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WAR  DIARY 


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German  Naval  Staff 
Operations  Division 


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JUN  14  1948 


PART  A  VOLUME  35 

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JULY  1942 


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WAR  DIARY  OF  THE  GERMAN  NAVAL  STAFF 
(Operations  Division) 


PART  A 
July  1942 


Chief,  Naval  Staff:  Grand  Admiral  Raeder*  Dr.  h.  c. 

Chief  of  Staff,  Naval  Staff:  Admiral  Fricke 

Chiefs  Operations  Division,  Naval  Staff:  Captain  Vagner 


# 


Volume  35 


begins  1  Jul.   1942 

closed:  31  Jul.  1942 


DSCLA 


CONFIDENTIAL 


\ 


I 


* 


OFFICE  OF  NAVAL  INTELLIGENCE 
Washington,  D.  C. 


Foreword 

1.  The  Office  of  Naval  Intelligence  has  undertaken  to  translate 
important  parts  of  the  War  Diary  of  the  German  Naval  Staff.  The 
present  volume,  entitled  War  Diary  of  the  German  Naval  Staff,  Op- 
erations Division,  Part  A,  Volume  35  is  the  ninth  one  of  the 
series  to  appear.  Other  volumes  will  follow  "'"shortly. 

2.  The  War  Diaries,  Part  A,  are  important  because  they  contain  a 
day  by  day  summary  of  the  information  available  to  the  German  Naval 
Staff  and  the  decisions  reached  on  the  basis  thereof.  Together  with 
the  Fuehrer  Conferences  on  Matters  Dealing  with  the  German  Navy,  1.939- 
l_24f>,  which  have  been  publisKed'oy  'this  office,  the  War  Diaries  should" 
provide  valuable  material  for  the  study  of  naval  problems  arising  from 
total  war.  The  War  Diary,  Part  A,  is  also  a  useful  Index  to  the  German 
Naval  Archives  of  World  War  II;  references  may  be  found  in  the  micro- 
film library  of  Naval  Records  and  Library. 

3.  Due  to  the  cost  of  publication,  only  a  limited  number  of 
copies  could  be  made;  it  is  therefore  desirable  that  the  copies 
which  have  been  distributed  are  made  available  to  other  offices 
which  may  be  interested. 


Washington,  D.  C. 
1948 


- 


CONFIDENTIAL 
1  Jul.  1942 

Items  of  Political  Importance 

Great  Britain: 

Admiral  Cunningham,  Commanding  Admiral  of  the  Mediterranean  Fleet  up 
to  the  present  time,  stated  that  the  British  forces  in  North  Africa 
were  defeated  because  the  Germans  wrought  such  destruction  on  Malta 
that  military  forces  stationed  there  became  completely  immobilized. 
Rommel  consequently  received  an  unexpected  amount  of  supplies.  Never- 
theless, the  Germans  will  find  it  difficult  to  capture  Alexandria. 
But  even  if  they  succeed,  the  3ritish  Fleet  will  still  be  able  to 
operate  in  the  Mediterranean  from  Haifa  or  Port  Said,  although  under 
difficult  conditions. 

Writing  on  the  political  situation,  an  American  periodical  asserts 
that  Germany  could  win  a  really  decisive  victory  only  on  the  British 
Isles  proper,  not  in  Russia  or  the  Middle  East.   It  seems  that  the 
American  commentator  ignores  the  war  against  Britain's  supply  line 
altogether. 

Egypt: 

British  military  authorities  are  trying  to  prevent  a  mass  flight*  of 
Alexandria1 s  population  into  the  Nile  Delta  by  blocking  the  desert 
road  to  Cairo.   It  is  also  reported  that  extensive  preparations  have 
been  made*  to  blow  up  the  important  port  installations  at  Alexandria. 

Spain: 

The  Foreign  Ministry  has  published  another  note  rejecting  the  accu- 
sation that  Spanish  ships  are  assisting  Axis  submarines  in  the  Atlantic. 

Rumania: 

Relations  between  Rumania  and  Hungary  have  reached  a  degree  of  tension 
which  furnishes  reason  for  serious  reflections. 

Turkey: 

The  recall  of  the  Turkish  Ambassadors  from  Berlin  and  Moscow  is  at- 
tributed to  Turkey's  intention  to  relax  relations  with  Britain  and  to 
establish  closer  ties  with  .Germany  in  view  of  the  great  German  victo- 
ries in  North  Africa.  A  similar  reason  is  seen  to  be  responsible  for 
the  position  taken  by  Turkey's  Deputy  Chief  of  the  General  Staff.   In 
an  address  to  the  War  College  delivered  in  the  first  week  of  June  he 
spoke  of  Great  Britain's  disadvantageous  position  in  an  unusually 
straightforward  manner.  He  considers  the  fighting  in  Africa  a  more 
important  factor  in  determining  the  future  attitude  of  Turkey,  than 
the  course  of  German  operations  in  Russia.  Our  Military  Attache  in 
Ankara,  who  submits  this  report  with  all  due  reservations,  emphasizes 
that  the  considerable  successes  which  we  have  scored  in  the  meantime 
will  most  likely  have  a  strong  effect  on  the  attitude  of  the  Turkish 
General  Staff,  although  no  such  tendencies  have  been  noted  up  to  now. 


-  1- 


CONFIDENTIAL 
1  Jul.  1942 

Chile: 

In  secret  session  the  Senate  rejected  a  proposal  to  break  off  diplo- 
matic relations  with  the  Axis  powers  by  a  vote  of  34  to  2  (Communists ). 

Brazil: 

According  to  press  reports,  the  Foreign  Minister  announced  that  the 
Brazilian  merchant  marine  will  be  placed  under  a  shipping  control  board 
which  will  be  located  in  the  United  States  Embassy  and  control  all 
Allied  ships  in  Brazilian  waters. 

The  Commander  in  Chief,  Navy  was  absent  from  Berlin  on 
30  Jun.  and  1  Jul.  to  inspect  the  area  of  the  Command- 
ing Admiral,  Baltic  Countries. 


Special  Items: 

I.  The  Fuehrer  has  decided  that  Egypt  is  to  be  placed  under  Italian 
sovereignty.   Booty  is  to  be  taken  only  to  fill  the  immediate  needs  of 
the  troops.  The  Naval  Staff,  Quartermaster  Division  will  take  charge 
of  further  details,  k 

In  the  event  that  our  forces  occupy  the  Suez  area,  pro- 
vision will  have  to  be  made  for  operations  by  German 
naval  forces  and  their  command.  This  problem  is  par- 
ticularly important  in  view  of  the  possibilities  for 
German-Japanese  cooperation  within,  as  well  as  outside 
of  but  originating  from,  this  area.   The  fact  that  we 
are  not  sovereign  in  the  Suez  Canal  zone  must  by  no 
means  be  allowed  to  handicap  us  in  solving  arising 
problems.  For  this  reason  it  is  time  to  devote  thought 
to  the  problem,  and  to  set  forth  ce.rtain  principles  to 
which  all  German  as  well  as  Italian  authorities  con- 
cerned will  have  to  adhere. 

II.  The  Chief  of  the  Meteorological  Branch  of  the  Naval  Staff's  Hydro- 
graphic  and  Meteorological  Division  is  making  preparations  for  the  dis- 
patch of  a  meteorological  expedition  to  Greenland,  preparing  the 
weather  ship  SACHSEN  for  the  undertaking.  The  expedition  is  to  set  out 
from  Tromsoe  about  the  middle  of  August.   It  is  to  proceed  northward  as 
far  as  the  ice-barrier  and,  skirting  along  the  southern  rim,  is  to  find 
a  break  in  the  ice  which  will  allow  it  to  proceed  westward.  A  weather 
buoy  with  deep-sea  mooring  is  to  be  planted  at  the  approach  to  this 
point.  A  main  station  is  to  set  up  on  land  in  plain  view  of  the 
SACHSEN  which  will  be  camouflaged  in  a  bay.  An  auxiliary  station  will 
be  set  up  at  a  distance  of  100  km.  Should  the  vessel  fail  to  make  a 
break  through  the  ice,  then  an  observation  party  of  2  or  3  men  is  to 
proceed  inland  over  the  ice  while  the  ship  is  to  spend  the  winter  at  the" 
Ice-barrier  in  the  Arctic  Ocean.  The  expedition  is  to  take  up  to  2 


-2- 


CONFIDENTIAL 
1  Jul.  1942 

years. 

The  enterprise  will  bear  the  cover  name  "Holzauge". 

III.  There  are  reasons  to  believe  that  a  former  crew  member  of  ship 
"16"  has  committed  the  highest  form  of  treason  and  is  now  on  the 
British  radio,  broadcasting  regularly  to  our  armed  forces .   The  basis 
for  such  a  belief  has  been  furnished  by  the  interrogation  of  an 
internee  who  has  returned  from  Britain  as  an  "enemy  agent". 

Transcript  of  the  interrogation  and  reports  of  the  former  adjutant  of 
ship  "16 "  as  per  l/Skl  Ik  15319/42  Gkdos.  in  War  Diary,  Part  C*  Vol.  I. 

IV.  Restrictions  on  merchant  vessels  plying  to  Sweden  and  Finland 
have  been  lifted.   This  has  been  done  on  the  express  wish  of  the  Reich 
Commissioner  of  Maritime  Shipping.   The  Commissioner  had  stated  through 
Captain  Kaehler  on  30  Jun.  that  the  loss  of  single  ships  through  enemy 
submarine  attacks  would  be  preferable  to  the  delays  and  dangers  that 
would  beset  merchant  traffic  if  the  compulsory  escort  order  end  the 
rule  requiring  ships  to  remain  in  Swedish  territorial  waters  were  to  be 
continued  in  force.   The  Chief  of  the  Planning  and  Assignments  Section 
of  the  Reich  Commissioner  of  Maritime  Shipping,  going  beyond  this  state- 
ment, has  declared  that  the  difficulties  encountered  on  trips  to  Sweden 
have  become  intolerable  because  our  ships  are  forced  to  maintain  an 
escort  and  to  keep  within  Swedish  territorial  waters. 

V.  In  Vol.  2  of  his  "War  Experiences"  the  Commanding  Admiral,  Defenses, 
Baltic  Sea  has  given  a  graphic  picture  of  the  mine -laying  operations 
carried  out  by  the  enemy  on  a  comprehensive  scale  and  with  enviable 
skill  at  the  entrances  to  the  Baltic  Sea.   The  picture  furnishes 
valuable  pointers  for  our  own  planting  of  air  mines. 

The  Naval  Staff  has  forwarded  a  copy  to  the  Commander  in  Chief,  Air, 
Operations  Staff;  also  to  the  3rd  Air  Force,  IX  Air  Corps,  as  well 
as  to  the  Naval  Staff,  Hydrographic  and  Meteorological  Division  and 
the  Underwater  Obstacles  Branch.  Copy  of  order  l/Skl  I  E  22806/42 
Gkdos.  in  War  Diary,  Part  C,  Vol.  VI. 

VI.  In  accordance  with  the  request  of  Group  North,  the  Naval  Staff, 
having  repealed  standing  orders,  assigned  the  7th  Mine  Sweeper 
Flotilla  to  the  Commanding  Admiral,  Defenses,  North,  while  the  15th 
Mine  Sweeper  Flotilla  is  to  be  committed  in  Norway  on  the  completion 
of  repairs. 

For  corresponding  directive  to  Group  North,  a  copy  of  which  has  been 
forwarded  to  the  Commanding  Admiral,  Norway,  see  Telegram  1300. 


-3- 


CONFIDENTIAL 
1  Jul.  1942 

Situation  1  Jul.  1942 

I.   War  In  Foreign  Waters 

1.   Enemy  Situation; 

North  Atlantic: 

An  Italian  report  states  that  on  28  Jun.  the  British  destroyer 
VANSITTART  sailed  from  Gibraltar  en  route  to  Britain  via  Ponta  Delgada. 
,0n  29  Jun.  10  eastbound  British  ships  escorted  by  an  aircraft  carrier 
passed  the  Island  of  Fayal  in  the  Azores. 

South  Atlantic: 

Radio  messages  which  have  only  now  been  decoded  reveal  the 
following: 

All  British  merchant  ships  plying  between  South  American  ports  south 
of  Bahia  and  the  ports  situated  on  the  east  coast  of  the  United  States 
and  Canada  have  received  orders  on  4  Jun.  to  cross  the  equator  to  the 
east  of  25°W. 

Thus  the  shift  of  the  shipping  route  from  the  coast  of 
Brazil  to  the  east  of  St.  Paul's  Rock  has  belatedly 
been  confirmed. 

According  to  a  report  of  the  British  Admiralty  of  10  Jun.  a  7,000  GRT 
British  ship  has  been  torpedoed  south  of  Freetown  (this  is  probably  a 
haul  of  ship  "23");  and  a  Greek  ship  was  shelled  by  an  armed  raider 
south  of  Mozambique  on  8  Jun.. 

On  19  Jun.  the  auxiliar  cruiser  ALCANTARA  was  at  34°40»S  and  13°30»E, 
bound  for  Capetown.  About  a  week  later  the  auxiliary  cruiser  was 
located  in  the  area  of  St.  Helena. 

According  to  press  reports,  the  United  States  Fleet  has  taken  over 
escort  and  patrol  duties  in  the  South  Atlantic.  Montevideo  is  being 
used  as  an  air  and  naval  base. 

Indian  Ocean: 

Radio  monitoring  picked  up  a  report  from  a  steamer,  accord- 
ing to  which  an  unidentified  ship  was  shelled  by  a  submarine  120  miles 
east  -northeast   of  Lourenco  Marquez. 

2.   Own  Situation; 

The  Naval  Staff  has  assigned  the  following  zones  of  oper- 
ations to  ships  "28"  and  "23s  as  of  5  Jul.: 


-4- 


CONFIDENTIAL 
1  Jul.  1942 

For  ship  "28":   Northeast  of  the  line  joining  the  upper  left  comer  of 
large  quadrant  FD  with  the  lo.wer  right  corner  of  quadrant  GP, 

Ship  "23":   Southwest  of  the  above  line. 

Ship  "28"  is  to  use  her  own  discretion  on  her  present  move  to  the  new 
zone  of  operations  and  is  to  report  by  short-code  signal  when  leaving 
that  zone  for  purposes  other  than  scheduled  provisioning.  Correspond- 
ing orders  have  been  sent  to  ship  "28"  and  ship  "23"  by  Radiogram  0321, 

Information  to  the  Naval  Attache  in  Tokyo  concerning  identification 
marks  for  camouflaged  ships  by  Telegram  1830. 

Information  concerning  the  enemy  situation  by  Radiograms  0548",  1512 
and  2050. 


II.  Situation  West  Area 

1.  Enemy  Situation: 

Photo  reconnaissance  of  25  Jun.  disclosed  that  along  Britain'  s 
south  coast,  from  west  of  Plymouth  up  to  Land's  End,  only  the  number 
of  small  vessels  in  Falmouth  has  doubled  since  3  Jun.,  so  that  about 
200  of  them  are  now  lying  there.   Judging  by  their  size  and  type 
these  vessels  appear  to  be  fishing  and  harbor  craft  rather  than  land- 
ing craft. 

Near  Hastings,  air  reconnaissance  spotted  a  convoy  composed  of  some  20 
steamers,  headed  northeast;  north  of  Land's  End  a  convoy  composed  of 
12  steamers  and  2  destroyers,  headed  northeast;  and  at  the  north  exit 
of  the  Bristol  Channel  2  westbound  destroyers. 

2.  Own  Situation: 
Nothing  to  report* 


III.  North  Sea,  Norway;  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation; 

Secret  Intelligence  intercepted  radio  instructions  of  the 
British  Intelligence  Service  of  26  Jun.,  calling  for  information  as  to 
whether  the  Germans  have  "block  ships"  available  for  blockading  Dutch 
harbors • 


-5- 


CONFIDENTIAL 
1  Jul.  1942 

In  the  morning,  air  reconnaissance  observed  a  southbound  convoy  of  32 
steamers  off  Yarmouth. 

Own  Situation; 

In  the  area  of  the  Commanding  Admiral,  Defenses,  North  105 
ground  mines  were  removed  from  convoy  routes  during  the  month  of  June. 
92  of  these  represented  successful  mine-sweeping  operations  and  13 
were  hits  scored. 

At  0200  one  of  our  convoys  put  up  a  successful  defense  when  attacked 
by  3  enemy  PT  boats  and  1  plane  in  quadrant  AN  8531.  Enemy  planes 
unsuccessfully  bombed  harbor  defense  vessels  off  the  Ems  estuary. 

2.  Norway: 

On  29  and  30  Jun.  enemy  air  activity  in  the  area  of  the 
Admiral,  Arctic  Coast.  Airfields  at  Petsamo  and  Vardoe  were  bombed. 
The  Air  Force  brought  down  4  enemy  planes. 

On  30  Jun.  1  or  2  enemy  planes  over  Aasen  Fjord  in  the  afternoon.   It 
is  likely  that  they  were  reconnoitering  our  anchorages. 

Ship  movement  in  the  Norway  area  without  incident. 

3.  Arctic  Ocean; 

Enemy  Situation; 

At  1530  radio  monitoring  intercepted  a  report  of  a  ship  con- 
cerning an  air  shadower  of  the  convoy  "Competent"  in  quadrant  AB  7167, 
and  also  a  long  and  urgent  radiogram  at  1559  from  another  ship  to  the 
British  Admiralty  and  3  unidentified  addresses. 

According  zo   air  reconnaissance  reports,  submarines  can  be  expected 
in  the  large  quadrant  AB  on  the  convoy  route  from  Jan  Mayen  to  Bear 
Island,  in  addition  to  submarines  already  in  waiting  positions  in  the 
sea  areas  off  Trondheim  and  Vardoe.   The  sighting  of  9  destroyers  in 
the  Kola  Bay-Iokanga  area  together  with  the  reports  of  radio  monitoring 
in  the  Archangel  region  tend  to  indicate  the  presence  of  British  ships. 

The  commissioning  of  the  ANSON  on  27  Jun.  end  the  appearance  of  the 
WARSPITE  in  northern  Scotland  since  18  Jun.  brings  the  Home  Fleet  up 
to  the  strength  of  8  battleships  (1  of  the  WARSPITE  class,  2  of  the 
NELSON  class,  2  of  the  KING  GEORGE  V  class,  2  of  the  HOWE  class  and  1 
of  the  U.S.A. -WASHINGTON  class).   The  combat  readiness  of  these  ships 
is  doubtful  to  a  certain  extent,  but  there  is  a  possibility  that  a 
considerable  force  of  battleships  will  be  used  to  escort  PQ  convoys. 

At  1615  convoy  PQ  17  proceeding  in  northeasterly  direction  was  locsted 
by  submarines  in  quadrant  AB  71 60. 


-6- 


CONFIDENTIAL 
1  Jul.  1942 

Air  reconnaissance  reported  at  1650  in  quadrant  AE  3790  a  task  force 
consisting  of  1  carrier,  3  battleships,  6  cruisers,  6  destroyers  and 
3  escort  vessels  on  course  250°. 

A  decoded  Admiralty  radio  report  of  4  May  belatedly  discloses  that  the 
cruiser  EDINBURGH,  destroyers  FORESTER  and  FORESIGHT  and  mine  sweepers 
HARRIER  and  HUSSAR  took  part  in  the  engagement  with  the  8th  Destroyer 
Flotilla  on  the  morning  of  2  May.   The  EDINBURGH  was  hit  by  a 
torpedo  and  the  FORESIGHT  was  forced  to  proceed  at  reduced  speed.   One 

our  destroyers  (SCHOEMANN)  is  reported  to  have  been  sunk  and 
another  damaged.  The  EDINBURGH  had  to  be  abandoned  and  was  sunk  by 
the  FORESIGHT.   From  this  report  it  cannot  be  conclusively  established 
that  the  EDINBURGH  had  already  been  damaged  at  the  time  it  was 
attacked  by  the  8th  Destroyer  Flotilla,  since  the  time  of  the  torpedo 
hit  was  not  logged. 

Own  Situation: 

The  first  report  concerning  convoy  PQ  17  was  brought  in  by 
submarine  U  "255",  which  sighted  light  naval  forces  in  quadrant  AB  7166. 
Radio  monitoring  which  reported  convoy  "Competent"  confirmed  the  above 
report.  Further  confirmation  of  the  sighting  of  convoy  PO.  17  was 
supplied  by  submarine  U  "408 "  which  had  been  trailing  2  destroyers  of 
the  convoy  escort.   Thereupon,  Admiral,  Arctic  Ocean  assigned  4  sub- 
marines to  continue  trailing  the  convoy  and  ordered  a  patrol  line  of  6 
submarines  from  quadrant  AB  5155  to  5515  for  2  Jul.  at  1400. 

At  2100  air  reconnaissance  lost  contact  with  the  enemy  escort  group. 
Visibility  in  the  operations  zone  varies  abruptly  and  heavy  fog  pre- 
vails. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

According  to  radio  monitoring  2  surfaced  submarines  were 
escorted  from  Lavansaari  to  Kronstadt  on  30  Jun., 

2.  Own  Situation- 

Navigation  has  been  temporarily  suspended  in  the  entrances  to 
the  Baltic  Sea  because  of  suspected  aerial  mine  danger.  Escort  and 
sweeping  operations  are  being  carried  out  according  to  plan. 

The  Finns  report  that  minefields  Rukajaervi  K  and  L  were  laid  accord- 
ing to  plan. 


-7- 


CONFIDENTIAL 

1  Jul.  1942 

V.  Submarine  Warfare 

la  Enemy  Situation: 

Nothing  to  report  aside  from  a  few  enemy  messages  about  sub- 
marines sighted  off  the  American  coast  and  in  the  West  Indies. 

2.   Own  Situation: 

Submarines  U  "255"  and  "408"  first  established  contact  with  the 
escort  forces  of  convoy  P^  17.  Somewhat  later  submarine  U  "456"^ con- 
tacted the  convoy  itself.   The  tracking  submarines  were  repeatedly 
driven  away.   The  weather  is  unfavorable  for  submarine  operations. 

Submarine  D  "202n  reports  sinking  a  destroyer-escorted  steamer  off  the 
American  coast,  presumably  a  transport  of  the  SEMINOLE  type  (5,900  GRT). 
From  the  West  Indies  submarine  0  "67"  reports  the  sinking  of  a  tanker 
of  the  BRITISH  UNITY  type  (8,400  GRT).   From  the  Mediterranean  sub- 
marine U  "97 n   reports  .the  sinking  of  a  1,800  GRT  munitions  ship  north- 
east of  Port  Said.   This  represents  the  third  success  of  submarine  U 
H97fl  on  her  first  mission.   Further  reports  and  details  with  respect 
to  the  submarine  situation  in  War  Diary,  Part  B,  Vol.  IV. 

Special  Items: 

The  Japanese  Navy  has  forwarded  a  report  containing  the  positions 
of  the  Japanese  submarine  which  is  en  route  to  western  France  beginning 
17  Jun..  On  27  Jun.  sh#  crossed  the  longitude  of  Cape  Town  in  wester- 
ly direction  and  on  15  Jul.  the  submarine  is  scheduled  to  be  west  of 
the  Cape  Verde  Islands.   On  22  Jul.  she  is  scheduled  to  reach  45°N, 
13°W  and  is  due  to  reach  Lorient  on  24  Jul.. 

For  the  Naval  Staff's  instructions  to  Group  West  and  the  Commanding 
Admiral,  Submarines  see  Telegram  1400. 


VI.  Aerial  Warfare 

la   British  Isles  and  Vicinity: 

Nothing  to  report  for  the  day. 

On  the  night  of  1  Jul.,  42  of  our  planes  raided  Avonmouth  and  8  raided 
Portland.  A  small  force  of  enemy  planes  flew  over  Heligoland  Bight, 

presumably  with  the  intent  of  laying  mines. 

2.  Mediterranean  Theater: 

Malta  was  attacked  in  the  daytime  with  good  success.   21 
Stukas  were  sent  against  a  concentration  of  enemy  motor  vehicles  in 
the  El  Alamein  area.   In  the  Eastern  Mediterranean,  Beirut  and  Haifa 
were  the  objects  of  photo  reconnaissance. 


-8- 


# 


CONFIDENTIAL 
1   Jul.    1942 

3.  Eastern  Front; 

25  Ju  88' s  attacked  Murmashi  and  the  dock  Installations  of 
Murmansk  with  very  telling  effect.   At  1615  reconnaissance  spotted  an 
enemy  *force  composed  of  heavy  ships  in  the  Arctic  Ocean  (see  situ- 
ation Arctic  Ocean). 

4.  Special  Items; 

According  to  a  report  from  the  Operations  Staff  of  the  Air 
Force,  two  bomber  groups  and  one  fighter  group  were  transferred  tc  the 
Commanding  General,  Armed  Forces,  South  in  view  of  developments  in 
North  Africa  so  that  there  are  again  5  German  bomber  groups  in  Sicily. 
Both  bomber  groups  were  drawn  from  the  3rd  Air  Force.  As  a  result, 
the  planned  assault  on  British  airfields  must  be  cancelled.  The 
fighter  group  was  drawn  from  the  Eastern  Front. 


VII.   Warfare  in  the  Mediterranean  and  in  the  Black  Sea 

1.  Enemy  Situation; 
Mediterranean; 

Nothing  to  report  from  the  Western  and  Central  Mediterranean, 

At  1345  radio  monitoring  intercepted  a  report  from  a  British  escort 
ship  concerning  the  torpedoing  of  the  RHAKSES  (cannot  be  identified) 
73  miles  to  the  east  of  Port  Said.  The  report  of  30  Jun.  is  being 
corrected  to  read  that  np_  troop  embarkations  could  be  observed  at 
Haifa  and  Beirut. 

According  to  various  reports  from  Turkey  the  British  Fleet  is  supposed 
to  be  leaving  Alexandria,  and  part  of  it  is  reported  to  have  passed 
through  the  Suez  Canal  in  southerly  direction  as  early  as  29  Jun.. 
Other  vessels  are  supposed  to  have  proceeded  to  Haifa." 

•According  to  another  report  from  Turkey,  a  large  American  convoy  with 
material  for  the  6th  Army  and  equipment  for  Greek  units  in  Egypt  is 
expected  to  arrive  at  Suez  on  1  or  2  Jul.. 

Photo  reconnaissance  of  Haifa  at  1606  disclosed  the  presence  of  2 
cruisers,  3  destroyers,  5  escort  ships,  9  steamers  and  4  tankers  as 
well  as  1  hospital  ship.   5  steamers  and  2  tankers  were  located  in 
Beirut. 

2.  Own  Situation; 
Nothing  to  report. 


-9- 


CONFIDENTIAL 
1  Jul,  1942 

3.   Transport  of  Supplies  to  North  Africa; 

The  Commanding  Admiral,  German  Naval  Command,  Italy  urgent- 
•3 '-'■■     a     Commanding  Officer,  Supply  and  Transports,  Italy  to 

omenta  for  the  steamers  SAVONA  and  REGULUS,  both  of  which 
on.   Ehese  replacements  are  needed  for  German 
coasti    aipplng,   without  them  it  will  not  be  possible  to  provide 
^  ser  Army  with  its  minimum  of  supplies  (see  Telegram  1335). 

Ihe  Commanding  Officer,  Supply  and  Transports,  Italy  states  in  reply 
that  the  OSTIA  and  the  PONTINIA  as  well  as  temporarily  the  MENES  are 
assigned  to  coastal  shipping  and  that  16  new  naval  barges  may  be  ex- 
pected to  leave  from  Palermo  for  Africa  by  the  middle  of  July. 

The  convoy  of  the  BIXIO,  MONVISIO  and  ANKARA  has  again  returned  to 
Taranto  for  unknown  reasons.  The  steamer  OSTIA  has  left  Sfax  for 
Tripoli.  As  had  been  presumed,  the  dispatch  ship  DIANA  was  sunk  by  an 
enemy  submarine  70  miles  northwest  of  Tobruk  on  29  Jun..  A  transport 
submarine  has  arrived  in  Derna  and  2  others  are  en  route  from  Taranto 
to  Derna. 

4»  Area  Naval  Group  South; 

Age an  Sea; 

On  the  night  of  30  Jun.  enemy  planes  attacked  Candia,  Castelli, 
and  Tybaki.  The  net  barrages  off  Candia  were  completed  on  30  Jun..  On 
1  Jul.  both  net  barrages  were  swept  together  in  a  northwest  gale  so 
that  the  harbor  lies  exposed.   A  minimum  of  two  weeks  will  be  re- 
quired to  lay  the  nets  anew. 

The  Armed  Forces  High  Command,  Operations  Staff  directed  the  Command- 
ing General,  Armed  Forces,  Southeast  that  the  "Siena"  squadron  must 
also  be  considered  temporarily  for  i       pping  reinforcements  to  North 
Africa,  a  task  which  must  be  performe       the  aid  of  all  available 
means  (see  Telegram  2120). 

Black  Sea; 

Enemy  Situation; 

Air  reconnaiesanc  PT  boats  bound  for  Sevastopol. 

These  boats  are  proba  y  conv<        nissars  and  other  persons  who 
are  seeking  safety. 

Own  Situation; 

On  the  night  oi  yailable  German  and  Italian 

naval  forces  rere  de  stop<      *  reports  of  successes 

have  as  yet  :;his  r   on  the  mine -laying  mission 

by  the  1st  PT   at  Flot  >vas1    .  had  to  be  postponed. 


• 


CONFIDENTIAL 
1  Jul.  1942 

The  11th  Army  command  la  planning  to  stage  a ' landing  with  the  aid  of 
engineer  assault  boats  either  to  the  east  or  to  the  west  of  the 
Stryeletskaya  Bay.   In  support  of  the  operation  the  Admiral,  Black 
Sea  is  providing  the  17th  Harbor  Defense  Flotilla  for  the  clearing 
of  mines  along  the  course  of  the. landing  force,  as  well  as  4  naval 
barges  for  the  transport  of  light  artillery  and  ammunition. 

Naval  Command  Wesemann  reports  the  occupation  of  the  port  of  Balaklava 
by  a  company  of  marines  and  Rumanian  troops,  following  the  retreat  of 
the  Russians.  The  wharves  seem  to  be  fit  for  use. 

8  miles  to  the  west  of  Ochakov  mine -exploding  vessel  "191"  sank  after 
hitting  a  mine.  This  has,  unfortunately,  caused  the  loss  of  the  only 
German  mine -exploding  vessel  in  the  Black  Sea. 


VIII.   Situation  East  Asia 
Nothing  to  report 


IX.  Army  Situation 

1.  Russian  Fronts! 

Southern  Army  Group: 

The  tight  encirclement  of  Sevastopol  has  been  brought  near 
completion.   Individual  groups  had  already  temporarily  penetrated  into 
the  city.  The  Russian's  will  to  resist  has  been  broken.   The  fortress 
may  be  expected  to  fall  at  any  time. 

Continuing  the  break-through  against  the  enemy  forces  to  the  west  of 
the  Oskol  River,  Volokonovka  was  captured  and  a  bridgehead  established* 
Further  to  the  west  our  troops  are  advancing  in  northeasterly  direction, 
In  the  north  our  forces  have  reached  the  vicinity  of  Novy  Oskol- 
Skorodhoie.   Army  Group  Von  Weichs  made  satisfactory  progress  to  the 
east  and  southeast,  advancing  rapidly  with  the  armored  units.  The 
area  west  of  Gorshechnoie  was  reached.  The  Olym  River  was  crossed  north 
of  the  latter  locality.  Attacks  against  Kastornoie  are  now  in  progress. 

Central  Army  Group: 

The  fight  against  the  partisans  who  caused  the  derailment  of 
a  hospital  train  on  the  Bryansk-Pochep  sector  is  progressing  success- 
fully. 


-11- 


CONFIDENTIAL 
1  Jul.  1942 

Northern  Army  Group: 

In  the  advance  to  the  east  a  number  of  places  were  captured 
to  the  south  of  Staraya  Russa  on  the  Redvya  River.  An  enemy  thrust 
at  the  southern  front  of  Demyansk  was  repulsed. 

2.  Finnish  and  Norwegian  Front: 
No  activity  to  report. 

3.  North  Africa: 

Using  his  armored  forces,  the  enemy  offers  stubborn  re- 
sistance to  the  attack  on  El  Alamein.  South  of  El  Alamein  the 
armored  forces  pierced  the"  enemy  defense  front  during  the  noon  hours. 
Operations  continued  until  evening. 

According  to  an  intelligence  report  about  19,000  men  are  said  to  have 
been  transferred  from  Syria  to  Egypt  from  18  to  20  Jun.  (presumably 
the  9th  Australian  Infantry  Division  and  Foreign  units). 


-12- 


CONFIDENTIAL 
2  Jul.  1942 

Items  of  Political  Importance 

France: 

A  German  diplomatic  report  states  that  so  far  as  the  Laval  govern- 
ments fundamental  policy  is  concerned  it  would  be  prepared  to 
risk  a  diplomatic  break  witn  the  United  States  in  return  for  far- 
reaching  concessions  from  Germany.   Since  its  efforts  towards  that 
end  failed  to  materialize,  it  has  resorted  to  dodging  tactics  in 
the  knowledge  that  North  Africa's  defenses  are  inadequate  and  that 
the  domestic  situation  does  not  permit  a  premature  conflict  with 
the  Anglo-Americans.   So  long  as  Franco-German  relations  are  as 
unsettled  as  at  present,  German  authorities  will  see  to  it  that 
France  does  not  grant  extravagant  concessions,  that  sne  does  not 
tolerate  an  American  infiltration^  into  North  Africa,  and  that 
proper  steps  are  being  taken  for  preventing  an  exploitation  for 
propaganda  proposes  of  any  goods  which  America  mignt  deliver  to 
her. 

Great  Britain: 

The  House  of  Commons  debated  a  motion  for  a  vote  of  no  confidence 
in  the  government.  Lord  Milne^who  had  off ered< the  motion, demanded 
that  the  portfolio  of  Defense  Minister  should  be  separated  from 
tnat  of  tne  Prime  Minister  and  proposed  creating  a  single  Cnief 
of  Staff  for  all  3  brancnes  of  the  armed  forces.   By  mentioning 
the  Duke  of  Gloucester  for  the  latter  post  he  provoked  general 
laughter. 

Admiral  Keyes  supported  the  no-confidence  motion  on  the  grounds 
that  the  Churchill  cabinet  is  lacking  sufficient  authority  to 
prevail  against  incompetent  advisers.  He  specifically  referred 
to  tne  government's  failure  to  make  extensive  use  of  the  commandos 
who  were  previously  under  his  command,  and  the  fact  that  it  had 
not  provided  adequate  air  support  for  the  Mediterranean  Fleet. 

A  detailed  report  on  the  debates  in  both  Houses  of  Parliament  is 
in  Political  Review  No.  152,  Paragraphs  2. 


Conference  on  the  Situation  with  the  Chief.  Naval  Staff. 

I.   Convoy  PQ  17  having  been  spotted,  both  task  forces  of  the 
Fleet  are  as  of  1200  standing  by  for  their  scheduled  transfer  to 
the  " Roes sel sprung"  operations  bases.   Once  the  order  for  com- 
mencing the  operation  has  been  given  they  will  sail  from  Trondheim 
and  Bogen  Bay  at  2000  and  2400  respectively.   The  Naval  Staff, 
Operations  Division  is  keeping  the  permanent  representative  of  the 
Commander  in  Chief,  Navy  at  Fuehrer  Headquarters  posted  on  the 
development  of  the  enemy  situation  and  the  orders  of  Group  North. 


-13- 


CONFIDENTIAL 
2  Jul.  1942 

A  report  from  the  Deputy  Chief  of  the  Naval  Staff  Quartermaster 
Division  states  that  an  anti-torpedo  net  has  been  laid  in  the 
Alta  Fjord.   It  is,  however,  only  effective  as  a  defense  against 
submarines  and  affords  no  protection  against  aerial  ■fcorpedoes. 

II.  The  Chief,  Naval  Staff  Conmuni cat ions  Division  reports  that 
the  Air  Force,  General  Staff  has  approved  the  agreement  for  joint 
measures  against  the-  enemy  radar  service  between  Navy  Group  West 
and  the  3rd  Air  Force. 

III.  The  Deputy  Chief,  Naval  Staft  Quartermaster  Division  reports 
that  the  German  Naval  Cormand,  Italy  has  requested  a  loan  of 
10,000  tons  of  fuel  oil  from  Navy  reserves  for  Italian  naval 
forces  convoying  supply  shipments  to  North  Africa.  In  view  of 
the  critical  situation  the  Naval  Staff,  Quartermaster,  Division 
obtained  approval  for  such  a  step  from  the  Chief  of  Staff,  Naval 
Staff  in  the  absence  of  the  Chief,  Naval  Staff.  Appropriate 
action  for  shipment  of  the  requested  quantity  of  fuel  oil  has  been 
initiated. 

The  Chief,  Naval  Staff  approves. 

IV.  The  Deputy  Chief,  Naval  Staff  Quartermaster  Division  further 
reports  on  Italy's  projected  sovereignty  in  Egypt  in  the  event  of 
that  country's  occupation  as  previously  described  in  War  Diaries 
of  30  Jun.  and  1  Jul.   The  Chief  of  Staff,  Naval  Staff  is  of  the 
opinion  that  the  Fuehrer's  decision  will  entail  no  complications 
so  long  as  German  forces  retain  complete  operative  freedom  of 
action  in  the  Suez  area.  All  other  viewpoints  may  without 
hesitation  be  subordinated  to  political  considerations  which  are 
the  determining  factors  in  the  Fuehrer's  decision. 

V.  The  Foreign  Affairs  Section  of  the  Naval  Staff,  Operations 
Division  reports  on  the  following: 

a.  Negotiations  with  Switzerland  and  Portugal  regarding  ship 
traffic  in  connection  with  the  extension  of  the  blockaded  area. 
Portugal  is  taking  a  negative  stand. 

b.  The  exchange  of  notes  between  Argentina  and  Germany  con- 
cerning the  torpedoing  of  the  RIO  TERCERO.  It  would  help  to 
relieve  the  difficult  position  of  the  government  of  Argentina 
if  the  German  Navy  would  agree  to  stage  a  ceremony  in  honor  of 
the  Argentine  flag  at  the  termination  of  the  war,  in  accordance 
with  the  precedent  set  in  1917.  The  Chief,  Naval  Staff  hereby 
approves  the  proposal  of  the  Naval  Staff. 

c.  A  reply  by  the  Commander  in  Chief,  Navy  to  Darlan's  letter 
concerning  repairs  on  the  DUNKERQUE  and  the  strengthening  of 
anti-aircraft  defenses  at  Toulon. 


-14- 


CONFIDENTIAL 
H   Jul.  1942 

The  Naval  Stafr  proposes  that  an  affirmative  answer  be  given  to 
the  first  point.  Concerning  the  question  of  strengtnening  the 
anti-aircraft  defenses,  tne  reply  should  state  tnat  tnis  comes 
under  the  jurisdiction  of  the  Air  Force  and  that  the  consent  of 
the  Italians  is  indispensable. 

The  Chief,  Naval  Staff  is  in  accord. 

Fuller  particulars  concerning  paragraphs  "a"  to  "c"  in  War  Diary, 
Part  C,  Vol.  VIII. 

VI.  The  Naval  Attache  in  Tokyo  reports  that  he  has  thus  far  been 
unsuccessful  in  obtaining  Japanese  consent  to  Captain  Vermehxen's 
assignment  at  Singapore  despite  most  strenuous  efforts.   In  view 
of  this  unfriendly  and  mistrustful  attitude  of  our  Japanese  ally, 
Captain  Vermehren  will  be  assigned  to  Etappe  Tokyo  for  matters 
pertaining  to  blockade-running.  Meanwhile,  efforts  to  have  him 
assigned  to  the  first  post  will  be  continued. 

In  a  Very  Restricted  Circle: 

VII.  Report  by  the  Chief  of  Operations  Branch,  Naval  Staff, 
Operations  Division  concerning  the  order  of  the  Italian  Hign  Command 
dated  29  Jun.  issued  to  the  High  Command,  North  Africa  and  to  the 
Commanding  General,  Armed  Forces,  3outh: 

1.   The  Duce  orders  that  a  friendly  attitude  be;  maintained 
towards  the  authorities  and  population  of  Egypt  if  they  prove 
worthy  of  such  treatment. 

2.  The  Air  Force  is  to  confine  its  attacks  to  military 
targets. 

3.  Tasks  of  the  German  and  Italian  Air  Forces: 

a.  Supporting  land  fighting. 

b.  Combatting  enemy  naval  forces  and  laying  mines 
£n  the  harbor  of  Alexandria  and  in  the  Suez  Canal. 

c.  Harassing  enemy  supply  lines. 

d.  Patrolling  supply  routes  out  of  Upper  Egypt. 

According  to  a  report  from  the  German  General  in  Rome  to  the  Armed 
Forces  High  Command,  Operations  Staff,  the  Duce  landed  at  the 
Derna  airport  on  29  Jun. 

VIII.  Another  report  of  Chief  of  Operations  Branch,  Naval  Staff, 
Operations  Division: 

Group  North  has  examined  the  question  concerning  shifting 


-15- 


CONFIDENTIAL 
2  Jul.  1942 

the  routes  in  the  North  Sea  In  accordance  witn  the  directive  of  the 
Naval  Staff  (see  War  Diary  18  Jun.)  and  has  reported  ordering  change 
of  route  through  quadrants  8323  and  8311  as  an  immediate  measure. 
Plans  also  include  clearing  away  of  mine  fields  1,  2  and  3  for  the 
purpose  of  providing  a  system  of  alternate  routes. 

On  27  Jun.  the  Naval  Staff  granted  authorization  to  proceed  with 

tne  sweeping  of  these  mine  fields. 

Group  North  will  lay  down  a  new  "Westwall"  mine  field  in  the  area 
of  tne  old  fields  1  to  6  on  the  line  leading  from  the  old  field 
4a  to  field  9  so  that  the  new  field  6a  (Thusnelda)  can  be  laid 
properly.  Group  North  also  proposed  laying  mine  field  5a  from 
quadrant  AN  6864  upper  right  corner  to  quadrant  6833  lower  left 
corner  to  replace  the "old  fields  1  to  4.  These  new  mine  fields 
5a  and  6a  mean  that  obsolete  routes  I  and  II  are  definitely 
abandonee.  Snould  the  need  arise  a  new  route  could  be  created  north 
of  mine  field  6a  tnrough  tne  old  field  9.  Tne  Group  also  proposes 
a  mine  field  10a  from  quadrant  AN  6626  KM  to  AN  6385  KL.  Renewal 
and  strengthening  of  the  southwestern  mine  fields  0,  1,  and_3!  1b 
contemplated  in  the  autumn,  since  tne  nights  are  too  short  at  present 
for  the  performance  of  this  task.  The  Group  is  in  essential  agree- 
ment with  tne  idea  of  tne  Naval  Staff  that  the  possibility  of  an 
enemy  landing  on  the  Dutch  coast  has  made  it  particularly  urgent  to 
strengthen  tne  southwestern  mine  fields. 

The  Onief,  Naval  Staff  is  in  accord. 


Special  Items; 

I.   Tne  Naval  Staff,  Operations  Division  has  examined  the  problem 
of  furnishing  120  naval  barges  for  operation  "Wiesengrund"  with 
the  Naval  Staff,  Quartermaster  Division  and  Construction  Division. 
If  this  operation  begins  before  1  Oct.  1942  there  will  be  no  other 
way  of  meeting  the  requirement  except  by  using  the  bargee  of  the 
21st  and  a3rd  Air  Forces.   It  will  require  8  weeks  from  tne  time 
tne  oraer  is  given  to  the  time  of  tne  arrival  at  the  place  of  assign- 
ment. Beginning  about  1  Oct.  1942  it  will  no  longer  be  necessary  to 
draw  on  the  21st  and  27th  Air  Forces,  sinoe  it  is  anticipated  that 
a  sufficient  number  of  new  naval  barges  will  have  been  constructed 
by  that  date. 

The  Naval  Staff  requests,  therefore  that  if  operation  "Wiesengrund" 
should  take  place  during  the  coming  fall  the  Armed  Foroes  High 
Command,  Operations  Staff  advise  tnera  8  weeks  in  advance  of  the 
scheduled  date  of  attack.  Tnis  mucn  time  is  necessary  to  assemble, 
transfer,  and  train  the  invasion  flotillas,  insofar  as  their 
oomponent  vessels  are  still  being  used  in  other  places  from  which 


-16- 


CONFIDENTIAL 
2  Jul.  1942 

they  cannot  be  withdrawn  prematurely  without  detriment  to  the  trans- 
port of  supplies  in  the  East  and  in  the  arctic  region. 

The  Naval  Staff,  Operations  Division  has  also  requested  a  flotilla 
staff  for'lahding  operations.   The  Naval  Staff,  Quartermaster 
Division  is  making  the  necessary  arrangements  for  this  purpose. 

Finally,  an  order  has  been  issued  by  the  Chief,  Operations  Division., 
Naval  Staff  to.  Naval  Group  South  to  assemble  for  immediate  commitment 
a  landing  flotilla  in  the  Black  Sea  from  the  landing  craft  available 
in  that  area. 

II.  Group  North  has  submitted  an  exhaustive  report  concerning 
measures  which  it  has  already  taken  or  which  are  scheduled  fot   the 
strengthening  of  coastal  defenses  in  those  sectors  which  are 
likely  to  be  chosen  by  the  enemy  for  landings  or  forays  within  the 
area  under  the  command  of  the  Group: 

a.  The  coast  of  Holland,  particularly  the  stretch  between 
Texel  and  Flushing. 

b.  The  west  coast  of  Denmark  as  far  as  Skagen. 

c.  The  Norwegian  coast. 

The  report  includes  pertinent  requests  with  respect  to  organization, 
mine-laying  and  blockading  in  so  far  as  necessary. 

Report  as  per  1/Skl  14504/42  Gkdos.  has  been  filed  under  Vol.  2, 
file  1,  pages  92-109. 

For  consent  to  the  proposal  contained  in  this  report  concerning 
the  assignment  of  the  7th  Mine  Sweeper  Flotilla  to  the  Commanding 
Admiral,  Defenses,  North  and  the  15th  Mine  Sweeper  Flotilla  to  the 
Commanding  Admiral,  Norway  see  War  Diary  1  Jul. 

Naval  Staff,  Operations  Division  is  in  full  accord  with  the  plans 
of  Group  North  and  supports  unreservedly  the  proposals,  which  are 
to  be  dealt  with  further  by  the  Naval  Staff,  Quartermaster  Division. 
The  only  exception  is  the  proposal  for  the  assembly  of  another 
motor  mine  sweeper  flotilla  for  the  Commanding  Admiral,  Defenses, 
Baltic  Sea  from  the  motor  mine  sweepers  available  at  the  Deputy 
Admiral,  Submarines.   The  assembly  of  such  a  motor  mine  sweeper 
flotilla  could  only  be  considered  if  it  will  not  injure  the  submarine 
training  program. 

III.  Report  of  the  Fleet  Command  concerning  the  schedule  for  the 
naval  forces  of  the  Fleet  for  Jul.  1942.  Training  operations  at 
sea  have  been  greatly  curtailed  due  to  the  shortage  of  fuel  oil. 


-17- 


3   Jul.    1942 


CONFIDENTIAL 


1.  Battleships 
TIRPITZ 
SCHARNHORST 

2.  Cruisers 

a.  PRINZ  EUGEN 

ADMIRAL  HIPPER 

b.  LUETZOW 
ADMIRAL  SCHEER 

c.  KOELN 

NUERNBERG 

3.  Training  Ships 
LEIPZIG 
EMDEN 
SCHLESWIG-HOLSTEIN 

SCHLESIEN 

4.  Destroyers 

a.  5th  Destroyer   Flotilla: 
FRIEDRICH   ECKOLDT 
FRIEDRICH   IHN 

ERICH  STEINBRINCK 
RICHARD  BEITZEN 

b.  6th  Destroyer  Flotilla: 
KARL   GALSTER 

HANS  LODY 


On  operational  assignment. 
under  repair  until  Aug.  1942. 


under  repair  until  the  begin- 
ning of  Sep.  1942. 

On  operational  assignment. 

On  operational  assignment. 

On  operational  assignment. 

On  training  duty  and  operational 
assignment. 

In  dock  until  the  middle  of 
Aug.  1942. 


Engaged  in  their  own  training 
program  and  at  the  disposal 
of  the  Naval  Gunnery  School. 

Damaged  and  in  for  repairs 
until  Aug.  1942. 

Training. 


Engine  repairs  until  Jul.  1942 

On  operational  assignment  and 
engine  overhauling. 

On  operational  assignment. 

On  operational  assignment. 


On  operational  assignment. 
On  operational  assignment. 


-18- 


2   Jul.    1942 


CONFIDENTIAL 


5. 


THEODOR  RIEDEL 
PAUL  JAOOBI 

Z    "31" 

Z   "37" 

c.  8tn  Destroyer  Flotilla: 

Z  "23" 

Z  "24" 

Z  "25" 

Z  "27" 

Z  "28" 

Z  "29" 

Z  "30" 

Torpedo  boats 

a.  2nd  Torpedo  Boat  Flotilla: 

■n  n  411   ^1  11  yn    ip  "T_0" 


On  operational  assignment. 

In  for  engine  overhaul  until 
Sep.  1942. 

Tests  and  uncompleted  work. 

Commissioning. 


Training  to  be  followed  by 
operational  assignment. 

Operational  assignment  and  in 
dock. 

Engine  overhaul. 

On  operational  assignment. 

On  operational  assignment. 

On  operational  assignment. 

On  operational  assignment. 


T  "9",  T  "12" 

T  "5" 

Reserve  boats 

T  "2",  T  "11",  T  "3" 

b.  3rd  Torpedo  Boat  Flotilla 

T  "13",  T  "14",  T  "15" 

T  "16",  T  "17" 
T  "18",  T  "19" 


Training  and  operational 
assignment. 

At  the  disposal  of  torpedo 
training  school. 

Engine  overhaul. 


In  dock. 


Training  and  operational 

assignment. 

Repair  or  engine  overhaul. 

Available  for  torpedo  train- 
ing school  or  on  operational 
assignment. 


-19- 


CONFIDENTIAL 


2  Jul.  1942 


6. 


7. 


T  "20",  T  "21" 

c.  5th  Torpedo  Boat  Flotilla: 
FALKE,  KONDOR,  JAGUAR 

MO  EWE 


T  "22",  T  ."23" 

PT  boats 

The  1st,  2nd,  3rd,  4th,  8th, 
and  8th  PT  Boat  Flotillas 

5th  and  7th  PT  Boat  Flotilla 

Mine  Layers 

OSTMARK,  ROLAND,  ULM 

SKAGERRAK 
BRUMMER 

KAISER 


COBRA 


Tests  after  being  com- 
missioned. 


To  remain  in  dock  until  Set.   , 
the  JAGUAR  until  Aug. 

Tests  and  training  until 
the  end  of  Jul.  194<s,  or 
to  be  used  for  torpedo 
training  school. 

For  completion  of  work, 
tests,  and  training. 


On  operational  assignment. 
Training  in  the  home  area. 


Operational  assignment  with 
Group  North. 

Operational  assignment  with 
Commanding  Admiral  Norway. 

Engine  overhauling.  Later 
operational  assignment  with 
Group  North. 

Operational  assignment  in 
the  Baltic  area.  (Under 
tactical  command  of  the 
Commander  Mine  Sweeper, 
Baltic  Sea.) 

In  dock  (at  Rotterdam) 
until  about  the  end  of 
Jul.  1942. 


IV.  The  Hydrograpnic  Department  is  planning  to  reorganize  the  mine 
intelligence  service. 

The  Naval  Staff,  Operations  Division  is  essentially  in  accord  with 
the  outlined  plan  but  requests  that  the  comments  of  the  Group  Commands 
and  the  Fleet  be  obtained,  while  itself  commenting  on  specific  points. 


-20- 


CONFIDENTIAL 
*   Jul.  194a 

A  copy  of  the  corresponding  communication  1/Skl  I  E  14883/42  Gkdos. 
sent  to  the  Hydrograpnic  and  Meteorological  Division  in  War  Diary, 
Part  C,  Vol.  VI. 

V.  A  comparison  of  the  number  of  mine-exploding  vessels  which 
were  requested  by  the  Group  Commands  West  and  Nortn  with  the  number 
actually  available  as  of  the  beginning  of  Jun.  1942  snows  that 
there  is  a  surplus  of  6  large  mine-exploding  vessels  and  a  shortage 
of  7  small  vessels  of  that  type.  The  Naval  Staff,  Operations 
Division  has  informed  the  Naval  Staff,  Quartermaster  Division  of 
the  consequent  requirements  with  regard  to  mine-exploding  vessels. 
Copy  of  the  corresponding  communication^ 1 /Ski  I  op  14675/43  Gkdos. 
in  War  Diary,  Part  C,  Vol.  VI. 

VI.  Tne  Armistice  Commission  transmits  the  following  report  from 
the  Frencn  delegation: 

a.  Tne  American  Cnarge  d1 Affaires  at  Vichy  called  on  Rear  Admiral 
Aupnan  at  noon  of  1  Jul.   The  purpose  of  his  call  was  to  ascertain 
the  intentions  of  the  French  government  with  respect  to  its  naval 
forces  in  Alexandria.  Auphan  declared  that  the  French  Government 
has  no  other  aim  than  to  keep  the  ships  under  the,  Frencn  flag 
according  to  the  armistice  agreements.   The  American  request  that 

in  the  event  of  a  withdrawal  of  Britien  combat  forces  from  Alexandria 
the  Frencn  ships  should  proceed  to  tne  Red  Sea  was  categorically 
rejected. 

b.  In  tne  afternoon  of  1  Jul.  the  American  Charge  d'Affaires 
called  on  Laval  who  received  him  in  the  presence  of  Aupnan.   In 
the  course  of  this  visit  the  French  Government,  in  order  to  avoid 
any  possible  misunderstanding  concerning  its  decision,  handed  a 
note  to  the  American  Charge  d'Affaires.   The  note  contains  the 
following  declaration: 

"Tne  French  Government  wishes  to  retain  possession  of  tne  French 
ships  at  Alexandria  by  every  means  possible.   Should  the  British 
Navy  retreat  from  Alexandria,  tne  French  Government  will  not 
tolerate  any  compulsory  measures  by  the  British  against  the  Frencn 
ships.   They  will  defend  themselves  with  all  available  means." 

Vice  Admiral  Godfroy  has  received  orders  to  reject  demands  to  join 
the  British  naval  forces  in  the  event  of  their  withdrawal  from 
Alexandria.   Grave  consequences  will  follow  if  an  attempt  snould 
be  made  to  repeat  the  outrage  that  took  place  at  Mers  el  Kebir. 

In  conformity  with  the  terms  of  the  armistice  agreement  all  Frencn 
warships  must  remain  Frencn.  Tne  French  Government  would  be  most 
gratified  if  ships  of  the  French  fleet  were  allowed  to  proceed 
undisturbed  from  Alexandria  to  the  nearest  French  port. 


-21- 


CONFIDENTIAL 

2  Jul.    1942 

The  Naval  Staff  finds  itself  fully  in  accord  with 
the  position  taken  by  the  French  Government  since 
any  likelihood  of  getting  the  French  ships  under 
our  control  by  some  means  must  be  excluded. 

VII.  For  a  compilation  of  enemy  reports  intercepted  during  the 
week  of  22  to  28  Jun.  by  radio  decoding  and  monitoring  service  see 
Radio  Intelligence  Reports  No.  26/42  of  the  Naval  Staff,  Com- 
munications Division,  Communications  Intelligence  Branch. 

Important  data  secured  through  radio  decoding: 

A  British  Admiralty  report  of  13  May  contains  the  information  that 

3  British  and  2  Allied  steamers  were  sunjc  700  miles  west  of  Ireland 
out  of  a  convoy  bound  for  America.  According  to  a  further  report 
of  the  Admiralty  the  submarine  URGE,  commissioned  in  1942  and 
stationed  in  Malta,  has  been  lost. 


Situation  2  Jul.  1942 
I.   War  in  Foreign  Waters 
1.   Enemy  Situation: 

South  Atlantic: 

The  cruiser  DIOMEDE  left  Montevideo  on  26  Jun. 

According  to  a  decoded  secret  report  of  the  Admiralty,  on  15  Jun, 
a  convoy  ran  into  the  mine  field  off  Agulhas.   The  destroyer  tender 
HECLA  as  well  as  an  8,000  GRT  steamer  were  damaged.   The  HECLA 
reached  a  port. 

Thus  information  has  been  obtained  about  the  seoond 
and  third  successes  of  the  DOGGERBANK  in  this  mine 
field, 

Indian  Ocean: 

After  the  attack  on  a  steamer  by  a  Japanese  submarine 
north  of  the  Mozambique  Channel  on  1  Jul.,  a  report  of  2  Jul. 
states  that  another  steamer  was  attacked  30  miles  south  of 
Mozambique,  but  without  success. 

This  evidence  of  Japanese  activity  at  this  important 
point  along  the  enemy  supply  routes  to  India  and 
the  Near  East  is  most  welcome  news. 


-22- 


CONFIDENTIAL 
2    Jul.    1942 

2.   Own  Situation: 

According  to  a. report  of  the  Japanese  Navy  the  prize 
ships  NANKIN  and  HERBORG  reached  Batavia  on  25  Jun.  and  29  Jun. , 
respectively.   They  will  proceed  to  Yokohama  at  the  earliest 
possible  date. 

This  highly  gratifying  news  has  been  communicated  by  tne  Naval 
Staff  to  ship  "10"  by  Radiogram  0104. 

By  Radiogram  1834  all  forces  in  foreign  waters  were . informed  con- 
cerning radio  corr.muni cat  ions  between  Norddeich  and  Japanese  sub- 
marine. 

Information  concerning  enemy  situation  by  Radiograms  1517,  1751, 
1946. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

A  convoy  consisting  of  71  steamers  escorted  by  1  destroyer 
and  3  corvettes,  which  set  out  from  Gibraltar,  was  observed  by 
reconnaissance  of  the  Air  Command,  Atlantic  Coast  at  0845,  100 
miles  west  by  southwest  of  Cape  St.  Vincent  on  a  330°  course. 

The  German  Armed  Forces  Intelligence  Center,  Spain  believes  that 
the  enemy  formation  composed  of  11  ships  and  1  carrier  (see  War 
Diary  1  Jul.)  which  was  reported  on  29  Jun.  near  Fayal  (Azores) 
has  been  assigned  the  task  of  escorting  the  above  convoy. 

2.  Own  Situation: 

« 

Due  to  fog  the  torpedo  operations  of  the  2nd  and  4th 
PT  Boat  Flotillas  planned  for  the  night  of  2  Jul.  have  had  to  be 
abandoned.   The  target  tug  LE  VENT  struck  a  mine  and  sank  on  1  Jul, 
east  of  point  "Herz"  446. 


III.  North  Sea.  Norway.  Arctic  Ocean 

North  Sea: 

1.   Enemv  Situation: 

Convoys  composed  of  30  steamers  were  observed  off  the 
Huraber  and  entering  the  Wash;  1  convoy  made  up  of  5  steamers  was 
located  off  Great  Yarmouth. 


-23- 


OQNFID^UTIAL 
2  Jul.  1942 

2.    Ova  Situation: 

On  the  night  of  30  Jun.  6  Dutch  fishing  trawlers  were 
subjected  to  search  by  British  PT  boats.   On  the  night  of  1  Jul. 
enemy  planes  unsuccessfully  strafed  ships  of  the  Rhein  Flotilla  near 
Domburg.   The  21st  Mine  Sweeper  Flotilla  drove  off  the  enemy  raiders. 
Enemy  planes  dropped  mines  in  the  German  Bight. 

The  21st  and  22nd  Mine  Sweeper  Flotillas  have  started  sweeping 
mine  fields  "SO  1"  and  "SO  2'  without  success  up  to  the  present. 
In  the  afternoon  and  evening  enemy  air  activity  increased  over 
the  German  Bight  and  Schleswlg-Holstein.   It  is  suspected  that 
the  enemy  scattered  mines  off  the  Eras  estuary  and  at  Borkum. 
Pursuit  planes  gave  chase  without  contacting  the  enemy. 

The  Air  Force  Operations  Staff  directed  the  Commander,  Central  Air 
Force  to  arrange  with  the  Commanding  Admiral,  Defenses,  North  to 
have  our  fighter  planes  appear  at  least  from  time  to  time  over  our 
convoys  when  a  large  number  of  Swedish  steamers  is  included  in  the 
convoy.   This  measure  is  to  be  adopted  inasmuch  as  Swedish  captains 
have  begun  to  decline  sailing  the  North  Sea  lanes,  claiming  that 
the  British  are  furnishing  far  better  fighter  protection.   This 
directive  is  to  be  carried  out  insofar  as  other  missions  and  the 
fuel  situation  will  permit. 

It  would  be  still  more  welcome  if  the  convoys  of  the 
Commanding  Admiral,  Defenses,  North  were  given  actual 
-.nstead  of  token  protection. 

Norway : 

On  30  Jun.  battery  454  fired  thirty  one  21  cm.  shells 
at  the  Rybachi  Peninsula.   An  enemy  gun  is  believed  to  have  been  put 
out  of  commission. 

Slight  damages  were  inflicted  by  the  enemy  on  30  Jun.  during  enemy 
air  raids  on  Kirkenes  and  Petsamo.   See  Aerial  Warfare  In  War 
Diary  30  Jun.  for  the  report  concerning  the  loss  of  21  toomtoers 
at  the  Banak  airport. 

2  enemy  planes  unsuccessfully  attacked  the  Norwegian  steamer 
HAVXONG  on  2  Jul.  in  the  Brei  Sound. 

The  Vest  Fjord  mine  field,  in  the  area  of  Admiral,  West  Norwegian 
Coast,  was  cleared  and  a  new  anti- submarine  mine  field  laid  in  the 
Nord  Fjord  according  to  plan. 

The  Commander,  Mine  Sweepers  left  Stavanger  on  the  afternoon  of 


•24- 


2  Jul.  1942 


CONFIDENTIAL 


1  Jul.  with  the  OSTMARK,  BRUMMER,  K 
mine  sweepers  for  operation  "Erika" 


1  and  K  4  as  well  as  motor 
The  mission  was  carried  out 


according  to  plan  on  the  night  of  1  Jul. 

Arctic  Ocean: 

1 .   Enemy  Situation; 

Convoy  PQ  17,  consisting  of  25  steamers,  was  reported  at 
1530  on  1  Jul.  and  was  again  seen  at  0344  on  2  Jul.  by  submarine 
U  "456"  in  quadrant  AB  4914.   Submarines  maintained  contact  with 
the  convoy  throughout  the  day.  According  to  radio  monitoring  and 
air  reconnaissance,  convoy  PQ  13  was  already  in  quadrant  AB  5426 
at  1050.   It  was  spotted  by  submarine  U  "88Y'  in  quadrant  AB  5492 
at  the  same  time.   Contact  was  maintained  until  1431.   Thus  it  can 
be  seen  that  these  two  convoys  have  already  passed  each  other.  ' 

The  Air  Force  maintained  intermittant  contact  with  convoy  QP  13 
from  1015  to  1330.   Convoy  PQ  17  was  spotted  at  1239  and  1420. 
It  was  reported  to  consist  of  32  to  37  steamers,  12  destroyers  and 
4  corvettes. 

Since  2100  on  1  Jul.  no  further  reports  have  been  received  con- 
cerning the  enemy  force  which  had  been  spotted  on  1  Jul.   Likewise 
no  other  enemy  forces  reported  in  the  Arctic  Ocean  since  that  date. 

Very  difficult  conditions  prevail  in  the  operations  area  due  to  fog 
banks . 


2. 


Own  Situation: 


At  1250  Group  North  reported  an  order  to  transfer  Task 
Forces  1  and  2  for  operation  "Roes sel sprung". 

The  Naval  Staff  has  been  concerned  for  quite  some 
time  that  the  enemy  would  delay  starting  his  PQ  17 
and  QP  13  convoys  until  the  fogs  known  to  prevail 
in  July  would  create  more  favorable  conditions. 
Therefore,  our  own  operational  conditions  have  in  every 
respect  grown  worse  than  they  would  have  been  in  the 
month  of  June.  Nevertheless,  there  still  exist  definite 
opportunities  for  our  task  force  to  attack.  For  this 
reason  it  seems  proper  to  transfer  the  task  forces  to 
the  north  as  planned,  particularly  since  the  meager 
reports  thus  far  available  do  not  yet  allow  any  con- 
clusions as  to  the  probable  behavior  of  the  enemy  es- 
cort force. 

The  Admiral,  Arctic  Ocean  rightly  insisted  on  the  assignment  of 
6  submarines  to  the  patrol  line  scheduled  for  1400.  At  1618  he 


-25- 


CONFIDENTIAL 
2  Jul.  1942 

issued  instructions  allowing  all  boats,  with  the  exception  of  the 
shadower,  to  attack  at  their  discretion.  Submarine  u  "367"  at- 
tempted tq  attack  but  was  beaten  off  by  a  destroyer.   Submarine 
U  "^53"  reported  firing  on  a  destroyer  and  missing  twice. 

After  submarine  U  "88"  nad  spotted  convoy  QJ?  13,  all  submarines  were 
ordered  not  to  engage  it.  After  a  temporary  improvement  in  visibility 
in  the  course  of  the  day,  the  weather  turned  worse. 


17.  Skagerrak.  Baltic  Sea  Entrances.  Baltic  Sea 

1.  Enemy  Situation: 

According  to  radio  monitoring  1  submarine  depot  ship  and 
9  submarines  were  at  sea.   Submarine  S  " 7"  was  supposed  to  be  trans- 
ferred from  Kronstadt  to  Lavansaari  between  1  and  3  Jul.,  proceeding 
surfaced.  A  mine  layer  reported  that  sne  had  repeatedly  detected 
the  sound  of  a  submarine  to  tne  north  of  Sassnitz. 

2.  Own  Situation: 

On  the  nignt  of  1  Jul.  a  number  of  enemy  planes  laid  mines 
in  the  Baltic  Sea  entrances.  During  tne  day  ground  mines  were 
cleared  at  Bueilc,  Heisingoer,  Korsoer  and  Kjelsnor.  Twenty  four 
mine  detonations,  probably  among  mines  which  were  laid  on  the 
previous  nignt,  were  observed  at  54°  43.7*N  and  10°  46.4!E. 

In  the  afternoon  5  low  flying  enemy  planes  penetrated  as  far  as 
Flensburg  and  dropped  bombs,  damaging  the  new  snipyard-and  the  gas 
works.   For  details  see  Telegrams  1909  and  2000.  Anti-aircraft  fire 
from  the  THETIS  was  efiective. 

Mine  field  "Nasnorn  IX"  was  laid  in  Kronstadt  Bay  aocoraing  to  plan. 

The  Navy  nas  promised  tne  Nortnern  Army  Group  prompt  delivery  of 
one  15-cm  coastal  battery  from  tne  home  area  and  one  7.5-cm  or 
8.8-cra  battery  from  the  area  of  the  Admiral,  Baltic  Countries, 
These  batteries  will  be  used  for  combatting  enemy  shipping  in  the 
Gulf  of  Finland. 


V.   Submarine  Warfare 

1.   Enemv  Situation: 

Reports  nave  been  intercepted  tnat  submarines  were  sighted 


-26- 


CONFIDENTIAL 
2  Jul.  1942 

east  or  San  Juan,  northeast  of  Cape  Charles  and  near  the  Great 
Banama  Bank  .  It  is  only  now  revealed  by  radio  decoding  tnat  en 
14  Jun.  1  British  submarine  was  in  position  south  of  the  Scilly 
Islands  and  1  at  49°  30' N  and  07°  40'  W. 

2.   Own  Situation; 

For  information  concerning  submarine  operations  against 
convoys  PQ  17  and  QP  13,  see  situation  Arctic  Ocean.   For  details 
see  supplementary  submarine  situation  report  in  War  Diary,  Part  B, 
Vol.  IV. 

No  other  reports  of  successes  have  been  received. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vioinitv; 

On  the  night  of  2  Jul.  enemy  air  activity  over  the  north- 
western part  of  Germany,  with  Bremen  as  the  main  target. 

2.  Mediterranean  Theater: 

Air  operations  are  concentrating  on  the  El  Alamein  area. 
Reconnaissance  flights  over  the  eastern  Mediterranean  and  the  area 
between  Alexandria  and  Port-  Said. 

3.  Eastern  Front: 

Air  operations  centered  on  the  support  of  the  attacking 
armies  of  the  Southern  Army  Group. 

In  the  Black  Sea  area  the  Air  Commander,  South  reports  successful 
attacks  against  ships  at  Anapa,  Temryuk  and  Novorossisk.   During 
these  attacks  2  destroyers  and  the  training  ship  KOMINTERN  were 
damaged  and  a  few  smaller  coastal  vessels  were  sunk.   For  particulars 
see  daily  situation  report. 

The  5th  Air  Force  reported  the  renewal  of  successful  assaults  on 
the  power  station  at  Murmasni  as  well  as  against  anti-aircraft 
installations  in  the  Rosta  area. 

For  data  concerning  the  use  of  forces  of  the  5th  Air  Force  for 
reconnaissance  and  against  convoy  PQ  17  see  situation  Arctic  Ocean. 


-27- 


CONFIDENTIAL 
2  Jul.  1942 

VII.  Warfare  in  the  Mediterranean  and  in  the  Black  Sea 

1.   Enemy  Situation; 

Mediterranean: 

On  1  Jul.  a  cruiser  of  the  CALEDON  class  left  Gibraltar 
for  the  east. 

The  first  published  report  of  the  U.S.  naval  forces  in  Europe  con- 
tains a  description  of  the  manner  in  which  the  carrier  WASP  delivered 
planes  to  Malta  without  damage  to  the  ship  or  its  escorts.   The 
American  report  presumably  refers  to  the  transfer  of  47  planes  about 
which  the  German  Air  Force  had  reported  on  21  Apr.  Air  reconnaissance, 
nad  located  an  aircraft  carrier  north  of  Algiers  on  20  and  21  Apr, 
The  ARGUS  and  the  EAGLE  had  been  spotted  in  port. 

On  the  night  of  2  Jul.  radio  monitoring  intercepted  a  report  from 
a  British  plane  concerning  an  unsuccessful  bomb  attack  on  one  of 
our  convoys  consisting  of  3  steamers,  8  miles  west  of  the  island  of 
Paxos  (probably  the  convoy  of  the  BIXIO). 

Photo  reconnaissance  revealed  that  the  floating  dock  and  the  dry 
dock  in  Alexandria  were  unoccupied.  Only  1  small  warship,  1 
hospital  ship,  1  tanker  and  2  steamers  could  be  discerned  on  the 
photos,  in  addition  to  the  French  warfehips. 

At  1800  air  reconnaissance  located  an  eastbound  naval  force  off 
Damietta,  consisting  of  3  heavy  warships  and  including  what  appeared 
to  be  a  battleship  (QUEEN  ELIZABETH) .   The  report  also  spoke  of 
brisk  traffic  of  merchantmen  and  convoys  between  Port  Said  and 
Jaffa.  No  change  was  found  in  the  ships  lying  in  the  harbors  of 
Haifa  and  Beirut. 

According  to  radio  decoding  the  French  Admiral  aboard  the  DUQUESNE 
(in  Alexandria)  received  an  order  from  the  French  Admiralty  Staff 
to  carry  out  his  instructions  to  the  letter.   The  order  stated  that 
the  German  and  Italian  governments  promised  not  to  confiscate  the 
French  vessels. 

2.  Own  Situation: 

The  3rd  PT  Flotilla  did  not  carry  out  any  missions  due 
to  weather  conditions.   J  PT  boats   have  entered  Suda  on  their 
run  from  Augusta  to  North  Africa. 

The  Operations  Staff  of  the  German  Naval  Command,  Italy  moved  from 
Tobruk  to  Marea  Matruh.   The  Commanding  Admiral  will  follow  on 
2  Jul. 

3.  North  African  Transports: 

The  steamer  OSTIA  put  into  Tripoli  on  1  Jul.  The  convoy 


-28- 


CONFIDENTIAL 
2  Jul.    1942 

of  the  BIXIO,   LION    ISO  and  ANKARA  departed  from  Taranto  and  is  en 
route  to  Benghazi.  . 

Coastal  supply  shipments  to  Tobruk  and  Marsa  Matruh  are  proceeding 
according  to  plan. 

Cargo  discharged  on  1  ,  il. :      Tobruk  735  tons,   Marsa  Matruh  220  tons. 
For  particulars  see  Telegram  1805. 

4.        Area  Naval  Gr^up  South: 

Aegean  Sea: 

Destroyer  2G3,  the  BULGARIA.,  the  BARLETTA,  2 
Italian  torpedo  boats  and  2  submarine  chasers  left  Piraeus  at  noon 
of  :.  Jul.  in  order  to  lay  the  "Ost- Test-Wall  Aegaeis"  mine  field. 

The  Naval  Staff  does  not  regard  this  task  as  of 
paramount  importance  at  this  particular  time  in 
view  of  the  vital  need  for  shipments  to  North  Africa. 
All  ships  must  be  used  for  the  latter  purpose. 

Due  to  weather  conditions  all  convoys  have  been  postponed  for  24 
hours. 

Black  Sea: 

Enemy  Situation: 

Radio  monitoring  reports  the  presence  of  1  destroyer,  1 
submarine  depot  ship  and  15  submarines  in  the  northern  Black  Sea. 
Cruiser  D  was  located  at  sea  between  the  southern  tip  of  the  Crimea 
and  the  northeast  coast. 

Own  Situation: 

In  view  of  the  unexpectedly  rapid  development  of  the  army 
operation,  the  landing  operation  planned  by  the  11th  Army  Command 
has  been  canoelled.   (See  War  Diary  1  Jul.) 

On  the  night  of  30  Jun.  Italian  subchasers  sank  a  Russian  motor 
boat  near  Cape  Sarych.   The  1st  PT  Flotilla  fought  an  engagement 
with  2  Russian  PT  boats  and  sank  both  of  them.  A  commissar  was 
among  the  37  captured.   Code  material  and  secret  documents  were 
also  captured.  PT  boat  S  "102"  had  to  be  towed  into  Yalta,  having 
sustained  a  hit  in  her  engine. 

The  Port  Commander  of  Sevastopol  arrived  there  on  1  Jul.  After 
the  withdrawal  of  the  11th  Army  Command  the  Army  will  remain  in 
charge  of  the  artillery  defense  of  Sevastopol. 


-29- 


a   Jul.  194* 


CONFIDENTIAL 


Even  though  naval  forces  could  do  but  little  so  far 
as  direct  participation  in  the  capture  of  the  fortres: 
of  Sevastopol  is  concerned,  tne  employment  of  light 
naval  forces  resulted  in  considerable  interference 
with  enemy  supply  movements,   It  has  been  pointed 
out  once  before  that  lately  ships  plying  in  and  out 
of  Sevastopol  did  so  only  during  the  night  and  that 
the  use  of  larger  ships  for  the  delivery  of  supplies 
nad  been  completely  abandoned.   The  cooperation  of 
the  German  and  Italian  naval  forces  undoubtedly 
hastened  the  collapse  of  enemy  resistance  against  the 
units  of  the  11th  Army  Command  and  the  VIII  Air  Corps 
which  deserve  the  highest  admiration  for  their  out- 
standing achievements. 


Special  Items: 


According  to  information  sent  to  Group  South  by  tne  Commanding 
General,  Armed  Forces,  Southeast,  the  Armed  Forces  High  Command 
has  ordered  that  except  for  one  company "  the  units  of  the  Fortress 
Division  which  are  stationed  on  the  mainland  are  no  longer  to  be 
transferred  to  Crete.   Since  it  is  temporarily  necessary  to  use 
the  "Siena"  Squadron  for  the  supply  service  to  North  Africa,  the 
fortress  of  Crete  will  have  to  depend  for  a  limited  time  on  stores 
on  hand.  However,  the  supply  of  the  required  war  material  for  the 
Air  Force  has  to  be  assured  under  all  circumstances.   The  fortification 
of  Crete  and  its  equipment  with  guns  is  to  be  continued  as  per  plans. 
The  coastal- batteries  which  are  expected  to  arrive  from  the  Reich  are 
to  be  emplaced  as  planned. 

Group  South  is  investigating  now  much  shipping  space  can  be  devoted 
to  the  shipment  of  supplies  to  North  Africa  if  the  above  demands 
of  the  Armed  Forces  High  Command  are  taken  into  account. 


VIII.  Situation  East  Asia 
Nothing  to  report. 


k 


IX.  Armv  Situation 

1.   Russian  Front: 

Southern  Armv  Group: 

On  the  afternoon  of  1  Jul.  enemy  resistance  before  and 
inside  Sevastopol  collapsed.  The  fortress  was  abandoned  to  our 


-30- 


CONFIDENTIAL 


2  Jul.  1942 


troops.   The  enemy  remnants  which  had  withdrawn  from  the  city 
were  crowded  into  the  westernmost  tip  of  the  Kherson  Peninsula  on 
2  Jul.  where  they  are  being  annihilated  by  artillery  and  aircraft. 
The  city  has  been  mopped  up  according  to  plan. 

Thus  the  "strongest  fortress  in  the  world"  fell 
after  a  25  day  assault  despite  the  most  determined 
and  grim  defense  and  the  Eastern  Army  has  been  freed 
from  a  very  serious  tnreat  to  its  rear,  a  threat  which 
continuously  tied  up  heavy  German  forces.   This 
opens  a  supply  channel  in  the  Black  Sea  which  can  be  of 
decisive  importance  for  the  further  development  of 
Army  operations  in  the  east. 

An  enemy  night  attack  was  repelled  north  of  Taganrog.   Enemy  losses 
were  high.   Operations  of  the  6th  Array  progressed  according  to  plan. 
On  the  northern  wing  our  forces  succeeded  in  advancing  as  far  as  tne 
river  Orlik.   The  main  body  of  enemy  forces  to  the  west  of  Skorodnoie 
is  retreating-  to  the  north. 

Army  Group  Von  Weichs  is  advancing  on  Stary  Oskol  from  the  north 
and  south.   The  24th  Panzer  Division  and  Infantry  Division 
"Grossdeutschland"  launched  attacks  to  the  southeast  from  their 
bridgeheads.   In  the  area  south  of  Livny  the  enemy  has  thrown  in 
strong  armored  forces  in  an  assault  against  the  flank  of  our  advanc- 
ing divisions.   It  has  been  observed  that  the  enemy  i6  bringing  up 
strong  forces  from  the  nortn. 

According  to  a  directive  of  the  Armed  Forces  High  Command  the 
designation  "Blau",  which  nad  been  used  hitherto  for  the  overall 
operation,  has  been  changed  to  "Braunschweig".   The  subsidiary 
operations  "Blau  I"  and  "Blau  II"  will  henceforth  be  known  as 
"Clausewitz"  and  "Dampfhamraer". 

Central  Army  Group; 

Our  forces  continued  to  fight  the  partisans  in  the 
southern  area.  At  the  northern  sector  our  shock  troops  have 
carried  out  a  series  of  successful  operations.   Units  of  Group 
Esebeck  attacked  to  the  east  and  northeast  at  Byeloi,  and  in  the 
southeast  succeeded  in  gaining  ground  as  far  as  Bossino. 

Northern  Army  Group: 

Nothing  to  report. 

Finnish  anfl  Norwegian  Front; 

Nothing  to  report. 

North  Africa: 

The  enemy  is  offering  stubborn  resistance  from  the  still 


-SI- 


CONFIDENTIAL 
a   Jul.  1943 

occupied  strong  points  of  the  El  Alamein  position.  Defense  in- 
stallations are  partly  concrete  and  have  partly  been  reinforced  by 
fortified  positions  for  tanks.   The  1st  Panzer  Division  repulsed  a 
counterattack  in  the  middle  sector  inflicting  losses  on  the  enemy. 


< 


-3H- 


CONFIDENTIAL 
3  Jul.  1942 

Items  of  Political  Importance 
France; 

According  to  information  received  through  diplomatic  channels  on  26  Jun., 
Laval  issued  the  following  instructions  to  the  Commanding  Admiral  of 
the  French  warships  in  Alexandria: 

1.  To  act  on  his  own  in  keeping  with  the  circumstances. 

2.  In  the  event  of  a  British  withdrawal  from  Alexandria,  the 
French  vessels  are  to  put  into  the  nearest  French  port  and  are  to  stay 
away  from  British  ports  under  all  circumstances.  The  Axis  power,s 
have  been  informed  to  this  effect. 

3.  Should  it  be  impossible  to  carry  this  out,  the  ships  are  to 
remain  in  French  hands  and, should  the  British  offer  resistance,  they 
are  to  be  sabotaged  or  scuttled  in  such  a  manner  that  they  can  be 
raised  again  at  a  later  date. 

4.  Under  no  circumstance  should  the  ships  be  permitted  to  fall 
into  British  hands. 

5.  Under  no  circumstances  should  the  ships  join  the  British 
fleet  in  the  event  of  its  withdrawal. 

According  to  Laval  the  loyalty  of  Admiral  Godfroy  is  beyond  a  shadow 
of  a  doubt. 

On  2  Jul.  a  rumor  began  circulating  that  Admiral  Godfroy  had  received 
a  British  ultimatum.   Thereupon  the  German  government  instructed  the 
German  Armistice  Commission  to  advise  the  French  that  Germany  would 
consider  as  a  breach  of  the  armistice  any  action  favorable  to  the 
British  ships  and  not  in  accord  with  the  orders  of  the  French  Admiral- 
ty. On  3  Jul.  the  French  delegation  replied  by  making  known  the  follow- 
ing telegram  from  Godfroy:   "No  ultimatum  received  up  to  the  present. 
Have  no  intention  to  accept  one." 

According  to  a  report  from  the  Foreign  Ministry,  Laval  on  2  Jul. 
brought  to  the  attention  of  the  United  States  Charge  d1 Affaires  the 
text  of  the  German  communication  bearing  on  the  treatment  of  the 
French  warships  in  Alexandria  and  pointed  out  to  him  that  any  use  of 
force  on  the  part  of  the  British  would  have  serious  consequences.  On 
3  Jul.  the  United  States  Charge  d'Affaires  in  a  note  from  his  govern- 
ment proposed  to  the  government  of  France  to  place  the  French  warships 
in  Alexandria  under  United  States  protection;  the  note  further  pro- 
posed that  these  warships  be  transferred  to  an  American  port,  via  the 
Suez  Canal,  the  port  to  be  decided  upon  at  a  later  date.  The  return 
of  the  ships  to  France  upon  termination  of  the  war  would  be  guaranteed. 
Should  this  proposal  be  rejected,  the  United  States  Government  will 
consider  the  British  fully  justified  in  using  force  against  the  French 
ships  in  order  to  make  them  abide  by  its  orders.  Laval  indignantly 
rejected  this  note  as  being  completely  inacceptable  and  insulting  to 
France. 


-33- 


CONFIDENTIAL 
3  Jul.  1942 

Puller  particulars  bearing  on  this  whole  issue  in  War  Diary,  Part  C, 
Vol.  VIII. 

Great  Britain; 

In  a  statement  to  the  House  of  Commons  Churchill  called  the  fall  of 
Tobruk  a  very  heavy  blow  which  might  have  immeasurable  repercussions 
on  Turkey,  Spain,  France  and  French  North  Africa.  He  stated  that  the 
Americans  had  proved  their  true  friendship  more  than  ever  during  these 
difficult  days  and  that  ways  and  means  for  putting  an  end  to  the 
shipping  shortages  have  been  found  in -joint  conferences.  As  a  con- 
trast to  the  loss  of  Tobruk,  Churchill  then  went  on  to  stress  most 
vigorously  the  defense  of  Malta, referring  also  to  the  participation 
of  the  U.S.  carrier  WASP.   He  stated  that  unfortunately  it  had  not 
been  possible  to  prevent  strong  reinforcements  from  reaching  Rommel. 
He  then  attempted  to  show  that  in  view  of  the  prospect  of  a  long  war 
the  outlook  for  the  Allies  has  considerably  improved  since  the  turn  of 
the  year.   It  is  still  possible  to  divert  strong  forces  to  the  Near 
East.  He  absolutely  declined  to  relinquish  responsibility  for  direct- 
ing Britain's  defense  effort.   The  motion  of  no  confidence  was  de- 
feated by  a  vote  of  475  to  25.  For  a  detailed  report  on  the  above  see 
Political  Review  No.  153,  Paragraph  2  and  Foreign  Press  Review4No.  317. 

Russia: 

According  to  a  report  from  the  Military  Attache  in  Tokyo,  the  Japanese 
armed  forces  in  Manchukuo,  particularly  the  air  forces,  have  been  con- 
siderably reinforced.   The  Attache  interprets  an  announcement  of  the 
Japanese  General  Staff  as  indicating  that  Japan  expects  a  change  in 
Russo-Japanese  relations  within  the  next  2  to  3  months,  and  that  fur- 
ther developments  might  very  well  lead  up  to  a  fundamental  change. 

Turkey: 

According  to  an  Embassy  report  the  Turkish  government  aims  to  take 
title  to  the  4  interned  American  planes  on  the  basis  of  the  Lend-Lease 
Law.  The  German  government  has  no  objection  so  long  as  the  crews  re- 
main interned. 

It  is  apparent  that  the  capture  of  Sevastopol  has  given  a  further  boost 
to  the  wave  of  pro-German  feeling  which  followed  our  successes  in  North 
Africa. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  The  Chief  of  Operations  Branch,  Naval  Staff  Operations  Division 
comments  on  the  report  of  the  Army  General  Staff,  Intelligence 
Division  concerning  the  possible  effects  of  blowing  up  the  Assuan  dam, 


-34- 


CONFIDENTIAL 
3  Jul.  1943 

Such  a  step  would  not  constitute  a  serious  obstacle  to  military  move- 
ments in  the  Nile  Delta  proper,  destructive  as  its  consequence  might  be 
in  the  Nile  Valley  itself. 

II.  A  further  report  concerns  Group  North's  operations  plan  for  the 
cruiser  KOELN,  which  may  be  found  in  War  Diary  of  26  Jun.. 

III.  The  Chief,  Naval  Staff  Communications  Division  reports  about  Group 
West's  request  for  priority  in  the  allocation  of  radar  Instruments  to 
the  Seine  Bay  area.   The  proposals  will  be  met  as  technical  facilities 
permit. 

IV.  The  representative  of  Naval  Construction  Division  reports  about 
the  French  shipyard  labor  situation  as  determined  by  a  survey  of  the 
Deputy  for  Labor  Procurement.   Out  of  a  total  of  9,500  shipyard  workers, 
5,000  are  employed  in  French  shipyards.   The  others  cannot  be  employed 
in  German  shipyards  until  unskilled  labor  has  been  found  to  replace 
them.   Procuring  these  replacements  is  almost  completely  out  of  the 
question  for  the  present  since  all  labor  is  at  the  disposal  of  the  Todt 
Organization.  The  Naval  Construction  Division  is  ordered  to  see  to  it 
that  replacements  are  procured  from  among  the  prisoners  of  war  or  the 
350,000  French  workers  slated  for  work  in  Germany. 

V.  The  Chief,  Naval  Staff  reports  that  the  Fuehrer  has  suggested  the 
construction  of  submarine  pens  at  Emden.   The  problem  is  being  examined 
by  the  Naval  Construction  Division. 

The  Fuehrer  has  also  suggested  that  the  PT  boats  might  be  given  larger 
guns  and  heavier  armor  so  that  they  might  be  a  match  for  the  new  British 
turbine -driven  boats.   This  problem  has  been  under  consideration  for 
some  time. 

VI.  On  the  occasion  of  his  visit  to  Reval  the  Commander  In  Chief,  NAvy 
was  informed  that  plans  for  the  future  development  of  that  city  are 
being  drawn  up,  in  which  the  interests  of  the  Navy  and  Merchant  Marina 
are  subordinated  to  the  viewpoints  of  city  and  landscape  architecture. 
Although  the  Navy  is  not  supposed  to  concern  itself  with  post-war 
problems  of  this  kind,  it  has  no  alternative  but  to  take  care  that  its 
interests  are  not  being  neglected. 

VII.  Report  of  the  Chief,  Bureau  of  Naval  Administration; 

The  Armed  Forces  High  Coi'mand  has  issued  a  directive  to  the  effect  that 
men  classified  as  Army  replacement  reserves  who  are  needed  for  sub- 
marine construction  are  to  be  reclassified  as  Navy  replacement  reserves. 
The  order  does  not  specify  what  categories  of  labor  are  to  be  affected 
and,  above  all,  whether  or  not  the  supply  industries  are  to  be  included. 
It  is  absolutely  necessary  that  they  should  be  included. 


-35- 


CONFIDENTIAL 
3  Jul.  1942 

The  Chief,  Naval  Ordnance  Division  reports  in  this  connection  that  in- 
formation obtained  from  Minister  Speer  and  Gauleiter  Sauckel  shows 
that  the  necessary  labor  force  for  work  in  shipyards  cannot  be  re- 
cruited without  falling  back  on  Armed  Forces  labor  reserves.  Minister 
Speer  leaves  it  to  the  Commander  in  Chief,  Navy  to  inform  the  Fuehrer 
accordingly. 

VIII.  The  Deputy  Chief,  Naval  Staff  Quartermaster  Division  reports  on 
the  priority  rating  of  the  Navy's  plans  for  new  construction  and  re- 
pairs.  (See  War  Diary  of  29  Jun. )  The  list  which  has  been  prepared 

by  the  Naval  Staff,  Quartermaster  and  Operations  Divisions  is  thorough- 
ly discussed.   There  is  no  doubt  as  to  the  priority  of  construction 
and  maintenance  of  submarines  and  light  naval  forces,  including  those 
vessels  which  are  intended  for  use  in  convoy  duty  and  mine  sweeping 
operations.   The  Chief,  Naval  Staff  decides  that  the  completion  of  the 
GRAF  ZEPPELIN  and  the  conversion  of  the  steamer  EUROPA  into  an  auxilia- 
ry carrier  should  be  given  fifth  place.   The  raising  of  submarine  con- 
struction to  25  per  month  he  assigns  sixth  place  on  the  list  and  in  the 
seventh  place  he  puts  the  conversion  of  the  other  auxiliary  aircraft 
carriers  ^hile  the  reconditioning  of  the  GNEISENAU  is  relegated  to  the 
eighth  p3  ce. 

The  Navy  plans  will  be  affected  by  the  fact  that  the  Reich  Commissioner 
of  Shipping  has  in  the  meantime  worked  out  a  comprehensive  program  of 
new  merchant  ship  construction  and  repair  and  that  he  has  obtained  the 
Fuehrer's  approval  for  the  program.   In  accord  with  it,  all  naval 
construction  facilities  temporarily  unused  must  be  put  at  the  disposal 
of  this  program. 

Justified  as  the  above  order  is  in  principle,  there  is 
reason  to  fear  that  it  will  be  impossible  to  avoid 
serious  difficulties  in  its  practical  fulfillment. 

IX.  The  Chief,  Naval  Staff  Communications  and  Intelligence  Division 
reports  on  the  attempts  of  the  United  States  Government  to  intervene 
in  the  question  of  the  French  warships  in  Alexandria.  (See  Items  of 
Political  Importance,  France.) 

In  a  very  restricted  circle; 

X.  The  Chief  of  Operations  Branch,  Naval  Staff  Operations  Division 
reports  on  the  start  of  operation  "Roesselsprung".  The  Trondheim  and 
Narvik  Groups  set  out  at  2000  and  2400  respectively,  according  to  plan. 
The  LUETZOW  turned  back  to  Bogen  Bay  after  running  aground.  This  high- 
ly regrettable  mishap,  caused  by  fog,  has  no  effect  on  the  operation. 

According  to  a  submarine  report  convoy  PQ  17  was  in  quadrant  AB  5251 
at  2400.   Since  0150  our  Air  Force  has  maintained  contact  with  a 
carrier,  and  probably  also  with  a  battleship  and  2  cruisers  in  quadrant 
AB  7890.  The  course  is  not  indicated  exactly.  Group  North  is  of  the 
opinion  that  a  single  enemy  force  is  involved,  consisting  of  an  air- 
craft carrier,  2  battleships,  3  cruisers  and  5  destroyers.   Its  po- 
sition is  only  slightly  farther  northeast  than  was  to  be  expected. 


-36- 


CONFIDENTIAL 

3  Jul.  1942 

The  departure  of  our  combat  forces,  ss  far  as  is  known  at  present,  has 
gone  unnoticed.   If  the  enemy  group  remains  in  its  present  position, 
its  distance  from  the  convoy  is  so  great  that  it  does  not  seem  to  call 
for  a  change  of  objective  for  operation  "Roesselsprung".   In  the 
event  that  the  enemy  group  should  follow  the  convoy,  Group  North  in- 
tends to  transfer  the  1st  Task  Force  to  the  Alta  area  and  to  stage  the 
assault  by  both  task  forces  from  that  position  as  the  situation  might 
require.   Due  to  heavy  fogs  our  air  reconnaissance  of  the  enemy  force 
is  seriously  hindered  at  present. 

The  LUETZOW  is  in  full  combat  readiness  with  respect  to  engines  and 
guns.  Her  participation  in  the  operation  is  out  of  the  question,  how- 
ever.  It  is  desirable  that  a  decision  on  the  transfer  order  be  forth- 
coming by  2000.   The  permanent  representative  of  the  Commander,  in  Chief, 
Navy  at  Fuehrer  Headquarters  is  being  kept  posted  continually. 

XI.  The  permanent  representative  of  the  Commander  in  Chief,  Navy  at 
Fuehrer  Headquarters  reports  that  the  Fuehrer  is  entertaining  the  idea 
of  leaving  Crete  completely  to  the  Italians  and  of  transferring  the 
German  infantry  from  that  place  to  Rommel.   The  Fuehrer  holds  that 
Crete  would  no  longer  be  menaced  once  Egypt  and  the  Suez  Canal  are  in 
our  hands.   The  transfer  of  German  troops  involves  a  vast  new  trans- 
port program. 

The  Chief  of  Operations  Division,'  Naval  Staff  stresses  in  this  con- 
nection the  need  for  continuing  the  naval  barge  construction  program 
which  was  to  come  to  an  end  with  the  construction  of  about  460  barges, 
since  this  type  of  vessel  has  proved  its  extraordinary  value  in  all 
theaters  of  naval  war  due  to  its  manifold  adaptability  and  since  the 
demand  for  it  will  constantly  continue  to  grow. 

The  Chief,  Naval  Staff  is  in  accord  with  this.   The  Naval  Staff,  Quarter- 
master Division  will  take  charge  of  further  steps. 

XII.  The  Chief  of  Operations  Branch,  Naval  Staff  Operations  Division 
discusses  the  report  to  the  Armed  Forces  High  Command  of  the  German 
General  at  the  Italian  Army  Headquerters  dated  2  Jul.:   After  break- 
ing through  positions  to  the  east  of  El  Daba,  the  Panzer  Army  plans  to 
advance  on  Alexandria,  blocking  off  the  latter  with' the  XXI  Army  Corps, 
and  to  move  on  to  Cairo  and  the  Suez  Canal  by  way  of  Wadi  Natrun  as 
per  instructions  of  the  Italian  High  Command. 

The  positions  to  the  east  of  El  Daba  were  rapidly  broken  through  de- 
spite stubborn  resistance. 

The  Commanding  General,  Armed  Forces,  South  has  given  the  assurance 
that  personnel  replacements  for  the  Panzer  Army  and  the  Air  Force  will 
be  flown  to  Africa  by  18  Jul.. 


-37- 


CONFIDENT!  j& 
3  Jul.  1942 

XIII.  The  Chief  of  Operations  Branch,  Naval  Staff  Operations  Division 
reports  on  the  Fuehrer  Directive  of  1  Jul.  concerning  the  opening  of 
naval  hostilities  against  Brazil. 

The  Fuehrer  ordered  as  follows: 

1.  The, submarine  operations  planned  against  Brazilian  ports 
should  not  be  undertaken  for  the  time  being,  for  reasons  of  a  political 
nature. 

2.  Permission  is  given  to  fire  without  warning  on  all  Brazilian 

merchant  ships; 

3.  Firing  on  Brazilian  warships  is ^sanctioned  only  insofar  as 
they  show  a  disposition  to  give  battle,  or  when  they  are  found  perform- 
ing ccnvoy  duty  for  merchant  ships  which  cannot  be  identified  as  be- 
longing to  the  Brazilian  merchant  marine. 

A  corresponding  directive  of  the  Naval  Staff  has  been  issued  to  the 
Commanding  Admiral,  Submarines  with  copy  to  Group  West.   The  Foreign 
Office  has  been  informed  about  this  directive. 

The  Naval  Staff  has  refrained  from  issuing  such  a  directive  to  the 
auxiliary  cruisers  since  the  sinking  of  a  Brazilian  merchant  ship  is 
apt  to  give  rise  to  unpleasant  complications.   (Prisoners,  etc.) 

XIV.  As  part  of  a  wider  defense  plan  for  combatting  the  increased 
danger  of  invasion,  Group  West  is  planning  to  lay  mine  fields  in  the 
Bale  de  la  Seine'  and  has  therefore  asked  the  assignment  of  a  mine- 
laying  vessel.   The  Naval  Staff  considers  the  planned  mine  fields 
more  urgent  than  any  other  mine-laying  operations  now  under  way  so 
that  the  withdrawal  of  mine-laying  vessels  from  the  area  of  Group  North 
would  be  fully  justified.  However,  the  transfer  of  vessels  of  that 
size  to  Cherbourg  and  particularly  their  run  through  the  Strait  of 
Dover  involves  the  risk  of  total  loss.  Likewise,  the  risks  incurred 

at  Cherbourg  and  during  the  mining  operations  proper  are  extremely 
high.   However,  since  about  500  mines  (300  standard  mines  types  C  and  G 
and  200  dummies  )  are  involved  in  each  mine  field,  according  to  the  plan 
of  Group  West,  the  operation  could  be  carried  out  by  4  torpedo  boats 
or  mine  sweepers,  each  laying  a  section  of  the  mine  field. 

The  Group  has  therefore  received  a  corresponding  directive  from  the 

Naval  Staff. 

The  Chief,  Naval  Staff  is  in  accord. 

XV.  Group  West  has  dispatched  to  the  Commander  in  Chief,  West,  with 
copy  to  the  Naval  Staff,  an  evaluation  of  the  enemy  situation  based  on 
photo  reconnaissance  of  the  3rd  Air  Force  which  was  carried  out  along 
the  southern  coast  of  Britain  with  a  view  to  ascertaining  enemy  land- 
ing plens.   The  Commander  in  Chief,  West  has  fully  utilized  this 
evaluation  in  his  own  report  to  the  Armed  Forces  High  Command,  Operation. 
Staff  on  the  same  subject.   (Compare  the  statement  in  War  Diary  of  30 
Jun.  which  anticipates  essentially  the  ideas  of  Group  West  on  the  sub- 
ject. ) 


-38- 


CONFIDENTIAL 
3  Jul.  1942 

XVI,   According  to  a  communication  of  the  Japanese  Navy  to  the  Naval 
Attache  in  Tokyo,  the  number  of  Japanese  submarines  operating  off  the 
African  coast  and  in  the  Arabian  Sea  for  the  purpose  of  harassing  the 
supply  lines  to  Egypt  is  to  be  raised  quickly  to  a  total  of  20. 

While  this  plan  is  to  be  welcomed  it  would  prove  much 
more  effective  if  no   only  the  number  of  submarines 
were  to  be  increased  but  if  the  entire  strength  of  the 
Japanese  fleet  would  be  thrown  into  the  scales  in  this 
decisive  naval  area. 


Situation  3  Jul.  1942 

I.  War  in  Foreign  Waters 

1.  Enemy  Situation; 
Nothing  to  report. 

2.  Own  Situation; 

Via  Radiogram  -2030  the  DOGGERBANK  is  being  Informed  about  new 
mining  successes  at  Agulhas,  with  congratualtions  from  the  Naval  Staff. 

The  Japanese  submarine  "I  30"  reported  being  delayed  en  route  to 
Lorient  as  a  result  of  engine  trouble.   Position  30  Jun.  40°  20'  E. 
Speed  9  knots. 

All  ships  in  foreign  waters  informed  by  Radiogram  2107. 

II.  Situation  West  Area; 

Atlantic  Coast; 

The  departure  of  the  supply  ship  UCKERMARK  has  been  postponed 
one  month  due  to  inadequate  material  and  personnel. 

Group  West  has  been  informed  accordingly  by  the  Naval  Staff. 

Channel  Coast; 

The  38th  Mine  Sweeper  Flotilla  came  under  fire  of  the  British 
coastal  batteries  on  the  night  of  i  Jul.  between  Gris  Nez  and  Blanc 
Nez.  Anchored  mines,  apparently  -   the  K  XVT  type,  have  been  found 
in  good  condition  off  Le  Havre  on  2  Jul.. 

No  PT  boats  were  sent  into  action  on  the  night  of  3  Jul.  since  no 
targets  at  sea  had  been  reported  by  air  reconnaissance. 


-39- 


CONFIDENTIAL 
3  Jul.  1942 

III.   North  Sea,  Norway,  Arctic  Ocean 

1.  North  Seat 
Enemy  Situation: 
Nothing  to  report, 

2.  Own  Situation: 

For  a  report  of  enemy  air  activity  during  the  night  of  2  Jul, 
in  the  coastal  area  of  northwest  Germany  see  Telegrams  0702  and  0813* 

The  21st  and  22nd  Mine  Sweeper  Flotillas  continued  efforts  to  sweep 
southeastern  mine  fields  I  and  II  without  success.  A  cable  cutting 
operation  was  carried  out  near  Hanstholm.  No  detailed  reports  have  as 
yet  been  received. 

Special  Items: 

I.  Commanding  Admiral,  Defenses,  North  reports  as  follows: 

102  ground  mines,  10  moored  mines  and  3  other  mines  were  swept  by  fish- 
ing boats  during  the  month  of  June.  Forces  of  the  Commanding  Admiral, 
Defenses,  North  were  attacked  24  times  by  enemy  planes  and  fought  4 
engagements  with  enemy  PT  boats.  They  brought  down  5  enemy  planes. 
A  mine-exploding  vessel  was  destroyed  by  bombs  and  1  merchantman  sunk. 
Likewise,  6  steamers  and  1  fishing  trawler  struck  mines  and  sank. 

A  tojfcal  of  528  ships  with  an  aggregate  of  1,  149,751  GRT  were  convoyed. 

II.  Commanding  Admiral,  Group  North  has  particularly  commended  the 
Commander,  Mine  Sweepers  and  Mine  Layers  as  well  as  the  Naval  Con- 
struction Division,  Overall  Planning  and  Construction  Branch  and  the 
8th  Motor  Mine  Sweeper  Flotilla  for  their  successful  renewal  of  a  large 

,section  of  the  "Westwall"  barrage.  This  was  accomplished  within  a  few 
days  and  aco or ding  to  plan,  despite  the  unfavorable  .season. 

The  Naval  Staff  is  all  the  more  in  accord  with  this 
commendation  since,  by  its  very  nature,  *>  this  accomplish- 
ment cannot  receive  public  recognition. 

Norway: 

Brisk  enemy  air  activity  is  continuing  in  the  area  of  the 
Admiral,  Arctic  Coast.  On  2  Jul.  again  5  of  our  planes  were  damaged 
on  the  ground  at  the  Banak  airport.  Likewise,  on  3  Jul.  enemy 
reoonnaissance  staged  observation  flights  over  the  Aasen  Fjord. 

A  second,  degree  alert  has  been  ordered  for  coastal  batteries  in  the 
area  of  Trondhelm  and  Molde  as  of  2  Jul.  2000. 


<* 


-40- 


CONFIDENTIAL 
3  Jul.  1942 

In  the  area  of  Admiral,  West  Norwegian  Coast  a  new  mine  field  against 
enemy  submarines  was  laid  according  to  plan  in  the  Vestby  Fjord. 

Ship  traffic  and  convoys  in  the  area  of  Norway  without  noteworthy 
occurrences. 

For  a  tentative  list  of  damages  sustained  by  the  LUETZOW  see  Telegrams 
1617  and  1900. 

3.  Arctic  Ocean: 

Enemy  Situation; 

An  intelligence  report  from  Sweden  states  that  on  20  Jun. 
an  American  convoy  passed  59°  47*  N  43°  40'  W  headed  for  Murmansk. 
Later,  probably  at  Archangel,  its  port  of  destination  was  changed. 

About  30  Jun.  another  convoy  left  Britain  en  route  to  Russian  ports 
in  the  Arctic  Ocean.   (It  may  be  the  departure  of  convoy  P^  18. ) 

A  warship  or  a  transport  supposedly  arrived  at  50°  47'  N,  01°  50'  W. 
She  is  probably  an  American  ship  to  which  the  British  legation  at 
Stockholm  is  said  to  attribute  particular  importance  in  connection 
with  the  Second  Front. 

Submarine  and  air  reconnaissance  report  convoy  PQ  17  in  quadrant  AB 
5251  at  0100  and  in  quadrant  AB  3853  at  2150.  This  convoy  has  there- 
fore been  moving  east  at  a  speed  of  8  knots  on  about  the  latitude  of 
Bear  Island.   It  was  reported  as  consisting  of  38  steamers  and  about 
12  escort  ships,  proceeding  in  4  columns. 

Beginning  at  0105  air  reconnaissance  again  located  the  escort  force  in 
quadrant  AB  7893,  consisting  of  1  carrier,  1  battleship  and  2  cruisers 
proceeding  on  an  easterly  course  and  another  force  consisting  of  1 
carrier,  2  battleships,  3  cruisers,  and  5  destroyers  in  quadrant  AF 
1621,  on  the  same  course.   Group  North  is  of  the  opinion  that  both 
formations  constitute  a  s ingle  group,  although  it  is  not  impossible 
that  2  separate  groups  might  be  following  the  convoy, in  an  easterly 
direction.   No  reports  came  in  concerning  these  escort  groups  between 
0430  and  2240.   At  2240  a  force  consisting  of  1  battleship,  3  heavy 
cruisers  and  3  destroyers  was  reported  by  air  reconnaissance  in 
quadrant  AB  3943,  hence  in  the  immediate  vicinity  of  the  convoy.   It 
still  remains  to  be  ascertained  whether  these  vessels  have  been  cor- 
rectly identified.   It  is  possible  that  the  report  concerns  the 
Cruiser  and  destroyer  escorts  directly  assigned  to  the  convoy,  while 
the  report  of  the  presence  of  battleship  is  the  result  of  erroneous 
identification. 


-41- 


CONFIDENTIAL 


3  Jul.    1942 


Own  Situation: 


According  to  plan  the  Trondheim  Group  left  on  2  Jul.  at 
2000,  while  the  Narvik  Group  left  at  2400.   Since  the  LUETZOW  due  to 
fog  ran  aground  at  0245  at  the  entrance  of  the  Tjelle  Sound,  the 
task  force  commander  transferred  to  the  SCHEER,  leaving  the  LUETZOW 
behind  in  Bogen  Bay. 

Due  to  morning  fog  the  take-off  conditions  were  very  difficult  for 
our  planes. 

At  noon  the  5th  Air  Force  in  its  estimate  of  the  situation  concluded 
that  the  unusually  heavy  deployment  of  enemy  naval  forces  indicates 
that  a  major  operation  is  under  way.   This  operation, could  be  convoy 
PQ  17,  an  attack  on  the  Norwegian  coast,  or  the  occupation  of  the 
southern  part  of  Spitsbergen.   The  5th  Air  Force  believes  that  the 
previously  reported  eastbound  convoy  of  32  to  37  ships  is  not  yet  con- 
voy PQ  17.   The  Naval  Staff  does  not  regard  this  conclusion  to  be  cor- 
rect.  In  its  opinion  there  is  no  doubt  that  convoy  P^  17  has  been 
spotted.   What  the  5th  Air  Force  considers  an  unusually  strong  naval 
force,  is  in  the  opinion  of  the  Naval  Staff  due  to  the  enemy's 
knowledge  of  the  presence  of  strong  German  naval  forces.      * 

About  midnight,  the  submarines  and  the  air  forces  had  lost  contact  with 
convoy  PQ  17.   Guided  by  heavy  oil  traces  submarine  U  "456"  re- 
established contact  at  0830.   2  other  submarines  also  located  the  con- 
voy at  a  later  time. 

At  1600  the  Commanding  Admiral,  Group  North  requested  the  Chief  of 
Staff,  Naval  Staff  by  telephone  to  bring  about  a  decision  concerning 
the  continuation  of  operation  "Roesselsprung".  He  informed  him  of  his 
intention  to  revise  the  operations  plan  by  sending  also  the  TIRPITZ 
task  force  to  Alta  Fjord  rather  than  to  the  Gimsoe  area.   The  Chief 
of  Staff,  Naval  Staff  then  suggested  to  the  Chief,  Naval  Staff  that  he 
approve  this  transfer.   The  Chief,  Naval  Staff  ordered  a  report  to  be 
sent  to  the  Fuehrer  stating  that  the  Naval  Staff  is  aware  that  it  is 
not  yet  time  to  begin  the  operation  inasmuch  as  air  reconnaissance 
has  not  yet  furnished  a  clear  picture  of  the  enemy  situation,  particu- 
larly with  respect  to  positions  and  strength  of  the  heavy  enemy  task 
force.  He  states  that  the  Naval  Staff  agrees  with  Group  North  that 
the  TIRPITZ  task  force  must  be  transferred  to  Alta  Fjord  in  order  not 
to  lose  too  much  time  which  could  not  be  regained  for  the  eventual 
assault.   The  permanent  representative  of  the  Commander  in  Chief,  Navy 
at  Fuehrer  Headquarters  therefore  received  instructions  to  report  the 
plan  of  the  Naval  Staff  to  the  Fuehrer.  He  is  to  point  out  expressly 
that  for  the  time  being  the  matter  refers  exclusively  to  the  transfer 
of  the  task  force  to  the  Alta  Fjord. 

The  Fuehrer  could  temporarily  not  be  reached  but  Vice  Admiral  Krancke 
felt  sure  that,  on  the  basis  of  information  which  he  had  previously 
imparted  to  the  Fuehrer,  no  objection  to  the  transfer  of  the  ships  to 
Alta  Fjord  would  be  made  by  him.  Therefore  the  Chief  of  Staff,  Naval 


-43- 


CONFIDENTIAL 
3  Jul.  1942 

Staff  instructed  the  Commanding  Admiral,  Group  North  by  telephone  to 
transfer  the  ships  as  proposed. 

The  Group  reports  at  that  time  that  the  LUETZOW  will  not  take  part  in 
further  operations  but  will  return  to  Bogen  Bay. 

At  1720  Group  North  reports  that  the  Fleet  Commander  has  received  orders 
to  proceed  to  Alta  Fjord. 

At  1758  the  Fleet  Command  reports  to  Group  North  that  destroyers  LODY, 
RIEDEL  and  GALSTER  are  out  of  commission,  having  scraped  bottom  while 
entering  Gimsoe.   These  losses  will  likewise  have  no  effect  on  the  con- 
tinuance of  the  operation. 

The  estimate  of  the  situation  of  Group  North  at  1800  points  out  that 
aerial  reconnaissance  flown  by  the  enemy  over  the  Aasen  Fjord  at  1420 
might  influence  further  developments. 

In  arriving  at  a  decision  concerning  the  continuation  of  the  operation 
it  is  of  decisive  importance  to  have  a  clear  picture  of  the  enemy 
situation.   Group  North  therefore  requests  at  1945  that  should  the  heavy 
enemy  force  not  have  been  located  by  then  the  5th  Air  Force  should  report 
at  0500  and  again  at  0900  on  4  Jul.  which  sea  areas  it  considers  to 
have  been  completely. reconnoitered  and  free  of  enemy  forces. 

The  next  air  reconnaissance  report,  at  2240,  reported  1  battleship,  3 
heavy  cruisers  and  3  destroyers  in  the  immediate  vicinity  of  the  convoy. 
This  report  did  not  justify  Group  North's  giving  up  the  intention  of 
transferring  the  TIRPITZ  task  force  to  the  Alta  Fjord.   Of  course,  if 
the  heavy  enemy  task  force  has  been  correctly  identified  the  convoy 
cannot  be  attacked  before  our  planes  or  submarines  have  launched  a  pre- 
liminary attack  on  the  heavy  vessels  and,  above  all,  against  the 
carrier  if  there  is  one  in  the  vicinity. 

On  orders  from  Group  North,  submarines  U  "251 "  and  U  "376"  were  detailed 
to  quadrant  AB  86  to  attack  the  heavy  escort  forces  which  had  been  re- 
ported during  the  night  by  air  reconnaissance. 

Up  to  2300  no  reports  had  been  received  concerning  submarine  successes 
against  convoy  P^  17. 

The  5th  Air  Force  staged  4  aerial  torpedo  attacks  against  the  convoy 
between  1815  and  1955  on  2  Jul..  Due  to  strong  defensive  action  the 
effects  could  not  be  observed. 

On  the  basis  of  past  developments,  the  Naval  Staff  has  arrived  at  the 
following  conclusions  concerning  the  continuation  of  operation 
"Roesselsprung": 

Account  must  be  taken  of  the  fact  that  the  shifting  of  both  task  forces 
to  the  North  has  either  already  been  detected  by  the  enemy  or  will 
certainly  become  known  very  quickly.   The  enemy  will  then  have  one  of 
the  following  alternatives: 


-43- 


CONFILiiNTIAL  . 
3  Jul.  1942 

a.  His  valuable  convoy  will  change  course  and  turn  back. 

b.  He  will  bring  his  task  force  up  to  the  convoy  and  escort  it  to 
a  point  where  our  fighting  forces  could  nc  longer  engage  it. 

c.  In  the  event  that  there  are  2  enemy  task  forces  present,  the 
enemy  might  decide  to  assign  one  of  them  to  defend  the  convey  and  send 
the  other  to  take  up  a  position  northwest  of  the  Lofoten  Islands  in 
order  to  deprive  our  task  force  of  freedom  of  operation  and  raid  it  with 
carrier  planes. 

d.  The  enemy  may  keep  his  heavy  task  forces  out  of  the  range  of 
our  bombers  and  torpedo  planes  and  thus  be  compelled  to  leave  the  con- 
voy under  the  protection  of  a  few  light  cruisers  and  destroyers,  as  on 
previous  occasions. 

Our  course  of  action  could  then  be  as  follows: 

In  case  "a11,  we  have  no  chance  for  an  attack  and  the  enemy  is  so 
thoroughly  and  definitely  aware  of  our  plans  that  we  can  no  longer 
take  him  by  surprise.   In  this  case  the  enemy  would  either  be  unable 
to  escort  the  convoy  to  its  destination  or  could  do  so  only  with  con- 
siderable delay. 

