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Is it worth it for Italy to garrison Rhodes? If so, would just a 10/20 small corps suffice? How useful is it as a port or airbase?

Look at the situation strategically. If you were the UK how would a plane threaten you from there.
Then look at it from the Axis side. How can the UK use that base?

For me is not worth...it's a must. If allies ocuppy Rhodes, they can deploy a strategic unit that woill be in range to hammer the Ploesti oilfield. Meanwhile, Axis can deploy there a Tactical air unit with the electronics advance and cover Alexandria an Cyprus ports.

No ifs and or buts about this. If you don't garrison it, the British will happily take it from you.

ORIGINAL: Flaviusx

No ifs and or buts about this. If you don't garrison it, the British will happily take it from you.

How strong a defensive unit is needed? A standard Italian small corps, or would one of the weaker 30% effectiveness "Coastal" ones do?

Judgment call. Either will stop a raid which is the main thing. If he wants to take it he will have to put in a big effort to do so and generally speaking the British have other things to do. Just don't give it away by leaving it unoccupied.

Makes sense

Depends on what you plan to do against the UK. If you want to take Egypt from the Syrian side then you need it for an air support base. If you don't plan on doing something serious in the Middle East there is little reason for Italy to take it.

Flip side the UK may want to take it to help protect the Middle East.

I agree with FlaviusX always occupy it. German div or Italian corps even axis minor division later on but then it probably can be taken if the effort is being made.

/MM