17 December 1940

VICHY FRANCE: Otto Abetz, the German ambassador, is believed to have warned Petain that German co-operation would be withdrawn if Laval were not freed from arrest.
The political situation in Vichy France is confused. Pierre Laval, who was arrested in what is being called a "palace revolution" on 13 December, has been released, but is still out of political favour.
The new Minister of Foreign Affairs, Pierre Flandin, holds similar views to Laval, and it is hard to discover any significant differences of policy achieved by the fall of Laval.
Darlan is interested in collaborating with Germany, not so much because of ideological affinity for Nazism, but because he hopes to negotiate German protection for the French fleet and the French colonial empire.
Admiral Darlan is to meet Hitler next week, and hopes to persuade Hitler that France will be a more powerful ally in the Mediterranean than either Italy or Spain.
Hitler has just met General Franco and failed to persuade him to join in the war. He knows that Mussolini is in difficulties both in Africa and in Greece. Yet he still refuses to make and political concessions to Vichy. The crucial test for Hitler will be whether Petain will be willing to fight against Britain, his ally in 1914-18.

MEDITERRANEAN SEA: Another series of convoy and offensive operations are carried out by the Mediterranean Fleet with battleships HMS Warspite and HMS Valiant and carrier HMS Illustrious. Today the carrier's aircraft attack Rhodes.

NORTH AFRICA: British troops capture the Italian held town of Sollum on the Egyptian border with Libya.

CANADA:

Fairmile B-type patrol craft HMC ML 050,051, 052, 053, 054, 055, 057, 058, 060, 061, 064, 065 ordered.

Corvette HMCS Wetaskiwin (ex-HMCS Banff) commissioned.

Minesweepers HMCS Melville and Granby laid down Levis, Province of Quebec.

Corvette HMCS Moncton laid down Saint John, New Brunswick.

Corvette HMCS Algoma launched Port Arthur, Ontario.

HMC MTB-1 arrived Halifax, Nova Scotia for duty as training vessel.

U.S.A.: Washington: Roosevelt outlines the Lend-Lease scheme to supply Britain with arms and equipment, telling pressmen: "We should do everything to help the British Empire defend itself."

Rear Admiral Ernest J. King relieves Rear Admiral Hayne Ellis as Commander Patrol Force, U.S. Fleet, on board the battleship USS Texas (BB-35). King is subsequently designated Commander-in-Chief Atlantic Fleet on 7 December 1941, Commander-in-Chief U.S. Fleet on 30 December 1941 and Chief of Naval Operations on 26 March 1942.