The Australian historian was critical of Brigadier Gatehouse and his timidity in the fight on 1 December 1941. Certainly, if Gatehouse's armored brigade had attacked, they would have taken losses. The historian thought that constantly yielding the battlefield to the Germans was not a way to win a battle. The German armored divisions were free to concentrate against the British infantry, particularly the New Zealand Division. We also notice that the Germans were hard-pressed to pull together a force to fight the battle at the Cauldron. The 90th Light Division was reduced to organizing a battalion from soldiers freed from a New Zealand prisoner of war camp. They were not able to fight at this point in the battle. The 115th Motorized Infantry Regiment was attempting to regroup after being beaten in battle at Sidi Rezegh. The 21st Armored Division was also in poor shape. They were said to be taking a very pessimistic view and were "sending alarming reports". The German Africa Corps did have the advantage of a strong medium and heavy artillery force. Besides the artillery, the main German strength were the 8th Armored Regiment with some forty tanks, "the 2nd Machine Gun Battalion, and the 15th Motorcycle Battalion." Before the British armored brigade had joined the battle, this force had fought a hard fight with a New Zealand battalion and the 6th Field Regiment. While the Germans had perhaps 24 Pzkw III and Pzkw IV tanks, Gatehouse's brigade had 115 tanks. But the British tanks had pulled back, leaving the Germans to continue to batter the New Zealand Division.
The Germans planned an attack at 4:30pm on the New Zealand artillery, which had planned to withdraw at 5:30pm. To help the artillery were five Matildas from the 44th RTR and a few Valentines from the 8th RTR. This was a close-fought battle with artillery firing at point-blank range. Some guns were abandoned at the withdrawal. The Germans were very tired so they rested when the British and New Zealanders withdrew. They were admonished by General Cruewell for stopping, because he wanted them to move on Zaafran. He ordered them to take Zaafran at "daybreak".
At 6:45pm, the remnants of the New Zealand Division formed up into a traveling order and then drove east and south their was back to Egypt to rest and rebuild. On the way, they had traveled to Bir Gibni by 3:30am on 2 December 1941. The 1st South African Brigade was in position at Taieb el Esem. The 4th Armoured Brigade was in a night leaguer, as they wre wont to do. This night, they were at Bir Berraneb. This was a far as 24 miles from Ed Duda. The attempted relief of Tobruk had failed.
Rommel had not succeeded in restoring the situation to what it had been prior to the start of Operation Crusader. The Tobruk force, mainly 70th Division, was still at Ed Duda. British forces on the Egyptian frontier were attacking the German and Italian positions at Salum, Bardia, and the "Omars" (such as Sidi Omar). There was also a strong British force on the Trigh el Abd that was a potential threat. The outcome would depend as much on British moves as on anything Rommel would decide to do. This is based on the account in Vol.III of the Australian Official History.
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