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Convoy HX-106 consisted of some 41 ships, eastbound from Halifax, Nova Scotia to Liverpool, England. The use of convoys was a standard tactic throughout the Second Battle of the Atlantic as a defence against U-boats and German commerce raiders.
On 8 February 1941 the two German battlecruisers, Scharnhorst and Gneisenau, appeared over the horizon. The German squadron was under the command of Admiral Gunther Lutjens. The captain of the Scharnhorst offered to draw off the escorting Royal Navy battleship HMS Ramillies, so that the Gneisnau could sink the merchant ships. This strategy, if successful, would have entailed little risk to Scharnhorst as she was 11 knots (20 km/h) faster than Ramillies, and her newer 11" guns outranged the 1915 era 15" guns of the British ship. But, Lutjens strictly followed Hitler's directive not to engage enemy capital ships.
The presence of Ramillies was sufficient to deter the attack. Later two of the convoy's merchant ships were sunk by submarines, including the MV Arthur F. Corwin loaded with 14,500 tons of aviation spirit. She went down on 13 February taking all 59 crew with her.
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