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26. Practically all the Axis forces in Cyrenaica which were fit for battle (the greater part of two Italian motorised divisions, two infantry divisions and the remnants of the three Axis armoured divisions) faced the 8th Army in the enemy's new position. In spite of this display of strength, it was believed that General Rommel was contemplating a further withdrawal, probably to the line. Mekili-Derna, as soon as his preparations were complete. General Ritchie's aim was therefore twofold: to bring the enemy to battle and destroy the greatest possible part of his forces before he could withdraw to the difficult country further west and to forestall him on the Mekili-Derna line.

27. By the 11th December, while a New Zealand formation was in contact with the enemy's main position some 6 miles east of Gazala, Indian troops, supported by "I" tanks, were ordered to by-pass Gazala to the South and advance North-West across the enemy's line of withdrawal. Meanwhile, mixed mobile columns of tanks, armoured cars, artillery and lorried infantry were directed in a wide sweep around the enemy's southern flank towards Derna, Mekili and Tmimi.

28. Throughout the 12th and 13th December, while the New Zealanders made steady inroads into the Gazala position, a series of heavy counter-attacks were launched on the Indian formations advancing against the enemy's centre. These were repulsed with the loss to the enemy of 16 tanks. On the following day further tank counter-attacks in this area were driven off. Progress was, however, slow.

On the evening of the 15th December the situation was confused, but appeared to be developing favourably. Moreover, it was apparent that, whatever had been General Rommel's original intention, the bulk of his force was now committed to battle on the Gazala line. An armoured force was accordingly despatched around the enemy's southern flank directed upon Bir Halegh El Eleba and Tmimi. By the 16th December, part of this force was astride the Gazala- Derna road at Tmimi, while the remainder was engaging the enemy north of the Trigh El Abd from the rear. Details of this engagement are not available, but it is known that four German tanks were destroyed.

30. During the night of the 16th/17th December the anticipated with- drawal began. Under cover of darkness a force of tanks and M.T., probably the bulk of the remnants of the two German armoured divisions, succeeded in slipping away from the battle field and is thought to have by-passed Tmimi and made its way to the vicinity of Derna. The remainder of the enemy forces stayed in their position until the morning of the 17th December, when they, too, began to with- draw. During the 17th December our troops pursued the retreating enemy for a distance of over 30 miles. By the late afternoon our armoured forces, with Indian troops in close support, had crossed the Mekili-Tmimi road on a wide front with lighter mobile forces thrown out widely towards Mekili and to the North-West.

31. Meanwhile. in the frontier area, the enemy is still holding out in the Halfaya position and at Bardia, where he is subjected to ever-increasing pressure from the South African investing force. The third enemy strong point at Ghirba, north of Sidi Omar, surrendered on the 11th December, and there seems little doubt that the supply situation of the remaining garrisons in this area is critical.

To sum up

32. A great deal depends on the degree of confusion which can be created in the enemy forces now retiring from the Gazala position. The weather is bad, the enemy is to a great extent highly mobile. Nevertheless, whatever may be General Rommel's intention on reaching Derna, he is unlikely to have more than a much disorganised force at his disposal.

The Far East.

General.

33. In the light of events during the past week it seems probable that the Japanese plan was to seize as many U.S.A. islands as possible, so as to interrupt communications between America and the Philippines. To achieve this aim it was essential to knock out, partially or temporarily, the main U.S. Pacific base

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