1 December 1940

London: Churchill to the Chancellor of the Exchequer.
The straits to which we are being reduced by Irish action [at denial of the Southern Irish ports] compel a reconsideration of the subsidies [to Ireland]. Surely we ought to use this money to build more ships or buy more from the US.
... let me know how these subsidies can be terminated, and what retaliatory measures the Irish may take.

The treaty granting Ireland its independence was signed in 1921. An Annex to the treaty allowed the British military to maintain three facilities in Ireland, i.e., (1) the Dockyard Port at Berehaven in Bantry Bay, County Cork, (2) Queenstown (renamed Cobh by the Irish) in County Cork, and (3) Lough Swilly in County Donegal. The British finally returned these ports to the Irish in 1938 but they wanted to reoccupy them after the war started. The Irish would have none of it for two important reasons; (1) it had taken the Irish 768 years to get the British out and there were no guarantees that they would leave again if they were permitted to come in again and use the ports, and (2) ceding the use of the ports was against neutrality laws and the Irish would be fair game for an attack by the Germans, i.e., they would be dragged into the war against their will.

Operation NORDSEETOUR begins with the departure of the heavy cruiser Admiral Hipper on her first Atlantic mission.

ALBANIA: The Greek army reaches Pogradec on Lake Ohrida. Upon arriving there Dimitry Statharos notes the contrast between the war taking place on the Albanian side of the lake and the peace which the Serbs enjoy on the other side. He notes that he could see through his field glasses the Serbians living in peace on the other side. (Steven Statharos)

ROMANIA: Severe fighting is taking place in the Ploesti oilfields. The Fascist Iron Guards and the army are in conflict. A message from Budapest states that Premier Antonescu seems to have lost all authority and that Hitler may be forced to take control of the country to restore order.

COMMONWEALTH OF THE PHILIPPINES: Station A personnel evacuated from Shanghai to Corregidor. At least one battalion of the 4^th Marines was moved to Cavite at the same time, though one battalion may have remained in Shanghai.

Grunert advised he would receive 75 additional officers for training the Philippine Army but that it would not be Federalized. (Marc Small)

PACIFIC OCEAN: In the South West Pacific, 'Komet' and 'Orion' share in the sinking of five ships near the phosphate island of Nauru. Later in the month 'Komet' shells the installations.

U.S.A.: Washington: The US government has arranged to make another $100 million available to the government of China.

Polls report that 59% of Americans think that the US should go to war, 41% that she should stay out.

Joseph P Kennedy, the pessimistic US ambassador to London, has resigned. For many months there have been reports that President Roosevelt was displeased with his ambassador, who made no secret of his belief that Hitler should be appeased, or of his conviction that Britain would lose the war. He has great influence on Wall Street, however, and Roosevelt needed his endorsement.
There are reports that his resignation followed a painful scene at the president's home at Hyde Park in New York State.
The ex-ambassador has not gone home empty-handed. He has taken a London air-raid siren to install in his Cape Cod home.

The motion picture "The Philadelphia Story" is released in the U.S. This romantic comedy directed by George Cukor stars Cary Grant, Katherine Hepburn, James Stewart and Ruth Hussey. The film is nominated for six Academy Awards including Best Actor in a Leading Role (Stewart), Best Actress in a Leading Role (Hepburn), Best Actress in a Supporting (Hussey), Best Director and Best Picture. Stewart wins along with the writer. In a vote, the members of the American Film Institute have rated this film as No. 51 on the list of the 100 Greatest American Movies of All Time, No. 44 on the list of the 100 Greatest American Love Stories and No. 15 on the list of the 100 Funniest American movies.

ATLANTIC OCEAN: Armed merchant cruiser 'Carnarvon Castle' is badly damaged in action with raider 'Thor' off Brazil, her second and equally successful fight with an AMC.
'Kormoran' is the first of a second wave of raiders to leave for operations. She starts in the Atlantic and later moves to the Indian Ocean, where she is lost in November 1941.

Destroyer HMCS St Laurent (ex HMS Cygnet), a Crusader or C-class destroyer known in the RCN as a River-class destroyer, was dispatched to escort convoy HX-90 in the Western Approaches, which was under heavy attack by seven U-boats. The attacking U-boats were commanded by some of the most successful aces of the war including Kretschmer, Prien, and Schepke. Between 01 Dec and 03 Dec, they sank ten ships for a total of over 69,000 tons.

HMCS St Laurent rescued survivors from the merchant ship SS Conch. Later the same day, St Laurent, along with the destroyer HMS Viscount, rescued survivors from the armed merchant cruiser HMS Forfar. St Laurent gained contact on the submarine that sank Forfar and called in Viscount for support. Under the direction of Lt. Rayner, the two ships hunted the submarine for hours and, after a final depth-charge attack, a large volume of oil seemed to indicate that a kill had been scored. For his part in the efficient direction of this action, Lt. Rayner was awarded the first of his two Distinguished Service Crosses. It was only after the war that record reconstruction showed that the German submarine had escaped. The submarine in question was U-99, commanded by the greatest U-boat ace, Kptlt. ‘Silent’ Otto Kretschmer.

U-101 sank SS Appalachee and damaged SS Loch Ranza in Convoy HX-90.

U-37 sank SS Palmella.

Destroyer HMCS Saguenay badly damaged by Italian submarine Argo while escorting Convoy HG-47 300 miles west of Ireland. 21 crewmembers killed. First Canadian warship to be torpedoed by an enemy submarine.