-2 -                            
                                                            
 
                                                            
 
 
                                                            
managed to repair more 
      tanks than we considered possible, or received fresh tanks via 
      TRIPOLI, or both). His object was probably to anticipate a resumption 
      of our offensive believing this to be more imminent than in fact 
      it was. At all events, for the present, he has regained the tactical 
                           initiative.                      
                                                            
 
                                                            
 
 
                                                            
                                                            
                          RUSSIA.                           
                                                            
                                                            
       SIOE="-1" FACE="Courier New"> After slowing down last week, 
      the Russian offensive has gained fresh impetus, on almost the 
      whole front the Russian Army is renewing its pressure and finding 
      the weak spots. The new attack South of LAKE ILMEN may lead to 
      the disengagement of LENINGRAD. The converging movement West 
      of ROHEV and West of KALUGA is resulting if not in an encirclement 
      at least in a withdrawal of the German forces in the whole of 
      the MOJAISK SALIENT, and the offensive recently launched on a 
      wide front from the DONETS BASIN should play an important part 
      in the process of preventing the enemy from stabilizing his line 
      and withdrawing divisions for rest and refit. The battle is in 
      fact going well for the Russian Army everywhere, except in the 
      CRIMEA - a front which retains a special importance from its 
         position near the German route to the CAUCASUS.    
                                                            
 
                                                            
 
 
                                                            
                                                            
                         FAR EAST.                          
                                                            
                                                            
       SIOE="-1" FACE="Courier New"> On a series of fronts which widen 
      in extent every week the Japanese are taking advantage of their 
      opportunities "while the going is good". During this 
      early phase of the war they have not only ample forces to attack 
      in nearly all directions simultaneously but also the shipping 
      and freedom of the seas to transport these forces to the various 
      fronts. (Their comparatively small air strength is one of their 
      few limitations at present). In the PHILIPPINES the UNITED STATES 
      troops though in danger of shortages of food and ammunit %ion were 
      giving them such a tough nut to crack that they are making but 
      little progress. Similarly in MALAYA, where the Japanese possess 
      air superiority and have thrown in a crack Guards Division, the 
      British - Indian and Australian Units already in action have 
      been joined by fresh British troops and though continually outnumbered 
      and outflanked, are offering a barrier of increasing strength. 
      Nevertheless, if the front line is forced any further back, it 
      may prove impracticable to maintain resistance on the mainland 
      and a withdrawal to SINGAPORE ISLAND may become necessary. In 
      BURMA the center of attack has shifted to MOUILMEIN against which 
      the Japanese can bring two divisions with a further two against 
      MANDALAY threatening the BURMA ROAD, China's last supply route. 
      Moreover, on this front the enemy can reinforce more easily than 
      we can. They have been able to move against NEW BRITAIN and NEW 
      IRELAND without meeting enough opposition to stop them. Indeed 
      on a short view the Japanese General Staff must be having aless 
           anxious time than their partners in BERLIN.      
                                                            
 
                                                            
 
 
                                                            
                                                            
                           EUROPE                           
                                                            
                                                            
       SIOE="-1" FACE="Courier New">. German divisions in FRANCE now 
      estimated at 23 and in BALKANS 11 or 12. There is evidence that 
      the DANUBE is frozen as far east as RUSTCHUCK and that navigation 
              above this town is no longer possible.