CAB80-25 — Page 213

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By Naval Aircraft.

From the beginning of the war to the 31st December, 1940, 52 aircraft were certainly and 10 probably destroyed, and 49 were damaged by naval aircraft.

MILITARY SITUATION.

Italy.

23. There is still no reliable evidence of the presence in Italy of organized units of the German Army.

Balkan States.

Roumania.

24. The total of German divisions in Roumania is now believed to be eight, an increase of three in the last three weeks. This total includes at least one armoured and two motorised divisions. During the past week there has been no evidence of any further increase, but several reports state that German troops have moved from Western to Eastern Roumania.

Bulgaria.

25. It is reported that a German survey of road and rail facilities in South- Western Bulgaria has shown that transport difficulties would render impracticable any large-scale attacks on Greece from this direction. German experts are said. to have decided that tanks and mechanized troops would not be able to negotiate the Kresna and Predel passes, that the Bulgarian roads generally would be unable to carry heavy traffic and that any large-scale transport of German troops would necessitate the employment of the entire Bulgarian rolling-stock.

Albania

26. After a lull of some two weeks the Greeks have resumed the offensive in the south and have captured Kelcyre, as well as a number of villages north-east of that place. The road thence to Berat has been cut and further progress has been made towards Tepelene. A quantity of prisoners and material, including four tanks, has been taken.

The

Weather conditions remain extremely difficult and, though a thaw has begun in certain areas, snow continues to fall on the greater part of the front. Skumbi and Devoli rivers are reported to be flooding as a result of the partial thaw and, though this will in all probability hinder the Italians rather more than the Greeks, it will not simplify the task of supplying the Greek Army along very difficult and inadequate lines of communication.

Italian dissatisfaction with the progress of the campaign is emphasised by the replacement of General Soddu by General Cavallero, who also holds the appointment of Chief of Staff of the Armed Forces. General Cavallero is believed to be Fascist in sympathy, but is a "dark horse" compared with the two reputable officers, Marshal Badoglio and General Soddu, who preceded him. This move is probably a sop to the leaders of the Fascist Party who have criticised the conduct of the campaign, but it remains to be seen whether any improvement will ensue if, as is suspected, General Cavallero is to be the mouthpiece for orders issued from Italy.

Bulgaria.

27. During the first week of January the country was deep in mud after a heavy thaw; since then frost has set in again in the north. Although large numbers of reservists have been dismissed others are still being called up, and the total number of men under arms is now estimated at about 220,000. These continual call-ups and dismissals are creating great discontent.

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