Barents Sea

U-652 sinks the Soviet anti-submarine trawler PS-70 off Cape Teriberka with the loss of 45 of her crew. 12 survivors are rescued by motor boats sent from the nearby coast.

Diplomatic Relations

• Konoye's government presents proposals involving some concessions in China and Indochina to the US, asking in return for the end of the freeze on Japanese assets. The proposals are not acceptable to the US and when the rejection is made known to the Japanese they propose that Konoyeand Roosevelt meet to discuss the issues at stake. This question is not resolved until after Roosevelt and Churchill meet at Placentia Bay (see August 9-12).
• Eden announces that the British Government have complained to the Iranian Government about thousands of German 'tourists' in Iran.

  Japan has also been advised not to interfere in Thailand.

Eastern Front

Having mopped up the few areas in Estonia where the Russians were still offering resistance, the Germans are solidly established on the coasts of the Gulf of Finland.

In a special communiqué issued by the German High Command, it is claimed that the Wehrmacht has inflicted 'annihilating blows unique in history'. 895,000 prisoners have been taken, 10,388 guns, 13,146 tanks and 9,082 aircraft have been captured or destroyed.

Finnish forces smash through the 23rd Army and push on to Lake Ladoga near Khitola. Elements of the 23rd are isolated north of Sortavala but continue to fight on here and at Khitola. Fighting also rages south and west of Kexholm.

Kholm and Staraya Russa fall to units of the 16th Army. The Germans have established a continuous line from Lake Ilmen to Velikiye Luki. Pronin's 34th Army, already in action south of Lake Ilmen, is ordered to recover Staraya Russa.

Guderian's 2nd Panzer Groups launches new attacks with the 3rd and 4th Panzer Divisions of the XXIV Panzer Corps aimed at capturing Gomel. The Stavka allocate the 43rd Army to the Reserve Front.

Potapov's assault around Malin struggles to make any headway in the face of serious German resistance. The IX and XXII Mechanized and I Airborne Corps have managed a five-mile advance in three days of heavy fighting. The German XXIX Corps fights its way into the suburbs of Kiev but is stopped by the 37th Army.

Fighting in the Uman pocket continues with increasing numbers of Soviet soldiers surrendering to the 11th and 17th Armies. Elements of the 6th Army try to break out to the east while the 12th Army pushes south, each without success. Farther east, the Soviet retreat to the Dniepr accelerates, the 9th Army falling back upon Nikolayev. Elements of the XIV Panzer Corps, pushing south, reach and capture Voznesensk. The II Cavalry Corps, having been transferred to this exposed flank, fails to prevent the fall of the town. While these forces advance, the 11th Army unleashes a major new attack from Dubossary and splits apart the front of the 9th Army, effectively isolating those units protecting the approaches to Odessa from the remainder of the army.

Mediterranean

• Dutch submarine O-24 sinks the Italian steamer Bombardiere (613t) 6 miles off Fregene, Italy.
• The Italian steamer Nita (6813t), part of a convoy heading for Tripoli, is sunk by aircraft from Malta 20 miles southwest of Lampedusa.

Occupied Poland

Gen Wladyslaw Anders is appointed C-in-C of the Polish Army to be formed in the USSR.