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The whale factory ship Jan Wellem, 11,776 tons, and the Lippe, 7,849 tons. which were sunk at Narvik last April, are reported to have been salved and to have recently left that port.

As the result of an aerial reconnaissance of Cherbourg, which was made on the 29th December, the tanker Brake, 9,925 tons, was identified. She had left Vigo, where she had taken refuge at the outbreak of war, on the 11th December, and had been reported from Ferrol the following day.

The latest report on ice conditions in Scandinavia up to the 7th January gives the northern Swedish and Finnish ports in the Gulf of Bothnia as closed with thick ice, though Hernösand and the southern ports are being kept open by icebreakers. In Denmark all the large fiords are frozen up and no longer navigable. The Danish press says that their icebreakers are out of action for want of coal.

Italian.

15. War materials are being carried by small Italian and Yugoslav ships, mostly auxiliary sailing ships, the main route being from Trieste to San Giovanni di Medua, on the coast south of Scutari.

Four dhows, which had sailed from Dahlak Island, were intercepted in the Red Sea by one of H.M. Ships as they were suspected of trading with Italian East Africa.

Aircraft Casualties from Naval Gunfire.

16. From the start of the war until the 31st December, 1940, 193 enemy aircraft were certainly and 91 probably destroyed, and 105 were damaged. The majority of these casualties were inflicted by H.M. Ships, but naval-manned A.A. guns ashore destroyed 14, and D.E.M.S. and fishing vessels certainly destroyed 17, with a further 10 probable and 24 damaged. Dutch, Norwegian and Polish warships accounted for 11 certain, 2 probable and 7 damaged.

British Contraband Control.

17. During the month of December 2,483 tons of cargo destined for the enemy were seized in prize. The main items were 1,442 tons of food products and beverages, which were mostly from French and Portuguese ships, 590 tons of chemical and allied products, almost entirely from Japanese ships, and 372 tons of non-metallic minerals from United States, French and Swedish ships.

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The Balkan States.

Albania.

MILITARY SITUATION.

18. The exceptionally severe winter, making movement difficult and aggravating the already serious problem of supplies, coupled with the steady flow of Italian reinforcements, has for the time being brought the Greek advance almost to a standstill. The Greeks, however, continue to hold the initiative, have successfully repelled local counter-attacks, have gained ground at various points, and taken a number of prisoners and valuable war material.

The total number of Italian divisions in Albania is now 19.

Hungary.

19. The rumour broadcast by the B.B.C. on the 30th December last regarding the mobilisation of the Hungarian army is officially stated to be completely untrue, the only increase in effectives being that due to the normal intake of recruits for training.

20. The report that a German Military Mission was being sent to Hungary to reorganise the Hungarian army on the lines of the Roumanian army is categorically denied in Hungarian military circles. It is believed that the German

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