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December 31, 1944 1934 DECLASSIFIED DOD DIR. 5200.9, Sept. 27, 1958 NE by, BSR Date 9/23/20 SHAEF Main, December 31 - During the past week on the western front the enemy did not succeed in staging any large operation and suffered some reverses but has not yet deterred from his purpose. Sixth SS Panzer Army finally with- drew the two shaken divisions of its first Corps, but only at the cost of severe losses in men and tanks; their former sector from Stavelot to Malmedy was con- signed to infantry, which in spite of some pretense at cont inuing the attack, was seen to be covertly engaged in digging in. The second Corps meantime moved up into the line further West, where several preliminary attacks, intended to gain a suitable start line for a new push, were beaten back. When 12 SS Panzer Division also appeared again, in the same sector, attack seemed imminent; but trouble was developing in the rear. D Fifth Panzer Army, as time passed and Allied Forces gathered, and as ground and air combined to aggravate supply problems, had finally decided to push on on its own towards the Meuse, though with what intention is still not very clear. 2 Panzer Division, its crack formation, advanced its spearheads very nearly to the river, while Panzer Lehr followed more slowly, screening to the South and Southwest. This led to some sharp encounters with Allied forces and finally 2 Panzer Division was forced to withdraw in sone thing like panic, losing much of its equipment (out of gasoline) and a regiment of infantry. 116 Panzer and 560 Volksgrenadier, which remained in readiness on the line facing North also suffered some setbacks when the Allies made contact, and considerable elements were pocketed. Meantime, the Allied garrison in Bastogne had not been taken seriously enough; the forces sent to reduce it proved inadequate, and relieving Allied