In  case  ab",  our  naval  forces  would  likewise  be  unable  to  attack  the 
convoy.  However,  the  enemy  would  find  himself  forced  to  expose  his 
heavier  combat  forces  to  the  effective  action  of  our  Air  Force  and 
submarines.   Given  good  weather,  both  of  the  latter  end  particularly 
the  Air  Force  would  enjoy  good  prospect's  for  launching  attacks. 

In  case/c",  we  can  employ  our  task  force'  only  on  the  basis  of  the 
situation  as  determined  by  air  reconnaissance.   Whatever  the  situation 
may  be,  the  risk  will  probably  be  so  great  as  to  make  it  Impossible  to 
use  our  task  force. 

Only  in  case  "d"  do  we  have  all  prerequisites  on  the  basis  of  which  the 
plans  for  operation  "Roesselsprung"  were  drawn  up. 

Whether  the  latter  case  will  materialize  will  be  determined  as  soon  as 
reconnaissance  has  ascertained  how  matters  stand  as  to  the  group  which 
had  been  located  near  the  convoy  at  2240.   If  this  group  is  no  longer 
proceeding  on  an  easterly  course  or  if  it  is  determined  that  no  heavy 
vessels  had  actually  been  present,  our  task  forces  would  be  free  to 
launch  an  attack  on  4  or  5  Jul.. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1*   Enemy  Situation: 

Radio  monitoring  reports  8  submarines  end  1  submarine  depot 
ship  at  sea.   At  2325  on  2  Jul.  3  submarines  were  sighted  at  the  harbor 
entrance  of  Leningrad  and  on  3  Jul.  1  submarine  at  0900,  near 


-44- 


CO'IPILi^PIAL 
3   Jul.    1942 

Kallbandegrund. 

In  the  Bay  of  Kronstadt  on  the  morning  of  3  Jul.  mine  sweepers,  aux- 
iliary mine  sweepers,  patrol  "boats,  tugs,  and  barges  were  seen  pro- 
ceeding in  a  westerly  direction.   On  the  evening  of  3  Jul.  8  PT  boats 
were  transferred  from  Kronstadt  to  Lavansaari. 

2.   Own  Situation; 

At  the  Baltic  Sea  entrances  a  ground  mine  was  swept  east  of 
Langeland,  one  in  the  vicinity  of  Nyborg,  and  one  off  Helsingoer. 
Near  Samsoe,  an  auxiliary  sailing  vessel  was  destroyed  by  a  mine  1 
mile  off  Cape  Koldby. 

In  the  central  Baltic  Sea  5  miles  north  of  Koserow  a  ground  mine  was 
hauled  out  in  a  fishing  net. 

In  the  eastern  part  of  the  Baltic  Sea  the  mine  field  "Seeigel  13"  was 
laid  according  to  plan.  Motor  mine  sweeper  "74"  was  badly  damaged, 
having  struck  a  mine  at  Tytersaari.  Mine  sweeper  "16"  destroyed  a 
Russian  submarine  west  of  mine  field  "Nashorn".   On  1  Jul.  a  special 
Army  combat  team  of  440  men  and  43  vehicles  was  transferred  from 
Reval  to  Helsinki  aboard  the  PORTO  ALLEGRE. 

In  view  of  the  prevailing  bright  nights,  the  Admiral,  Baltic  States 
reports  that  it  is  necessary  to  postpone  the  mine  operation  in 
Kronstadt  Bay  for  about  5  weeks  until  the  nights  become  darker. 
(See  Telegram  1200. ) 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

Radio  monitoring  intercepted  a  warning  that  the  entrance  to 
Chesapeake  Bay  is  blocked  with  dangerous  obstacles.   A  submarine 
attack  was  reported  140  miles  northeast  of  Nantucket  Island.   Another 
submarine  attack  was  reported  against  the  U.  S.  tanker  GULF  BELLE 
(7,004  GRT)  northeast  of  Trinidad,  and  a  third  attack  was  reported 
to  have  taken  place  near  Puerto  Limon.  Finally,  a  special  warning 
was  intercepted,  calling  on  all  U.  S.  warships  to  avoid  a  certain 
area  in  the  Florida  Strait. 

2.  Own  Situation; 

Six  submarines  proceeding  from  French  ports  are  being  combined 
into  a  task  force  known  as  group  "Hai".  Their  zone  of  operations  will 
be  the  eastern  Natal  Strait. 


-45- 


CONFIDENTIAL 


3  Jul.  1942 


Except  for  the  sinking  of  a  small  sailing  vessel  in  the  West  Indies 
by  submarine  U  "172",  there  are  no  reports  of  successes  scored  from 
any  of  the  war  theaters.  Details,  particularly  those  concerning 
operations «against  convoy  PQ  17,  are  in  the  supplement  to  the  sub- 
marine situation  report  in  War  Diary,  Part  B,  Vol.  IV. 


VI.   Aerial  Warfare 

British  Isles  and  Vicinity: 

No  noteworthy  action  during  the  day.   During  the  night  of 
3  Jul.  10  enemy  planes  flew  over  the  Denmark  area,  apparently  on  a 
mining  mission.   No  bombs  were  dropped. 

Mediterranean  Theater: 

In  addition  to  support  to  the  Rommel  Panzer  Army,  77  bombers 
raided  the  Alexandria-Port  Said  area  on  the  night  of  2  Jul.,  also  min-  L 

ing  the  Suez  Canal.  Out  of  a  total  of  26  air  mines  dropped  13  deto- 
nated on  land. 

Eastern  Front: 

In  connection  with  the  assault  on  Novorossisk,  reconnais- 
sance observed  that  a  destroyer  of  the  TASHKENT  class,  a  10,000  GRT 
transport  ship  and  a  4,000  GRT  merchant  vessel  had  been  sunk. 

In  the  operations  area  of  the  4th  Air  Force  34  planes  were  reported 
to  have  been  shot  down.  For  a  report  of  5th  Air  Force  missions  a- 
gainst  convoy  PQ  17,  see  Situation  Arctic  Ocean. 


VII.   Warfare  in  the  Mediterranean  and  Black  Sea 

1.  Enemy  Situation: 

Mediterranean; 

There  is  no  essential  change  to  report  concerning  the  war- 
ships present  at  Gibraltar.  The  convoy  traffic  in  the  area  between 
Alexandria  and  Port  Said  was  reported  to  be  light.  At  Port  Said 
proper,  2  cruisers  of  the  DIDO  class,  1  unidentified  warship,  4 
destroyers,  4  escort  vessels,  7  submarines,  2  patrol  boats  and  what 
seemed  to  be  a  Greek  vessel  as  well  as  more  than  30  merchant  vessels 
were  observed  at  0850.  On  the  afternoon  of  2  Jul.  1  cruiser  of  the 
DIDO  class,  one  cruiser  of  the  AURORA  class,  2  destroyers,  1  escort 
vessel,  2  hospital  ships  and  about  12  merchant  vessels  were  anchored 
in  the  port  of  Haifa. 


-46- 


CONFIDENTIAL 
3  Jul.  1942 

2.  Own  Situation; 
Nothing  to  report. 

3.  Transport  of  Supplies  to  North  Africa: 

The  convoy  of  the  BIXIO,  MONVISO  and  ANKARA  is  en  route  to 
Benghazi,  according  to  plan.   The  motor  ships  SESTIERE,  PISANI  and 
PILO  are  to  start  back  for  Italy  from  Tripoli  and  Benghazi.   The  tanker 
FASSIO  stopped  at  Piraeus  on  2  Jul.  while  en  route  from  Taranto  to 
Tobruk.   Two  transport  submarines  put  into  Ras  el  Hillal  (west  of 
Derna )  on  2  Jul.  owing  to  bad  weather,  and  a  third  transport  submarine 
is  en  route  to  Derna.   The  steamer  PETRARCA  left  Benghazi  for  Tobruk 
on  2  Jul..   The  steamer  OSTIA  is  also  scheduled  to  proceed  to  Tobruk  on 

3  Jul.. 

Further  salvage  work  on  the  SAVONA  cargo  was  given  up  because  of  bad 
weather.   The  ship  seems  to  be  a  total  loss. 

The  German  Naval  Command,  Italy,  Operations  Staff  North 
Africa  is  leaving  nothing  undone  to  deliver  supplies  for  the  Panzer 
Army  at  a  point  as  far  east  as  possible.   He  demands  by  urgent  telegram 
that  the  Supply  and  Transportation  Office,  Italy  make  immediately 
available  2  additional  ships  for  direct  runs  to  Tobruk,  since  the  naval 
barges  which  have  been  promised  will  arrive  too  late,  and  further 
losses  are  to  be  expected.   The  Commanding  Officer,  Supply  and  Trans- 
ports, Italy  states  in  reply  that  3  transports  are  en  route  to  Benghazi, 

4  other  transports  have  nearly  completed  loading  and  are  ready  to  set 
out,  and  that  their  date  of  departure  for  Tobruk  depends  only  on  the 
Admiral,  Libya. 

Here  again  we  come  up  against  evidence  of  the  dis- 
inclination shown  by  the  Italians  to  subject  their 
large  ships  to  heavy  risks  such  as  are  unquestionably 
involved  in  missions  to  the  mine-infested  eastern 
ports  which  have  just  been  captured.  The  present 
situation  makes  it  absolutely  imperative  to  take  such 
a  risk  because  the  task  of  getting  large  supply  ships 
across  to  the  easternmost  point  of  the  African  coast  is 
of  such  decisive  Importance. 

Special  Items: 

The  Armed  Forces  High  Command,  Operations  Staff  informs  the 
Naval  Staff  about  a  directive  issued  to  the  Commanding  General,  Armed 
Forces,  Southeast  concerning  the  shipment  of  reinforcements  to  the 
African  Panzer  Army,  which  has  requested  that  transfer  of  the  382nd 
Infantry  Regiment  and  the  3rd  Company  of  the  220th  Battalion  of 
Engineers  (3.  Pi.  Batl.  220)  from  Crete  to  North  Africa  be  given 
priority.  All  detachments  which  can  be  transported  by  air  are  to  be 
flown,  if  possible;  the  necessary  arrangements  are  to  be  made  with  the 
Commanding  General,  Armed  Forces,  South.   Heavy  armament  and  motor 
vehicles  are  to  follow  by  ship  as  soon  as  possible.   (See  Telegram 
1730.  ) 


-47- 


CONFIDENTIAL 

3  Jul.  1942 

Another  directive  of  the  Armed  Forces  High  Command,  Operations  Staff 
orders  that,  pending  final  disposition,  the  supplies  to  the  German 
armed  forces  in  Africa  are  to  be  routed  via  Greece.   The  following 
procedure  i3  to  be  observed: 

1.  Requests  of  the  African  Panzer  Army  are  to  be  forwarded  as  here- 
tofore to  the  Supply  and  Transportation  Office,  Armed  Forces  Overseas 
via  the  German  General  attached  to  Italian  Armed  Forces  Headquarters. 

2.  Transports  proceeding  via  the  Balkans  have  priority  and  are  to  be 
moved  with  greatest  speed. 

3.  The  Commanding  General,  Armed  Forces,  Southeast  is  taking  measures 
to  expedite  supply  shipments  to  Africa  with  all  means  at  his  disposal, 
drawing  if  necessary  on  the  equipment  and  rations  allocated  to  the 
armed  forces  which  are  stationed  in  the  area  of  the  Commanding  General, 
Armed  Forces,  Southeast.   Transshipments  at  Piraeus  and  rail  transport 
to  that  port  are  to  be  steadily  improved. 

4.  In  urgent  cases  the  German  General  is  authorized  to  request  trans- 
port facilities  directly  from  the  Commanding  General,  Armed  Forces, 
Southeast,  informing  the  Supply  and  Transportation  Office,  Armed 
Forces  Overseas  to  that  effect.   (See  Telegram  2300. ) 

The  Naval  Staff  would  have  preferred  it  if  these 
measures  had  been  taken  at  an  earlier  time  and  certain- 
ly no  later  than  the  time  when  our  forces  reached  Marsa 
Matruh;  each  day  gained  for  the  delivery  of  supplies  to 
the  Panzer  Army  might  have  a  decisive  effect. 

Group  South  has  proposed  to  the  German  Naval  Command,  Italy  a  solution 
of  the  problems  relating  to  authority  and  responsibility  which  have 
come  up  in  connection  with  supply  shipments  to  Africa  via  the  area 
of  the  Admiral,  Aegean  Sea.  The  group  proposes  that  the  convoys,  while 
proceeding  through  this  area,  come  under  the  authority  of  the  Italian 
Admiralty.   (See  Telegram  1930. ) 

The  German  Naval  Command,  Italy  has  given  its  approval  by  arrangement 
with  the  Italian  Admiralty  so  that  no  further  steps  remain  to  be 
taken  by  the  Naval  Staff. 

4.  Area  Naval  Group  South; 

Aegean  Sea: 

The  mine-laying  force,  including  the  3rd  Destroyer  Squadron, 
has  returned  to  the  port  of  Piraeus  after  completing  its  mission. 


-48- 


■  CONFIDENTIAL 
3  Jul.  1942 

The  20th  Crete  group  composed  of  7  merchant  ships  and  the  auxiliary- 
ship  BULGARIA  are  slated  to  leave  from  Piraeus  for  Candia  on  4  Jul.. 

Black  Sea; 

Enemy  Situation; 

Some  50  small  vessels  were  observed  withdrawing  from  Prlmorsko 
and  Azov  into  the  Glukhov  Canal. 

Own  Situation: 

On  the  night  of  1  Jul.  enemy  planes  raided  Feodosiya  and 
Simferopol.   On  2  Jul.  the  1st  PT  Boat  Flotilla  sailed  from  Yalta  to 
Constanta.   The  enemy  vessels  which  had  been  sunk  by  the  flotilla  on 
the  night  of  30  Jun.  were  submarine  chasers.  Among  the  prisoners 
taken  were  a  commanding  general  and  the  commander  of  a  cruiser  in 
addition  to  the  commissar  who  has  already  been  mentioned.   On  the 
night  of  2  Jul.  3  Italian  submarine  chasers  operated  near  Cape 
Khersones  and  near  Cape  Fiolent.   Convoy  traffic  between  Constanta 
and  Ochakov  proceeding  according  to  plan. 


VIII.   Situation  East  Asia 

The  Nicobar  Islands  were  occupied  by  the  Japanese  who  met  with 
no  opposition. 

News  Analysis  No.  31  of  the  Intelligence  Division,  Foreign  Navies 
Branch  contains  a  description  of  the  Japanese  attack  on  Pearl  Harbor 
on  7  Dec.  1941.   A  thorough  evaluation  of  the  aerial  photographs  fur- 
nished us  by  the  Japanese  discloses  that  no  other  total  losses  in  war- 
ships are  to  be  discerned  beside  those  which  the  Americans  reported, 
namely  2  battleships,  1  target  ship,  3  destroyers  and  1  mine  layer. 
On  the  other  hand,  3  battleships  and  2  light  cruisers  were  more  or 
less  badly  damaged.   The  damage  inflicted  on  land  installations,  par- 
ticularly, air  fields,  appears  to  have  been  severe. 


IX.    Army  Situation 

Russian  Front; 

Southern  Army  Group; 

Mopping-up  operations  in  the  Sevastopol  area  continued.   The 
number  of  prisoners  taken  during  the  battles  from  7  Jun.  to  2  Jul.  ex- 
ceeds 50,000.   433  field  guns,  70  anti-tank  guns,  622  mortars  and  21 
tanks  were  also  captured. 


-49- 


CONFIDENTIAL 
3  Jul.  1942 

The  offensive  of  the  6th  Army  is  making  headway.   The  divisions  which 
had  crossed  the  Orlik  River  on  2  Jul.  are  only  a  few  kilometers  from 
Stary  0sk9l  the  northern  outskirts  of  which  have  already  been  partly 
occupied. 

Forces  of  the  Von  Weichs  Group  are  attacking  the  town  of  Stary  Oskol 
from  the  northwest.   One  panzer  division  is  attacking  Kastornoie  after 
crossing  the  Olym  River.   One  infantry  division  is  attacking 
Kastornoie  frbm  the  north.  Thus  2  enemy  groups  are  on  the  point  of  be- 
ing encircled.   South  of  Livny  enemy  tanks  are  continuing  to  bear  down 
from  the  north. 

Central  Army  Group; 

No  noteworthy  action  in  the  south.   In  the  north,  attacks  con- 
tinued with  success  to  the  south  of  Mostovaya  and  near  Byeloi.   Near 
Byeloi  some  enemy  units  appear  to  have  broken  through  our  salients. 

Northern  Army  Group: 

An  enemy  advance  before  Yamno  and  an  attack  to  the  south  of 
Myeleksa  failed.  * 

Finnish  and  Norwegian  Front: 

No  noteworthy  action. 

North  Africa: 

The  panzer  army  widened  the  breach  in  the  enemy  positions  against 
fierce  enemy  resistance  from  fortified  positions  with  heavy  artillery 
protection.   Recently  arrived  plane  reinforcements  have  resulted  in 
increased  enemy  air  activity.  Our  troops  have  been  forced  to  discon- 
tinue temporarily  their  offensive  due  to  their  insufficient  effective 
strength,  the  critical  supply  situation,  and  the  fact  that  the  enemy 
troops  have  been  reinforced.   It  is  urgent  that  supplies  be  sent  as 
soon  as  possible.   Tile  effective  strength  of  our  divisions  has  dropped 
to  between  1,200  and  1,500  men.   The  bulk  of  our  infantry  corps  still 
remains  in  the  rear  area  waiting  for  motor  vehicles. 


-50- 


CONFIDENTIAL 
4  Jul.  1942 

Items  of  Political  Importance 

Argentina: 

A  motion  for  lifting  the  state  of  martial  law,  presented  in  the 
Chamber  of  Deputies,  has  been  rejected.   Thus  the  government  is  en- 
abled to  ward  off  all  moves  which  might  endanger  its  policy  of 
neutrality. 

Erazil: 

The  German  note  which  protested  the  ill  treatment  of  the  arrested 
German  nationals  has  been  rejected  by  the  Brazilian  government. 

Madagascar: 

British  troops  have  occupied  the  vicinity  of  Ambilobe. 

Central  Africa: 

Information  gathered  from  Portuguese  diplomatic  reports  from  West 
and  Equatorial  Africa  confirms  that  the  strength  of  the  so-called 
"Chad  Army"  is  100,000  men.  These  troops  are  probably  intended  to 
be  used  only  in  the  event  of  an  Anglo-American  move  against  French 
West  Africa,  particularly  against  Dakar.   In  the  Belgian  Congo 
there  were  about  60,000  men  available  until  recently.  However, 
considerable  portions  of  that  force  have  been  transferred  to 
Nigeria  and  Sierra  Leone.  British  and  American  war  materiel  is 
still  arriving  at  the  ports  on  the  west  coast.   Shipping,  particu- 
larly from  North  America  to  Matadi  and  Pointe  Noire  and  above  all 
to  Freetown,  has  considerably  increased.   In  addition  to  dis- 
assembled planes  which  are  unloaded  in  the  western  ports,  many 
long-range  planes  stop  at  the  local  airports  en  route  to  the  Middle 
East  and  Egypt.   Due  to  the  increased  peril  to  the  sea  routes  the 
problem  of  establishing  communications  with  the  Middle  East  via  the 
African  Continent  has  assumed  first-rank  importance.  The  fact  that 
the  enemy  is  resorting  to  such  alternatives  is  the  clearest  proof 
of  the  critical  situation  with  respect  to  sea  communication. 
Likewise  the  appointment  of  Swinton  to  the  post  of  Minister  for 
West  Africa,  with  residence  at  Accra,  underscores  the  growing  im- 
portance which  is  being  attributed  to  this  sector.  The  minister's 
special  task  consists  in  exploiting  the  vast  raw  material  resources 
on  behalf  of  Allied  economic  strategy. 

Portugal  is  particularly  uneasy  about  the  fate  of  the  Cape  Verde 
Islands  and  the  Azores  in  the  event  of  an  Anglo-American  move 
against  French  West  and  North  Africa.  Angola  and  Mozambique  on  the 
other  hand  are  regarded  as  less  endangered. 


-51- 


CONFIDENTIAL 
4  Jul.  1942 

Special  Items 

I.  Situation  North  Africa; 

The  following  has  been  learned  from  a  report  which  the  German 
General  at  the  Italian  Armed  Forces  Headquarters  sent  to  the  Armed 
Forces  High  Command  on  4  Jul.:  According  to  Rommel's  report  from 
the  morning  of  4  Jul.,  in  which  he  states  that  he  is  forced  to  halt 
the  advance  for  the  time  being  and  go  over  to  the  defensive,  the 
Italian  Armed  Forces  High  Command  has  forwarded  the  following  order 
to  the  Italian  High  Command,  North  Africa: 

The  Duce  shares  the  opinion  of  the  Panzer  Army  Command  that  opera- 
tions have  to  be  halted  temporarily  in  order  to  reorganize  the  units 
and  to  bring  up  reinforcements  in  men  and  materiel.  Reinforcements 
are  to  be  given  priority.  The  Italian  Armed  Forces  High  Command 
will  also  do  its  part  to  expedite  matters  from  Italy.  The  German- 
Italian  Panzer  Army  will  decide  as  to  the  prospective  duration  of 
the  pause  in  the  offensive. 

Thereupon  the  Panzer  Army  reported  that  it  is  compelled  to  go  on  the 
defensive  for  about  2  weeks  in  order  to  obtain  replacements  and 
supplies  and  to  reorganize  its  units. 

Nothing  brings  the  need  of  extreme  speed  in  expediting 
supplies  into  sharper  focus  than  the  present  predica- 
ment which  has  halted  the  advance  of  the  Panzer  Army 
to  the  Nile  Delta  for  lack  of  forces  .   It. is  to  be 
hoped  that  this  pause  is  only  temporary. 

Further  information  from  Rome  indicates  that  the  regiment  on  Crete 
cannot  be  transferred  quickly  due  to  the  lack  of  air  transport 
facilities.   Consideration  is  therefore  being  given  to  an  expedient 
whereby  air  supplies  to  the  II  Army  Corps  in  the  East  would  be  cur- 
tailed by  50$.  The  use  of  paratroops  is  also  being  considered  in  the 
occupation  of  the  Nile  Delta,  in  order  to  facilitate  the  Army's  ad- 
vance to  its  operational  objectives. 

The  transfer  of  the  infantry  regiment  from  Crete  is  to  begin  on  6 
Jul.  and  will  take  about  5  days.  The  next  shipment  of  60  German 
tanks  will  have  been  loaded  in  Italian  ports  by  12  Jul.  Twenty 
more  tanks  are  in  transit  and  another  20  tanks  are  still  in  Germany. 
Six  Italian  parachute  battalions,  2  artillery  battalions  and  one 
battalion  of  engineers  are  ready  for  transfer. 

II.  On  2  Jul.  the  minutes  of  the  conference  held  between  the  Chief 
of  Staff,  Naval  Staff  and  Admiral  Nomura  on  22  Jun.  (as  per  l/Skl 
lb  15785/42  Gkdos.,  see  War  Diary  27  Jun.)  were  brought  to  the 
attention  of  the  Fuehrer  by  the  permanent  representative  of  the 
Commander  in  Chief,  Navy  at  Fuehrer  Headquarters  in  the  presence  of 
the  Chief  of  Staff,  Armed  Forces  High  Command  and  the  Chief,  Operations 
Staff,  Armed  Forces  High  Command. 

The  Fuehrer  declared  that  he  was  in  accord  with  the  views 'of  the 
Naval  Staff. 


-52- 


CONFIDENTIAL 
4  Jul,  1942 

III,  On      .  the  Commanding  Admiral,  Submarines  called  on  th>  Chief 
of  the  Air  Force  General  Staff  and  discussed  measures  to  combat   ; - 
emv  air  activity  in  the  Bay  of  Biscay.   In  a  subsequent  conversation 
with  the  Commander  in  Chief,  Air  the  question  of  labor  for  submarine 
-eoair  work  was  touched  upon,  among  other  subjects.   On  the  follow- 
ing day,  the  Commander  in  Chief,  Air  wired  a  request  for  a  detailed 
report" on  the  labor  shortages  in  order  to  start  immediate  negotia- 
tions with  the  Chief  Administrator  of  German  Labor  Supply.  J-Q® 
Commanding  Admiral,  Submarines  transmitted  this  request  to  the  lUgh 
Command,  Navy  for  action. 

A 'copy  of  the  corresponding  report  of  the  Commanding  Admiral,  Sub- 
marines  as  per  l/Skl  16  200/42  Gkdos.  is  in  War  Diary,  Part  C,  Vol. 
IV. 

The  Submarine  Division*  Naval  Staff  will  give  further  attention  to 
this  matter, 

IV.  In  answer  to  an  inquiry  by  the  Foreign  Office,  the  Chief  of 
Operations  Division,  Naval  Staff  requested  the  nigh  Command,  Navy 
(Naval  Construction  Division)  to  furnish  him  a  report  on  how  effect- 
ively the  French  Naval  Forces  in  the  Antilles  have  teen  immobilized 
and  to  put  this  report  at  the  disposal  of  the  Foreign  Office. 

For  further  details  with  reference  to  directive  l/Skl   Ic  23229/42 
geh.  see  War  Diary,  Part  C,  Vol.  VIII. 


Situation  4  Jul.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

For  additional  decorations  conferred  by  the  Commander  in 
Chief,  Navy  on  the  crew  of  the  DOGGERBANK  see  Radiogram  0120. 

According  to  a  report  from  Etappe  Japan,  the  NANKIN  took  on  coal  and 
provisions  and  underwent  minor  repairs  at  Batavia.   The  NANKIN  and 
the  HERBORG  are  due  to  leave  Batavia  in  the  near  future,  as  per 
directives  from  the  Japanese  Navy.   Instructions  to  ship  "10*   as 
well  as  Information  that  2  whaler  officers  are  due  to  follow  with  the 
UCKERMARK  are  in  Radiogram  2158. 

At  1917  a  short  code  signal  was  received  from  ship  "10",  advising 
that  prize  ship  no.  3  left  large  quadrant  KU  on  4  Jul.  and  will  be 
at  point  "Saale"  on  9  Jul.  The  name  of  the  prize  was  unclear.   Con- 
firmation from  the  Naval  Staff  to  ship  "10"  via  Radiogram  2158. 


-53- 


CONFIDENTIAL 
4  Jul.  1942 

At  the  request  of  the  German  Tripartite  Commission^  Admiral  Nomura 
and  the  Naval  Attache  in  Berlin  have  sent  a  joint  telegram  to  Tokyo 
asking  that  the  prisoners  be  taken  into  immediate  custody.  The 
Foreign  Office,  in  accord  with  the  Naval  Staff,  will  clarify  the 

fundamental  is sue 3  via  the  German  Embassy  in  Tokyo, 

The  Naval  Attache  in  Tokyo  is  being  informed  about  this  by  the  Naval 
Staff  by  Telegram  2030;  simultaneously  he  receives  a  directive  to 
pattern  all  future  sailing  orders  which  he  issues  on  those  of  the 
DRESDEN  and  to  furnish  the  names  of  the  crew  cf  the  prize  ship  as 
soon  as  she  arrives. 

Since  the  departure  of  the  supply  ship  UCKERMARK  has  been  postponed 
for  1  month,  the  Naval  Staff  is  planning  to  provision  ship  "23"  on 
15  Jul.  from  the  CHARLOTTE  SCHLIEMANN;  ship  "28"  at  the  end  of 
August  from  the  UCKERMARK;  and  ship  "10"  from  the  UCKERMARK  follow- 
ing the  provisioning  of  ship  "28".  Inasmuch  as  the  UCKERMARK  will 
not  go  out  to  meet  ship  "23",  another  supply  ship  will  be  detailed 
to  carry  stores  to  the  latter  ship  at  the  end  of  Septembers 

Corresponding  information  has  been  sent  to  all  ships  in  foreign 
waters  by  Radiogram  0101.  * 

Information  has  also  been  forwarded  to  all  vessels  in  foreign 
waters  concerning  the  successful  mining  operation  carried  out  by 
the  DOGGERBANK  near  Cape  Agulhas,  as  well  as  enemy  reports,  by 
Radiograms  2321  and  0656. 


II.  Situation  West  Area 

1.  Enemy  Situation ; 

Air  reconnaissance  reports  that  6  steamers  on  a  north- 
easterly course  were  located  in  the  evening  between  Folkestone  and 
Dover „  A  destroyer  heading  northwest  has  been  sighted  180  miles 
west  of  Vigo,   Thirty  miles  south  of  that  position  a  21-steamer 
convoy  has  been  observed  proceeding  from  Gibraltar  and  escorted  by 
4  destroyers  and  1  patrol,  ship  on  a  350°  course. 

2.  Own  Situation; 

Atlantic  Coast: 

The  Naval  Staff  informs  Group  West  and  Commanding  Admiral., 
Submarines  concerning  the  delayed  arrival  of  the  Japanese  sub- 
marine which  will  be  at  45°N,  13°W  on  1  Aug.  and  will  arrive  in 
Lorient  on  6  Aug. 

On  the  route  "Herzdame"  3  mines  were  cleared  away  and  1  ground  mine 
was  removed  off  Saint -Nazaire. 


-54- 


CONFIDENTIAL 
4  Jul.  1942 

Channel  Coast; 

By  authority  of  the  Commanding  Admiral ,  Prance  the  office 
of  Naval  Shore  Commander,  Channel  Islands  has  been  established  and 
that  of  the  Artillery  Commander  of  Pas  de  Calais  eliminated. 
Quartermaster  Division,  Naval  Staff  has  approved  the  measure.  No 
other  noteworthy  events. 

Special  Items; 

Twenty-four  enemy  air  raids  were  staged  on  the  forces  of 
Commanding  Admiral,  Defenses,  West  in  the  month  of  Jul.  During 
these  raids  8  planes  have  definitely  been  shot  down  and  13  of- our 
escort  vessels  sustained  for  the  most  part  only  slight  damage. 


III.  North  Sea,  Norway,  Arctic  Ocean 
North  Sea; 

1.  Enemy  Situation; 

Air  reconnaissance  reported  locating  25  steamers  and  1 
destroyer  off  the  Humber  headed  north,  and  33  steamers  along  with 
3  patrol  vessels  off  Yarmouth  pursuing  the  same  course. 

2.  Own  Situation; 

To  the  north  of  Ameland  mine -exploding  vessel  "161"  sus- 
tained heavy  damage  and  sank  when  a  mine  exploded  under  her  keel. 
A  total  of  8  ground  mines  were  cleared  on  this  day. 

During  an  enemy  air  raid  on  Den  Holder  at  0800,  1  attacking  plane 
was  shot  down  by  naval  anti-aircraft  guns. 

Mine-sweeping  and  escort  duty  otherwise  according  to  plan.  The 
Naval  Staff  gives  its  approval  to  the  plans  prepared  by  Group 
North  for  the  laying  of  mine  fields  5a  and  10a  and  has  made  the 
allocation  of  the  mines  requested.  The  Naval  Staff  is  of  the 
opinion  that  the  widespread  mining  operations  carried  out  by  the 
British  in  the  German  Bight  as  well  as  the  mining  reported  in  the 
log  of  the  submarine  SEAL  are  evidence  of  the  fact  that  the  British 
have  written  off  the  German  Bight  roughly  along  the  line  running 
from  Terschelling  to  Horns  Riff  as  an  operating  zone  for  surface 
naval  forces.  As  regards  the  Mark  XIV  mines  located  along  route 
"Blau-Gruen" ,  the  Naval  Staff  is  of  the  opinion  that  there  is  no 
reason  to  believe  that  the  mine-laying  operations  were  carried  out 
by  surface  forces  but  rather  that  they  were  executed  by  submarines. 

Copy  of  the  corresponding  order  l/Skl  I  E  16223/42  Gkdos.  in  War 
Diary,  Part  C,  Vol.  VI. 


-55- 


CONFIDENTIAL 
4   Jul.    1942 

Norway: 

Enemy  air  activity  in  the  area  of  the  Admiral,  Arctic 
Coast  is  still  continuing.  An  attack  on  the  Kirkenes  airport  did 
not  cause  any  damage.  Mine-sweeping  operations  and  escort  service 
are  proceeding  according  to  plan  and  without  any  special  incidents. 
First  degree  alarm  has  again  been  ordered  for  outer  batteries  in  the 
area  of  Trondheim  and  Molde.   The  TSINGTAU  and  4  boats  of  the  8th 
PT  Boat  Flotilla  started  out  from  Kristiansand  South,  headed  for  the 
south. 

Special  Items; 

The  High  Command,  Navy,  Officer  Personnel  Division  tabled  for  the 
present  the  replacement  of  the  Admiral,  Arctic  Ocean. 

Arctic  Ocean; 

1.   Enemy  Situation; 

The  contact  of  submarines  and  air  forces  with  convoy 
PQ  17,  which  had  been  lost  about  midnight,  was  again  reestablished 
by  the  air  force  in  quadrant  AB  3657  at  0415  and  by  submarine  U 
"457"  at  0700  in  the  same  quadrant.  The  course  of  the  convoy  has 
been  ascertained  as  130°  to  75°  30'  N,  then  eastward.  At  2100  its 
position  was  reported  by  a  submarine  to  be  in  quadrant  AC  2472. 

A  convoy  escort  force  composed  <5f  1  battleship,  2  heavy  cruisers 
and  3  destroyers  was  spotted  at  1327  by  submarine  TJ  "457"  in  quad- 
rant AC  1542,  proceeding  eastward.  This  convoy  was  reported  in  the 
same  strength  by  submarines  and  planes  until  2145.  The  escort 
forces  kept  at  a  distance  of  60  to  90  miles  north  of  the  convoy. 
It  was  last  located  by  a  plane  at  2145,  some  200  miles  northeast  of 
Bear  Island.  The  report  does  not  state  whether  it  was  still  on  an 
easterly  course  or  going  west.  The  force  which  had  been  reported 
by  air  reconnaissance  at  1201  in  quadrant  AC  1548,  said  to  consist 
of  1  heavy  British  cruiser  and  3  heavy  American  cruisers  as  well  as 
1  British  and  2  American  destroyers,  may  be  assumed  to  be  the 
immediate  escort  of  the  convoy.  No  carriers  were  spotted,  although 
judging  from  the  presence  of  2  torpedo  bombers,  reported  by  air 
shadower  at  1832,  there  is  a  likelihood  that  one  is  in  the  vicinity. 

According  to  radio  monitoring  an  air  alert  was  received  by  convoy 
PQ  17  at  1403.  Between  1901  and  2200  several  operational  messages 
transmitted  from  Scapa  and  Cleethorpes  to  the  Chief  of  the  Home 
Fleet  and  to  the  naval  forces  at  Scapa  were  intercepted. 

Weather  conditions  continued  highly  unstable  in  the  theater  of 
operations,  but  it  cleared  in  the  afternoon  and  visibility  improved. 


^ 


-56- 


CONFIDENTIAL 


4  Jul.  1942 


2.   Own  Situation: 

The  Naval  Staff  reported  on  the  enemy  situation  to  the 
permanent  representative  of  the  Commander  in  Chief,  Navy  at  the 
Fuehrer  Headquarters  and  to  the  Naval  Representation,  Armed  Forces 
High  Command,  Operations  Staff.  This  report  was  accompanied  by  th© 
remark  that  the  presence  of  a  heavy  force  in  the  vicinity  of  the 
convoy  makes  it  impossible  to  carry  out  operation  "Roessel sprung" 
until  air  forces  or  submarines  have  been  sent  into  action  and 
achieved  their  effect  on  the  heavy  vessels  of  the  enemy  force. 

At  1120  Group  North  reported  no  change  in  the  estimate  of  the  situ- 
ation since  the  area  to  be  reconnoitered,  namely  north  of  71°  N, 
has  not  been  thoroughly  covered.  The  report  also  stated  that 
Task  Forces  I  and  II,  which  arrived  in  Alta  Fjord  in  the  meantime, 
have  been  put  -on  a  3-hour  alert.   In  its  estimate  of  the  situa- 
tion as  of  1700  Group  North  pointed  out  that  the  deadline  for 
setting  out  on  operation  "Roesselsprung"  is  at  1700  on  5  Jul.  and 
reported  the  plan  of  retransf erring  the  forces  in  the  event  that 
the  attack  is  not  begun  by  that  time.  The  TIRPITZ,  the  HIPPER,  and 
3  destroyers  will  be  dispatched  to  Narvik;  the  LUETZOW,  destroyer 
Z  H24",  the  IHN  and  torpedo  boats  will  be  ordered  to  Trondheim; 
while  the  SCHEER  and  2  destroyers  will  remain  in  Alta  Fjord,  where 
the  KCELN  will  join  them  later. 

At  2030  the  Chief,  Naval  Staff  transmitted  to  Group  North  his 
approval  by  telephone. 

At  1130  the  Admiral,  Arctic  Ocean  reported  as  a  first  success 
against  PQ.  17  the  sinking  of  the  steamer  CHRISTOPHER  NEWPORT  with 
a  cargo  of  tanks  by  submarine  U  "457"  at  0823. 

Submarines  U  H251"  and  "376"  were  dispatched  to  Narvik  for  re- 
fuelling. 

Submarines  U  "88%  "703",  "334",  and  "457"  were  in  action  against 
the  convoy.  All  submarines  except  those  detailed  to  keep  contact 
with  the  convoy  were  ordered  in  the  course  of  the  day  to  make  the 
heavy  task  force  north  of  the  convoy  their  main  assault  target. 

At  0450  the  Air  Force  reported  the  first  aerial  torpedo  hit.  This 
one  was  probably  scored  on  the  CHRISTOPHER  NEWPORT.  Between  1830 
and  1840  the  sinking  of  a  6,000  GRT  steamer  was  reported. 

No  further  results  have  as  yet  been  reported  about  this  evening's 
operations.  However,  according  to  radio  monitoring,  our  planes 
appear  to  be  engaged  in  lively  raiding  activity  against  vessels  of 
convoy  PQ  17. 


-57- 


4  Jul.  1942 


CONFIDENTIAL 


Up  to  the  close  of  this  day  there  is  still  no  in- 
dication as  to  how  far  the  conditions  are  of  a  kind 
to  warrant  the  start  of  the  "Roesselsprung"  attack. 
The  fact  that  2  presumably  carrier-borne  planes  have 
been  sighted  near  the  convoy  does  not  warrant  a  con- 
clusion that  an  enemy  carrier  is  in  the  vicinity 
since  these  planes  may  belong  to  the  heavy  cruisers 
escorting  the  convoy.  In  addition  no  definite  clue 
could  be  obtained  as  to  the  conduct  of  the  heavy 
escort  group  in  the  north.  It  is  to  be  hoped  that 
information  will  come  in  during  the  night  or  early 
morning  to  clarify  the  situation. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

On  the  night  of  3  Jul.  a  patrol  ship  and  naval  anti-aircraft 
guns  shot  down  2  enemy  planes  in  the  entrances  to  the  Baltic  Sea. 
Convoy  and  escort  missions  in  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea  proceeding  according  to  plan. 

Group  North's  estimate  of  the  situation  discloses  that  after  the 
destruction  of  any  enemy  submarine  by  mine  sweeper  "16"  on  3  Jul., 
another  Russian  submarine  is  outside  the  "Seeigel"  mine  field  near 
Arkona,  and  it  is  probable  that  a  third  submarine  is  off  the  coast 
of  Sweden.  It  is  highly  probable  that  3  submarines  have  been  de- 
stroyed by  Finnish  planes  in  the  "Seeigel"  mine  field  and  another 
one  around  Hogland.  Other  submarines  can  be  expected  to  break 
through  since  the  Russians  do  not  shrink  from  any  losses.  Group 
North  does  not  believe  that  there  are  any  destroyers  outside  of  the 
mine  fields,  but  believes  that  destroyer  escort  is  furnished  when 
attempts  are  made  to  sweep  the  "Seeigel"  mine  field. 

Group  North  requests  1,000  additional  anti-submarine  mines  type  A 
and  600  cutting  floats  for  further  mining  operations  aimed  to 
strengthen  the  "Nashorn"  and  "Seeigel"  mine  fields.  Group  North 
is  also  planning  to  lay  standard  mines  type  C  and  cutting  floats 
continually  over  the  entire  area  east  of  28°  E  as  soon  as  the 
nights  grow  dark  enough  to  permit  such  operations.  A  copy  of  the 
corresponding  order  from  Group  North,  as  per  l/Skl  16  274/42  Gkdos. 
in  War  Diary,  Part  C,  Vol.  III. 

The  above  plans  are  fully  in  accord  with  those  of  the 
Naval  Staff.  The  material  requested  is  made  avail- 
able. 

The  naval  liaison  officer  attached  to  the  Army  High  Command  re- 
ports that  the  speoial  naval  detachment  with  154  motor  vehicles 
whioh  had  been  assigned  by  the  Northern  Army  Group  in  the  months 
of  January  and  February  1942  gave  valuable  support  in  mastering  the 
problems  of  transportation.  The  detachment  made  considerable 
sacrifices  in  fighting  as  infantry  during  the  encirclement  of  the 
Scherer  Group,. 


-58- 


CONFIDENTIAL 


4  Jul.  1942 


V.   Submarine  Warfare 

1.   Enemy  Situations 

There  are  no  noteworthy  reports  other  than  the  sighting 
of  submarines  in  the  usual  positions. 


2. 


Own  Situation: 


Submarine  U  "508",  carrying  out  a  special  mission,  planted 
a  weather-buoy  near  Rockall  Bank  and  is  to  return  to  her  zone  of 
operations  after  planting  another  weather-buoy  near  Porcupine  Bank. 

Submarine  TJ  "136"  sighted  a  section  of  the  Gibraltar  convoy  in' 
quadrant  CG  1160  but  has  received  orders  not  to  undertake  any 
action  against  it. 

In  the  Trinidad  Channel,  West  Indies,  submarine  U  "126"  sank  a 
7,000  GRT  steamer  with  planes  and  gasoline  aboard  and,  using  her 
last  torpedo,  she  sank  the  tanker  GULP  BELLE  (7,104  GRT). 

For  further  details,  particularly  with  reference  to  operations 
against  convoy  PQ  17,  see  supplement  to  Submarine  Situation,  War 
Diary,  Part  B,  Vol.  IV. 

Distribution  of  Submarines  as  of  1  Jul.  1942 
(Number  in  parentheses  gives  corresponding  figure  for  previous 

month ) 


1.  Operational  submarines: 

Types  VII  B,  C,  and  D  99 

IX,  1Kb,  IXc  38 

Xb  1 

XIV  3 

2.  With  the  Submarine  Acceptance  Command 

3.  In  training  and  preparing  for  operations 

4.  School  and  test  boats 

5.  Expected  to  be  commissioned  in  Jul. 

6.  Transferred  to  zone  of  operations  in  Jun. 

7.  Commissioned  in  Jun. 

8.  Missing  in  Jun. 

9.  Decommissioned  (3  of  this  number 
assigned  to  Black  Sea  transport  duty) 

Total  of  ships  commissioned 


141   (128) 


31 

(49) 

108 

(86) 

58 

(56) 

21 

(22) 

15 

(    6) 

21 

(21) 

2 

(    2) 

5 

(  5) 

338 

(319 

-59- 


CONFIDENTIAL 
4  Jul.  1942 

VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 
Nothing  to  report. 

2.  Me  dl t  er ran  e  an  Theat  er : 

Mines  were  sown  throughout  the  Suez  Canal  on  the  night  of 
4  Jul.   The  southern  area  was  covered  most  thoroughly. 

Forces  of  the  Air  Command,  Africa  were  in  continuous  action  against 
enemy  concentrations  in  the  area  of  El  Alamein. 

3.  Eastern  Front: 

The  employment  of  the  15th  Air  Force  against  the  convoy 
PQ  17  was  hampered  chiefly  by  bad  weather  conditions  at  the  take- 
off point.   On  3  Jul.  the  only  place  land-based  planes  were  able  to 
approach  throughout  the  day  was  Kirkenes.  No  other  planes  with  the         £. 
exception  of  He  115 's  took  part  in  air  operations  on  2  and  3  Jul. 
No  successes  were  reported  although  the  torpedoes  functioned 
normally.  The  first  success  was  reported  at  0450  on  4  Jul.  The 
latter  was  also  to  the  credit  of  an  He  115.   (See  Situation  Arctic 
Ocean.)   In  the  afternoon  the  weather  cleared  in  the  take-off  area, 
permitting  the  assignment  of  wheeled  aircraft.  At  about  2000  the 
convoy  was  attacked  by  successive  waves  of  23  He  Ill's  in  quadrant 
AC  1640.  Results  are  not  yet  in. 

No  noteworthy  reports  have  been  received  from  the  Gulf  of  Finland 
and  the  Black  Sea. 


VII.  Warfare  in  the  Mediterranean  and  the  .Black  Sea 

1.   Enemy  Situation; 

Mediterranean ; 

The  CHARYBDIS  and  a  cruiser  of  the  CAIRO  class  left  for 
the  Strait  of  Gibraltar  for  towing  practice.  Upon  her  return  the 
CHARYBDIS  stopped  briefly  at  Gibraltar  and  left  westward. 

Submarines  have  been  sighted  at  noon  and  in  the  evening  of  3  Jul. 
west  of  Crete.   On  4  Jul.  in  the  fore  -  and  afternoon  other  sub- 
marines were  sighted  north  of  Benghazi. 

According  to  air  reconnaissance  there  were  no  important  changes  in 
the  number  of  ships  present  at  Haifa  and  in  Port  Said.   One 
cruiser,  2  destroyers,  1  tanker,  and  4  steamers  were  located  in  the 
forenoon  on  a  240"  course,  34  miles  north  northwest  of  Port  Said. 
One  steamer  and  3  destroyers  were  observed  at  the  same  time  55 
miles  north  of  Port  Said,  pursuing  a  southerly  course. 


-60- 


CONFIDENTIAL 


4  Jul.  1942 


In  the  port  of  Suez  and  in  the  roadsteads  on  3  Jul.,  3  to  5  de- 
stroyers, 2  passenger  ships,  30  to  40  steamers,  and  9  tankers  were 
anchored. 

The  following  losses  of  warships  have  admittedly  been  suffered  by 
the  British  out  of  the  double  convoy  which  was  at  sea  in  the  month 
of  June : 

In  the  eastern  part:  the  cruiser  HERMIONE,  the  destroyer  HASTY,  and 

the  corvettes  GROVE  and  AIREDALE. 

In  the  western  part:  the  destroyers  BEDOUIN,  NESTOR  and  the  torpedo 

boat  KUJAWIAK. 

2.   Own  Situation: 

Mediterranean : 

Nothing  to  report. 

The  Naval  Staff  gives  the  following  estimate  of  the  situation  in 
the  Eastern  Mediterranean: 

I.  The  strength  of  the  Mediterranean  Fleet  up  to  17  Jun.: 

The  battleship  QUEEN  ELIZABETH  (in  dock),  1  heavy  warship  of  un- 
identified type  (dummy  ?),  7  cruisers,  13  to  15  destroyers,  about 
10  escort  vessels,  the  same  number  of  submarines,  3  repair  ships, 
an  unidentified  number  of  small  vessels  and  several  Greek  torpedo 
boats  and  submarines. 

II.  The  withdrawal  from  Alexandria  of  all  enemy  naval  forces  be- 
tween the  end  of  Jun.  and  2  Jul.  has  been  ascertained  from  air 
photos.  From  reports  of  agents  obtained  from  various  sources  and 
radio  communication,  we  are  led  to  believe  that  parts  of  the 
Mediterranean  Fleet  have  already  departed  via  the  Suez  Canal  while 
single  cruisers,  destroyers  and  escort  vessels  are  still  around 
Levantine  ports  and  at  Cyprus.   On  1  Jul.  an  air  photo  confirmed 
the  presence  of  2  cruisers,  3  destroyers,  and  5  escort  vessels  at 
the  port  of  Haifa. 

III.  The  Naval  Staff  believes  that  even  after  the  occupation  of 
Alexandria  and  after  Rommel's  advance  to  the  Suez  Canal,  light 
British  naval  forces  will  remain  in  the  Levantine  ports  and  at 
Cyprus.  They  will  probably  consist  of  destroyers  and  escort 
vessels  and,  perhaps,  also  of  cruisers.  These  forces  can  be 
counted  on  to  remain  so  long  as  Britain  continues  to  nurse  hopes  of 
winning  back  Alexandria  and  reestablishing  her  dominion  over  the 
Suez  Canal  and  as  long  as  a  breakthrough  Is  possible  via  the 
Strait  of  Sicily,  with  Malta  open  as  a  transit  port  to  the  East. 
Beirut,  Haifa  and  Cyprus  are  adapted  for  use  as  jump-off  points  for 
a  limited  number  of  light  combat  forces.   These  ports  offer  limited 
repair  facilities  and  have  no  docks  but  their  fuel  situation  Is 
insured. 

IV.  Thus,  in  the  opinion  of  the  Naval  Staff,  it  is  not  to  be  ex- 
pected that  our  supply  communication  with  Alexandria  and  ports  fur- 


-61- 


CONFIDENTIAL 
4  Jul.  1942 

ther  west  will  no  longer  be  menaced  by  enemy  naval  forces  once 
we  have  closed  the  Suez  Canal  to  Great  Britain*   Long  communica- 
tion lines,  however,  expose  the  enemy  to  considerable  danger  from 
our  air  forces.   It  is  therefore  imperative  to  intensify  our  air 
reconnaissance  at  the  eastern  end  of  the  Mediterranean. 

V.   The  closing  of  the  Suez  Canal  will  be  without  appreciable 
effect  on  the  enemy  submarine  situation  since  they  will  operate  out 
of  Gibraltar. 

This  estimate  of  the  situation  has  been  sent  to  the  Armed  Forces 
High  Command,  Operations  Staff,  attention  Naval  Representation, 
with  copies  to  German  Naval  Command,  Italy,  Commanding  Admiral, 
Aegean  Sea,  and  Naval  Group  South  by  Telegram  l/Skl  Im  16160/42 
Gkdos.  in  War  Diary,  Part  C,  Vol.  XIV. 

3.  Transport  of  Supplies  to  North  Africa; 

The  convoy  of  the  BIXIO,  ANKARA,  .  and  M0NVTS0  underwent 
repeated  enemy  air  raids  on  the  night  of  3  Jul.,  but  did  not  suffer 
any  damage.   The  steamer  PETRARCA  has  arrived  at  Tobruk.   Other 
supply  traffic  according  to  plan.   The  Italian  Navy  has  thus  far 
committed  the  steamers  ISEO  and  GUALDI,  in  addition  to  auxiMary 
sailing  vessels,  along  the  Benghazi -Tobruk  route.   Other  auxiliary 
sailing  vessels  are  due  to  be  assigned. 

4.  Area  Naval  Group  South: 
Aegean  Sea; 

At  0800  the  6  steamers  of  the  20th  Crete  Squadron  moved 
out  of  Piraeus  for  Candia.  At  the  request  of  the  Commanding 
General  Armed  Forces,  South,  7  steamers  remained  in  the  port  of 
Piraeus.   Preparations  are  under  way  for  the  shipping  of  vehicles 
and  equipment  of  the  382nd  Infantry  Regiment  and  the  3rd  Company 
of  the  220th  Engineers  from  Crete  to  Marsa  Matruh  by  ships  of  the 
Crete  Squadron. 

For  corresponding  directive  from  Naval  Group  South,  see  Telegrams 
1025  and  1855. 

Black  Sea; 

Enemy  Situation; 

According  to  an  intelligence  report,  the  battleship 
PARIZHSKAYA  K0MMUNA  was  at  anchor  in  Batum  on  28  Jun.   Radio  mon- 
itoring observed  brisk  submarine  activity  in  the  area  south  of  the 
Crimea  as  far  as  Novorossisk.   In  the  northeastern  Black  Sea  numer- 
ous mine  sweepers  and  PT  boats  have  been  observed.   In  the  south- 
eastern area  of  the  Black  Sea  2  cruisers,  1  flotilla  leader,  3 
destroyers  and  6  submarines  have  been  observed. 


-62- 


CONFIDENTIAL 
4  Jul.  1942 

Own  Situation: 

The  1st  PT  Boat  Flotilla,  3  Italian  subchasers,  and  5 
motor  boats  were  operating  off  Cape  Fiolent  and  south  of  Cape 
Sarich  on  the  night  of  3  Jul,  without  contacting  the  enemy.  Convoys 
are  proceeding  according  to  plan. 


VIII.  Situation  East  Asia 
Nothing  to  report. 


IX.  Army  Situation 

1.  Russian  Front ; 

Southern  Army  Group; 

The  last  enemy  resistance  on  the  Kherson  Peninsula  has 
been  broken. 

The  6th  Army  continued  the  eastward  advance  along  the  entire  front. 
A  number  of  bridgeheads  have  been  established  across  the  Oskol 
river,  south  of  Valuiki.  To  the  southwest  of  Voronezh  the  24th 
Panzer  Division  and  the  Grossdeutschland  Dlvisi  .  succeeded  in 
throwing  3  bridgeheads  across  the  Don  River,   Large  enemy  -forces 
were  cut  off  when  the  von  Weichs  Group  effe       junction  with  the 
6th  Army  at  Stary  Oskol.  Nevertheless,  strong  enemy  armored  and 
cavalry  units  managed  to  effect  a  break-through.  Enemy  pressure 
continues  south  of  Livny. 

Central  Army  Group; 

To  the  south  of  Mostovaya  our  tank  forces  advanced  fur- 
ther south  and  attacked  Nesterovo,  about  15  km  northeast  of 
Byeloi.  West  of  Sychevka  our  troops  succeeded  in  gaining  con- 
siderable ground  to  the  west. 

Northern  Army  Group;  No  important  actions. 

2.  Finnish  and  Norvegian  Front; 
No  important  actions. 

3.  North  Africa; 

According  to  an  Italian  report,  a  state  of  siege  and 
martial  law  have  been  proclaimed  in  Cairo.  British  troops  har 
occupied  the  city.   It  is  said  that  the  Egyptian  government,  the 
diplomatic   representatives,  and  the  British  advisers  have  lef 
Cairo. 


-63- 


CONFIDENTIAL 
4  Jul.  1942 

The  enemy  1st  Armored  Division  is  attacking,  endeavoring  to  stem 
our  deep  penetration  through  the  center  of  his  positions.  Enemy 
planes  are  carrying  out  heavy  raids  on  our  troops  and  supply  routes, 
both  day  and  night. 


( 


I 


-64- 


CONFIDENTIAL 
5  Jul.  1942 

Items  of  Political  Importance 

United  States: 

The  Roosevelt  address  delivered  on  the  occasion  of  American  Inde- 
pendence Day  refers  to  the  present  war  as  a  war  of  liberation  of  the 
United  Nations  against  the  greatest  tyranny  the  world  has  ever  seen. 
The  American  press  is  critical  of  the  exaggerated  optimism  which  has 
its  origin  in  the  Russian  army  communiques  and  points  out  that  the 
reports  of  losses  in  ships  due  to  submarine  warfare  far  outweigh 
the  reports  of  victories  won  in  Russia.  The  press  goes  on  to  say 
that  because  of  the  steel  shortage  it  is  not  possible  for  the 
present  to  maintain  the  accelerated  tempo  of  naval  construction. 
The  steel  shortage  is  also  the  reason  for  giving  up  the  vast  factory 
construction  program  in  favor  of  increased  arms  production.   The 
only  plants  which  are  being  expanded  are  those  designed  to  produce 
synthetic  rubber,  aviation  fuel,  and  explosives.  The  system  of  raw 
materials  distribution  will  have  to  be  drastically  changed  with  a 
view  to  preventing  their  being  used  for  products  not  essential  to  the 
war  effort. 

Brazil: 

At  a  great  protest  rally  in  Rio  de  Janeiro  staged  against  the  Axis 

powers,  the  Foreign  Minister  declared  that  the  Brazilian  army w ould 

be  used  also  beyond  the  borders  of  Brazil,  if  America  should  find 
itself  threatened. 


Special  Items: 

I.   According  to  a  telegraphic  report  of  2  Jul.  from  the  Naval 
Attache  in  Tokyo  concerning  probable  future  Japanese  operations,- a 
Japanese  attack  on  Australia  during  the  current  year  has  been  given 
up,  apparently  due  to  the  failure  of  landing  operations  off  Moresby 
and  Midway.  The  Japanese  seem  to  entertain  no  fear  that  later  on 
Australia  will  have  grown  too  strong  as  a  result  of  the  continued 
Anglo-American  delivery  of  war  supplies. 

It  is  possible  that  the  Japanese  will  attempt  once  more  the  landing 
operation  which  failed,  .since  it  is  believed  that  only  during  the 
current  year  will  it  be  feasible  to  dislodge  the  Americans  from 
their  island  position  all  the  way  from  the  north  to  Hawaii,  con- 
stituting a  threat  to  Japan .   An  attack  against  Ceylon  is  being  pre- 
pared for  the  fall.  This  operation,  which  Japan,  in  accord  with  our 
viewpoint, considers  of  decisive  strategic  importance,  will  be  under- 
taken in  order  to  insure  communication  with  the  European  Axis 
partners  via  the  Middle  and  Near  East.   It  depends,  however,  on  the 
losses  sustained  by  the  fleet  in  its  island  operations.   The  German 
advance  in  North  Africa  is  followed  by  the  Navy  with  the  most 


-65- 


CONFIDENTIAL 
5  Jul.  1942 

Intense  interest.   Moreover,  the  Navy  Is  opposed  to  any  operation 
against  Russia  unless  provoked. 

A  copy  of  the  telegram  as  per  l/Skl  16379/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  XV. 

The  Attache's  report  shows  how  difficult  it  is  for 
far-flung  naval  operations  with  their  unavoidable 
lengthy  preparations  to  keep  pace  with  sudden  changes 
in  the  situation,  such  as  those  occasioned  by  the  un- 
expectedly swift  and  far-reaching  victories  of  Rommel. 
It  is  indeed  regrettable  that  the  Japanese  did  not 
follow  the  suggestion  of  t he  German  Naval  Staff  from 
the  outset  and  that  they  failed  in  good  time  to  de- 
cide in  favor  of  shifting  the  center  of  their  strategy 
to  the  Indian  Ocean,  v/hich  they,  too,  now  recognize  as 
the  decisive  theater  of  war.  According  to  the  Naval 
Staff,  the  pressing  concern  for  the  islands  of  the 
Pacific  can  be  justified  only  from  a  strictly 
Japanese  standpoint.   Unfortunately,  the  Japanese  seem 
to  Ignore  the  fact  that  a  decision  won  in  the  Indian 
Ocean  would  benefit  them  to  a  far  higher  extent.  A» 
personal  letter  dated  1  Jul.   from  Admiral  Nomura  to 
the  Chief  of  Staff,  Naval  Staff  contains  the  statement 
that.,  inspired  by  his  conference  of  22  Jun.  with  the 
Chief  of  Staff,  Naval  Staff  and  in  view  of  the  rapid 
advance  in  North  Africa,,  he  requested  Tokyo  by  telegram 
on  30  Jun.  to  reinforce  the  Japanese  naval  forces 
operating  off  the  African  coast  as  quickly  as  possible, 
in  order  to  "smash  the  Anglo-American  ships"  operating 
in  the  northwestern  portion  of  the  Indian  Ocean. 
Nomura  believes  that  in  view  of  developments  in  Africa, 
Tokyo  will  now  fall  in  line  with  the  position  which  he 
has  been  holding  for  a  long  time  about  the  great  im- 
portance of  the  north-western  area  of  the  Indian  Ocean 
and  which  had  always  been  rej  ected  in  favor  of  the 
/       Pacific  and  the  southern  theater. 

The  Naval  Attache's  report  of  2  Jul.  originated  un- 
doubtedly prior  to  the  receipt  of  this  Nomura  tele- 
gram in  Tokyo.   It  remains  to  be  seen  what  Nomura  has 
achieved  with  his  proposal.   As  he  himself  points  out, 
considerable  time  will  elapse  before  it  materializes, 
because  of  the  great  distances- involved. 

II.   For  the  report  of  the  Special  Staff  for  Economic  Warfare,  Armed 
Forces  High  Command  to  the  Chief  of  Staff,  Armed  Forces  High  Command, 
dated  28  May  1942,  concerning  blockade-running  activities  during 
1941/2  as  per  l/skl  1015/42  Gkdos.  Chefs,  see  War  Diary,  Part  C, 
Vol.  XI.   About  32,000  tons  of  India-rubber  and  26,538  tires  or 
about  650  tons  have  been  brought  from  Japan.   About   l/5  of  the 


-66- 


CONFIDENTIAL 
5  Jul.  1942 

ships  and  cargoes  (3  ships  totalling  19,000  GRT)  were  lost  en  route 
hone  from  East  Asia.   Ships  totalling  73,000  GRT  reached  home  ports 
and  35,000  GRT  departed.   In  view  of  the  expansion  of  the  Japanese- 
dominated  area  the  prospects  as  regard3  blockade -running  for  the 
year  1941-1942  may  be  considered  favorable. 

III.  The  Naval  Staff,  Quartermaster  Division  has  compiled  a  record 
of  93  warships  and  189  auxiliary  warships  transported  overland  or 
by  inland  waterways.   This  includes  transports  already  carried  out 
and  those  still  in  progress  or  scheduled  to  take  place.  A  copy  of 
the  record  as  per  l/Skl  15372/42  Gkdos.  in  War  Diary,  Part  B,  Vol.  V, 


Situation  5  Jul.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

South  Atlantic: 

The  cruiser  MILWAUKEE  and  the  destroyer  M0FFET  have  de- 
parted from  Rio  de  Janeiro  on  23  Jun.  in  a  southerly  direction.   On 
4  Jun.,  radio  monitoring  intercepted  a  badly  garbled  message  from 
the  Commander  in  Chief,  South  Atlantic  Station  to  the  British 
Admiralty.   This  message  states  that  1  steamer  was  still  afloat  on 
3  Jun.  at  15°  30' S,  16°  W.   The  name  "Alcopolaris"  appears  further 
in  the  text.  The  connection  can  thus  far  not  be  explained. 

The  German  Consulate  at  Santa  Izabel  reports  that  the  defenses  of 
Duala  have  further  been  strengthened.  A  large  American  assembly 
plant  has  been  built  at  Accra.  U.S.  planes  are  flown  from  here  to 
Khartum.   The  parts  for  these  planes  are  brought  here  by  sea.   The 
large  number  of  ships  in  the  port  of  Accra  have  to  leave  the  harbor 
at  night  and  cruise  at  sea.   One  torpedo  boat  is  assigned  to  coast 
patrol  duty.  No  blackout  has  thus  far  been  imposed  at  Accra  or 
Lagos  and  there  is  no  information  available  at  Accra  concerning 
troop  concentration  for  operations  against  the  French  colonies. 

Indian  Ocean; 

In  the  area  of  the  Mozambique  Channel,  Japanese  submarines 
attacked  4  steamers  identified  by  name. 

2.  Own  Situation; 

It  has  still  not  been  possible  to  make  a  reliable  identi- 
fication of  the  third  prize  captured  by  ship  "10rt.   The  Naval 
Communications  Officer  believes  that  it  is  the  steamer  MADRONO.   The 
Naval  Staff  has  forwarded  to  ship  "10"  a  new  confirmation  to  that 
effect,  via  Radiogram  2115. 


-67- 


CONFIDENTIAL 


5  Jul.  1942 


Ship  "23"  has  received  instructions  via  Radiogram  1312,  requesting 
her  to  specify  at  her  convenience  what  supplies  a  supply  vessel 
scheduled  to  leave  port  in  September  should  bring  along  for  her. 

All  ships  in  foreign  waters  are  notified  by  Radiogram  1455  of  the 
change  of  one  item  in  sailing  orders  of  prize  ships  with  reference 
to  their  entering  the  Gironde. 

All  vessels  in  foreign  waters  are  further  notified  by  Radiogram  1148 
concerning  Franco -American  and  Franco-G-erman  relations,  as  well  as 
concerning  situation  of  the  French  squadron  in  Alexandria. 

Information  concerning  enemy  situation  by  Radiogram  2306. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

Air  reconnaissance  sighted  2  merchant  vessels  on  course 
160°  in  quadrant  BF  4292  at  lli5.   They  may  be  carrying  out  a  mining 
mission. 

2,  Own  Situation: 
Atlantic  Coast: 


Lorient . 


4  ground  mines  have  been  removed  off  the  Gironde  and 
Channel  Coast: 


For  some  time  past  and  with  Increasing  frequency  our  guns 
have  been  s helled  by  enemy  long-range  batteries.   Group  West  ordered 
that  enemy  gun  positions  should  be  shelled  in  keeping  with  the  in- 
structions of  the  Commander  in  Chief,  Navy,  which  allowed  occasional 
firing  on  enemy  convoys.   Group  West  requests  subsequent  authoriza- 
tion and  the  Chief,  Naval  Staff  grants  same. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

It   is   reported  belatedly  that    on  28   Jun.   patrol   vessel 
VP  "1209"   shot   down  a  4-motored  enemy  bomber   off  Roter  Sand;   the 
plane  had  probably  been  damaged  earlier  by  land-based  anti- 
aircraft guns . 


-68- 


CONFIDENTIAL 
5  Jul.  1942 

Convoy  operations  in  the  area  of  the  Commanding  Admiral,  Defenses, 
North  are  proceeding  according  to  plans.   Due  to  weather  conditions, 
some  of  the  channel  sweeping  operations  had  to  be  cancelled.   A  few 
ground  mines  were  swept.   Operations  to  lay  minefield  5a  (Thusnelda 
minefield)  have  gotten  under  way. 

2.  Norway : 

Examination  of  the  LUETZOW  by  divers  revealed  that  the 
inner  bottom  is  apt  to  stand  up  under  normal  circumstances,  but  that 
it  might  be  affected  by  strong  explosions  and  vibrations.  The  ship 
is  on  a  3-hour  alert.   (See  Telegram  1435.) 

t 

Otherwise  nothing  to  report. 

3.  Arctic  Ocean; 

Enemy  Situation: 

The  force  was  sighted  at  0655  in  quadrant  AB  2732  and  was 
pursuing  a  mean  course  of  270°  at  a  speed  of  15  knots.   Until  about 
0300  air  reconnaissance  and  submarines  still  reported  the  convoy  and 
cruiser  group  proceeding  together.   According  to  a  submarine  sight- 
ing report  the  cruiser  group,  moving  at  high  speed,  dropped  out  of 
sight  at  0358  west  of  quadrant  AC  1665.   It  appears  then  that  the 
cruiser  group  discontinued  escorting  the  convoy  and  is  moving  away  in 
a  westerly  direction.   According  to  a  report  of  the  5th  Air  Force, 
the  task  force  reported  by  air  reconnaissance  at  2130  on  4  Jul.  and 
consisting  of  1  battleship,  1  heavy  and  2  light  cruisers,  and  3  de- 
stroyers, was  at  the  time  pursuing  a  course  of  300°  at  a  speed  of  20 
knots.   It  is,  therefore,  to  be  assumed  that  this  escort  force  had 
already  turned  back  during  the  evening  of  4  Jul.  in  the  area  north- 
east to  north-northeast  of  Bear  Island  and  started  back  in  south- 
westerly direction.   According  to  Group  North  the  heavy  unit  was 
last  reported  at  1745  on  4  Jul.  in  quadrant  AC  1647.   The  convoy 
proper  was  already  reported  beginning  0100  on  5  Jul.  by  planes  and 
submarines  as  widely  scattered,  that  is,  separated  into  a  northern 
group  consisting  of  some  18  steamers  and  a  squthern  group  consisting 
of  about  12  steamers.   With  the  northern  group  an  escort  force  made 
up  of  3  destroyers  and  2  corvettes  was  sighted;  with  the  southern 
group  1  light  cruiser.   The  northern  group  was  last  sighted  at  1550 
in  quadrant  AC  2695.   From  this  time  forward  convoy  PQ,  17  seems  to 
have  completely  broken  up  into  tiny  groups  or  single  ships  which 
endeavored  to  reach  their  ports  of  destination  by  sailing  as  far 
northeast  as  possible. 

According  to  photographic  reconnaissance  carried  out  on  5  Jul.  at 
noon,  the  following  ships  were  lying  at  Scapa  Flow:    1  battleship 
KING  GEORGE  V  class,  1  cruiser  which  seemed  to  belong  to  the  FIJI 
class,  1  cruiser  apparently  of  the  LEANDER  class,  1  of  the  AURORA 
class  and  1  of  the  COVENTRY  class,  2  other  cruisers  and  a  number  of  . 
destroyers  (5  or  6),  as  well  as  2  PT  boat  flotillas. 

At  1745  air  reconnaissance  sighted  a  force  consisting  of  4  cruisers 
and  9  destroyers.   One  of  the  latter  was  identified  as  of  the  LONDON 
class.   The  force  was  located  in  quadrant  AB  27,  pursuing  a  270° 


-69- 


CONFIDENTIAL 
5  Jul.  1942 

course  and  proceeding  at  a  moderate  speed.   Contact  was  maintained 
until  1910, 

Prom  1450  to  1814  air  reconnaissance  brought  in  continuous  reports 
from  Cleethorpes  concerning  submarine  and  air  attacks  on  vessels 
of  the  conVoy.   (For  details  see  Radio  Intelligence  Report  2200 
in  files  "Roesselsprung".) 

2.    Own  Situation; 

a.    Operation  "Roesselsprung"; 

The  following  situation  presented  itself  during  the 
early  morning  of  5  Jul.: 

The  convoy  was  already  badly  dispersed  during  the  night  of  4  Jul. 
•  by  the  blows  of  our  air  force.   The  escort  groups,  wliich  had  been 
reported  In  its  vicinity,  withdrew  to  the  west  in  the  evening  and 
during  the  early  hours  of  the  night  of  4  Jul.  No  report  has  yet 
been  received  of  the  sighting  of  the  carrier  force.   A  clear  pic- 
ture of  the  enemy  situation  between  Norway  and  Spitsbergen  up  t o 
about  5°  E  could  soon  be  expected  from  air  reconnaissance  in  view  of 
favorable  weather. 

Accordingly  the  Commanding  Admiral,  Group  North  reported  his  view  of 
the  situation  at  0600  as  follows? 

1.  "If  the  battleship  mentioned  in  both  air  reconnaissance  and 
submarine  reports  "  belonging  to  the  group  in  the  vicinity  of  the 
convoy  is  damaged  by  1200 ,  then  I  consider  it  expedient  to  make  an 
attack  without  thought  for  the  carrier,  provided  the  latter  has  not 
been  located  by  then. 

2.  "I  do  not  believe  it  likely  that  the  carrier -will  venture 
into  the  effective  range  of  our  bombers,  and  I  do  not  expect  her 
planes  to  have  too  great  an  effect  if  the  convoy  is  attacked  south 
of  72°  and  the  carrier  is  obliged  to  send  her  planes  into  action 
from  so  great  a  distance. 

3.  "The  deadline  for  the  departure  of  our  ships  for  operation 
"Roesselsprung"  is  1300  on  5  Jul.,  since  otherwise  the  battle 
against  the  convoy  would  be  too  near  the  coast. 

4.  "Request  general  consent  to  point  (1)  in  order  to  be  able 
promptly  to  issue  the  key  word  without  having  to  expect  the  order  to 
be  recalled." 

In  view  of  the  Fuehrer's  demand  that  the  fleet  should  not  venture 
a  thrust  unless  the  enemy  carrier  has  been  located  and  eliminated. 
the  Chief,  Naval  Staff  has  for  the  time  being  declined  to  consent 
to  the  action.   Group  North  was  informed  to  that  effect  at  0915.  In 
the  meantime,  however,  the  reports  of  extensive  air  reconnaissance 
have  come  in.   Most  pertinent  among  them  is  the  sighting  of  the 
carrier  force  at  0655  in  quadrant  AB  2732,  withdrawing  in  westerly 


-70- 


CONFIDENTIAL 
5  Jul.  1942 

direction.   Prom  this  fact  it  may  be  concluded  that  the  enemy  is  by 
no  means  inolined  to  expose  his  heavy  fighting  forces  and  carriers 
to  the  attacks  of  the  torpedo  planes  and  bombers  of  the  Air  Force 
operating  from  the  Norway  area.   Furthermore,  it  is  open  to  doubt 
whether  the  enemy,  who  has  been  at  sea  with  his  carrier  force  since 
about  1  Jul.,  is  at  all  in  a  position  to  continue  the  operation.  It 
is  possible  that  he  is  forced  to  begin  to  turn  back  to  base  or  at 
least  to  repair  to  a  waiting  position  in  the  Arctic  Ocean  for  re- 
fueling at  sea  from  tankers,  an  operation  which  will  involve  con- 
siderable time.   Under  these  circumstances,  the  enemy  carrier  force 
hardly  presents  any  threat.   Moreover,  the  Air  Commander,  Lofoten 
Islands  reported  as  of  1004  that  no  enemy  was  sighted  under  good 
visibility  conditions  between  14°  and  26°  E  up  to  the  ice-barrier. 

The  Commanding  Admiral,  Group  North  then  repeated  his  suggestion  by 
telephone  to  the  Chief  of  Staff,  Naval  Staff  and  subsequently  to  the 
Chief,  Naval  Staff;  the  latter  then  gave  his  consent.   The  permanent 
representative  of  the  Commander  in  Chief,  Navy  at  the  Fuehrer  Head- 
quarters received  instruction  to  apprise  the  Fuehrer  of  the  situa- 
tion and  obtain  his  consent  for  the  attack.   He  may  report  the 
successful  accomplishment  of  this  mission  at  about  1130. 

In  the  meantime,  the  Chief,  Naval  Staff  transmitted  through  the  Chief 
of  Staff,  Naval  Staff  to  the  Commanding  Admiral,  Group  North  the 
additional  condition  that  the  operation  must  not  be  executed  if  dis- 
turbing nev/s  is  received  concerning  the  enemy  carrier  or  if  our  forces 
are  sighted  by  enemy  planes.   The  Fuehrer's  consent  was  transmitted 
by  telephone  at  1140  through  the  Chief  of  Staff,  Naval  Staff  to  the 
Commanding  Admiral,  Group  North.   The  fleet  forces  which  had  been 
placed  by  Group  North  under  a  one-hour  alert  as  early  as  0900  as  a 
precautionary  measure  and  which  were  under  order  of  immediate  readi- 
ness as  of  1052,  were  given  the  agreed  key  word  for  the  operation  by 
Group  North  at  1141,  At  1300,  Group  North  took  over  the  command  of 
the  operation,  ordering  the  force  to  come  out  near  Nordkyn  and  cross 
the  Brei  Sound,  preceded  by  an  anti-mine  escort. 

The  following  picture  presents  itself  on  the  basis  of  the  estimate 
of  the  situation  compiled  by  Group  North  and  transmitted  to  the 
Fleet  Commander  at  1245. 

"A  heavy  vessel  of  the  enemy  fleet  was  last  reported  by  the  Air 
Force  in  quadrant  AC  1647  at  1745  on  4  Jul.   Only  cruisers  and  de- 
stroyers have  since  been  located  near  the  convoy.  A  cruiser  group 
was  sighted  by  a  submarine  at  0110  in  quadrant  AC  2440,  pursuing  a 
westerly  course  at  high  speed.  At  0645  a  carrier  group  was  located 
in  quadrant  AB  2732,  proceeding  at  a  moderate  speed,  on  a  270o 
course,  probably  in  waiting  position.   The  area  between  14°  and  26° 
E  was  reconnoitered  today  under  good  visibility  and  reported  to  be 
free  of  enemy  forces.   According  to  data  obtained  thus  far,  only 
cruisers,  destroyers,  and  submarines  are  escorting  the  convoy.   The 
latter  is  divided  into  two  groups  and  is  spread  out  over  a  large 
area.   Numerous  damaged  ships  are  gathering  together,   Our  sub- 
marines are  at  the  convoy.   Thus  far  the  enemy  appears  not  to  have 


-71- 


CONFIDENTIAL 
5  Jul,  1942 

discovered  our  force  lying  in  the  Alta  Fjord.   The  probable  area  of 
operations  for  tomorrow  noon  is  quadrant  AC  6600  and  AC  6900.  There 
are  none  of  our  submarines  along  the  approach  route.   Should  the 
enemy  situation  undergo  a  change,  particularly  with  reference  to 
position  of  carriers,  the  order  may  be  recalled." 

Group  North,  therefore,  believes,  that  besides  the 
cruiser  group  no  heavy  task  force  including  a  battle- 
ship  has  been  in  the  vicinity  of  the  convoy  after 
1745. 

At  about  1610,  the  Fleet  Commander  received  the  following  directive 
from  Group  North: 

"Short  operation  with  partial  success  preferable  to  attempt  at  com- 
plete victory  involving  longer  period  of  time.   Report  at  once  all- 
enemy  planes  overhead.   Do  not  hesitate  to  break  off  operation  if 
situation  becomes  serious.   Under  no  circumstance  permit  the  enemy 
to  score  success  against  nucleus  fleet." 

This  directive  follows  the  principles  laid  down 
by  the  Chief,  Naval  Staff  in  the  morning. 

The  force,  including  the  TIRPITZ,  the  HIPPER,  the  SCHEER,  and  8 
destroyers  sailed  out  from  behind  the  islands,  heading  east  accord- 
ing to  plan.   The  Chief,  Operations  Division,  Naval  Staff  regards  the 
prospects  for  operation  "Roesselsprung"  as  being  decidedly  favorable. 
The  carrier  group  was  last  sighted'  far  out  west  departing  on  a 
westerly  course.   The  battleship  escort  group  and  the  cruiser  group 
have  also  left  the  convoy  and  were  on  a  westerly  course  when  last 
sighted.   It  is  to  be  assumed  that  only  isolated  cruisers  and  de- 
stroyers are  escorting  the  convoy.   The  convoy  itself  is  broken  up 
into  sections  and  scattered  far  afield.   Having  11  ships  at  our  dis- 
posal we  are  nonetheless  likely  to  have  a  good  opportunity  to  attack 
the  convoy,  making  use  of  plane  and  submarine  sighting  reports. 

In  the  evening  radio  monitoring  intercepted  2  reports  from  a  British 
vessel,  probably  a  submarine,  which  had  sighted  2  battleships  and  8 
destroyers  at  1700,  giving  the  position  as  710  25«  N,  23©  40'  E, 
course  45°.   The  same  submarine  likewise  sighted  11  vessels  at  1816, 
located  at  71°   31'  N,  27°  10'  E,  course  65s.   Thus,  no  doubt,  the 
enemy  had  detected  the  impending  operation  of  our  fleet  force.   The 
Naval  Staff  learned  of  this  by  telephone  through  the  Commanding 
Admiral,  Group  North  and  again  by  telegram  at  2035  and  2103. 

Group  North  further  reported  that  the  enemy  has  begun  seriously  to 
interfere  with  our  radio  communication,  causing  considerable  dis- 
ruption. This  enemy  measure  may  mean  that  the  Admiralty  has  also 
been  informed  about  the  departure  of  our  fleet  forces. 

Thereupon  the  Commanding  Admiral,  Group  North  and  the  Chief  of  Staff, 
Naval  Staff  discussed  the  situation  by  telephone;  they  concluded 


-72- 


CONFIDENTIAL 


5    Jul.    1942 


that  in  view  of  this  unexpected  sighting  report  the  enemy  is  now  in 
a  position  to  bring  up  again  his  heavy  task  force  and  carrier  in 
order  to  engage  our  force  at  the  latest  on  its  way  back  from  the 
mission.   It  had  to  be  assumed  that  the  enemy  would  attack  with  ut- 
most determination  any  such  target  as  the  TIRPITZ  group.   Group 
North  thereupon  advanced  3  possible  courses: 

a.  To  continue  the  operation  according  to  plan  and  take  the 
risk  involved. 

b.  To  continue  the  operation  only  on  a  limited  scale  until 
such  time  when' the  enemy  could  theoretically  cut  off  our  retreat. 

c.  To  turn  back  at  once,  leaving  the  submarines  and  planes 
to  operate  against  the  convoy. 

The  Commanding  Admiral,  Group  North  believes  that,  since  the  enemy 
has  located  our  task  force,  the  operation  must  be  broken  off  if  we 
are  to  carry  out  the  order  that  a  clash  with  the  carrier  must  under 
all  circumstances  be  avoided.   Express  directives  would  be  required 
for  us  to  be  relieved  of  this  restriction.   If  we  adhere  to  this 
order,  our  force  cannot  operate  as  long  as  would  be  required  for  us 
to  attack  the  convoy  because  the  enemy  may  again  bring  up  the 
carrier  group,  cutting  off  the  retreat  of  our  task  force,  or  send  his 
carrier  planes  into  action.   However,  Group  North  requests  full  free- 
dom of  operation  for  approaching  the  convoy.   The  Group  is  of  the 
opinion  that  the  risk  involved  in  the  operation  will  be  in  direct 
proportion  to  the  prospects  of  success  which  it  offers.   The  Opera- 
tions Section  is  also  of  the  opinion  that  in  view  of  the  opportunity 
for  great  strategic  and  operational  successes  which  this  situation 
offers,  the  risk  connected  with  the  continuance  of  the  operation 
must  be  taken.   Further  reason  for  taking  the  risk  is  the  fact  that 
the  carrier  group  seen  speeding  westward  at  0655  in  quadrant  AB  2732, 
i.e.  approximately  400  miles  from  the  North  Cape,  was  not  sighted 
thereafter  in  the  area  patrolled  by  our  air  reconnaissance.   Further- 
more, it  may  safely  be  assumed  that  no  heavy  .vessels  are  in  the 
vicinity  of  the  convoy. 

The  Chief  of  Staff,  Naval  Staff  communicates  to  the  Chief,  Naval 
Staff  the  position  taken  by  Group  North  and  the  Chief,  Operations 
Division,  Naval  Staff.  However,  the  Chief,  Naval  Staff,  conscious  of 
the  responsibility  which  he  owes  the  Fuehrer  for  safeguarding  the 
few  valuable  ships,  orders  the  operation  broken  off. 

The  fact  that  enemy  reconnaissance  detected  our  force  so  early  and 
that  thereby  there  arose  the  possibility  of  its  being  endangered  by 
superior  enemy  carrier  planes  was  decisive  in  breaking  off  the  op- 
eration.  Additional  weight  in  shaping  the  decision  was  exercised  by 
the  fact  that  the  dispersion  of  the  convoy  brought  the  risk  involved 
in  committing  the  fleet  forces  out  of  proportion  to  the  task  which 
could  be  left  to  the  planes  and  submarines. 


-73- 


CONFIDENTIAL 
5  Jul.  1942 

On  the  basis  of  the  directive  received  from  the  Chief,  Naval  Staff, 
Group  North  reported  at  2151  that  the  Commanding  Admiral,  Fleet  re- 
ceived corresponding  orders  and  returned  the  .operational  command  of  the 
submarines  in  the  Arctic  Ocean  to  tne  Admiral,  Arctic  Ocean.   Upon  re- 
turn to  the  shore  waters,  Group  North  ordered  the  transfer  of  the 
TIRPITZ,  HIPPER,  S CHEER,  and  5  destroyers  to  Narvik,  while  the 
LUETZOW,  destroyer  Z  "24",  IHN,  and  the  torpedo  boats  were  ordered  to 
Trondheim,  under  the  command  of  the  Admiral,  Arctic  Ocean. 

b.    Operation  of  Air  Forces  and  Submarine  Against  Convoy  PQ  17: 

The  disappointment  following  the  necessary  discontinuance 
of  the  operation  by  the  surface  forces, which  the  Naval  Staff  had 
counted  on  to  produce  a  great  naval,  strategic  and  political  victory, 
is  alleviated  by  the  great  successes  scored  in  the  attacks  carried 
out  by  the  submarines  and  planes. 

After  evaluating  the  reports  concerning  successes  scored  in  raids  by 
23  He  Ill's  at  about  2000  on  4  Jul.,  the  5th  Air  Force  reports  sink- 
ing 4  ships  with  a  total  tonnage  of  24,000  GRT  and  damaging  5  ships 
totalling  37,000  GRT  so  seriously  that  further  sinkings  are  to  be 
expected.  Furthermore,  6  ships  totalling  29,000  GRT  have  been 
slightly  damaged.   The  enemy  defense  is  said  to«  have  been  so  strong 
that,  unfortunately,  our  attacking  forces  suffered  heavy  lossds. 
The  action  of  5  Jul. «  which  was  staged  with  the  bulk  of  our  forces 
late  in  the  afternoon,  yielded  the  following  results:   69  Ju  88»s  of 
the  30th  Bombardment  Group  sank  8  steamers  totalling  51,000  GRT, 
probably  sank  2  steamers  with  a  total  of  14,000  GRT,  and  damaged  6 
steamers  totalling  34,000  GRT.   There  is  no  final  report  in  as  yet  on 
the  operation  of  the  torpedo  planes.   According  to  the  report  of  the 
5th  Air  Force  our  bombers  found  it  difficult  to  get  at  the  widely 
scattered  convoy.  An  organized  defense  was  no  longer  possible.   The 
actual  figures  on  tonnage  sunk  are  probably  much  higher  than  those 
given.   34  prisoners  were  brought  in  by  the  He  115 's  which  were  in 
the  action. 

The  submarines  operated  against  isolated  ships  and  reported  the  sink- 
ing  of  6  steamers  totalling  47,526  GRT,  so  that  the  total  of  suc- 
cesses scored  by  them  thus  far  amounts  to  8  steamers  with  a  total 
tonnage  of  58,526  GRT.   Of  the  steamers  sunk,  3  had  already  been  dam- 
aged by  our  Air  Force.   This  outstanding  success  against  the  enemy  is 
to  be  explained  by  the  fact  that  our  iair  raids  staged  on  the  even- 
ing of  4  Jul.  had  scattered  the  convoy  so  that  there  was  no  longer 
any  organized  resistance  against  submarines  over  the  wide  area 
covered  by  the  separate  ships.   The  order  to  make  the  cruiser  group 
escorting  the  convoy  the  main  target  was  not  put  into  effect. 

Submarines  U  "251"  and  U  "376"  arrived  in  Harstad.   These  submarines 
as  well  as  submarine  TJ  "408"  are  scheduled  to  leave  again. 


-74- 


CONFIDENTIAL 


5   Jul.    1942 


Submarine  U  "334"  was  strafed  and  bombed  by  a  plane  at  1830,  suffering 
damage  and  becoming  incapable  of  diving.  The  attack  is  reported  to 
have  been  carried  out  by  a  Ju  88,  but  it  may  actually  have  been  a 
Russian  plane.   Despite  being  damaged,  submarine  U  "334"  was  still 
able  to  sink  a  steamer  while  making  her  way  back  to  Kirkenes  and  take 
aboard  the  captain  of  the  vessel.   On  4  Jul.  this  submarine  witnessed 
an  aerial  torpedo  attack  on  a  large  vessel  at  a  distance  of  about  12 
miles.   The  plane  was  seen  to  score  a  direct  hit,  whereupon  the 
vessel  was  rocked  by  an  ammunition  explosion.   Judging  from  the  super- 
structure and  the  mast  of  the  ship  which  capsized  instantly,  there  is 
reason  to  believe  that  it  was  an  American  vessel  (perhaps  a  cruiser). 


IV.   Skagerrak.  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

Lively  activity  of  groups  of  small  Russian  boats  in  the  area 
between  Kronstadt  and  Lavansaari.   7  PT  boats  were  en  route  from 
Kronstadt  to  Lavansaari,  and  2  were  observed  moving  In  the  opposite 
direction. 

2.  Own  Situation: 

Convoy  missions  in  the  area  of  the  Commanding  Admiral,  De- 
fenses, Baltic  Sea,  are  proceeding  according  to  plan.   1  mine  has 
been  removed  from  the  Nyborg-Korsoer  route  by  a  Danish  mine  sweeper. 

In  the  eastern  Baltic  Sea,  the  steamer  ANNA  KATHERINA  PRITZEN  was 
sunk  by  an  enemy  submarine  off  Schwarzort  as  a  result  of  a  torpedo  hit. 
The  steamer  LANGSEE  was  unsuccessfully  attacked  by  a  submarine  off 
Nidden.   Troop  transports  In  the  eastern  Baltic  Sea  have  been  stopped 
and  subchasers  were  sent  into  action.   Merchant  ships  continue  to  op- 
erate.  The  submerged  net  In  the  Gjedser  mine  field  gap  has  been  laid 
out. 

Group  North  requests  that  the  Naval  Staff  recommend  to  the  Air  Force 
that  it  be  guided  by  the  tactical  plans  of  the  Finnish  Command  re- 
garding the  assignment  of  its  Siebel-ferry  group  on  Lake  Ladoga.   (See 
Telegram  0009. ) 


V.   Merchant  Shipping 

Naval  Station,  Baltic  Sea  submitted  a  report  concerning  numerous 
runs  by  Swedish  merchant  vessels  contrary  to  the  directives  of  the 
German  Navy,  which  have  already  resulted  in  the  loss  of  a  Swedish 
ship.   The  Naval  Staff  has  asked  the  Foreign  Office  to  make  represen- 
tations to  the  Swedish  government  in  connection  with  this  situation. 
Further  particulars  in  War  Diary,  Part  C,  Vol.  VIII. 


-75- 


CONFIDENTIAL 
5  Jul.  1942 

VI.   Submarine  Warfare: 

1.  Enemy  Situation: 

According  to  radio  monitoring,  a  mine  field  has  been  laid 
at  the  entrance  to  the  harbor  of  Charleston.   All  naval  and  merchant 
vessels  have  been  given  warning.   Messages  were  intercepted  reporting 
sighting  of  submarines  off  the  American  coast,  along  the  coast  of 
Florida,  in  the  Yucatan  Strait,  at  the  northern  end  of  the  Panama 
Canal,  and  off  Tampico.   In  the  Mediterranean  Sea  submarines  were 
s  ight  e  d  off  Jaffa  . 

2.  Own  Situation; 

For  operations  against  convoy  PQ,  17  see  Situation,  Arctic 
Ocean,   Particulars  in  Supplement  to  Submarine  Situation  in  War  Diary, 
Part  B,  Vol.  IV. 

Submarine  U  "458"  reports  sinking  the  steamer  MOSFRUIT  (2,700  GRT) 
off  the  American  coast  on  30  Jun.   Submarine  U  "161"  penetrated  into 
the  harbor  of  Puerto  Lixnon  on  the  night  of  3  Jul.  and  sank  the 
steamer  SAN  PABLO  lying  at  the  pier  (3,305  GRT). 

Since  the  departure  of  the  supply  ship  UCKERMARCK  from  western  France 
during  the  new  moon  quarter  of  the  month  of  July  has  been  cancelled, 
the  Naval  Staff  opens  route  "Anton"  between  10°  N  and  5°  S  to  sub- 
marines effective  immediately  until  25  Aug.  0000.   Between  the 
equator  and  5°  S  the  eastern  boundary  is  set  at  20°  W.   The  Commanding 
Admiral,  Submarines  is  instructed  to  that  effect* 


VII.  Aerial  Warfare 

1.   British  Isles  and  Vicinity: 

For  reconnaissance  findings  see  Situation,  Arctic  Ocean. 
In  "the  night  of  5  Jul.,  8  planes  were  sent  out  to  lay  mines  in  the 
Bristol  Channel. 

2«   Mediterranean  Theater: 

The  Commanding  General  Armed  Forces,  South  sent  his  forces 
into  action  against  Malta  and  in  the  area  of  the  El  Alamein  positions. 
No  detailed  reports  have  as  yet  been  received. 

In  the  night  of  4  Jul.  the  Suez  Canal  was  mined  by  8  planes. 

3.   Eastern  Front : 

On  4  Jul.  a  PT  boat  was  sunk  in  the  eastern  area  of  th©  Sea  bf 
Azov,  and  another  one  damaged,  probably  by  the  Croatian  air  force. 


-76- 


CONFIDENTIAL 
5  Jul.  1942 

On  the  same  day  in  the  Gulf  of  Finland  an  enemy  mine  sweeper  and  a 
2,000  ton  steamer  were  damaged  during  an  air  raid. 

The  attacking  armies  all  along  the  Army  fronts  are  receiving  very 
strong  support.   For  operation  against  convoy  PQ,  17  see  Situation, 
Arctic  Ocean. 


VIII.  Warfare  in  the  Mediterranean  and  in  the  Black  Sea: 

1.   Enemy  Situation; 

In  the  forenoon  the  cruiser  CHARYBDIS  again  put  into 
Gibraltar.   The  Italian  Navy  reported  sighting  of  a  submarine  80 
miles  east  of  Sfax  and  90  miles  east  of  Cape  Colonna. 

In  the  area  north  of  the  Nile  Delta  and  between  Port  Said  and  Haifa 
air  reconnaissance  observed  considerable  convoy  traffic.   Some  110 
miles  north  of  Sidi  Barani  a  destroyer  has  been  sighted,  pursuing  a 
southeasterly  course.   Since  her  departure  from  Alexandria  the  QUEEN 
ELIZABETH  has  not  been  sighted  by  air  reconnaissance.   5  submarines 
entered  the  port  of  Haifa  in  the  forenoon  of  5  Jul.   In  the  morning 
of  4  Jul.  the  following  ships  were  anchored  in  Haifa:   1  cruiser, 
1  monitor,  5  destroyers  (2  of  the  latter  Greek),  2  Greek  torpedo 
boats,  2  patrol  vessels,  about  47  steamers  with  a  total  tonnage  of 
220,000  GRT,  and  9  tankers  totalling  45,000  GRT,  as  well  as  2 
passenger  ships  with  a  combined  tonnage  of  9,000  GRT. 

2.  Own  Situation: 

In  the  night  of  4  Jul.  the  enemy  staged  an  air  raid  on 
Benghazi,  without  inflicting  damage. 

The  3rd  PT  Boat  Flotilla  was  sent  into  action  on  the  same  night  in  the 
area  north  and  northwest  of  Alexandria.   No.  contact  with  the  enemy 
has  been  reported. 

3.  Transport  of  Supplies  to  North  Africa: 

The  convoy  of  the  31X10,  ANKARA  and  M0NVIS0  has  finally 
reached  Benghazi  in  the  evening  of  4  Jul.  after  having  undergone 
another  unsuccessful  air  attack.   The  steamer  PETRARCA  and  the  tug 
MAX  BEHREND,  towing  an  auxiliary  sailing  vessel  which  carries  aboard 
cargo  from  the  SAV0NA  arrived  at  Tobruk.   The  total  cargo  unloaded 
at  Tobruk  on  3  Jul.  is  270  tons.   On  4  Jul.  320  tons  were  unloaded; 
unloading  is  hampered  by  a  shortage  of  trucks.   The  cargo  discharged 
on  4  Jul.  at  Marsa  Matruh  amounted  to  290  tons. 


-77- 


CONFIDENTIAL 
5  Jul.  1942 

Transport  subr.iarirtes  are  proceeding  according  to  plan. 

The  Chief  ©f  Staff,  German  Naval  Command,  Italy  notified  the  Command- 
ing Admiral  that  the  only  way  in  which  the  Italians  could  be  brought 
to  institute  direct  routing  of  ships  to  Tobr-uk  would  be  by  way  of  a 
proposal  directed  by  the  Commanding  General  Armed  Forces,  South  to  the 
Italian  High  Command.   The  constant  urging  of  German  Naval  Command, 
Italy  met  with  refusal  thus  far,  on  the  grounds  that  the  persons  in 
authority  were  in  Africa  and  that  information  concerning  conditions 
in  local  ports  Is  incomplete. 

4.    Area  Naval  Group  South; 

Aegean  Sea: 

On  4  Jul.  an  enemy  submarine  was  sighted  by  the  air  escort' 
of  the  Crete  Squadron  and  was  attacked  unsuccessfully.   The  20th 
Crete  Squadron  entered  the  port  of  Candia  on  5  Jul.   Three  steamers 
of  the  Citta  class  as  well  as  the  steamer  DELOF  and  the  necessary 
escort  forces,  all  intended  for  transport  of  supplies  to  North 
Africa,  are  on  1  hour  alert  beginning  at  1800. 

Black  Sea; 

Enemy  Situation; 

According  to  radio  monitoring,  continued  submarine  activity 
and  movements  of  small  vessels  were  noted. 

Own  Situation; 

In  the  night  of  3  Jul.  a  landing  attempt  by  small  motor 
boats  in  the  Lapsi  Bay,  west  of  Cape  Sarich,  was  smashed.   The  motor 
boats  were  evidently  carrying  refugees  from  Sevastopol.   The  ship- 
yards at  Sevastopol  are  completely  destroyed,  according  to  reports 
up  to  now.   Convoy  missions  are  being  carried  out  in  accordance  with 
plans.   According  to  a  report  of  Group  South,  90,000  tons  of  supplies 
have  been  delivered  to  Russia  by  sea  from  20  Apr.  to  3  Jul.  and 
5,000  tons  have  been  brought  back  from  there.   Successful  enemy 
count erme a sure s  caused  an  interruption  of  these  transports  for  a 
period  of  18  days  in  the  month  -of  June.   As  a  result  of  mines,  2  of 
our  naval  barges  and  the  only  mine-exploding  vessel  operating  in  the 
Black  Sea  were  lost  in  the  course  of  these  transports,  while  2 
Rumanian  supply  steamers  or  29$  of  the  total  available  shipping 
tonnage  were  sunk  by  submarine  torpedoes  off  Odessa.  Enemy  assaults 
on  our  supply  routes  continue  by  means  of  submarine -laicl  mines  and 
air  raids.   There  is  no  evidence  of  enemy  surface  vessels  being  em- 
ployed in  these  actions. 

An  urgent  request  by  the  Admiral,  Black  Sea  to  order  outstanding  ex- 
perts on  aerial  mines  for  temporary  assignment  to  Nikolayev  is 
approved  and  forwarded  by  Group  South.  (See  Telegram  1325.) 


-78- 


CONFIDENTIAL 
5  Jul.  1942 

For  proposal  of  Group  South  that  the  part  played  by  the  1st  PT 
Boat  Flotilla  in  the  final  battles  at  Sevastopol  be  made  known  in  the 
communique  of  the  Armed  Forces  Eigh  Command  see  Telegram  1710. 
Further  action  is  to  be  taken  by  the  Executive  Office  of  the  Commander 
in  Chief,  Navy. 


IX.   Situation  East  Asia 
Nothing  to  report. 


X.   Army  Situation: 

1.  Russian  Front: 

Southern  Army  Group : 

Operations  of  the  6th  Army  and  of  the  Von  Weichs  Group  are 
proceeding  according  to  plan.   The  troops  reached  Sosna,  crossed  the 
Potudan  and  advanced  as  far  as  Krasnolipetskoye.   West  and  southwest 
of  Voronezh  the  enemy  is  offering  resistance  from  fortified  positions, 
These  positions  are  manned  for  the  most  part  by  hard-fighting  labor 
militia.   Heavy  troop  movements  in  a  southerly  direction  have  been 
observed  on  the  Yelets  road  and  along  the  rail  lines  running  from  the 
east.   The  railroad  bridge  to  the  west  of  Voronezh  is  the  objective 
of  some  of  the  hardest  fighting.   Zemlyansk  has  been  taken.   The 
enemy  is  offering  tough  resistance  on  the  Uritskoye-Livny  sector. 

Central  Army  Group: 

South  of  Novosil  a  number  of  enemy  assaults  have  been  re- 
pulsed.  In 'the  night  of  4  Jul.  the  enemy s taged  heavy  air  raids  on 
Orel  and  on  our  positions  north  of  the  city.   On  the  Roslavl- 
Bryansk  road  pitched  battles  developed  against  heavy  partisan  de- 
tachments.  The  19th  Panzer  Division  is  being  brought  down  from  the 
north.   South  of  Mostovaya  the  1st  Panzer  Division  succeeded  in 
effecting  a  junction  with  our  forces  driving  forward  from  Byeloi, 
thus  closing  a  large  pocket.   The  enemy  supply  route  to  the  east  of 
this  position  has  been  blocked. 

Northern  Army  Group : 

Enemy  attacks  south  of  Demyansk  have  been  repelled.   Our 
sallies  south  of  Staraya  Russa  have  also  been  halted  by  enemy  counter- 
pressure  and  had  little  success. 

2.  Finnish  and  Norwegian  Front: 

Situation  unchanged.   Forest  fires  on  both  sides. 


-79- 


CONFIDENTIAL 
5  Jul.  1942 

3.   North  Africa: 

According  to  Army  General  Staff,  Intelligence  Division.  '.Vest 
troops  and  concentration  of  materiel  near  El  Kantara  (Suez  Canal; 
were  reported  at  the  end  of  June.   The  8th  Indian  Division  has  just 
been  transferred  from  Iraq  and  Iran  to  the  Egyptian  front.   Several 
reports  have  come  in  stating  that  the  9th  Australian  Division  is 
being  brought  up  from  Palestine  and  Syria.   The   Division  is  probably 
assigned,  along  with  parts  of  the  8th  Army,  to  the  defense  of  the 
Suez  Canal.   Fortifications  are  alleged  to  have  been  erected  along 
the  eastern  shore  of  the  Canal.   Evacuation  of  Cairo  is  said  to  have 
begun  on  1  Jul.   The  enemy  is  also  said  to  have  committed  units  of 
the  50th  British  and  5th  Indian  Infantry  Divisions  for  the  reinforce- 
ment of  the  El  Alamein  defense  positions. 

Except  for  artillery  and  patrol  activity  the  enemy  has  adopted  a 
waiting  attitude  on  the  El  Alamein  front.   A  heavy  concentration  of 
motorized  vehicles  has  been  observed  to  the  east  of  that  position. 
It  is  likely  that  new  enemy  units  are  being  brought  up.   During  a 
disengaging  movement  of  the  German  Panzer  Division  the  enemy  was 
able  to  effect  slight  local  penetrations.   Very  intense  aerial  acti- 
vity on  both  sides. 


i 


-80- 


CONFIDENTIAL 
6  Jul.  1942 

Items  of  Political  Importance 

Great  Britain: 

The  periodical  Nineteenth  Century  offers  a  few  significant  reflec- 
tions on  what  Britain's  attitude  is  going  to-be  in  the  post-war 
period,  listing  among  its  objectives  the  prevention  of  a  third  world 
war,  restoration  of  the  European  balance  of  power,  which  necessitates 
above  all  the  destruction  of  German  uni:;  ,  ?nd  the  reestablishment  of 
the  small  nations.   The  idea  which  has  1     championed  in  Britain 
time  and  again,  and  according  to  which  Russia  is  to  gain  the  ascend- 
ancy in  Eastern  Europe  while  Germany  is     exercise  influence  in  , 
Western  Europe,  must  be  utterly  rejected.   j-ermany  must  be  ruled  out 
as  a  military  and  political  factor.   Thus  Russia  could  have  no 
reason  to  seek  incorporation  of  the  Balkan  countries,  whose  indepen- 
dent existence  is -vital  from  the  British  standpoint.   Britain  is  not 
in  this  war  to  win  a  Russian  or  an  American  but  a  British  victory. 

It  is  useful  occasionally  to  determine  from  such  de- 
liberations on  th8  part  of  the  enemy  what  Germany  has 
at  stake  in  this  war. 

South  Africa; 

In  the  opinion  of  the  President  of  the  Senate,  British  supremacy  in 
the  Mediterranean  has  sustained  a  heavy  blow  with  the  loss  of  Tobruk, 
since  this  permits  seizure  of  the  Suez  Canal  with  all  the  conse- 
quences entailed.   South  Africa,  the  President  stated,  is  seriously 
affected  by  this  new  development.   Further  details  in  Political 
Review  No.  155,  Paragraph  1, 

India: 

The  reports  on  hand  confirm  the  impression  that  Gandhi's  present 
position,which  admits  the  continued  presence  of  British  troops  as  a 
defensive  measure  against  a  possible  Japanese  attack  and  as  a  means 
of  lending  assistance  to  China,  relieves  the  tenseness  of  the 
Indian  question  as  far  as  the  British  are  concerned. 

Egjp_t: 

Reports  concerning  the  domestic  situation  in  Egypt  have  come  in  from 
various  sources..  These  reports  indicate  that  King  Faruk  has  been 
brought  into  line  to  a  greater  extent.   The  recall  of  the  former 
Prime  Minister  Maher  who  had  been  driven  out  by  the  British  has  had 
a  good  deal  to  do  with  it. 

Turkey: 

According  to  press  reports,  the  prccess  of  reorientation  of  Turkish 
loma.cy  is  continuing.   It  is  evident  that  the  Turkish  government 
is  preparing  for  the  future  in  order  to  be  able  to  carry  out  a 


-81- 


CONFIDENTIAL 
6  Jul.  1942 

reorientation  of  the  cabinet  and  thus  of  Turkish  diplomacy  in  the 
event  of  a  change  in  Turkey's  political  attitude. 

Syr-i-a't* 

As  a  result  of  the  withdrawal  to  Egypt  of  a  large  number  of  British 
units  stationed  in  Palestine,  Lebanon,  Syria  and  Iraq,  the  arming  of 
the  Jews  and  the  formation  of  independent  Jewish  units,  hitherto  not 
permitted,  are  said  ~~*v  to  have  been  initiated. 

U.S.A.: 

According  to  American  reports,  the  agents  who  were  taken  in  sub- 
marines to  the  United  States  by  our  Intelligence  Service  have  been 
apprehended.   The  8  defendants  who  are  doomed  to  -receive  the  death 
penalty  will  be  tried  by  a  military  commission  in  Washington. 

Argentina: 

Although  there  are  no  binding  agreements  for  joint  action  on  the  part  { 

of  Argentina  and  Chile  with  regard  to  their  relations  with  the  Axis 

powers,  it  appears  from  a  statement  by  the  Argentine  Foreign 

Minister  that  it  is  planned  to  discuss  such  an  agreement  in  the  event 

that  the  problem  of  severing  relations  with  the  Axis  powers  should 

become  acute  in  one  of  the  two  countries. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.    Operation  "Roesselsprung" : 

The  Chief,  Naval  Staff  explained  that  he  ordered  the  operation 
to  be  broken  off  because,  in  view  of  the  present  favorable  overall 
situation,  he  wished  to  avoid  at  all  cost  a  possible  setback  to  the 
Navy  such  as  the  loss  of  a  heavy  ship  or  damage  thereto  would 
represent.   Furthermore,  as  the  situation  developed  in  connection 
v/ith  convoy  PQ  17  the  commitment  of  the  heavy  ships  could  only  have 
brought  results  not  at  all  commensurable  with  such  losses  or  damages. 

The  Chief  of  Staff,  Naval  Staff  points  out  that  in  view  of  this  sit- 
uation the  question  will  have  to  be  considered  whether  it  would  be 
advisable  in  the  future  to  abandon  operations  against  the  heavily 
protected  eastbound  convoys  in  favor  of  attacks  by  our  fleet  forces 
against  westbound  convoys  which  carry  no  cargo  and  are  not  so 
heavily  protected.   The  Chief,  Naval  Staff  agrees,  asserting  that  the 
tactic  of  striking  at  the  enemy  v/ith  our  fleet  forces  at  the  very 
last  moment  from  the  Alta  Fjord  in  an  easterly  or  a  northeasterly 
direction  is  not  only  feasible,  but  one  that  offers  the  best 
prospects.   In  this  case,  even  the  threat  from  the  Russian  air 
force  can  be  put  up  with. 


-82- 


CONFIDENTIAL 
6  Jul.  1942 

In  accordance  with  the  proposal  of  the  Naval  Staff,  the  Chief,  Naval 
Staff  expresses  his  agreement  with  the  disposition  of  the  fleet 
forces  suggested  by  Group-  North. 

II.  The  Chief  of  Operations  Branch,  Operations  Division,  Naval 
Staff  reports  that  the  "Thusnelda"  mining  operation  (mine  field  5a 
of  the  West  Wall  replacement)  has  been  started. 

On  the  basis  of  accounts  on  hand,  the  Chief  of  Operations  Branch, 
Naval  Staff,  Operations  Division  reports  further  on  the  damages 
sustained  by  the  LUETZOW  and  3  destroyers. 

III.  The  Chief  of  Communications  Division,  Naval  Staff  reports  on 
the  interference  with  our  radio  communications  effected  by  the 
enemy  for  the  first  time  upon  his  detection  of  our  fleet  forces  by 
submarines.   This  interference  was  so  effective  that  we  were  com- 
pelled to  switch  to  another  frequency.  We  were  thus  able,  although 
with  some  difficulty,  to  use  our  radio  communication.   The  direct 
communication  between  our  air  and  naval  forces  engaged  in  operation 
"Roesselsprung"  worked  without  a  flaw.   The  only  fault  found  was 
that  the  communication  channel  was  too  heavily  loaded. 

IV.  The  Chief,  Quartermaster  Division,  Naval  Staff  reports  that  the 
GNEISENAU  was  deactivated  on  1  Jul.  in  accordance  with  orders.   It  is 
reported  that  the  completion  of  the  PRINZ  EUGEN  will  be  delayed  un- 
til 31  Oct;  because  the  800  additional  shipyard  v/orkers  requested 
have  actually  not  been  made  available.   That  deadline  could  be  met 
only  by  drawing  on  the  workers  engaged  in  the  construction  of  new 
destroyers  and  type  XB  mine-laying  submarines. 

The  Chief,  Quartermaster  Division,  Naval  Staff  further  reports  that 
Italy  received  a  total  of  60,000  tons  of  fuel  oil  from  Rumania  dur- 
ing the  month  of  June  and  may  expect  to  receive  the  same  quantity 
during  the  coming  months.   Thus  the  Italian  Navy  will  be  provided 
with  the  full  quota  of  its  requirements. 

In  a  Very  Restricted  Circle? 

V.  The  Chief  of  Operations  Branch,  Naval  Staff,  Operations  Division 
reports  on  a  message  sent  on  4  Jul.  by  the  German  General  attached 
to  the  Italian  Armed  Forces  Headquarters  to  the  Armed  Forces  High 
Command,  as  per  copy  in  War  Diary  4  Jul.  Special  Items. 

VI.  The  Chief  of  Operations  Branch,  Naval  Staff,  Operations 
Division  gives  an  account  of  the  survey  presented  by  the  Chief  of 
Staff,  Naval  Staff  as  per  directive  of  the  Commander  in  Chief,  Navy 
regarding  the  loss  of  submarine  U  "557"  as  a  result  of  a  collision 
with  the  Italian  torpedo  boat  0RI0NE.  The  results  of  the  investi- 
gation do  not  warrant  instituting  preliminary  court-martial  pro- 
ceedings in  the  case.   The  Chief,  Naval  ^taff  approves  the  report 
and  considers  the  matter  closed. 


-83- 


CONFIDENTIAL 


6  Jul.  1942 


Special  Items: 

The  Naval  Attache  at  Istanbul  reports  on  2  Jul.  concerning  his  con- 
ference with  the  Japanese  Naval  Attache.   The  latter  stated  that 
additional  Japanese  submarines  would  be  dispatched  to  the  Gulf  of 
Aden  provided  that  we  are  actually  aiming  for  the  Suez  Canal  at  this 
time  and  that  our  offensive  would  not  be  halted.   If,  however,  our 
immediate  goal  consists  only  in  the  creation  of  favorable  jumping - 
off  positions  for  a  future  offensive,  then  Japan  could  not  make 
available  her  few  submarines  which  are  urgently  needed  in  other 
theaters.   The  report  confirms  the  fact  that  the  Japanese  Navy  has 
issued  uniform  instructions  to  all  of  its  representatives,  since  the 
same  opinion  had  been  expressed  to  the  Naval  Staff  by  the  Japanese 
Naval  Attaches  at  Rome  and  Berlin. 


Situation  6  Jul.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation; 

South  Atlantic: 

According  to  radio  monitoring,  a  Greek  steamer  supposedly 
sighted  a  submarine  420  miles  west  of  .St.  Helena.   This  report  is 
very  doubtful. 

2  vessels  and  8  destroyers  arrived  at  BUenos  Aires  on  3  Jul. 

According  to  an  allegedly  reliable  intelligence  report,  the  route 
used  by  Great  Britain  and  the  U.S.  for  the  transport  of  heavy  war 
materiel  runs  through  Massabi  and  Pointe  Noire,  Congo,  up  toward 
Leopoldville  and  Brazzaville.   The  materiel  is  then  floated  up  the 
Nile  on  lighters,  continuing  from  Itumburi  to  Aketi  and  thence  by 
rail  as  far  as  Redjaf  on  the  Nile,  Thereupon,  it  is  transported  by  a 
Nile  steamer  as  far  as  Khartum. 


2. 


Own  Situation: 


Ship  "23"  was  informed  by  Radiogram  2032  that  the 
SCHLIEMANN  has  been  ordered  to  report  daily  at  a  specified  rendezvous 
point  beginning  15  Jul. 

Prize  ship  III  is  being  informed  that  the  Naval  Staff  will  notify 
Tokyo  of  her  arrival  (see  Radiogram  1012). 

Ship  "10"  receives  renewed  confirmation  to  the  effect  that  the  Naval 
Staff  assumes  prize  ship  III  to  be  the  MADRONO  (see  Radiogram  1506). 


-84- 


CONFIDENTIAL 
6  Jul.  1942 

For  report  concerning  enemy  situation  and  the  course  the  exchange 
ship  GRIPSHOLM  will  take  on  her  way  back  from  Lourenco  Marquez  to  New 
York  see  Radiograms  1059  and  2350. 


II.   Situation  West  Area 

1.  Enemy  Situation; 

t 

According  to  air  reconnaissance  and  radio  monitoring  the 
increase  in  the  two-way  shipping  traffic  from  the  Thames  area  into  the 
Channel  ports,  noted  during  the  second  half  of  May,  was  maintained  at 
the  same  rate  throughput  June.   Whereas  the  number  of  convoys  between 
the  Bristol  Channel  and  the  Portsmouth  area  has  not  risen  above 
normal,  this  type  of  activity  between  the  Thames  and  the  Portsmouth 
areas  has  been  stepped  up  threefold  as  compared  with  normal  traffic. 
No  information  has  been  obtained  as  to  the  source  of  the  additional 
tonnage.   Nor  is  there  anything  that  would  disclose  a  definite  reason 
for  the  increased  shipping  activity  in  this  coastal  area  (unless  it 
means  preparation  for  an  invasion  along  the  Channel  coast?) 

■ 

According  to  a  report  of  the  Military  Attache  at  Ankara  originating  in 
presumably  well  informed  political  circles,  a  large-scale  invasion  by 
the  British  is  to  take  place  in  Holland  and  at  2  points  in  France 
during  the  week  of  12  Jul.   (Continuation  of  the  war  of  nerves.) 

During  the  forenoon  of  6  Jul.,  air  reconnaissance  located  50  assault 
landing  boats  between  Start  Point  and  Salcombe. 

The  convoy  coming  from  Gibraltar  was  observed  in  its  original  strength 
in  the  morning  some  480  miles  west  southwest  of  Brest  on  75°  course. 

