all land units retreat to a single adjacent territory, while the air units remains in the territory.
The only way you did something illegal is if you retreated your air units somewhere, and then moved them to S. Italy.
In one of my games I attacked an ANZAC task force (1-Fighter, CV and DD) with 1 japanese dd,1 fighters, 1 bomber and 2 loaded transports.
The match ended with ANZAC loosing the dd and damaging the CV. The DDs hit each other, the ANZAC fighter killed the Japanese fighter and the damaged CV hit the bomber.
At this point can I retreat the Japanese transports since that round of combat was over?
Can the transports retreat and drop their cargo? (Since they are now defenseless I want to get the cargo unloaded)
My personal guess is they can choose to retreat but can not unload in a different territory than they planned.
Then again my rule book isn’t near me.
The transports can retreat, but they can’t unload.