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In November and December 1940, the Italian Supreme Command moved quickly to organize and deploy in Albania and Libya the "Special Armored Brigade" (Brigata Corazzato Speciale, or BCS), consisting of fifty-five M13/40 tanks, artillery pieces and three Bersaglieri battalions specializing in the anti-tank role and equipped with anti-tank mines. In hardly more than a month, the Italians dispatched the bulk of this professional force under General Valentino Babini to North Africa. The M13s in the BCS were a vast improvement to the M11s. They had a better turret-mounted 47 mm tank gun which was more than able to pierce the armour of the British light and cruiser tanks. However, other than command vehicles, Italian tanks were not equipped with radios. Communicating for most Italian tankers required the use of signal flags.
 
In November and December 1940, the Italian Supreme Command moved quickly to organize and deploy in Albania and Libya the "Special Armored Brigade" (Brigata Corazzato Speciale, or BCS), consisting of fifty-five M13/40 tanks, artillery pieces and three Bersaglieri battalions specializing in the anti-tank role and equipped with anti-tank mines. In hardly more than a month, the Italians dispatched the bulk of this professional force under General Valentino Babini to North Africa. The M13s in the BCS were a vast improvement to the M11s. They had a better turret-mounted 47 mm tank gun which was more than able to pierce the armour of the British light and cruiser tanks. However, other than command vehicles, Italian tanks were not equipped with radios. Communicating for most Italian tankers required the use of signal flags.
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Following the fall of Tobruk, O'Connor continued the advance towards Derna with the Australian 6th Division while sending 7th Armoured Division south of the Jebel Akhdar mountains towards Mechili. On 24 January the 4th Armoured Brigade engaged part of the BCS on the Derna-Mechili track. While the British tankers managed to destroy nine Italian tanks in the confrontation, they unexpectedly lost one cruiser and six other tanks. The following day, the Australian 2nd/11th Battalion clashed with the 60th Sabratha Infantry Division and Bersaglieri from the BCS defending Derna airfield and a nearby height. Regia Aeronautica bombers and fighters flew sorties against the Australian battalion as it attacked the determined Italian defences.<ref>https://news.google.com/newspapers?nid=1301&dat=19410201&id=FudjAAAAIBAJ&sjid=BZUDAAAAIBAJ&pg=7277,3450456&hl=en (Fight for Airfield, The Sydney Morning Herald, 1 February 1941) </ref>
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Following the fall of Tobruk, O'Connor continued the advance towards Derna and Mechili, employing the Australian 6th Division and British 7th Armoured Division. On 24 January the 4th Armoured Brigade engaged the BCS deployed on the Derna-Mechili track in support of the Italian XX Corps under General Ferdinando Cona (HQ Giovanni Berta). While the British tankers managed to destroy nine Italian tanks in the confrontation, they unexpectedly lost seven tanks and are forced to initially retreat. The following day, the Australian 2nd/11th Battalion clashed with the 60th Sabratha Infantry Division and Bersaglieri from the BCS defending Derna airfield and a nearby height. Regia Aeronautica bombers and fighters flew sorties against the Australian battalion as it attacked the determined Italian defences.<ref>https://news.google.com/newspapers?nid=1301&dat=19410201&id=FudjAAAAIBAJ&sjid=BZUDAAAAIBAJ&pg=7277,3450456&hl=en (Fight for Airfield, The Sydney Morning Herald, 1 February 1941) </ref>
    
On 27 January, the Australian 2nd/4th Battalion managed to survive a strong regimental-size counterattack from the Sabratha Division near Wadi Derna, when reinforcements from the Northumberland Fusiliers arrived in time to help the Australians.<ref> "At one point the 2/4th Battalion was pinned down and almost overrun by a force of about 1000 enemy infantry. It was only the timely arrival of the Northumberland Fusiliers that checked the Italian attack." (The Western Desert Campaign, 1940-41, Glenn Wahlert, Big Sky Publishing, 2009)</ref>
 
On 27 January, the Australian 2nd/4th Battalion managed to survive a strong regimental-size counterattack from the Sabratha Division near Wadi Derna, when reinforcements from the Northumberland Fusiliers arrived in time to help the Australians.<ref> "At one point the 2/4th Battalion was pinned down and almost overrun by a force of about 1000 enemy infantry. It was only the timely arrival of the Northumberland Fusiliers that checked the Italian attack." (The Western Desert Campaign, 1940-41, Glenn Wahlert, Big Sky Publishing, 2009)</ref>
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That same day, concealed soldiers of the BCS ambushed a column of armoured vehicles of the 6th Cavalry Regiment, taking the survivors prisoners. The advance of other units further to the south of the Wadi Derna eventually threatened the Sabratha and BCS with encirclement and the defenders disengaged on the night of 28 January. Derna, a town of 10,000 residents itself was captured on 26 January. Precise casualty figures for the fighting for Derna and Giovanni Berta have not been compiled but at least 15 Australians soldiers were killed.
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That same day, concealed soldiers of the BCS ambushed a column of armoured vehicles of the 6th Cavalry Regiment, taking the survivors prisoners. The advance of other units further to the south of the Wadi Derna eventually threatened the Sabratha and BCS with encirclement and General Cona orders the defenders to disingage on the night of 28 January. Derna, a town of 10,000 residents itself was captured on 26 January. Precise casualty figures for the fighting for Derna and Giovanni Berta have not been compiled but at least 15 Australians soldiers were killed.
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On 4 February, ''368a Squadriglia'' covering the Italian retreat shoot down a Bleinheim and a Hurricane from 73 Squadron, but lose a Caproni Ca.133 from 366a Squadriglia and a CR.42 from 368a Squadriglia in the process.
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On 4 February, Regia Aeronautica squadrons covering the Italian retreat shoot down a British Bleinheim and an Australian Hurricane from 73 Squadron (Pilot Officer Ken M. Millist), but lose a Caproni Ca.133 from 366a Squadriglia and a CR.42 from ''368a Squadriglia'' in the process.<ref>[http://surfcity.kund.dalnet.se/italy_camerini.htm <Sergente Maggiore Antonio Camerini /ref>
    
==Battle of Beda Fomm==
 
==Battle of Beda Fomm==
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