, 
Vol. VIII. See War Diary, Part B, Vol. IV for a detailed report 
on the situation including the distribution of the submarines in 
the operational zones in the Atlantic and the Mediterranean. 



VII. Aerial Warfare 

i* i 

1. British Isles and Vicinity : 

No important events during the day. In the evening 
27 planes went on a mine-laying mission in the mouth of the Hum- 
ber. 8 planes flew armed reconnaissance missions against 
shipping without success. 

2. Mediterranean Theater : 
Nothing to report. 

3. Eastern Front : 

There are no reports on hand as yet concerning aerial 
activity in the East. See Enemy Situation, Black Sea for re- 
ports on reconnaissance mission. 



-149- 



9862 



15 Dec. 1941 CONFIDENTIAL 

4. . Organization : 

See War Diary, Part C, Vol. V for the opinion given by 
Naval Staff, Operations Division concerning the return transfer 
of naval officers attached to the Air Force before expiration of 
their tour of duty. Entry made as per Naval Staff, Operations 
Division, l/Skl 28560/41 Gkdos. 



VIII. Warfare in the Mediterranean 

1. Enemy Situation : 
Western Mediterranean : 
Nothing to report. 

Central and Eastern Mediterranean : 

Until the evening of 14 Dec. aerial reconnaissance and 
submarines repeatedly sighted the strong enemy naval forces which 
operated on 14 Dec. south of Crete. On 15 Dec. aerial reconnais- 
sance sighted 2 or 3 cruisers, 4 destroyers and 7 steamers in 
Malta. Aerial reconnaissance over the sea region off Tobruk lo- 
cated a convoy of 4 merchantmen and a naval force consisting of 
1 battleship, 2 cruisers and 3 destroyers on a westerly course. 
5 destroyers were sighted, off Alexandria on an easterly course. 

2. Own Situation : 
Nothing to report. 

3. Situation Italy : 

A belated report states that VITTORIO VENETO received 
a torpedo hit from an enemy submarine the morning of 14 Dec. at 
the southern exit of the Straits of Messina. Repairs will take 
six weeks. 

4 . Transport of Supplies to North Africa : 

There are as yet no reports of the scheduled arrivals 
of torpedo boats and transport submarines in the ports of Ben- 
ghazi, Derna and Bardia. 

The German Naval Command in Italy reports that the interrupted 
supply operation is scheduled to be resumed on 16 Dec. in the 
form of 2 convoys. These will be accompanied by a convoy escort 
group consisting of battleship DUILIO, cruisers AOSTA, ATTENDOLO, 
MONTECUCCOLI, and an auxiliary group consisting of the battle- 
ships LITTORIO, DORIA, CESARE, cruisers GORIZIA, TRENTO, and 10 
destroyers. Convoy No. 1 will include three steamers for Tripoli, 
convoy No. 2 one steamer for Benghazi. 



9662 

-150-- 



15 Dec. 19^1 CONFIDENTIAL 

5. Area Naval Group South : 

Aegean Sea : 

Transport operations proceeding according to plan with- 
out noteworthy events. 

Black Sea : 

Enemy Situation : 

Aerial reconnaissance reports 11 large, 8 medium and 
small steamers in the harbor of Sevastopol. Further ships are on 
their way to the port. A convoy with five apparently loaded mer- 
chantmen under torpedo boat escort was reported near Cape Khersones 
No course was given. 

Own Situation : 

The steamer CARPATI is again icebound. Otherwise noth- 
ing to report. 



IX. Situation East Asia 

1. Enemy Situation : 

News analysis of the Naval Staff, Intelligence Divi- 
sion concerning Singapore in the "Foreign TJavies" series No. 

According to Reuter and radio reports, a series of successes 
were allegedly scored against the Japanese naval and air forces. 
However, proof or confirmation of these cannot be produced. Par- 
ticularly the claim of sinking the HARUNA is maintained, and in 
this connection special attention is called to the heroic death 
of U.S. Captain Colin Kelly. Furthermore, Dutch submarines are 
said to have sunk four loaded Japanese troop transports off 
Patani and southern Thailand, resulting in the drowning of 4,000 
Japanese. 

2. Situation Japan : 

The Chief of the Japanese Admiralty Staff reported to 
the German Naval Attache at Tokyo that the attack on Borneo is 
scheduled to start within the next few days in view of the 
elimination of the British battleships and the good progress 
made in other operations . 

In view of the great significance of Singapore to the British 
position, Britain is expected to do everything possible to hold 
this point. It is therefore expected that Britain will transfer 
her battleships from the Mediterranean and the Atlantic to East 
Asia. Since fullest confidence can be placed in the Japanese 



-151- 



9862 



15 Dec. 1941 CONFIDENTIAL 

Naval Air Force, Japan only welcomes such a development. Guam is 
fully occupied by the Japanese. A landing on Wake has not yet 
taken place because of the bad surf. As soon as weather conditions 
permit, the landing will take place. 

Only six aircraft carriers took part in the attack on Pearl Harbor. 
Since the water at Pearl Harbor is only 12 meters deep, a special 
torpedo was used which was developed for this specific purpose as 
the result of experiments lasting several years. PRINCE OF VALES 
was hit by two bombs and fifteen torpedoes. 



X. Army Situation 

1 . Russian Front : 

Southern Army Group ; 

Only little activity on the entire front of the 1st 
Panzer Army because all the roads are out. Enemy attacks, some 
of them rather strong, were repulsed in the 17th Army sector. 
Little movement in the 6th Army sector. 

Central Army Group : 

The 2nd Army arrested enemy penetrations at Livny. 
Our own losses of materiel are considerable. The XXXV Army 
Corps is withdrawing to the Kalmka position and further north. 
North of Tula the enemy is attacking the withdrawing 3rd Armored 
Division. A strong enemy attack with air support was repulsed 
on the new line from Dyedilovo to the west. The 2nd Army and 
the 2nd Panzer Army were combined into the 2nd Army Group under 
General Guderian. Only little action on the 4th Army sector. 
On the 9th Army sector, the evacuation of Kalinin has begun ac- 
cording to plan. Heavy enemy attacks on the VI Army Corps west 
of Kalinin. 

Northern Army Group : 

Very heavy enemy attacks on various sectors of the 
Army Group, especially on both sides of Volkhovstroy. Enemy 
mass attacks from Leningrad to the south. 

2. Finnish and Norwegian Front : 
No change in the situation. 

3. North Africa : 

A 4 km wide enemy penetration in the Gazala position 
had not been stopped by evening. 

General Rommel intends to hold the area south and southwest of 
Gazala through 16 Dec. but thinks subsequent withdrawal in the 



-152- 



15 Dec. 1941 CONFIDENTIAL 

direction El Mechili-Derna will be unavoidable. The stamina of 
the troops has deteriorated after four weeks of uninterrupted 
fighting with severe casualties, particularly in view of the fact 
that reinforcements and supplies by sea never arrived. The Com- 
mander, Air, North Africa has only enough fuel on hand for one 
mission, unless the Ju 52 's and destroyers bring supplies. 

The serious set-back which is readily apparent here 
is the unavoidable result of the failure to solve 
the supply escort problem, the importance of which 
the Naval Staff pointed out time and again when 
something could still have been done about it. The 
feeble manner in which the Italian naval forces car- 
ried out their missions which resulted in failures, 
the unshaken enemy base of Malta in the middle of 
the area through which our supply transports must 
travel, and the inadequate measures taken by the 
Axis Air Forces to keep the sea lanes to North Af- 
rica open, have for all practical purposes com- 
pletely throttled our supply transports to Africa 
for many weeks. Only the incredible toughness of 
the German Africa troops and their leaders is re- 
sponsible for the fact that resistance continued 
for so long, and that the enemy had to pay for his 
success so dearly. 



************** *********** 



9862 

-153- 



CONFIDENTIAL 

16 Dec. 19^1 

Items of Political Importance 

Netherlands : 

Seyss Inquart made a speech on the occasion of the 10th anniver- 
sary of the Dutch National Socialist Movement. He announced that 
only such political orientation as finds expression in the Nation- 
al Socialist Movement under Mussert will henceforth be tolerated. 
All other organizations and political movements will he dissolved. 

Great Britain : 

It is said that all London headquarters of European governments 
in exile are to he transferred to Washington. The conferences on 
the agreement with Russia are progressing rapidly. The forthcom- 
ing agreement is to be the continental supplement to the Atlantic 
Charter. It is said that the British Government has resolved not 
to press the Russians for a declaration of war on Japan so long 
as Russia's main task is the fight against the German armies. 

U.S.S.R . : 

United Press reports that the Soviet Government has returned to 
Moscow. 

Turkey : 

A report from the German Embassy states that the attitude of the 
Turkish press is in no way favorable to Germany. A venomous 
article in the newspaper Vatan states that the Anti-Comintern 
Pact serves no other purpose than that of procuring cannon fod- 
der for the German campaign against Soviet Russia. The so-called 
"European Solidarity" is but another way of saying "Enslavement 
'of Europe". Neither orders ncr seizures by the Government have 
so far been able to do away with this anti-German attitude in the 
majority of Turkish newspapers. 

U.S.A. : 

Secretary of the Navy Knox personally conducted an investigation 
of the shortcomings of the U.S. Hawaii Command. After his re- 
turn he made the statement that the battleship ARIZONA and the 
training ship UTAH are lost, but that the capsized battleship 
OKLAHOMA can be raised. In addition, three destroyers and one 
minesweeper were also sunk. According to Knox, these losses 
have not upset the naval balance of power in the Pacific. The 
fifth column was more effective in Hawaii than anywhere else, 
with the possible exception of Norway previously. A copy of the 
full text of the Knox declaration may be found in War Diary, 
Part B, Vol. V. 



9862 

-154- 



16 Dec. 19^1 CONFIDENTIAL 



Japan : 

The Japanese press has started a campaign against the British- 
coined designation "Par East". They maintain that East Asia is 
the center of the -world. As a matter of fact, in many instances 
the terms "Anglo-Saxon" and "White Race" have come to he used 
interchangeably in this var of ideologies. 

China: 

Britain requested Chiang Kai Shek to live up to the obligations, 
of the Chinese military pact with Britain and the United States. 



Conference on the Situation with the Chief, Naval Staff . 

I. The Chief, Naval Staff, Quartermaster Division reports that 
priority ratings for armament production have been changed. The 
report is based on information received from the Mercedes-Benz 
Company which states that the Air Force receives preferred treat- 
ment under the new setup. The Navy Ordnance Department explains 
that the new priority ratings pertain only to armament manufac- 
turers who are entering the industry and who can produce only if 
they are allotted an additional number of workmen. This will not 
affect the basic priority system. The matter is under investiga- 
tion. 

II. The Political and Propaganda Section, Naval Staff reports on 
the cessation of French shipping to Martinique and the United 
States. The Air Force sank an ore steamer in Spanish territorial 
waters near Huelva. The Fuehrer has decided that the Spanish 
Government is to receive an apology for this incident. 



Special Items : 

Deliberations by the Chief, Naval Staff, Operations Division, 
Fleet Operations Section on the problems and possibilities of 
German naval warfare against Britain and the United States are 
contained in War Diary Files "Fundamental Problems of Warfare". 



Situation 16 Dec. 19^1 

I. War in Foreign Waters 

1. Enemy Situation : 

Special Items : 

See War Diary, Part B, Vol. V for Naval Staff, Opera- 
tions Division report (l/Skl 29244/^1 Gkdos.). This report con- 



9862 

-155- 



16 Dec. 19*U CONFIDENTIAL 

tains the probable locations of British naval forces as of 15 Dec. 
based on data obtained from radio monitoring and decoding. 

The Naval Staff is especially anxious that reports concerning Brit- 
ish naval forces offer an explanation for the unusually heavy con- 
centration of merchant ships now at Gibraltar, and indicate when 
and where future enemy landing operations might possibly take place 
and what anti-submarine defenses there are around Gibraltar. A 
corresponding request was sent to the Naval Representative in the 
Foreign Intelligence Section of the Armed Forces High Command; 
copies to the Chief, Naval Communications and Naval Attache Sec- 
tion. 

North Atlantic : 

A foreign agent reports that a U.S. division is to be 
transferred to Gibraltar within a short time. Radio London states 
that only 13 out of 32 Axis vessels were able to break through the 
blockade. 13 Axis vessels were taken as prizes, and the others 
returned to their ports of origin. 

The Spanish mail ship service to New York and Havana has been dis- 
continued. 

South Atlantic : 

The radio decoding service reports that, besides ships 
so far located, the auxiliary cruiser DUNOTTAR CASTLE has been 
in the Freetown area since 3 Dec. 

Pacific Ocean : 

The radio decoding and monitoring services report that 
a danger zone was announced in the entrance to the Madura Strait 
(Java;. It was also announced from Singapore that all beacons 
have been extinguished in Singapore, the Malacca Strait, Penang, 
on the eastern and western coast of Malaya, the coasts of Borneo, 
and the Dutch East Indies. On 11 Dec. the Commander of the 12th 
Naval District ordered all merchant ships in the northern Pacific 
to sail by way of a point located in 27° N, 127° W. 

2. Own Situation : 

The Naval Attache at Tokyo reported the arrival of the 
blockade-runner KULMERLAND at Kobe and the departure of OSORNO. 
He also reported that the entire Pacific Ocean has been declared 
a war zone, and that ships there will be attacked without warn- 
ing. See Radiogram 2049 for further agreements between German 
Naval Station Tokyo and Naval Staff, Quartermaster Division, 
Shipping and Transport Branch concerning action to be taken by 
blockade-runners. Radiogram 2049 also contains special direct- 
ives for rendezvous of motor ship PORTLAND with Japanese naval 
forces. 

See War Diary, Part B, Vol. V for report l/Skl Ik 28922/41 
Gkdos. from the Naval Staff, Operations Division. This report 



-I56- 9862 



16 Dec. 19^1 CONFIDENTIAL 

contains a copy of the recommendation and citation for awarding 
the Oak Leaf Cluster to the Knight's Cross of the Iron Cross to 
the commanding officer of ship "16", Captain Rogge. 

Reports on the enemy situation by Radiograms 204} and 2150. 



II. Situation West Area 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation ; 

Atlantic Coast ; 

Enemy air raids on Brest from 1245 to 1257 and from 
2011 to 0021. Approximately thirty high explosive bombs were 
dropped. No ships were damaged. Group West reports that BENN0 
is scheduled to depart on or about 20 Dec The Naval Staff, Op- 
erations Division requests the Naval Staff, Quartermaster Divi- 
sion to have two fast tugboats in readiness beginning 15 Jan. 
1942. Each of the tugboats must be powerful enough to tow a bat- 
tleship (or heavy cruiser) from berth to roadstead or into the 
channel and back to berth at the required speed. These opera- 
tions will become necessary during the impending maneuvers of the 
Brest Group vessels. For the text of the request from Naval 
Staff, Operations Division (l/Skl 29062/41 Gkdos.) see War Diary, 
Part B, Vol. V. 

Channel Coast ; 

Limited enemy air activity near Dunkirk during the day. 
Between 1915 and 1950, coastal battery "Grosser Kurfuerst" 
fired twenty rounds 'of 28 cm. at an enemy convoy located off 
Dover on a southerly course. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

The radio decoding service reports that KING GEORGE V 
was probably conducting target practice in the Scapa Flow area 
at noon of 15 Dec. 

Own Situation; 

Lively enemy air activity over the Dutch coast and 
over Emden, Wilhelmshaven, and Cuxhaven. Vessels lying in the 



-157_ '862 



16 Dec. 19^1 CONFIDENTIAL 

ports were attacked unsuccessfully. The naval bakery and rail in- 
stallations at the ship-fitting shop in Wilhelmshaven were slight- 
ly damaged. Between three and four hundred buildings were dam- 
aged in Emddn. Naval anti-aircraft artillery shot down one enemy 
plane . 

2. Norway : 

Enemy Situation : 

No new observations. 

Own Situation : 

The 8th Destroyer Flotilla departed for the operation 
along the Murmansk coast. Destroyer Z 26" returned to port be- 
cause of engine trouble. Minelayers M "15" and M "17" were loaded 
for laying an anti-submarine barrage off Petsamo. One minesweep- 
ing cutter of the 56th Minesweeper Flotilla ran aground near 
Terningen. Two steamers collided while departing from Bergen. 
The western exit of the Brei Sound (east of Hammerfest) was closed 
to shipping because mines are suspected in that area. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

A court order confirmed the current internment of the 
eleven Norwegian steamers at Goeteborg. There Is therefore no 
danger that these ships can escape in the near future. Proceed- 
ings to intern the remaining Norwegian ships in Swedish ports al- 
so have been initiated. 

According to information obtained on separate occasions from 
prisrners of war, the Russian Baltic Fleet sustained the follow- 
ing losses up to the middle of November: 

a. A total of 17 destroyers were sunk as follows: 

(1) 7 destroyers were sunk by the German Navy with 
either mines or torpedoes (SMELY, STOROZHEVOI, SMETLXVI, STATNI, 
SUROVI, GORDI, and SKORl). 

(2) 3 destroyers were sunk by the German Air Force 
with bombs (SERDITY, KARL MARX, and KALININ). 

(3) 4 destroyers were sunk by mine hits and subse- 
quent bomber attacks during the retreat from Reval (Tallinn). 
They sank with the entire crew (ARTEM, VOLODARSKY, SVERDLOV, 
and ENGELS ) . 



9862 

•158- 



16 Dec. 1941 CONFIDENTIAL 

(4) The prisoners knew nothing about how or where the 
other two destroyers (GNIEVNI and STEREGUCHl) were lost. PT boats 
and mines probably sank these in the Gulf of Riga (Irbe Strait). 
The Russians scuttled one destroyer (ENGELS) in Libau. 

b. The prisoners know of a total of seventeen submarines 
sunk. Among these are twelve submarines of the 2nd Submarine 
Brigade (SHCH class, 500 to 650 ton submarines) including subma- 
rines "311", "312", and "313". 

Furthermore, the prisoners know of the sinking of the following 
submarines: S V, S "8", S "11", S "101", and S "106". 

We have data showing the loss of the following submarines: RENIS 
and SPIDOLA. The latter was scuttled by the Russians in Libau. 
Submarine M "78" was sunk en route from Libau to Windau, M "77" 
hit a mine northwest of Vorms Island, and M "8l" was probably hit 
by a torpedo south of Hangoe. Submarine S "3" was sunk by PT 
boat "35 between Libau and Stein Ort. Also sunk: one submarine 
of the M class by German submarine U "149" and one submarine of 
unknown class by German submarine U "140". 

We may therefore count on having destroyed twenty five Russian 
submarines. Available data shows that the Air Force reported 
only destroying one Russian submarine on 29 Aug. 

c. Damaged Russian vessels: 

(1) Damaged by the Air Force with bombs: 

One battleship (OKTYABRSKYA REVOLUTSIYA) . Hit by a 
bomb in the middle of October. Has been repaired 
and is again ready for action. MARAT, badly dam- 
aged by bombs, is lying in Kronstadt, out of com- 
mission. Flotilla leader MINSK and destroyer 
SILNY. 

(2) Damaged by the Navy with mines: 

Cruiser MAXIM GORKI, flotilla leader LENINGRAD, 
destroyers STRASHNY and GROSNY. 

d. Cruiser L (formerly LUETZOW) badly damaged in Leningrad 
by Army artillery bombardment. 

e. Besides the above named larger vessels and submarines 
lost and damaged, between six and seven torpedo boats, several 
PT, boats, and many minesweepers were sunk. 

These ships were sunk primarily while on convoy escort and mine- 
sweeping duty. 



-159- 9862 



16 Dec. 1941 CONFIDENTIAL 

2. Own Situation : 

Group North reports the following losses sustained by 
our own naval forces: 

1 submarine 

4 minelayers; j5 of these were sunk in the Swedish 
mine field on their way home. 

2 PT boats 

5 minesweepers; 3 of these by explosion in Hel- 
sinki. 

5 auxiliary minesweepers (3 fishing vessels, 2 
luggers) 

2 coast patrol vessels 

2 submarine chasers 

2 minelayers were lost during the sweeping of our 
own mine field off Kolberg. 

Torpedo depot ship MOSEL was lost in the mine field 
off Windau. 

A number of minelayers and minesweepers were dam- 
aged by bomb and mine hits. 

The cattle ship DELPHIN (255 BRT) was sunk in the 
western Baltic (Kiel Bay) where it hit a mine. 

As far as allocation of minesweepers is concerned, we cannot risk 
a further delay in sweeping a mine- free channel to Helsinki. 
Sweeping operations in the zone of the Commander, Defenses, West 
are also extremely urgent. Therefore, the original order must 
stand and the 4th Sweeper Flotilla must remain in the east for as 
long as ice conditions permit sweeping operations. Only then will 
the sweepers be returned to the Commander, Defenses, West. Even 
though we must concede the difficulties which convoys encounter in 
northern Norway, it will be necessary for the Commanding Admiral, 
Norway to do the best he can with forces in his area. It is at 
this time impossible to aid him with reinforcements. 

A corresponding notice is sent to Groups North and West as well as 
to the Commanding Admiral, Norway by Radiogram l6l6. Group North 
also receives orders to investigate when it will be possible for 
them to transfer a flotilla of new minesweepers from their zone to 
Norway. 



V. Merchant Shipping : 

Report No. 35/41 of the "Foreign Merchant Shipping" series was 
issued by the Naval Staff, Naval Intelligence Division. The re- 
port contains the following information: 

Data on British chromium ore imports from Turkey, carried by 
small Turkish vessels sailing within Turkish territorial waters 
and delivered to the port of Mersin where it is transferred to 
British vessels. 

Data on shipping in the eastern Mediterranean, with special 
attention to Alexandria and Suez Canal ports. Data on whaling 



-160- • 9862 



16 Dec. 1941 CONFIDENTIAL 

between 1939 and 19^0. It Is estimated that ten to twelve float- 
ing factories with a total tonnage of 105,000 to 130,000 BRT will 
probably operate in the antarctic region during the whaling sea- 
son from Dec. 19^1 to the beginning of March 1942. 



VI. Submarine Warfare 

1. Enemy Situation : 

Radio monitoring intercepted reports from enemy aircraft 
which state that a submarine was attacked 80 miles southwest of St. 
Nazaire and another one off Gibraltar. The enemy convoy, which ac- 
cording to Italian reports had returned to the Mediterranean, was 
located In the Atlantic. Its location was approximately 70 miles 
northwest of Casablanca at noon of 15 Dec. The convoy is made up 
of the following vessels: 28 steamers, 1 aircraft carrier, 6 de- 
stroyers, and 4 coastal patrol vessels. The course of the convoy 
was not reported. 

2. Own Situation : 

Our aerial reconnaissance located an enemy convoy on 
westerly course about 100 miles west of Casablanca. German subma- 
rines established contact with the convoy. On 14 Dec. German sub- 
marines sank an unknown steamer of 7,000 BRT in the vicinity of 
Gibraltar. For a further report on the situation see War Diary, 
Part B, Vol. IV. 

The need for regular weather forecasts forces us to lay out 
weather buoys. Radiogram 1717 directs the Commanding Admiral, 
Submarines to have submarines lay out two weather buoys in the 
Rockall Bank and Porcupine Bank areas. Details will be arranged 
directly between the Chief, Naval Staff, Meteorological Section 
and the Commanding Admiral, Submarines. 

In connection with the sinking of steamer STEINBECK, Group North 
requests the Commanding Admiral, Submarines to advise all sub- 
marines in the zone of operations that German ships are sailing 
within the following areas: The entire Baltic Sea; the Baltic 
Sea Entrances; the Kattegat and Skagerrak; and along the sectors 
of the Norwegian, North Sea, and Channel coasts within the command 
zone of the Group. Therefore, ships in these areas are not to be 
attacked unless their enemy identity has been established beyond 
doubt. 

The Commanding Admiral, Submarines reports as follows on the sit- 
uation in the shipyards constructing submarines: "Present con- 
ditions In final fitting operations on newly built submarines in 
German shipyards must be improved at once. As a result of the 
manpower shortage, final fitting operations now require six to 
seven weeks instead of three to four weeks as formerly. Twenty 
four submarines are at present in final fitting. Every two weeks 



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16 Dec. 19^1 • CONFIDENTIAL 

an additional ten submarines arrive at each of the shipyards doing 
final fitting. Since submarines leave the shipyards at a much 
slower rate, because of the length of time needed to finish them, 
we may soon expect a complete congestion of German shipyards. 
This will entail a long delay in putting new submarines into action, 
For example,- only two of the submarines in the final fitting stage 
will be completed by 20 Dec. while ten additional submarines will 
arrive on that day. This means that the number of submarines 
undergoing final fitting will at that time already have reached 
thirty two. The Commanding Admiral, Submarines proposes four rem- 
edies for this condition which makes submarine warfare practically 
impossible : 

"(1) An immediate increase in the number of workmen assigned 
to submarine fitting. This can be done by discontinuing a great 
part of the repair work on surface vessels. 

"(2) No further drafting of repair specialists into Army or 
Air Force. For example, the two shipyards in Danzig lost 350 
workers to the Army only recently. 

"(3) Make it a rule that final fitting and overhauling are 
done by the same shipyard which built the submarine. The original 
builder is more interested in completing his own submarine and 
works faster on it than on a submarine coming from another yard. 
In these shipyards submarines must be given priority over any 
repairs on surface vessels. 

"(4) If no other alternative is found, then the construction 
of new submarines in certain yards must be curtailed until their 
manpower shortage for submarine repairs has been alleviated. The 
situation may also be improved by concentrating the construction 
of new submarines in shipyards of adequate capacity. This would 
mean that those smaller yards which need a month and a half for 
building a new submarine must transfer their contracts to the lar- 
ger yards which have a specified number of workers. A decision 
must be made at once." (See Radiogram 20^0.) 

Naval Staff will review this urgent problem with 
the Naval Construction Division and the Chief of 
the Submarine Division of the Naval Staff. The fi- 
nal decision in the matter will be made by the 
Chief, Naval Staff. The proposals contained in 
Paragraph (k) will undoubtedly bring about the 
greatest improvement. Therefore, they will have 
to be put into practice without delay. 

According to a new report from the Naval Attache, the Spaniards 
are certain that a German submarine sank the tanker BADALONA. 
If so, the Attache proposes sending a friendly, clear explana- 
tion to the Spanish Government, with the urgent request that 
Spanish ships be made to observe international regulations (Radio- 
gram 1518). A clarification of the affair to this effect is al- 
ready in progress. The Naval Staff deems it necessary to give 
the DOGGERBANK a submarine escort in view of her importance. The 



9862 

162- 



16 Dec. 19^1 CONFIDENTIAL 

Naval Staff tends to believe that the submarines departing for 
operation "Paukenschlag" on the U.S. East Coast will be able to 
escort the DOQGERBANK, in which case some delay in the ship*s de- 
parture is acceptable. 

Group West and Commanding Admiral, Submarines are informed accord- 
ingly. Both authorities are directed to review the matter together 
and to report their findings. 



* 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

Armed reconnaissance reported that a 3>000 BRT steamer 
near Kinnairds Head and a 600 BRT steamer near Milford were dam- 
aged by bombs. Six enemy planes were shot down during daylight 
raids in the West Area. In the evening seventeen German planes 
went on mining missions in the Humber estuary. Eight planes went 
on armed reconnaissance against enemy shipping, and seven raided 
Dover. During the night of 16 Dec. enemy air activity in the 
Flensburg-Schle swig-Bremen area and over Brest (see Situation 
West Area) . 

2. Mediterranean Theater ; 

A delayed report of Ik Dec. tells of a Stuka attack on 
a cruiser. The cruiser received two bomb hits amidships and one 
hit close to the gunwale. The Stuka was hit by anti-aircraft 
artillery and was thus unable to observe further results. 

J. Eastern Front ; 

Light aerial activity in support of the Army. 



* 



VIII. Warfare in the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean ; 

The following vessels are lying in Gibraltar: 

Task Force H without UNICORN 

2 auxiliary cruisers 
10 destroyers 

7 gun boats 
1 submarine 

J>2 steamers 

8 torpedo boats 



9862 

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•16 Dec. 19^1 CONFIDENTIAL 

A Spanish report states that one coastal patrol vessel sank in the 
Strait of Gibraltar after an explosion during the night of 10 Dec. 

Central and Eastern Mediterranean : 

The following vessels were lying in Malta during the 
morning and afternoon: 

2 light cruisers 
2 destroyers 
several submarines 
8 to 10 merchantmen. 

Italian radio monitoring reports that AURORA or "Group Aurora" 
was at sea. Italian aerial reconnaissance reports that an enemy 
task force was at sea north of the Gulf of Solium on a westerly 
course. The enemy force probably included a battleship, 2 
cruisers, and 8 destroyers. Radio monitoring further located a 
convoy in the vicinity of the task force and 40 miles south of it 
another task force of 3 cruisers and 7 destroyers. Another Italian 
report states that a convoy escorted by a cruiser and several de- 
stroyers was en route from Haifa to Marsa Matruh. According to an 
Italian report 6 U.S. steamers arrived in Port Said during the 
night of 11 Dec. These steamers unloaded 100 armored cars and 
50 planes. 

2. Own Situation : 

The 3rd PT Flotilla consisting of four boats left on a 
mission at 1700. 

3. Situation Italy : 

Italian aerial photography reconnaissance on 11 Dec. 
shows a steamer with damaged stern in dock at Malta. This proves 
that the attack by the submarine TRICHES0 on 30 Nov. was success- 
ful. (See War Diary 7 Dec.) However, no other evidence is 
available (see Radiogram 1300). There are as yet no reports that 
ships departed for the supply mission. 

4. Transport of Supplies to North Africa : 

Weather conditions are causing a delay of one or two 
days in the arrival of the transport submarines. Nothing further 
to report. 

5. Area Naval Group South : 
Aegean Sea : 

Enemy Situation : 

The German Naval Attache at Istanbul reports that the 
Russian tankers SAKHALIN and AVANES0V departed at 0300 for the 
Marmara Sea. 



9662 

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16 Dec. 1941 CONFIDENTIAL 

Own Situation : 

The German Naval Command, Italy, the 23rd Submarine 
Flotilla and Group South receive instructions that Group South 
or Admiral, Aegean is to dispatch a submarine at once in order 
to stop Russian tankers from breaking through. Copy of the di- 
rective is sent to Admiral, Aegean. 

Black Sea ; 

Enemy Situation ; 

The Russians attempted landings at Eupatoria during the 
night of 15 Dec, assisted by a Russian destroyer and two PT boats. 
German naval troops, military police, and Army coastal batteries 
repulsed the attack. 

Ovn Situation ; 

The operation of the DELFINUL was discontinued because 
of weather conditions and overconsumption of fuel. Otherwise 
nothing to report. 

Radiogram 13^5 from Group South proposes that offices of the 
Reich Commissar at the Berlin Prize Court, Southeast be transferred 
to either Berlin or Vienna. Operations in the southeast theater 
no longer require that these offices be located permanently in 
that area. Further steps concerning this matter will be taken by 
the Naval Staff, Quartermaster Division. 

It is planned to transfer a number of vessels from their home 
bases in Germany to the southeastern theater. In addition, 
Group South requests action as follows: 

a. Transfer of ah experienced PT flotilla to the Black Sea as 
soon as ice conditions in the Danube permit. The Russian situa- 
tion leads us to expect a continuation of operations in the 
spring, in which case the Army will be very much dependent on 
Navy support. Group South considers a PT flotilla of at least 
ten boats best suited to render such support in the mdst effect- 
ive manner. Naval support will be indispensable to Army opera- 
tions. However, without such a flotilla such support will be as 
inadequate as it was this year because of lack of sufficient 
forces. We might try to transfer the flotilla to the Aegean Sea 
as soon as the naval situation in the Black Sea has been brought 
under control in the course of the next year. If this is still 
impossible, the flotilla can always be withdrawn to the north- 
ern theater of war via the Danube. 

b. A number of auxiliary minesweepers are to be transferred to 
the Black Sea in spring 19^2, but they will probably not be able 
to operate Immediately upon arrival. Therefore, Group South pro- 
poses that a large experienced minesweeper flotilla also be trans- 
ferred to the Black Sea together with the PT flotilla as a second 
wave of reinforcements. It may be impossible to spare the mine- 



9862 

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16 Dec. 19^1 CONFIDENTIAL 

sweeper flotilla for permanent duty In the Black Sea and later on 
in the Aegean. In that case it could return home as soon as the 
auxiliary minesweeper flotilla is ready for action. The minesweep- 
er flotilla is needed for the same purpose as the PT flotilla. 

c. It is already apparent that a large number of naval barges 
must be used for transport and supply operations in the Black Sea 
as well as the Aegean Sea. The submarine menace will Increase 
rather than decrease, while we are able to do but little about re- 
inforcing our anti-submarine defenses. For this reason, barges 

are the safest and best suited means of transport. They do not have 
to have an escort, and the risk of materiel and personnel in each 
case is small. Group South therefore recommends making available 
an additional twenty barges during the coming winter for Black Sea 
operations. These barges, as well as replacements for them as the 
need arises, are to be built in Varna. Naval barges will also 
play an important part during future Army operations as a support 
for landings, etc.. Already this year the Navy was called upon 
to perform such duties. However, because of a lack of suitable 
craft, the Navy was not up to the task, for Siebel ferries have 
engines and therefore are no substitute for barges. Group South 
proposes that Admiral, Aegean at once order the construction of 
fifty naval barges. The most adequate building facilities will 
probably be found in Palermo. It is desired that the first bar- 
ges be delivered as soon as possible. If necessary, special ar- 
rangements must be made with the Naval Shipping and Transport Of- 
fice, Rome. There can be no large-scale transfer of barges from 
the Black Sea to the Mediterranean, especially not in view of the 
fac\- that it is doubtful whether the barges would ever be allowed 
to pass the Dardanelles. As far as we know, the sea lion (refer- 
ence to operation "Seeloewe", the Invasion of the British Isles, 
Tr.N.) will be asleep for quite a while. Therefore, it might be 
possible to transfer the barges built for that purpose to the Black 
Sea or the Mediterranean. 

d. Group South proposes an investigation of the possibilities 
for equipping the small merchantmen which are to be built, with 
detecting gear (S-Geraet). Construction of these vessels is very 
essential. However, it seems unlikely that any of them will be 
completed during 19^2 (see Radiogram 13^5). 

6. Situation Turkey ; 

The Italian Navy submitted the following estimate of 
the situation: 

a. Shipping in the Black Sea, discontinued on 25 Nov. after two 
Turkish steamers were torpedoed, has been resumed. However, all 
ships travel at their own risk. 

b. The report that new reserves have been called up and that 
all furloughs were cancelled has not been confirmed. 



9662 

-166- 



16 Dec. 19^1 CONFIDENTIAL 

c. It has been confirmed that troops were transferred to the 
Syrian "border on 4 Dec. 

d. It is said that an agreement on the reinforcement of the 
Turkish Army and Air Force is under discussion in Ankara. This 
news seems likely in- view of the recent U.S. declaration con- 
cerning shipment of war materiel to Turkey under Lend-Lease. 

e. Although there is no confirmation concerning British and Rus- 
sian demands for lease of naval and air "bases, it is known that 
there have been conferences concerning such leases. The Turkish . 
Government was promised full guarantees of sovereignty and inde- 
pendence as well as military assistance at sea and in the air if 
bases should be demanded. 

All in all there is no doubt that Turkey is subject to heavy pres- 
sure from the enemy. It is not impossible that Turkey is willing 
to agree to some of the demands made so that she can preserve her 
neutrality at least for the time being. 

7. Situation France ; 

The Admiral, France and Admiral Darlan discussed the 
question of further training and possible future operations of 
the French Fleet. Admiral Darlan declared that this depends 
mainly on the fuel oil supply and the manufacture of ammunition. 
French oil reserves are sufficient for one month. Only a small 
reserve of ammunition is left. None but the most urgent repairs 
were made on the battleship DUNKERQUE, and she is now capable of 
9 to 10 knots. It is planned to send a naval liaison officer to 
the German naval stations at Cherbourg and Bordeaux. Darlan also 
declared himself willing to collaborate with the German Navy in the 
exchange of intelligence reports on the position of British naval 
forces. 



IX. Situation East Asia 

* 

1. Enemy Situation ; 

Lord Alexander publicly defended the conduct of Admiral 
Sir Thorn Philipps in the battle of Malaya. 

2. Situation Japan ; 

Following are Admiral Ito's comments on the situation; 

No one can dispute our control of the South China Sea. Malaya 
and Singapore are doomed, and their occupation is but a question 
of time. The danger threatening us from the Aleutians in the 
north will not materialize during the winter. The danger from 
the east is but slight since the enemy lost Guam and Wake. 
Equally slight is the danger from the south where the enemy lacks 



9862 

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16 Dec. 1941 CONFIDENTIAL 

adequate bases. However, from the west our positions are really 
nenaced. As soon as Singapore is in our hands we are planning to 
transfer a large number of planes to that base by way of Trincomalee, 
Madras, and Sumatra. Later we shall also station naval forces at 
Singapore. Japanese submarines will be transferred to the Indian 
Ocean at a later date. Admiral Ito said literally: "The morale of 
the American fliers is worse than that of the Chinese." 

A report from the Japanese Naval Attache at Berlin states that 
Japanese troops successfully landed on British Borneo on 16 Dec. 
in spite of unfavorable weather conditions. The route to Penang 
has been cut. Reports from Bangkok give details on Japanese 
transport operations to Malaya by sea and land as well as news of 
the Japanese advance on the Malay Peninsula. This advance was 
supported by additional troop landings near Trengganu and Kuantan. 
Japanese submarines operate in the Indian Ocean in order to cut 
sea routes to Singapore. 



X. Army Situation 

1. Russian Front : 

Southern Army Group : 

There was but little fighting on the 1st Panzer Army 
sector since the roads are out in the area. On the 17th Array 
sector the enemy attacked the 111th Infantry Division, but was 
stopped by our artillery. Isolated enemy attacks on the 6th 
Army were also repulsed. 

Central Array Group : 

At the 2nd Army sector we again established contact 
with the 45th Infantry Division. Enemy attacks were repulsed 
near Dyedilovo and south of Tula. The XLIV Army Corps withdrew 
in westward direction according to plan. On the 4th Army sector, 
air and artillery intervention prevented the enemy from follow- 
ing the retreating 4th Panzer Group. Lack of fuel and bad road 
conditions forced us to destroy heavy weapons and other equipment 
of the withdrawing IX, XL, V, and LVI Army Corps. In the 9th 
Army sector we blew up a bridge leading over the Volga at Kalinin, 
and the troops were withdrawn to the south. Enemy attacks west of 
Kalinin were repulsed. 

Northern Army Group : 

North of Lake Ilmen our positions near Vlshera were 
withdrawn. Enemy attacks west of Tikhvin, south of Schluessel- 
burg and south of Leningrad were repulsed. 

2. Finnish and Norwegian Front : 
Nothing to report. 



9862 

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16 Dec. 19^1 CONFIDENTIAL 

5. North Africa : 

Under enemy pressure our forces withdrew to rear posi- 
tions prepared south of Derna. 



***♦*#»»******#**#♦***♦#* 



,^~ 9862 

-169- 



CONFIDENTIAL 

17 Dec. 1941 

Items of Political Importance 

France : 

The French press in Morocco plays up the significance of the Dar- 
lan-Ciano meeting. They hint at certain differences betveen the 
Latin Block and Germany. 

Qreat Britain : 

Special attention is being given to Russo-Japanese relations. Al- 
though it is admitted that Russia is justified in wishing to avoid 
fighting a new enemy before the old one has been defeated, it. is 
pointed out that an early elimination of Japan would nevertheless 
be valuable. In this connection it is mentioned that the Allies 
should use East Siberia as a base for direct attacks on the Japa- 
nese homeland. 

The critical situation in East Asia once again moves the British 
to make promises to the Indians. The Viceroy admonishes all In- 
dians to put aside their quarrels, pointing out that they will be 
given a constitution some time hence, which among other things 
will grant self-government to those provinces which do not have 
it now. 

Australia : 

The fear of a Japanese invasion is growing day by day. The Prime 
Minister stated that Australia will have to fight for her life 
and that the time has come when all those who have previously re- 
ceived Australian aid must now come to her help. 

Spain : 

The Foreign Minister is of the opinion that the new developments 
complicate Spain's economic situation. Spain is forced to ask 
the Allies to resume the gasoline shipments which were stopped 
when Spain joined the Anti- Comintern Pact. Spain must also re- 
quest more favorable conditions for her imports from South Amer- 
ica. 

Turkey : 

An amendment of the Compulsory Military Training Act raises the 
term of active duty from eighteen months to three years. The 
British Ambassador at Ankara is now at the Cairo Conference, 
which is to decide whether British troops will be transferred 
from the Near East to the defense of Singapore. 



9862 

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17 Dec. 19^1 



CONFIDENTIAL 



Brazil: 

The German-controlled Brazilian Condor Air Line was paralyzed when 
the Vest India Oil Company stopped delivery of gasoline. 



Conference on the Situation with the Chief, Naval Staff . 
No noteworthy reports or decisions. 



Special Items ; 

1100: First joint conference of the Liaison Staffs of the 

Axis navies at the German Naval Staff for the purpose 
of inaugurating effective cooperation between the 
Axis navies. 

Participants : 

German : Commander in Chief, Navy 

Chief of Staff, Naval Staff 

Chief, Operations Division, Naval Staff 

Quartermaster, Naval Staff 

Chief, Naval Ordnance 

Admiral Groos 

Chief, Office of the Commander in Chief, Navy 

Assistant Chief, Office of the Commander in Chief, Navy 

Chief, Naval Attache Section 

Aide to the Commander in Chief, Navy. 

Italian : Rear Admiral Bertoldi 
Captain de Angelis. 

Japanese : Vice Admiral Nomura 
Rear Admiral Abe 
Captain Yokoi. 

The Commander In Chief, Navy opens the conference with a summary 
of the development of the situation up to the present and em- 
phasizes the necessity for close cooperation between the Axis 
navies. Thereafter the Chief, Operations Division, Naval Staff 
gives a report. 

He analyzes the over-all strategic situation since the outbreak 
of hostilities between Japan and the U.S.A., its implications 
for the warring powers, as well as the future tasks confronting 
Japanese, Italian, and German naval warfare. Admiral Nomura 
then declares that the viewpoint of the German Naval Staff coin- 
cides entirely with his own and that of the Japanese Admiralty 
Staff, and that he will discuss further points during the after- 



-171- 



9862 



17 Dec. 19^1 CONFIDENTIAL 

noon session. In conclusion, the Commander in Chief, Navy points 
out the crucial importance of the present phase of this war. He 
emphasizes the necessity for close and confident cooperation be- 
tween the three navies, and expresses his firm belief in a common 
victory. 

On the whole the conference progressed in a very satisfactory and 
dignified manner. It is gratifying to note that the Italian as 
well as the Japanese Liaison Staff seems ready and eager to cooper- 
ate fully and honestly. 

(For details of the talk by the Commander in Chief, Navy and the 
report by the Chief, Operations Division, Naval Staff, see War 
Diary, Part C, Vol. XV.) 

