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or moved from one port to another. It is reported from Tampico that some Italian tankers now in Gulf ports will probably be transferred to the Mexican Govern- ment to replace those which are at present being built in Italy for Mexico.

56. The Madda, 5,181 tons, which was reported aground on the southern part of Teneriffe, arrived in port there on the 16th June. The Burano, 4,450 tons, arrived at Teneriffe on the 17th June from Aruba with 5,300 tons of crude oil.

Enemy Naval Intelligence.

German.

Main Units.

An air reconnaissance on the 24th June reported a large warship, described as a battleship, outside Kiel Fjord, and on the same day the uncompleted battleship Tirpitz and the pocket battleship Admiral Scheer were observed in the Bauhaven at Wilhelmshaven. Two destroyers were also seen in dock.

58. There has been considerable activity by German E-boats operating from Boulogne in the current week.

Submarines.

59. German submarines have been very active in the period under review. From the 21st June to the 24th June there have been six or seven at work in an area which includes the Western Approaches, the Bay of Biscay, off Finisterre and the Portuguese Coast. They have extended their operations as far south as Lisbon and into the western parts of the Channel.

60. Including those on passage out and home, northabout, there has been an average of eleven or twelve German submarines at sea.

Italian.

61. There has been little change in the dispositions of the Italian main units since the outbreak of war, except that two 6-inch cruisers, Garibaldi and Abruzzi, which were formerly at Taranto, are probably now at Tobruk. Three battleships of the Cavour class, four cruisers and ten destroyers were observed south of Sardinia steering east on the evening of the 23rd June.

62. The Italian submarine which took refuge in Ceuta is now said to have left. Reports of others off Cape Bougeroni and off Algiers have been received, but there is insufficient data to give any general description of their disposition.

U.S.S.R. Naval Intelligence.

63. Various reports have been received in the last ten days that the hull of a German cruiser of the Blücher class, probably the ex-Lützow, had been seen in tow off the coast of Estonia and was now believed to be in Leningrad. The assumption is that the vessel has been sold to the U.S.S.R. as part of the commercial agreement between the two countries.

64. Circumstantial evidence has now been provided by the Naval Attaché in Moscow indicating that a vessel of the Blücher type, partially constructed, is in the Baltic Shipbuilding Yard at Leningrad. Two turrets are in place, and the supports of two others are built. The new Russian cruisers of the Kirov class have so far only carried three turrets.

MILITARY SITUATION.

Western Front.

Germany.

65. The armistice between Germany and France was signed on the 22nd June, and came into force on the 25th June, when an armistice between Italy and France had also been signed.

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