2.  Own  Situation : 

A  brief  engagement  took  place  off  Cape  Blanc  Nez  at  0125 
between  our  escort  vessels  (12th  Motor  Mine  Sweeper  Flotilla)  and  enemy 
PT  boats.   No  further  details  have  been  received. 

During  the  night  of  6  Jul.  8  boats  of  the  2nd  PT  Boat  Flotilla  were 
dispatched  on  torpedoing  missions. 


III.  North  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea : 

Mining  mission  "Thusnelda"  was  started  before  noon  by  the 

ROLAND. 

Otherwise  nothing  to  report. 


-85- 


CONFIDENTIAL 


6  Jul.  1942 


2.  Norway: 

On  3  Jul.  limited  enemy  air  activity  over  Petsamo,  on  5 
Jul.  in  the  area  of  Trondheim  and  over  the  coastal  islands  between 
Trondheim  and  Aalesund.   In  the  early  morning  of  6  Jul.  air 
reconnaissance  operated  over  Aasen  Fjord. 

The  damaged  destroyers  CALSTER,  RIEDEL  and  LODY  arrived  in  Trondheim. 

For  report  from  Group  North  on  the  inspection  of  the  LUETZOW,  see 
Telegram  1045.   Estimated  time  for  repairs  is  3  months. 

Group  North  believes  that  it  would  be  desirable  for  the  LUETZOW  to 
undergo  repairs  at  Trondheim  while  being  kept  in  readiness  for 
action  in  urgent  cases.   For  the  time  being,  the  Naval  Construction 
Division  is  to  handle  further  measures. 

3.  Arctic  Ocean: 

Enemy  Situation: 

In  the  morning,  convoy  PQ,  17  was  still  scattered  over  a 
wide  area  east  of  40°  E.   At  0800,  air  reconnaissance  sighted  a 
group  of  7  steamers  in  quadrant  AC  3323.   Further  losses  occured  as  a 
result  of  air  raids  in  the  course  of  the  day.   At  1635  a  cari\ier- 
based  plane  was  sighted  by  our  submarine  in  quadrant  AB  9326.   It  is 
possible  that  this  wheeled  plane  was  catapulted  from  a  steamer. 

The  testimony  of  the  captured  captain  of  the  steamer  CARLTON  which 
was  sunk  by  a  submarine  on  5  Jul.  confirms  that  the  strength  of  con- 
voy PQ  17  is  36  to  39  ships.   The  convoy  left  Reykjavik  on  28  Jun. 
Its  escort  protection  allegedly  consists  of  15  to  20  destroyers  and 
patrol  vessels,  2  anti-aircraft  destroyers,  as  well  as  the  U.S. 
cruisers  TUSCALOOSA,  WICHITA,  and  INDIANAPOLIS  in  addition  to  1 
British  cruiser,  probably  of  the  London  class.   The  convoy  was  dis- 
persed as  a  result  of  a  heavy  air  raid  on  the  evening  of  4  Jul.   The 
commander  of  the  convoy  issued  an  order  to  scatter  and  make  for  their 
respective  destinations  independently.   No  more  heavy  cruisers  have 
been  sighted  since  4  Jul.   The  captain  feared  that  the  German  ships 
TIRPITZ,  GNEISENAU  and  PRINZ  EUGEN  had  put  to  sea  and  that  the 
cruisers  were  operating  against  them.   The  captain  knev;  nothing 
about  the  presence  of  heavy  British  forces  at  sea.   The  convoy,  he 
stated,  had  no  other  anti-aircraft  defenses  outside  of  the  ship 
planes.   The  prisoner  had  witnessed  the  sinking  of  2  American,  1 
British  and  1  Russian  ship  by  aerial  torpedoes  and  bombs  on  4  and  5 
Jul.   The  cargo  aboard  the  CARLTON  consisted  of  six  28-ton  tanks, 
ten  13-ton  tanks  and  14  sealed  crates  weighing  20  tons  each,  as  well 
as  200  tons  of  explosives  for  the  manufacture  of  powder,  and  2  00 
tons  of  ammunition.   This  cargo  was  loaded  in  Philadelphia  where  the 
departure  took  place  on  13  Mar. 

Further  data  as  per  report  of  the  5th  Air  Force  are  to  be  found  in 
the  file  "Roesselsprung". 


-86- 


J 


CONFIDENTIAL 
6  Jul.  1942 

Own  Situation; 

a.    Operation  of  Submarines  and  Planes  against  Convoy 
PQ,  17: 

On  the  morning  of  6  Jul.  our  submarines  had  no  contact  with 
the  enemy.   They  had  received  an  order  from  the  Admiral,  Arctic  Ocean 
to  patrol  the  area  between  42°  and  48°  E  on  the  lookout  for  ships 
heading  for  Archangel.  After  position  reports  as  of  0800  had  come  in 
the  submarines  were  dispatched  to  quadrant  AC  3523-. 

Submarines  U  "376"  and  U  "408"  left  Narvik  on  the  night  of  5' Jul. 
according  to  plan.   Submarine  U  "456"  and  U  "354"  were  en  route  to 
Kirkenes  where  they  were  expected  to  arrive  in  the  evening.   Sub- 
marine U  "657"  was  compelled  to  start  back  for  Narvik  in  the  fore- 
noon, an  inner  fuel  tank  having  sprung  a  leak.   With  the  sinking  of 
a  ninth  steamer  the  total  of  successes  scored  by  our  submarines  rose 
to  69,126  GRT. 

The  5th  Air  Force  Command  reported  the  sinking  of  19  steamers  total- 
ling 122,000  GRT  and  a  heavy  U.S.  cruiser  as  the  results  of  its 
operations  against  convoy  PQ,  17  through  6  Jul.   The  operation  against 
some   7  remaining  ships  is  being  continued. 

Thus  was  achieved  one  of  the  most  outstanding  successes 
to  be  scored  at  one  blow  against  enemy  supply  lines, 
through  the  most  exemplary  cooperation  between  Air 
Force  and  submarines.  A  convoy  carrying  a  full  cargo 
of  war  materiel  from  America,  some  of  which  had  been 
under  way  many  months,  was  almost  completely  annihil- 
ated inspite  of  very  strong  escort,  just  as  it  was 
approaching  its  destination.   Thus  a  severe  blow  has 
been  dealt  to  Russia's  armament  and  a  serious  breach 
made  in  enemy  shipping  tonnage.   The  strategic, 
physical  and  moral  effect  of  this  blow  is  similar  to 
that  of  a  lost  battle.  Aided  by  circumstances,  the 
Air  Force  and  the  submarines,  in  5  days  of  purposeful 
and  unerring  action  achieved  what  was  to  have  been 
accomplished  by  the  attack  of  the  fleet  forces  on 
PQ  17  in  operation  "Roesselsprung". 

For  the  report  of  the  5th  Air  Force  concerning  the  air  attack  against 
submarine  U  "334",  see  telegram  from  Group  North.  Copy  as  per  l/Skl. 
16421/42  Gkdo-o.  in  file  "Roesselsprung". 

b.   Operation  "Roesselsprung": 

At  0330  our  task  force  returned  to  the  island  waters 
via  Svaerholthavet  and  set  out  en  route  to  Narvik  at  1800  according 
to  plan,  after  a  short  stop  at  Alta  Fjord  for  replenishment.  The 
force  was  compelled  to  drop  anchor  at  Lang  Fjord  near  Arnoe,  at 
2245,  owing  to  fog. 


-87- 


CONFIDENTIAL 
6  Jul.  1942 

IV.   Skap;errak,  Baltic  Sea  Entrances s  Baltic  Sea 

la   Enemy  Situation; 

According  to  radio  monitoring,  1  submarine  escort  and  9 
submarines  were  located  up  to  the  morning  of  6  Jul.   The  usual 
patrol  activity  was  noted  in  the  Bay  of  Kronstadt  and  in  the  waters 
around  the  islands  of  Lavansaari  and  Seiskari.   Eighty  one  planes 
were  observed  during  the  night  of  4  Jul.  and  93  during  the  night  of 
5  Jul. s  all  flying  between  the  Kronstadt  area  and  Lavansaari. 

According  to  a  Finnish  report,  a  few  additional .submarines  have  pre- 
sumably been  lost  at  the  southern  end  of  the  Rukarjaervin  "Jota" 
mine  field.  This  would  bring  the  number  of  established  submarine  - 
sinkings  to  a  total  of  6  (4  in  the  "Seeigel"  mine  field,  1  by  the 
Finnish  air  force,  and  1  by  mine  sweeper  "16"). 

According  to  reports  from  our  agent,  the  Russian  submarines  in  the 
Baltic  Sea  are  said  to  be  under  the  command  of  British  officers. 
(Similar  unsupported  claims  were  current  in  1941  and  had  already 
been  heard  during  the  First  World  War.) 

2.   Own  Situation: 

Three  mines  have  been  cleared  by  a  mine-detonating  vessel 
off  Helsingoer  at  the  Baltic  Sea  Entrances.   Otherwise  no  not dwortihy 
occurrences  in  that  area.  Transports  are  proceeding  according  tto 
plan. 

According  to  the  daily  situation  report  of  the  Commanding  Admiral, 
Baltic  Countries,  mine  field  "Nashorn"  X  has  not  yet  been  laid. 
Submarine  chase  off  Memel  was  continued.  Bad  weather  interfered 
with  mine  sweeping. 


V.   Merchant  Shipping 

Reports  concerning  shipment  of  ore  from  Lulea  from  27  May  to  13  Jun.; 
increase  of  British  war  risk  insurance  rates;  number  of  ships  lying 
in  Gibraltar  as  well  as  traffic  in  the  harbor  during  the  month  of 
June;  decrease  in  the  number  of  ships  anchored  in  Alexandria  at  the 
beginning  of  July,  etc.  are  contained  in  Brief  Report  No.  20/42 
of  the  Naval  Intelligence  Division,  Foreign  Merchant  Marine  Branch. 


VI.   Submarine  Warfare 

1.   Enemy  Situation; 

Nothing  to   report. 


-88- 


) 


D 


CONFIDENTIAL 
6  Jul*  1942 

2.   Own  Situation; 

For  a  report  on  operation  against  convoy  PQ  17,  see  Own 
Situation,  Arctic  Ocean.  For  details  on  the  submarine  situation  see 
Supplement  on  Submarine  Situation  in  War  Diary,  Part  B,  Vol.  IV. 

No  reports  of  successful  operations  were  received  today  from  the 
North  Atlantic  and  from  the  American  coast. 

Submarine  U  "375"  in  the  Mediterranean  attacked  a  convoy  off  the 

coaso  of  Palestine  and  sent  2  torpedoes  into  a  1,500  GRT  steamer. 

The  sinking  of  this  ship  could  not  be  observed  since  the  submarine 
was  pursued  with  depth  charges. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

During  the  night  of  5  Jul.,  8  planes  scattered  aerial  mines 
in  Pembroke.   For  reconnaissance  findings  see  Situation  West  Area. 
On  the  night  of  6  Jul.  only  2  enemy  planes  flew  over  the  coastal 
area  from  Borkum  to  Heligoland  on  what  appeared  to  be  a  mining  mission. 
Thirty-four  flying  missions  were  reported  from  western  France,  the 
objective  being  presumably  to  mine  the  Gironde  estuary. 

2.  Mediterranean  Theater: 

In  the  night  of  5  Jul.  a  heavy  raid  was  staged  on  La 
Venezia  airfield  on  Malta.  A  nuisance  raid  on  the  radar  installations 
effectively  hampered  enemy  night  fighters.  Raids  continued  during 
the  day  on  the  Lucca  airfield.  Photographic  reconnaissance  dis- 
closed 17  enemy  planes  destroyed  on  the  ground  since  4  Jul. 

Twelve  thousand  enemy  motorized  vehicles  were  observed  in  the 
Alexandria  area.  The  mining  of  the  Suez  Canal  was  continued  during 
the  night  of  5  Jul.   Aerial  torpedoes  LT  350  were  employed  on  this 
occasion  for  the  first  time,  Their  effect  could  not  be  observed 
owing  to  strong  enemy  defense. 

3.  Eastern  Front; 

Heavy  support  was  lent  to  army  operations. 
For  operation  against  convoy  PQ,  17  see  Situation  Arctie  Ocean. 

4.  Special  Items; 

a.   Mosquito  planes  were  observed  during  the  Plensburg 
raid  on  2  Jul.  Since  these  planes  are  built  chiefly  of  wood  they 
are  not  so  easily  detected  by  radar.  Nowhere  else,  except  over 
Cologne,  has  this  type  of  plane  been  spotted  before.  For  further 
details  see  daily  situation  report. 


-89- 


CONFIDH.'TIAI 
.  1942 


b.    In  accordance  with  the  reques     Group  South,  the 
-■a.1   Staff  will  support  the  requei   1        e  by  the  Bulgarian 
Armed  Forces  to  the  Commander  in  Chief,  Air  .hat  they  be  given 
]  lanes"  fdr  escorting  missions  between  '    Bosporus  and  Bulgaria. 


VIII.  Warfare  in  the  Mediterranean  and  in  the  Black  Sea 
1«   Enemy  Situation; 
Mediterranean : 

No  noteworthy  reports  received  as  yet  from  the  Western 

and  Central  Mediterranean. 

Brisk  convoy  traffic  was  observed  off  the  Syrian  coast.   Cruiser  and 
destroyer  escorts  as  well  as  PT  boat  movements  were  sighted  in  this 

area  of  the  Mediterranean. 

On  the  whole  there  has  been  no  change  in  the  number  of  ships  %t 
anchor  in  the  port  of  Alexandria  and  in  the  port  and  roadstead  of 
Suez  and  Tripoli. 

2.   Own  Situation: 

Mediterranean : 

For  a  report  on  the  successes  scored  by  submarine  U  "375" 
against  a  convoy  off  the  coast  of  Palestine  see  Submarine  Warfare. 
11  Italian  submarines  were  at  sea. 

For  brief  report  of  the  3rd  PT  Boat  Flotilla  operations  off  Alex- 
andria during  the  night  of  4  Jul.  see  Telegram  0445.  The  Flotilla 
sighted  nothing  where  the  depth  ranges  from  20  to  40  meters  aside 
from  3  patrol  vessels  off  the  entrances  to  the  harbors.  The  fact 
that  despite  patrol  activity  no  leading  lights  could  be  seen  leads 
to  the  conclusion  that  there  are  no  mine  fields  at  the  harbor  en- 
trances. 

According  to  a  report  of  the  German  Naval  Command,  Italy,  2  PT  boats 
will  be  stationed  in  Augusta  ready  for  action  beginning  8  Jul.  but 
cannot  be  sent  on  operations  because  neither  has  a  commanding 
officer.  The  Commander  of  PT  Boats  will  dispatch  one  officer  on  10 
Jul.   There  is  no  way  of  furnishing  another  one  unless  he  is  with- 
drawn from  the  flotillas  operating  in  the  West  Area.   (See  Telegram 
2150.) 

This  is  poignant  evidence  of  the  shortage  of  officer 
personnel,  which  is  being  felt  keenly  in  nearly  all 
branches  of  the  Navy. 


-90- 


) 


o 


CONFIDENTIAL 
6  Jul.  1942 

3.  Transport  of  Supplies  to  North  Africa: 

The  steamer  V/ACHTPELS  arrived  in  Messina  and  is  due 
tinue  from  there  to  North  Africa,  through  Crete.   The  steamer 

PA  is  en  route  to  North  Africa,  accompanied  by  a  magnetic 
nine  sweeper.  At  1700  on  5  Jul.  the  Siena  convoy  consisting  of 

imers  arrived  in  Candia  and  is  scheduled  to  proceed  to  Nort 
Africa  on  7  Jul.  in  the  morning.   (Transport  of  reinforced  infantr 
regiment  to  .  Tobruk. ) 

Coastal  supply  shipping:  From  Tripoli  to  Benghazi,  steamers  STURLA, 
ISEO  and  the  tanker  ENIAj  on  4  Jul.  the  ANKARA,  BIXIO,  MONVTSO  en- 
tered Benghazi,  followed  by  the  OSTIA  on  5  Jul.;  the  "PONT INI SA  was  en 
route  from  Tobruk  to  llarsa  Matruh,  the  MARIA  CAMALI  and  the  ARSIA 
from  Marsa  Matruh  to  Tobruk.   Discharged  at  Mars a  Matruh,  130  tons; 
at  Tobruk,  309  tons. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Auxiliary  cruiser  LERO  is  to  be  transferred  from  India  - 
Tobruk  under  escort  of  8  PT  boats  and  1  torpedo  boat.   Three  torpe 
boats  are  being  transferred  to  Candia  to  reinforce  the  Siena 
Squadron  proceeding  to  Tobruk. 

Black  Sea: 

Enemy  Situation: 

Nothing  to  report. 

Own  Situation: 

Intense  enemy  activity  and  raids  on  Yalta  and  the  Kerch 
area  on  5  Jul.  The  meteorological  station  at  Kerch  was  damaged. 

In  the  morning  of  6  Jul.  there  was  submarine  alarm  8  miles  east  of 
Odessa. 

The  1st  PT  Boat  Flotilla  was  out  on  operations  during  the  night  of 
5  Jul.  No  reports,  have  as  yet  come  in. 

Mine-sweeping,  convoy  and  transport  operations  are  proceedin, 
according  to  plan  and  without  noteworthy  incidents. 

The  Mining  and  Barrage  Inspectorate  reports  in  regard  to  a  request 
of  Group  South  (see  V/ar  Diary,  5  Jul.)  that  a  suitable  mine- 
sweeping  unit  is  being  dispatched  by  air  but  that  a  specialist  fr 
the  Mine-Laying  Experimental  Command  cannot  be  assigned. 


-91- 


CONFIDENTIAL 
6  Jul.  1942 

IX.   Situation  East  Asia 

According  to  press  reports,  the  Japanese  army  is  said  to  be  engaged 
in  a  battle  with  Chinese  troops  in  Inner  Mongolia.   There  are  no 
official  reports  available  on  this  situation.  Repeated  raids  were 
made  on  Kiska  and  Attu  by  U.S.  Army  planes  at  the  end  of  June. 


X.   Army  Situation: 

1.  Russian  Front; 

Southern  Army  Group: 

In  the  area  north  of  Kerch,  an  enemy  attempt  to  break 
through  was  repelled  by  small  forces. 

The  6th  Army  continued  to  advance  eastward.  The  railroad  line  was 
reached  north  of  Valuiki. 

The  enemy  evacuated  Voronezh,  and  the  occupation  of  the  city  has  be- 
gun.  The  strong  enemy  units  which  had  been  wrought  up  from  the 
north  to  be  thrown  against  the  northern  flank  of  the  4th  Panzer  Army, 
were  repulsed,  suffering  considerable  tank  losses.  Enemy  pressure 
is  continuing  south  of  Livny. 

Central  Army  Group: 

Lively  battles  are  in  progress  south  of  Velizh.  Heavy 
enemy  air  raids  on  our  positions  and  rear  areas  are  reported.  West 
of  Sukhinichi  the  enemy  was  able  to  scor?'  some  successes.   Counter- 
attacks have  thus  far  failed  to  produce  results.   The  boundary 
south  of  Mostovaya  was  reinforced  by  advancing  divisions.   Con- 
siderable ground  was  gained  by  our  troops  west  of  Sychevka,  on  the 
western  front. 

Northern  Army  Group: 

Nothing  to  report. 

v. 

2.  Finnish  and  Norwegian  Front: 

No  noteworthy  engagements. 

3.  North  Africa: 

The  enemy  carried  out  a  number  of  assaults  with  tank 
support  against  our  defense  positions  south  of  El  Alamein  and  with- 
drew eastward  in  the  evening.   Our  defense  front  was  reinforced  by 
the  laying  of  numerous  mines.  Enemy  air  activity  was  greatly  in- 
tensified, particularly  during  the  night. 


-92- 


CONFIDENTIAL 
6  Jul.  1942 

The  reinforcements  which  have  been  brought  up  along  extended  supply 
routes  have  hardly  had  an  effect  at  the  front  thus  far. 


3 


,  > 


-93- 


CONFIDENTIAL 
7  Jul.  1942 

Items  of-  Political  Importance 

Great  Britain: 

According  to  ,a  report  originating  in  diplomatic  quarters,  the  crews 
of  British  vessels  are  said  to  be  reporting  that  the  food  situation 
is  gradually  becoming  aggravated  as  a  result  of  numerous  sinkings. 
A  certain  amount  of  dissatisfaction  has*  become  rife  in  the  central 
industrial  areas  of  Britain.   Centers  of  Communist  unrest  have 
sprung  up  in  London  and  Liverpool.   All  seamen  have  been  strictly 
forbidden  to  talk  abroad  about  the  food  problem  and  public  morale. 

Egypt: 

The  government  is  very  much  concerned  that  the  British  will  resort 
to  the  destruction  of  important  facilities,  particularly  the  Suez 
Canal  itself,  should  the  war  situation  grow  worse. 

Rumania: 

According  to  press  reports,  the  Rumanian  cabinet  has  further  stiffened 
its  attitude.   The  general  trend  is  towards  national  conservatism  and 
the  Orthodox  Church  is  steadily  gaining  in  influence.   The  influence 
of  the  Iron  Guard  seems  to  have  vanished  completely.   It  is  apparent 
that  the  proclamation  of  the  new  constitution  has  definitely  been 
postponed  until  the  end  of  the  war. 

Switzerland: 

The  German  Consul  General  in  Geneva  reports  on  reliable  authority 
that  authoritative  British  political  figures  have  unanimously  declared 
that  it  will  be  impossible  to  open  a  second  front  in  the  foreseeable 
future.   The  only  means  of  relieving  the  pressure  on  Russia  would 
be  to  bomb  German  cities  and  centers  of  arms  production.  Threats 
of  a  second  front  which  have  been  deliberately  disseminated,  have 
already  had  the  desired  effect  and  will  continue  to  be  effective  even 
if  no  invasion  is  attempted.   It  has  been  learned  In  Switzerland, 
from  Egyptian  sources,  that  Britain  has  been  expecting  the  loss 
of  Egypt  for  the  past  week  or  so. 


-94- 


) 


) 


CONFIDENTIAL 
7  Jul,  1942 

Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  The  Fuehrer  Indorsed  the  list  of  priority  ratings  for  new 
construction,  repairs,  etc.  which  had  "been  submitted  to  him  by 
the  Permanent  Representative  of  the  Commander  in  Chief,  Navy  at 
the  Fuehrer  Headquarters.   Copy  as  per  l/Skl  16585/42  Gkdos.  in  War 
Diary,  Part  B,  Vol.  V. 

II.  Acting  on  the  report  of  the  Chief,  Naval  Construction  Division 
concerning  the  delay  in  finishing  repairs  on  the  PRINZ  ErGEN  (see 
War  Diary  4  Jul.)  the  Commander  in  Chief,  Navy  orders  that  his 
permanent  representative  at  the  Fuehrer  Headquarters  report  to  the 
Fuehrer  the  failure  to  provide  shipyard  workers. 

A  further  report  by  the  Chief,  Naval  Construction  Division  on 

armor  protection  for  PT  boats.  He  pointed  out  that  while  this 

would  not  affect  stability,  it  would  cut  down  the  speed  2  knots  per 

hour.   The  Naval  Staff  maintains  that  this  could  not  be  permitted. 

III.  A  report  of  the  Chief,  Naval  Ordnance  Division  concerning  his 
conference  with  Minister  Speer:   The  supply  transport  situation  is 
showing  a  slight  Improvement,  the  number  of  cars  made  available  daily 
haying  risen  from  130,000  to  160,000.   He  also  reports,  among  other 
things,  on  his  conferences  with  the  Reichsmarschall: 

1.  Concerning  the  reorganization  of  research,  cooperation 
of  the  different  branches. of  the  Army,  and  discharge  from  the  .Army 
of  1,000  university  and  college  teachers. 

2.  Concerning  scarce  metals:   An  appeal  to  all  consumers 
of  copper  and  light  metals. 

IV.  The  Commander  in  Chief,  Navy  agrees  with  the  proposal  of  the 
Chief,  Submarine  Division,  Naval  Staff  to  scrap  the  captured  British 
submarine  SEAL.  The  submarine  would  provide  scarce  metals  for  five 
VTI  C  boats. 

V.  In  a  very  restricted  circle 

A  discussion  on  the  advisability  of  sending  the  ADMIRAL  SCHEER 
and  destroyers  to  attack  the  remaining  7  steamers  of  convoy  PQ,  17 
leads  to  the  conclusion  that  such  an  action  is  no  longer  worthwhile 
since  it  is  expected  that  the  submarines  and  planes  will  report 
further  successes. 


-95- 


CONFIDENTIAL 
7  Jul.  1942 

The  Naval  Staff  believes  that  It  would  not  be  advisable  to  follow 
the  suggestion  of  the  Chief,  Naval  Staff  Quartermaster  Division, 
i.e.  to  report  to  the  Fuehrer  the  reasons  for  halting  operation 
"Roesselsprung" ,  particularly  stressing  the  remark  made  by  General 
Bodenschatz  that  the  Commander  in  Chief,  Air  failed  to  understand  these 
reasons.  They  will  be  dealt  with  in  the  final  report  of  the  Naval 
Staff. 

VI.  The  report  of  the  Chief  of  Operations  Branch,  Naval  Staff  Oper- 
ations Division  on  the  report  of  the  German  General  at  the  Italian 
Armed  Forces  Headquarters,  submitted  to  the  Armed  Forces  High  Command 
on  6  Jul,,  is  as  follows:  The  combat  strength  of  German  and  Italian 
divisions  has  dropped  to  1,200  men  or  less,  also  to  40  German  and  60 
Italian  tanks.  The  British  Air  Force  has  numerical  superiority, 
particularly  in  fighter  planes.  Measures  for  replacements:  2,250  men 
were  flown  to  Tobruk  up  to  5  Jul.  The  transfer  of  a  reinforced 
infantry  regiment  from  Crete  to  Marsa  Matruh  at  the  rate  of  1,000 
men  per  day  started  on  6  Jul.  The  Italians  are  bringing  up  7 
battalions;  4  artillery  battalions;  tanks;  armored  scout  cars 
and  guns  on  a  PT  boat  flotilla  for  the  Vriete,  Trento,  Pavia,  and 
Brescia  Divisions.  Personnel  replacements  will  be  flown  from  Italy. 
Tanks  will  be  delivered  by  naval  barges. 

Owing  to  a  shortage  of  trucks  the  Air  fcorce  is  hindered  in  bringing 
up  supplies  and  personnel.  Cavallero  and  the  German  General  at  the 
Italian  Armed  Forces  Headquarters  are  flying  back  to  Rome  on  6  Jul. 
with  the  aim  of  stepping  up  North  African  transports.  The  Duce 
appears  to  have  no  intention  of  returning  to  Italy  for  the  time 
being. 


Special  Items: 

X.   The  Fuehrer  directive  of  30  Jun#J  delivering  sharpest  warning 

in  regard  to  rules  of  secrecy  and  handling  of  material  which  should  ( 

be  safeguarded  under  lock  and  key,  was  inspired  by  the  latest  case 

wherein  operational  orders  have  fallen  into  enemy  hands  because 

instructions  were  disregarded. 

Copy  of  corresponding  order  of  the  Commander  in  Chief,  Navy  as  per 
lAma/M  Wehr  9390/42  geh.  is  in  War  Diary,  Part  B,  Vol.  V. 


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CONFIDENTIAL 


I) 


J 


7  Jul.  1942 


II.  Observations  of  the  Naval  Staff  concerning  the  commitment  of 
heavy  surface  forces  In  the  Norwegian  theater: 

The  attempt  which  has  been  made  twice  to  dispatch  the  heavy  ships 
against  the  Murmansk- Archangel  shipping  route  met  with  no  success. 
Every  attempt  to  bring  heavy  surface  forces  into  action  is  rendered 
difficult  by  the  Fuehrer* s  insistence  that  losses  or  set-backs  must 
be  avoided  at  all  coast.   Consequently,  it  will  be  possible  to  under- 
take such  operations  only  In  those  instances  where,  as  far  as  human 
judgment  can  predict,  no  serious  risk  is  involved,  particularly 
from  enemy  carriers.  To  a  certain  extent  this  condition  was  present 
during  operation  "Roesselsprung" .   It  is  not  known  ever  to  have 
occurred  before  in  connection  with  PQ  convoys  and  will  probably  never 
do  so  again.  Thus  it  can  hardly  be  expected  that  our  heavy  ships 
will  ever  undertake  a  mission  against  PQ  convoys.  However,  since 
the  commitment  of  heavy  ships  Is  a  matter  of  fundamental  strategy, 
new  tasks  will  have  to  be  found  for  them  outside  of  the  eventuality 
of  an  expected  enemy  Invasion.   Such  tasks  are  open  to  them  in 
operations  against  Russian  shipping  along  the  north  Siberian  route, 
in  the  easter  portion  of  the  Barents  Sea  and  against  the  QP  convoys. 
The  Naval  Staff  has  already  ordered  Group  North  to  make  preparations 
for  the  first  of  the  above-mentioned  tasks. 

Hitherto  operations  against  QP  convoys  were  neglected  in  favor  of 
the  more  valuable  PQ  convoys.  To  purstie  such  operations  in  the 
proper  manner  it  is  necessary  to  detect  the  convoy  early  enough 
so  that  our  naval  forces  may  be  brought  Into  action,  If  at  all  possible, 
east  of  30°  to  35°E.  The  fighting  forces  must  be  poised  at  some  base 
in  the  Arctic  area  and  security  measures  are  to  be  most  stringently 
observed.  A  report  of  the  corresponding  observations  by  the  Naval 
Staff,  Fleet  Operations  Section  as  per  l/Skl  I  op  1294/42  Gkdos. 
Chefs.  Is  in  War  Diary,  Part  C,  Vol.  Ila. 

Similar  motives  are  behind  the  proposal  of  Group  North  that  the 

Kanin  Passage  should  be  patrolled  so  that  the  planes  and  submarines 

might  be  able  to  spot  the  convoy  promptly.  This  is  necessary 

in  view  of  the  plan  to  attack  the  QP  convoy  with  the  surface  naval 

forces. 

III.  Concerning  French  Naval  Forces  In  Alexandria 

On  3  Jul.  the  German  Armistice  Commission,  France  reported  that 
the  French  naval 'force 8  intend  to  depart  from  Alexandria  as  soon 
as  the  British  have  abandoned  the  port;  and  that  they  will 


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7  Jul.    1942 


head  for  the  coast  of  Tunisia,  unless  the  "barnacles  on  the  hulls 
necessitate   pausing  at  an  intermediate  harbor  on  Crete  where 
the  ships'  would  be  able  to  refuel. 

In  accord  with  the  requested  opinions  of  Naval  Group  South  and  the 
German  Naval  Command,  Italy  on  4  Jul.,  the  Naval  Staff  reported 
to  the  Operations  Staff,  Armed  Forces  High  Command,  that  there  is 
no  fundamental  objection  to  permitting  the  .French  naval  forces 
to  enter  a  Mediterranean  port  which  Is  under  German  control,  and 
that  refueling  is  likewise  permissible.   The  port  of  Piraeus  is 
proposed  as  port  of  entry,  if  necessary.  It  does  not  appear  desirable 
to  use  Suda  Bay  for  the  purpose  since  it  is  being  used  for  the 
shipment  of  supplies  to  Rommel. 

In  accordance  with  the  proposal  of  the  Naval  Staff,  the  Chief  of 
Staff,  Armed  Forces  High  Command  decided  that,  in  case  of  necessity, 
the  ships  may  enter  Piraeus.   In  accordance  with  the  French  request, 
the  Italians  are  to  fix  the  safest  route  by  agreement  with  the 
Admiral,  Aegean  Sea.   The  ships  may  likewise  be  allowed  to  take  on 
fuel  in  Piraeus.  4 

IV.  In  a  conference  held  at  Friedrichshafen  in  the  middle  of  June 
between  the  German  and  Italian  Armistice  Commissions,  France,  it 
was  obvious  that  Italy  has  stiffened  her  attitude  towards  France. 
For  the  part  of  the  report  of  the  Armistice  Commission,  France 
which  deals  with  these  conferences  see  War  Diary,  Part  C,  Vol.  XVI, 

V.  According  to  a  report  of  the  Armed  Forces  Hi?h  Command,  Operations 
Staff,  the  Fuehrer  and  the  Duce  have  discussed  the  basis  of  coopera- 
tion of  the  Italian  Army  in  the  event  that  the  occupation  of  the 

rest  of  France  (operation  "Anton")  should  become  necessary.  The 
Armed  Forces  High  Command  transmits  Its  plans  for  the  handling  of 
the  operation,  which  will  depend  for  its  details  on  the  situation 
prevailing  at  the  time  of  its  execution.   About  ten  days  notice 
will  be  required.   Tank  units  will  advance  on  Toulouse  and  Lyon, 
and  infantry  and  motorized  forces  will  cross  the  line  of  demarcation 
along  Its  entire  length;  warehouses atraff ic  junctions,  and  economic 
centers  will  be  occupied  in  swift  order,  and  the  occupation  will  be 
completed  soon  after.   The  German  General  in  Rome  is  to  propose 
to  the  Italian  High  Command  a  demarcation  line  between  German  and 
Italian  troops,  running  through  Geneva,  Lyon,  and  Toulouse.   The 
Commander  in  Chief,  Air  Force  is  to  present  his  requests  directly 
to  the  Italian  Air  Forces  High  Command  with  regard  to  preparations 
by  forces  of  the  Commanding  General,  Armed  Forces,  South. 


«g 


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CONFIDENTIAL 
7  Jul.  1942 


The  Commander  in  Chief,  Navy  is  to  make  the  necessary  arrangements 
with  the  Italian  Navy  High  Command.,  in  agreement  with  the  German 
General  in  Rome, with  regard  to  allocating  operational  bases  so  that 
the  German  naval  forces  can  operate  together  under  German  tactical 

command. 

The  corresponding  directive  of  the  Naval  Staff  has  been  issued  to 

the  German  Admiral  in  Rome  on  6  Jul.  with  a  copy  to  the  German  General 

at  the  Italian  Armed  Forces  Headquarters, 


Situation  7  Jul.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

North  Atlantic: 

According  to  an  intelligence  report  from  Spain  rumors  are 
increasing  that  troop  transports  have  been  sighted  in  the  waters 
around  the  Canary  Islands  and  the  Azores,  where  they  seem  to  be 
waiting.   Continued  investigations  by  the  Intelligence  Division  have 
yielded  no  results  up  to  the  present  . 

South  Atlantic: 

The  V.S.   Embassy  in  Buenos  Aires  reported  that  it  has  no 
information  with  regard  to  the  presence  of  German  auxiliary  cruisers 
in  the  South  Atlantic.   Thus  the  rumors  are  denied,  according  to  which 
an  auxiliary  cruiser  attacked  the  "U.S.  freighter  DEACON,  and  an 
engagement  was  fought  on  1  Jul.  w:  th  an  auxiliary  cruiser  off  the 
southwestern  coast  of  Africa. 

Indian  Ocean : 

According  to  a  report  from  Lourenco  Marquez,  4  ships  have 
been  sunk  off  that  port  in  the  last  few  days  while  5  vrere  sent 
to  the  bottom  between  Mozambique  and  Lurio.   Altogether  6  ships 
are  said  to  have  be<=n  sunk  off  Durban. 


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CONFIDENTIAL 
7  Jul.  1942 

2.   Own  Situation; 

Radiogram  1046  contains  sailing  order  to  the  CHARLOTTE 
SCHLIEMANN  to  proceed  to  a  rendezvous  with  ship  "23". 

Radiogram  1900  contains  a  directive  to  all  vessels  in  foreign 
waters  concerning  authorisation  of  submarine  attack  against  ships 
sailing  independently  on  the  :' Anton"  route  north  of  5°  S. 

A  check  of  distress  signals  recently  picked  up  in  the  Atlantic 
produced  the  following  data: 

a.  The  steamer  "W.H.P.V."  sunk  by  ship  "28".  The  stealer's 
name  was  probably  GEORGE  CLYMER . 

b.  Ship  "23"  sank  the  GEMSTONE. 

c.  At  the  equator  an  Italian  submarine  sank  the  ALIOTH.  {♦ 

d.  Ship  "28"  probably  sank  the  ALCOA  TOLARIS. 

This  information  was  transmitted  to  ships  "23"  and  "28"  by 
Radiogram  0707. 

Radiogram  2025  informs  ship  "10M  that  according  to  the  report  of 
the  Naval  Attache  at  Tokyo  the  NANKIN  left  Batavia  on  4  Jul. 
while  the  HERBORG  departed  on  5  Jul.,  and  that  only  the  Christmas 
Islands  and  not  the  Keeling  Islands  have  been  occupied  by  the 
Japanese. 

Radiogram  1715  contains  directive  to  the  three  prizes  of  ship  "10" 
with  regard  to  assignment  of  call  signals  in  radio  communication. 
Information  to  that  effect  was  transmitted  to  the  Attache  at  Tokyo 
by  Telegram  2137. 

The  Japanese  General  Staff  communicated  through  the  Japanese  Military 

Attache  that  it  takes  the  same  position  as  the  German  Navy  on  the  ((•♦ 

question  of  prisoners.  On  the  basis  of  an  unofficial  notice  the 

General  Staff  made  arrangements  to  take  these  prisoners  into  custody 

and  states  that  this  was  not  done  before  because  no  official 

instructions  had  been  received  from  Germany. 

Consequently  the  Naval  Staff  informed  the  Japanese  Naval  Attache 
as  follows: 

a.   The  notification  regarding  prisoners  by  the  Naval  Attache, 


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CONFIDENTIAL 
7  Jul.  1942 


Tokyo  and  the  assent  of  the  Japanese  Navy  constituted  an  official 
step. 

b.   The  discussion  on  the  question  of  prisoners  of  war 
between  the  Chief  of  the  Operations  Section  and  the  Japanese  Attache 
and  between  Admiral  Groos  and  Admiral  Nomura,  as  well  as  the 
instructions  forwarded  by  the  Foreign  Office  to  the  Ambassador 
iat  Tokyo,  likewise  constituted  official  steps;  the  Naval  Staff 
assumes  that  henceforth  all  incoming  prisoners  will  be  taken 
into  custody  in  Japan. 

The  Naval  Staff  regards  this  distinction  between 
official  and  unofficial  steps  in  the  nature  of  an 
evasion  of  an  apology,  upon  which  the  Naval  Staff 
places  no  value. 

The  Naval  Attache,  Tokyo  is  informed  to  that  effect  via  Telegrams 
2340,  2300,  and  2310  and  is  instructed  to  report  on  how  things 
stand  there  and  what  position  is  taken. 

Radiogram  1831  transmits  information  to  all  vessels  in  foreign 
waters  concerning  "U.S.  imperialism  aimed  at  Latin  America  and  the 
firm  stand  taken  by  the  governments  of  Argentina  and  Chile  against 
economic  and  political  pressure  exerted  by  the  T.S. 

Enemy  Situation  communicated  by  Radiogram  0219. 


II.  Situation  West  Area 

1.   Enemy  Situation; 

There  is  an  increase  in  reports  concerning  invasion  pre- 
parations by  the  British.  Portuguese  Intelligence  makes  known  the 
report  of  a  Portuguese  seaman  who  was  at  Portsmouth  on  13  Jun.  From 
this  report  it  appears  that  extensive  ^preparations  are  under  way  on 
the  south  coast  of  England  for  a  landing  operation  on  the  French 
Channel  coast.   Stocks  of  materiel  are  piled  up,  mainly  at  Dover, 
New  Romney,  Dungeness,  Hastings,  Boxhill,  Eastbourne,  Seaford,  and 
Portsmouth.  This  materiel  is  stored  in  huge  camouflaged  barracks. 
The  British  expect  to  be  aided  by  the  French  civilian  population 
which  has  set  up  large  organizations  to  support  the  invasion.  The 


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CONFIDENTIAL 
7  Jul.  1942 

main  invasion  is  to  take  place  on  the  northern  coast  of  Prance, 
with  diversionary  attacks  at  other  points.   Arms  and  explosives  are 
being  supplied  to  the  French  population  chiefly  from  the  Isle 
of  Wight  to  Avranches  and  small  coastal  communities  in  the  Bay 
of  St.  Brieux  by  means  of  fishing  boats  and  auxiliary  sailing 
vessels • 

According  to  an  Italian  report,  British  invasion  preparations 
are  being  conducted  by  Communist  groups  in  northern  Portugal.  The 
invasion  of  Portugal  is  to  be  proceeded  by  invasions  of  France, 
Holland,  and  Belgium. 

2.   Own  Situation; 

Atlantic  Coast: 

On  the  night  of  6  Jul.  an  enemy  raid  was  staged  on  Lorient 
and  lie  de  Croix.  No  damage  was  reported.  Two  planes  were  s^hot  (i 

down  by  naval  anti-aircraft  guns.  On  7  Jul.,  5  ground  mines 
were  swept  off  the  Gironde.  Owing  to  suspected  mine  danger,  the 
Loire  and  the  Gironde  were  temporarily  closed  to  traffic. 

Channel  Coasts 

The  4th  PT  Boat  Flotilla  was  sent  into  action  on  the  night 
of  6  Jul.  but  did  not  contact  the  enemy. 

On  the  night  of  5  Jul.  units  of  the  12th  Motor  Mine  Sweeper  Flotilla 
engaged  2  enemy  PT  boats  northwest  of  Blanc  Nez.   Neither  side  scored. 
A  harbor  defense  vessel  which  had  strayed  from  the  convoy  was 
shelled  by  enemy  PT  boats  northwest  of  Boulogne  and  suffered  slight 
losses.   A  tug  convoy  proceeding  from  Dieppe  to  Boulogne  was 
unsuccessfully  attacked  by  a  number  of  Spitfires  twice  in  the  same 
night. 

In  the  afternoon,  enemy  >planes  sank  the  fishing  patrol  vessel  EUEST  1 

between  Le  Treport  and  Mesnel  Val.  (/^ 

On  the  night  of  7  Jul.  the  2nd  PT  Boat  Flotilla  was  prepared  for 
torpedo  missions  against  any  unscheduled  convoy  which  might  be 
sighted  by  reconnaissance. 


-102- 


CONFIDENTIAL 
7  Jul.  1942 

III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

The  mining  operation  "Thusnelda"  was  accomplished  accord- 
ing to  plan.   Two  ground  mines  were  swept  north  of  Schiermonnikoog. 
Convoy  missions  are  proceeding  according  to  plan.   Owing  to  "unfavor- 
able weather  conditions,  the  sweeping  of  routes  had  to  be  interrupted 
in  some  cases.   On  the  night  of  6  Jul.  the  enemy  flew  over  the 
German  Bight.   It  is  suspected  that  aerial  mines  were  dropped,  in 
the  area  north  of  Borkum. 


Special  Items; 

While  en  route  from  South  America  to  Sweden,  the  Swedish  ships 
UDDEHOLM  and  ARGENTINA  sailing  In  the  Goeteborg  traffic  struck  a 
number  of  mines  and  sank  at  57°  39.5'  N,  07°  16.5'  E  (southwest 
of  Kris t Ian sand ) .   According  to  the  Sea  Defense  Conmand  Fristlan- 
sand  South,  the  ships  were  following  the  routes  fixed  by  the  Swedish 
Government.  The  captains  had  been  advised  of  the  German  declared 
area  by  the  communications  service.  This  notwithstanding,  the  Swedish 
Government  did  not  issue  any  other  orders  to  alter  the  course. 

It  remains  to  be  ascertained  whether  the  mine  field 
in  question  was  ours  or  whether  it  was  laid  by  the 
enemy. 


2.   Norway; 

716  ships  with  an  aggregate  of  1,821,684  GRT  were  escorted 
in  the  area  of  the  Commanding  Admiral,  Norway  during  Jun.  1942.  Five 
enemy  air  raids  were  staged  against  these  ships  but  no  losses  were 
sustained.  There  were  19  enemy  air  raids  against  Norwegian  harbors. 
Five  mines  were  swept. 

On  5  and  6  Jul.,  enemy  planes  raided  Vardoe  but  failed  to  inflict 
any  damage.  Otherwise  nothing  to  report. 


-103- 


CONFIDENTIAL 
7  Jul.  1942 

3.   Arctic  Ocean t 

Enemy  Situation; 

According  to  an  intelligence  report  from  Sweden,  the  British 
Legation  at  Stockholm  received  by  radiogram  from  northern  Norway  in- 
formation concerning  the  movements  of  German  naval  and  air  forces 
operating  against  convoys r  British  Intelligence  is  being  supplied 
with  information  by  an  intelligence  officer  in  Stockholm. 

According  to  another  report  of  the  Intelligence  Service  from  Sweden, 
British  and  American  convoys  heading  for  Russia  meet  at  Iceland  and 
contimie  their  voyage  together.  In  the  future,  U.S.  escorts  are  to 
go  only  as  far  as  Iceland.  Here  the  convoys  are  to  be  taken  over 
by  British  or  Russian  escorts  coming  from  the  opposite  direction. 
According  to  another  intelligence  report,  the  major  portion  of  the 
convoy  was  ordered  back  on  sighting  German  submarines,  while  the 
remaining  section  was  ordered  to  take  a  different  route.  According 
to  radio  monitoring,  a  British  ship  was  sighted  about  180  miles 
northwest  of  the  Faroe  Islands.  At  0652  a  message  from  about  220 
miles  northeast  of  Murmansk  was  intercepted,  concerning  an  air  raid 
on  a  section  of  convoy  PQ  17.  Other  air  raids  were  reported  in  the 
course  of  the  day.  According  to  radio  decoding  on  5  Jul.,  2  British 
squadrons  received  orders  at  2045  to  search  for  a  damaged  battleship 
in  the  Arctic  Ocean.  At  0145  on  6  Jul.,  a  third  squadron  received 
an  order  to  carry  out  swift  reconnaissance  in  the'  area  where,  as  we 
believe,  a  heavy  U.S.  cruiser  was  sunk. 

At  1045  a  message  from  a  British  plane  was  intercepted,  according  to 
which  our  Fleet  force  was  sighted  after  weighing  anchor  at  Armoe. 
British  headquarters  did  not  interpret  intercepted  messages  correctly 
with  regard  to  location  of  our  vessels.  It  could  not  be  ascertained 
what  effect  these  messages  produced. 

Own  Situation; 

The  5  submarines  which  are  in  the  zone  of  operations 
succeeded  in  sinking  3  additional  vessels  of  the  convoy  during  the 
day.  If  another  sinking  by  submarine  U  "255"  on  the  evening  of. 
6  Jul.,  still  unreported,  is  added,  we  get  a  total  of  13  steamers 
sunk  by  submarines  with  an  aggregate  tonnage  of  about  94,000  GRT. 
Particulars  in  Supplement  to  Submarine  Situation.  The  submarines 
received  an  order  to  attack  unescorted  steamers  as  they  are  reported 


-104- 


CONFIDENTIAL 
7  Jul.  1942 


and  to  proceed  thereafter  to  an  assigned  position  at  the  entrance 
to  the  White  Sea.   Submarine  U  "88M  was  forced  to  discontinue  her 
mission  because  of  lack  of  fuel.   Submarine  TJ  "657"  reported  firing 
a  quadruple  spread  against  a  large  Russian  submarine  in  quadrant 
AC  5725,  but  missed  the  target. 

No  reports  have  as  yet  been  received  on  results  of  combat  missions 
carried  out  by  the  Air  Force. 

In  the  forenoon,  the  Fleet  force  continued  on  to  Narvik.  A  , 
shadowing  enemy  plane  was  sighted  at  noon. 


IV.   Skagerrak,  Baltic  Sea  Entrances.  Baltic  Sea 

1.  Enemy  Situation: 

According  to  radio  monitoring,  9  Russian  submarines  were 
sighted  at  sea.  At  1737  on  6  Jul.,  and  at  0212  on  7  Jul.,  a   sub- 
marine proceeding  at  high  speed  on  a  westerly  course  was  sighted 
30  miles  north  of  Hela.   She  submerged  after  being  shelled. 

2.  Own  Situation; 

For  Group  North's  order  transferring  the  cruiser  KOEIN  to 
Trondheim  see  Telegram  1742. 

On  4  Jul.  a  motor-driven  fishing  cutter  sank  off  Ueckeritz  when 
a  mine  exploded. 

North-northwest  of  Helsingoer  a  patrol  vessel  and  a  mine-exploding 
vessel  were  damaged  by  a  ground  mine. 

According  to  a  Swedish  report  on  6  Jul.  a  convoy  was  unsuccessfully 
attacked  by  a  submarine  in  Swedish  territorial  waters  between 
Landsort  and  Haevringe.   Swedish  submarine  chasers  pursued  the 
submarine.   The  Swedish  Fleet  Commander  received  an  order  on  7  Jul. 
to  attack  all  submerged  submarines  encountered  between  the  Aalands 
Haf  and  Falsterbo,  if  they  are  in  a  position  to  attack,  regardless 
of  whether  such  submarines  are  w'thin  or  outside  territorial  waters. 
Swedish  planes  and  naval  forces  are  carrying  out  continuous  reconn- 
aissance by  day  and  night  in  the  waters  between  Landsort,  the 


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CONFIDENTIAL 
7  Jul.   1942 

northern   tip   of  Oeland,   and  Gothland, 

Mine   field  "Nashorn  X"   was  laid   in   the  Gulf  of  Finland.     Near 
Holland  mine   sweeper   "19"   engaged  an  enemy  submarine  with  probable 
success^.^Jhe  transport   steamers  which  were  delayed  owing   to 
suspected  submarine  danger  are  being  escorted  from  Danzig  and  Memel 
to  Utoe  by  7  patrol  vessels. 


V.        Merchant   Shipping; 

1.  According   to  computations  made  by  the  Naval   Staff, 
Intelligence  Division,   the   verified  tonnage  loss   sustained  in 

June  1942  by  enemy  merchant   shipping  and  merchant   shipping  assisting 

the   enemy  was   215   ships  ,""  totalling  952,164  GRT.      Of  this,   German 

submarines   sunk    131  ships   in   the  Atlantic  and  the  Mediterranean,  ^ 

representing  a   total  of  649,730  GRT. 

2,  According  to  a  report   of  the   chairman   of  the   U.S.   Maritime 
Commission,    66  ships  representing  732,000  GRT  were  completed  in  U.S. 
shipyards   in  June  1942.     A  total   of  208  ships  wer©  built   from  Jan. 
1942   till  the   end  of  June,   totalling   2,346,000  GRT. 


VI.      Submarine  Warfare 

1.  Enemy  Situations 

There  are  no  reports  available  other  than  the  usual  one 
telling  of  submarines  sighted  off  the  American  coast  and  in  the 
West  Indies  area. 

2.  Own  Situation; 

For   the   operation  against   convoy  PQ  17  see  Own  Situation, 
Arctic   Ocean   and  Supplement  to   Submarine   Situation   in  War  Diary, 
Part  B,   Vol.   IV. 

Of  the  submarines   operating  off  the   American   coast  U  "158" 
(Lieutenant   s.g.  Rostin)   must  be  given  up  for  lost. 

Submarine    U  "129"    reported   sinking  the   steamer  CADMUS    (1,835  GRT) 

in   the  Gulf  of  Mexico   on  1  Jul.,   sinking  the   steamer  GUNDERSEN    (1,841 

GRT)    on  2  Jul.f   and  sinking  the  steamer  TUAPSE  on  4  Jul. 


-Sr 


confide?:tial 

7  Jul.    1942 


In  the   South  Atlantic,    5   submarines    of   gro  p    "Hal"    are    to  have 
occupied  reconnaissance   line   from  quadrant    CF   7255   to   qvadrant   CF 
8245   by  10  Jul,,    then    to   proceed   on   a    185°   course   at   a   rate   of 
150  miles   per  day.      Submarine   U  "116",    serving   as   a    tanker,    is    to 
extend  her  reconnaissance   line    to  the  west. 

No    reports    of   successes   have  been   received  from    the  Mediterranean, 


VTI .   Aerial  Warfare 

1.        British  Isles   and  Vicinity; 

In   the  Solent,   4  Focke  Wulf  190's    sank  a   10,000  GRT 
steamer  and  damaged  another  steamer   of  the    same   class,   as  well   as 
a  motor  mine  sweeper. 

On  the  night   of  7  Jul.,    53   of   our  planes   attacked  Middlesbrough. 
8  planes  again  mined  Pembroke. 

During   the   same   night,   enemy  planes   carried  out   ten  missions  over 
the   coast   of    the   German  Bight,   with   the   apparent   objective   of 
planting  mines. 

2-,        Mediterranean   Theater: 

The   Commanding  General,    Armed  Forces,    South   sent   planes 
to  attack  airfields   on  Malta. 

The    forces   of  the   Air   Commander,   Africa  gave   support   to  Rommel's 
Panzer  Army. 

On   the  night  of  5  Jul.,  planes   continued  to  mine   the   harbor 
of  Suez  with  aerial  mines. 

3.        Eastern   Front; 

Our  operations   on    6  Jul.    centered   in   the   Voronezh  and 
Yelets  areas. 

Three  patrol    vessels  were  damaged  on   6  Jul.    in   the  Gulf  of  Finland. 

On   7  Jul.,   the   5th   *ir  Force   staged  raids   on  dock  installations 

at   Rosta,    the   air   field  and  quay  installations   of  Murmansk^and  over 


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CONFIDENTIAL 
7  Jul.  1942 


Kola  Bay.   The  effects  were  observed.   A  large  patrol  vessel 
was  sunk  60  miles  north  of  the  Kanin  Peninsula. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation; 

Mediterranean : 

No  noteworthy  reports  have  been  received  on  ship  moveoents 
and  vessels  in  the  harbors. 

According  to  radio  decoding,  at  1150  the  French  Admiralty  radioed 

the  following  message  to  the  French  Admiral  in  Alexandria:  t 

"The  report  that  the  French  Government  has  informed  the  U.S.  Govern- 
ment of  the  guarantees  mentioned  in  paragraph  1  of  my  Telegram  6490 
is  authentic.   The  U.S.  Government  has  been  advised  by  the  French 
Government  of  the  general  tenor  of  the  instructions  transmitted  to 
you.'  Under  the  circumstances  nothing  should  prevent  "Force  XM  from 
eventually  proceeding  to  a  French  port.   The  U.S.  Government  replied 
that  "Force  X"  must  follow  the  British  in  the  direction  of  the  Red 
Sea  in  the  event  of  their  retreat  under  pain  of  annihilation.  I 
cannot  countenance  this  position  and  my  instructions  remain  unaltered." 

2.  Own  Situation: 

On  the  night  of  5  Jul.,  the  enemy  staged  an  air  raid  on 
Tobruk.   During  the  enemy  attack  on  Benghazi  on  6  Jul.,  the  wreck 
of  the  steamer  TINOS  was  blown  to  pieces  by  a  direct  hit.   A  boat 
of  the  3rd  PT  Boat  Flotilla  was  put  out  of  action  by  bomb  fragments 
during  an  enemy  raid  on  Marsa  Matruh  on  the  night  of  5  Jul. 

3,  Transport  of  Supplies  to  North  Africa: 

The  steamer  PONTINIA  arrived  in  Marsa  Matruh,  unloaded 
and  left  for  Tobruk  in  the  evening.   Three  naval  barges  and  the  SAN 
MARCO  II  arrived  in  Tobruk.   The  steamer  TRAP AN  I, carrying  2,000 
prisoners,  left  Tobruk  bound  for  Benghazi.  The  STURLA,  ISEO,  and 
BROOK  are  en  route  from  Benghazi  to  Tobruk,  and  the  ARSIA  is  pro- 
ceeding from  Marsa  Matruh  to  Derna. 

Cargo  unloaded  during  the  day  at  Marsa  Matruh:   405  tons;  at  Tobruk: 
80  tons . 


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> 


CONFIDENTIAL 
7  Jul.  1942 


The  next  convoy  from  Italy  to  North  Africa  is  to  consist  of 

motor  ships  APrNIA,  LERICI,  LWIONE,  and  RAVELLO. 

The  Siena  convoy  bound  for  Tobruk  will  leave  Suda  at  midnight  on  9  Jul. 
It  is  expected  to  reach  port  on  10  Jul.  at  0800. 

In  view  of  the  entirely  inadequate  supply  shipments  from  Italy 

to  North  Africa,  the  Admiral,  German  Naval  Command,  Italy  sent  the 

following  telegram  to  Admirals  Riccardi  and  Sansonetti  on  4  Jul.r 

"I  repeat  once  more'  that  with  the  meager  means  at  my  disposal  I  am 
no  longer  in  a  position  to  get  my  supplies  from  Benghazi  to  Marsa 
Matruh.  The  Italian  Navy  must  take  over  supply  and  escort  duty  as 
far  as  Tobruk.   Otherwise  the  sea-borne  supplies  will  not  be 
delivered.  No  matter  how  great  the  amount  of  supplies  unloaded 
at  Benghazi,  they  will  not  benefit  the  front.   I  again  recommend 
direct  routing  of  supplies  to  Tobruk.   The  danger  is  no  greater 
than  on  the  Benghazi  route.  It  is  imperative  to  take  the  greater 
risk  involved  in  getting  into  the  harbor  of  Tobruk.  German  Naval 
forces  have  been  using  the  port  daily  since  it  was  occupied.  Even 
if  losses  are  to  be  sustained,  it  is  preferable  to  unload  at  Tobruk 
rather  than  to  do  all  the  unloading  at  Benghazi  where  the  supplies 
remain  untouched.  We  are  at  a  decisive  hour  in  history  where  we  are 
confronted  with  a  historic  responsibility,  and  the  highest  military 
objective  in  the  Mediterranean  is  at  stake.  No  sacrifice  is  too 
great.   I  most  urgently  beg  the  Italian  Navy  not  to  disregard  these 
suggestions." 

The  Commander  in  Chief,  Navy  had  intended  to  s  end  a  similar  telegram 
to  Admiral  Riccardi;  it  was  not  dispatched,  however,  since  the  Admiral 
German  Naval  Command,  Italy  reported  on  7  Jul.  that  he  had  arrived 
at  an  agreement  with  the  Italian  Admiral,  Libya  on  6  Jul.  whereby 
the  arrival  of  heavy  ships  at  Tobruk  may  be  expected  henceforth. 
(See  Telegram  0955.) 

4.   Area  Naval  Group  South* 

Aegean  Seat 

The  HCQ   3"  transferred  from  Piraeus  to  Suda  on  6  Jul.  and 
is  available  for  escort  missions  to  North  Africa. 

Black  Seat 

Enemy  Situation: 

Radio  monitoring  disclosed  only  slight  fleet  activity. 


-£09- 


CONFIDENTIAL 


7   Jul.    1942 


On  the  morning  of  5  Jul.,  3  PT  boats  approached  Taganrog  and  turned 
off  to  the  south  on  being  shelled  from  land. 

Own  Situation; 
—  ^.« 
The  1st  PT  Boat  Flotilla  was  on  active  duty  on  the  night 
of  5  Jul.,  but  failed  to  contact  the  enemy.   The  flotilla  is  being 
transferred  to  Constanta.   Three  Italian  submarine  chasers  and  a 
motor  boat  pursued  an  enemy  motor  boat  on  the  evening  of  6  Jul., 
and  captured  the  crew  of  12  men. 

Motor  mine  sweeper  "165"  proceeding  from  the  Danube,  reached  Snlina 
on  7  Jul.  Thus  there  are  now  4  boats  of  the  3rd  Motor  Mine  Sweeper 
Flotilla  In  the  Black  Sea. 

Escort  duty  carried. out  according  to  plan. 

It  is  expected  that  the  grounded  steamer  ARDEAL  will  be  ready 
for  towing  within  3  weeks  once  the  deck  has  been  made  watertight. 
An  attempt  is  being  made  to  salvage  the  steamer  SIXINA. 


Special  Items; 

According  to  a  report  received  from  Group  South,  press  reports  reveal 
that  the  British'  Government  requested  the  Turkish  Government  to  permit 
Russian  naval  forces  to  pass  through  the  Dardanelles. 

Naval  Group  South  is  requesting  pertinent  information  .so  that  it 
may  adopt  prompt  countermeasures .   Group  South  recommends  that  the 
Mediterranean  submarines  be  held  in  readiness  in  the  Aegean  Sea 
off  the  entrance  to  the  Dardanelles.   (See  Telegram  1940.) 


IX.   Situation  East  Asia 

According  to  a  U.S.  Navy  Department  report,  U.S.  submarines  sank  3 
Japanese  destroyers  on  4  Jul.  off  the  Aleutians.   A  fourth  destroyer 
on  transport  escort  duty,  was  likewise  sunk  in  the  same  vicinity. 
There  are  no  Japanese  reports  concerning  the  above. 


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l) 


CONFIDENTIAL 
7  Jul.  1942 

X.   Army  Situation; 

1,  Russian  Front: 

Southern  Army  Group; 

The  6th  Army  operations  are  proceeding  without  interruption 
and  according  to  plan.   A  battle  is  in  progress  in  the  outskirts  of 
Voronezh.   The  enemy  is  continuing  to  attack  with  his  tank  forces 
on  the  northern  front . 

Central  Army  Group; 

South  of  Byelev  the  enemy  attacked  with  heavy  tank  forces 
but  was  repulsed.   The .enemy  was  able  to  make  further  slight  gains 
in  the  area  of  Sukhinichi.   Otherwise  only  local  skirmishes. 

Northern  Army  Group : 

Nothing  to  report. 

2,  Finnish  and  Norwegian  Front; 
Nothing  to  report. 

3,  North  Africa: 

Enemy  tank- supported  attacks  against  our  defense  front 
were  repulsed.   On  the  southern  flank  the  5th  Indian  Division 
was  thrown  back  to  the  southeast,  with  heavy  losses.   Our 
reconnaissance  forces,  in  cooperation  with  strong  air  force  unitsx 
prevented  an  encircling  move  by  strong  enemy  forces  on  the  southern 
flank. 


I 


-111- 


CONFIDENTIAL 
8  Jul.  1942 

Items  of  Political  Importance 

Great  Britain: 

The  House  of  Commons  debated  the  question  of  command  over  the  R.A.F. 
Churchill  declared  that  a  joint  Army  and  R.A.F.  training  program  is 
under  way  end  is  being  further  expanded.   Ke  stated  that  the  whole 
series  of  problems  pertaining  to  air-borne  troops  and  to  the  employment 
of  gliders  and  of  paratroops  is  being  studied  as  an  overall  problem 
with  reference  to  combining  these  under  a  single  organization. 

Egypt; 

British  troops  have  taken  over  patrol  duty  at  all  important  traffic- 
junctions,  including  bridges  and  dams. 

U.S.A.; 

The  "Journal  of  Commerce",  an  authoritative  New  York  industrial  pub- 
lication, comments  on  the  current  labor  situation  in  American  shipyards. 
The  authorities  report  that  6  to  14$  of  the  manpower  employed  in  these 
yards  is  lost  due  to  absenteeism.   "Time"  magazine  gives  this  new  epi- 
demic of  passive  resistance,  along  with  the  shortage  of  steel,  as  the 
main  reason  for  the  failure  to  fulfill  the  ship  construction  program. 

Argentina; 

The  Foreign  Minister  conclusively  declared  that  the  RIO  TERCERO  incident 
is  closed.   Argentina  does  not  insist  on  compensation  for  the  vessel, 
since  Germany  lias  given  an  adequate  explanation.  Merchant  vessels 
".eve  been  ordered  to  display  better  markings. 

The  President  of  Argentina  signed  e  decree  ordering  all  vessels  to  stay 
out  of  the  belligerent  zone. 

South  America: 

More  stringent  measures  have  been  adopted  against  Axis  nationals  in 
Costa  Rice,  Colombia,  Peru,  and  Ecuador. 

Japan: 

The  Anglo-American  press  increasingly  pictures  the  reinforcement  of 
Japanese  bases  in  the  Aleutians  as  a  measure  imperilling  the  shipping 
lane  to  Vladivostok. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

No  conference  scheduled  for  8  and  9  Jul.  on  account  of  the  conference 


-112- 


CONFIDENTIAL 
8  Jul.  1942 

of  the  staff  officers  with  the  Naval  Staff. 


Special  Items: 

I.  The  Minister  of  Armaraent  and  Munitions  transmitted  an  extract  from 
the  transcript  of  the  conference  with  the  Fuehrer  on  28  and  29  Jun., 
which  contains  the  following  decisions  relating  to  the  Navy* 

1.  The  Navy  is  to  furnish  10$  of  its  3  million  tons  of  merchant  ship- 
ping to  the  Reich  Commissioner  for  Shipping,  to  be  used  in  operation 
"Wiking". 

2.  Gauleiter  Kaufmann  has  been  empowered  to  take  stock  of  the 
Navy's  merchant  shipping  space  for  the  purpose  of  deciding  jointly 
with  the  Navy  as  to  the  amount  of  shipping  space  that  could  further 
be  spared  for  the  merchant  marine. 

3.  The  Fuehrer  stresses  the  extraordinary  importance  of  operation 
"Wiking",  particularly  with  regard  to  railroad  construction  which  is  of 
vital  significance  for  the  conduct  of  the  war. 

5.   The  Fuehrer  forbids  the  use  of  shipping  space  by  the  Navy  for 
dwelling  purposes  and  hospitals,  except  for  bringing  home  the  wounded. 

20.   The  Fuehrer  is  in  accord  with  the  proposed  plans  for  the  "Hansa" 
program  and  takes  cognizance  of  the  fact  that  both  the  merchant  ship 
repair  and  construction  programs  have  been  integrated  into  the  armament 
program. 

37.   The  Fuehrer  raised  no  objections  against  program  "377"  (dealirg 
with  the  production  of  munitions). 

76.  Permanent  fortifications  are  to  be  built  along  the  Atlantic 
coast  only  where  they  serve  to  defend  the  most  vital  points.   In  such 
cases,  contrary  to  the  stand  taken  hitherto,  another  belt  of  forti- 
fications is  to  be  erected. 

77.  Temporary  fortifications  may  be  erected  along  the  less  im- 
portant stretches  of  the  coast.   However,  TWie  Channel  coast  is  to  be 
protected  almost  exclusively  by  permanent  fortifications. 

78.  The  Fuehrer  issued  e  special  order  that  all  armor  plate  in- 
tended for  naval  and  other  ship  construction  wherever  stored,  is  to 
be  used  for  fortifications. 

II.  Navel  Group  South  transmits  a  renewed  request  from  the  Commander 
in  Chief,  Armed  Forces,  Southeast,  asking  the  assignment  of  the 
Spanish  steamers  plying  in  the  Aegean  Sea  to  the  transport  of  supplies 
to  North  Africa.   The  Sea  Transportation  Branch,  Naval  Staff  Quarter- 


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CONFIDENTIAL 
8  Jul.  1942 

master  Division,  was  obliged  to  refuse  this  request,  since  this  would 
jeopardize  the  current  German-Spanish  negotiations  for  the  construction 
and  purchase  of  other  Spanish  ships.   The  High  Command  Navy  is  at 
present  carrying  on  negotiations  in  Madrid,  to  expedite  getting  control 
of  the-  ships  already  purchased  in  order  to  release  more  German,  Italian 
and  Greek  shipping  space  for  the  shipment  of  supplies  to  Africa. 

III.  As  the  Naval  Staff  has  learned  by  word  of  mouth  from  the  Army 
General  Staff,  the  Fuehrer  ordered  preparations  for  the  crossing  of  the 
Strait  of  Kerch  by  10  Aug.   The  Navel  Staff  informs  the  Armed  Forces 
High  Command,  Operations  Staff,  and  the  Army  High  Command,  General 
Staff,  with  copy  to  Navel  Group,  South,  concerning  the  navel  forces 
which  the  Navy  will  make  available  to  assist  in  the  operation,  and 
their  potential  use,  and  proposes  a  suitable  plan  of  organization. 

Copy  of  corresponding  Telegram  l/Skl  I  op  1290/42  Gkdos.  Chefs,  in  War 
Diary,  Part  C,  Vol.  XIV  a. 

IV.  a.   The  5th  PT  Boat  Flotilla  is  expected  to  be  ready  for  assign- 
ment to  duty  by  the  end  of  July.   The  Naval  Staff  orders  that  it  be 
made  available  for  commitment  in  the  Channel  and  shelves  the  original 
plan  of  employing  it  in  Norway. 

For  corresponding  directive  to  Naval  Group  West,  Navel  Group  North,  to 
the  Fleet  Command  and  to  the  Commander  of  PT  boats  see  Telegram  1145. 

b.   In  answer  to  a  corresponding  inquiry  from  the  Naval  Staff  (see  War 
Diary,  24  Jun. )   Group  North  reports  that, in  view  of  the  completely 
altered  situation  in  the  North  Sea,  it  is  planned  to  transfer  the  22nd 
Mine  Sweeper  Flotilla  to  Norway  only  when  it  is  fully  ready  for  assign- 
ment; the  4th  Mine  Sweeper  Flotilla  must  be  withdrawn  from  Norway  to 
undergo  repairs  in  Germany.   For  more  detailed  reasons  making  it  in- 
dispensable that  the  flotilla  remain  in  the  North  Sea,  see  Telegram 
1620. 

The  Naval  Command  gives  Its  assent  to  the  reported  plan. 

V.  The  Foreign  Office  transmits  the  text  of  two  telegrams  received 
from  the  German  Embassy  in  Paris,  concerning  the  French  warships  in 
Alexandria.   The  first  of  these  telegrams  contains  the  text  of  the 
French  rejection  of  the  American  note  of  3  Jul.,  while  the  second  one 
repeats  Laval's  verbal  declaration  that  the  diplomatic  phase  is  hence- 
forth terminated  and  that  the  entire  series  of  notes  will  be  published 
as  soon  as  the  first  shot  is  fired.   Darlan  fully  supported  the  course 
adopted  by  Laval  and  expressed  the  hope  that  the  supply  situation  will 
make  possible  the  conquest  of  Egypt. 

Copy  of  the  Telegram  as  per  l/Skl  16610/42  Gkdos.  in  War  Diary,  Part  C, 
Vol.  XVI. 


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CONFIDENTIAL 
8  Jul.  1942 

VI.   Information  forwarded  to  the  Naval  Attache  at  Tokyo  concerning  the 
estimate  of  the  situation  which  had  "been  transmitted  to  Admiral  Nomura 
during  the  conference  at  the  end  of  June,  as  per  l/Skl  lb  16239/42  Gkdos., 
in  War  Diary,  Part  C,  Vol.  XV. 


Situation  8  Jul.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

South  Atlantic; 

According  to  radio  monitoring,  the  WARSPITE,  which  had  left 
Gibraltar  on  24  Jun.,  was  near  convey  W'S  20  in  the  area  of  Freetown 
on  6  Jul . 

Indian  Ocean; 

According  to  an  intelligence  report  received  via  Lourenco 
Marques,  since  1  Jul.  single  ships  leave  Durban  daily  for  the  Red  Sea 
with  troops  and  material  destined  for  Egypt.   A  total  of  250,000  men  is 
to  he  drawn  from  the  Middle  East  and  assembled  in  Egypt.   On  2  Jul.,  an 
aircraft  carrier  was  anchored  for  12  hours  in  Durban.   British  sub- 
marines are  operating  out  of  Mombasa. 

According  to  another  intelligence  report,  confirmation  has  been  received 
of. the  fact  that  the  war  supplies  which  were  on  the  way  to  India  have 
been  diverted  to  Egypt  while  en  route.   At  the  same  time  reports  were 
received  from  India  to  the  effect  that  troops  ere  being  shifted  from 
the  east  coast  to  embarkation  ports  on  the  west  coast.   The  exposure 
of  the  east  coast  for  a  brief  period  is  considered  harmless,  since  the 
Japanese  are  not  expected  to  launch  en  attack  before  the  end  of  the 
monsoon  period.   For  details  see  Telegram  1801. 

According  to  a  Swiss  radio  report  from  Mozambique,  1  Greek  and  1  Swedish 
steamer  were  sunk  south  of  the  Angoche  Islands. 

2.  Own  Situation; 

The  Naval  Attache  at  Tokyo  transmits  a  detailed  extract  from 
the  DOGGERBANK  War  Diary.  Copy  as  per  l/Skl  16901/42  Gkdos.,  in  War 
Diary,  Part  C,  Vol.  I. 

The  skill  and  composure  displayed  by  the  Commander, 
Captain  Schneidewind,  during  his  encounter  with  the 
enemy  cruiser  and  raider  deserve  very  specie] 
commendation.   The  Neval  Staff  recommends  that  he  be 
given  the  German  Cross  in  gold. 


-115- 


CONFIDENTIAL 
8  Jul.  1942 

The  evaluation  of  Individual  experiences  will  be  taken  up  immediately. 

Inquired  of  ship  w23w  by  Radiogram  1032  whether  it  will  be  possible  to 
have  the  CHARLOTTE  SCHLIEMANN  go  through  her  extended  waiting  period  un- 
til the  end  of  August  with  subsequent  run  to  Japan,  without  subjecting 
ship  and  crew  to  extreme  strain. 

Sailing  orders  to  the  prize  ship  MADRONO  via  Radiogram  2211.   The  ship 
must  expect  to  call  at  Batavia. 

The  Naval  Command  estimates  that  the  DOGGERBANK  will  reach  point  "Rose" 
on  26  Jul.  Corresponding  communication  to  DOGGERBANK  by  Radiogram 
1241. 

The  REGENSBURG  reached  Yokohama  on  7  Jul.   Information  to  that  effect 
sent  to  ship  "10"  and  to  all  vessels  in  foreign  waters  by  Radiogram 
1945. 

Special  citation  to  the  REGENSBURG  from  the  Naval  Staff,  for  the  ex- 
cellent manner  in  which  she  carried  out  supply  missions.  Message  passed 
by  Telegram  2300,  via  the  Naval  Attache  at  Tokyo. 

Communication  to  the  Naval  Attache  in  Tokyo  concerning  the  probable 
arrival  of  the  MADRONO  at  point  "l"  of  route  "Gelb"  on  9  Jul.  and  in- 
structions that,  if  consent  of  Japanese  Navy  is  secured,  Batavia  is  to 
be  considered  the  intermediate  port  of  call  en  route  to  Japan.   By  Tele- 
gram 0010. 

Report  on  the  enemy  situation  and  destruction  of  convoy  PQ  17.   By  Radio- 
grams 1510  and  2123. 


II.   Situation  West  Area 

1.   Enemy  Situations 

According  tc  air  reconnaissance,  20  steamers  headed  northeast 
were  located  in  the  evening  between  Dungeness  and  Beachy  Head. 

Brisk  ship  traffic  in  the  waters  around  the  Island  of  Wight.   In  the 
forenoon,  20  steamers  and  1  destroyer  were  sighted  240  miles  west 
northwest  of  Brest,  on  a  course  north-northwest. 

2.   Own  Situation; 

Atlantic  Coast; 

Six  ground  mines  were  swept  by  mine -exploding  vessels  and  a 
mine  sweeper  flotilla.   The  Loire  was  opened  to  shipping. 


r 


-116- 


CONFIDENTIAL 
8  Jul.  1942 

Channel  Coast; 

On  7  Jul.,  army  coast  artillery  fired,  at  a  range  of  1,800  ra, 
on  what  appeared  to  be  an  enemy  submarine  sighted  off  the  Somme  estuary. 
Group  Vv'est  believes  that  this  was  a  case  of  erroneous  observation. 

At  0255  on  8  Jul.,  in  retaliation  for  the  shelling  of  our  convoy  off 
Gris  Nez,  the  "Todt"  and  the  "Grosser  Kurfuerst"  batteries  and  the 
long-range  "Guenther**  battery  shelled  a  British  coastal  battery-near 
Margit  Cliff.   The  enemy  ceased  firing  as  soon  as  we  opened  fire.   On 
the  night  of  8  Jul.  eight  boats  of  the  2nd  PT  Boat  Flotilla  were  sent  on 
a  torpedoing  mission  and  2  boats  lnid  mines  while  being  transferred 
from  Boulogne  to  Cherbourg. 


III.   North  Sea j  Norway,  Arctic  Ocean 
North  Sea: 

1.  Enemy  Situation; 

In  the  evening,  air  reconnaissance  sighted  44  southbound 
steamers  off  Peterhead;  15  steamers  were  sighted  entering  The  Wash. 

2.  Own  Situation; 

On  the  night  of  7  Jul.,  seven  enemy  planes  unsuccessfully 
attacked  mine-exploding  vessel  "11"  north  of  Schierraonnikoog. 

A  ground  mine  was  swept  north  of  Schiermonnikoog.   In  the  afternoon, 
9  Spitfires  approached  Ostkapelle  on  Walcheren.   A  heavy  raid  was 
staged  in  the  evening  in  the  northwestern  coastal  area,  centering  on 
Wilhelmshaven. 

Group  North  requests  that  a  very  vigorous  protest  be  lodged  with  the 
Swedish  Government  against  careless  routing  of  Swedish  ships  operating 
under  license,  citing  the  loss  of  steamers  ARGENTINA  and  UDDEHOLM,  and 
pointing  out  that  the  location  of  mine  fields  Is  thereby  betrayed,  and 
also  that  they  are  weakened  by  detonations.   It  should  also  be  pointed 
out  that  there  is  suspicion  of  a  possible  connection  between  the 
deliberately  wrong  course  and  the  attempt  of  the  Norwegian  ships  to 
break  out  of  Goeteborg  in  order  to  cross  the  mined  area.  Group  North 
holds  that  while  there  is  justification  for  the  assumption  that  both 
ships  struck  German  mines,  it  is  necessary  to  investigate  whether  these 
were  not  enemy  mines,  since  on  5  Jul.  the  5th  Air  Force  reported  a 
submarine  submerging  in  quadrant  AN  3461.   It  was  not  our  submarine. 
(See  Telegram  1234. )  Further  information  concerning  representations 
made  to  Sweden  in  War  Diary,  Part  C,  Vol.  VIII. 


-117- 


CONFIDENTIAL 
:  U2 

the  recommendation  of  the  Naval  Staff,  provision  is  being  made  for 
Swedish  ships  anchored  in  Kristiansand  -  South  to  sail  on  a 
westerly  course  out  of  Lindesnes  up  to  the  present  Swedish  route. 

Norway: 

On  7  Jul.  an  enemy  air  raid  was  carried  out  on  a  convoy  in 
quadrant  AC  8461.   The  Norwegian  steamer  ELSE  MARIE  was  sunk  with  2,760 
tons  of  ore  aboard.   Two  Russian  planes  attacked  another  convoy  in 
quadrant  AC  7455  and  a  third  convoy  was  attacked  on  the  morning  of  8 
Jul.  in  quadrant  AC  7296.   In  both  cases  the  enemy  was  unsuccessful. 
Enemy  air  activity  on  the  afternoon  of  7  Jul.  in  the  area  of  Trondheim 
and  3odoe,  as  well  as  northwest  of  Bergen.   Ship  movements  according  to 
plan. 

Arctic  Ocean; 

1.  Enemy  Situation: 

At  0505,  east  of  the  Faroe  Islands,  air  reconnaissance  { 

sighted  a  force  consisting  of  an  aircraft  carrier,  1  battleship,  3 
heavy  cruisers  and  8  destroyers,  headed  on  a  southerly  mean  course.  At 
1344  northwest  of  the  Orkney  Islands  a  force  was  sighted,  likewise 
headed  south,  and  consisting  of  1  aircraft  carried,  1  battleship,  2 
heavy  cruisers  and  6  destroyers.   Two  additional  destroyers  were  located 
northeast  of  the  latter  force.   There  is  no  doubt  that  both  reports  re- 
fer to  the  same  convoy  despite  the  fact  that  there  is  a  difference  in 
the  number  of  heavy  cruisers  reported. 

2.  Own  Situation: 

In  view  of  an  unfavorable  turn  in  the  weather  and  wide- 
spread fog  on  7  Jul.,  the  Admiral  Arctic  Ocean  ordered  operations  against 
the  remnants  of  convoy  PQ,  17  to  cease  at  noon  on  9  Jul.  -The  sub- 
marines are  to  start  back  over  the  route  of  the  convoy, 

By  way  of  a  further  success,  submarine  U  "255"  reported  the  sinking  of 

another  steamer  of  6,069  GRT.   All  submarines  report  extensive  fog  at 

the  entrance  to  the  White  Sea  making  it  unlikely  tha4:  any  remaining 

steamers  or  damaged  vessels  would  be  encountered.   The  operation  is, 

therefore,  to  be  considered  at  an  end.  ^ 

The  Naval  Staff  has  received  no  further  reports  of  successes  scored  by 
the  Air  Force. 

Group  North  received  the  following  telegram  from  General  Dietl: 
"warmest  congratulations  0n  the  great  successes  scored  by  the  sub- 
marines against  enemy  convoy.   The  Commanding  General,  20th  Mountain 
Corps  and  all  the  troops  thank  you  very  much  for  the  decisive  help  and 
relief  which  the  Navy  is  bringing  to  the  Army  in  the  Ea3t  and  send 
comradely  greetings  to  the  brave  submarine  crews". 


-118- 


CONFIDENTIAL 
8  Jul.  1942 

The  Fleet  combat  forces  reached  Narvik  by  0300  as  planned.   The 
LUETZOW  is  due  to  be  transferred  to  Trondheim  on  the  morning  of  9  Jul. 

The  Commanding  Admiral,  Fleet  recommends  that  the  reason  for  dis- 
continuing operation  "Roesselsprung"  be  made  public  as  follows: 

"Heavy  enemy  force,  including  aircraft  carrier  escorting  the  convoy, 
was  forced  to  turn  away  when  our  heavy  group  was  sent  into  action. 
This  facilitated  a  submarine  and  aircraft  attack  on  the  convoy.   The 
mission  of  our  heavy  ships  in  the  attack  was  fully  accomplished". 

The  Naval  Staff  doubts  that  such  an  explanation 
will  be  very  convincing  to  outsiders,  particular- 
ly to  the  air  force  and  submarine  arm. 

See  Telegram  2349  for  directive  of  Group  North  to  the  Admiral,  Arctic 
Ocean  and  to  the  Commanding  Admiral,  Fleet  concerning  operational  sub- 
ordination of  all  Fleet  combat  forces,  including  the  Commanding  Ad-  • 
miral,  Cruisers,  to  the  Commanding  Admiral,  Fleet,  as  long  as  the 
latter  remains  in  Narvik. 

Directive  is  in  accord  with  the  view  of  the  Navel  Staff. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

According  to  radio  monitoring,  8  to  10  submarines  were  at 
sea.   Brisk  mine-sweeping  and  patrol  activity  in  the  Gulf  of  Finland. 
In  the  forenoon  of  8  Jul.,  a  number  of  radio  messages  concerning  the 
occupation  of  the  island  of  Someri  were  decoded.   Our  air  reconnais- 
sance disclosed  that  Russian  PT  boats  have  landed  invasion  troops  on 
Someri  Island. 

According  to  a  report  from  the  Naval  Attache  at  Stockholm,  the  Swedish 
Naval  Staff  has  definitely  ascertained  that  2  Russian  submarines  wer.e 
off  the  coast  near  Trelleborg  at  0100  on  4  Jul.  One  of  these  two 
submarines  is  said  to  have  been  located  a  few  hours  later  at  the 
southern  entrance  to  the  Sound,  off  Falsterbo.   On  8  Jul.. Swedish 
air  reconnaissance  sighted  2  surfaced  submarines  between  Landsort  and 
the  northern  tip  of  Gothland. 

2.  Own  Situation: 

On  the  night  of  7  Jul.  there  was  a  submarine  alert  east  of 
Rixhoeft  Cape.   One  of  our  submarines  carried  out  a  chase  by  means  of 
hydrophone  location.   The  German  steamer  0,  CORDS  was  sunk  in  Swedish 
territorial  waters  by  an  enemy  submarine.   Troop  and  prisoner  trans- 
ports left  Danzig  for  Finland  on  the  evening  of  7  Jul. 


-119- 


CONFIDENTIAL  . 
8  Jul.  1942 

According  to  a  communication  from  the  Commander,  Mine  Sweepers,  Baltic 
Sea,  a  Russian  landing  attempt  was  staged  on  Someri  Island  on  the 
night  of  7  Jul.   About  a  hundred  Russians  succeeded  in  gaining  a  foot- 
hold on  the  eastern  part  of  the  island.  Mine  sweeper  "17"  was  sent  in- 
to action  off  Someri  to  furnish  artillery  support  to  the  Finns  and  was 
engaged  by  enemy  PT  boats  and  planes.  Having  exhausted  her  ammunition 
and  being  slightly  damaged  by  a  bomb  hit,  the  mine  sweeper  arrived  at 
Kotka  at  1500.   At  1800,  mine  sweeper  "19"  and  a  net  tender  left  this 
port. 

The  27th  Air  Force  laid  mine  field  "Nashorn  X".   Sweeping  operations 
have  been  in  part  suspended  due  to  weather  conditions. 

See  Telegram  2130  for  directive  of  Group  North  to  the  Commander,  Mine 
Sweepers,  Baltic  Sea  concerning  the  laying  of  mine  fields   "Lachs  I" 
to  "VII"  and  the  strengthenirg  of  the  "Seeigel"  mine  field,  east  of 
the  present  mine  fields,  for  the  defense  of  Hogland  and  Tytaersaari 
against  enemy  raids. 

See  Telegram  2400  for  directive  of  the  Commander  in  Chief,  Air, 
Operations  Staff  to  the  Director  of  Training,  Air  Force^to  the  1st 
Air  Force,  and  to  the  Central  Air  Force  Command,  with  copy  to  the 
Naval  Staff,  Operations  Division,  concerning  transmittal  of  information 
to  our  planes  operating  over  the  Baltic  Sea.   It  is  stated  that  Swedish 
naval  and  air  forces  carry  out  regular. day  and  night  reconnaissance 
against  submarines  between  Landsort,  the  northern  tip  of  Oeland,  and 
Gothland . 

The  1st  Air  Force  is  of  the  opinion  that  enemy  shipping  on  Lake  Ladoga 
could  be  effectively  attacked  only  with  the  assistance  of  the  Air  Force, 
and  the  necessary  cooperation  of  air  combat  forces  with  the  air  force 
ferry  unit  makes  the  latter' s  subordination  to  Finnish  command  appear 
inexpedient. 

For  corresponding  report  of  Group  North  to  the  Naval  Staff  see  Telegram 
2358. 


V.   Submarine  Warfare 

1.   Enemy  Situation: 

According  to  radio  monitoring,  the  following  ships  are  believed 
to  be  in  British  home  waters:   4  or  5  battleships,  3  or  4  aircraft 
carriers,  8  heavy  and  6  light  cruisers. 

The  usual  reports  of  sighted  submarines  have  come  in  from  the  American 
east  coast.   In  the  evening  and  during  the  night  of  6  Jul.  increased 
air  patrol  activity  was  noted  in  the  Caribbean  Sea. 


-120- 


CONFIDENTIAL 
8  Jul.  1942 

2.   Own  Situation; 

For  operation  against  the  remnants  of  convoy  Pty  17,  see 
Situation  Arctic  Ocean.   Supplement  to  Submarine  Situation  in  V/ar  Diary, 
Part  B,  Vol.  IV. 

There  is  reason  to  fear  that  submarine  U  "502",  which  should  be  on  her 
way  back  to  the  Bay  of  Biscay,  has  fallen  victim  to  an  enemy  air  attack. 

While  on  the  way  to  the  north  Atlantic,  submarine  U  "86"  was  heavily 
bombed  in  quadrant  BE  68  and  her  diving  ability  is  impaired. 

The  enemy  will  intensify  in  every  way  his  anti- 
submarine measures  to  the  extent  that  he  recognizee 
the  deadly  effect  of  our  continued  warfare  against 
his  merchant  shipping.   We  must  reckon  with  this  fact 
when  adopting  countermeasures  before  we  are  made  to 
feel  keenly  the  effect  of  submarine  losses  at  sea,  in 
the  harbors,  and  in  the  shipyards. 

From  the  area  around  the  coast  of  Florida,  submarine  U  "571 "  reported 
sinking  a  10,000  GRT  steamer  in  a  northbound  convoy  and  the  tanker  J.  A. 
MOFFETT,  JR.  (9,788  GRT). 

Submarine  U  "67"  sank  1  steamer  and  the  tanker  PAUL  H.  BARWOOD  in  the 
Gulf  of  Mexico.   A  total  of  10,610  GRT. 

The  Commanding  Admiral,  Submarines  informs  the  submarines  that  they 
are  to  expect  a  steady  stream  of  neutral  traffic  as  well  as  Brazilian 
diplomatic  exchange  ships  in  the  Caribbean  Sea  and  in  the  Gulf  of 
Mexico,  outside  of  the  blockaded  area. 

Three  submarines  are  operating  In  the  eastern  Mediterranean  against  a 
convoy  which  has  been  sighted  in  quadrant  CP  82,  headed  in  an  easterly 
direction.  No  success  scored  thus  far. 

Special  Item: 

The  Commanding  Admiral,  Submarines  plans  to  employ  about  4 
submarines  in  carrying  out  an  operation  against  heavy  enemy  traffic 
(particularly  against  refrigerating  ships)  outside  of  the  3-mile  zone 
immediately  off  the  mouth  of  the  La  Plata  on  about  the  latitude  of  the 
"Banco  Ingles".  The  narrow  fairways,  along  with  the  tidal  conditions 
which  affect  some  vessels,  eliminate  lengthy  searching  and  offer  the 
prospect  of  a  rapid  and  hence  great  success.   This  advantage  is  en- 
hanced by  the  fact  that  there  is  already  the  possibility  of  scoring 
successes  while  en  route  to  the  operational  area  through  waters  which 
are  presumably  also  frequented  by  enemy  traffic. 


-121- 


CONFIDENTIAL 
8  Jul.  1942 

The  Commanding  Admiral,  Submarines  Is  of  the  opinion  that  Argentine  ship- 
ping will  not  be  adversely  affected  since  there  are  appropriate  ways  of 
steering  clear  of  wrecks  v\hich  may  possibly  be  lying  in  the  shallows. 

The  Naval  Staff  is  investigating  the  matter. 


VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

During  the  night  of  8  Jul.  heavy  enemy  forces  flew  over  the 
northwestern  coastal  area,  with  Wilhelmshaven  as  the  center  of  attack. 
No  reports  of  damage  have  as  yet  been  received. 

2.  Mediterranean  Theater: 

Actions  against  Malts  and  In  support  of  the  African  Panzer 
Army,  centering  on  our  right  flank. 

3.  Eastern  Front: 


Our  actions  centered  on  the  area  of  the  4th  Air  Force.   The 
5th  Air  Force  renewed  its  attack  on  Murmansk  with  observed  effect.   The 
two  air  forces  reported  a  total  of  48  enemy  planes  shot  down  and  25 
destroyed  on  the  ground. 


VII.   Warfare  in  the  Mediterranean  and  In  the  Black  Sea 

1.  Enemy  Situation; 
Mediterranean: 

At  1400,  3  cruisers  (1  in  dock),  the  MAIDSTONE,  4  destroyers 
(2  in  dock),  6  submarines  (2  in  dock),  2  corvettes,  1  auxiliary  cruiser, 
24  steamers,  9  tankers,  and  85  planes,  in  addition  to  the  EAGLE  were 
located  in  Gibraltar.  0" 

At  2215  one  of  our  submarines  located  a  convoy  consisting  of  2  steamers, 
3  patrol  vessels,  and  1  PT.boat  in  the  eastern  Mediterranean,  4V  miles 
east-northeast  of  Port  Said  end  heading  east.   (See  Submarine  Warfare.) 

2.  Own  Situation: 

Mediterranean: 

Enemy  air  raid  on  Messina  on  the  night  of  7  Jul.   Fourteen 
Italian  submarines  were  at  sea  on  8  Jul. 


-122- 


CONFIDENTIAL 

8  Jul.  1942 

The  3rd  PT  Boat  Flotilla  was  obliged  to  dismiss  2  boats  which  had  used 
up  the  running- time  for  their  engines.  They  left  for  Augusta  by  way 
of  Suda. 

3.  Transport  of  Supplies  to  North  Africa: 

The  motor  ship  ANKARA  left  Benghazi  for  Tobruk.  The  steamers 
PONTINIA,  ISEO,  TRIPOLINO  and  3  auxiliary  sailing  vessels  arrived  in 
Tobruk.  The  steamer  JAEDJOER  and  3  naval  barges  are  en  route  to  Tobruk. 
The  steamers  STURLA  and  BROOK  and  1  naval  barge  are  en  route  to'Marsa 
Matruh.  In  addition  2  transport  submarines  are  en  route  to  Tobruk. 
At  2100  the  tanker  ALBERTO  FASSIO  and  at  2400  the  Siena  convoy  left 
Suda  for  Tobruk. 

Discharged  during  the  day  at  Marsa  Matruh  310  tons;  at  Tobruk  2,001 
tons. 

4.  Special  Items: 

a.   See  Telegram  2130  for  directive  of  the  Quartermaster  in 
the  Operations  Staff,  Armed  Forces  High  Command  concerning  the 
creation  of  an  Athens  post  of  the  German  General  at  the  Italian  Armed 
Forces  Headquarters,  North  African  Transport  Section,  to  take  charge  of 
shipping  and  air  transport  to  North  Africa  by  way  of  Greece. 


b.   Total  turnover  in  Benghazi: 
In  June  (figures  for  May  in  parentheses)  32,412  tons  (61,610  tons) 
German  share  of  this  total  22,703  tons  (38,564  tons) 


These  figures,  unfortunately,  reveal  that'  large  ship  transports  to 
North  Africa  have  decreased. 

5.   Area  Naval  Group  South: 

Aegean  Sea: 

Nothing  to  report. 

Black  Sea: 

,  Enemy  Situation: 

No  new  information. 

Own  Situation: 

Mine-sweeping  operations  and  escort  duty  according  to  plan. 
On  the  night  of  6  Jul.  Taganrog  was  shelled  from  land  and  sea  and 
raided  from  the  air.  The  naval  battery  suffered  no  damage. 

With  reference  to  the  supposed  British  request  that  the  Turkish  govern- 
ment permit  the  passage  of  the  Russian  Black  Sea  Fleet  through  the 
Straits,  as  reported  on  7  Jul.  by  Group  South,  the  Naval  Attache  at 
Istanbul  informs  that  nothing  is  known  about  such  a  request,  which 
would,  at  any  rate,  definitely  be  rejected  by  the  Turkish  government. 


-  123  - 


CONFIDENTIAL 
8  Jul.  1942 

The  Naval  Staff  also  holds  that  the  situation  is  unchanged  in  this 
respect.   There  is  no  likelihood  that  Turkey  will  open  the  Dardanelles 
to  Russian  naval  forces.   Turkey  gave  sufficiently  clear  assurances  to 
that  effect  at  a  time  when  the  German  military  situation  was  not  as 
favorable  as  it  is  today.  Moreover,  events  in  the  Black  Sea  theater 
have  not  yet  reached  a  point  where  the  enemy  could  plan  to  send 
Russian  fleet  forces  through  the  Dardanelles. 

For  corresponding  communication  to  Group  South  along  with  confirmation 
that  the  standing  restrictions  concerning  Turkish  territorial  waters 
remain  in  full  force,  see  Telegram  1901. 


VIII.   Situation  East  Asia 
Nothing  to  report. 


< 


IX. Army  Situation 

Russian  Front: 

Southern  Army  Group; 

The  operations  of  Army  Groups  A  and  B  (Von  Weichs  and  Bock)  are 
proceeding  according  to  plan.   Considerable  ground  has  been  gained. 
Advancing  in  a  southeasterly  direction,  the  southern  flank  of  the  6th 
Army  crossed  the  river  Krasnaya,  reaching  Byeloy  Kolodez  and  Aidar. 
Enemy  pressure  is  continuing  against  the  northern  flank  south  of 
Yelets  and  near  Livny.  However,  all  attacks  were  repulsed,  and  the 
enemy  suffered  heavy  losses. 

Central  Army  Group: 

Further  successes  were  scored  and  considerable  enemy  forces  were 
partially  encircled  in  battles  waged  in  the  vicinity  of  Byelev, 
Sukhinichi,  Byeloi,  Kholm  and  north  of  the  Smolensk  —  Vyazma  road. 
These  battles  were  waged  as  part  of  current  operations  to  clear  the 
situation  in  the  rear  areas  of  the  sector  held  by  this  Army  Group. 

Northern  Army  Group: 

Enemy  attacks  were  halted  south  of  Staraya  Russa. 


-124- 


CONFIDENTIAL 
8  Jul.  1942 

Finnish  and  Norwegian  Front; 

No  noteworthy  activity. 

North  Africa; 

In  the  middle  sector  of  the  front  the  enemy  staged  a  rather 
weak  harassing  attack  and  was  repulsed.  Forces  operating  on  the 
southern  wing  won  the  northern  rim  of  the  Qattara  Depression  and 
threw  the  enemy  back  to  the  east. 


-125- 


CONFIDENTIAL 
9  Jul.  1942 

Items  of  Political  Importance 

Italy: 

An  article  in  the  periodical  "Impero  Italiano"  describes,  the 
fundamental  structure  of  the  Italian  "greater  living  space",  which 
is  to  comprise  all  Latin  nations  by  virtue  of  their  blood  kinship 
and  all  other  Mediterranean  or  Mediterranean-oriented  nations  on  the 
"basis  of  their  mutual  geopolitical  and  geoeconomic  interests.   It 
embraces  no  fewer  than  530,000,000  people  in  Europe,  the  Near  East, 
North  Africa,  and  South  as  well  as  Central  America,  i.e.  1/4  of 
the  earth's  population  distributed  over  38.5$  of  the  earth's  area. 
The  article  also  voices  the  demand  for  inclusion  of  all  the  main 
African  territories!   Further  details  in  Political  Review  No.  158, 
Par.  3. 

It  is  impossible  to  surpass  the  political  acumen 
exhibited  in  utterances  of  this  type. 

Arabia: 

The  Saudi  Arabian  Legation  in  London  has  again  denied  all  rumors 
according  to  which  all  Saudi  Arabian  airfields  and  means  of  com- 
munication are  to  be  ceded  to  the  British  and  the  Americans. 

U.S.A. : 

According  to  a  United  Press  release,  the  United  Nations  are  planning 
,to  combine  all  of  their  land,  sea,  and  air  forces  in  all  theaters 
of  war  under  a  single  supreme  commander,  possibly  General  Marshall. 


Special  Items: 

I.  A  compilation  of  all  enemy  reports  intercepted  by  radio  de- 
coding and  monitoring  up  to  5  Jul.  is  in  the  radio  intelligence 
reports  of  the  Naval  Staff  Communications  Division,  Communications 
Intelligence.  Branch. 

See  Appendix  2  to  the  report  of  the  radio  monitoring  section,  with 
a  diagram  showing  enemy  movements  in  the  Arctic  Ocean  area  from 
29  Jun.  to  6  Jul.  (PQ  17). 

II.  Concerning  the  Strengthening  of  Defense  Measures  in  the  West. 

Fuehrer  Directive  as  per  OKW/W.F.St.  551213/42  Gkdos.  Chefs., 
1/Skl  1296/42  Gkdos.  Chefs.: 

1.   Our  rapid  and  great  victories  may  place  Great  Britain 
before  the  alternative  of  either  staging  a  large-scale  invasion 


-126- 


CONFIDENTIAL 

9  Jul.  19^2 

with  the  object  of  opening  a  second  front,  or  seeing  Russia 
eliminated  as  a  political  and  military  factor.  It  is  therefore 
highly  probable  that  enemy  landings  will  shortly  take  place  in 
the  area  of  the  Commanding  General  Armed  Forces,  West.  The  in- 
dications in  detail  are  as  follows: 

a.  An  increasing  number  of  statements  from  agents  to 
that  effect,  and  other  data  obtained  by  the  Intelligence  Service. 

b.  Heavy  concentration  of  ferrying  vessels  along  the  t 
southern  coast  of  England. 

c.  Holding  back  of  the  R.A.P.  during  the  last  few  days. 

2.  The  following  areas  are  to  be  regarded  as  particularly 
threatened : 

a.  In  the  first  place,  the  Channel  coast,  the  area 
between  Dieppe  and  Le  Havre,  and  Normandy,  since  these  sectors  can 
be  reached  by  enemy  fighter  planes  and  also  because  they  lie  within 
range  of  a  large  portion  of  the  ferrying  vessels. 

b.  Next,  the  southern  part  of  the  Netherlands  coast 
and  Brittany. 

c.  The  main  transportation  routes,  airfields,  and  staff 
headquarters  are  In  particular  danger  from  paratroop  and  air-borne 
units  as  well  as  from  sabotage. 

3.  I  therefore  order  that  the  following  measures  be  carried 

out  immediately: 

a.  The  Army  General  Staff  is  to  bring  up  the  SS  "Reich" 
Division,  the  SS  "Adolf  Hitler"  Division,  and  the  SS  Motorized 
Command;   the  transfer  of  1  infantry  regiment  to  Denmark  is  to  be 
postponed. 

b.  The  Chief  of  Army  Equipment  and  Commanding  General 
of  the  Replacement  Army  Is  to  organize  three  "Walkuere  II "  units 
and  transfer  them  to  the  Commanding  General  Armed  Forces,  West. 

c.  The  Commanding  General  Armed  Forces,  West  is  charged 
with  the  security  of  railroad  lines  and  with  measures  of  reprisal. 

4.  By  agreement  with  the  Commanding  General  Armed  Forces, 
West,  the  Air  Force  will  gather  all  available  forces  of  the  7th 
Airborne  Division  and  of  the  Goering  Brigade  in  their  assembly  areas 
and  form  them  into  units  for  immediate  commitment;   the  Air  Force 
will  also  transfer  to  France  two  bomber  groups  from  the  eastern 
reserves  of  the  Commander  in  Chief,  Air  Force  as  per  the  latter 's 
recommendation. 


-  127  - 


CONFIDENTIAL 
9  Jul.  1942 

5.  The  Army  General  Staff,  the  Commander  in  Chief,  Air 
Force,  the  Commanding  General  Armed  Forces,  West,  and  the  Chief  of 
Array  Equipment  and  Commanding  General  of  the  Replacement  Army  will 
report  to*  me  daily  at  0800  tnrough  the  Armed  Forces  High  Command, 
Operations  Staff  tne  progress  with  regard  to  measures  under  para- 
graphs 3  and* 4.   These  reports  will  set  forth  the  state  of  affairs 
as  of  1900  at  the  close  of  the  previous  day. 

6.  In  the  event  of  an  enemy  landing  I  personally  will  pro- 
ceed to  the  West  and  assume  charge  of  operations  from  there. 

Naval  Staff  Bend6  copies  of  the  directive,  par.  1  to  5,  immediately 
by  courier  to  Groups  West  and  North*   Group  West  receives  telegraphic 
instructions  to  obtain  information  on  these  orders  directly  from 
the  Commanding  General  Armed  Forces,  West,  and  to  make  sure  that 
the  Commanding  Admiral,  Submarines  is  likewise  informed. 


Situation  9  Jul.  1942 
I.   War  in  Foreign  Waters 
Nothing  to  report. 


II.  Situation  West  Area 

1.  Enemy  Situation; 

Southeast  of  Beacny  Head,  air  reconnaissance  observed  in 
the  evening  a  convoy  consisting  of  25  steamers,  1  cruiser,  8 
destroyers,  3  PT  boats,  and  3  corvettes  on  a  70°  course;  and  south- 
west of  Milford,  apparently  coming  into  port,  a  convoy  of  20  steamers, 
6  patrol  vessels,  and  1  cruiser. 

2.  Own  Situation: 

Atlantic  Coast: 

Six  mines  were  swept  from  mine  field  near  point  "Herz 
452".  One  mine,  type  -T3,  was  salvaged.  It  is  believed  that  these 
mines  were  planted  by  a  submarine. 

Channel  Coast: 

Complete  success  was  achieved  by  the  boats  of  the  2nd 
PT  Boat  Flotilla  in  torpedoing  missions  on  the  nignt  of  8  Jul., 


-128- 


CONFIDENTIAL 


9  Jul.  1942 


witn  tne  assistance  of  preliminary  and  combat  reconnaissance 
carried  out  by  tne  Air  Commander,  Atlantic  Coast  and  Reconnaissance 
Group  "123".   Tne  PT  boats  sank  5  steamers  and  2  tankers,  totalling 
22,000  GRT.   Tne  "Review"  convoy  was  signted  at  1715  during  pre- 
liminary reconnaissance  by  the  Air  Command,  Atlantic  Coast.   The 
report  in  question  gives  the  exact  ship  location,  as  intercepted  by 
radio  monitoring.  The  flotilla  was  sent  into  action  on  the  basis  of 
enemy  radio  messages,  intercepted  earlier,  which  reported  the 
operations  of  our  Air  Force.  Combat  reconnaissance  of  Reconnaissance 
Group  "123"  located  the  convoy  according  to  plan,  dropped  flares, 
and  drew  anti-aircraft  fire  and  star shells  which  brought  on  the  PT 
boats.  One  German  destroyer  and  a   patrol  vessels  observed  that  the 
attention  of  the  convoy  was  obviously  strongly  diverted  by  our  com- 
bat reconnaissance,  whereupon  our  PT  boats  caught  it  completely  by 
surprise. 

For  brief  report  of  the  2nd  PT  Boat  Flotilla,  see  Telegram  1000. 

Here  we  have  a  highly  gratifying  operation  which  once 
again  distinctly  demonstrates  the  value  of  close 
cooperation  between  PT  boats  and  planes.   This  im- 
portant success  of  our  arms  will,  moreover,  give  a 
fresh  impetus  to  our  PT  boat  crews  after  the  meager 
results  of  the  torpedo  missions  of  the  past  weeks. 

On  the  evening  of  9  Jul.,  the  2nd  and  3rd  PT  Boat  Flotillas  were 
placed  on  a  2-hour  alert.  Mining  operation  by  2  PT  boats  during 
their  transfer  from  Boulogne  to  Cherbourg, 

For  .assent  of  the  Naval  Staff  to  the  suggestion  of  Group  West  con- 
cerning the  employment  of  our  batteries  on  the  Channel  coast  against 
enemy  batteries  (cf.  War  Diary  5  Jul.)  see  Telegram  1930. 


III.  North  Sea.  Norway.  Arctic  Ooean 

1.   North  Sea; 

Enemy  Situation; 

Nothing  to  report. 

Own  Situation: 

During  an  air  raid  on  Wilhelmshaven  on  the  night  of  8  Jul., 
30  high  explosive  bombs  and  2,000  incendiary  bombs  were  dropped  on 
the  navy  yard,  while  67  high  explosive  bombs  and  8,000  incendiary 
bombs  were  dropped  on  the  city.  Numerous  plants,  workshops,  and 
storehouses  in  the  yard  were  damaged  by  fire.   This  caused, a  slight 


-129- 


CONFIDENTIAL 
9  Jul.  1942 

delay  in  the  deadlines  for  completion  of  work.   Two  attacking  planes 
were  shot  down  by  naval  anti-aircraft  guns.  The  raid  followed  a 
concentration  of  some  70  o  80  planes  in  the  Borkum  area  and  was 
carried  out  from  an  altitude  of  1,500  tc  S,000  meters.   For 
particulars  see  Telegrams  0400  and  0815. 

For  report  on  other  enemy  air  activity  in  the  coastal  area  of  the 
German  Bight  on  the  night  of  6  Jul.,  see  Telegram  1133. 

Six  ground  mines  and  2  moored  mines  were  swept  during  :  Jule  On 

9  Jul.  the  Norwegian  stea    TROMA  5,029  GRT)     lea^ili  damaged  "by 

a  mine  northwest  of  VI i eland.  It  was,  however,  possible  to  bring 

the  steamer  into  Den  Held«r.  a  total  of  8  ground  mines  was  swept 

during  the  day.  A  mine-exploding  vessel  shot  down  an  enemy  plane. 

One  of  3  enemy  planes  participating  in  a  raid  on  a  convoy  southwest 

of  Heligoland  was  shot  down.   The  enemy  carried  out  a  few  reconnaissance 

flights  over  the  German  Bight  as  far  as  Ouxhaven  during  the  afternoon, 

2.    Norway; 

A  coast  guard  patrol  at  '  vaerholt  reported  an  enemy  sub- 
marine in  quadrant  AG  7376  on  the  evening  of  8  Jul.       Jul. ,  1 
submarine  chaser  sank  at  1110  after  a  c  tonation  off  the  entrance  to 
Hammerfest.   The  Admiral,  Arctic  Coast  '  elieves  that  the  submarine 
was  a  mine  casualty.  Unfortunately  the  Commander,  3  petty  officers, 
21  crew  members,  25  men  on  detached  duty,  and  men  on  furlough  are 
missing.   Otherwise  the  usual  movement  of  ships  without  any  note- 
worthy occurrences. 

A  double-row  anti-submarine  mme  field  has  been  laid  both  in  the 
western  and  in  the  northern  parts  of  By  Fjord  near  Bergen.   For 
mine  field  report  from  Admiral,  West  Norwegian  Coast,  see  Telegram 
1235. 

In  the  opinion  of  the  Commanding  Admiral,  Norway,  Namsos  will  always 
attract  the  enemy  in  connection  with  any  possible  invasion  plans 
because  here  the  supplies  carried  by  water,  rail,  and  Reich  highway 
no.  50  could  be  cut  off  effectively  and  the  attack  on  Trondheim 
could  be  pushed  from  the  north.  Although  the  single-row  flanking 
mine  field  which  has  been  laid  in  Folia  Fjord  affords  protection 
to  the  coastal  inter-island  route,  it  does  not  furni6h  adequate 
security  against  a  large-scale  attack  on  Namsos.   The  Commanding 
Admiral,  Norway  recommends  that  a  double-row  mine  field  be  laid 
and  that  the  declared  area  be  announced  as  extending  from  64°36.7'N, 
10°58.8SE  to  64°36.95fN,  11°02'E.   It  is  planned  to  set  up  a  battery 
at  the  western  side  of  the  entrance  to  Namsos  Fjord,  near  Utforden 
the  protection  of  the  mine  field*  Although  an  enemy  penetration 
Namsos  through  Roed  Sound  and  Gylte  Fjord  need  not  be  an- 
ticipated since  the  waters  there  are  difficult  to  navigate,  the 

)mmanding  Admiral,  Norway  nevertheless  makes  the  further  recom- 
mendation to  blockade  the  channel  west  of  the  Levra  lighthouse  by 


-130- 


CONFIDENTIAL 


9  Jul.  1942 


means  of  a  dummy  declared  area.  For  copy  of  the  recommendation, 
see  Telegram  1900. 

In  accord  with  the  Army's  suggestion  to  the  Admiral,  North  Norwegian 
Coast,  the  Commanding  Admiral,  Norway  also  recommends  that  the 
defenses  of  Ramso  Fjordr  be  reinforced  by  laying  out  a  double-row 
mine  field  in  two  sections.  This  mine  field  would  lie  within  the 
range  of  Army  coastal  battery  "947".   The  Fleet  Command  is  in  accord, 
providing  that  the  naval  forces  continue  to  have  free  passage.  Such 
passage  is  easily  available  west  of  Reifuar  (see  Telegram  2123). 

The  decision  on  the  laying  of  the  two  mine  fields  rests  primarily 
with  Group  North. 

3.   Arctic  Ocean: 

Enemv  Situation; 

According  to  air  reconnaissance  there  were  21  steamers, 
1  tanker,  and  1  docked  submarine  in  Kola  Bay  on  8  Jul.   Five  sub- 
marines were  in  the  naval  harbor  of  Polyarnoye  and  13  merchantmen 
were  anchored  in  the  harbor  of  Iokanga.  Single  ships  were  spotted 
in  the  waters  north  of  Cape  Teriberski.  Four  steamers  and  3  patrol 
vessels,  headed  northwest,  were  sighted  east  of  Iokanga. 

At  1047,  submarine  U  "457"  located  a  remnant  of  convoy  PQ  17  in 
quadrant  AC  9352,  composed  of  3  steamers,  3  destroyers,  and  2 
patrol  vessels.  Its  last  reported  position  at  2045  was  in  quadrant 
an  9543. 

Own  Situation: 

Two  other  submarines  besides  U  "457"  likewise  made  contact 
with  the  remnant  of  convoy  PQ  17.   The  Admiral,  Arctic  Ooean  ordered 
submarines  not  to  cross  south  of  the  line  69°N.   Thirteen  of  the 
Ju  87' s  committed  against  the  remnant  of  convoy  PQ  17  sank  a  7,000 
GRT  steamer  around  midnight,  140  miles  east-northeast  of  Murmansk, 
This  brings  up  to  20  steamers,  or  129,000  GRT,  th«  total  result  of 
the  Air  Force  operation  against  convoy  PQ  17. 

Due  to  technical  difficulties  on  the  LUETZOW,  the  transfer  of  the 
LUETZOW  group  from  Narvik  to  Trondheim  has  been  delayed  6  hours. 
At  1800,  the  group  continued  on  its  course  out  of  Sag  Fjord. 

Group  North  believes  that  the  entire  PQ  convoy  system  will  be 
changed  as  a  result  of  the  loss  of  convoy  PQ  16  and  the  disaster 
which  befell  convoy  PQ  17.  The  Group  does  not  expect  that  the 
shipment  of  supplies  to  Russia,  which  is  of  such  vital  military 
importance,  will  be  give,n  up  completely.  Neither  is  it  likely 
that  the  convoys  will  be  broken  up  into  isolated  ships,  since  it 
would  be  difficult  to  protect  the  continuous  chain  of  steamers 
which  such  a  measure  would  entail.   The  Group  believes  that  the 


-131- 


CONFIDENTIAL 
9  Jul.  1942 

enemy  would  be  most  likely  to  break  up  the  convoy  into  sections  of 

Li\  Z+^l'J***   8*earaers-   These  smaller  convoys  woulf  fi?et 
call  at  Spitsbergen  during  the  expected  fogsy  weather   %pi!li, 

i?^^fShe^si  a  a-sd^-SHE'S^ 

2552  i8-rrCh  t0.be   Baid  for  the  opinion  of   Group 
North.      The  question  that  remains   to  be  answered 
however,    is  whether   the  enemy  will  always  hl?e   the 
necessary  number   of   large,    fast    ships  available 

2Z  +J!  f°  d?Ubt  tSat  after  the   Dad  experiences 
when  the  Americans  had  charge  of  convoy  PQ  17     the 

S^S^fS11  a^in  take  °V"  the   eorama»d  and  escort 
of  the  future  PQ  convoys,   and  will   vastly  strengthen 

!J  V'  °i°^p  Horth  states  tha*  «>•  operation  was  brought  to  L 

or  planes  no  longer  warran?e°.  Mtaol  by  oSr  naval  s^aL^  n™™8 

oesLeo  ^rZlVnavrieViSSie6  ^HFttT2*  *^  «- 

zone  of  operations       CJoSSn,       r  f  thrust  bey°nd  the  Planned 

of  Ifst 2""1*     SiTno%anoU:oreetT£„ProutS  Sff nf clnvoy . V SK""* 

oe  in  p^L?ve;  %£?&&&  ^iit^'o?  FFr  ;%a 

area.      (See  Telegram  1549.)  7         BCattered  over  a  very  wide 

£tenn?ta^r°^  5  JU1*    wnich  are  befor*  the  Naval  Staff 
tSzSSatSS'th??  Bu<*  ^^ocal  justification  lor 

Ch™f     Navfl  sL?? e2?i10n-      The  *aval  Staff  and  **e 
omei,    wavai   Staff  well  appreciate  tne  fact   that  the 

successes   scored  by   the  submarines  £5  p?anes  had 

Socles  Jha?1™?^?1?  dimini!^d  the  projects  of 
success  tnat  might  be  scored  by  the  Fleet  forces 
However,   they  did  not  decide  to  discontinue  Ihl 


-132- 


CONFIDENTIAL 


y  Jul.  1943 


operation  until  the  enemy  sighted  our  forces  and  thus 
the  risk  involved  in  the  operation  came  to  the  fore  once 
again,  and  when  the  successes  likely  to  be  scored  appear- 
ed incommensurate  with  the  risk. 