At 1500 Admiral Nomura discussed special points with the Chief of 
Staff, Naval Staff. For the minutes of this meeting see War Diary, 
Part C, Vol. XV. 



Situation 17 Dec. 19^1 

I. War in Foreign Waters 

1. Enemy Situation : 

North Atlantic ; 

Radio monitoring reports that the CUMBERLAND was loca- 
ted off Iceland on 16 Dec. Another cruiser was located in ap- 
proximately 60° N 10° W the evening of 15 Dec. The INDOMITABLE 
was in the West Indies on 15 Dec. A South American press report 
states that French vessels in Martinique are under guard of U.S. 
naval vessels in order to prevent their delivery to Germany. 

South Atlantic : 

DEVONSHIRE, auxiliary cruiser CANTON, and destroyer 
VANSITTARD were located in the Freetown area on 15 Dec. Radio 
monitoring located a British submarine on 5 Dec between 23° 
and 26° N, 17° and 18° W. On 17 Dec the British motor ship KING 
WILLIAM reported a vessel suspected of being a submarine trap 
south of the Ivory Coast, and the steamer NAILSEA MOOR sent In a 
similar report 300 miles southeast of there. The vessel in ques- 
tion was presumably a British patrol craft. According to an 
Italian report a large U.S. convoy carrying war materiel Is ex- 
pected to arrive in Suez within the next few days. 

2. Own Situation : 

The German Ambassador to the Vatican reports that the 
Apostolic Delegate to Australia reported the number of rescued 



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9862 



17 Dec. 1941 CONFIDENTIAL 

from the CORMORAN at 26l, among them several wounded. According 
to British reports so far received approximately 320 men are sup- 
posed to have been rescued, 

Radiogram 2317 advised motor ship PORTLAND of the recognition sig- 
nal for her rendezvous vith Japanese naval forces and directed her 
to advise radio station Norddeich over long and short wave fre- 
quencies 48 hours before she plans to put into port. Radiogram 
0137 advised the PORTLAND about the location of the Japanese for- 
ces which are to meet her. 

Report on the enemy situation sent by Radiogram 2155. Radiogram 
1616 from Naval Staff, Operations Division directs Admiral, 
Prance; Commanding Admiral, Submarines; Supply Ships Unit, 
Branch Office West (copy to Group West) to welcome the returning 
crews of ship "16" and PYTHON. The Commander in Chief, Navy will 
tender the official welcome to the crew of ship "16" in Berlin. 
Further details will be arranged by the Office of General Navy Af- 
fairs. 



II. Situation West Area 
1. 5nemy Situation ; 

Nothing to report. 
2.- Own Situation : 

Atlantic Coast ; 

Forty five enemy planes raided Brest in the evening of 
17 Dec. The shipyards, power station, and the air base Brest 
South were slightly damaged. 213 high explosive bombs as well 
as 250 to 290 flares and incendiary disks were dropped. The de- 
parture of ship "10" was postponed as requested by the responsi- 
ble authority (Group West, Tr.N.). 

The small forces of the Commander, Air, Atlantic Coast are insuf- 
ficient to furnish an escort force to Group West for the depart- 
ing ship "10" and at the same time conduct long-range reconnais- 
sance to locate enemy convoys for the Commanding Admiral, Subma- 
rines. Since a compromise cannot be reached between Group West 
and the Commanding Admiral, Submarines, Group West requests a 
ruling giving the final decision in similar cases hereafter to 
the Commanding Admiral, Group West. 

The Naval Staff decides as follows: Submarine operations against 
convoy HG 77 which we are trying to locate should be interfered 
with as little as possible # since these operations seem to be very 
promising. However, reconnaissance service for ship "10" has 
priority during the two critical days when the ship passes the 



966 2 

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17 Dec. 1941 CONFIDENTIAL 

north-south route. Since convoy HG 77 vill presumably be located 
along the southern edge of route "Anton", the aerial reconnaissance 
service available most likely will be able to discharge both duties 
simultaneously on those two days. The Naval Staff recommends that 
Group West consider whether it would not be opportune to postpone 
the departure of ship "10". Such action might be advisable for 
reasons other than the fact that on 22 Dec. the available planes 
must be used to locate the enemy convoy. 

It is impossible to delegate to the Commanding Admiral, Group West 
the authority over' the commitment of the long-range reconnaissance 
planes. This authority must remain with the Naval Staff, since 
the FW 200' s were transferred to the West Area by order of the 
Fuehrer for the support of submarine warfare. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 
Nothing to report. 

2. Norway : 

Enemy Situation : 

Radio monitoring reports that the KENT is located in 
the area off the Murmansk coast. The CUMBERLAND will presumably 
approach the Murmansk coast from the Iceland area. At 17^0 a 
British vessel reported German naval forces J>0 miles east of 
Svyatoi Noss. 

Own Situation : 

At 1946 the 8th Destroyer Flotilla reported a battle 
engagement with two enemy destroyers In the area J>0 miles east 
of Svyatoi Noss. By 20 Dec. destroyer Z "26" will presumably 
again be ready for duty. 

Our convoys proceeded according to plan without enemy interfer- 
ence. 

In reply to the inquiry from the Naval Staff (see War Diary 
16 Dec.) Group North reports that it plans to send the 5th Mine- 
sweeper Flotilla consisting of four vessels to Norway toward the 
end of January. However, this flotilla will be transferred only 
if such action does not interfere with the operations of the Com- 
mander, Mine Units, North, and if no additional escort operations 
make it necessary for the flotilla to Remain In the East Area. 
Group North is also trying to maintain the present number of es- 
cort and minesweeper flotillas under the command of the Command- 
ing Admiral, Norway. However, it will be possible to transfer 



-174- 9862 



17 Dec. 1941 CONFIDENTIAL 

« 

additional vessels to the Commanding Admiral, Norway only when 
the Commander, Mine Units, North has completed his operations in 
the East Area (see Radiogram 1233). 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea ; 
Nothing to report. 



V. Submarine Warfare 

1. Enemy Situation ; 

The escort vessel STORK sighted German submarines, evi- 
dently in the area west of Gibraltar. 

2. Own Situation ; 

Contact with enemy convoy HG 77 was re-established. 
Reports so far received state that one steamer was torpedoed. 
See War Diary, Part B, Vol. IV for a detailed report on the sit- 
uation. 

See War Diary, Part C, Vol. IV for deliberations by the Chief, 
Operations Section, Naval Staff on the tasks and possibilities 
of submarine warfare in the Atlantic. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

Aerial reconnaissance over the northern North Sea and 
the east coast sighted nothing of importance. 

During the evening, twenty seven planes flew combat missions 
over Newcastle and ten planes flew missions against shipping. 

2. Mediterranean Theater ; 

The 26th Bomber Squadron, Second Air Corps attacked an 
enemy force located by our reconnaissance planes. At 13^9 a 
heavy cruiser was hit with two aerial torpedoes which exploded 
on a level with the military mast. A jet of flames was observed 
and the cruiser was seen slowing down. During the second attack 
at 1435 a cruiser or destroyer was hit by an aerial torpedo and 
a high jet of flames was observed. Later on followed a third 
attack by Stuka planes, during which heaviest type bombs exploded 



9862 

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17 Dec. 19^1 CONFIDENTIAL 

close to the gunwale f a light cruiser, a heavy cruiser, and a 
destroyer. Further observation was made impossible by effective 
anti-aircraft artillery. 

3. Eastern Front : 

An analysis of the reports has not yet been received. 



VII. Warfare in the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean : 

The British submarine URSULA is supposed to leave the 
Mediterranean for home on 26 Dec. A Spanish report states that 
an eastbound convoy was sighted off Cape Tres Forcas at 0400. 
Toward midnight, the British force "MSOW" was located in the area 
east of -Gibraltar. 

Central and Eastern Mediterranean : 

The enemy task force of one battleship, two cruisers, 
and eight destroyers which was reported north of the Gulf of Sol- 
ium on 16 Dec. was again located by German reconnaissance planes 
at 0912 in 20°, 170 miles from Benghazi. Our planes tracked the 
enemy task force all day and reported its location on westerly 
to southerly course in the sea area northwest of Benghazi. Dur- 
ing the morning, a smaller enemy force of one cruiser, three de- 
stroyers and one steamer was reported northeast of the Gulf of 
Solium, and another small enemy force of two cruisers and one 
merchantman was reported east of the Gulf of Solium. All these 
vessels were probably part of one single force. During the morn- 
ing, Italian reconnaissance planes located two cruisers and sev- 
eral destroyers in the sea area off Alexandria and two battle- 
ships in the harbor of Alexandria. 

During the morning, two cruisers and ten destroyers on a south- 
erly course were sighted in the central Mediterranean. Aerial 
reconnaissance reveals that no cruisers are lying in Malta. 

Our radio monitoring service reports that British planes give a 
continuous account of the movements of our supply convoy which 
departed for North Africa on 16 Dec. The planes were ordered 
to attack British vessels which were mistaken for enemy forces. 
Intercepted enemy reports and courses steered by enemy naval 
forces show that the enemy must have been fully Informed of the 
extent and movements of the Italian forces. 

A report from the British Admiralty states that the large Italian 
submarine ADMIRAL CARRACIOLA was sunk by destroyer FARANDEL in 
the central Mediterranean. The submarine was en route from Bardia 



9862 

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17 Dec. 19^1 CONFIDENTIAL 

to Italy. Aboard were twenty Italian officers, among them the 
Chief of Engineers of the Italian Army, General Lami. Fifty three 
survivors were rescued. General Lami was not among the survivors. 

i 

2. Own Situation ; 

The planned operation of the 3rd PT Flotilla was cancel- 
led because of weather conditions. 

3. Situation Italy ; 

The Italian convoy of four steamers left Taranto on 
16 Dec. The DUILIO group, consisting of the battleship DUILIO, 
three light cruisers, and four destroyers, closely guards the 
convoy. Three battleships, LITTORIO, CESARE, and DORIA and the 
heavy cruisers GORIZIA and TARENT as well as ten destroyers are 
at sea as additional support. 

At 1500 the LITTORIO group was located approximately 50 miles 
north of the main enemy force, while the DUILIO group with the 
convoy was about 55 miles northwest of it. German and Italian 
reconnaissance planes reported exact data on the strength and 
movements of the enemy force to the Italian Chief of the Fleet. 
He realized that the enemy force was moving in the direction of 
that area which the convoy had to reach at dusk. In the after- 
noon, the Italian Admiralty gave permission to the Chief of the 
Fleet to steer whatever course he deems best, and to resume the 
course to the ports of destination in the morning of 18 Dec 
Thereupon the convoy was ordered to steer a course to 32° 30' N 
15° 45' E after dark, after having temporarily reversed course. 

No reports of a battle engagement were received during 17 Dec. 

4. Transport of Supplies to North Africa ; 

See Situation Italy for the transport operation of the 
52nd Squadron. The squadron consists of the steamer ANKARA, 
which is to transport supplies to Benghazi, and the steamers 
NAPOLI, VICTOR PISANI, and M0NGINEVR0 which will transport sup- 
plies to Tripoli. 

One destroyer and one transport submarine arrived in Benghazi 
on 16 Dec. The transport submarine left in the evening for 
Bardia with foodstuffs. Two more transport submarines are en 
route to North Africa. One naval barge left Benghazi in the 
afternoon of 16 Dec. bound for Derna and another left Derna for 
Bardia that day. 

5. Area Naval Group South ; 
Aegean Sea ; 

Enemy Situation ; 
Nothing to report. 



-177- 9862 



17 Dec. 194l CONFIDENTIAL 

Ovn Situation ; 

On 16 Dec. the Italian torpedo boat ORIONE sighted and 
rammed a submarine vhich was held to be of enemy origin. The 
ramming took place at 2230, approximately 15 miles vest of Crete. 
The ORIONE arrived in Suda heavily damaged. Reports from Group 
South and the German Naval Command, Italy state that it is feared 
that the rammed submarine may have been the German U "557" which 
was on her way back to Salamis. The submarine was placed under 
the command of the 2?rd Submarine Flotilla on 15 Dec. U "557" 
did not comply with the request to report her position. The ram- 
ming occurred in the zone in which a submarine chase must be pro- 
hibited now and then. 

Admiral, Aegean and the 2j5rd Submarine Flotilla have instituted 
aerial reconnaissance and rescue operations. 

Since the transfer of the "Siena Division" to Crete has been com- 
pleted, the German Naval Command, Italy requests Admiral, Aegean; 
Group South; the German General at Headquarters, Italian Armed 
Forces; and the Naval Staff to investigate whether it might be 
possible to postpone further transport operations so that the 
ships and escort forces can be used for carrying supplies to North 
Africa in view of the critical situation there. (See Radiogram 
1300.) 

The Italians plan to erect a temporary base, a "Base Passegiara", 
in Suda. Admiral, Aegean and Group South inform the Armed Forces 
Commander, Southeast that they are opposed to this Italian at-- 
tempt to gain a footing in Suda. See War Diary, Part C, Vol. XIV 
for a copy of the corresponding teletype from the Admiral, Aegean 
and Group South. Entry made in the Diary as per l/Skl 29214/41 
Gkdos. 

Black Sea ; 

Enemy Situation ; 

The merchantmen and destroyers which were sighted 90 
miles south of Yalta on 16 Dec. were proceeding eastward at full 
speed. An SOS signal from a Russian vessel, presumably a mine- 
sweeper, was intercepted in the area. 

Own Situation ; 

The supply transport operation "Urlaubstoern" was ex- 
ecuted according to plan. The three steamers which took part in 
the operation anchored east of Ochakov. The convoy broke 
through a new enemy mine field. 

Otherwise nothing to report. 



9862 

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17 Dec. 1941 CONFIDENTIAL 

VIII. Situation East Asia 

1. Enemy Situation ; 

The radio monitoring service reports that the following 
vessels are lying in Singapore ; five cruisers, four destroyers, 
and six submarines. 

In Colombo are: REVENGE, HERMES, and EAGLE. 

In Australia are: five cruisers. 

A report from the Army General Staff states that the convoy which 
left England for Egypt during the last days of September was on 
26 Nov. approximately 350 miles west of the northern point of 
Sumatra. Half a division of troops and the tanks which were a- 
board the convoy have meanwhile reached Singapore. A further, 
but unconfirmed, report states that a group of naval vessels 
carrying troops as replacements from India to Libya is now pro- 
ceeding in the direction of Rangoon. A report from the U.S. War 
Department states that the islands of Guam and Wake are so far 
successfully resisting the Japanese attacks. U.S. Army bombers 
successfully attacked Japanese troop transports off Luzon. 

2. Situation Japan : 

The Japanese landing on Borneo took place near Miri 
(oil region) . Japanese reports state that the Philippine Island 
of Cebu has been occupied. Press reports state that five British 
torpedo boats and one gun boat were sunk in the harbor of Hong 
Kong. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

Our positions in the Crimea were shelled by enemy naval 
artillery. Only little fighting on the 1st Panzer Army sector. 

Nothing to report from the 17th and 6th Army sectors. 

Central Army Group : 

The enemy break-through between Livny and Verkhovie was 
stopped. Strong enemy troop contingents are being brought up 
from Yelets. At the 4th Army sector, the withdrawing Army Corps 
are fighting rear guard battles. It has been determined that the 
enemy is bringing up troops from Tula. They are advancing in 
the direction of Aleksin and Dubna. No noteworthy fighting on 
the 9th Army sector. 



-179- 



17 Dec. 19*U CONFIDENTIAL 

Northern Army Group ; 

Enemy attacks on "both aides of Volkhovstroy were re- 
pulsed. Much artillery activity in the other sectors. 

2. Finnish and Norvegian Front : 

Enemy attacks along the Svir front and near Oshta as 
well as on the sector of the III Finnish Army Corps were repulsed. 

5. North Africa : 

So far the enemy followed the withdrawing units of the 
Panzer Group only slowly. Our air reconnaissance determined that 
the enemy is maneuvering to pass our forces to the southwest in 
the direction of Agedabia. This necessitates a withdrawal of the 
Panzer Group to the Agedabia-Benghazi zone. 

An unlikely report from the Italian Naval Command received on 
16 Dec. states that four heavy cruisers, nineteen destroyers, 
and thirty three steamers were located in the western Mediterranean 
on a westerly course. A landing operation in the Gulf of Sidra is 
considered possible. 



*****#**#•***********«*** 



9862 

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CONFIDENTIAL 
18 Dec. 19*U 

Items of Political Importance 

Great Britain t 

The Deputy Foreign Minister declared in the House of Commons that 
China is in every sense an ally of Britain. Therefore she will 
of course participate in Inter-Allied conferences. He stated 
that the reports which declare that Mozambique and Angola have 
been promised to the Union of South Africa are enemy propaganda 
rumors. Various reports indicate that the newly created Allied 
War Council will formulate basic plans for future operations. 
The most important decision to be made is against which of the 
two, Germany or Japan, an all-out attack is to be directed first. 
The fact that the governments of Australia and New Zealand left 
no room for doubt that they expect substantial American and Brit- 
ish support, will certainly influence the final decision. The 
fact that American public opinion holds Japan to be the foremost 
enemy will also have to be taken into consideration. Decisive 
importance is ascribed to the attitude of the Soviet Union, which 
considers the defeat of Germany to be the main task. 

Other reasons besides those cited above may deter- 
mine the outcome of the Allied War Council confer- 
ences. The British point of view is the most ob- 
vious one. Britain will never abandon her posi- 
tion in the Far East without a fight. She is de- 
termined to exert her utmost efforts to defend 
Singapore. 

The Food Minister stated that the new situation would not necessi- 
tate an immediate reduction of the food rations, since the Pacific 
war has long been anticipated. However, next year's clothing 
ration would have to be curtailed. 

War insurance premiums on cargoes between Britain and other con- 
tinents were substantially increased on 17 Dec. Only the pre- 
miums on shipping between Britain and the east coast of South 
America have remained unchanged. 

Portugal ; 

The Council of Ministers conferred on the serious events which 
transpired on Timor Island in the nature of the occupation of the 
island by Australian and Dutch troops. The report that the Japa- 
nese occupied Macao is officially denied. 

The occupation of Timor might possibly establish 
a precedent for the occupation of other Portuguese 
islands and colonies, primarily the Azores. In 
this respect it is fortunate that it was not Japan 
who occupied Timor. 



9862 

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18 Dec. 19*11 CONFIDENTIAL 

U.S.A .: 

An official report states that Admiral Klmmel was relieved of the 
command of the Pacific Fleet. A committee has been formed to In- 
vestigate just what happened during the Japanese attack on Pearl 
Harbor. A Reuter dispatch states that American technicians have 
arrived in Eritrea in order to enlarge the naval base at Massawa 
and that more military personnel and civilian workers are en route, 
They will erect factories, assembly plants, and repair shops. The 
administration of the colony is to remain under British control. 

Argentina ; 

Concerning the recurrent reports that Britain will cede the Falk- 
land Islands to the U.S.A., the Argentine Foreign Minister de- 
clared that there can be no question of ceding the islands to any 
nation but Argentina. 

Uruguay ; 

The Government resolved to consider the U.S. a nonbelligerent in 
the war against Japan and all other Axis Powers. 

China: 

The British General, Denys, has been named Plenipotentiary to the 
Chungking Government. He is to organize joint military operation 
by British and American armed forces. 



Conference on the Situation with the Chief, Naval Staff . 

I. The Chief, Naval Staff, Quartermaster Division reports that 
measures are being considered jointly with the Naval Construction 
Division and the representative of the Submarine Branch on the 
Naval Staff to improve the situation now prevailing in regard to 
submarine construction. By cutting the number of new submarines 
to be built down to twenty, the congestion of repair facilities 
and shortage of personnel would be relieved considerably, the 
latter particularly in regard to officers. The Chief, Naval Staff, 
Quartermaster Division further reports on the curtailment of the 
monthly motor fuel oil quota. Beginning 1 Feb. 19^2 this quota 
will be reduced from 40,000 tons to 32,000 tons per month. The 
report also covers the consequences of the fuel oil quota cut- 
back which is already in force. 

The Chief, Naval Staff approves the proposal of the Naval Staff, 
Quartermaster Division that the steamers POTSDAM and GNEISENAU, 
lying in Hamburg, be used as floating living quarters for the 
crews of eleven submarines undergoing repairs in the Hamburg ship- 
yard s . 

II. The Naval Staff, Political and Propaganda Section reports 
that the French Admiralty Staff has forwarded thanks for the 



9662 

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18 Dec. 19^1 CONFIDENTIAL 

rescue of French shipwrecked sailors. The report also states that 
it is impossible for steamer WARTENFELS to depart from Diego 
Suarez (Madagascar) since the coal destined for this ship was car- 
ried by the French convoy which was taken as a prize by British 
naval forces some time ago. Furthermore, the report covers the 
discussions of the Armistice Commission concerning the transfer of 
French ships to Germany and Italy. The French are objecting stren- 
uously to any such move in view of their own needs for all vessels, 
and particularly in view of British measures to prevent French 
ships from falling into German or Italian hands. The tonnage of- 
fered to us by the French is considerably lower than what we de- 
manded, and the French are asking fuel oil in exchange. The Naval 
Staff, Political and Propaganda Section also reports on the prog- 
ress of the German- Spanish conferences concerning Spanish shipping 
to enemy countries. 



Special Items ; 

I. Considerations regarding the destruction of Benghazi and Derna : 

The development of the situation in North Africa demands that we 
analyze the necessity for destroying Benghazi and Derna. After 
presentation of the pros and cons for destruction, the Commanding 
Admiral, German Naval Command, Italy closes as follows: the advan- 
tages and disadvantages of destroying the two cities were analyzed 
and an estimate was made of the probable outcome of the fighting 
in North Africa during the next two months. Both factors lead to 
the conclusion that there is immediate danger of a further British 
advance into Tripolitania, while chances are slight that the situ- 
ation will develop in such a way as to permit us to retake 
Cyrenaica at a later date. It is therefore proposed that immedi- 
ate steps be taken to destroy Benghazi and Derna completely, con- 
centrating on port installations and fuel storage facilities in 
doing so. A final decision in this matter can be made only by 
highest authority. See War Diary, Part C, Vol. XIV for the tele- 
type from the Commanding Admiral, Naval Command, Italy, as per 
Commander in Chief, Navy, Op 2135A* Gkdos. Chefs. 

The Naval Staff endorses the view of the Commanding Admiral, Naval 
Command, Italy and forwards it to the Navy Liaison Officer at the 
Armed Forces High Command for his personal information. The Com- 
manding Admiral, Naval Command, Italy Is notified of this proce- 
dure. The Naval Staff presumes that the Commander in Chief, South 
will see to It that the Armed Forces High Command makes a deci- 
sion. 

II. Turkish-British Cooperation : 

The Naval Staff reviews this question thoroughly. Evidence of 
Anglo-Turkish cooperation was obtained mostly by decoding the 
radio reports from the British Naval Attache at Istanbul to the 
British Admiralty. It is the opinion of the Naval Staff that 
the over-all picture of the compiled material warrants a further 



9862 

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18 Dec. 1941 CONFIDENTIAL 

careful Investigation of the internal and external political for- 
ces influencing Turkey's attitude, since it Is not at all certain 
that Turkey vill indefinitely retain her present neutral status 
under constant enemy pressure. See War Diary, Part B, Vol. V for 
the text of the reviev given by the Naval Staff, as per l/Skl Ic 
28698/41 Gkdos. 



Situation 18 Dec. 1941 
I. War in Foreign Waters 
1. Enemy Situation : 
North Atlantic: 



Bermuda . 



On 12 Dec. a British vessel departed from Halifax for 
Pacific Ocean: 



The U.S. radio station at Palo Alto warned U.S. mer- 
chantmen about an enemy submarine which was located 270 miles 
southwest of San Diego on 17 Dec. 

2. Own Situation : 

Radiogram 1616 informs the Armed Forces High Command, 
Operations Staff of the receipt of a top secret Japanese, communi- 
cation to the effect that the entire Pacific has been declared a 
war zone in which ships will be attacked without warning, and 
that the Japanese Navy does not want our ships to carry special 
Identification markings. 

Radiogram 2009 advises all ships in foreign waters which codes 
are to be used In communications. 

Reports on the enemy situation sent by Radiograms 0125, 2114, and 
2202. 



II. Situation West Area 



1. Enemy Situation : 



During the day lively enemy air activity over the Atlan- 
tic coast. A report from a foreign agent states that U.S. trans- 
port vessels arrived in North Ireland ports between 1 and 4 Dec, 
bringing technicians, workers, and ground personnel as well as 
machinery and tools for the construction of U.S. air bases. 



9862 

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18 Dec. 19^1 CONFIDENTIAL 

The aircraft carrier ALBAMALE (U.S. seaplane tender ALBEMARLE? 
Tr.N.) unloaded several planes and approximately ninety officers. 

For details see Radiogram 1212. 

2. Ovn Situation : 

Atlantic Coast : 

A "bomb struck the dock near the GNEISENAU during enemy 
air raids from 1330 to 1^45 and from 1930 to 2041. Her outer hull 
vas damaged starboard aft and sprung a small leak. Two men were 
killed.. Nothing happened to the SCHARNHORST, but the dock cais- 
son was damaged. No damage was done to the PRINZ EUGEN either. 
Numerous bombs landed in the immediate vicinity of the vessels and 
the harbor area in general, where they caused slight damage in 
spots. 

On the basis of these air raids, Commanding Admiral, Battleships 
once more emphasizes the urgent need for reinforcing the present 
anti-aircraft artillery and pursuit plane protection of Brest. 
Temporary measures to improve facilities for night pursuit planes 
must be speeded up. (See Radiogram 2215.) 

Since it was to be expected that latest develop- 
ments would result in a grave threat to the vessels 
in Brest, the Naval Staff had already ordered the 
Naval Staff, Quartermaster Division to investigate 
what additional measures can possibly be taken to 
defend Brest. Detailed data will follow. 

Channel Coast : 

Nothing to report. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

;}ome enemy air activity. East of Great Yarmouth, air 
reconnaissance sighted a convoy of ten steamers on a northerly 
course. 

Own Situation : 

Nothing to report. 

2. Norway : 

Enemy Situation : 
Nothing to report. 



9862 

-185- 



18 Dec. 19^1 CONFIDENTIAL 

Ovn Situation : 

At 1400 the 8th Destroyer Flotilla reports passing Fugloe 
en route to Tromsoe. No report has yet "been received on the battle 
engagement with the enemy destroyer on 17 Dec. Subchaser "121V 1 
reports an artillery duel with an enemy submarine which was tracked 
down in Jkjk AC. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea : 

The Naval Commander, Baltic Countries reports that an icebreaker 
and a 10,000 ton auxiliary vessel crossed the TMB mine barrage 
in the shipping channel from Leningrad to Peterhof without sus- 
taining any damage. (See Radiogram 2100.) Otherwise nothing to 
report. 



V. Submarine Warfare 

1. Enemy Situation : 

Radio monitoring reports that escort vessel STORK 
sighted a surfaced submarine about 230 miles north- northeast of 
Madeira. The STORK, the destroyer ARROW, and the escort vessel 
DEANKLY were part of a convoy. The British Admiralty announced 
that a German submarine sank the cruiser DUNEDIN in the Atlantic. 
In a detailed critique on the sinking of the French vessel ST 
DENIS and the Spanish vessel BADAL0NA, the British Admiralty tries 
to prove that only a German submarine could have been responsible. 
A press report states that the Portuguese steamer CASSEQUEL was 
sunk by a submarine 200 miles off Lisbon. Radio monitoring inter- 
cepted a report from reconnaissance planes stating that two sub- 
marines were sighted in the Gibraltar area. 

2. Own Situation : 

Contact with convoy HG 77 was lost several times but 
could always be re-established. A submarine in the eastern Med- 
iterranean reported that it scored three hits on a cruiser of 
the LEANDER class, but did not observe whether it sank. However, 
the report states that this may be assumed certain. There are no 
new reports as to the whereabouts of submarine U "557"* which 
must be presumed lost after being rammed by the Italian torpedo 
boat 0RI0NE. A search for survivors at the scene of the acci- 
dent was unsuccessful. For further report on the situation see 
War Diary, Part B, Vol. IV. 



9662 
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18 Dec. 19^1 CONFIDENTIAL 

VI. Aerial Warfare 

1. British Isles and Vicinity : 

Our regular daylight air missions in the West Area shot 
down 13 enemy planes. See Situation West Area for details of the 
enemy air raid on Brest. Armed reconnaissance reports that 
Group 1 of the 26th Bomber Wing damaged a steamer of 2,000 BRT. 

2. Mediterranean Theater ; 

A report was received giving the result of the Stuka 
attack on a British naval force on 17 Dec It states that one 
destroyer was damaged. No further results were observed. On 
18 Dec, an Italian plane made a torpedo attack on a cruiser 35 
miles southeast of Malta and reported scoring one hit. For re- 
ports of aerial reconnaissance see Situation Mediterranean. 

3. Eastern Front ; 

Slight air activity in support of Army operations. For 
observations made by aerial reconnaissance see Enemy Situation, 
Black Sea. 



VIII. Warfare in the Mediterranean 

1. Enemy Situation ; 
Western Mediterranean : 

A normal number of vessels are lying in Gibraltar. 

Central and Eastern Mediterranean : 

Contact with the enemy task force was lost on 17 Dec. at 
1715 in 330°, 85 miles off Benghazi. On 17 Dec. at 1815, an 
Italian submarine sighted the Malta Group 4o miles south of Malta. 
On 18 Dec. radio monitoring intercepted reports from enemy planes, 
giving data and positions of the Italian convoy and the two Ital- 
ian task forces. In the morning, German air reconnaissance spot- 
ted a cruiser, two steamers, and five destroyers which were 
steaming westward 65 miles south of Malta. Italian air reconnais- 
sance later spotted the enemy force 30 miles south of Malta and 
reported its strength as two heavy cruisers, one light cruiser, 
several destroyers, and three steamers. At 0928, radio monitor- 
ing intercepted a report from the British task forco which had en- 
gaged the main Italian naval force in battle on 17 Dec. at 17^5, 
stating that it was under air attack. 

2. Situation Italy : 

The enemy naval force south of Malta was attacked by 
Italian torpedo planes which allegedly scored hits on a cruiser 



-187- 



18 Dec. 19^1 CONFIDENTIAL 

(see Aerial Warfare, Mediterranean Theater). The Italian convoy- 
is proceeding to Tripoli as planned, closely guarded hy the 
DUILIO and LITTORIO task forces. In compliance with orders, 
steamer ANKARA left the convoy at 1300 in 33° latitude and pro- 
ceeded to Benghazi. The danger of enemy air raids kept the main 
convoy from putting into Tripoli. An enemy air raid is said to 
have inflicted slight damage on the steamer NAPOLI which was 
travelling in the convoy. Two Italian destroyers rammed each 
other during the night of 17 Dec. 

Reports stating that steamers on a northerly course were sighted 
south of Malta lead to the conclusion that the mission of the 
enemy task force may have been to safeguard the east-west pas- 
sage of British steamers, and not to attack the LITTORIO task 
force and the Italian convoy. The main Italian naval force turned 
hack after the steamer ANKARA left the convoy. No details on the 
"battle engagement with the enemy on 17 Dec. have as yet been re- 
ceived. 

The conjecture of the Italian Naval Command as to the mission of 
the enemy naval force allegedly consisting of four battleships 
and thirty three steamers [see War Diary 17 Dec, Army Situation), 
is not considered likely by the Admiral, German Naval Command, 
Italy. He does not believe that the enemy will try to land in 
the Gulf of Sidra, since chances for the success of such an oper- 
ation are slight, and recommends that the estimate of the naval 
situation by the Italian Admiral in Libya be regarded with corres- 
ponding caution. 

The Naval Staff agrees with this critique. 

3. Transport of Supplies to North Africa : 

A transport submarine arrived at Benghazi on 18 Dec. 
Otherwise nothing to report. 

4. Area Naval Group South ; 
Aegean Sea ; 

Nothing to report. 

Black Sea : 

Enemy Situation ; 

Air reconnaissance reports sighting a battleship cam- 
ouflaged with trees and houses in the harbor of Sevastopol. In 
addition, from 60 to 80 ships of all types are in the harbor, 
mostly small vessels. Unescorted vessels were seen entering and 
leaving Sevastopol. 

Own Situation : 

Transport operations proceeding according to plan. 
Otherwise nothing to report. 



-188- 



18 Dec. 1941 CONFIDENTIAL 

IX. Situation East Asia 

1« Enemy Situation ; 

Radio London states that the Dutch Fleet sank another 
Japanese tanker and a Japanese steamer besides the four transport 
vessels previously sunk. Radio Daventry reports that Japanese 
planes raided Rangoon, hut this is officially denied in Rangoon 
and in New Delhi. Radio Daventry also reports that the Austra- 
lians are evacuating Port Darwin and that Penang is seriously 
threatened . 

2. Ovn Situation : 

On the basis of the Thai-Japanese military pact, Thai- 
land takes charge of the defense of her northwest frontier with 
Burma. The German Naval Attache at Tokyo forwards the following 
message from the Japanese Admiralty Staff: 

1. Intelligence reports from Hawaii reveal that a fourth U.S. 
battleship and the target vessel UTAH were sunk. On the damaged 
vessels most of the superstructures were destroyed. 

2. Five midget submarines of 40 tons, with three-man crews, 
and two torpedoes each were also used in the attack on Pearl Har- 
bor. 

3. Johnston Island and Baker Island were shelled by submarines. 
Greatest optimism prevails concerning all operations. 

See War Diary, Part C, Vol. XV for a compilation of Japanese a- 
chievements up to this time. 

According to a message from Admiral Nagano, transmitted by the 
Naval Attache at Tokyo, the attack on Wake is planned for 22 Dec. 
Japanese troops will be landed near Kuching, on western Borneo, 
within the next few days to seize the air base there. 



X. Army Situation 

1. Russian Front : 

Southern Army Group : 

The attack on Sevastopol, which started on 17 Dec, 
was continued, and our troops gained some territory. No fight- 
ing on the front of the 1st Panzer Army. The situation on the 
17th and 6th Army sectors remained unchanged. 

Central Army Group : 

Enemy attacks on the 95th Infantry Division were re- 
pulsed. The XLVTI and III Army Corps moved to new positions. 



9862 

-I89- 



18 Dec. 19^1 CONFIDENTIAL 

The enemy forces which pierced our lines west of Dubna were stop- 
ped. Strong enemy attacks along the entire Moscow front, especial- 
ly near Rusa. 

Northern Army Group ; 

Our forces were able to repulse all enemy attacks. 

2. Finnish and Norwegian Front ; 

We again have firm control of our main line of resist- 
ance near Oshta. Otherwise the situation remains unchanged. 

J. North Africa ; 

Large enemy forces followed our withdrawing troops in 
the direction of El Mechili-Derna. Derna was still in our hands 
the evening of 18 Dec. Enemy troop columns continued their en- 
circling movements by advancing generally in a westward direction. 

Enemy attacks on Bardia were repulsed. On 19 Dec. our troops are 
scheduled to continue their withdrawal to the west. The Duce has 
forwarded the following directive to the Command of the Panzer 
Group through General Cavallero; "Tripolitania must be defended 
under all circumstances. In this connection Cyrenaica and par- 
ticularly Benghazi are to be held if at all possible." 



it************************ 



9862 

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CONFIDENTIAL 

19 Dec. 1941 

Items of Political Bnportance 

France : 

Although the French Government calls the seizure of French vessels 
In U.S. ports only a "protective measure", Admiralty circles are 
avare that this action by the U.S.A. constitutes but the first step 
towards incorporating those vessels into the U.S. Navy. 

Great Britain : 

The War Minister explained in the House of Commons that the in- 
creased danger of a German invasion calls for a law making ser- 
vice in the Home Guard compulsory. It is not planned to draft 
women. General Wavell stated that the Japanese sustained heavy 
losses and are still a long way from overrunning Malaya. Although 
it will be impossible to hold Penang, the Japanese will not be able 
to exploit their advantages immediately, and everything has been 
done to improve Britain's position. 

Japan ; 

According to a confidential message from military circles, it is 
hoped in Tokyo that once the British and U.S. bases have been 
eliminated, the Dutch East Indies will be ready to negotiate and 
make the necessary amount of oil available without a fight. 

' French Indo-China t 

The Governor General of French Indo-China and local Japanese mili- 
tary authorities at Hanoi have entered into a military agreement 
about cooperation, or division of operations, between the Japanese 
and French Indo-China armies. All air bases are at the disposal 
of the Japanese and all mail and telegram service is under Japa- 
nese control. 



Conference on the Situation with the Chief, Naval Staff . 

I. The Chief, Naval Communications reports on conferences with 
the Japanese Navy concerning the lease of radar gear for air and 
sea forces to the Japanese and transmittal of the blueprints for 
Japanese two-man submarines to the German Navy. The report also 
covers possibilities for transporting goods by blockade-runners 
and large Japanese submarines with a cruising radius of 16,000 
miles. The Chief, Naval Staff agrees on all points. 

II. Ship "23" and ship "lV are being equipped with improved 
armament on the basis of past experiences in merchant raider war- 
fare. The shipyard operations required for making these improve- 



9B62 

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19 Dec. 19^1 CONFIDENTIAL 

ments reduce the capacities for other jobs to such an extent that 
the Chief, Shipbuilding and Construction Department reports it 
impossible to keep scheduled delivery dates for submarines. The 
Chief, Nayal Staff decides that work on submarines has priority 
over auxiliary cruisers . 

III. In view of the fact that anti-submarine defenses In the Gi- 
braltar area are strong and have already caused the loss of a con- 
siderable number of German submarines, the Naval Staff is consider- 
ing to what extent it is practical to withdraw the large submarines 
from that zone of operations since they are most vulnerable to 
anti-submarine weapons. 



Special Items : 

I. Concerning the Military Agreement with Japan ; 

The Naval Staff, Operations Division made a detailed study of the 
draft for a military agreement between Japan, Germany, and Italy 
forwarded by the head of the Tripartite-Pact Military Commission, 
delivered also by Admiral Nomura on 17 Dec Prom the viewpoint 
of naval strategy, the Naval Staff has no objections to the terms 
of the agreement, since Admiral Nomura emphasized that the "Zones 
of Operations" clause entails no permanent commitments. Admiral 
Nomura gave the assurance that nothing stands In the way of rear- 
ranging zonal boundaries whenever the situation requires. 

However, the Naval Staff believes that it Is unnecessary to de- 
fine a zone by geographic coordinates solely for reasons of naval 
warfare, when such boundaries must be rearranged to conform with 
subsequent requirements and are of little interest to the Army 
and the Air Force on land. Therefore, one might be led to suspect 
that we have here a Japanese attempt to effect a partition of po- 
litical spheres of influence by means of a military agreement fix- 
ing operational zones. Prom the point of view of naval strategy 
no objections could be raised to even such intentions. However, 
for political reasons, such a partition seems undesirable. 

This viewpoint of the Naval Staff is being forwarded to the head 
of the Tripartite -Pact Military Commission, together with the 
draft of a different version of the agreement. (See War Diary, 
Part C, Vol. XV.) 

II. A production estimate based on Navy priority allocations as 
received from the Armed Forces High Command last October shows 
that the construction and completion of ships will drop radically. 
Submarine warfare, escort of convoys, coastal defense, and anti- 
aircraft defense, which constitute the duties assigned to the Navy 
in the war against Britain, cannot be continued for very long If 
those quotas are put into effect, and the time can be foreseen 
when naval warfare vill cease altogether. 



_1 9 2- 9862 



19 Dec. 1941 C ONFIDENTIAL 

Therefore the Commander In Chief, Navy requests the Armed Forces 
High Command to revise the allocation of raw materials in such a 
way that the Navy receives in 1942 the minimum quotas necessary 
to continue the operations assigned her by the Fuehrer. Should 
the Armed Forces High Command he unable to effect such a redis- 
tribution, the problem will have to be submitted to the Fuehrer 
for a decision. See War Diary. Part B, Vol. V for a copy of the 
letter (M Wa Wi 1488/41 Gkdos.). 



Situation 19 Dec. 1941 

I. War in Foreign Waters 

1. Enemy Situation ; 

Items of Importance : 

See Radio Intelligence Report No. 50/41 issued by the 
Chief, Naval Communications (Radio Intelligence) for a compila- 
tion of all enemy messages intercepted by radio monitoring and 
radio decoding up to 14 Dec. 1941. 

North Atlantic : 

A report from a foreign agent of 17 Dec. states that the 
Allied War Council decided on 12 Dec. to send an expeditionary for 
ce overseas, presumably to the Near or Far East. The expedition- 
ary force is to consist of eight to eleven divisions. The port 
troops at Cardiff, Newport, Pembroke, Caernarvon, Liverpool, and 
Lancaster received orders for immediate action, and numerous troop 
transports were dispatched to those ports; some of these had to 
be diverted from the North Atlantic run. Shipments will begin on 
19 Dec. and will last for several weeks. The RODNEY, the BERWICK, 
and the HERMIONE are en route to Gibraltar, possibly to escort 
troop transports through the Mediterranean. (See Radiogram 1919.) 

Indian Ocean and Pacific Ocean ; 

Press reports from Rangoon state that another large con- 
voy has arrived with Indian troops. 

2. Own Situation : 

The Norwegian steamship line owning the SILVAPLANA 
denied the loss of the ship. See War Diary, Part C, Vol. 1 for 
the report from the Commander of ship "16" which supplements the 
sections of the War Diary transmitted by submarine U "68". En- 
try in the War Diary as per l/Skl 29293/41 Gkdos. 

A report from the Commanding Admiral, Submarines gives the follow- 
ing schedule for arrival of submarines at French ports : 



9862 

-193- 



19 Dec 1941 CONFIDENTIAL 

Submarine U .7 on 25 or 26 Dec. 

Submarines U "124 ' ; and U "68" between 26 and 29 Dec. 
Submarine U "129" approximately 2 or 3 Jan. 1942 



II. Situation Vest Area 

1. Enemy Situation : 

Radio monitoring intercepted enemy reports presumably 
giving the locations of PT boats along the southeast coast. At 
noon of 18 Dec. aerial reconnaissance reported an unidentified 
vessel 5 miles south of St. Nazaire. 

2. Own Situation : 

Atlantic Coast : 

Nothing to report. 

Channel Coast : 

During the night of 19 Dec. the 2nd and 4th PT Flotillas 
vent on torpedo and mine-laying missions in the Yarmouth- Cromer 
area. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 
Nothing to report. 

2. Norway : 

Znemy Situation : 

Radio monitoring reports that the cruiser KENT was in 
the Murmansk area. A fix was obtained on a British vessel pro- 
ceeding in the direction of the White Sea and another one pro- 
ceeding in the direction of Jan Mayen. 

