The unarmed US schooner Wawaloam (342t), en route to St John's, Newfoundland, is sunk by shellfire from U-86 but suffers no casualties to the 7 on board.
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Britain, Command After much discussion of various proposals, Gen Alexander is chosen to command in the Middle East and Gen Gott to have tactical control of 8th Army.
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Diplomatic Relations - The British Government formally denounces the Munich Agreement of September 1938.
- Queen Wilhelmina of Holland addresses a joint session of the US Congress.
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Eastern Front The Russians admit the loss of Kotelnikovo. Army Group B is beginning to wear down the Russian defenses in the Don elbow. 17th Army from Army Group A manages to capture Tikhoretsk, in the Kuban area south of Rostov and north of Krasnodar. They also seize Armavir on the Kuban River. In the bend of the Don near Stalingrad the Soviet resistance to Army Group B is weakening.
NORTHERN SECTOR
Heavy attacks are unleashed against the Demyansk salient. The 11th Army launches strong attacks aimed at nipping off the salient and isolating the Germans.
Hitler has begun to lay down plans for the capture of Leningrad. Operation NORDLICHT will throw the 11th Army into a concerted attack into the city environs. It is planned for mid-September.
CENTRAL SECTOR
The Soviets commit the VI and VIII Tank Corps and the II Guards Cavalry Corps to support the 31st and 20th Armies attacks around Rzhev. Fierce tank battles erupt as the Germans commit their Armored reserves.
SOUTHERN SECTOR
After a bitter battle around Armavir, the Germans smash the I Independent Rifle Corps, the town falling to the 1st Panzer Army, which then forces the Kuban River. Both the 18th and 12th Armies retreat before Group Kleist, falling back to cover the Maikop oilfields. Tikhoretsk falls to the 17th Army as Group Ruoff reaches the Chelbas.
To prevent the loss of the Maikop-Tuapse line, Budenny deploys the 12th and 18th Armies, together with the XVII Cavalry Corps. Tyulenev start the fortification of defensive positions along the Terek.
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India, Home Front A campaign of civil disobedience is threatened if the British do not make India 'free and independent', at the earliest possible time, not after the war.
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Mediterranean The British submarine Thorn is sunk by the Italian motor torpedo boat Pegaso 30 miles south of Gavdos Island with the loss of 60 of her crew.
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New Guinea All Australian and American forces in Australian New Guinea (Papua and northern New Guinea) are combined into the 'New Guinea Force'.
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Pacific - The Allied landing force heading for the Solomons draws near its objective without being spotted by the Japanese.
- The US submarine Tautog (SS-199) sinks the Japanese army transport Ohio Maru (5372t) in the South China Sea about 250 miles east-northeast of Cam Ranh Bay, French Indochina.
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