Chief of the Air Force General Staff—joined the conferences.

Fuehrer—discussed the Italian situation in the Mediterranean.

He stated that the loss of North Africa could be withstood in the military sense but must have a strong psychological effect on Italy.

Britain can hold a pistol to Italy's head and force her either to make peace and retain everything or after the loss of North Africa to be bombarded. This would be to our disadvantage. British forces in the Mediterranean area will not be tied down. We ourselves have a weak base there through Southern France. The British have the free use of a dozen divisions and can employ them most dangerously, i.e. in Syria.

We must make every effort to prevent this. Italy must be given support.

We are already doing this in Marita. We must, however, attempt to render effective assistance in North Africa.

The Italians are of the opinion that they can put up a defense now only at Tripoli. This is not feasible. The Air Force cannot operate there. Therefore the position cannot be held. There must be some larger protection zone. Our blocking units can also be effective only in larger protection zones.

He discussed the connection between successes, even defensive successes there and Balkan events, possibly a peaceful settlement in the Balkans.

What can be done?

Land units will arrive late even if not too late. Graziani must receive some kind of support. Therefore the Air Force must be employed, if possible with Stuka groups, with jumping-off bases and homefields in Lybia.