III, XIV and XXXXVIII Panzer Corps encircled virtually all of the Southern Front north of Rostov. As this was a direct result of STAVKAs previous orders to try and salvage the situation at Stalino, the commander of the Southwestern Direction is not to blame for this latest disaster.
18th Army under Gen Smirnov has been assigned to Southern Front. No units are yet assigned to this command.
51st Army of the North Caucasus Military District is forming from STAVKA reserve rifle divisions at Rostov. It is released for your use but has little movement available. You should use it to hold Rostov and the southern bank of the river Don.
All of the armaments at Rostov have been evacuated to the east. However the number of remaining arms factories is dropping precipitously. We estimate only 278 armaments factories remain with the certain losses of 37 factories at Stalino and Vsevolzhsky.
Your northern boundary is the city of Kursk. Three airborne brigades are screening to the north. Defend a line running roughly from Kursk along the rivers Oskol-Aidar-Donets with Southwestern Front.
Air recon has determined there may be an opportunity to isolate the panzer forces south southeast of Stalino and free your two pockets temporarily. Advise STAVKA on the following:
(a) Whether you can move 2nd Cavalry Division directly southeast to X110 Y101.
(b) Attacking 1/LAH SS regiment with two isolated units in a hasty attack. The SS unit has already been bombed by VVS units.
(c) Conducting a successful deliberate attack with up to four divisions on this same unit from the north.
(d) Linking up the two isolated pockets near Krasnoarmeyskoe.
First things first moving 2nd Cav should be possible, resulting in a temporary relieving of most elements of 9th army. That will not last though. I wish there was a way to free the 30th mountain division, we could use them in the coming winter, but alas that is not possible.
Regarding the Oskol-Aidar-Donets line: in order to allow that elements of western front would have to take over some of the positions held by 12th army around Kursk in order to allow that army to redeploy south / south east. Free elements of southern front will attempt to disengage and retreat behind the Don.
During the last week my worst fears were confirmed, there were at least 2 panzer corps performing hq buildups west of Stalino that performed the encirclement this week.
I'd also like to thank Comrade Kliment Voroshilov for his leniency regarding the situation around Stalino.