Dunkirk and a “Sea-Lion” for Madagascar : A Psychological Duel between Churchill and Hitler in 1940

My presentation will examine to what extent German decision making and military strategy during the Blitz campaign in the west was influenced by Nazi ideology in connection to the "Jewish Question". Re-accessing the psychological duel between Churchill and Hitler in these critical months is therefore essential for understanding these events.

The test case this presentation will deal with is Hitler`s decision to halt the German forces before the town of Dunkirk on the 24th of May 1940 and its delay in advancing forward for 48 hours, which enabled the British to evacuate their whole expeditionary force safely to the other side of the English channel. In this context my research is looking into a linkage between the halt of the German forces in front of Dunkirk and the "Madagascar Plan" which took shape and form parallel to the "Miracle of Dunkirk" on the 3rd of June 1940, exactly on the same day that "Operation Dynamo" ended and the British forces were back in Dover.

There is no historiographical argument about the presumption that Dunkirk was a strategic mistake or missed opportunity. However, there is no definite answer to the question why Hitler did issue the halt order and the event remains unsolved to the day and rather in dispute.

A few questions arise :

Why did Hitler allow the British expeditionary force to escape a lethal encirclement at Dunkirk.
Why did Hitler decide not to invade Britain and launch operation “Sea Lion” right after operation Dynamo ended and waited until the 16th of July 1940 (over 6 weeks )?.
Was Hitler`s indecision connected with foreign considerations rather than just military ones, in the context of cost and benefit i.e the "Madagascar Plan". Or perhaps he was simply giving the impression he was willing to negotiate a peace agreement with Churchill in exchange for solving the Jewish problem by means of territorial relocation?