Own Situation : 

The 8th Destroyer Flotilla arrived at Tromsoe in the 
afternoon of 18 Dec. It encountered neither naval vessels nor 
merchantmen along the suspected enemy convoy route, but unex- 
pectedly encountered two Russian destroyers northeast of Cape 
Bolshoi Gorodetski. In the course of a battle engagement lasting 
13 minutes, one of the Russian destroyers was definitely badly 
damaged and probably sunk . The secona Russian destroyer was aam- 



9862 

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19 Dec. 19^1 CONFIDENTIAL 

aged but escaped into the fog. The flotilla commander decided not 
to pursue it in view of the fog. According to a report from the 
flotilla, it was impossible to execute the second part of the mis- 
sion, namely to scout the Murmansk coast on the return trip, be- 
cause the southeastern part of the coast was shrouded in fog and 
the enemy situation (alerting of the coast and Kola Bay as well as 
presence of British naval forces) later on developed so as to make 
it necessary to avoid Kola Bay. There were no further encounters 
with enemy forces on the way home. Our vessels sustained no dam- 
age or loss. On account of the tactical commitments, the flotilla 
was barely able to return to Tromsoe on the amount of fuel carried. 
(For the report on the battle engagement see Radiogram 1100.) 

Commanding Admiral, Norway rightfully demands an explanation of why 
the presence of British naval forces made it necessary to avoid 
Kola Bay when an attack on them would have offered good chances for 
success in view of the long arctic night. He also desires an ex- 
planation as to what were the tactical commitments which forced 
the flotilla to travel homeward at such high speed that all the 
fuel was consumed. (See Radiogram 1920.) Destroyers Z "25" and 
Z "27" will replenish their supplies at Narvik on 20 Dec. and then 
escort the 8th PT Flotilla and a tanker from Harstad (Vesteraalen 
Islands) to Tromsoe via a route leading around the small islands. 
Mines are suspected along the northern roadstead from Tromsoe via 
Groet Sound to Groetnes since an enemy submarine was sighted with- 
in that area on 18 Dec. The harbor patrol vessel STEINBOCK ran 
aground near Vardoe on 18 Dec. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea ; 
Nothing to report. 



V. Merchant Shipping : 

Digest No. 55 in the report series of the Intelligence Division, 
Naval Staff entitled "Foreign Merchant Shipping" includes the 
following: A survey of the ships lying in Gibraltar and ship 
movements to and from that port during the period from 20 Oct. 
to 15 Dec; reports on the discontinuation of Spanish mail steam- 
er service to the U.S.A.; the ships lying in Malta from 17 Oct. 
to 12 Dec; data on Russian vessels in Turkish ports; the Amer- 
ican paravane model, and the increase of premiums on war-risk in- 
surance on shipping in the Atlantic and the Pacific. 



VI. Submarine Warfare 

1. Enemy Situation : 

An Italian report states that a patrol vessel shelled 



9862 

-195- 



19 Dec. 19*1 



CONFIDENTIAL 



and sank a submarine In the Strait of Gibraltar on 17 Dec. and 
took aboard forty four survivors. 



2. 



Ovn Situation: 



Contact with convoy HG 77 was maintained with slight in- 
terruptions. The convoy is heavily escorted, a British submarine 
seems to follow It, cruising on courses 90° from the convoy's mean 
course. Another steamer was reported sunk besides the one pre- 
viously reported. According to aerial reconnaissance, the convoy 
is made up of from 50 to 60 merchant vessels. Our reconnaissance 
planes were repeatedly attacked by enemy pursuit planes and there- 
by hampered in carrying out their mission. 

In connection with the sinking of the enemy cruiser in the eastern 
Mediterranean on 18 Aug. (most likely an error. Must be 18 Dec. 
See War Diary 18 Dec, Submarine Warfare, Own Situation. Tr.N.), 
the Italian radio monitoring service reports that an enemy cruiser 
of the Mediterranean Fleet sent an SOS from a position which coin- 
cides with that of our submarine at the time of action. It can 
therefore be assumed as certain that submarine U "371" (Lt. Driver) 
sank an enemy cruiser of the LEANDER class. 

See War Diary, Part B, Vol. IV for the distribution of submarines 
over the various zones of operation, and for a further report on 
the situation. Special attention should be given to the large 
number of submarines sunk in the Gibraltar area. 

Concerning submarine bases in Italy, the Naval Command, Italy re- 
ports that the following shipyard facilities can be counted on for 
use by German submarines: . 



a. Facilities available 
immediately: 



1. Spezia for 6 submarines 

2. Pola for 2 submarines 

3. Salamis for 5 submarines 



Total: 



13 submarines 



(This must 
be Greece; 
there was 
a submarine 
base there. 
Tr.N.) 



b. Facilities available 
beginning 15 Jan. : 



Spezia for 7 submarines 
Salamis for 6 submarines 



c Facilities available 
beginning the end of 
February: 



Spezia for 10 submarines 
Pola for 4 submarines 
Salamis for 6 submarines 



Thus, the Italians can furnish facilities for twenty German sub- 
marines. After exhaustive conferences with the Italian Navy we 
can be certain that specifications and delivery dates will be ad- 
hered to. However In order to intensify and speed up the work, 



-196- 



9862 



19 Dec. 19^1 CONFIDENTIAL 

it would be necessary to make sweeping demands on the Italians, 
which these could fulfill .only at the expense of neglecting the 
condition of their own vessels. The figures given above mean that 
the following number of submarines must not be exceeded: For the 
present, twenty six submarines ; by 25 Jan., thirty submarines; 
and from the end of February on, forty submarines. (See Radiogram 
1415.) 

In view of this situation, the Commanding Admiral, Submarines 
waives the formation of the 30th Submarine Flotilla at Pola. The 
submarines at that base will be assigned to the 29th Submarine 
Flotilla, while it is planned to station only a submarine base 
commander at Pola. (See Radiogram 2122.) 



> 



► 



VII. Aerial Warfare 

1. British Isles and Vicinity ; 

The enemy lost ten planes during daylight raids in the 
western area, two of them four-motored Stirlings. See Situation 
West Area for reports of aerial reconnaissance over the Atlantic. 
One of our night raids set afire an 8,000 BRT tanker in a convoy 
northwest of Cardigan Bay. 

2. Mediterranean Theater : 

The X Air Corps attacked Tobruk with nineteen planes. 
19 tons of high explosive bombs were dropped on the town and the 
harbor installations and an anti-aircraft position was silenced. 

j5. Eastern Front : 

Normal air activity in support of Army operations. For 
reports by aerial reconnaissance over the Black Sea see Black Sea, 
Enemy Situation. 

k. Organization : 

Concerning the recall of the naval officers transferred 
prior to expiration of their term of duty (see War Diary 15 Dec), 
the General of the Air Force informed the Commander in Chief, Navy 
that a compromise between the diverse opinions expressed by all 
Air Force and Navy offices concerned, can only be worked out by 
the Air Force General Staff and the Navy High Command. 



VIII. Warfare in the Mediterranean 
1. Enemy Situation : 

We stern Mediterranean : 

The MALAYA and seven destroyers left Gibraltar in an 



9862 

-197- 



19 Dec. 19^1 CONFIDENTIAL 

easterly direction, evidently for target practice, and returned 
again in the afternoon. 

Central and Eastern Mediterranean ; 

During the morning, aerial reconnaissance sighted an 
enemy force south of Malta. It consisted of a cruiser and several 
destroyers. The same force was again sighted in the afternoon, 
this time southwest of Malta. An Italian aerial photography mis- 
sion over Malta sighted a large battleship in the large harbor 
basin at 0900. It was identified as a battleship of the BARHAM 
class. 

Submarines were sighted at the eastern exit of the Strait of Gi- 
braltar, off Cape Misurata, near Ostia, north of Crete and east of 
Cape Colonna. 

2. Own Situation : 

Weather conditions on 18 Dec. forced the 3rd PT Flotilla 
to abandon its mission and turn back at 2200. 

3. Situation Italy ; 

The naval task forces arrived at Taranto. After the tow 
line broke, the destroyer which was disabled by a collision is be- 
ing brought in by other destroyers and the tug boat MAX BEHRENDT 
from Benghazi. 

In his critique of the Italian operation, the Admiral, German Na- 
val Command, Italy states that the mission has been successfully 
completed and that the critical situation of supply shipments to 
North Africa has consequently been considerably, although not de- 
cisively, improved. He is of the opinion that Italian and Brit- 
ish naval forces are just about equally strong in cruisers and de- 
stroyers, but that the Italians have a definite advantage in day- 
light operations, since their battleships outnumber the British 
ones. Unfortunately, the Italian Command did not make use of this 
numerical superiority during their operations. However, the Ad- 
miral, German Naval Command, Italy thinks that the reverse was 
true of the night situation. Then it would have been wise for 
the Italians to avoid an engagement, because the British Navy is 
better trained for this phase of fighting and also because the 
Italian vessels had to protect the convoy and therefore had but 
little freedom of action. It is highly commendable that the com- 
mander of the Italian naval forces did not take evasive action 
but rather took the risk of proceeding in the darkness in spite 
of contact with the enemy, so as to complete the mission. It has 
not yet been explained why the British did not join battle as was 
to be expected. See War Diary, Part C, Vol. XIII for the text of 
the corresponding teletype as per l/Skl 21389/41 Gkdos. 

The Naval Staff can only agree with the above 
opinion. 



-I98- 9862 



* 



19 Dec. 1941 , CONFIDENTIAL 

4. Transport of Supplies to North Africa : 

The 52nd Naval Transport Squadron arrived at Tripoli dur- 
ing the morning with three steamers and in Benghazi with one steamer 
at noon. One transport submarine arrived at Bardia during the even- 
ing of 18 Dec A third naval barge (see War Diary 17 Dec, Tr.N.) 
becomes available for duty at Benghazi on 20 Dec. Three destroyers 
carrying gasoline for the Air Force are scheduled to arrive at Bar- 
dia on the 20th, 21st, and 22nd of Dec 

5. Area Naval Group South : 
Aegean Sea : 

Nothing to report. 
Black Sea : 

r 

Enemy Situation : 

Aerial reconnaissance sighted four convoys comprising a 
total of thirty steamers in the Sevastopol area. Each of the con- 
voys was escorted by naval vessels. Two of the convoys were arriv- 
ing and the other two departing. 

Own Situation : 

Nothing to report. 

Special Items : 

a. In accordance with the request from the German Naval 
Command, Italy (see War Diary 17 Dec), the Armed Forces High Com- 
mand, Operations Staff decides that during the next few days the. 
Italian torpedo boats available in the Aegean Sea are to be diverted 
from shipping in the Aegean and to be used to facilitate quick trans- 
portation of urgently needed fuel supplies to Benghazi. The German 
General at Italian Headquarters is to get the consent of the Italian 
Armed Forces High Command (see Radiogram 1430). 

b. The German Naval Command, Italy forwards for approval 
by the Naval Staff the proposal of the Italian Navy concerning in- 
stallation of an Italian Naval Transport Office at Suda (compare War 
Diary 17 Dec). The German Naval Command, Italy recommends that 
action on the matter be delayed in view of the imminent loss of 
Cyrenaica and the subsequent discontinuance of supply transport op- 
perations. In the same connection, in accordance with the request 
from the Commanding General, Armed Forces, Southeast concerning the 
Italian Navy's intention to install a fortified base on Suda Bay, the 
Armed Forces High Command, Operations Staff, Air decides as follows: 
Pressure should be brought to bear on the Italians so as to keep 
them from proceeding with their plan to install anti-aircraft ar- 
tillery on Suda Bay, unless such installations on that part of Crete, 
which is reserved for the German Armed Forces exclusively, are con- 
sidered absolutely essential by the Air Force High Command, Opera- 
tions Staff. See War Diary, Part C, Vol. XIV for the corresponding 
teletypes as per l/Skl 56221 geh., 29408/41 Gkdos., and 294l6/4l 
Gkdos . 



-199- 



19 Dec. 19*U CONFIDENTIAL 

c. Group South forwarded a request from the Japanese 
Naval Attache at Istanbul asking that the Group Command help in 
gathering information on the situation in the Indian Ocean, the 
Red Sea, etc.. The Naval Staff decides that it is desirable to 
keep the Japanese informed and to accommodate them whenever possi- 
ble. However, they should not be given information which would en- 
able the enemy, if he were to break the Japanese codes, to draw 
conclusions as to German ability to decipher enemy messages, or 
which would throttle our special news sources. Therefore all radio 
Intelligence reports and other secret matter will be sent over our 
own transmitters from Berlin to the Naval Attache at Tokyo. The 
center of all cooperation, which is just in its initial stages, is 
Berlin. 



IX. Situation East Asia 

1. Enemy Situation : 

Admiral Nimitz was named as successor to Admiral Kimmel 
for the post of Commander in Chief of the U.S. Pacific Fleet. 

The Japanese Admiralty Staff terms the transfer of U.S. battleships 
to the Pacific as foolish and would consider it more appropriate if 
they were sent to Ceylon via the Atlantic. 

2. Situation Japan ; 

The five Japanese submarines which participated in the at- 
tack on Pearl Harbor are considered lost. According to a report 
from the Military Attache at Bangkok on 17 Dec, the enemy is offer- 
ing tenacious resistance to the advance of the western column on 
Malaya. A Japanese air raid sank three and damaged six transport 
vessels off Penang. Weaker enemy forces are evading the central 
column to the southwest. The eastern column has reached Kalebir. 
The Japanese sustained heavy losses in the jungle fighting. The 
absence of adequate dock installations makes the unloading of motor- 
ized units a very time consuming process. Only weak enemy forces 
are being encountered on British Borneo. Oil installations near 
Miri are said to have been thoroughly destroyed. Several Dutch sub- 
marines are said to be stationed between Malaya and Borneo. Volume 
46 of the news analysis "Foreign Navies" published by the Intelli- 
gence Division, Naval Staff contains a chronological Index of the 
first events in the war for Greater East Asia and a compilation of 
Japanese reports on enemy shipping losses. 



X. Army Situation 

1. Russian Front: 



Southern Army Group : 

The enemy offers tenacious resistance In front of Sevas- 



r200- 9862 



19 Dec. 1941 CONFIDENTIAL 

topol. The general situation on the sectors of the 1st Panzer Army, 
the 17th Army, and the 6th l Army remains unchanged. 

Central Army Group ; 

Strong enemy attacks on the 2nd Army are beginning from the 
direction of Yelets. The positions of the XXXVII, the LII, and XXIV 
Army Corps vere moved further west to run in the general line from 
Mogilka to Krapivna. The enemy launched strong attacks all along the 
front of the 4th Army and, since our forces there were rather weak, 
was able to penetrate in several places. Reserves were brought up 
by air. Strong enemy forces attacked on the 9th Army sector south 
and west of Kalinin but could be repulsed. 

Northern Army Group ; 

Strong but unsuccessful enemy attacks were launched north 
of Lake Ilmen and east of Volkhovstroy. Our artillery smashed enemy 
preparations south of Leningrad. 

2. Finnish and Norwegian Front ; 

Enemy attempts to cross the Svir River in the sector held 
by the 163rd Infantry Division were repulsed. 

3. North Africa ; 

The enemy reached the line El Mechili-Derna. The points 
of the enemy encircling column which consists of about fifty tanks 
and two motorized battalions reached the area north of Smus. The 
points of our armored divisions reached the area around El Abiar. 
The Air Force continues to suffer badly from lack of fuel . Enemy 
bombing raids inflicted heavy losses on our forces on 18 and 19 
Dec. This was possible because our Air Force is unable to put a 
sufficient number of pursuit planes into the air. 



*****#*##*****»********** 



9862 

-201- 



CONFIDENTIAL 



20 Dec. 1941 

Items of Political Lmportance 

France : 

The U.S. Ambassador at Vichy expressed the hope to Marshal Petaln 
that France continue to maintain her present neutral status. It 
was officially announced in Washington on 19 Dec. that the U.S. 
has concluded an agreement with the High Commissioner of Martin- 
ique, Admiral Robert concerning far-reaching cooperation. This 
agreement stipulates that all French possessions in the West In- 
dies and all naval units stationed there will be considered neu- 
tral. The further exchange of goods within that area will be per- 
mitted so long as it does not result in anything detrimental to 
U.S. interests, i.e., so long as French naval 4 forces do not attempt 
to leave port. An official Vichy denial can hardly change these 
facts. 

Great Britain; 

Duff Cooper was appointed Governor of Singapore and made a cabinet 
member with the portfolio of Minister for Far Eastern Affairs. It 
is said that Eden has flown .to Moscow. A report of 10 Dec. from 
the Turkish Minister at Kuibyshev (Samara) states that Eden will 
discuss the following points with Stalin: 

1. The transfer of naval bases on the Russian Pacific Coast 
to the British and U.S. Navies. 

2. Military cooperation with the Russians in the Petsamo 
area. 

3. Lmmediate opening of a joint British-Russian front in 
the Caucasus, and Russian permission for transit of British troops 
to that area. 



west. 



4. Stalin's request for the opening of a second front in the 



A report from a neutral diplomatic source states that British pub- 
lic opinion, which was confident up to now, has undergone a dras- 
tic change. One of the main reasons for this is the sinking of the 
two battleships by the Japanese. 

According to foreign press reports, an important official joint 
announcement from London, Washington, and Moscow may still be ex- 
pected before Christmas. Besides Eden's trip to Moscow, Church- 
ill's trip to Washington is mentioned in this connection. The 
press bases its reports on the fact that conferences concerning 
Allied cooperation are taking place in each of the three capitals, 
and t 'lo-Russian relations as well as creation of an Allied 
War Council re the most important points under discussion. It 
is said that he U.S. has demanded that the seat of the War Council 
should be at .ashington. Donovan, General Marshall, Admiral Leahy 



-202- 



9862 



20 Dec. 19^1 CONFIDENTIAL 

or Sumner Welles have been mentioned for the post of chairman. It 
Is said that the High Command for the various fronts will probably 
be divided so that the British will be in charge of operations in 
the Middle East, the Americans In the Pacific, and the Russians on 
the European Eastern Front. Since no special mention is made of the 
Atlantic, it must be presumed that the British will be in charge of 
operations in that area. 

Portugal : 

From the important speech made by Salazar concerning the occupation 
of Timor, it is apparent that the Dutch have already evacuated 
the island following a protest by the Portuguese. However, the Aus- 
tralian forces have remained, and they are of course the ones who 
have the greatest interest in keeping Timor from the Japanese. 

U.S.A .; 

Reports here also state that an inter-Allied conference will be 
held at Washington in January for the purpose of discussing the 
question of coordination of Allied activities and creation of a 
joint War Council. Secretary of War Stimson stated that accord- 
ing to the Lend-Lease Act, shipments are not to be curtailed but 
increased. 

Japan ; 

The Government has requested Thailand to become a signatory power 
to the Tripartite Pact. 



Special Items : 

I. Basic Observations concerning the Naval Warfare Situation ; 

On 11 Dec. the Commanding Admiral, Group West reported as follows; 
"The great successes scored by the Japanese Air Force and possible 
new strategic developments in the Atlantic as the result of the 
transfer or weakening of the U.S. Atlantic Fleet and the possible 
transfer of further heavy British naval units to East Asia cause 
me to demand the immediate transfer of a well- trained bomber squad- 
ron to the Norwegian area for the sole purpose of attacking heavy 
vessels of the British Home Fleet, especially aircraft carriers. 
I must request this in spite of the critical situation prevailing 
in other theaters of war. It is possible that we will thereby be 
able to achieve a balance of power which will again enable us to 
conduct far-reaching naval operations in the Atlantic. These prom- 
ise to be especially successful if supply shipments to Britain fall 
off due to the curtailment of American aid." 

Group North expressed the same opinion concerning this problem on 
12 Dec, at which time all the possibilities for aerial warfare 
were set forth in detail. These documents caused the Naval Staff 
to set down its basic views about the problems of naval strategy 



-205- 9862 



20 Dec. 19^1 CONFIDENTIAL 

confronting the great naval powers of the earth at the outbreak of 
war. Naturally, all commands of the German Navy should take an 
active interest in these problems. 

The influence which German power exerts on the sea routes of our 
enemies in the Atlantic and the Mediterranean causes us to partici- 
pate directly in solving these problems. Therefore, the Naval 
Staff welcomes proposals submitted even if they go beyond the 
authority of the respective Operations Staff. 

However, in the present situation, where the enemy has freedom of 
action and local superiority on several sectors of the front, it 
is unfortunately impossible to use special forces particularly 
some from other branches of the Armed Forces and urgently to re- 
quest additional ones as important so as to be able to tackle rec- 
ognized problems. For example, this applies to the mining of the 
Suez Canal as well as to the use of trained bomber units against 
the heavy vessels of the British Home Fleet for the purpose of 
equalizing the naval forces. However, the Naval Staff knows that 
the Armed Forces High Command is fully aware of all these problems. 

In this connection it is also felt to be most unfortunate that just 
now our warfare In foreign waters has temporarily come to almost a 
complete halt, and that all submarine operations but the siege of 
the British Isles have been forced to follow a course apparently 
deviating from the general precepts of naval strategy as the result 
of the dangerous situation in the Mediterranean and other areas. 
The Arctic area, the sea route through the Channel, the transport 
of supplies to North Africa, and the sea routes in the Black Sea 
and the Aegean Sea (Crete!) all pose problems which at this time 
must be considered the focal points of our fight for survival. 
They demand the full use of all German means of warfare in the 
coastal areas and moreover tie up part of our offensive forces 
(large submarines!). It is hoped however, that this is but tem- 
porarily the case. 

The Naval Staff attaches special importance to the use of appro- 
priate naval forces in the war In the Atlantic and other oceans 
and Is particularly concerned with getting them ready for duty. 
Furthermore It is important at present, and will be no less so for 
bringing the presumably lengthy war to a victorious conclusion, 
that we use all available forces to hold on tenaciously to what we 
have gained and, as heretofore, continue to inflict damage on the 
enemy and increase our fighting strength by the clever deployment 
of all our forces. 

Corresponding directives to Groups West, North, and South; Com- 
manding Admiral, Submarines; German Naval Command, Italy with 
copies to Fleet and Commanding Admiral, Norway. Copy of informa- 
tion sent to the Chiefs of Office, Naval Staff and the Liaison 
Officer at the Armed Forces High Command, as well as the Naval 
Adjutant to the Fuehrer as per l/Skl 2159/41 Gkdos. Chefs, to- 
gether with the previous directives from the Commander in Chief, 
Navy 2113/41 Gkdos. Chefs, and 2122/41 Gkdos. Chefs, to be found 
in War Diary Files "Fundamental Problems of Warfare". 



. 9B62 

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20 Dec. 1941 CONFIDENTIAL 

II. Coastal Defense : 

The construction of a new "West Wall" on the Arctic, North Sea, 
and Atlantic coast areas under our control as ordered by the Fueh- 
rer, must temporarily be curtailed due to the heavy demands made 
on our forces and materials for other purposes. The curtailments 
are in each instance ordered by the Armed Forces High Command on 
the basis of orders given by the Fuehrer. 

The necessity to achieve maximum results in extensive areas with 
limited means demands more centralization of leadership than had 
been planned up to this time. Therefore the Commander in Chief, 
Army will be entirely responsible for the planning of coast defenses, 
with the other branches of the Armed Forces and their commanders 
cooperating. In this the Commander In Chief, Navy remains respon- 
sible for the naval warfare requirements, shipping, and coastal 
artillery defense. The Commander in Chief, Navy alone is responsi- 
ble for all measures to be taken along the North Sea coast. Reich 
Minister Dr. Todt is in charge of all civilian manpower to be used 
in construction work. See War Diary, Part C, Vol. X for the copy 
of the order from the Armed Forces High Command, Operations Staff, 
National Defense as per l/3kl 29255/41 Gkdos. 

III. The Fuehrer takes over the Army High Command : 

According to a still confidential report from Fuehrer Headquarters, 
the Commander in Chief, Army, Field Marshal von Brauchitsch has re- 
linquished his command. The Fuehrer has personally taken over the 
Army High Command, supplementing his position as Supreme Commander. 
A farewell order from the retiring Field Marshal to the Army men- 
tions reasons of health. Details concerning this vital measure are 
so far unknown. 



Situation 20 Dec. 1941 

I. War in Foreign Waters 

1. Enemy Situation : 

On 18 Dec, several of the destroyers based at Gibraltar 
were replenishing their supplies at Ponta Delgada. Light British 
naval forces were cruising in the Azores area on 19 Dec. Accord- 
ing to radio decoding, the British cruiser which departed from Ber- 
muda en route to Gibraltar on 12 Dec. was supposed to pass the po- 
sition 34° 00' N, 44° 30* W and }4o 30 » N, 30© 00' W and receive 
further course directions from the Chief, North Atlantic. The air- 
craft carrier FORMIDABLE which had been in the U.S. for repairs, 
was nearing the Western Approaches on 18 Dec. On 18 Dec. radio 
station Annapolis broadcast a directive for the Commander of the 
Boston District to several port commanders and coastal patrols ad- 
vising them that unescorted ships en route to Portland and Ports- 
mouth are allowed to travel within a specified danger zone only 
under good weather conditions and by special permission. 



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20 Dec. 19^1 CONFIDENTIAL 

Indian Ocean ; 

On 19 Dec. a U.S. steamer received orders to proceed to 

Colombo for refuelling, since Penang is endangered, and subsequent- 
ly to proceed to New York via Durban and Trinidad. 

2. Own Situation ; 

Instruction to all submarine supply ships concerning the 

special code effective after broadcast of code word "Ypern" by 
Radiogram 2149. Report on the Enemy Situation by Radiogram 2200. 



II. Situation West Area 

1. Enemy Situation ; 

A convoy coming from the Channel was located southwest of 
the Bristol Channel at 19^0 and was there attacked by planes. 

Long-range reconnaissance located convoy HG 77 at noon, approximate- 
ly 500 miles northwest of Lisbon, course J40°. The convoy comprised 
thirty five steamers, three cruisers, two escort vessels, and 
UNICORN. 

2. Own Situation ; 

Atlantic Coast ; 

The Brest harbor defense flotilla shot down two enemy 
planes on 18 Dec . 

Channel Coast ; 

The 2nd and 4th PT Flotillas executed their mining mission 
according to plan. Enemy destroyers prevented them from launching a 
torpedo attack. All boats reached their operating base without in- 
terference. A ground mine sank a coastal motor boat in the fog off 
Calais. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 
Nothing to report. 

2. Norway ; 

Enemy Situation ; 

According to radio monitoring, three British naval ves- 
sels, presumably identified as one heavy cruiser and several de- 



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20 Dec. 19^1 CONFIDENTIAL 

stroyers, were located in the Murmansk area. It is likely that an 
aircraft carrier is also in the vicinity, since such a vessel was 
identified in radio telephone conversations. It may be assumed 
that planes are being transported. 

On 19 Dec. a Russian submarine was sighted northwest of Kharlovka. 

Own Situation ; 

The minelayer COBRA left Aalesund en route to Tromsoe. 
On 19 Dec. the tanker. ALGOT and motor-minesweeper PARIS touched 
ground in the approach to Maaloey. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea : 
Nothing to report. 



V. Submarine Warfare 

1. Enemy Situation : 

According to radio monitoring, submarines were reported 
sighted 300 miles south of Porcupine Bank and in the Gibraltar area. 
In the Gibraltar area a submarine attacked the British steamer 
DYNAMO. The submarine was chased and attacked with depth charges. 
A plane sighted another submarine off Cape Spartel. 

2. Own Situation : 

Three submarines maintained contact with convoy HG 77. 
The enemy steered a sharp zig-zag course. See Situation "West Area 
for report on air reconnaissance sighting the convoy. The subma- 
rine operating outside of the Dardanelles sank a tanker of approxi- 
mately 7,000 BRT travelling with dimmed lights in the southern exit 
of the strait. This was presumably one of the reported Russian 
blockade-runners. See War Diary, Part B, Vol. IV for further re- 
ports on the submarine situation. 

The Commanding Admiral, Submarines requests a decision whether sub- 
marines scheduled for operations in the Mediterranean may be used 
for escorting the ship DOGGERBANK instead of the submarines assigned 
to operation "Paukenschlag", since the latter consume too much fuel. 

The Naval Staff agrees, unless facilities for refuelling submarines 
from ship DOGGERBANK are adequate to take care of the problem. 
Furthermore, the Commanding Admiral, 'Submarines again requests re- 
lease of all large submarines for operations in the Atlantic since 
they are not suited for operations in the Mediterranean and west of 
Gibral tar . 



-207- 9862 



20 Dec. 1941 CONFIDENTIAL 

The Naval Staff agrees with this idea and has itself 
already repeatedly expressed the opinion that large 
submarines are not suited for operations in the Medi- 
terranean. They bad to be used west of Gibraltar 
under existing circumstances. They must be used there 
as long as the situation in the Mediterranean requires. 
When used in connection with the North-South convoys, 
an operation for which also these large submarines are 
suited, they help to relieve the situation in the Medi- 
terranean. The Commanding Admiral, Submarines is 
authorized gradually to withdraw the large submarines 
in proportion to the increase in the number of small 
fc submarines on duty in the Mediterranean. 

The Commanding Admiral, Submarines reports on scheduled operations 
as follows: 

"1. The following submarines will be transferred to the Mediterra- 
nean before the full moon: U "83"; U "451"; U "202"; U "133"; 
U "577". Counting these, twenty five submarines will then be sta- 
tioned in the Mediterranean. 

"2. Five more submarines will be sent by the beginning of the new 
moon in the middle of January, and four more in February. In view 
of this assignment, reference is made to the capacity of the Italian 
shipyards on which the German Naval Command, Italy reported (see 
War Diary 19 Dec). Then the best and most capable of our submarines 
will be in the Mediterranean. 

"3. The following submarines will operate west of Gibraltar: 
Eight submarines departing from French bases in December. 

"4. A submarine escort for ship DOGGERBANK. 

"5. Besides the six large submarines already set aside for opera- 
tion 'Paukenschlag' along the American coast, submarines U "107", 
U "108", and U "67" will proceed to Lorient after completion of the 
present operation against convoy HG 77, and will subsequently take 
part in the American operation. All other large submarines will 
also be used in this area as they become available. 

"6. The new medium submarines with their young and inexperienced 
commanders, coming from bases in Germany, will, until further no- 
tice, proceed to French bases in order to refuel. These submarines 
will subsequently be put into -operation in the western Atlantic, 
probably near the Bank of Newfoundland. 

"Reason for Paragraph 6 above: The area off Gibraltar at this 
time presents the greatest difficulties in view of the strong anti- 
submarine defenses there. The HG convoys are the ones which are 
most heavily escorted. The new submarines are not equal to both 
tasks and therefore cannot be used." 

The Naval Staff agrees with these plans. The right to make changes 
in the plans for February Is reserved. The number of submarines 
scheduled to proceed to the Mediterranean should not be cut. The 



9862 

-208- 



20 Dec. 19^1 CONFIDENTIAL 

ultimate number of submarines to be assigned will depend on possible 
losses. See War Diary, Part C, Vol. IV for the corresponding di- . 
rective to Commanding Admiral, Submarines (l/Skl Iu 2168/41 Gkdos. 
op Chefs . ) . 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

The 5th Air Force reported that a minelayer was attacked 
and badly damaged near the Faroe Islands. An investigation has 
been ordered as to what type ship was involved. One FW 200 was 
shot down by enemy defenses during long-range reconnaissance on 
19 Dec. During the night of 20 Dec, thirty planes flew mining 
missions over the Thames and eleven planes flew missions against 
shipping targets. 

2. Mediterranean Theater ; 

For report o'f aerial reconnaissance see Mediterranean, 
Enemy Situation. Fourteen Ju 88' s flew missions against enemy 
troop columns east of Derna. 

3. Eastern Front ; 

Light air activity on the land fronts. In the Arctic 
Ocean planes unsuccessfully attacked a steamer and a destroyer 
northeast of the Kildin Islands. 



VII. Warfare in the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean ; 

During the course of the day the MALAYA, the ARGUS, and 
one cruiser of the DIDO class were at sea for a few hours east of 
Gibraltar, apparently engaged in maneuvers. 

Central and Western Mediterranean ; 

According to an aerial photography mission conducted by 
the X Air Corps, one battleship was said to be lying in La Valetta 
in the afternoon of 19 Dec. Italian air reconnaissance made the 
same observation during the morning of 20 Dec, and they also 
sighted eight to ten destroyers and three large merchantmen. Ac- 
cording to Italian air reconnaissance, five heavy and three light 
vessels and destroyers were lying in Alexandria during the after- 
noon, four light cruisers were at sea off Alexandria, and J>0 miles 
from this group was another light cruiser. All these vessels were 
on a westerly course. 



-209- 9862 



20 Dec. 19^1 CONFIDENTIAL 

A fairly large vessel, allegedly a battleship of the NELSON class, 
was sighted from Cape Matapan during the morning, sailing a wester- 
ly course. No further data is available to substantiate this most 
unlikely assumption. Neither NELSON nor RODNEY can be the vessel 
in question according to data available to the Naval Staff. Reports 
from Italian agents state that two Spanish steamers arrived at To- 
bruk from Gibraltar via Malta. Two other steamers are waiting at 
Malta for two destroyers to escort them to Tobruk. 

2. Situation Italy ; 
Nothing to report. 

3. Transport of Supplies to North Africa ; 
Nothing to report. 

4. Area Naval Group South ; 

Aegean Sea ; 

See Radiogram 2035 for the request from the German Naval 
Command, Italy to load available Italian torpedo boats with avia- 
tion fuel at Piraeus and to dispatch them to Benghazi. Group South 
requests clarification whether the directive concerning use of 
Italian torpedo boats for transport of supplies to North Africa 
concerns only the vessels under Italian command, respectively those 
under the command of the Admiral, Dodecanese, or whether it also 
applies to the vessels under the Admiral, Aegean. Group South 
points out that the latter vessels are indispensable to operations 
connected directly with the African operations and also calls at- 
tention to the new request from the Air Force units based on Crete 
for a monthly shipment of 30,000 tons of gasoline and ammunition. 
For details see Radiogram 1150. 

For requests concerning personnel from the Admiral, Aegean to the 
Navy Personnel Office see Radiogram 1845. 

The Italian request concerning installation of an Italian naval com- 
mand on Suda is now also forwarded directly to the German Naval 
Staff by the Italian Admiral. (Compare War Diary 19 Dec.) Copy 
as per l/Skl 2954l/4l Gkdos. in War Diary, Part C, Vol. XIII. 

Black Sea ; 

Enemy Situation ; 

No new observations. 

Own Situation ; 

According to a report from Naval Group South, Rumanian 
destroyers are said to have sunk a Russian submarine on 1 Dec. 
and another one on 17 Dec. Otherwise nothing to report. 



9862 

-210- 



20 Dec. 19^1 CONFIDENTIAL 

VIII. Situation East Asia 

1. Enemy Situation : 
Nothing to report. 

2. Situation Japan ; 

More troops were landed on eastern Borneo. Landing opera- 
tions on western Borneo are being prepared. Japanese destroyers 
sank three submarines in the South China Sea. One Japanese destroy- 
er was lost during these operations. The Japanese captured British 
aerial torpedoes at the air base of Kota Bharu. Some of these are 
being forwarded to the German Navy via blockade-runners. Press re- 
ports state that a British naval vessel was sunk south of Hong Kong. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

Heavy fighting around Sevastopol. No noteworthy fighting 
on the 1st Panzer Army sector. Some enemy attacks were repulsed on 
the sectors of the 17th and the 6th Army. 

Central Army Group : 

The enemy continued his attacks along the entire front. 
Some of these were rather strong and were supported by artillery, 
tanks, and planes. The enemy forces which were reported on the 
march from Yelets are advancing towards our positions in a broad 
front. Fighting is taking place around several enemy penetrations 
on the 2nd Army sector. Strong enemy attacks were repulsed on the 
4th and 9th Army sectors. 

Northern Army Group : 

The lines of the I Army Corps south of Volkhovstroy were 
withdrawn as far as Panevo. Strong enemy attacks near Ovlovno and 
south of Schluesselburg as well as west of Oranienbaum were repulsed 

2. Finnish Front : 

No change in the situation. 

5. North Africa : 

Strong enemy forces with new armored units which followed 
our Panzer Group reached the area approximately 90 km. from Ben- 
ghazi by the evening of 20 Dec. At that time our Panzer Corps 
stood in the area southeast of Benghazi after surmounting most dif- 
ficult road conditions. The Italian XXI and X Army Corps held the 



-211- 9862 



20 Dec. 19*U 



CONFIDENTIAL 



covering positions near Karaua and north of Maraua. The Air Force 
was able to fly only one mission in support of our troop movements 
because of fuel shortage. Some of the fuel transported to North 
Africa by submarines is unusable because of too low an octane rat- 
ing. Our losses from enemy air action have increased to a regret- 
table extent. 



***♦**♦♦♦»***♦***♦***#*♦* 



-212- 



9862 



CONFIDENTIAL 

21 Dec. 19^1 

Items of Political Importance 

Great Britain ; 

The Government published a declaration concerning the occupation 
of Timor which corroborates the statements made by Salazar. The 
British declaration states that Australian and Dutch troops occu- 
pied Timor while negotiations were still in progress, supposedly 
because there was danger of a Japanese attack. 

Portugal: 

The occupation of Timor is causing concern, mainly because it is 
feared that the U.S. might seize the Azores or the Axis powers 
might use it as an excuse to occupy the Iberian Peninsula. 

Italy ; 

In Brazil, the Italian air line "Lati" has also been forced to dis- 
continue operations because its shipments of gasoline were cancel- 
led. 

Colombia : 

The President declared that Colombia feels obliged to break off 
diplomatic relations with the Axis powers. 

Brazil : 

Diplomatic reports state that the Government has firmly resolved 
not to comply with the U.S. request to break off diplomatic rela- 
tions with the Axis powers. 

Spain : 

Press reports state that Spain will continue to maintain her "non- 
belligerent" status. 



Special Items : 

I. Relief from Duty of the Commander in Chief, Army : 

See War Diary Piles "Barbarossa" for the order of the day from the 
Fuehrer to the soldiers of the Army and the Waffen-SS which was 
distributed on 19 Dec, and the order of the day to the Army from 
Field Marshal von Brauchitsch of 19 Dec. 

II. The Armed Forces High Command, Operations Staff, National De- 
fense informed the Naval Staff of the results of the conference be- 
tween the Commanding General, Norwegian Theater, and Field Marshal 



-213- 



9862 



21 Dec. 19^1 CONFIDENTIAL 

Mannerheim. It was decided not to launch the winter offensive on 
Kandalaksha, but to launch instead a massed attack on Byelomorsk 
in the beginning of March to cut the railway to Murmansk and to 
gain an initial point for further operations. The prospect of get- 
ting the VII Mountain Division under his command was held out to 
Field Marshal Mannerheim. This division can be brought up in early 
January via Helsinki and Petrozavodsk. 

III. The Food Situation in Italy : 

Report No. 10 published by the Naval High Command, Administrative 
Division giving a very detailed review of the food situation in 
Italy states in Its summary that it is still too early to draw far- 
reaching conclusions showing that Italian supplies are inadequate. 
Although the standard of living is modest, there are still some re- 
serves of almost everything. However, it must be considered likely 
that Italy will be confronted by new problems within half a year be- 
cause the reserves are slowly being exhausted. 

IV. German- Japanese Cooperation ; 

In accordance with the present policy of close cooperation, and in 
view of the European repercussions of the occupation of Timor by 
the Australians and the Dutch, the Japanese Naval Attache informed 
the Chief, Operations Division, Naval Staff that the Japanese are 
not planning to take any countermeasures at present and asked for 
our opinion. The Chief, Operations Division, Naval Staff first of 
all welcomed this information and the inquiry as proof that the 
Axis navies are coordinating their strategic and operational think- 
ing as essentially desirable. He pointed out that the Japanese 
opinion that there Is no military or strategic obligation to at- 
tack Timor is fortunate in view of possible repercussions in Europe. 



Situation 21 Dec. 19^1 

I. War in Foreign Waters 

1. Enemy Situation ; 

North Atlantic ; 

On 21 Dec. the RENOWN was located northwest of the 
Hebrides proceeding in the direction of Iceland. At the same 
time, the RODNEY was presumably proceeding from Iceland to north- 
ern Scotland. 

South^Atlantlc ; 

The INDOMITABLE is presumably located somewhere between 
Trinidad and the Cape of Good Hope. A press report from Buenos 
Aires states that the U.S. is expected to propose at the confer- 
ence in Rio de Janeiro that all American countries make their 
navies available for a convoy system, to be set up within western 



_2i4- 9862 



21 Dec. 1941 CONFIDENTIAL 

territorial waters. 

Indian and Pacific Ocean ; 

On 16 Dec, convoy BA 11 departed from Bombay en route 
to Aden. On 18 Dec, the U.S. radio station on Mary Island broad- 
cast directives to all U.S. merchantmen concerning procedures to 
be followed when sailing the Columbia River and the Strait of Juan 
de Fuca. ' 

2. Own Situation : 

The Naval Attache at Tokyo forwarded the brief report 
which the KULMERLAND received from ship "41" the middle of Octo- 
ber and brought to Tokyo. According to this report, the auxiliary 
cruiser was located between Colombo and Sabang on 1? June 1941 and 
was ready to proceed into the Bay of Bengal when she encountered 
an enemy auxiliary cruiser 24 June and had to give up this plan. 
On 26 June she sank the Yugoslav steamer VELEBIT and the Australian 
steamer MARAWA. Prom 17 July on ship "41" operated in the area be- 
tween Sumatra, Java, and the northwestern corner of Australia, from 
11 Sept. on she operated in the area between the Maldive Islands, 
Chagos Archipelago, and the Seychelle Islands, where she sank the 
Greek steamer STAMATIOS G. EMBIRIOS on 23 Sept.. On 16 Oct., ship 
"4l" met the KULMERLAND. Her engines were overhauled in the middle' 
of July and September. Altogether ship "4l" sank eleven enemy ships 
totalling 68,283 BRT . The commandant of the auxiliary cruiser 
states in his estimate of the situation that enemy naval forces ef- 
fectively keep enemy shipping from sailing within unprotected waters 
so that a merchant raider's chances for sinking vessels are slight. 
In spite of this however, the indirect effects seem to warrant that 
an auxiliary cruiser be on duty in the operational areas of ship 
"41". 

On the basis of the new situation resulting from the U.S. and Japan 
entering the war, the Naval Staff, Operations Division has revised 
the "Directives for the Conduct of the War against Merchant Ship- 
ping". The most notable changes are as follows: 

"1. Ships of the United States and all her allies are to be 
treated as enemies. 

"2. All limitations in the blockade areas have been rescinded 
(with exception of shipping to and from Sweden). 

"3. The Pan-American safety zone is no longer to be honored. 

"4. Not only completely blacked-out ships, i.e., ships pro- 
ceeding with extinguished running lights, are from now on to be 
considered blacked-out, but also ships proceeding with their run- 
ning lights burning but without lighted neutrality markings." 

See War Diary Files "Directives for the Conduct of the War against 
Merchant Shipping" for a copy of the revised edition as per 1/Skl 
I ia 28708/41 Gkdos. Reports on the Enemy Situation sent by .Radio- 
grams 1609, 1709, 2011, and 2347. 



-215- 9 862 



21 Dec. 19^1 CONFIDENTIAL 

II. Situation West Area 

1. Enemy Situation ; 

Air reconnaissance located eight steamers and one tanker 
off Lizard Head, three steamers off Falmouth, and four steamers of 
various sizes off Plymouth. During the evening, radio monitoring 
intercepted urgent code signals from Harwich, presumably reports on 
locations of German PT boats and reports from patrols around Lowe- 
stoft concerning the sighting of unidentified vessels. 

