World: Estimate of the Situation

On Dec. 27 TIME War Correspondent James Shepley left Supreme Allied headquarters in France, flew to New York. Within the bounds of security, this is his report on the German counter offensive.

Rundstedt set up his attack like a chessmaster. Good guesswork or good forecasting told him the Rhine Valley would be covered with weather the first two weeks of December. Under such a blanket he moved divisions with a minimum chance of Allied air observation. His G-2 never functioned better.

The four U.S. armies facing him were on the offensive and their...

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