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1941. This is due partly to a seasonal decline in the exports from French West Africa, partly to our interference with Vichy shipping in the Far Eastern route and partly to fuel shortage. Services between unoccupied France and French North Africa have been maintained, the total tonnage remaining approximately the same, though the number of ships employed now is only about half as many as in 1940. At least 20 of the British, Allied and Danish ships held by the Vichy authorities after the armistice are now employed on this route; they total some 50,500 tons. Convoys have been introduced between French North Africa and France, but otherwise activity seems to be much as usual.

Thirty-one Vichy ships, totalling approximately 137,000 tons, are in Far Eastern waters, eleven of them passenger liners. None of them is reported to have sailed for France since Japan entered the war.

Twelve merchant ships and two tankers, totalling 150,746 tons, were seized in United States ports by U.S. authorities on the 13th December.

MILITARY SITUATION.

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

Russo-German Campaign.

Central sector.

19. The Russians have had marked successes both North and South of Moscow, i.e., from Klin and Tula areas, where the Germans have been forced back with heavy casualties and much loss of equipment. Between these two sectors the Germans have made a slight withdrawal in the Zvenigorod area (due west of Moscow).

20. The depth of the withdrawal in the Tula area between Ser Prudy and Urusovo is as much as some 60 miles.

Ukraine.

21. There has been no change. Despite heavy casualties the Germans continue to hold the line of the River Mius and possibly Taganrog.

Crimea.

22. The Russians still hold Sevastopol. No German attempt has been made to cross the Kerch Strait.

Conclusions.

The

23. After attempting for over two months to capture Moscow the Germans apparently decided to stabilise and withdraw to a shorter line suitable for defence during the winter. Their unsuccessful offensives had, however, so much reduced their fighting capacity that the Russians have been able to launch and press home heavy counter-attacks along nearly the whole of the Central sector. Russians now hold the initiative and have removed, at any rate for the winter, the threat to Moscow and the railway to Riazhsk and Voronezh. It is too early to estimate what the outcome of this fighting will be, but the Germans may well have to revise their original intentions as to their winter line.

Libya.

24. Last week's Résumé covered the period up to the 9th December, by which date El Adem had been occupied, but the enemy was still resisting strongly west of Tobruk.

25. On the 10th December the enemy evacuated Acroma and it became apparent that a general withdrawal on Gazala, 35 miles west of Tobruk, was taking place. The enemy's new line extended from Gazala for some 25 miles southward. His main position was about Gazala with a tank detachment astride the Trigh El Abd. The remaining Axis armoured forces, by this time reduced to about 50 tanks and some lorried infantry, were disposed in the centre of his line, some 12 miles south of Gazala,

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