2. Own Situation : 

Atlantic Coast ; 

The departure of ship "10", which has in the meantime 
proceeded from Le Havre to Bordeaux, and the departure of the 
tanker BENNO are scheduled for 22 Dec. 

Admiral, France reports that the anti-aircraft defenses of Brest 
have been strengthened considerably during the last few days. The 
very considerable total of anti-aircraft artillery defenses now 
comprise thirty four heavy and twenty two light anti-aircraft ar- 
tillery batteries and nine searchlight batteries. The pursuit de - 
fenses now comprise six squadrons, which means that all available 
forces within the area of the 3rd Air Force have been committed to 
the defense of Brest. Thus the anti-aircraft artillery and pursuit 
plane protection is stronger than, for example, that of Wilhelm- 
shaven. However, the absence of night pursuit facilities consti- 
tutes a gap in the defenses. It will take three to four months to 
remedy this situation. Temporary measures for flying night pursuit 
missions are not possible according to the 3rd Air Force. A further 
reinforcement of the anti-aircraft artillery defenses would have to 
come from Navy resources in other areas. However, the Naval Staff 
does not consider such action necessary aside from the fact that 
the required materiel is not available elsewhere. For the report 
from Admiral, France see Radiogram 1400. 

Channel Coast ; 

During the evening, the 2nd and 4th PT Flotillas went on 
torpedo and minelaying missions in the area between Great Yarmouth 
and Orfordness. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 
Nothing to report. 

2. Norway ; 

Enemy Situation ; 

No new reports have been received. 



-216- 9862 



21 Dec. 19^1 CONFIDENTIAL 

Own Situation ; 

The steamer ELMSH6RN (4,301 BRT) was torpedoed by an enemy 
submarine In the entrance to the Varanger Fjord. It Is kept afloat 
by its cargo of wood and Is drifting In a southerly direction. The 
crew abandoned ship. The harbor patrol vessel STEINBOCK sank when 
the weather became worse. A bomb Inflicted light damage on the 
steamer MAGDALENA VINNEN off Stadland. 

After receiving the battle reports of all of Its destroyers, the 
8th Destroyer Flotilla reports that one enemy destroyer was defi- 
nitely sunk and that it may be assumed with certainty that the 
second one also sank (see Radiogram 2300). 

Radiogram 1310 from the Commanding Admiral, Norway reports that a 
rumor is circulating in Harstad to the effect that American, Cana- 
dian, and British troops will land in northern Norway during the 
Christmas holidays. Little credence should be given to this rumor 
although it has found remarkably wide circulation. 

In view of the necessity for alleviating the convoy- situation along 
the Arctic Coast by transferring an additional minesweeper flotilla 
to that area, Group North inquired on 13 Dec. whether sweeping a 
mine- free channel to Helsinki can be delayed, whether the convoy 
situation along the Arctic Coast is very urgent and necessitates 
the immediate transfer of a minesweeper flotilla, or whether the 
operations conducted by Group West are of such importance that it 
is altogether impossible to spare a minesweeper flotilla for the 
Commanding Admiral, Norway. This problem has become all the more 
urgent since the 3rd Minesweeper Flotilla must be overhauled after 
it has been relieved by the 15th Minesweeper Flotilla, and the Com- 
mander, Minesweepers could transfer the 4th Minesweeper Flotilla to 
Norway only at the expense of foregoing the sweeping of a channel 
west of Dagoe. Any further reduction of the forces under Command - 
ing Admiral, Defenses, North and Commanding Admiral, Defenses, East 
cannot be tolerated, however. 

The Naval Staff took a stand on this matter on 16 Dec. and decided 
that it is at present impossible to transfer further reinforcements 
to Norway. (See War Diary 16 Dec, Own Situation, Baltic Sea.) 
However, the Naval Staff believes that the priority rating of op- 
erations in the Arctic Ocean area should be reviewed in view of the 
shortage of minesweepers and defense forces. It is the opinion of 
the Naval Staff that escort service, submarine chase and minesweep- 
ing operations are more urgent than the laying of mine fields (in- 
cluding the mine field in Petsamo Fjord) since the latter are only 
of limited value for the protection of convoys. 

The Commanding Admiral, Norway is advised accordingly. Group North 
informed . 

3. Arctic Ocean ; 

The Commanding Admiral, Submarines believes that a sub- 
marine staff officer should be detailed to the Admiral, Arctic 



-217- 9862 



21 Dec. 19^1 :::.t~z:.t :.-•.! 

Ocean for as long as submarines are operating within that area. 
The Naval Staff welcomes this suggestion. 



IV. Submarine Warfare 

1. Enemy Situation : 

A Spanish report states that the British steamer OGMORE 
CASTLE and the tankers 3RITISH CONSUL and VELMA were sunk out of 
convoy HG 77. According to an Italian report, on 19 Dec. a Brit- 
ish destroyer is said to have landed at Gibraltar forty nine Ger- 
man prisoners of war from two submarines that had been sunk. An 
intelligence report states that two specially small patrol vessels 
or submarine chasers camouflaged as Spanish fishing steamers, are 
now operating in the Gibraltar area. At noon, radio monitoring 
intercepted a report from an airplane telling of a bomb attack on 
a submerging submarine east of Gibraltar, and it is assumed that a 
hit was scored. During the evening, radio monitoring intercepted 
an order to a plane, repeatedly given, that it attack a submarine 
proceeding east of Ceuta. 

2. Own Situation : 

Contact was maintained with convoy HG 77 which has 
reached a point near kj>° N. Two submarines setting out on mis- 
sions have also encountered the convoy. At 2300, submarine U "751" 
scored three hits on an aircraft carrier which it reported to be 
of the FORMIDABLE class. It is highly probable that the aircraft 
carrier sank, but enemy interference prevented further observation. 
About an hour later, submarine U "67" reported an unsuccessful at- 
tack on aircraft carrier UNICORN. 

See War Diary, Part B, Vol. IV for a detailed report on the situa- 
tion. The Commanding Admiral, Submarines reports that according 
to a special source, apparently a letter from a prisoner of war 
camp, secret material, codes, and recognition signals of submarine 
U "570" were destroyed. 



V. Aerial Warfare 

1. British Isles and Vicinity : 
Nothing to report. 

2. Mediterranean Theater : 

An attack by eight bombers on the British vessel lying 
at Valetta and tentatively identified as a battleship, scored no 
direct hits. 

For reports by reconnaissance see Enemy Situation, Mediterranean. 



-218- 9862 



21 Dec. 1941 CONFIDENTIAL 

j5. Eastern Front ; 

Nothing to report. 



VI. Warfare in the Mediterranean 

1. Enemy Situation: 
Western Mediterranean : 
Nothing to report. 

Central and Eastern Mediterranean : 

In the afternoon of 20 Dec, German aerial reconnaissance 
reported sighting two battleships lying at Valetta. An Italian re- 
port of the morning of 21 Dec. confirmed this. The Italian Navy 
assumes that one battleship and one heavy cruiser are involved. 
Aerial photography evaluation by the X Air Corps of 21 Dec. shovs 
that the four vessels which had been sighted off Alexandria on 
20 Dec. were destroyers, not cruisers. It is altogether impossi- 
ble to expect aerial reconnaissance to determine types of vessels 
with absolute accuracy, and therefore one cannot be absolutely 
sure that the ship lying at Valetta is actually a battleship. No 
naval vessels or merchantmen were reported sighted on 21 Dec. 
On 20 Dec, Italian radio monitoring intercepted messages of an 
encounter between a submarine and a cruiser off Alexandria and the 
subsequent arrival of the cruiser at the port. 

2. Own Situation : 

The 3rd PT Flotilla performed no missions because of the 
weather . 

3. Situation Italy : 

A belated report from the Italian Navy states that the 
submarine BAGABUR scored three torpedo hits on a British cruiser 
near Malta on 14 Dec. It is believed certain that the cruiser 
was sunk. According to a report from the Naval Supply and Trans- 
port Office at Tripoli, an enemy air raid at noon caused no mili- 
tary damage. The report on the situation from the Italian Navy 
contains a belated description of events on 17 and 18 Dec. The 
report states that a brief engagement took place between the Italian 
naval force and an enemy force consisting of a battleship, four 
cruisers, as well as twelve torpedo carriers. The engagement 
was interrupted by darkness. During the subsequent engagement with 
enemy destroyers, one destroyer was sunk by the GORIZIA and another 
one badly damaged and probably sunk by Flotilla MAESTRALE. During 
the evening of 18 Dec, enemy bombers and torpedo planes attacked 
the Italian convoy off Tripoli. The steamer NAPOLI was damaged dur- 
ing the raid but nevertheless towed into Tripoli. 



-219- 



21 Dec. 19^1 CONFIDENTIAL 

An Italian report states that the enemy has occupied Derna. Accord- 
ing to a report from the Naval Supply and Transport Office, North 
Africa, the evacuation and destruction of Benghazi is under way. 
All offices of the Army and the Air Force have already left. Lieu- 
tenant Meixner is supposed to move to Ras el Aali during the night 
of 21 Dec. or the morning of 22 Dec. after the last vehicles have 
been dispatched and destruct: on of harbor installations is completed 
(see Radiogram 2100). 

4. Transport of Supplies to North Africa : 

One more destroyer arrived at Benghazi on 20 Dec. Since 
20 Dec. three transport submarines are en route to Benghazi or 
Bardia. 

5. Area "aval Group South : 
Aegean Sea ; 

Enemy Situation : 

Reports state that submarines vere sighted in the Gulf of 
Mirabella (Crete) and off Candia, but the same submarine vas prob- 
ably involved in both instances. 

Own Situation : 

Describing the torpedo boat situation in his command 
area, the Admiral, Aegean proposes that the two or three torpedo 
boats under his command which are fit for duty be used only for 
transporting supplies destined for Korth Africa from Greece to 
the relay station at Suda. There the supplies should be transferred 
onto destroyers under the command of the Supermarina at Rome and 
taken to Africa (see Radiogram 033*0 • 

Land batteries fired tventy seven rounds at an enemy submarine off 
Candia . 

Black Sea : 

Enemy Situation : 

Reports from agents state that approximately sixty cut- 
ters and allegedly eight smaller naval vessels are lying at Temryuk 
ready to land about 2,000 men north of Kerch. The XXX Army Corps 
expects enemy troop landings by about five ships 20 km. east of 
Balaklava. 

Cwn Situation : 

The only way in which the Navy could interfere in enemy 
landing attempts at this time is using submarine DELFIKUL. How- 
ever, this submarine is not fit for duty right now and its crew is 
not trained for such an operation. 

Otherwise nothing to report. 



9862 

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» 



21 Dec. 1941 CONFIDENTIAL 

VII. Situation East Asia 

1 . Enemy Situation ; 

For data on the mine field east of Singapore harbor see 
Radiogram 1930. 

2. Situation Japan ; 

According to a report from the German Ambassador at Tokyo, 
the Japanese consider the situation on the Philippines already under 
control. A report from the Military Attache at Bangkok of 17 Dec. 
states that Japanese plans are as follows; Conquest of Hong Kong by 
Japanese Canton Army; simultaneous occupation of the Philippines by 
the army under Homma; advance into southern Malaya and attack on 
Singapore by the army under Yamashita; penetration of Burma and ad- 
vance on Rangoon by the army under Jida. Furthermore, if after com- 
pletion of these operations no agreement can be reached with the 
Dutch peacefully, it is planned to attack Sumatra, Dutch Borneo, 
and Java. An attack on Australia and India is thought of as the 
next step. Operations are proceeding as planned according to the 
reliable source of the above information, Colonel Ishii. The only 
cause for worry is interference with transport operations by enemy 
submarines. Ship losses amount to k<?o so far. The Americans show 
less fighting spirit than the British, who fight doggedly and ten- 
aciously. 



VIII. Army Situation 

1 . Russian Front ; 

Southern Army Group : 

Fighting in the Crimea was characterized by enemy counter- 
attacks which were repulsed everywhere, greater effectiveness of 
enemy artillery through use of naval artillery, and enemy landing 
attempts. A local enemy attack was repulsed on the sectors of the 
1st Panzer Army, the 17th Army, and the 6th Army. Furthermore ar- 
tillery activity on other sectors. 

Central Army Group ; 

The 2nd Army was again subjected to strong enemy attacks 
which led to new penetrations. The XLVII, LIII, and XXIV Army 
Corps withdrew to the Sabino-Gorbachevo-Odoyevo Line. The enemy 
followed up without launching an attack. Also the 4th and 9th 
Armies were subjected to severe enemy attack. The situation near 
Mozhaisk is very critical. The new positions of the XXVII and VI 
Army Corps south of Kalinin were exposed to heavy enemy attacks. 

Northern Army Group ; 

Under continuous enemy pressure, the position of the XXIX 
Army Corps must be withdrawn to the Volkhov River. 



9962 

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21 Dec. 19^1 C0HFIE5NTIAL 

2. Finnish and Norwegian Front : 

No change in the situation. 

?. North Africa ; 

The German Afrika Korps continued its march in the Agedabia 
area. Withdrawal movements on the XXI and X Italian Army Corps sec- 
tors are proceeding according to plan. The fuel situation limited 
the fighter escorts of the Air Force on 21 Dec. 

*******•*»*****»♦♦♦***♦*** 



»862 



222- 



CONFIDENTIAL 

22 Dec. 19^1 

Items of Political Importance 

Spain : 

See Political Review No. 300, Paragraph j5 for Spanish reaction to 
the Japanese occupation of the Philippines in view of the high per- 
centage of Spaniards living in the Islands. 

Ecuador : 

Contradictory reports have been received concerning the Galapagos 
Islands. Some state that the U.S. is about to occupy the islands 
while others maintain that U.S. pressure in connection with recent 
developments in the Pacific is letting up. 

U.S.A .! 

Admiral Ernest King, until now Chief of the U.S. Atlantic Fleet, 
has been named Commander In Chief of the U.S. Fleet. Through a 
statement by the Department of State concerning the Martinique 
Agreement, it has become known that Roosevelt sent a~ message to 
the French High Commission assuring them that French sovereignty 
will not be jeopardized. The U.S. is only interested in. maintain- 
ing friendly relations with France, but must also be concerned about 
its own safety. 



Conference on the Situation with the Chief, Naval Staff . 

The Naval Staff, Quartermaster Division, Plans and Schedules 
Branch (All) reports how the Fuehrer directive to transfer unes- 
sential German troops out of the Rumanian area is being carried out, 
and gives reasons showing that it might be appropriate to change 
the title of the Commanding Admiral, Naval Mission in Rumania to 
"Admiral, Black Sea" in view of the actually purely operative mis- 
sion of this command. The Chief, Naval Staff endorses this propo- 
sal. It seems that the Armed Forces High Command is planning to 
place the Navy forces remaining in Rumania under Army command, but 
the Chief, Naval Staff decides that any such move must be rejected. 
The Chief, Operations Division, Naval Staff reports on the confer- 
ence with the Japanese Naval Attache, Captain Yokoi (see War Diary 
21 Dec). 

The conflicting political and military viewpoints became very ap- 
parent during the discussion of the announced Japanese intentions 
to annex bases on Madagascar and to launch from them operations 
against enemy shipping. Although from a military point of view it 
would certainly be advantageous if the enemy's life-line were at- 
tacked and disrupted at this vit$l point, the political consequen- 
ces of such a step on the part of the Japanese, i.e., an unfavorable 
effect on Franco- German relations and an expansion of the yellow 



9862 

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22 Dec. 19^1 CONFIDENTIAL 

sphere of influence far beyond 70° E toward the west, are of such 
importance that it seems wise to work very definitely against this 
Japanese intention. In this connection, the Chief of Staff, Naval 
Staff emphatically points out the grave danger which will arise if 
the Japanese annexation of Madagascar arouses a reaction in French 
Vest and North Africa which consequently will make it impossible 
to regain and maintain German and Italian control over the Mediter- 
ranean. 

The Naval Staff, Operations Division, Political and Propaganda Sec- 
tion reports that an apology has been forwarded to the Spanish 
Government concerning the sinking of the steamer BADALONA by the 
German Air Force. The Chief, Naval Staff once more points to the 
significance of the naval vessels at Brest, the importance of which 
is now greater than ever as the result of the new situation and the 
protection of which against the extraordinary threat from enemy air 
forces constitutes a military problem of prime importance. The ar- 
tillery and smoke screen defenses should be adequate. In order to 
provide defense against high altitude enemy planes, it is ordered that 
the Commander in Chief, Air be notified of the necessity for attack- 
ing enemy air bases. 



Situation 22 Dec. 19*H 

I. Var in Foreign Waters 

1. Enemy Situation : 

The ILLUSTRIOUS was located in the immediate vicinity of 
the British Isles, and the SUFFOLK in the Rosyth area. According 
to Reuter, the U.S. Navy Department announced the creation of a 
sea frontier system involving the areas of thirteen harbors and 
important shipping routes along the east and west coasts. All ship- 
ping within those areas will be under Navy control. The following 
harbors are concerned: Portland, Maine; Portsmouth, New Hampshire; 
Boston; Narragansett Bay, Rhode Island; San Diego; San Francisco; 
the mouth of the Columbia River and the Strait of Juan de Fuca; 
Puget Sound, Washington; New London; New York Harbor; Delaware 
Bay and Chesapeake Bay; Norfolk, Virginia, and the harbor of 
Charleston, South Carolina. The Navy Department announced that 
publication of weather reports would be restricted. According to 
Associated Press, the White House is considering the creation of 
an Inter-American convoy system in which naval vessels of the South 
American States are to participate. 

South Atlantic : 

The INDOMITABLE was supposed to leave Trinidad on 17 Dec. 
and if possible proceed to the Cape of Good Hope area via 05° N 
47° W, 03° 40' S 17° 20' W, 38° S 16° 30' E, 37° S 27° E, and 32° 
30' S 31° 00 1 E. On 16 Dec. the following vessels were at sea on 
patrol duty: Auxiliary cruiser WOLFE between 20° and 30° S, 0° and 
10° W; the BUL0L0 between 20° and 30° S, 30° W to the South Ameri- 
can coast; the ASTURIAS in the Bahia area. On 16 Dec. the cruiser 



9862 

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22 Dec. 19^1 CONFIDENTIAL 

BIRMINGHAM was located at about 26° S 20° ¥ headed for La Plata. 
On 17 Dec. two vessels coming from the south arrived at Simon's 
Town (Cape of Good Hope). On 18 Dec. the BORNEO and SOUTHWORLD 
were reported leaving Durban for Klllndini (Kenya). 

Indian Ocean : 

On 7 Dec. the French steamer ST JAQUES left Bombay en 
route to Basra loaded with troops and materiel. For points en 
route see daily situation reports. 

Pacific Ocean : 

The order to make for the nearest port was rescinded by a 
radiogram sent to all U.S. ships in the Pacific by the Commanding 
Admiral of the 12th Naval District. 

2. Own Situation : 

Radiogram 2046 was sent to all concerned, informing that 
code word order "Perseus" for cipher "Triton" and "Heimisch" will 
no longer be effective beginning 26 Dec. All concerned informed 
about the situation in East Asia by Radiogram 0523; about the en- 
emy situation by Radiogram 1815. 



II. Situation West Area 

1. Enemy Situation : 

According to aerial reconnaissance, a convoy made up of 
twelve steamers escorted by a cruiser and two escort vessels was 
located south of Milford, course 100°. Two cruisers and one de- 
stroyer were located on southwesterly course south of Queenstown. 
Long-range reconnaissance located convoy HG 77 at 45° 20' N, 20° 
20' W on northerly course. The convoy was made up of twenty six 
steamers escorted by a cruiser, two destroyers, and four or five 
escort vessels. One FW 200 is missing from the long-range recon- 
naissance forces of 21 Dec. 

2. Own Situation : 

Atlantic Coast : 

The tanker BENN0 departed from St. Nazaire. Auxiliary 
cruiser, ship "10" departed from Bordeaux. Security measures for 
both vessels were executed according to plan. Long-range recon- 
naissance missions are planned for 23 Dec. depending on the posi- 
tion of the convoy. 

The Naval Staff wonders whether departure of the two vessels was 
not premature in view of the position of convoy HG 77 > especial- 
ly since the weather forecast leads us to expect high barometric 
pressure with visibility ranging from good to fair. 



9862 

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22 Dec. 19*1 CONFIDENTIAL 

Channel Coast : 

?he r.rinelaying mission of the 2nd and 4th PT Flotillas 
was executed according to plan. Weather conditions prevented tor- 
pedo attacks . 



Ill, "orth Sea, Norway, Arctic Ocean 
1. North Sea: 



Znerr.y Situation : 



No special observations. Convoy FS 78 entered the Thames 

Ovn Situation : 

From 1900 to 2300 enemy planes crossed the coast near 
Terschelling on their way to and from the East Frisia-V/eser River 
area. The main target for the raids was Wilhelmshaven where four- 
teen high explosive and sixty incendiary bombs were dropped. One 
oil storage tank in the Tirpitz harbor was damaged. One of the at- 
tacking planes was shot down near Norderney by Navy anti-aircraft 
artillery. 

2. Norway : 

Enemy Situation : 

Aerial reconnaissance identified the enemy force located 
northeast of Kola Bay as comprising one destroyer and two escort 
vessels escorting a 4,000 BRT steamer. According to press reports, 
the Soviet Government has decided to construct two new ports in the 
Arctic Ocean, to be called Noviport and Igarka, in the mouths of 
the 0b and the Yenisei Rivers respectively. These ports will serve 
to receive the increased shipments of war materiel during the sum- 
mer of 19^2. 

Own Situation : 

Salvage operations on the steamer ELMSH0RN (cargo: 
Barracks for Petsamo) and attempts to scuttle her by artillery 
shelling were unsuccessful, partly because of weather conditions, 
partly because of buoyancy of the cargo. 

The departure of submarines U "134", U "454", and U "584" for their 
respective zones of operation is planned for 25 Dec. A Norwegian 
steamer arriving at Honningsvaag was unsuccessfully fired at by an 
enemy submarine. Torpedoes exploding on the rocks Lnflicted heavy 
damage to the signal station but caused no casualties. Mine-ex- 
ploding vessel "139" detonated six ground mines in the harbor of 
Oslo. Because the mine-exploding vessel sustained heavy damage 
during the operation, further clearing operations had to be tem- 
porarily discontinued and the endangered area closed to shipping. 



9862 

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♦ 



22 Dec. 1941 CONFIDENTI.'lL 

The coastal batteries in the Narvik area have been ordered to he 
ready for action on shorter notice beginning 21 Dec. in view of 
the current rumors about an irar.iinent enemy landing. Group North 
makes the following appropriate comment concerning these rumors 
which had been reported by the Commanding Admiral, Norway (see War 
Diary 21 Dec): Even though it is very unlikely at this time 
that any of the rumors concerning enemy landings are true, and 
though it is unlikely that large-scale operations against northern 
Norway will be launched in view of the probability that they will 
be repulsed, there is an increasing possibility that the enemy will 
try to gain prestige by staging surprise raids and achieving quick 
successes in view of growing difficulties, such as defeat in the 
Pacific." 



IV. Skagerrak, Baltic Sea Entrance 3 y Baltic Sea : 

Bad weather forced coastal patrol vessels in the Skagerrak to seek 
shelter near Skagen. Five of our own and four British nines, as 
well as three explosive floats, were detonated eight miles north 
of Skagen. Three steamers left Stettin on 22 Dec. in order to 
transfer the 3rd Mountain Division from Vasa. 

Concerning the transfer of an infantry division from East Prussia 
to Riga and Reval between 2"9 Dec. and 10 Jan., an agreement has 
been reached with the Army High Command and the Northern Army Group 
whereby half of the troops are to be shipped to Reval and the other 
half to Riga. Group North received the order to provide an ade- 
quate convoy for the transport of the troops to Reval. This mis- 
sion has priority over all others, including the establishment of 
a deep water channel to Reval and, if necessary, also the coastal 
patrols in the Skagerrak. The Army High Command is willing to 
take the responsibility for later effects on troop and supply ship- 
ments resulting from a delay in establishing a deep water channel 
to Reval. Transportation details will be arranged between the In- 
fantry Division and Naval Staff, Quartermaster Division, Shipping 
and Transportation Branch through the Supply and Transport Office 
of the Armed Forces Overseas. For the corresponding order to Group 
North see Radiogram l6l6. Radiogram 1538 from Group North reports 
that, to begin with, one minesweeper flotilla will be alerted and 
that another one will be held in reserve. 



V. Submarine Warfare 



1. Enemy Situation: 



Intercepted reports from enemy planes state that they 
sighted submarines, presumably in the vicinity of convoy HG 77* 
and also an oil spot and a submarine north of the Saint George's 
Channel; a British vessel was located approximately eighty miles 
northwest of Cape Ortegal. According to an intelligence report, 



9862 

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22 Dec. 19^1 CONFIDENTIAL 

a convoy was expected to arrive at Lisbon between 20 and 22 Dec. 
A submarine chase was reported in the Gibraltar area. According 
to an intelligence report, a Canadian ship with a damaged bow, iden- 
tified as K "196", was towed into Gibraltar. 

2. Own Situation: 



From further reports from submarine U "751" about the at- 
tack on the aircraft carrier it may be concluded almost with cer- 
tainty that the aircraft carrier was not one of the FORMIDABLE 
class but the UNICORN and that she was definitely sunk. On the 
basis of subsequent data it may be presumed that the later unsuc- 
cessful attack by submarine U 68" may have been made on a steamer 
equipped with a catapult. According to further reports, the steam- 
er which was torpedoed in convoy HG 77 on 19 Dec. sank. Contact 
with the convoy was maintained. For a further situation report see 
War Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

For data on enemy raids in the Cuxhaven-Bremen area see 
Situation North Sea. For air reconnaissance reports see Situation 
West Area. Otherwise nothing to report. 

2. Mediterranean Theater : 

Missions were flown against concentrations of enemy 
vehicles in the Derna area. 

3. Eastern Front : 

Support of Army operations . 



VII. Warfare in the Mediterranean 

1. Enemy Situation : 

German aerial photographic reconnaissance over Valetta 
showed two cruisers, one auxiliary cruiser, six destroyers, ten 
submarines, and eight steamers lying in the harbor. No battleship 
was sighted. Italian air reconnaissance at the same Hour sighted 
one large auxiliary cruiser, three cruisers, six destroyers, nine 
submarines, six steamers, and one tanker. Air reconnaissance over 
the eastern Mediterranean sighted a few steamers and destroyers. 

2. Situation Italy : 

The steamers SPEZIA and CATAM0ST0 were sunk west of 
Misurata by an enemy submarine. According to a Stefani report 



9862 

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22 Dec. 19^1 CONFIDENTIAL 

on the naval battle north of the Gulf of Sidra, some of the enemy 
vessels were hit by bombs and torpedoes dropped by the Italian 
planes and two enemy destroyers were hit by Italian ship artillery. 
One of the destroyers exploded, while the other was already sink- 
ing when disappearing into' a smoke screen. A battleship received 
several direct artillery hits. No Italian ships were damaged. 

The German Naval Command, Italy has not reported details from the 
situation report of the Italian Navy concerning these events, par- 
ticularly the hits scored on the enemy battleship and the sinking 
of the two destroyers. 

3. Transport of Supplies to North Africa ; 

The steamer PROBITAS arrived at Tripoli on 21 Dec. with 
6,000 tons of foodstuffs. Three transport submarines are en route 
to Bardia. The steamers BROOK and ANKARA have left Benghazi en 
route to Tripoli. 

4. Area Naval Group South : 

Aegean Sea ; 

Radiogram 1405 from the Naval Staff states that the German 
Naval Command, Italy has the authority to assign a submarine to 
Group South for its current missions in the Aegean. The convoy of 
steamer SIENA, with 800 German and 100 Italian soldiers aboard, ar- 
rived at Suda. The ship is scheduled to depart again for Piraeus 
on 23 Dec. together with three troop transports carrying 300 men 
each, two steamers with Army materiel, and three empty steamers. 
Minelaying mission "Barletta" has been postponed until 23 Dec. be- 
cause of the weather. 

Black Sea ; 

According to a report from Group South, air reconnaissance 
reveals nothing to substantiate the XXX Army Corps 1 assumption that 
the enemy will attempt a landing on the southern coast of the Cri- 
mea. Otherwise nothing to report. 

5» Situation France ; 

The German Naval Command, Italy requests that the Naval 
Staff support the Italian request to the Armistice Commission that 
the French be forbidden to chase submarines and carry on submarine 
reconnaissance In the western Mediterranean. The Naval Staff Is 
also asked to insist that the French do not chase submarines in 
their own territorial waters. Concerning the latter point, the Ger- 
man Naval Command, Italy requests the Naval Staff at least to in- 
sist that the Axis Powers have the right to prohibit anti-submarine 
operations in certain French territorial waters at specified times. 
See War Diary, Part C, Vol. XVI for a copy of the corresponding 
message from the German Naval Command, Italy, as per l/Skl 29622/41 
Gkdos . 



986 2 

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22 Dec. 19^1 , CONFIDENTIAL 

VIII. Situation East Asia 

1. Enemy Situation ; 

The aircraft carrier INDOMITABLE is en route from the 
West Indies to the Indian Ocean. According to Reuter, the British 
auxiliary cruiser BANKA was lost. Radio station Daventry announced 
that Dutch East Indian air forces successfully attacked Japanese 
vessels off Miri (Sarawak, Borneo) on 19 Dec. and allegedly scored 
hits on one cruiser. According to DNB, three British PT boats 
were destroyed off Hong Kong on 19 Dec. According to a Vichy Tele- 
graphic Service report, two Japanese transports are said to have 
been seriously damaged near Legaspi by air raids, and Dutch East 
Indian planes are said to have sunk two Japanese transports en route 
from Korea to Borneo. Reuter further reports via Rome that Japanese 
troops landed on New Guinea. The U.S. tanker EMIDIO (6,912 BRT) 
was sunk off the coast of California. 

2. Situation Japan ; 

According to Domei, it is certain that the Japanese Navy 
sank nine enemy submarines so far. The crew of one submarine was 
captured. Large Japanese troop contingents, brought by four trans- 
pprts, landed at Davao on Mindanao (Philippine Islands). Enemy re- 
sistance was crushed. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group ; 

Heavy fighting around Sevastopol. No noteworthy fighting 
on the other Army sectors of the Group. 

Central Army Group : 

The enemy attack which has lasted three weeks so far, 
with twenty two divisions and five brigades against eight weak di- 
visions of the 2nd Army is continuing, and forces us to effect 
further local withdrawals. At the 4th Army sector, the enemy pene- 
trated as far as Kaluga. At the 4th Panzer Army sector, the situa- 
tion is as critical as ever because of supply difficulties. 

Northern Army Group ; 

Local enemy attacks on the various frontal sectors were 
repulsed. We were able to wipe out local enemy penetrations on 
the Leningrad front. 

2. Finnish and Norwegian Front ; 

Enemy attacks on the Svir front and south of Liza Bay 
were repulsed. 



9862 

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22 Dec. 1941 



CONFIDENTIAL 



3. North Africa ; 

The enemy's intention to block the way to the south for 
our troops standing near Benghazi, led to fighting between the 
German Afrika Korps and the 22nd Guard Brigade advancing into the 
Saunnu area via Andelat. The outcome of the battle has not yet 
been reported. Our command unit was transferred to Marsa el Brega, 



**#**#*#********»***♦**** 



k 



98 6 2 



-231- 



CONFIDENTIAL 
2J> Dec. 1941 

Items of Political Importance 

Great Britain : 

According to foreign reports on the frame of mind in Parliamentary 
and Government circles at the time Parliament was called into ses- 
sion on 19 Dec, nobody denies that the foundations of the Empire 
are gravely threatened for the first time since the outbreak of 
the war as the result of the Japanese attack. Of course, every- 
body expects that the military and political conduct of the war up 
to now will be criticized severely, but in the end there probably 
will be unanimous support for concentration of all available forces 
in order to avert the grave threat which is considered really ser- 
ious. 

Iran : 

See Political Review No. 301, Paragraph k for contents of the pact 
proposed by the British and the Russians. The pact contains, among 
other clauses, a stipulation for occupation and control of the 
Iranian traffic routes, a guarantee of present-day Iranian frontiers, 
and withdrawal of all troops six months after cessation of hostili- 
ties. Attempts to effect an early withdrawal of Russian troops 
through British mediation failed. 

U.S.A .: 

According to Reuter, Churchill arrived in Washington accompanied 
by Lord Beaverbrook; Admiral Dudley Pound; Field Marshal Dill, 
the Chief of the Imperial General Staff; Air Chief Marshal Portal, 
the Chief of Staff of the RAF; U.S. Ambassadors Vinant and Harri- 
man. Roosevelt declared that the visit serves a purpose of prime 
importance, the destruction of Hitlerism throughout the world. It 
is planned to set up a fully coordinated system of warfare in which 
Russia, China, the Netherlands, and the British Dominions will also 
be included. 

Concerning the attitude of the Latin American countries, a confi- 
dential declaration from the Chilean Foreign Ministry receives 
close attention. It states that Chile does not consider breaking 
diplomatic relations with the Axis Powers and will demand economic 
concessions from the U.S. merely for declaring her solidarity. 
Argentina and Peru would act likewise. 

Japan : 

According to the opinion held by Japanese military circles, rein- 
forcements for Singapore will probably arrive too late. A report 
from the German Ambassador states that Japanese circles are trying 
hard to show toward Germany a degree of warmth which is unusual 
in Japan. It is given to understand that Japan is especially anxious 
for military cooperation with Germany and the reopening of a shipping 
route between Japan and Europe. A German offensive in the Near East 



9862 

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23 Dec. 1941 CONFIDENTIAL 

will be especially welcome after the successful Japanese advance 
into southern Asia. 



Conference on the Situation with the Chief, Naval Staff . 

The Chief, Naval Staff decides that the top personalities of the 
Italian Navy are not to be decorated with the Iron Cross as pro- 
posed by the Commanding Admiral, German Naval Command, Italy until 
the meeting between the Chief, Naval Staff and Admiral Riccardi, 
which is to take place in the near future. 

The Chief, Communications Division, Naval Staff reports on confer- 
ences with the Japanese Naval Attache concerning two radar locat- 
ing gear (one for shipboard and one for land) to be given the Japa- 
nese. They can be sent to Japan with the next available shipping 
facility in the middle of January. He also reports on radar decoy 
balloons, as well as on the introduction of a new cipher machine 
with four cipher wheels instead of three, which constitutes a note- 
worthy progress in code technique. 

The Naval Staff, Operations Division, Foreign Affairs Section gives 
an account of the French report concerning the condition of the 
DUNKERQUE, the complete repair of which would have to take place 
at Toulon and would require eight to nine months. An account is 
also given of the progress made at the conferences of the Armistice 
Commission concerning the so-called "Rommel tonnage". These con- 
ferences seem hopeless in view of the uncompromising attitude of 
the French, who again demand revision of the treaty as a prerequi- 
site for any agreement. 

The Chief of Staff, Naval Staff expounds the following ideas about 
setting up new blockade zones: The blockade zones should be ef- 
fective against neutrals. The remaining European neutrals are 
somehow or other within the German sphere of influence, and their 
shipping is therefore also to be controlled as Germany desires. 
Therefore it remains to be seen what attitude the neutral South 
American countries will adopt and it is wise, therefore, to make 
the decision on setting up new blockade zones dependent on that 
attitude. 

The Naval Staff, Operations Division, Liaison with Air Force re- 
ports on the revision of the areas under the Commander, Naval Air 
and the 3rd and 5th Air Force. 



Special Items : 

I. See War Diary, Part C, Vol. lib for considerations by the 
Naval Staff concerning the transfer of the TIRPITZ to Trondheim. 
Since it is desirable to hold as many enemy forces in the Atlan- 
tic area as possible in view of latest developments, this trans- 



9862 

-233- 



% 



23 Dec. 1941 CONFIDENTIAL 

fer has assumed particular importance. A corresponding directive 
is sent by the Fleet Operations Section, Naval Staff to Group 
North; Fleet; Commanding Admiral, Battleships; and the Command- 
er of the TIHPITZ. Copies to Group West and Commanding Admiral, 
Norway (l/Skl I op 2175/41 Gkdos. Chefs.). 

II. After a conference with the Fuehrer, the Chief, Armed Forces 
High Command, Operations Staff, National Defense orders that the 
entire output of carbines be put at the disposal of the Army and 
that all home based units of the Air Force and Navy immediately 
are to deliver at least 50^ of their Model 98 firearms to the near- 
est Army Ordnance Depot without substituting captured weapons. The 
respective High Commands are to report on the execution of this or- 
der. For a copy of this directive which contains further orders 
not concerning the Navy see Radiogram 2315. 



Situation 23 Dec. 1941 

I. War in Foreign Waters 

1. Enemy Situation ; 

North Atlantic : 

According to radio monitoring, the RENOWN is located in 
the Seydis Fjord, the BERWICK In the Iceland area, and the RODNEY 
and ARETHUSA at sea in the northern Scotland area. On 17 Dec. the 
battleship HOWE was located at sea, presumably in the Greenock 
area. On 22 Dec. Land's End rebroadcast a distress signal from 
the British steamer CLAN MACAULAY, approximately 130 miles north- 
east of Bermuda, indicating the presence of an enemy warship. 
The alarm was cancelled an hour later. Naval offices were warned 
that the approaches to Boston harbor have been mined and received 
sailing directions. 

South Atlantic : 

On 22 Dec. the British steamer SCYTHIA (19,761 BRT) ar- 
rived at Freetown and the BIRMINGHAM at Montevideo. A large fire 
broke out on the French steamer AURIGNY in the harbor of Buenos 
Aires. 

Pacific Ocean ; 

A submarine warning was issued for the U.S. West Coast 
in 34° 30' N 120° 30' W. 

2. Own Situation ; 

Ship "10" was informed about the brief report from ship 
"41" (compare War Diary 22 Dec.) by Radiogram 0601. Information 
to all concerned as to code word orders in effect, by Radiogram 
1012. Report on the enemy situation by Radiogram 2103. See Situa- 
tion West Area for the turning back of ship "10" and tanker BENN0. 



9862 

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23 Dec. 19^1 CONFIDENTIAL 

II. Situation West Area 

1. Enemy Situation ; 

Radio monitoring intercepted a report from enemy planes 
concerning a bomb attack at 1000 on a tanker 200 miles vest of 
Cape Ortegal. Until 1804 the enemy planes maintained contact with 
this tanker, apparently the BENNO, which was reported to be leaking 
oil badly. At 1830 a destroyer was approximately 250 miles from 
the location of the tanker in 45° N, 13° 25 » W at full speed, 
course 100°. Convoy HG 77 was located at BE 8110. 

2. Own Situation : 

Atlantic Coast ; 

No German reports were received concerning the BENNO, ob- 
viously as the result of interference. In view of this situation, 
Group Vest decided at noon to cancel the missions of ship "10" and 
BENNO and to order them to turn back. To this end, the BENNO re- 
ceived an order by Radiogram 1223 to make for Spanish territorial 
waters as quickly as possible and to proceed back to the Gironde. 
At 1*116, the BENNO was informed by Group West that submarines and 
planes will be sent out to escort her, and at 1923 was informed of 
the location, course, and speed of the British destroyer. From a 
report from the Air Commander, Atlantic Coast it later became evi- 
dent that the BENNO in damaged condition was located in BE 9239 at 
1120, course 110°, speed 8 to 10 knots. Therefore, she obviously 
turned back immediately after the enemy air raid at 1000. At 1935 
the tanker was located about 60 miles northeast of Cape Ortegal 
under our own air cover. Ship "10" is scheduled to meet escorts 
on 24 Dec. at 0600 near Bayonne. 

Mines are suspected along the submarine route 80 miles southwest 
of Lorient. Two Spitfires were over Brest from 1721 to 1753. 
Forty enemy planes raided Brest beginning at 1910. 175 high ex- 
plosive and 200 incendiary bombs were dropped and scored hits 
among other places on the naval harbor, the airbase at South Brest, 
and anti-aircraft positions. Aside from some damage within the 
city, a direct hit was scored on the billet of a Navy chemical war- 
fare unit, causing six dead and fourteen wounded. Further, damage 
was caused in the Army motor pool. No vessels were damaged. 

Channel Coast ; 

Coastal patrol vessel "1810" capsized during undocking 
operations at Le Havre on 22 Dec. The cause of this accident is 
unknown . 



III. North Sea, Norway, Arctic Ocean 
1. North Sea : 

Nothing to report. 



9862 
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23 Dec. 19*U CONFIDENTIAL 

2. Norway : 

Enemy Situation ; 

Lively radio telephone traffic between Russian and British 
vessels (submarines) as well as between these vessels and planes. 

Own Situation ; 

One of our air reconnaissance patrols sank a Russian mer- 
chantman during a low level attack east of Rybachi Peninsula and 
badly damaged another one northeast of Kharlovka. The patrol also 
reported ten German freighters between St. Ekkeroe and Vardoe which 
from afar gave away their position by light signals. Otherwise 
nothing to report. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation ; 

On 19 Dec. radio monitoring intercepted a radio message 
from Someri Island to Kronstadt stating that an attack by fifty 
Finnish ski troops had been repulsed without Russian losses. 

2. Own Situation ; 

Group North requests permission for mining the channel 
from Kronstadt to Leningrad with aerial mines, Type B "green", 
which are to be transported to the navigational channel from the 
land by sleds. According to information received from the Mine- 
laying Experimental Command, aerial acoustic mines Type B "green" 
•can later be swept individually if their location is definitely 
known. 

Group North advises the Commander, Mine Units by Radiogram 1250 
that the convoy traffic to Reval via Helsinki has priority over 
all other operations. 



V. Merchant Shipping ; 

The German steamer EGERAN which sank on 26 Nov. was the fourth ves- 
sel lost in the Memel harbor mine field. In view of the apparently 
ineffective safety measures taken by the Baltic Naval Station, the 
High Command, Navy intervenes through the Chief, Maritime Branch of 
the Operations Division, Naval Staff. For text of the directive 
see War Diary, Part C, Vol. VI (l/Skl Ha 5^-25/^1 geh.). 



9862 

-2^6- 



23 Dec. 19*U CONFIDENTIAL 

VI. Submarine Warfare 

1 . Enemy Situatio n; 

Radio monitoring intercepted a report from a British de- 
stroyer stating that the escort carrier AUDACITY (formerly refer- 
red to as UNICORN) sank in the Western Approaches at 2300 on 
21 Dec. This eliminates all doubt of the success achieved by 
submarine U "751". 

2. Own Situation ; 

The submarines which were operating against convoy HG 77 
received orders to withdraw and were assigned new missions. On 
21 Dec. a submarine east of Gibraltar scored two hits on a steamer 
of 8,000 3RT, presumably a transport, travelling in a convoy. Fur- 
ther observation was impossible because of strong enemy countermea- 
sures. In the eastern Mediterranean a submarine off Tobruk sank a 
steamer from a convoy travelling in an easterly direction and dam- 
aged another one. For detailed situation report see War Diary, 
Tart B, Vol. IV. 

