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General Review.

NAVAL SITUATION.

There has been considerable naval activity in the Mediterranean, where the fleet co-operated in the capture of Bardia and has been occupied in the support and supply of our land forces.

Shipping losses are considerably below the average and enemy minelaying has been slight. A German 8-inch cruiser has docked at Brest.

Home Waters.

2. During the period strong units of the Home Fleet have been covering convoys and acting in support of minelaying operations.

On the 3rd and 4th January H.M. Destroyers Kelvin and Kipling searched the northern part of the Bay of Biscay for an enemy tanker and Italian U-boat which had been reported by aircraft, but sighted nothing. Another unproductive search for a merchant ship reported off Gris Nez was made by two destroyers on the night of the 6th/7th January.

H.M. Sloop Lowestoft was mined in the Thames Estuary on the 5th January and towed into harbour; two of her crew were wounded.

H.M. Destroyers Mashona and Sikh were in collision on the 6th January and both were considerably damaged.

Mediterranean.

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H.M.S. Terror carried out a bombardment of Bardia with the assistance of naval aircraft on the evening of the 2nd January as a prelude to the assault. On the 3rd January H.M. Ships Warspite, Valiant, Barham, Illustrious and 10 destroyers carried out a concentrated attack on enemy support troops, tanks, motor transport and coastal defences. Bombardment had to cease after 1600 owing to the position of our troops. Several ineffective air attacks were made on the Fleet and the only casualties were in H.M.S. Aphis, which had a few wounded by a near bomb miss.

Prior to the capture, the enemy ran 200-300 ton motor schooners from Bardia to Tobruk by night, some of which were intercepted by our Destroyers. One of these was sunk by Waterhen on the 26th December; Voyager captured another on the 29th, which had eight British prisoners of war on board; and Dainty captured two more on the 31st.

4. H.M. Ships Terror, Aphis and Ladybird, and H.M. Australian destroyers covered the passage of supply ships from Alexandria to Sollum during the latter part of December. Over 3,000 tons of water was pumped ashore for the Army, and 18,000 prisoners were evacuated from Mersa Matruh. The water situation was critical until the 23rd December, when water-barges, which had been weather-bound at Mersa Matruh, arrived in the Gulf of Sollum. Until then H.M.S. Protector landed water, and gun-boats pumped water ashore from H.M. Ships Terror, Fiona, Chakla and petrol carrier Petronella, which was just sufficient to keep the Army supplied. After the 23rd storage ashore was increased and the situation improved. Whilst the Army can provide stores, &c., by road, additional supplies by sea have been and still remain essential.

Torpedo bombers made several unsuccessful attacks on our ships at Sollum at dawn and dusk. One torpedo bomber is believed to have been shot down.

East Africa.

5. H.M.S. Chantala (Armed Boarding vessel) bombarded Bulhar (British) Somaliland) on the morning of the 4th January and demolished the Resident's house. She was attacked by aircraft but suffered no damage.

Anti-Submarine Operations.

On the 6th January a Sunderland aircraft depth-charged a submarine 200 miles west of the Butt of Lewis with the result that a large piece of metal was

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