Where is it and what happened next!

Indeed - in 1940. Either a German invasion which was repelled, or an exercise. It seems the sea might have been set on fire with undersea pipes full of flammables, killing and mutilating lots of soldiers, which is/was apparently in contravention of the Geneva Convention.
 
Indeed - in 1940. Either a German invasion which was repelled, or an exercise. It seems the sea might have been set on fire with undersea pipes full of flammables, killing and mutilating lots of soldiers, which is/was apparently in contravention of the Geneva Convention.

That would be a bit surprising.

There were some trials in (I think) the Solent about that time, using white mice in cages in the boat because it was considered murder to put people in them. In the event, the mice survived unharmed, and early the next morning were released by the young RNVR trials team into ladies' shoes left outside rooms for cleaning at the Keppel's Head in Portsmouth. Apparently the idea (spreading oil on the sea, not the mouse release jape) was dropped as a waste of time, and I believe the Germans came to the same conclusion when designing the Normandy beach defences. The mouse story appears in a hilarious book called "Winston Churchill's Toyshop" by Duncan McRae, which also deals with the use of aniseed balls as limpet mine time fuses, the Great Panjandrum and other bizarre weapons.
 
There was a scheme to spread fire on the water at beaches as an anti-invasion defence, it was tried at Studland Bay, Dorset; judging by the photo's I've seen it worked pretty well.
 
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