The Commanding Admiral, Submarines made it clear to the Commander, 
Air, Atlantic Coast that the success achieved during the attacks 
on the well protected convoy HG 77 (one aircraft carrier and five 
vessels sunk) was made possible only through the cooperation of the 
40th Bomber Squadron, the reconnaissance of which located the con- 
voy on 15 Dec. He said that the reconnaissance done by the 40th 
Bomber Squadron during the following days was very accurate as to 
position of the convoy in spite of the latters' strong fighter 
plane escort (see Radiogram 1600). 



VII. Aerial Warfare 

1. British Isles and Vicinity ; 

Forty two of our planes laid aerial mines in the Thames 
area during the night, and eight planes flew missions against 
shipping. During the night of 23 Dec. fifty eight enemy planes 
raided the Reich; six of these raided the area Borkum-Sylt-Kiel 
Bay. For data on air raids over Brest see Situation West Area. 
No important damage was caused by enemy air activity over the Dun- 
kirk-Calais area. * 

2. Mediterranean Theater ; 

For observations by air reconnaissance see Situation Medi- 
terranean. 

3. Eastern Front ; 
Nothing to report. 



•237- 



23 Dec. 19^1 CONFIDENTIAL 

VIII. Warfare in the Mediterranean 

1. Enemy Situation ; 

No reports on enemy movements were received from the west- 
ern, central, or eastern Mediterranean. According to a report from 
an Italian agent, British losses in the Mediterranean during the 
past week are as follows: 

Sunk: Two cruisers, one destroyer, and one submarine. 

Damaged: Two cruisers. One of these, damaged by aerial 
torpedoes, arrived at Alexandria from Malta. The other damaged 
cruiser is also at Alexandria. 

2. Situation Italy : 
Nothing to report. 

3. Transport of Supplies to North Africa : 

Four transport submarines are en route to Bardia. Two 
destroyers are scheduled to arrive at Tripoli the morning of 
2h Dec. Three more destroyers with German and Italian troops 
will leave Augusta for North Africa the evening of 23 Dec. Pour 
naval barges are to leave Palermo for Tripoli. According to a re- 
port from the Commanding Officer, Supply and Transports, North 
Africa, enemy interference must be expected along the route from 
Benghazi to Agedabia. Tank lighter GIORGIO is lying in readiness 
for blocking the entrance to Benghazi harbor. The moles are to be 
blasted on 23 Dec. after the last casualties have been loaded a- 
board the hospital ship TOSCANA (see Radiogram 1400). 

4. Area Naval Group South : 
Nothing to report. 

5. Situation France : 

Concerning the defense of Corsica ,, the French Delegation 
has asked the Italian Armistice Commission for permission to take 
appropriate measures. The Italian Navy considers a 3ritish-De 
Gaullist attack on the island unlikely at this time and is of the 
opinion that the French request should not be granted. The Italian 
Navy is particularly opposed to measures by the French involving 
the use of surface vessels, submarines, and aircraft carriers, 
since this might lead to confusion with Axis vessels. The Italian 
Navy requests an opinion from the Naval Staff. For details see 
the teletype from the German Naval Command, Italy as Der l/3kl 
29727/41" Gkdos. In War Diary, Part C, Vol. XVI. 



IX. Situation East Asi a 
1. Enemy Situation : 

For a description of the Burma Road including a map, ee 



9862 



"38- 



23 Dec. 19^1 CONFID ENTIAL 

News Analysis No. 47 of the report series "Foreign Navies" publish- 
ed by the Naval Intelligence Division. U.S. Headquarters at Manila, 
reports a Japanese landing with eighty transports under strong na- 
val escort in Lingayen Gulf (Luzon). Landing attempts were repulsed 
at several places. According to press reports, numerous reinforce- 
ments of troops and planes arrived at Rangoon. An Italian press re- 
port states that the U.S. and Soviet Russia are making joint war- 
preparations in Siberia, the Aleutians, and Kamchatka. Air bases 
are said to be under construction on Kamchatka. On 22 Dec. the Ad- 
miral, Colombo (Ceylon) issued a warning that a submarine is south- 
east off Trincomalee. 

2. Situation Japan : 

According to a report from the military attache at Bang- 
kok, the Japanese forces on Luzon reached Tagudin from the north 
and Nags, from the east. Doraei reports that Davao was occupied. 
According to radio Bangkok, Japanese planes raided Kuala Lumpur, 
seat of the Government of the Federated Malay States. The Japanese 
report a further landing on Luzon without giving details (see en- 
emy situation). See News Analysis No. 47 of the report series 
"Foreign Navies" published by the Naval Intelligence Division for 
a list of Japanese defense zones, accompanied by a map, as per in- 
formation from the Japanese Navy Department. 



X. Army Situation 

1. Russian Front ; 

Southern Army Group : 

A regrouping of our troops took place in the Crimea in 
order to prepare an attack on Sevastopol from the north. There 
was heavy enemy artillery fire, also from the sea, against our 
positions near Balaklava and on Kerch. The situation remains un- 
changed on the sectors of the 1st Panzer Army, the 17th and the 
6th Armies. 

Central Army Group : 

The 2nd Army was able to maintain its position. Enemy 
penetrations near Kaluga and Aleksin on the 4th Army sector were 
blocked. 

Northern Army Group : 

An enemy penetration occurred in the 50th Army Corps sec- 
tor. Otherwise no change in the situation. 

2. Finnish and Norwegian Front : 

Enemy attacks on the Svir sector and on positions of 
Mountain Corps, Norway were repulsed. 



-239- 



25 Dec. 1941 CONFIDENTIAL 

3. North Africa : 

The route from Benghazi to Agedabia vas kept open by 
counterattacks of the German Afrika Korps. The harbor of Benghazi 
was demolished. See War Diary Files "Barbarossa" for an official 
statement on the situation on the Eastern Front. The Armed Forces 
High Command, Operations Staff, National Defense supplied this 
statement at the request of the Foreign Office. 



*#**#*#****•*****•******♦**■ 



9862 
-240- 



CONFIDENTIAL 



2k Dec. 1941 

Items of Political Importance 

Great Britain and U.S.A . : 

Foreign press reports state „hat far-reaching agreements concerning 
the Allied Military High Command have already been reached at the 
conferences in Washington. According to these reports the High Com- 
mand in the Pacific is to he American. General Douglas MacArthur, 
the present Commander in Chief in the Philippines, will command 
ground troops and Admiral King will command the Navy. The British 
are to have over-all command over naval and air forces in the At- 
lantic. In the European theater of war the Russians would play 
the most Important part, while the Middle East and North Africa 
come under the authority of British and Empire forces. 

Churchill declared during a press conference that Singapore would 
be defended until the Allies launch an offensive in East Asia. For 
further details see Political Review No. 502, Paragraph 3b. 

With the consent of the Canadian War Cabinet, Roosevelt announced 
the text of the resolution of the U.S. -Canadian joint War Produc- 
tion Committee. This committee will work for maximum war produc- 
tion, through cooperation between the two countries. For the text 
of the resolution see Political Review No. 302, Paragraph 3e. 

The U.S. Government intends to send an envoy to the Vatican. The 
latest war news from East Asia has caused an unprecedented sale of 
securities on the New York stock market. 



Conference on the Situation with the Chief, Naval Staff , 
No special reports or decisions. 



Special Items : 

Concerning the Japanese proposal for creation of a border line in 
70° (see War Diary 17 and 19 Dec), the Armed Forces High Command 
shares the objections raised by the Naval Staff and agrees with 
its counterproposal. However, from a military viewpoint the mat- 
ter is not considered so Important as to justify the risk of com- 
plications and delays in the conferences should the Japanese ob- 
ject to any changes in their proposal. 

According to a report by the Commander in Chief, Air to the Armed 
Forces High Command, it will be impossible to establish military 
air communications between either Germany yv Italy air.d Japan dur- 
ing the next few years. Neither the plar. , • now available nor those 



-241- 



9862 



24 Dec. 1941 CONFIDENTIAL 

in the blueprint stage have a sufficiently long range. For .the 
teletype from the Armed Forces Eigh Command, see War Diary, Part C, 
Vol. XV (1/Skl 29755/41 Gkdos.). 



Situation 24 Dec. 1941 

I. War in Foreign Waters 

1. Enemy Situation : 

South Atlantic ; 

The BIRMINGHAM departed from Montevideo on 23 Dec . . On 
12 Dec. the auxiliary cruiser WOLFE inquired from the Allied Chief, 
South Atlantic whether the German steamer WARTENFELS and the subma- 
rines attached to it could have changed course. On 20 Dec. the 
WOLFE was at sea south of St. Helena and the BULOLO between 20° and 
30° S, 30° W and the coast of South America. On 24 Dec. the Ad- 
miral, Colombo requested an unknown British steamer to rescind her 
report concerning the vicinity of an enemy naval vessel. Original 
circumstances are unknown. 

2. Own Situation t 

The commander, five officers, and eighty four men of 
ship "16" arrived in St. Nazaire at noon aboard submarines U "68" 
and U "A". Thus the first group has successfully completed the 
eventful homeward journey. 

The reasons and events leading to the loss of ship "16" and the 
PYTHON have not yet been fully explained. It may be assumed cer- 
tain that the enemy received information through agents that sub- 
marine supply ships departed from western France. The appearance 
of submarines west of Freetown, off the Ivory Coast, and between 
St. Helena and Angola indicated to the enemy that German supply 
ships must be operating in the Central and South Atlantic. There- 
fore the enemy established patrols. On the basis of information 
gathered by the radio communication intercept service, these pa- 
trols were found to be concentrating along the line Pernambuco, 
Freetown, and northwest of St. Paul. 

The Naval Staff so far believes it unlikely that the meeting of 
our ships with enemy forces was merely coincidental, since the 
pattern of events was the same as when the ESSO and the EGERLAND 
were lost. Then too our ships encountered heavy enemy cruisers 
shortly after the prearranged time and at the precise point of 
rendezvous. It cannot be assumed that the enemy was able to break 
our codes, since the execution of numerous other operations gives 
no reasons for such a supposition. In the opinion of the Naval 
Staff, Submarine Division our codes are safe. Conspicuous are re- 
curring losses of ships while cooperating with submarines. This 
might be explained by special concentration of enemy intelligence 
on submarine warfare. The preceding analysis is made available 



9862 

-242- 



24 Dec. 1941 CONFIDENTIAL 

to ship "10" with the remark that the basic view on the situation 
and the possibilities for operations in the Atlantic remains un- 
changed in spite of the losses sustained. The return of ship "45" 
which proc .-3ded according to plan; the arrival of the prizes 
SILVAPLANA and KOTA NOFAN as well as of the BURGENLAND; and the 
successful departure of the RIO GRANDE and PORTLAND justify this 
opinion. The . change made in Paragraph G4 of the operations plan 
is explained "by the fact that no more ships are at sea, and that 
the only available merchant raider, ship 10", should make its ap- 
pearance in the designated area as quickly as possible (see commun- 
ication 1315). 

In accord with the proposal made by "Etappe Japan" (German Naval 
Intelligence Organization in Japan,- Tr. N.J, motor ship PORTLAND is 
directed by Radiogram 0107 to destroy all SEATTLE papers and to 
make herself known to the Japanese only as the PORTLAND. Radiogram 
l6l4 subsequently directs the PORTLAND to relinquish neither papers 
nor cargo to the Japanese when in port, unless ordered to do so by 
the German Naval Attache. Report on the Enemy Situation by Radiogram 
1212. 



II. Situation West Area 

1. Enemy Situation : 

According to radio monitoring, at 1025 a British plane 
unsuccessfully attacked a tanker 12 miles north of Cape Ortegal. 
At 1320, four planes received orders to attack a tanker lying at 
anchor off Cape Ortegal. At 1540 a British plane reported having 
scored a probable torpedo hit on the tanker. Further air raids on 
the tanker followed at 1651. 

2. Own Situation : 

Atlantic Coast : 

During enemy air activity over Brest between 1022 and 1050 
a plane contacted a balloon wire but did not crash. According to a 
report from the Brest shipyard, it is estimated that it will take 
four weeks for dock repairs before the SCHARNHORST can be undocked 
(see Radiogram 1434). 

Thereby enemy action has once again caused a very re- 
grettable delay in operations to make this vessel fit 
for action. 

According to a report at 2215 from the Naval Attache at Madrid, the 
tanker BENN0 was unsuccessfully attacked by British planes off Fer- 
rol at 0930 Spanish time, while proceeding elapse to shore. The 
BENN0 entered the Ria del Ferrol and anchored in Corunna Bay where 
she was again attacked by British planes in the afternoon and sunk. 
The attacks continued even after the ship had sunk, apparently be- 
cause the condition of the ship could not be clearly determined from 
the air on account of the shallow water (see Radiogram 2215). The 



, 9862 

-243- 



2k Dec. 19^1 CONFIDENTIAL 

vessel had anchored approximately 500 meters off the coast, i.e., 
irrefutably within Spanish territorial waters . 

The ruthless British methods thus finally succeeded, 
as in the case of the ALTMARK, in sinking this ship 
which was so valuable to us. Further details are 
not yet available. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation : 

According to radio monitoring, the following British ves- 
sels were located in the area of northern Scotland and Iceland on 
22 Dec: KING GEORGE V, DUKE OF YORK, RESOLUTION, RODNEY, RENOWN, 
VICTORIOUS, ILLUSTRIOUS, KENT, BERWICK, NORFOLK, NIGERIA, UGANDA, 
SHEFFIELD, TRINIDAD, SUFFOLK, KENYA, CARDIFF, CAIRO, CURACAO, CUM- 
BERLAND, HAWKINS, as well as the NELSON, which is undergoing re- 
pairs. 

Own Situation : 

Slight damage and small loss of personnel was sustained 
during an enemy air raid on one of our convoys proceeding in a 
westerly direction. The attacking planes bore German markings. 

2. Norway : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

The signal station at Honningsvaag is in operation again. 
One British torpedo was salvaged. On 23 Dec. an explosive cutter 
exploded aboard minesweeper "1508" while the gear was being brought 
in. One man was killed and six were seriously injured. Enemy 
olanes unsuccessfully attacked a convoy near Feistein. Battery 
1l Vigdal" shot down an enemy plane. 

See War Diary, Part C, Vol. Ila for the negative opinion from the 
Naval Staff, Quartermaster Division, Plans and Schedules Branch 
concerning the statement made by the Commanding General, Armed 
Forces, Norway on 7 Nov.. At that time the latter asserted that 
the coastal defense against enemy landings in Norway is not fool- 
proof in view of a shortage of artillery weapons and inadequate 
command organization. He proposed transferring the coastal defense 
of Norway to the Armed Forces, thus making the Commander, Armed 
Forces, Norway directly responsible for it. Entry in the War Diary 
as per Ski Qu. All 2481/41 Gkdos. 



-244- 9862 



24 Dec. 1941 CONFIDENTIAL 

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea ; 
No tning to report. 



V. Submarine Warfare 

1. Enemy Situation : 

Lively air activity throughout the entire rendezvous 
area and the Bay of Biscay. 

Radio monitoring intercepted a message from an unknown British ves- 
sel concerning an air raid at 1120 and shortly thereafter an urgent 
operational radiogram from the same vessel. The location of the 
vessel was not determined. According to radio monitoring, convoy 
UR 1, which has not appeared on the scene so far, presumably left 
the Clyde bound for Reykjavik. The Dutch steamer BINTANG sent an 
SOS from about 100 miles south of Newfoundland. 

2. Own Situation : 

A submarine in the eastern Mediterranean scored a prob- 
able hit on a steamer. Another submarine sank a one-stack destroy- 
er. For a detailed situation report see War Diary, Part B, Vol. IV. 

For a detailed opinion from the Naval Staff to the Commanding Ad- 
miral, Submarines concerning submarine operations in the Atlantic 
see War Diary, Part C, Vol. IV. Entry in the diary as per l/Skl 
I op 2190/41 Gkdos. Chefs. 



VI. Aerial Warfare : 

No reports have been received. 



VII. Warfare in the Mediterranean 

1. Enemy Situation : 

Western Mediterranean : 

According to a report from an Italian agent, the Polish 
transport BATTORY arrived at Gibraltar on 23 Dec. with 3,500 troops 
aboard. The troops remained aboard. The transport is expected to 
proceed in a -westerly direction. 

Central and Eastern Mediterranean : 

In the afternoon of 23 Dec. the Italian submarine TURCHESE 
sighted two cruisers and ^our destroyers on southwesterly course 



-245- 



9862 



2k Dec 19^1 



CONFIDENTIAL 



north of Cape Bugarun, Algeria. During the evening a cruiser of 
the Mediterranean Fleet was located 60 miles off Tobruk. Air re- 
connaissance over Malta on 2k Dec. revealed no change in the num- 
"ber of ships lying in the harbor. At the same time, air reconnais- 
sance located five vessels, probably one or two cruisers and de- 
stroyers, 15 miles south of Malta on a northerly course. These 
were presumably the same vessels which the TURCHESE had reported on 
23 Dec. German air reconnaissance reported a coastal patrol ves- 
sel 15 miles off Derna, and 20 miles south of Cape Martello, Crete, 
an unknown vessel on course 210°. In the area off Alexandria, 
radio monitoring located a presumably damaged British vessel during 
the evening of 25 Dec. This vessel was joined by another vessel. 
During the morning of 2k Dec. radio monitoring intercepted a mes- 
sage from a vessel approximately kO miles northwest of Alexandria. 
The vessel had a leak in the engine room and was urgently request- 
ing the assistance of a tugboat. 



2. 



Own Situation: 



At 0800 the 3rd PT Flotilla returned to its base harbor 
from a mission. No report of success. 

3. Situation Italy : 

At 1900 on 23 Dec. the torpedo boat CALLIOPE was the last 
Italian vessel to leave Benghazi bound for Tripoli. Aboard her 
were the Commanding General and the Naval Commander of the fortress, 

In principle the Naval Staff agrees with the Commanding Admiral, 
German Naval Command, Italy concerning the question of decorating 
top personalities of the Italian Navy with the Iron Cross in recog- 
nition of the successful transfer of Transport Squadron 52 to 
Tripoli and Benghazi. However, the Naval Staff does not consider 
such action opportune at the present time in view of the situation 
in Africa, and plans to award the decorations on the occasion of 
the meeting between the Commander in Chief, Navy and Admiral Ric- 
cardi in January. The German Naval Command, Italy has been asked 
for an expression of opinion and for detailed information concern- 
ing corresponding awards of decorations in the Army and the Air 
Force (see Radiogram 1500). 

k. Transport of Supplies to North Africa : 

Operations of merchant raiders and submarines were car- 
ried out according to plan. Hospital ship TOSCANA arrived at 
Benghazi at noon 23 Dec. According to a report from the Command- 
ing Officer, Supply and Transports, North Africa the daily unload- 
ing capacity of the ports in the Gulf of Sidra is approximately as 
follows, depending somewhat on weather conditions: 



In Ras el Aali 

In Mars i el Auegia 

In Sirte 

In Buerat el Hsur. 

For details see Radiogram 1936. 



up to 350 tons 
up to 120 tons 
up to 300 tons 
up to 400 tons 






-246- 



9862 



24 Dec. 1941 CONFIDENTIAL 

5 . Area Naval Group Sou th : 

Aegean Sea ; 

Concerning the Installation of an Italian Naval Command 
at Suda, the Naval Staff answers the request from the Liaison Staff 
of the Italian Navy at the German Naval Staff (see War Diary 20 Dec.) 
by referring to the development of the situation in the Mediterra- 
nean, which must have made the Italian request meaningless. See 
War Diary, Part C, Vol. XIII for the corresponding message l/Skl I 
op 297^1 Al Gkdos. 

Black Sea ; 

Enemy Situation ; 

Increased activity of Russian vessels near Sevastopol and 
lively artillery activity in Kerch Strait. 

Own Situation ; 

According to a report from the Port Command, Odessa the 
harbor will be ready to berth one to three steamers by New Year. 

6. Situation France ; 

On the basis of a guarantee given by the U.S., at the 
same time in the name of the British Government as well, the Arm- 
istice Commission has granted permission for the re-establishment 
of shipping between the Antilles, French Guiana, and the U.S.A. as 
well as between North Africa and the U.S.A. (see Radiogram l4j5l). 
According to a very confidential report from the French Delegation 
to the Armistice Commission the dispatch vessel D'YBERVILLE and the 
submarine GLORIEUX left Diego Suarez on 18 Dec. bound for Jibuti in 
order to supply the colony in secret (see Radiogram 1200). 



VIII. Situation East Asia 

1. Enemy Situation ; 

A Japanese submarine sank the U.S. steamer SAMOA and the 
tanker M0NTEBELL0 off the California Coast. According to a report 
from the U.S. War Department, heavy fighting continues in the vi- 
cinity of Lingayen Gulf. Japanese destroyers were repulsed by 
coastal artillery near Damortis. According to a report from the 
.U.S. Navy Department,, the Japanese occupied Wake Island on the morn- 
ing of 23 Dec. The only vessel captured in the process was the 
steamer PRESIDENT HARRISON. At noon 23 Dec. communication between 
Hong Kong and the British Embassy at Chungking was still intact 
and reported that British PT boats sank two Japanese vessels on 
22 Dec. Dutch East Indies planes reported a successful raid on 
enemy vessels off Davao during the morning of 23 Dec. Radio sta- 
tion Schenectady reported the sinking of a Russian vessel by Japa- 
nese vessels in the Sea of Japan on 22 Dec. 



-247- 



9862 



24 Dec. 19^1 CONFIDENTIAL 

2. Situation Japan ; 
No new reports. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group ; 

The northern part of the fortress area Sevastopol vas 
captured in heavy fighting. The situation remains unchanged on 
the sectors of the 1st Panzer Army and the 17th and 6th Army. 
Local attacks were repulsed. 

Central Army Group ; 

All enemy attacks on the 2nd Army could he repulsed. At 
the 2nd Panzer Army sector the XLVII and LIII Army Corps withdrew to 
a line running approximately from Chern to Byelev. Additional en- 
emy columns are reported on the march from Tula. On the 4th Army 
sector the Russians occupied Peremyshl (south of Kaluga). Russian 
attempts to cross the Oka were unsuccessful. On other parts of the 
4th Army sector and on the 9th Army sector we maintained our posi- 
tions. 

Northern Army Group ; 

Very heavy enemy attacks were repulsed on the Volkhov 
and Leningrad fronts. 

2. Finnish and Norwegian Front ; 

Local fighting on some front sectors without special 
significance. 

J>. North Africa ; 

Guarded by the German Afrika Korps, the withdrawal of the 
Italian Divisions from the Benghazi area to the Agedabia positions 
was concluded according to plan. Benghazi was occupied by the en- 
emy without a fight. 



*#♦»*♦***♦*♦**♦*♦**♦*♦**# 



9862 

-248- 



CONFIDENTIAL 
25 Dec. 19^1 
No Items of Political Importance have been received . 



Situation 25 Dec. 19^1 

I. War In Foreign Waters 

1. Enemy Situation : 

North Atlantic ; 

British steamer ANDALUSIAN STAR (14,94} BRT) departed 
from Trinidad on 22 Dec. bound for England. On 27 Dec. (? - Tr.N.) 
escort ship NASTURTIUM left Halifax, destination unknown. 

South Atlantic : 

On 18 Dec. radio monitoring located the BIRMINGHAM 
around 50° S 34° W. At the same time, another vessel was escort- 
ing a steamer in position 04° N 00° W (message garbled), course 
620, speed 12 knots. On 23 Dec. auxiliary cruiser EDINBURGH CASTLE 
was in the Freetown area, and auxiliary cruiser DUNNOTTAR CASTLE in 
the Simonstown area. 

Portuguese authorities state that the U.S. have decided to transfer 
their Atlantic Fleet into the Pacific. 

2. Own Situation ; 

A reply was sent to ship "10" via Radiogram 1441 in ans- 
wer to the request for information concerning the Portuguese 
steamer S. THOME (Lisbon). 



II. Situation West Area 

1. Enemy Situation : 
No reports. 

2. Own Situation: 

Atlantic Coast ; 

Mines are suspected off Lorient. The Naval Staff will 
attempt to utilize intelligence channels to supply the enemy com- 
munication service with misleading information concerning addition- 
al damage sustained by the ships at Brest during the enemy air raid 
on 18 Dec. Radiogram 1600 notifies Group West; Admiral, France; 
and Commanding Admiral, Battleships. 



9862 

-21+9- 



25 Dec. 1^41 CONFIDENTIAL 

According to a report from the Naval Attache, Madrid, the tanker 
BENNO was not sunk In Corunna Bay off El Ferrol, hut at Carlno 
near Vivero. The attack took place right In the Spanish harbor 
by means of bombs and presumably one torpedo. The British machine- 
gunned survivors in the lifeboats. Luckily only one vas killed. 
The crew Is In the process of salvaging as much from the ship as 
possible. The Naval Attache suggests press propaganda similar to 
that in the ALTMARK case. The non-military character of the ship 
is being stressed to the Spaniards. The captain is returning im- 
mediately to France by way of Madrid, the crew will follow as soon 
as possible. The Naval Staff agrees with the measures and sugges- 
tions of the Attache. 

See Radiogram 1528 for a report on the foregoing from the Naval 
Staff "to the Fuehrer and for notification of Armed Forces High Com- 
mand -and Foreign Office. 

According to a further report from the Naval Attache, Madrid,, raids 
on our ships based at Vigo (supply base "Bernardo") must be reckon- 
ed with. There are no Spanish anti-aircraft facilities in Vigo. 

Group Vest reports a temporary postponement in the second departure 
of ship "10". 

The Commander, Air, Atlantic Coast reports an attack on an enemy 
destroyer in quadrant BF 7695, headed toward the location of the 
BENTIO (compare War Diary 24 Dec). The destroyer was probably 
damaged. 

Channel Coast : 

Battery "Grosser Kurfuerst" fired twenty rounds on a con- 
voy near Dover on 24 Dec. from 2110 to 2157. The convoy was located 
28 miles off the coast. Results were not observed. Nothing to re- 
port for 25 Dec. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

According to radio monitoring, two convoys off Flamborough 
Head and Aberdeen respectively, were attacked by planes. Several 
reports of ship casualties in the area northeast of Orfordness were 
received. Damage caused was probably due to mines laid by our 
PT boats. 

Own Situation : 

No convoy or minesweeping activity because of bad weather 
conditions. In the Norderney area a low-flying enemy plane was 
shot at and hi;s were observed. 



-250- 



25 Dec. 19^1 CONFIDENTIAL 

2. Norway ; 

According to a cable from the Finnish envoy to Washington, 
diplomats claim that a British-American-Norwegian landing in north- 
ern Norvay is being prepared. The Naval Staff notifies Group North 
and the Admiral, Norway with the following comment: "The Naval Staff 
believes such a plan unlikely." (See Radiogram 1919.) A copy of 
the message is sent to Admiral, Arctic Ocean. 

A landing operation complementing and taking advan- 
tage of present Russian successes in the east, is, 
of course, not out of the question. The idea of 
severely hampering our operations in the Arctic Ocean 
and drawing more German troops from the Eastern Front 
by such a landing must tempt the enemy very much. A 
large-scale operation would at present, however, make 
somewhat too great demands on the enemy in regard to 
troops, planes, and shipping space. The enemy plans, 
therefore, are probably limited only to a local in- 
vasion for the purpose of obtaining a foothold In 
northern Norway. 

Own Situation : 

The Armed Forces High Command, Operations Staff, Nation- 
al Defense also has gathered information from various sources and 
instructs Commander in Chief, Army; Commander in Chief, Navy; 
Commander in Chief, Air; and Commanding General, Norwegian Thea- 
ter as follows: 

"information from various sources indicates the possibility 
that Great Britain and the U.S. are preparing a large-scale opera- 
tion in the Scandinavian area. If this is the case, it is most 
likely that the enemy will attempt to get a foothold in northern 
Norway. His purpose will be to cut the supply route of our forces 
on the polar coast by disrupting our sea communications and high- 
way 50, or at least to divert German forces from the Russian Front 
in Northern and Central Finland. The starting point for such an 
operation could lie in the Varanger Fjord-Alta Fjord sector. This 
area is more vulnerable than Petsamo and Klrkenes, or even the 
Narvik area. Enemy occupation of this area would greatly increase 
enemy prestige in the Scandinavian countries and would endanger the 
Iron and nickel deposits. The Commander, Armed Forces, Norway is 
ordered to recheck the defense readiness of the entire Norwegian 
area in cooperation with the Navy and Air Force. He is to report 
on the following points: 

"a. Whether available ammunition and equipment are adequate 
to ward off a large-scale operation. 

"b. What additional measures, which could become effective 
shortly, are planned for northern Norway. 

"it must be taken into consideration that no large deliveries 
of any kind from Germany can be envisaged for the time being. The 
Commanding General, Norway is therefore ordered to form a Panzer 
unit about one regiment strong out of his own resources to be used 



-251- 9862 



25 Dec. Ii'41 CONFIDENTIAL 

as reserves. The tanks for this unit and some personnel are to be 
brought up from Germany. " 

Group North; Admiral, Norway; Admiral, Arctic Ocean; Admiral, 
Polar Coast; and Admiral, North Norwegian Coast received copies 
of the above. 

Submarines U "l^V, U "454", and U "584" have departed for opera- 
tions. Otherwise nothing to report. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea ; 

Norwegian steamer P.G. HALLORSEN was sunk by a mine southwest of 
Goeteborg off the prescribed route. 

Patrol service in the Skagerrak was limited because of weather con- 
ditions. Otherwise nothing to report. 



f 



V. Submarine Warfare 

1. Enemy Situation ; 

Lively reconnaissance activity in the southern rendezvous 
area. An airplane reported a suspicious oil spot west of the 
Scilly Islands. CUMBERLAND requested on 12 Dec. that the net at 
Reykjavik be opened to permit her entrance into the harbor. Swedish 
motor ship SHANTUNG sent an SOS from a position about 300 miles south 
of Iceland. The ship is being abandoned for unknown reason. 

2. Own Situation ; 

Report in War Diary, Part B, Vol. IV. 

The Naval Attache at Madrid reports that on 24 Dec. at noon a Brit- 
ish protest was handed to the Spanish Navy Department, concerning 
the fact that German submarines are getting supplies at Vigo. The £ 
British Naval Attache explained on this occasion that survivors of 
a German submarine at Gibraltar had carelessly revealed certain 
bits of information concerning supply operations at Vigo, such as 
the fact that submarines enter the harbor under electric motors 
and come alongside the BESSEL. So far the Attache has been inform- 
ed only confidentially by a personal acquaintance. (See Radiogram 
•1658.) 

This excessive garrulity will have serious consequences from two 
points of views. First, the supply operation "Bernardo" will have 
to cease for a comparatively long time, and the ships there will 
be endangered. Secondly, the legal position in the case of BENNO 
will be altered to the advantage of the British. 



9862 

-252- 



25 Dec. 1941 CONFIDENTIAL 

The order issued "by the Commanding Admiral, Submarines supplementary 
to operation order Atlantic No. 46 concerning the sudden appearance 
of German submarines in the American safety zone (operation known as 
"Paukenschlag") indicates that submarines U "502", U "125", U "109", 
U "123", U "66 , and U "130" are proceeding separately in two groups, 
the first three boats as Group "Bleichrodt , the remaining ones as 
Group "Hardegen". They are proceeding to 60° W and 45° W respect- 
ively, and thereafter will simultaneously go to their assigned at- 
tack areas. 

War Diary, Part C, Vol. IV contains an analysis by the Commanding 
Admiral, Submarines concerning submarine operations in the area 
west of Gibraltar in view of the concentration there of enemy de- 
fense forces from the Atlantic, which is now free from submarines. 
The suggestion is also made that the eight boats in question be used 
in the Azores area with the permission of the Naval Staff, Opera- 
tions Division, as per l/Skl I op 2183/41 op Gkdos. Chefs. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

Nothing to report during the day. During the night of 
25 Dec, twenty, five airplanes were sent out to mine the Thames, 
ten to attack shipping targets. A steamer (3,000 BRT) was sunk off 
Flamborough Head; east of Hartlepool a steamer (6,000 BRT) was 
heavily damaged. A northbound convoy was attacked in the outer 
Firth of Forth and one steamer (3,000 BRT) was damaged. Two further 
steamers of 3,000 BRT and 5,000 BRT were damaged north of Fife Ness. 

2. Mediterranean Area ; 

Thirteen Junker 88 's laid mines in the harbor and approach- 
es of Benghazi, simultaneously staging nuisance raids on targets 
ashore. 

3. Eastern Front ; 

Light activity by our forces in support of the Array. 

4. Items of Special Importance ; 

The testing of Japanese aerial torpedoes (German designa- 
tion LT 850) has begun at Travemuende Proving Grounds. According 
to the Air Ministry, operational use will probably not follow be- 
cause the number available is too small. 

See Radiogram 1451 for information to this effect to the Naval 
Liaison Officer at Fuehrer Headquarters, Captain von Puttkamer. 



VII. Warfare in the Mediterranean 



-253- 9862 



25 Dec. 1941 . CC_. "IAL 

1. Ir.emy Situation : 

One cruiser and four destroyers cane into Valetta on 
24 Dec. At Malta there vere five air raid alarms betveen 2000 
and C117 during the night of 24 Dec At noon of 24 Dec. Alexan- 
dria rebroadcast an SOS from the Greek steamer KEXAS (1,753 BRT) 
which vas being attacked by a plane and requested an escort. Ra- 
dio monitoring located vessels of the 7th Cruiser Division and of 
the Coastal Squadron in the Marmarica Coast area. 

An Italian re;:r: states that two British searer. vere rescued (Ton 

a life raft near Misurata by Italian torpedo boat CALLIOPE on 24 
Dec . . They vere from the cruiser NEPTUNE which was sunk by a tor- 
pedo attack on 19 Dec. while en route from Malta to Alexandria. 
According to a further Italian report, a strong contingent of De 
Gaullist troops was transferred from Haifa to the Libyan front on 
16 Dec. No change in the enemy situation on 25 Dec. 

2. Situation Italy ; 
Nothing to report. 

3. Transport of Supplies to North Africa : 

Supplies and reinforcements by submarines and destroyers 
executed according to plan. Naval barge "150" destroyed near Sol- 
ium by enemy artillery. Porto Flutto mole in 3enghazi was blown up 
after departure of the hospital ship TOSCANA and torpedo boat CAL- 
LIOPE. . Net barrages were sunk by gunfire. 

Armed Forces High Command, Operations Staff, National Defense issues 
the following directive concerning supply traffic to North Africa 
and Crete: 

"The most Important task of the German and Italian Armed Forces 
is to support supply operations and to bring up reinforcements for 
our forces fighting in North Africa. Since transport and supply 
traffic to Crete also continues to be very important, it is urgently 
requested that shipping space and escort forces be mace available 
at the earliest opportunity. The German General at Headquarters, 
Italian Armed Forces is therefore asked to investigate in coopera- 
tion with the Commanding General, Armed Forces, South and the Com- 
manding General, Armed Forces, 3alkans when and to what extent snip- 
ing space and escort forces from the Aegean area can be diverted in 
order to recommence shipments to Crete on an increased scale. The 
results are to be reported." (See Radiogram 1921.) 

4. Area Naval Group South : 

Aegean Sea : 

According to a report from German Naval Command, Italy, 
Commanding General, South made the following statement to the Com- 
mander, Armed Forces, Balkans: 

"In view of the over-all situation in the Mediterranean area, 
Crete takes a position secondary to that of the present main 






»M1 

-254- 



25 Dec. 19^1 CONFIDENTIAL 

theater of operations. Concentration of the naval forces is urgent- 
ly necessary. However, the defense of the Aegean Sea will be made 
more effective than heretofore by means of pursuit and reconnaissance 
planes. " 

The Admiral, Aegean Sea sends the following situation analysis to 
the Commanding General, Armed Forces, Balkans and Group South (copies 
are sent to German Naval Command, Italy and X Air Corps): 

"1. The movement of the African front to the west 
causes German airports and naval bases to fall into enemy hands. 
Thereby, the enemy moves considerably closer to Crete and Southern 
Greece. This may well make it more difficult to patrol the area 
between Crete and Africa and to fight enemy naval forces in that 
area. 

"2. Air base Crete Increases in importance and at 
the same time is exposed to greater danger. Enemy surface forces 
are more likely to make their appearance north of Crete, and subma- 
rine activity may increase. 

"J>. Up to now it has been impossible to stock up 
supplies of arms, fuel, and provisions in Crete. It takes several 
months to transport occupation troops there. The situation cannot 
be expected to improve with present transport facilities and escort 
forces. On the contrary, we have to expect that the supply and 
transport situation will become even more acute. 

"4. It is therefore necessary to take immediate 
large-scale measures to transport troops and stock up arms in a 
hurry. 

"5. A temporary assignment of six Italian destroyers 
to carry troops, twelve vessels suited as convoy escorts, and six 
fast freighters is necessary. Air cover would have to be increased 
proportionately. 

"6. The operation can be undertaken only if Super- 
marina, Rome makes available the fuel oil and coal for these ves- 
sels and naval forces. At this time, the fuel oil situation here 
is acute. 

"7. Furthermore it would be wise to consider 
whether some of the troops could be transported there by plane. 

"8. If this analysis of the situation is correct, 
it is temporarily necessary to concentrate our efforts on supply 
shipments to Crete instead of to Africa. Hereabouts it is believed 
that measures must be put into effect immediately in order to bene- 
fit from a possible lull in the fighting while the enemy is re- 
grouping his forces for a new objective." 

Group South agrees with the various points of this analysis, but 
does not believe at this time that the recapture of Crete is an 
immediate British aim. It is, however, of the opinion that the 
operations in regard to Crete should be commenced as soon as the 



-255- 



25 Dec. 19^1 CONFIDENTIAL 

situation in Tripoli permits a withdrawal of Italian transport anc 
escort vessels to the Aegean Sea, if only for a short time. This 
is necessary since it will become impossible to continue the ship- 
ment of supplies to the poorly supplied island as soon as the Brit- 
ish launch an attack on Crete. 

The Naval Staff fully agrees with the analysis sub- 
mitted by the Operations Staff responsible for the 
Crete area. However, it does not consider itself 
in a position to make decisions in the matter, as 
requested by Group South, as long as every effort 
is to be directed toward shipping all available for- 
ces and materiel to Tripoli. Quite aside from this, 
it is definitely the responsibility of the respect- 
ive Commander, Armed Forces to determine where the 
main emphasis in supply operations should be put at 
any time. 

The Commanding General, Armed Forces, Balkans issues the following 
directive to General Plenipotentiary, Serbia; Commanding General, 
Southern Greece; Commander, Fortification Crete; with copies to 
Commanding General, South; X Air Corps, and Group South: 

"The development of the situation in Africa, transport concen- 
trations in Gibraltar and British home waters, and our own reverses 
necessitate a check on preparedness for battle in all areas. If 
necessary, forces should be equalized within individual areas. No 
recall from leave. Transport of the 164th Division to Crete remains 
top priority. The "Siena squadron should attempt to make three 
trips every two weeks." 

The Commanding General/ Armed Forces, Balkans intends to call a 
conference of commanding generals and admirals in the beginning 
of January at Headquarters, Commanding General, Armed Forces, Bal- 
kans. All questions concerning preparedness will be discussed. 
Group South and X Air Corps are requested to participate in the con- 
ference. 

At this conference, the Commanding Admiral, Group South will have 
the opportunity to see to it that the above points, regarding the 
endangered situation of supplies and transports to Crete, are given 
full consideration. 

Black Sea : 

Nothing to report. 



VIII. Situation East Asia : 
Nothing to report. 



9862 

-256- 



25 Dec. 1941 



CONFIDENTIAL 



IX. Army Situation 

1. Russian Front ; 

Southern Army Group : 

Fighting continues around Sevastopol, near Belbek and 
Lyubimovka. A strong enemy attack, in part still continuing, was 
launched on the northern flank of the 1st Panzer Army against the 
entire front of the Italian Division Celere. Enemy attacks were 
repulsed on the 17th Army sector. Three armored trains were re- 
ported near Debaltsevo, hut no damage could he inflicted with avail- 
able weapons . 

Central Army Group : 

The enemy, supported by medium- heavy and heavy tanks, 
broke through the 2nd Army sector near Kolodes and Petrovskoye. 
The 156th Rifle Regiment, fighting to the end, was wiped out. There 
are no more German troops ahead of the break-through. In the 2nd 
Panzer Army sector, the XLVII Army Corps has withdrawn to the 
Shushmlna-Lobahovo-Shertova Line, and the LIII Army Corps to the 
western bank of the Oka. There are not sufficient troops to regain 
the ground lost. 

In the 4th Army sector, the enemy west of Kai-uga is advancing north 
over the Oka. Strong enemy attacks along the whole front of the 
XIII, XII, LVII, and XX Army Corps were repulsed. Also in the j5rd 
Panzer Group area heavy enemy attacks had to be repulsed by the VII, 
IX, and XLVI Army Corps. 

Northern Army Group : 

Enemy attacks across Lake Ilmen at the XXXIX and I Army 
Corps sectors were unsuccessful. The 21st, 11th, and 254th Infantry 
Divisions withdrew to new positions according ^to plan. The enemy 
was repulsed in attacks on Maluksa and the Leningrad front. 

2. Finnish and Norwegian Front : 
Local activity only. 

3. North Africa : 

The enemy reconnoitered the Agedabia positions. Starting 
out the evening of 24 Dec, Group Cruewell reached the area south 
of Agedabia the afternoon of 26 Dec. (must be 25 Dec, Tr.N.), hav- 
ing quickly broken enemy resistance north of the town. 

German Naval Command, Italy reported on 24 Dec. the following tele- 
type received from the German General at Headquarters, Italian 
Armed Forces: 

"1. General Rommel has requested that General Caval- 
lero and the Duce be notified of the following: 

"a. In view of the condition of our troops and 
the acute fuel situation, our front is too long. Therefore it is 



9862 



-257" 



25 Dec. 19^1 CONFIDENTIAL 

doubtful whether an attack launched by the enemy for the purpose of 
forcing a decision in the Agedabia area could successfully be re- 
pulsed. If German and Italian troops are annihilated in the unfav- 
orably situated Agedabia position, the Duce's order to hold 
Tripolitania to the last cannot be carried out. The Panzer Group 
is therefore forced to fight a retreating action in the Agedabia 
position, and to withdraw the mass of troops into a considerably 
more favorable area south of Arco dei Filieni (west of SI Agheila). 
If it is possible to reorganize the Italian units soon, and to build 
up their fighting strength, the enemy will ultimately be brought to 
a stop in this position. 

"b. The Bardia and Solium fronts cannot be re- 
lieved in the near future, nor can the troops there be evacuated. 
The length of time they can hold out depends on the supplies at 
hand and on the strength of the fortification, which has its limits, 
after all. General Rommel has therefore ordered Generals Schmidt 
and de Georgis to continue resistance, but he has also empowered 
them to surrender honorably if they consider that further resistance 
is useless after all ammunition and supplies aae exhausted. The 
vain sacrifice of approximately 15,000 German and Italian soldiers *~ 
cannot be justified. \ 

"2. The Duce has thereupon issued the following 
order to the Italian High Command in North Africa and empowered me 
to inform the Panzer Group directly: 

"concerning (a): The plans of the Panzer Group 
are approved. However, the great importance of Marada Oasis for 
the new position is pointed' out. Marada must be held as a cover 
for the southern flank and as an initial position for an offensive 
defense against enemy attempts at encirclement. 

