Operation Compass In early December 1940, the British
Western Desert Force began Operation Compass, a raid against the
Italian 10th Army (General
Giuseppe Tellera), which had conducted the
Italian invasion of Egypt in September. The Italians had advanced to
Sidi Barrani and established defensive positions in a line of fortified camps, that were overrun during the raid. Sidi Barrani was captured and the scope of Compass was extended to exploit the victory and the Italian garrisons in
Bardia and then
Tobruk were isolated and captured. The 10th Army attempted to establish a defensive line at Derna, east of the mountains, with
XX Corps (XX ) (Lieutenant-General Annibale Bergonzoli), comprising the
60th Infantry Division "Sabratha" and the
Babini Group, an improvised armoured brigade, which had lost some of its tanks in Tobruk. The Babini Group, had all of the
Fiat M13/40 medium tanks in Libya and held the south-west end of the defensive front near
Mechili, the junction of several caravan routes, to block another British outflanking move.
Derna–Mechili On 22 January, the British advanced towards Derna, with the 19th Australian Brigade (6th Australian Division) and sent another Australian brigade to reinforce the
4th Armoured Brigade of the 7th Armoured Division south of the Jebel Akhdar, for an advance on Mechili. On 23 January, Tellera ordered a counter-attack against the British as they approached Mechili, to avoid an envelopment of XX from the south. Communication within the Babini Group was slow because only the tanks of senior commanders had wireless; the other crews were reliant on flag signals limited to "halt", "forward", "backwards", "right", "left", "slow down" and "speed up". Next day, the Babini Group with 10 to 15 M13/40s attacked the
7th Hussars of the 4th Armoured Brigade, which was heading west to cut the Derna–Mechili track north of Mechili. The Italians lost seven M13s by for the loss of one British cruiser and six light tanks. The 4th Armoured Brigade was ordered to encircle Mechili and cut the western and north-western exits, while the 7th Armoured Brigade cut the road from Mechili to Slonta but found that the Babini Group had already retired into the hills. On 26 January, Graziani ordered Tellera to continue the defence of Derna and to use the Babini Group to stop an advance westwards from Mechili–Derna. During 27 January, a column of
Bren Gun Carriers of the
6th Australian Cavalry Regiment was sent south from the vicinity Derna to reconnoitre the area where the Italian tanks had been reported. The Australians was ambushed by part of the Babini Group with concealed anti-tank guns and machine-guns; four Australians were killed and three taken prisoner. The
11th Hussars found a gap at Chaulan, south of Wadi Derna and the Italians disengaged on the night of 28/29 January. Rearguards of the Babini Group cratered roads, planted mines and booby-traps and managed to conduct several skilful ambushes, which slowed the Australian pursuit. ==Prelude==