Special  Items: 


Concerning  the  command  over  the  naval  task  forces  in  the  Norwegian 
theater  (see  War  Diary  8  Jul.},  the  Fleet  Commander  and  Commanding 
Admiral,  Battleships  notifies  Group  North,  with  copy  to  the  Naval  Staff, 
that  if  we  should  have  no  operation  scheduled  for  the  near  future,  he 
intends  to  embark  at  Hela  and  to  transfer  the  tactical  command  of  all 
naval  forces  in  northern  Norway  to  the  Commanding  Admiral,  Cruisers 
aboard  the  HIPPER.  The  Fleet  Commander  plans  to  resume  the  oommand 
aboard  the  TIRPITZ  whenever  the  enemy  situation  should  precipitate  the 
start  of  defensive  operations  on  the  part  of  our  naval  forces.  Should 
it  not  be  possible  to  do  so  in  time,  the  overall  tactical  command  of  the 
naval  forces  is  to  be  assumed  by  the  Commanding  Admiral,  Cruisers,  pos- 
sibly aboard  the  TIRPITZ. 

Concerning  the  distribution  of  the  naval  forces,  %he   Fleet  Commander 
suggests  that  the  TIRPITZ  be  kept  in  Narvik  only  so  long  as  the  strategic 
situation  requires.  A  longer  stay  is  undesirable  since  it  would  result 
in  a  massing  of  naval  forces  and  would  involve  all  sorts  of  difficulties 
in  supply  and  maintenance.  The  Fleet  Commander  does  not  consider  the 
operational  effect  of  a  transfer  of  the  TIRPITZ  to  Trondheim  too  dis- 
advantageous, since,  in  addition  to  keeping  traok  of  the  situation  in  and 
around  Trondheim,  the  ship  will  need  only  about  10  more  hours  to  make 
the  run  up  north.   The  Fleet  Commander,  plans  to  place  the  HIPPER  under 
the  administrative  command  of  the  Commanding  Admiral,  Cruisers  in  the 
event  that  the  ship  remains  in  Narvik,  and  assumes  that  the  SCHEER  will 
also  remain  in  the  northern  area  until  further  notioe,  i.e.,  that  she 
is  not  yet  scheduled  for  any  special  task.  (See  Telegram  1816.) 

Group  North  declares  itself  in  accord  with  the  12-hour  alert  set  for  the 
TIRPITZ  and  the  HIPPER  at  the  suggestion  of  the  Admiral,  Arctic  Ocean. 
(See  Telegram  1209.) 


IV.  8kagerrak.  Baltic  Sea  Entrances.  Baltic  8ea 

1.   Enemy  Situation: 

Acoording  to  radio  monitoring,  9  submarines  and  one  escort 
vessel  were  at  sea.  Five  of  these  submarines  were  in  the  area  of 
Kronstadt  Bay.  At  0330,  a  report  was  intercepted  concerning  an  engage- 
ment between  Russian  PT  boats  and  our  torpedo  boats.  A  Russian  PT  boat 
was  probably  sunk  and  another  damaged  during  this  engagement.  The  Russian 


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9  Jul.  1942 


naval  forcee  also  report  that  2  Gere  i  :•  .:  yere  an-   gunboat  shelled 
Someri,   On  8  Jul.  a  Russian  patrol  vessel  reported  an  oil  slick  in  the 
same  area  where  a  mine  explosion  was  reported  to  have  een  heard  at 
0225.   The  belief  on  the  patrol  vessel  in  question  is  that  a  submarine 
struck  a  mine.  At  1037  on  9  Jul.  naval  forces  near  Someri  reported  to 
Lavansaari  that  the  former  island  is  occupied  by  the  enemy. 

2.   Own  Situation; 

No  noteworthy  occurrences  in  the  Baltic  Sea  entrances  and  the 
western  Baltic  Sea. 

According  to  a  report  of  the  Commanding  Admiral,  Defenses,  Baltic  Sea 
the  motor  ship  MINDE  sank  to  a  depth  of  6  meters  west  of  Samsoe  on  3  Jul., 
following  a  mine  detonation. 

Another  submarine  alarm  near  Rixhoeft. 

The  Swedish  Navy  states  that  on  9  Jul.  a  German  schooner  carrying  timber 
was  reported  near  Haevringe.  It  appears  that  she  was  torpedoed  during 
the  day  or  night  of  8  Jul.  and  is  being  kept  afloat  by  the  cargo. 

Troop  transports  from  Danzig  to  Utoe  are  proceeding  according  to  plan 
and  without  any  noteworthy  occurrences. 

The  Commander,  Mine  Sweepers,  Baltic  Sea  reports  that  the  island  of 
Someri  is  completely  in  Finnish  hands.  Mine  sweeper  "19"  operated  to- 
gether with  the  NETTELBECK  until  0400.  An  assault  detaohment  from  mine 
sweeper  "19"  took  78  prisoners.  A  number  of  enemy  vessels ^were  damaged 
at  very  close  range  during  an  engagement  with  Russian  escort  vessels, 
a  FUGAS-olaes  mine  sweeper,  and  the  artillery  barge  MOSKVA;  their 
destruction  was  not  observed.  Mine  sweeper  "19"  and  the  NETTELBECK 
arrived  in  Kotka.  The  Finns  report  a  direct  bomb  hit  on  the  artillery 
barge  MOSKVA . 

Mine-sweeping  operations  are  proceeding  according  to  plan.   The  laying 
of  mine  field  "Seeigel  XIX"  is  set  for  10  Jul. 


V.   Merchant  Shipping 

After  hearing  the  report  of  the  Reich  Commissioner  of  Shipping,  the 
Fuehrer  decided  that  the  Navy  should  make  available  about  10$  of  the 
requisitioned  merchant  tonnage  in  view  of  the  growing  shortage  in 
civilian  merchant  shipping.  The  Commander  in  Chief,  Navy  (Naval  8taff , 
Quartermaster  Division,  Shipping  and  Transport  Branch)  issued  a  cor- 
responding directive  for  the  Navy.   Only  freighters  and  coal-consuming 
vessels  are  to  be  transferred.  Snips  using  civilian  crews  are  to  be 
transferred  with  the  crews.   The  High  Command,  Navy  will  select  tne  ships 
in  the  month  of  July.   Reconversion  and  delivery  of  the  ships  will  begin 


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CONFIDENTIAL 
9  Jul.  1942 

as  soon  as  the  selection  is  made.   The  Commander  in  Chief,  Navy  is  fully 
aware  of  the  difficulties  caused  by  the  return  of  the  ships.   These 
difficulties  will  have  to  be  borne. 


VI  f     Submarine  Warfare 

1.   Enemy  Situation: 

Nothing  to  report. 

3.   Own  Situation: 

For  operations  against  convoy  PQ  17  see  Own  Situation,  Arctio 
Ocean  and  details  in  Supplement  to  Submarine  Situation  in  War  Diary, 
Part  B,  Vol.  IV. 

Submarine  U  "355"  started  en  her  way  back. 

Seven  submarines  stationed  in  the  North  Atlantio  are  being  oombined  into 
group  "Wolf  and  will  be  sent  into  action  against  the  southwestern  convoy 
route.   They  are  to  occupy  a  patrol  line  from  quadrant  AK  3947  to  quadrant 
AK  6955  by  1600  on  13  Jul.,  and  to  proceed  at  the  rate  of  130  miles  per 
day  on  a  course  of  240  • 

The  search  for  submarine  U  "158"  by  submarine  U  "173"  off  the  American 
coast  produced  no  results. 

Submarine  U  "172"  reports  sinking  the  U.S.  steamer  SANTA  RITA  (8,400 
GRT)  while  she  was  en  route  from  Port  Said  to  Boston,  via  Capetown, 
with  a  cargo  of  gold  and  copper  ore  as  well  as  captured  German  tanks. 
A  large  number  of  secret  documents,  sailing  orders,  and  a  complete  set 
of  charts  were  seized. 

Submarine  U  "173"  (Lt.  Emmermann)  has  thereby  exhausted  her  ammunition. 
She  terminated  a  successful  operation  with  the  sinking  of  8  steamers 
and  1  sailing  vessel,  aggregating  40,000  GRT. 

Submarine  U  "102"  of  Group  "Hai"  (submarines  in  tne  8outh  Atlantic)- 
reports  as  of  6  Jul.  the  sinking  of  the  AVILA  STAR  (14,443  GRT;  in 
quadrant  CF  4953. 

Submarine  U  "372"  unsuccessfully  attacked  the  oonvoy  spotted  in  the 
Mediterranean.  Another  submarine  was  unable  to  open  fire  on  the  convoy 
headed  for  Haifa.  At  the  present  time  the  submarines  are  operating  in 
quadrant  CP  8365  against  an  eastbound  oonvoy  which  was  located  by  sub- 
marine U  "453".  Contact  with  the  convoy  was  lost  at  2215. 

8pecial  It ems ; 

The  Commanding  Admiral,  Submarines  again  instructs  the  submarines  on4 


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CONFIDENTIAL 
9  Jul.  194a 

the  need  of  making  exhaustive  reports.  Sucn  reports  are  of  decisive 
importance  as  a  basis  for  a  survey  of  the  enemy  snipping  situation  with 
a  view  to  the  commitment  of  submarines. 

As  a  result  of  the  probable  loss  of  submarine  U  H503H,  the  Commanding 
Admiral,  Submarines  requests  that  submarines  take  all  possible  measures 
to  reduce  to  a  minimum  the  threat  in  the  Bay  of  Biscay. 


VII.  Aerial  Warfare 

1.   British  Isles  and  Vlcinltv: 

In  the  morning,  fighter  bombers  attacked  the  airfield  at  East 
Dean.  One  merchantman  and  1  patrol  vessel  were  sunk  southwest  of 
Portland  during  an  attack  on  a  convoy.  Another  merchantman  was  damaged. 
Four  Ju  88 's  raided  Great  Yarmouth  as  an  alternate  target  after  an  in- 
effectual night  mission  against  ships. 

During  the  late  afternoon,  3  enemy  planes  carried  out  a  flight  over  the 
Borkura-Heligoland  area,  probably  for  the  purpose  of  laying  mines.  On 
the  night  of  9  Jul.,  33  planes  participated  in  a  similar  flight  over  the 
same  area. 

Eighteen  flights  were  observed  over  the  Norwegian  coast,  concentrating 
on  Trondheim,  probably  in  order  to  attack  ships  or  lay  mines. 

3.   Mediterranean  Theater: 

Raids  were  continued  on  Malta  airfields.  Other  commitments 
were  in  support  of  the  Panzer  Army  in  the  El  Alamein  area  as  well  as 
against  airfields  in  the  Egyptian  zone  of  operations. 

3.   Eastern  Front; 

Heavy  forces  were  committed  in  support  of  the  Southern  Army 
Group. 

Hit 8  were  scored  on  1  tanker  and  1  merchantman  in  the  Black  Sea  during 
a  daylight  raid  on  Tuapse. 

No  noteworthy  reports  have  been  received  from  the  Gulf  of  Finland.  An 
enemy  plane  was  successfully  attaoked  in  the  Murmansk  area.   For  the 
twentieth  success  scored  against  remnants  of  convoy  PQ  17,  see  Own 
Situation,  Arctic  Ocean. 

On  the  basis  of  air  reconnaissance  and  radio  monitoring,  as  well  as  on 
the  basis  of  data  from  other  souroes,  the  overall  strength  of  the 
Russian  air  forces  at  the  front  is  estimated  to  consist  of  1,300  first- 
class  planes,  450  second-class  planes,  430  foreign  combat  planes,  and 
130  planes  of  miscellaneous  types.   There  are  probably  500  foreign  planes 


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CONFIDENTIAL 
9  Jul.  1942 

in  the  rear  area.  Seventy  of  these  are  in  the  Archangel  area. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation; 

Mediterranean: 

Air  reconnaissance  yielded  no  noteworthy  information.  Accord- 
ing to  radio  monitoring,  planes  kept  reporting  the  Crete  squadron  from 
1400  until  midnignt.   Its  last  position  was  given  as  66  miles  northeast 
of  Derna.   In  addition,  a  British  plane  reported  a  submarine  at  0920, 
24  miles  west  of  Haifa. 

2.  Own  Situation; 

Mediterranean; 

On  the  evening  of  8  Jul.,  12  enemy  planes  raided  Benghazi  but 
failed  to  inflict  damage  in  the  harbor. 

3.  Transport  of  Supplies  to  North  Africa; 

On  11  Jul.,  the  steamer  AMSTERDAM  is  scheduled  to  leave  Trapani 
for  Tripoli  by  the  western  route.   The  tanker  P.O.  FASSIO  is  due  to 
leave  Trapani  for  Tripoli  on  the  evening  of  9  Jul.  The  steamer  SIBILLA 
left  Brindisi  on  9  Jul.  neading  for  North  Africa  by  way  of  Greece.  Two 
transport  submarines  arrived  in  Tobruk  in  the  forenoon  of  9  Jul. 

Cargo  unloaded  on  8  Jul.:  Marsa  Matrun  -  245  tons;  Tobruk  -  525  tons. 

The  "Siena"  convoy  and  the  tanker  ALBERTO  FASSIO  were  repeatedly  attacked 
without  success  by  bombers  and  torpedo  bombers  during  the  nignt  of  9  Jul., 
while  en  route  from  Suda  to  Tobruk.   The  motor  snip  ANKARA  reacned 
Tobruk  from  Bengnazi  at  1030.   Tne  steamers  BR00E  and  STURLA  reached 
Marsa  Matrun  in  the  afternoon. 

4.  Area  Naval  Group  South; 
Aegean  Sea: 

Convoys  proceeding  according  to  plan.   No  noteworthy  occurences. 
Black  Sea; 
Enemy  Situation: 

Radio  monitoring  and  air  reconnaissance  did  not  furnish  any 
noteworthy  information. 

Own  Situation: 

In  the  forenoon  our  long-range  reconnaissance  group  attacked 


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CONFIDENTIAL 
9  Jul.  194a 

an  enemy  submarine  90  miles  west  of  Sevastopol.  No  success  was  ob- 
served.  Three  Italian  submarine  cnasers  and  5  motor  boats  were  sent 
into  action  out  of  Yalta  in  tne  forenoon  against  remanants  of  enemy- 
troops  near  Cape  Khersones. 

The  4  motor  mine  sweepers  of  the  3rd  Motor  Mine  Sweeper  Flotilla  which 
arrived  in  the  Black  Sea  area  are  for  the  time  being  assigned  to  the 
Naval  Special  Duties  Detachment  for  convoy  protection.   The  flotilla  is 
scheduled  to  be  assigned  to  mine  detection  and  sweeping  duty  off  the 
west  coast  of  the  Crimea  when  a  additional  motor  mine  sweepers  arrive, 
probably  in  the  middle  of  July, 

It  will  be  necessary  to  carry  out  engine  overhaul  and  small  repairs 
on  the  light  German  and  Italian  naval  forces  when  the  battles  around 
Sevastopol  come  to  an  end.  The  snips  should  be  ready  to  resume  combat 
duty  within  a  or  3  weeks. 

The  Commander,  Danube  Flotilla,  in  his  capacity  as  "Chief,  Mine  Sweeping 
Operations,  Crimea",  is  clearing  a  route  off  the  Crimean  coast  along 
a  line  from  Eupatoria  to  Feodosiya,  brancning  off  into  the  harbors. 


IX.   Situation  East  Asia 

According  to  an  intelligence  report  of  a6   Jun.  from  Hsinking,  the 
entry  of  Japan  into  the  war  against  Russia  can  definitely  be  counted  on. 
The  only  thing  which  is  unknown  even  to  nigh-ranking  officers  of  tne 
Kwantung  Army  is  the  actual  date,  wnich  may  be  in  the  distant  future, 
pernaps  not  before  next  spring,  since  Japan  always  plans  her  operations 
very  far  in  advance.   The  start  of  Japan's  operation  against  Russia 
depends  decisively  on  the  development  of  the  German  offensive  on  the 
Eastern  Front.  The  Japanese  Military  Commission  is  looking  forward  to 
this  offensive  along  a  broad  front  with  unconcealed  impatience.  The 
Japanese  believe  that  continued  overall  Japanese  successes  in  the  Pacific 
and  in  southern  Asia  also  depend  on  the  success  of  the  German  campaign 
in  Russia.   The  Soviet  intelligence  service  ordered  its  agents  to  be 
ready  for  instant  action  at  the  end  of  May.  A  fifth  section  has  been 
establlsned  in  the  staff  of  the  Kwantung  Army  to  prepare  the  organization 
and  administration  of  the  territories  to  be  occupied  in  the  Russian 
Far  East.   The  occupation  of  Primorie  (?)  is  said  to  be  definitely 
planned. 

Under  the  date  of  26  Jun.,  the  Military  Attache  at  Rome,  on  tne  basis 
of  his  conversation  with  the  first  assistant  of  the  Japanese  Military 
Attache  stationed  there,  reports  among  other  tnings  as  follows: 

Mopping-up  operations  are  continuing  in  northern  Burma.  Japanese 
troops  are  on  the  border  of  India  but  are  not  crossing  it.   Japanese 


-138- 


00HFI1 
9  Jul.  1942 

air  raids  are  continuing  on  the  eastern  parts  of  India,  with  the  ex- 
ception of  Calcutta.   Tne  2  divisions  in  central  Burma  are  carrying  out 
rappping-up  operations  and  are  getting  set  for  new  operations. 
slight  damage  has  thus  far  been  caused  by  enemy  air  raids  on  Akyab  and 
Rangoon*   The  Thailand  forces  have  reacned  the  southern  boundary  of 
Yunnan  but  have  not  moved  across. 

The  battles  west  of  Kwangsinfu  in  China  nave  come  to  an  end.   Tne  air- 

ields  whicn  nitherto  served  as  a  base  for  air  raids  on  the  Japanese 
homeland  have  been  wrested  from  the  enemy.   The  Japanese  forces  in 
Canton  advanced  in  3  columns  as  far  as  Fathongting,  with  the  object  of 
securing  for  Japan  the  vast  tungsten  deposits  tnere  available.  There 
is  no  plan  for  an  advance  further  north  of  this  point. 

Naval  and  Army  landing  parties  have  occupied  the  Aleutians. 

Japan  has  at  her  disposal  60  submarines  and  20  submarine  cruisers.   The 
latter  are  able  to  remain  at  sea  for  6  months.   These  submarine  cruisers 
took  part  in  shelling  the  oil  installations  near  San  Francisco,  The 
Japanese  maintain  tnat  they  have  thus  far  sunk  4  U.S.  aircraft  carriers. 

Apparently  on  the  basis  of  information  furnished  by  the  Japanese  Military 
Attache  at  Budapest,  the  Japanese  General  Staff  believes  that  on  the 
line  running  from  Vologda  through  Ivanovo,  the  lower  course  of  the 
river  Oka,  Tambov,  and  Stalingrad  the  Russians  have  erected  particularly 
strong  fortifications  at  Vologda,  Ivanovo,  and  Stalingrad.   Strong  troop 
concentrations  are  reported  in  the  area  east  of  Tambov. 


X.   Army  Situation 

1.   Russian  Front: 

Southern  Army  Group: 

Operations  of  Army  Groups  A  and  B  are  proceeding  according  to 
plan.  Parts  of  the  29th  Division  reached  the  Don  as  far  as  Pavlovsk. 
Only  slight  enemy  resistance  is  noted  up-stream  along  the  Don  as  far 
as  Voronezh.  At  the  same  time,  enemy  pressure  and  attacks  are  continuing 
against  our  positions  south  of  Yelets  and  near  Livny.  The  enemy  was 
able  to  achieve  a  temporary  break-through  in  the  region  of  the  Olym 
River. 

Central  Army  Group: 

Strong  enemy  attacks  in  the  vicinity  of  Byelev  and  Sukhinichi 
continued  with  undiminished  force.  Heavy  artillery  fire  and  the  bring- 
ing up  of  tanks  and  aircraft  at  this  point  of  the  front  indicate  prepara- 
tions for  a  large-scale  attack.  Our  losses  are  considerable.  Oux 


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CONFIDENTIAL 
9  Jul.  1942 

forces  have  drawn  together  the  enemy  pockets  east  of  Byeloi.  South  of 
this  position,  our  forces  are  advancing  west  and  north  without  any  re- 
sistance worth  the  mention. 

Northern  Army  Group: 

No  notewortny  engagements. 

2.  Finnisn  and  Norwegian  Front: 

Unusually  lively  enemy  reconnoitering  activity  in  the  Louhi 
and  Kandalaksha  sectors.   The  unloading  of  4  freignters  and  33  smaller 
vessels  on  the  Rybachl  Peninsula  was  observed  on  8  Jul. 

3.  North  Africa: 

On  the  southern  sector  of  the  El  Alamein  positions,  the  enemy 
turned  to  the  east  under  our  assault  and  regrouped  his  foroes.  In  the 
morning  the  Panzer  Army  went  over  to  the  attack  against  the  southern 
end  of  the  enemy  position,  breaking  through  along  the  entire  width  of 
the  Qattara  Depression  as  far  as  the  breach  which  had  been  made  before. 
Our  forces  captured  and  occupied  a  strongly  fortified  bulwark.  Accord- 
ing to  air  reconnaissance,  the  Siwa  oasis  is  again  unoccupied* 

************************* 


( 


-140- 


CONFIDENTIAL 
10  Jul.  1942 

Items  of  Political  Importance 

France: 

The  U.  S.  Government  delivered  a  memorandum  to  General  de  Gaulle  which 
assures  of  closer  cooperation  and  expresses  readiness  to  appoint  a 
representative  to  the  French  National  Committee  in  London.   It  is 
pointed  out  in  Washington  that  such  a  step  does  not  yet  constitute 
recognition  of  De  Gaulle. 

Great  Britain: 

A  debate  on  the  shipping  situation  will  take  place  in  a  secret  session 
of  the  House  of  Commons  since  the  security  of  the  British"  people  and 
of  the  nation's  seamen  forbids  the  holding  of  a  public  discussion. 
Oripps  informed  the  House  that  there  are  serious  but  surmountable 
difficulties.   In  accordance  with  the  proposal  of  the  labor! te  member 
Shinwell,  the  government  will  make  known  in  an  exhaustive  report  all 
those  facts  which  are  not  absolutely  secret  in  nature. 

The  Government  published  a  White  Book,  according  to  which  Great 
Britain  provided  the  Allied  Governments  with  replacements  of  losses 
suffered  In  ships,  despite  her  own  lack  of  shipping  tonnage.  Re- 
placements consisted  of  new  ships  constructed  in  British  shipyards  or 
of  those  purchased  in  foreign  countries.  About  2/3  of  these  are  new 
ships.  The  Allied  Governments  have  obligated  themselves  not  to  keep 
the  ships  chartered  longer  than  6  months  after  termination  of  the  war; 
instead,  they  are  to  be  assigned  to  the  transport  of  supplies  to 
Europe  as  part  of  a  joint  plan. 

Turkey: 

Foreign  Minister  Saracoglu  assumed  leadership  of  the  cabinet,  taking 
the  place  of  the  deceased  Prime  Minister  Saydam. 

Arabia: 

According  to  Transoceanic  News  an  Arab  congress  is  due  to  meet  in 
London  at  the  beginning  of  August.   This  congress  under  British  leader- 
ship is  to  issue  a  declaration  proclaiming  the  independence  of  all 
Arab  states. 

Chile: 

According  to  the  official  German  news  agency  (DNB)  the  group  favoring 
neutrality  is  growing.   In  retaliation  the  U.  S.  Government  has  cut 
the  oil  quota  by  50$  as  compared  to  1941. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 


-141- 


CONFIDENTIAL 
10  Jul.  1942 

In  a  very  restricted  circle: 

Discussion  by  the  Chief  of  Operations  Branch,  Naval  Staff  Operations 
Division  of  the  report  submitted  on  7  Jul.  by  the  German  General  at 
the  Italian  Armed  Forces  Headquarters  to  the  Armed  Forces  High  Command, 
Operations  Staff:   In  the  conference  of  6  Jul.  the  Duce  approved  the 
measures  taken  for  the  prompt  reinforcement  of  the  Panzer  Army  and 
ordered,  besides.,  that  the  Italian  Air  Force  be  reinforced  and  moved  up. 
As  regards  continuation  of  the  operation,  the  Duce  believes  that  in 
view  of  the  absence  of  the  element  of  surprise,  the  drive  to  the  Suez 
Canal  by  way  of  Cairo  can  no  longer  be  carried  out  with  weak  forces. 
Haholds  that  it  is  more  expedient  first  to  take  Alexandria  a3  a  base 
foi\ further  operations  through  the  Nile  Delta  to  the  Suez  Canal. 
Bastico  was  ordered  to  discuss  this  view  with  Field  Marshal  Rommel. 

Subsequently  Cavallero  expressed  his  disagreement  with  the  German 
General.  He  believes  that  it  is  necessary  to  cross  the  Nile  in  the 
vicinity  of  Cairo.   The  German  General  pointed  out  that  the  defeat 
of  the  British  forces  west  of  the  Nile  is  of  prime  importance  since 
otherwise  it  would  not  be  possible  to  get  to  Cairo.  In  Cavallero' s 
opinion  the  shortage  of  fuel  makes  it  impossible  to  fulfil  the  Duce's 
order  of  reinforcing  and  moving  up  the  Italian  Air  Force,  unless  the 
latter  is  relieved  of  other  tasks  in  the  Mediterranean  (escort  duty, 
operations  againsi  submarines,  reconnaissance,  and  transport  service). 
General  Fougier  asked  for  an  additional  monthly  allocation  of  4,500 
tons  of  fuel  whereupon  Cavallero  requested  a  supplementary  allocation 
of  10,000  tons  to  last  him  for  the  duration  of  the  bettle  of  Egypt. 

It  appears  that  the  German  General  has  confused  the 
figures  of  4,500  tons  of  fuel  for  the  air  force  and 
1Q,000  tons  of  fuel  for  ships. 

No  other  reports  or  decisions. 


Special  Items: 

« 
I.  On  4  Jul.  Group  North  submitted  its  plans  for  reinforcing  mine 
defenses  in  the  southwestern  part  of  its  area  in  order  to  protect  the 
coast  of  Holland.   The  southernmost  mine  field  (SW  6)  lies  partly  in 
the  area  of  Group  West  as  well  as  in  the  operational  area  of  the  PT 
boats. 

Group  West  expressed  the  belief  that  mine  field  SW  6  closes  the  only 
remaining  outlet  through  which  the  PT  boats  could  be  sent  into  oper- 
ation and  suggested  that  this  field  be  laid  only  in  case  of  acute 
danger. 


-142- 


CONFIDENTIAL 
10  Jul.  1942 

The  Naval  Staff  regards  such  procedure  highly  impractical.   It  approves 
for  both  Groups  mine  fields  SW  7,  8,  9,  10  and  11,  deferring  decision 
concerning  mine  field  SW  6,  and  allocates  1,250  standard  mines  type  C. 

Copy  of  corresponding  instructions  l/Skl  16396/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  VI. 

II.  Unrelenting  attempts  of  Russian  submarines  to  break  through,  our 
thickly  planted  mine  fields  east  of  Eogland-Tytersaari  show  that  they 
are  making  an  effort  to  achieve  greater  freedom  of  action  in  the  Gulf 
of  Finland  and  in  the  Baltic  Sea.   It  is  to  be  expected  that  the  enemy 
will  try  to  regain  the  islands  of  Tytersaari  and  Hogland.   In  view  of 
this  situation,  which  the  Naval  Staff  believes  to  be  correct,  Naval 
Group  North  forwarded  to  the  Northern  Army  Group  a  request  for  infor- 
mation as  to  whether  and  when  our  forces  might  be  expected  to  push  back 
the  enemy  further  and  to  take  the  Oranienbaum-Schepel  area,  and 
Lavansaari  and  Seiskari.   This  information  is  important  since  the 
measures  v:hich  the  Navy  must  take  require  a  long  period  of  preparation. 
Copy  of  the  above  communication  was  sent  to  the  Commanding  General,  18th 
Army. 

III.  The  Naval  Staff  welcomes  the  operations  which  the  Commanding 
Admiral,  Submarines  is  planning  to  carry  out  in  the  La  Plata  estuary. 
(See  War  Diery  9  Jul.)  However,  since  at  this  particular  time  such 
operations  might  give  rise  to  undesirable  political  consequences  with 
respect  to  Argentina,  permission  must  be  withheld  for  the  time  being. 

On  the  other  hand,  it  would  be  highly  desirable  to  launch  an  operation 
in  the  Capetown  area  as  soon  as  the  Commanding  Admiral,  Submarines  finds 
it  possible. 

Corresponding  directive  is  dispatched  to  the  Commanding  Admiral,  Sub- 
marines. 

IV.  Decision  with  regard  to  the  transfer  of  PT  boats  S  "151"  to  S  "158" 
to  the  Mediterranean  as  reinforcement  of  the  3rd  PT  Boat  Flotilla  had 
been  postponed  until  15  Jul.   Having  weighed  all  the  reasons  pro  and 
con,  the  Naval  Staff  adopted  a  positive  decision  in  view  of  the  important 
fact  that  this  series  unquestionably  contains  the  ladt  boats  which  can 
still  be  considered  for  transfer  to  the  Mediterranean  from  the  stand- 
point of  size.   If  these  boats  are  assigned  elsewhere,  every  possibility 
of  reinforcing  the  3rd  PT  Boat  Flotilla  or  furnishing  it  replacements  is 
gone.  On  the  other  hand,  the  disadvantage  resulting  from  the  transfer 
would  only  be  temporary  because  of  the  steady  production  of  new  boats 

a  t  home . 

A  corresponding  decision  is  forwarded  to  the  Naval  Staff,  Quartermaster 
Division.   The  vessels  are  to  be  transferred  in  the  fall.   Chief  of 
Operations  Division,  Naval  Staff  considers  it  expedient  to  assemble 
another  flotilla  in  the  Mediterranean  in  addition  to  the  3rd  PT  Boat 
Flotilla.   The  5th  PT  Boat  Flotilla  should  be  made  promptly  available 
for  operational  employment  and  use  of  other  operational  flotillas 
should  be  avoided.  For  this  reason  S  "151 "to  S  "158"  will  have  to  com- 
plete their  training  in  the  Mediterranean. 


-143- 


CONFIDENTIAL 
10  Jul.  1942 

V.   Upon  reaching  the  shores  of  the  Caspian  Sea,  the  Navy  will  be 
charged  with  the  task  of  harassing  Russian  supply  lines  in  these  waters 
and  of  supporting  the  Army  in  its  advance  along  the  coast. 

The  port  of^Makhachala  is  to  be  used  as  a  base  for  our  naval  forces. 
Our  vessels  will  have  to  be  transported  there  by  rail.   In  addition  to 
motor  pinnaces,  Italian  submarine  chasers  and  Siebel  ferries  ere  suited 
for  that  type  of  transportation. 

Detailed  instructions  are  forwarded  to  Navel  Group  South,  with  copy  to 
the  Naval  Representative  at  the  Armed  Forces  High  Command,  Operations 
Staff  and  to  the  Navy  Liaison  Officer  at  the  General  Staff,  Army  High 
Command!  requisitions  of  materiel  on  the  'basis  of  operational  plans 
are  requested,  taking  into  consideration l the  limited  possibilities. 
Telegram  l/Skl  I  opa  15725/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  XlVa. 


Situation  10  Jul.  1942 

I.  War  in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic; 

The  cruisers  EURYALUS  and  PENELOPE  are  in  Newport  News  and 
Charleston  for  repairs.   On  16  Jun.  a  British  auxiliary  cruiser  arrived 
in  Puget  Sound  for  repairs. 

Pacific  Ocean; 

The  MARBLEHEAD  is  at  Mare  Island  (San  Francisco  )  for  a  minimum 
of  5  months  of  repair  work,  and  the  AUSTRALIA,  listing  heavily  snd  in 
tow,  arrived  there  or  11  Jun. 

South  Atlantic: 

An  unidentified  ship  reported  at  2014  that  she  was  being  pursued 
by  a  suspect  vessel  some  %70  miles  southwest  of  Freetown.   The  pursuit 
ended  at  2330  because  of  derkness. 

The  cruiser  VINCENNES  arrived  at  Capetown  on  22  Jun.   The  BROOKLYN 
reached  Durban  on  18  Jun.  and  the  CLEOPATRA  arrived  at  Simonstown  from 
Portsmouth  on  18  Jun. 

Indian  Ocean: 

Very  brisk  ship  traffic  is  reported  from  the  aree  of  Capetown. 
Troop  transports  sail  only  in  convoy  whereas  cargo  ships  still  sail 
alone. 


c 


-144- 


CONFIDENTIAL 


10  Jul.  1942 


According  to  a  report  of  the  Naval  Attache  at  Istanbul  of  8  Jul.  all 
supply  ships  en  route  to  ports  of  the  Persian  Gulf,  as  well  as  those 
en  route  to  Russia,  are  being  diverted  to  the  Red  Sea.   All  available 
shipping  space,  including  warships,  is  being  assigned  to  the  transport 
to  Egypt  of  war  materiel  which  has  already  been  unloaded  at  Basra. 

All  pertinent  reports  indicate  that  nothing  that  might 
aid  the  defense  of  Egypt  will  be  left  undone. 

2.   Own  Situation; 

The  Naval  Attache  at  Tokyo  reports  that  he  received  a  report 
from  the  DRESDEN  that  the  DOGGERBANK  has  received  charts  for  route 
"gelb"  for  her  run  to  Japan;  however,  the  points  on  the  charts  were 
named  "Duesseldorf ",  "Dahlem"',  etc.   The  Naval  Staff  remarks  that  the 
DOGGERBANK  must  have  received  flower  names  for  these  different  points 
by  radiogram.   (See  Telegrams  1401  and  2030.) 

Information  concerning  enemy  situation  is  sent  to  ell  vessels  in  foreign 
waters  via  Radiogram  0418.   Along  with  the  above  a  report  was  com- 
municated that  on  23  May  at  2°S  32°W  the  Italian  submarine  ARCHIMEDE 
sighted  a  convoy,  consisting  of  1  steamer,  1  heavy  cruiser,  presumably 
of  the  PENSACOLA  class,  and  2  destroyers,  on  a  southerly  course  and 
proceeding  at  a  low  speed.   The  submarine  reported  scoring  2  hits  on 
the  cruiser,  but  did  not  observe  that  she  sank. 


II.   Situation  West  Area 

1.   Enemy  Situation; 

At  noon  air  reconnaissance  sighted  8  gunboats  in  Lyme  Fjord  on 
a  westerly  course,  and  11  steamers  along  with  2  patrol  vessels  on 
course  50  east  of  Falmouth. 

According  to  an  intelligence  report  from  Portugal  on  the  basis  of  re- 
liable diplomatic  information  of  9  Jul.,  there  will  be  a  considerable 
increase  in  air  raids  on  German  and  French  cities  during  the  second 
half  of  July.   A  large-scale  landing  operation  of  American  and  British 
troops  on  the  French  Channel  coast,  starting  from  the  south  coast  of 
England,  is  to  take  place  during  the  month  of  August.   The  attack  is  to 
be  launched  because  of  pressure  from  the  Russians  who  have  threatened 
to  enter  into  peace  negotiations  with  the  Germans  if  no  attack  is  made 
by  the  end  of  August.   The  Russians  are  not  able  to  withstand  the 
pressure  of  the  German  offensive  any  longer  and  fear  that  their 
Caucasian  oil  supplies  will  be  cut  off.   The  sabotage  organization  re- 
cruited from  French  civilian  population,  which  is  adequately  supplied 
with  weapons  and  explosives,  is  supposed  to  be  receiving  support  from 
British  and  American  paratroops. 


-145- 


CONFIDENTIAL 


10  Jul.  1942 


According  to  another  report  from  a  military  source,  an  immediate  in- 
vasion of  the  Channel  ports  by  U.  S.  troops  is  said  to  be  impending. 

These  reports,  particularly  the  first  one,  are  apt 
to  prove  correct.  However,  the  dates  are  not  necessarily 
absolutely  exact.  At  any  rate,  It  is  not  Impossible  that 
the  most  recent  military  developments  In  the  East,  along 
with  the  ever-mounting  pressure  of  submarine  warfare, 
have  provoked  the  enemy  to  adopt  decisions  th?  ".  did  not 
appear  too  urgent  a  short,  while  ago. 

2..  Own  Situation: 

Atlantic  Coast: 

The  minesweeper  "4401",  leader  of  a  convoy,  struck  ..  mine  and 
sank  in  the  forenoon  off  Cape  Forret.  Sixteen  men  are  missing. 

Channel  Coast: 

On  the  night  of  9  Jul.  south  of  Boulogne  the  12th  Motor  Mine 
Sweeper  Flotilla  fought  a  brief  engagement  with  2  enemy  destroyers,  4 
PT  boats,  and  2  motor  gunboats.  Motor  mine  sweeper  "178"  sank  1  motor 
gunboat  by  ramming  and  by  shelling  her  with  Incendiary  ammunition  at  a 
range  of  20  m*  Motor  mine  sweepers  "176"  and  "178"  have  been  disabled. 
In  the  opinion  of  Group  West  the  enemy  was  on  a  mining  operation  along 
the  "Herz"  route  or  on  a  convoy  attack  mission.  During  the  same  night 
PT  boats  "78"  and  *66">  carried  out  a  mining  mission  according  to  plan 
while  in  transit  from  Boulogne  to  Cherbourg.  Although  they  were  con- 
tacted by  enemy  radar  from  Beachy  Head  for  two  hours,  there  was  no  de- 
fensive action.   (See  Telegram  1125. ) 

Two  Spitfires  raided  the  harbor  and  railroad  terminal  of  Dieppe  during 
the  day.  A  fishing  patrol  vessel  was  also  attacked  by  2  Spitfires  and 
slightly  damaged  off  Fecamp. 


III.   North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

On  the  night  of  9  Jul«-  enemy  planes  were  active  over  the 
coastal  area  of  the  German  Bight,  apparently  In  order  to  lay  mines  on 
the  "Hellrot"  and  "Braun*  convoy  routes  and  around  Heligoland,  and  also 
to  attack  ships*  Three  ground  mines  were  swept  on  10  Jul.  A  fishing 
cutter  hit  a  mine  and  sank  north  of  Langeoog  island.  Mine-sweeping 
operations  on  mine  field  "2",  and  escort  and  convoy  duty  proceeded 
according  to  plan. 

The  10th  Company  of  the  201st  Naval  Coastal  Artillery  Battalion  fired 
10  salvos  at  a  target  located  west  of  Ijmuiden.  No  success  was  ob- 
served. 


-146- 


CONFIDENTIAL 
10  Jul.    1942 

2.  Norway: 

At  0300  enemy  planes  unsuccessfully  attacked  a  convoy  off 
Sylte  Fjord.   Fifteen  enemy  planes  flew  over  the  Frohavet-Folla  Fjord 
area  between  0100  and  0200,  probably  trying  to  find  the  LUETZ0W  group. 
The  latter  arrived  in  Trondheim  at  1430. 

Mine-sweeping  and  convoy  duty  without  any  special  occurrences. 

3.  Arctic  Ocean; 

Enemy  Situation; 

According  to  an  intelligence  report  from  Portugal,  a  convoy 
of  American  steamers  left  the  U.S.  on  4  Jul.  for  Britain  probably  with 
Russia  as  the  ultimate  destination.   According  to  an  intelligence  re- 
port from  Sweden  dated  9  Jul,  a  convoy  just  arrived  at  59°  58' N  44° 
15 'W  (southern  tip  of  Greenland)  and  received  an  order  not  to  proceed 
to  the  Barents  Sea  but  to  make  for  55°  00'N,  07°  20' W  (North  Channel). 
The  control  station  for  west  and  eastbound  convoys  is  given  as  56°  30' N, 
18°  OO'W  (north  coast  of  Iceland). 

According  to  submarine  reports,  starting  at  0345  remnants  of  convoy  PQ 
17  were  in  quadrants  AC  98,  AC  97  and  AC  95.   It  cannot  be  definitely 
ascertained  at  this  time  whether  the  reports  have  reference  to  one 
or  more  groups,  consisting  of  3  steamers  each.   The  Admiral,  Arctic 
Ocean  believes  that  there  is  one  group  either  in  quadrant  AC  9759  or 
in  AC  9844  and  another  in  quadrant  AC  9574. 

At  1330  air  reconnaissance  located  2  steamers  120  miles  east  of 
Murmansk.   They  were  proceeding  separately,  each  with  an  escort  of  2 
patrol  vessels.   Ten  steamers  were  anchored  in  Iokanga.   In  the  fore- 
noon, 1  steamer  and  10  patrol  vessels,  proceeding  on  a  northerly 
course,  were  north  of  Kildin  Island. 

A  heavy  Russian  submarine  on  an  easterly  course  was  sighted  in  quadrant 
AC  4792. 

According  to  radio  decoding,  at  1545  a  British  vessel  reported  an  air 
raid  on  the  convoy  of  the  COMPETENT  (PQ  17)  10  miles  north  of  Svyatoi 
Noss.  At  1642  Murmansk  radioed:  "Fighter  escort  for  COMPETENT  on  the 
way". 

Own  Situation; 

During  the  afternoon  the  submarines  lost  contact  with  the 
remnants  of  convoy  PQ  17. 

At  0415  in  quadrant  AC  9843  submarine  U  "376 "  sank  the  U.S.  freighter 
HOOSIER  (6,000  GRT )  which  had  already  been  damaged  in  an  air  raid. 


-147- 


CONFIDENTIAL 

10  Jul.  1942 

i 
i  f  "■■■, 

The  HOOSIER  went  down  with  her  cargo  of  tanks.  At  0545  submarine  U 
"SSI1*  sank  a  7,000  GRT  steamer  in  quadrant'  AC  9554.   Thus  the  total 
sinkings  by  submarine  out  of  convoy  P^  17  amount  to  15  ships  of  about 
106,000  GRT.   (On  4  Jul.  -  1  steamerj   on  5  Jul.  -  6  steamers;   on  6 
Jul.  -  2  s^teafters;  on  7  Jul.  -  3  steamers;  on  8  Jul.  -  1  steamer;   on 
10  Jul.  -  2  steamers.)  The  submarines  received  orders  to  set  out  on 
their  return  voyage  to  the  convoy  route,  via  the  route  prescribed  in 
the  order  of  the  Admiral,  Arctic  Ocean.   Details  in  supplement  to  Sub- 
marine Situation. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

According  to  radio  monitoring,  4  of  the  9  submarines  at  sea 
were  located  in  the  area  between  Seiskari  and  Kronstadt.  According  to 
sighting  reports,  what  was  probably  a  submerged  submarine  was  observed 
20  miles  northwest  of  Reval.   In  addition,  in  the  area  of  Lavansaari  a 
torpedo  boat,  21  patrol  boats,  and  17  PT  boats  were  observed  in  the 
forenoon;   in  the  afternoon  in  the  area  of  Peninsaari  6  FUGAS-class 
minesweepers  and  11  motor  mine  sweepers  were  sighted  in  the  afternoon 
east  of  Schepel  on  a  westerly  course. 

2.  Own  Situation: 

The  "Kunigunde "  mining  operation  has  gotten  under  way.  Par- 
ticipating in  this  operation  are  the  K0ELN,  gunboat  K.'  "1",  and  mine 
sweeper  "1907". 

A  ground  mine  was  swept  north  of  Pehmern. 

The  German  schooner  FIDES  which  was  torpedoed  off  Haevringe  is  being 
towed  in  by  a  Swedish  tug.   The  sinking  of  the  Swedish  steamer 
MARGARETA  by  enemy  submarines  in  Swedish  territorial  waters  off  Arke 
Sound  on  9  Jul.  is  reported.   Neither  the  FIDES  nor  the  MARGARETA 
sailed  in  convoy. 

Minefield  "Seeigel  XVI"  was  laid  In  the  Gulf  of  Finland  according  to 
plan.  On  the  way  back  from  this  mining  operation,  a  naval  barge 
struck  a  mine  and  had  to  be  beached,  A  heavy  loss  in  personnel  was 
sustained. 

While  relieving  the  forces  on  the  island  of  Someri,  mine  sweeper  "19" 
and  the  NETTELBECK  on  their  own  initiative  took  action  which  led  to 
the  recapture  of  the  island,  and  liberated  the  Finnish  troops  there 
from  a  most  difficult  situation.   After  an  exchange  of  gunfire  with 
superior  Russian  naval  forces  north  of  Lavansaari,  both  ships  forced 
their  way  beck  to  Kotka  after  their  ammunition  was  exhausted.  For 
the  special  commendation  bestowed  by  the  Commanding  Admiral,  Group 
North  for  this  act,  with  the  full  approval  of  the  Naval  Staff,  see 
Telegram  1724. 


-148- 


CONFIDENTIAL 
10  Jul.  1942 

V.   Submarine  Warfare 

1.  Enemy  Situation: 

Radio  monitoring  Intercepted  the  report  of  a  British  plane  con- 
cerning a  submarine  submerging  150  miles  northwest  of  Cape  Vilano.   A 
British  vessel  (AP)  was  located  at  1704  in  quadrant  AM  2955,  120  miles 
west  of  the  Hebrides.   According  to  radio  decoding  a  submarine  sank  the 
Norwegian  steamer  TARANGER  (4,873  GRT)  20  miles  west  of  the  Azores. 

The  usual  reports  of  sighted  submarines  were  intercepted  off  the 
American  coast  and  in  the  West  Indies,  A  ship  which  was  torpedoed  on 
9  Jul.  north  of  Trinidad  has  been  abandoned. 

2.  Own  Situation: 

For  further  developments  in  the  operation  against  convoy  PQ  17 
see  Own  Situation,  Arctic  Ocean. 

In  the  North  Atlantic  in  quadrant  AL  1967  submarine  U  "90"  encountered 
an  eastbound  convoy  consisting  of  5  steamers  and  2  light  cruisers. 
The  submarines  in  the  vicinity  were  ordered  to  attack  this  convoy.   How- 
ever,  since  it  is  improbable  that  the  convoy  will  be  overtaken  in  view 
of  the  high  speed  at  which  it  is  proceeding,  the  operation  was  termi- 
nated following  a  miss  registered  by  submarine  U  n90". 

No  successes  have  been  reported  during  the  current  day* 

Particulars  in  Supplement  to  Submarine  Situation  in  War  Diary,  Part  B, 
Vol.  IV. 


'VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 
Nothing  to  report. 

2.  Mediterranean  Theater: 

Air  raids  on  Malta  airfields  and  support  of  the  African  Panzer 
Army  are  continuing. 

3.  Eastern  Front; 

Heaviest  commitment  of  the  4th  Air  Force  in  the  area  of  the 
attacking  army.   95  planes  were  shot  down. 

The  Finnish  air  force  reports  a  total  of  18  enemy  vessels  sunk  and 
others  damaged  in  the  battles  for  Someri  on  8  and  9  Jul. 


-149- 


CONFIDENTIAL 
10  Jul.  1942 

The  5th  Air  Force  helped  to  bring  through  a  convoy  into  the  port  of 
Petsamo  by  engaging  the  enemy  forces  and  batteries  on  the  Rybachi 
Peninsula. 

Sixteen  Ju  88' s  attacked  and  heavily  damaged  2  steamers  which  were  pro- 
ceeding separately  120  miles  east  of  Murmansk,  each  escorted  by  2 
patrol  vessels. 

4.  Special  Item: 

The  Air  Force  Operations  Staff  (Ic)  reports  that  on  the  basis 
of  testimony  of  prisoners  of  war,  intensified  daylight  strafing  raids 
must  be  expected  on  submarine  base  and  repair  docks. 


VII.   Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation: 

Mediterranean: 

The  cruiser  CHARYBDIS  and  1  CAIRO-class  cruiser  were  at  sea 
off  Gibraltar  for  target  practice. 

Air  reconnaissance  in  the  other  portions  of  the  Mediterranean  without 
noteworthy  occurrences. 

According  to  radio  decoding  probably  3  submarines  are  on  the  Gibraltar- 
Malta-Eastern  Mediterranean  route. 

2.  Own  Situation; 

On  the  night  of  8  Jul.  the  enemy  staged  an  air  raid  on  Tobruk. 
No  damage  in  the  harbor.  On  the  night  of  9  Jul,  3  boats  of  the  3rd  PT 
3oat  Flotilla  carried  out  a  torpedoing  mission  north  of  Alexandria.   In 
the  Mediterranean,  16  Italian  submarines  were  en  route  and  in  waiting 
positions  at  sea. 

3.  Transport  of  Supplies  to  North  Africa: 

The  "Squilla"  convoy,  consisting  of  4  motor  ships,  set  out 
for  Benghazi  and  Tobruk  under  escort  of  3  destroyers  and  5  torpedo 
boats. 

The  "Siena"  convoy  and  the  tanker  ALBERTO  FASSIO  arrived  in  Tobruk  ac- 
cording to  plan. 

The  motor  ship  AMSTERDAM,  the  steamer  ARMANDO,  and  the  tanker  P.O. 
FASSIO  are  en  route  to  Tripoli. 

Coastal  supply  shipments  according  to  plan. 


-150- 


CONFIDENTIAL  . 
10  Julc  1942 

4.   Area  Naval  Group  South: 

Aegean  Sea: 

Nothing  to  report. 

Black  Sea: 

Enemy  Situation: 

According  to  photo  reconnaissance,  the  following  were  located 
in  Novorossisk  on  9  .Jul.;   The  hull  of  a  heavy  cruiser  (KIROV  class); 
1  destroyer  of  the  TASHKENT  class,  half  submerged;  1  destroyer  of  the 
GNEVNY  class,  2/3  submerged;  1  steamer  in  the  floating  dock;  another 
damaged;  and  1  10,000  GRT  steamer.   In  Sochi:   One  cruiser  and  about 
15,000  GRT  of  merchant  shipping  tonnage.   In  Tuapse:   5  PT  boats,  2 
submarines,  2  mine  sweepers  and  about  23,000  GRT  of  merchant  shipping. 

Own  Situation; 

Convoys  proceeding  according  to  plan. 

Several  hundred  prisoners  were  captured  during  mopping-up  operations 

on  the  Khersones  Peninsula  in  cooperation  with  Italian  submarine-  chasers 

and  motor  boats.   Submarine  chaser  "527"  brought  in  29  prisoners. 

The  coastal  route  from  Sevastopol  to  Balaklava  was  swept  for  mines  by 
4  motor  mine  sweepers  and  the  17th  Harbor  Defense  Flotilla  on  9  Jul. 
but  no  mines  were  found. 

On  the  night  of  8  Jul.  an  air  raid  was  carried  out  on  Yalta,  Alushta 
and  Eupatoria.   No  particular  damage  was  sustained. 

Special  Items: 

Information  received  repeatedly  leads  the  Naval  Staff  to  point  out 
to  the  Armed  Forces  High  Command,  Operations  Staff  and  to  the  Fuehrer's 
Adjutant  with  the  Armad  Forces  High  Command,  to  the  General  Staff,  Army 
High  Command  and  the  Air  Force,  Operations  Staff  that  the  Russian  Black 
Sea  fleet  will  still  be  in  a  position  to  operate  in  the  Black  Sea  after 
the  capture  of  Novorossisk  and  Tuapse  as  long  as  the  remaining  harbors 
on  the  southern  coast,  particularly  Poti  and  Batum,  remain  in  Russian 
hand3.   Limited  repair  facilities  as  well  as  small  docks  are  available. 
It  is  to  be  expected  that  the  Russians  will  take  along  the  larger  float- 
ing docks  from  Novorossisk. 


VIII.   Situation  East  As-la 
Nothing  to  report. 


-151- 


CONFIDkHPIAL 
10  Jul.  1942 

IX.   Army  Situation 

1.  Russian  Front: 

Southern  Army  Group; 

The  Southern  Army  Group  is  henceforth  subdivided  into  grc 
A  and  B  (under  the  Command  of  Field  Marshals  List  and  Vc^  Bock  re- 
spectively). 

Army  Group  A  is  pursuing  the  retreating  e    -  ea  twarda   North 
of  Kremenaya  strong  enemy  rear-jofrd  troops  are  holding  out. 

Army  Group  3;  On  the  right  wing  this  group  reached  a  point  35 
miles  east  of  Starobyelsk.   Tank  and  motorized  units  crossed  the 
Boguchar  River.   Infantry  divisions  are  following  in  a  southeasterly 
direction.   The  Donets  was  reached  south  and  north  of  Svoboda.   At 
Voronezh  the  enemy  launched  an  attack  in  the  vicinity  of  the  railroad 
terminal  north  of  the  city  and  penetrated  that  section  temporarily. 

South  of  Yelets  near  Livny  the  enemy  made  other  and  heavier  attacks.  r 

The  Army  Group  is  digging  in  for  defense  at  this  point  between  the  Don 
and  its  old  position. 

Central  Army  Group: 

In  the  Byelev  and  Sukhinichi  area  the  force  of  enemy  assaults 
has  declined.   Points  of  penetration  of  the  last  few  days  have  been 
mopped  up.   The  pocket  east  of  Byeloi  has  been  tightened  by  concentric 
attacks.   Numerous  prisoners  and  vast  stores  of  materiel  have  fallen 
into  our  hands. 

Northern  Army  Group: 

Enemy  attacks  on  the  Volkhov  front  were  repulsed  after  occasion- 
al temporary  penetrations. 

2.  Finnish  and  Norwegian  Front: 
No  noteworthy  engagements. 

3.  North  Africa:  *■ 

In  the  morning  hours • following  a  one-hour  preparatory  artillery 
barrage  the  enemy  attacked  the  sector  of  the  Italian  21st  Army  Corps, 
centering  his  assault  between  the  coastal  road  and  the  sea.  The  enemy 
broke  through  the  positions  of  one  division  to  a  depth  of  5  km,  over-  , 

running  its  battalion  and  artillery  positions.  The  break-through  was 
sealed  off  3  km  southeast  of  the  army  command  post.  Baotles  aimed  at 
restoring  the  situation  were  still  continuing  during  the  evening.  To 
accomplish  this  a  counterattack  was  staged  against  the  southern  flank 
of  the  wedge  driven  in  by  the  enemy,  by  hastily  assembled  combat  units 
under  the  command  of  Field  Marshal  Rommel. 


-152- 


CONFIDENTIAL 
10  Jul.  1942 

We  were  able  to  make  only  slight  territorial  gains  during  our  attack 
against  the  southern  wing  of  the*  El  Alamein  position,  against  stubborn 
enemy  resistance. 

The  set-back  suffered  because  of  the  failure  of  the 
Italian  21st  Army  Corps  is  highly  regrettable.   Particu- 
larly in  view  of  the  resumption  of  the  Rommel  offensive 
it  remains  to  be  seen  what  consequences  this  will  have, 
other  than  to  revive  the  enemy  battle  spirit. 


-153- 


CONFIDENTIAL 
11  Jul.  1942 

Items  of  Political  Importance 
Portugal; 

According  to  a  diplomatic  report  another  Portuguese  contingent  of 
troops  has  been  sent  to  the  Azores.   This  confirms  Portugal's 
steadily  emphasized  intention  of  defending  her  Atlantic  island 
possessions  against  all  possible  attacks.   This  is  all  the  more  sig- 
nificant since  there  are  reasons  to  believe  that  the  British  would 
like  to  compensate  themselves  with  western  bases  for  those  they  have 
lost  in  the  Near  East. 

Sweden; 

Indignation  is  running  high  over  continued  torpedoing  of  Swedish 
ships  by  Russian  submarines.  The  press  emphasizes  that  this  con- 
stitutes beyond  question  a  deliberate  violation  of  neutrality  of  the 
crassest  kind.  At  any  rate,  these  incidents  have  likewise  exercised 
a  pronounced  influence  on  the  public  reaction  towards  Germany  as 
well. 

U.S.A. ; 

On  10  Jul.  Roosevelt  signed  a  bill  providing  $8,500,000,000  for  ex- 
pansion of  the  fleet.   Out  of  this  total,  $7,500,000,000  are  slated 
for  the  construction  of  500,000  GRT  of  aircraft  carriers,  500,000 
G-RT  of  cruisers,  and  900,000  GRT  of  destroyers  and  escort  ships. 

The'  statement  of  the  chairman  of  the  committee  for  military  affairs 
in  the  House  of  Representatives,  that  the  war  will  end  in  1942  or 
1943  at  the  latest,  is  meeting  with  strong  criticism  from  the  U.S. 
press.  The  press  points  out  that  such  a  swift  ending  of  the  war  can 
by  no  means  be  expected,  judging  from  the  current  state  of  affairs. 
On  the  contrary,  it  must  be  assumed  that  it  will  be  a  long  and  hard 
war. 

Brazil; 

According  to  a  report  from  a  diplomatic  source,  at  the  request  of 
the  U.S.*  Brazil  has  again  offered  to  conclude  a  military  agreement 
with  Chile.   It  is  hardly  probable  that  in  the  face  of  the  present 
situation  Chile  Till  be  disposed  to  reconsider  this1  suggestion. 


Special  Items; 

I.   With  reference  to  defense  measures  in  the  West,  the  Armed 
Forces  High  Command,  Operations  Staff  does  not  consider  it  impossible 
that  paratroop  operations  will  be  extended  to  include  the  area  of 
the  6th  Army  District  during  an  enemy  landing  in  the  area  of  the 
Commanding  General  Armed  Forces,  West.  It  is  also  possible  that 
portions  of  the  population  from  the  Netherlands  and  to  some  extent 
also  from  the  Belgian  area  will  attempt  to  cross  the  German  border. 


-154- 


CONFIDENTIAL 
11  Jul.  1942 

The  Chief  of  Array  Equipment  and  Commanding  General  of  the  Replacement 
Army,  therefore,  receives  instructions  to  reexamine  the  measures 
planned  for  strengthening  the  frontier  defenses  and  the  air  defenses 
of  fixed  installations  in  the  6th  Army  District,  with  particular 
reference  to  the  Netherlands  border  zone  and  the  Ruhr  zone.   It  is 
possible  to  count  on  a  maximum  of  6  naval  rifle  battalions  from  the 
North  Sea  Naval  Station  in  the  event  of  need.   Possibilities  for  their 
commitment  within  a  strengthened  frontier  defense  along  the  borde'rs 
of  the  Netherlands  are  to  be  explored  jointly  with  the  Commanding 
General  Armed  Forces,  Netherlands,  in  so  far  as  these  commitments 
are  to  take  place  in  the  Netherlands  zone. 

The  Naval  Staff  instructs  Group  North  and  Group  West  to  that  effect. 

II.  In  accord  with  the  Fuehrer  Directive  of  9  Jul.,  concerning  the 
bolstering  of  defense  measures  in  the  West,  Group  North  issues  the 
following  directives  to  Naval  Station,  North,  to  the  Commanding 
Admiral,  Defenses,  North,  to  the  1st  Coast  Patrol  Division,  and  to 
the  Commanding  Admiral,  Baltic  Countries,  with  copies  to  the  Naval 
Staff  and  to  the  Naval  Station,  Baltic:   In  addition  to  ordering  in- 
creased watchfulness,  Group  North  plans  within  the  next  few  days  to 
reinforce  the  southern  portion  of  the  Westvall  from  the  boundary  of 
Group  North  as  far  as  Terschelling.  The  Commanding  Admiral,  Defenses 
Baltic  Sea  and  Naval  Station,  North  are  to  ascertain  at  once  whether 
the  enemy* s  mine-laying  and  reconnaissance  flights  within  the  past 
few  days  furnish  any  clue  as  to  the  site  which  he  is  selecting  as 

his  objective.   The  Commanding  General,  Air  Force  Group  Command, 
Central  Area  sees  some  significance  in  the  fact  that  the  enemy  is 
carrying  out  frequent  flights  over  routes  off  the  North  Sea  islands 
as  far  as  Wangeroog  and  over  the  island  itself. 

Moreover,  Naval  Station,  North  reports  intensified  enemy  mining 
operations  since  the  month  of  April,  with  the  area  between  Terschell- 
ing and  Borkum  as  the  center  of  activity.   The  object  of  these  enemy 
operations,  apart  from  harassing  convoy  traffic,  may  possibly  be  to 
secure  his  flanks  for  an  attack  on  Holland.  No  Selection  of  a  focal 
point  of  enemy  activities  was  noticeable  in  the  last  few  days. 

III.  The  General  Staff  of  the  Army  High  Command  requested  that  80  to 
100  naval  barges  be  made  available  to  it  by  10  Aug.  for  operation 
"Bluecher"  (see  War  Diary,  8  Jul.,  Special  Items,  Paragraph  3).  This 
cannot  be  accomplished  since  it  is  impossible  to  transport  finished 
barges  via  the  Danube  from  Germany  in  such  a  short  time.  The  total 
number  of  naval  barges  in  the  Black  Sea  is  expected  to  be  28  to  30 
by  10  Aug.   Out  of  that  number  4  on  the  average  will  not  be  ready 
for  action.   In  addition,  losses  and  damages  must  be  expected.  The 
General  Staff  can  therefore  make  its  plans  only  on  the  basis  of  20 
barges.   It  may,  perhaps,  be  possible  to  raise  the  number  to  about 
32.  Every  effort  will  be  made  to  do  so.  The  Naval  Staff  Operations 
Division  informs  the  General  Staff  of  the  Army  High  Command  to  that 
effect,  calling  attention  to  communication  l/Skl  lop  1290/42  Gkdos. 
Chefs.   (see  War  Diary  8  Jul.). 


-155- 


CONFIDENTIAL 


11  Jul.  1942 


IV.   In  view  of  a  shift  in  Swedish  public  opinion  in  favor  of  Ger- 
many as  a  result  of  the  sinking  of  Swedish  ships  by  Russian  sub- 
marines, the  Foreign  Office  has  requested  that  every  effort  be  made 
not  to_  disturb  this  favorable  political  development  by  such  inci- 
dents as  attacks  on  Swedish  fishing  vessels  in  the  vicinity  of  our 
declared  areas.   The  Naval  Staff  dispatches  a  directive  to  that 
effect  to  Group  North,  with  copy  to  Commanding  Admiral,  Defenses, 
Baltic  Sea;  to  Commanding  Admiral,  Defenses,  North ;  and  to  the 
Naval  Liaison  Officer  with  the  Commander  in  Chief,  Air.   It  is  not 
planned  to  send  a  communication  to  Sweden. 

V*   The  Air  Force  Operations  Staff-requested  from  the  Naval  Staff 
an  exhaustive  estimate  of  landing  possibilities  on  the  French  coast, 
for  submission  to  the  Commander  in  Chief,  Air  Force.   The  Naval 
Staff  has  complied  with  this  request.   Copy  as  per  l/Skl  I  op 
16934/42  Gkdos,,  which  was  also  sent  to  the  Permanent  Representative 
of  the  Commander  In  Chief,  Navy  at  Fuehrer  Headquarters;  to  the 
Naval  Liaison  Officer  at  the  General  Staff,  Army  High  Command;  and 
to  the  Naval  Representative  at  the  Armed  Forces  High  Command,  Opera- 
tions Staff,  in  War  Diary,  Part  C,  Vol.  X. 

VI.   The  Naval  Attache  in  Rome  reports  under  the  date  of  3  Jul.  con- 
cerning the  detailed  discussion  held  with  Admiral  Riccardi,  Commander 
in  Chief  of  the  Italian  Navy.   In  the  course  of  this  discussion, 
Admiral  Riccardi  commented  on  the  battle  waged  by  the  7th  Cruiser 
Division  off  Pantellaria  and  about  the  experiences  of  the  Italian 
Navy  during  the  naval  and  air  engagements  of  14  and  15  Jun.   Re- 
port as  per  l/Skl  16495/42  Gkdos.  is  In  War  Diary,  Part  C,  Vol. 
XIII. 


' 


Situation  11  Jul.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

South  Atlantic: 

According  to  press  reports  the  Brazilian  fleet,  already 
reinforced  by  American  warships,  is  to  be  further  strengthened  by 
the  addition  of  British  destroyers,  which  have  arrived  in  Brazilian 
ports  in  the  last  few  days.  These  destroyers  are  intended  for 
coastal  defense. 

2.  Own  Situation: 

Directive  to  the  CHARLOTTE  SCHLIEMANN  concerning  radio 
communication  with  the  Naval  Attache  in  Tokyo  by  Radiogram  1416. 

Since  no  order  has  thus  far  been  received  for  the  MADRONO  to  call  at 
Bat a via,  this  prize  ship  is  ordered  to  continue  by  way  of  the 
"Rollbahn"  route.   She  is  also  given  instructions  for  putting  into 
Batavia  in  case  the  order  is  given  after  all.   Corresponding  order 


-156- 


CONFIDENTIAL 
11  Jul.  1942 

to  the  MADRONO  by  Radiogram  2226. 

In  the  event  that  the  Naval  Attache  In  Tokyo  considers  it  necessary 
that  ship  "10"  receive  advance  written  instructions  for  her  stay  in 
Japan,  the  Naval  Staff  is  prepared  to  have  her  meet  a  blockade- 
runner  which  is  en  route  from  Japan  to  Europe.   Corresponding  in- 
structions to  the  Naval  Attache  in  Tokyo  by  Telegram  1055. 

Information  concerning  enemy  situation  by  Radiograms  0616  and  1921. 


II.  Situation  West  Area 

1*   Enemy  Situation: 

Reports  of  Anglo-American  invasion  plans  are  increasing. 
According  to  a  Spanish  intelligence  report  originating  in  Portuguese 
sources,  during  the  last  conference  between  Roosevelt  and  Churchill 
the  U.S.  project  of  landings  at  Casablanca,  on  the  island  of  Madeira, 

on  the  Canary  Islands,  and  on  the  Azores,  with  a  simultaneous 
large-scale  attack  on  Dakar,  was  shelved.   Instead  a  British  plan 
was  adopted  for  opening  a  second  European  front,  apparently  in 
northwestern  France.  According  to  another  intelligence  report  from 
a  Polish  source  through  the  German  Embassy  in  Tarabya,  dated  6  Jul., 
a  large-scale  British  invasion  attempt  is  due  to  take  place  during 
next  week  at  one  point  In  Holland  and  at  2  points  in  France.   Eight 
hundred  Basques  are  said  to  have  been  trained  as  paratroopers  in 
England.   They  are  to  be  assigned  to  sabotage  work  on  the  coast  of 
the  Bay  of  Biscay. 

According  to  radio  monitoring,  3  naval  vessels  and  4  other  ships  were 
at  the  eastern  end  of  the  Channel.   In  the  Portsmouth  area  there  were 
4  ships  and  1  submarine  chaser,  and  In  the  Davenport  area  there  were 
4  ships  .and  2  submarine  chasers. 

At  1812  off  Dartmouth  air  reconnaissance  sighted  a  force  consisting 
of  1  cruiser  and  a  number  of  destroyers  on  a  southwesterly  course, 
as  well  as  a  convoy  north  of  the  Scilly  Islaids. 

2.   Own  Situation: 

Atlantic  Coast: 

According  to  a  report  from  Group  West,  it  is  not  unlikely 
that  mine  sweeper  "4401"  (see  War  Diary  10  Jul.)  was  lost  as  a  re- 
sult of  a  torpedo  fired  from  a  submarine.   Up  to  the  present  it  was 
believed  that  she  had  struck  a  mine. 


-157- 


CONFIDENTIAL 
11  Jul.  1942 

Channel  Coast: 

In  reply  to  a  request  made  by  telephone,  the  Naval  Staff 
informs  the  Armed  Forces  High  Command,  Operations  Staff  concerning 
the  state  of  readiness  of  all  batteries  on  the  islands  of  Alderney, 
Guernsey,  and  Jersey.   This  information  is  based  on  the  report  of 
the  Commanding  Admiral,  France.   Copy  as  per  Telegram  1/Skl  16911/42 
Gkdos.  is  in  War  Diary,  Part  C,  Vol.  X. 

Four  enemy  planes  attacked  the  radar  installation  at  Den  Haan  in  the 
afternoon.   Slight  personnel  losses  were  suffered. 

The  "Zaunkoenig11  mining  operation,  part  of  the  Seine  Bight  system  of 
mine  fields,  has  been  started.   The  PT  boats  which  were  supposed  to 
take  part  in  the  mining  operation  are  not  participating. 


III.  North  Sea,  Norway,  Arctic  Ocean  (, 

1.   North  Sea: 

Enemy  Situation: 

According  to  photo  reconnaissance  of  11  Jul.  the  following 
were  located  in  Scapa:   one  KING  GEORGE  V  class  battleship,  one 
battleship  probably  of  the  RENOWN  class,  3  heavy  and  6  light 
cruisers.   At  1732  in  quadrant  AN  2123  radio  monitoring  observed  a 
British  vessel  between  the  Shetlands  and  the  west  coast  of  Norway. 

Own  Situation: 

All  mine-sweeping  operations  were  suspended  because  of 
weather  conditions.   A  number  of  light  vessels  at  sea  were  reported 
to  have  suffered  accidents.   For  details  see  Telegrams  1950  and  1221. 

The  Commanding  Admiral,  Defenses,  North  reports  that  mine  field  "1* 
has  been  swept  but  no  mines  were  found. 


2.   Norway: 

Three  motor  mine  sweepers  were  unsuccessfully  shelled  from 
the  Rybachi  Peninsula  during  sweeping  operations  off  Petsamcv 

The  Swedish  ships  STEGEHOLM  and  ECUADOR  started  out  on  their  over- 
seas run  from  Kristiansand  South. 

The  cruiser  KOELN  and  the  destroyer  FRIEDRICH  ECKOLDT  arrived  in 
Kristiansand  South  after  completing  the  "Kunigunde"  mining  mission. 


<■ 


-158- 


CONFIDENTIAL 
11  Jul.  1942 

Group  North  issued  an  order  for  transfer  to  Trondheim.   The  cover 
name  Is  "Auerhahn".   The  destroyer  Z  "24"  and  the  FRIEDRICH  IHN  are 
assigned  to  serve  as  escort  in  place  of  the  "K  1"  which  is  not 
available  due  to  engine  trouble.   The  escort  is  to  proceed  prefer- 
ably only  as  far  as  Stavanger. 

LUETZOW  reports,  after  examination  at  Trondheim  shipyard,  that- it 
will  be  necessary  for  her  to  dock. 

3.   Arctic  Ocean: 

Enemy  Situation: 

According  to  air  reconnaissance,  5  steamers  were  proceed- 
ing on  a  130°  course  north  of  Murmansk  at  1335. 

Own  Situation: 

No  bombers  were  sent  into  action  against  these  remnants  of 
convoy  PQ,  17  on  11  Jul.  At  2400  submarines  were  returning  via  the 
convoy  route  at  71°  31 •  N. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

•A  gunboat  was  located  off  the  Karelian  coast.   She  was 
outfitted  approximately  as  follows:  one  88  cm  gun  forward  of  the 
bridge,  one  4  cm  anti-aircraft  gun  aft  of  the  bridge,  and  probably 
machine  guns  on  the  bridge. 

2.  Own  Situation: 

Transport,  convoy,  and  escort  duty  proceeding  according 
to  plan.  According  to  directive  from  Naval  Station,  Baltic,  mer- 
chant ships  may  proceed  only  in  groups  of  2  between  Swinemuende  and 
Danzig, 

Three  enemy  planes  carried  out  a  low-flying  raid  on  the  Flensburg 
shipyard  at  1817,  but  caused  only  a  little  damage  to  property.  For 
combat  report  of  the  Coastal  Defense  Commander,  West  see  Telegram 
2300. 

Mining  operations  and  anti-submarine  patrol  in  the  Gulf  of  Finland 
proceeding  according  to  plan. 

The  NETTELBECK  and  a  heavy  gun  carrier  fought  an  engagement  with 
enemy  naval  forces  south  of  Someri,  while  supporting  the  Finns  near 
that  island.  Neither  side  was  particularly  affected. 


■159- 


CONFIDENTIAL 
11  Jul.  1942 

According  to  a  Finnish  report,  the  Russians  employed  aerial  mines 
for  the  fii^st  time  against  Finnish  mine  sweepers. 

For  .report  of  the  Naval  Attache,  Stockholm  about  the  Swedish-Finnish 
agreement  concerning  air  reconnaissance  over  the  waters  around  the 
Aland  Islands,  see  Telegram  2036. 

In  view  of  the  momentary  enemy  submarine  situation 
the  Naval  Staff  does  not  hesitate  to  permit  Swedish 
reconnaissance  planes  to  operate  up  to  210°,  as  long 
as  the  information  obtained  is  conveyed  immediately 
to  the  Finnish  Navy. 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

Very  lively  reconnoitering  activity  in  the  southern 
rendezvous  area.   Planes  reported  sighting  submarines  100  miles 
west  of  Faeroe  Bank  and   60  miles  northeast  of  Rockall  Bank.   Planes 
likewise  reported  attacking  a  submarine  which  was  submerging  190 
miles  northwest  of  Cape  Vilano. 

An  attack  by  a  submarine  has  been  reported  in  the  West  Indies,  80 
miles  northeast  of  Port  of  Spain.   The  usual  sighting  reports  were 
intercepted  off  the  U.S.  east  coast. 

2,  Own  Situation; 

Submarine  U  "571"  sank  the  steamer  NICHOLAS  CTJNEO  (1,651 
GRT)  in  the  West  Indies  by  gunfire.  Submarine  U  "203"  reports 
sinking  the  steamers  CAPE  VERDE  (6,914  GRT)  and  STAN  VAC  PALEMBANG 
(10,444  GRT).   On  9  Jul.,  submarine  U  "66"  sank  the  steamer 
TRIGLAV  (6,363  GRT).   Submarines  TJ  "116"  and  U  "201"  both  claim  to 
have  sunk  the  tanker  C0RT0NA  (7,093  GRT). 

Submarine  U  "561"  succeeded  in  carrying  out  oun observed  the  second 
mining  mission  off  Port  Said  in  the  Mediterranean.  Further  infor- 
mation in  Supplement  to  Submarine  Situation,  War  Diary,  Part  B, 
Vol.  IV. 


VI.  Aerial  Warfare 

1.   British  Isles  and  Vicinity: 

Fighter  bombers  attacked  the  enemy  force  sighted  in  the 
afternoon  off  Dartmouth.   One  destroyer  was  sunk  and  another  was 
probably  sunk.   Two  steamers  were  probably  damaged  during  the  attack 
on  the  convoy  north  of  the  Scilly  Islands.   Two  planes  attacked 
Falmouth  as  an  alternative  target.  A  convoy  was  attacked  off 


-160- 


9 


CONFIDENTIAL 
11  Jul.  1942 

Orfordness;  results  not  observed.  A  few  bombs  were  dropped  on 
Lowestoft  as  an  alternative  target.   In  the  afternoon,  about  40 
enemy  planes  flew  in  a  wide  front  over  Jutland  in  the  direction  of 
Sweden.   Of  these,  20  planes  raided  Danzig  in  several  waves,  be- 
ginning at  1900.   A  number  of  reports  of  damage  have  been  received. 
However,  damage  of  importance  to  the  war  effort  was  inconsiderable,, 
Other  raids  were  carried  out  in  the  afternoon  on  Flenburg  and  near 
Tondern.   It  was  not  possible  to  send  up  our  night  fighters  due'  to 
unfavorable  weather  conditions. 

2,  Mediterranean  Theater; 

Forces  of  the  Commanding  General,  Armed  Forces,  South  were 
sent  into  action  against  Malta  airfields.   Also,  planes  supported 
the  African  Panzer  Army  in  the  area  of  El  Alamein. 

3.  Eastern  Front : 

One  plane  was  damaged  and  a  quantity  of  fuel  was  destroyed 
during  an  enemy  air  raid  on  the  Kirkenes  air  field. 


Warfare  in  the  Mediterranean: 

1.  Enemy  Situation; 

Mediterranean; 

Upon  her  arrival  in  Gibraltar  the  CHARYBDIS  was  put  into 
dock.   In  the  forenoon  the  EAGLE  was  at  sea  east  of  Gibraltar  for 
several  hours  of  drill. 

According  to  a  decoded  radio  report  of  the  British  Admiralty  the 
destroyer  KINGSTON  was  sunk  during  an  air  raid  on  the  Malta  ship- 
yard on  11  Apr. 

Air  reconnaissance  sighted  only  slight  convoy  traffic  in  the  area 
north  of  the  Nile  Delta  up  to  Port  Said.   No  substantial  change  in 
the  vessels  occupying  the  ports  of  Alexandria  and  Haifa.   Radio 
monitoring  intercepted  several  reports,  revealing  that  a  number  of 
ships  of  the  British  Mediterranean  fleet  are  anchored  in  Port  Said. 

2.  Own  Situation; 

Two  boats  of  the  3rd  PT  Boat  Flotilla  arrived  in  Augusta 
for  engine  overhaul.   Two  other  boats  are  en  route  to  Augusta. 

See  1/Skl  16927/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  XIV  for  recom- 
mendation of  the  deputy  Commanding  Admiral,  German  Naval  Command, 
Italy  that  the  Knight's  Cross  of  the  Iron  Cross  be  awarded  to  the 
Commander  of  the  3rd  PT  Boat  Flotilla,  Lieutenant  Kemnade. 


-161- 


CONFIDENTIAL 
11  Jul.  1942 

3.  Transport  of  Supplies  to  North  Africa; 

The  following  have  been  transported  to  Tobruk  by  the  Siena 
group:  206  men,  95  vessels,  15  anti-tank  guns,  526  tons  of  fuel, 
1,642  tons  of  ammunition  and  172  tons  of  other  army  materiel.  The 
steamer  JAEDJOR  and  2  naval  barges  arrived  in  Tobruk.   Unloaded  on 
10  Jul.:  at  Tobruk  445  tons;  at  Marsa  Matruh  547  tons.  Three  na- 
val barges  left  Palermo  for  Tripoli  on  10  Jul.  At  1400  a  direct 
hit  was  made  on  the  steamer  BROOK  in  Marsa  Matruh.  The  ship  burned 
up  and  is  considered  lost.  No  further  details  have  been  received. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Enemy  air  raid  on  Gavdhos  on  the  night  of  9  Jul,  Convoy 
duty  proceeding  according  to  plan,  without  noteworthy  occurrences. 

Black  Sea: 

Enemy  Situation: 

Reconnaissance  of  the  enemy  disclosed  only  very  slight 
movement  of  submarines  and  small  vessels. 

On  the  night  of  9  Jul.,  2  PT  boats  attempted  to  penetrate  into  Kerch 
harbor.  They  were  driven  off  by  machine  gun  fire  and  anti-tank  guns, 
and  escaped.  During  a  simultaneous  landing  attempt  made  by  3  boats 
south  of  Kerch  which  was  repulsed  by  the  Rumanians,  one  of  the  boats 
was  shot  into  flames. 

Own  Situation: 

It  has  been  accurately  determined  that  the  shipyard  in- 
stallations of  Sevastopol  have  been  completely  destroyed.  Anchorage 
space  is  available  in  the  harbor. 

The  northern  and  southern  convoys  proceeded  according  to  plan.  The 
Balaklava-Sevastopol  route  was  swept,  but  no  mines  were  found. 


» 


VIII.  Situation  East  Asia 

Violent  battles  are  in  progress  in  the  southern  part  of 
Chekiang  prqvince. 


-162- 


CONFIDENTIAL 
11  Jul.  1942 

IX.  Army  Situation; 

1.  Russian  Front; 

Army  Group  A; 

East  of  Markayevka  Italian  divisions  went  over  to  the 
attack  in  a  northeasterly  and  easterly  direction,  gaining  10  t'o  15 
km.  East  of  Kramatorsk  infantry  and  tank  units  crossed  the  Donets, 
reaching  Novo  Astrakhan.   Advance  units  reached  Shulginka.   North 
of  that  position  Rumanian  forces  are  near  Starobyelsk. 

Army  Group  B; 

On  the  southern  wing,  advance  units  reached  the  vicinity 
of  Markovka.   Tanks  and  motorized  units  advanced  as  far  as  the 
region  south  of  Kazanskaya.   In  further  assaults  the  troops  advanced 
to  the  Don,  south  of  Svoboda.   Enemy  attacks  against  our  defense 
front  near  Yelets  and  Livny  failed. 

Central  Army  Group; 

Strong  enemy  pressure  is  continuing  west  of  Byelev.   East 
of  Kirov  the  enemy  penetrated  our  lines  temporarily  at  several 
places.   New  enemy  attacks  are  to  be  expected.   Attempted  thrusts 
against  our  defensive  front  north  of  Byeloi  as  well  as  attempts  to 
break  out  of  the  pocket  proved  fruitless. 

Northern  Army  Group; 

The  enemy  is  continuing  his  futile  attacks  on  the  north- 
eastern Demyansk  front.   Local  engagements  on  the  rest  of  the  front 
of  this  group. 

2.  Finnish  Front; 
Nothing  to  report. 

3.  North  Africa; 

The  enemy  again  succeeded  in  breaking  through  close  to  the 
breach  he  made  yesterday,  capturing  2  additional  Italian  battalions. 
It  was  possible  to  seal  off  the  penetration  by  sending  in  German 
Army  and  anti-aircraft  artillery.  The  Panzer  Army  was  forced  to 
draw  off  heavy  German  forces,  particularly  the  bulk  of  the  German 
Army  and  anti-aircraft  artillery  from  the  southern  sector,  in  order 
to  restore  the  situation  in  the  north.   Consequently,  the  Panzer 
Army  went  over  to  the  defensive  on  the  southern  sector  with  weaker 
defense  forces,  occupying  the  fortified  positions  between  El  Taqua 
and  Ralat  with  the  bulk  of  its  forces.   During  the  British  attacks 
on  10  and  11  Jul.,  2  battalions  and  all  the  artillery  of  the 
Abrata  Division,  one  and  a  half  Bersaglieri  battalions  of  the  XXI 
Army  Corps,  and  1  battalion  of  the  Trieste  Division  were  taken 
prisoner.   Other  units  of  the  XXI  Army  Corps  took  flight,  leaving 


-163- 


confide: 

■       Jul      1942 

their  weapons  behind. 


t 


-164- 


T 


CONFIDENTIAL 
12  Jul.  1942 

Items  of  Political  Importance 

Sweden: 

The  official  Russian  telegraphic  agency  Tass  denied  that  Russian  sub- 
marines attacked  Swedish  steamers  in  Swedisn  territorial  waters.  How- 
ever, the  Swedisn  Foreign  Ministry  states  that  there  is  proof  of  Russian 
submarine  attacks.   Measures  for  the  protection  of  Swedish  shipping 
will  be  Increased. 

Turkey; 

According  to  the  Vichy  telegraphic   service,    the  Turkish  Government  has 
taken  certain  precautionary  measures  on  the   eastern  and  southern  borders, 
however,    the  Turkish-Russian  border  has  not   yet  been  completely  olosed. 

Argentina; 

Also  according  to  the  Vichy  telegraphic  service,  the  Argentine  Govern- 
ment, following  the  recommendation  of  the  Rio  de  Janeiro  conference, 
decided  to  break  off  telegraphic  and  radio  communication  with  the  three 
Axis  powers. 

Japan: 

According  to  a  report  of  the  Ambassador  at  Tokyo,  rumors  are  circulating 
to  the  effect  that  a  government  reorganization  is  impending.  Although 
there  are  no  apparent  reasons  for  such  a  reorganization,  it  is  quite 
characteristic  of  the  Japanese  for  the  cabinet  to  lose  its  useful- 
ness simply  with  the  passage  of  time.  After  the  none  too  favorable 
experiences  with  the  Yonai  cabinet,  the  navy  is  not  inclined  to  take- 
over the  prime  ministry.  Abe,  retired  general,  prime  minister,  and 
leader  of  the  Imperial  Aid  Association,  is  mentioned  as  the  foremost 
choice  to  succeed  To jo.  In  the  opinion  of  the  Ambassador,  General 
Abe  must  be  regarded  as  a  colorless  personality  and  his  appointment 
will  be  no  gain  to  us.  The  Ambassador  is  of  the  opinion  that  the 
change  may  possibly  be  made  in  the  fall. 


Special  Items 

I,   The  Fleet  Commander  and  Commanding  Admiral,  Battleships  submitted 
to  Group  North,  with  copy  to  the  Naval  Staff,  a  report  concerning 
operation  " Roessel sprung" .  According  to  this  report  the  fleet  force, 
on  the  basis  of  the  snemy  situation,  took  the  precaution  of  leaving 
Alta  Fjord  through  the  Inland  waters  on  the  afternoon  of  5  Jul.,  even 
before  the  code  word  had  been  received,  in  order  to  save  time.  Upon 
receipt  of  the  order  of  departure  from  Group  North,  the  force  kept  to 


-165- 


CONFIDENTIAL 
12  Jul.  1942  ~~   ' 

the  Island  route,  putting  out  to  sea  west  of  Rolfsoe,  since  the  sub- 
marine danger  vas  believed  to  be  greater  at  Nordkyn  and  it  was  also 
believed  that  the  uncertain  mine  situation  in  the  Brei  Sound  would  cause 
delay.   The  ship  radio  intelligence  service  intercepted  sighting  reports 
presumably  from  two  Russian  submarines,  one  north  of  Ingoe  and  the  other 
north  of  Nordkyn;  visibility  reported  excellent. 

The  proposal  to  repeat  the  run  out  of  Alta  Fjord  was  made  after  in- 
formation had  been  received  that  the  remnants  of  the  convoy  were  still 
far  north  and  that  the  enemy  escort  forces  also  remained  west  of  15°E 
when  they  learned  that  our  task  force  moved  out.  The  Fleet  Commander's 
report  pointed  out  that  sailing  through  the  island  waters  calls  for 
great  navigating  and  seafaring  skill,  particularly  for  the  TIRPITZ.   It 
also  made  mention  of  the  favorable  experience  with  the  ship  radio  in- 
telligence service  whose  Information,  supplementing  that  of  the  radio 
intelligence  from  Germany,  gave  the  Fleet  a  clearer  picture  of  the  enemy 
situation  than  could  be  obtained  by  the  authorities  at  home.  For  these 
reasons,  and  since  the  transmission  of  intelligence  is  inadequate  for 
future  operations,  it  is  desirable  that  the  Operations  Staff  be  trans- 
ferred to  the  vicinity  of  the  operational  area.   In  conclusion,  the 
brief  report  again  points  out  that  the  fact  that  the  enemy  detected  the 
departure  for  operation  "Roesselsprung"  prematurely  may  have  been  partly 
responsible  for  dispersing  the  convoy  and  diverting  parts  thereof  into 
the  outermost  northeastern  Barents  Sea,  thus  giving  the  submarines  and 
planes  the  time  and  opportunity  to  destroy  it  piecemeal. 

In  its  comments  on  the  brief  report,  Group  North  criticized  the  fact 
that  the  task  force  used  a  different  exit  from  the  island  waters  than 
was  planned,  without  reporting  this  change,  as  a  result  of  which  the 
operational  command  unnecessarily  had  the  wrong  Impression  as  to  the 
actual  position  of  the  task  force.  With  reference  to  its  rejection  of 
the  proposal  to  repeat  the  operation,  Group  North  observes  that  the 
whereabouts  of  the  heavy  ships  was  not  established  for  certain  and  that 
the  situation,  therefore,  was  not  radically  changed.   Thus  it  was  no 
longer  justifiable  to  risk  our  valuable  ships,  in  view  of  the  fact 
that  the  convoy  had  been  weakened  and  widely  dispersed.  Moreover,  the 
destroyers  would  have  run  short  of  fuel  if  they  had  been  sent  far  north. 

In  view  of  bad  communications  Group  North  considers  the  disadvantages 
that  will  result  from  a  transfer  of  the  operational  command  to  the 
vicinity  of  the  zone  of  operations  as  of  greater  consequence  than  the 
advantage  to  be  derived  from  a  better  knowledge  of  the  conditions  by 
being  in  the  area.  Group  North  agrees  with  the  conclusions  of  the  brief 
report,  stating  that  subsequent  investigation  has  shown  that  it  was 
correct  from  the  standpoint  of  this  particular  operation  (not  to  mention 
political  and  strategic  implications)  to  break  off  the  operation,  since 
even  without  it  almost  a  100$  success  was  scored.  The  operation  could 
only  have  had  a  psychological  effect,  provided  the  ships  would  not  have 
been  forced  to  break  It  off  later  due  to  enemy  action  before  establish-  . 


-166- 


CONFIDENTIAL 
12  Jul.  194a 

lag  contact  with  the  convoy.  In  conclusion  Group  North  stresses  the 
smooth  manner  in  which  the  operation  was  carried  out.  The  Naval  Staff 
has  no  comments  as  to  that. 

II.  Ae  a  result  of  the  explosion  of  an  ammunition  dump  in  Rumania  on 
11  Jul.,  an  Army  fuel  dump  in  tne  vioinity  was  likewise  destroyed.   In 
view  of  increasing  enemy  sabotage  activity,  tne  Armed  Forces  High  Com- 
mand, Operations  Staff  issued  a  directive  to  cheok  all  seourity  measures 
and  to  increase  them  as  far  as  the  forces  and  available  means  permit. 
The  Naval  Staff,  Quartermaster  Division  is  taking  further  steps  on 
behalf  of  the  Navy. 

III.  For  statement  by  the  Naval  Intelligence  Division,  Foreign  Navies 
Branch  conoerning  U.S.  policy  on  bases,  in  acoordance  with  the  position 
taken  on  18  Jun.  1942,  with  an  outline  review,  see  1/Skl  24077/42  geh. 
in  War  Diary  Part  C,  Vol.  XVII. 


Situation  12  Jul.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

Nortn  Atlantio: 

Unconfirmed  rumors  are  circulating  in  Ireland  to  the  effeot 
that  the  QUEEN  MARY  en  route  from  America  was  sunk  on  20  Jun.  with 
16,000  U.S.  soldiers  aboard. 

South  Atlantic: 

Tne  Naval  Attacne  at  Buenos  Aires  reports  a  rumor  tnat  all 
U.S.  army  fliers  stationed  in  Brazil  have  been  sent  to  Africa. 

According  to  Italian  reports  2  heavy  snips  and  16  cruisers  and 
destroyers  are  anchored  in  Freetown.  Two  unidentified  vessels  and 
2  corvettes  are  at  sea  in  tne  Freetown  area.  Aocording  to  the  same 
source,  on  4  Jul.  1  aircraft  carrier  and  1  cruiser  are  said  to  have 
been  anohored  in  Capetown  and  2  British  cruisers  as  well  as  some  150 
steamers  in  Durban. 

The  German  consulate  at  Lourenoo  Marques  reports  tne  statement  of  a 
Spanisn  seaman  of  9  Jul.,  according  to  which  a  number  of  ships  with 
35,000  British  soldiers  and  war  materiel  aboard  left  Durban  for  Egypt 
on  4  Jul.  Between  3  and  5  Jul.,  14  steamers  loaded  with  war  materiel 
left  Lourenoo  Marques  for  the  Red  Sea.  Heavy  caliber  guns  are  said  to 
have  been  unloaded  in  Mombasa. 


-167- 


CONFIDENTIAL 
Yd   Jul.  194^ 

Indian  Ocean; 

At  1735  the  British  motor  ship  HAURAKI  flashed  a  merchant 
raider  distress  signal  (QQQ)  from  a  position  17°32'S,  81025*S  (middle 
of  the  Indian  Ocean)  that  she  had  been  ordered  to  neave  to.  A  quarter 
of  an  nour  later  the  HAURAKI  reported  her  capture  by  the  Japanese. 
This  may  nave  some  connection  with  the  operation  of  ship  "10".  How- 
ever, judging  from  the  contents  and  type  of  the  radio  messages,  this 
seems  improbably. 

a.   Own  Situation: 

The  Naval  Attache  at  Tokyo  transmits  instructions  of  the 
Japanese  Navy  for  tne  MADRONO'S  entry  into  Batavia.  Corresponding 
directive  to  the  MADRONO  rescinding  the  standing  order,  by  Radiogram 
1153  (see  War  Diary  11  Jul.). 

The  Naval  Attache  at  Tokyo  received  a  directive  to  send  to  Germany 
all  prisoners  of  war  belonging  to  any  of  the  states  not  at  war  with 
Japan,  suoh  as  Greece.   These  prisoners  are  to  be  sent  to  Germany  on 
one  of  the  next  blockade  runners.   (See  Telegram  2110.) 

Radiogram  0614  informs  all  vessels  in  foreign  waters  concerning  the 
successful  camouflaging  of  the  DOGGERBANK  while  she  was  laying  a  mine 
field  and  concerning  her  success  in  outwitting  enemy  air  and  naval 
foroes  sne  encountered  (one  coastguard  patrol  vessel,  1  BIRMINGHAM 
class  cruiser  and  1  auxiliary  cruiser),  and  gives  description  of  the 
auxiliary  oruiser. 

Further  information  concerning  the  question  of  Spanish  restoration  by 
Radiogram  0648. 

Information  concerning  enemy  situation  by  Radiogram  1901. 


II.  Situation  West  Area 

1.   Snemv  Situation: 

According  to  an  intelligence  report  from  a  well-informed 
diplomatic  source,  oontrary  to  tneir  practice  hitherto,  the  British 
have  recently  been  spreading  rumors  systematically  in  Spain  to  the 
effect  that  they  have  been  foroed  to  abandon  any  large-soale  invasion 
attempt  due  to  a  shortage  of  shipping  space,  if  for  no  other  reason. 
On  the  other  nand,  the  Spanish  intelligence  service  is  in  possession 
of  information  that  a  seoond  front  is  imminent,  probably  in  Normandy, 
involving  large  foroes. 


-168- 


CONFIDENTIAL 
12  Jul.  1942 

Another  report  from  a  reliable  diplomatic  source  contends  that  since 
14  May  20  to  35  American  planes,  both  bombers  and  long-range  transport 
planes,  are  being  flown  to  Great  Britain  daily.  About  half  of  tnese 
planes  go  to  Russia  without  cargo  and,  for  the  most  part,  directly 
over  Germany, . at  a  hign  altitude.  Independent  of  the  above  source, 
pilots  and  leading  officials  of  the  Pan  American  Airways  confirm  the 
total  of  30  planes  per  day;  in  addition  one  transport  ship  with  troops 
aboard  is  said  to  leave  America  daily  for  Great  Britain. 

2.   Own  Situation; 

Atlantic  Coast: 

Nothing  to  report. 

Channel  Coast: 

The  "Zaunkoenig"  mine-laying  operation  was  carried  out  accord- 
ing to  plan  on  the  nignt  of  11  Jul.   The  PT  boats  which  nad  been 
scneduled  to  take  part  in  this  operation  did  not  participate  due  to 
weather  conditions.  Mine-laying  mission  "Adria"  has  been  set  for  the 
night  of  12  Jul. 


III.  North  Sea.  Norway  Arctic  Ocean 

1.  North  Sea: 

Enemv  Situation: 

Ail  reconnaissance  disclosed  heavy  convoy  traffic  on  the 
east  coast  of  Great  Britain.   The  normal  amount  of  air  reconnaissance 
in  the  northern  North  Sea. 

Own  Situation: 

Four  ground  mines  have  been  swept.  Convoy  duty  is  greatly 
curtailed  due  to  weather  conditions.  The  3rd  Torpedo  Boat  Flotilla's 
cruise  to  Cuxhaven  and  Flusning,  whence  it  is  to  be  transferred  to 
the  west  area,  hae  been  postponed  for  24  hours  due  to  weatner  conditions, 
Mine-sweeping  operations  have  also  been  cancelled  for  the  most  part. 
The  "Kaspar"  mine-laying  operation  (southwestern  mine  field)  was 
started  according  to  plan. 

2.  Norway; 

Enemy  Situation: 

Unidentified  code  words  radioed  from  a  Russian  station  were 
intercepted  at  1317. 


-169- 


CONFIDENTIAL 


12  Jul.  1942 


Own  Situation: 

On  10  Jul.  lively  enemy  air  aotivity  in  the  area  of  the 
arctic  coast.  In  addition  to  an  air  raid  on  the  Kirkenes  airfield 
''see  War  Diary  11  Jul.),  Yardoe  was  bombed  without  damage.  Enemy  planes 
attacked  a  submarine  cnaser  and  the  supply  ship  IDEAL  on  11  Jul.   Enemy 
air  activity  over  Kristiansand  South  on  11  Jul.  and  over  Stavanger  on 
the  morning  of  12  Jul. 

In  the  declared  area  off  Harstad  West,  the  cable  layer  LANDEGO  struck 
one  of  our  mines  and  sank.  The  vessel  was  proceeding  under  orders  of 
the  483rd  Army  Coast  Artillery. 

Due  to  enemy  reconnaissance  at  Kristiansand  South,  the  KOELN  and  the 
ECKHOLDT  have  been  transferred  to  the  Oslo  Fjord  for  the  time  being. 
They  arrived  there  at  1605. 


3. 


Arctic  Ocean: 


Nothing  to  report. 

4.   Special  Items: 

With  regard  to  the  question  of  command  over  the  naval  forces 
in  the  Norwegian  area  and  to  the  distribution  of  these  forces  (see  War 
Diary  9  Jul.},  Group  North  decides  that  for  the  time  being  it  is  not 
planned  to  transfer  the  TIRPITZ  and  the  HIPPER  back  to  Trondheim  since 
the  threat  of  air  raids  at  Narvik  is  no  greater  than  there. 

In  view  of  the  oil  consumption  involved,  it  would  be  undesirable  to 
transfer  the  ships  again  to  the  north  in  the  event  of  new  operations. 
Group  North  is  in  accord  with  the  proposal  to  have  the  Fleet  Commander 
embark  on  the  HELA.   As  regards  the  question  of  command  over  the  fore 
Group  North  points  to  its  decision  of  8  Jul.  (see  War  Diary  8  Jul., 
Telegram  2349). 


IV.   Skagerrak.  Baltic  Sea  Entrances,  Baltic  Sea 

1.    Enemy  Situation: 

Radio  monitoring  located  12  submarines  at  sea.  According  to 
air  reconnaissance  5  destroyers  or  torpedo  boats  (probably  an  error  in 
identification),  6  patrol  vessels,  and  5  submarines  were  anchored  in 
the  afternoon  in  the  northern  harbor  of  Lavansaari. 


In  the  evening,  3  destroyers  (see  above)  were  sighted  at  anc: 
of  Lavansaari. 


70- 


C  ONFIDENTIAL 
13  Julo  1942 

2.   Own  Situation: 

Convoy  and  patrol  duty  performed  according  to  plan  in  the 
Baltic  Sea  entrances  and  in  the  western  Baltic  Sea, 

Forces  of  the  Commanding  Admiral,  Defenses,  Baltic  Sea  in  Aarhaus  fired 
on  passing  enemy  planes,  without  any  observable  effect.   For  particulars 
bearing  on  the  enemy  air  raids  on  Danzig  and  Schleswig-Holstein  6n 
11  Jul.,  see  Telegrams  0820  and  1130.  It  is  altogether  possible  that 
the  Sassnitz-Trelleborg  area  as  well  as  Kiel  Bay  as  far  as  the  Flensburg 
Innenfoerde  are  mined. 

In  view  of  the  shortage  of  escort  ships,  the  measures  adopted  by  Group 
North  to  meet  the  constant  submarine  menace  in  the  Baltic  Sea  make  it 
necessary,  in  an  emergency,  to  fall  back  on  torpedo  boats  of  the  Fleet 
as  well  as  training  and  test  vessels  of  the  Second  Admiral,  Submarines, 
and  vessels  of  the  Inspectorates.  These  vessels  are  to  be  considered 
for  assignment  to  operations  only  in  case  of  need  and  by  direct  agree- 
ment of  the  stations  involved,  so  as  to  interfere  as  little  as  possible 
with  the  test  and  training  activities.  All  cruises  by  warships  are  to 
be  utilized  for  naval  missions.  Copy  of  corresponding  directive  of 
Group  North  as  per  1/Skl  24225/42  geh.  is  in  War  Diary,  Part  C,  Vol. 
III. 

On  11  Jul.  the  German  motor  schooner  DORA,  sank  in  the  channel  of 
Gjedser.   The  cause  has  not  yet  been  established.  On  the  same  date 
the  Swedish  steamer  LULEA  (6,600  GRT)  with  a  cargo  of  ore  intended  for 
Germany  was  torpedoed  and  sank  while  in  convoy  in  Swedish  territorial 
waters  off  Vaestervik. 

Acoording  to  a  report  of  the  Swedish  Navy,  Swedish  warships  are  furnish- 
ing escorts  to  merchant  shipping  between  Landsort  and  Visby.  These 
escorts  are  under  orders  to  attack  both  submerged  and  surfaced  sub- 
marines whenever  it  appears  that  they  are  likely  to  attack.  The  Russian 
Military  Attache  at  Stockholm  received  a  communication  to  that  effect. 
(See  Telegram  1601.) 

Submarine  patrol  and  mine  sweeping  activity  in  the  Gulf  of  Finland 
proceeding  according  to  plan.  The  mine  field  "Seeigel  XIX"  has  been 
laid.  Mine  sweepers  "18"  and  "16"  made  an  attack,  guided  by  oil  slioks, 
and  report  the  certain  destruction  of  a  submarine,  taking  as  evidence 
fragments  of  equipment  which  came  to  the  surface. 


J.   Submarine  Warfare 

1.   Enemv  Situation: 

According  to  radio  monitoring  a  British  plane  unsuccessfully 
att&oked  a  submerging  submarine  at  0923  75  miles  nortnwest  of  Cap 
Qrtegal.  No  noteworthy  reports  were  intercepted  from  tha  American 
e^ajft  and.  the  West  Indies. 


-171- 


CONFIDENTIAL 
12  Jul.  1942 

2 .   Oim  Situation: 

In  the  Arctic  Ocean,  submarine. D  "37611  unsuccessfully  attack- 
ed an  escort  vessel  in  quadrant  AC  6355.   The  fact  that  a  large  number 
of  escort  vessels  has  been  located  in  this  area,  indicates  that  damaged 
ships  of  convoy  PQ  17  are  still  at  sea. 

The  sailing  order  for  group  "Wolf"  has  been  changed.   The  group  is  not 
to  leave  until  15  Jul.  at  0000.   The  steamer  CORTONA  (see  War  Diary 
11  Jul.)  was  sunk  while  sailing  in  the  convoy  which  had  been  spotted 
by  submarine  U  "201"  west  of  Madeira.  Four  other  steamers  of  the  same 
convoy,  totalling  26,000  GRT,  were  sunk  by  submarines  of  group  "Hai". 
Submarines  U  "116",  "201"  and  "582"  participated  in  the  latter  sinkings. 
Submarine  U  "136"  which  also  belongs  to  this  group  has  not  complied 
with  the  request  to  give  her  position. 

No  reports  of  successes  scored  have  come  in  from  the  American  coastal 
waters  or  the  West  Indies.  Serious  apprehension  is  likewise  being 
felt  for  the  fate  of  submarines  U  "173"  and  U  "215". 

No  noteworthy  reports  have  been  received  from  the  Mediterranean. 


C 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Fighter  bombers  attacked  and  damaged  1  freighter  and  1 
escort  vessel  in  the  Channel.   During  the  night  49  German  planes  laid 
mines  in  the  Thames.  During  the  night  of  Id   Jul.,  only  coastal  flights 
were  observed  over  the  German  Bight,  probably  for  the  purpose  of  laying 
mines.   Some  50  enemy  flying  missions  were  reported  from  western  France. 

2.  Mediterranean  Theater: 

Raids  on  Malta  airfields  continued.  ,  The  Afrioan  Panzer  Army 
was  given  support,   centering  on  the  left  wing  of  the  El  Alamein  front. 

3.  Eastern  Front: 

During  11  Jul,  light  foroes  attacked  Novorossisk,  Anapa, 
Tuapse  and  Tamanskaya.  No  noteworthy  successes  were  observed.  On  the 
arotic  front,  the  shipyard  of  Rosta  was  again  attacked.  Two  hits  were 
scored  on  the  dry-dock. 

4.  8pecial  Items: 

a.        The  Commander  in  Chief,  Air  Force  informed  the  Swedish 
Government  through  the  Foreign  Ministry  that  in  view  of  numerous 


-172- 


CONFIDENTIAL 
12  Jul.  1942 

incursions  made  by  British  planes,  German  fighters  will  be  sent  into 
action  in  the  Jutland  area  north  of  the  Kolding-Esbjerg  line,  across 
the  Skagerrak,  into  the  area  of  southern  Norway  as  far  as  Oslo.  Hence, 
beginning «the  middle  of  July,  all  planes  making  night  flights  into  the 
aforementioned  area  will  be  exposed  to  the  danger  of  attack.    ' 

b.   In  accordance  with  the  wish  of  the  Foreign  Ministry  to 
avoid  any  incidents  which  might  adversely  affect  the  favorable  turn 
of  public  opinion  towards  Germany,  the  Commander  in  Chief,  Air  Force, 
has  dispatched  a  corresponding  directive  to  the  5th  Air  Force  and  to 
the  Commanding  General,  Air  Force  Group  Command,  Central  Area.  Accord- 
ing to  this  directive,  neutral  vessels  are  to  be  attacked  without 
warning  only  if  it  has  been  established  beyond  a  doubt  that  they  are 
inside  the  declared  areas.   (See  Telegram  1315.) 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation; 

Mediterranean; 

Air  reconnaissance  did  not  obtain  any  noteworthy  information. 
Radio  monitoring  reports  that  brisk  submarine  aotivity  prevailed.  A 
special  British  submarine  operation  is  therefore  believed  to  be  in 
progress. 

2.  Own  Situation: 

Mediterranean; 

On  11  Jul.,  enemy  planes  attacked  Marsa  Matruh  in  the  after— 
noon  and  Benghazi  in  the  evening.  From  0030  to  0115  on  12  Jul.,  Marsa  ■ 
Matruh  was  heavily  attacked  by  planes  and  simultaneously  boabarded  by  3 
destroyers.   The  harbor  was  cleared,  since  the  BROOK  was  still  ablaze, 
with  an  ammunition  oargo  aboard.   The  steamer  STURLA  which  had  put  to 
sea  was  sunk  by  enemy  destroyers  brought  to  the  scene  by  shadowing 
planes.   The  crew  was  saved  by  PT  boats.   Lastly,  the  tug  MAX  BEHRENDT 
was  sunk  on  11  Jul.  during  an  enemy  air  raid  on  Tobruk.  It  is  not  yet 
known  whether  the  enemy  naval  forces  caused  the  loss  of  any  other  ships 
plying  along  the  coast. 

3.  Transport  of  Supplies  to  North  Africa; 

Two  Italian  destroyers  departed  from  Brindisi  for  Bengnazi 
and  Tobruk,  carrying  food  supplies  and  Italian  marines.   Seven  German 
naval  barges  are  en  route  from  Italy  to  Tripoli.  The  motor  ships 
RAVELLO,  APUANIA  and  UNIONE  arrived  in  Benghazi  during  the  evening 
of  11  Jul.  The  motor  ship  MONVTSO  and  the  steamer  BIXIO  left  the 


-173- 


CONFIDENTIAL 
18  Jul.  1942 

latter  place  for  Brindiei.  Two  Italian  transport  submarines  which  wert 
bound  for  Marsa  Matruh  were  escorted  to  Tobruk  since  it  is  at  present 
too  dangerous  to  unload  at  Marsa  Matrun.   The  tanker  HELLE  is  due  to 
leave  Suda  for  Tobruk  on  14  or  15  Jul. 

4.   Area  Naval  Group  South: 

Aegean  3ea; 

The  Candia  net  barrage  has  again  been  laid.  Convoy  duty 
proceeding  according  to  plan. 

Black  Sea; 

Enemy  Situation: 

Radio  monitoring  disclosed  the  presence  at  sea  of  1  cruiser 
and  probably  2  destroyers.  Otherwise  only  little  shipping  traffic 

Own  Situation: 

The  enemy  staged  a  heavy  air  raid  on  Mariupol  during  the 
night  of  11  Jul.,  causing  heavy  damage  to  materiel  in  the  shipyard, 
to  the  coastal  patrol  flotilla,  and  to  buildings.  For  particulars  see 
Telegram  1945.  Convoys  proceeding  according  to  plan. 


ri 


VIII.  Situation  East  Asia 
Nothing  to  report.  - 


1%.  Army  Situation 

1.   Russian  Front: 

Armv  Group  A: 

Continuing  their  advance  our  troops  reached  the  area  south 
and  northeast  of  Vorosnilovsk.   On  the  left  wing  of  this  Army  Group, 
south  of  Starobyelsk,  the  tank  units  crossed  the  Aidar  River  and 
advanced  eastward.  Advance  units  are  20  km  south  of  Byelovodskoye. 

Armv  Group  B: 

The  southern  wing  of  Army  Group  B  is  engaged  in  a  battle  for 
Byelovodskoye.  Infantry  units  nave  reached  the  west  bank  of  the  Don 


-174- 


CONFIDENTIAL 
12  Jul.  1943 

along  the  entire  sector.  Staging  a  neavy  attack  with  200  tanks,  the 
enemy  broke  tnrougn  our  positions  at  Voronezh  and  penetrated  into  the 
northern  end  of  the  city.   The  defensive  front  south  of  Yelets  was 
broken  through  in  a  sector  held  by  a  panzer  division.  Counterattacks 
are  in  progress.  According  to  prisoner  of  war  statements  and  captured 
doouraents,  32  enemy  tank  brigades,  with  a  total  of  1800  tanks  have  been 
committed  in  the  area  between  Voronezh  and  Livny  since  28  Jun.  Half 
of  these  have  so  far  been  destroyed. 

Central  Army  Group.: 

In  the  Byelev  area  the  enemy  appears  to  be  regrouping. 
Further  attacks  are  expected.   Enemy  attacks  southwest  of  Sukhinichi 
and  west  of  Kirov  were  repulsed.  A  tank  assault  on  the  positions 
south  of  the  highway  in  the  Yukhnow  area  broke  througn  our  lines  at 
one  point.  A  move  to  seal  off  the  break-througn  is  under  way.  The 
pockets  in  the  Byeloi  area  have  been  tightened  further. 

Northern  Army  Group: 

Local  skirmishes  without  any  noteworthy  effect. 

2.  Finnish  and  Norwegian  Front: 
No  noteworthy  engagements. 

3.  North  Africa: 

Our  attacking  troops  succeeded  in  taking  a  dominating 
elevation  at  the  point  of  penetration  west  of  El  Alamein  following 
a  bitterly  oontested  battle,  and  the  enemy  was  thrown  back  4  km  to  the 
east.  According  to  captured  orders  and  prisoner  statements,  4  bat- 
talions of  the  9th  Australian  Division  have  been  committed  in  the 
El  Alamein  position  and  2  battalions  in  the  Arairiya  position  further 
to  the  rear.  The  latter  position  is  southwest  of  Alexandria. 


-175- 


CONFIDENTIAL 
13  Jul.  1942 

Items  of  Political  Importance 

France: 

The  French  Government  communicates  that  according  to  reports  from 
abroad  on  2  Jul.  the  British  occupied  the  Mayotta  radio  station  on 
the  Comoro  Islands  in  a  surprise  attack. 

Great  Britain: 

Considerable  comment  was  aroused  in  political  circles  when  the  Beaver- 
brook  newspaper,  The  Daily  Express,  which  hitherto  had  almost  unreserved- 
ly supported  the  Churchill  policy,  made  a  complete  about-face  and 
called  for  immediate  elections.   In  its  May  issue  the  periodical 
"Nineteenth  Century"  also  launched  a  widely  discussed  and  unusually 
severe  attack  on  Churchill's  military  strategy.  It  is  considered 
a  most  serious  mistake  not  to  have  made  every  effort  to  defeat  the 

Italian  fleet  at  the  very  outset,  which  indicates  that  the  Japanese  \ 

and  Italian  navies  were  grossly  underestimated.   The  second  grave  mis- 
take was  that  too  great  importance  was  placed  on  bombing  Germany, 
and  the  construction  of  fighter  planes  was  neglected.   On  the  other 
hand,  in  a  speech  Attlee  described  Churchill's  position  in  this  war 
as  unassailable. 

Egypt: 

In  a  secret   session   of  the   Chamber,   the  Prl^e   Minister  declared   that 
it  is  his   desire  to   continue  to  keep  the   country  out   of  the   war  and 
that  King  Farouk  will  not  leave   the   country.      For  information   concern- 
ing the  serious   encounter  between  King  Farouk   and  the  British  Ambassador, 
see  Political   Review,  No.   161,  Paragraph  7. 

Japan : 

According  to  a  German  official  news  agency  (DNB)  report,  the  Japanese 
military  administration  on  the  island  of  Sumatra  is  being  replaced  by 
a  civilian   administration.  ( 


Conference  on   tfte  Situation  with  the  Chief,  Naval  Staff 

I.       The  Chief  of  Operations  Division,   Naval   Staff,  Foreign  Affairs 


-176- 


CONFIDENTIAL 
13  Jul.  1942 


Section  reports  as  follows:  One  steamer  has  started  the  delivery  of 
provisions  to  the  Antilles.   The  French  Government  requested  permission 
to  have  two  additional  steamers  for  the  same  purpose.   Concerning 
the  French  ships  at  Alexandria:   The  Italian  Armistice  Commission, 
France,  rejected  in  sharpest  terms  the  request  for  granting  the  ships 
entry  into  Piraeus  or  a  harbor  on  Crete,  proposing  that  the  port 
of  Navarino  be  used  for  the  purpose.   Replying  to  Admiral  Wever, 
General  Cavallero  is  said  to  have  referred  to  the  Duce  directive.  He 
reports  further  concerning  the  French  request  to  enter  Into  negotiations 
with  the  U.S.  Government  In  the  matter  of  provisioning  the  French  part 
of  Madagascar;  also  concerning  the  settlement  with  Argentina  of  the 
RIO  TERCERO  incident,  and  concerning  the  last  voyage  of  the  diplomatic 
exchange  ship  DROTTNINGHOLM  from  New  York  to  Lisbon  and  back.  The 
Foreign  Ministry  had  originally  intended  to  transport  some  600,000 
people  from  America.   The  Chief,  Naval  Staff  states  in  this  connection 
that  the  fact  that  the  ship  will  make  no  further  voyages  of  this  kind 
should  not  be  blamed  on  the  Navy. 