"concerning (b): It will be possible to con- 
tinue resistance on the Bardia and Solium fronts, since provisions 
and arms will be supplied from Italy. The Duce places great value 
on holding this front as long as possible." 



**♦»•**»♦♦#**♦#*#*******♦* 



( 



9862 

-258- 



CONFIDENTIAL 

26 Dec. 1941 

Items of Political Importance 

France ; 

The occupation of the two Newfoundland islands St. Pierre and 
Miquelon, executed on 25 Dec. by De Gaullist naval forces under 
the command of Admiral Muselier, apparently took place without 
previous agreement with Great Britain, Canada, and the U.S.. Ac- 
cording to Reuter, the U.S. State Department considers this ac- 
tion arbitrary and contrary to the wishes of all interested par- 
ties. Official French circles are pleased with that interpreta- 
tion. 

Turkey ; 

According to a confidential report from the Turkish envoy to Prime 
Minister Antonescu, the Turkish President declared a month ago that 
Turkey's entry into the war on the Russian side is completely un- 
popular. In principle, Turkey is on the side of Germany in the 
Eastern Campaign, but the situation in the Black Sea is not yet clear, 
and the situation in the Mediterranean gives Turkey as yet no freedom 
of action. 

U.S.A .; 

Churchill's speech before the U.S. Congress stressed that it was 
lucky for England that Germany did not immediately invade the Brit- 
ish Isles in the summer of 1940 with Japan entering the war at the 
same time. The end of 1942 will find the Anglo-Saxons in a much 
better position than today, and in 19^j5 they will be able to take 
the initiative on a larger scale. For a detailed extract of the 
speech, see Political Review No. 30J>, Paragraph J>. 

China ; 

General Wavell arrived in Chungking on 22 Dec. for a conference with 
Chiang Kai Shek. 



Special Items ; 

The situation report on war industries for the month of November by 
the Armed Forces High Command, War Economy and Armaments Division 
revealed that already, because of raw materials alone, it was quite 
impossible to fill the needs of even the top priority programs to 
the extent planned so far. Considerable cuts will therefore have 
to be effected throughout. Next to the manpower shortage, coal and 
power supply shortages stepped into the foreground with increasing 
prominence. There is also the problem of transportation to be faced 
during the coming winter. Larger-scale inductions into military 
service have a direct effect on the extent of armament production, 
because there are no more reserves available. 



9862 

-259- 



26 Dec. 19^1 CONFIDENTIAL 

It is expected that the situation will he relieved by the release of 
all miners and 20,000 armament technicians from the Eastern Army. 
Of the 450,000 Russian prisoners of war in Germany, 200,000 have 
been put to work in agriculture. 250,000 are still physically dis- 
abled so that the transfer of French prisoners of war into the arma- 
ment industries is delayed. 

The shortage in shipping space was the salient factor in maritime 
shipping. The raw material situation is acute, particularly as re- 
gards the non-ferrous group. Power supplies had to be curtailed 
considerably. The problem of nitrogen is gradually becoming one of 
prime importance to war industry since nitrogen is being used in- 
creasingly in armament production. The mineral oil situation is 
discussed elsewhere. 

The food situation is unfavorably affected by the manpower shortage 
and bad weather. Although it is still bearable in Germany, the sit- 
uation in Poland, Belgium, and Greece is considered especially bad. 



Situation 26 Dec. 19*H 

I. War in Foreign Waters 

1 . Enemy Situation: 

Special Items ; 

Compilation of enemy news received by radio decoding and 
monitoring up to 21 Dec. 1941 in Radio Intelligence Report No. 51/^1 
Kaval Staff, Communications Division, Radio Intelligence Branch. 

North Atlantic : 

Nothing to report. 

South Atlantic : 

American steamer COMMERCIAL TRADER (2,600 BRT) sent the 
following distress signal 330 miles east of Trinidad: One enemy 
naval surface vessel, southerly course, speed 8.5 knots." On 2k 
and 25 Dec, two destroyers and a corvette on a southerly course 
were sighted off the Canaries between Cape Juby and Fuerteventura. 
According to an Italian report, they are waiting for a convoy. A 
further Italian report states that a U.S. half -flotilla consisting 
of two light cruisers and four destroyers was lying in Capetown, 
and that further light U.S. vessels were sighted in the latitude of 
Mossel Eay. 

Indian Ocean : 

On 21 Dec. convoy BM 9 put to sea from Bombay bound for 
Singapore. According to an agent's report from Istanbul, 25,000 
men, mostly Indians, were loaded on ships in Basra. To begin with, 
a total of 100,000 men are to be shipped to Burma, and then 200,000 



9862 
-26O- 



26 Dec. 19^1 CONFIDENTIAL 

to Africa, so that only 200,000 men, mostly British and Australian, 
will then remain in Iraq. 

These figures seem to he rather high. 

2. Own Situation ; 

In St. Nazaire an Italian submarine landed one officer 
from ship "16", and three officers and sixty six men from the 
PYTHON. 



II. Situation West Area 

1. Enemy Situation : 

Air reconnaissance reported two vessels, presumably de- 
stroyers, 65 miles north of Brest. In the evening a convoy consist- 
ing of thirty steamers was sighted southwest of Milford, heading for 
port. At noon two cruisers were located off the Scilly Islands on 
a westerly course." 

2. Own Situation ; 

Atlantic Coast ; 

Enemy air activity over St. Nazaire, Brest, and Nantes on 
25 Dec. is belatedly reported. No bombs were dropped. Repeated 
alarms between 1030 and 2100. The area off Lorient which has been 
closed because mines are suspected there, has been extended. 

The Commanding Admiral, Battleships, substantiating the report from 
the Brest shipyard (see War Diary 25 Dec), indicates that the de- 
parture of the SCHARNH0RST will be delayed four weeks as a result of 
the damage to the dock. Battle readiness will be delayed an equiva- 
lent length of time since technical training cannot be carried on 
as it should while the ship is in dry dock. The GNEISENAU remains 
out of dock and is undergoing overhauling at another pier. (See 
Radiogram I830. ) 

The Naval Attache, Madrid reports that the British Naval Attache 
handed a written protest to the Spanish Naval Staff at noon of 
24 Dec. claiming that three British steamers were sunk within 
Spanish territorial waters during the last three weeks. They are 
the GRALHEAD, FJORD, and HELLEN, sunk off Cape Negro on the night 
of 20 Dec, while en route from Gibraltar to Mel II la. Nothing was 
known about the HELLEN up to now. The Spaniards doubt a violation 
of territorial waters since no reports to that effect are said to 
be at hand (see Radiogram 1J545). 

'This "step evidently served to establish the legal 
precedent for the attack on the BENN0. 

A further report from the Naval Attache, Madrid states that the 
Chief of Staff of the Spanish Navy is investigating possibilities 



9862 

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26 Dec. 1941 CONFIDENTIAL 

of salvaging the BENNO. The Spanish Navy has sent the tanker PLUTO 
to take over the remaining cargo from the BENNO. Several Spanish 
civilians were slightly vounded during the attack on the BENNO. The 
Spanish prt *s reports only a British report about the sinking of a 
German auxi- Lary cruiser in the Bay of Biscay. British radio de- 
clares that the sinking took place outside of territorial vaters. 
The Embassy so far has received no instructions to protest. The 
Attache requests that the fact that the attack occurred on a ship 
anchored right in the middle of a Spanish harbor be energetically 
emphasized. 

German propaganda is so slow in making itself felt 
since no newspapers appeared during the first and 
second Christmas holiday. 

The Naval Attache, Madrid reports further that on 24 Dec. the Brit- 
ish Naval Attache demanded the withdrawal- of German ships from Vigo 
to Southern France, i.e., out of presumably absolutely undisputed 
territorial waters, while at the same time the attack on the BENNO 
was under way. As a condition for continuing shipments of fuel and 
food to Spain, the enemy is evidently demanding the withdrawal of 
German tankers, in other words, the right to exercise control over 
Spanish harbors. It is as yet impossible to predict what the Span- 
ish attitude will be, particularly since the Minister for Foreign 
Affairs and the German Ambassador will be away until the New Year 
(see Radiogram 1705). 

Ten to twelve men of the BENNO crew are remaining in Carino for 
salvage work. The remainder will leave 27 to 28 Dec. via Ferrol 
for France. 

Channel Coast : 

Nothing to report. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

According to radio decoding, on 24 Dec. at 2555 a trawler 
picked up the survivors of the British steamer MERCHANT (4,615 BRT) 
which was damaged by a mine off Yarmouth and was to be towed in on 
25 Dec. Minesweeper HENRIETTE sank on 26 Dec. in the Grimsby 
area. Steamer HULK SUNDERLAND sank off Cromer, time unknown. In 
the Yarmouth area five mine explosions were reported on the inner 
convoy route. 

Own Situation : 

Only a part of the scheduled convoy operations was exe- 
cuted, and minesweeping was interrupted because of bad weather. 



9862 

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♦ 



26 Dec. 1941 CONFIDENTIAL 

2. Norway : 

Enemy Situation : 

A half- submerged submarine was sighted In the mouth of 
Porsanger Fjord. By means of Intercepted submarine radio telephone 
communications on the morning of 26 Dec, Russian submarines were 
located near Nordkyn, British submarines near Soroe. 

One British cruiser and three destroyers entered Vest Fjord during 
the morning and landed three boats near Glaapen. According to air 
reconnaissance which had continuously shadowed this unit since 1214 
and which had been successfully repulsed by anti-aircraft fire in 
attacks on the destroyers, the unit stood east of Mosksnesoe at 
1440. Radio monitoring reports that convoy PQ 6 is under way, and 
that PQ 7 will depart in the next few days. 

Own Situation ; 

The vessels which penetrated into the Vest Fjord destroy- 
ed telephone communications with Glaapen, captured patrol boat 
GEIER, and left with it in a westerly direction. A Norwegian 
freighter was stopped in the middle of Vest Fjord and departed on 
a southwesterly course, presumably under an enemy prize crew. 
Another steamer was sighted burning in the Vest Fjord. 

At 1206 the 8th Destroyer Flotilla and the 8th PT Flotilla received 
operational orders in view of the enemy situation. The 8th Destroyer 
Flotilla was to patrol a strip west of the Lofoten Islands and to 
operate against the enemy unit. Since the flotilla did not get 
under way until 1645, it seemed unlikely that contact with the en- 
emy could still be established, and the flotilla was therefore re- 
called. PT boat "45" sustained damage by scraping bottom and pro- 
ceeded to Harstad. 

Anti-submarine activity off Soroe was interrupted due to bad weather. 
The eastern exit of Groetsund was closed because mines are suspected 
there. Steamer KONG DAG was torpedoed at the entrance to Ulfa Fjord. 
At 1600 a raft with survivors was picked up near Breivik, and at 
1900 one boat with soldiers, evidently frozen to death. 

The rumors of a Christmas raid on the northern coast 
of Norway were therefore not entirely unfounded. As 
far as can be judged at present, today's undertaking 
does not point to a large-scale operation, however. 
We must wait for additional reports. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation ; 

After further interrogation of the captured Russian, Cap- 
tain Evdekimov, the locations of three Russian mine fields and safe- 
ty routes in the Hogland-H'i,i.goe area were revealed. The following 



9862 
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26 Dec. 19^1 CONFIDENTIAL 

ships were ready for action in the middle of November: OKTYABRSKAYA 
REVOLUTSIA, MAKSIM GORKI, KIROV, mine cruiser URAL, flotilla leader 
LENINGRAD, five destroyers, one torpedo "boat, seventeen minesweepers, 
one gun boat, five icebreakers, and an unknown number of submarines 
and FT boats. Nothing definite is known about how they are to be 
used in the spring of 1942. It is assumed that they will be used for 
defense against possible German Fleet attacks in the Seiskari lati- 
tudes, and as Army support. If Kronstadt and Leningrad should fall, 
the vessels will be destroyed. 

Originally, the operational purpose of the Baltic Fleet was purely 
defensive. The mine barrages in the Gulf of Finland are located as 
follows: 1. Hangoe-Odensholm, 2. latitude Hogland, J. latitude 
Seiskari. Information on the strength of the Polar Sea Fleet fol- 
lows: Destroyers KARL LIEBKNECHT, URITSKI, BYKOV, and three GNIEVNY 
class ships, three torpedo boats of the BURIYA class, three subma- 
rines of the LENINETS class, three submarines of the YAKOBINETS class, 
six submarines of the SHCHUKA class, three submarine of the S class, 
and several of the M class. 

More details are contained in a teletype from the German Intelligence 
Service, Reval (Tallinn); see l/Skl 57054 geh. in War Diary Files 
"Barbarossa". 

2. Own Situation : 

Nothing to report. 



V. Merchant Shipping : 

See Brief Report No. 56 of the Report Series by Naval Staff, Naval 
Intelligence Division "Foreign Merchant Shipping" for the following 
information: Russian icebreakers in the White Sea, Baltic Sea, 
Black Sea, Caspian Sea, and East Asia; reports on increases in 
British war insurance rates in the Atlantic and Pacific; continua- 
tion of Portuguese shipping to the U.S.; troop transport situation 
on the Cape town- India run, etc. 



VI. Submarine Warfare 

1. Enemy Situation : 

ILLUSTRIOUS is expected in the Liverpool area within the 
next few days . 

2. Own Situation : 

Following most welcome reports from returning submarines, 
the results of the operation against convoy HG 77 have increased to 
nine steamers sunk and one damaged ? in addition to the destruction 
of the AUDACITY (UNICORN). 



5 



9862 
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* 



26 Dec. 19*U CONFIDENTIAL 

According to a report from the Naval Attache, Madrid, the British 
Naval Attache declared orally when he delivered the protest on 2k 
Dec. that submarine U "kjk" was brought into Gibraltar by the Brit- 
ish. According to information from its crew members, the boat had 
received supplies in Vigo during the night of 14 Dec. Besides 
that, the bill of lading for the delivery of German medicinal pro- 
ducts, with a handwritten remark "Received - 320 Vigo, 15 Dec. 1941", 
was captured. Although an official British protest has not yet been 
made, the Naval Attache urgently requests that Supply Station, Spain 
be temporarily discontinued (Radiogram 1450). 

The Commanding Admiral, Submarines has been given instructions to 
that effect. Further situation report in War Diary, Part B, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

For results of air reconnaissance, see Situation West Area 
and Norway. Ten of our planes operated against ship targets on the 
night of 26 Dec. 

2. Mediterranean Area : 

Balloons carrying British explosive charges were salvaged 
in the upper valleys west of Turin on 25 Dec. Bombing attacks by 
our planes on Gazala and El Adem airports as well as on Malta. Good 
results were observed. Two Hurricanes were shot down by German 
fighter escorts. 

J>. Eastern Front : 

Since break of day, heavy enemy air raids on our positions 
at Sevastopol and near Kerch. During the afternoon, we fought very 
fiercely against enemy landings. Reports up to now Indicate that in 
these attacks two medium transports were sunk and three others dam- 
aged. 



VIII . Warfare in the Mediterranean 

1. Enemy Situation : 

The Chief of the Mediterranean Fleet was assumed to be at 
sea according to radio monitoring. In the afternoon, a British 
radio message was intercepted, giving indication of contact with 
the enemy (possibly the sinking of a British vessel by a submarine 
off Tobruk). According to reports from agents, the Admiralty was 
forced to order many traffic diversions because of considerable 
damage by air attacks on the Suez Canal. According to photographic 
reconnaissance, four cruisers, ten destroyers, ' eight submarines, 
one auxiliary cruiser, and six freighters were lying at anchor at 
Mai ta . 



9862 

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26 Dec. 19^1 CONFIDENTIAL 

2. Situation Italy ; 

Two cruisers of 4,500 tons and 28 knots speed, which were 
being built at Monfalcone for Thailand, have been requisitioned by 
the Italian Navy for the duration of the war. 

3. Transport of Supplies to North Africa : 

Nothing to report concerning supply activity by subma- 
rines and destroyers. One naval barge ran aground while leaving 
Taranto; its cargo was salvaged. According to a report from the 
Supply and Transport Office, Bardia, naval barge "146" ran aground 
at Solium and was destroyed by enemy artillery (compare War Diary 
25 Dec. concerning naval barge "150 ). 

4. Area Naval Group South : 
Aegean Sea : 

Nothing to report. 

Black Sea : 

During the morning, Russian troops landed on the eastern 
and northern coast of the Kerch Peninsula and established five 
bridgeheads up to one battalion in strength. We are counterattack- 
ing. The men under the Port Captain of Feodosiya are being used 
to defend that town. Naval radio station Kerch has been dismantled. 

The Naval Staff sent another communication to Group South and the 
Commander in Chief, Air via chain of command, stressing the impor- 
tance of laying aerial mines at Sevastopol in view of the fact that 
that city must be taken soon in order to relieve the Eastern Front. 
In reply, Group South reports that the 4th Air Force has already 
executed this mining operation. BM 1,000 mines were used, since 
aerial minelaying units were not available at that time. According 
to the Naval Commission, Rumania, BM 1,000 mines can be swept with 
available equipment (see Radiogram 1250). 

For days already, all commands in question were aware 
of the enemy's intention of landing in the Crimea, 
especially near Kerch. Unfortunately, no effective 
defense measures on the part of the Navy were possi- 
ble because of the known weakness of our forces. 



IX. Situation East Asia 

1. Enemy Situation : 

According to radio monitoring, ROYAL SOVEREIGN made its 
appearance in the Indian Ocean. The U.S. War Department reported 
strong enemy landings during the night of 23 Dec. near Antlmonan, 
100 kilometers south of Manila, as well as the probable sinking of 
a Japanese submarine by an Army bomber off the California coast. 



9862 

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« 



♦ 



26 Dec. 1941 CONFIDENTIAL 

A British report from Chungking states that Dutch East Indian planes 
scored hits on a Japanese cruiser and probably an aircraft carrier 
off Borneo. British reports further claim the sinking of two Japa- 
nese transports and a tanker by naval and air forces off the coast 
of Sarawak. According to the Vichy Telegraphic Service, a Dutch 
East Indian submarine sank a Japanese destroyer of the HUBUKI class. 
A Netherland East Indian submarine sank after striking a mine. 

2. Situation Japan ; 

Headquarters report a Japanese troop landing on 22 Dec. 
on Wake Island despite a heavy storm and high seas at the loss of 
two Japanese destroyers. According to reports from the Naval At- 
tache, Bangkok dated 23 and 24 Dec, the Japanese shot down twenty 
four enemy planes and destroyed ten on the ground in an air attack 
on Rangoon. After further reinforcements have been brought up to 
Trengganu, they are to advance south along the coast as a 4th 
column. The central column is fighting 24 kilometers north of Ipoh. 
Advance has been delayed because of landing difficulties, shortage 
of transportation, and destroyed routes. 



X. Army Situation 

1. Russian Front : 

Southern Army Group ; 

See Aerial Situation, and Situation Black Sea concerning 
enemy air activity and landings in the Crimea. 

Enemy attacks were repulsed on the sectors of the 1st Panzer Army, 
the 17th Army, and the 16th Army. 

Central Army Group ; 

The XLVIII Army Corps retreated to rear positions. The 
enemy attacked our line near the 3S Brigade sector. The XLVII 
Army Corps retreated onto the west bank of the Oka, on a general 
line Novosil-Mtsensk. Heavy enemy attacks on the entire Moscow 
front were repulsed, and enemy penetrations brought under control. 
Large snowdrifts. Special snow clearing crews were put into opera- 
tion along the main routes. 

Northern Army Group ; 

All enemy attacks were repulsed. 

2. Finnish and Norwegian Front ; 

Light local enemy attacks were unsuccessful. 

3. North Africa ; 

The enemy advanced on Agedabia only with reconnaissance 
units. Reinforcement of the Bardia-Halfaya front as well as move- 



9862 

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2e lee. I?-! C0NFID2HTIAL 

nents possibly for the purpose of relieving the Agedabia forces were 
observed by air reconnaissance. 



*♦*♦*♦♦********♦*#*****♦* 



-268- 



CONFIDENTIAL 

27 Dec. 1941 

Items of Political Importance . 

Indo- China ; 

The Govenor's acceptance of the Japanese ultima turn concerning joint 
defense of the country has clarified the situation. News of Japa- 
nese successes is received with a sense of relief. Anti-British 
feeling is growing in French circles. On the other hand, the anti- 
Japanese attitude remains unchanged. A diplomatic source reports 
that ultimate Japanese victory is regarded very sceptically. 

U.S.A .: 

Manila was declared an open city. 

Japan ; 

Hong Kong fell on 25 Dec. The joy at this success is enormous 
"both as regards its real significance as well as the moral factor 
involved. The Japanese commenced a big offensive against Chinese 
troops in the Kiangsi and Hunan provinces on 24 Dec. 



Conference on the Situation with the Chief, Naval Staff . 

I. The second departure of ship "10 " was postponed until the next 
new moon in January. 

II. The Chief, Operations Division, Naval Staff reports on the in- 
efficient manner in which Group North is handling preparations for 
the departure of the TIRPITZ . The orders from the Naval Staff, 
which aimed at camouflage,' intended preparations to be made by the 
Group itself, and not by the ship command. The Chief, Naval Staff 
approves of intervention by the Naval Staff as suggested by the 
Chief, Operations Division, Naval Staff. 

III. The Chief, Naval Staff orders that Admiral Riccardi be asked 
whether it would be feasible to arrange a meeting between him and 
the Commander in Chief, Navy on 14 and 15 Jan. 

IV. The Chief of Operations Branch of the Naval Staff, reports on 
the directive from the Armed Forces High Command, Operations Staff, 
National Defense concerning the threat to northern Norway (see War 
Diary 25 Dec). 

After a thorough discussion of the defense and safety measures 
ordered and maintained by the Navy, the conclusion was reached that 
it is neither necessary nor possible to increase or accelerate them. 

V. - Concerning the transfer of the TIRPITZ to Trondheim, which the 
Naval Staff is planning for the middle of January, the Naval Staff 
has issued instructions to the naval commands to begin all necessary 



9862 

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27 Dec. 19^1 CONFIDENTIAL 

preparations without delay. The Navy will provide four destroyers 
and three torpedo boats to guard the battleship on this voyage. 
All possible naval measures have been taken as regards torpedo nets, 
camouflage, and anti-aircraft protection so as to safeguard the 
ship while lying in Trondheim. Similar preparations are being made 
and are partially completed at Narvik where the vessel is to go in 
case of necessity. The TIRPITZ will operate out of Trondheim under 
Group North according to the instructions issued by the Chief, Naval 
Staff. 

The Naval Staff asks the Commander in Chief, Air, Operations Staff 
to issue instructions to the 3rd and 5th Air Force to comply with 
the requests hereafter made of them by Group North concerning all 
measures necessary for reconnaissance, escort, and fighter plane 
cover. They should also make bombers available If necessary. 



Situation 27 Dec. 19^1 

I. War in Foreign Waters 

1. Enemy Situation : 

North Atlantic : 

DIDO arrived at Gibraltar from Bermuda. According to in- 
formation from captains of merchant vessels, merchant ships are to 
receive two additional guns and anti-aircraft guns in Bermuda. The 
majority of the ships leaving the La Plata River are to be assembled 
into convoys off the Bermudas. Freetown is regarded as an area en- 
dangered by submarines. The approaches to the harbor of Portsmouth, 
New Hampshire have been mined. 

South Atlantic : 

A 10.5 cm. howitzer battery is being installed on Fernando 
Noronha. On 26 Dec. the ASTURIAS was on patrol east of Bahia. 

Pacific Ocean : 

The entrances to San Francisco Bay have been mined. 

2. Own Situation : 
Nothing to report. 



II. Situation West Area 
1. Enemy Situation : 
Nothing to report. 



9862 

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27 Dec. 19^1 CONFIDENTIAL 

2. Own Situation: 



ships . 



Atlantic Coast ; 

Enemy air raids on Brest from 1922 to 2048. No damage to 



According to a report from the Naval Attache, Madrid it is possible 
to salvage the BENNO if the good weather continues. The Spaniards 
will pretend to confiscate the ship as having been abandoned and put 
it under naval flag. It will be repaired at Ferrol. It will be re- 
turned to Germany after it has been repaired (see Radiogram 2400 ). 

Channel Coast ; 

Nothing to report. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

According to radio monitoring, British steamer CORMEAD 
(2,848 BRT) hit a miue off Cromer during the night of 25 Dec. The 
following ships were located in home waters: KING GEORGE V, DUKE 
OF YORK, HOWE, RESOLUTION, RODNEY, VICTORIOUS, ILLUSTRIOUS, and 
FORMIDABLE. No information is available on the commissioning of 
the ANSON for active duty. RENOWN and NELSON are being repaired in 
the Iceland area. 

Own Situation ; 

One enemy plane was shot down by Navy anti-aircraft near 
Texel. Otherwise nothing to report. 

2. Norway ; 

Supplementing his report of 26 Dec, the Commanding Ad- 
miral, Norway reports that the enemy unit stayed in Vest Fjord from 
1100 to 1630. After a short exchange of gunfire, the patrol boat 
GEIER. was boarded and taken in tow by a destroyer. So far it is 
not known what became of our own Coast Guard personnel after the 
enemy landed near Glaapen. . Telephone communication with the south- 
ern Lofoten Islands has been disrupted. A small unidentified mer- 
chant steamer was set on fire. Norwegian steamer KONG HARALD and 
steamer NORDLAND are missing. 

It is not known whether a torpedo or a mine is responsible for the 
sinking of steamer KONG RING off Groetsund. 

On 27 Dec. enemy operations were directed against the Vest Fjord 
and the Nord Fjord. Reports about this began coming in at Naval 
Staff at 1300, indicating that a southern group consisting of one 



9862 

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27 1-C 1941 CONFIDENTIAL 

heavy cruiser, tvo light cruisers, and five to seven destroyers 
was operating against the Nord Fjord, while a northern group con- 
sisting of two light cruisers, four to seven destroyers, and pos- 
sibly five transports was operating against the Vest Fjord. More 
particularly, the reports from the Commanding Admiral, Norway pre- 
sent the following picture: 

In the Nord Fjord enemy landings took place between 1000 and 
1100 on Suedue, the western coast of Vaagsoe Island, and on 
Husevaagsoe. After a barrage had been laid by destroyers which 
stayed out of range of the coastal batteries, armored PT boats pen- 
etrated into Maaloe Harbor and landed troops in spite of defensive 
fire. Infantry fighting with heavy casualties on both sides ensued 
in Maaloe. Strong enemy aerial activity. The enemy left Maaloe at 
1552. Coastal batteries apparently had no chance to intervene. 
Kulen battery was put out of action by a bomb hit. At 1540 Halsoe 
battery reported that two light cruisers and five destroyers on a 
northerly course were shelling targets on the shore. No communica- 
tion with Nord Fjord battery. Enemy minelaying operations off Nord 
Fjord are not out of the question. Since the enemy left Maaloe, 
the Army does not believe that any enemy troops remain on Vaagsoe 
and Husevaagsoe. It is planned to search these islands thoroughly 
on 28 Dec. 

Harbor installations at Maaloe have been destroyed by fire. The fol- 
lowing ships were sunk in the harbor by destroyers which penetrated 
into it: Patrol boat F0EHN, steamer EISMEER (1,000 BRT), steamer 
NORMA {2,300 BRT), steamer REIMAR FRITZEN (2,900 BRT). The fate of 
three other steamers is unknown. Patrol boat D0NNER is drifting to 
sea on fire. Salvage attempts are in process. The retreating ene- 
my group was last sighted at 1900 from Stadtland. See Radiogram 
2^40 for the report by Admiral, West Norwegian Coast concerning 
events on Maaloe. 

In the Vest Fjord the British troops began landings at 1200 on Vest 
Vaagoe at Valberg and Balstad, on Flakstadoe at Flakstad, and on 
Moskenesoe near Moskenes. According to Army report, the enemy left 
Vest Vaagoe during the evening after communications had been destroy- 
ed. No other reports are available but the Commanding Admiral, Nor- 
way is of the opinion that occupation of other islands is unlikely. 

German countermeasures instituted by the Commanding Admiral, Norway 
involved four submarines lying in the Nord Fjord area under the Com- 
manding Admiral, Submarines and the transfer of the 8th PT Flotilla 
from Tromsoe to Narvik, from where operations are intended by the 
Admiral, Arctic Ocean, depending on the situation on 28 Dec. On 
the other hand, the Commanding Admiral, Norway had intended not to 
transfer the 8th Destroyer Flotilla to Narvik because of the uncer- 
tain enemy situation, the inadequate training of the flotilla, and 
navigational difficulties. Before these intentions were known to 
the Admiral, Arctic Ocean, however, he had sent both these flotillas 
on operations; the 8th PT Flotilla to advance on Vest Vaagoe, 
Flakstadoe, Moskenesoe and return to Narvik, and the 8th Destroyer 
Flotilla to reconnoiter the landing places (see Radiogram 2400). 

An assault troop company, an anti-aircraft unit from Bergen, as 
well as 100 men from Army coastal artillery were dispatched as 



9862 

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27 Dec. 19*U 



CONFIDENTIAL 



# 



reinforcements for the coastal patrol units in Floeroe and Maaloe. 

The Commander, Naval Air, North Sea and the Fighter Command, Norway 
put to use all available forces to fight the enemy. Reports state 
that one destroyer was sunk off Vaagsoe and that one cruiser and one 
destroyer were damaged. Our aircraft lookouts on Maaloe were seizeo 
by enemy parachute troops. At 1515 a German Bomber Group started 
out from Breda, Holland for Stavanger without regard for existing 
regulations. According to a report from the 5th Air Force, eleven 
enemy bombers had been shot down by 1600. Enemy planes attacked the 
Herdla airport where the runway was damaged, and a convoy off Eger- 
sund, damaging the steamer MAGDALENE VINNEN. 

The Commanding Admiral, Norway as well as Group North analyze the 
situation as follows: The foregoing events do not point to a large- 
scale operation. They are, rather, a series of larger raids di- 
rected against the focal points of our trade routes off Narvik and 
near Bergen. It is their aim to destroy our outposts and batteries, 
hamper and temporarily disrupt our trade. These raids are staged 
for propaganda and prestige reasons, as well as for the purpose of 
reconnoitering the terrain, the state of the defenses, and of alert- 
ness, with view to a subsequent establishment of bridgeheads from 
which to disrupt and cut the supply routes. 

The Naval Staff agrees with this analysis. 



♦ 



IV. 



Skagerrak, Baltic Sea Entrances, Baltic Sea ; 



During the evening, enemy air activity in the Kiel Bay area. The" 
navigational channels in the Belts are temporarily closed because 
mines are suspected. ' 

According to a directive from the Armed Forces High Command, after 
the 225th Infantry Division has been shipped, it is planned to 
transfer the SS Legion, Netherlands to Riga by sea. Group North 
is being informed. 



V. Submarine Warfare 

1. Enemy Situation : 

Cruisers TRINIDAD and CLEOPATRA were in the Scapa Flow 
area on 22 Dec, and convoy CS 60 was southwest of Iceland on 26 
Dec. Twenty seven survivors from the former Norwegian steamer 
NIDARDDADAL (2,368 BRT) from the eastbound convoy SD were landed 
in Iceland on 18 Dec. Dutch submarine "10" and an unidentified 
vessel were 6 miles north of Trevose Head on 26 Dec, probably 
bound for Milford. 

2 . Own Situation : 

In the eastern Mediterranean, German submarines located 



-273- 



9862 



27 Dec. 19^1 CONFIDENTIAL 

an enemy convoy of five vessels. One submarine reports a miss on a 
destroyer. See War Diary, Part B, Vol. IV for further situation re- 
port; for the assignment of attack areas to seven of the boats op- 
erating near the Azores; and for permission of the Naval Staff to 
extend the. operations area between 32° N and 42° N as far as 35° W 
for the duration of this operation. For teletype to that effect as 
per l/Skl I op 2206/41 Gkdos. Chefs, see War Diary, Part C, Vol. IV. 
This also contains a review of submarine operations on 27 Dec. ac- 
cording to which ninety eight operational submarines are distributed 
as follows: 

1. In the operations area, or en route there : 

a. For assignment "American Coast" 3 

b. For assignment "Arctic Ocean" 3 

c. For assignment "West Coast of Norway" 5 
(includes three en route) 

d. For assignment "Mediterranean" including 
submarines west of Gibraltar " 20 

e. For special assignment in Atlantic 1 
(radio deception) 

2. On return voyage : 

a. From the South Atlantic 2 

b. In the Mediterranean 3 

c. From operations area west of 

Gibraltar 1 

Total £8 

The remaining sixty operational submarines are not ready for action: 

a. In harbors of western France 38 

b. In Kiel 13 

c. In Trondheim 1 

d. In Mediterranean harbors 8 

Total 60 

A copy of this list is in War Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

For reconnaissance results and operations in the Norway 
area, see Situation Norway. 

During the night of 27 Dec. nineteen planes were sent to lay mines 
in the Thames, and seven to attack shipping targets* So far, one 
steamer (5,000 BRT) was reported sunk. 

For enemy activity during the day over Norway, see Situation Norway, 
over Brest, see Situation West Area. In the western part of the 



9862 

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27 Dec. 19*U CONFIDENTIAL 

Reich, enemy aerial activity vith seventy to eighty planes; in the 
Kiel-Husum sector ten planes. Up to now, ten planes have been re- 
ported shot down, seven of them by night fighters. 

2. Mediterranean Area : 

Aerial mines were laid in Tobruk harbor, and Gazala air- 
port was attacked. Eleven- Ju 88' s took part in each operation. 
For results of air reconnaissance see Enemy Situation, Mediterranean, 

J>. Eastern Front ; 

The Air Force reports that it sank a total of four trans- 
ports, eleven assault craft, and several fishing vessels and damaged 
three transports while repulsing enemy landings near Kerch. 



VII. Warfare in the Mediterranean 

1. Enemy Situation : 

According to Italian reports and German air reconnaissance, 
a force consisting of one battleship, three cruisers, and several 
destroyers was at sea northeast of Tobruk during the morning. An 
Italian report states that one heavy cruiser and two patrol vessels 
arrived at Malta from Gibraltar. On 26 Dec. one cruiser and four 
destroyers went through the Suez Canal to Port Said en route from 
Aden to Alexandria. Seven damaged vessels are said to be lying in 
Alexandria. 

According to a further Italian report, cruiser NEPTUNE and one de- 
stroyer sank off Tripoli at 0315 on 19 Dec. after striking mines . 
(Compare War Diary 25 Dec.) 

2. Situation Italy : 

The Admiral, German Naval Command, Italy questions the ad- 
visibility of decorating leading personalities of the Italian Navy 
with the Iron Cross for other reasons than purely military success. 
He is therefore against the ceremony which is to take place at 
Garmisch. In view of the as yet unpredictable developments in North 
Africa he believes that any steps should be avoided which might be 
interpreted as basically approving Italian operations and achieve- 
ments generally (see Radiogram 2130). 

The Armed Forces High Command transmits the following teletype sent 
by the Commanding General, South to the Armed Forces High Command: 
"Of the two difficult transport problems, the question of oil for 
the Italian Fleet is the more important one, since at this time the 
successful shipment of supplies depends on whether or not it is pos- 
sible to have adequate escort protection. Because of the oil short- 
age it is impossible to send out the two convoys needed per month. 
As long as Malta carries on, we must make available the necessary 
oil if we hope to survive. The battle for Malta depends on bring- 
ing up additional forces. In my opinion, this matter should be dis- 



_275- 9862 



27 Dec. 19^1 CONFIDENTIAL 

cussed with one of your representatives. For a limited time, it 
seems to me, the Mediterranean will be the most important theater." 
He requests the Naval Staff's opinion: 1. Concerning the state of 
fuel oil deliveries and developments in January; 2. concerning 
the possibilities of procuring and delivering the additional fuel 
oil necessary for operating the two convoys per month. He also 
makes some suggestions which might possibly relieve the situation 
(see Radiogram 2100). 

3. Transport of Supplies to North Africa : 

British artillery shelled Bardia harbor on 26 Dec. start- 
ing at 2220. Two auxiliary sailing vessels left Piraeus on 26 Dec. 
bound for Bardia. Three transport submarines are en route to Bar- 
dia. Two destroyers which were supposed to leave for Tripoli on 
27 Dec. have postponed their departure twenty four hours because of 
the weather. 

4. Area Naval Group South : 
Nothing to report. 



VIII. Situation East Asia 

1. Enemy Situation : 

According to radio monitoring, it appears that a 3rd Bat- 
tleship Division will be formed in the East Indies consisting of 
flagship RAMILLIES, REVENGE, and ROYAL SOVEREIGN. 

News Series "Foreign Navies", News Analysis No. 48 contains a re- 
port by the Naval Staff, Naval Intelligence Division on the U.S. 
coastal defenses in the Philippines. 

2. Situation Japan : 
Nothing to report. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

Additional enemy landings on Kerch Peninsula. Air recon- 
naissance established that more forces are being brought up to the 
peninsula. Enemy attacks were repulsed on the sectors of the 1st 
Panzer Army, and the 17th and 6th Army. 

Central Army Group : 

At the 2nd Army sector, the enemy began very heavy at- 
tacks on both wings, and broke through the position of the SS Bri- 



9862 

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27 Dec. 1941 CONFIDENTIAL 

gade at the bend of the Trudy River. Break-through towards Orel 
and Malo Arkhangelsk Is to be expected. Evasive maneuvers of the 
XXXV Array Corps into its winter positions were executed according 
to plan. Heavy enemy attacks on the 2nd Panzer Army. In the 4th 
Army sector, Andreyevskoye had to be vacated because of ammunition 
shortage. Attacks against parts of the 4th and 9th Army were re- 
pulsed. The supply situation has become critical because of snow 
s torms . 

Northern Army Group ; 

Besides heavy artillery activity, only light enemy at- 
tack movements. 

2. Finnish and Norwegian Front ; 

Enemy attacks were repulsed in Karelia on the Svir sec- 
tor and at the XXXVI Army Corps and Mountain Corps, Norway. 

3. North Africa ; 

An enemy attack of battalion strength against the Agedabia 
front was repulsed. The 15th Panzer Division threw back strong 
units of the 22nd Armored Brigade 40 kilometers southeast of 
Agedabia. Supolies for the Bard ia- Hal faya front are now assured 
until 10 Jan. 1942. 



*****#******************* 



9862 

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COBFIDEHTIAL 

28 Dee. 19*1 

Items of Political Importance 

Great Britain and U.S.A . : 

In certain remarks made by Churchill In his address before the U.S. 
Congress, the Dally Hall detects Indications that he believes a 
Union of the United States and the British Empire should be oreated 
after the war. According to the United Press, Churchill Is ex- 
pected to go to Canada, vhere he vlll address the Upper and the 
Lover Houses of the Canadian Parliament. Parliamentary circles In 
London expect that Roosevelt vlll visit Great Britain at a later 
date. Roosevelt has Informed Lltvlnov about the points discussed 
during the conferences In Washington. According to the Associated 
Press, a conference of the ambassadors and ministers of the Latin 
American countries has begun at the White House In the presence of 
Roosevelt and Churchill. 

According to the Vichy Telegraphic Service, Secretary of State Hull 
has Initiated joint action by the U.S., Canada, and Britain to 
force the De Gaulllsts to relinquish the Islands of St. Pierre and 
Nlquelon. According to French reports the U.S. military mission 
In Cairo has taken over oontrol of the Egyptian docks and shipyards 
la Alexandria and Sues. Control of the harbors and their Installa- 
tions Is also to be taken over by the American authorities. This 
report needs to be Investigated. 

Italy ; 

According to Europapress, talks concerning the removal of Italian 
civilians from Abyssinia have been concluded. Four Italian steam- 
ers are scheduled to take avay all Italians not subject to military 
service. 

China ; 

The Chinese Hatlonal Government at Banking Is preparing to annex 
Hong Kong. 



Situation 28 Dec. 19*1 

I. War In Foreign Waters 

1. Enemy Situation ; 

forth Atlantic ; 

Radio decoding located HIOERIA In Scapa Flov on 27 Dec, 
CHAR'XBDIS near Glasgov on 25 Dec, and CUMBERLAND and BERWICK near 
Iceland on 26 and 27 Dec 

The U.S. Havy announces that the British method of examining mer- 
chantmen vi"!" 1 henceforth also be used by U.S. *jrmy and lavy planes. 



9862 

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28 Dec. 1941 CONFIDENTIAL 

2. Own Situation : 

' The entire crew of ship "16" has arrived at ports In west- 
ern France. Part of the crew of the PITHON is still en route a- 
board an Italian submarine. 

On the basis of the experiences of ship "16", ship n 10 n again re- 
quests that the question of submarine escort be reviewed (see Radio- 
gram 17*0). 

Minesweeper SPREEWALD receives orders by Radiogram 1017 not to touch 
point "Specht" and to make her crow's nest as small as possible. 



II. Situation West Area 

1. Atlantic Coast ; 

At 1240 a Bristol Blenheim made a low level attack on 
Brest. At 1320 one enemy plane attacked two patrol vessels off 
Brest. Slight casualties and damage. The attacker was presumably 
shot down. 



2. Channel Coast: 

s tend, 



During the morning and afternoon enemy air activity near 
Dunkirk, and Boulogne. 



III. Horth Sea. Norway, Arctic Ocean 

1. Horth Sea : 

Enemy Situation : 

At 1600 a German reconnaissance plane reported two cruisers 
and five destroyers under pursuit plane cover off the Maas estuary. 
At the same time another plane reported seven destroyers 40 miles 
vest of Hook of Holland. Planes of the Fighter Command, Holland sub- 
sequently dispatched by the 3rd Air Force report that they did not 
sight any enemy forces. Radio monitoring Intercepted British re- 
ports concerning German merchantmen both west of Den Holder and from 
7 to 10 miles off Dunge Ness. 

Own Situation : 

From 1913 to 2244 enemy air raids, concentrating on Vil- 
helmshaven and Emden. In Emden several large fires resulted. The 
only radar gear repeatedly ceased functioning. Damage and casualties 
cannot yet be determined. In Vilhelmshaven several large fires were 
started in the city and the shipyard. Damage to shipyard presumably 
slight. Four enemy planes were shot down. 



9842 
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28 Dec. 19*1 CONFIDENTIAL 

Nothing to report on the convoy escort service. 

2. Norway : 

Enemy Situation : 

The islands of Vaagsoe in the Nord Fjord and Vest Vaagoe 
in the Vest Fjord which were occupied on 27 Dec. were evacuated in 
the late afternoon of the same day. According to air reoonnaissanoe 
three cruisers, seven destroyers, three submarines, and two merchant- 
Ben were anchored off Moskenes (Vest Fjord) between 1300 and 1500. 
Four destroyers vhioh launched boats were located west of the entrance 
to the Ofoten Fjord. 

