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11.

Portugal would almost certainly become involved in any Axis move in Spain. The enemy being certain to seize bases on the Atlantic coast of Portugal and if possible also in the Azores (unless forestalled) to further the U-boat blockade.

CONCLUSIONS.

12.

We anticipate the following moves on the part of the Axis Powers:-

(a) Continued preparations for a sea-borne invasion

of Great Britain as an ever present threat to immobilise our forces. This threat is likely to remain at any rate so long as Germany retains numerical air superiority, for implementation if and when conditions become suitable.

Failure to secure air superiority and some

measure of control at sea, and the increased strength of this country render invasion hazardous. Weather conditions during the

winter will add to these risks.

(b) Intensified attempts at blockade by sea, and

air attacks against our shipping and territory, with the object of strangling our trade and demoralising the population by every possible

means.

(c) Early Axis action with the object of gaining

control in the Mediterranean area, taking the form of:-

(i) intensification of the Italian attack in

Egypt through Libya with German help, coupled possibly with an attack through the Sudan.

(ii) further German penetration south-east through

the Balkans, together with Italian

occupation of Greece. An advance through Asia Minor is unlikely until the late

spring of 1941 owing to climatic conditions. (d) Sustained political pressure on Spain to enter

the war.

(e) Immediate intensification of Axis propaganda

and subversive activity throughout the Middle East.

Richmond Terrace, S.W.1.,

10TH OCTOBER, 1940,

(Signed) V. CAVENDISH BENTINCK.

J.H. GODFREY.

F.G. BEAUMONT-NESBITT.

A.R. BOYLE.

N.F. HALL.

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