A  more  detailed  account  of  all  items  covered  in  the  report  by  the  Chief 
of  Operations  Division,  Naval  Staff,  Foreign  Affairs  Section  is  in 
War  Diary,  Part  C,  Vol.  VIII. 

II.  The  Military  Attache  reports  that  the  Naval  Attache  at  Tokyo  is 
shipping  home  about  100  tons  of  copper  for  the  Navy  with  the  next 
blockade  runners.  Another  report  states  that  the  invasion  drill  in 
the  Scheldt  in  the  presence  of  Japanese  officers  took  place  without 
any  special  incidents. 

III.  Report  of  the  Chief,  Naval  Staff  Intelligence  Division  concerning 
Vatican  peace  efforts.   Secretary  of  State  Hull  replied  to  Vichy  that 
peace  is  out  of  the  question  as  long  as  Hitlerism  has  not  been  destroyed. 

In  a  very  restricted  circlet 

IV.  Report  of  the  Chief  of  Operations  Branch,  Naval  Staff  Operations 
Division  as  follows: 

a.  Concerning  directive  of  the  Armed  Forces  High  Command, 
Operations  Staff  regarding  measures  for  defense  against  enemy  landing 
in  the  western  area;  including  the  6th  Corps  Area  in  the  defense  area. 
See  memorandum  in  War  Diary,  11  Jul. 

b.  Concerning  Fuehrer  Directive  No.  43  of  11  Jul.  with  reference 
to  the  continuation  of  the  Crimean  operation: 


-177- 


CONFIDENTIAL 
13  Jul.  1942 

(1)  The  next  task  of  tne  11th  Army  is  tc  complete,  no  later  than 
by  the  beginning  of  August,  all  preparations  for  the  main  body  of  its 
troops  to  cross  the  Strait  of  Kerch.  The  object  of  this  crossing  is  to 
advance  in  a  southeasterly  and  easterly  direction  on  both  sides  of  the 
western  foothills  of  the  Caucasus  (operation  "Bluecher" ) • 

(2)  Instructions  for  the  operation: 

In  accord  with  the  recommendations  of  the  11th  Army  the  cross- 
ing is  to  be  so  organized  that  the  strongest  possible  units  will  land 
in  the  rear  of  the  enemy  coastal  fortifications.  •  The  hilly  terrain 
north  of  Novorossisk  must  then  be  captured.  The  ports  of  Anapa  and 
Novorossisk  are  to  be  occupied,  thus  eliminating  these  two  bases  of 
the  enemy  fleet.   (This  is  followed  by  instructions  for  the  continuation 
of  the  operation  and  orders  regarding  the  allocation  of  medium  and 
heavy  artillery.) 

(3)  The  Navy  is  hastening  to  take  all  measures  to  make  available  L 
the  necessary  shipping  space,  as  specified  in  a  more  detailed  Army 

request . 

In  addition  to  ships  already  available  and  those  due  to  arrive  in  the 
Black  Sea  and  the  Sea  of  Azov,  other  suitable  ships  are  to  be  acquired 
by  charter  or  purchase  from  Bulgaria  and  Rumania,  in  order  to  meet  re- 
quirements. 

During  the  operations  proper  the  Navy  is  to  give  support  to  the  landing 
troops  for  the  crossing  and  to  use  the  forces  at  its  command  to  prevent 
the  enemy  fleet  from  interfering. 

The  naval  forces  assigned  to  the  transport  of  the  landing  troops  are 
to  be  placed  under  the  command  of  the  11th  Army  for  the  crossing. 

(Note  by  the  Naval  Stafft  Thus,  for  the  time  being, 

PT  boats,  motor  mine  sweepers,  and  submarines  are  not 

to  be  put  under  the  11th  Army.   See  l/Skl  1290/42  Gkdos. 

Chefs,  of  9  Jul.,  Paragraphs  4  and  5.)  (^ 

(4)  This  paragraph  contains  instructions  for  the  Air  Force. 

(5)  The  enemy  is  to  be  led  to  believe  that  heavy  units  of  the 
11th  Army  are  being  transferred  from  the  Crimea  to  the  area  north  of 
the  Sea  of  Azov.   To  this  end  a  great  northbound  transport  movement 


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13  Jul.  1942 

should  be  staged  by  foot  and  rail,  while  the  troops  for  operation 
"Bluecher"  should  be  moved  at  night. 

The  Army  High  Command  will  support  this  dummy  operation  with  suitable 
action. 

(Note  by  the  Naval  Staff;  A13  appropriate  measures  must 
also  be  taken  in  the  naval  area  in  order  to  maintain 
secrecy  and  to  conceal  the  planned  operation.) 

(6)  This  paragraph  contains  orders  for  a  special  operation  (Sab- 
otage Section,  Intelligence  Division,  Armed  Forces  High  Command), 

(7)  The  Army  General  Staff  will  work  out  the  details  for  the 
preparation  and  execution  of  the  operation  jointly  with  the  Navy  and 
the  Air  Force.   The  Fuehrer  ordered  that  he  is  to  receive  continual 
reports  through  the  Armed  Forces  High  Command,  Operations  Staff,  as  to 
the  status  of  the  preparations  (the  furnishing  of  shipping  space)  and 
with  regard  to  the  coTTtnitment  of  forces. 

The  Naval  Staff  charged  Naval  Group,  South  with  the  preparations  for 
operation  "Bluecher"  on  behalf  of  the  Navy.   Navel  Group,  South  is  to 
keep  the  Naval  Staff  constantly  posted  on  all  meastires  taken  and 
planned. 

The  Naval  Staff,  Quartermaster  Division  was  ordered  to  carry  out  that 
portion  of  the  Fuehrer  Directive  which  deals  with  furnishing  the  neoess- 
ary  shipping  space  by  the  Navy.   This  directive  was  accompanied  by  an 
express  statement  that  for  reasons  of  secrecy  and  concealing  the  opera- 
tion, the  number  of  persons  sharing  the  information  is  to  be  restricted 
to  as  few  as  possible. 

For  reference  to  the  first  measures  already  ordered  by  the  Naval  Staff, 
on  the  basis  of  oral  instructions  concerning  operation  "Bluecher" 
transmitted  through  the  Army  General  Staff,  see  War  Diary  9  Jul.  as 
per  l/Skl  I  op  1290/42  Gkdos .  Chefs. 

The  Chief,  Naval  Staff  agrees  with  the  measures  adopteds 

c.   The  Chief  of  Operations  Branch,  Naval  Staff  Operations  Division 
further  reports  on  the  extract  from  the  War  Diary  of  the  DOGGERBANK  as 
per  War  Diary  of  8  Jtxl  „ 


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13  Jul.  1942 


The  Chief,  Naval  Staff  agrees  with  the  recommendation  of  the  Naval 
Staff  Operations  Division  that  the  German  Cross  in  gold  be  conferred 
on  the  captain  of  the  DOGGERBANF,  Lieut.  Schneidewind.   Copy  of 
corresponding  recommendation  to  the  Naval  Personnel  Division  as  per 
l/Skl  I  K  17035/42  Gkdos.,  in  War  Diary,  Part  C,  Vol.  I. 

Special  Items : 

I.   On  11  Jul.  the  Japanese  Naval  Staff  advised  the  Naval  Staff 
Operations  Division,  through  Commander  Taniguti,  the  liaison  officer 
attached  to  the  Naval  Staff,  that  operations  of  the  Japanese  fleet 
will  take  place  in  the  Indian  Ocean  from  the  middle  of  July  to  the 
end  of  August.  The  Japanese  Naval  Staff  also  requested  that  the 
German  raider  operating  in  the  agreed  zone  of  operations  should  be 
withdrawn  to  a  line  west  of  70°  E. 

On  the  same  day  the  Naval  Staff  communicated  a  counterproposal  to  the 
Japanese  Naval  Mission  with  regard  to  limiting  the  zone  of  operations 
of  the  German  raider.   This  counterproposal  provides  for  shifting 
the  present  northern  boundary  of  the  zone  of  operations  to  20°  S,  and 
if  necessary  also  the  eastern  boundary  from  110°  E  to  100°  E.  Copy 
of  the  proposal  l/Skl  Ik  16913/42  Gkdos.  in  War  Diary,  Part  C,  Vol. 
XV. 

At  the  request  of  the  Japanese  Naval  Attache  the  matter  was  discussed 
orally  with  the  Naval  Staff  Operations  Division  on  13  Jul.  and  the 
following  was  agreed  upon: 

1.  The  Naval  Staff  orders  the  raider  to  withdraw  at  once  to 
the  zone  of  operations  agreed  upon,  namely,  west  of  80°  E. 

2.  The  Japanese  Naval  Attache  is  submitting*  to  the  Japanese 
Naval  Staff  a  proposal  to  assign  a  new  zone  of  operations  to  the  raider, 
namely  between  80°  and  70°  E,  and  20°  and  40°  S. 

3.  Should  the  Japanese  Navy  reject  this  proposal,  it  is  re- 
quested that  the  raider  be  granted  permission  to  operate  in  a  zone 
west  of  70°  E  and  south  of  250  S  up  to  a  distance  of  400  miles  from 
the  coasts  of  Africa  and  Madagascar. 

4.  The  Naval  Staff  requests  that  upon  the  termination  of  the 
Japanese  operations  German  raiders  again  be  permitted  to  operate  in 
the  zone  hitherto  in  effect  by  mutual  consent. 


£ 


-180- 


CONFIDENTIAL 


13   Jul.    1942 


Copy  of  the  minutes     of  the   conference  as   per    l/Skl  I  k  1329/42  Gkdos. 
Chefs,    in  War  Diary,   Part  C,   Vol.  XV. 

In  accordance  with   the   above,   ship   "10"   received,   instructions  by 
Radiogram  1843:    "Shift   the    zone   of  operations  west   of  80°  E  at  once. 
Reason:      The  commencement    of  extensive  Japanese   operations   in  the 
eastern  waters   of   the   Indian   Ocean.     A  further  shift  to  the   west   is 
to  be   expected.     Negotiations   with  reference   to   same  are  now  under 
way  with  the   Japanese  Navy." 

II.  Information  concerning  the  effects   of  our  mine-laying  during  the 
month  of  May  1942,   as  per  l/Skl  I  E  16010/42  Gkdos.   is   in  War  Diary, 
Part   C,   Vol.   VI. 

Reference   is  made  to   successes   scored  in   the  DOGGERBANF  mine-laying 
operations. 

III.  Report   of  the  Naval  Intelligence  Division,   Foreign  Navies  Branch 
concerning  the   fueling  of   the  Russian  Arctic  Ocean   fleet  and  o^f  the 
northern  harbors  and  shipyards;  concerning    the  probable  strength  and 
composition   of  the  Russian  flotilla  on  Lake  Ladoga;   as  well  as 
concerning   the  five-year  plan  for  arming   the  Swedish  army  in  Report 
No.   33  of  News  Analysis,   Foreign  Navies. 


Situation   13   Jul.   1942 
I.       War  in  Foreign  Waters 
1.       Enemy  Situation: 

North  Atlantic: 

• 
Two  British  mine-sweeper  corvettes   en  route   from  the  British 
Isles   to  the  Indian  Ocean    (new  ships   with  Indian  crews)   arrived  in 
Ponta  Delgada  on  10  Jul. 

According  to   an   intelligence  report,   22   transport   ships,   carrying 
61,000  TJ.S.   troops  and  war  materiel  and  escorted  by  the  RODNEY,    the 
NELSON  and  2  cruisers,   are   said   to  have   reached  Freetown   on  3  Jul. 

Indian  Ocean: 

According  to   an  Italian  report,   since  5  or   6  Jul.   a  convoy 
escorted  by  British  and  American   ships  has  been  en  route  from  Mombasa 
to  Australia. 


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CONFIDENTIAL 
13  Jul.  1942 

2.   Own  Situation; 

Ship  "10"  was  informed  by  Radiogram  1228  concerning  the 
merchant  raider  distress  message  from  the  steamer  HAURAKI  from  her 
position  at  17°  32'S,  800  25'E  telling  of  her  capture  by  the  Japanese; 
judging  from  the  text  and  the  repetition  of  the  distress  message, 
the  Naval  Staff  considers  it  hardly  probable  that  it  has  anything 
to  do  with  a  possible  operation  of  ship  "10".   Radiogram  1228  also 
informed  ship  "10"  that  prize  crews  are  being  sent  on  the  UCKERMARF. 

The  complaint  about  the  incomplete  and  infrequent  transmission  of 

information  concerning  the  plans  of  the  Naval  Staff,  whirh  according 

to  report  of  the  Naval  Attache  has  been  expressed  in  the  letter  from 

the  commander  of  the  DOGGERBANK,  was  brought  about  by  operational 

circumstances.   The  Naval  Staff  was  obliged  to  wait  until  it  could 

learn  the  effect  of  the  first  mine-laying  mission.   The  delay  in  the 

transmission  of  orders  arose  from  the  necessity  to  base  decisions  ^ 

on  data  which  had  some  degree  of  certainty.   The  Naval  Staff  was  j 

fully  aware  to  what  extent  these  unusually  long  waiting  periods  must 

have  taxed  the  patience-  of  the  commander  and  the  crew  and  highly 

appreciates  the  perseverance  of  the  DOGGERBANK. 

Radiogram  1357  communicates  the  above  to  the  DOGGERBANK,  acknowledging 
receipt  of  extract  from  War  Diary  through  the  Naval  Attache  in  Tokyo, 
and ' promis ing  further  instructions. 

Directive  to  ship  "23"  by  Radiogram  1504: 

"1.   After  replenishing  supplies  operate  either  north  or  south 
of  waiting  zone. 

2.   After  supply  operation  the  SCHLIEMANN  is  to  take  up  her 
station  in  the  southern  part  of  the  waiting  zone,  unless  it  is  necessary 
to  release  her  at  once." 

The  Naval  Attache  at  Tokyo  receives  instructions  to  inquire  of  the 

Japanese  Navy  whether  it  agrees  to  allow  the  German  raider  to  operate  q 

during  the  winter  in  the  southern  Pacific,  approximately  in  the  area 

south  of  the  equator  and  east  of  140°  W.   (See  Telegram  1430.) 

Information   concerning   enemy  situation  by  Radiograms  1816  and  2319. 

Special  Itemt 

According  to  a  report  of  the  German  Armistice  Commission,  France  dated 


-182- 


CONFIDENTIAL 
13  Jul.  1942 


11  Jul.,  the  French  auxiliary  cruiser  QTIERCY  and  1  submarine  will 
leave  Dakar  on  17  Jul*  for  a  rendezvous  with  the  tanker  NIVOSE  on 
about  27  Jul.  between  12°  S  and  14°  S  at  24°  W.   The  Commanding 
Admiral,  Submarines  and  Group  West  have  been  sent  the  same  communic- 
ation, directly.   (See  TeTegram  1300.) 


II.   Situation  West  Area 

1.  Enemy  Situation? 

According  to  information  obtained  in  the  prisoner  of  war 
transit  camp  of  the  Air  Force,  the  testimony  of  the  agent  indicates 
that  invasion  plans  have  been  deferred  for  the  present.  Instead 
of  an  invasion  there  is  the  likelihood  in  the  near  future  of  sabotage 
on  a  wider  scale,  to  be  carried  out  by  paratroopers  in  the  occupied 
western  territories. 

Such  a  possibility  must  on  no  account  be  dismissed, 
since  the   enemy  will  make  extraordinary  efforts 
to  destroy  our  submarine  bases. 

According  to  air  reconnaissance,  there  was  brisk  convoy  and  steamer 
traffic  in  the  Channel.  What  appeared  to  be  20  landing  craft  were 
sighted  on  the  shore  between  Hastings  and  Boxhill » 

In  the  afternoon  and  evening,  radio  monitoring  located  in  the  Channel 
3  vessels,  namely,  1  flotilla  leader  and  2  vessels  of  unidentified  types 
also  9  warships  and  6  crash  boats.  Also  about  midnight  radio  monitoring 
intercepted  4  messages  relating  to  the  spotting  of  a  German  force  in 
the 'area  of  South  Foreland.  The  motorship  MARETTA,  at  a  position  east 
of  South  Foreland,  received  an  order,  probably  to  lay  mi»es-. 

2.  Own  Situation; 

Atlantic   Coast: 

On    the  night  of  12  Jul.   enemy  planes   flew  over  St.  Nazaire 
with  the   probable   objective  of  mine-laying.      The  Loire   estuary  is 
temporarily  closed  to  shipping.     Two  ground  mines  were   swept,   one  in 
Quiberon  Bay  and  one  off  Lorient. 


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CONFIDENTIAL 


13  Jul.    1942 


Channel  Coast; 

During   the  night   of   12  Jul,    the  mining   operation   "Adria" 
was   carried  out    according    to   plan  in   Baie  de   la  Seine,     During   the 
same  night,   betv/een  Gravelines   and  Dunkirk,    three  enemy  FT  boats 
staged  two   unsuccessful  attacks   on   a  harbor  patrol   vessel.      In   the 
afternoon  an  enemy  air  raid  was   carried  out   on  traffic   installations 
near  Bo.ilogne.     No  military  damage  was  sustained . 

the  evening  the  2nd  PT  Boat  Flotilla  was  placed  on  2-hour  readiness 
for  a  torpedo  mission. 

The  mining  mission  "Suedsee"  (dummy  mine  field)  is  scheduled  for 
the  night  of  15  Jul." 

Special  Items; 

At  the  request  of  the  Chief  of  Operations  Division,  Naval  Staff,  the 
Naval  Staff  Hydrographic  and  Meteorological  Division  prepared  diagrams, 
according  to  which  the  most  probable  dates  for  enemy  invasion  attempts 
on  the  French  Coast  can  be  determined,  based  on  conditions  prevailing 
at  a  particular  time  (  twilight  phase  of  the  moon,  tides,  and  currents) 

Naval  Group  West,  the  Naval  Liaison  Officer  at  the  Army  General  Staff 
the  Naval  Liaison  Officer  at  the  Air  Force  Operations  Staff  and  the 
Naval  Representative  with  the  Armed  Forces  High  Command,  Operations 
Staff  will  receive  these  diagrams  each  month,  until  further  notice. 

One  copy  for  the  month  of  July,  as  per  l/Skl  I  op  23913/42  geh.  in 
War  Diary,  Fart  C,  Vol.  II  a  (Appendix). 


» 


III.  North  Sea,  Norway,  Arctic  Ocean 
1.   North  Sea; 

Enemy  Situation; 
Nothing  to  report. 
Own  Situation: 


t 


Enemy  air  activity  over  the  German  Bight   on   the  night  of  12 
Jul.     Mine-laying   suspected. 


-184- 


CONFIDENTIAL 
13  Jul.    1942 


The  mining  operation    "Kaspar"    (southwestern  mine   fields)    started 
according  to  plan.      Four   torpedo  boats   of  the   3rd  Torpedo  Boat 
Flotilla   sailed  from  Cuxhaven  to  Rotterdam.      Mine-sweeping  ar-ain 
limited  due   to   weather  conditions.      Convoy  missions   and   sweeping 
of  routes  proceeding  according  to  plan. 

2.  Norway; 

On  12  Jul.  four  aerial  torpedoes  were  dropped  on  a  convoy 
off  Tanahorn,  without  effect.   Brisk  enemy  air  activity  around  the 
Arctic  and  North  Norwegian  coasts  on  12  and  13  Jul.  No  special  damage 
reported.   A  fire  which  broke  out  in  the  shipyard  basin  on  12  Jul. 
as  a  result  of  oil  leakage  was  quickly  extinguished.   There  is  no 
suspicion  of  sabotage. 

The  destroyers  FRXEDRICH  IHN,  KARL  GALSTER,  and  Z  "24"  arrived  in 
Kris tian sand  South. 

The  cruisers  KOELN  and  ECKOLDT  left  Oslo  at  1700.   Thus  the  transfer 
of  the  KOELN  to  the  north  (operation  "Auerhahn")  has  been  started. 
The  FRIEDRICH  IHN  and  Z  "24"  are  providing  escort. 

3.  Arctic  Ocean ; 

Enemy  Situation; 

According  to  air  reconnaissance,  a  total  of  18  merchantmen 
totalling  about   60,000  GRT  and  a  1,500  GRT  tanker  were   anchored  in 
Kola  Bay  on  12  Jul.     No   tactical   information   obtained  by  naval 
reconnaissance   in  the  Arctic   Ocean. 

Own  Situation; 

Submarine   U  "255",   which  is  returning   to  base,    sank   the 
Dutch  steamer  PALT^US  POTTER   (7,168  GRT)    with  her  cargo  of  planes 
in  quadrant   AC  3437.     The    steamer  had  been   abandoned  by  her  crew. 
She  was  heavily  armed  and  belonged  to    the   Dutch  government    in  London. 
Submarine  U   "376"   sighted  a  boat   with  17  survivors   of   the    sunken 
U.S.   steamer   CARLTON   in  AC  2871. 

This   probably  represents   the  last   success   in  the   fight 
against  convoy  PQ  17.      Thus   the  number  of   ships  disposed 
of  by  submarines  rises   to  16  with  a  total   tonnage   of 
113,963  GRT.      Twelve  of  these   ships  have  been   identified 
by  name.      The  confirmed  Air  Force   total   is   20  ships, 


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CONFIDENTIAL 
13  Jul.  1942 


representing  approximately  131,000  GRT.  Hence  at  the 
rery  most  only  1  or  2  vessels  of  convoy  PQ  17  might 
have  reached  port. 

The  Admiral,  Arctic  Ocean  submits  an  exhaustive  report  from  the  commander 
of  submarine  U  "334"  concerning  the  sinking  of  a  heavy  American  cruiser 
on  4  Jul.   The  Naval  Staff  shares  the  view  expressed  by  Group  North 
that,  judging  from  this  report,  it  does  not  appear  unlikely  that  the 
cruiser  was  sunk  although  it  is  still  up  to  the  5th  Air  Force  to  prove 
it.   Copy  of  the  report  as  per  l/Skl  17040/42  Gkdos .  in  file  on 
operation  "Roesselsprung" . 


IV.   Skagerrak,  Baltic  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation; 

The  ore  ship  KAETE  (1,865  GRT)  sank  8  miles  east  of 
Sassnitz  following  the  detonation  of  a  depth  charge,  probably  a  mine. 
No  report  on  the  situation  has  as  yet  been  received  from  the  Commander, 
Mine  Sweepers,  Baltic  Sea. 


V.   Submarine  Warfare 

1.   Enemy  Situation: 

According  to  radio  monitoring,  the  MALAY a  was  at  sea  in 
the  Freetown  area  in  the  forenoon  of  13  Jul.  probably  en  route  from 
Freetown  to  Capetown. 

At  1215  a  submarine  intercepted  a  message  of  the  shelling  of  the 
British  steamer  SAGAING  (7,968  GRT)  in  AK  3653. 


-186- 


CONFIDENTIAL 
13   Jul.    1942 

A  special  warning   issued  on  the  American   coast   announces    that   a  mine 
field  has   been   laid    off   the    entrance   to    the   harbor    of  New  London. 
According  to  radio  monitoring   on  13   Jul.   an  HX  convoy  was  proceeding 
some  100>     miles   southeast  of  Cape  Breton   on    650  course  at  a   speed 
of  9    knots.      Several   submarine- sighting  reports  were   intercepted 
from  the  West   Indies. 

2.        Own  Situation: 

For  report   on   the   sinking  of  the   steamer  PAILUS  POTTER  see 
Situation,   Arctic   Ocean. 

It   appears   that   the    convoy  which  was   sighted  west   of   Madeira  broke 
up   into   sections.      Contact   was   further  maintained  with  the   eastern 
section.      A  shadower  reported   this   section   of  the    convoy  as    consisting 
of  5   steamers,  preceded  and   followed  by  escort   vessels.      Contact  with 
the  western    section   of   the    convoy  was  lost  because   of  darkness. 
Group   "Wolf"    made  contact  with  a  north  and  westbound  convoy  in  quadrant 
AK   6242.     Due   to   heavy  seas  and  low  visibility  this   contact   could 
be  maintained  only  with  difficulty  up  to  about  midnight   and  then  was 
lost. 

In   the  West  Indies    submarine   U  "67"    sank  an  anchored  tanker  of  8,000 
GRT,   and   torpedoed  another  tanker  of  10,000  GRT.      The   latter  was 
left  ablaze  and  sinking.      Submarine   U  "84"    reported   sinking  a   7,500 
GRT  steamer   in   the   Florida   Strait.      Submarine   U  "575"    reported  sinking 
the   steamers   PORTLAND    (2,648   GRT)    and   INANDA    (5,.985   GRT). 

In   the  Mediterranean,    submarine  U  "562"    intercepted  a   4-steamer  convoy 
in  quadrant   CP   5666,   and  two   torpedo  hits   were   scored  on  a   5,000  GRT 
steamer. 

Special  Items; 

While  the  submarine  losses  sustained  in  achieving  the  great  successes 
of  the  past  months  were  gratifyingly  small,  serious  concern  is  felt 
at  this  time  for  the  fate  of  7  submarines.   A  report  has  already 
been  made  concerning  U  "502"  and  U  "158".  No  reports  have  come  in 
from  submarine  U  "153",  U  "701"  and  U  "215"  in  the  American  zone  of 
operations.   Group  "Hai"  Is  apprehensive  of  the  fate  of  submarine 
U  "136"  and,  lastly,  submarine  U  "157"  also  appears  to  have  been 
lost. 


-187- 


CONFIDENTIAL 
13  Jul.  1942 


Further  particulars  in  Supplementary  Submarine  Situation  in  War 
Diary,  Part  B,  Vol.  IV. 


VI.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

No  noteworthy  occurrences  during  the  day.   In  the  night 
of  13  Jul.  twenty  to  twenty-five  enemy  planes  carried  out  missions 
over  the  Ruhr,  with  Duisburg  as  the  main  target.  For  damages  inflicted 
see  daily  situation  report. 

The  enemy  lost  3  planes  during  flights  over  the  coastal  waters  of 
the  German  Bight  apparently  with  the  object  of  laying  mines. 

2.  Mediterranean  Theater: 

Attacks  on  Malta  and  support  to  the  African  Panzer  Army 
continued. 

3.  Eastern  Front: 

On  12  Jul.  Air  Force  operations   centered  on   the  Voroshilovgrad* 
Kamensk  area,   on  positions  facing  our  Army  spearheads,   on  the  middle 
Don   sector  and   on  the  northwestern  wing  of   the   front,   for  the  purpose 
of  assisting  our   defensive   operations.     During  these   operations   62 
tanks    and  numerous  motorized  vehicles  were  destroyed. or  damaged. 

A  total   of  108  enemy  planes  was  shot  down  and  15  other  planes 
were  destroyed  on  12   and  13  Jul, 

4.  Special   Items: 

To   strengthen  the  anti-aircraft  defenses  against  low-level 
attacks   in  Germany  proper,  it   is  necessary  that  units   of  the  Armed 
Forces   set  up   anti-aircraft  machine  gun  posts   so  as   to  protect 
their  quarters  and  other  installations.      A  corresponding  directive 


-188- 


> 


CONFIDENTIAL 
13  Jul.    1942 


is   issued  by  the   Armed  Forces  High  Command,    Operations    Staff,   Air, 
wherein  _the%  Commander   in   Chief,    Air  Force   is   requested   to  give   the 
orders  necessary  to   integrate  the   anti-aircraft  machine  gun  posts 
into  his   over-all    anti-aircraft  defense   system   (see   Telegram  1930). 


> 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  En emy  Si tua ti  on ; 

Mediterranean  t 

According  to  air  reconnaissance,  the  situation  in  this 
area  is  generally  unchanged.   At  1150,  2  destroyers,  5  escort  vessels, 
2  steamers,  and  1  tanker  were  anchored  in  Valletta. 

2.  Own   Situation t 

Mediterranean  t 

For  success  scored  by  a  submarine  in  the  Beirut  area, 
see  Submarine  Warfare. 

An  enemy  naval  attack  on  Marsa  Matruh  and  on  coastal  shipping,  carried 
out  on  the  night  of  11  Jul.,  impelled  the  German  Naval  Command,  Italy 
again  to  request  of  the  Italian  Admiralty  assignment  of  additional 
Italian  forces  for  action  in  the  eastern  Mediterranean. 

Result;        1.   The  transfer  of  an  Italian  cruiser  division  from 
Maverino  to  Suda  or  to  Leros  is  not  contemplated  for 
the  time  being  since  the  Italian  approach  route  is  too 
long  in  comparison  with  that  of  the  British.  The 
Italian  vessels  would  always  arrive  too  late.   Owing 
to  the  fuel  situation,  it  is  not  possible  to  remain 
at  sea  in  order  to  counteract  this  situation.  The 
reference  made  by  the  German  Naval  Command,  Italy 
to  the  resultant  strategic  effect  fell  on  deaf  ears. 
It  is  planned  to  increase  the  division  to  5  cruisers 
and  then  to  reconsider  a  transfer  to  the  east. 


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Jul.  1942 


2.  It  is  planned  to  send  an  Italian  PT  boat  flotilla 
(8  submarine  chasers  and  6  PT  boats  similar  to  the 
German  type  PT  boats)  to  North  Africa  within  the  next 
few  days . 

3.  In  Tobruk  there  are  four  12  cm  guns  at  present 
and  nine  15  cm  guns  are  to  be  ready  for  action  on 
16  Jul.   A  number  of  7/6  cm  and  10.2  cm  guns  are 
due  to  be  installed  at  Marsa  Matruh. 

It  is  planned  to  carry  on  coastal  shipping  only 
during  the  day,  with  air  escort  if  possitle,  providing 
that  Italian  forces  and  forces  of  the  Commanding 
General,  Armed  Forces,  South  are  available. 

The  Commanding  Admiral,  German  Naval  Command,  Italy  made  the  necessary 
arrangements  with  the  Commanding  General,  Armed  Forces,  South  for 
sea  reconnaissance  in  the  eastern  area. 

In  view  of  the  repeated -and  urgent  representations  of  the  Naval 
Staff  with  regard  to  the  mining  of  the  Strait  of  Sicily,  the  Italian 
Admiralty  is  contemplating  laying  a  mine  field  in  the  near  future. 
The  mine  field,  as  proposed  by  the  Italian  Admiralty  to  the  Italian 
h  Command,  is  to  run  as  follows: 

South  of  Cape  Bon  in  the  territorial  waters  south  of  mine  field  S  11, 
running  east  to  west.   It  is  to  have  a  1,300  m  wide  gap  off  the 
coast  and  to  be  composed  of-  two  rows.   One  row  is  to  comprise  104 
and  the  other  122  Italian  mines.   Fifty  of  these  mines  in  each  row 
are  to  be  provided  with  an  anti-sweeping  device. 

The  mine  field  is  to  be  laid  from  Trapani  by  1  destroyer  and  1 
converted  torpedo  boat. 

The  Naval  Staff  considers  it  best  to  provide  all  mines 
with  anti-sweeping  device.   Corresponding  suggestion 
to  the  German  Naval  Command,  Italy. 

3.   Transport  of  supplies  to<  North  Africa: 

According  to  a  report  from  destroyer  ^G  3",  enemy  planes 
repeatedly  attacked  the  "Siena"  squadron  unsuccessfully  with  bombs  and 
torpedoes  on  the  night  of  9  Jul.  while  the  squadron  was  en  route 
from  Suda  to  Tobruk.   One  attacking  plane  was  shot  down  and  another 
plane  crashed. 


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13  Jul.  1942 


The  steamer  DELOS  was  considerably  damaged,  during  an  enemy  air  raid 
on  Tobruk  on  the  night  of  11  Jul.   The  cargo  was  not  damaged  and 
the  ship  is  afloat. 

The  steamer  AMSTERDAM  and  the  tanker  P.C.  FASSIO  arrived  in  Tripoli 
on  12  Jul.  according  to  plan.   The  motor  ships  MONVISO  and  BIXIO  are 
each  transporting  3,000  prisoners  of  war  and  captured  tanks  from 
Benghazi  to  Brindisi.   Three  naval  barges  and  3  auxiliary  sailin'g 
vessels  operating  in  coastal  supply  traffic  arrived  in  Marsa  Matruh 
in  the  morning  of  12  Jul.   The  steamers  CITTA  DI  AGRIGENTO  and  JAEDJOR 
left  Tobruk  for  Marsa  Matruh.   Carp;o  unloaded  on  11  Jul.  in  Tobruk  - 
800  tons,  in  Marsa  Matruh  -  430  tons;  on  12  Jul.  at  the  latter  port 
474  tons. 

Special  Items; 

The  Armed  Forces  High  Command,  Operations  Staff,  Army  transmits 
Fuehrer  Directive  with  regard  to  further  reinforcement  of  the 
African  Panzer  Army* 

(1)  The  German  Africa  Corps,  the  90th  Light  Division  and  the 
line  troops  of  the  African  Panzer  Army  are  to  be  raised  to  their 
full  strength  with  respect  to  men  and  materiel  and  maintained  at  that 
level.   This  applies  particularly  to  their  complement  of  tanks  and 
anti-tank  weapons. 

(2)  The  following  are  to  be  furnished  to  the  Airican  Panzer 
Army  from  the  area  of  the  Commanding  General,  Armed  Forces,  Southeast 
by  air  transport  if  possible: 

a.  The  433rd  Infantry  Regiment  from  the  Salonika  area:   The  regiment 
is  to  be  promptly  supplied  with  additional  anti-tank  weapons,  partic- 
ularly heavy  guns,  as  well  as  armor-piercing  ammunition  to  go  with 
them  (hollow-charge  projectiles  and  stick  hand  grenades).  A  report 

is  to  be  submitted  concerning  the  amount  of  additional  equipment 
received. 

b.  The  staff  of  an  artillery  regiment  (motorized).   An  artillery 
regiment  staff  (motorized)  from  the  Crete  fortress  division  is  being 
made  available  for  this  purpose. 

(3)  The  requested  organization  of  a  corps  headquarters  staff 
and  2  divisions  for  the  occupation  of  Egypt  will  not  be  carried  out. 
In  the  event  that  such  occupation  troops  become  necessary  they  must 


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CONFIDENTIAL 
13  Jul.  1942 

be  furnished  by  Italy. 

(4)   The  transport  of  the  above  Is  to  be  coordinated  with 
the  current  movement  of  supplies  to  the  Panzer  Army  on  a  priority 
basis,  by  arrangement  with  the  Panzer  Army. 

Copy  as  per  l/Skl  17069/42  Gkdos .  in  War  Diary,  .Bart  C,  Vol.  XIV. 

4,   Area  Naval  Group  South; 

Aegean  Sea: 

For  brief  report  from  destroyer  "ZG  3"  concerning  escort 
for  the  "Siena"  convoy  on  9  and  10  Jul.,  see  Telegram  1130. 

Convoy  duty  and  transport  of  supplies  according  to  plan  and  without 
noteworthy  incidents. 

Black  Sea: 

Enemy  Situation: 

Air  reconnaissance  observed  3  merchant  vessels  and  15  escort 
vessels  leaving  Tuapse  and  ascertained  that  the  number  of  small  vessels 
in  the  Sea  of  Azov,  namely  motor  mine  sweepers  and  PT  boats,  has 
considerably  increased.   The  20,000  GRT  of  shipping  which  had  been 
reported  in  Gelendzhik  on  8  Jul.  did  not  appear  in  today's  photo 
reconnaissance. 

Own  Situation: 

The  Commander  of  Motor  Mine  Sweepers  in  the  Crimea  landed 
agents,  prisoners  of  war,  and  shock  troops  between  Cape  Fiolyent 
and  Khersones  with  motor  mine  sweepers  and  naval  barges.  One  hundred 
and  eleven  prisoners,  among  them  a  commissar,  staff  officers, 
and  women_,were  brought  in.  Twenty-nine  Russians  who  resisted  were 
shot  • 

An  enemy  submarine,  which  had  been  attacked  by  our  planes  85  miles 
southwest  of  Sochi  on  11  Jul,,  was  again  attacked  by  our  planes  with 
depth  charges  while  she  was  grounded  in  the  same  position.  She  evidently 
received  a  direct  hit  and  her  loss  appears  certain. 

Convoys  proceeding  according  to  plan. 


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CONFIDENTIAL 


13  Jul.  1942 


According  to  latest  information,  Turkish  passenger  ships  are  forbidden 
to  sail  into  the  Aegean  and  Black  Seas, 

The  Commanding  Admiral,  Naval  Group  South  reports  a  dispute  with  the 
commander  of  an  Army  coastal  artillery  unit  and  the  Commander,  Armed 
Forces,  Ukraine  concerning  installation  of  a  searchlight  in  the  area 
of  the  Admiral,  Black  Sea.   The  dispute  arose  in  consequence  of 
Fuehrer  Directive  No.  40  (see  Telegram  1619).   The  matter  is  to  be 
attended  to  by  the  Naval  Staff  Quartermaster  Division. 

See  Telegram  1129  for  the  report  of  Group  South  concerning  the  exchange 
of  telegrams  between  the  Admiral,  Black  Sea  and  Rear  Admiral  Georgescu, 
prompted  by  the  acknowledgment  in  the  report  of  the  Armed  Forces  High 
Command  of  the  contribution  of  the  Rumanian  navy  In  the  fight  for 
Sevastopol. 


VIII.  Situation  East  Asia 

The  German  Consul  General  at  Peking  gained  the  impression  from  his 
conference  with  his  friend  General  Arisue;  the  Commanding  General  of 
the  Japanese  army  in  north  China;  and  the  latter' s  Chief  of  Staff, 
that  the  Japanese  operations  In  the  south  can  be  considered  terminated 
for  the  time  being.   There  is  a  strong  belief  that  an  attack  will  be 
launched  against  Russia.   The  first  thrust  seems  to  be  planned  from 
the  Mongolian  area  in  the  direction  of  Lake  Baikal.   This  is  to 
be  followed  by  an  attack  on  Vladivostok.   The  Chief  of  Staff  declared 
that  so  far  the  navy  has  borne  the  brunt  of  the  f j ght  to  this  point, 
whereas  the  decisive  role  henceforth  devolves  on  the  army.   The 
troops  held  in  readiness  display  excellent  morale  as  regards  the 
conflict  with  Russia. 


IX.   Army  Situation 

1.   Russian  Front; 

Southern  Army  Group; 

Army  Group  A; 

The    troops   reached  the   Ivanovka-Voroshilovsk  railroad. 
The   enemy  is    offering  stubborn  resistance.      Continuing   its  advance  to 


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CONFIDENTIAL 
13  Jul.   1942 


the   east   and   southeast,    the   panzer  divisions  of  the   1st   Panzer  Army 
reached  the  line    of  Verkhne  Teploye-Voloshlno,   with  Tarasovka  as   its 
goal. 

Army  Group  B; 

On  the  Don  front  engagements  are  bein?  fought  only  northeast 
of  Boguchar  and  in  the  area  of  Svoboda.   Our  troops  crossed  the 
Kamishnaya  River.  Panzer  divisions  (according  to  air  reconnaissance 
reports)   in  their  advance  to  the  southeast  reached  Degteva  and  r-usev, 
with  Kamensk  as  their  goal.   Southeast  of  Svoboda  our  forces  advanced 
to  the  bend  of  the  Don. 

Enemy  assault  actions  near  Voronezh  and  in  the  Yelets  area,  without 
permanent  effect. 

Central  Army  Group; 

The  enemy  staged  only  weak  assaults  on  the  Byelev-Kirov 
battle  front.   Enemy  assaults  in  the  Yukhnov  area  proved  fruitless. 

Northern  Army  Group; 

No  noteworthy  actions. 

2.  Finnish  and  Norwegian  Front; 

Enemy  artillery  repeatedly  shelled  the  island  of  Someri 
without  success  and  enemy  planes  carried  out  raids.  Local  enemy 
assaults  were  repulsed  on  the  Karelia  Isthmus.  Brisk  motor  traffic 
in  the  Murmansk  sector  and  on  the  Rybachi  Peninsula,  without  any 
noteworthy  engagements. 

3.  North  Africa; 

On  the  northern  sector,  despite  the  use  of  all  our  available 
air  and  artillery  forces,  our  attack  against  the  southeastern  front 
of  the  El  Alamein  stronghold  failed  against  defenses  in  depth,  fortified 
with  concrete  pill-boxes  and  mines,  combined  with  artillery  fire. 

Launching  an  assault  on  the  southern  wing,  our  troops  threw  the  enemy 
back  to  the  east.   A  dominating  elevation  was  taken  and  the  front 
was  advanced  about  10  km. 


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: 


CONFIDENTIAL 
14  Jul.  1942 

Items  of  Political  Importance 

France? 

The  De  Gaulle  "Free  French"  movement  is  renamed  "Fighting  French"  on 
the  occasion  of  the  observance  of  Bastille  day. 

Norway; 

For  the  report  of  the  Commanding  Admiral,  Norway  concerning  the 
domestic  situation  in  Norway  see  Political  Review,  No.  162,  Par.  1. 

Great  Britain! 

According  to  an  Italian  report,  important  differences  arose  in  Iran 
between  the  Russians  and  British  with  regard  to  the  division  of  the 
American  war  material  delivered  through  Basra.  It  goes  without  say- 
ing that  the  British  are  at  this  time  greatly  interested  in  this 
material  for  use  in  Egypt* 

Russiat 

In  reply  to  the  Swedish  protest,  the  Russian  authorities  reiterated 
that  the  steamers  ADA  GORTHON  and  MARGARETA  were  not  sunk  by  a 
Russian  submarine. 

According  to  a  report  of  a  Greek  diplomat,  the  transfer  of  the 
government  from  Kuibyshev  to  the  east  is  being  considered. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

Report  of  the  Naval  Ordnance  Division,  Underwater  Obstacles  Branch 
concerning  the  results  obtained  from  the  experimental  mine  field 
"Kunigunde"  (laid  by  the  KOELN)* 

Observation  of  the  behavior  of  the  standard  mine  type  F  after  it  has 
been  laid  and  over  a  short  period  thereafter  warrants  its  being 
certified  for  operational  use  and  no  limitations  should  be  imposed 
as  far  as  its  use  for  defensive  purposes  is  concerned.  For  offensive 
missions  it  must  be  provided  with  a  safety  gear  (apparatus  causing 
it  to  sink  noiselessly  and  automatically  when  on  the  surface.) 

The  Chief,  Naval  Staff  agrees. 

Another  test  with  submarine  U  "118"  will  have  to  be  made  before  a 
decision  can  be  reached  on  the  rack  mine,  type  A  (SKA). 

Otherwise  no  noteworthy  reports  or  decisions. 


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CONFIDENTIAL 
14  Jul.  1942 

Special  Items: 

I.  According  to  a  report  of  the  Foreign  Ministry,  the  Reich 
Foreign  Minister  approved  the  proposal  of  the  French  government  to 
add  2  more  ships  to  increase  the  shuttle-traffic  between  Martinique 
and  the  U.  S.  under  conditions  governing  this  traffic  up  to  the 
present.  The  approval  was  granted  by  agreement  with  the  Armed 
Forces  High  Command  and  the  Naval  High  Command  (see  War  Diary  13 
Jul.)  Further  details  in  War  Diary,  Part  C,  Vol.  Vlll. 

II.  The  German  Armistice  Commission,  France  communicates  to  the 
Armed  Forces  High  Command,  Operations  Staff  the  reasons  given  by 
the  Italian  High  Command  for  refusing  the  French  naval  forces  in 
Alexandria  permission  to  enter  Piraeus.  These  reasons  are  listed 
as  follows: 

1.  There  is  a  possibility  that  in  connection  with  the 
events  in  Egypt  Italian  ships  (1  battleship  and  3  cruisers)  may 
have  to  go  to  Piraeus. 

2.  In  answer  to  an  inquiry,  the  Commanding  Admiral, 
Aegean  Sea  replied  that  3  cruisers  could  be  accommodated  at  once 
and  the  battleship  within  a  few  weeks  at  the  earliest. 

3.  As  a  result  of  what  is  stated  under  Par.  2,  it 
follows  that  there  could  be  no  room  for  the  French  ships. 

4.  The  Commanding  Admiral,  Aegean  Sea  doubts  whether  the 
French  would  be  familiar  with  the  approach  routes  which  have  been 
changed  only  recently. 

5.  The  Duce  shares  the  opinion  of  the  Italian  High 
Command. 

The  German  Armistice  Commission,  France  adds  that  the  engineer  in 
charge  (I.V.D.),  on  being  asked,  admitted  that  there  is  no  fuel  for 
the  French  at  Leros  and  Navarlno  (see  Telegram  1345). 

Group  South  and  the  German  Naval  Command,  Italy  state  in  reference 
to  the  above: 

Up  to  the  present  moment,  the  question  of  the  transfer  of  Italian 
naval  forces  to  Piraeus  has  never  come  up  for  discussion  during 
conferences  with  the  Italian  Admiralty  and  with  the  Italian  High 
Command  (see  Telegram  2025  of  the  German  Naval  Command,  Italy); 
furthermore,  the  engineer  in  charge  (I.V.D.)  errs  in  his  opinion 
inasmuch  as  the  French  3hips  do  :not  take  away  the  accommodations 
provided  for  1  battleship  and  3  cruisers.   It  is  intended  to  anchor 
the  French  ships  in  the  roadsteads  where  there  is  ample  space. 


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CONFIDENTIAL 
14  Jul.  1942 

There  is  no  objection  against  bringing  the  French  ships  into  the 
harbor  along  routes  familiar  to  merchant  traffic.  (See  Telegram 
2025  from  Naval  Group  South.) 

Thus,. the  reasons  given  by  the  Italians  do  not  hold 
water.  What  the  Italians  really  want  is  evidently 
to  see  the  French  ships  paralyzed,  if  possible  by  an 
oil  shortage,  in  the  Italian  zone.  The  Italian 
attitude  may  also  be  explained  in  part  by  thei'r  hope, 
expressed  on  occasion,  that  somehow  this  situation 
might  cause  the  French  to  break  the  armistice  agree- 
ment, thus  giving  the  Italians  the  desired  opportuni- 
ty to  carry  out  at  last  their  plans  of  attacking 
Bizerte  and  other  places. 

This  cannot  affect  the  position  of  the  Naval  Staff. 
It  will  be  submitted  once  more  to  the  Armed  Forces 
High  Command. 

III.  In  answer  to  an  inquiry  by  the  Armed  Forces  High  Command, 
Operations  Staff,  Navy  about  the  dates  on  which  the  enemy  is  most 
likely  to  make  landing  attempts  in  the  Channel,  the  Naval  Staff 
replies  as  follows: 

1.     The  Naval  Staff  would  time  the  landing  so  that  the 
following  conditions  would  be  satisfied  as  far  as  possible: 

a.  Little  current. 

b.  Rising  waters,  about  1  or  2  hours  before  high  tide. 

c.  About  2  hours  before  daybreak. 

d.  Not  on  a  dark  night;  half -moon  phase. 

20     In  the  opinion  of  the  Naval  Staff  it  is  uncertain 
whether  the  enemy  is  likewise  .seeking  the  same  conditions  for  a 
landing.  Thus  a  landing  might  take  place  when  the  waters  are 
receding,  if  their  training  has  reached  a  point  where  they  can  un- 
load rapidly.   The  Japanese  try  to  stage  their  landings  during  the 
early  hours  of  the  night  so  that  the  main  body  of  the  first  wave  is 
on  land  before  dawn  breaks.  However,  this  type  of  a  landing  calls 
for  thorough  practice.  Be  that  as  it  may,  the  enemy  will  set  the 
time  of  his  landing  primarily  in  accord  with  his  overall  plan 
(employment  of  air-borne  troops,  primary  objectives,  etc.). 

3.     The  conditions  mentioned  under  paragraph  1  prevail 
in  the  Bale  de  la  Seine  from  Cap  d'  Antifer  to  Carentan  on  the 
following  dates:   5  to  7  Jul.,  4  to  6  Aug.,  4  to  5  Sep.   The  dates 
vary  substantially  for  other  areas.   They  change  particularly  as 
conditions  enumerated  under  a  to  c  change. 


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CONFIDENTIAL 
14  Jul.  1942 

IV«     In  accord  with  the  directives  of  the  Naval  Staff  for  streng- 
thening coastal  defenses  in  Norway  (see  War  Diary  10  Apr.),  the 
Commanding  Admiral  Norway  submitted  an  exhaustive  program  on  11  Jun» 
1942,  after  a  detailed  study  of  all  pertinent  measures. 

With  regard  to  the  assignment  of  naval  forces,  (as  per  paragraph  III, 
1  of  the  Naval  Staff  directive)  the  Commanding  Admiral,  Norway, 
considering  the  actual  situation,  decides  to  await  transfer  of 
additional  escort  forces  after  the  situation  in  other  sectors  has 
become  less  critical;  in  the  meantime  he  will  utilize  all  forces 
under  his  command  to  the  greatest  possible  extent. 

The  Naval  Staff  has  no  comments  to  make  with  reference  to  the  above. 

As  regards  the  use  of  mines  and  of  other  means  of  naval  warfare 

along  the  coasts  (Par.  Ill,  2  of  the  directive),  the  Commanding 

Admiral,  Norway  will  request  the  replacement  and  strengthening  of 

mine  fields  as  and  when  the  need  arises.  A  total  cf  1,500  standard 

mines  type  C  and  1,500  anti-submarine  mines  type  B  is  expected  to 

be  used  in  1942.  r 

The  Chief  of  the  Operations  Division,  Naval  Staff  will  bear  this 
point  in  mind. 

With  reference  to  the  assignment  of  other  means  of  naval  warfare, 
the  Commanding  Admiral,  Norway  suggests  that  a  series  of  net  and 
boom  barrages  be  used  for  the  protection  of  harbors  and  fjords. 
These  are  approved  by  the  Chief  of  Operations  Division,  Naval  Staff. 
The  Naval  Staff  Quartermaster  Division  will  attend  to  further 
details  insofar  as  possible. 

The  Chief  of  the  Operations  Division,  Naval  Staff  approves  the 
request  for  installation  of  5  new  torpedo  batteries  (very  urgent) 
and  3  new  torpedo  batteries  (urgent).  This  would  beyond  doubt 
greatly  strengthen  the  coastal  defenses.  The  Naval  Staff  Quarter- 
master Division  is  to  be  charged  with  carrying  out  this  request  if 
possible. 

Installing  new  coastal  batteries  and  shifting  those  on  hand  requires 

planning  on  a  very  large  scale.  These  batteries  are  to  be  emplaced 

in  a  similar  manner  to  those  on  the  Westwall  and  call  for  the  p 

following: 

7  batteries  of  a  higher  than  21  cm  caliber. 

22  batteries,  with  four  15  or  17  cm  caliber  guns  per 
battery. 

8  radar  sets  (for  naval  purposes). 

65  150  cm  searchlights  for  sea  targets. 
26  8.8  cm  anti-aircraft  l/2  batteries. 
84  4  cm  anti-aircraft  batteries. 
196  2  cm  anti-aircraft  batteries. 
75  150  cm  anti-aircraft  searchlights. 


-198- 


CONFIDENTIAL 


14  Jul.  1S42 


70   60  cm  anti-aircraft  searchlights. 
72   3,000  m  depth  charge  throwers 
84   600  m  depth  charge  throwers. 

In_addition,  the  Army  coast  artillery  is  to  be  equipped  with  naval 
instruments. 

The  Commanding  Admiral,  Norway  is  himself  aware  that  this  "maximum" 
program  can  be  carried  out  only  step  by  step  as  a  long-range 
process. 

The  Chief  of  the  Operations  Division,  Naval  Staff  also  regards  these 
requests  as  a  step  in  the  right  direction.  Actual  circumstances 
will  determine  how  much  material  can  be  allocated.  The  northern 
fortifications  will  have  priority  over  the  southern. 

Further  steps  will  be  taken  by  the  Naval  Staff  Quartermaster 
Division,  which  has  received  the  plan  along  with  the  comments  of  the 
Operations  Division,  Naval  Staff. 

The  Chief,  Naval  Staff  ordered  the  Naval  Staff  Quartermaster  Divi- 
sion to  submit  a  report  as  to  how  much  of  the  program  has  already 
been  carried  out  and  how  much  of  it  will  be  fulfilled  by  the  end  of 
1942. 

V.   During  the  conference  with  the  Chief  of  Staff  on  10  Jul.  In 
connection  with  a  report  by  the  representative  of  the  Sea  Transpor- 
tation Branch,  Naval  Staff  Quartermaster  Division,  the  question  was 
raised  as  to  what  causes  the  frequent  and  considerable  delay  in  the 
transport  of  supplies  to  Norway.  The  Chief  of  Operations  Division, 
Naval  Staff  never  entertained  any  doubt  that  the  chief  reason  for 
this  delay  is  the  fact  that  the  Commanding  General,  Norwegian 
Theater  tries  to  use  the  ships  as  a  storage  place.  Added  to  this 
are  such  reasons  as  the  small  capacity  of  the  harbors,  particularly 
in  the  arctic  area,  and  frequent  cases  of  poor  management.   The 
lack  of  escort  forces  is  the  least  of  the  causes  contributing  to  the 
delay  In  the  delivery  of  supplies  to  Norway. 

Since  the  deputy  Chief,  Naval  Staff  Quartermaster  Division  (at  pre- 
sent the  Chief  of  Staff  of  the  Commanding  Admiral,  Norway)  was  of 
the  same  opinion  at  the  time,  the  Chief  of  the  Operations  Division, 
Naval  Staff  finds  himself  obliged  to  remind  the  Naval  Staff  Quar- 
termaster Division  that  the  Commanding  Admiral,  Norway  repeatedly 
explained  his  requests  for  an  Increase  In  escort  and  patrol  forces,  . 


-199- 


CONFIDENT!^ 
14  Jul.  1942 

by  stating  that  as  a  result  of  the  lack  of  escort  forces  a  serious 
delay  in  the  transport  of  supplies  has  already  been  caused.   A 
number  of  pertinent  reports  from  the  Commanding  Admiral,  Norway 
are  submitted  in  support  of  this  statement.  Corresponding  Communica- 
tion as  per  1  Ski  lop  17058/42  Gkdos  is  in  War  Diary  Part  C,  Vol.  Ila. 


Situation  14  Jul.  1942 

1.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic: 

By  way  of  supplementary  information  concerning  the  move- 
ment of  heavy  combat  forces  off  Freetown,  the  Naval  Attache  at 
Lisbon  reports  that  the  NELSON,  the  RODNEY,  and  4  destroyers 
arrived  in  port  on  1  Jul.,  while  the  MALAYA  and  a  convoy  of  22 
steamers  carrying  troops  reached  port  on  2  Jul. 

Coming  from  South  America,  the  DIOMEDE  arrived  in  Gibraltar, 
probably  by  way  of  Freetown. 

It  appears  that  the  U.  S.  Maritime  Shipping  and  Transport  system 
does  not  function  satisfactorily,  since  a  new  system  is  being  testedo 
Inland  and  maritime  shipping,  which  hitherto  functioned  separately, 
are  to  be  administered  jointly. 

Indian  Ocean: 

According  to  radio  monitoring,  3  hours  after  the  HAURAEI 
was  captured  on  12  Jul.,  a  submarine  warning  for  that  area  was  broad- 
cast from  Rugby. 

2.  Own  Situation: 

The  Naval  Attache  at  Tokyo  transmits  excerpts  from  the 
letters  of  the  commander  of  ship  "10",  dated  4  and  26  May  and  5  Jun. 
Along  with  the  mention  of  experiences  lived  through  and  things 
needed  aboard  the  ship,  it  was  stated  in  these  excerpts  that  ship 
"10"  could  remain  at  sea  for  about  one  year  from  the' end  of  May 
(except  for  oil).  The  letters  also  disclose  the  plan  of  operating 
between  25°  and  20°S  during  the  new  moon  quarter  of  the  month  of 
June  a  and  ask  whether  the  Pacific  is  to  be  considered  as  an  alter- 
native area  of  operation  and  whether  the  Kerguelen  waters  are  safe 
as  a  supply  or  waiting  area.  For  copy  see  Telegram  Wennecker  1346 
in  War  Diary,  Part  C,  Vol.  I. 

Information  concerning  enemy  situation  to  all  vessels  in  foreign 
waters  by  Radiograms  0638  and  2030. 


-200- 


CONFIDENTIAL 
14  Jul.  1942 

II.  Situation  West  Area 

Enemy  Situation: 

According  to  an  intelligence  report  from  Sweden  on  9  Jul.  stemming 
from  the  Russian  Legation  at  Stockholm,  a  source  which  is  not 
always  reliable,  three  British  and  two  American  Army  Corps,  each 
consisting  of  two  infantry  divisions  and  two  armored  divisions  or 
brigades  and  of  240  to  250  tanks  of  various  sizes,  are  being  concen- 
trated in  the  Caledonia  Canal,  between  Moray  Firth  and  Oban,  off 
Stometerry,  Inverness,  Wick  and  Vick.  A  large  number  of  merchant 
ships  and  tankers  are  gathered  in  Moray  Firth.   Large  supplies  of 
tanks  and  ammunition  as  well  as  numerous  lighters  are  being  brought 
up.  A  number  of  Russian  officers  are  likewise  congregated  there. 
The  preparations  are  said  not  to  be  complete  as  yet.  The  purpose  of 
this  activity  has  not  yet  been  ascertained. 

This  very  concrete  information  may  well  be  correct. 
However,  it  is  not  impossible  that  this  information 
has  been  given  out  to  confuse  us. 

At  2040,  air  reconnaissance  observed  50  to  80  landing  craft  at  the 
shore  on  the  south  coast  of  England,  between  Eastbourne  and  Hastings. 
Brisk  convoy  traffic  in  the  rest  of  the  Channel  was  also  observed. 

In  the  evening,  radio  monitoring  intercepted  a  message  from  a  mine- 
laying  vessel,  telling  of  signs  of  a  German  operation  out  of 
Cherbourg. 

2.   Own  Situation: 

Atlantic  Coastt 

Nothing  to  report. 

Channel  Coast: 

Mining  operation  "Suedsee"  was  carried  out  according  to 
plan  on  the  night  of  13  Jul.  At  about  0600  on  14  Jul.,  our  convoy, 
which  had  been  announced,  was  shelled  by  Army  coastal  artillery  off 
the  Somme  estuary.  No  losses  sustained.  A  strafing  air  raid  was 
carried  out  by  enemy  planes  on  Ostend  at  1845.  No  damage  was 
Inflicted.   In  the  evening  the  3rd  Torpedo  Boat  Flotilla  left  Hook 
of  Holland  for  Dunkirk.  The  "Brahma"  mining  mission  has  been 
started.  Four  boats  of  the  2nd  PT  Boat  Flotilla  are  due  to  set  out 
on  a  torpedoing  mission.  They  are  also  to  serve  as  a  remote  escort 
for  operation  "Brahma". 


-201- 


CONFIDENTIAL 
14  Jul.  1942 

III*  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Seat 

Enemy  Situation; 

Air  reconnaissance  sighted  only  slight  convoy  traffic  on 
the  eastern  coast.   Air  reconnaissance  took  place  out  of  Vick,  in 
the  direction  of  Stavanger,  as  far  as  the  Bergen-Nord  Fjord  line. 

Own  Situation: 

The  "Kaspar"  mine-laying  mission  has  been  accomplished. 
In  the  course  of  this  mission,  fourteen  ground  mines  were  cleared 
by  3  mine- exploding  vessels;  8  of  these  mines  were  swept  from  the 
path  of  the  mine-laying  vessels. 

The  "Kobold"  mining  mission  started  out  from  Hook  of  Holland  in  the 

evening.   Mine-3weeping  in  mine  field  "2"  as  well  as  escort  and  .- 

patrol  duty  proceeding  according  to  plan. 

2.  Norway: 

The  transfer  of  the  KOELN  to  Trondheim  is  proceeding 
according  to  plan.   The  Fleet  Commander  took  over  command  at  2100. 

The  damage  inflicted  on  the  destroyer  LODY  is  so  extensive  that  it 
is  necessary  that  she  be  towed  into  a  hone  port.  Group  North 
suggests  that  the  LODY  be  left  in  Trondheim  for  the  present,  and  if 
it  should  prove  impossible  to  carry  out  any  repairs,  that  she  be 
employed  as  a  floating  battery.   The  Fleet  Commander  requests  that 
the  Naval  Staff  withhold  its  decision  until  his  new  proposal  has 
been  submitted. 

During  an  enemy  air  raid  on  Kirkenes  on  13  Jul.  several  vessels  were 
destroyed.  For  further  particulars  see  Telegram  1423. 

3.  Arctic  Ocean: 

Enemy  Situation:  ^ 

According  to  photo  reconnaissance  of  2  Jul.,  the  Murmansk 
harbor  suffered  great  damage  as  a  result  of  numerous  air  raids. 
Consequently,  the  Air  Force  Operations  Staff  believes  that  its 
capacity  has  been  substantially  reduced.  For  particulars  see 
Aerial  Warfare. 

A  Russian  submarine  of  the  SHTSH  class  was  sighted  30  miles  north 
of  North  Cape. 


-202- 


CONFIDENTIAL 
14  Jul.  1942 

In  the  afternoon  radio  monitoring  observed  4  British  vessels  in  the 
Archangel  area.  These  were  probably  escort  vessels  of  convoy  PQ  17, 
A  British  radio  station,  probably  a  radio  monitoring  ship,  was 
located  in  the  vicinity  of  Bear  Island. 

Own  Situation; 

Submarine  U  "457"  unsuccessfully  attempted  to  attack  the 
Russian  submarine  sighted  in  quadrant  AC  4978.   At  0900,  on  the 
night  of  14  Jul.,  6  Norwegian  submarines  were  ordered  to  be  eCt   a 
rendezvous  5  miles  east  of  Andenes  on  15  Jul.,  in  order  to  proceed 
together  to  Narvik. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

According  to  radio  monitoring, at  least  8  submarines  are 
at  sea.   One  submarine  was  sighted  from  Tytersaari  6  miles  south 
of  Lavansaari  heading  west.  At  2000  a  Finnish  mine  layer  reported 
sinking  a  Russian  submarine  in  the  same  area. 

2.  Own  Situation; 


Convoy  and  escort  duty  in  the  area  of  the  Commanding 
Admiral,  Defenses,  Baltic  Sea  proceeding  according  to  plan.   The 
destroyer  GALSTER  is  en  route  alone  from  Kristiansand  South  to  the 
Baltic  Sea. 

In  the  eastern  Baltic  Sea  submarine  patrol  duty,  mine-sweeping 
operations  and  convoy  duty  are  proceeding  according  to  plan. 

Additional  "Lachs"  mine  fields  were  laid  by  two  naval  barges  in 
the  Gulf  of  Finland. 

Special  Item; 

It  is  necessary  to  intensify  our  anti-submarine  operations 
in  the  Baltic  Sea  because  of  the  danger  to  our  shipping.  An  effort 
should  be  made  to  find  out  whether  it  would  be  possible  to  get  the 
Swedish  Navy  to  assign  more  anti-submarine  forces  for  that  purpose. 
Copy  of  corresponding  directive  as  per  1  SKI  la  17102/42  Gkdos.  to 
the  Naval  Staff  Submarine  Division  and  Intelligence  Division  with 
copy  to  Naval  Attache  section  and  to  the  Naval  Staff  Quartermaster 
Division,  is  in  War  Diary,  Part  C,  Vol.  III. 


-205- 


CONFIDENTIAL 
14  Jul.  1942 

V,   Submarine  Warfare 

1.  Enemy  Situation: 

According  to  an  intelligence  report  from  Spain,  a  convoy 
from  the  west  arrived  in  Gibraltar  in  the  morning.   According  to 
reports- thus  far  received,  it  consists  of  80  ships  and  4  patrol 
vessels. 

Radio  monitoring  intercepted  reports  of  submarine  attacks  southwest 
of  Cuba  at  1845  and  1910.   Submarine  sighting  reports  were  intercep- 
ted from  the  Gulf  of  St.  Lawrence,  off  Cape  Hatteras,  and  off  Cape 
Charles. 

2.  Own  Situation: 

Distribution  of  Operational  Submarines: 

(1)  Northern  Area:      23  submarines.   Of  this  number  5  are  in  the 

zone  of  operations,  one  is  on  the  way  back, 
and  17  are  in  harbors. 

(2)  Atlantic  Ocean:     26  are  in  the  zone  of  operations,  24  are  en 

route  to  the  zone  of  operations,  and  11  are 
on  the  way  back. 

(3)  Southern  Area:      6  submarines  are  in  the  zone  of  operations. 

(4)  Mediterranean?      3  are  in  the  zone  of  operations;  one  each 

on  the  way  to  the  zone  of  operations  and  on 
the  way  back;  11  submarines  are  in  harbors. 

(5)  Submarine- tankers ;  2  are  in  the  zone  of  operations;  one  each 

on  the  way  to  the  zone  of  operations  and 
on  the  way  back. 

Submarine  U  "166"  reports  the  sinking  of  a  3,000  GRT  steamer  and  of 
a  sailing  vessel  with  barrels  of  gasoline  aboard,  as  well  as  the 
sighting  in  Windward  Passage  of  a  convoy  of  11  steamers  escorted  by 
3  destroyers  and  2  flying  boats  proceeding  on  a  southerly  course. 

Submarine  U  "582"  operating  in  the  southern  area,  reports  sinking 
the  steamer  D0MALA  (8,441  GRT)  in  quadrant  DT  6153. 

Submarine  U  "130"  established  contact  with  a  northbound  convoy  in 
quadrant  DG  9103  (some  500  miles  south  of  the  Azores).   Submarine 
U  "507"  and  the  Italian  submarine  CALVI  were  assigned  to  attack 
this  convoy.   Later  submarine  U  "130"  reported  that  the  CALVI  is 
unable  to  submerge  and  is  on  fire  after  being  shelled  by  a  destroyer, 
which  was  unsuccessfully  attacked  by  submarine  "130". 

Other  reports  in  supplement  to  Submarine  Situation  in  War  Diary, 
Part  C,  Vol.  IV. 


" 


-204- 


CONFIDENTIAL 
14  Jul.  1942 

VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 
Nothing  to  report. 

2.  Mediterranean  Theater: 

Bombers  attacked  Malta  airfields  and  were  active  on  the 
front  of  the  African  Panzer  Army. 

3.  Eastern  Front: 

Support  was  lent  to  the  attacking  armies  of  Army  Group  A, 
and  planes  were  sent  into  action  in  the  Voronezh  area  ahead  of  the 
defense  lines. 

For  results  of  photo  reconnaissance  of  Murmansk  see  daily  situation 
report. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation: 

Mediterranean: 

A  British  transport  ship  arrived  in  Gibraltar  on  13  Jul. 
supposedly  with  1,500  arsenal  workers  aboard.   On  14  Jul.  a  convoy 
of  8  steamers,  coming  from  the  west,  and  one  cruiser  (believed  by 
radio  intelligence  to  be  the  DIOMEDE,  coming  from  America  via  Free- 
town) put  into  port. 

The  CHARYBDIS  and  1  CAIRO-class  cruiser  as  well  as  4 
destroyers  left  for  the  Mediterranean  in  the  early  hours  of  the 
morning.   They  were  followed  by  the  EAGLE  and  3  other  vessels. 
Their  probable  mission  was  to  transfer  planes  and  provisions  to 
Malta.   The  eastbound  force,  consisting  of  1  aircraft  carrier,  1 
cruiser,  and  6  destroyers,  was  sighted  at  1600,  30  miles  east  of 
Cape  de  Gate.,  Thus  it  does  not  include  1  cruiser  and  probably  1 
destroyer  of  those  reported  to  have  left  Gibraltar. 

Air  reconnaissance  sighted  no  other  enemy  forces  in  the  Mediterra- 
nean. 

A  convoy  consisting  of  4  steamers  and  5  escort  vessels  was  sighted 
by  a  German  submarine  southwest  of  Beirut  at  0251.   At  2000  a 
number  of  unidentified  vessels,  steaming  at  high  speed  on  a  westerly 
route,  was  sighted  from  a  station  near  Ras  el  Dahaban  (60  miles  east 
of  Mars a  Matruh). 


-205- 


j-i-Uj 


Own  Situation; 

Mediterranean; 

The  Italian  Admiralty  o  transfer  a  flotilla 

bmarine  chasers  to  North  Africa,   i  well  as  to  furnish  plane 
escort  for  African  coastal  traffic. 

aged  an  air  raid  on  Benghazi  at  about  1800  on  13  Jul. 
One  plane  wa3  shot  down. 

3.  Transport  of  Supplies  tc   rth  Africa; 

The  seven  naval  barges  which  were  en  route  to  Tripoli 
reached  their  port  of  destination.   The  tanker  SATUR1I0  is  en  route 
from  Naples  to  Tripoli  on  the  western  route.   Other  ship  movements 
according  to  plan  and  without  noteworthy  occurrences. 

Unloaded  on  13  Jul.:  at  Tobruk  ■      tons,  at  Mar3a  Matruh  -  357 
tons. 

Total  cargo  unloaded  at  Tripoli  for  the.  month  of  June  -  37,143  tons. 
Total  turnover  in  coastal  traffic  for  the  same  month  -  19,027  tons; 
of  the  la3t  total,  naval  barges  carried  16$  or  3,161  tons.  For 
details  see  daily  situation  report. 

4.  Area  Naval  Group    .th; 
Aegean  Sea; 

Nothing  to  report. 

Black  Sea; 

Enemy  Situation: 

According  to  air  reconnaissance  and  radio  monitoring  there 
is  lively  plane  activity  along  the  northeastern  coast.   No  movement 
of  larger  ships  was  observed.   In  the  southeastern  coastal  area,  1 
cruiser,  4  destroyers,  and  3  large  steamers  were  sighted  at  sea. 

Own  Situation; 

Mine-sweeping  operation  proceeding  according  to  plan. 
No  noteworthy  occurrences. 


VIII.  Situation  East  Asia 


Nothing  to  report. 


f 


r 


-206- 


CONFIDENTIAL 
14  Jul.  1942 

IX»  Army  Situation 

1.  Russian  Front; 

Army  Group  A: 

Reinforced  rearguard  forces  of  the  enemy  are  offering 
stubborn  resistance  along  the  southern  wing  of  Army  Group  A,  from 
north  of  Taganrog  to  Krasny  Luch,  southwest  of  Voroshilovgrad.   Our 
troops  were  able  to  gain  only  10  km  in  this  area.  North  of  the 
Donets  River,  infantry  divisions  which  were  brought  up  are  likewise 
engaged  in  a  battle  against  strong  enemy  rearguard  forces  and  isola- 
ted units.   Advancing  to  the  southeast,  the  14th  Panzer  Division 
reached  Tarasovka  and  another  Panzer  Division  is  engaged  in  a  defen- 
sive battle  between  Gusev  and  Milerovo.  Our  forces  are  facing  west, 
endeavoring  to  stem  the  enemy  who  is  trying  to  break  through  to  the 
east. 

Army  Group  B: 

Battles  are  continuing  in  the  Voronezh  area.   The  enemy 
was  forced  to  relax  his  pressure  when  our  air  forces  were  sent  into 
action.  No  noteworthy  actions  on  the  sector  south  of  Yelets. 

Central  Army  Group: 

An  enemy  thrust  against  the  highway  southwest  of  Yuknnov 
was  repulsed.  Battles  are  still  in  progress  near  Velish. 

Nortuern  Army  Group: 

No  noteworthy  action  except  for  unsuccessful  enemy  attacks 
near  Soltsy. 

2.  Finnish  and  Norwegian  Front: 

Lively  partisian  activity  on  the  rear  of  theLoukhi  sector. 
The  enemy  is  reinforcing  his  defenses  along  the  Finnish-Russian 
border  at  the  northern  end  of  the  Kandalaksha  sector.  On  the  west- 
ern part  of  the  Rybachi  Peninsula,  lively  traffic  continues. 

3.  North  Africa: 

In  the  course  of  the  day  enemy  planes  staged  bombing  and 
low-level  attacks  on  our  troops.  The  enemy  VIII  Army  Corps  (the  1st 
and  10th  Armored  Divisions)  manned  the  southern  and  middle  sectors 
of  the  front  while  the  X  Army  Corps  (the  9th  Australian  and  the  5th 
Indian  Divisions)  occupied  the  northern  sector.  The  whereabouts  of 
the  2nd  New  Zealand  Division  is  unknown. 

In  the  evening  of  14  Jul.,  our  Panzer  Division  attacked 
the  strongly  fortified  position  northwest  of  the  El  Alamein  strong- 
hold. This  position  had  been  won  by  the  enemy  within  the  last  few 
days.  Battles  are  still  in  progress. 


-207- 


CONFIDENTIAL 
14  Jul.  1942 


Enemy  reconnaissance  forces  operating  against  the  southern  flank 
were  thrown  back  to  the  east  by  a  German  attack.  A  number  of 
elevations  were  taken  and  the  descent  into  the  Qattara  depression 
was  blocked.   Our  troops  succeeded  in  shortening  the  front 
considerably. 


e 


C 


-208- 


CONFIDENTIAL 
15  Jul.  1942 

Items  of  Political  Importance 

Great  Britain: 

In  the  House  of  Commons,  Minister  Lyttelton  made  a  statement  on  the 
production  problem.  Britain's  air  force,  he  stated,  positively  ranks 
first.  A  new  torpedo  plane  is  being  added  to  the  naval  air  force,  and 
other  planes  are  being  equipped  to  carry  torpedoes.   Except  for  the 
reconversion  of  one  type  of  British  bomber  into  a  transport  plane, . 
Britain  is  leaving  the  construction  of  this  type  of  plane  primarily  to 
the  United  States.  For  the  rest,  Britain  is  obliged  to  supply  the 
major  portion  of  her  requirements  in  planes  herself.   Plane  produc- 
tion has  increased  since  January  1941  two  and  a  half  times.   A  scien- 
tific research  station  has  been  established  for  the  purpose  of  improv- 
ing Britain* s  arms.  (The  similarity  to  the  centralization  of  German 
scientific  research  under  military  leadership  is  worthy, of  note.)   In 
the  year  1942  preference  is  to  be  given  to  the  production  of  means  of 
transportation,  particularly  ships. 

According  to  reports  of  the  neutral  press,  the  latest  Russian  defeats 
are  being  viewed  with  great  seriousness.   Consequently,  the  discussion 
of  the  question  of  a  large-scale  operation  again  occupies  a  prominent 
place  in  the  major  British  newspapers.   The  Times"  writes  that  the 
present  situation  simply  obliges  the  Allies  to  take  a  risk  and  hazard 
an  "adventure",  particularly  in  view  of  the  danger  that  Japan  will 
attack  Russia  in  the  near  future.  There  is  likewise  talk  that  Stalin 
made  an  urgent  demand  on  London  for  a  second  front. 

Portugal ; 

According  to  the  report  of  the  Portuguese  Colonial  Minister  from 
Angola,  the  Portuguese  Government  has  up  to  the  present  denied  the  re- 
quest of  the  Union  of  South  Africa  to  permit  the  use  of  Portuguese 
ports  for  the  transport  of  arms  and  food  supplies.   Contrary  to  the 
mother  country,  Angola  and  Mozambique  are  said  to  be  quite  pro-British. 
Nevertheless,  the  Colonial  Ministry  does  not  consider  the  situation  of 
the  colonies  in  any  way  critical,  since  the  Union  of  South  Africa  has 
only  200,000  men  at  her  disposal  and  70,000  of  these  are  already  fight- 
ing in  North  Africa. 

Turkey: 

In  the  opposition  circles,  particularly  among  the  officer  corps,  there 
is  a  desire  to  place  at  the  head  of  the  government  an  experienced 
general,  one  who  would  be  capable  of  putting  an  end  to  the  vacillating 
policy  pursued  hitherto  and  of  making  a  decision  before  it  is  too  late. 

U.S.A.: 

Sumner  Welles  gave  a  detailed  account,  to  the  press  of  the  negotiations 
carried  on  with  Vichy  concerning  the  French  naval  forces  in  Alexandria. 
After  the  rejection  of  the  first  American  proposal,  Roosevelt  proposed 
on  9  July  that  the  ships  be  brought  to  Martinique  under  safe  conduct 


-209- 


CONFIDENTIAL 
15  Jul.  1942 

and  berthed  there  along  with  the  other  vessels  cf  the  Antilles,  until 
the  end  of  the  war,  with  the  assurance  that  they  would  then  be  re- 
stored.  Laval  rejected  this  proposal  as  well.   The  problem  is  now 
being  further  examined. 

The  French  Ambassador  in  Washington  declared  a  few  days  ago  that 
France  will  remain  loyal  to  her  traditional  friendships,  which  the 
misfortunes  and  misunderstanding  of  these  difficult  times  will  not  be 
able  to  alter. 

This  utterance  without  doubt  signifies  more  than  a  mere 
conventional  phrase  proffered  by  an  Ambassador  to  the 
country  which  is  his  host.   It  justifies  the  Fuehrer's 
distrust  towards  France,  which  determines  his  policy 
of  restraint  towards  that  country. 

According  to  a  Trans-Ocean  report,  the  U.S.  has  stopped  delivering  sup- 
plies to  Turkey  which  the  latter  vas  receiving  under  Lend-Lease.   The 
plausible  reason  given  is  that  the  materiel  is  more  urgently  needed 
elsewhere. 

India ; 

The  present  British-Indian  relations  are  said  to  have  reached  the 
point  where  the  Executive  Committee  of  the  All-India  Congress  will 
demand  on  7  Aug.  that  the  British  agree  in  principle  to  a  later  re- 
linquishment of  her  rule  over  India.   India  will  agree  not  to  make 
trouble  for  the  Allies  for  the  duration  of  the  war.   Otherwise  the 
Indians  will  threaten  to  resort  to  passive  resistance  under  Gandhi's 
leadership. 

Britain's  reaction  to  this  demand  will  show  how  strong 
she  still  feeis  herself  to  be  at  this  time. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff; 

I.   The  Chief,  Naval  Communications  Division  reports  that  as  of  to- 
day, the  order  of  the  Air  Force  General  Staff  goes  Into  force  accord-  f 
ing  to  which  all  areas  of  the  different  air  forces  are  to  cooperate 
with  the  Navy  with  regard  to  communications.   This  brings  to  a  suc- 
cessful termination  the  protracted  efforts  of  the  Naval  Staff  Com- 
munications Division. 

The  Chief  of  the  Naval  Staff,  Operations  Division,  Foreign 
Affairs  Section  reports  on  further  negotiations  between  Vichy  and 

hington  with  regard  to  the  French  naval  forces  at  Alexandria,  in 
accordance  with  the  account  given  by  Sumner  Welles.   In  rejecting 
the  second  Roosevelt  demand,  Laval  cited  the  stipulations  of  the 


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CONFIDENTIAL 
15  Jul.  1942 

Armistice  Commission,  which  make  it  obligatory  that  the  French  war- 
ships go  to  the  nearest  French  ports. 

Although  at  the  moment,  due  to  the  military  situation  in  North 
Africa,  the  matter  is  not  acute,  still  it  is  necessary  to  reply  to 
the  French  request  for  permission  to  call  at  an  intermediate-  port 
en  route  to  Bizerte.  This  is  all  the  more  necessary  since  the  U.S. 
Government  continues  to  press  the  question  regardless  of  whether  or 
not  Alexandria  is  in  danger  of  being  conquered. 

The  efforts  of  the  Naval  Staff  are  directed  towards  keeping  the 
French  naval  forces  under  the  control  and  authority  of  the  Armistice 
Commissions  as  a  potential  weapon  to  use  against  the  U.S.  and  Great 
Britain.   The  Italians,  on  the  other  hand,  obviously  desire  the  de- 
struction of  the  French  force.  The  Italian  proposals  (see  War  Diary, 
14  Jul.)  are  inspired  by  this  aim  and  the  desire  to  obtain  definite 
security.   They  also  reveal  a  strong  distrust  of  Germany.   As  is 
confirmed  in  the  reports  of  Group  South  and  the  German  Naval  Command, 
Italy,  the  reasons  offered  by  the  Italians  for  rejecting  the  French 
proposals  are  mere  subterfuges.   The  Naval  Staff  takes  the  position 
that  naval  warfare  in  the  Aegean  Sea  is  under  German  command  and  the 
port  of  Piraeus  is  under  German  control,  so  that  the  Italians  could 
have  no  objection  from  a  military  standpoint.   The  offer  of  Italian 
intermediate  por,ts  is  enough  to  make  political  objections  untenable. 
The  Chief,  Naval  Staff  does  not,  therefore,  consent  to  allow  the 
French  ships  to  put  into  Leros  or  Navarino.   The  Naval  Staff  suggests 
that  the  Italian  High  Command  be  informed  that  Germany  insists  on 
approval  being  granted  for  the  French  ships  to  enter  the  Piraeus 
roadstead,  and  that  the  French  are  being  informed  immediately  to 
that  effect.   In  informing  the  Italian  High  Command  of  the  German 
"stand, the  views  expressed  above  should  be  cited,  if  necessary. 

The  Chief,  Naval  Staff  agrees.  This  viewpoint  is  forwarded  to  the 
Armed  Forces  High  Command,  Operations  Staff,  with  copies  to  the 
Naval  Officer,  Armistice  Commission,  France;  to  the  German  Naval 
Command,  Italy;  and  to  Naval  Group  South,  Copy  as  per  l/Skl  I  c 
17138/42  Gkdos.  is  in  War  Diary,  Part  C,  Vol.  XV. 

Further  account  of  the  matter  is  in  War  Diary,  Part  C,  Vol.  VIII. 

III.  Report  of  the  Chief  of  the  Naval  Staff  Intelligence  Division: 
According  to  a  report  of  the  Irish  envoy  at  Lisbon,  the  fall  of 
Alexandria  might  cause  the  fall  of  Churchill.   In  that  event,  an 
interim  cabinet  under  the  leadership  of  Hoare  would  probably  take 
over.   This  cabinet  would  immediately  make  room  for  a  successor  who 
would  be  chosen  to  carry  out  a  peace  policy. 

British  are  planning  for  autum  a  large-scale  air  offensive 
against  Germany. 


-211- 


CONFIDENTIAL 
15  Jul.  1942 

In  a  very  restricted  circle: 

IV.   Report  of  the  Chief  of  Operations  Branch,  Naval  ..taff  Opera- 
tions Division: 

a.    Concerning  the  charts  which  allow  one  to  calculate  the 
dates  on  which  the  enemy  is  most  likely  to  attempt  an  invasion  of 
the  French  coast,  on  the  basis  of  conditions  prevailing  at  the  time. 
(See  War  Diary,  13  Jul.)  At  the  request  of  the  Fuehrer,  the  Naval 
Staff  computed  from  these  charts  that,  supposing  the  conditions 
which  were  considered  necessary  for  operation  "Seeloewe",  the  like- 
liest dates  would  fall  between  4  and  7  Aug.  and  at  the  beginning  of 
September.   However,  in  submitting  the  report  to  the  Fuehrer  the 
Permanent  Representative  of  the  Commander  in  Chief,  Navy  expressly 
pointed  out  that  the  British  will  probably  consider  different  con- 
ditions necessary  for  an  Invasion.   In  view  of  the  purely  theoret-' 
ical  value  of  the  computation,  it  was  intentionally  not  communi- 
cated to  naval  commands. 

b..   Concerning  the  request  of  the  Permanent  Representative  of 
the  Commander  in  Chief,  Navy  at  Fuehrer  Headquarters  that  the  sub- 
marine distribution  chart  be  submitted  regularly  to  the  Fuehrer, 
the  Naval  Staff  believes  that  this  would  burden  the  Fuehrer  excess- 
ively with  details.   The  Chief,  Naval  Staff  shares  this  opinion  and 
takes  it  upon  himself  to  report  personally  and  submit  the  distri- 
bution chart  to  the  Fuehrer  from  time  to  time. 


Special  Items; 

I.   In  accord  with  the  suggestion  of  the  Naval  Staff  of  19  May 
1942,  Group  North  has  investigated  the  possibility  of  combatting 
the  heavy  enemy  escort  forces  in  the  Arctic  Ocean  by  means  of  mines, 
Group  North  found  that  in  the  case  of  the  last  Anglo-American  con- 
voys PQ  15,  16,  and  17,  heavy  enemy  escort  forces  were  always  sta- 
tioned»among  other  places,  precisely  in  quadrant  AF  5350.   From 
there  these"  forces  proceeded  to  Seydi  Fjoerdr  or  Reidar  Fjoerdr,  pos- 
sibly in  order  to  dispatch  some  light  forces  to  take  on  fuel  and 
rejoin  them.  The   Group,  therefore,  requested  on  8  Jul.  that  a 
large  mine-laying  submarine  and  66  rack  mines,  type  A  equipped  with 
timing  devices  and  self- submerging  devices  (Versenkzuender)  be  made 
available  at  the  earliest  date,  if  possible  before  convoy  PQ  18 
gets  under  way.   It  is  planned  to  lay  a  number  of  small  barrages 
similar  to  the  Capetown  mine  field  along  the  routes  between  quad- 
rant AE  5350  and  the  above-mentioned  fjords.   In  view  of  the  par- 
ticularly favorable  prospects  for  success,  Group  North  suggests 
that  approval  be  granted  for  the  use  of  these  rack  mines  before 
their  last  operational  test.   Even  if  these  mines  surface,  this 
feature  is  unobjectionable  due  to  the  numerous  drift  mines  prev- 
alent in  this  area.   Quadrants  AE  9300,  9650,  and  9900  are  also 
passed  regularly  by  forces  escorting  convoys.  However,  in  these 
areas  the  possibilities  for  using  mines  are  limited  because  of  the 
depth  of  the  water.   Group  North  will  try  to  assign  submarines  to 
that  area  by  arrangement  with  the  Commanding  Admiral,  Submarines, 


-212- 


CONFIDENTIAL 
15  Jul.  1942 

While  agreeing  to  the  above  in  principle,  the  Naval 
Staff  considers  it  desirable  to  learn  the  opinion  of 
the  Commanding  Admiral,  Submarines  regarding  the  use 
of  the  rack  mine,  type  A  ahead  of  time,  since  these 
mines  are  not  yet  considered  ready  for  operational 
use  due  to  premature  detonation.   The  Commanding  Ad- 
miral, Submarines  correctly  states  that  premature 
laying  of  these  mines  which  are  not  yet  suitable  for 
operational  use  not  only  affords  slight  prospects  of 
success  but  may  cause  the  betrayal  of  an  area  which 
is  intended  to  be  mined  later  on.   The  Commanding 
Admiral,  Submarines  is  planning  mine-laying  opera- 
tions in  sites  of  equal  importance  where  the  traffic 
is  heavier,  and  considers  it  wrong  therefore  to  em- 
ploy this  mine  which  is  not  yet  ready  for  operational 
use. 

Since  according  to  the  report  submitted  by  the  Naval  Ordnance  Di- 
vision to  the  Commander  in  Chief,  Navy  (See  War  Diary,  14  Jul.)  the 
question  of  the  operational  readiness  of  the  rack  mine,  type  A  does 
not  appear  to  have  been  definitely  clarified,  a  new  inquiry  was 
addressed  to  the  Naval  Ordnance  Division.   The  reply  was  that  it  is 
expected  that  this  mine  can  probably  be  authorised  for  operational 
use  following  the  test  with  submarine  U  M118",  providing  that4 
nothing  unusual  happens  when  the  experimental  mine  field  is  laid  by 
submarine  U  "118". 

Consequently,  the  Naval  Staff  agrees  with  Group  North  in  its  estimate 
of  the  situation  and  the  results  to  be  expected  if  mines  are  used, 
but  is  obliged  to  deny  permission  to  employ  the  rack  mine  type  A, 
which  is  not  yet  fit  for  operational  use. 

I.   In  connection  with  the  order  given  Group  North,  some  time  ago 
to  reconnoitre  regularly  and  systematically  the  waters  around  Ireland, 
the  Naval  Staff  requests  the  Group  to  submit  a  detailed  opinion  of 
the  possibilities  for  the  pocket  battleships  to  break  through  to  the 
Atlantic.   Possible  dates  would  be  as  follows:   Departure  October- 
November  1942,  return  March -April  1943;  departure  February-March 
1943,  return  winter  of  1943-1944. 

III.  Russian  torpedo  planes  have  been  observed  lately  in  the  northern 
area  and  in  the  Gulf  of  Finland.   The  Commander  in  Chief,  Navy 
emphasized  the  fact  that,  the  problem  of  protecting  our  ships  at 
their  anchorages,  for  example  in  the  Alta  Fjord,  against  aerial 
torpedoes  is  becoming  more  important. 

The  Naval  Staff  Operations  Division  requests  the  Naval  Staff  Quarter- 
master Division  to  take  further  steps. 


-213- 


CONFIDENTIAL 


15  Jul.  1942 


IV.   Data  on  Escort  and  Transport  Operations  in  the  Area  of  Group 


North  for  the  Month  of  June 

1942: 

Com.  Mine 
Sweepers, 
Baltic 
Sea 

Naval 
Station 
Baltic 

Area  of 

Com.  Ad. , 

Defenses, 

North 

Area  of 

Com.  Ad., 

Defenses, 

Baltic 

Sea 

Norway 

a.  Escorted  war- 
ships 

31 

38 

16 

53 

106 

b.  Escorted  mer- 
chantmen 
number: 

585 

87 

58 

89 

716 

GRT: 

1,163,363 

560,870 

142,150* 

424,159 

1,821,684 

c.  Number  of  air 
raids  and  sub- 
marine attacks 

12 

- 

20 

- 

5 

d.  Total  losses 
by  mines: 
bombs,  etc. 

6 

1 

6 

3 

1 

_ 

e .  Number  of 
mines  swept 

114 

11 

40 

32 

5 

Planes  shot 
down 

5 

- 

3 

— 

— 

Enemy  sub- 
marines sunk 

- 

- 

probably 
several 

- 

- 

PT  boats,  etc., 
sunk 

3 

- 

- 

- 

— 

f.  Remarks 

- 

- 

- 

- 

- 

*  and  9  hospital  ships. 


-214- 


CONFIDENTIAL 
15  Jul.  1942 

Situation  15  Jul.  1942 

I.   War  In  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic; 

The  DIOMEDE  departed  from  Gibraltar  in  an  unknown  direc- 
tion.  The  Intelligence  Service  belatedly  reports  from  Portugal  the 
following  information  concerning  the  Freetown  convoy:   More  than 
100  transport  ships  were  anchored  in  Freetown  on  4  Jul.  Among  them, 
having  arrived  in  convoy,  were  the  steamers  QUEEN  MARY,  QUEEN 
ELIZABETH,  MANHATTAN,  and  PASTEUR,  as  well  as  the  escort  ships 
RODNEY,  NELSON,  MALAYA,  and  2  heavy  U.S.  vessels.   This  represents 
the  largest  convoy  yet  to  have  arrived  in  Freetown.   It  is  said 
that  from  100,000  to  120,000  men  disembarked  from  these  ships.  Ac- 
cording to  rumors  these  men  are  scheduled  to  move  out  of  Freetown 
for  operations  against  Dakar. 

Serious  consideration  should  be  given  to  this  report 
if  it  proves  authentic. 

South  Atlantic: 

Renewed  reports  of  the  constant  arrival  of  American  trans- 
ports carrying  a  large  number  of  motor  vehicles  have  come  in  from 
Matadi. 

2.  Own  Situation: 

In  reply  to  his  inquiry,  the  Naval  Attache  at  Tokyo  is 
informed  as  follows: 

Phe  D0GGERBANK  continues  to  serve  as  an  auxiliary  warship 
classified  as  a  transport  ship.   (In  accordance  with  a  similar 
classification  by  the  Japanese.) 

b.   The  D0GGERBANK,  proceeding  at  a  speed  of  9  knots,  will  be 
at  point  1  on  route  "gelb"  on  about  26  Jul.   She  has  at  least  200 
war  prisoners  aboard. 

Information  concerning  enemy  situation  transmitted  to  all  vessels 
in  foreign  waters  by  Radiogram  0417. 


II.   Situation  West  Area 

1.   Enemy  Situation: 

According  to  air  reconnaissance,  24  landing  craft,  2  de- 
stroyers, and  1  escort  vessel  were  anchored  in  Plymouth  at  1130. 
The  usual  amount  of  convoy  traffic  is  noted  along  the  south  coast  of* 
the  British  Isles.  Beginning  at  1410,  radio  monitoring  intercepted 
reports  concerning  the  total  loss  of  a  mine  layer  in  an  air  raid 
west  of  Boulogne  and  the  sighting  of  a  burning  mine  layer  south- 
east of  Dungeness. 

-215- 


CONFIDENTIAL 


15  Jul.  1942 


2.    Own  Situation; 

Atlantic  Coast; 

The  transfer  of  the  damaged  Italian  submarine  LUIGI 
TORELLI  from  Santander  to  Bordeaux  was  made  according  to  plan.  Three 
ground  mines  were  swept  off  Lorient.   Owing  to  suspected  mines,  the 
ronde  estuary  had  to  be  closed  to  shipping  temporarily. 

Channel  Coast; 

The  "Brahma"  mine-laying  mission  was  carried  out  accord- 
ing to  plan  on  the  night  of  14  Jul.   The  2nd  PT  Boat  Flotilla  did 
not  go  out  on  torpedoing  missions   since  air  reconnaissance  failed 
to  detect  any  targets  at  sea.   PT  boats  served  as  a  remote  escort 
for  the  "Brahma"  mission. 

enemy  motor  gunboats  attacked  a  troop  transport  convoy  off 
Alderr  ey  Island  at  0155.   The  attack  was  repulsed.   One  of  the 
attach  Lng  boats  appears  to  have  been  damaged.   Our  force  sustained 
slight  damage  and  small  losses  in  personnel.   In  the  morning  the 

-pedo  Boat  Flotilla  arrived  in  Dunkirk.   Strong  enemy  fighter 
forc<  i  at  noon  repeatedly  attacked  the  signal  posts  at  Fecamp, 
Saint e  Marguerite,  Varengeville,  and  Dieppe.   No  sizable  damage 
was  inflicted. 

In  the  afternoon  the  Mont  de  Couple  and  De  la  Creche  batteries  un- 
successfully shelled  !!  enemy  PT  boats  and  2  sea  rescue  vessels  in 
quadrant  BF  3328.   One  of  these  vessels  was  sunk  by  one  of  our 
fighter  planes.   Mining  operation  "Putra"  began  in  the  evening.  Ten 
PT  boats  went  out  to  lay  mines  attended  by  a  remote  escort. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  Enemy  Situation; 
North  Sea; 

Slight  air  activity. 

2,  Own  Situation; 

Enemy  air  activity  over  the  German  Bight  on  the  night  of 
It  is  suspected  that  mines  were  dropped  in  the  area  between 
elllng  and  Wangeroog,  also  in  the  waters  around  Heligoland 
and  off  Westerland,   No  successes  reported  from  night  fighter 
missions.  Enemy  air  raids  at  Westkapelle  in  the  afternoon.   One 
target  towing  escort  vessel  was  sunk  and  the  tug  was  brought  in, 
in  a  damaged  condition.   No  damage  was  sustained  by  the  Rhein 

'tilla.  One  attacking  plane  was  shot  down.  The  "Kobold"  mining 
mission  was  carried  out  according  to  plan.  Eight  ground  mines  were 
swept . 


-21S< 


CONFIDENTIAL 
15    Jul.    1942 

Norway: 

One  naval  barge  was  sunk  with  her  cargo  of  ammunition  in 
the  course  of  brisk  enemy  air  activity  along  the  Arctic,  the  north 
Norwegian,  and  the  west  Norwegian  coasts.   Considerable  loss  in  per- 
sonnel was  sustained. 

The  cruisers  KOELN  and  FRIEDRICH  ECKOLDT  arrived  in  Trondheim.   The 
FRIEDRICH  IHN  and  destroyer  Z  "24"  are  returning  south. 

Escort  duty  proceeded  according  .to  plan.   No  noteworthy  occurrences. 

For  the  assignment  of  the  METEOR  as  a  gunboat  or  escort  vessel  in 
the  area  of  the  Commanding  Admiral,  Norway,  see  Telegrams  1628  and 
2238. 

Arctic  Ocean: 

Memo  from  Group  North  to  the  Naval  Staff:   The  communica- 
tions service  would  perform  an  unusually  important  service  for 
Group  North  if  they  could  find  out  whether,  instead  of  PQ  convoys, 
the  enemy  is  sending  unescorted  single  vessels  along  the  ice  border. 

The  Naval  Staff,  Operations  Division  makes  a  corresponding  request 
to  the  Naval  Communications  Division  (Radio  Intelligence)  and  the 
Naval  Intelligence  Division. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

Nothing  to  report  from  the  Skagerrak,  Baltic  Sea  Entrances, 
the  western  and  central  Baltic  Sea. 

Mine  fields  "Lachs"  1,  2,  and  3  were  laid  according  to  plan  in  the 
eastern  Baltic  Sea  (Gulf  of  Finland). 

According  to  a  report  of  Group  North,  2  Russian  submarines  struck 
mines  in  the  "Seeigel"  field  and  were  destroyed.   Life  jackets  and 
fragments  of  timber  were  found. 

The  Northern  Army  Group  returned  the  531st  Naval  Artillery  Battalion 
to  the  Commanding  Admiral,  Baltic  Countries. 

The  "Lachs  6"  mine-laying  mission  is  in  progress;  the  "Sauna" 
mission  got  under  way  in  the  evening.   The  1st  Motor  Mine  Sweeper 
Flotilla  and  Finnish  PT  boats  are  carrying  out  the  missions  with 
the  support  of  the  Finnish  Air  Force.   The  I  Air  Corps  is  simul- 
taneously staging  raids  on  the  islands  of  Seiskari  and  Lavansaari. 


-217- 


CONFIDENT  I  & 
15  Jul.  1942 

After  the  relief  of  Kholm  the  commander  of  the  forces  of  the  naval 
motor  transport  company  surrounded  in  that  place  reports:   Of  the 
total  of  the  85  men  who  were  surrounded  29  men  were  killed,  37 
wounded,  4  missing,  1  ill,  and  14  were  still  on  duty  on  9  May. 
(See  Telegram  1005.) 

Another  conference  between  the  chief  of  staff  of  the  1st  Air  Force 
and  the  command  of  the  coastal  brigade  of  Lake  Ladoga,  with  the 
participation  of  a  representative  of  the  Naval  Liaison  Staff,  Fin- 
land, produced  complete  understanding  on  the  questions  of  command 
and  assignment  of  forces  on  Lake  Ladoga.   For  further  details  see 
Telegram  1039. 

Group  North  requests  the  1st  Air  Force  and  the  I  Air  Corps  to  obtain 
information  concerning  the  movements  of  Russian  destroyers,  perhaps 
also  of  the  cruiser  MAKSIM  GORKI,  by  means  of  constant  photo 
reconnaissance.  When  located  these  ships  are  to  be  made  the  main 
target  of  our  operations. 


V.    Submarine  Warfare 

1.  Enemy  Situation: 

Special  Items: 

The  U.S.  Secretary  of  the  Navy  Knox  announced  an  opera- 
tion against  the  Axis  submarines  extending  to  all  corners  of  the 
globe.   "There  won't  be  any  fighting  unless  we  are  able  to  get  rid 
of  the  submarines."  The  convoy  system  adopted  for  the  east  coast  of 
the  U.S.  on  14  May  has  been  extended  to  the  Caribbean  Sea.   Ship- 
ping in  the  Gulf  of  Mexico  will  also  be  included  under  this  convoy 
system  as  soon  as  possible. 

Brisk  reconnaissance  activity  was  observed  in  the  rendezvous  area 
and  off  Iceland.   One  of  our  submarines  putting  out  to  sea  was  re- 
peatedly reported  by  planes  northwest  of  Cape  Vilano. 

The  sighting  of  a  mine  was  reported  60  miles  east  of  Cape  Charles, 
At  0900  a  message  was  intercepted  from  the  western  entrance  to  the 
Florida  Strait,  telling  of  a  submarine  attack.   At  1041  two  U.S. 
destroyers  received  an  order  to  proceed  full  speed  ahead  to  the  site 
of  the  attack  and  to  give  chase  to  the  submarine. 

2.  Own  Situation: 

No  reports  of  successes  scored  off  the  U.S.  coast  and  in 
the  West  Indies  have  as  yet  been  received.   Submarine  U  "201M,  one 
of  the  submarines  operating  in  the  south,  reported  sinking  the 
tanker  BRITISH  YEOMAN  (6,999  GRT)  which  was  en  route  from  Curacao 


-218- 


) 


CONFIDENTIAL 
15  Jul.  1942 

to  Gibraltar. 

In  the  Mediterranean,  submarine  U  "501"  reported  a  miss  on  a  de- 
stroyer in  quadrant  CP  8257. 

Other  reports  in  Supplement  to  Submarine  Situation  in  War  Diary, 
Part  B,  Vol.  IV. 


VI.   Aerial  Warfare 

1.  British  Isles  and  Vlclnityt 

Five  enemy  planes  were  shot  down  in  the  western  area  on 
14  and  15  Jul. 

For  the  sinking  of  a  PT  boat  or  a  sea  rescue  boat  see  Situation 
West  Area. 

Twenty-one  of  our  planes  mined  the  Thames  on  the  night  of  15  Jul. 
Only  7  incursions  were  reported  from  Holland  and  the  Belgian- 
Northern  France  area. 

2.  Mediterranean : 

Numerous  reconnaissance  and  bombing  operations  in  North 
Africa. 

At  1630,  an  enemy  cruiser,  on  an  attempted  breakthrough  to  the  east 
out  of  Gibraltar,  was  attacked  60  miles  northeast  of  Cape  Bon.  One 
hit  was  allegedly  scored,  with  an  SC  250  bomb. 

3.  Eastern  Front : 

Only  limited  commitment  of  planes  in  the  southern  sector 
of  Army  Groups  A  and  B,  due  to  unfavorable  weather.   In  the  Arctic 
Ocean  area,  the  transformer  station  at  Murmashi  was  attacked  with 
good  effect. 

No  noteworthy  reports  were  received  from  other  zones  of  operation  on 
the  Eastern  Front. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation; 

Mediterranean ; 

A  DIOMEDE-class  cruiser  left  Gibraltar  on  the  night  of 
14  Jul.   Destination  unknown.   In  the  forenoon  of  15  Jul.  another 


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CONFIDENTIAL 
15  Jul.  1942 

cruiser  of  the  DIDO  class  arrived  in  Gibraltar  from  the  west. 

The  EAGLE  task  force  proceeding  on  a  westerly  course  and  consisting 
of  1  carrier,  2  cruisers,  and  a  number  of  destroyers  was  sighted  at 
0830  some  70  miles  north  of  Algiers. 

According  to  German  air  reconnaissance  at  1230  an  eastbound  cruiser 
proceeding  at  high  speed  was  30  miles  northeast  of  Cape  Bougaroun. 
She  was  continuously  shadowed  until  2225,  at  which  time  she  was  pro- 
ceeding in  an  easterly  direction  16  miles  north -northwest  of  Cape 
Bon. 

Thus  the  enemy  again  succeeded  in  breaking  through  the 
Sicily  Strait.   There  is  no  doubt  that  his  destina- 
tion is  Malta. 

Livelier  escort  and  patrol  activity  was  observed  in  the  area  between 
Alexandria  and  Port  Said. 

2.  Situation  Italy: 

The  Italian  Navy  sent  all  available  submarines  and  air 
forces  against  the  enemy  cruiser.  In  addition,  1  destroyer  left 
Cagliari  and  another  departed  from  Trapani. 

3.  Own  Situation; 
Mediterranean : 
Nothing  to  report. 

4.  Transport  of  Supplies  to  North  Africa: 

The  coastal  supply  for  the  Panzer  Army  is  adversely 
affected  by  the  loss  of  the  steamers  BROOK,  STURLA,  and  SAV0NA  and 
by  the  possible  withdrawal  to  the  Black  Sea  of  the  German  naval 
barges  from  the  Mediterranean  for  operation  "Bluecher".   Since  op- 
eration "Herkules"  will  be  delayed  until  operation  "Aidaw  is  termin- 
ated, the  Italian  barges  built  in  the  meantime  out  of  German  ma- 
terial will  be  available  for  "Herkules". 

The  Naval  Staff,  therefore,  directs  the  German  Naval  Command,  Italy 
to  urge  the  Italians  to  assign  these  new  naval  barges  as  far  as 
possible  for  the  time  being  for  service  in  coastal  supply  traffic, 
sending  them  to  the  most  advanced  sector  of  the  African  front  in 
order  to  insure  the  delivery  of  supplies  to  Rommel. 

As  a  matter  of  fact,  the  Italians  should  have  offered  to  do  so 
without  being  urged.   For  copy  of  the  corresponding  directive  see 

legram  1901.   No  arrival  of  ships  in  north  African  ports  was  re- 
ported on  15  Jul. 

Coastal  supply  shipping  proceeding  according  to  plan. 


-220- 


CONFIDENTIAL: 
15  Jul.  1942 

5.   Area  Naval  Group  South; 

Aegean  Sea: 

No  noteworthy  occurrences  during  the  day. 

According  to  information  from  Group  South  and  from  the  German  Naval 
Command,  Italy,  all  efforts  have  failed  so   far  to  settle  who  is  to 
be  responsible  for  directing  North  African  supplies  through  the 
Aegean  Sea.   Neither  the  German  Naval  Command,  Italy  nor  the  Italian 
Admiralty  is  in  a  position  to  know  local  conditions  in  the  area  of 
the  Commanding  Admiral,  Aegean  Sea.   Therefore,  Group  South  requests 
once  again  all  the  authorities  involved  to  secure  the  Italian 
Admiralty's  ^consent  to  the  proposal  of  Group  South  of  3  Jul.,  which 
has  the  approval  of  the  Naval  Staff. 

In  reply  to  an  inquiry,  the  chief  of  staff  of  the  Commanding  Admiral  , 
Aegean  Sea  declares  that  it  is  not  advisable  at  this  time  for  the 
Chief  of  Operations  Division,  Naval  Staff  to  intervene.   The  trans- 
port of  supplies  to  Africa  through  and  out  of  the  Aegean  Sea  has  been 
started.   The  difficulties  experienced  by  the  Commanding  ^dmiral, 
Aegean  Sea,  were  due  solely  to  the  fact  that  he  cannot  have  a  com- 
plete picture  of  his  ships  at  all  times.   Consequently,  it  is  diffi- 
cult for  him  to  assign  them. 

The  most  important  thing  is  that  the  transports  are 
kept  moving.   The  difficulties  described  do  not  seem 
insurmountable . 

Black  Sea; 

Enemy  Situation; 

Air  reconnaissance  reports  slight  activity  on  the  part  of 
the  fleet  and  increased  air  activity  in  the  area  of  Anapa. 

According  to  an  unconfirmed  intelligence  report,  22  British  PT  boats 
which  arrived  by  rail  are  being  assembled  in  Batum.   It  is  reported 
that  142  British  officers  and  men  are  in  readiness  for  these  PT  boats. 

Own  Situation; 

On  13  Jul.  a  mine  barge  struck  a  German  mine  and  sank  off 
Kerch.   On  the  night  of  12  Jul.  repeated  enemy  air  raids  were 
staged  on  Feodosiya.  Escort  missions  were  in  part  suspended  on  14 
Jul.  owing  to  weather  conditions. 

According  to  a  report  from  the  Naval  Attache  at  Istanbul,  shipping 
restrictions  out  of  Istanbul  have  been  lifted.  Burgas  remains  closed 
to  auxiliary  sailing  vessels. 


-221- 


CONFIDENTIAL 
15  Jul.  1942 

VIII.  Situation  East  Asia 

The  U.S.  Navy  Deparment  announces  that  4  Japanese  aircraft 
carriers,  2  heavy  cruisers,  and  3  destroyers  were  sunk,  and  3  battle- 
ships, 4  cruisers,  and  a  number  of  destroyers  were  damaged  in  an  en- 
gagement off  Midway  (on  4  to  6  Jun.)    275  Japanese  planes  were  de- 
stroyed, 4,800  Japanese  were  killed  or  drowned.   American  losses  were! 
the  carrier  Y0RKT0WN  was  put  out  of  action  and  the  destroyer  HAMMANN 
sunkj  92  officers  and  215  men  lost  or  missing. 

It  is  not  possible,  at  this  time,  to  verify  these 
apparently  very  high  figures  representing  Japanese 
losses. 


IX.  Army  Situation. 

1.  Russian  Front:  .— 

Army  Group  A: 

Strong  enemy  counterattacks  between  Krasny  Luch  and  Vorosh- 
ilovsk  were  repulsed.   Our  forces  took  Cherkaskoye.   Enemy  attempts 
to  break  through  to  the  southeast  on  the  Glubokaya  sector  between 
Gusev  and  Milerovo,  were  repulsed.  A  bridgehead  was  established  near 
Kovalov.   Our  troops  reached  Krasnovka  (5  km  north  of  Kamensk).  Assaults 
by  Russian  tanks  on  Tarasovka,  launched  from  the  northwest,  suffered 
a  bloody  collapse.   The  III  Panzer  Corps  effected  a  junction  with  the 
4th  Panzer  Army  near  Vodyanoy. 

Army  Group  B: 

Units  of  the  6th  Army  moved  across  the  Dyatkovo-Kazanskaya 
road  to  the  east.   The  heavy  battles  on  the  northeastern  sector  of  the 
Voronezh- bridgehead  are  continuing.   Enemy  forces  carried  out  attacks 
between  the  Don  and  the  Olym  Rivers  with  the  object  of  probing  the  sit- 
uation. 

Central  Army  Group:  ^ 

Local  engagements  on  the  western  bank  of  the  Resseta  River 
and  north  of  Lyudinovo.  Attempts  to  break  out  of  the  encirclement  near 
Byeloi  failed. 

Northern  Army  Group: 

No  noteworthy  engagements. 

2.  Finnish  and  Norwegian  Front : 
Nothing  to  report. 


-222- 


» 


CONFIDENTIAL 
15  Jul.  1942 

3.   North  Africa; 

On  the  night  of  17  Jul.  heavy  enemy  forces  attacked  the 
southern  wing  of  the  Italian  X  Army  Corps  at  the  central  sector  of 
the  front.   The  enemy  overran  the  Brescia  Division,  struck  at  the 
rear  of  the  Pavia  Division  to  the  north  of  it,  and  advanced  to  the 
northwest.   The  bulk  of  both  Italian  divisions  was  destroyed.  Some 
units  of  these  divisions  yielded  their  positions  without  a  fight. 
The  remaining  units  of  the  Pavia  Division  repelled  all  enemy 
attacks.   The  Panzer  Army  succeeded  in  launching  a  successful 
counterattack  in  this  critical  situation  and  in  sealing  off  the 
enemy  penetration  in  the  north  and  west.   In  order  to  accomplish 
this  it  was  necessary  to  employ  the  21st  Panzer  Division  which  is 
operating  against  the  fortified  enemy  position  on  the  northern 
sector,  as  well  as  units  of  the  German  troops  operating  on  the 
southern  wing.    1,200  prisoners  were  brought  in.   Thus  it  was 
possible  to  restore  the  situation  against  an  enemy  who  no  doubt 
also  was  under  a  heavy  strain,  turning  it  into  a  partial  tactical 
success.   This  was  accomplished  despite  the  disastrous  failure  of  the 
Italian  divisions.   Our  Air  Force  furnished  invaluable  support. 


>) 


-223- 


CONFIDENTIAL 

16  Jul.  1942 

Items  of  Political  Importance 

Sweden; 

As  a  result  of  neutrality  violations  by  Russian  submarines,  the  King 
personally  induced  the  Cabinet  to  promulgate  a  secret  order  of  the  day 
to  the  Fleet,  the  Air  Force,  and  the  Coast  Artillery,  directing  them  to 
attack  any  warship  in  Swedish  territorial  waters  without  warning  unless 
she  has  special  permission  or  is  in  distress.   Foreign  warships  are  also 
to  be  attacked  outside  of  the  3-mile  limit  if  they  are  about  to  attack 
Swedish  territory  or  preparing  for  such  action. 

Great  Britain; 

Reports  from  a  neutral  source  concerning  conditions  and  morale  in  England, 
which  for  the  most  part  confirm  or  reiterate  known  facts,  are  in  Polit- 
ical Review  No.  164,  Par.  2. 

An  intelligence  report  from  England  dated  8  Jul.  confirms  the  continuing 
withdrawal  of  troops  from  Syria,  Iran,  and  Iraq, and  definitely  also  from 
India,  for  concentration  in  the  Nile  Delta.   Since,  in  the  interest  of 
Egypt's  defense,  it  is  impossible  to  avoid  exposing  the  strategically 
important  positions  of  the  9th  and  10th  Armies  as  well  as  India  to  a 
maximum  extent  until  replacements  have  arrived  from  England,  a  dangerous 
vacuum  will  prevail  until  the  end  of  September.   Forty -two  thousand  men 
departed  for  overseas  from  ports  on  the  west  coast  of  the  British  Isles 
during  the  early  days  of  July. 

U.S.A. t 

The  pressure  on  Argentina  is  being  intensified.   U.S.  newspapers  have 
begun  to  level  sharp  personal  attacks  on  Castillo. 

According  to  a  diplomatic  .report,  the  Brazilian  Government  has  been 
asked  to  make  available  for  the  coming  year  a  considerable  contingent 
of  troops  for  commitment  overseas. 

Japan ; 

The  Japanese  have  forwarded  a  memorandum  to  the  Government  of  Chile  which 
states  that  Japan  has  up  to  now  taken  care  to  protect  Chilean  shipping 
and  will  continue  to  do  so.   The  memorandum  contains  the  reminder  that 
it  is  of  course  not  possible  to  promise  that  Japanese  forces  will  not 
operate  in  the  waters  south  of  Panama  and  north  of  Chile. 

Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

In  a  very  restricted  circle; 

Report  of  the  Chief  of  Operations  Branch,  Naval  Staff  Operations  Divis- 
ion: At  the  Fuehrer's  request,  the  Commander  in  Chief,  Air  Force  is 
preparing  a  raid  on  New  York  by  two  BV  222' s.   He  is  negotiating  with 
the* Naval  Staff  to  secure  its  support  of  the  operation.  Using  a  surface 
vessel  as  a  supply  ship  is  out  of  the  question.   However,  submarines  of 
the  type  IXc  might  be  able  to  supply  the  planes  with  fuel  and  ammunition. 
The  Commanding  Admiral,  Submarines  also  considers  the  operation  feasible 
from  a  technical  standpoint.   The  effect  on  submarine  warfare  would  be 
equivalent  to  the  cancellation  of  2  missions  during  which  60,000  to 


-  224  - 


#) 


• 


16  Jul.  19^2  CONFIDENTIAL 

80,000  GRT  of  enemy  shipping  could  be  sunk.   The  submarines  type  IXc 
which  are  in  western  France  are  scheduled  to  be  assigned  to  the  Capetown 
mission.   Submarines  type  IXc  for  a  mission  in  the  west  in  support  of 
the  operation  of  the  BY  222' s  can  be  available  at  home  bases  for  conver- 
sion and  outfitting  beginning  8  Aug.   They  will  not  be  able  to  sail  be- 
fore the  end  of  August.   The  project  calls  for  furnishing- 2  bases  for 
the  planes,  one  1,000  km.  and  the  other  3,000  km.  from  the  enemy  coast. 


Special  Items 

I.  The  Japanese  Naval  Staff  transmitted  via  the  Japanese  Naval  Attache 
in  Berlin  its  approval  for  an  operations  area  for  the  German  auxiliary 
cruiser  in  the  Indian  Ocean.   The  operations  area  is  situated  south  of 
20°  S,  between  60°  and  80°  E.   The  Japanese  Naval  Staff  also  advised 
that  the  operations  area  effective  heretofore  will  again  be  in  effect 
upon  termination  of  the  auxiliary  cruiser's  operations. 

The  Naval  Staff  has  been  asked  not  to  permit  the  auxiliary  cruiser  to 
cross  the  demarkation  line  of  the  present  operations  area  before  0000 
on  20  Jul. 

Corresponding  directive  to  ship  "10"  via  Radiogram  2233- 

II.  With  reference  to  the  naval  situation  in  the  eastern  Baltic  Sea 
the  Armed  Forces  High  Command,  Operations  Staff,  the  Army  General  Staff, 
and  the  Air  Force  Operations  Staff  have  been  requested  to  resume  or  con- 
tinue operations  against  the  Russian  naval  forces  in  ICronstadt  and  Lenin- 
grad by  means  of  air  raids  and  long-range  artillery  bombardment.   Light 
naval  forces,  particularly  submarines,  should  be  primary  objectives. 

Cony  of  corresponding  letter  l/Skl  la  17121/U2  Gkdos .  in  War  Diary,  Part 
C,  Vol.  III. 

III.  Upon  request,  the  Japanese  delegation  made  the  following  sugges- 
tions concerning  the  landing  maneuvers  in  Antwerp  from  9  to  11  *Tul.,  dur- 
ing which  the  various  types  of  landing  craft  used  by  the  three  branches 
of  the  Armed  Forces  were  employed: 

1.  The  three  branches  of  the  Armed  Forces  must  receive  uniform 
landing  instructions. 

2.  It  seems  somewhat  unconventional  that  the  three  branches  of 
the  Armed  Forces  build  different,  yet  similar,  type  craft  each  branch 
providing  its  own  crews. 

3.  Provisions  must  likewise  be  made  for  a  longer  period  at  sea. 
This  necessitates  the  use  of  Invasion  transports. 

h.        A  fast,  armored  scout  boat  Is  lacking,  which  will  also  take  over 
the  task  of  fire  support  during  a  landing. 

5-   The  Siebel  ferry  employed  as  an  assault  boat  carrier  appears 
not  to  be  used  advantageously  from  a  tactical  point  of  view  since  it  has 
primarily  other  tasks  to  master. 

6.  Smoke  screen  apparatus  must  be  carried  primarily  by  boats  which 
approach  the  coast  ahead  of  the  assault  boats. 

7.  Engines  must  be  of  the  same  type  as  far  as  possible  in  order 


-  225  - 


16  Jul.  19^2  CONFIDENTIAL 

to  simplify  the  replacement  problem.   Gasoline  engines  have  the  disad- 
vantage of  being  easily  inflammable. 

8.  All  boats  must  have  a  bow  and  stern  anchor.   The  stern  anchor 
must  be  dropped  as  early  as  200  meters  off  shore;   the  bow  anchor  must  be 
light  so  that  it  can  be  pulled  ashore.   There  is  need  for  a  special 
assault  boat  for  the  removal  of  under-water  obstacles. 

9.  There  is  almost  no  equipment  for  night  voyages  and  landings  by 
night,  the  only  time  suited  for  such  operations. 

10.  Men  should  be  provided  with  rubber  soles  to  avoid  slipping 
when  leaping  ashore. 

In  conclusion,  the  Japanese  Naval  Attache  pointed  out  the  special  danger 
inherent  in  having  complex  equipment  which  impedes  training  and  on  whose 
functioning  depends  the  very  success  of  difficult  night  landings. 

The  Japanese  Naval  Attache  considered  it  proper  that  the  Navy  used  noth- 
ing but  naval  barges  during  the  maneuvers,  since  they  are  the  proper 
craft  to  carry  heavy  weapons  and  supplies.   The  Navy's  duty  is  only  to 
guarantee  the  landing  party's  safe  arrival,  close  off  the  3oast  to 
protect  it  against  threats  from  the  sea,  and  to  maintain  the  flow  of 
supplies.   In.  Japan  developments  followed  the  same  course.  At  first  the 
Army  also  built  a  large  number  of  invasion  craft  which  were  useful  only 
in  inland-water  operations.  By  slow  steps  the  Army  came  around  to  see 
things  differently. 

The  viewpoint  that  the  Ar  /  must  develop  its  own  craft  and  execute  a 
landing  in  consultation  with  the  Navy  in  regard  to  problems  of  naviga- 
tion, leaving  to  the  Navy  the  safeguarding  of  supply  transports,  should 
hold  equally  true  for  the  German  situation.   The  Army  will  learn  itself 
soon  enough  to  appreciate  how  different  a  coastal  landing  is  from  cross- 
ing a  river,  and  that  conditions  under  which  a  sea  coast  invasion  takes 
place  impose  higher  requirements . 

The  Naval  Staff,  Quartermaster  Division  is  charged  with  further  evalua- 
tion of  the  "experiences  gained. 

IV.   On  14  Jul.  the  Chief,  Submarine  Division,  Naval  Staff  reported  to 
the  Commander  in  Chief,  Navy  on  increasing  the.  tempo  of  submarine . opera- 
tions.  In  view  of  the  decisive  importance  which  this  problem  has  for 
the  conduct  of  the  war,  steps  must  be  taken  to  achieve  the  following: 

a.  Speed  up  submarine  repairs  to  the  fullest  extent. 

b.  Limit  final  fitting  operations  to  21  days. 

c .  Submarine  pens  are  to  be  equipped  in  such  a  way  that  the 
construction  of  new  repair  sites  can  be  reduced  to  a  minimum. 

d.  Overcome  the  congestion  in  the  shipyards  in  which  subma- 
rines undergo  final  adjustment  and  repair  prior  to  proceeding  on  missions. 

The  Commander  in  Chief,  Navy  approved  the  proposals  of  the  Chief,  Sub- 
marine Division,  Naval  Staff  and  set  down  his  decisions  on  the  indi- 
vidual points  in  writing. 

Copy  of  the  renort  of  the  Chief,  Submarine  Division,  Naval  Staff  and  the 
decision  of  the  Commander  in  Chief,  Navy,  as  per  l/Skl  17516/42  Gkdos. 
in  War  Diary,  Part  C,  Vol.  IV. 


-  226  - 


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16  Jul.  19^2  CONFIDENTIAL' 

V.  On  1  Jul.  the  first  order  for  the  construction  of  a  motor  gunboat 
•was  issued  by  the  Commander  in  Chief,  Navy.   This  gunboat  is  to  be 
equipped  with  armament  corresponding  to  one  of  the  following  specifica- 
tions : 

1.  Two  -  3.7  cm.  twin-mount  anti-aircraft  guns  fore  and  aft. 
One  -  2  cm.  gun  atop  the  wheel-house  for  360°  fire  radius. 

2.  One  -  3.7  cm.  twin-mount  anti-aircraft  gun  fore  or  aft. 
One  -  2  cm.  quadruple -mount  anti-aircraft  gun  fore  or  aft. 
One  -  2  cm.  gun  as  under  1.  above. 

About  8-12  mm.  armor  protection  for  the  wheel-house,  engine  room,  and  1 
fuel  compartment.   Similar  to  the  PT  boats,  three  MB  "511"  motors  are  to 
be  used  as  power  plant.  A  similar  speed  will  therefore  be  attainable 
only  at  the  expense  of  cruising  range  and  provisions. 

VI.  A  compilation  of  enemy  reports  intercepted  by  radio  decoding  and 
radio  monitoring  from  6  to  12  Jul.  is  in  Radio  Intelligence  Report  No. 
28/42  of  the  Communications  Intelligence  Branch,  Communications  Division, 
Naval  Staff.  The  report  points  out  that  according  to  radio  decoding, 
enemy  movements  are  apparent  in  the  South  Atlantic  and  movements  of 
single  Russian  ships  in  the  eastern  part  of  the  Gulf  of  Finland  and  in 
Kronstadt  Bay. 


Situation  16  Jul.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

South  Atlantic; 

A  fragmentary  submarine  warning  signal  from  6°  30'  S  >  lo  00'  E 
was  intercepted  from  Simonstown.  it  may  have  some  connection  with  our 
operations . 

Indian  Ocean; 

According  to  radio  monitoring  the  battleship  QUEEN  ELIZABETH 
has  been  observed  in  the  Indian  Ocean  since  16  Jul.  According  to  a  re- 
port from  another  source  the  ship  is  said  to  be  in  tow. 

2.  Own  Situation; 

The  comments  of  Naval  Staff,  Operations  Division  on  specific 
questions  brought  up  by  the  captain  of  ship  "10"  in  his  letters  to  the 
Naval  Attache  In  Tokyo  are  being  transmitted  to  ship  "10"  via  Radiogram 
0528. 

; 

Via  Telegram  2025  the  Naval  Staff  informs  the  Naval  Attache  in  Tokyo  of  I 
its  intention  to  hav«  the  UCKERMARK  meet  ship  "10"  If  It  is  still    w 
expedient  to  do  so.  Otherwise  arrangements  will  be  made  to  deliver  the 
provisions  in  Japan.   The  same  telegram  also  deals  with  the  supplies  re- 
quested by  Etappe  Japan. 

Via  Teleiram  0317  the  Naval  Staff  proposes  to  the  Nav^l  Attache  in  Tokyc 
to  returijt  one  of  the  prize  crews  of  ship  "10"  to  that  vessel  via  a 


■St  - 


16  Jul.  1942  CONFIDENT : 


blockade-runner  if  time  permits,  but  to  retain  the  other  prize  crews  un- 
til the  auxiliary  cruiser  reaches  Japan. 

Information  to  all  vessels  in  foreign  waters  concerning  the  strained 
relations  between  Rumania  and  Hungary  and  the  unsatisfactory  political 
and  economic  situation  of  Croatia  via  Radiogram  1511. 

Information  concerning  enemy  situation  via  Radiogram  2104. 


II.   Situation  West  Area 

Atlantic  Coast; 

The  6th  Mine  Sweeper  Flotilla  cut  4  mines  east  of  point  "Hera 
450".   Time  setting  25  days.   Route  "Herz"  was  completely  closed  to 
shipping  from  point  448  to  452. 

(Ncte:   Route  "Herz"  is  the  new  designation  which  has  been  adopted  by 
Group  West  as  of  1  Jul.  1942  for  the  Belgian  and  French  coast.  Direc- 
tive of  Naval  Group  West  2501/42  A  3  Gkdos.) 

Channel  Coast; 

Mine  operation  "Putra"  was  carried  out  according  to  plan.   Mine 
laying  by  10  FT  boats  at  the  Channel  exit  near  The  Needles  has  also  been 
carried  out  according  to  plan.  For  brief  report  see  Telegram  07401. 

The  3rd  Torpedo  Boat  Flotilla  arrived  in  Le  Havre  during  the  early 
morning  hours . 


III.  North  Sea,  Norway,  Arctic  Ocean 
1.    North  Sea; 


Enemy  Situation; 


According  to  radio  monitoring  two  unidentified  ships  left 
Scapa  Flow  at  2230  with  a  submarine  chaser  escort.   Lively  air  reconnais- 
sance was  observed  in  the  North  Sea  area.  Air  reconnaissance  observed 
only  a  moderate  amount  of  convoy  traffic  on  the  southeast  and  east  coast. 

Own  Situation; 

Mine  operation  "Kobold"  was  carried  out  according  to  plan. 

A  mine-exploding  vessel  swept  a  total  of  8  mines  off  Heligoland,  Borkum, 
Terschelling  and  Scheveningen.  Mine-sweeping  operations  at  mine  field 
"2".   In  the  afternoon  enemy  planes  raided  the  blast  furnace  at  Ijmulden 
and  the  Wilhelmshaven  shipyards.  Both  raids  were  staged  at  low  level. 
Slight  loss  of  personnel  and  minor  damage.   On  the  night  of  15  Jul.  an 
enemy  plane  strafed  our  battery  positions  at  Walcheren  without  inflict- 
ing any  damage..  On  the  night  of  16  Jul.  low-level  air  raids  and  enemy 
flights  over  the  Esbjerg  area  caused  slight  personnel  loss  In  the  Navy 
anti-aircraft  post.   Navy  anti-aircraft  guns  shot  down  2  enemy  planes. 


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16   Jul.  1942  CONFIDENTIAL 

Special  Items: 

On  12  Jul.  Group  North  advised  the  Naval  Staff  of  the  order 
concerning  further  mine  operations  to  the  Commanding  Admiral,  Defenses, 
North,  and  the  North  Sea  Naval-  Station.   The  order  stipulates  that  after 
mine  fields  SV  "6"  to  "11"  have  been  laid,  about  60  cutting  floats 
are  to  he  laid  in  each  of  mine  fields  SW  "101"  to  "107"  in  order  to  protect 
the  SW  mine  fields_against  attempts  to  sweep  them.   In  daylight  operations 
the  forces_  of  the  Commanding  Admiral,  Defenses,  North  are  to  lay  an  ad- 
ditional 100  standard  mines  type  A  on  the  5  or  4  m.  line  off  each  of 
the  following:  Bergen  op  Zoom,  Kastricum,  Katwi jk-aan-zee  and'Ter  Heiden. 

All  mine  operations  are  very  urgent.  Following  is  their  order  of 
priority: 

a.  "Kaspar",  "Kobold",  "Satan" 

h.  SW  "104",  "105",  "106",  "107" 

c.  SW  "101",  "102",  "103" 

d.  Mine  fields  of  standard  mines  type  A. 

The  sweeping  of  routes  "Blau"  and  "Qruen"  is  to  be  postponed  for  the 
time  being. 

2.   Norway : 

Enemy  Situation: 

At  1600  a  southbound  submarine  was  sighted  southwest  of  Utsire. 

Own  Situation: 

The  FRIEDRICH  IHN  and  the  destroyer  Z  "24"  proceeding  In 
easterly  direction  passed  Kristiansand  South  at  0500. 

A  Russian  plane  flew  over  Havoey  Sound  on  15  Jul.  At  1400  enemy  planes 
were  observed  dropping  7. objects  along  the  convoy  route  in  the  vicinity 
of  North  Cape.  Since  it  was  suspected  that  these  objects  were  aerial 
mines  the  route  was  closed  to  shipping.  Enemy  reconnaissance  activity 
over  Trondheim  and  the  west  coast.  Mine-sweeping  and  escort  service  ac- 
cording to  plan  without  incidents. 

For  a  report  from  the  Trondheim  shipyard  concerning  damage  on  the  de- 
stroyer RIEDEL  see  Telegram  1245.  The  RIEDEL  Is  expected  to  be  towed 
to  a  shipyard  in  Germany  on  20  Jul.  along  with  the  L0DY. 

Group  North  issued  the  following  directive:  The  4th  Mine  Sweeper  Flo- 
tilla will  be  discharged  as  a  unit  at  the  beginning  of  September  and 
will  proceed  to  a  shipyard  in  Germany.  6  vessels  of  the  22nd  Mine 

Sweeper  Flotilla  are  scheduled  as  replacements;   the  other  vessels  will 

follow  at  a  later  date. 

The  5th  Mine  Sweeper  Flotilla  will  proceed  to  the  shipyard  after  repairs. 
on  the  4th  Mine  Sweeper  Flotilla  have  been  completed.  If  vessels  are  iw 
need  of  repair  at  an  earlier  date  they  are  to  be  giveri  a  brief  overhaul, 
one  or  two  at  a  time. 

The  15th  Mine  Sweeper  Flotilla  will  also  be  transferrejd  to  Norway  by 
the  end  6t   July.   (See  Telegram  1709.) 


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16  Jul.  1942  CONFIDENTIAL 

Thus  the  Commanding  Admiral,  Norway  will  receive  three 
additional  mine  sweeper  flotillas  (two  modern  flotillas 
and  one  flotilla  composed  of  large  steam  trawlers).   The 
arrangement  corresponds  to  the  situation  in  the  individ- 
ual command  areas  of  Group  North. 

3.   Arctic  Ocean; 

Enemy  Situation; 

A  new  British  radio  station  in  the  Arctic  Ocean  area  broadcast 
only  urgent  messages. 

According  to  the  listening  service  of  the  Air  Force  convoy  X9  comprising 
9  transports  and  3  corvettes  left  Reykjavik  en  route  to  Archangel  at 
2130  on  15  Jul. 

The  radio  intelligence  service  of  the  High  Command,  Havy 
doubts  the  accuracy  of  this  information.   It  remains  to 
be  seen  whether  the  observation  of  the  permanent  listen- 
ing post  at  Husum  is  correct  this  time. 

Own  Situation; 

Group  North's  measures  concerning  convoys  PQ  18  and  QP  14  have 
gone  into  effect.  Details  follow. 


IV.  Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1 .  Enemy  Situation; 
Nothing  to  report. 

2.  Own  Situation; 

Convoy  and  escort  service  in  the  Skagerrak,  the  Baltic  Sea 
entrances,  and  the  western  Baltic  Sea  according  to  plan  and  without  in- 
cidents.  Southwest  of  Langeland  a  Danish  fishing  trawler  sank  after 
striking  a  mine. 

In  the  eastern  Baltic  Sea  an  enemy  submarine  attacked  the  steamer  GUDRUN 

3  miles  south  of  Stein  Ort.  Another  attack  took  place  two  hours  later 

4  miles  north  of  Libau.   The  same  enemy  submarine  appears  to  have  carried 
out  both  attacks. 

Mine  fields  "Sauna  1"  and  "Lachs  1,  2,  3"  and  "6"  were  laid  according  to 
plan  in  the  Gulf  of  Finland.   The  27th  Landing  Flotilla  is  en  route  to 
Reval  where  it  is  to  reinforce  the  "Nashorn"  mine  field. 

Troop  and  prisoner  transports  from  Danzig  to  Finland  are  proceeding  ac- 
cording to  plan. 

Special  Items ; 

By  arrangement  with  the  Commanding  General,  Air  Force  Group 
Command,  Central  Area,  the  Navy  plans  to  withdraw  the  anti-aircraft 
forces  from  Flensburg  by  1  Sep.  The  Air  Force  Group  Command  is  strength- 
ening the  anti-aircraft  defense  of  Flensburg  by  the  immediate  installa- 
tion of  an  anti-aircraft  battery  and  will,  in  due  time,  furnish  at  least 


-  230  - 


16  Jul.  1942  CONFIDENTIAL 

one  heavy  and  one  light  anti-aircraft  artillery  battalion  by  way  of  re- 
placement for  the  anti-aircraft  forces  which  are  to  be  withdrawn.  (See 
Telegram  2030. ) 


V.   Submarine  Warfare 

1.  Enemy  Situation: 

Lively  reconnaissance  activity  was  observed  in  the  northern 
rendezvous  area,  probably  in  connection  with  the  inbound  HX  convoy. 
Plane  reports  on  submarine  sightings  were  intercepted  from  100  miles 
northwest  of  Cape  Ortegal  and  55  miles  west  of  Cadiz. 

Reports  of  a  submarine  attack  with  subsequent  orders  for  air  assistance 
were  intercepted  some  300  miles  south  of  the  Bermudas.   Otherwise  the 
usual  submarine  sighting  reports  were  intercepted  from  the  American  coast 
and  the  West  Indies. 

2.  Own  Situation: 

An  armed  large  tanker  of  at  least  15,000  GRT,  the  entire  cargo 
of  which  blew  up,  was  destroyed  at  the  western  exit  of  the  Florida 
Strait.   The  2,325  GRT  steamer  with  a  cargo  of  coffee  (name  omitted  in 
the  original  text  -  Tr.N*. )  was  sunk  in  the  Caribbean  Sea  and  another 
10,000  GRT  tanker  was  sunk  near  Trinidad.   Submarines  U  "571",  "160", 
and  "129"  participated  in  the  action. 

Further  reports  in  supplementary  submarine  situation  report  in  War  Diary, 
Part  B,  Vol.  IV. 

Special  Items: 

The  Commander  in  Chief,  Navy  has  ordered  that  soldiers  who 
underwent  training  in  Course  II  and  who  also  have  submarine  training  are 
to  go  on  temporary  duty  in  the  shipyards  on  a  trial  basis  in  order  to 
expedite  finishing  operations  on  submarines  which  are  being  completed  in 
Germany.   The  Commanding  Admiral,  Submarines  issued  a  corresponding  di- 
rective to  the  Second  Admiral,  Submarines  (see  Telegram  I650). 

Tests  on  the  new  search  gear  which  is  capable  of  giving  the  diving  depth 
of  a  submarine,  es  well  as  measuring  tests  in  order  to  carry  out  search 
gear  defense  tests  in  deep  water  call  for  a  submarine  to  be  used  as  a 
target.   In  view  of  the  urgency  of  these  tests  for  combat  purposes 
and  in  view  of  the  fact  that  the  detention  of  a  new  submarine  which  is 
just  leaving  home  waters  for  the  operations  zone  would  appreciably  re- 
duce her  operating  period  in  the  Atlantic,  it  is  expedient  that  the  test 
submarine  be  furnished  by  Group  North.  For  corresponding  directive  from 
the  Naval  Staff  to  Group  North,  with  copy  to  the  Communications  Experi- 
mental Command  and  the  Commanding  Admiral,  Submarines,  see  Telegram  1601. 


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16  Jul.  1942  CONFIDENTIAL 

VI.  Aerial  Warfare 

1»   British  Isles  and  Vicinity; 

No  particular  reports  during  the  day. 

On  the  night  of  16  Jul.  enemy  air  raids  on  Germany  with  Luebeck  as  center 
of  attack..*  Other  raids  on  Schleswig  and  Fiensburg.   For  reports  on  dam- 
age see  daily  situation  report. 

2.  Mediterranean  Theater; 

No' raids  on  Malta.   No  noteworthy  information  obtained  from 
reconnaissance  missions  in  the  eastern  Mediterranean. 

3.  Eastern  Front; 

Missions  in  support  of  Army  operations.   Thirty  planes  were  re- 
ported shot  down.   In  the  north,  a  raid  on  the  Murmansk  railroad  cut  the 
rails  with  4  hits.   On  15  Jul.  air  reconnaissance  spotted  29  steamers  and 
a  tanker  in  Archangel. 

4.  Special  Items; 

For  directive  of  the  Air  Force  Operations  Staff  concerning 
anti-aircraft  machine  gun  posts  see  Telegram  222(5. 

• 

For  directive  of  the  Commanding  General,  Air  Force  Group  Command,  Cen- 
tral Area,  concerning  anti-aircraft  defenses  for  Fiensburg, see  Telegram 
2050. 


VII.  Warfare  in  the  Mediterranean  and  the"  Black  Sea 

1.  Enemy  Situation; 

Mediterranean; 

According  to  an  intelligence  report  from  Spain  the  Italians 
carried  out  an  unsuccessful  special  mission  in  the  Bay  of  Gibraltar  in 
the  morning  of  14  Jul.  Four  officers  and  ;5  men  were  picked  up  at  La 
Linea. 

The  EAGLE  task  force  returned  to  Gibraltar  in  the  forenoon  of  16  Jul. 
The  DIDO-class  cruiser  which  arrived  from  the  west  on  15  Jul-  again  de- 
parted In  westerly  direction  on  16  Jul.  According  to  an  intelligence 
report  from  Spain  a  convoy  is  due  to  leave  Gibraltar  in  the  near  future. 

The  British  cruiser  from  Gibraltar  which  was  proceeding  In  easterly' di- 
rection through  the  Strait  of  Sicily  arrived  in  Valletta  at  19^0.  No 
damages  could  be  observed. 

Air  reconnaissance  detected  a  normal  amount  of  convoy  traffic  in  the 
eastern  Mediterranean.  For  details  see  daily  situation  report. 

2.  Own  Situation; 
Mediterranean ; 

Enemy  planes  raided  Benghazi  during  the  night  of  14  Jul.  and 


-  232 


16  Jul.  19^2  CONFIDENTIAL 

in  the  afternoon  of  15  Jul.   Two  planes  were  shot  down.   Eighteen  Italian 
submarines  were  at  sea  in  the  Mediterranean. 

3.  Transport  of  Supplies  to  North  Africa: 

The  steamer  SATURNO  is  en  route  to  Tripoli.   The  2  Italian  de- 
stroyers which  carried  troops  to  North  Africa  returned  to  Taranto  in  the 
evening  of  15  Jul.  During  the  same  evening  the  motor  ship  ANKARA  left 
for  Brindisi  and  2  CITTA-class  steamers  of  the  Siena  group  left  for  Suda. 
The  steamers  GUALDI  and  MENES  were  expected  in  Tobruk  on  16  Jul.   Only 
the  MENES  has  thus  far  reported  her  arrival . 

980  tons  of  supplies  were  unloaded  at  Tobruk  on  Ik   Jul;   on  15  Jul.  9^2 
tons . 

Special  Items: 

The  Chief  of  Staff,  Naval  Staff  transmits  the  following  tele- 
gram to  the  Admiral,  German  Naval  Command,  Italy: 

"I  am  under  the  impression  that  present  unavoidable  difficulties  in  the 
Mediterranean  and  in  North  Africa  indicate  that  the  joint  command  in  the 
Mediterranean  theater  of  war  is  not  fully  effective  at  this  decisive 
hour.   I  believed  that  the  Commanding  General,  Armed  Forces,  South  is 
responsible  for  all  operations  in  this  theater.   However,  I  have  been 
informed,  that  the  latter  regards  the  task  conferred  on  him  to  be  a 
limited  one  and  that  he  does  not  feel  himself  responsible  for  the  over- 
all conduct  of  the  war  in  the  Mediterranean-North  African  theater.   I 
believe  that  this  state  of  affairs,  which  is  frought  with  danger,  can  be 
remedied  only  if  the  pertinent  German  and  Italian  authorities  cooperate 
on  the  basis  of  joint  strategy  in  strengthening  the  front  and  preparing 
the  ground  for  further  operations  on  the  North  African  front.   To  this 
end  it  would  in  my  opinion  be  necessary  to  transfer  the  decisive  opera- 
tional commands  back  to  Rome,  at  least  temporarily. 

I  urgently  request  your  views  concerning  this  matter  as  well  as  a  report 
on  your  personal  plans."  (See  Telegram  1501 . ) 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Nothing  to  report  on  the  naval  situation.   For  the  stand  taken 
by  the  German  Naval  Command,  Italy  in  reply  to  an  inquiry  from  Naval 
Group  South  concerning  a  basic  regulation  for  routing  supplies  to  North 
Africa  via  the  eastern  route  (see  War  Diary  15  Jul.)  see  Telegram  2040. 

In  the  opinion  of  the  Naval  Staff  supplies  are  being 
routed  in  keeping  with  the  present  situation.   The  diffi- 
culty is  to  some  extent  due  to  the  fact  that  the  employ- 
ment of  the  steamers  in  Africa  is  exclusively  in  the 
hands  of  the  Italian  High  Command  or  the  Italian  High 
Command,  Africa  and  that  the  Italian  Admiralty  has  no  say 
in  the  matter.  Moreover,  since  the  pertinent  Italian 
and  German  authorities  have  been  in  Africa  for  weeks,  it 
is  not  quite  certain  who  has  the  right  to  command  what. 
(See  also  telegram  from  the  Chief  of  Staff,  Naval  Staff 
to  the  Admiral,  German  Naval  Command,  Italy). 


-  233  - 


16  Jul.  19^2  CONFIDENTIAL 

Black  Sea; 

Enemy  Situation; 

Minor  movements  of  naval  forces.  More  lively  Russian  traffic 
was  observed  only  on  the  Taman  coast.   One  battleship,.  1  heavy  cruiser, 
2  light  cruisers,  4  destroyers,  1  torpedo  boat,  and  16  submarines  were 
sighted  in  Poti. 


■o* 


Own  Situation; 

On  15  Jul.  a  German  plane  attacked  a  Russian  submarine  some  135 
miles  southwest  of  Sevastopol.   No  damage  was  caused  during  enemy  raids 
on  Yalta  and  Feodosiya.   The  shelters  of  the  harbor  defense  flotilla  suf- 
fered damage  as  a  result  of  large-scale  fires  set  by  incendiaries  in 
Sevastopol.   The  south  side  of  the  northern  mole  of  Feodosiya  was  cleared 
of  mines.  Twenty  motor  boats  arrived  in  Mariupol.  Escort  service  was 
resumed  in  the  evening  of  15  Jul. 

Four  of  jthe  10  naval  barges  assigned  to  the  Black  Sea  are  in  Linz,  3  are 
en  route  to  Linz,  and  the  others  are  still  in  Dresden. 

Special  Items: 

According  to  the  directive  of  the  Armed  Forces  High  Command, 
Operations  Staff,  arrangements  are'  to  be  made  so  that  the  4  especially 
equipped  naval  barges  for  operation  "Bluecher",  which  have  been  desig- 
nated by  the  Army  General  Staff  as  urgently  necessary  for  the  shipment 
of  very  heavy  tanks,  can  be  transferred  on  10  days  notice.  They  will 
presumably  not  be  called  for  prior  to  25  Jul. 

The  Naval  Staff  Quartermaster  Division,  Shipping  and  Transport  Branch 
receives  a  corresponding  directive.   Naval  Group  South  and  the  Admiral, 
Black  Sea  are  being  informed  concerning  same.   Copy  of  corresponding 
directive  l/Skl  I  op  17250/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  XlVa. 


r 


VIII.  Situation  East  Asia 

According  to  a  report  from  the  Naval  Attache  in  Tokyo,  the  Japanese  Ad- 
miralty Staff  reports  that  Japanese  submarines  sank  4  ships  totalling  j  l 
30,000  GRT  during  the  month  of  May.   These  ships  were  not  identified  by 
name.   According  to  Information  furnished  by  the  Japanese  Navy  the 
latter  sank  229  ships  totalling  1,355,500  GRT  since  the  outbreak  of  war. 
According  to  Domei,  Japanese  forces  occupied  the  town  of  Yuian  on  the  east 
coast  of  Chekiang  province  on  13  Jul.  Large-scale  operations  of  the 
Japanese  Fleet  are  said  to  have  taken  place  off  Wenchow.  , 


-  234  -  A-15606 


$) 


#) 


16  Jul.  19^2  CONFIDENTIAL 

IX.  Army  Situation 

1 .  Russian  Front: 

Army  Group  A; 

Enemy  forces  In  front  of  our  left  wing  withdrew  in  easterly 
direction.   The  enemy  offered  strong  resistance  to  our  attack  against 
Kamensk  and  destroyed  the  bridge  completely.   Our  troops  succeeded  in 
crossing  the  Don  southeast  of  Kamensk.   Our  forces  took  Miller ovo.   The 
enemy  retreated  to  the  south.   Our  forces  also  reached  Milyutinskaya  and 
established  a  bridgehead  south  of  Morozovskyi. 

Army  Group  B: 

6th  Army  forces  are  gaining  ground  in  an  easterly  direction 
according  to  plan.   In  the  area  of  the  Von  Veichs  Army  Group,  attacks 
continued  at  the  northern  Voronezh  front  and  north  of  Zemlyansk.   These 
attacks  are  expected  to  continue. 

Central  Army  'Group: 

No  noteworthy  occurrences  at  the  eastern  front  of  the  Army 
Group.   In  the  rear  area  partisans  annihilated  one  of  our  engineer  com- 
panies southwest  of  Kirov.  Enemy  attempts  to  break  out  of  the  encircle- 
ment In  the  area  of  Byeloi  were  frustrated.   On  the  night  of  14  Jul.  the 
enemy  again  carried  out  successful  raids  on  railroad  trains  and  rail 
lines . 

Northern  Army  Group: 

Mostly  quiet. 

2.  Finnish  and  Norwegian  Front: 

No  noteworthy  fighting  took  place  at  the  southeastern  front 
or  20th  Mountain  Army  Command  sector. 

3.  North  Africa: 

No  report  received. 


•a-************************ 


-  235  - 


CONFIDENTIAL 

17  Jul.    19^2 

Items  of  Political  Importance 

France; 

Laval  issued  a  detailed  statement  concerning  the  situation  of  the  French 
naval  forces  in  Alexandria  in  which  ha  also  disclosed  the  notes  exchanged 
with  the  Axis  powers  and  the  U.S.  relating  to  the  question  of  their  con- 
duct in  the  event  of  the  fall  of  Alexandria. 

Great  Britain: 

The  House  of  Commons  continued  to  debate  heatedly  the  question  why  dis- 
cussions on  shipping  should  he  held  in  closed  session.   Cripps  had  to 
take  back  his  promise  to  make  public  a  summary  of  the  debate  upon  its 
conclusion.   The  House  of  Lords  too  discussed  the  shipping  problem  in 
secret  session. 

The  -shipping  space  problem  is  finally  being  given  the  at- 
tention which  it  deserves  because  of  its  decisive  impor- 
tance to  the  outcome  of  the  war.   Time  will  tell  whether 
keeping  the  true  situation  a  secret  helps  solve  the  prob- 
lem.  It  seems  very  questionable  in  view  of  the  British 
mentality. 

In  a  speech  the  Parliament  Secretary  for  Economic  Warfare  cited  the  fact 
that  the  food  situation  in  Axis-controlled  Europe  is  growing  worse  and 
worse  as  proof  of  the  continued  effectiveness  of  the  blockade.   It  will 
be  remarkable,  continued  the  speaker,  if  the  present  German  rat ions, al- 
ready very  much  reduced>can  be  maintained.   The  feeling  that  further 
military  setbacks  in  Russia  could  have  a  most  serious  influence  on  the 
future  course  of  the  war  appears  to  be  spreading  in  London  as  well  as  in 
Moscow.   During  a  press  conference  in  Moscow  it  was  stated  that  Russia 
can  afford  no  further  loss  of  territory.  The  fate  of  Great  Britain  and 
the  U.S.  is  now  being  decided  at  the'  Don,  and  it  is  high  time  to  throw 
all  available  Allied  troops  into  the  battle  in  order  to  save  what  can 
still  be  saved. 

Significant  in  this  connection  are  the  rumors  that  Lord  Beaverbrook, 
who  is  considered  one  of  the  most  zealous  champions  of  a  second  front  in 
Europe,  will  again  enter  the  War  Cabinet  as  Defense  Minister. 

Churchill  has  asked  Roosevelt  to  reduce  the  number  of  American  gift 
parcels  sent  to  Great  Britain  in  order  to  save  shipping  space. 

Finland: 

Upon  request  by  the  U.S.,  consular  agencies  of  both  countries  were  closed 
in  the  U.S.  and  Finland. 

The  removal  of  American  agents  from  Finland  can  only  be 
of  advantage  to  Germany. 

U.S.A.: 

See  Political  Review  No.  165,  Paragraph  5  b,  for  a  report  by  a  Swedish 
Journalist  on  morale  in  the  U.S.  where  war  propaganda  under  the  slogan 
America  is  the  hope  of  the  world"  is  said  to  be  quite  effective. 


-  236  - 


17  Jul.  19^2  CONFIDENTIAL 

Chile: 

According  to  a  diplomatic  report,  the  situation  in  Chile  is  more  unfavor- 
able than  in  Argentina, since  Chile  does  not  have  a  strong  personality 
such  as  Castillo  and  thus  is  even  less  able  to  resist  U.S.  pressure  than 
Argentina. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  Report  of  the  Chief,  Naval  Staff  Communications  Division: 

1.  The  Air  Force  General  Staff  has  ordered  large-scale  radio  jam- 
ming in  the  area  of  the  Jvd   Air  Force,  to  be  concentrated  on  the  Bale 

de  la  Seine  and  the  Channel  areas. 

2.  The  instruments  which  are  to  be  shipped  on  the  Japanese  subma- 
rine  I  "30"  are  ready.   2  Japanese  officers  have  received  three  weeks 
of  training  in  the  radar  school  at  Ee  Iieen. 

II.  In  connection  with  the  problem  of  submarine  ^en  construction  in 
Enden  as  ordered  by  the  Fuehrer  it  is  pointed  out  that  relatively  few 
submarines  are  being  built  in  Linden  and  h7ilhelmshaven,so  that  the  nee^  for 
shelters  of  this  nature  is  really  less  urgent  there  than  in  Hamburg  and 
Kiel.   Increased  enemy  air  raids  on  all  submarine  yards  are  to  he  ex- 
pected.  It  is,  however,  extremely  difficult  to  build  as  many  installa- 
tions as  are  really  necessary.   Should  Minister  Speer  launch  a  large- 
scale  construction  project ,it  might  easily  happen  that  the  Navy  finds 
itself  stripped  of  the  steel  and  labor  necessary  for  carrying  it  out. 

The  Commander  in  Chief,  Navy  orders  a  study  of  the  whole  problem  in  all 
Its  aspects. 

III.  Report  by  the  Chief,  Naval  Ordnance  Division:   Silhouette  targets 
of  a  KING  GEORGE  V-class  vessel  and  a  NORTH  CAROLINA-class  vessel  ere 
being  built  for  air  raid  training.   Neither  materiel  or  labor  r.lloted 
to  the  Navy  are  being  used.   The  targets  will  be  set  up  in  Peenemuende. 

IV.  The  Chief,  Underwater  Obstacles  Pranch  reports  that, on  the  basis 
of  further  observations  on  the  "Coeln"  mine  field, standard  mines  type 
F  may  now  be  used  In  waters  up  to  500  n.  deer)   as  requested  by  the  Mine 
Laying  Experimental  Command  and  the  Mine  and  Barrage  Inspection  Command. 

Rack  mines  type  A  may  not  be  used  until  they  have  been  tested  in  further 
experimental  mine  fields  laid  by  submarine  U  "118",  and  until  the  re- 
suits  of  a  long  distance  voyage  by  a  mine-laying  submarine  with  a.  full 
mine  load  are  known: 

Aerial  mines  type  F  which  are  to  be  laid  by  airplanes  and  PT  boats  are 
still  being  tested. 

V*   The  Chief,  Naval  Construction  Division  reports  on  the  damage  to  the 
turbines  of  the  5CHARNH0RST ,  the  need  for  docking  the  LUETgOE",  and  the 
6  to  S  weeks  delay  in  the  completion  of  the  war  transjorts  which  have 
been  built  in  Italy.   T  his  is  not  cue  to  a  lack  oi  German  supplies. 
The  suggestion  that  the  Commander  in  Chief,  Navy  write  a  letter  to  Ad- 
miral Riccardi  is  approved  by  the  Commander  in  Chief,  Navy. 

The  date  of  the  transfer  of  the  LUETZON  will  he  determined  by  the  oper- 
ational situation.   Following  the  suggestion  of  the  Naval  Staff,  repairs 


-  237  - 


:  i   Jul.  19^2  cc .  . 

on  the  LOD7.  ere  to  be  carried  out  without  delay. 
In  a  Very  Restricted  Circle: 

VI.  The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division,  re- 
ports on  the  directive  of  the  Armed  Forces  High  Command,  Operations 
Staff,  concerning  the  transfer  of  4  naval  barges  from  the  shipyard  in 
Palermo  to  the  Black  Sea.   These  barges  have  been  equipped  for  carrying 
ver7f  heavy  tanks  and  are  to  be  used  in  operation  "Bluecher".   See  cor- 
responding npte  in  War  Diary  of  16  Jul. 

VII.  Report  of  the  Chief,  Naval  Staff  Quartermaster  Division  to  the 
Chief  of  Staff,  Naval  Staff  from  Fuehrer  Headquarters  on  16  Jul.: 

1.  The  offensive  in  the  Bast  is  progressing  even  better  than  ex- 
pected. It  is  now  four  weeks  ahead  of  schedule.  Its  rate  of  progress 
depends  only  on  the  supply  lines.  If  it  should  prove  possible  to  cross 
the  Don'  in  a  southerly  direction,  operation  "Bluecher"  will  probably 
not  be  necessary.  In  this  case,  too,  supply  by  sea  remains  of  decisive 
importance  as  the  railroads  south  of  the  Don  are  inadequate.  The  rspid 
advance  made  it  necessary  to  use  up  fuel  which  had  been  earmarked  for 

the  second  half  of  August.   This  will  be  made  up  by  reducing  home  allot-  i_ 

ments  by  25/&. 

2.  The  plans  of  the  Fuehrer  are  as  follows:  Mop  up  enemy  forces 
in  Leningrad  with  artillery  and  4  to  6  divisions  of  the  11th  Army  Group 
around  the  middle  of  August.   Leningrad  is  to  be  razed-.   Kronstadt  will 
fall  by  itself  for  lack  of  supplies.   The  new  front  i3  to  lead  along 
the  southern  shore  of  Lake  Ladoga.  * 

j.        Finnish  forces  becoming  available  are  to  reinforce  Dietl  to 
an  extent  which  will  permit  an  attack  on  Kandalaksha  in  order  to  para- 
lyze the  very  lively  traffic  on  the  Murmansk  railroad.   The  Fuehrer  ap- 
parently wants  submarines,  and  light  naval  forces  to  remain  in  the  Arctic 
Ocean  area.   He  said:   "I  have  experienced  difficulties  in  the  past 
year  in  getting  the  Navy  to  commit  forces  there". 

4.   Extensive  shifts  In  forces  ?re  planned  for  the  West  Area. 
Divisions  from  the  Replacement  Army  (2  for  the  Netherlands,  1  for  Bel- 
gium, 1  for  the  Schelde  estuary  and  Walcheren),the  SS  Panzer  Grenadier 
Division  "Leibstandarte-SS  Adolf  Hitler"  and  the  SS  Panzer  Grenadier 
Division  "Das  Reich"  are  en  route  to  the  west  area.   The  former  is  to 
march  through  Paris  in  order  to  impress  the  population.   Submarine  bases  t 

are  by  all  means  the  principal  objects  to  be  protected.   The  Commanding 
General,  Armed  Forces,  West  has  received  the  necessary  orders . 

VIII.  Further  report  from  the  Armed  Forces  High  Command,  Operations 
Staff,  Navy  to  the  Chief,  Operations  Branch,  Naval  Staff  Operations 
Division: 

1.  General  von  Welch  has  replaced  Field  Marshal  von  Bock  as  Com- 
manding General,  Army  Group  B.  Reason:   acting  against  the "Fuehrer ' s 
Intentions  with  regard  to  Voronezh. 

2.  General  Jodl  has  returned  from  Finland.   The  operation  against 
the  Rybachi  Peninsula  will  probably  be  dropped  since  the  advance  on 
Kandalaksha  makes  it  unnecessary. 

Above  letters  in  War  Diary,  Part  C,  "Fundamental  Problems  of  Warfare". 


-  2J8  - 


17  Jul.  19^2  confidential 

To  VII  and  VIII  above: 

In  connection. with  the  razing  of  Leningrad  the  Chief  of 
Staff,  Naval  Staff  points  to  the  importance  of  its  slip- 
ways and  workers  for  Germany,  at  least  for  the  duration 
of  the  war,  in  view  of  the  steadily  increasing  air  threat 
from  the  West.   The  Chief.,  Naval  Staff  has  ordered  the 
Chief,  Quartermaster  Division,  Naval  Staff  to  present  this 
idea  to  the  Fuehrer  at  an  early  opportunity. 

As  for  the  problem  whether  the  fact  that  Kandalaksha  is 
in  our  hands  is  sufficient  for  cutting  Russia's  supply 
line  via  the  Arctic  Ocean  ports,  the  Chief,  Operations 
Division,  Naval  Staff  calls  attention  to  the  'opinion  of 
Captain  von  Baumbach,  according  to  which  Archangel  is 
known  to  be  free  of  ice  most  of  the  winter. 

IX.   Continuation  of  the  report  of  the  Chief,  Operations  Branch,  Naval 
Staff  Operations  Division:   On  the  basis  of  data  supplied  by  the  Air 
Force  listening  service,  the  5th  Air  Force  assumes  that  a  .convoy  of  8 
vessels  left  Reykjavik  on  15  Jul.  at  2130  with  destination  Archangel. 
(See  War  Diary  of  16  Jul.)   Group  North  considers  this  assumption  credible 
because  it  is  of  the  opinion  that  the  enemy  will  attempt  to  resume  his 
supply  shipments  to  Russia  as  quickly  as  possible  by  means  of  small  con- 
voys.  The  Group  believes  it  entirely  possible  that  the  enemy  is  able 
to  establish  a  shuttle  escort  system  of  heavy  vessels  and  expects  that 
many  small  convoys  will  be  protected  only  by  weak  close  escort  forces 
Of  cruisers,  destroyers  or  escort  vessels. 

The  Group  therefore  directs  the  Admiral,  Arctic  Ocean  to  start  operations 
against  the  reported  convoy  (PQ  18)  at  once  with  all  available  subma- 
rines.  The  Group  also  requests  the  5th  Air  Force  to  reconnoiter  not 
only. the  Denmark  Strait  in  order  to  locate  the  convoy,  but  also  the  as- 
sembly area  of  the  heavy  escort  forces  west  of  the  Orkney  Islands,  east 
of  the  Faeroe  Islands,  and  east  of  Iceland  and  the  Denmark  Strait.   It 
further  requests  the  5th  Air  Force  to  determine  whether  a  QP  convoy  is 
leaving  Murmansk  or  Archangel.  Reconnaissance  of  Scapa  Flow  is  also  re- 
quested. 

At  the  same  time  the  Group  requests  the  Naval  Staff  to  approve  that  the 
Narvik  task  force,  reinforced  by  the  ECKOLDT  and  the  KOELN,  operate 
against  a  possible  QP  convoy  and,  if  there  is  none,  that  the  task  force 
proceed  against  PQ  i8_.  >  The  Lofoten  Islands  area  is  intended  to  be  the 
initial  point  In  any  case,  since  enemy  submarine  patrols  may  be  expected 
once  the  task  force  has  left  the  North  Cape  region. 

The  Admiral,  Arctic  Ocean  receives  further  instructions  to  make  the  nec- 
essary preparations  so  that,  once  approval  has  been  granted  by  the  Naval 
Staff,  refuelling  of  the  KOELN  and  the  destroyers  can  take  place  on 
short  notice  In  the  Gimsoe  area  and,  on  the  return  voyage,  in  the  North 
Cape  area. 

The  code  word  for  the  new  operation  against  the  convoy  is  "Eispalast". 

On  the  basis  of  its  data,  the  radio  Intelligence  service  of  the  Naval 
Staff  Communications  Division  cannot  confirm  the  fact  that  convoy  X  8 
has  left  port  as  reported  by  the  Air  Force  listening  service.   Until 
now,  British  Army  radio  messages  picked  up  by  the  Air  Force  listening 
service  have  never  coincided  with  actually  determined  ship  movements 
from  Reykjavik.   Group  North  has  transmitted  this  estimate  to  the  re- 
cipients of  the  above  directive,  and  has  appropriately  characterized  the 
situation  as  still  undetermined.   The  Group  orders  continuation  of  all 
measures  already  begun. 

-  239  - 


17  Jul.  1942  CONFIDENTIAL 


Once  the  situation  has  heen  determined  and  the  Naval  Staff's  approval 
is  received, the  Fleet  Commander  intends  to  board  the  TIRPITZ  with  his 
operations  .staff  on  or  about  18  Jul.  for  operation  "Eispalast".  He 
suggests  that  the  KOELN  not  be  used  in  this  operation  in  view  of  her 
equipment  and  training  status,  leaving  the  cruiser  in  Trondheim  for  the 
time  being.  But  he  requests  that  the  ECKOLDT  be  transferred  north  as 
soon  as  possible.  "For  operation  "Eispalast"  the  Fleet  Commander  plans 
to  transfer  north  4  Arados  of  the  ship-borne  squadron  at  Trondheim. 
They  are  first  to  proceed  to  Narvik  and  later  on  to  Hammerfest  in  order 
to  fly  submarine  patrols  over  the  coastal  waters.  Finally,  the  Fleet 
Commander  repeats  his  suggestion  to  transfer  the  operational  control 
center  to  Narvik  on  the  basis  of  experience  gained  in  operation  "Roessel- 
sprung".   This  would  guarantee  the  fastest  possible  communications  with 
the  Air  Force. 

A  check  with  the  Naval  Staff  Operations  Division  has  shown  that  the 
fuel  situation  will  permit  carrying  out  the  operation  as  planned. 

The  Chief,  Naval  Staff  expresses  his  approval  of  the  plan  to  send  a 

heavy  task  force  against  the  QP  convoy  and  PQ  "18",  even  though  they 

will  probably  comprise  only  a  few  vessels.   It  will  therefore  be  possible 

to  continue  with  the  preparations.  Execution  will  require  obtaining  t_ 

the  approval  of  the  Fuehrer  at  the  proper  moment.   The  conditions  for 

carrying  out  the  operation  are  to  be  the  same  as  in  the  case  of  PQ  "17". 

The  Naval  Staff  therefore  issues  the  following  directive  to  Group  North, 
with  copy  to  the  Admiral,  Arctic  Ocean  and  the  Fleet  Commander: 

"The  Commander  in  Chief,  Navy  approves  the  plan  to  commit  a  heavy  task 
force  against  the  QP  convoy  and  convoy  PQ  "18".  All  preparations  are 
to  be  made  for  this  operation.   The  conditions  governing  this  mission 
are  the  same  as  those  in  the  case  of  PQ  "17". 

Telegram  as  per  l/Skl  1351/42  Gkdos .  Chefs.,  1356/42  Gkdos.  Chefs.,  and 
1/Skl  17533/42  Gkdos.  in  File  "Operation  'Eispalast'". 

X.   The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division  re- 
ports on  the  recent  increase  in  submarine  losses.  For  details  see  pre- 
vious entry  in  War  Diary,  13  Jul . 

Special  Items : 

I.   The  following  points  were  made  in  a  discussion  with  the  Quarter-  . 

master  General,  Air  Force,  concerning  the  operation  of  the  BV  222' s  in 
the  west: 

The  planes  will  not  be  ready  to  take  off  before  10  Sep. 

No  decision  has  as  yet  been  reached  as  to  whether  1  or  2  planes  will 
participate  in  the  operation.  The  final  order  of  the  Commander  in 
Chief,  Air  Force  to  carry  out  the  plan  is  likewise  still  to  be  received. 

The  planes  will  start  out  with  an  extra  load  upon  the  go-ahead  signal 
from  base  1  (1000  km.  off  the  enemy  coast).  A  Navy  metereologist  is  re- 
quested for  that  base.  The  planes  will  then  land  at. base  1  and  refuel 
from  two  hose  lines.  This  procedure  is  estimated  to  take  about  1  1/2 
to  2  hours.  They  will  start  again  at  dusk  in  order  to  carry  out  their 
mission.  Upon  its  completion  they  will  head  for  home,  refuelling,  if 
necessary,  at  base  2  In  the  area  north  of  the  Azores. 

Loading  ammunition  from  a  submarine  thus  is  out  of  the  question. 


-  240  - 


17   Jul.    1942  CONFIDENTIAL 

The  Operations  Division,  Naval  Staff  and  the  Submarine  Division,  Naval 
Staff  are  participating  in  the  planning  and  the  execution  of  the  project. 

II.  Since  available  labor  is  to  be  used  for  submarine  repairs  according 
to  present  directives,  work  on  the  GNEISENAU  will  be  deferred.   The  Op- 
erations Division,  Naval  Staff  has  askked  the  Quartermaster  Division, 
Naval  Staff  to  see  if  there  is  a  possibility  after  all  of  completing 
work  on  the  GRAF  ZEPPELIN  at  Gdynia,  in  view  of  the  fact  that' work  on 
the  GNEISENAU  has  been  further  deferred  and  that  having  the  GRAF  ZEPPELIN 
in  Kiel  would  immediately  result  in  making  her  the  target  of  increased 
air  raids. 

Considering,  however,  the  accuracy  of  British  bombings,  neither  available 
nor  improved  anti-aircraft  defenses  can  afford  even  nearly  adequate 
protection  against  bomb  hits  according  to  all  experience  gained  so  far. 

In  view  of  the  strategic  significance  which  we  must  attribute  to  the 
aircraft  carrier,  this  question  should, in  the  opinion  of  the  Operations 
Division,  Naval  Staff,  be  continually  reexamined  with  the  aim  of  deter- 
mining whether  a  way  cannot  be  found  after  all  whereby  the  possibilities 
of  repairing  the  shipyards  in  the  East  can  be  increased  and  also  utilized 
for  the  aircraft  carrier.' 

III.  On  3  Juii.  the  Operations  Division,  Naval  Staff  concluded  its  mem- 
orandum to  Group  North  concerning  the  routing  of  vessels  in  operation 
"Cerberus"  as, follows:   "We  therefore  must  regretfully  conclude  that, 
contrary  to  the  original  intention,  it  was  not  possible  to  route  the 
vessels  to  the  north  differently  than  via  route  'Braun' .   Proceeding 
on  a  different  route  would  not,  to  be  sure,  have  guaranteed  absolute 
safety,  but  would  nevertheless  have  considerably  reduced  the  danger  of 
hitting  mines. " 

On  22  Jun.  Group  North  once  more  stated  its  views  on  the  entire  problem 
and  reported  as  a  result  of  renewed  study  that  what  the  Operations 
Division,  Naval  Staff  had  believed  to  be  their  original  intention  actually 
had  never  been  that  of  either  the  Group  or  the  Commanding  Admiral,  De- 
fenses, North.   Neither  of  the  two  authorities  was  even  familiary  with 
what  the  Operations  Division,  Naval  Staff  considered  the  best  routing. 
In  the  preliminary  discussions  both  Group  North  and  the  Commanding  Ad- 
miral, Defenses,  North  were  only  concerned  with  an  alternate  route  in 
the  area  east  of  point  I-i-,slnce  they  were  of  the  opinion  that  mines  have 
never  been  encountered  west  of  this  point.  As  it  turned  out,  the  only 
mine  hit  west  of  point  M  was  the  one  on  the  GNEISENAU. 

The  matter  was  once  more  thoroughly  discussed  by  the  Chief  of  Staff, 
Group  North  and  the  Mine  Warfare  and  Submarine  Sec tion^ Operations  Di- 
vision, Naval  Staff  on  the  occasion  of  the  conferences  of  the  Chiefs  of 
Staff  held  in  Berlin  on  11  Jul.  As  a  result,  the  Operations  Division, 
Naval  Staff  made-  known  Its  final  position  on  17  Jul ._,  referring  to  the 
written  and  oral  points  made  by  the  Group.  A  copy  of  the  memorandum 
1/Skl  I  E  15400/42  Gkdos.,  which  was  approved  by  the. Chief  of  Staff, 
Naval  Staff,  is  in  War  Diary,  Part  C,  File  "Cerberus". 

A  study  of  this  case  is  most  enlightening.   It  il- 
lustrates clearly  that  the  problem  Naval  Staff- Group 
Command  still  has  not  been  solved  adequately.   A  knowl- 
edge of  the  enemy  situation  and  strategic  and  tactical 
considerations  on  the  part  of  both  authorities  unfortu- 
nately did  not  have  such  practical  effect  as  to  result 
in  the  highest  possible  reduction  of  probable  mine  hits 
on  our  most  valuable  ships. 


-  241  - 


17  Jul.  19^2  CONFIDENTIAL 

IV.   The  Armed  Forces  High.  Command,  Operations  Staff,  Army  concludes 
the  following  fron  the  communique  of  the  High  Command,  Panzer  Army  North 
Africa  and  the  estimate  of  the  situation  dated  16  Jul.  of  the  Army  Gen- 
eral Staff,  Intelligence  Division,  West,  •  forwarded  to  the  Armed  Forces 
High  Command,  Operations   Staff: 

1.  The  Panzer  Army  believes  it  will  no  longer  he  possible  to 
hold  the  El  Alamein  position  if  the  enemy  succeeds  in  effecting  further 
penetrations,  in  view  of  the  rapidly  decreasing  fighting  ability  of  the 
Italian  divisions. 

2,  The  enemy  has  withdrawn  appreciable  forces  for  rest  purposes, 
even  though  his  activities  are  increasing.   These  forces  will  again  be 
available  for  action  by  the  beginning  of  August. 

The  reinforcements  which  have  been  planned  for  so  far  do  not  provide 
the  urgently  requested  boost  in  fighting  potential  of  the  infantry  or 
of  the  anti-tank  defenses.  Hence  it  not  only  is  necessary  to  retain 
the  plan  for  transferring  the  125th  Infantry  Regiment  and  the  609th 
Anti-Aircraft  Battalion  to  Africa  but,  independently  of  that,  it  is  also 
vitally  important  that  2  more  divisions  for  Africa(l  from  the  west  and 
1  from  the  Crimea)  be  made  available  at  once.  Either  the  7th  Airborne 
Division  or  the  22nd  (Air-Landing)  Division  stationed  in  the  Crimea 
would  be  best  suited  for  an  immediate  further  reinforcement  of  the 
Panzer  Army. 

The  daily  communiques  referred  to  indicate  that  nearly  h   Italian  divisions 
have  been  annihilated  and  that  the  enemy  is  being  reinforced  by  more 
and  more  infantry,  tanks,  and  artillery. 


Situation  17  Jul.  19^2 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation: 

North  Atlantic: 

An  intelligence  report  from  Spain  reveals  that  a  U.S.  de- 
stroyer escorted  by  2  three-motored  planes  was  sighted  near  Cape  Trafal- 
gar on  15  Jul. 

Pacific  Ocean: 

The  Russian  motor  ship  FELIX  DZERJINSKY  (3,700  GRT)  reported 
from  the  Aleutians  area  that  she  is  being  fired  upon. 

Indian  Ocean: 

A  British  radio  station  in  the  Cape  of  Good  Hope 
area  reported  on  12  Jul.  that  it  located  a  Japanese  ship  at  25°  00'  S 
48°  30'  E  (100  miles  southeast  of  Fort  Dauphin,  Madagascar). 

2.  Own  Situation: 

The  Japanese  Navy  requests  that  the  D0GGERBANK  abandon  her 
disguise  as  a  British  ship  400  miles  before  reaching  Japanese  waters, 
i.e.,  when  reaching  the  Christmas  Islands,  and  that  she  hold  her  German 
identification  signals  ready  for  instant  use. 


-  2^2  - 


17  Jul.  19^2  CONFIDENTIAL 

The  DOGGERBANK  is  being  instructed  to  this  effect  and  is  ordered  to  call 
at  Batavia  as  an  intermediate  port  where  she  will'  receive  orders  from 
the  Japanese  for  proceeding  to  Yokohama.   (Radiogram  2029.) 

The  Naval  Attache  in  Tokyo  reported  on  13  Jul.  that  1J57  prisoners  from 
the  TANNENFELS  and  the  DRESDEN  were  transferred  to  Japanese  author- 
ities on  10  Jul.   The  Attache  notes  that  the  Japanese  Navy  presents  no 
difficulties  whatsoever  as  far  as  taking  over  prisoners  is  concerned. 
On  the  contrary  it  has  always  induced  the  pertinent  authorities  (of  the 
Ministry  of  the  Interior)  to  take  them  over  as  quickly  as  possible. 
Prisoners  who  are  citizens  of  countries  with  which  Japan  is  not  at  war 
have  also  been  accepted.   The  Japanese  have  assured  us  that  nayal  secrets 
in  the  possession  of  subjects  of  the  non-belligerent  states  will  not  be 
divulged  for  three  months.   This  problem,  as  well  as  the  question  raised 
by  the  Naval  Attache  as  to  whether  prisoners  who  have  been  turned  over 
to  the  Japanese  will  continue  being  considered  German  prisoners,  will  be 
studied  further  by  the  Naval  Staff.  The  Operations  Division,  Naval 
Staff  now  considers  it  assured  that  Japan  will  take  over  prisoners  and 
considers  the  military  aspects  of  the  case  closed.   Text  of  a  note  to 
this  effect  to  the  Chief,  Special  Staff  for  Mercantile-  and  Economic  War- 
fare, Armed  Forces  High  Command,  as  per  l/Skl  I  k  17076/42  Gkdos.,  is 
in  War  Diary,  Part  C,  Vol.  I. 

Radiogram  1957  informs  all  ships  in  foreign  waters  about  certain  dis- 
crepancies between  American  and  British  policy  in  South  America  as  well 
as  about  the  struggle  of  the  Argentine  and  Chilean  governments  to  main- 
tain their  countries'  neutrality. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

Radio  intelligence  located  h   submarine  chasers  and  1  patrol 
boat  at  sea  in  the  area  of  Portsmouth.   Starting  at  1916,  "urgent  radio 
messages  were  intercepted  from  this  area  presumably  in  connection  with 
a  convoy.  A  message  at  1600  on  16  Jul.  from  the  LEPHRETO  reports  three 
mine  explosions  in  the  area  of  Portsmouth.  At  1800  the  ship  reported 
a  bad  leak.  An  intelligence  report  from  Spain  states  that  the  British 
Army  seized  a  large  number  of  small  vessels  in  the  Thames  estuary  and 
the  Channel  and  transferred  them  to  harbors  in  southern  England.   One  of 
the  harbors  mentioned  was  Falmouth. 

2.  Own  Situation: 

Atlantic  Coast: 

The  Gironde  was  again  opened  to  shipping.  A  ground  mine  was 
swept  at  point  N  III. 

Channel  Coast: 

Nothing  to  report. 


-  2*3.- 


17   Jul.    19^2  CONFIDENTIAL 

III.  North  Sea,  Norway,  Arctic  Ocean; 

1.  North  Sea: 

The  German  steamer  SESOSTRIS  vhich  formed  part  of  the  Elbe- 
Ems  convo/  was  damaged  when  she  hit  a  ground  mine  northwest  of  Borkum 
and  was  "brought  into  Emden.  The  German  motor  ship  HANS  sank  on  route 
"Hellrot"  near  buoy  29  after  hitting  a  mine.  A  mine- exploding  vessel 
swept  a  ground  mine,  north  of  Terschelling.  Enemy  air  activity  in  the 
eastern  North  Sea  and  in  the  Wilhelmshaven-Wesermuende  area  between  1800 
and  2000   Radar  did  not  intercept  the  enemy  planes. 

Mine  operation  "Satan"  was  staried  in  the  evening. 

2.  Norway: 

Naval  situation  unchanged.  Enemy  air  activity  over  Stavanger 
in  the  afternoon  and  night  of  16  Jul.  Enemy  air  activity  over  Kirkenes 
at  noon  of  16  Jul. 

Special  Items : 

The  transfer  of  the  LUETZOW  must  depend  entirely  on  the  opera- 
tional situation.  The  decision  about  the  date  rest,?  with  Group  North. 
The  following  factors  must  be  taken  into  account  in" selecting  the  date: 

a.  The  danger  to  the  ship  in  Trondheim. 

b.  The  weather  conditions  necessary  for  the  transfer. 

c.  The  desire  to  get  the  ship  ready  for  action  as  soon  as 
possible,1 

Both 'the  Operations  Division,  Naval  Staff  and  Group  North  consider  the 
new  moonlphase  in  August  the  best  time  for  effecting  the  transfer.  A 
corresponding  directive  by  the  Naval  Staff  is  being  forwarded  to  Group 
North,  w^.th  copy  to  the  Fleet  Command.   (See  Telegram  1405.)  Since  it 
is  considered  very  important  to  have  the  LUETZOW  completely  ready  for 
action  br  the  beginning  of  the  winter,-  the  Quartermaster  Division,  Naval 
Staff  is  being  asked  to  arrange  with  the  Naval  Construction  Division 
that  a  repair- shipyard  is  assigned  for  this  purpose.  A  report  from  the 
Chief,  Military  Problems  and  Shipyards  Branch,  Naval  Cdnstruction-  Divis- 
ion to  the  Commander  in  Chief,  Navy  states  that  it  is  impossible  to 
make  the  repairs  with  the  means  available  in  Trondheim. 

See  Telegram  2200  for  a  request  of  the  Fleet  Commander  io   have  a  Ju  52 
definitely  made  available  in  view  of  the  operational  Situation  which 
makes  it  possible  to  effect  the  transfer  in  the  very  near  future. 

i 

iTais  will  be  attended  to  by  the  Quartermaster  Division,  Naval  Staff. 

3.  Arctic  Ocean: 

Enemy  Situation? 

,  In  the  morning,  the  evening  and  towards  midnight  radio  intel- 
ligence located  several  British  ships  in  the  area  of  Archangel.  The 
new  Brixlsh  radio  station  or  radio  guard  ship  in  the  $ear  Island  or 
Spitsbergen  area  may  possibly  be  connected  with  a  troop  transport  to  set 
up  a  base  on  Bear  Island  or  Spitsbergen.  Definite  location  of  the 
station  by  means  of  direction-finding  has  been  unsuccessful  so  far. 


-  2**  - 


17  Jul.  19^2  confidential 

Own  Situation: 
Nothing  to  report. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

See  Telegram  2129  for  a  list  of  damage  caused  by  the  air  raid  on  Schleswig 
Hoi  stein  during  the  night  of  16  Jul. 

Escort  and  convoy  service  in  the  area  of  the  Commanding  Admiral,  Defenses, 
Baltic  Sea  according  to  plan. 

Mine  fields  "Sauna  II"  and  "ill"  were  laid  according  to  plan  in  the 
Gulf  of  Finland.   Channel  sweeping  and  submarine  patrols  proceeded  un- 
eventfully in  the  area  of  the  Commander,  Mine  Sweepers,  East.   Six  trans- 
ports were  being  convoyed  from  Utoe  to  Danzig,  H   from  Danzig  to  Utoe,  . 
while  1  transport  group  was  en  route  from  Danzig  to  Reval.   Other  convoys 
were  en  route  from  Reval  to  Helsinki  and  from  Libau  to  Reval. 


V.   Submarine  Warfare 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

The  foreign  press  report  according  to  which  the  Argentine 
steamer  ARGENTINO  has  allegedly  been  sunk  off  the  Portuguese  coast  is 
inaccurate. 

Inbound  submarine  U  "202"  established  contact  with  a  westbound  convoy 
about  350  miles'  north  of  the  Azores.   Two  more  submarines  were  sent 
against  the  convoy.   Contact  with  the  convoy  was  lost  around  midnight. 
It  disappeared  in  south-southwesterly  direction.   Submarine  U  "l6l  en- 
countered a  southbound  convoy  in  the  West  Indies  in  quadrant  DD  7838. 
She  scored  2  hits  on  a  steamer  of  9,000  GRT  and  observed  loud  detonations, 
so  that  the  vessel  was  probably  sunk.  A  hit  on  another  steamer  was  also 
heard.   See  supplementary  submarine  situation  report  in  War  Diary,  Part 
B,  Vol.  IV  for  further  reports  from  the  operations  area. 

Submarines  which  have  passed  through  the  Iceland  Passage  after  20  Jun. 
have  been  ordered  to  report  on  enemy  patrol  activity  between  Iceland  and 
the  Faeroe  Islands  at  their  earliest  opportunity. 


VI.  Aerial  Warfare 


1.   British  Isles  and  Vicinity: 


Numerous  daylight  raids  on  the  British  coast.  An  industrial 
plant  in  Colchester  was  attacked  without  observation  of  effect.  A  sail- 
ing vessel  was  attacked  and  damaged  near  Orfordness.  53  northbound 
steamers  were  spotted  in  the  Thames  estuary.   In  the  course  of  a  fighter- 
bomber  attack  at  noon,  a  hit  was  scored  on  the  guns  of  a  1,000  GRT 


-  245  - 


17  Jul.  19^2  CONFIDENTIAL 

freighter  near  Worthing.   In  a  further  raid  near  Brixham  a  steamer  of 
5,500  GRT  was  damaged  and  a  motor  mine  sweeper  was  sunk.  Weak  German 
forces  flew  night  reconnaissance  missions  over  the  southern  coast  of 
England.   Sporadic  enemy  flights  over  western  France  remained  without 
effect. 

2.  Mediterranean  Theater: 

The  cruiser  which  had  arrived  in  Valletta,  presumably  the 
MANXMAN,  was  attacked  with  "bombs.   No  definite  effects  were  observed. 

The  Air  Commander,  Africa  reported  that  very  heavy  forces  supported  the 
Panzer  Army  by  raiding  enemy  tank  and  truck  concentrations,  succeeding 
An  destroying  a  column  of  20  vehicles. 

3.  Eastern  Front: 

45  enemy  planes  are  reported  downed  in  the  course  of  missions 
supporting  the  attacking  armies.   Several  freight  cars  and  barracks 
were  damaged  during  a  raid  on  the  Laplandia  railroad  station. 

k .   Special  Items :  f 

The  Commanding  General,  Air  Force  Group  Command,  Central  Area 
stated  in  agreement  with  the  Quartermaster  Division,  Naval  Staff  that  the 
XI  Air  District  Command  (Luftgau)  continues  to  be  responsible  for  the 
anti-aircraft  defenses  of  Flensburg,  and  that  for  operational  purposes 
the  local  commander  of  Navy  anti-aircraft  artillery  is  placed  under  the 
command  of  the  XL  Air  District  Command  (Luftgau),'"*-  effective  at  once. 
This  supplements  the  order  of  3  May  which  placed  the  Air  Force  anti- 
aircraft batteries  in  Flensburg  under  the  command  of  the  local  commander 
of  Navy  anti-aircraft  artillery.   (See  Telegram  1700.) 


VII  ^Warfare  in  the  Mediterranean  and  the  Black  Sea 

1 .  Enemy  Situation: 

Mediterranean: 

Cruiser  CAIRO  which  was  part  of  the  EAGLE  task  force  that  had  f- 

l^ft  Gibraltar  for  the  Mediterranean  on  14  Jul.  later  turned  westward 
and  again  arrived  in  Gibraltar  from  a  westerly  direction  on  the 
morning  of  16  Jul.   The  second  cruiser,  probably  a  mine-laying  cruiser 
from  the  British  Isles,  was  still  in  the  harbor  of  Valletta  at  0930  ac- 
cording to  an  aerial  photograph.  Two  previously  spotted  destroyers  were 
still  in  Valletta. 

In  the  eastern  Mediterranean  German  air  reconnaissance  spotted  a  west- 
bound vessel,  presumably  a  cruiser,  8  miles  west  of  Alexandria.   In 
the  afternoon  %   steamers  and  h   patrol  vessels  were  reported  on  an  easterly 
course  30  miles  east  of  Port  Said. 

2.  Own  Situation: 

Mediterranean: 

Enemy  planes  raided  Tobruk  during  the  night  of  16  Jul.  A 
captured  enemy  lighter  which  was  carrying  Italian  ammunition  was  sunk. 
During  a  second  attack  in  the  afternoon  of  17  Jul.  a  tank  containing 


-  246  - 


17  Jul.  19^2  CONFIDENTIAL 

2,000  tons  of  gasoline  was  set  afire.   This  loss  is  very  painful  and 
will  not  remain  without  effect  on  the  freedom  of  movement  of-  our  Air 
Force.   An  enemy  flying  boat  was  shot  down  by  a  German  submarine.   19 
Italian  submarines  were  at  sea  in  the  Mediterranean  operations  area. 

Special  Items: 

The  Admiral,  German  Naval  Command,  Italy  has  expressed  the 
opinion  that  the  operations  in  Egypt  have  assumed  the  form  of  a  war  of 
position.   The  side  which  is  first  in  organizing  a  larger  flow  of  sup- 
plies will  be  able  to  break  the  stalemate.   Our  supply  line  still  has 
many  weaknesses  and  inadequacies.   The  Admiral,  therefore,  is< seriously 
considering  returning  to  Rome  and  putting  either  his  Chief  of' Staff 
or  Captain  Aschmann  in  charge  of  operational  headquarters  in  North 
Africa.   (See  Telegram  1900.) 

According  to  a  further  report  from  the  Admiral,  German  Naval  Command, 
Italy,  Lieutenant  Commander  Oehrn  of  the  staff  of  the  Commander  of 
Submarines,  Italy  is  missing  since  14  Jul.   In  addition  to  his  other 
duties  this,  officer  represented  the  Admiral  In  official  affairs  with  the 
Commanding  General,  Armed  Forces,  South  and  occasionally  at  other. im- 
portant conferences.  While  en  route  from  the  headquarters  of  the  Com- 
manding General,  Armed  Forces,  South  to  those, of  Field  Marshal  Rommel 
in  order  to  discuss  an  adjustment  of  seaborne  supplies  to  the  mili- 
tary situation^his  car  failed  to  arrive  at  Its  destination  and  has  been 
missing  since.   (See  Telegram  1950.) 

The  Chief,  Naval  Staff  disapproves  using  the  subma- 
rine staff  officer  for  the  above  tasks,  which  have  led  to 
his  loss. 

3.   Transport  of  Supplies  to  North  Africa; 

Shipping  is  proceeding  according  to  plan.  No  report  has  as 
yet  been  received  concerning  the  arrival  of  steamer  GUALDI  in  Tobruk. 
Cargo  unloaded  in  Tobruk  on  16  Jul.  amounted  to  676  tons. 

k .   Area  Naval  Group  South: 

Aegean  Sea: 

The  Italian  destroyer  SAETTA  has  been  made  available  for  the 
urgent  transport  of  anti-aircraft  gun  barrels  from  Suda  to  Tobruk  as 
requested  by  the  Commanding  General,  Armed  Forces  South.   Steamer 
0LYMP0S  has  replaced  steamer  P0NTINIA,  which  is  in  need  of  repairs,  for 
the  transport  of  aviation  gasoline  from  Suda  to  Tobruk.   During  the 
morning  the  3rd  Destroyer  Squadron  and  2  CITTA- class  steamers  again 
arrived  in  Candia  from  Tobruk.   4  naval  barges  which  are  destined  for 
the  Black  Sea  are  expected  to  arrive  in  Piraeus  from  Palermo  on  21  Jul. 

Black  Sea: 

Enemy  Situation: 

Very  lively  air  activity  In  the  Anapa  area.  Aerial  photo  re- 
connaissance seems  to  indicate  an  appreciable  increase  in  the  number  of 
merchant  ships  in  Poti.  According  to  radio  intelligence  1  destroyer, 
8  submarines,  1  submarine  tender,  a  few  mine  layers  and  PT  boats  were 
located  in  the  southeastern  part  of  the  Black  Sea;   1  destroyer,  3  mine- 
laying  vessels  and  5  mine  sweepers  were  located  in  the  northeastern 
part. 


-  247  - 


17    Jul.    lOJiP 

Own  Situation: 


-ed 


The  Naval  Attache  in  Istanbul  reports  that  a  Turkish  submarine  sank  off 
the  Dardanelles. 

5.    Special  I tens : 


In  accordance  with  a  request  from  the  Commander  in  Chief,  Air 
Force  the  Naval  3taff  has  agreed  to  the  transfer  of  a  squadron  of  the 
125th  Reconnaissance  Group  fron  the  Cavalla  area  to  the  south.   The 
planes  are  to  be  .used  as  convoy  escorts^for  submarine  chasing 3and  recon- 
naissance of  coastal  waters  between  Piraeus  and  Crete. 


VIII.  Situation  East  Asia 


Nothing  to  report. 


IX.   Army  Situation 

1 .   Russian  Front: 

Army  Groups  A  and  3: 

Voroshilovgrad  was  taken;  its  western  "bridge  is  undamaged. 
Kamensk  was  reached  and  the  bridgehead  southeast  of  Kamensk  widened. 
Advance  elements  reached  Kerchinsk  (100  km.  northeast  of  Rostov). 
Infantry  Division  "Grossdeutschland "  reached  Tatsinskaya  as  early 
as  16  Jul.   Other  advance  units  reached  Bokovskaya. 

The  Don  was  reached  southeast  of  Kazanskaya  as  planned.   Persistent  en- 
emy attacks  were  repulsed  all  along  the  Don  front,  from  Korotoyak 
through.  Voronezh  to  south  of  Livny. 

Central  Army  Group: 

Encircled  enemy  formations  in  the  rear  of  the  front  were  at- 
tacked in  the  area  northeast  of  Smolensk. 

Northern  Army  Group: 

Enemy  forces  supported  by  tanks  attacked  the  land  strip 
south  of  Staraya  Russa  in  front  of  the  westerly  position  of  the  II 
Army  Corps  from  the  north  and  south.  The  attacks  from  the  south  were 
repulsed.  A  counterattack  in  northerly  direction  is  being  prepared. 

An  attack  against  the  bridgehead  of  Kirizhi  was  repulsed  north  of 
Soltsy. 

Finnish  Front : 

ft 

No  reports  received. 


-  248  - 


17  Jul.    19^2 


CONFIDENTIAL 


North  Africa: 

Strong  enemy  forces  again  broke  through  the  front  sector  of 
the  Italian  "Trieste"  Division.  Units  of  the  21st  Panzer  Division  suc- 
ceeded in  saving  the  situation  for  the  time  being.  At  the  northern 
sector  the  Panzer  Army  was  engaged  in  heavy  fighting  against  renewed 
enemy  attacks  throughout  the  day.   The  defense  was  supported  by  concen- 
trated raids  in  front  of  the  lines  of  the  21st  Panzer  Division  by  forces 
under  the  Air  Commander,  Africa. 


************************* 


r> 


D 


.-  24-9  - 


CONFIDENTIAL 
18  Jul.  1942 

Items  of  Political  Importance 

Great  Britain; 

In  response  to  the  publication  of  the  notes  exchanged  between  France 
and  the  U.S.  concerning  the  French  warships  in  Alexandria,  Great 
Britain  denies  that  these  warships  fall  under  the  armistice  terras^ 
since  they  were  already  under  the  command  of  the  British  Commander  to 
Chief  in  Alexandria  at  the  time  the  armistice  was  concluded.  France 
announced  to  Washington  that  a  new  comment  on  this  question  will  be 
forthcoming. 

Spain : 

t 

General  Franco  has  again  convoked  the  Cortes.  The  new  people's  rep- 
resentatives will  be  organized  on  the  basis  of  occupation. 

Hungary; 

The  Prime  Minister  declared  in  the  course  of  an  address  that  the 
world  conflagration  has  now  reached  a  stage  of  development  which 
must  be  regarded  as  a  sign  of  its  approaching  end. 

Switzerland; 

Newspaper  comments  on  the  European  situation  express  the  opinion 
that  the  war  is  approaching  a  point  where  it  might  be  looked  upon  as 
an  immense  collective  suicide.  The  press  does  not  believe  that  the 
nations  of  the  world  will  accept  this  fate  forever.  Even  the  "pro- 
fessionals** of  world  politics  and  their  followers  must,  it  is  felt, 
slowly  get  the  idea  that  it  is  time  to  think  of  ending  the  war.  For 
details,  see  Political  Review  No.  166,  Par.  3. 


Special  Items; 

I.  The  Operations  Staff,  Armed  Forces  High  Command  ordered  on  18 
Jul.  that  additional  forces  be  made  available  for  the  southern  area. 
The  22nd  (Air-Landing)  Division  is  to  be  transferred  to  Greece  at 
once.   One  reinforced  regiment  will  be  stationed  in  Crete,  while  the 
bulk  of  the  division  will  be  stationed  in  southern  Greece  and  the 
area  of  Salonika.   It  is  possible  that  the  division  will  be  trans- 
ferred to  Africa.   It  is  to  be  reorganized  into  an  airborne  division 
for  tropical  warfare, 

II.  The  Armed  Forces  High  Command,  Operations  Staff,  Navy  reports 
the  following  estimate  of  the  situation  rendered  by  the  Commanding 
General,  Armed  Forces,  South  on  18  Jul.;  The  present  crisis  was  to 
be  expected  because  the  Italian  troops  are  tired.  The  Puce  declared 
that  the  battle  for  Tobruk  has  been  concluded.  Until  a  new  battle 
begins  under  a  different  name,  it  is  necessary  to  allow  the  troops 
to  rest.  This  rest  should  last  2  to  3  weeks.  The  morale  of  the 
British  8th  Array  is  no  better  than  that  of  the  fatigued  German  and 
Italian  troops.  The  enemy  air  raids  will  simply  have  to  be  endured, 
Cavallero  and  Bastico  will  do  everything  possible  to  have  fresh  re- 
placements available  as  soon  as  possible.  Both  Kesselring  and 
Rommel  believe  that  the  set-back  is  due,  on  the  one  hand,  to  the 
arrival  of  2  new  enemy  divisions  and  considerable  replacements  for 
tank  forces  via  a  shorter  supply  route  as  well  as  a  concentration  of ! 


-25©- 


CONFIDENTIAL 


18  Jul.  1942 


enemy  artillery  and  a  very  strong  and  eager  air.  force;  on  the  other 
hand  the  set-back  is  due  to  the  failure  of  fatigued  Italian  units. 
It  was  very  difficult  for  German  troops  to  contain  enemy  attacks. 
The  Air  Force  played  a  large  part  in  the  fighting.   So  far  all 
supply  problems  have  been  solved,  but  for  organizational  reasons  and 
because  of  enemy  activity  they  are  growing  bigger  every  day.   The 
Commanding  General,  Armed  Forces,  South  will  request  Cavallero  to 
take  Immediate  steps  to  bring  about  a  radical  improvement.   The 
fighting  potential  of  the  Panzer  divisions  has  fallen  off  consider- 
ably, with  the  result  that  even  the  best  air  preparation  was  ex- 
ploited only  to  a  small  extent  or  not  at  all.   Recognizing  this  sit- 
uation, Rommel  plans  to  pull  his  left  wing  back  to  the  line  of  Bir 
el  Magtua  (west  of  El  Alamein)  -  Bir  el  She in,  while  holding  his 
strong  elevated  position  at  Bab  el  Qattara-Gebel  Kalakh.   The  newly- 
arrived  British  troops  can  also  be  considered  fatigued  so  that  they 
too  are  in  need  of  rest. 

Our  supply  service  will  have  to  be  brought  up  to  a  maximum  of  effi- 
ciency.  The  Duce  and  Cavallero  are  attempting  to  do  this  with  all 
means  at  their  disposal.   Everything  will  be  done  on  the  part  of 
German  authorities  to  bring  the  troops  up  to  a  maximum  strength. 

Approximately  9,000  men  and  300  tons  of  Army  equipment  were  ferried 
to  North  Africa  by  air  between  2  and  17  Jul.   In  view  of  urgent 
missions  it  is  doubtful  whether  the  Air  Force  will  get   Its  much 
needed  rest.  Ferrying  replacements  and  reinforcements  for  anti- 
aircraft artillery  units  is  a  special  task  with  high  priority  «which 
has  already  been  started.   The  reduction  in  air  operations  against 
Malta  ordered  by  the  Italian  High  Command  does  not  meet  with  Kessel- 
ring's  approval.   A  decision  by  the  Duce  will  be  requested  if 
necessary. 

Summary;   Rommel's  able  leadership,  the  stamina  of  German  troops 
which  has  won  them  the  enemy's  respect^and  the  effective  support  of 
the  Air  Force  will  combine  to  overcome  the  crisis  with  the  aid  of  an 
increasing  flow  of  supplies,  fatigue  symptoms  notwithstanding,  and 
our  forces  will  be  brought  up  to  full  strength.   Morale  is  high.  The 
soldiers  know  what  is  at  stake. 

III.  The  Commander  in  Chief,  Navy  has  decided  against  the  construc- 
tion of  Walter  submarine  V  300.   A  new  submarine  is  to  be  built  in- 
stead, incorporating  features  based  on  experiences  gained  so  far. 
The  aim  is  to  create  a  submarine  capable  of  operating  in  the  Atlan- 
tic at  high  underwater  speed  (V  301).   The  Naval  Staff  attributes 
decisive  importance  to  such  a  submarine.  The  Submarine  Division, 
Naval  Staff  has  requested  the  Naval  Construction  Division  and  the 
Naval  Ordnance  Division  to  take  charge  of  further  details. 


Situation  18  Jul.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

According  to  an  intelligence  report  from  Portugal  based  on 
a  conversation  overheard  in  American  naval  circles,  65  U.S.  ships 
were  in  the  latitude  of  Freetown  in  the  first  week  of  July.   These 
included  some  very  large  troop  transports  and  v/arships,  among  them 


-251- 


CONFIDENTIAL 


18  Jul.  1942 


3  aircraft  carriers  and  6  cruisers.   Subsequently,  a  convoy  with 
80,000  men  and  materiel  for  the  North  Africa  front  is  said  to  have 
arrived  at  Pointe  Noire.   Troops  and  equipment  are  continuing  to 
Leopoldville  by  rail,  and  from  there  by  truck  to  the  Sudan  via  the 
newly-built  highway,  etc. 

2.    Own  Situation: 

The  Naval  Attache  in  Tokyo  has  forwarded  an  extract  of  the 
war  diary  of  ship  "10"  covering  the  period  from  20  Mar.  to  15  Apr. 
A  first  analysis  yields  the  following  information: 

a.  Tactics  used  in  capturing  enemy  vessels:   The  ship's 
plane  flies  reconnaissance,  reporting  its  findings  by  micro- 
wave. A  photograph  is  taken  when  the  plane  is  in  doubt.   In  3  cases 
the  plane  tore  the  enemy  ship's  antenna.   After  that  the  enemy  ship 
is  bombed  from  the  air.    Ship  "10"  takes  the  enemy  under  long-range 
fire,  sometimes  using  the  plane  as  spotter.   The  captain  reports  that 
air  reconnaissance  and  the  technique  of  tearing  the  enemy's  antenna 

were  extremely  important.   The  afternoon  proved  a  good  time  for  / 

attack.   Night  time  captures  with  the  use  of  radar  proved  completely 
successful.   It  was  possible  to  approach  the  enemy  unobserved  up  to 
1,700  meters.   Tearing  the  antenna  and  using  radar  made  it  possible 
to  capture  5  ships  without  their  sending  out  any  signals. 

b.  The  shipping  routes  between  Capetown  and  Pernambucco 
and  Capetown  and  La  Plata  which  the  Naval  Staff  had  transmitted  to 
the  ship  proved  to  be  well  travelled.   In  transferring  to  the  In- 
dian Ocean,  the  Cape  of  Good  Hope  was  passed  at  43°  S;  this  Is  the 
closest  a  ship  can  get  to  the  Cape  in  passing  it. 

c.  Secret  material  captured  aboard  the  AUST  reveals  the 
follov/ing  British  recognition  signals:   The  v/arship  calls  NNJ  by 
visual  signals;  the  called  ship  turns  off  at  top  speed  and  at  the 
same  time  gives  her  international  signal  letters  by  Morse  code.   The 
warship  answers  with  the  two  middle  letters  of  the  secret  call  signal 
of  the  called  ship,  which  In  turn  answers  with  the  two  outer  letters 
of  her  secret  call  signal.   This  procedure  is  not  used  in  the  vicinity 
of  the  coast  or  in  certain  special  patrol  areas.  A  similar  procedure 
is  used  between  planes  and  merchant  ships.   The  plane  requests  the 

merchant  ship  by  a  white  smoke  signal  to  give  her  signal  letters.  The  , 

rest  of  the  procedure  seems  to  be  the  same  as  above.  f 

d.  Further  analysis  will  follow. 

All  ships  in  foreign  waters  are  being  informed  of  the  above  via 
Radiogram  0143. 

Information  on  enemy  situation  via  Radiograms  1140  and  2253. 


II.   Situation  West  Area 

1.   Enemy  Situation: 

According  to  radio  intelligence  6  ships,  5  submarine 
chasers,  and  several  smaller  ships  were  at  sea  in  the  Portsmouth 
area. 


-252- 


CONFIDENTIAL 
18    Jul.    1942 

2.    Own  Situation; 

Atlantic  Coast; 

The  rnouth  of  the  Loire  has  been  opened  to  shipping.   Other- 
wise nothing  to  report. 

The  Japanese  submarine  I  "30H  passed  the  equator  near  20° W  at  0000 
and  intends  to  arrive  at  point  L  II  on  the  morning  of  5  Aug.   Re- 
ports so  far  received  from  the  submarine  indicate  that  it  will, not 
be  necessary  for  her  to  dock  or  undergo  large-scale  repairs.   Her 
captain  intends  to  leave  port  again  on  17  Aug.   Corresponding  in- 
formation to  the  Commanding  Admiral,  Submarines  and  Group  '.Vest  via 
Telegram  1627. 

Channel  Coast; 

Coastal  batteries  in  the  area  between  Le  Havre  and  St» 
Valory  en  Caux  were  alerted  from  0^39  to  05^0  because  sus- 
picious vessels  had  been  reported  sighted  from  the  coast. 

The  convoy  which  is  en  route  from  Cherbourg  to  Alderney  was  raided 
by  enemy  planes.   Two  of  the  attacking  planes  were  shot  down  for 
certain,  while  2  others  were  probably  shot  down.   Two  patrol  vessels 
were  damaged  by  hits  which  caused  casualties. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation; 

Nothing  to  report. 

Own  Situation; 

3  ground  mines  were  swept  along  the  shipping  route  from 
Schiermonnikoog  to  Ameland.   Escort  service  proceeded  as  planned; 
mine-sweeping  activities  were  limited  by  bad  weather.   Starting  at 
2210  several  located  targets  were  fired  upon  off  Hook  of  Holland 
v;ithout  observation  of  effect.   No  damage  was  reported  from  an  enemy 
air  raid  on  batteries  in  the  area  of  southern  Holland  between  1200 
and  1510. 

2.  Norway^: 

Enemy  Situation; 

A  periscope  was  sighted  by  a  German  submarine  off  Vest 
Fjord  at  the  southern  tip  of  the  Lofoten  Islands. 

Own  Situation; 

26  shipwrecked  persons  landed  in  Gamvik  on  16  Jul.   They 
were  from  a  steamer  which  had  been  sunk  in  convoy  PQ,  "17M.   The 
steamer  B0CHUM  carrying  a  cargo  of  ore  scraped  bottom  in  the  fog  and 
was  beached  in  Muken  Bay.  The  chances  for  successful  salvage  opera- 
tions are  good. 


-253- 


CONFIDENTIAL 
18  Jul.  1942 

The  cruiser  KOENIGSBERG  was  floated  on  17  Jul.   She  was  beached  in 
shallow  water  In  Santvik  Bay  for  further  salvage. 

Enemy  air  activity  over  Trondheim  and  Stavanger  on  17  Jul. 

Group  North  informs  the  Fleet  Commander  that  the  return  voyage  of 
the  LUETZOW  is  planned  for  the  new  moon  phase  in  August.  A  final 
decision  will  be  made  after  a  shipyard  has  been  assigned. 

3.   Arctic  Ocean: 

Enemy  Situation; 

According  to  an  intelligence  report  from  Stockholm,  all 
British  and  American  convoy  captains  were  informed  that  the: 
port  of  Murmansk  would  agaih  be  accessible  after  9  Jul.   The  Murmansk 
railroad  has  apparently  been^ reopened  to  traffic. 

According  to  radio  intelligence,  a  radio  station  3  miles  northeast 
of  Navelok  (Novaya  Zemlya)  sent  out  an  unidentified  code  word  at 
1428.   Air  reconnaissance  sighted  a  southbound  steamer  and  another 
one  lying  to  in  the  vicinity  of  Moller  Bay  (Novaya  Zemlya).   Two 
steamers  and  2  patrol  vessels  were  observed  in  the  evening  in  the 
Iceland  area  off  Langanes. 

Own  Situation: 


Ocean. 


4  submarines  sailed  for  the  operations  area  in  the  Arctic 


IV.   Skaggerak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

12  Russian  submarines  were  detected  on  17  Jul.  through 
their  radio  messages.   Submarines  were  sighted  in  quadrants  AO  3519, 
AO  3639,  and  AO  6467. 

2.  Own  Situation: 

Convoy  and  escort  service  proceeded  according  to  plan  in 
the  area  of  the  Commanding  Admiral,  Defenses,  Baltic  Sea.   A  ground 
mine  was  swept  near  Darsser  Ort.   Mine-sweeping  operations  in  the 
eastern  Baltic  Sea  and  in  the  Gulf  of  Finland  were  hindered  by  the 
weather.   The  sighted  enemy  submarines  were  attacked.   Convoy  service 
proceeded  uneventfully. 


V.   Merchant  Shipping 

The  Foreign  Office  reports  that  the  German  and  Italian  Ambassadors 
at  Madrid  have  recently  lodged  a  protest  with  the  Spanish  Foreign 
Office  against  the  interference  of  British  authorities  in  Spanish 
shipping  and  commerce  inside  Spain.   See  War  Diary,  Part  C,  Vol. 
VIII  for  details. 


-254- 


confidential 

18  Jul.  1942 

See  brief  report  No.  21/42  of  the  Foreign  Merchant  Marine  Branch, 
Naval  Intelligence  Division,  Naval  Staff  for  the  demand  by  the  . 
British  Railroad  Association  for  complete  coordination  of  all  land, 
sea,  and  air  transport  and  all  associated  industries  through  seizure 
and  public  ownership  in  conjunction  with  the  trade  unions.   The 
brief  repcrt  also  contains  a  description  of  the  activities  of  the 
British  tugboat  CARNEVAL  along  the  Portuguese  coast;  data  on 
Spanish^  ore  shipments  to  Great  Britain,  which  amounted  to  only 
394,472  tons  from  January  to  Kay  1942,  as  compared  to  467,390  tons 
in  the  same  period  last  year;  and  a  report  on  ships  in  eastern 
Mediterranean  ports,  the  number  of  which  diminished  appreciably  in 
Alexandria  and  Port  Said  during  the  first  week  of  July  as  compared 
to  the  preceding  month,  while  the  number  of  vessels  in  Suez  and  Port 
Tewfik  increased  remarkably. 


VI.   Submarine  ".Varfare 

1.  Enemy  Situation: 

Some  of  the  beacon  lights  at  the  entrance  to  New  York  have 
been  extinguished.   Several  submarine  sighting  reports  .vere  inter- 
cepted from  waters  off  the  American  coast  and  the  'west  Indies. 

2.  Own    Situation; 

Contact  with  the  convoy  north  of  the  Azores  was  reestab- 
lished in  quadrant  BD  6593.   One  submarine  reported  the  convoy  to 
consist  of  16  ships  proceeding  in  a  line  abreast  at  wide  intervals. 

Submarine  U  "564"  (Lt.  Suhren)  reports  torpedoing  4  steamers  of  the 
convoy  and  a  subsequent  depth  charge  attack  by  2  corvettes.   Contact 
was  maintained  until  midnight.   For  further  details  see  supplement- 
ary submarine  situation  report  in  War  Diary,  Part  B,  Vol.  IV. 

The  Naval  Staff  informs  the  Commanding  Admiral,  Submarines  that  a 
German  auxiliary  cruiser  is  at  present  operating  in  the  area  of  the 
Gulf  of  Guinea  outside  of  the  area  which  has  been  opened  to  sub- 
marine operations.   No  successes  have  as  yet  been  scored;  if  there 
are  successes,  they  might  lead  to  a  rerouting  of  enemy  shipping.  The 
Commanding  Admiral,  Submarines  is  requested  to  furnish  information 
about  the  time  and  place- of  operations  of  Group  "Hal",  since  this 
information  is  necessary  for  continuing  the  auxiliary  cruiser  op- 
eration. 

Group  North  suggests  that  submarine  U  "378",  which  has  been  used  for 
several  months  for  open-water  torpedo  firing  in  Trondheim,  be  used 
for  the  tests  of  the  Communications  Equipment  Experimental  Command 
in  the  Skagerrak  (see  Telegram  1913). 


VII.  Aerial  '.Varfare 

1.   British  Isles  and  Vicinity; 

Middle  Hampton  and  a  patrol  vessel  were  attacked  during 
the  day.  Enemy  planes  probably  Russian  ones,  raided  East  Prussia 


-255- 


CONFIDENTIAL 
18  Jul.  1942 

during  the  night  of  18  Jul.   The  focal  point  of  the  attacks  was 
Koenigsberg,  where  minor  damage  to  buildings  and  materiel  is  reported. 

2.  Mediterranean  Theater; 

Heavy  air  raids  on  Malta.  The  Africa  Panzer  Army  received 
strong  air  support,  directed  particularly  against  enemy  motor  vehicle 
concentrations  south  of  El  Alamein. 

3.  Eastern  Front ; 

20  planes  were  reported  downed  in  the  course  of  missions 
supporting  the  attacking  armies.   A  steamer  v/as  bombed  in  the  Arctic 
Ocean  at  the  northeastern  tip  of  Iceland,  without  observation  of 
effect. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation: 

Mediterranean; 

According  to  an  Italian  report,  4  steamers  were  damaged  in 
the  course  of  the  special  operation  conducted  by  Italian  forces 
against  Gibraltar  on  14  Jul. 

An  intelligence  report  from  Spain  states  that  air  patrols  over  the 
Strait  of  Gibraltar  have  been  intensified. 

German  air  reconnaissance  spotted  the  British  cruiser  in  Valletta  as 
late  as  0820. 

In  the  eastern  Mediterranean  the  normal  amount  of  patrol  and  convoy 
activity  was  observed  in  the  Alexandria  area.  Two  westbound  de- 
stroyers were  sighted  24  miles  west  of  Alexandria  at  1845. 

2.    Own  Situation; 

Mediterranean; 

During  the  night  of  17  Jul.,  2  vessels  of  the  3rd  PT  Boat 
Flotilla  proceeded  on  a  torpedo  mission  in  the  area  northwest  of 
Alexandria  without  contacting  the  enemy.   Five  vessels  of  the  6th 
Motor  Mine  Sweeper  Flotilla  were  engaged  in  convoy  duty  off  the 
North  African  coast.   Two  vessels  scored  hits  on  enemy  torpedo  planes 
when  the  latter  attacked  the  escorted  steamer  CITTA  DI  AGRIGENTO. 

During  the  night  of  17  Jul.,  3  British  destroyers  fired  20  salvos 
at  Marsa  Matruh  without  causing  any  appreciable  damage. 

The  Naval  Staff  is  of  the  opinion  that  the  Admiral,  German  Naval 
Command,  Italy  should  return  to  Rome  soon,  at  least  temporarily. 
Affairs  in  North  Africa  can  be  handled  by  Lt.  Commander  Meixner  for 
the  time  being.   Permanent  representation,  perhaps  by  the  appointment 
of  Captain  As chmann_> which  meets  with  the  approval  of  the  Naval  Staff, 
would  have  to  be  arranged  in  Rome.   The  Chief  of  Staff,  Naval  Staff 
wires  the  above  viewpoint  to  the  Admiral,  German  Naval  Command, 
Italy  (see  Telegram  1640). 


-256- 


confidential 

18    Jul.    194? 

3.  Situation  Italy; 

The  7th  Italian  Cruiser  Division  comprising  2  cruisers  and 
destroyers  left  Naples  at  1500  in  order  to  intercept  the  British 
cruiser  in  case  she  leaves  Valletta  after  sundown. 

According  to  a  report  from  the  German  Naval  Command,  Italy,  the 
Italian  Navy  has  ordered  the  transfer  of  65  naval  barges  to  North 
Africa.   The  transfer  is  already  in  progress.   4  naval  barges  have 
arrived  in  Crete  and  8  in  Piraeus.   The  date  on  which  the  operation 
will  be  completed  cannot  be  estimated  at  this  time. 

16  Italian  submarines  were  at  sea  in  the  Mediterranean. 

Special  Items; 

The  Admiral,  German  Naval  Command,  Italy  fully  shares  the  opinion 
of  the  Chief  of  Staff,  Naval  Staff  concerning  the  lack  of  uniform 
command  in  the  Mediterranean  and  African  theaters.   This  condition 
has  always  existed  and  has  undergone  no  fundamental  change  since  the 
appointment  of  a  Commanding  General,  Armed  Forces,  South.   The 
Commanding  General,  Armed  Forces,  South  is  not  even  responsible  for 
the  German  forces,  nor  is  he  authorized  to  dispose  of  them  as  he 
sees  fit.  Field  Marshal  Rommel  makes  his  own  decisions  without  con- 
sulting other  branches  of  the  Armed  Forces,  thereby  forcing  the 
hand  of  the  Commanding  General,  Armed  Forces,  South.   This  fact  has 
placed  the  latter  in  a  difficult  position,  since  he  regarded  the 
situation  as  more  serious  from  the  beginning  and  was  against  a 
further  advance  to  Egypt.   The  position  of  the  Commanding  General, 
Armed  Forces,  South  is  also  difficult  with  regard  to  the  Italians, 
inasmuch  as  he  has  no  command  authority  over  them  and  because  the 
Italians,  though  they  ■  do  occasionally  follow  his  advice,  do  just  as 
they  like  in  the  end.   Particularly  in  the  case  of  decisions  which 
they  were  finally  persuaded  to  accept,  they  often  modify  them  in  the 
execution  to  suit  their  own  purposes.   There  is,  therefore,  no 
unity  of  command  in  the  Mediterranean.   There  is  rather  a  multi- 
plicity of  command  moderated  by  an  attitude  of  understanding  and 
good  will  on  the  part  of  most  of  the  top  authorities.   The  Command- 
ing General,  Armed  Forces,  South  personally  does  very  much  to 
reconcile  different  opinions;  without  him  chaos  would  prevail.   Any 
basic  changes  in  the  situation  can  only  be  brought  about  by  the 
Fuehrer  and  the  Duce.  A  request  for  this  can  be  initiated  only  by 
the  Commanding  General,  Armed  Forces,  South.   Telegram  of  the 
Admiral,  German  Naval  Command,,  Italy  as  per  l/Skl  17564/42  Gkdos.  in 
War  Diary,  Part  C,  Vol.  XIV. 

4.  Transport  of  Supplies  to  North  Africa: 

The  steamer  GUALDI  arrived  in  Tobruk  in  the  afternoon  of 

17  Jul.   Seven  German  naval  barges  have  been  en  route  from  Tripoli 
to  Benghazi  since  the  evening  of  16  Jul.   The  motor  ship  LERICI  left 
Suda  for  Benghazi  in  the  evening  of  17  Jul.   All  other  transport 
movements  proceeded  uneventfully  and  as  planned. 

The  total  amount  of  cargo  unloaded  at  Derna  between  1  and  30  Jun. 
amounted  to  5,912  tons. 

The  amount  of  cargo  unloaded  at  Tobruk  during  17  Jul.  amounted  to 
650  tons. 


-257- 


CONFIDENTIAL 
18  Jul.  1942 

5.   Area  Naval  Group  South: 

Aegean  Sea; 

Destroyer  ZG  5  will  be  out  of  action  until  21  Jul.  because 
of  repairs  on  the  electrical  system  and  the  port  propeller  shaft 
bearing.   The  Turkish  submarine  which  sank  off  the  Dardanelles  on 
16  Ju_„  apparently  went  down  with  her  entire  crew.   Otherwise  noth- 
ing to  report  on  the  naval  situation. 

Black  Sea; 

Enemy  Situation; 

According  to  radio  intelligence,  the  Russian  Fleet  Command, 
1  cruiser  and  several  destroyers  were  at  sea.   A  periscope 
was  clearly  seen  west  of  Ochakov.   Two  or  3  ships  Dombarded  the  coast 
of  Mariupol  during  the  night  of  17  Jul.   Landing  attempt  s  were  re- 
pulsed. 

Cr&xi   Situation; 

During  the  night  of  17  Jul.  enemy  forces  supported  by 
naval  gunfire  attacked  Mariupol.   A  direct  hit  on  the  staff  build- 
ing of  the  Naval  Shore  Command,  Crimea  caused  damage.   Escort 
service  proceeded  according  to  plan. 

Special   Items; 

a.  The  4  naval  barges  for  operation  "Bluecher"  are  en  route  from 
Palermo  to  Piraeus  where  they  are  to  be  camouflaged  as  merchant 
ships.   From  Piraeus  they  are  to  proceed  to  Salonika  where  they  will 
be  held  in  readiness  for  their  transfer  to  the  Black  Sea.   The 
attempt  will  be  made  to  have  them  ready  for  transfer  on  25  Jul.  The 
Naval  Staff  informs  the  Armed  Forces  High  Command,  Operations  Staff, 
and  the  Army  General  Staff  about  the  above  with  the  reminder  that 
these  naval  barges  can  only  be  used  to  transport  the  52-ton  Russian 
tank  but  not  German  heavy  tanks,  because  they  are  too  wide, 

b.  If  the  operations  in  the  East  continue  to  progress  successfully 

it  will  become  necessary  to  commit  Axis  naval  forces  in  the  Caspian  i 

Sea.   The  Naval  Staff  therefore  is  investigating  all  possibilities 
and  is  making  the  necessary  preparations  to  be  able  to  transfer  Ger- 
man and  Italian  naval  vessels  from  the  Black  Sea  to  the  Caspian  Sea 
without  loss  of  time.  The  only  metbod  of  transfer  is  overland; 
therefore  only  small  vessels  can  be  considered.   The' 

German  Naval  Attache  in  Rome  is  thorei'ore  requested  to  check  with  the| 
Italian  Admiralty  whether  the  Italian  Navy  is  able  to  furnish  vessels 
for  the  Caspian  Sea  in  addition  to  the  Italian  submarine  chasers  and 
motor  boats  in  the  Black  Sea.   The  Italian  Admiral  attached  to  the 
Naval  Staff  has  been  informed  of  this  request. 

-Copy  of  corresponding  order  l/Skl  I  op  17396/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  XlVa. 


IX.   Situation  East  Asia 


Nothing  to  report. 


-253- 


CONFIDENTIAL 
18  Jul.  1942 

X.   Army  Situation 

1.  Russian  Front: 

Army  Group  A: 

The  southern  wing  at  the  Italian  Army  sector  has  started 
to -move  eastward  and  has  gained  10  to  15  km  of  terrain.   The  move- 
ments of  the  northern  wing  proceeded  according  to  plan.   Enemy 
withdrawals  in  southeasterly  and  easterly  direction  were  observed. 
Our  forces  broke  through  fortified  field  positions  east  of  Repnaya. 
The  outskirts  have  been  reached.   A  bridgehead  across  the  Likhaya 
has  been  established  near  Chernetsev. 

Army  Group  B : 

At  the  southern  wing  our  artillery  shelled  heavy  enemy 
rail  traffic  going  in  westerly  direction.   Hungarian  troops  repelled 
an  enemy  attack  near  Yaryv  and  reached  the  Don.  .The  situation  in 
front  of  Voronezh  remains  unchanged. 

Central  Army  Group: 

Partisans  were  fought  in  the  south.   The  pocket  south  of 
Byeloi  was  further  hemmed  in. 

Northern  Army  Group: 

Fighting  in  the  area  around  Staraya  Russa. 

2.  Finnish  Front: 

No   important   fighting  has  been  reported  from  16   Jul. 

3.  North  Africa: 

The  enemy  launched  no  heavy  attacks  during  the  night  of 
17  Jul.  and  on  18  Jul.   Several  weak  thrusts  were  repulsed.   Our 
positions  are  being  strengthened  with  the  aid  of  old  fortifications. 
The  supply  situation  of  the  Panzer  Army  is  critical  due  to  the  loss 
of  vessels  BROOK  and  STURLA  and  the  destruction  of  the  fuel  dump  in 
Tobruk. 


-859- 


CONFIDENTIAL 

19  Jul.  1942 

Items  of  Political  Importance 

France : 

According  to  news  agency  reports,  the  Vichy  Ambassador  in  Washington 
was  not  received  by  Under-Secretary  of  State  Welles  but  by  a  sub- 
ordinate official  when  he  called  to  discuss  Franco -American  rela- 
tions, the  question  of  the  vessels  in  Alexandria,  and  the  French  pro- 
test against  the  de  facto  relations  between  the  U.S.  and  De  Gaulle. 
Washington  diplomatic  circles  consider  this  a  deliberate  affront  to  ■ 
Laval.   Official  circles  in  Washington  are  inclined  to  regard 
Petain's  order  to  the  French  warships  in  Alexandria  to  defend  them- 
selves against  the  British  as  an  open  challenge. 

Great  Britain: 

Minister  of  Production  Lyttleton  delivered  a  speech  in  which  he 
called  attention  to  the  serious  situation  in  the  Soviet  Union.   He 
declared  that  Great  Britain  has  met  all  contractual  obligations  for 
the  delivery  of  tanks  and  planes,  even  though  the  convoys  had  to  run 
the  German  gantlet  in  the  Arctic  Ocean,   In  little  over  9  months 
more  than  2,000  tanks  were  shipped  to  Russia,  and  up  to  the  end  of 
May,  11^  more  planes  were  shipped  than  had  been  promised.   If  the 
Germans  should  succeed  in  conquering  the  Caucasian  oil  fields,  they 
would  be  in  a  position  to  wage  a  long  war.   The  main  Russian  forces 
then  would  be  cut  off  from  this  oil,  while  Great  Britain  would  face 
a  threat  to  her  own  oil  supplies  in  Iran  and  Iraq.  At  the  same  time 
the  Atlantic  supply  routes  are  being  threatened  by  German  submarines 
and  new  dangers  may  arise  at  any  moment  in  the  Eastern  Hemisphere 
and  in  the  Pacific.   Lyttleton  expressed  the  hope  that  the  Russian 
defensive  would  develop  into  a  counter-offensive.  The  next  80  days, 
however,  will  be  the  most  difficult  yet. 

The  extent  to  which  the  decisive  importance  of  the  Battle  of  the 
Atlantic  has  been  recognized  by  the  British  can  be  seen  from  the 
fact  that  today,  on  Sunday,  all  churches  in  Great  Britain  are  hold- 
ing special  services 'for  the  Royal  Navy  and  the  Merchant  Marine.  The 
minister  in  St.  Paul's  Cathedral  declared  that  "not  only  does 
victory  depend  on  this  silent  battle  of  the  seas",  which  he  called 
much  more  deadly  than  the  fighting  in  Russia  and  Egypt,  "but  also  the 
prospect  for  the  survival  of  Great  Britain  as  a  nation.   The  future 
of  the  whole  world  depends  on  our  seamen."  A  message  from  the  King 
expressed  the  gratitude  of  the  Empire  to  the  Royal  Navy  and  the 
Merchant  Marine  for  their  bravery.   The  entire  press  is  writing  in 
the  same  tenor,  indicating  Great  Britain's  most  vulnerable 
spot. 

U.S.S.R. : 

The  Japanese  press  reports  from  Kuibyshev  that  the  internal  situa- 
tion of  the  Soviet  Union  is  difficult,  that  the  living  standard  has 
declined,  and  that  there  is  danger  of  inflation.   Chaotic  conditions 
and  fantastic  prices  are  said  to  prevail  oh  the  so-called  open 

market . 

Brazil: 

High  officials  have  been  dismissed  because  of  their  opposition  to  the 
government '  s  foreign  policy. 


-260- 


19  Jul.  1942 

Special  Items: 

I.  Pop  the  information  of  a  very  restricted  circle,  the  Armed 
Forces  High  Command,  Operations  Staff,  Navy  has  forwarded  an  ab- 
stract of  the  Fuehrer  directive  for  the  continuation  of  operations 
on  the  Eastern  Front.   For  security  reasons  a  copy  will  not  be  en- 
tered in  War  Diary,  Part  E,  File  "Barbarossa  II"  until  a  later 
date. 

Of  importance  as  far  as  the  Navy  is  concerned  is  the  fact  that  op- 
eration "Bluecher"  has  been  cancelled. 

II.  Upon  the  suggestion  of  the  Naval  Staff  concerning  the  escape 
of  French  naval  forces  in  Alexandria  (see  War  Diary  15  Jul.),  the 
Chief  of  Staff,  Armed  Forces  High  Command  has  decided  the  follow- 
ing: 

1.  There  will  be  no  further  negotiations  to  make  the  Italians 
change  their  minds. 

2.  In  answer  to  the  French  inquiry  no  definite  port  at  all 
is  to  be  indicated  for  the  time  being.   By  arrangement  with  the 
Italians  the  French  are  to  be  told  in  a  very  general  way  that  they 
can  count  on  appropriate  temporary  refuge  and  supplies  in  the  area 
of  southern  Greece  or  the  Aegean  Sea  in  the  event  their  forces  in 
Alexandria  do  escape  and  are  unable  to  reach  Bisertf  ■>■"  another 
French  harbor. 

The  French  are  to  be  told  in  general  to  head  west,  and  that  more 
definite  information  about  the  port  of  destination  and  the  course 
to  be  followed  will  be  supplied  then  in  due  time  whenever  the  need 
arises  according  to  prevailing. circumstances. 

3.  The  Armistice  Commission,  by  arrangement  with  the  Naval 
Staff  Operations  Division,  is  preparing  measures  enabling  us,  if 
necessary,  to  direct  the  French  ships  to  Piraeus  via  the  passage 
northwest  of  Crete  without  previously  consulting  the  It  lians. 

See  Telegram  2030  for  a  copy  of  the  corresponding  directive  to  the 
Naval  Staff,  the  German  General  at  the  Headquarters  of  the  Italian 
Armed  Forces,  and  the  Armistice  Commission. 

III.  The  Commanding  Admiral,  Submarines  submitted  a  copy  of  his  re- 
port to  the  Fuehrer  on  14  Hay  1942  for  entry  in  the  War  Diary  of 
the  Naval  Staff.   The  entry  as  per  1/Skl  1375/42  Gkdos.  Chefs,  will 
be  combined  with  the  minutes  of  the  Commander  in  Chief,  Navy  on  the 
latter' s  report  to  the  Fuehrer  on  14  Hay  in  V.'ar  Diary,  Part  C, 
Vol.  VII. 

IV.  The  report  by  the  PT  Boats  Section,  Naval  Staff  Quartermaster 
Division  on  "Construction  Activity  in  1942"  which  v/as  rendered  on 
the  occasion  of  the  conference  of  the  chiefs  of  staff  in  July  1942 
does  not  contain  anything  basically  new,  but  does  once  again 
demonstrate  the  necessity  for  continuity  in  building  up  the  fleet. 
Copy  as  per  l/Skl  17511/42  Gkdos.  is  in  'war  Diary,  Part  B,  Vol.  V. 


-261- 


CONFIDENT! 
19  Jul.  1942 

Situation  19  Jul.  1942, 
I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

No  reports  received. 

2.  Own  Situation: 

No  reports  have  been  received  from  Gernan  ships  in 
foreign  waters. 

