British Military Intelligence was still struggling to understand German intentions in North Africa. They still did not know that Rommel had arrived in Tripoli, even as British forces were being withdrawn for transfer to Greece:
Possible German Troops in Libya.
For some time there have been persistent but unconfirmed reports of the presence of a German armoured division in the Naples area and in Sicily. It has been stated that these troops were destined for Libya. It is now reliably reported that on the 22nd February armoured cars with crews wearing light blue uniform were seen near El Ageila. The uniform suggests the German Air Force, although it does not normally have armoured car units. The same reliable source confirms the presence of German advanced troops in the Sirte area.
On the 26th February, 1941, an official Italian communique, broadcast from Rome, stated that on the 24th February formations of the German contingent in Africa made contact for the first time with British armoured detachments South-East of Agedabia (100 miles South of Benghazi).
Another recent report from a source of unknown reliability states that two German armoured divisions have disembarked at Tripoli. Although this has not yet been,confirmed, it is quite probable that the Germans have sent some armoured troops to the Sirte area, where German aerodromes are situated, as a precaution against a further rapid advance of British forces.
From the Military Situation Report for the week ending 27th February 1941.