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The German Eisenach (4,423 tons), which was scuttled on the 31st March at Punta Areans, Costa Rica, has been refloated.

Two Italian tankers, the Anteo (6,772 tons) and the Rapallo (5,812 tons), have been seized by the Colombian Government at Cartagena. An agreement has been signed by which eight Italian ships (totalling 40,000 tons) now in Brazilian harbours are transferred to Brazil.

MILITARY SITUATION.

(An outline map showing Axis operations against Russia is included in this Résumé as an inset.)

Russo-German Campaign.

Leningrad Sector.

20. It was recently learnt that the German thrust east of Leningrad caused the Russians no anxiety, as they considered the German supply situation in this area to be very insecure. The Russian report of the recapture of Tikhvin, some 120 miles east of Leningrad, is thus no surprise. It, moreover, is of great importance, as it leads to the possibility of reopening rail communication between Leningrad and Vologda, and also of denying to the Germans the possibility of linking up with Finnish forces on the River Svir.

Central Sector.

forced

21. On the 8th December the German official communiqué contained the phrase "from now onwards the continuation of operations and the manner in which they will be conducted will depend upon the beginning of winter on the Eastern front, where only local operations are now taking place." These words. taken in conjunction with other evidence, strongly suggest a stabilisation on most of the Russian front. There are many reasons why the Germans should have decided upon this course: intense cold, bad road conditions, maintenance difficulties, lack of reserves and the need for finding suitable winter quarters for their troops; last, but no least, the stubborn and courageous resistance of the Russians. There is also just a possibility that only by stabilisation would the Germans be able to find troops to resume the offensive towards Rostov.

22.

It is reported that a large part of the Russian reserves in the Moscow sector have not been employed, and that the armament, equipment and training of the Russian troops in this sector are good.

Taganrog Sector.

23. Fierce fighting continues around and to the north of Taganrog, where the Russians are maintaining the initiative. The town itself is still in German hands.

Crimea.

24. Operations against Sevastopol continue, but the situation there is described as satisfactory. On the Kerch Peninsula the Germans are said to be digging in and they do not apparently intend to cross the Kerch Straits for the present.

This situation may be due to the Russian pressure west of Rostov. It is also reported that certain German units in the Crimea have been replaced by Roumanians.

Conclusions.

25. The picture to-day is distinctly heartening as there are definite pointers that the serious situation which till now existed, especially on the Central Moscow front, has been largely overcome by the Russians, and that the Germans may well be forced to stabilise their front.

In the South, the Russsian ability to follow up rapidly their initial success at Rostov has been a serious blow to the Germans, who have not been able to make - any counter-attacks up to the present.

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