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First off, contrary to the commentary, Manstein never gave the order to retreat from Kharkov (the fourth biggest city in the Soviet Union, a symbol of prestige and a vital rail hub). This action had been taken independently by SS Panzer Corps commander Paul Hausser to avoid another Stalingrad. Had Manstein done so, he would have likely been relieved - or worse.
"As for the situation in Kharkov, circumstances proved stronger than Hitler's will. The SS Panzer Corps, which really was in danger of being surrounded there, evacuated the city on 15th February - incidentally against the orders of General Lanz. This accomplished fact was reported to us by Army Group B... Had the evacuation of Kharkov been ordered by a general of the army, Hitler undoubtedly would have had him court-martialed. But because this action had - quite rightly - been taken by SS Panzer Corps, nothing of the sort occurred." - von Manstein
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"But it is a well-known maxim of war that whoever tries to hold on to everything at once, finishes up by holding nothing at all....
That day tension mounted even higher when the enemy, apparently in considerable strength, reached the railway station of Sinsinokovo As a result of this he not only temporarily blocked the main supply line to the center and right wing of the Army Group but was also less than 35-40 miles away from the headquarters in which the Fuhrer of the Reich was staying! ....
The last point I had made to Hitler was that I should need almost all the armoured divisions for the blows I intended delivering on the western wing, which meant.... the possibility that the Donetz area would be taken from the east... Nothing could be done to prevent it until we had first removed the danger of the Army Group's being cut off from its rear communications. This Hitler seemed to grasp.
In any case I had the impression that Hitler's visit to my headquarters had helped to bring home to him the danger of encirclement which immediately threatened the southern wing of the Eastern Front....
we were not prepared to do what Hitler demanded and fight solidly for every foot of ground regardless of the consequences of 'holding on at all costs'..." - von Manstein
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"Ever the chess player, Manstein envisioned a Rochade—the castling move in which a king and a rook exchange places. A player typically uses the maneuver to improve his overall defensive position and protect his king, but also to free his rook, one of the most powerful pieces on the board and one of the few able to carry out deep, mobile strikes.
Manstein wanted to transfer the armies from the portion of the balcony on his extreme right—the 1st and 4th Panzer Armies—to his left, wielding them like a massive armored rook. Once redeployed, the two armies would launch a counter blow against Soviet forces driving to the west. It was a typically bold stroke, one Manstein called a backhand blow—a well-timed strike against a committed enemy far from its base and low on supplies." - Robert Citino





