'Capri' was the Axis counter-offensive designed to retake Medenine in south-eastern Tunisia and so halt the westward advance of General Sir Bernard Montgomery’s British 8^th Army to link with Lieutenant General K. A. N. Anderson’s Allied 1^st Army in Tunisia, thus paving the way for a resurgence of Axis fortunes in North Africa (6/10 March 1943).

It was for 'Capri' that Generalfeldmarschall Erwin Rommel, commanding Heeresgruppe 'Afrika', terminated the 'Morgenluft' offensive of Maresciallo d’Italia Giovanni Messe’s Deutsch-Italienische Panzerarmee, leaving Generale di Divisione Conte Carlo Calvi di Bergolo’s Italian 131a Divisione corazzata 'Centauro' to deal with Lieutenant General Lloyd R. Fredendall’s US II Corps in the Kasserine Pass area as Rommel moved to the south-east with Generalleutnant Friedrich Freiherr von Broich’s 10^th Panzerdivision and Generalmajor Hans-Georg Hildebrandt’s 21^st Panzerdivision to support the forces facing the 8^th Army.

The 'Capri' plan called for the Deutsch-Italienische Panzerarmee to pin the 8^th Army frontally while a German armoured force gathered in the Matmâta hills to the south-west before punching forward to Medenine as the first step of a drive to the coast at Gabès. This armoured force comprised von Broich’s 10^th Panzerdivision, Generalleutnant Willibald Borowietz’s 15^th Panzerdivision and Hildebrandt’s 21^st Panzerdivision supported by Generalmajor Fritz Krause’s (from 13 March Generalmajor Kurt Freiherr von Liebenstein’s) 164^th leichte Afrikadivision, a force that was formidable on paper but was in reality two-thirds under strength as it included a mere 141 tanks. Air support was provided by 160 aircraft including 60 fighters and 20 dive-bombers.

Rommel planned that the 15^th Panzerdivision and 21^st Panzerdivision should advance in the centre against Brigadier L. G. Whistler’s 131^st Lorried Brigade and Brigadier J. A. Gascoigne’s 201^st Guards Motor Brigade of Major General G. W. E. J. Erskine’s 7^th Armoured Division (with Brigadier C. B. C. Harvey’s 8^th Armoured Brigade and Brigadier G. W. Richards’s 22^nd Armoured Brigade in reserve), the 10^th Panzerdivision on the right against Brigadier H. Kippenberger’s New Zealand 5^th Brigade of Lieutenant General Sir Bernard Freyberg’s New Zealand 2^nd Division (with Brigadier J. C. Currie’s British 4^th Armoured Brigade and Brigadier W. G. Gentry’s New Zealand 6^th Brigade in reserve), and Generalleutnant Theodor Graf von Sponeck’s 90^th Afrikadivision and Generale di Divisione Gavino Pizzolato’s Italian 80a Divisione aviotrasportabile 'La Spezia' on the left against Brigadier J. E. Stirling’s 154^th Brigade of Major General D. N. Wimberley’s 51^st Division.

Fully on the alert with regard to Rommel’s intention and strength as a result of the receipt of specific 'Ultra' intelligence, these formations and units of Lieutenant General Sir Oliver Leese’s XXX Corps were in strong defensive positions behind minefields and anti-tank ditches, with some 350 25-pdr gun/howitzers and 460 anti-tank guns, including a few of the new and very potent 17-pdr weapons, well sited in divisional or corps strength to tackle any German advance.

At about 06.00 on 6 March, under cover of fog, the German forces attacked the left flank of the British and New Zealand line at Medenine with three Panzer divisions. The German infantry probed the entire front, and then the German armour led the main attack, closely followed by motorised infantry. The artillery regiments of the British and New Zealand divisions held their fire until the tanks were almost on the anti-tank guns, whereupon the 25-pdr gun/howitzers opened fire on the infantry, leaving the tanks isolated without infantry support. At 08.30, a group of 10 PzKpfw III medium tanks, which was advancing on Tadjera Kbir, was caught completely by surprise when two 6-pdr anti-tank guns and mortars opened fire on it, and half of the tanks were quickly destroyed. The Germans were beaten off and withdrew.

Between 09.00 and 10.00, further British and New Zealand artillery fire dispersed German troop concentrations.

Another German force attempted to advance along the road from Foum Tatahouine to Medenine, but was easily contained by the British forces.

During the afternoon, yet more British and New Zealand artillery fire, both heavy and accurate, disrupted another German effort to concentrate effective strength, in particular a large group of 1,000 infantry supported by armour, just short of Tadjera Kbir. The artillery included a troop of captured German 88-mm (3.465-in) dual-role anti-aircraft and anti-tank guns.

'Capri' had thus been defeated with the loss of 52 German tanks and about 635 men. Luftwaffe attempts to support the attacks had been completely ineffectual.

During the following night, patrols were sent out to discover the likelihood of renewed attacks, but reported no German activity, and it was by this time clear that with so great a proportion of its tank strength destroyed, the Germans in all probability lacked the capability to attack. The movement of vehicles was heard, but this indicated a retreat rather than any attempt to regroup and launch a fresh attack.

There were minor actions on 7/8 March as the British and New Zealand forces maintained the pressure on the rearguards of the German formations as they withdrew to the 'Ligne Mareth' and Gabès. Allied efforts to force further action on the somewhat disorganised Germans were defeated by the weather and the speed of the withdrawal. The battle was over by 10 March, although some high ground was still occupied by the Germans and sporadic long-range artillery fire continued.

Shortly after this, Rommel left Africa for the last time, being succeeded by Generaloberst Jürgen von Arnim at the head of Heeresgruppe 'Afrika', and the British prepared to launch their 'Canter' (ii) operation to breach the Mareth Line defences.

Rommel had in fact played little part in the planning or control of the battle, and this was evident in the fact that the Germans had undertaken no reconnaissance. As a result, the presence of the well concealed and carefully sited British and New Zealand artillery had not been suspected, and after the battle had started the German armour had not been able to spot the guns. The defeat had been so comprehensive that it caused the Germans to question their security, and Montgomery was in fact rebuked for not having taken greater steps to hide the source of his information, for this was a lapse which could have led to the compromise of 'Ultra' as an Allied asset of strategic significance.