In the southeastern part of the Kvaenangen Fjord a submerging subma- 
rine was reported. According to radio monitoring three British ves- 
sels were located in the Murmansk area. Another land -based broad- 
casting station besides the ones at Archangel and Murmansk was loca- 
ted. 

Own Situation ; 

A belat ed r eport from Maaloe of 27 Deo. states that the 
patrol vessels DONNER and F OEHN sank while fighting until all ammu- 
nition was used up. The DONNER had opened fire. The number of 
casualties is still unknown. From the land fighting at Maaloe four- 
teen dead and twenty five missing, among them seven dead and nine 
missing from the Navy. One gun of the Nord Fjord battery was put 
out of commission by gunfire from a cruiser. One dead and seven 
wounded. Apparently no survivors at the Kulen Army coastal battery. 
Four more enemy planes were presumably shot down by the Nord Fjord 
battery and by the patrol vessel FOEHN. Naval Signal Station Maaloe 
is completely destroyed. No survivors. The whereabouts of secret 
documents is unknown. Further steamers lost: Probably ANITA L.N. 
RUSS (1,712 BRT), certainly ANHALT (5,870 BRT). Tug boat RECHTENFLETH 
was sunk. 

The combat mission by air forces to be undertaken on 28 Dec. in view 
of the enemy situation was not possible due to weather conditions. 
Two destroyers of the 8th Destroyer Flotilla arrived at 1900 and 
three vessels of the 8th PT Boat Flotilla arrived at 1600 in Narvik 
in order to refuel, and departed again during the evening. At 15*5 
the Admiral, Arctic Ocean received a direotive from the Commanding 
Admiral, Norway to put PT boats and destroyers into action against 
the enemy vessels which had been sighted off Moskenes. At 1602 
Group North recommended use of strong plane and PT boat units in 
order to prevent the British from gaining a foothold, if the reports 
from the 5th Air Force are true. Group North also recommended that 
submarine U "582" be sent from Trondheim to the Vest Fjord after 
completion of repairs. The other three submarines operating in the 
Vest Fjord, U "87", U "135" and U "156", were released for their 
original assignments by the Commanding Admiral, Submarines. The 
recommendation from the Commanding Admiral, Norway to let submarine 
U "585", whloh will be ready at Trondheim on 29 Dec, operate in the 
Vest Fjord together with other available submarines could not be 
endorsed by Group North. The Commanding Admiral, Submarines does 
not believe the XT "585" will be ready for action before completion 



-260- m2 



28 Dec. 19^1 CONFIDENTIAL 

of repairs, and other submarines besides the ones detailed for op- 
erations in northern Norway are unfortunately not available (see 
Radiograms 2225 and 2355)* 

Upon an inquiry from the Naval Staff as to why the Commanding Ad- 
miral, Norway gave lack of sufficient training as one of the reasons 
for not using the 8th Destroyer Flotilla on 27 Dec, the Commanding 
Admiral, Norway reports that the Admiral, Arctic Ocean explained the 
return route taken by the flotilla (going around Kola Bay), which had 
been criticized by the Commanding Admiral, Norway on 19 Dec, by the 
fact that the personnel has not yet completed its training. The Com- 
manding Admiral, Norway subsequently gave his consent to the opera- 
tion of the flotilla on 27 Dec (see Radiogram 1805). 

Concerning the operations of the two flotillas on 28 Dec the Ad- 
miral, Arctic Ocean reports via the Commanding Admiral, Norway at 
2300 as follows: 

1. The foray of the 8th Destroyer Flotilla from the Vest Fjord 
up to Relne has been executed. No enemy forces were sighted. Pene- 
tration into Eirke Fjord or a bombardment raid from the outside a- 
gainst the enemy vessels anchored there was not possible because of 
poor visibility and navigational difficulties. 

2. Instead of operating against Relne, the 8th PT Boat Flotilla 
was ordered to attack the four enemy destroyers reported off Of o ten 
Fjord. 

3. The 8th Destroyer Flotilla was not put into action against 
these same enemy forces since it would be dangerous for these two 
forces to operate simultaneously in this narrow area. The destroy- 
ers are refuelling at "Pelagos" in Narvik at the moment. 

4. Further plans: 

a. On 29 Dec rest for the 8th PT Boat Flotilla after 
cruising three nights in succession. 

b. Destroyers are to lay mines of f Kirke Fjord unless 
the enemy situation forces us to change our plans. Nines are en 
route from Tromsoe to Narvik aboard the COBRA (see Radiogram 2335)* 



IV. Skagerrak, Baltic Sea Entr a nces, Baltic Sea 

1. Enemy Situation : 

According to a report from the Foreign Office, ten of the 
thirteen Norwegian ships temporarily Interned at Goeteborg have now 
been declared indefinitely interned. The other three ships have 
been released since, besides other reasons, the captains have been 
won for the German cause (?). Necessary steps concerning the intern- 
ment of the newly built ships have been instituted by the Foreign 
Office. 



-281- 9862 



28 Dec. 19*1 CONFIDENTIAL 

See War Diary Files "Barbarossa" (l/Skl 57221 geh.) for further 
statements from prisoners of var concerning the preparedness of 
the Baltic Sea Fleet (four more destroyers and two torpedo boats); 
the commissioning (in spring 19^2) of four remote-controlled PT 
boats, tvo of which supposedly were blown up near Oesel and tvo 
are ready for action; the demolition of remote-controlled planes; 
and the reinforcement of the Leningrad front by 30,000 men from 
naval vessels, Hangoe, and troops from various islands. 

2. Ovn Situation : 

Mines vere again laid in the Eronstadt Bay channel. The 
Naval Liaison Staff, Finland reports that ice conditions have grown 
considerably vorse, and that it is impossible to escort the convoy 
from Oroe to Helsinki by minesweepers with minesveeping gear. 
There is danger that the icebreaker vill freeze in and be paralyzed 
in Reval. Since troop transports are not permitted to travel in 
the Gulf of Finland unescorted, Group North proposes the following: 

"a. All troop transports bound for Finland vill be di- 
verted to Aboe. Important troop transports can be sent to Helsinki 
by smaller steamers along the inter-island route if Finland can 
keep that route open. 

"b. All troop transports for the Northern Army Group 
vill be diverted to Riga and Libau, the icebreaker intended for 
Reval vill therefore be sent to either Libau or Riga. 

"c. Should the weather improve, an attempt might be made 
to let the troops be transported by small steamers by the inter- 
island route to Helsinki and from there to Reval under escort with- 
out minesveeping gear. This vill presuppose that there is not much 
ice in Reval liarbor." (See Radiogram 1557.) 



V. Submarine Warfare 

1. Enemy Situation ! 

At 1400 a British vessel reported a large vessel in the 
Iceland area, probably southwest. At 0900 another vessel vas lo- 
cated at 59° I, 37° 10' V. Convoy HX 165 either vas approaching 
or vas in the Minches. At 2200 a British plane received orders 
from Gibraltar to break off the previously ordered patrol and to 
reconnoiter an area 150 miles southwest of Brest, to report enemy 
movements, and to maintain contact with the battle cruiser. De- 
tails could not be determined. Perhaps it vas a training message 
or one meant to mislead us. 

2. Ovn Situation ; 

Report in War Diary, Part B, Vol. IV. 

The Commanding Admiral, Submarines informs Group North that he con- 
siders spontaneous submarine operations in defense against enemy 



9362 

-282- 



« 



28 Dec. 19*1 CONFIDENTIAL 

raids in Norway impractical for the following reasons: 

a. The submarines will only in rare cases be able to 
reach the areas concerned in time. 

b. Their chances for attack in the area are very slight 
because of the rapidly moving targets. 

c. Such operations would increase fuel consumption, and 
this would limit the operations planned for these submarines in the 
American area in the Atlantic. 

d. These operations would delay the arrival of the sub- 
marines in the Atlantic where there have been no submarines whatso- 
ever for weeks. It is of greatest importance that this state of 
affairs be remedied as soon as possible. Up to the present time 
this complete absence of submarines has prevented us from exploit- 
ing, the opportunities in the untouched American area. Naturally, 
it has also relieved the British defense forces in the Atlantic to 
a great extent, and has led to their concentration in an area in 
which the greater part of the German submarines are located at 
present or through which they must pass. As a result we have had 
considerable submarine losses. 

e. Therefore the Commanding Admiral, Submarines con- 
siders that such operations off the coast of Norway constitute 
running after very elusive targets and a diversion of submarines 
from the war against enemy merchant shipping to which they are best 
suited. Considering the over-all situation, the war against mer- 
chant shipping must be resumed under all circumstances as soon as 
possible. The Commanding Admiral, Submarines requests that these 
views be kept in mind if he has to reject any similar demands on 
Atlantic submarines in the future. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

For reconnaissance observations over the Channel and Vest 
Fjord see Situation North Sea and Norway. During the night of 28 
Dec. seventeen planes flew minelaying missions over the Thames and 
three planes flew missions against ship targets. For enemy air ac- 
tivity over western and northern Germany see Situation North Sea. 
For damage sustained in Wilhelmshaven and Emden see Situation 28 
Dec. 19*1. 

2 . Medl ^erranean Theater : 

Armed reconnaissance reported two direct hits on an enemy 
destroyer and damage to two steamers. 

3. Eastern Front : 

Reports about daylight missions near Kerch have not yet 
been received. 



9862 

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28 Dec. 1941 CONFIDENTIAL 

VII. Warfare In the Mediterranean 

1. Enemy Situation : 

According to aerial photography reconnaissance two cruisers, 
three destroyers, and four merchantmen vere in Malta during the after- 
noon. At 0950 German air reconnaissance sighted a convoy proceeding 
southeast with cruiser and destroyer escort 50 miles northeast of To- 
bruk. It vas attacked by German planes and a submarine (see Aerial 
Warfare and Submarine Warfare). At 1020 one cruiser and three de- 
stroyers vere located on a westerly course 20 miles east of Bardia. 
These vessels probably shelled Bardia between 1000 and 1200. In the 
afternoon two destroyers vere located northwest of Benghazi. During 
the evening a British vessel reported three unidentified vessels 120 
miles northwest of Alexandria. 

2. Own Situation : 

Two -PT boats left Augusta at 0400 to aid a plane at sea 
which had sent a distress signal; they returned at 1045. 

3. Situation Italy : 
Nothing to report. 

4. Transport of Supplies to North Afrloa : 

Sailing orders for destroyers CARABINIERE and ASCARI were 
cancelled. One transport submarine arrived at Bardia and departed 
again. Three naval barges en route to Tripoli entered Lampedusa 
for the day. 

5. Area Naval Group South : 

Aegean Sea : 

The "Siena" squadron, consisting of transports, each with 
500 German soldiers aboard, the auxiliary vessel BAHLETTA, the 
DRACHE, and two torpedo boats, departed from Piraeus to the south. 

Enemy Situation : 

Air reconnaissance reported fairly heavy ship traffic in 
the vicinity of Sevastopol and many freighters arriving and leaving - 
Sevastopol harbor, as well as a convoy made up of six medium-large 
steamers off Novorossisk. 

Own Situation : 

The Italian tanker ALBAR0, the destroyer REGINA MARIA, one 
torpedo boat, and a Rumanian gun boat as well as three Bulgarian PT 
boats arrived in Constanta. The Army situation was reported con- 
solidated the evening of 27 Dec. in spite of a new landing of Rus- 
sian troops. The attack on Sevastopol was discontinued because 
troops were withdrawn to reinforce Kerch. 

Special Items : 

The development of the situation in the Black Sea and the 



-284- 9862 



28 Dec. 19^1 CONFIDENTIAL 

Aegean b a has confirmed the necessity for accelerating construction 
of naval barges urgently requested by Group South. Since the danger 
exists that the construction program which is now drawing to an end 
will decrease the output of the Varna shipyard, Group South consid- 
ers it necessary to place immediate orders for further construction. 
Fifty naval barges each for the Black Sea and the Aegean Sea are the 
minimum requirement. For corresponding request from the Deputy Com- 
mander, Group South see Radiogram 1350. The Naval Staff, Quarter- 
master Division is attending to the matter. 



VIII. Situation East Asia 

1. Enemy Situation : 

According to reports from the U.S., the fighting on Luzon 
near Lingayen and Antimonan is continuing. Two U.S. destroyers were 
slightly damaged. According to Reuterthe Japanese landed on the 
island of Apaiang (Gilbert Islands) and have thereby taken a step 
in the direction of endangering Australia. The Midway Islands are 
still resisting enemy attacks. According to further Reuter reports, 
General Vavell has taken over responsibility for the defense of 
Burma. According to the French, Singapore reports landing of Japa- 
nese parachute troops near Medan on Sumatra. The Portuguese are 
transferring 1,000 men from Mozambique to Timor. 

2. Situation Japan ; 

According to a report from the Military Attache at Bangkok, 
enemy resistance to the Japanese western column is Increasing near 
Ipoh. Enemy air forces remaining in Malaya are estimated at 130 
planes, in the Philippines at 40 planes. Japanese ship artillery 
supported landing attempts in Lingayen Gulf. 



IX. Army Situation 

1. Russian Front : 

Southern Army Group : 

The LIV Army Corps gained about 1.5 km. in its attack on 
the northern Sevastopol front. Enemy resistance in beachheads 
north of Kerch was broken; the southern beachhead is holding. 

At the 1st Panzer Army sector the XLIX Army Corps continued attacking 
with the western flank and the Italian Division in order to shorten 
the front. The enemy air force attacked along the entire front of 
the II and XIV Army Corps. On the 17th Army sector enemy attacks 
were repulsed or shattered, in places with the help of all available 
reserves. On the 6th Army sector the XVII and XXIX Army Corps had 
to withstand strong enemy attacks. Battles around Pochorovka are 
still continuing. 



_ 98*' 

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28 Dec. 19*1 CONFIDENTIAL 

Central Army Group ; 

On the 2nd Army sector there la still grave danger of an 
enemy hreak- through near Sokolya. The hreak- through gap 10 km. 
wide In the hend of the Trudy River has not yet been closed. The 
enemy Is keeping adjoining front sectors under strong pressure In 
order to prevent them from withdrawing reserves. Evasive movements 
west of Livny are proceeding according to plan. Much fighting on 
the sectors of the 4th and 9th Armies. It was possible to repulse 
some attacks with severe enemy losses; some others resulted in 
critical enemy penetrations. 

Northern Army Group ; 

Fighting on the front sectors north of Lake Ilmen and near 
Leningrad. A 28 cm. Army battery scored five hits on the MARAT. 

2. Finnish and Norwegian Front ; 

Troop concentrations in front of the Karelian Army lead us 
to expect enemy attacks near Vyonshosero and Maselskaya. Enemy at- 
tacks on the Mountain Corps are also continuing. 

5. Horth Africa ; 

Small enemy forces advanced towards the Agedabia position. 
The counterattack of Group Cruewell against the 22nd British Armored 
Brigade 50 km. southeast of Agedabia was a complete success. Fifty 
eight armored cars and many other vehicles were demolished. 

German losses from 18 November to 15 December 19*1: 

Killed 70 Officers 601 noncommissioned officers and men 
Wounded 113 Officers 2,092 noncommissioned officers and men 
Missing 78 Officers 2,627 noncommissioned officers and men 

Total; 261 Officers 5,320 noncommissioned officers and men 



**•»*••*******•*#*«**•**• 



9862 

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CONFIDENTIAL 
29 Dec. 19*1 

ItemB of Political Importance 

France : 

The outbreak of hostilities in the Pacific has aroused concern In 
Vichy that Tahiti and Nev Caledonia might obtain U.S. recognition 
for their earlier desertion to De Gaulle; this would result in an 
avkvard situation between Vichy and Washington. 

Portugal ; 

The Japanese government has informed the Portuguese envoy to Tokyo 
that if the Australian and Dutch occupation of Timor continues, 
the Japanese Navy will be forced to take corresponding measures. 

Foreign diplomatic sources report on the attempts of the Portuguese 
government to keep Argentina, Brazil, and Chile as neutral as possi- 
ble at the Rio Conference. 

U.3.S.R . : v 

oee Political Review No. 304, Paragraph 4 for the Anglo-Russian 
communique concerning Eden's conferences vlth Stalin and Molotov. 

U.S.A .; 

Roosevelt '8 statement concerning the negotiations vith Churchill 
aid the Russian and Chinese ambassadors, as veil as vlth the Cana- 
dian and Dutch East Indian representatives, asserts that the most 
important task of the conferences, vhich are still continuing, is 
to unite into one front the military and Industrial resources of 
the countries resisting the Axis. 



Special Items : 

I. The Chief, Naval Staff, accompanied by the Chief of Staff, 
Naval Staff, vent to Fuehrer Headquarters vhere a report vas made 
to the Fuehrer in the evening. The main point of the discussion 
vas the question of operating the heavy ships TIRPITZ, SCHARNHORST, 
GNEISENAU, PRINZ EUGEN, and SCHEER. The Fuehrer withholds his de- 
cision until the situation in Norway is clarified. The defense of 
Norway is of decisive importance to the var. Copy of the confer- 
ence as per Naval Staff, Operations Division (l/Skl I op 2224/41 
Gkdos. Chefs.) in Var Diary, Part C, Vol. VII. 

« 

II. Concerning the directive of the Naval Staff about reconnais- 
sance by planes and submarines north of the British Isles and a- 
round Iceland, Group North, vhich took over execution of this oper- 
ation (see War Diary 9 Dec), forvarded the necessary requests to 
the Commanding Admiral, Submarines on 2j5 Dec, and declared it 
necessary to start reconnaissance at once. According to the policy 



9862 

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29 Dec. 19*1 CONFIDENTIAL 

laid down by Group North, It Is desirable for operational reasons 
to make use of opportunities for attacks on the larger warships In 
order to disturb the enemy and to simulate an organized patrol of 
the Denmark Strait and the Norwegian Sea by German submarines. He 
will then be more careful about committing his vessels and this 
will benefit German break-through operations with heavy ships. For 
the same purpose, reconnoiterlng submarines should, whenever possi- 
ble, attract attention to themselves by radioing their position re- 
peatedly from the same place. 

The advantage which such action may bring is of 
course partially offset by the fact that the enemy 
will be made aware of the significance of this 
area in connection with the imminent operations. 

III. Contrary to the last report from the Commanding Admiral, Bat- 
tleships, the Chief, Naval Staff, Quartermaster Division, Fleet 
Branch reports that the SCHARHHORST can fortunately undock after 
all on 5 Jan.. Thus the delay occasioned by damage to the dock-gate 
is of no great importance. Subsequent repair of the dock will take 
three to four weeks . The Chief, Naval Staff is notified of this 
fact before the beginning of the conference by a radiogram to Fueh- 
rer Headquarters. 



Situation 29 Dec. 19*1 

I. War in Foreign Waters 

1. Enemy Situation ; 

North Atlantic ; 

According to an announcement by the U.S. Maritime Commis- 
sion, all merchant ships will receive their instructions from the 
Navy Department. Ships must steer zig-zag courses, and must sail 
under black-out. According to a report from the Attache Section, 
all U.S. ships will be painted dark grey. 

South Atlantic ; 

U.S. cruiser MEMPHIS left Peraambuoo with destroyer DAVIS 
on 3 Dec, and was supposed to return ten days later. 

Indian Ocean : 

According to an unconfirmed Italian report, two battle- 
ships left the Mediterranean for East Asia on 22 Dec. 

2. Own Situation ; 

Instructions to ELSA ESSBEBGER and SPREEVALD to change rec- 
ognition signals as of 1 Jan. 19*2 by Radiogram 2357. 



-288- 



29 Dec. 19^1 CONFIDENTIAL 

II. Situation Vest Area 

1. Enemy Situation ; ■ 

No special events observed by air reconnaissance In ship- 
ping traffic on the British south and southwest coasts. 

2. Own Situation ; 

Atlantic Coast ; 

At 1755 unsuccessful enemy low-level attack on commercial 
harbor Brest, Creach Lighthouse, and Naval Signal Post at Ouessant. 

Channel Coast ; 

On the evening of 28 Dec. repeated enemy air attacks on 
Dunkirk with some damage. On the evening of 29 Dec. enemy planes 
attacked Ostend; the fishing harbor vas not damaged. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

Slight reconnaissance activity. In the afternoon German 
air reconnaissance located east of Harwich a force proceeding north, 
consisting of one cruiser and seven light vessels; otherwise the 
usual ship and convoy traffic on the southeast and east coasts. 

Own Situation ; 

Radiograms 0257* 0817, and 2019 contain detailed report 
by North Sea Station on enemy air raids and damage sustained In 
Wllhe lms haven and Emden. It says among other things that the steam- 
er MONTE PASCAL was slightly damaged; splinters caused damage on 
destroyer JACOBI, fifteen high explosive bombs were dropped on the 
dummy Installations at No. 4 entrance. At Emden submarines were not 
damaged; there was slight damage at the construction docks. The 
enemy used special planes to drop flares and new- type thin- shell 
bombs. Four planes were shot down by naval anti-aircraft guns. 

2. Norway ; 

Enemy Situation ; 

At 1220 the 5th Air Force reported two destroyers and two 
torpedo boats on a westerly course approximately 100 miles west of 
the Lofoten Islands, and at 1315 a heavy vessel (battleship or 
cruiser), two light cruisers, five destroyers, and four merchant 
ships, course 250° at high speed, 190 miles west of the Lofoten 
Islands. Group North assumes that It Is a westbound convoy from 
Archangel, and not the naval forces reported In the Vest Fjord on 



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29 Dec. 1941 CONFIDENTIAL 

28 Dec, which might still he at Moskenesoe where air reconnaissance 
was impossible due to snow storms. Other Lofoten Islands are not 
occupied by the enemy. 

The presence of steamers does not necessarily indi- 
cate a convoy, since the naval forces in the Vest 
Fjord on 25 Dec. were accompanied by steamers which 
could have been brought along by the enemy for sup- 
plies. 

According to eyewitnesses, the British destroyed the radio station 
at Soervaag on 26 Dec, captured all Nazi sympathizers, and distri- 
buted 200 radio sets to the people. Fishing installations were not 
damaged. Eighteen small warships were observed, mostly destroyers, 
and the captured Norwegian steamers E0HO HARALD and NORDLAND. There 
were many British and Norwegian soldiers, but no sailors, both a- 
board ship and on land. On 27 Dec at 1000 the British went aboard 
apparently very hurriedly in order to depart at 1300. 

On 29 Dec. the bearings of an enemy submarine off Tana Fjord were 
taken. An Italian report states that the Chief of the British 
Home Fleet announced on 13 Dec. the inadequacy of icebreakers in the 
White Sea. 

Own Situation : 

Three of the six ene my B ristol -Blenheims which attacked 
the convoy steamer MAGDALENE VINNEN on 27 Dec (see War Diary 28 
Dec) were shot down by subchaser "14 04" and minesweeper "23". 
The oth Destroyer Flotilla on reconnaissance patrol in the Vest 
Fjord sighted no enemy forces while following the coast from Stam- 
sund via Ballstad to Nuss Fjord between 1130 and 1445. Operation 
of the 8th PT Boat Flotilla against the four enemy destroyers re- 
ported off Ofoten Fjord on 28 Deo. likewise remained unsuccessful. 
Both flotillas came into Narvik where also the COBRA was anchored. 
Since the enemy situation in the Kirke Fjord still seems somewhat 
uncertain, the Commanding Admiral, Norway postponed the mlnesweep- 
ing operation planned for 29 and 30 Dec. The Commanding Admiral, 
Norway furthermore foregoes operation of submarine U "585", so 
that repairs may be made (see Radiogram 1025)* A landing operation 
at Soeroe is suspected from enemy radio telephone communications. 
The island bays in question are being patrolled by the 12th Sub- 
chaser Flotilla; the Army has been asked to search the island for 
a secret submarine base or transmitting station. 

Permission was granted to continue convoys except in the Vest Fjord. 
The area between South Eristiansand and Stavanger, as well as be- 
tween Floroe and Stadland, is still closed to ship traffic 

War Diary, Part C, Vol. lift contains the opinion of the Armed Forces 
High Conmand on the events of 27 Dec. This includes instructions 
for increasing coastal defenses by bri iglng up Army forces and ma- 
teriel to the Commander, Armed Forces. Norway and by reinforcing 
the Air Force from units in the Vest. The Commander in Chief, Navy 
1r be Investigate the possibility of using additional torpedo bat- 
ten.* a (Naval Staff, Operations Division, l/Skl I op 2209/41 op Okdos. 
Chefs.). The same document contains a report by the Naval Staff, 



C 



9862 

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29 Dec. 19^1 CONFIDENTIAL 

Operations Division concerning both the completed torpedo batteries 
and those under construction in Norway. The Naval Staff, Opera- 
tions Division cannot recommend a greater number of these torpedo 
batteries because of the slight operational possibilities and mea- 
ger chances for success as opposed to the very considerable expense 
necessary to set them up; the Chief, Naval Staff was Informed to 
this effect by teletype message to Fuehrer Headquarters. 



IV. Skagerrak, Baltic 3ea Entrances, Baltic Sea 

1. Enemy Situation t 
Nothing to report. 

2. Ovn Situation ; 

The report by Group North on 28 Dec. concerning mlnelay- 
ing in the Kronstadt Channel was an error. Since 5 Dec. no mines 
have been laid. 

Due to Group North's report dated 28 Dec. about the increasingly 
critical ice situation (see War Diary 28 Dec), an announcement 
vas sent from the Naval Staff to Fuehrer Headquarters, Armed Forces 
High Command, and the Army High Command in Radiogram 10J50 to the 
following effect: It is impossible to escort convoys from Oeroe to 
Helsinki vlth minesweepers with equipment. There is danger that 
the icebreaker will be ice-bound and incapacitated in Reval harbor. 
In consideration of the weather, it is suggested that, since re- 
sponsibility cannot be accepted for troop transports without anti- 
mine protection, all troop transports to Finland be detoured via 
Abo and all troop transports for the Northern Army Group be re- 
routed to Riga and Libau. Furthermore it is suggested that the ice- 
breaker intended for Reval be sent to Libau or Riga. 

Steamer MARIE SIEDLER with a cargo of grain, ran aground near 
Sohwarzort. Minelayer "557" was lost from the flotilla unit near 
Greifswalder Ole in a snowstorm on 27 Dec. at 1900 and has been 
overdue since that time. 

Operations in the area of the Commander, Defenses, East were exe- 
cuted according to plan, with nothing particular to report. 



V. Merchant Shipping : 

A DNB report states that the U.S. Maritime Commission requisitioned 
Finnish ships in U.S. harbors. 

A Portuguese shipping company wishes to keep up traffic to U.S. har- 
bors with five ships. Brazilian traffic to Portugal is also to be 
continued. Aside from these, only the eight steamers chartered by 
Switzerland will be sailing between Portugal and the United States. 



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29 Doc. 19^1 CONFIDENTIAL 

VI. Submarine Warfare 

1. Enemy Situation : 

Convoy HXB 165 vas In the North Channel at noon on 28 Dec. 
A plane in the Iceland area reported at noon on 28 Deo. that It had 
come upon convoy "Roman". An intelligence report from Spain states 
that the departure of a convoy from Gibraltar is expected on 30 Dec. 
According to a report from the Naval Attache in Madrid, personnel 
hired by the British Consul at Cadiz has been assigned to the bay 
and the roadstead at night to keep a lookout for German submarines. 

2. Own Situation ; 

The German Naval Command, Italy reports that during the 
night of 28 Dec German submarines sank tvo ships and damaged 
another one in a fast eastbound convoy in the area 70 miles north- 
east of Bard la. The good vork of Air Force reconnaissance made 
this success possible. (See Radiogram 0900.) Further situation 
report in War Diary, Part B, Vol. IV, which also includes an analysis 
of the situation by the German Naval Command, Italy concerning subma- 
rine operations east of Gibraltar, and the opinion of the Naval Staff 
on this question. For copy of corresponding teletype message, see 
l/Skl Iu 2203/41 Gkdos. Chefs, in War Diary, Part C, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity ; 

See Situation West Area, Arctic Ocean, and Norway for re- 
ports of air reconnaissance. The 5th Air Force reports a steamer 
{4,500 BRT) sunk off the western coast of the Faroe Islands. In 
our night operations of 29 Dec, forty nine planes attacked New- 
castle with poor results due to bad visibility. Five He 155*8 
made bomb and torpedo attacks on merchant ships in the Irish Sea, 
but without results. 

2. Mediterranean Area ; 

Armed reconnaissance planes attacked two destroyers off 
Valetta without success. Planes given freedom of aetlon sank with 
gunfire a three-masted sailing ship off Valetta harbor entranoe, 
successfully attacked four submarines, and shot down four Hurri- 
canes. 

3. Eastern Front ; 

4th Air Force units reported sinking a Russian torpedo 
boat and damaging a cruiser off Feodosiya. See Enemy Situation, 
Blaok Sea for reports of reconnaissance. 



9862 
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29 Dec. 19^1 CONFIDENTIAL 

VIII. Warfare In the Mediterranean 

1. Enemy Situation ! 

Western Mediterranean ; 

In Gibraltar there vere twelve steamers and tvo destroyers 
more than on 28 Dec, and tvo torpedo boats fever. 

Central and Eastern Mediterranean ; 

There are no reports concerning sighting enemy naval forces. 
However, according to Italian radio monitoring, the Commander, 1st 
Battle Squadron was still at sea with cruisers and destroyers. 
Cruisers PENELOPE and AURORA vere also located vlth accompanying de- 
stroyers In the area off Alexandria. Since AURORA vas located on 
28 Dec. at 0915 still 130 miles east of Malta, It may be assumed 
that the vessel participated In the convoy escort to Alexandria re- 
ported by our air reconnaissance on 28 Dec. 

2. Situation Italy : 

One large lighter vas sunk during artillery attack on 
Bardla on the evening of 28 Dec An Italian report states that on 
28 Dec. at 1500 Italian torpedo planes north of Raz Asaaz attacked 
the convoy vhloh had been announced on 28 Dec. Hits vere reported 
on one cruiser and one steamer; a probable hit vas scored on another 
steamer. 

Thus this convoy has successfully been attacked by 
German and Italian planes as veil as by German subma- 
rines. 

3. Transport of Supplies to Worth Africa ; 

Four naval barges entered Tripoli. Three transport sub- 
marines are Intended for gasoline supply to Tripoli; the remainder 
of those which are ready are Intended for Bardla. They will depart 
betveen 31 Dec. and 8 Jan.. Steamer ACHAIA departed from Palermo 
and Is proceeding under escort of one torpedo boat as far as Cape 
Boh, from there to proceed along the coast to Tripoli. The next 
steamer voyaging alone to Tripoli will be the STURMA. 

4. Area Naval Group South : 

Aegean Sea ; 

The "Siena" transport squadron (see War Diary 28 Dec.) 
returned to Piraeus because of bad veather. Lively enemy air 
activity over Chalkls, Euboea, and Suda; at Suda slight damage vas 
done to building materials In the dump of the Naval Construction 
Office. 

Black Sea : 

Air reconnaissance revealed that tvo destroyers and four 
steamers vere at Feodosiya . E' tvoen 1200 and 1600 three convoys of 



9662 

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29 Dec. 19^1 CONFIDENTIAL 

twelve steamers in all under escort and one other steamer convoyed 
"by tvo cruisers were sighted off Peodosiya putting out to sea. 

Vest of Anapa four steamers vere sighted on westerly course. In 
Taman8kaya Bay there were three steamers and nine boats, twenty 
boats in the Kerch Strait, and north of Kerch Peninsula a convoy 
of eight steamers with two cruisers on easterly course. This heavy 
traffic is without doubt connected with the enemy's intention of 
occupying Feodosiya. 

The Russian tanker VATTJANT CUTURIER, loaded with gasoline, entered 
the Bosporus. 

Own Situation ; 

The Port Captain at Kerch reports that the XLII Army Corps 
is vacating the Kerch Peninsula as far as Feodosiya. In response to 
the Army's wish, parts of the Shore Command are being transferred 
from Yasl to the Crimea in order to provide coastal defense on the 
northwest Crimea and to strengthen the defense of Eupatoria and Ak 
Mechet. According to a report of Group South, these units are weak 
and very superficially trained. Their transport by air to t he Cri- 
mea has been authorized. Sinoe the only submarine, DELFINUL, is 
out of action, since the two Rumanian destroyers whioh are ready 
for action are quite insufficient for these operations, and since 
more forces are not available, no support can be given the 11th 
Army by sea. (See Radiogram 2356.) Radiogram 2121 notifies the 
Naval Liaison Officer to the Army High Command of this faot. 

The Naval Liaison Officer to the Army High Command transmitted on 
23 Dec. the investigation report of the Chief Supply and Administra- 
tion Officer of the Army General Staff concerning supply traffic by 
ships aero s 8 the Black Sea. The availability of tankers is consid- 
ered essential. The report differentiates between the following 
six operations: 

1. Supply of the 11th Army High Command after the fall of 
Sevastopol. 

2. Supply of the 1st Panzer Army for the attack on Rostov. 
2. Advance on Maikop. 

4. Seizure of the approach areas on the northern edge of the 
Caucasus as far as Tuapse and Makhach Kala. 

5. Attack across the Caucasus. 

6. Seizure of Transcaucasia. 

Supplementary Information by the Naval Liaison Officer to the Armed 
Forces High Command and a map marked with the desired transport 
routes are added to the investigation report. Counterproposals are 
left to the discretion of the Naval High Command. The start of the 
operations may even have to be made dependent on the state of pre- 
paredness of overseas supply units. 



9862 



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29 Dec. 19^1 CONFIDENTIAL 

In the opinion of the Naval Staff, Operations Division, the moderate 
requirements of the Chief Supply and Administration Officer, Army 
can he fulfilled as desired from the operational point of vlev, If 
the future enemy situation still permits. The problems of cargo 
space is to he clarified by the Naval Staff, Quartermaster Division, 
Shipping and Transport Branch. The Naval Staff will then attend to 
the operational side of the matter. 



IX. Situation East Asia ; 

Press reports state that Ipoh was taken. According to Domel, Ad- 
miral Shimada announced enemy and Japanese losses to the Japanese 
Senate as follows: 

Enemy losses : 

Battleships: Seven sunk, three heavily damaged, one slight- 
ly damaged 

Cruisers: Two sunk, two heavily damaged, four slightly 
damaged 

Destroyers: One sunk, four damaged 

Submarines: Nine sunk, many more probably destroyed 

Smaller vessels: Six gun boats and more than six torpedo 

boats sunk, two gun boats and one aux- 
iliary vessel damaged 

Sixteen merchant ships sunk, three damaged; fifty vessels 
totalling 130,000 tons and each over 200 
tons (Domel says 400 tons) requisitioned 

Japanese losses : 

Three destroyers and one minesweeper sunk 
One minesweeper heavily damaged 
One light cruiser slightly damaged 
Five special submarines missing 

There are no other important reports. 



X. Army Situation 

1. Russian Front : 

Southern Army Group : 

The enemy began a counterattack against the LIV Army Corps 
along the whole front near Sevastopol. Battles are still continu- 
ing. During the early morning an enemy landing took place at 



9862 
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29 Dec. 19^1 COHFIDEHTIAL 

Feodosiya and northeast of the city after enemy aerial preparation. 
The landing could not be repulsed. Feodosiya has been abandoned. 
The 11th Army High Command Intends to defend the Crimea in Kerch 
Peninsula and to win back Feodosiya. Light activity among the 
other armies of this group. 

Central Army Group : 

Attacks against the 2nd Army along the vhole front. The 
enemy broke through an uncovered loophole north of Droskovo as far 
as Nlkolayevka. In the 4th Army sector Vorotynsk had to* be given 
up to enemy of superior strength. In the 9th Army sector our at- 
tack against cavalry south of Baklanovo was stopped by strong enemy 
forces. The XXII Army Corps drew back Its lines. In all other 
sectors of the Central Army Group the enemy could either be stopped 
or thrown back. 

northern Army Group : 

Enemy activity in the front sectors north of Lake Ilmen. 
In general a quiet day on the Leningrad front. 

2. Finnish and Norwegian Front : 

Skirmishes near Oshta and south of Ukhta. Otherwise the 
situation is unchanged. 

3. Worth Africa : 

The 22nd Guards Brigade drew closer to the Agedabla posi- 
tion from the northeast. Group Cruevell, continuing the counterat- 
tack, took El Halaiat with the German Afrika Korps, and the area 

30 km. southeast of Agedabla with the Italian Motorized Corps. Dur- 
ing the engagements on 28 and 29 Dec. a total of sixty five armored 
cars and twenty four scout cars were destroyed and 230 prisoners 
taken. 

One hundred and twenty enemy bombers attacked Bardla. Strong enemy 
artillery activity on the Bardla- Hal faya front. 



•*«**•***•••••*•*••*•*••• 



( 



9862 

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CONFIDENTIAL 



30 Dec. 19*1 

Items of Political Importance 

France: 

See Political Review No. 305, Paragraph 1 for information concerning 
Franco -American disagreement about the islands of St. Pierre and 
Hiquelon. 

Spain : 

The German Ambassador reports that the Spanish government will make 
a strong protest to the British government for the severe violation 
of territorial rights during the attack on the BENNO. 

U.8.S.R .: 

According to a neutral diplomat's report, the press is less opti- 
mistic about the development of recent operations. Some of the 
evacuated offices, especially cultural institutes, have returned 
to Moscow. 

Arabia : 

See Political Review No. 305, Paragraph 4 for the interview granted 
by the Grand Mufti of Jerusalem to the Japanese press concerning the 
historical renaissance of the Asiatic Continent and the effect of 
Japanese victories on India and the Arabs. 

Ecuador: 

A dependable report states that an agreement was completed on 11 Nov. 
between the U.S.A. and Ecuador concerning lease of the Galapagos Is- 
lands. 

Japan : 

Political Review No. 305, Paragraph 8a contains the German Ambassa- 
dor's report on Japanese ideas about the future political structure 
of Hong Kong and the Philippines, as well as of Malaya and Burma. 

The Japanese Ministry of Information declares that relations with 
Russia are extremely friendly and are based on the neutrality pact. 
Japan must watch the attitude in South America very carefully. So 
far Argentina, Chile, Brazil, and Peru have not declared war on 
Japan; but the possibility must be considered that these countries, 
too, might be drawn into the war on the side of the United States. 

New Zealand : 

The Prime Minister emphasized that Washington had gained unusual 
significance for New Zealand now that the Pacific has become the 
main theater of war. 



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9862 



30 Dec. 19*1 CONFIDENTIAL 

Conference on the Situation with the Chief, Naval Staff . 

As a result of the Fuehrer's vievs recorded on the occasion of a re- 
port by the Chief, Naval Staff concerning a surprise dash through 
the Channel to he attempted by the ships at Brest (see War Diary 
29 Dec), the Chief, Naval Staff orders the competent offices to 
investigate the possibilities of such an operation. For this pur- 
pose there vill be a conference in Paris on 30 D*c with Commanding 
Admiral, Group West, at vhich Fleet Commander; and Commanding Ad- 
miral, Battleships will be present. The Naval Staff, Operations 
Division will be represented by the Chief, Operations Branch. 

The Chief, Naval Staff announces that besides Field Marshals von 
Brauchltsch, von Rundstedt, and von Bock, Generals Guderian, Foerster, 
and von Sponeck have also been relieved. 



Situation 30 Dec. 1941 

I. War In Foreign Waters 

1. Enemy Situation : 

North Atlantic : 

Cruiser NEWCASTLE, which was up to now in a U.S. shipyard, 
has put to sea, probably on return voyage home. ILLUSTRIOUS was lo- 
cated at Liverpool on 30 Dec. 

South Atlantic : 

OMAHA left Pernambuco with destroyer SOMERS on 22 Dec. 
One U.S. destroyer entered Natal for the day on 29 Dec. INDOMITABLE 
was located in the Cape of Good Hope area en route to Durban. 

Pacific Ocean : 

PERTH departed 22 Dec. from unknown port bound for Sidney. 
On the same day ACHILLES left More ton Bay for unknown rendezvous. 

2. Own Situation : 

Information on enemy situation in Radiogram 2244. Memo- 
randum by the 1st Gunnery Officer of ship n l6 n , Lt. Kasch, con- 
cerning artillery armament of auxiliary cruisers is being forwarded 
to the Naval Staff, Quartermaster Division, Fleet Branch with the 
recommendation that the principles therein be considered in the 
preparation of further auxiliary cruisers. Copy in War Diary, Part C, 
Vol. I, l/Skl Ik 29487/41 Okdos. 



9862 
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30 Dec. 19*U CONFIDENTIAL 

II, Situation Vest Area 

1. Enemy Situation i 

Air reconnaissance shoved that five light vessels were 
30 miles vest of the southern tip of Ireland around noon. 

2. Ovn Situation : 

Atlantic Coast : 

On the basis of the BENNO experience and information from 
the radio intercept service, Group Vest reports the following con- 
cerning departures and arrivals of blockade-runners; 

"a. Outbound route has proved good. 

"b. It is unknown vhether air reconnaissance has been 
Increased as a matter of routine or as flank protection for convoys. 
The enemy is capable of quick, strong air force operations from 
land. They are probably using locating devices, to judge from night 
operations in combination vith accurate use of flares. The best de- 
fense is timely anti-aircraft fire. 

"c. Blockade -running is made more difficult because of 
the reasons presented in "b". Dark nights and bad visibility are 
the best protection. The times of heavy convoy traffic are to be 
reported. 

"d. Spanish territorial waters are no longer protection 
against enemy attack." (See Radiogram 1120.) 

Instructions have been issued to Group Vest for bringing in ELSA 
ESSBERGEB, loaded vith rubber, the arrival of which is expected 
5 Jan. 1942 in quadrant CD 31, and 12 Jan. in Bordeaux. The ship 
vill be brought in like the BURGENLAHD. One submarine will meet 
her in CD. The ship has orders to steer towards Spanish terri- 
torial vaters betveen Vigo and Ortegal. In viev of the BENNO in- 
cident, the Naval Staff considers that passage through territorial 
vaters, which have been used often lately, is not practical. Group 
Vest vill take over command on 5 Jan. at 0000. 

Channel Coast : 

The Commander, Torpedo Boats reports that detour of con- 
voys north of Cromer is most probably the result of our mlnelaylng 
operations. (See Radiogram 1020.) 

Eight ground mines vere swept on route "Rosa" on 30 Dec. Other- 
vise nothing to report. 



III. Worth Sea, Norway, Arctic Ocean 
1. North Sea :: 

do thing to report. 



9862 

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30 Dec. 19*1 COBTFIDEiyTIAL 

2. Norway ; 

Enemy Situation : 

Radio monitoring located four vessels, probably one British 
and three Russian, in the Murmansk coastal area. According to air 
reconnaissance, Vest Fjord is free of enemy forces. Kirke Fjord and 
Moskenesoe could not be observed on 28 and 29 Dec. because of snow 
storms. The Admiral, Arctic Coast reported by telephone that British 
naval forces left Kirke Fjord on 28 Dec. at 1600. KONG EARALD and 
NORDLAND are lying there damaged. British rumors, spread intention - 
ally , spoke of a larger action in the next few days in order to occupy 
permanently the Lofoten Islands, the Vester Aalen Islands, and 
Bodoe. Eighty U.S. transports would be used for this operation. 

