The Royal Navy is to seek and destroy the French fleet to prevent it falling into German hands.
A heavy cruiser, six cruisers, a seaplane carrier and five destroyers escape and return to Toulon.
Franco declares himself ready to join the war against Britain under the following conditions: Spain is rewarded with Gibraltar, French Morocco and Western Algeria; and military and economic aid is made available - particularly petroleum and wheat.
Hitler agreed but was concerned about committing French colonial interests to Spain as he hoped to promise parts of British West Africa to the Vichy government.
Spain continued to drag its heels and never served as a base against Gibraltar but did contribute forces to the German Eastern Front.
They discuss "matters of common interest" that would possibly lead to Vichy participation in the war on the German side.