Information  about  the  enemy  situation  via  Radiogram  2628.- 


II.   Situation  West  Area 

1.  Enemy  Situation; 

In  the  afternoon  air  reconnaissance  located  12  steamers 
west  of  the  Isle  of  Wight  and  18  steamers  near  Trevose.  Head. 

Radio  intelligence  detected  5  ships  in  th«  area  of  Portsmouth  and  4 
naval  vessels  at  sea. 

Special  Items : 

According  to  Group  West's  estimate  of  enemy  mine-laying  activity  in 
the  west  area  during  the  month  of  June,  the  enemy  concentrated  his 
ground  mines  at  the  narrowest  part  of  the  Channel  during  the  first 
half  of  the  month.   Fewer  mines  were  laid  off  submarine  bases  along 
the  Atlantic  coast.   For  the  first  time  a  field  of  moored  mines  was 
laid  in  the  southern  part  of  the  Bay  of  Biscay  by  a  submarine.   A 
similar  mine  field  was  observed  northwest  of  Calais.   Neither  of 
the  two  mine  fields  interferes  with  German  shipping.   During  the 
second  half  of  June  the  focal  point  of  ground  mine  operations 
shifted  to  the  west  coast.   Planes  dropped  an  unusually  large  num- 
ber of  mines  off  the  submarine  bases,  with  the  exception  of  Brest. 
Troop  transport  routes  to  lie  de  Grolx  and  Belle  lie  were  recog- 
nized by  the  enemy  and  mined. 

The  suspicion  is  growing  that  the  enemy  is  again  using  ground  mines 
which  are  detonated  acoustically.   No  proof  of  this  has  yet  been 
established.   The  Group  also  expects  the  enemy  to  lay  moored  aerial 
mines  in  the  future.   The  Group  concludes,  undoubtedly  correctly, 
that  no  definite  conclusion  can  be  reached  on  enemy  landing  inten- 
tions on  the  basis  of  mine-laying  activity  during  the  above  perio-i. 

2.  Own  Situation; 

Atlantic  Coast; 

Strong  enemy  fighter  forces  over  the  Brest  area  at  noon. 

La  Pallice  is  closed  because  of  mines.   Code  name  for  Japanese  sub- 
marine I  "30"  to  be  used  in  communications  between  the  Naval  Staff, 
Group  West,  and  the  Commanding  Admiral,  Submarines  is  "Kirsch- 
bluete". 


-262- 


CONFIDENTIAL 
19  Jul.  1942 

Mine -sweeping  and  convoy  activity  according  to  plan.   Two  mines 
were  swept. 

Channel  Coast t 

In  addition  to  the  2  patrol  vessels  which  had  been  at- 
tacked between  Cherbourg  and  Guernsey  (see  War  Diary,  18  Jul.)  and 
which,  according  to  a  correction  of  the  previous  report,  were  un- 
escorted, 2  harbor  defense  vessels  were  also  attacked  by  12  Spit- 
fires on  18  Jul.   One  of  these  had  to  be  towed  into  Alderney  and 
beached. 

At  noon  strong  enemy  air  forces  (50  Spitfires)  attacked  vessels  en- 
gaged in  a  submarine  chase  and  caused  heavy  personnel  losses  aboard 
submarine  chaser  UJ  "1402".   During  the  afternoon  25  Boston  bombers 
escorted  by  fighters  were  over  the  Nieuport  area  and  an  equally 
strong  force  was  over  the  Somme  estuary  and  the  Boulogne  area.   No 
damage  has  been  reoorted. 

Mine  operations  "Reseda"  and  "Rhein"  will  be  carried  out  during  the 
night  of  19  Jul. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation: 

Air  reconnaissance  observed  heavy  convoy  traffic  along  the 
east  coast  of  England.   94  steamers  were  counted  in  3  convoys  be- 
tween 1200  and  1900. 

Own  Situation: 

One  ground  mine  each  was  swept  near  Borkum  and  Wangeroog. 

Convoy  and  mine-sweeping  activities  did  not  take  place  because  of 
bad  weather.   The  patrol  positions  off  the  Dutch  coast  were  not 
occupied. 

2.  Norway: 

The  ECK0LDT  is  transferring  from  Trondheim  to  Narvik.   An 
enemy  air  raid  on  Ilonningsvaag  is  reported  from  17  Jul.,  enemy  air 
activity  over  Kirkenes  and  Banak  is  reported  from  18  Jul.   On  19 
Jul.  another  air  raid  on  Honningsvaag  and  air  activity  over  the 
area  of  Stavanger.   Minor  damage  in  Honningsvaag.   Five  of  the  at- 
tacking enemy  planes  were  shot  down  over  Banak. 

3.  Arctic  Ocean: 

Enemy  Situation: 

Radio  intelligence  detected  a  British  ship  north  of  Kola 
around  1500.   She  seemed  to  be  coming  from  Gorlo  Strait.   The 
supply  situation  of  the  signal  stations  in  the  Arctic  Ocean  area 
seems  to  be  difficult  as  far  as  bread  and  clothing  are  concerned. 


-263- 


CONFIDENTIAL 
19  Jul.  1942 

Own  Situation: 

The  4  submarines  en  route  to  their  positions  have  re- 
ported passing  69°N.   Submarine  U  '*601M  has  been  ordered  to  patrol 
.  .  ochkin  Strait  where  4  steamers  and  3  patrol  vessels  have  been 
reported. 

Special  Items : 

The  Admiral,  Arctic  Ocean  reports  on  the  valuable  data  concerning 
convoy  PQ  "17"  which  were  picked  up  from  the  PAULUS  POTTER  by  sub- 
marine U  "255'*,  which  include  the  following:   sailing  instructions 
for  the  convoy  and  for  scattered  ships,  directions  for  approaching 
various  harbors  in  the  Arctic  Ocean,  as  well  as  the  exact  composi- 
tion of  the  convoy  with  the  position  of  the  various  steamers. 
Captured  radio  data  and  instructions  have  been  sent  by  courier  to 
the  Chief,  Communications  Division,  Naval  Staff.   Copy  of  telegram 
to  this  effect  as  per  l/Skl  17652/42  Gkdos.  in  file  "Roesselsprung". 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

Radio  intelligence  reports  that  an  unidentified  vessel 
v»o.s  ordered  to  watch  out  for  a  submarine  periscope  north  of 
Demantstein  Bank;  2  other  ships  were  ordered  to  keep  a  special 
lookout  for  shipwrecked  persons. 

2.  Own  Situation: 

Convoy  and  escort  service  proceeded  according  to  plan  in 
the  area  of  the  Commanding  Admiral,  Defenses,  Baltic  Sea.   The  sit- 
uation report  of  the  Commander,  Mine  sweepers,  Baltic  Sea  of  1600 
does  not  contain  any  important  news.   (See  Telegram  1650.) 

Group  North  reports  its  estimate  of  the  Baltic  Sea  situation  with 
regard  to  submarine  danger  and  anti-submarine  measures  as  per  re- 
quest of  the  Naval  Staff. 

roup  estimates  that  11  enemy  submarines  have  been  destroyed, 
6  more  have  probably  been  destroyed  and  that  another  6  have 
aged.   One  enemy  submarine  is  suspected  off  Rixhoeft  and 
?  ^rbe  Strait.   The  submarine  danger  has  been  exaggerated  as 
.  e  result  of  a  "submarine  psychosis'*.   The  enemy  so  far  succeeded 
in  sinking  5  German,  3  Swedish,  1  Danish,  and  1  Finnish  steamer,  a 
;otal  of  16,368  GRT. 

As  far  as  the  war  on  submarines  is  concerned,  the  Group  asks  that  in 
addition  to  its  own  measures  the  Swedish  Navy  be  asked  to  take 
charge  of  submarine  chasing  in  the  non-mined  area  between  Utlaengan 
and  Oeland  in  order  to  facilitate  the  job  of  the  forces  of  the 
Commander,  Mine  Sweepers.   For  further  measures  see  copy  of  the 
corresponding  telegram  from  Group  North  as  per  l/Skl  17625/42  Gkdos. 
in  War  Diary,  Part  C,  Vol.   III. 

The  Naval  Staff  has  no  comments  to  make  on  measures  taken  or  planned 
by  the  Group.   The  request  to  approach  the  Sv/edish  Navy  to  take 
over  the  submarine  chase  will  be  investigated. 


-264- 


CONFIDENTIAL 
19    Jul.    1942 

V.        Submarine  Warfare 

1.  Enemy  Situation; 

Radio  intelligence  reports  a  plane  hovering  over  a  sub- 
marine about  200  miles  north  of  Ferrol.   A  British  ship  was  located 
about  320  miles  northwest  of  Cape  Vilano;  other  ships  were  located 
300  miles  west  and  180  miles  southwest  of  Rockall  Bank;  a  U.S, 
cruiser  was  located  275  miles  west  of  Porcupine  Bank.   Convoy  HX 
198  was  in  quadrant  AK  6380  and  passed  points  54°  25'  N,  43°  25'  W, 
and  56°  00'  N,  35°  30'  W. 

According  to  radio  intelligence,  the  American  submarine  P  "5"  was 
off  Long  Island  on  15  Jul.  in  quadrant  CA  2930,  course  unknown. 

The  Naval  Attache  in  Buenos  Aires  reports  that  all  ships  leaving 
La  Plata  which  are  not  en  route  to  the  UiS.  are  calling  at  Free- 
town.  Ships  with  U.S.  ports  as  their  destination  are  escorted  to 
Rio  de  Janeiro  by  a  U.S.  cruiser  or  2  destroyers,  and  from  there  to 
the  Caribbean  Sea  by  planes.   Ships  making  over  15  knots  are 
supposed  to  be  equipped  with  devices  for  throwing  depth  charges. 

2.  Own  Situation: 

In  the  North  Atlantic,  Group  "Wolf"  was  sent  against  a 
westbound  convoy  which  radio  intelligence  reported  in  quadrant  AK. 

Contact  was  lost  for  a  while  with  the  convoy  north  of  the  Azores, 
but  was  reestablished  during  the  afternoon  only  to  be  lost  again 
in  the  evening.   The  operation  against  the  convoy  continues.   Hav- 
ing fired  quadruple  and  tv/in  spreads  at  the  convoy,  submarine 
U  "108**  heard  5  torpedo  detonations  but  was  unable  to  observe  any- 
thing else  since  she  was  driven  off. 

In  the  western  Atlantic,  submarine  U  "332"  sank  the  steamer 
LE0NIDAS  M  (4,573  GRT)  in  quadrant  CC  8279.   She  was  loaded  with 
manganese  ore  and  was  en  route  from  Rio  de  Janeiro  to  Sidney. 

In  the  West  Indies  area  submarine  U  "575"  sank  the  tanker  SAN 
GASPAR  (12,910  GRT)  in  quadrant  EE  7778.   The  tanker  exploded  with 
her  full  load.   The  submarine  also'  sank  2  cargo  sailing  vessels. 

Submarine  U  "160"  sank  a  steamer  of  the  CITY  OF  PRAET0RIA  class 
(9,000  GRT)  in  quadrant  ED  9865,  while  submarine  U  "84"  sank  a 
steamer  of  6,500  GRT  in  the  western  exit  of  the  Florida  Strait. 

Submarine  U  "66"  laid  mines  near  Trinidad  as  ordered.  For  further 
reports  see  supplementary  submarine  situation  report  in  War  Diary, 
Part  B,  Vol.  IV. 

The  Japanese  submarine  I  "30"  has  been  informed  that  she  must  now 
expect  to  encounter  German  and  Italian  submarines  along  her  route. 


VI.  Aerial  Warfare 

1.   British  Isles  and  Vicinity: 

Armed  daylight  reconnaissance  was  flown  against  the 
coast  of,  England  and  enemy  convoys.   The  attacks  remained  without 


-265- 


CONFIDENTIAL 
19  Jul.  1942 

success.   During  the  night  of  19  Jul.,  40  enemy  planes  raided 
Germany.   Focal  points  of  attack  were  Bremen  and  Oldenburg. 

2.  Mediterranean  Theater: 

The  raids  on  Malta  continued.   Several  probably  unsuc- 
cessful raids  were  carried  out  against  the  mine-laying  cruiser 
that  had  left  Valletta. 

The  Africa  Panzer  Army  was  given  strong  support. 

3.  Eastern  Front: 

While  giving  support  to  our  attacking  armies,  our  planes 
shot  down  at  least  55  enemy  planes.   This  includes  17  planes  downed 
in  the  area  of  the  5th  Air  Force. 

Rosta  and  Murmashi  in  the  Arctic  Ocean  were  attacked  with  observed 
effect. 

A  hit  was  scored  on  a  small  steamer  of  500  GRT  in  the  Gulf  of  Fin- 
land. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation: 

Medi  t erranean : 

The  cruiser  EMERALD  has  arrived  in  Gibraltar  from  the 
west.   The  cruiser  which  was  in  Valletta  presumably  left  port  in  the 
afternoon  of  18  Jul.  and  passed  the  Strait  of  Sicily  heading  west 
during  the  night  of  10  Jul.   She  first  was  discovered  by  German 
reconnaissance  planes  at  0906,  northeast  of  Cape  Bougaroun.   She 
was  proceeding  on  a  westerly  course  and  was  shadowed  until  1625. 
She  was  last  reported  55  miles  northeast  of  Algiers. 

In  the  eastern  Mediterranean  only  a  little  shipping  was  observed 
in  the  Alexandria -Haifa  area.   A  German  submarine  sighted  a  large 
escorted  troop  transport  on  a  southeasterly  course  17  miles  off 
Haifa.   Photo  reconnaissance  of  the  harbor  of  Suez  revealed  one 
cruiser,  apparently  of  the  C  class;  one  monitor;  2  destroyers,  one 
of  them  Greek;  55  merchant  ships  with  a  total  of  about  355,000  GRT, 
including  a  large  passenger  steamer  of  the  QUEEN  ELIZABETH  class; 
and  8  tankers  with  a  total  of  about  27,000  GRT. 

2.  Own  Situation: 

Mediterranean ; 

PT  boat  S  "61"  transferred  from  Augusta  to  Palermo;  PT 
boats  S  "35"  and  S  "3 6"  transferred  from  Palermo  to  Augusta. 

18  Italian  submarines  were  at  sea  in  the  Mediterranean. 

Due  to  the  order  limiting  preparations  for  operation  "Bluecher",  the 
Armed  Forces  High  Command,  Operations  Staff  has  again  permitted 
that  the  4  naval  barges  equipped  for  transporting  very  heavy  tunics 


-266- 


CONFIDENTIAL 


19  Jul.  1942 


be  used  in  the  Mediterranean  where  they  still  are  situated.  (See 
Telegram  1430. ) 

The  Naval  Staff  has  inquired  from  the  German  Naval  Command,  Italy 
what  intentions  the  latter  has  with  regard  to  laying  mine  fields, 
for  the  temporary  protection  of  coastal  waters  off  the  supply  ports. 

(See  Telegram  1818.) 

3.  Transport  of  Supplies  to  North  Africa; 

Seven  German  naval  barges  arrived  in  Benghazi  on  the  even- 
ing of  18  Jul.   Eleven  Italian  naval  barges  are  en  route  from  Suda 
to  Sidi  Abaida.   Sixteen  auxiliary  sailing  vessels  have  been  put 
into  shuttle  service  on  the  route-between  Crete  and  Africa.  No  re- 
port has  as  yet  been  received  about  the  arrival  of  the  motor  ship 
LERICI  in  Benghazi. 

Since  Marsa  Matruh  has  repeatedly  been  shelled  by  enemy  destroyers 
and  is  subject  to  constant  air  raids,  the  Admiral,  Aegean  Sea  has 
requested  the  Chief  Quartermaster,  Rome  not  to  have  ships  call  at 
this  port  in  view  of  the  fact  that  lost  shipping  space  cannot  be 
replaced. 

The  Armed  Forces  High  Command,  Operations  Staff  issued  a  directive 
that  the  Armed  Forces  High  Command  must  be  kept  fully  informed 
about  the  current  status  of  personnel  and  supply  shipments  and  the 
reinforcements  ordered  in  North  Africa.   This  order  does  not  con- 
cern the  Naval  Staff.   Copy  of  the  directive  as  per  l/Skl  17627/42 
Gkdos.  in  War  Diary,  Part  C,  Vol.  XIV. 

4.  Area  Naval  Group  South: 
Aegean  Sea; 

Naval  situation  unchanged. 

The  Admiral,  Aegean  Sea  reports  that  there  is  no  need  for  trans- 
ferring a  squadron  of  the  125th  Reconnaissance  Group.   The  Suda 
Arado  planes  (originally  three)  have  already  been  reinforced  so  as 
to  constitute  a  squadron.   If  many  invasions  are  to  be  flown  there 
always  is  the  possibility  of  temporarily  drawing  forces  from  the 
126th  Reconnaissance  Group.   The  Naval  Staff  will  not  interfere 
with  dispositions  of  the  Air  Force. 

Black  Sea; 

Enemy  Situation; 

An  increase  has  been  noted  in  the  movements  of  surface 
forces  In  the  northeastern  Black  Sea.   Few  submarine  movements. 

Own  Situation? 

Harbor  and  railroad  installations  at  Kamysh  Burun  were 
shelled  in  the  morning  of  18  Jul.  As  a  result  of  an  enemy  air  raid 
and  shelling  of  Taganrog  during  the  night  of  16  Jul.,  one  ship  of 
the  Loeper  Flotilla  sank,  while  another  one  was  badly  damaged. 

Mine-sweeping  activity  and  convoy  service  proceeded  according  to 
plan  and  uneventfully. 


-267- 


CONFIDENTIAL 
19    Jul.    1942 

VIII.  Situation' East  Asia 
No  reports  received. 


IX.  Army  Situation 

1.  Russian  Front; 

Army  Group  A; 

The    left  wing  of  our   forces  was   able  to   advance   15   to  20 
km  to  the    southeast. 

Army  Group  Bt 

After  crossing  the  Donets  southeast  of  Kamensk,  our  forces 
reached  Federovski  in  the  course  of  their  further  advance  to  the 
southwest.   They  succeeded  in  occupying  Konstantinovskaya  and 
Tsymlyanskaya,  key  points  for  crossing  the  Don  to  the  south.  The 
troops  moving  along  the  Don  reached  the  Tsutskan  sector.   The  enemy 
has  begun  his  expected  counterattack  at  the  northern  flank  of  the 
Voronezh  bridgehead.  The  attack  was  repulsed  in  heavy  fighting  all 
along  the  front. 

Central  Army  Group: 

No  local  fighting. 

Northern  Army  Group ; 

Enemy  attacks  launched  against  the  II  Army  Corps  from 
three  sides  were  repulsed.   Fighting  directed  against  the  land  atrip 
from  the  north  is  still  in  progress. 

2.  Finnish  Front ; 

No  important  fighting  to  report. 

3.  North  Africa; 

The  enemy  launched  several  reconnaissance  thrusts  at  the 
southern  and  central  sectors  which  were  repulsed.  He  reinforced  his 
positions  at  the  northern  sector  by  mine  fields  and  barbed  wire. 
The -Air  Force  carried  out  successful  attacks  against "enemy  tank 
and  motor  vehicle  concentrations. 

4HHHHHHMHHHHHMHKHHHHHHHHH* 


-268- 


COIil-'IDENTIAL 
20  Jul.  1942 

It ens  of  Political  Importance 

Great  Britain: 

On  the  basis  of  observations  on  the  present  situation  in  Great  Britain 
from  a  reliable  French  agent,  a  diplomatic  source  reports  that  a  de- 
cided social  evolution  is  in  progress  in  that  country  supported  by  the 
trade  unions  and  by  wide  church  circles.   There  is  no  danger  of  the 
country  becoming  communistic.   In  spite  of  all  internal  political  dif- 
ferences, the  determination  to  continue  the  war  prevails  among  all 
classes.   Even  a  collapse  of  the  British  Hediterranran  front  would  not 
change  the  picture.   While  the  military  situation  in  the  East  and 
Southeast  is  being  viewed  with  increasing  concern,  the  problem  of 
shipping  space  dominates  all  other  problems.  The  fact  that  all  classes 
of  the  British  population  are  firmly  convinced  of  final  victory  is  con- 
firmed also  by  the  statements  of  Portuguese  officers  returning  from 
England.   For  details  see  Political  Review  Ho .  167,  paragraph  2d. 

India: 

According  to  Swedish  reports,  London  Government  circles  are  closely 
watching  the  developments  in  India.   It  cannot  be  doubted  that  Great 
Britain  will  take  the  most  vigorous  measures  If  India's  defenses  are 
jeopardized  by  the  attitude  of  the  India  Congress.   British  concessions 
to  the  Congress  Party  are  said  to  be  out  of  the  question,  since  the 
offer  made  by  Cripps  are  Great  Britain's  last  word. 

Finland: 

Finland  regards  the  break  of  U.S.  consular  relations  as  unfair  pressure 
According  to  Swedish  press  reports,  Helsinki  expects  a  Government 
crisis  in  connection  with  the  Karelian  supply  situation  and  the  new 
Government  tax  progran. 


Conference  on  the  Situation  with  the  Chief,  Haval  Staff 

I.  The  Chief,  Communications  Division,  llaval  Staff  reports  about  the 
performance  of  the  Naval  Signal  Battalion  since  its  employment  in  the 
southeast  area  6  months  ago.   It  laid  a  total  of  3,400  km  of  wire  com- 
munications.  It  is  planned  to  use  a  motorized  radio  company  with  very 
heavy  equipment.   The  report  also  contains  favorable  experiences  made 
with  shipborne  radio  intelligence  detachments  during  operation  "Roes- 
selsprung"  and  aboard  the  PRINZ  EUGEH. 

II.  The  Deputy  to  the  Chief,  Quartermaster  Division,  Naval  Staff  re- 
ports about  the  inspection  trip  to  the  Crimea  of  the  Chief  of  the 
Fleet  Branch,  Quartermaster  Division,  Naval  Staff.   The  most  suitable 
location  as  a  base  for  light  combat  forces  is  at  Ivanbaba.   The  in- 
stallation of  a  captured  20.. 3  cm  battery  is  recommended  for  Sevastopol, 
so  that  the  28  cm  battery  "Tirpitz"  which  was  originally  planned  for 
this  purpose  could  be  left  at  Constanta;  this  appears  desirable  for 
political  reasons  with  regard  to  the  head  of  the  government,  Antonescu. 

The  Chief  of  Staff  of  the  Naval  Staff  points  to  future  German  interests 
in  the  Crimea.  Since  the  Black  Sea  will  be  in  the  German  sphere  of  in- 
fluence, the  Crimean  bases  will  play  an  important  part. 


-fe63- 


CONFIDENTIAL 


20  Jul.  1942 


t 


III.  The  Ilaval  Staff  Operations  Division,  Foreign  Affairs  section  re- 
ports the  decision  of  the  Chief  of  Staff,  Arned  Forces  High  Command 
about  the  Ilaval  Staff's  proposal  for  a  reply  to  the  French  delegation 
regarding  the  sailing  of  the  shins  at  Alexandria.   See  War  Diary  of  l£ 
Jul. 

A  report  is  also  made  on  the  Japanese  refusal  to  agree  to  the  estab- 
lishment of  a  naval  office  at  Singapore.  For  details  see  War  Diary, 
Part  C,  Vol.  VIII. 

IV.  The  Chief  of  the  Ilaval  Intelligence  Division  reports  that  the 
British  and  the  Japanese  have  agreed  to  exchange  about  1800  non- 
military  war  prisoners  at  Lourenco  Marques;  1  Japanese  and  2  British 
steamers  are  to  be  used  for  this  purpose. 

In  a  Very  Restricted  Circle: 

V.  The  Chief  of  Operations  Branch,  Ilaval  Staff  Operations  Division 
reports : 

a.  Group  north  has  decided  that  in  accordance  with  the  Fleet 
Command's  proposal,  the  KOELN  will  not  participate  in  operation  "Lis- 
palast". 

b.  Operation  "Y/iesengrund"  will  not  be  executed  in  the  coming 
fall  according  to  the  decision  of  the  Operations  Staff,  Armed  Forces 
High  Command.   Thus,  the  2  landing  flotillas  of  60  barges  each  which 
had  been  requested  for  this  purpose  will  not  be  needed  until  the 
spring  of  1943.   The  Chief  of  Operations  Division,  Ilaval  Staff  has  in- 
formed the  Quartermaster  Division,  Naval  Staff  to  this  effect. 

c.  On  17  Jul.,  the  Permanent  Representative  of  the  Commander  in 
Chief,  Navy  at  the  Fuehrer  Headquarters  supplemented  his  report  to  the 
Chief  of  Staff,  Ilaval  Staff  concerning  the  operations  in  Lapland  as 
follows: 

"Supplement  to  yesterday's  notification  concerning  the  Lapland  opera- 
tions:  The  Fuehrer  reemphasizes  the  decisive  importance  of  holding 
our  position  in  northern  Finland  in  view  of  its  nickel  mines,  which  are 
the  only  ones  within  our  reach.   Jodl  reported  that  the  Commanding 

General,  Lapland  feels  no  concern  in  this  respect  and  can  see  no  reason  f 

for  any  apprehension,  since  the  difficulties  of  terrain  offer  no 
chances  for  successful  operations  either  to  Dietl  or  to  the  Russians. 
The  Fuehrer  did  not  agree  with  this  argument,  because  the  possession 
of  the  nickel  mines  is  of  so  decisive  importance  that  the  greatest  sac- 
rifice would  be  well  worth  while  to  Russians  and  British.  He  considers 
this  a  weak  spot,,   Jodl  replied  that  the  Rybachi  Peninsula  cannot  be 
seized  before  I.larch,  if  at  all;  in  order  to  hold  the  peninsula,  we 
would  have  to  build  defenses  and  we  would  need  a  summer  ahead  of  us  tc 
complete  them.   For  this  reason,  Jodl  suggested  that  the  only  feasible 
operation  is  a  thrust  toward  Kandalaksha  in  order  to  cut  the  Murman 
railroad.   The  Fuehrer  pointed  out  that  this  would  make  sense  only  if 
at  the  same  time  the  Russians  could  be  prevented  from  strengthening 
their  position  at  Murmansk,  that  is,  if  the  flow  of  supplies  by  sea 
could  be  cut  also  during  the  winter.   Jodl  indicated  that  this  might 
be  accomplished  during  the  winter  by  mines.   The  Fuehrer  wants  this 
problem  examined.   In  my  opinion  it  v/ould  be  possible  if  all  prepara- 
tions are  made  in  time.   Jodl  believes  that  it  would  be  advisable  for 
the  Naval  Staff  to  work  out  such  a  plan  for  the  Fuehrer's  information. 


-fe7j>- 


CONFIDENTIAL 
20  Jul.  1942 

The  Chief  of  the  Operations  Division,  Naval  Staff  issues  appropriate 
orders  with  regard  to  the  mine-laying  operation. 

In  the  sane  report,  Vice  Admiral  Krancke  writes  as  follows: 

"A  statement  by  Jodl  makes  me  believe  that  in  view  of  the  success  of 
the  submarine  and  air  force  operation  against  convoy  PQ,  17  the  Fuehrer 
v/ill  object  to  the  use  of  the  large  ships  more  than  before  until  the 
aircraft  carriers  are  ready  for  operations.   On  the  other  hand,  the 
Fuehrer  was  glad  to  learn  that  the  KOELN  has  arrived  at  Trondhein.   He: 
evidently  wants  io  keep  the  ship  there  only  for  defensive  assignments . 
In  my  opinion,  this  is  hard  on  the  crews,  but  I  doubt  that  he  can  be 
made  to  change  his  mind." 

For  report  see  l/Skl  I  a  1388/42  Gkdos.  Chefs,  in  VJar  Diary,  File 
"Barbarossa  II". 

d.  A  report  is  made  about  the  Fuehrer's  directive  to  continue 
the  operations  in  the  east  and  to  send  at  least  5  landing  barges 
through  the  Kerch  Strait  for  use  in  the  supply  service  on  the  Don 
River.   (See  War  Diary  of  19  Jul.) 

e.  A  report  is  made  about  the  account  of  the  Commanding  General 
Armed  Forces,  South  to  the  Operations  Staff,  Armed  Forces  High  Command 
on  18  Jul.;  the  daily  situation  report  of  the  Panzer  Army,  North 
Africa;  and  analysis  of  the  situation  by  the  Army  General  Staff,  In- 
telligence Division,  West  of  16  Jul.  (see  War  Diary  of  17  Jul.  and  18 
Jul.).   On  15  Jul.  the  High  Command,  Panzer  Army,  Africa  reported  to 
the  Operations  Staff,  Armed  Forces  High  Command  as  follows: 

"The  situation  at  the  Alamein  front  became  critical  on  15  Jul.  due  to 
the  fact  that  the  bulk  of  the  Italian  'Brescia'  and  'Pavia'  brigades 
were  eliminated,  i.e.  they  were  captured  or  deserted  their  positions 
during  an  enemy  night  attack  by  approximately  1  brigade  with  a  few 
armored  cars  and  tanks. 

"Italian  troops  have  lately  repeatedly  abandoned  their  positions  under 
artillery  fire  and  could  not  be  brought  to  resist  the  enemy,  even 
through  the  efforts  of  their  officers. 

"Due  to  these  symptoms,  I  feel  compelled  urgently  to  request  that  the 
Panzer  Army  be  speedily  reinforced  with  additional  German  forces,  par- 
ticularly rifle  and  anti-tank  units." 


Special  Item: 

Groups  West  and  North  are  informed  that  standard  mines  type  F  have  been 
released  for  operational  use  according  to  a  report  of  16  Jul.  by  the 
Underwater   Obstacles  Branch  of  the  Naval  Ordnance  Division.   See 
l/Skl  I  E  17532/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  VI. 


1=2*1- 


COii.-'iDE.iTTAL 
20  Jul.-  1042 

Situation  20  Jul.  1242 


I.    War  in  Foreign  Waters 


1.    Enemy  Situation: 


a 


Jndian  Ocean: 

A  Greek  sailor  from  a  stearver  sunk  in  the  Mozambique  Stra: 
asserted  that  4  Japanese  subnarinos  are  ooersting  between  Porto 
Amelia  and  Angoche  Island,  using  a  forner  British-Indian  steamer  as 
base.   Between  7  and  10  Jul.,  1  American  10,000  GRT  vessel  and  1 
Swedish  ship  uere   allegedly  sunk  in  the  I.Ioma-1'eraba  area.   On  11  Jul., 
4  ships  with  3,000  U.S.  troops  and  tanks  for  Egypt  passed  Capetown. 

At  0933  radio  monitoring  intercepted  a  message  from  the  British  motor 
ship  INDUS  (5,200  GRT )  that  she  had  been  fired  on  by  a  battleship, 
presumably  a  raider,  at  26°  44'  S,  82°  50'  E.   This  report  ray  refer 
to  our  operations  in  that  sector. 

2.    Own  Situation: 

Evaluation  of  the  DOGGERBAI~K '  s  war  dis^y  proves  that  the 
ship's  operations  were  carried  out  level-headedly,  with  courage  and 
determination;  the  Naval  Staff  expresses  appreciation  to  the  DOGGER- 
BANK  by  Radiogram  1302. 

The  Naval  Attache  at  Tokyo  was  instructed  on  10  Jul.  to  arrange  for  war 
prisoners  who  are  nationals  of  a  country  not  at  war  with  Japan  to  be 
transported  to  Germany  on  one  of  the  next  blockade  runners.   On  17  Jul, 
this  d:\rective  was  amended  to  refer  only  to  male  prisoners,  while 
women  and  children  may  be  released  after  the  customary  lapse  of  3 
months. 

Information  about  the  enemy  situation  is  sent  by  Radiograms  062G  and 


Situation  V/est  Area 


1.  Enemy  Situation: 

Photo  reconnaissance  of  the  Arne  Bay  near  Poole  on  18  Jul. 
showed  that  the  number  of  special  landing  craft  had  risen  from  82  as 
of  20  Jun.  to  180. 

Radio  monitoring  located  2  British  warships,  3  patrol  vessels  and  2 
subchasers  In  the  Portsmouth  area  in  the  forenoon.   Beginning  at  2350 
continuous  location  reports  were  given  about  our  forces. 

2.  Own  Situation: 

Atlantic  Coast; 

Nothing  to  report. 

Channel  Coast: 

The  mine-laying  mission  "Reseda"  was  executed  according  to 
plan,  while  operation  "Rhein"  was  postponed  on  account  of  weather  con- 
ditions . 

-k7&- 


CONFIDENTIAL 
20  Jul.  1942 

Around  noon  1  Spitfire  attacked  2  harbor  patrol  boats  off  Calais.   In 
the  afternoon  enemy  forces  'of  considerable  strength  raided  signal 
posts  and  battery  emplacements,  especially  those  in  the  area  between 
Dieppe  and  Le  Havre.   No  major  damage  was  reported. 

Mine-laying  operations  "F.hein**  and  "Gruen"  are  scheduled  for  the  night 
of  20  Jul. 


III.  Ilorth  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Mine-exploding  vessels  swept  2  ground  mines  north  of 
Terschelling  and  north  of  Ameland.   The  steamer  CONSUL  HORN  (8,384  GRT ] 
and  the  motor  ship  SUED  (564  GRT )  struck  mines  northwest  of  Borkum 
and  sank. 

In  the  afternoon,  several  enemy  reconnaissance  planes  flew  over  the 
German  Bight  and  the  northwestern  German  coastal  areas.  Our  pursuit 
planes  had  no  contact  with  the  enemy. 

2.  Norway: 

On  18  Jul.,  8  rounds  were  fired  at  fishing  boats  and  the 
Nurmansaetti  battery  from  the  Rybachi  Peninsula,  without  effect.   4 
Russian  planes  raided  Nonnings vaag  In  the  afternoon  of  19  Jul.  and 
caused  considerable  damage.   All  of  the  attacking  planes  were  shot  down 
by  our  pursuit  planes. 

The  Narvik  Naval  Ordnance  Arsenal  reports  a  case  of  sabotage  on  19  Jul 4 
which  caused  no  damage. 

3.  Arctic  Ocean: 

5  of  our  submarines  will  have  been  stationed  in  the  waters 
northeast  of  Bear  Island  by  the  night  of  20  Jul.  as  ordered  by  Group 
North.   The  operation  will  be  called  off  if  such  action  is  indicated 
by  the  results  of  air  reconnaissance,   After  a  short  time  out  for  re- 
fuelling, these  boats  will  go  into  operation  against  convoy  PQ,  18  be- 
tween Iceland  and  Jan  May en. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

Radio  monitoring  intercepted  messages  from  9  submarines  on 
19  Jul.,  3  of  them  communicating  with  the  fleet  command. 

2.  Own  Situation; 

Nothing  to  report  from  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea. 

Complying  with  a  request  of  Group  North  (see  "Jar  Diary  of  19  Jul.),  the 
Attache  at  Stockholm  is  instructed  to  urge  the  Swedish  Navy  to  take  over 


-l2JZb- 


CONFIDENT IAI 
20  Jul.  19  42 

the  submarine  chase  on  route  "90"  between  points  51  A,  52,  53,  and.  54, 
in  order  to  relieve  the  Commander,  Mine  Sv/eepers,  Baltic  Sea;  however, 
he  is  to  broach  the  matter  only  if  he  is  sure  of  assent.  (See  Telegram 
1919.) 

Barrage  "Seeigel  16"  was  laid  in  the  Gulf  of  Finland  according  to  plan. 
Enemy  planes  raided  F  5  and  Kotka  during  the  night  of  19  Jul.;  no 
casualties  or  losses  were  suffered  in  spite  of  numerous  bomb  hits.  The 
ULANGA  and  ALDEBARAN  sailed  from  Reval  at  0900,  according  to  plan,  for 
the  transfer  of  the  7th  'Mountain  Division  from  Reval  to  Jakob st ad 
(Pietarsaari) .   At  2145  the  bow  of  the  ALDEBARAN  was  hit  by  a  torpedo 
12  miles  south  of  Utoe,  but  she  remained  afloat.   The  vessel  was  es- 
corted to  Abo  by  mine  sweeper  1,1  "1007".   Details  have  not  yet  been  re- 
ported. 


V.    Submarine  Warfare 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation; 

The  operation  against  the  convoy  in  the  western  Atlantic 
(quadrant  CE)  was  terminated.   Submarine  U  "564"  reports  that  the 
ships  of  the  convoy  which  were  torpedoed  in  quadrant  GE  sank.   1 
steamer  with  2  funnels  and  unusually  high  superstructure,  possibly  an 
auxiliary  cruiser,  exploded.   Submarine  U  "108"  observed  the  explosion 
of  a  steamer  torpedoed  by  submarine  U  "564".   The  latter  estimates  the 
total  tonnage  of  the  4  steamers  as  approximately  23,000  GHT. 

No  further  results  were  reported.   For  details  see  Supplement  to  Sub- 
marine Situation  in  War  Diary,  Part  B,  Vol.  IV. 

Group  North  points  to  the  necessity  of  equipping  the  submarines  of  the 
11th  Submarine  Flotilla  with  radar  gear  in  view  of  the  approach  of  the 
season  of  darkness  and  bad  weather  in  the  Arctic  Ocean.   See  Telegram 
2246. 


VI.   Aerial  Warfare 

1 .  British  Isles  and  Vicinity : 

Enemy  air  activity  at  nightfall  over  the  northwestern  German 
coastal  area  and  northern  France;  damage  was  slight.  During  the  night 
of  20  Jul.  weak  enemy  forces  flew  over  western  France  and  East  Prussia. 

2.  Mediterranean  Theater: 

Malta  was  raided  by  considerable  forces  and  the  airfields  south 
of  Alexandria  were  bombed.   Other  operations  included  the  support  of 
the  Panzer  Army,  Africa  and  reconnaissance  of  the  Mediterranean  waters. 

3.  Eastern  Front: 

.    Support   of -our— attacking  armt&s T     Reconnaissance   on-thc   route 

-l27k- 


20  Jul.  1942 

to  Spitsbergen  had  no  tactical  results. 


VII.  Warfare  in  the  Mediterranean  and  Black  Sea 

1 .  Enemy  Situation  Mediterranean : 

Early  in  the  morning,  the  cruiser  EMERALD  sailed  from  Gib- 
raltar in  a  westerly  direction,  and  the  EAGLE,  the  CHARYBDIS,  1  CAIRO 
class  cruiser  and  1  destroyer  left  in  an  easterly  direction. 

The  cruiser  MANXMAN  arrived  in  Gibraltar  from  Malta  at  noon,  apparently 
completely  undamaged. 

According  to  an  unconfirmed  Italian  agent  report,  several  British  and 
U.S.  submarines  passed  through  the  Strait  of  Gibraltar  into  the  Medi- 
terranean during  the  night  of  13  Jul. 

Between  2  and  4  destroyers  bombarded  Marsa  Matruh  from  0050  to  0200.  At 
0720  German  air  reconnaissance  sighted  2  cruisers,  probably  light,  and 
4  destroyers  46  miles  north  of  Alexandria  on  an  easterly  course,  evi- 
dently the  force  which  bombarded  Marsa  Matruh.   Also,  a  large . steamer 
with  4  escort  vessels  and  10  PT  boats  was  repeatedly  observed  north  of 
Alexandria  on  a  southwesterly  course. 

Photo  reconnaissance  of  Suez  at  0C50  revealed  that  a  passenger  liner  of 
the  QUEEN  ELIZABETH  class,  the  C  class  cruiser,  and  the  monitor  left 
the  harbor  and  roadstead.   No  changes  of  importance  had  occurred  with 
regard  to  the  ships  in  the  harbors  of  Alexandria  and  Port  Said. 

2.  Own  Situation  Mediterranean: 

During  the  night  of  18  Jul.  3  boats  of  the  3rd  PT  Boat 
Flotilla  were  off  Marsa  Matruh  ready  for  a  torpedo  attack  on  the  de- 
stroyers sent  to  bombard  the  shore.   The  PT  boats  were  detected  by 
means  of  flares  and  driven  off  by  the  destroyers.   This  action  pre- 
vented the  bombardment  of  the  harbor.   Enemy  planes  caused  slight  damag 
and  light  casualties  on  2  PT  boats.  For  the  short  report  of  the  flotill 
see  Telegram  1215. 

During  the  night  of  19  Jul.,  the  PT  boats  carried  out  another  torpedo 
attack  off  Marsa  Matruh  against  the  destroyers  bombarding  the  coast, 
but  scored  no  results.   The  steamer  AGRIOENTO  was  damaged  by  4  hits  and 
sank  at  the  stern.   After  repairing  the  damage,  it  will  be  possible  to 
move  her. 

Enemy  planes  raided  Tobruk  on  the  evening  of  19  Jul.  without  causing 
damage. 

The  Italian  cruiser  division  which  operated  against  the  MANXMAN  re- 
turned to  port  without  having  made  contact  with  the  enemy. 

3.  Transport  of  Supplies  to  North  Africa: 

The  landing  barge  MFP  "156"  was  sunk  by  gunfire  from  an  enemy 
plane  en  route  from  Benghazi  to  Tobruk.   Otherwise  transport  movements 
proceeded  according  to  plan. 


f^5- 


CONFIDENTIAL 


/  U  o  0.  -L  •  -x.  *. 


4 .    Area  Naval  Group  South: 


Aep;ean  Sea: 


Enemy  submarines  were  sighted  on  19  Jul.  in  the  Doro  Channel 
and  off  Lamia.   On  the  same  day  the  Italian  hospital  ship  SICILIA  was 
unsuccessfully  attacked  with  torpedoes  from  a  submarine  in  the  Doro 

Channel-,  '"  « 

An  Italian  auxiliary  vessel  located  an  indefinite  number  of  moored 
mines  by  means  of  search  gear  22  miles  north  of  Kanea.   A  search  was 
ordered  and  the  shipping  lanes  concerned  were  closed. 

In  view  of  the  damage  suffered  by  the  AG75IGEI7TO,  Group  South  deems  it 
necessary  to  reexamine  the  question  whether  the  valuable  CITTA  class 
vessels  should  call  at  liars  a  Mat  run.  and  Tobrul:  before  these  ports  are 
adequately  protected,  or  before  the  speediest  possible  unloading  of  the 
ships  is  assured.   (See  Telegram  2055.) 

With  regard  to  North  Africa  transports  from  the  Aegean  area,  the 
Operations  Staff  of  the  Armed  Forces  High  Command  points  to  the  instruc 
tions  for  the  Athens  Office  issued  by  the  German  General  at  the  Italian 
Armed  Forces  Headquarters;  these  clearly  provide  that  the  Italian  ships 
operating  in  the  Aegean  Sea  are  under  German  authority.  TIM s  clear-cut 
arrangement  of  exclusive  German  command  In  the  Aegean  area  must  not  be 
changed  under  any  circumstances. 

Black  Sea: 

Enemy  Situation: 

Group  South  reports  continued  movements  of  surface  forces  off 
the  central  eastern  coast. 

Own  Situation: 

Strong  enemy  air  attacks  on  Mariupol  occurred  during  the 
night  of  19  Jul.   The  floating  dock  was  sunk.   Considerable  carnage  also 
to  other  installations.   1  motor  cutter  was  sunk.   The  Navy  suffered  no 
casualties  among  its  personnel. 

Escort  service  according  to  plan. 

The  foreign  motor  minesweeper  group,  the  17th  Harbor  Patrol  Flotilla, 
and  1  landing  barge  arrived  at  Ivanbaba  on  19  Jul.  and  2  additional 
barges  are  on  the  way  there  from  Ak  Mechet  via  Sevastopol. 

The  Naval  Staff  instructs  Group  South  to  transfer  at  least  5  barges  to 
the  Sea  of  Azov  as  soon  as  possible;  this  was  ordered  by  the  Armed 
Forces  High  Command  for  the  supply  of  the  Army.   The  operation  is  to  be 
carried  out  with  the  cooperation  of  the  Army  and  the  Air  Force;  plans 
for  it  are  to  be  reported  at  the  proper  time.   (See  Telegram  1111.) 

Since  operation  "Wiesengrund"  will  probably  not  take  place  this  year, 
the  Quartermaster  Division,  Naval  Staff  is  requested  by  the  Chief  of  tne 
Operations  Division,  Naval  Staff  to  rush  20  more  landing  barges  from 
Germany  to  the  Black  Sea.   Certain  delays  in  the  training  program  of  the 
Admiral,  Amphibious  Forces  cannot  be  helped.  (See  Telegram  1920. ) 

Group  South  calls  attention  to  the  manufacture  of  small  tug  boats,  type 
Fl  C  III  (Seeschwalbe ),  at  Koepenick  and  Vienna  by  the  Air  Ministry  and 


-t27fc- 


COKFIDLflTIAL 
CO  Jul.  1942 

suggests  that  it  be  investigated  whether  they  can  be  used  in  the  Sea  of 
Azov  and  the  Caspian  Sea.  (See  Telegram  1230.  ) 

The  I^aval  Staff,  Quartermaster  Division  is  attending  to  this  matter. 


VIII.  Situation  East  Asia 


Ilothing  to  report. 


IX.   Army  Situation 

1.  Russian  Front : 

Army  Group  A; 

The  enemy  is  beginning  to  withdraw  also  in  front  of  the 
north  wing  of  Army  Group  A.   Extensive  minefields  and  destroyed  bridges, 
hamper  the  pursuit.   Our  forces  advancing  in  the  Voroshilovgrad  area 
gained  considerable  ground  to  the  south.   The  flanking  movement  of  the 
left  wing  of  our  forces  from  the  area  of  Eonstantinovsk  to  the  west 
toward  Shakhty  is  proceeding  according  to  plan. 

The  29th  Notorized  Infantry  Division  has  established  a  bridgehead 
across  the  Don  River.   Other  units  closing  in  have  reached  Prokovsky. 

Army  Group  B: 

The  spearhead  of  the  Army  Group  has  advanced  beyond  the 
Suskan  sector  south  of  the  Don  River.   The  withdrawal  from  the  Koro- 
toyak  bridgehead  was  effected  according  to  plan.   Enemy  attacks  against 
the  Voronezh  bridgehead  continued.   Lively  fighting  developed  between 
the  Don  and  Olym  Rivers  against  the  reinforced  enemy. 

Central  Army  Group: 

Fighting  was  on  a  purely  local  scale. 

Northern  Army  Group: 

The  enemy  continued  to  attack  the  II  Army  Corps  from  3  sides 

Following  a  strong  artillery  barrage  on  our  positions  southwest  of 
Leningrad,  the  enemy  attacked  with  numerous  tanks,  assisted  by  strong 
bomber  and  fighter  formations.   Heavy  fighting  is  in  progress.' 

2.  Finnish  Front: 

ITo  action  of  importance. 

3.  ITorth  Africa: 

The  central  sector  of  the  enemy  was  reinforced  with  heavy 
batteries.   Enemy  air  raids  on  Mars a  Matruh,  continuing  by  day  and 
night,  and  bombardments  from  the  sea  make  it  very  difficult  for  large 


-feZJ- 


CONFIDENTIAL 
£0  Jul.  1942 

vessels  to  enter  this  port  at  the  present  tine.   The  situation  of  the 
Panzer  Army  is  tense,  ov/inc  to  the  enemy's  air  superiority. 


4>7fe- 


CONFIDENTIAL 


21  Jul.  1942 


Items  of  Political  Importance 
Great  Britain: 


According  to  America 
is  again  being  discu 
Beaverbrook  a  portfo 
protests. on  the  part 
sador  at  London  has 
during  another  confe 
urging  the  sane  step 
tanks,  and  food  supp 
to  the  Caucasus. 


n  reports,  the  problem  of  a  second  European  front 

ssed  in  London.   Churchill  allegedly  offered 

lio  in  the  War  Cabinet,  a  fact  which  caused  violent 

of  the  other  Cabinet  members.   The  Soviet  Ambas- 
strongly  demanded  the  opening  of  a  second  front 
rence  with  Churchill.   Washington  is  emphatically 

in  London.   Moreover,  speedy  delivery  of  bombers, 
lies  to  Russia  is  demanded  in  view  of  the  threat 


India: 

Gandhi  declared  that  Great  Britain,  the  U.S.A.,  China  and  Russia  are 
welcome  to  make  a  new  proposal  with  regard  to  the  Indian  question. 
Should  the  appeal  made  by  the  Congress  not  be  granted,  however,  the 
disobedience  campaign  will  set  in  in  the  near  future. 

U  t  O  |A  »  * 

It  is  learned  from  American  diplomatic  circles  that  there  is  a  good 
deal  of  hard  feeling  toward  Great  Britain  In  the  U.S.A.   Great  Britain 
is  blamed  for  the  military  defeats  in  North  Africa  and  it  is  feared 
that  only  an  American  expeditionary  force  will  be  able  to  get  the  situa 
tion  in  Africa  and  the  Near  East  under  control.   Also  British  criti- 
cism of  American  deliveries  of  materiel,  particularly  of  airplanes,  is 
said  to  have  aroused  the  Americans. 

According  to  Press  Wireless  reports,  Roosevelt  will  probably  assume  the 
Allied  Supreme  Command.  Admiral  Leahy  will  receive  a  naval  post.   It 
is  considered  possible  that  the  French  Ambassador  in  Y/ashington  may  be 
recalled.   It  is  not  planned  to  construct  additional  shipyards  in  the 
U.S.A.,  because  the  existing  ones  are  sufficient  to  cope  with  the 
shipbuilding  program.   Propaganda  for  a  U.S.  air  transport  fleet  con- 
tinues * 

Japan; 


For  the  report  about  rumors  of  an  impending  Cabinet  shake-up,  according 
to  the  German  Ambassador  at  Tokyo  (see  War  Diary  of  12  Jul.),  see 
Political  Review  No.  168,  paragraph  7. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.   The  Chief  of  the  Naval  Ordnance  Division  reports  about  the  economib 
importance  of  Egypt;  he  also  discusses  the  order  of  the  Minister  of 
Armament  and  Ordnance  concerning  the  organization  of  the  gas  and  pov/er 
industry.   It  will  become  mandatory  to  employ  special  electrical  en- 
gineers in  naval  plants  also. 

Another  report  refers  to  the  effect  of  the  decision  by  the  Commander  ini 
Chief,  Navy  regarding  the  acceleration  of  submarine  repairs,  etc. 
According  to  this  report  approximately  8,000  more  workers  are  required 
than  permitted  by  the  Fuehrer  in  his  decision  about  the  order  of 
priority  of  naval  construction,  etc.  The  Naval  Ordnance  Division, 


422fe- 


CONFIDENTIAL 
21  Jul.  1942 

therefore,  considers  it  necessary  to  call  the  Fuehrer's  attention  to 
the  fact  that  owing  to  the  higher  manpower  requirements  for  the  most 
urgent  construction  tasks,  projects  with  lower  priority,  among  them 
the  aircraft  carriers  on  which  the  Fuehrer  places  so  much  value,  will 
be  delayed  even  more  than  anticipated.   To  this  argument  the  Naval 
Staff  remarks  that  the  problem  consists  of  obtaining  additional 
workers  for  items  1  and  2  on  the  priority  list,  without  drawing  on  the 
manpower  required  for  items  5,  6,  and  7. 

In  a  Very  Restricted  Circle: 

II.  The  Chief  of  the  Naval  Staff  Quartermaster  Division,  Fleet 
Section  reports  the  results  of  his  observations  in  the  Crimea  as  con- 
tained in  the  report  of  the  Deputy  to  the  Chief,  Naval  Staff  Quart err 
master  Division  (see  War  Diary  of  20  Jul.).   At  a  later  date  it  is 
planned  to  replace  battery  "TIrpitz"  at  Constanta  by  a  railway 
battery  (28  cm),  so  that  battery  "Tirpitz"  can  then  be  shifted  to  the 
tip  of  Cape  Kherson  in  place  of  the  former  "Maxim  Gorki  III".   The 
Commander  in  Chief,  Navy  agrees  to  this  plan  and  the  respective 
orders  will  go  out  at  once. 

III.  The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division  re- 
ports the  plans  of  Group  North  concerning  protective  measures  for  the 
southwest  barrages  and  the  laying  of  4  type  A  standard  mine  barrages 
on  the  Dutch  coast  (see  War  Diary  of  16  Jul.). 

IV.  A  further  report  is  made  about  the  orders  of  the  Commanding  Ad- 
miral, Submarines  for  submarine  "751"  to  lay  mines  in  the  approaches 
to  Charleston  and  submarine  U  "93"  in  front  of  the  harbor  entrance  of 
Jacksonville. 

V.  Analysis  of  the  situation  by  the  Naval  Staff  in  connection  with 
enemy  landings  in  the  west  area; 

The  Fuehrer  is  convinced  that  Germany's  fast  and  great  victories 
will  force  Great  Britain  either  to  undertake  an  immediate  large-scale 
landing  for  the  establishment  of  a  second  front  or  to  do  without  the 
political  "and  military  support  of  Soviet  Russia.   The  Fuehrer  believe? 
that  for  this  reason  enemy  landings  must  be  expected  shortly.  The 
Naval  Staff  has  therefore  made  an  extensive  analysis  of  the  situation  j 
which  is  sent  to  Groups  West  and  North;  the  Commanding  Admiral,  France; 
the  Naval  Station,  North  Sea;  and  the  Commanding  Admiral,  Submarines, 
with  copies  to  the  Naval  Representative  at  the  Operations  Staff,  Armed; 
Forces  High  Command;  and  the  Naval  Liaison  Officers  to  the  Army  General! 
Staff  and  to  the  Air  Force  Operations  Staff.   The  Naval  Staff  empha- 
sizes the  reasons  compelling  the  enemy  to  launch  an  offensive  against 
the  German  submarine  bases  since  these  bases  are  the  source  of  the 
grave  danger  to  enemy  merchant  shipping.  The  main  object  of  an  enemy 
landing  in  the  west  area  will  be  to  eliminate  the  German  submarine 
bases.   A  diversionary  landing  in  the  area  from  the  Seine  Bay  to  Cher- 
bourg can  be  expected.   Among  the  measures  to  be  taken  against  such 
landings,  the  Naval  Staff  lists  more  complete  Channel  reconnaissance 
by  careful  reconnoitering  of  the  enemy  situation  in  the  harbors  of  the 
Bristol  Channel,  the  Irish  Sea,  and  the  North  Channel  in  order  to 
detect  possible  enemy  preparations  for  landing  operations.  The  Naval 
Staff  also  recommends  holding  submarines  in  readiness  to  attack  enemy 
invading  forces,  particularly  those  approaching  from  the  Bristol 
Channel  and  St.  George's  Channel. 


-E86- 


CONFIDENTIAL 
21  Jul.  1942 

Group  West,  the  Commanding  Admiral,  Prance,  and  the  Commanding  Ad- 
miral, Submarines  are  requested  to  reexamine  these  questions  and  to 
report  to  the  Naval  Staff  what  other  possibilities  they  see  for  im- 
proving our  defense  measures. 

The  Naval  Staff  Quartermaster  Division,  Communications  Division,  Sub- 
marine Division,  and  Ordnance  Division  are  also  given  the  opportunity 
to  consider  appropriate  measures  within  their  jurisdiction.' 

See  1/Skl  I  b  1363/42  Gkdos .  Chefs,  in  War  Diary,  Part  C,  Vol.  II  b 
(in  conjunction  with  l/Skl  I  b  (plan)  1341/42  Gkdos.  Chefs.). 

The  Chief  of  the  Naval  Staff  agrees. 

The  Chief  of  Staff,  Naval  Staff  reemphasizes  the  importance  of  the 
problems  discussed  and  points  out  again  the  responsibility  of  the  Navy 
for  protecting  the  submarine  arm  which  is  of  such  decisive  importance. 
He  suggests  that  the  Chief,  Naval  Staff  should  personally  inspect  the  ' 
west  area  at  an  early  opportunity  in  order  to  assure  himself  that  the 
steps  ordered  have  been  executed.   He  could  then  reassure  the  Fuehrer 
that  everything  humanly  possible  has  been  done  to  avert  the  imminent 
danger . 

The  Chief,  Naval  Staff  agrees  with  the  above  and  orders  that  prepara- 
tions and  a  schedule  for  his  inspection  trip  be  worked  out  at  once. 

VI.   The  Permanent  Representative  of  the  Commander  in  Chief,  Navy  at 
the  Fuehrer  Headquarters  informed  the  Naval  Staff  that  additional  re- 
inforcements, among  them  the  "Grossdeutschland"  Infantry  Division,  are 
being  transferred  to  the  west  area,  in  addition  to  the  up-to-date  units 
which  have  heretofore  been  reported.   The  shipment  of  the  bulk  of  the 
.XI  lArmy  Corps  from  the  Crimea  to  the  Northern  Army  Group  begins  on 
27  Jul.   Operation  "Herkules"  is  postponed  for  an  indefinite  period. 
Rommel  hopes  to  have  300  tanks  at  his  disposal  soon  again,  which  would 
permit  him  to  reopen  the  offensive.   Supplies  must  be  brought  up  very 
quickly  In  order  to  outdo  the  enemy  in  this  respect. 


Special  Items 

On  29  Jun.  the  German  Naval  Command,  Italy  submitted  a  copy  of  the 
final  report  of  the  Commanding  General,  Armed  Forces,  South  about  the 
sea  and  air  battle  in  the  Mediterranean  between  14  Jun.  and  16  Juii. 
1942.   The  Naval  Command,  on  the  whole,  agrees  with  the  contents  of  th|e 
report . 

The  Commanding  General,  Armed  Forces,  South  arrived  at  the  following 
conclusions  about  the  enemy's  losses: 

a.  From  the  western  convoy: 

9  steamers  totalling  at  least  60,000  GRT,  including  1  tanker 

1  passenger  ship 

2  cruisers 
1  destroyer 

1  warship  of  unidentified  type 

b.  From  the  Alexandria  convoy: 
Credited  to  the  German  Air  Force: 


-feel- 


CONFIDgTTIAL 

21  Jul.  1942 

6  auxiliary  vessels  totalling  50,000  G'.TT 

1  cruiser 

2  destroyers 

1   patrol    vessel 

Credited   to   the  German  Navy: 

*L   cruiser 

Credited  to  the  Italians: 

1  destroyer 

Total  sinkings:    26  shins. 

Evaluation  of  photo  reconnaissance  by  the  Operations  Division,  Naval 
Staff  resulted  In  the  following  count; 

a.  Lost  from  the  western  convoy: 

1  cruiser 

1  passenger  ship 

1  tanker 

7  cargo  vessels 

Probably  2  destroyers  and  2  escort  vessels 

b.  Lost  fron  the  Alexandria  convoy: 

1  cruiser 

2  destroyers  or  patrol  vessels 
4  steamers 

Total  sinkings:    21  ships. 

German  air  forces  shot  down  23  enemy  planes  for  sure  and_  lost  14. 

Italian  air  forces  reported  shooting  down  49  enemy  planes  and  losing 

22  of  their  own  planes. 

The  Italian  ITayy  lost  the  cruiser  TRENT 0. 

Ships  damaged  on  either  side  are  not  listed,  since  there  is  almost  no 
way  of  checking  on  them. 

As  far  as  the  sinkings  of  warships  are  concerned,  the  Commanding  Gen- 
eral, Armed  Forces,  South  figures  16  ships,  the  Naval  Staff,  Opera- 
tions Division  4  ships;  while  the  British  Admiralty  admits  the  loss  of 
7  ships.   Since  the  latter  figure  comprises  2  destroyers  and  2  patrol 
vessels,  the  loss  of  which  could  not  be  established  from  the  photo 
material  available  to  the  llaval  Staff,  Operations  Division,  these  4 
ships  were  added  as  probable  sinkings  to  the  total  losser  of  the 
western  convoy.   Thus  it  is  evident  that  an  absolutely    rect  de- 
termination of  the  enemy's  losses  has  not  yet  been  pos;.  ^o^e.  However, 
it  Is  very  likely  that  7  or  8  warships  were  lost,  among  them  1  or  2 
cruisers.   Since  the  British  do  not  mention  the  merchant  ships  lost, 
the  figure  of  13  determined  by  the  Naval  Staff,  Operations  Division 
probably  constitutes  the  minimum  number  of  ships  sunk  by  the  Axis 
Powers . 


-feofe- 


21    Jul.    1942  CONFIDENTIAL 

Situation   21    Jul. ,1042 

I.        War   in  Foreign  V'aters 

1.  Enemy  Situation; 

North  Atlantic: 

According  to  an  intelligence  report  from  Spain,  a  convoy  of 
15  transports  is  being  assembled  at  Liverpool  and  neighboring  ports, 
which  is  supposed  to  sail  on  25  Jul.  with  a  cargo  of  about  60,000  GRT 
for  Africa. 

Indian  Ocean: 

The  U.S.  steamer  IRENE  DUP0NT  reported  from  approximately 
310  miles  east-southeast  of  Fort  Dauphin  (Madagascar )  that  she  was 
pursued  by  a  suspicious  looking  vessel. 

Pacific  Ocean: 

Towns ville  reported  on  20  Jul.  2  battleships  and  5  unidenti- 
fied ships  at  4°  S,  165°  E  (south  of  Hauru  Island). 

2.  Own  Situation: 

Ho  news  was  received  from  our  ships  in  foreign  waters. 

Ship  "28"  is  informed  by  Radiograms  2048  that  4  German  submarines  will 
operate  in  quadrant  ET  until  further  notice. 

Information  about  the  enemy  situation  was  sent  by  Radiogram  2304. 


II.   Situation  V/est  Area 

1.    Enemy  Situation: 

According  to  radio  monitoring  a  number  of  convoys  in  the 
Channel  area  and  off  the  southeastern  English  coast  received  air  raid 
warnings.   Air  reconnaissance  spotted  21  steamers  southwest  of  Milford 
on  a  60°  course. 

Photo  reconnaissance  of  19  Jul.  established  merchant  ships  of  219,200 
GRT  at  Tynemouth,  104,200  GRT  at  Sunderland  (of  which  87,500  GRT  are 
under  construction),  118,400  GRT  at  Middlesbrough  (of  which  71,000  GRT 
are  under  construction). 

According  to  a  report  by  the  Army  General  Staff,  Intelligence  Division, 
West  it  could  not  be  determined  how  many  maps  of  unoc  cupie'd  France  the 
British  have  been  able  to  acquire  since  1940.   It  could  be  that  maps 
acquired  at  an  earlier  date  will  be  adequate  for  new  operations.   It 
could  be  ascertained,  however,  that  a  special  Government  order  was 
placed  around  the  middle  of  May  1942  for  1,800  maps  of  the  eastern 
part  of  Corsica  and  2,100  maps  of  the  western  part,  for  delivery  by  the 
end  of  June. 

The  Naval  Intelligence  Division,  Foi  Ign  '   vies   Branch  reports  in  Ho. 
34  of  Hews  Analysis,  Foreign  Navies  about  the  organization  and  location 
of  the  commando  forces  after  the  end  of  May  1942,  and  about  the  loss  of 
the  fast  IIUNT-class  escort  vessels  GROVE  and  AIREDALE. 


->8;i 


21  Jul.  1942 

The  British  Government  published  a  warning  to  the  effect  that  beginning, 
at  midnight  of  24  Jul.,  any  vessel  proceeding  beyond  coastal  waters  in 
the  North  Sea,  the  English  Channel  and  the  Bay  of  Biscay,  as  defined 
in  the  announcement  of  the  Admiralty  of  25  I.Tar.  1941,  does  so  at  her 
own  risk. 

2.    Own  Situation; 

Atlantic  Coast; 

Air  reconnaissance  sighted  2  drifting  mines  IOC  miles  west- 
southwest  of  Brest  on  20  Jul.  Three  ground  runes  were  swept  by  nine- 
exploding  vessels  in  the  waters  off  Lorient  and  La  pallice. 

Channel  Coast: 

Harbor  patrol  vessel  "82"  had  a  brief  engagement  with  5  enemy 
FT  boats  west  of  Dunkirk  at  0055.   At  0100  mine-exploding  vessel  "168" 
and  4  of  our  subchasers  had  a  brush  with  enemy  PT  boats  in  quadrant  "DF ' 
3332,  in  the  course  of  which  an  enemy  flotilla  leader  was  sunk.   The 
sinking  could  be  observed  clearly  from  land.   One  motor  gunboat  was 
sunk  by  ramming.   4  motor  torpedo  boats  were  badly  damaged  by  gunfire. 
13  men  were  rescued  and  taken  prisoner.   Our  own  losses  were  4  dead, 
21  wounded. 

The  4th  and  2nd  PT  Boat  Flotillas  carried  out  mining  missions  on  the 
convoy  route  in  the  Portsmouth  area  according  to  plan.   At  0253  a  mine 
detonation  was  observed.   For  short  report  see  Telegram  1030. 

The  mine-laying  operations  "Rhein"  and  "Gruen"  were  carried  out  in  the 
Seine  Bay.   The  3rd  Torpedo  Boat  Flotilla,  the  4th  Hot  or  Mine  Sweeper 
Flotilla,  and  the  8th  I.!ine  Sweeper  Flotilla,  which  took  part  in  the  op  > 
eration,  returned  to  their  bases  early  this  morning.   Mine-laying  op- 
eration "Stein"  in  the  Seine  Bay  is  scheduled  for  the  night  of  21  Jul. 

The  2nd  Coast  Patrol  Force  reports  interesting  radar  information  from 
the  night  of  20  Jul.:   the  German  PT  boats  in  the  vicinity  of  the  Isle 
of  Wight  were  continuously  located  as  far  as  34.5  miles  out.   Our  own 
locating  results  were  remarkably  poor  with  regard  to  the  3rd  Torpedo 
Boat  Flotilla.   For  details  see  Telegram  1920.   Evaluation  by  the  Chief 
of  Communications  Division,  Naval  Staff. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.    North  Sea; 

Convoy  and  mine-sweeping  activities  in  the  area  of  the  Com- 
manding Admiral,  Defenses,  North  were  still  handicapped  in  part  by 
weather  conditions.   One  ground  mine  was  swept  north  of  Schiermonnikoog, 
In  the  afternoon  enemy  planes  flew  over  the  Dutch  coast.   Bombs  v/ere 
dropped  on  Walcheren.   A  few  single  planes  penetrated  into  the  north 
German  coastal  area  as  far  as  the  area  south  of  Bremen.   Pursuit  planes 
went  into  action,  but  were  unable  to  contact  the  enemy. 

5  PT  boats  completed  the  run  from  V.'ilhelmshaven  to  Ijmuiden.  -Mining 
operation  "Satan"  was  started  in  the  evening. 


-J28|4- 


Jul.  1942 


CONFIDENTIAL 


2.   Norway : 


Enemy  planes  were  active  over  the  Arctic  Coast  on  19  and  20 
■  the  western  coast  on  20  Jul.   Two  of  the  attacking  planes 

The  entrance  to  Ko  Fjord  was 


Jul. ,  over  th 

were  shot  down  by  fighters  at  Kirkenes. 

closed  on  account  of  suspected  aerial  nines. 


The  Fleet  requests  an  early  announcement 
the  SCEEER.  If  she  is  to  be  used  in  the 
8  weeks  in  dock  and  at  least  4  weeks  for 
whereas  4  weeks  engine  overhaul  would  be 
tinue  her  present  tasks. 

3.    Arctic  Ocean: 


of  the  operational  plans  for 
Atlantic,  she  would  require 
training  of  the  new  crew, 
sufficient  if  she  is  to  con- 


Enemy  Situation: 

On  20  Jul.  radio  monitoring  intercepted  messages  from  6 
British  ships  in  the  area  of  Archangel.   At  0600  air  reconnaissance 
sighted  one  destreyer  and  2  steamers  on  a  northerly  course  in  quadrant 
AB  7820. 

On  18  Jul.  the  following  ships  were  in  the  area  between  Kola  Bay  and 
Vayenga :   14  merchant  vessels  totalling  about  148,000  GRT,  1  small 
tanker,  and  3  patrol  vessels;  1  submarine  was  in  dock.   In  the  naval 
base  of  Polyarnoye  on  20  Jul.:   6  submarines,  1  destroyer,  coastal  anq 
harbor  craft. 


ce  reports  of  20 
embled  in  the  Bri 
ships  of  200,000 
carriers,  2  battl 
,  PT  boats,  subma 
d  Russian  naval  p 
800  tanks,  2,000 
umber  of  large-ca 
irplane  propeller 


Jul.  from  Sweden  a  large  convey 
tish  Isles  at  present;  it  is 
to  250,000  GRT  and  will  be 
eships,  4  heavy  cruisers,  de- 
rines  and  a  considerable  number 
lanes.   It  is  said  that  the 

airplane  engines,  20,000 
liber  guns,  500  anti-tank  guns. 
s,  drugs,  optical  instruments 


According  to  intelligen 
for  Russia  is  being  ass 
to  consist  of  45  to  50 
escorted  by  2  aircraft 
stroyers ,  torpedo  boats 
of  British,  American  an 
convoy  will  carry  about 
armor  plates,  a  great  n 
and  ammunition,  4,000  a 
and  other  equipment. 

Another  agent  report  from  Sweden  says  that  the  U.S.A.  shipped  large 
quantities  of  materiel  to  Iceland,  whence  it  will  be  reshipped  to 
Russia  by  the  British.   Extensive  British  reconnaissance  flights  to 
locate  German  submarines  in  the  Arctic  Ocean  are  reported  planned  with1 
in  the  next  few  days.   According  to  the  same  report,  convoy  PQ  17  was 
to  have  brought  the  equipment  for  a  British  and  American  invasion 
army  to  Murmansk;  the  army  itself  was  to  be  shipped  after  the  materiel 
was  delivered. 

This  report  appears  rather  doubtful,  apart  from  the 
fact  that  the  major  portion  of  convoy  PQ  17  was 
destined  for  Archangel. 

The  captain  of  steamer  CARLTON  from  convoy  PQ  17  who  was  taken 
prisoner  asserted  that  Philadelphia  is  the  principal  port  for  shipping 
war  materiel  to  Russia.  Convoys  to  Reykjavik  sail  from  Halifax. 

All  steamers  carry  almost  identical  mixed  cargoes  consisting  of  tanks, 
airplane  parts,  automobiles  and  spare  parts,  explosives,  ammunition, 
guns,  machine  guns,  rifles,  foodstuffs,  mostly  flour  and  canned  meat, 
tin,  aluminum,  and  steel  plates. 


-l28|5- 


21  Jul..  1040 

Own  Situation; 
Nothing  to  report. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sep. 

1 .  Enemy  Situation: 

11  submarines  v/ere  located  by  radio  monitoring,  3  of  then 
east  of  Reval.   6  FT  boats  on  a  westerly  course  were  sighted  on  20  Jul' 
at  2100  off  Seiskari. 

Group  North  believes  that,  judging  from  the  present  activity  in  the 
Leningrad  area,  cruisers  or  destroyers  nay  attempt  to  sail  from 
Kronstadt . 

2.  Own  Situation: 

ITothing  to  report  fro:.:  the  area  of  the  Commanding  Adniral  , 
Defenses,  Baltic  Sea. 

1  nan  was  killed  and  3  gravely  injured  by  the  torpedo  hit  on  the 
ALDEBARAII . 

Group  ITorth  orders  that  nines  should  be  laid  again  soon  in  the  Kron- 
stadt  Sea  Channel,  in  view  of  the  mounting  Russian  activity  in  the 
Leningrad  area  and  because  the  nines  laid  there  are  no  longer  live,  as1 
they  were  set  to  become  inactive  on  17  Jul.   Otherwise  nothing  to  re- 
port. 


V.    Submarine  Warfare 

1.  Enemy.  Situation: 

According  to  an  intelligence  report  from  Spain,  a  convoy  of 
18  steamers  escorted  by  3  corvettes  and  2  gunboats  has  left  Gibraltar 
in  a  westerly  direction.   Submarine  attacks  were  reported  from  the 
Anerican  coast  in  the  Gulf  of  St.  Lawrence  and  from  the  '.'.est  Indies 
nor tli  of  Trinidad. 

The  captain  of  steamer  CARLTON  from  convoy  PQ  17  asserted  that  all 
ships,  size  permitting,  are  using  the  inland  waterways  from  Baltimore 
via  Philadelphia  to  New  York,  and  continue  from  there  through  the 
Long  Island  Sound  to  Halifax. 

2 .  Own  Situation : 

5  submarines  arc  in  the  zone  of  operations  in  the  Arctic 
Ocean.   On  the  basis  of  reports  received,  the  Commanding  Admiral,  Sub- 
marines assumes  that  3  steamers  totalling  about  15,000  GRT  may  have 
been  sunk  by  the  5  torpedo  hits  on  the  convoy  north  of  the  Azores  re- 
ported by  submarine  U  "100"  on  19  Jul. 

Submarine  U  "437"  probably  sank  a  10,000  GRT  steamer  and  torpedoed  a 

15,000    GRT    trnn.n.po^t.     in    qnn  di-va  rrh-.DlL.Rl 

-Ms- 


CONFIDENTIAL 
21  Jul.  1942 

Submarine  U  "132*  is  operating  in  the  St.  Lawrence  River.  She  torpedoec 
3  ships  of  an  outgoing  convoy  of  12  steamers  in  quadrant  BA  3587  on  3 
Jul.   Canadian  press  reports  indicate  that  they  sank.   On  20  Jul.  a 
4,500  GiUI   freighter,  one  of  a  convoy  of  6  steamers,  was  torpedoed  in 
quadrant  BB  1479;  she  was  subsequently  towed  ashore. 

Additional  reports  in  Supplement  to  Submarine  Situation,  War  Diary, 
Part  B,  Vol.  IV. 

The  Commanding  Admiral,  Submarines  was  informed  by  the  Naval  Staff  that 
mine-laying  operations  off  New  York  cannot  be  carried  out  until  the  ex- 
change of  Japanese  and  American  diplomats  has  been  completed.   No  date 
can  yet  be  fixed;  it  will  probably  take  at  least  4  more  weeks.   See 
Telegram  1600  for  discussions  between  the  Commanding  Admiral,  Sub- 
marines; the  Naval  Staff,  Submarine' Division;  the  Officer  Personnel 
Division;  and  the  Second  Admiral,  Submarines  about  the  assignment  of 
boarding  officers  to  11  vessels.   The  Commanding  Admiral,  Submarines  i$ 
Justified  in  refusing  to  permit  these  boarding  officers  to  be  selected 
from  ordnance  officers  in  training;  in  view  of  the  great  gain  derived 
from  each  prize  that  Is  brought  in,  he  requests  that  the  required 
boarding  officers  be  provided  elsewhere. 

For  the  comment  of  the  Commanding  Admiral,  Submarines  regarding  the  re- 
quest by  Group  North  to  equip  the  submarines  assigned  to  the  Arctic 
Ocean  with  radar  sets,  see  Telegram  1700.  The  Commanding  Admiral,  Sub- 
marines requests  the  Naval  Staff  and  Group  North  to  pass  all  matters 
concerning  fundamental  submarine  problems — except  of  course  purely  op- 
erational questions-*through  his  office;  the  Commanding  Admiral,  Sub- 
marines must  have  full  control  In  order  to  ensure  the  coordination 
necessary  in  view  of  the  tense  manufacturing  situation,  particularly 
as  far  as  the  armament  of  submarines  is  concerned. 

The  Naval  Staff  recognizes  that  this  request  is  justi- 
fied.  The  present  matter  is  being  handled  by  the  Chief 
of  Communications  Division,  Naval  Staff. 


VT.  Aerial  Warfare 

1.  British  Isles  and  Vicinity t 

A  radio  station  on  the  Isle  of  Wight  was  raided  in  a  daylight 
attack  by  fighter  bombers.   During  the  night  of  21  Jul.  a  total  of  25 
German  planes  flew  a  number  of  demolition  missions.   Approximately  60 
enemy  planes  raided  the  Rhenish  and  V.'estphallan  industrial  area,  con- 
centrating on  Duisburg.   Damage  was  inflicted  on  factories  and  traffic 
installations.   For  details  see  daily  situation  report,.   5  raiders  were 
shot  down .  , 

2.  Mediterranean  Theater: 

Due  to  weather  conditions,  Malta  was  not  attacked  by  the 
German  air  force.   It  must  be  figured  that  20  to  25  fighter  planes  were 
delivered  to  Malta  by  the  EAGLE  force,  so  that  the  island  disposes  over 
about  110  fighters,  of  which  70  are  ready  for  combat. 

9  enemy  planes  were  shot  down  in  the  Mediterranean  theater. 

3.  Eastern  Front : 

The  5th  Air  Force  attacked  enemy  batteries  on  the  northwestern 


U. 


CONFIDENTIAL 
21  Jul.  1942 

coast  of  the  Rybachl  Peninsula  with  good,  results. 
49  planes  were  shot  down  In  the  east  area. 


VII.  Warfare  in  the  Mediterranean  and  Black  Sea 

1.  Enemy  Situation,  Mediterranean; 

1  DRAGON  class  cruiser  arrived  at  Gibraltar  from  a  westerly 
direction.   The  convoy  of  18  steamers  passed  Punta  de  Europa  at  1835. 

2  cruisers  and  5  destroyers  of  the  EAGLE  force  were  sighted  at  0900 
60  miles  north  of  Algiers  on  a  westerly  course,  evidently  on  the  way 
home  after  delivering  airplanes  to  Malta. 

At  1545  two  ships  with  6  to  8  escort  vessels  were  observed  northeast 
of  Marsa  Scala  Bay  headed  for  Valletta.   It  was  observed  that  they 
arrived  at  Valletta  at  1830. 

Ho  particular  ship  traffic  was  observed  in  the  eastern  Mediterranean. 

2.  Own  Situation,  Mediterranean: 

Enemy  planes  raided  Tobruk  during  the  night  of  21  Jul.   The 
7th  Italian  Cruiser  Division  was  standing  by  fully  alerted  in  the  harbor: 
the  alert  was  lifted  after  the  EAGLE  force  turned  back. 

3 .  Transport  of  Supplies  to  North  Africa: 

The  tanker  SATURNI0  arrived  at  Tripoli  in  the  evening  of  20 
Jul.   The  motor  ships  PIL0  and  WACHTFELS  are  en  route  from  Brindisi 
and  Suda  to  Benghazi. 

Coastal  supply  shipping  according  to  plan. 

On  20  Jul.  1,352  tons  of  goods  were  unloaded  at  Tobruk,  and  670  tons  at 
Marsa  Mat run. 

In  addition  to  other  demands  on  the  Italian  Naval  Command,  Libya,  the 
German  Naval  Command,  Italy  has  reiterated  its  urgent  request  for  an 
Italian  coastal  battery  to  be  Installed  at  Marsa  Matruh,  because  it 
will ■ otherwise  be  impossible  for  steamers  to  call  at  this  port.  Supply 
traffic  out  of  Tobruk  uses  barges,  sailing  vessels,  and  small  steamers 
up  to  500  GRT.   (See  Telegram  2010.) 

About  Naval  Group  South' s  request  for  speedy  allocation  of  additional 
shinning  snace  for  the  supply  of  the  Panzer  Army,  Africa  see  Telegram 
1050^. 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

Enemy  Situation: 

On  20  Jul.  a  surfaced  enemy  submarine  was  sighted  in  the 
peo  Channel  west  of  the  Trikeri  barrage.   Submarine  chase  has  been 


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CONFIDENTIAL 
21  Jul.  1942 

without  results  up  to  now. 

Own  Situation; 

Convoy  service  according  to  plan.   The  area  north  of  57° 
40»  N  was  closed  to  small  ships. 

Black  Sea: 

Enemy  Situation; 

In  the  harbor  of  Azov  a  considerable  concentration  of  small 
vessels  was  observed. 

Own  Situation; 

The  17th  Harbor  Defense  Flotilla  made  a  check  sweep  of  the 
roadsteads  of  Sevastopol  and  Ivanbaba  but  found  no  mines.   One  heavy 
and  one  light  anti-aircraft  battery  were  installed  at  Genichesk.  Con- 
voy operations  were  suspended  on  20  Jul.  due  to  weather,  conditions. 
5  German  landing  barges  were  commissioned  at  Varna  on  21  Jul. 


VIII.  Situation  East  Asia 

According  to  Dome!  -Hews  Agency,  Japanese  naval  units  landed  on 
17  Jul.  at  the  mouth  of  the  Y/u  River  in  the  southeastern  part  of 
Chekiang  Province.   The  U.S.  Navy  Department  announced  the  occupation 
of  Agutay  Island  by  Japanese  forces. 


IX.   Army  Situation 

1.   Russian  Front ;       <"■   -  - 

Army  Group  A; 

The  enemy  is  retreating  toward  Rostov.   The  spearheads  of 
our  armored  forces  advancing  southward  from  the  Kamensk  area  have 
reached  a  point  between  Shakhty  and  Rostov.   Shakhty  was  reached  by  3 
divisions. 

Army  Group  B: 

Our  tanks  and  motorized  forces  advancing  south  of  the  Donets 
River  have  reached  the  Chir  and  Tsaritsa  Rivers  and  established 
bridgeheads  across  them.   Other  divisions  are  closing  up.   Further  ad- 
vances depend  on  fuel  supply.   Strong  enemy  attacks  on  Voronezh  and 
our  positions  southeast  and  southwest  of  Yelets  were  repulsed. 

Central  Army  Group; 

Local  fighting  without  any  importance. 

Northern  Army  Group; 

Enemy  attacks  on  our  positions  south  of  Demyansk  were  re- 
pulsed. Pressure  against  the  area   southeast  of  Starava  Russn  has 

42*- 


CONFIDENTIAL 

21  Jul.  19  42 

lessened.   Several  attacks  by  strong  tank  forces  at  the  Volkhov  sector 
were  repulsed,  in  sone  instances  in  close-range  fighting.   South  of 
Leningrad  the  enemy  advanced  to  the.  railroad  bend. 

2.  Finnish  Front: 
Nothing  to  report. 

3.  North  Africa: 

No  reports  have  been  received. 


-$Q(t>- 


CONFIDENTIAL 
22  Jul.  1942 

Items  of  Political  Importance 

Great  Britain; 

Political  Review  No.  169,  paragraph  1  contains  the  parliamentary  de- 
bates about  the  economic  condition  of  German-occupied  European 
countries  and  reports  about  emergency  powers  of  the  British  Home  Sec- 
retary and  Empire  problems. 

U. S .S .R . t 

A  report  from  a  diplomatic  source  about  price  rises  in  Russia  is  con- 
tained in  Political  Review  No.  169,  paragraph  2. 

U.S.A.; 

Roosevelt  announced  the  nomination  of  Admiral  Leahy  as  Chief  of  Staff 
to  the  President  in  his  capacity  as  Commander  in  Chief  of  the  U.S. 
Armed  Forces.   The  U.S.A.  will  be  represented  at  Vichy  by  a  Charge 
d» Affaires. 

Some  time  ago  the  Saturday  Evening  Post  in  an  article  of  wide  scope 
discussed  the  fundamental  problems  of  warfare  and  arrived  at  very 
sober  conclusions  regarding  the  strength  of  the  opposing  parties--not 
just  the  material  strength  alone--and  the  chances  of  success.   A  de- 
tailed account  of  this  article  may  be  found  in  Political  Review  No.  16J9 
paragraph  5b. 

Canada; 

The  ban  on  the  Communist  Party  is  to  be  lifted. 

Vatican; 

The  Vatican  denies  that  the  Pope  is  going  to  issue  a  peace  encyclical 

Turkey; 

The  press  reports  that  Turkey  is  taking  additional  defense  measures  at 
the  Russian-Turkish  border.   According  to  unconfirmed  press  reports 
from  Istanbul  via  Vichy,  a  part  of  the  Russian  Black  Sea  fleet  is 
getting  ready  to  sail  for  Turkish  territorial  waters.   The  Turks  are 
said  to  be  making  preparations  for  interning  it  in  the  Sea  of  I.Iarrnora. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

In  a  Very  Restricted  Circle; 

I.   Report  of  the  Chief,  Operations  Branch,  Operations  Division,  Na- 
val Staff; 

1.  The  Northern  Army  Group  plans  to  seize  the  valley  near 
Oranienbaum  in  the  second  part  of  September. 

2.  Directive  No.  44  regarding  warfare  in  Finland: 

a.   The  operations  against  Timoshenko's  armies  have 


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CONFIDENTIAL 
22  Jul.  1942 

progressed  quicker  and  with  better  results  than  expected;  this  justi- 
fies the  hope  that  Russia  will  shortly  be  cut  off  from  her  communica- 
tions with  the  Caucasus  and  thus  from  an  important  supply  route 'and 
the  principal  source  of  fuel  oil  for  British  and  American  shipments  of 
war  material..  This  fact,  combined  with  the  loss  of  the  entire  Donets 
industry  will  deal  the  Soviet  Union  a  blow,  the  consequences  of  which 
canngt- ]je  estimated  at  present. 

b.  Our  next  task  is  therefore  to  cut  also  the  northern 
supply  line,  starting  with  the  rail  connection  to  Murmansk.   The  signif- 
icance of  this  supply  line  will  increase  once  more  when  season  and 
weather  conditions  prevent  effective  operations  against  the  convoys  in 
the  northern  area. 

c.  For  this  purpose,  the  ""20th  Army  Command  is  making  prepar- 
ations in  consultation  with  the  5th' Air  Force  to  seize  the  Murmansk 
railroad  at  Kandalaksha.   In  this  connection,  it  may  be  assumed  that: 

(1)  Leningrad -will  be  taken  by  September  at  the  latest, 
thus  freeing  Finnish  forces 

(2)  the  5th  Mountain  Division  will  have  arrived  in  Fin- 
land by  the  end  of  September. 

The  code  name  of  the  operation  is  "Lachsfang";  that  for  the  zero  day 
"L-day".  * 

d.  It  is  desirable  that  the  offensive  of  the  20th  Army 
Command  coincides  with,  the  Finnish  attack  on  Belongorsk. 

e.  The  most  important  assignment  of  the  20th  Army  Command 
is  still  to  protect  the  Finnish  nickel  production.   It  must  be  re- 
emphasized  that  the  loss  of  nickel  deliveries  would  deprive  Germany  of] 
any  possibility  of  producing  high-grade  steels,  in  particular  those 
needed  for  the  manufacture  of  airplane  and  submarine  engines. 

f.  Operation  "Wiesengrund"  will  not  be  executed  this  year. 
However,  preparations  for  it  are  to  continue  on  a  greater  scale,  so 
that  it  can  be  carried  out  in  the  spring  of  1943  on  short  notice  (aboiit 
8  weeks ) . 

Particular  attention  is  to  be  given  to  the  completion  and  reinforce- 
ment of  the  air  and  supply  bases  on  which  rest,  not  only  the  feasibility 
of  "Wiesengrund",  but  also  our  defenses  against  a  large-scale  enemy 
attack  in  the  north  are.a. 

g.  The  20th  Army  Command  and  the  Commander  in  Chief,  Air 
will  report  their  plans  as  soon  as'  possible. 

Conforming  with  paragraph  f ,  the  Naval  Staff  directs  Group  North  to 
continue  the  preparations  for  operation  "V/iesengrund"  according  to  the 
instructions  received  on  25  Jun.  1942  by  the  Operations  Division.  In 
particular,  all  questions  regarding  equipment  are  to  be  clarified,  and 
it  is  important,  to  establish  for  which  guns  smoke  projectiles  will  be 
needed. 

The  Naval  Staff,  Quartermaster  Division  is  requested  to  continue  with 
the  formation  and  the  training  of  the  2  landing  flotillas  so  as  to  get 
them  ready  by  spring  1943.   The  Chief,  Operations  Division,  Naval  Staff 
has  not  yet  informed  the  Admiral,  Amphibious  Forces. 


-l29k- 


22  Jul.  1042 

II.   Reoort  by  the  remanent  Representative  of  the  Commander  in  Chief 
at  t'-.e  Fuehrer  Headquarters  to  the  Chief  of  Staff,  llaval  Staff  con- 
cerning the  plans  for  future  operations  of  the  Army: 

After  the  Don  River  is  crossed,  the  annihilation  of  Tir.oshenko '  s 
armies  will  be  continued;  it  is  further  planned  to  strike  in  a  southerly 
direction,  seize  the  western  half  of  the  Kerch  Strait,  attack  its 
eastern  half  from  the  rear,  and  then  advance  along  the-  shore  to  Datum. 
This  will  be  done  with-  the  assistance  of  Mountain  troops  whioh  will 
outflank  the  enemy  positions  from  the  north  and  also  with  the  aid  of 
the  Ilavy  which  will  carry  assault  troops  for  a  flanking  maneuver  from 
the  sea.   The  main  objective  is  to  reach  Datum,  thereby  eliminating  the1 
Russian  fleet  and  securing  the  Dlack  Sea  as  a  safe  supply  route. 

The  Chief,  Quartermaster  Division,  Naval  Staff  has  therefore  already 
ordered  20  more  landing  barges  transported  to  the  Dlack  Sea  by  truck. 
The  next  objective  is  to  seize  Stalingrad,  cut  off  Volga  shipping,  theri 
to  reach  Astrakhan,  if  possible,  and  thus  cut  the  last  remaining  rail- 
road from  the  Caspian  Sea.   The  third  objective  is  to  reach  Daku  on  a 
route  east  of  the  Caucasus. 

As  soon  as  the  Caucasus  region  is  in  our  hands  and  the  supply  via  the 
Dlack  Sea  firmly  established,  a  number  of  motorized  expeditionary  corps 
are  to  advance  to  Mesopotamia  through  Iran  and  Iraq. 

At  the  remainder  of-  the  Eastern  Front  only  mopping,  up  operations  and 
the  elimination  of  partisan  forces  are  to  be  undertaken,  as  well  as  the 
Leningrad  and  Kandalaksha  operations. 

The  report  is  in  War  Diary,  Part  E,  file  "Darbarossa  II". 


Special  Items: 

I.  With  reference  to  the  Naval  Staff's  analysis  of  the  situation  as 
regards  an  enemy  landing  in  the  west  area  (see  War  Diary  of  21  Jul,), 
the  Air  Force  Operations  Staff  is  requested  to  order  a  thorough  in- 
vestigation of  the  enemy  situation  in  the  harbors  of  the  Dristol 
Channel,  the  Irish  Sea  and  the  North  Channel;  this  will  serve  to  sup- 
plement the  reconnaissance  made  of  the  Channel.   It  is  further  re- 
quested that  the  results  of  this  operation  be  communicated  to  the  Na- 
val Staff. 

For  copy  see  l/Skl  I  L  1410/42  Gkdos.  Chefs,  in  War  Diary,  Part  C, 
Vol.  V. 

II.  The  Operations  Division,  Naval  Staff  has  followed  up  its  analysis 
of  the  landing  possibilities  on  the  French  coast  with  an  extensive 
survey  of  the  landing  possibilities  in  the  Dutch  area. 


For  copy  of  this  survey  see  l/Skl  I  op  17845/42  G-kdos.  in  War  Diary, 
Part  C,  Vol.  lib.   Copies  have  been  submitted  to  the  Permanent  Repre- 
sentative of  the  Commander  in  Chief,  Navy  at  the  Fuehrer  Headquarters, 
the  Naval  Representative  on  the  Operations  Staff,  Armed  Forces  High 
Command;  and  the  Navy  Liaison  Officers  to  the  Army  General  Staff  and  tie 
Air  Force  Operations  Staff. 


-|29|3- 


CONFIDENTIAL 
22  Jul.  1942 

III.  On  1  Jul.  Group  North  submitted  plans  for  an  operation  of  the 
cruisers  LUETZOW  and  ADMIRAL  SCEEER  against  the  northern  Siberian  sea 
lane  in  the  eastern  Barents  Sea  and  the  Kara  Sea  and  asked  for  ap- 
proval. 

The  main  objective  of  this  plan  is  to  attach  shipping  through  the  norl|h 
passage  and  the  Yugor  Strait  to  the  northern  and  eastern  Siberian 
harbors.   Other  objectives  are  destruction  of  the  harbor  installation^ 
at  Amderna  by  gunfire  and.  the  annihilation  of  fishing  flotillas  en- 
countered. 

The  interval  between  two  Murmansk  convoys  during  August  is  considered 
propitious  for  the  operation.   The  operational  command  would  be  en- 
trusted to  the  Admiral,  Arctic  Ocean,  the  tactical  command  to  the 
Commanding  Admiral,  Cruisers. 

For  camouflage,  the  Trondheim  group  is  to, be  transferred  to  Narvik  fort 
the  duration  of  the  operation.   Owing  to  the  fuel  situation,  the  de- 
stroyers will  not  participate.   It  is  of  the  greatest  importance  that 
the  departure  of  the  cruisers  is  not  detected,  that  their  appearance 
comes  as  a  surprise  and  that  their  stay  in  the  zone  of  operations  is 
limited  in  view  of  possible  counterneasures  by  heavy  British  forces. 
For  all  these  reasons  it  is  necessary  to  establish  beforehand  whether 
worthwhile  targets  exist  at  all.   Group  North  requests  the  Naval  Staff] 
to  ascertain  this  fact  through  radio  intelligence  and  to  have  agents 
spread  rumors  about  a  planned  breakthrough  of  the  cruisers  to  the  At- 
lantic.  Ships  "13"  and  "24",  sailing  at  the  end  of  July,  are  supposed 
to  furnish  special  weather  and  ice  information. 

Of  exceptional  value  in  judging  navigational  conditions  is  the  report 
of  the  Naval  Attache  at  Moscow  of  13  Mar.  1941  dealing  with  the  voy- 
age of  ship  "45"  via  the  northern  route  in  1940. 

As  requested,  the  Naval  Staff  first  of  all  ordered  the  Hydrographic 
and  Meteorological  Division  to  supply  all  pertinent  information  as 
quickly  as  possible  to  the  Admiral,  Arctic  Ocean,  the  Commanding 
Admiral,  Cruisers,  the  LUL.TZ0V/,  SCKEER,  and  ships  "13"  and  "24"; 
furthermore,  the' Chief ,  Naval  Communications  Division  was  requested  to 
comment  on  the  possibility  of  ascertaining  the  existence  of  worthwhile, 
targets  in  the  zone  of  operations  by  radio  intercept  service.   Under 
existing  conditions  this  is  not  possible  and  monitoring  results  have 
so  far  been  available  only  for  the  Kola-Archangel  area.   The  Chief, 
Naval  Communications  Division  therefore  orders  intensified  efforts 
to  obtain  the  required  information  and  will  keep  Group  North,  the 
Fleet,  the  Admiral,  Arctic  Ocean,  and  the  Commanding  Admiral,  Cruisers 
informed  about  all  important  findings. 

On  13  Jul.  the  Naval  Staff  notified  Group  North  of  its  approval  in 
principle  and  left  it  to  the  Group's  discretion  to  conduct  the  opera- 
tion even  with  only  one  pocket  battleship. 

IV.  As  the  ice  barrier  recedes'  to  the  north,  the  enemy  is  enabled  to 
move  the  route  of  the  PQ,  covoys  farther  north  and  east.   During  the 
months  of  August  and  September  the  northern  end  of  Novaya  Zemlya  can 
be  skirted  and  Matochkin  Strait,  Kara  Strait  and  Yugor  Strait  are 

navigable. 

It  may  also  be  that  transshipment  facilities  at  the  mouth  of 'the 
Pechora  and  at  Amderma  v/ill  also  be  used,  besides  Archangel. 


42914- 


CONFIDENTIAL 
22  Jul.  1042 

This  of  course  greatly  limits  the  possibilities  of  successful  opera- 
tion for  both  submarines  and  air  forces.   Because  of  other  commit- 
ments, it  is  uncertain  whether  heavy  naval  forces  can  carry  out  such 
an  operation. 

The  llaval  Staff  therefore  requests  Group  North  to  examine  the  feas- 
ibility of  attacking  enemy  shipping  effectively  on  the  more  outlying 
routes  with  mines  and  to  submit  as  soon  as  possible  detailed  comments 
and  plans  for  the  information  of  the  Fuehrer,  who  has  asked  the  same 
question  (see  War  Diary  of  20  Jul.).   The  plans  should  include  opera- 
tions for  surface  minelayers,  and  should  be  based  on  the  assumption 
that  rack  mine  Type  A  is  ready  for  operational  use. 

For  copy  of  above  directive  see  1/Skl  I  op  1412/42  G-kdos.  Chefs,  in 
U/ar  Diary,  Part  C,  Vol.  Ila. 

V.    On  14  Jul.  the  Commander  in  Chief,  Navy  ordered  that  the  Naval 
attaches  Section  be  taken  out  from  under  the  organizational  and  juris- 
dictional command  of  the  Naval  Intelligence  Division  and  be  placed 
under  the  authority  of  the  Executive  Office  of  the  Commander  in  Chief, 
Navy. 

The  Naval  Attache  program,  and  their  cooperation  with  the  Naval  Staff 
and  other  offices,  are  not  affected  by  this  order. 

Naval  attaches  abroad  will  remain  directly  under  the  Chief  of  Staff  of 
the  Naval  Staff. 


Situation  22  Jul.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation; 

North  Atlantic ; 

Submarines  sighted  2  British  battleships  on  a  northwesterly 
course  in  quadrant  CF  7875,.  probably  the  NELSON  and  RODNEY,  which  wer 
reported  at  Freetown  as  convoy  escorts  on  4  Jul.   According  to  radio 
monitoring,  they  were  2  RAI.'.ILLIES -class  ships. 

Coastal  radio  stations  broadcast  an  RRR  signal  from  an  area  110  miles 
east-southeast  of  Trinidad. 

South  Atlantic; 

At  1133,  Freetown  rebroadcast  an  RRR  signal  originating  from 
26°  35'  S,  4°  40*  E  or  W ;  neither  longitude  nor  text  were  intercepted,' 
so  that  it  is  difficult  to  evaluate  the  message.   According  to  an  in- 
telligence report,  Freetown  was  back  to  normal  on  6  Jul.  with  about 
20  merchant  vessels,  5  to  6  destroyers  and  1  small  aircraft  carrier 
after  the  super-convoy  of  more  than  100  ships  had  left  on  4  Jul. 

According  to  another  Intelligence  report,  several  U.S.  steamers  un- 
loaded armored  cars  with  solid  rubber  tires  at  Port  Harcourt,  during 
the  last  few  weeks,  which  are  to  be  reshipped  first  by  rail  and  then 
by  road  to  Fort  Lamy. 


J29fe- 


CONFIDEITTIAL 
22  Jul.  1942 

Indian  Ocean: 

Convoy  WS  20  was  in  the  Capetown  area  on  21  Jul.  headed  fo:* 
Durban.   A  large  British  ship  was  approaching  Sinonstown. 

British  convoy  passed  Lourenco  Ilarques  on  20  Jul.  in  the  direction  of 
the  Persian.  Gulf .   The  last  previous  convoy  observed  on  this  route  was 
reported  on  ic  Jul.;  it  consisted  of  2C  ships. 

The  captains  of  3  Greek  vessels  were  arrested  at  Lourenco  I.Iarques  be- 
cause they  had  refused  to  proceed  in  convoy. 

Pacific  Ocean: 

An  Australian  steamer  50  miles  'off  Sydney  reported  being  hit 
by  a  torpedo. 

2.    Own  Situation: 

Ship  "10"' s  prize,  the  NANKIN,  arrived  at  Yokohama  on  18  Jul 
As  far  as  known,  her  cargo  consists  of  5,500  bales  of  wool,  war  ma- 
teriel, and  foodstuffs. 

All  ships  in  foreign  waters  are  advised  by  Radiogram  0229: 

a.  Not  to  proceed  with  war  pistols  mounted,  if  spare  torpedoes 
are  carried  on  the  upper  deck. 

b.  To  protect  torpedo  warheads  from  the  sun  at  temperatures 
above  30°  C  (86°  P);  they  must  be  kept  in  the  shade,  sprinkled,  or 
covered  with  v/et  canvas.   Dry  or  oily  tarpaulin  is  liable  to  ignite 
spontaneously. 

c.  Warheads  and  pistols  in  the  tubes  must  be  adequately  lubri- 
cated. 

Extract  from  the  report  of  the  REGETTSBURG:   The  "Richard"  area  is  very 
suitable  as  a  waiting  area;  in  20  days  not  a  single  ship  was  sighted. 
The  best  camouflage  for  day  and  night  is  a  coat  of  light  grey  or  green- 
ish grey  flat  paint.   The  wheel-house  should  be  protected  by  cement  anc, 
not  by  sand,  on  account  of  humidity.   Secret  orders  entitled  "Western 
Approaches  Orders"  of  17  Dec.  1941  were  found  on  the  NANKIN,  dealing 
with  measures  to  prevent  the  scuttling  of  German  blockade  runners  and 
auxiliary  vessels.   With  the  signal  "WBA"  fire  is  to  be  opened  in  order, 
to  confuse  the  captain  of  the  stopped  ship  and  thus  to  prevent  scuttling, 
The  crews  of  scuttled  ships  should  not  be  abandoned  in  view  of  possible 
retaliatory  measures . 

All  ships  in  foreign  waters  are  instructed  of  the  above  by  Radiogram 
2214.   Enemy  situation  report  with  Radiogram  1920. 


II.   Situation  West  Area 

1.    Enemy  Situation: 

According  to  a  press  wire  from  New  York  to  Santiago  (Chile), 
British  observers  reported  actual  preparations  and  growing  troop  con- 
centrations for  a  second  western  European  front. 


-|29|6- 


confidential 


22  Jul.  1942 


Intelligence  reports^  on  the  basis  of  a  conversation  overheard  between 
the  harbor  commander  of  Liverpool  and  the  captain  of  a  British  steamer 
that  the  first  stage  of  the "main  assault  of  the  landing  operations 
will  take  place  via  Gibraltar  on  the  French  Mediterranean  coast,  and 
the  fullest  cooperation  of  the  population  is  expected.   The  second 
stage  will  comprise  an  invasion  on  the  French  Atlantic  coast  origina- 
ting from  the  English  south  coast. 

Radio  monitoring  located  2  unidentified  ships,  4  mine  sweepers,  and 
other  vessels  in  the  eastern  part  of  the  Channel,  and  in  the  -western 
part  2  ships,  5  subchasers,  6  mine  layers  and  several  other  small 
vessels. 

At  0933  air  reconnaissance  observed  a  concentration  of  landing  craft 
between  Chatham  and  Sheerness,  and  lively  convoy  traffic,  as  usual, 
off  the  south  coast. 

2.    Own  Situation: 

Atlantic  Coast; 

3  mines  were  swept  off  Lorient  by  a  mine-sweeping  plane  and 
3  by  a  mine-exploding  vessel.  The  harbor  and  roadstead  of  La  Pallice 
were  reopened. 

Disciplinary  action  by  the  French  Admiral  because  of  the  destruction 
of  transmission  belts  resulted  in  a  one  hour  strike  by  part  of  the 
French  personnel  of  the  carpenter  shop  at  the  Brest  Ilaval  Shipyard. 

Channel  Coast; 

A  belated  report  lists  3  enemy  planes  shot  down  by  naval 
units'  and  anti-aircraft  guns  on  19  and  21  Jul.;   a  4th  plane  was  prob- 
ably shot  down.   Naval  batteries  shot  down  5  more  planes  out  of  a  major 
enemy  formation  flying  over  the  Ostend  area  on  21  Jul.  at  1700. 

During  the  night  of  21  Jul.,"  mine-laying  operation  "Stein"  was  carried 
out  according  to  plan.   Naval  batteries  shot  down  2  enemy  planes  on 
the  morning  of  22  Jul. 


III.  North  Sea,  Norway,  Arctic  Ccean 

1.   North  Sea: 

Enemy  Situation: 

Air  reconnaissance  reports  normal  convoy  traffic  off  the 
southeast  coast. 

Own  Situation: 

The  17th  Mine  Sweeper  Flotilla  and  mine-exploding  vessels 
swept  8  mines  off  Terschelling  and  Borkum.   Convoy  and  mine-sweeping 
activities  suffered  from  bad  weather.   1  enemy  plane  was  shot  down  by 
naval  anti-aircraft  artillery  in  Dutch  territory;  it  belonged  to  a 
force  which  passed  over  Holland  to  the  Rhenish-Westphalian  Industrial 
area  during  the  night  of  21  Jul. 


-[29l7- 


CONFIDENTIAL 

22  Jul.  1942 

Naval  Station,  North  Sea  raises  questions  regarding  an  order  of  the 
Commander  in  Chief,  West  on  the  basis  of  which  certain  .subordinate 
commands  are  taking  measures  to  -destroy  vital  installations  in  case  oJ 
an  enemy  landing.   These  installations  v/ould  be  extremely  difficult  to 
repair  after  the  enemy  has  been  driven  off.   In  the  opinion  of  Naval 
Station,  North  Sea,  the  right  to  order  such  a  measure  should  rest  ex- 
clusively with  the  Operations  Staff,  Armed  Forces  High  Command,  the 
Army  General  Staff,  and  the  Commander  in  Chief,  Y.'est.  (See  Telegram 
1915.) 

Also  the  Naval  Staff  believes  that  this  question  should 
be  clarified. 

2.  Norway: 

A  Russian  battery  fired  on  a  Petsamo  convoy  on  21  Jul. 

Enemy  air  activity  of  20  and  21  Jul.  over  the  Arctic  coast  and  the 
Norwegian  northern  and  western  coasts.   Raids  occurred  on  Petsamo, 
Kirkenes,  a  harbor  patrol  vessel  off  Stadtland  and  on  the  Rundoe  coast 
guard  station. 

The  Fleet  Commander  reembarked  on  the  HE LA  at  Trondheim. 

3.  Arctic  Ocean: 

Enemy  Situation: 

Submarines  sighted  4  S0I.IERS  class  destroyers  (U.S.A.)  on  a 
course  of  50°  in  quadrant  AB  3755  'around  2000. 

A  6,000  GRT  tanker  escorted  by  1  destroyer  and  1  patrol  vessel  was 
sighted  on  a  course  of  160°  80  miles  southwest  of  Iceland  at  1030  by 
air  reconnaissance. 

5  medium  sized  merchant  vessels  and  probably  1  torpedo  boat  were  ob- 
served at  Archangel  at  noon.   1  medium  sized  and  5  small  merchant 
vessels  were  in  Koller  Bay  (Novaya  Zemlya ) . 

Special  Item: 

For  brief  report  of  the  Uilhelmshaven  Intelligence  Center  about  the 
questioning  of  3  captains  from  convoy  PQ  17,  see  l/Skl  25271/42  geh . 
in  War  Diary,  file  "Roesselsprung" .   The  report  contains  course 
specifications  for  the  run  from  Philadelphia  to  Reykjavik.   The  escort 
from  Reykjavik  is  as  follows:   remote  escort  by  2  British  cruisers  and' 
the  U.S.  cruisers  WICHITA  and  TUSCALOOSA;  close  escort  by  approximately 
12  destroyers,  one  of  them  American,  as  well  as  corvettes,  sloops,  so- 
called  mystery  ships,  and  2  submarines.   The  latter  also  sink  damaged 
ships  belonging  to  the  convoy  in  order  to  prevent  their  seizure.   Lib- 
erty ships  have  a  displacement  of  6,000  GRT  and  a  speed  of  12  knots. 
The  effect  of  German  aerial  torpedoes  is  termed  poor. 

Own  Situation: 

Group  North  believes  that  intelligence  reports  about  prepar- 
ations for  another  PQ  convoy  (see  War  Diary  of  21  Jul.)  are  very 
probably  correct.   The  Admiral,  Arctic  Ocean  therefore  is  ordered  to 
put  his  submarines  into  action  as  soon  as  possible  according  to  plan. 
Copy  of  telegram  l/Skl  17928/42  Gkdos.  is  in  War  Diary,  Part  C,  file 
"Eispalast". 


-feafe- 


CONFIDENT I AI 
22  Jul.  1942 

Submarine  U  "377"  was  damaged  by  depth  charges  during  an  attack  by 
the  destroyer  force  in  quadrant  AB  3841  and  had  to  return  to  Trond- 
heim.   The  purpose  of  the  enemy  destroyers  in  the  area  northwest  of 
Bear  Island  is  not  yet  clear.   Their  high  speed  seems  to  preclude 
their  being  convoy  escorts. 


IV.   Skagerrak.  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Sltuationt 
Nothing  to  report. 

2.  Own  Situation; 

The  destroyer  ERICH  STEINBRINCK  is  proceeding  northward  from; 
the  Skagerrak  unescorted.   The  Danish  sailing  vessel  RUTH  struck  a 
mine  and  sank  in  the  fairway  off  Panoe.   1  ground  mine  was  swept  in 
Plensburg  Poerde  by  a  mine-exploding  vessel. 

Mining  operations  in  the  area  of  the  Commanding  Admiral,  Defenses, 
Baltic  Sea  were  curtailed  due  to  weather  conditions.   Convoy  and  trans 
port  service  according  to  plan. 

Swedish  air  reconnaissance  will  begin  to  function  as  suggested  on 
23  Jul.  south  of  the  Aland  Sea  in  the  waters  adjacent  to  those 
patrolled  by  Finnish  air  reconnaissance. 


V.    Merchant  Shipping 

Japan : 

The  Secret  State  Council  voted  to  amend  the  law  governing  the 
control  of  the  entire  shipbuilding  industry,  so  that  only  the  Navy 
Ministry  and  not  the  Ministry  of  Transportation  will  be  responsible. 


VI.   Submarine  Warfare 

1.  Enemy  Situation; 

Radio  monitoring  intercepted  a  message  about  the  torpedoing 
of  the  steamer  HONOLULAN  (7,493  GRT)  about  540  miles  west  of  Freetown; 
also  a  message  from  an  unidentified  ship,  which  was  fired  on  at  04° 
26'  N,  03°  33'  W  (off  the  Gold  Coast).   (A  submarine  is  out  of  the 
question.)   In  addition,  reports  were  intercepted  about  submarines 
sighted  off  the  American  coast  and  in  the  West  Indies. 

2.  Own  Situation; 

Regarding  the  operations  of  the  submarines  belonging  to  the 
Norwegian  Group  see  Situation,  Arctic  Ocean. 


-fe9*- 


confidential' 

22  Jul.  1942 

The  efforts  of  3  submarines  in  the  llorth  Atlantic  to  attach  the  2 
battleships  sighted  by  submarine  U  "564"  in  quadrant  CF  7G75  were  un- 
fortunately unsuccessful.   They  lost  sight  of  the  enemy  at  1400  in  ' 
quadrant  CF  7577. 

Task  force  ",,Voif'f  v;as  issued  a  new  order  to  take  up  patrol  positions 
between  quadrants  AK  7213  and  AK  7861  on  23  Jul.  at  0000  in  expecta- 
tion of  en"  eastbound  convoy  detected  by  radio  monitoring. 

No  reports  about  any  successes  off  the  American  coast  were  received.   i 
Submarine  U  "160"  sank  the  tanker  D0N0VANIA  (0,150  GRT )  in  quadrant  ED 
D945  (West  Indies)  on  21  Jul. 

The  steamer  H0N0LULAN  was  sunk  by  submarine  U  "502"  of  the  South  Atlant 
tic  group  in  quadrant  ES  3457  (see  Enemy  Situation). 


VII.  Aerial  Warfare 

1.  British  Iqles  and  Vicinity: 

Bombers  raided  the  alternate  targets  Brighton  and  Hull. 

11  German  planes  raided  the  alternate  targets  Ipswich  and  Cromer*  during 
the  night  after  unsuccessfully  attacking  ships  at  sea. 

2.  Mediterranean  Theater; 

Day  and' night  attacks  on  the  Malta  airfields. 

According  to  a  report  of  the  Air  Commander,  llorth  Africa,  the  tense 
situation  of  the  Panzer  Army  was  alleviated  in  the  afternoon  by  a 
concentrated  air  attack  on  enemy  tank  and  motorized  columns. 

According  to  an  Italian  report,  1  steamer  was  sunk  by  an  aerial  tor- 
pedo off  Port  Said. 

3.  Eastern  Front: 

47  enemy  planes  were  shot  down  in  front  of  our  attacking 
armies  and  in  the  area  of  the  5th  Air  Force. 

i 
The  5th  Air  Force  raided  the  airfield  and  railroad  line  of  Taibola  witq 
good  results. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.    Enemy  Situation: 

Mediterranean : 

The  EAGLE  group  arrived  at  Gibraltar.   The  MAIIXMAN  and  1 
DRAGON  class  cruiser  sailed  from  Gibraltar  in  a  westerly  direction. 

1  submarine  was  located  in  the  forenoon  14  miles  south  of  Genoa. 


■Pt>- 


confidential 


22  Jul.  1942 


The  arrival  of  2  steamers  at  Valletta,  as  reported  by  the  German  Naval 
Command,  Italy  on  21  Jul.,  was  not  substantiated  by  today's  reconnais- 
sance results,  which  show  one  newly  arrived  submarine. 

Normal  convoy  traffic  between  Alexandria  and  Port  Said.   German  planes 
observed  the  sinking  of  a  steamer  north-northeast  of  Port  Said,  which 
was  hit  by  an  Italian  aerial  torpedo.   A  force  of  6  or  S  ships  (2 
steamers  escorted  by  2  cruisers  or  destroyers  and  patrol  vessels)  with 
strong  fighter  escort  proceeded  on  a  westerly  course  in  the  afternoon 
north  of  the  Nile  River  Delta. 

2.    Own  Situation: 

Mediterranean : 

No  PT  boat  activity  during  the  night  of  21  Jul.   5  motor  mine 
sweepers  were  engaged  in  escort  duty.   4  submarines  are  in  the  zone  of 
operations,  1  more  is  en  route  there. 

For  the  brief  report  of  the  3rd  PT  Boat  Flotilla  concerning  the  night 
of  19  Jul.  see  Telegram  1145. 

The  German  Naval  Command,  Italy  reports  on  the  patrolling  of  the  coastal 
waters  off  our  North  African  supply  ports  (see  War  Diary  of  19  Jul.): 

a.  Daylight  patrols  by  air  forces  were  requested  of  the  Command- 
ing General,  Armed  Forces,  South,  who  promised  them.   Actually,  there 
are  few  patrols  owing  to'  the  lack  of  planes. 

b.  Night  patrols  are  carried  out  at  present  by  only  3  boats  of 
the  3rd  PT  Boat  Flotilla.   Chances  of  success  against  enemy  destroyers 
and  night  fighters  are  slight.   Italian  PT  boats  are  en  route.   It  is 
impossible  to  increase  convoy  protection  by  means  of  destroyers. 

c.  Mine  barrages  for  the  harbors  have  been  requested  from  the 
Italian  Naval  Command,  Libya  and  the  Italian  Admiralty.   At  the  moment 
it  seems  impossible  to  lay  them.   The  planned  Benghazi  mine  barrage  has 
been  under  discussion  for  a  full  year  without  results. 

d.  The. approaches  are  not  kept  free  of  mines,  because  motor  mine 
sweepers  are  engaged  in  escort  missions.   Italian  mine  sweepers  are  in 
operation  at  Tobruk  only,  but  in  insufficient  numbers. 

The  Commanding  Admiral,  German  Naval  Command,  Italy  makes  the  following 
pertinent  comment  on  this  discouraging  picture. 