Own Situation ! 

The 8th Destroyer Flotilla, the 8th PT Flotilla, and COBRA 
are in Narvik. The mine project in Kirke Fjord has been abandoned. 
The flotillas will proceed to Tromsoe on 31 Dec. with LTJEDERITZ and 
COBRA. After being temporarily opened, Groet Sound was closed again 
on 30 Dee. because mines are suspected. The sinking of steamer KONG 
RUG on 26 Dec. is probably attributable to mines after all. 

The Admiral, Arctic Ocean has instructions from the Commanding Ad- 
miral, lorway to operate his vessels at his discretion, since from 
our Information the departure of the enemy can be taken for granted 
(see Radiogram 1750). 

According to a report from the Commander, 1st Het Barrage Unit, a 
net enclosure for one battleship and a single net for submarines 
have been completed in the Narvik area under the present program 
of constructing safety measures. A second net enclosure and a sec- 
ond submarine net will probably be ready in the near future. Under 
the same program, the Commanding Admiral, lorway had requested the 
5th Air Force Command at the beginning of December to assign pursuit 
planes and bombers to northwestern Norway. Remarking that the main 
objectives of the 5th Air Force are in the eastern area, the 5th Air 
Force Command answered that the defense of the anchorages for naval 
vessels must be assumed by the Navy with every available active and 
passive measure; if necessary the Air Force will operate with all 
the means at its disposal from Banik and Stavanger, depending on the 
situation, including weather conditions, at the time. In addition 
the 5th Air Force will try, depending on the situation in the west- 
ern and eastern areas, to transfer its forces to Bardufoss tempo - 
rarily, provided it is notified in time about the Intended number 
of vessels at each anchorage. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea : 

Group forth agrees with the proposal of the Commander, Minesweepers, 
lorth to open route 80 between Blau 16" and "Blau 18A" to ships 
sailing alone. (See Radiogram 1607.) 

A border patrol on Ruegen heard a heavy detonation coming from the 
sea on 27 Dec. at 2305. It is very probable that minesweeper "557", 



9862 

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30 Dec. 1941 CONFIDENTIAL 



vhlch lost contact vlth its unit near Greifsvalder Ole on the 84 
day at 1900, ran over an aerial mine, the laying of vhich vas ob- 
served in October 194 1 in the Bay of Pomerania. All further search 
for the boat has been in vain. 

Otherwise nothing to report. 



V. Submarine Warfare 

1. Enemy Situation : 

According to radio monitoring, convoy SL 95B vas at AM 
6466 on 31 Dec. at 1000. A British patrol boat vas about 300 miles 
vest-southvest of the Canary Islands on 29 Dec, and the cable ship 
MIRROR vlth escort vas near Horta. 

2. Ovn Situation ; 

Report in War Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

Fifteen four-motored Ballfaxes vlth fifteen pursuit planes 
attacked Brest from 1500 to 1535. Three of the former and six of 
the latter vere shot down. One floating crane capsized, and one 
pump steamer vas damaged. Our armed reconnaissance planes attacked 
a British steamer of 2,000 BRT vith three aerial torpedoes off the 
mouth of the Tajo vithout success. Seven smaller steamers off 
Queens tovn vere not attacked vith aerial torpedoes, as the targets 
did not seem vorth it. The attack vas made vith machine guns. 

2. Mediterranean Area : 

See Enemy Situation, Eastern Mediterranean for reports of 
reconnaissance . 

3. Eastern Front : 

In the harbor of Feodosiya one steamer of 3,000 BRT vas 
damaged and three more vere probably damaged during several attacks. 
For reports of reconnaissance, see Enemy Situation, Black Sea. 

4. Special Items : 

In response to the Naval Staff's request that the 3rd and 
5th Air Forces send reports of reconnaissance to Oroup North, the 
Air Force General vith the Commander in Chief, Navy transmits the 
answer of the 3rd Air Force that it already passes all such Informa- 
tion on to Group West, and that Group North can get it from there. 
(See Radiogram 2045)* 



9862 

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30 Dec 19*1 CONFIDENTIAL 

This Matter must be clarified as requested. The de- 
tour of information via Group Vest makes worthless 
the execution of reconnaissance tasks specially as- 
signed to Group North. 



VII, Warfare in the Mediterranean 

1. Bneay Situation ; 

Western Mediterranean : 

MALAYA, ARGUA, HERMIONS, DIDO, about fifteen destroyers, 
and five submarines are at Gibraltar. Polish passenger ship BATORY 
left with three destroyers during the evening. 

Central and Eastern Mediterranean : 

Since QUEEN ELIZABETH, VALIANT, and BARHAM are in the Alex- 
andria area, the Italian reports concerning the departure of two bat- 
tleships from the Mediterranean for East Asia are probably not cor- 
rect. Four submarines arrived at Malta during the afternoon of 29 
Dec. During the morning of 30 Dec. air reconnaissance located sev- 
eral ships sailing individually under escort and a group of naval 
forces consisting of one battleship, two light cruisers, and four 
destroyers off the coast between Marsa Matruh and Tobruk. The unit 
was proceeding north. At the same time Italian radio intelligence 
located the command of the 1st Battleship Squadron in port, an d o ne 
battleship, the cruiser AJAX, and the destroyers HIGHLANDER, SIKH, 
and LBGIOI at sea off the coast of Cyrenaica. An Italian agent re- 
ports that submarines TEMPEST and TURBULENT will sail from Britain 
to Alexandria in the near future. 

2. Own Situation : 

During the night of 30 Dec, the 3rd PT Boat Flotilla 
laid mines off Malta. Report on completion of mission not yet 
available . 

3. Situation Italy : 

Italian merchant shipping was further damaged by subma- 
rine attacks on tanker CAMPINA which sank near Zante, and on motor 
ship CITTA DI MARSALA which was torpedoed near Argostoll. During 
the night of 28 Dec. enemy air raids on Tripoli without damage to 
military Installations. Bardie was shelled repeatedly between 1245 
and 1400. Acoording to a report from the Supply and Transport Of- 
fice, a lighter was sunk and the last available lighter severely 
damaged. An Italian motor-mine sweeper was also severely damaged. 
The transfer of auxiliary sailing vessels from the Aegean area is 
thus of special importance. German Naval Command, Italy is taking 
the matter up with Commanding Admiral, Aegean Sea (see Radiogram 
2100). 

Acoording to information from the Italian Navy, the British sailors 
picked up on 24 Dec. near Misurata say that the cruiser group NEP- 



fMI 

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30 Deo. 19*1 CONFIDENTIAL 

TUNE, AURORA, and PENELOPE had left Valetta on the night of 18 Dec. 
in order to intercept the 53rd Transport Squadron off Tripoli. At 
0315 flagship NEPTUNE struck at least two mines in barrage D off 
Tripoli, and sank in an hour. A further detonation seems to have 
involved a destroyer bringing aid. (See Radiogram 0700 from the 
German Naval Command, Italy 



3 



Barrage D is part of the outer barrage for the defense of Tripoli; 
it consists of 140 German EMC mines vlth lover antenna, and vas 
laid on 1 May 19^1 according to the German specifications and the 
mining order worked out to the last detail by the Naval Staff, Op- 
erations Division, Mine Warfare and Anti- Submarine Section. In 
spite of German insistence, unfortunately the barrage vas not laid 
until after heavy British forces had shelled the harbor of Tripoli 
on 21 April. The position of the barrage as suggested at the time 
by the Naval Staff therefore has proved correct. 

In regard to this gratifying success, which is after all German, 
the Admiral, German Naval Command, Italy reports as follows: 

« 

"1. The sinking of the NEPTUNE by mines may be of de- 
cisive Importance for holding Tripolitania. Without this event, 
the British cruiser group reported by air reconnaissance would very 
probably have destroyed the Italian convoy on 19 Dec. before it 
ever entered Tripoli. 

"The steamers of the convoy on this night were en route to Tripoli 
from the area east of Horns; they were travelling singly, each 
covered by two destroyers. The escorting cruisers had turned back 
to Italian home bases at nightfall because of expected attacks by 
torpedo planes from Malta. This information has -just now become 
known. 

"It is certain therefore that the operations of the entire Italian 
Fleet as well as the operations and actions of the German and 
Italian Armed Forces for the protection of t he 5 3rd Transport 
Squadron, would have been in vain if the NEPTUNE group had not 
been prevented from executing its mission of annihilation by the 
loss of its flagship. It would have been impossible to evade the 
British unit because it was deployed off the harbor. Furthermore 
during the night British reconnaissance planes established contact 
with the convoy and bombed it. 

"2. There is no doubt that the loss of the actual sup- 
plies brought by the three steamers at the peak of the crisis in 
North Africa would have had the severest consequences. The 
psychological effect might have put an end to Italian resistance. " 

The Admiral, German Naval Command, Italy then tells of the diffi- 
culty he had in urging the Italians to execute the German plan, and 
that he himself went aboard one of the Italian cruisers laying the 
barrage. In concluding he remarks that the German Navy can take 
credit for having played a decisive role in saving Tripolitania. 
(See Radiogram 2100.) 

The Naval Staff agrees completely with the analysis 
of this success by the German Naval Command, Italy, 
and is especially pleased that mine warfare can book 



9862 
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30 Dec. 19*1 COHFIDBHTIAL 

two suoh decisive successes as Jumlnda and Tripoli 
vithln half a year. 

4. Transport of Supplies to Worth Africa ; 

The s teaser ACHAIA is en route to Tripoli. Two transport 
submarines are on return voyage from Bardia, and one transport sub- 
marine is en route to that port. Four special command ferries (33 
Paehren) ran aground near Ras el Aali. 



On 2 Jan. a transport squadron consisting of six steamers is to sail 
from south Italian ports for Tripoli. Escort Is to be provided by 
four battleships, two heavy and three light cruisers, and twenty nine 
torpedo carriers. 

5. Area Haval Group South ; 

Aegean Sea ; 

Enemy Situation ; 

According to report from the Haval Attache, Istanbul, the 
Russian tanlcer sunk vas tanker AVAHESOV, the crev of which, includ- 
ing a number of British General Staff officers, has been brought to 
Istanbul. 

Own Situation; 



Suda. 



Supply squadron "Siena" has once more left Piraeus for 

Black Sea ; 

Enemy Situation ; 

According to a report from the 4th Air Force, three steam- 
ers, four boats, and one destroyer were left in Feodosiya after one 
cruiser, two destroyers, and one steamer had departed. South of 
Kerch several steamers were sighted on westerly course, some of thei 
towing boats. Two destroyers in Hovorosslsk. Prisoners say that 
the cruiser sunk on 13 Nov. in the air raid off Sevastopol was the 
CHERVOHATA UKRAIHA. 

Own Situation ; 

No mlnesweeplng because of bad weather. Rumanian destroy- 
er REGELE FERDINAND out of action for one day because of spotted 
typhus. 

Group South Informs the 11th Army Headquarters and subordinate com- 
mands Involved that it is possible to use available forces of Haval 
Shore Commands "U" and "V" for strengthening harbor and coastal de- 
fenses. Transportation would have to be furnished by the 11th 
Army Headquarters, however, since naval transport vessels are still 
under way. Group South points out that the German railroad battery 
628 (three 28 cm. guns), set up near Constanta, oan be released by 
the Navy for the present. 



9862 

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30 Dec. 19^1 CONFIDENTIAL 

In order to strengthen the defense by aerial mines as soon as possi- 
ble, the ^th Air Force will have to bring up the necessary squadrons 
for laying not only BM 1000, but also blue, red, and green aerial 
mines. The planes must be able to lay mines continuously, not only 
just once. Points of operation are: Kerch Strait, Feodosiya har- 
bor, and Yalta; mining must be intensified in Sevastopol, Eupa- 
torla roadstead, Ak Mechet harbor, the bays of Yarylgach and Kara- 
dzha, and the narrows between Dzharylgach and Bakalskaya to block 
the entrance to Perekop. Since these harbors are not in enemy 
hands, the mines can be layed peacefully, and entrances for our 
own use can be left unmined. In closing, Group South states once 
more that no naval forces suitable for defense are available. (See 
Radiogram 1400.) 

The Naval Staff agrees wholeheartedly with the pro- 
posals made by Group South, which suggest the only 
contribution, unfortunately, which the Navy can make 
to defense, as things stand. 



VIII. Situation East Asia 

1. Enemy Situation : 

Radio monitoring reveals that RAMILLIES is bound for the 
Indian Ocean ; INDOMITABLE is near Durban ; in Singapore are EDIN- 
BURGH, cruisers DANAE, MAURITIUS, DAUNTLESS, DURBAN, four destroy- 
ers, and six submarines; in the Colombo area are REVENGE, ROYAL 
SOVEREIGN, HERMES, and EAGLE (the latter not sure), furthermore 
cruisers CORNWALL, EXETER, AUSTRALIA, ENTERPRISE, GLASGOW, EMERALD, 
HOBART, and several auxiliary cruisers and destroyers; in Bombay 
area cruisers LONDON, DORSETSHIRE, and LEANDER, three destroyers, 
and two gun boats; in Australia cruisers CANBERRA, ADELAIDE, PERTH, 
and ACHILLES. 

Reuter reports that U.S. freighters MANINI (3,253 BRT) and PRUSA 
(5*113 BRT) were sunk by torpedoes during the night of 17 Dec. 
According to a report from Batavia, Japanese landings in Medan 
(Sumatra; have not been confirmed. A report from the U.S. Navy De- 
partment states that during the occupation of Wake Island four U.S. 
planes put out of action one Japanese cruiser, three destroyers, 
and one submarine. Furthermore, U.S. submarines are said to have 
sunk two more Japanese supply ships near the Philippines, while one 
U.S. destroyer was slightly damaged during an enemy air raid. Ac- 
cording to a report from the Vichy Telegraphic Service, Netherlands 
East Indian planes attacked a Japanese transport successfully off 
Mlri in Sarawak. 

2. Situation Japan : 

The Japanese Navy sank two enemy submarines off Borneo. 
A Japanese destroyer and a motor-minesweeper were lost in that en- 
gagement. The Japanese troops which landed in southwest Borneo 
have occupied Kuchlng. Between Hawaii and the U.S. coast Japanese 
submarines up to 25 Dec. have sunk ten ships totalling 70,000 BRT, 



9862 

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30 Dec. 19*1 CONFIDENTIAL 

and damaged an additional eight totalling another 70,000 BRT. ■ 



IX. Army Situation 

1. Russian Front : 

Southern Army Group ; 

Rumanian units were forced to withdraw from positions near 
Feodosiya. Arrival of the 46th Infantry Division as planned. Only 
light activity in 1st Panzer Army and 17th Army sectors because of 
cold weather and snow storms. The 6th Army could not re-establish 
contact of its left flank with the Central Army Group. The enemy 
broke through at Tim. Counterattack has been started. The break- 
through gaps between the 16th Infantry Division and the 9th Panzer 
Division and those at the IV Army Corps could be closed. 

Central Army Group : 

All attacks on the whole front could be stopped by active 
countermeasures. Enemy break-through near Likhvin was stopped. 

Northern Army Group : 

An enemy break-through at the 6lst Infantry Division pene- 
trated as far as the Leningrad-Sol tsy railroad. Counterattack is 
in progress. 

2. Finnish and Norwegian Front : 

The island of Tytersaari in the Gulf of Finland was oc- 
cupied by the Finns. At the sector of the Karelian Army and the 
Commanding General, Norwegian Theater enemy attacks were repulsed; 
the 6th Mountain Division, especially, won a decisive victory a- 
galnst stubborn enemy attacks on the Murmansk front from 21 to 28 
Dec. 

3. North Africa : 

The 22nd British Armored Brigade withdrew to the northeast 
ahead of pursuing Group Cruewell . Forty eight more tanks were de- 
stroyed. With the total losses of the last three days, the enemy 
brigade is at least badly weakened. All is quiet on the Agedabia 
front; strong enemy artillery activity on the Bard la- Hal faya front. 

The fuel situation of the troops is acute; that of the Air Force 
is Improved. Possibilities for operating remained limited because 
airfields are situated too far west for the range of our dive bomb- 
ers and pursuit planes. 



9662 

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CONFIDENTIAL 

31 Dec. 1941 

Items of Political Importance 

Great Britain : 

Churchill's speech to the Lover House at Ottawa contains a few note- 
worthy statements. He declared that it is now possible that this 
war will end without giving the Canadian Army the opportunity to 
fight as much as in World War I. During the conferences with Roose- 
velt, a joint pact was signed by more than thirty nations who are 
resolved to fight until Hitler's tyranny, Japan's folly, and Musso- 
lini's bluff have been eliminated. There will be neither treaty 
nor compromise. The enemy's strength, however, demands the utmost 
effort. Had Prance evacuated its government to North Africa in 1940 
without concluding a separate peace, Italy would probably have with- 
drawn from the war by the end of the year. But fortune has changed 
now, and the tide is starting to rise against the Huns. In Russia 
and North Africa the fortunes of war have turned against Germany. 
Allied armament will soon be better than Germany's. In the coming 
struggle there will be three phases: 

1. A period of consolidation to gather forces while fighting 
in defense. 

2. A phase of liberation in which the nations oppressed up 

to that time will be freed with the aid of revolts; the Allies will 
appear in these areas with overpowering strength. 

3. Attack on the citadels and capitals of the guilty nations 
of Europe and Asia. 

The speech is given in detail in Political Review No. 306, Para- 
graph 1. 

U.S.A .: 

Reports from Argentina, Brazil, and Chile are mainly concerned with 
conferences in preparation for the Conference of American Foreign 
Ministers at Rio beginning on 15 Jan.. How far Argentina, Brazil, 
and Chile can remain Independent in the face of the U.S. alms of 
consolidation remains to be seen. The Argentine government intends 
among other things to patrol the Atlantic coast independently, i.e., 
without the support of other fleets, and to limit operation of her 
fleet to this one activity. The Chilean fleet, possibly supported 
by the Argentine Navy but by no other South American forces, is sup- 
posed to take over protection of the Straits of Magellan and the 
Pacific coast of Chile. For further plans see Political Review No. 
306, Paragraphs 3, 4, and 5. 

China (Nanking ) : 

According to an Embassy report, the capture of Hong Kong is stressed 
in Chinese publicity as a victory for the concept of Greater Asia. 
The Japanese give free rein to this propaganda, but meet Chinese re- 
quests to share the fruits of the Japanese victory with little en- 
thusiasm. 



9862 
OCT" 



31 Dec. 19*1 CONFIDENTIAL 

India ; 

Presumably considerable differences of opinion arose between Ghandl 
and the rest of the Congress Party over the question of India's at- 
titude toward Japan and led to Ghandl* s withdrawal. 



Conference on the Situation with Chief, Naval Staff . 

I. The Naval Staff, Fleet Operations Section reports on the propo- 
sal of Group North to strengthen the PT boat and motor-minesweeper 
units in northern Norway , which unfortunately can not be followed at 
present. The Chief, Naval Staff points out that the proposal of the 
Group will have to be considered in any case when this area is threat- 
ened more strongly by the enemy, particularly since light vessels op- 
erating from Narvik will always have prospects of success. Group 
North's request to the 5th Air Force for strengthening air units in 
the northern Norwegian area should be supported by the Naval Staff 

at Commander in Chief, Air. The Chief, Naval Staff furthermore per- 
mits the diversion of one submarine from the Azores group to bring in 
the important steamer ELSA ESSBERGER which is loaded with rubber . 

II. The Chief, Quartermaster Division, Naval Staff reports on 
Diesel oil in Norway , which is being supplied as planned. Among 
other things a large dump of 20,000 tons is to be stocked in Trond- 
helm. The allocation of raw materials was not discussed by the Com- 
mander in Chief, Navy at the Fuehrer conference of 29 Dec . . The 
Chief, Ordnance Division, War Economy Branch, High Command, Navy is 
to discuss this problem at the Armed Forces High Command. The Naval 
Staff, Quartermaster Division also reports about the request of 
Group South for an accelerated and increased naval barge construc - 
tion program at Varna (see War Diary 2b" Dec. ) . The matter will be 
handled further by the Naval Staff, Quartermaster Division in agre< 



handled further by the Naval Staff, Quartermaster Division in agree- 
ment with the Naval Staff, Operations Division as part of plans for 
the production of more small naval vessels In the southeast, area . 



III. As to the question of how the reception of the crew of ship "16 " 
is to be handled by the press , the Chief, Naval Staff, acting on sug- 
gestion from the Naval Staff, Operations Division, decides that on 
the occasion of awarding the Oak Leaf Cluster to Captain Rogge a gen- 
eral statement is to be made concerning the special character and 
significance of auxiliary cruisers. No specific mention will be 
made of ship "16" or of other auxiliary cruisers so as to avoid giv- 
ing helpful hints to the enemy. Aside from this operational point 
of view, it is out of the question to stress the specific achieve- 
ments of the ship commanded by Captain Rogge, considering the per- 
formance of the other successful auxiliary cruisers and their com- 
manders and crews, some of whom have been killed in the line of duty. 

IV. The Fuehrer's directive of 29 Dec, according to which an ef- 
fort is to be made to divert as many I tal Ian submarine a as possible 
for transport of supplies to North Africa , will bring real results 
only when these submarines have been converted for their new func- 
tion. Italian shipyard facilities needed in this connection can be 
obtained only at the expense of the number of German submarines op- 
erating in the Mediterranean. Further action on this score is being 



9862 

-308- 



31 Dec. 19*U CONFIDENTIAL 

taken by the Naval Staff in agreement with the other offices con- 
cerned. The Chief, Naval Staff orders that an attempt be made by 
the Naval Staff to influence among others Admiral Bartoldi in favor 
of the desired assignment to transport duty. 

V. Admiral Riccardi has expressed his acceptance of 14 and 15 
Jan. as the new date for a conference with the Commander In Chief, 
Navy. 

VT. War Diary, Part C, Vol. XV contains the regulations of the 
Naval Staff concerning authority in matters pertaining to coopera- 
tion with Japan (l/Skl I op a 29715/41 Gkdos.). 



Situation 31 Dec. 1941 

I. War in Foreign Waters 

1. Enemy Situation : 

According to a bulletin issued by the U.S. Navy Department, 
Admiral E. J. King took over the position of Commander in Chief of 
the Fleet on 30 Dec . . He has over-all command of the operational 
units of the various fleets in the U.S. Navy and the operational for- 
ces of the Coast Guards. He is directly responsible to the President. 
Until further notice the main office will remain in the Navy Depart- 
ment. (See Radiogram 1520.) 

South Atlantic ! 

The Attache at Rio reports that U.S. air bases in eastern 
Brazil will be ready for operation at the earliest in the beg inning 
of February. BIRMINGHAM arrived at Rio, U.S. cruiser CINCINNATI 
arrived at Pernambuoo. A submarine warning was issued for the area 
180 miles southwest of Freetown. Our submarines are not involved in 
this. Auxiliary cruiser CIRCASSIA was Informed of the arrival of 
various steamers in Curacao. 

2. Own Situation : 

Radiogram 2121 contains instructions to motor ship PORTLAND 
concerning the request of the Japanese to await Japanese escort ves- 
sels at daybreak 3 miles west of Echlzenzaki, instead of 2 miles west 
of Hinomisakl. Naval Attache, Tokyo is to be notified. 

Information on enemy situation in Radiogram 1143. 

When the crew of ship n l6 n , which has been in the 
Le Verdon roadstead since 30 Dec, arrives in Berlin 
on 3 Jan. 1942, the Naval Staff will consider the re- 
quest made by ship "10" to have the gunnery officer 
of ship "16" assigned to them for a short time to in- 
form them about the experiences on his vessel. On 
the basis of what happened on ship "16", permission 
is granted to the 1st Officer of ship "10" to go to 
the naval yard at Bordeaux in order to procure arma- 



9862 



-309- 



31 Deo. 19*1 CONFIDENTIAL 

ment. Ship "10 n 18 informed that no further requests 
for supplies and equipment are to be made, emergen- 
cies excepted. Communication with various shore bases 
constitutes a threat to security. The vessel must be 
ready to depart on short notice beginning 3 Jan. 



II. Situation Vest Area 

1. Atlantic Coast t 

The entrance to La Pallice vas temporarily closed because 
aerial mines were suspected. According to a report from the 4th 
t Defense Division, British aerial mines are not involved, but rather 
British drift mines attached to parachutes, which were also seen in 
the Oironde near Paulllac. Otherwise nothing to report. 

2. Channel Coast ; 

Ho thing to report. 



III. Worth 3ea, Norway, Arctic Ocean 

1. Worth Sea : 

Enemy Situation : 

At noon radio intelligence intercepted a British aircraft 
report concerning the sighting of five merchant ships near Den Holder; 
during the evening additional messages were intercepted reporting 
sighting and evidently locating some of our FT boats. 

Own Situation : 

Hothing to report. 

2. Horway : 

Enemy Situation : 

An agent's report states that at noon five large and four 
small submarines and several warships were seen off Hordkyn. Accord- 
ing to the opinion of the Admiral, Arctic Coast, confusion with one 
of our convoys is possible and probable. 

Own Situation ; 

Investigation of Kirke Fjord revealed no more enemy forces. 
The 8th Destroyer Flotilla and the 8th PT Boat Flotilla together with 
the LUEDERITZ are bound for Narvik from Tromsoe. The enemy action 
caused the following losses in Vest Fjord: A total of thirty five 
men missing; in the Hord Fjord: Hine killed, fifty four missing, 
and five wounded. 



5862 

-310- 



31 Dec. 194l CONFIDENTIAL 

War Diary, Part C, Vol. Ila contains the report by the Commanding 
Admiral, Norway on the experiences made in the enemy operations of 
26 to 29 Dec, and the conclusions vhlch have been dravn (l/Skl 
30278/41 Gkdos.). 

The Commanding Admiral, Norway requests that submarines newly as- 
signed to his area be provided vith mine laying equipment (see Radio- 
gram 0845). 

The opinion of the Commanding Admiral, Norway on the War Diary of 
submarine U "576" concerning ice conditions and shipping in the 
Arctic Ocean in winter is corrected by the Naval Staff. According 
to previous experience, it is not true that the entrance to the 
White Sea freezes to the point where all shipping traffic must 
cease. Actually traffic can be maintained by strong vessels and 
with the help of icebreakers, so that submarine operations in win- 
ter against Russian supply routes in this area can be considered. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea : 

Purther search for minesweeper M "557" remained fruitless. 

According to instructions from the Naval Staff, Quartermaster Di- 
vision, Shipping and Transport Branch acting on suggestion from 
Group North (see War Diary 28 Dec), Reval is no longer a port of 
debarkation. Transports for the 225th Infantry Division will be 
sent to Riga, and transports to Finland from Stettin to Abo. The 
Army High Command urgently requests that Reval be retained as a 
port of debarkation in spite of the risk, and requests that a de- 
cision be made by the Fuehrer. The decision comes through Captain 
von Puttkamer. The Fuehrer decides that debarkation is to take 
place in Riga. 

The War Diary of the Commander, Minelayer Group COBRA from 16 to 31 
Aug. was forwarded by the Commanding Admiral, Cruisers without com- 
ment. This diary reports on the two reinforcement barrages layed 
off Jumlnda on 20 and 26 Aug. and gives an Indication of the first 
effects of this successful barrage. The Naval Staff, Operations 
Division on 17 Nov. 1941 had expressed itself as follows in this 
connection: 

"The preparation and laying of the Jumlnda mine field can be 
considered a classic example of a well-planned mining operation. 
It represents the climax of mine warfare by the Navy in its fight 
against Russia. The success is to be attributed first of all to 
the commanding officers and men of the units concerned. These ex- 
ecuted the Jumlnda minelaying operations with considerable effort 
in a resolute and business-like manner. As rarely happens, in 
this case the efficacy of a barrage was demonstrated before our 
very eyes, and its devastating effect was evident. The extent of 
its effect cannot yet be fully estimated. However, approximately 
forty Russian merchant and naval vessels sank in the mine field up 
to now, unde** simultaneous attack from the Air Force and coastal 
artillery. Thus it is fulfilling its purpose of blocking the Reval - 
Kronstadt route. 



9862 
-311- 



31 Dec. 19^1 CONFIDENTIAL 

"The planning and laying of the Juminda barrage deserve some 
day to be listed as a special event in the annals of German naval 
warfare . " 

The Chief, Naval Staff raised the question as to who planned the 
Juminda mine field. In reply the Chief, Operations Division called 
attention to the constant close contact, both personal and by tele- 
phone, between the Naval Staff, Mine Warfare and Anti- Submarine 
Section and Group North arising out of the basic instructions con- 
cerning the use of mines in the Baltic theater of war. One of the 
results was the repeated discussion of the problem of keeping our 
measures in pace with Army operations; consequently Group North 
ordered the first actual plans on 6 August, and directed the Com- 
mander, Torpedo Boats to mine the Russian route in the Juminda area 
immediately. Further plans and the laying of the first barrage were 
in the hands of the Commander, Torpedo Boats and the Commander, Mine- 
layer Group COBRA. Later plans to strengthen the barrage were worked 
out partly by the Naval Staff, Operations Division, partly by Group 
North, and partly by the Commander, Torpedo Boats, depending on the 
situation. The Commander, Minelayer Group COBRA, Lt. Comdr. Dr. 
Brill (Reserve), was mainly responsible for executing the barrages. 
Acting on the suggestion of the Chief, Naval Staff, the Fuehrer deco- 
rated Brill with the Knight's Cross of the Iron Cross. 



V. Merchant Shipping ; 

According to the latest Information of the Naval Staff, Intelligence 
Division, during the period from 1 July 1939 to 1 Oct. 19^1, i.e., 
twenty seven months, 308 vessels totalling 1,777,895 BRT were pro- 
duced and delivered in Britain and in the U.S. for Britain. This in- 
cludes thirty nine tankers totalling approximately 300,000 BRT. These 
figures check fairly closely with the over-all tonnage estimated by 
the Naval Staff, Intelligence Division, but are especially important 
because they give additional detailed information, particularly con- 
cerning the centers of ship construction industry in the Clyde and in 
Sunderland. A monthly production of 80,000 to 100,000 BRT must be 
reckoned with in 1942. For a detailed statement with the names of 
the new ships and shipyards covered see No. 36/41 of the "Foreign 
Merchant Shipping" series Issued by the Naval Intelligence Division. 



VI. Submarine Warfare 

1. Enemy Situation ; 

Radio intelligence picked up a message from transmitter 
Valencia concerning sinking of British motor tanker CARDITA in 59° N 
12° 50' W (approximately 90 miles west of Rosemary Bank). One of 
our outbound submarines may be responsible. Radio decoding reports 
that a convoy left Gibraltar in the afternoon in westerly direction. 

2. Own Situation ; 

Report in War Diary, Part B, Vol. IV. 



9862 

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31 Dec. 19^1 CONFIDENTIAL 

VII. Aerial Warfare 

1. British Isles and Vicinity : 

Light reconnaissance activity on south and southwest 
coasts of Britain with nothing particular to report. 

2. Mediterranean Theater ; 

For reports of reconnaissance, see Warfare in the Medi- 
terranean, Enemy Situation. 

3. Eastern Front ; 

Usual operations in support of the Army. 

4. Special Items ; 

For objections raised by Group North to the fact that re- 
connaissance reports of the 3rd Air Force are channelled via Group 
West (Cf. War Diary 30 Dec.) see Radiogram 0939. The matter has 
been rectified by the Naval Staff. 



VIII. Warfare in the Mediterranean 

1. Enemy Situation ; 

Western Mediterranean : 

According to Spanish reports, many ships of unannounced 
types passed Alboran Island on 30 Dec. in easterly direction. 

Central and Eastern Mediterranean : 

On 30 Dec. one torpedo boat and one minelayer were sighted 
12 km. off Bardia and were shelled by a coastal battery. On 31 Dec. 
at 0925 five cruisers or destroyers were east of Bardia and shelled 
the coast. At 0950 Italian air reconnaissance reported one battle- 
ship and two cruisers 15 miles northwest of Marsa Matruh, course 
150°. 

2. Own Situation : 

The 3rd PT Boat Flotilla returned to port of operations 
after completing mining mission. 

3. Situation Italy : 

The torpedoed motor ship CITTA DI MARSALA was brought 
into Argostoli. During an enemy air raid on Tripoli on 29 Dec, 
the steamer ANNA MARIA was partly sunk. The Supply and Transport 
Office at Bardia reports that since 0430 the fortress has been under 
heavy enemy fire. At 1300 the enemy moved up to two kilometers 
from Upper Bardia. At 1530 the attack was brought to a halt. 



9862 
-313- 



31 Dec. 1941 CONFIDENTIAL 

4. Transport of Supplies to tdorfo .Africa ; 

On the occasion of the report of the Chief, Naval Staff 
on 29 Dec, the Fuehrer stated that supplies and reinforcements to 
North Africa by means of Italian transport submarines is of decisive 
importance. The submarines engaged in this operation are to con- 
tinue, and every effort is to be made to increase their numbers, if 
necessary at the expense of repair facilities for German submarines. 
The German Naval Command, Italy and the Commanding Admiral, Subma- 
rines are being informed. The former is ordered to proceed accord- 
ingly in the future (Cf . conference on the situation with the Chief, 
Naval Staff, Paragraph 4). The problem will be dealt with also at 
the conference of the Commander in Chief, Navy and Admiral Rlccardi 
on 14 and 15 Jan. 

Nothing to report concerning transport movements on 31 Dec. 

5. Area Naval Group South ; 

Aegean Sea ; 

From 2145 to 0245 during the night of 30 Dec. enemy air 
raids on Salamis, Eleusis, Kalamaki, and Tatoi. One equipment dump 
of the 23rd Submarine Flotilla in Salamis was burned out. The 
"Siena" squadron entered Suda on 30 Dec. 

The Commanding Admiral, Aegean Sea, with the approval of the Naval 
Staff and Group South, has issued directives pertaining to the in- 
creasing ship traffic and gradually growing anti-submarine activi- 
ty in the Aegean Sea. War Diary, Part C, Vol. IV contains a copy 
of the telegram sent for the information of the Supermarina and 
the German Naval Command, Italy (l/Skl op 2142/4 Gkdos. Chefs.). 

Black Sea ; 

Enemy Situation ; 

According to air reconnaissance, there was no ship traf- 
fic between Eupatoria and Sevastopol. 

Own Situation ; 

Nothing to report. 

According to a report from the Naval Commission, Rumania, the con- 
dition of the four Rumanian destroyers is so bad that adequate re- 
pairs are possible only if material is brought from Germany. Group 
South requests that these destroyers be given a priority equal to 
that for German vessels, since they represent the only forces capa- 
ble of action in the Black Sea. At the moment it is out of the 

uestion to use them for the execution of planned mining operations 

see Radiogram 1620). 



I 



The Naval Staff, Quartermaster Division will take the necessary 
measures. 

The Naval Staff supports requests of Group South (Cf. War Diary 

16 and 28 Dec.) concerning accelerated construction of naval barges 



9e62 

-314- 



31 Dec. 1941 CONFIDENTIAL 

and delivery of PT boats and motor-minesweepers in the spring 
(Directive I op 30038/41 Gkdos.). Copy in War Diary, Part C, 
Vol. XIV. 

The Naval Staff also gives support to the request of Group South 
to make up for the fact that the production of Rumanian submarines 
was held up due to delayed deliveries and various changes by send- 
ing these boats on operations as early in 1942 as possible. The 
Naval Staff also supports the transfer of the Finnish submarine to 
the Black Sea if the boat is suited for the purpose. War Diary, 
Part C, Vol. XIV contains a copy of the directive to the Naval Staff, 
Quartermaster Division (l/Skl 30142/41 Gkdos.). 

6. Situation Turkey : 

According to a report from the Naval Attache, Istanbul, 
Anglo-Turkish military cooperation exists only in the sense that 
the Turks take what they can get, but are prepared to make returns 
only to a very small extent. A copy of the report of the Attache 
as requested by the Naval Staff through the Naval Attache Section 
is in War Diary, Part C, Vol. XIV (l/Skl 30142/41 Gkdos.). 



IX. Situati o n Ea st Asia 

1. Enemy Situation : 

Military Attache, Bangkok reports that General Wavell has 
been assigned to command the Burma front. Reinforcements have ar- 
rived in Malaya from India. Heavy Japanese air attacks took place 
at Medan (Sumatra), as veil as on Celebes and in New Guinea. 
Strength of British troops in northern Malaya estimated at 50,000 
men. Aerial traffic from Britain to Australia and New Zealand is 
to continue on a different route. 

2. Situation Japan : 

The U.S. island Jolo between Borneo and the Philippines 
was occupied. According to a report from the Japanese Headquarters, 
enemy submarines have begun to block the approaches to the Hawaiian 
Islands. In the period from 22 to 28 Dec, the Japanese Air Force 
destroyed a total of fifty six enemy planes near Borneo, in the 
South China Sea, and in the Sulu and Celebes Seas. It is probable 
that Japanese vessels are near Alaska. 



X. Army Situation 

1. Russian Front : 

Southern Army Group : 

Attack of the LIV Army Corps near Sevastopol advanced only 
slowly. Rumanian mobile units were preparing to counterattack with 



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parts of the 46th Infantry Division. Because of bad weather> there 
were only smaller skirmishes on the 1st Panzer Army front. At the 
sectors of both the 17th and the 6th Armies enemy attacks were re- 
pulsed. 

Central Army Group : 

An enemy penetration at the junction of the Army Groups 
was cut off. Enemy attacks were repulsed at Tim, Droskovo, and 
Byelev. At the 29oth Infantry Division many casualties due to 
freezing. Severe enemy attacks along the whole of the Moscow front. 
All but two penetrations were repulsed. 

Northern Army Group ; 

Counterattacks of the 6lst Infantry Division not yet ter- 
minated. Otherwise the situation remains unchanged. 

2. Finnish and Norwegian Front : 
Nothing to report. 

3. North Africa : 

The enemy withdrew en masse in the Saunnu-Attelat area. 
A Polish brigade was brought up closer to the Agedabia position. 
The Panzer Group conducted increased reconnaissance operations in 
the direction of Saunnu-Attelat. After a three-hour artillery bar- 
rage, the enemy attacked Bardia fortress, supported by air and 
naval forces. In view of its few defensive forces, the fall of 
the fortress must be counted on. In the period from 19 Nov. to 
31 Dec, a total of 1,246 enemy tanks and armored cars and 271 
planes were destroyed. The enemy is paying dearly for his success. 



#♦♦*********+#*********♦* 



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CONFIDENTIAL 
GLOSSARY FOR DECEMBER 19^1 



A B CD Powers 

This refers to America, Britain, China, and the Dutch East Indies 

Barbarossa 

Cover word for the invasion of Russia in June 1941. 

Bernardo 

Cover name for a secret German submarine supply base at Vigo, 
Spain . 

Blau 16 

A reference point on route "80" (see below) at 57° 18. 4 • N; 
21° 16.7' E. 

Blau 18 A 

A reference point on route "80" (see below) between Memel and 
Riga. 

C mine 

See EMC mine. 

Deutsche Werft 

A German shipbuilding company in Kiel. 

DNB 

Deutsches Nachrichten Bureau, the official German news agency. 

Domei 

Japanese news agency. 

EMC mine 

Standard mine Type C; a contact mine against surface vessels. 

Etappe 

Secret German naval organization for providing German naval 
units with information and supplies from foreign bases. 

Europapress 

Semi-official German news agency. 

Fab XI 

~~~ A" combination magnetic and acoustic firing device for mines. 

Gat a 

Cover name for secret German submarine supply base in Spanish 
waters at 36° 32.25' N, 6° 15.7' W (off Cadiz, Spain). 

Kuhlemeyer car 

A specially constructed platform car, suitable for accommodating 
very heavy loads. Such cars were built by the Kuhlemeyer Manu- 
facturing Company. 

LM 

Parachute mine. 

Type blue: With regular polarity magnetic firing device. 
Type red: With reversed polarity magnetic firing device. 
Type green: With acoustic firing device; has stripping pre- 
vention equipment (GE) and period delay mech- 
anism (Z.K.). 



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MarkXT/jmlne 

A British contact mine consisting of a center belt 8 inches «Ua 
and tvo hemispheres 40 inches in diameter, vhich are velded to 
the former. 

Mark XVI nine 

A British contact mine similar to the Mark XIV mine. It consists 
of a center belt 4£ inches wide and tvo hemispheres 40 inches in 
diameter, vhich are velded to the former. 

KFF (Marinefaehrprahm) 

Multi-purpose vessel similar to the American LCT. Had an average 
displacement of J00 tons. Used as ammunition carrier (Kunitions- 
faehrprahm), landing craft, naval transport, artillery transport 
"barge (Artllleriefaehrprahm), small troop transport, etc. 

Nevs Analysis "Foreign Navies " (Nachrichtenausvertung "Fremde Marinen'} 
A daily analysis of foreign newspaper reports concerning foreign 
naval nevs, compiled by the Naval Staff, Intelligence Division 
(3/Skl). 

Nevs Series "Foreign Merchant Shipping " 

A series of condensed data concerning foreign merchant shipping; 
compiled and published periodically by the Naval Staff, Intelli- 
gence Division (3/Skl). 

PSLAGOS 

A German supply and repair ship stationed in Narvik, Norvay. 

Political Reviev 

A daily reviev of political developments abroad published by the 
Naval Staff, Intelligence Division (3/Skl). 

Route "Anton " (Weg Anton) 

A certain route to be taken by enemy ships taken as prizes by the 
Germans, vhen being brought into German or German occupied ports. 
Geographical borders of route "Anton": The French coast to 47° 
30' N; 470 30' N, 29° W; 4^° N, 40° W; 37° N, 40° V; contin- 
ued on 37° N; south and east chop is submarine operations zone. 

Route "80 " (Weg 80) 

Mine -free German deep-vater shipping route in the Baltic Sea from 
Svinemuende to Riga. 

Route "Lila " (Weg Lila) 

Mine -free German shipping route to the vest of route "Rosa" (see 
belov), branching off "Rosa" near Ostende and rejoining it near 
Calais . 

Route "Rosa " (Veg Rosa) 

Mine -free German coastal shipping route through the Channel, be- 
ginning off Blankenberghe, Belgium and ending off the island of 
Ouessant vest of Brest, France. 

Seeloeve 

Cover name for the planned invasion of England. 



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Specht (Punkt Specht) 

A" reference point for the German blockade-runner SPREEWALD home- 
ward bound from Japan, located at 7° 30' N, 39° 35' W (off the 
northern coast "of South America). 

Staatsrat 

An honorary title. 

Supermarina 

The Italian Admiralty. 

Tanks II. Ill, IV (Pz Kpfw II, III, IV) 

Type II: Eight tank, from 11.5 to 13.2 tons depending on model, 

Type III: Medium tank, approximately 24.6 tons. 

Type IV: Medium tank, 26 tons. 

TMB mine 

Torpedo mine Type B, a magnetic ground mine. 

Todt Organization (O.T.) 

A construction organization (named for the founder), which built 
the German superhighways, the Vest Wall, and the Atlantic forti- 
fications. It employed domestic and foreign labor on military 
projects in Germany as well as outside Germany. 



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