Air Operations, Europe

Blenheims, with a strong escort including the American volunteer 'Eagle Squadron', bomb an airfield and rail junction near Lille.

There are night raids by the RAF on Bremen and Cologne.

Diplomatic Relations

China breaks off relations with the Axis powers.

Eastern Front

In the Army Group North sector, after a rapid concentration and regrouping Hoeppner's 4th Pzr Group attacks with renewed vigor toward the Russian fortifications on the border with Latvia successfully breaking through at Ostrov.

In the south the Amonescu Army Group, comprising the Rumanian 3rd and 4th Armies and the German 11th Army begin full-scale attacks on the right wing increasing the pressure on the Russians in the Moldavia sector and in the direction of Vinnitsa.

An attack by the Soviet X Mechanized Corps in front of Vyborg is stopped by the Finnish IV Corps.

The Soviet XII Mechanized Corps is forced to retreat by XLI Panzer Corps as the XXI Mechanized Corps tries to hold off the LVI Panzer Corps.

A German soldier from Army Group North is lifted aloft by a deliriously happy population of Riga on July 2, 1941, following the Latvian capital’s liberation from the hated Soviet occupation. (Robert Hunt Library)

Happy Welcome in Latvia

Timoshenko takes direct command of the Western Front and brings the 19th, 20th, 21st and 22nd Armies from the reserve into the line. The 19th Panzer Div reaches the Disna River but is stopped by resistance, and the 18th Panzer Div farther south establishes a bridgehead over the Berezina River. The XLVII Panzer Corps is also approaching the Berezina to the south.

Russian soldiers, left, hands clasped to heads, marched back to the rear of the German lines on July 2, 1941, as a column of Nazi troops move up to the front at the start of hostilities between Germany and Russia.

Russian Captives

The 1sth Panzer Group advances on the road to Kiev, heading for Radomyshl and Zhitomir. The 17th Army advancing from Lvov continues to meet fierce resistance from the retreating 26th Army. 2 other Soviet armies, the 9th and 18th, also slow the advance of the German 11th Army, which is attacking from Modavia.[MORE]

Japan, Policy

An Imperial Conference of Japanese government and military leaders meet with the Emperor to explain policy and nominally to take important decisions which, in fact, have already been taken at the Liaison Conferences between the politicians and the military leaders. The decision that attempts should be made to take bases in Indochina and Siam even at the risk of war is made. The US authorities very soon know of this determination through their code-breaking service which has managed to work out the key to the major Japanese diplomatic code and some other minor operational codes which is circulated under the code name 'Magic'. The Japanese leaders also decide not to attack Russia at this time but to wait until the Germans achieve a thorough military victory. In preparation of the eventuality of war with the Soviet Union, the Japanese increase the size of the Kwantung Army from 400,000 to 700,000 men.

All merchant ships in the Atlantic are ordered to return to home ports. More than a million men are called up.

Mediterranean

The British submarine Torbay sinks the Italian steamer Citta di Tripoli (2933t) in the Aegean Sea.