Memorandum on current military issues and options, including Hitler's consideration of occupying Atlantic Islands for use in a future war against the United States

SECRET
FUEHRER'S H. Q.
29/10/40
Major (General Staff) Freiherr von Falkenstein [Addressed to an unspecified General] "Chefsache"
In order to supplement today's telephone conversation of 10:00
A. M. I take the liberty of submitting to you a brief resume of the military questions current here for your personal information before I go on leave. Major Queisner, my deputy, is informed of the questions touched on here and can supply further information if necessary.
The exception is Gibraltar, General Warlimont having requested that all inquiries be mad^ to him, as this territory is regarded as a particularly ticklish business.
1. At the moment no intervention in Greece is intended. Nor for the moment is anything to be undertaken with regard to Crete.
2. The question of beginning preparation in Libya in conjunction with Italy is to be examined in the light of a report by* General Ritter von Thoma, which will be received during the next few days.
In the light of this report a proposal is to be submitted to the Fuehrer by Field Marshal Keitel with regard to strength required, date of offensive, etc. Field Marshal Keitel and Marshal Badoglio will then meet in mid-November and will settle details. Large-scale preparations should not be expected before then.
The Quartermaster-General (Colonel Langemeyer) has been informed by us of the necessity for timely disposal of special war material, equipment and clothing.
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3. No orders respecting Case East [Fall Ost] have been given and no orders are to be expected at the moment.
At the moment the Russian action against Rumania is dismissed as a trifling matter.
Transports to Rumania are proceeding according to plan as ordered by the Fuehrer and are not to be speeded up.
4. No activity should be expected at present on the part of Spain. The conversation between the Fuehrer and Franco therefore covered only economic collaboration and long-term developments.
The Gibraltar affair should not however be lost to mind though it will have to be treated with extreme care.
The Army will shortly send a small reconnaissance staff [Erkundungsstab] to Spain where it will cooperate with Admiral Canaris: this has been authorized by the Fuehrer. The GAF will request permission to participate on its own account.
There will be further orders from the Armed Forces Supreme Command; the details requested in teleprinter message 00 926/40 are required for this purpose.
5. The Fuehrer is at present occupied with the question of the occupation of the Atlantic Islands with a view to the prosecution of war against America at a later date. Deliberations on this subject are being embarked upon here. Essential conditions are at the present:—
a. No other operational commitment,
b. Portuguese neutrality,
c. Support of France and Spain.
A brief assessment of the possibility of seizing and holding air bases and of the question of supply is needed from the GAF.
Major Queisner will fetch the documents for himself from le Kurferst (C. in C. GAF Rear Hq.). I would like to ask Colonel Schmidt to arrange that he be supplied with the information he desires.
6. C. in C. Armed Forces Norway has expressed fears that as a result of the Order: Armed Forces Supreme Command, Armed Forces Operations Staff/Abteilung L. No. 35 331/40 top secret and Chefsache dated 22/10/40 greater activity on the part of the British will develop against Norway, and has requested naval and air force reinforcements. The question of moving Stuka Staffeln was touched upon. I expressed my opinion that Stuka units had at present to prepare for other tasks, but would however request that the matter be further examined.
7. General von Boetticher has made repeated reference, espe-
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dally in his telegram 2314 dated 26/10, to the fact that in his opinion too many details of our knowledge of American aircraft industry are being published in the German press. The matter has been discussed at Armed Forces Supreme Command. 1 pointed out that the matter was a specifically GAF one, but have taken the liberty of referring the matter to you on its own merits.
[Signed] Falkenstein.