"V/e  have  no  choice  but  to  use  all  ships'  weapons  and  to  strain  German 
forces  to  the  utmost;  great  risks  and  setbacks  are  unavoidable.   However 
the  situation  at  the  front  and  the  weakness  of  the  Panzer  Army  force  us 
to  carry  on.n   (See  Telegram  0930.) 

In  connection  with  this  comment  on  the  part  of  its  commander  from  North 
African  headquarters,  the  German  Naval  Command,  Italy  reports  from  Rome: 

a.  For  the  last  3  days  the  Italian  Admiralty  has  been  preparing 
thfe  mine  field  for  Marsa  Matruh.   Standard  mines  type  C  will  be  laid  by 
2  destroyers  in  about  one  week. 

b.  2  magnetic  mine-sv^/eeping  apparatuses  will  be  shipped  to  Africa. 
on  naval  barges  on  23  Jul. 


430tL- 


CONFIDENTIAL 
£2  Jul.  1942 

c.    Sansonetti  also  promised  to  reinforce  the  Tobruk  barrage,  to 
speed  reinforcements  for  the  coastal  artillery,  and  to  transfer  addition- 
al Italian  PT  boats. 

Regarding  the  request  of  the  German  Naval  Command,  Italy  to  equip  a 
number  of  naval  barges  for  use  as  improvised  mine  sweepers  see  Telegram 
1150.   The  Naval  Staff  Quartermaster  Division  is  handling  this  matter. 

3.  Transport  of  Supplies  to  North  Africa: 

The  PILO  convoy  was  attached  by  enemy  planes  at  noon  on  21  Jul 
and  the  steamer  v/ACIITPELS  during  the  night  of  21  Jul.,  both  unsuccess- 
fully.  The  PILO  put  in  at  Uavarino  temporarily*   Other  activities  ac- 
cording to  plan.   On  21  Jul.  1,552  tons  of  material  were  unloaded  at 
Tobruk  and  670  tons  at  Liars  a  Llatruh. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Approximately  25  4-motored  Liberator  type  enemy  planes  raided 
Candia  during  the  evening  of  21  Jul. 

Black  Sea: 

No  important  events. 

The  problem  of  transferring  naval  barges  through  the  Kerch  Strait  to  the 
Sea  of  Azov  is  currently  being  investigated  by  Naval  Group  South  in  con- 
sultation with  the  11th  Army  High  Command.   It  is  intended  to  transfer 
12  barges  early  in  August.   For  details  see  Telegram  2130. 


IX.   Situation  East  Asia 

According  to  a  communication  from  the-  Japanese  Navy,  13  enemy  ships 
of  105,000  GFlT  and  another  10  ships  of  unknown  tonnage  were  sunk  by 
Japanese  submarines  in  the  western  Indian  Ocean  between  15  Jun.  and  25 
Jul.   2  vessels  totalling  15,000  GRT  were  captured.   The  enemy  press  re- 
ports that  Port  I.Ioresby  was  raided  by  2G  heavy  Japanese  bombers  with 
fighter  escort. 

The  U.S.  Navy  Department  announces  that  3  Japanese  destroyers  were  sunk 
by  U.S.  submarines  in  the  Kiska  (Aleutian)  area. 


X.    Army  Situation 

1.    Russian  Front; 

Army  Group  A: 

German  Panzer  divisions  broke  through  the  anti-tank  defenses 
west,  northwest  and  north  of  Rostov „ 

The  Panzer  forces  which  crossed  the  Don  River  east  of  Rostov  in  a  broad 
front  are  advancing  steadily.   The  towns  of  Novocherkassk,  Sulin  and  Log 


-feojs- 


C0ITFIDL1TTIAL 


22    Jul.    1942 


were  captured  and  a  line  extending  on  either  side  of  Bystry  was  readied. 

Amy  Group  3: 

On  the  southern  sector  our  spearheads  have  reached  the  rail- 
road line  liorozovskiy-Oblivsk .   To  the  north  our  divisions  closed  in  on 
the  Chir  and  Tsaritsa  Rivers.   The  enemy  unloaded  troops  at  Kalach  (75 
km  west  of  Stalingrad)  in-order  to  halt  the  German  advance  on  the  Liska 
River  and  to  gain  time  to  organize  a  defense  front  between  the  Don  and 
Volga  Rivers.   Enemy  attacks  on  the  northeastern  flank  of  the  Army  Group 
contimi.e  between  Voronezh,  Yelets  and  Livny. 

Central  Army  Group: 

Partisan  fighting  in  the  Bryansk  area.   German  forces  advanc- 
ing in  a  northwesterly  direction  from  Demidov  made  contact  with  the 
units  advancing  in 'a  southeasterly  direction  from  Velizh. 

northern  Army  Group: 

The  enemy  penetration  south  of  Leningrad  was  cleaned  up  through 
a  counterattack  of  our  forces.   Fighting  is  still  in  progress.   New 
enemy  attacks  are  expected. 

2.  Finnish  Front: 
llothing  to  report. 

3.  North  Africa: 

The  enemy  attacked  the  central  and  northern  front  sector  with 
strong  forces  during  the  night  of  21  Jul.  and  on  the  following  day.  All 
attacks  were  repulsed.   60  enemy  tanks  were  destroyed  and  1,000  prisoners 
taken.   It  is  anticipated  that  the  attack  will  be  renewed  during  the 
night  of  22  Jul.  and  throughout  23  Jul. 


43C|3- 


CONFIDENTIAL 
23  Jul.  1942 

Items  of  Political  Importance 

India: 

The  Government  decided  to  lift  the  ban  on  the  Communist  Party. 

Egjp_t: 

The  Government  agreed  to  the  founding  of  a  new  party  consisting  of 
Egyptian  circles  enjoying  British  confidence.   Its  members  are  influen- 
tial financiers  and  industrialists. 

Turkey; 

The  appointment  of  Mr.  Arikan  as  Ambassador  to  Berlin  is  the  result  of 
the  desire  of  the  President,  shared  by  the  Prime  Minister  and  the 
Foreign  Minister,  for  increased  cooperation  with  Germany  and  their 
endeavor  to  intensify  the  existing  cordial  relations. 

U.S.A. : 

The  Maritime  Commission  announced  that  the  sinkings  on  12  Jul.  were  the 
highest  of  the  war.   The  loss  of  U.S.  ships  due  to  enemy  action,  includ- 
ing mines,  greatly  exceeds  new  ships  being  built.   It  is  therefore 
necessary  to  limit  cargo  to  essential  war  materials. 

China: 

Diplomatic  sources  report  that  increasing  uneasiness  is  noticeable  in 
Chungking  about  the  development  of  the  war.   There  is  unconcealed  dis- 
appointment about  the  inability  of  the  Allies  to  take  the  offensive,  at 
least  'to  launch  a  naval  offensive  against  Japan  in  order  to  alleviate 
the  present  situation. 

U.S.S.R. : 

Pravda  demands  increased  peat  and  timber  production  in  order  to  keep 
Soviet  industry  going  during  the  coming  winter.   The  New  York  Herald 
Tribune  emphasizes  the  seriousness  of  the  supply  situation,  since 
Russian  reserves  are  said  to  be  practically  exhausted  and  Anglo-American 
deliveries  far  from  sufficient  to  fill  the  gap. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  The  Chief,  Naval  Communications  Division  reports  about  the  installa- 
tion of  additional  coastal  listening  stations  in  Norway.   2  posts  are 
planned  for  Alta  Fjord.   Increased  production,  though  highly  desirable, 
is  impossible  due  to  lack  of  material. 

II.  The  Deputy  to  the  Chief  of  the  Quartermaster  Division,  Naval  Staff 
reports  about  the  transfer  of  the  7th  PT  Boat  Flotilla  (PT  boats  S  *1511' 
to  "158")  to  the  Mediterranean,  beginning  on  10  Sep.   French  consent  to 
the  use  of  French  inland  waterways  which  was  requested  on  19  Jul.  has 
already  been  received. 

In  a  Very  Restricted  Circle: 

III.  The  Chief  of  Operations  Branch.  Naval  Staff  Operations  Division 


-feQi- 


CONFIDENTIAL 

23  Jul.  1942 

reports  about  the  order  of  the  High  Command,  North  Africa  of  16  Jul.  to 
the  Panzer  Array,  as  reported  by  the  German  General  at  Rorae  to  the  Oper?  ■ 
tions  Staff,  Armed  Forces  High  Coraraand. 

"The  following  is  reported  by  order  of  the  Duce: 

1.  The  Duce  appreciates  the  performance  of  the  Panzer  Army  dur- 
ing the  fight  to  break  the  enemy's  resistance. 

2.  He  particularly  appreciates  the  immediate  action  of ( the  motor- 
ized forces  to  prevent  enemy  break-through  attempts  at  the  central 
front  sector. 

3.  ■  Nov/,  that  the  situation  at  this  sector  has  been  restored  he 
considers  it  necessary  to  abandon  any  offensive  which  would  place  ad- 
ditional strain  on  our  infantry  as  well  as  on  the  motorized  forces  and 
would  thereby  interfere  with  their  rehabilitation  for  future  tasks. 
This  refers  in  particular  to  the  infantry  divisions  which  are  fighting 
under  extremely  unfavorable  conditions  and  are  therefore  subject  to 
particular  strain. 

4.  The  Panzer  Army  is  to  reorganize  as  quickly  as  possible  in 
accordance  with  the  above  basic  directive. 

5.  As  reported  earlier,  the  Italian  High  Command  and  the  German 
High  Command,  Armed  Forces,  North  Africa  have  taken  steps  to  supply  re- 
inforcements of  manpower  and  materiel  as  fast  as  possible  and  to  safe- 
guard the  supply  of  the  Panzer  Army,  considering  its  special  needs  for 
future  tasks." 


Special  Item; 

A  compilation  of  the  enemy  communications  intercepted  between  13  and  19 
Jul.  1942  by  radio  monitoring  and  decoding  services  Is  contained  in 
Radio  Intelligence  Report  No.  29/42  of  the  Chief,  Naval" Communications 
Division,  Communications  Intelligence  Branch. 

It  is  interesting  to  note  that  steamers  reported  sighting  51  German 
submarines  in  the  Atlantic,  including  U.S.  coastal  areas,  and  sub- 
marines reported  sighting  12.   The  U.S.  has  introduced  routine  convoy 
service  for  shipping  in  the  South  Atlantic. 


Situation  25  Jul.  1942 

I.   War  in  Foreign  Waters: 

1.   Enemy  Situation: 

South  Atlantic: 

According  to  an  intelligence  report  and  to  Italian' accounts, 
large  convoys  carrying  troops  and  materiel  have  sailed  simultaneously 
from  U.S.  and  British  ports  for  the  Red  Sea  around  the  Cape.   The 
British  convoy  left  Liverpool  on  21  Jul.  and  will  first  call  at  Free- 
town. 

An  agent  aboard  a  Spanish  steamer  reports  that  his  ship  was  searched 

by  a  U.S.  destroyer  1§  days  out  of  Rio;  the  destroyer  was  fisrortinc  a  large 


43CJ5- 


CONFIDENTIAL 
23  Jul.  1942 

tanker  equipped  with  a  catapult . 

According  to  a  report  of  the  Naval  Attache  at  Buenos  Aires,  the 
steamer  QUEEN  MARY  was  anchored  off  Rio  on  12  Jul.;  she  was  previously 
reported  at  Freetown  on  4  Jul.  together  with  the  steamer  QUEEN  ELIZA- 
BETH. The  latter  was  observed  on  19  Jul.  by  air  reconnaissance  at 
Suez,  having  left  Colombo  on  30  Jun.  for  Port  Elizabeth,  according  to 
an  agent  report.   This  would  tend  to  confirm  the  transfer  of  troops 
from  India  to  Egypt. 

A  Portuguese  diplomatic  source  reports  the  arrival  of  a  great  many 
ships  with  war  material  at  Loango  (north  of  the  Congo  River  mouth  at 
Pointe  Noire).   The  material  is  to  be  shipped  to  Brazzaville  by  rail. 
This  information  is  interesting  in  view  of  the  reported  landing  of 
80,000  men  at  Pointe  Noire. 

Pacific  Ocean: 

Submarine  warnings  were  intercepted  in  the  area  between 
Brisbane  and  Sydney  and  east  of  Hobart  (Tasmania). 

2.   Own  Situation t 

Reports  were  received  about  a  number  of  gratifying  achieve- 
ments by  the  auxiliary  cruisers: 

Ship  "28"  reports  the  sinking  of  the  GLOUCESTER  CASTLE  (8,006  GRT)  in 
large  quadrant  E0  and  the  WILLIAM  F.  HUMPHREY  (7,983  GRT)  and  the 
ARAMIS  (9,160  GRT)  in  large  quadrant  FG.  The  present  position  of  ship 
"28"  is  in  large  quadrant  FT.  (See  Radiogram  0158.) 

An  additional  short  signal  from  ship  "28"  indicates  that  8  vessels 
totalling  56,000  GRT  were  captured  so  far  and  contains  the  directive 
to  the  depot  ship  CHARLOTTE  SCHLIEMANN:  "Wait".   (See  Radiogram  0325.) 

In  a  third  short  signal  ship  "28"  reports  the  seizure  of  an  enemy  mer- 
chant shipping  code  and  calls  attention  to  the  fact  that  submarines 
could  operate  to  advantage  in  the  Gulf  of  Guinea.  (See  Radiogram  0419.) 

Finally,  ship  "28"  proposes  a  rendezvous  with  ship  "23"  some  time  in 
July  in  large  quadrant  FT.  (See  Radiogram  0456.) 

The  Naval  Staff  informs  the  CHARLOTTE  SCHLIEMANN  of  its  intention  to 
arrange  a  rendezvous  also  with  ship  "28";  further  details  are  to  follow 
since  the  rendezvous  depends  on  the  delivery  of  supplies  to  ship  "23". 
(See  Radiogram  2202.) 

The  Naval  Staff  instructs  ship  "23"  and  ship  "28"  by  Radiogram  2319  as 
follows : 

a.  Radio  Norddeich  received  proposal  of  ship  "28"  for  rendezvous 
with  ship  "23"  during  July  in  large  quadrant  FT. 

b.  The  rendezvous  point  will  be  quadrant  FT  77,  left  bottom 

corner. 

c.  Ship  "23"  will  report  by  number  the  date  at  which  she  will 
arrive  at  the  rendezvous  point  at  1600;  or  if  the  rendezvous  is  not 
possible,  will  signal  FOTC,  meaning  no. 


±346- 


CONFIDENTIAL 
23  Jul.  1942 

d.  The  Naval  Staff  informed  the  SCHLIEMANN  that  a  rendezvous 
with  ship  n28n  is  planned  too,  and  that  additional  information  will 
follow,  since  it  is  dependent  on  supplying  ship  M23M.   This  does  not 
affect  the  order  given  by  the  Naval  Staff  on  8  Jul.  for  ship  "23"  to 
report   (concerning  the  fuel  supply  for  SCHLIEMANN). 

e.  The  Naval  Staff  points  out  that  the  SCHLIEMANN  has  no  facili 
ties  to  accommodate  prisoners. 

f.  2  blockade  runners,  sailing  from  Japan  in  August,  are  being 
equipped  to  take  over  prisoners  if  necessary. 

Citation  by  the  Commander  in  Chief,  Navy  and  bestowing  of  decorations 
as  reward  for  the  latest  achievements  of  ship  "28n  by  Radiogram  0341. 

Radiogram  0129  informs  ships  "28"  and  "23"  that,  effective  immediately, 
the  new  line  of  demarkation  between  their  zones  of  operation  will  run 
southward  along  longitude  18°  W  to  latitude  22°  S  and  from  there  to  th^ 
right  bottom  corner, of  quadrant  GP;  ship  "28"  will  operate  east  and 
northeast  of  this  line,  ship  "23"  west  and  southwest  of  it. 

The  HERBORG,  captured  by  ship  "10w,  arrived  at  Yokohama  on  22  Jul.  with 
12,000  tons  of  crude  oil. 

Ship  n10M  is  informed  by  Radiogram  1017  that  her  prize,  the  steamer 
NANKIN,  arrived  at  Yokohama  on  18  Jul.  (See  War  Diary  of  22  Jul.) 

Ship  H10"  reports  by  short  signal  at  1919  that  she  captured  and  sub- 
sequently sank  the  British  steamer  INDUS  (5,200  GRT).   Radio  intelli- 
gence had  already  intercepted  reports  of  the  pursuit.   (See  War  Diary 
of  20  Jul.) 

The  achievements  of  the  auxiliary  cruisers  are  highly 
pleasing  and  valuable,  all  the  more  as  they  are  proof 
of  the  threat  to  enemy  shipping  even  outside  the  range 
of  submarines.  Thus  the  enemy  is  compelled  to  use  con- 
siderable forces  for  the  protection  of  all,  his  overseas 
traffic  lanes.  The  relief  afforded  to  our  blockade 
runners  is  also  important. 

Enemy  situation  report  to  all  ships  in  foreign  waters  through  Radio- 
grams 0624,  0720,  and  1017. 

Radiogram  1302  contains  information  about  the  outcome  of  the  operation 
against  convoy  PQ  17,  denial  of  the  torpedoing  of  the  TIRPITZ,  and 
short  report  about  the  situation  at  the  Eastern  Front  and  in  North 
Africa. 

Radiogram  1746  contains  information  about  the  enemy  shipping  situation 
as  of  1  Jun.  according  to  the  calculations  of  the  Naval  Intelligence 
Division,  Foreign  Merchant  Marine  Branch.   In  this  connection,  the 
Naval  Staff  asserts  that  if  the  present  sinking  record  can  be  maintained, 
the  available  enemy  shipping  space  at  the  beginning  of  1943  will  be 
less  than  at  the  beginning  of  1942,  in  spite  of  the  gigantic  ship- 
building program;  an  increase  of  enemy  tonnage  need  not  be  expected 
before  the  beginning  of  1944. 


-fcot- 


CONFIDENTIAL 
23  Jul. .1942 

II.   Situation  West  Area 

1.  Enemy  Situation: 

The  Naval  Intelligence  Division,  Foreign  Merchant  Marine 
Branch  analyzes  the  docking  facilities  for  British  warships  in  the 
British_Is3.es  in  its  review  Foreign  Navies  No.  35. 

An  unidentified  ship  was  located  by  radio  monitoring  65  miles  south- 
west of  Cape  Vilano. 

2.  Own  Situation: 

Atlantic  Coast: 

12  enemy  planes  flying  at  an' altitude  of  only  20  m  attacked 
fortifications,  marching  columns,  and  a  railroad  depot  in  the  Brest 
area  betv/een  1615  and  1640,  causing  slight  casualties.. 

Channel  Coast: 

Nothing  to  report. 

Special  Items: 

a.  With  regard  to  the  concern  voiced  by  Naval  Station, 
North  Sea  (see  War  Diary  of  22  Jul.),  Group  West  remarks  that  the  con- 
sent of  Group  West  must  naturally  be  obtained  prior  to  the  destruction 
of  vital  installations.  (See  Telegram  2122.) 

b.  Group  West  comments  on  the  comparison  made  by  the  2nd 
Coastal  Patrol  Force  between  the  enemy's  and  our  own  achievements  with 
regard  to  location  finding  (see  War  Diary  of  21  Jul.);  see  Telegram 
2310. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

Enemy  Situation: 

According  to  a  decoded  radio  communication,  a  British  vessel 
located  in  the  Granton  area  on  15  Jul.,  off  Tynemouth  on  16  Jul.,  off 
Grimsby  on  17  Jul.,  and  in  the  Lowestoft  area  on  22  Jul.  reported  that 
she  was  proceeding  on  her  way  with  4  landing  craft. 

According  to  an  intelligence  report  from  Sweden,  an  extraordinarily 
great  number  of  tanks  and  war  material  from  the  U.S.A.  is  stored  In 
Northern  Ireland;  all  quarters  are  said  to  be  so  crowded  that  ships 
have  to  be  unloaded  at  Glasgow,  too.  During  the  last  few  days  Nor- 
wegian commando  forces  were  reportedly  transferred  to  the  Scottish 
east  coast  (Wick)  and  kept  in  a  state  of  constant  readiness. 

Air  reconnaissance  observed  heavy  convoy  traffic  on  the  English  east 
coast  on  23  Jul.   35  steamers  were  sighted  on  a  southerly  course  be- 
tv/een Great  Yarmouth  and  Flamborough  Head  and  3  convoys  totalling  118 
steamers  on  a  northerly  course. 


-pop- 


CONFIDENTIAL 
23  Jul.  1942 

Own  Situation: 

Bad  weather  greatly  hampered  convoy  and  mine-sweeping 
activities  in  the  area  of  the  Commanding  Admiral,  Defenses,  North  Sea. 

The  Commanding  Admiral,  Defenses,  North  Sea  reports  3  more  mines  swept 
in  addition  to  the  8  already  reported  on  22  Jul. 

3  mine-exploding  vessels  swept  8  additional  ground  mines  on  23  Jul. 

Enemy  incursions  over  the  German  Bight  were  observed  during  the  night 
of  23  Jul.,  probably  for  mine-laying  purposes  off  the  West  and  East 
Frisian  Islands. 

The  enemy  mine  offensive  in  the  North  Sea  continues  in 
full  force.   The  importance  of  mine-exploding  vessels 
is  clearly  shown  by  the  good  results  produced  by  them. 

2.  Norway; 

Enemy  submarines  attacked  one  of  our  convoys  unsuccessfully 
off  Vardoe  on  22  Jul.   The  northern  exit  of  Por Sanger  Fjord  was  tem- 
porarily closed,  due  to  suspected  aerial  mines. 

The  destroyer  ERICH  STEINBRINCK  passed  Kristiansand  South  on  her  way 
north. 

Normal  enemy  air  activity  over  the  arctic  coast  and  the  Norwegian  north 
and  west  coast.   The  crew  of  a  British  plane  which  had  made  an  em- 
ergency landing  near  Askevold  was  taken  prisoner. 

In  consequence  of  the  Fleet  Command's  report,  the  decision  to  return 
the  HANS  LODY  for  shipyard  repairs  to  a  home  port  is  upheld.  A  dir- 
ective to  this  effect  is  issued  to  Group  North.   See  Telegram  1702. 

Since  PT  boat  operations  in  the  Norwegian  area  produced  little  result, 
the  Naval  Staff  intends  to  withdraw  also  the  6th  PT  Boat  Flotilla.  The 
Chief  of  the  Naval  Staff  agrees  to  this  measure.   Group  North  is  noti- 
fied and  requested  to  report  its  plans  for  the  transfer,  if  no  objec- 
tions are  raised. 

3.  Arctic  Ocean; 

Reconnaissance  in  the  Arctic  Ocean  netted  no  tactical  re- 
sults.  Otherwise  nothing  to  report. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

Mine-laying  missions  in  the  area  of  the  Commanding  Admiral,  De- 
fenses, Baltic  Sea  continued  to  suffer  from  bad  weather.  Convoy  op- 
erations proceeded  according  to  plan  without  major  incident. 


-50©- 


CONFIDENTIAL 
23    Jul.    1942 

V.        Submarine  Warfare 

1.  Enemy  Situation: 

Air  reconnaissance  over  the  northern  rendezvous  area  was 
normal.   Very  lively  activity  was  observed  over  the  Iceland  area  and 
in  the  southern  part  of  the  rendezvous  area. 

An  unidentified  ship  reported  a  shadower  following  a  Gibraltar-bound 
convoy  approximately  80  miles  southwest  of  Cape  Vincent,  probably  a 
submarine.   (This  cannot  be  a  German  submarine.) 

The  usual  submarine  sighting  reports  from  off  the  American  East  Coast 
and  in  the  West  Indies  were  intercepted. 

2.  Own  Situation: 

Submarine  U  "600"  spotted  a  new  convoy  from  Great  Britain  to 
Reykjavik  for  the  first  time  at  0700  in  quadrant  8812.   Another  sub- 
marine maintained  contact  with  it  throughout  the  day.   The  enemy  will 
probably  make  port  before  any  successful  attacks  can  be  made. 

Group  "Wolf"  spotted  a  westbound  convoy  for  the  first  time  at  2100  in 
quadrant  AK  7831.  The  group  is  operating  against  this  convoy. 

Submarine  U  "84",  operating  in  the  West  Indies  from  the  western  exit 
of  the  Florida  Strait,  torpedoed  a  12,000  GRT  tanker  and  probably  sank 
a  9,000  GRT  steamer  on  21  Jul.   Submarine  U  "129"  reports  from  the 
Yucatan  Strait  sinking  steamer  PORT  AWOlflO  (1,266  GRT)  and  a  4,000 
GRT  steamer. 

No  reports  of  successes  from  the  South  Atlantic  and  the  Mediterranean 
were  received. 

In  view  of  increasing  activity  of  the  British  Gibraltar  forces  in  the 
western  Mediterranean  in  connection  with  the  equipment  and  supply  at 
Malta,  the  Naval  Staff  orders  the  German  Naval  Command,  Italy  to  ex- 
amine the  possibilities  of  resuming  German  submarine  operations  in 
these  waters. 

Additional  reports  in  Supplement   to  Submarine  Situation,  War  Diary, 
Part  B,  Vol.  IV. 

Our  submarines  crossing  the  Bay  of  Biscay  are  seriously  menaced  by 
enemy  air  activity.   The  Commanding  Admiral,  Submarines  therefore  re- 
quests that  it  be  examined  whether  it  is  possible  to  interfere  with 
radar  probably  used  on  enemy  night-flying  planes  by  setting  up  jamming 
stations. 

"The  Bay  of  Biscay  is  considered  the  most  dangerous  and  exacting  of  all 
zones  of  submarine  operations  at  the  present  time."   (See  Telegram 
1745.) 

All  efforts  must  be  made  to  reduce  the  hazard  of  this 
dangerous  passage.   The  examination  of  further  steps  in* 
this  direction  is  in  the  hands  of  the  Chief  of  the 
Communications  Division,  Naval  Staff. 


-W>- 


CONFIDENTIAL 
23  Jul.  1942 

VI.  Aerial  Warfare 

1.   British  Isles  and  Vicinity: 

During  daylight  raids  6  enemy  planes  were  shot  down  by 
fighter  planes  and  2  by  anti-aircraft  artillery. 

Single  German  planes  successfully  attacked  the  airplane  factories  in 
the  Bedford  area,  as  primary  targets,  and  also  raided  the  alternate 
targets  of  Ipswich  and  Cromer. 

During  the  night  of  23  Jul.  45  German  Do  217 's  operated  against  the 
airplane  factories  in  the  Bedford  area.   Strong  enemy  forces  penetra- 
ted into  western  German  territory,  concentrating  their  attacks  on 
Duisburg;  lesser  forces  flew  into  the  eastern  area  and  concentrated 
on  Memel.   For  damage  see  daily  situation  report. 

'  2.    Mediterranean  Theater: 

Operations  against  Malta  and  in  support  of  the  Panzer  Army, 
North  Africa. 

3.   Eastern  Front: 

Along  the  entire  front  67  enemy  planes  were  shot  down.  Other 
wise  nothing  to  report. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

According  to  an  intelligence  report  from  Spain,  the  transport 
LLANSTEPHAN  CASTLE  will  sail  from  Gibraltar  shortly.   1  submarine  was 
located  in  the  afternoon  7  miles  south  of  Genoa. 

Photo  reconnaissance  at  0730  revealed  the  following  ships  in  Valletta: 
2  destroyers,  2  steamers,  1  harbor  tanker,  1  escort  vessel,  and  4 
patrol  vessels.   No  ships  wtre  in  the  harbors  of  Marsa  Scirocco  and 
Cala  Franc ese. 

German  air  reconnaissance  observed  only  warships  in  the  area  between 
Alexandria  and  Tobruk.   At  0620  2  cruisers  and  6  destroyers  were  sighted 
26  miles  northwest  of  Alexandria  on  an  easterly  course;  this  is  evident- 
ly the  force  returning  from  bombarding  Marsa  Matruh. 

2.  Own  Situation,  Mediterranean: 

Correcting  yesterday's  situation  report,  the  German  Naval 
Command,  Italy  reports  that  the  3rd  PT  Boat  Flotilla  carried  out  torpedo 
operations  east  of  Marsa  Matruh  during  the  night  of  21  Jul.  without  mak- 
ing contact  with  the  enemy. 

Enemy  planes  raided  Tobruk  during  the  night  of  22  Jul.   Marsa  Matruh  was 
under  fire  from  8ea. 

Since  operation  "Herkules"  has  been  postponed  for  the  time  being,  there 
is  no  need  on  the  part  of  the  German  Naval  Command,  Italy  to  assign 


-til- 


CONFIDENTIAL 
23  Jul.  1942 

personnel  and  materiel  to  the  landing  force.   The  Naval  Staff  informs 
the  Quartermaster  Division,  Naval  Staff,  the  Chief  of  the  Communica- 
tions Division,  The  Chief  of  the  Officer  Personnel  Division,  the  . 
German  Naval  Command,  Italy  and  the  Admiral,  Amphibious  Forces  and 
adds  that  the  necessary  stipulations  will  be  made  when  a  new  date  for 
this  operation  is  fixed  (see  Communication  1919). 

3v   Transport  of  Supplies  to  North  Africa: 

2  CITTA  class  steamers  sailed  from  Suda  to  Tobruk  under 
escort  of  destroyer  ZG  "3". 

The  steamers  WACHTFELS,  PILO  and  SIBYLLE  arrived  at  Benghazi,  the 
OLYMPOS  at  Tobruk.   Operations  of  transport  submarines  to  Tobruk  and 
coastal  supply  activities  proceeded  according  to  plan  and  without 
major  incident. 

The  amount  of  goods  unloaded  on  22  Jul.  at  Tobruk  was  626  tons,  at 
Mars a  Matruh  250  tons. 

4.    Area  Naval  Group  South: 

Aegean  Sea: 

Enemy  Situation: 

A  steamer  sighted  a  submarine  about  60  miles  west  of  Milos. 

Own  Situation: 

Enemy  planes  raided  Suda  on  the  evening  of  21  Jul.   A  re- 
newed submarine  chase  on  22  Jul.  in  the  Trikeri-Oreos  Channel  area 
again  proved  unsuccessful.   The  area  north  of  37°  40'  N  was  reopened 
to  small  vessels. 

Convoy  traffic  according  to  plan  without  interference. 

Black  Sea: 

Enemy  Situation: 

Movements  of  submarines  were  revealed  by  radio  monitoring  in 
the  Crimean  area  and  1  submarine  was  located  in  the  southern  Black  Sea, 

Own  Situation: 

Enemy  planes  raided  Feodosiya  and  Ivanbabaon  21  Jul.;  1  boat 
of  the  17th  Harbor  Defense  Flotilla  was  sunk.   Bad  weather  interfered 
with  convoy  operations. 

The  15th  Harbor  Command  is  advancing  to  Rostov. 


VIII.  Situation  East  Asia 
Nothing  to  report. 


-fe*- 


CONFIDENTIAL 
23  Jul.  1942 

IX.   Army  Situation 

1.  Russian  Front : 

Array  Group  A: 

Our  tank  and  infantry  divisions  overcame  stubborn  enemy  re- 
sistance and  entered  Roctov  from  the  north  and  east.   The  3rd  Panzer 
Division  advanced  from  the  bridgehead  at  Konstantinovsk  toward  the  Sal 
River  and  established  a  new  bridgehead  at  Orlovka.   Enemy  re'sistance 
in  front  of  the  24th  Panzer  Division  south  of  Log  is  stiffening.   The 
mission  of  the  Brandenburg  Demonstration  Regiment  against  the  Salsk- 
Stalingrad  railroad  was  unsuccessful. 

Army  Group  B: 

On  the  southern  sector  we  forced  light  enemy  forces  to  re- 
treat along  the  Morozovskiy-Stalingrad  railroad.   In  the  center,  the 
enemy  is  holding  the  eastern  bank  of  the  Tsarltsa  River.   North  of  thi«! 
point,  motorized  divisions  advanced  in  a  southeasterly  direction  to 
capture  the  hills  in  the  Don  River  bend  northwest  of  Stalingrad.  South- 
east of  Yelets  enemy  tank  units  succeeded  in  breaking  through  our 
positions  west  of  the  Don  River  toward'  the  south.  Another  enemy  break- 
through  occurred  south  of  Yelets.   Count ermeasures  are  in  progress. 

Central  Army  Group: 

Local  fighting. 

Northern  Army  Group; 

Enemy  pressure  on  the  area  south  of  Staraya  Russa  was 
maintained  from  both  sides.   West  of  Kolpino  the  enemy  succeeded  in 
breaking  through  our  lines  along  the  road  to  the  south.   The  break- 
through was  sealed  off.   Our  positions  south  of  Oranienbaum  were  re- 
peatedly attacked  without  success. 

2.  Finnish  Front: 

Enemy  attacks  originating  in  the  Leningrad  area  were  repulsed. 
In  the  Maselskaya  area  an  enemy  partisan  band  of  about  900  men  attempted 
to  advance  to  the  railroad  crossing  of  Suojaervi. 

3.  North  Africa: 

No  essential  change  in  the  situation.   The  air  force  operated 
in  full  strength  against  enemy  concentrations  of  tanks  and  motor 
vehicles. 


IHHJ-iKHKHHHHS-tKr-vKH!-^^!- 


43JJ3- 


CONFIDENTIAL 
24  Jul.  1942 

Items  of  Political  Importance 

France : 

Informed  Washington  circles  assert  that  an  agreement  was  reached  be- 
tween the  British  and  the  U.S.  Governments  with  regard  to  the  French 
warships  at  Alexandria,  according  to  which  the  ships  will  be  escorted 
to  Jibuti,  and  if  necessary  the  resistance  ordered  by  Laval  will  be 
broken.   It  is  further  reported  that  Admiral  Godefroy  allegedly  re- 
fused to  follow  Vichy's  directive  to  transfer  the  ships  to  Beirut. 

Great  Britain: 

In  an  address  held  at  Nottingham,  Eden  declared  that  Great  Britain  is 
facing  one  of  the  most  critical  moments  of  the  war.   So  far,  Britain 
has  frequently  been  able  -co  upset  the  German  plans.   The  result  of  the 
battles  in  Russia  and  Egypt  will  determine  the  duration  of  the  war. 
However,  no  considerations  of  time,  no  disappointment  and  no  lost 
battle  can  affect  the  decision  to  continue  the  fight  against  the 
dictatorships  until  they  are  completely  disarmed.   It  is  necessary  to 
build  a  society  of  nations  respecting  law  and  order,  within  which  each 
nation  can  prosper  in  freedom  and  live  without  fear,  or  else  all 
countries  will  be  destroyed  in  a  ruthless  struggle.   If  Great  Britain 
should  fail  this  time,  she  will  probably  never  have  another  chance. 

Ambassador  Hoare  spoke  very  frankly  on  Great  Britain's  situation, 
about  which  he  is  very  pessimistic  from  a  political  viewpoint.   Russia 
hds   shown  her  discontent  with  the  results  of  Molotov's  trip  by  present- 
ing demands  almost  amounting  to  an  ultimatum  with  regard  to  the  estab- 
lishment of  a  second  front  and  to  the  delivery  of  certain  war  material; 
American  pressure  in  this  direction  is  also  increasing  steadily.   The 
American  demand  that  all  of  the  British  home  forces  should  be  committed 
to  action  is  considered  by  the  British  as  "positively  impudent"  and 
the  Foreign  Office  is  at  times  under  the  impression  that  it  is  en- 
circled from  5  sides,  by  Germany,  Russia,  and  the  U.S.  A. 

On  the  other  hand,  the  military  situation  can  be  regarded  as  promising. 
A  German  peace  feeler  had  been  rejected  by  Russia, and  Germany  will  have 
to  face  a  second  Russian  winter  campaign.   Italy  will  not  be  attacked 
directly  for  the  time  being,  so  that  the  possibility  of  concluding  a 
separate  peace  can  be  followed  up  further. 

Spaint 

Political  Review  No.  171,  paragraph  4,  contains  a  report  on  the  Spanish 
situation.   Whereas  there  is  widespread  dissent  about  political  aims 
and  methods,  there  is  complete  unanimity  about  the  fact  that  the 
country  must  stay  out  of  the  war  under  all  circumstances.   It  is  said 
that  any  moral  obligations  toward  the  Axis  Powers  have  been  amply  ful- 
filled by  the  dispatch  of  the  Blue  Division  to  the  Eastern  Front.   In 
the  long  run  Spain's  foreign  policy  will  probably  favor  that  party  from 
which  the  greatest  improvement  of  the  food  situation  can  most  likely  be 
expected. 

Finland: 

The  threatening  Government  crisis  was  averted  when  the  Government  re- 
duced its  financial  demands  on  Parliament. 


-bii- 


CONFIDENTIAL 
24  Jul.  1942 

U.S.A.: 

In  a  radio  address  of  wide  scope,  Secretary  of  State  Hull  discussed 
the  present  world  situation,  the  history  of  American  participation  in 
the  war,  the  aims  of  the  United  Nations  for  the  transition  period 
following  victory,  and  the  conditions  of  a  lasting  peace. 

Argentina; 

The  Foreign  Minister  informed  the  Chamber  that  a  number  of  American 
nations,   starting  with  the  U.S.A.  itself,  have  already  violated  the 
resolutions  of  the  Rio  Conference.   As  a  consequence,  Argentina  is  no 
longer  bound  by  the  obligations  undertaken  at  Rio.   The  Government 
furthermore  refuses  to  participate  in  the  convoy  system  along  the  South 
American  coast.   Argentina  will  protest  against  the  requisition  of  the 
Argentine  tanker  VICTORIA  by  the  U.S.A. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  The  Deputy  to  the  Chief  of  the  Quartermaster  Division,  Naval  Staff 
reports  on  the  tugboat  situation  which  is  still  a  matter  of  grave  con- 
cern.  At  this  moment  61  tugs  are  under  construction  which  should  be 
delivered  this  year,  if  no  delays  are  incurred  and  the  required  crews 
are  available.   It  may  become  necessary  to  fall  back  on  foreign  crews. 

In  a  Very  Restricted  Circle: 

II.  The  Chief  of  the  Operations  Branch,  Naval  Staff  Operations  Division 
discusses  the  report  of  the  Naval  Liaison  Officer  to  the  Air  Force, 
Operations  Staff:   According  to  intelligence  received  by  the  Air  Force, 
the  Royal  Air  Force  is  willing  to  resume  aerial  attacks  on  Berlin  only 
on  condition  that  strong  U.S.  units  participate  and  that  the  anti- 
aircraft defenses  of  London  are  reinforced.   At  present  50  to  80  U.S. 
bombers  are  available  in  England  or  northern  Ireland  which  could  be 

used  for  attacks  on  Berlin. 

The  Air  Force  Operations  Staff  is  convinced  that  the  principal  objective 
of  enemy  raids  on  Germany  territory  is  to  divert  German  fighter  forces 
from  the  west  area  in  view  of  a  planned  landing  operation. 

The  air  situation  in  North  Africa  is  constantly  deteriorating.  There 
can  be  no  more  talk  of  air  supremacy  even  in  territory  held  by  us. 
Harbors  and  airfields  are  subject  to  heavy  enemy  aerial  attacks,  day 
and  night.   Our  anti-aircraft  artillery  is  unable  to  give  effective 
protection,  and  reinforcement  of  the  North  African  air  forces  is  un- 
fortunately impossible  owing  to  the  situation  at  the  other  fronts. 


Special  Items 

I.  The  Fuehrer  agrees  to  grant  the  French  request  concerning  arming 
of  the  battleship  JEAN  BART. 

II.  Due  to  another  incident,  the  Fuehrer  considered  it  necessary  to 
call  attention  to  his  order  of  11  Jan.  1940  concerning  secrecy  and  the 
regulations  about  the  handling  of  confidential  matters.  This  must  be 

43^5- 


CONFIDENT!^ 
24  Jul.  1942 

uppermost  In  the  minds  of  all  officers. 

The  Commander  in  Chief,  Navy  issues  an  order  to  this  effect  to  all 
top  commanders.   See  Ob.dJH..  AMA/M/Wehr  II  9390/42  geh.  in  War  Diary. 
Part  B,  Vol.  V. 

III.  Following  up  the  Naval  Staff  memorandum  concerning  the  construc- 
tion-of,  additional  light  forces  ( l/Skl  33a  .11684/42  Gkdos.   of  27  May 
1942  in  War  Diary,  Part  B,  Vol.  V  ;  see  War  Diary  of  2  Jun. )  and 
talcing  into  account  also  the  proposals  of  the  Naval  Construction 
Division  as  well  as  the  comments  of  the  Naval  Staff,  Quartermaster 
Division,  Fleet  Branch  of  17  Jul.-  1942,  the  Naval  Construction  Divi- 
sion has  now  cancelled  the  contracts  for  the  construction  of  the 
Model  1942  torpedo  boats  T  "63"  to  "74n  and  the.  Model  1941  torpedo 
boats.   The  new  V  engine  will  be  fully  developed  and  preparations 
made  for  mass  production.   However, 'the  Naval  Construction  Division 
points  out  that  the  construction  program  based  on  the  Naval  Staff's 
demands  is  still  entirely  in  the  planning  stage,  and  that  neither 
shipyard  facilities  nor  slipways  can  be  held  in  readiness  as  long  as 
there  is  no  prospect  for  the  allocation  of  the  required  raw  materials 
In  the  opinion  of  the  Naval  Construction  Division  there  will  be  no 
difficulty  in  building  a  number  of  model  41  escort  vessels  in  place 
of  mine  sweepers,  once  it  is  assured  that  the  new  construction  pro- 
gram can  be  carried  out. 

For  the  respective  directive  K-Stab  1207/42  Gkdos.  of  24  Jul.  see 
l/Skl  18101/42  Gkdos.  in  War  Diary,  Part  B,  Vol.  V.        * 


Situation  24  Jul.  1942 

I.   War  in  Foreign  Waters 

1.  Enemy  Situation; 

South  Atlantic: 

According  to  an  intelligence  report,  a  convoy  of  approx- 
imately 37  ships  sailed  from  Freetown  to  the  British  Isles  on  14  Jul.;         m 
more  than  half  of  them  are  carrying  grain  from  Australia.  " 

Indian  Ocean: 

1  British  aircraft  carrier  and  8  light  vessels  were 
anchored  off  Lourenco  Marques  on  23  Jul. 

Pacific  Ocean; 

On  21  Jul.  the  British  motor  ship  ROOKLEY  sailed  from  Punta 
Arenas  in  the  direction  of  the  Pacific  after  arriving  from  Africa  in 
ballast. 

2.  Own  Situation; 

The  radio  message  of  ship  "28rt  of  23  Jul.'  at  0419,  reporting 
the  capture  of  the  merchant  shipping  code  and  the  favorable  condi- 
tions for  submarine  operations  in  the  Gulf  of  Guinea,  was  finally  de- 
coded and  confirmed  by  Radiogram  1328. 

Radiogram-  1458  notifies  -  ship  -"lO^-to  inform  all  ships  In  foreign 

-fell- 


CONFIDENTIAL 
24  Jul.  1942 

waters  about  the  arrival  of  the  HERBORG  at  Yokohama  on  22  Jul. 

Further  study  of  ship  "10"' s  log  reveals  that  the  seizure  of  the 
NANKIN  took  only  45  minutes  from  the  moment  she  was  first  sighted. 
The  number  of  prisoners  taken  "by  ship  "10"  has  mounted  to  319,  all 
of  whom  were  transferred  to  the  captured  ship  with  the  exception  of 
20  colored  people.   Judging  from  the  QQQ  signal  subsequently  re- 
ceived by  the  Perth  radio  station  on  10  May  concerning  the  NANKIN, 
ship  10"  withdrew  immediately  in  a  southerly  direction  for  operations 
between  the  latitudes  of  30°  S  and  35°  S.   British  ships  make  every 
effort  to  escape  attacks;  they  radio  signals,  zigzag  and  shoot. 

Radiogram  1734  informs  ship  "10"  as  well  as  all  ships  in  foreign 
waters  accordingly. 

Enemy  situation  report  by  Radiograms  1107,  1231,  2005,  and  2122. 

The  captain  of  the  DOGGERBANK,  Lt.  Schneidewind,  is  informed  about 
being  awarded  the  German  Cross  in  gold  by  Radiogram  2154, 


II.   Situation  Yfest  Area 

1.  Enemy  Situation: 

According  to  intelligence  based  on  information  received  on| 
23  Jul.  from  British  Embassy  circles  in  Madrid,  "the  British  are  busy 
concentrating  about  2,400  fast  motor  boats  and  boats  of  shallow 
draft  on  the  English  coast.   Such  ships  are  ordered  to  England  ever 
from  their  bases  at  Gibraltar,  the  Mediterranean  and  West  African 
coasts.   The  vessels  are  being  assembled  in  preparation  for  a  land- 
ing attempt  on  the  Channel  coast  or  Atlantic  coast  expected. by  the 
end  of  next  month". 

The  many  reports,  all  pointing  to  serious  preparations 
for  landing  operations  originating  from  the  English 
coast,  call  for  serious  consideration.   There  can  be 
no  doubt  that  preparations  of  this  character  are 
actually  being  undertaken  on  a  large  scale.   There  is 
no  telling  if  and  when  the  operation  will  materialize. 
It  is  necessary,  however,  to  be  prepared. 

2.  Own  Situation: 

Atlantic  Coast: 

Nothing  to  report. 

Channel  Coast: 

Several  Spitfires,  some  of  them  at  a  very  low  altitude, 
flew  over  the  Belgian  and  French  coasts.  No  reports  of  any  damage 
were  received. 

The  3rd  'Torpedo  Boat  Flotilla  will  transfer  from  Le  Havre  to  the  bay 
->f  St.  Malo  during  the  night  of  24  Jul. 


-kl*- 


CONFIDENTIAL 
24  Jul.  1942 

3.   Special  Items: 

The  Commander,  PT  Boats  commenting  on  his  war  diary  of  15  to 
31  May  1942,  arrived  at  the  conclusion  that  the  prospects  for  success- 
ful PT  boat  operations  in  the  west  area  are  no  longer  good  since  the 
mines  we  are  using  are  swept  by  the  enemy  without  any  difficulty,  and 
PT  boats  cannot  operate  over  long  distances  without  being  detected  by 
enemy  radar. 

In  reply,  the  Chief  of  the  Operations  Division,  Naval  Staff  points  to 
the  necessity  and  possibility  of  achieving  successes  by  laying  mines 
over  wide  areas.   For  copy  of  this  reply,  addressed  to  Group  West  and 
the  Commander,  PT  Boats,  see  1/Skl  I  E  17974/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  lib. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation: 

Air  reconnaissance  sighted  a  convoy  consisting  of  63  steamers 
on  a  southerly  course  off  Harwich. 

Own  Situation: 

Mine -exploding  vessels  swept  3  ground  mines  north  of  the 
West  Frisian  Islands.   Bad  weather  is  still  interfering  with  convoy 
and, mine -sweeping  services. 

2.  Norway  and  Arctic  Ocean: 

Enemy  Situation: 

Radio  monitoring  established  the  presence  of  3  British  ships 
in  the  waters  between  the  southern  entrance  of  the  Gorlo  Strait  and 
Archangel,  one  of  which  presumably  arrived  from  a  northerly  direction. 

According  to  air  reconnaissance,  7  steamers  on  a  southerly  course  were 
north  of  Langanes  (Iceland)  at  1640. 

Own  Situation: 

Enemy  planes  were  active  on  the  northern  and  western  coasts 
in  the  afternoon  of  23  Jul. 

Convoy  and  mine-sweeping  operations  in  the  area  of  the  Commanding  Ad- 
miral, Norway  proceeded  according  to  plan  without  incidents  of  im- 
portance. 

For  directive  of  Group  North  concerning  the  return  to  home  base  of  HANS 
LODY  see  Telegram  1253. 

3.  Arctic  Ocean: 
Nothing  to  report. 


i* 


-ki- 


CONFIDENTIAL 
24  Jul.  1942 

IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

By  radio  monitoring  it  was  established  that  12  submarines 
were  at  sea  on  22  Jul.  and  11  on  23  Jul. 

i 

2.  Own  Situation; 

Nothing  to  report  from  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea. 

From  the  eastern  Baltic  Sea:   Minefield  "Seeigel  20"  was  laid  according 
to  plan.   Mine-sweeping  operations  were  somewhat  affected  by  bad 
weather.   The  torpedoed  steamer  ALDEBARAN  was  brought  into  port.  Con- 
voys proceeded  according  to  plan. 


V.   Merchant  Shipping 

See  report  no.  17/42  of  the  Naval  Intelligence  Division,  Foreign 
Merchant  Marine  Branch  for  facts  concerning  British  shipping  at  the  La 
Plata,  Turkish  merchant  shipping  during  the  war,  enemy  shipping  between 
Port  Said,  Mersin  and  Iskenderon,  and  finally  about  shipping  between 
Lourenco  Marques,  Beira,  Mozambique,  and  Mombasa. 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

1  British  ship  was  located  by  radio  monitoring  470  miles  west 
of  Cape  Finisterre  and  1  British  ship  135  miles  west  of  Porcupine  Bank. 

10  steamers  escorted  by  2  corvettes  and  2  patrol  vessels  on  a  course  of 
300°  to  320°  were  spotted  in  the  forenoon  west  of  Cape  St.  Vincent  by 
air  reconnaissance. 

U.S.  submarine  S  w20n  intends  to  operate  in  the  Gulf  of  Maine.  Numerous 
reports  about  the  sighting  of  submarines  off  the  U.S.  East  Coast  and 
one  from  150  miles  southeast  of  Trinidad  were  intercepted. 

2.  Own  Situation: 

Task  Force  "Wolf"  is  still  engaged  in  the  operation  against 
the  convoy  in  quadrant  AK„   No  reports  about  any  successes  were  re- 
ceived. 

Additional  report  under  Supplement  to  Submarine  Situation,  War  Diary, 
Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

1.   British  Isles  and  Vicinity: 

Small  German  forces  carried  out  armed  reconnaissance  and 


CONFIDENTIAL 
24  Jul.  1942 

dropped  4  SC  500  bombs  on  the  town  and  depot  of  Withersea  with  observed 
good  results.   Otherwise  nothing  to  report. 

2.  Mediterranean  Theater; 

Daylight  raids  on  Malta  were  continued.  The  Air  Commander, 
North ^Africa  reports  19  enemy  planes  shot  down  by  his  fighters  during 
reconnaissance  and  free-lance  missions. 

Reconnaissance  was  carried  out  over  the  entire  Mediterranean  area.  For 
results  see  Enemy  Situation,  Mediterranean. 

3.  Eastern  Front: 

In  operations  for  the  support  of  the  Army  Groups  A  and  B,  60 
enemy  planes  were  shot  down. 

An  attack  on  the  enemy  convoy  off  Langanes  (Iceland)  was  unsuccessful. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean; 

On  23  Jul.  the  CHAKYBDIS  docked  at  Gibraltar.  The  troop 
transport  LLANSTEPHAN  CASTLE  sailed  from  Gibraltar  in  a  westerly  dir- 
ection on  24  Jul. 

The  arrival  of  one  submarine  at  Valletta  was  noted;  normal  convoy 
traffic  was  observed  in  the  area  between  Alexandria  and  Port  Said. 
Photo  reconnaissance  revealed  the  following  ships  at  Alexandria; 
French  ships  unchanged,  otherwise  2  destroyers,  3  escort  vessels,  3 
patrol  vessels,  4  small  warships,  4  tankers,  12  steamers  (2  of  which  ir 
dock)  totalling  approximately  70,000  GRT,  and  2  steamers  of  10,000  GRT 
each  just  arriving.   At  Suez  on  the  forenoon  of  13  Jul.:  4  destroyers, 
2  of  them  Greek,  54  freighters,  6  tankers,  and  4  passenger  ships, 
totalling  about  375,000  GRT. 

2.  Own  Situation,  Mediterranean: 

Enemy  planes  raided  Benghazi  on  the  evening  of  23  Jul.   No 
operations  by  the  3rd  PT  Boat  Flotilla. 

3.  Transport  of  Supplies  to  North  Africa: 

The  convoy  of  motor  ship  PISANI  (6,300  GRT)  was  attacked  by 
8  enemy  torpedo  planes  south  of  Cephalonia.   The  PISANI  was  hit  by  1 
torpedo  and  had  to  be  beached  burning  in  the  evening.   3  of  the  attackers 
were  shot  down.   So  far  no  report  was  received  about  the  arrival  of 
tanker  PAV0LIN0  at  Tripoli.  Destroyer  ZG  3  with  2  CITTA  class  steamers 
arrived  at  Tobruk  on  schedule.   ZG  3  and  1  Italian  torpedo  boat  re- 
turned immediately  to  Suda.   The  convoy  was  unsuccessfully  attacked  by 
enemy  bombers  and  torpedo  planes  en  route  to  Tobruk  during  the  night  of 
23  Jul. 

Coastal  supply  traffic  on  schedule. 

4.  Area  Naval  Group  South: 
Nothing  ta  report. 

+3J0- 


CONFIDENTIAL 
24  Jul.  1942 

Situation  France: 

The  standpoint  of  the  Italian  Naval  High  Command  with  regard 
to  the  use  of  French  escort  forces  against  submarines  was  submitted  in 
a  note  to  the  French  Delegation  by  way  of  the  Italian  Armistice  Com- 
mission.  For  copy  see  1/Skl  18119/42  Gkdos.  in  War  Diary,  Part  C,  Vol. 
XVI. 

The  German  Naval  Command,  Italy  informed  the  Naval  Staff  about  this 
note  upon  request  of  the  Italian  Naval  High  Command  and  also  requested 
that  the  German  Armistice  Commission  be  notified.   For  details  see  War 
Diary,  Part  C,  Vol.  VIII. 


IX.   Situation  East  Asia 

According  to  Radio  Daventry,  the  Japanese  main  fleet  has  sailed 
from  home  waters. 

According  to  Reuter,  about  2,000  Japanese  landed  in  the  vicinity  of 
Buna  on  the  northeastern  shore  of  New  Guinea.   Port  Moresby  is  con- 
sidered seriously  endangered,  since  the  northern  terminal  of  the  rail- 
road to  this  town  has  been  seized. 


X.   Army  Situation 

1.   Russian  Front; 

Army  Group  A; 

Tank  units  are  crossing  to  the  southern  Don  River  bank  in  the 
direction  of  Bataisk.   Other  units  are  crossing  the  river  west  of  there 
Novocherkassk  was  captured.  East  of  this  place,  units  of  the  "Gross- 
deutschland*  Division  crossed  the  Don  River  and  established  a  bridge- 
head in  the  direction  of  Sussatskay. 

Army  Group  B: 

Advance  detachments  of  a  motorized  division  are   close  to 
Kalach.  Tank  forces  which  had  advanced  north  of  this  place  broke 
through  the  enemy  positions  and  are  advancing  toward  the  hills  south- 
east of  Platkaya.   The  broken  enemy  lines  are  still  putting  up  fierce 
resistance  in  the  rear  area.   Hungarian  units  crossed  the  Don  south  of 
Svoboda.   Enemy  attacks  of  strong  tank  forces  north  of  Voronezh  were 
repulsed.   The  enemy  continued  to  attack  at  the  penetration  point  south- 
east of  Yelets.  The  forces  which  succeeded  in  breaking  through  yester- 
day were  forced  to  retreat  northward. 

Central  Army  Group; 

Local  fighting. 

Northern  Army  Group; 

At  the  northern  sector  of  the  strip  southeast  of  Staraya 
Russa  the  old  front  line  was  restored.   In  the  Leningrad  area  renewr-d 


■fc331- 


CONFIDENTIAL 
24  Jul.  1942 

enemy  attacks  were  repulsed  and  enemy  troop  concentrations  smashed  by 
gunfire. 

2.  Finnish  Front: 

On  the  northeastern  sector  the  enemy  raided  a  prisoner  of  war 
camp,  which  was  looted  and  the  prisoners  liberated.   The  prisoners,  ex- 
cept  a  few,  were  recaptured.   In  the  area  of  the  20th  Army  Command 
both  sides  are  making  increased  use  of  incendiary  bombs  and  ammunition 
in  order  to  start  forest  fires. 

3.  North  Africa: 

Our  forces  regrouped.  Except  for  isolated  enemy  reconnaissance 
patrols,  nothing  to  report. 


>. 


, 


-fesi- 


CONFIDENTIAL 
25  Jul.  1942 

Items  of  Political  Importance 

Great  Britain  and  U.S.A.; 

The  question  of  establishing  a  second  front  is  under  lively  discussion1 
in  London  and  Washington.   Litvinov  made  urgent  representations  in  thi * 
matter  to  Roosevelt  and  to  the  Washington  representatives  of  other 
countries.   Following  his  conference  with  Litvinov,  Roosevelt  received 
the  Chief  of  the  U.S.  Army  Air  Forces,  who  will  travel  to  Russia  in  a 
few  days  on  a  secret  mission. 

On  22  Jul.  the  King  of  England  received  Churchill,  the  Secretary  of  Wajr, 
the  Minister  of  Transportation,  the  Minister  of  Supplies  and  the  First 
Lord  of  the  Admiralty  for  a  report  on  the  preparations  for  the  second 
front . 

Dissenting  views  are  also  being  expressed.   American  and  British  mili- 
tary circles,  for  instance,  are  reported  to  be  convinced  that  it  is 
impossible  to  rush  the  plans  for  establishing  a  second  front  in  Western 
Europe. 

According  to  information  from  a  diplomatic  source,  Ambassador  Maisky 
was  instructed  to  present  an  ultimatum  demanding  that  the  second  front 
be  established,  threatening  that  Russia  would  otherwise  cease  fighting 
against  Germany.   Supposedly  Russia  has  come  to  the  conclusion  that  in 
the  final  analysis  all  the  British  and  Americans  want  is  to  see  Russia 
and  Germany  annihilate  each  other. 

U.S.A.; 

A  recently  published  book  by  H.W.  Baldwin,  Strategy  for  V3c  tory, 
analyzes  the  position  of  the  U.S.A.  soberly  and  considers  it  grave. 
The  author,  who  is  the  New  York  Times  military  expert,  demands  the  im- 
mediate utilization  of  all  weapons  and  war  methods,  lest  the  war  be 
lost  by  the  Allies  in  the  course  of  the  current  year.   7  vital  areas 
must  be  protected  under  all  circumstances:  the  British  Isles,  the  Near 
East,  India,  China,  Hawaii,  Midway  Island,  and  Alaska.   Australia  is 
omitted.   For  details  see  Political  Review  No.  172,  paragraph  5c. 


Special  Items; 

I.  During  a  conference  with  the  Japanese  Naval  Attache  on  24  Jul.,  the 
Chief,  Naval  Staff  Operations  Division  reviewed  the  situation  with  re- 
gard to  the  developments  on  the  Eastern  Front  and  in  North  Africa. 
Stressing  reports  that  the  enemy  is  drawing  on  all  his  reserves,  includ- 
ing the  forces  in  India,  to  save  his  position  in  Egypt,  he  emphasized 
once  more  the  importance  of  Japanese  submarine  and  naval  operations 
against  the  Anglo-American  supply  routes  in  the  western  Indian  Ocean. 
In  addition,  an  operation  or  even  the  threat  of  an  operation  against 
strategic  points  in  the  Indian  Ocean  would  be  of  tremendous  value  at 
this  moment  and  would  prevent  the  enemy  from  shifting  additional  forces 
to  the  Suez  Canal  area.   For  a  transcript  of  the  conference,  see  l/Skl 

I  Opa  18183/42  Gkdos.  in  War  Diary,  Part  C,  Vol.  XV. 

II.  The  Air  Force  Operations  Staff  has  definitely  promised  to  have  the 
meteorological  expedition  "Knospe"  picked  up  by  plane  after  3  Aug.j  it 
had  been  doubtful  whether  this  could  be  done,  so  that  it  had  to  be  con- 
sidered whether  the  expedition  could  be  picked  up  by  destroyer  or  sub-i 

marine. 


-b2fe- 


CONFIDENTIAL 
25  Jul.  1942 

III.  As  agreed  with  the  Naval. Staff,  the  Commander  in  Chief,  Air  Force 

d 
or 

_er>£ 

of  the  Air  Force  units  which  are  tactically  subordinated  to  the  Navy. 
This  task  is  taken  over  by  the  General  Staff  Officer  of  the  Air  Force 
attached  to  the  Naval  Staff.   The  service  instructions  for  the  Air 
Force  General  attached  to  the  Commander  in  Chief,  ITavy  say  that  he  is 
responsible  for  the  training  of  the  ship-borne  aircraft  squadrons  and 
carrier  plane  units  in  the  interest  of  cooperation  between  the  Air 
Force  and  the  Navy.   It  is  his  duty  to  advise  the  Commander  in  Chief, 
Navy  in  all  matters  regarding  the  air  forces  v/hich  do  not  concern  op- 
erational and  command  questions  or  the  operational  cooperation  between 
the  Operations  Staff,  Air  Force  and  the  Naval  Staff.   He  is  to  look 
after  the  personnel  and  materiel  needs  of  the  ship-borne  and  carrier 
plane  units  according  to  the  directives  issued  by  the  Air  Force  Opera- 
tions Staff  in  consultation  with  the  Naval  Staff. 

IV.  Report  no.  34  for  June  1942  on  the  economic  situation  put  out  by 
the  V/ar  Economy  Division,  Armed  Forces  Nigh  Command  indicates  a  further 
deterioration  of  the  sitiiation  in  the  entire  armament  industry.   Only 
the  allocation  of  freight  cars  for  coal  and  petroleum  shows  an  improve- 
ment.  The  food  situation  is  particularly  grave. 

For  copy  no.  23  of  the  report  see  l/Skl  17001/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  XII. 

y 

V.  On  23  Jul.,  the"  Chief,  Naval  Staff  Operations  Division  informed 
the  Commanding  Admiral,  Naval  Group  South  about  the  intention  of  the 
Commander  in  Chief,  Navy  to  transfer  Captain  Heye  from  his  post  as 
Chief  of  Staff,  Group  South.   He  will  be  replaced  by  Captain  Brinkmann, 
while  Captain  Heye  will  replace  Rear  Admiral  Klueber  as  Chief  of  Staff, 
Naval  Group  North.   The  latter  Is  slated  for  the  post  as  Admiral, 
Arctic  Ocean. 

In  a  detailed  telegram  the  Commanding  Admiral,  Group  South  pointed  out 
that  Captain  Heye  is  indispensable  as  Chief  of  Staff  at  the  moment  and 
for  some  time  to  come;  he  asked  that  his  transfer  be  reconsidered  and 
that  it  be  postponed  as  long  as  the  development  of  the  naval  situa- 
tion in  the  southeast  area  does  not  permit  such  a  change  without  serious 
di  sadvantages . 

The  Commander  in  Chief,  Navy  decides  that  Captain  Brinkmann  is  to 
assume  his  new  assignment  to  Group  South  immediately  so  he  can  be 
broken  in  as  Chief  of  Staff  and  that  Captain  Heye  is  to  remain  at  his 
present  post  as  long  as  necessary  to  complete  current  operations  and 
break  in  his  successor.  The  Commander  in  Chief,  Navy  reserves  the 
right  to  determine  the  appropriate  time. 

Rear  Admiral  Klueber  becomes  Admiral,  Arctic  Ocean  at  once.   The 
duties  of  Chief  of  Staff,  Group  North  will  meanwhile  be  taken  care  of 
by  the  first  admiral  staff  officer,  until  Captain  Heye  becomes  avail- 
able. 


Situation  25  Jul.  1942 


I.   V/ar  in  Foreign  Waters 


1.    Enemy  Situation: 

The.  Japanese-Embassy  at  Vichy-  has  informat: 

-|32j4- 


CONFIDENTIAL 
25  Jul.  1942 

battleships,  namely  MALAYA,  NELSON,  and  RODNEY,  were  at  Freetown  on  24 
Jul.   According  to  an  Italian  report  either  the  'NELSON  or  the  RODNEY 
is  in  the  waters  west  of  Gibraltar. 

From  the  reports  on  hand  the  identity  of  the  battle- 
ships in  question  cannot  be  reliably  determined. 

2.   Own  Situation: 

Ship  "23"  reports  by  short  signal  at  2256:   "Yes,  5600,  will 
keep  rendezvous  on  28  Jul."  The  Naval  Staff ' acknowledges  receipt  of 
the  signal  to  ship  "23"  and  informs  ship  "28"  as  follows: 

a.  The  CHARLOTTE  SCHLIEMANN  may  be  retained  in  the  waiting  area 
until  the  end  of  August  and  still  continue  to  Japan;  her  fuel  supply  at 
this  moment  is  3,600  cu.  m. 

b.  Ship  "23"  will  be  at  the  point  of  rendezvous  with  ship  "28" 
at  1600  on  28  Jul.   (See  Telegram  1640.) 

Ship  "28"  and  ship  "23"  are  Instructed  as  follows: 

a.  Following  their  rendezvous,  the  zone  of  operations  is  divided 
by  longitude  15°  Wj  ship  "28"  is  assigned  to  the  eastern  and  ship  "23" 
to  the  western  zone. 

b.  The  SCHLIEMANN  is  under  orders  to  wait' for  ship  "28" »daily, 
beginning  29  Jul.,  at  a  point  145  miles  due  east  of  point  "Schubert". 
Thereafter,  the  southern  half  of  the  large  quadrant  west  of  the  supply 
quadrant  is  assigned  to  the  SCHLIEMANN  as  waiting  area.   See  Radiogram 
1806. 

Sailing  order  to  this  effect  for  CHARLOTTE  SCHLIEMANN  was  transmitted 
by  Radiogram  1615. 

3y  short  signal  received  at  2215,  ship  "23"  requested  2  new  Arado  196 
planes. 

Information  about  enemy  situation  by  Radiogram  2257. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

An  intelligence  report  from  England  reports  that  the  repair 
of  a  KING  GEORGE  V  class  battleship  damaged  by  collision  is  almost 
completed.   Yfriile  under  repair,  her  underwater  torpedo  tubes  were  im- 
proved. 

2.  Own  Situation: 

Atlantic  Coast: 

Nothing  to  report. 

Channel  Coast; 

The  transfer  of  the  3rd  Torpedo  Boat  Flotilla  from  Le  Havre  to 
the  Bay  of  St.  Malo  had  to  be  postponed  for  24  hours  on  account  of  the 
breakdown  of  ono  boat. 

43^5- 


CONFIDENTIAL 
25  Jul.  1942 

III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Air  reconnaissance  spotted  3  convoys  totalling  about  90 
steamers  off  the  southeastern  coast. 

Own  Situation: 

Mine-exploding  vessels  swept  3  ground  mines  north  of  Terschel- 
ling  and  off  Ameland  and  Norderney.   Some  of  the  mine-sweeping  opera- 
tions were  affected  by  bad  weather. 

2.  Norway  and  Arctic  Ocean: 

Enemy  Situation: 

Air  reconnaissance  over  the  Arctic  Ocean  brought  no  tactical 
results.  An  intelligence  report  concerning  the  assembly  of  a  new  con- 
voy for  the  Arctic  Ocean  (see  War  Diary  of  21  Jul.)  reveals  further  de- 
tails about  the  nature  of  the  cargo  and  discloses  the  fact  that  a  con- 
siderable number  of  Russian  warships  will  meet  the  convoy  at  the  half- 
way mark. 

Own  Situation: 

A  Russian  battery  fired  19  rounds  on  a  Petsamo  convoy  on  25 
Jul.  without  causing  damage.   16  American  survivors  of  convoy  PQ  17 
drifted  ashore  at  Rolfsoe  Sound  on  24  Jul. 

The  destroyer  ERICH  STEINBRINCK  arrived  at  Trondheim  on  24  Jul.   The 
destroyers  HANS  LODY  and  THE0D0R  RIEDEL  were  towed  south  from  Trondheim 
on  25  Jul. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

Nothing  to  report  from  the  area  of  the  Commanding  Admiral,  Defenses 
Baltic  Sea.   Convoy  operations  suffered  from  bad  weather. 

The  27th  Landing  Flotilla  laid  the  minefield  "Nashorn  lln  in  the 
eastern  Baltic  Sea  according  to  plan.   The  Kronstadt  Sea  Channel  was 
mined  according  to  plan  with  TMB  "gruen"  mines  in  shallow  water.  Mine- 
sweeping  operations  were  affected  by. bad  weather.   Transport  service  on 
schedule . 

Group  North  submits  an  analysis  of  the  situation  by  the  Commander,  Mine 
Sweepers,  Baltic  Sea.   According  to  this  report,  increased  Russian 
activity  of  larger  ships,  possibly  even  of  battleships,  must  be  antici- 
pated.  There  are  increased  mine-sweeping  activities,  and  lively 
traffic  to  and  from  the  islands.   Stalin  has  allegedly  ordered  that 
Someri,  Hogland  and  Tytersaari  be  recaptured.   Supposedly  submarines 
are  assembling  at  Kronstadt  to  attempt  an  organized  breakthrough. 

The  Commander,  Minesweepers,  Baltic  Sea  requests,  in  connection  with  his 
planned  defense  measures,  that  the  obsolete  and  slow  Finnish  PT  boats 
be  replaced  by  a  few  new  ones.   Group  North  considers  that  the  situa- 


ted- 


CONFIDENTIAL 
25  Jul.  1942 

fion  in  the  Gulf  of  Finland  is  becoming  increasingly  critical.   The 
Group  approves  the  measures  taken  by' the  Commander,  Mine  Sweepers, 
Baltic  Sea  and  orders  assault  boats  immediately  to  lay  TMB  mines  in  the 
Kronstadt  Sea  Channel.   (This  was  already  done  during  the  night  of  25 
Jul.)   For  copy  of  the  respective  telegram  see  l/Skl  18215/42  Gkdos.  in 
War  Diary,  Part  C,  Vol.  III. 

The  analysis  of  the  situation  sounds  rather  alarming  and 
the  Naval  Staff  sees  no  particular  reason  for  such  alarm. 
It  has  been  known  all  summer  that  the  enemy  is  making 
every  effort  to  win  greater  freedom  of  movement  and  be- 
come more  active. 


V.    Submarine  Warfare 

1.  Enemy  Situation; 

Radio  monitoring  revealed  5  steamers  and  2  escort  vessels 
southeast  of  Reyk janes  on  a  southeasterly  course  at  2200  on  24  Jul. 
This  may  be  the  reason  for  the  increased  reconnaissance  activity  ob- 
served over  the  Iceland  area. 

From  the  South  Atlantic  180  miles  southwest  of  the  Cape  Verde  Islands  a 
message  was  intercepted  that  an  Italian  steamer,  call  letters  BY1IP, 
was  torpedoed.   When  repeated,  the  report  was  termed  doubtful. 

Patrol  vessels  southwest  of  buoy  no.  4  off  Cape  Hatteras  reported  gun- 
fire from  a  submarine.   A  U.S.  warship  was  dispatched  to  the  reported 
location. 

2.  Own  Situation: 

Contact  with  the  convoy  in  the  central  North  Atlantic  was 
maintained  intermittently.   Up  to  now,  2  steamers  totalling  approximately 
16,000  GRT  were  torpedoed  and  probably  sunk.  ,  The  attacking  submarine 
U  "252"  was  driven  off. 

Group  *Wolf"  continues  operations  against  this  convoy. 

No  successes  were  reported  by  our  submarines  on  the  American  East  Coast, 
the  West  Indies,  the  South  Atlantic  or  the  Mediterranean. 

For  details  see  Supplement  to  Submarine  Situation,  War  Diary,  Part  B, 
Vol.  IV. 

The  Commanding  Admiral,  Submarines  is  informed  by  the  Naval  Staff  that 
ship  "28n  has  sunk  3  steamers  of  24,000  GRT  outside  of  the  submarine 
zone  of  operations  in  the  Gulf  of  Guinea  and  that  she  reported  this  area 
to  be  promising  hunting  ground  for  submarines.   The  Naval  Staff  leaves 
it  to  the  discretion  of  the  Commanding  Admiral,  Submarines  to  enlarge 
the  submarine  operations  area  correspondingly. 


-|32t7- 


CONFIDENTIAL 
25  Jul.  1942 

VI.   Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

The  day  was  uneventful.   During  the  night  of  25  Jul.  con- 
siderable enemy  planes  penetrated  into  the  west  area  and  sonc  into  the 
east  area.   Attacks  in  the  west  concentrated  on  Duisburg  and  caused 
considerable  damage. 

2.  Mediterranean  Theater: 

Our  raids  on  the  Malta  airfields  continued.   Other  missions 
were  flown  for  reconnaissance  and  for  the  protection  of  our  convoys.  A 
bomber  flight  attacked  an  enemy  convoy  west  of  Haifa  and  damaged  one 
steamer  despite  strong  defenses.   5  Ju  52 's  were  damaged  during  an 
enemy' air  raid  on  the  airfield  of  Candia  in  the  night  of  24  Jul. 

3.  Eastern  Front: 

Planes  supporting  the  Army  shot  down  43  enemy  planes.  In  the 
Stalingrad  area  2  tankers  were  set  afire  by  incendiary  bombs  on  the 
Volga  River;  on  the  lower  Volga  a  number  of  tugs  and  barges  were  at- 
tacked, some  of  which  were  damaged  or  set  afire.   1  gunboat  was  sunk 
off  Azov. 


VII.  V/arfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

According  to  an  intelligence  report  from  Spain,  the  transport 
LLANSTEPHAN  CASTLE  which  sailed  from  Gibraltar  in  a  westerly  direction 
had  1,500  relief  troops  and  150  civilians  on  board.   All  3  cruisers  in 
the  harbor  of  Gibraltar  are  in  dock. 

Altogether  3  submarines  were  observed  in  the  harbor  of  Valletta. 

In  the  area  between  Alexandria,  Jaffa  and  Haifa  normal  convoy  and  pa- 
trol activity.   No  important  changes  were  observed  in  the  harbors  of 
Haifa  and  Suez. 

2.  Own  Situation,  Mediterranean: 
• 

The  transfer  of  the  Italian  PT  boats  assigned  to  operations 
in  North  Africa  was  completed.   At  the  moment  7  small  and  7  large 
Italian  subchasers  are  at  Tobruk.   During  the  night  of  25  Jul.  2 
Italian  PT  boats  are  in  waiting  position  east  of  Marsa  Matruh.   A  crane 
was  set  afire  as  a  result  of  an  enemy  air  raid  on  Tobruk  during  the 
night  of  23  Jul. 

With  regard  to  the  suggestion  of  the  Naval  Staff  to  lay  minefields  in 
the  North  African  coastal  waters,  the  Commanding  Admiral,  German  Naval 
Command,  Italy  reports  that  the  Italian  N?>val  High  Command  is  planning 
to  lay  mine  barrages  and  assign  2  destroyers.   The  Naval  Command  wants 
the  minefields  laid  from  27°  14'  E,  31°  27'  N  to  27°  18'  E,  31°  24.5' 
N.   The  Commanding  Admiral,  German  Naval  Command,  Italy  considers  the 
assignment  of  ZG  3  for  this  task  desirable  in  case  the  Italian  plan 
should  not  materialize.   (See  Telegram  1616.) 


, 


-fe2b- 


CONFIDENTIAL 
25  Jul.  1942 

The  Naval  Staff  considers  the  above  location  of  the  minefield  excellent 
and  desires  that  the  barrage  be  laid  as  soon  as  possible.   In  view  of 
previous  experiences  it  can  be  assumed  that,  notwithstanding  the 
Italian  Naval  High  Command's  promise,  the  minefield  wilJL  be  laid  only 
if  we  exert  the  utmost  pressure.   The  Naval  Staff  leaves  it  to  the 
discretion  of  the  Commanding  Admiral,  German  Naval  Command,  Italy  to 
ask  that  either  the  Naval  Staff  or  the  Commander  in  Chief,  Navy  in- 
tervene. 

For  this  mission  ZG  3  is  placed  under  the  operational  command  of  the 
Commanding  Admiral,  German  Naval  Command,  Italy.   Mines  will.be 
supplied  by  Naval  Group  South  and  the  Commanding  Admiral,  Aegean  Sea. 

A  directive  to  this  effect,  adding  that  the  location  of  the  barrage  is 
within  the  200  m  line,  is  transmitted  to  the  Operations  Staff,  North 
Africa  of  the  German  Naval  Command,  Italy,  with  copies  to  the  German 
Naval  Command,  Italy,  to  Naval  Group  South  and  to  the  Commanding  Ad- 
miral, Aegean  Sea.  (See  Telegram  1501.) 

3.  Transport  of  Supplies  to  North  Africa: 

Steamer  PA0LIN0  arrived  at  Tripoli  in  the  evening  of  24  Jul, 
Steamer  ARGENTEA  and  motor  ship  GIULIA  sailed  on  24  Jul.  from  Palermo 
and  Naples  for  Tripoli.   Tanker  RONDINE  was  unsuccessfully  attacked  by 
enemy  planes  at  2300  on  24  Jul.  north  of  Derna.   Coastal  supply  traffic 
with  auxiliary  sailing  vessels,  naval  barges,  and  steamer  0STIA  ac- 
cording to  plan. 

On  24  Jul.  970  tons  were  unloaded  at  Tobruk. 

4.  Area  Naval  Group  South: 

Aegean  Sea; 

Enemy  planes  raided  the  air  bases  of  Candia  and  Tymbakion 
during  the  night  of  24  Jul.   Convoy  service  on  schedule. 

Black  Sea: 

Enemy  Situation: 

German  air  reconnaissance  on  24  Jul.  sighted   the  hull  of  a 
KIROV  class  warship  and  5  coastal  vessels  outside  the  harbor  of  Tuapse 
On  25  Jul.  the  ship's  hull  could  no  longer  be  found;  It  had  evidently 
been  towed  away. 

Own  Situation: 

4  motor  mine  sweepers  arrived  at  Balaklava.   Otherwise  noth- 
ing to  report. 


VIII.  Situation  East  Asia 

No  reports  have  been  received. 


-fc23- 


vka 


coittduntial 

25  Jul.  1942 

IX.   Arrj  Situation 

1.  Russian  Front; 

Army  Group  A; 

The  bridge  over  the  Don  River  south  of  Rostov  was  completed. 
Advanc_e-UjP-its  captured  Kalinin,  approximately  20  km  south  of  the  Don 
River.   A  bridgehead  across  the  Sal  River  was  established  at  I.lartino 

I  e  forces  which  had  crossed  the  Don  southwest  of  Rostov  advanced 
southward  and  are  attacking  Bataisk.   The  Don  was  crossed  at  several 
places  southeast  of  Rostov.   Spearheads  are  advancing  toward  Olgin- 
skaya. 

Army  Group  B: 

On  the  southern  sector  we  reached  the  area  20  km  west  of 
Chirskaya.   Northwest  of  Kalach  we  repulsed  enemy  attacks  on  the  Liska 
sector.   Enemy  attempts  to  cross  the  Don  at  Losevo  were  frustrated  by 
Hungarian  forces,  and  attacks  on  the  northern  sector  of  the  Voronezh 
bridgehead  repulsed.   Mopping-up  of  the  penetration  at  Yelets  con- 
tinues.  However,  new  enemy  attacks  in  this  area  are  to  be  expected. 
This  applies  also  to  the   area  south  and  northwest  of  Livny, 

Central  Army  Group: 

South  of  Bryansk,  several  localities  were  captured  from 
partisans.  Between  Demidov  and  Velizh,  German  forces  advanced  in 
easterly  direction  and  repulsed  enemy  tank  attacks. 

Northern  Army  Group: 

A  Russian  attack  south  of  Leningrad  succeeded  in  breaking 
into  the  position  of  an  infantry  division,  making  a  counterattack 
necessary. 

2.  Finnish  Front: 

Coastal  batteries  scored  hits  on  enemy  ships  in  the  Gulf  of 
Finland.   On  the  western  shore  of  the  southern  portion  of  Rybachi  Pen- 
insula construction  of  fortifications  has  been  observed. 

3.  North  Africa: 

Nothing  to  report  except  reconnaissance  activity  and  gunfire, 


-I33D- 


CONFIDENTIAL 
26  Jul.  1942 

Items  of  Political  Importance 

Great  Britain: 

Opposition  against  the  pressure  of  public  opinion  for  the  establish- 
ment of  a  second  front  in  western  Europe  appears  in  public  addresses 
and  in  the  press.   Besides  the  conservative  Sir  Edward  Grigg,  who  de- 
mands that  the  time  and  place  of  a  second  front  be  left  to  the  military 
leaders,  Minister  of  Labor  Bevin,  in  addressing  the  Welsh  miners  took 
issue  with  the  persistent  advocates  of  a  second  front;  he  pointed  out 
that  the  safest  way  to  victory  lies  in  the  speedy  repair  of  merchant 
vessels  and  greater  output  of  coal.   The  Economist  denies  that  Moloto\) 
recently  received  a  guarantee  for  the  establishment  of  a  second  front 
and  warns  that  the  failure  of  a  second  front  could  mean  losing  the  waru 
The  magazine  Aeroplane  emphasizes  the  difficulties  of  an  invasion  of 
Norway  or  Prance  and  holds  that  the  best  policy  Great  Britain  could 
pursue  is  still  the  aerial  bombardment  of  Germany  on  the  greatest 
possible  scale  and  the  continuation  of  the  supply 'of  planes  and  other 
war  material  to  Russia. 

The  incessant  clamor  accompanying  each  and  every  enemy 
action  contrasts  strongly  with'  the  absolute  silence 
preceding  the  surprise  blows  of  the  Axis  Powers. 

U.S.A.: 

A  supply  board  is  to  be  set  up  with  the  task  of  initiating  the  immediate 
construction  of  a  fleet  of  transport  planes  in  order  to  help  overcome 
the  lack  of  tonnage  required  for  shipping  troops  and  war  material. 

For  a  special  report  on  the  U.S.  war  production  see  Political  Review 
No.  173,  paragraph  2c. 

While  total  new  construction  of  the  first  6  months  of  1942  lagged  be- 
hind schedule,  the  estimates  for  May  and  June  were  exceeded.   Serious 
difficulties  will  arise  with  regard  to  the  supply  of  certain  raw 
materials.   During  the  month  of  May  4,000  planes  were  built. 


Situation  2  6  Jul.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation: 

South  Atlantic: 

The  British  Ministry  of  Economic  Warfare  announced  that 
Germany  and  Japan  have  initiated  a  blockade-runner  service  round  Cape 
Horn  in  order  to  exchange  machine  tools  for  rubbor. 

It  is  strange  that  the  enemy  should  not  have  better  in- 
formation. 

Indian  Ocean '- 

According  to  an  Italian  source,  the  QUEEN  MARY  arrived  at 
Port  Said.   On  2  Jul.  3  British  warships  reportedly  landed  a  major 
troop  detachment  on  Mavotte  Island  (Madagascar)  which  captured  the 
smtaissi-ons  • 

-£3> 


CONFIDENTIAL 
26  Jul.  1042 

It  I s  not  quite  clear  what  is  meant  here. 

It  was  belatedly  established  from  a  decoded  Admiralty  report  that  un- 
identified planes  bombed  and  machine-gunned  the  Keeling  Islands  on  15 
May. 

2.    Own  Situation; 

Radiogram  1003  contains  appreciation  and  congratulations  of 
the  Commander  in  Chief,  Navy  to  the  captain  and  crew  of  ship  "10",  the 
award  of  additional  war  decorations,  and  further  information  that  the 
captured  MADRONO  sailed  from  Bat a via  to  Yokohama  on  22  Jul. 

The  Naval  Staff  agrees  with  the  proposal  of  the  Naval  Attache  at  Tokyo 
regarding  war  decorations  for  the  boarding  detachment  of  the  NANKIN. 
A  very  rigorous  criterion  must  be  applied  and  planned  further  opera- 
tions taken  into  consideration  when  these  decorations  are  conferred  at 
the  discretion  of  the  Naval  Attache  after  consultation  with  the  com- 
manding officer  of  the  prize  crew. 

Directive  to  this  effect  to  the  Naval  Attache  at  Tokyo  by  Radiogram 
1235. 

Enemy  situation  report  by  Radiogram  0359. 


II.      Situation  YJest  Area 

1.  Enemy  Situation: 

According  to  air  reconnaissance,  the  convoy  from  Gibralt  ar 
was  observed  at  noon  320  miles  west  of  Cape  Finisterre  on  a  course  of 
350°;  its  size  remained  unchanged.   In  the  forenoon  a  passenger  steamer 
of  7,000  to  12,000  GRT,  probably  the  LLANSTEPHAN  CASTLE,  was  sighted 
under  escort  of  2  destroyers  on  a  course  of  360°  360  miles  west  of 
Porto. 

Lively  convoy  traffic  in  the  western  Channel  area. 

2.  Own  Situation; 

Atlantic  Coast: 

Owing  to  the  suspected  presence  of  aerial  mines,  the  road- 
stead and  harbor  of  La  Pallice  were  temporarily  closed.   1  enemy  plane 
was  shot  down  off  lie  de  Re  by  2  patrol  vessels;  off  Bayonne  2  mine- 
sweepers were  attacked  by  a  Sunderland  plane,  which  withdrew  under  fire 
and  subsequently  attacked  the  Spanish  steamer  CASTILLO  ALMANSA  with 
bombs  and  gunfire.   At  noon,  a  German  convoy  was  strafed  and  bombed  by 
a  Sunderland  plane  in  the  same  area. 

Channel  Coast: 

Intense  enemy  air  activity  over  the  entire  coastal  region. 
At  2340  of  25  Jul.  and  at  0130  of  26  Jul.  3  subchasers  were  bombed  and 
strafed  by  enemy  planes  south  of  Boulogne;  they  suffered  light  damage 
and  casualties. 

15  rounds  were  fired  by  our  batteries  on  an  enemy  convoy  off  Ramsgate 
^t-2344  of  25  Jul. ;-- results-were-  ^rot  observed. 

43^2- 


CONFIDENTIAL 
26  Jul.  1942 

At  0345  2  patrol  vessels  had  a  brief  engagement  with  4  enemy  gunboats 
off  Cherbourg.   It  Is  probable  that  a  few  hits  were  scored  on  the 
enemy  vessels  which  withdrew  after  20  minutes.   Patrol  vessel  "712" 
suffered  some  minor  damage  but  no  casualties.   At  1539  a  sea  rescue 
boat  was  sunk  off  Calais  by  a  formation  of  Spitfires.   The  entire  crew 
and  2  propaganda  company  reporters  were  lost.   A  crash  boat  going  to 
the  rescue  was  unsuccessfully  bombed  by  an  enemy  plane. 

2  vessels  of  the  3rd  Torpedo  Boat  Flotilla  have  transferred  t'o  the  Bay 
of  St.  Malo,  2  vessels  returned  to  Le  Havre  on  account  of  engine 
trouble. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation: 

Air  reconnaissance  revealed  lively  convoy  traffic  off  the 
southeastern  and  eastern  coasts c 

Own  Situation; 

Mine-exploding  vessels  swept  2  mines  and  a  harbor  patrol  ves- 
sel a  third  one  off  Terschelling  and  Borkum.   Convoy  service  according 
to  plan.   Mine-sweeping  was  somewhat  affected  by  bad  weather3 

During  the  night  of  25  Jul.  lively  enemy  air  activity  over  the  northern 
Dutch  coastal  area;  planes  penetrated  as  far  as  Oldenburg. 

2.  Norway  and  Arctic  Ocean: 
Nothing  to  report. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

On  24  Jul.  2  ST0R0SHEV0Y  class  destroyers  which  passed  through 
the  Sea  Channel  to  Kronstadt  suffered  3  hits  from  our  guns.  On  25  Jul. 
2  destroyers  and  1  vessel  with  tall  masts  under  camouflage  nets  could 
be  made  out  at  Kronstadt. 

2.  Own  Situation: 

The  gravel-carrying  sailing  vessels  ANNA  and  ELISABETH  sank 
in  Eckernfoerde  Bay  due  to  mines.   3  transport  steamers  sailed  from 
Oslo  to  Finland;  owing  to  bad  weather  they  had  to  put  in  at  Horten. 

For  the  request  of  the  Commanding  Admiral,  Baltic  Countries  bo  the 
Northern  Army  Group  to  initiate  the  transport  of  wounded  soldiers  frcm 
Riga  and  Libau  see  Telegram  1440. 

As  a  result  of  careful  daily  reconnaissance  by  the  1st  Air  Force  it 
appears  useless  to  commit  Italian  subchasers  and  coastal  mine-laying 


-$53- 


CONFIDENTIAL 
26    Jul.    1942 

craft  against  the  Russian  convoy  traffic  on  Lake  Ladoga,  since  this 
traffic  moves  only  in  very  shallow  waters.   The  only  successful  method 
to  combat  it  is  offered  by  the  14  Siebel  ferries  of  the  1st  Air.  Force. 
Group  North  therefore  suggests  that  the  Italian  subchasers  and  coastal 
mine-laying  craft  be  transferred  to  the  Gulf  of  Finland  and  the  Armed 
Forces  High  Command  be  asked  for  a  decision.   For  copy  of  the  respective 
telegram  see  1  Ski  18268/42  Gkdos  in  War  Diary,  Part  C,  Vol.  III. 

: 
i 

The  Naval  Staff  considers  the  planned  measure  to  be 
appropriate . 


V.   Submarine  Warfare 

1.  Enemy  Situation; 

Planes  believe  that  they  attacked  2  submarines  successfully 
and  a  third  one  without  success  in  the  northern  rendezvous  area. 
Another  plane  reported  its  position  above  a  surfaced  submarine  270 
miles  northwest  of  Cape  Vilano. 

In  the  South  Atlantic,  a  U.S.  steamer  with  the  call  letters  KFNJ 
flashed  a  submarine  warning  signal  30  miles  northeast  of  Monrovia  and 
reported  sighting  a  periscope. 

A  report  about  a  submarine  attack  off  Newfoundland  was  intercepted; 
numerous  reports  of  sighted  submarines  off  the  U.S.  coast  and  in  the 
West  Indies  were  intercepted. 

2.  Own  Situation: 

Submarine  U  "601"  reports  from  the  west  coast  of  Novaya 
Zemlya  that  no  traffic  was  encountered  there. 

Continuing  their  operations  against  the  convoy  east  of  Newfoundland, 
submarine  U  "607"  scored  2  hits  on  an  8,000  GRT  steamer  and  submarine 
U  "704"  a  probable  hit  on  a  5,000  GRT  steamer.  Contact  was  lost  during 
the  forenoon  owing  to  fog  and  poor  visibility. 

No  successes  were  reported  from  the  U.S.  coast.  From  the  West  Indies, 
submarine  U  "160"  reports  sinking  a  7,500  GRT  steamer  and  submarine 
U  "66"  sinking  tanker  TJIBESAR  (10,800  GRT)  west  of  Trinidad. 

On  15  Jul.  submarine  U  "150"  of  the  South  Atlantic  group  sank  the 
tanker  EXPRESS  (10,055  GRT)  southwest  of  Freetown  after  missing  the 
steamer  EMPRESS  OF  CANADA.   At  the  same  time  submarine  U  "201"  reports 
sinking  the  British  ship  "T  157". 

For  details  see  Supplement  to  Submarine  Situation  in  War  Diary,  Part  B, 
Vol.  IV. 


VI.   Aerial  Warfare 

1.    British  Isles  and  Vicinity; 

During  the  night  of  25  Jul.  22  of  our  planes  raided  Middles- 
brough from  altitudes  between  700  m  to  1500  m;  they  concentrated  on  the 


-m- 


IDENTIAL 
26  Jul.  1942 

Ipyard  In  the -Tees  River  bend.   The  results  observed  were  good  In 
he  unusually  low  altitude  of  the  attack. 

ivity  during  the  night  of  26  Jul.  over  the  northwest 
m  coastal  region.  The  attacks  concentrated  on  Hamburg  where 
ider-able  damage  was  done.  (See  daily  situation  report.)   The 

Iff ice  there  was  heavily  damaged.   Preliminary  reports  indicate 
•  lanes  shot  down  by  anti-aircraft  artillery  and  12  by  fighter 
planes.   Pinal  reports  will  follow. 

2.  Mediterranean  Theater: 

The  II  Air  Corps  continued  its  attacks  on  the  Malta  air- 

-  Ids . 

iidstorms  prevented  major  operations  in  North  Africa. 

Between  Port  Said  and  Alexandria  1  of  our  reconnaissance  planes  was 
shot  down  by  the  fighter  defense  which  is  remarkably  efficient  in 
his  area  and  is  beyond  the  range  of  our  fighter  planes. 

3.  Eastern  Front: 

In  highly  effective  operations  over  the  areas  of  Army  Group 
A  and  B,  124  enemy  planes  were  shot  down  on  26  Jul. 

A  number  of  steamers,  tugboats,  tankers  and  freight  barges  on  the 
Volga  were  sunk  or  set  afire. 


VTI.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

Photo  reconnaissance  reveals  that  2  submarines  and  2  escort 
vessels  sailed  from  Valletta  in  the  forenoon.   A  third  submarine  re- 
mained in  the  harbor. 

Nothing  to  report  from  other  areas. 

2.  Own  Situation,  Mediterranean: 

Enemy  air  raids  on  Tobruk  during  the  nights  of  24  and  25  Jul. 
caused  no  damage. 

Italian  submarines  operating  in  the  eastern  Mediterranean  report  sink- 
ing a  5,000  GRT  steamer  and  a  heavily  loaded  troop  transport  but  gave 
no  further  details. 

2  Italian  subchasers  were  in  waiting  position  east  of  Marsa  Matruh  dur- 
ing the  night  of  25  Jul. 

3.  Transport  of  Supplies  to  North  Africa; 

Supply  transports  between  Italy  and  Tripoli  proceeded  ac- 
cording to  plan.   5  German  naval  barges  sailed  on  25  Jul.  from  Palermo 
to  Tripoli. 

The  steamer  OSTIA  was  unsuccessfully  attacked  by  an  enemy  submarine 

-|33|5- 


CONFIDENTIAL 
26  Jul.  1942 

between  Tobruk  and  Marsa  Matruh. 

For  details  of  the  aerial  torpedo  attack  on  24  Jul.  on  the  motor  ship 
PISANI  off  Cephalonia  see  Telegwaa  0630. 

2  naval  barges  en  route  from  Marsa  Matruh  to  Tobruk  suffered  damage 
and  casualties  through  strafing  by  enemy  planes  on  25  Jul.;  they  are 
temporarily  out  of  commission. 

On  25  Jul.  651  tons  of  material  were  unloaded  at  Tobruk  and  315  tons 
at  Marsa  Matruh. 

4 .   Area  Naval  Group  South : 

Aegean  Sea: 

Nothing  to  report. 

Black  Sea: 

Mine-sweeping  operations  outside  and  inside  the  Crimean 
ports  brought  no  results  so  far. 

Naval  barge  "134"  is  out  of  commission  after  running  aground.   The 
Mariupol  floating  dock  will  probably  be  refloated  by  28  Jul. 

Convoy  service  according  to  plan. 

Special  Item: 

A  description  of  the  Russian  naval  bases  and  ports  on  the  Caucasian 
coast  of  the  Black  Sea  is  contained  in  a  pamphlet  of  May  1942  by  the 
Naval  Intelligence  Division. 


VIII.  Situation  East  Asia 

No  reports  of  any  importance  were  received.' 


IX.   Army  Situation 

1.   Russian  Front: 

Army  Group  A: 

The  heavily  fortified  town  of  Bataisk  was  stormed.   The 
Koissny  bridgehead  was  widened  in  a  southerly  direction.  Units  of  the 
"Grossdeutschland"  Infantry  Division  and  the  16th  Motorized  Division 
advanced  from  their  bridgeheads  in  the  direction  of  the  Manych  River* 
Heavy  enemy  pressure  is  being  exerted  on  the  bridgeheads  of  Orlovka  an4 
Tsymliansk.  Rumanian  divisions  reached  the  heights  of  the  Ilyin  area 
at  the  northern  wing  of  the  Army  Group. 

Army  Group  B: 
4t©#th  of— Gh-irskaya  asd-north-  -of-  Ka-lach-  g-f-ieree  battle  Is  In 

-J33J6- 


CONFIDENTIAL 
26  Jul.  1942 

progress.   North  of  Voronezh  v;e  repulsed  tank-supported  attacks.   \.'e 
succeeded  in  encircling  the  enemy  forces  cut  off  at  the  penetration 
point  south  of  Yelets.   Russian  attacks  at  Livny  failed. 

Central  Army  Group: 

2  enemy  battalions  v/ere  encircled  southeast  of  Velish. 

Northern  Army  Group: 

Except  for  futile  enemy  attacks  in  the  Kholm  area,  nothing 
to  report. ' 

2.  Finnish  Front: 

On  the  front  of  the  Haselskaya  Group,  heavy  traffic  was  ob- 
served in  the  rear  of  the  enemy's  position  and  on  the  Murmansk  rail- 
road. 

On  the  northeastern  sector  gunfire  and  scouting  activity  on  both  sides 
Otherv/ise  nothing  to  report. 

3.  North  Africa: 

Fighting  was  on  a  small  scale  due  to  'a  sandstorm.   In  the 
evening  25  enemy  tanks  cautiously  advanced  on  the  southern  sector. 

Little  air  activity  on  both  sides. 


45ZJ7- 


CONFIDENTIAL 
27  Jul.  1942 

Items  of  Political  Importance 

France: 

According  to  an  intelligence  report  from  Marseille,  General  IVeygand 
is  planning  a  trip  to  Dakar  via  Gibraltar  in  order  to  establish  con- 
tact with  the  Americans  and  not  with  De  Gaulle. 

Great  Britain: 

A  mass  meeting  of  60,000  called  by  communists  to  propagandize  the 
establishment  of  a  second  European  front  took  place 'in  Trafalgar 
Square  on  26  Jul. 

In  a  radio  address  to  the  U.S.A.,  Cripps  criticized  Gandhi's  attitude. 
Great  Britain  is  obliged  to  preserve  India  under  all  circumstances  as 
a  secure  base  of  operations  against  Japan.   Gandhi  himself  made  an 
undisguised  attack  on  Japan  in  his  periodical  Harijan.   India  will 
resist  all  imperialistic  ambitions  and  will  permit  the  Allies  to  main- 
tain troops  in  India.   Any  Japanese  attack  will  be  opposed  with  all 
means  available. 

Argentina: 

According  to  Reuter,  on  25  Jul.  the  Argentine  Foreign  Ministry  finally 
recognized  the  U.S.  expropriation  procedure  against  the  Argentine 
tanker  VICTORIA;  Transocean  contends  that  this  is  the  result  of  a  re- 
purchase clause  contained  in  the  sales  contract  of  the  vessel  which 
originally  was  a  U.S.  tanker. 

Brazil: 

A  note  of  protest  against  the  arrest  of  Brazilian  nationals  in 
occupied  France  emphasizes  that  the  break  of  diplomatic  relations 
with  Germany  was  made  merely  to  safeguard  Pan-American  interests.  The 
Government  further  protested  against  the  attacks  by  German  submarines 
on  Brazilian  shipping. 

China: 

Chungking  military  circles  assert  that  strong  Japanese  forces  are 
being  concentrated  in  central  Mongolia  for  an  attack  on  Siberia.  It 
is  assumed  that  an  offensive  in  the  direction  of  Chita  is  planned. 
Alleged  Japanese  mopping-up  activities  in  North  China  constitute 
merely  an  attempt  to  divert  attention  from  Japanese  troop  concentra- 
tions . 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.  The  Chief,  Naval  Staff  approves  of  Group  North's  plan  to  do  with- 
out light  German  and  Italian  vessels  on  Lake  Ladoga.   (See  War  Diary 
of  26  Jul.) 

II.  The  Chief,  Naval  Communications  Division  compares  the  time  re- 
quired to  evaluate  radio  intelligence  aboard  ship  and  at  headquarters 
on  land,  as  based  on  observations  during  operation  "Roesselsprung"  and 
during  the  transfer  of  PRINZ  EUGSN  from  northern  Norway  to  home  waters. 
The  procedure  could  be  speeded  considerably  by  shifting  Group  North's 


•^8- 


CONFIDENTIAL 
27  Jul.  1942 

headquarters  from  Kiel  to  Sengwarden.  Even  so  it  will  hardly  be  possible 
to  make  up  for  the  delay  caused  by  transmitting  and  evaluating  the  in- 
formation on  land. 

The  Chief,  Naval  Communications  Division  expresses  his  opinion  on  the 
suggestion  of  the  Commanding  Admiral,  Submarines  that  jamming  stations 
be  set  up  on  the  western  French  and  northern  Spanish  coasts  in  order  to 
interfere  with  radar  on  enemy  planes  in  the  Bay  of  Biscay.   This  pro- 
posal is  impracticable  on  account  of  the  insufficient  range  of  availably 
transmitters.  The  only  remedy  at  this  moment  is  to  use  detect'ion  de- 
vices on  board  the  threatened  submarines;  60  of  these  devices  are  ready 
for  immediate  installation.   The  effectiveness  of  this  device  is  limited, 
however,  because  it  can  be  used  only  when  the  submarine  is  surfaced. 

Finally,  the  Chief,  Naval  Communications  Division  reports  that  on  ac- 
count of  the  constantly  growing  losses,  the  Commanding  Admiral,  Sub- 
marines was  forced  to  make  the  radical  change  in  the  radio  code  as 
planned  in  order  to  eliminate  all  possibilities  which  might  account  for. 
these  losses.  , 

In  a  Very  Restricted  Circle; 

III.  The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division  re- 
ports on  Fuehrer  directive  no*  45  concerning  future  operations  on  the 
Eastern  Front.  For  particulars  of  the  directive  see  the  report  of  the 
Permanent  Representative  of  the  Commander  in  Chief,  Navy  at  the  Fuehrer 
Headquarters  in  War  Diary  of  22  Jul.  and  the  report  of  19  Jul.  of  the 
Naval  Representative  on  the  Armed  Forces  High  Command,  Operations  Staff 
in  War  Diary  of  19  Jul. 

IV.  With  reference  to  a  particular  case  the  Chief,  Naval  Staff  wants  t4 
make  it  clear  that  in  view  of  the  real  purpose  of  the  war  diaries, 
superior  officers  are  not  permitted  to  object  to  statements  of  fact  for 
the  reason  that  these  statements  contain  a  criticism  of  or  a  complaint 
about  higher  commands. 


Special  Items 

I.  A  survey  by  the  Naval  Intelligence  Division  (3rd  edition)  lists  the 
status  of  the  British  fleet  and  the  names  of  its  commanding  officers  as 
of  1  Jun.  1942  and,  among  other  things,  the  British  warship  losses  up  to 
3  May  1942.  According  to  this,  466  ships  were  lost,  among  them  5 
battleships,  4  aircraft  carriers,  20  cruisers,  79  destroyers,  40  sub- 
marines, 27  auxiliary  cruisers,  178  mine  sweepers  and  anti-submarine 
vessels.  75  of  the  last  named  group  were  the  victims  of  mines.   Of  the 
total  loss  of  446  ships,  44  are  credited  to  German  submarines,  103  to 
planes,  and  55  to  Italian  and  Japanese  successes. 

II.  Reports  about  the  submarines  of  the  Russian  Black  Sea  fleet,  about 
the  construction  of  harbor  installations  at  Koweit  (Red  Sea)  and  about 
the  disposition  of  the  French  fleet  as  of  1  Jul.  1942  are  contained  in 
the  News  Analysis  No.  36/42  "Foreign  Navies"  of  the  Naval  Intelligence 
Division. 

III.  Our  Naval  Attache  at  Rome  reports  a  discussion  with  the  Japanese 
Naval  Attache  at  Rome  in  the  course  of  which  the  latter  commented  on  the 
great  influence  of  the  Japanese  Navy  upon  the  basic  policy  and  the 


-|23>- 


CONFIDENTIAL 
27  Jul.  1942 

strategy  followed  by  Tokyo,  although  this  influence  never  shows  out- 
wardly.  The  present  lack  of  activity  of  Japanese  naval  surface  forces 
is  necessitated  by  extensive  repairs  in  the  wake  of  recent  operations. 
The  Japanese  Attache  spontaneously  expressed  his  regrets  that  the 
enemy  succeeded  lately  in  bringing  a  great  number  of  transports  through, 
the  Red  Sea  to  Suez.   He  apologized  for  the  lack  of  activity  on  the 
part  of  the  Japanese  submarines  in  these  waters  which  he  attributed  to 
the  small  number  of  submarines  suitable  for  the  purpose.  Moreover, 
operations  in  the  Socotra  area  are  at  present  handicapped  by  the  pre-  | 
vailing  strong  monsoons. 


Situation  27  Jul.  1942 

I.   War  in  Foreign  Waters 

1.   Enemy  Situation; 

South  Atlantic; 

According  to  a  report  of  the  Naval  Attache  at  Buenos  Aires, 
the  steamer  QUEEN  MARY  arrived  in  Rio  on  12  Jul.  and  left  on  14  Jul. 
with  U.S.  troops  for  Australia. 

The  Italian  Armed  Forces  High  Command  sent  the  following  information 
with  regard  to  the  reported  large  convoy  from  Freetown; 

The  convoy  arrived  at  Freetown  in  3  sections  and  consists  of  approx- 
imately 100  vessels.   The  first  section  was  composed  of  25  to  30  large 
passenger  steamers  including  the  QUEEN  MARY,  QUEEN  ELIZABETH,  MANHATTAN 
and  PASTEUR,  with  approximately  50,000  to  70,000  men  and  was  escorted 
by  the  NELSON  and  RODNEY.   The  second  section  was  escorted  by  the 
MALAYA  and  HANNOVER  (this  is  apparently  a  completely  garbled  name). 
The  third  section  consisted  of  merchant  vessels  with  cargos  of  war  ma- 
terial and  was  escorted  by  2  aircraft  carriers. 

As  reported  by  the  Naval  Attache  at  Istanbul,  a  part  of  this  convoy  is 
scheduled  to  arrive  at  Suez  by  the  end  of  July  under  escort  of  the 
NELSON  and  RODNEY,  and  QUEEN  ELIZABETH  will  arrive,  in  Alexandria. 

The  unusually  numerous  reports  about  this  giant  convoy, 
which  can  be  traced  to  more  or  less  the  same  source, 
seem  to  indicate  that  a  very  large  and  heavily  escorted, 
convoy  is  actually  en  route  with  troops  and  materiel  via 
Freetown  around  the  Cape  and  that  a  part  of  the  ships  is 
destined  for  the  Red  Sea.  However,  there  is  no  reliable 
indication  as  to  its  composition,  port  of  destination, 
or  the  strength  of  its  escort. 

According  to  a  communication  from  a  special  French  source,  the  follow- 
ing auxiliary  cruisers  are  reported  to  be  in  the  South  Atlantic  at  thi$ 
moment:   ALCANTARA,  ASTURIAS,  CARNARVON  CASTLE,  CHESHIRE,  CILICIA, 
C0RINTHIA,  and  LARGS  BAY. 

Indian  Ocean; 

The  Haval  Attache  at  Istanbul  reports  the  following  ships  in 
the  Indian  Ocean:  RAMILLIES,  RESOLUTION,  ROYAL  SOVEREIGN,  INDOMITABLE, 
ILLUSTRIOUS,  FORMIDABLE,  and  probably  the  WARSPITE  and  REVENGE. 


4_s4o- 


CONFIDENTIAL 


27  Jul.  1942 


2.    Own  Situation: 

The  radio  code  material  captured  by  ship  "28"  should  be  of 
great  value  for  radio  intelligence.   The  Naval  Staff  assumes  that  ship 
"28"  will  take  advantage  of  her  rendezvous  with  ship  "23"  to  inform 
the  latter  about  this  material  and  will  deliver  the  original  documents 
to  the-CHARLOTTE  SCHLIEMANN  on  the  occasion  of  their  subsequent  meet- 
ing. 

The  Naval  Staff  informs  ships  "28",  "23",  and  "10"  to  this  effect;  in 
case  the  assumption  is  incorrect,  the  short  signal  "No"  should  be  sent, 
because  it  is  planned  to  have  a  submarine  take  over  the  material  from 
the  SCHLIEMANN.   For  safety  reasons  4  copies  of  the  captured  documents,, 
with  the  exception  of  the  already  known  Mersig  Code,  are  to  be  delivered 
to  the  SCHLIEMANN.  (See  Telegram  2011* ) 

Radiogram  0706  contains  information  on  the  enemy  situation  and  states 
that  La  Plata  River  shipping  has  diminished  by  about-  60^  and  has  at 
present  reached  the  bottom  level  of  1917. 


II.  Situation  West  Area 

1.   Enemy  Situation; 

At  2155  air  reconnaissance  sighted  12  steamers  off  Portsmouth, 
some  of  which  had  2  barges  in  tow;  they  were  heading  for  port.  At  2200 
15  steamers  were  lying  off  Middles  Point  (Isle  of  Wight)  and  not  far  to 
the  north  there  were  10  more  steamers  partly  concealed  by  a  smoke  screen. 
9  steamers  escorted  by  3  patrol  vessels  on  a  westerly  course  were 
sighted  off  Lizard  Head.   A  number  6f  ships  were  located  in  the  eastern 
and  western  parts  of  the  Channel  by  radio  monitoring,  and  7  PT  boats, 
1  mine  sweeper,  2  subchasers  and  1  crash  boat  were  identified. 

2.  Own  Situation; 
Atlantic  Coast; 

1  ground  mine  was  swept  in  the  waters  off  Lorient. 

Channel  Coast; 

During  the  night  of  26  Jul.  enemy  planes  made  a  futile 
attack  on  the  14th  Subchaser  Flotilla  off  the  Canche  River  mouth.  Be- 
tween 1930  and  2030  on  27  Jul.  a  great  number  of  enemy  planes  flew  over 
the  coastal  area  between  Ostend  and  Calais  without  dropping  bombs. 

3.  Special  Items-; 

a.   The  Commander,  PT  Boats  reports  on  the  experiences  of 
the  PT  boats  regarding  the  range  of  enemy  radar;  in  one  case,  which 
occurred  In  the  western  Channel  area,  this  range  was  established  to 
attain  38  or  40  miles.   The  Commander,  PT  Boats  believes  that  similar 
distances  are  covered  in  the  Hoofden  also,  greatly  handicapping  PT  boat 
operations;  he  requests  a  thorough  investigation  as  to  whether  the  range 
of  enemy  radar  could  be  reduced  by  our  using  different  microwave  sets, 
by  a  change  of  the  antenna  arrangement,  or  by  other  measures.   For  de- 
tails see  Telegram  2100.   The  Chief,  Naval  Communications  Division  will 
attend  to  the  matter. 


-bii- 


CONFIDENTIAL 
27  Jul.  1942 

b.   The  Connander,  Destroyers  reported  his  plans  for  the  dis- 
position of  the  torpedo  boats  in  August  based  on  figures  of  26  Jul. 
Torpedo  boats  T  "4",  "10",  "13",  and  "14"  will  be  assigned  to  Group 
West.   The  Naval  Staff  expects  that  the  open  water  firing  exercises 
at  Trondheim  will  be  concluded  by  the  first  part  of  August,  and  dir- 
ects the  Fleet  and  the  Commander,  Destroyers  first  of  all  to  increase 
the  number  of  torpedo  boats  of  Group  West  ready  for  action  to  4  or  5. 
This  complies  with  the  request  of  Group  West  which  reported  that  due 
to  the  poor  condition  of  the  torpedo  boats  any  one  of  them  can  drop 
out  at  any  time . 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation: 

Air  reconnaissance  located  15  to  20  steamers  off  Harwich  in 
the  morning,  and  in  the  evening  43  steamers  on  a  northerly  and  14 
steamers  on  a  southerly  course  off  the  eastern  coast.  There  was  little 
air  reconnaissance  over  the  North  Sea. 

Own  Situation: 

During  the  night  of  26  Jul.  numerous  air  attacks  on  ships 
took  place  in  the  North  Sea  area.   Forces  of  the  Commanding  Admiral, 
Defenses,  North  Sea  shot  down  4  planes.   During  the  same  night,  naval 
anti-aircraft  guns  brought  down  15  planes.   After  1530  6  enemy  planes 
flew  over  the  German  Bight  and  dropped  bombs  on  the  south  bank  of  the 
Elbe  River  and  on  Wangeroog.   One  of  the  attackers  was  shot  down  off 
Borkum  by  a  harbor  patrol  boat. 

Between  1925  and  2008  45  Spitfires  raided  Walcheren  Island;  one  of  them 
was  shot  down  by  naval  artillery.   Bombs  were  dropped  near  Emden  at 
1715. 

Mine -exploding  vessels  swept  2  ground  mines  off  Terschelling;  a  third 

one  was  swept  by  the  34th  Mine  Sweeper  Flotilla  south  of  the  approach  /^ 

buoy  of  Den  Ilelder  (off  Egmond-aan-Zee ) .   The  fact  that  a  mine  was 

swept  near  Egmond-aan-Zee  is  important,  because  the  enemy  has  never  laid 

mines  there  before.   However,  it  is    possible  that  a  mine  was  dropped 

by  mistake. 

Convoy  and  channel-sweeping  operations  in  the  area  of  the  Commanding 
Admiral,  Defenses,  North  Sea  proceeded  according  to  plan. 

2.  Norway  and  Arctic  Ocean: 

Enemy  Situation: 

According  to  statements  of  war  prisoners  from  convoy  PQ  17, 
ground  mines  may  be  expected  in  the  waters  of  Iceland,  Iokanga  and  the 
entrance  to  the  White  Sea.   For  their  exact  positions  see  Group  North's 
report  1  Ski  18282/42  Gkdos .  in  War  Diary,  Part  C,  Vol.  Ha. 

Recent  air  reconnaissance  established  shipping  in  the  southern  part  of 
Matochkin  Strait  for  the  supply  of  bases  and  anti-aircraft  batteries  at 
its  entrance.  This  illustrates  the  increased  importance  of  Novaya  Zemlya. 


1-342- 


CONFIDENTIAL 


27  Jul.  1942 


A  periscooe  was  sighted  south  of  Aarsteinen  (Lofoten  Islands)  on  26 
Jul. 

Own  Situation: 

A  submarine  hunt  by  2  mine  sweepers  off  Aarsteinen  proved 
futile.   The  ships  towing  the  LODY  and  RIEDEL  left  Eergen  on  a  southerly 
course  at  0300. 

The  Swedish  diplomatic  exchange  ship  DROTTNINGH0LM  arrived  at  Kristian- 
sand  South  from  New  York  on  26  Jul. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

On  26  Jul.  12  submarines  were  located  by  radio  monitoring  ana 
extraordinarily  busy  radio  communication  was  observed  between  Lavan- 
saari  and  Kronstadt.   On  27  Jul.  a  great  number  of  small  war  vessels, 
including  5  gunboats,  6  mine  sv/eepers  and  15  to  20  patrol  and  FT  boats 
were  sighted  off  Lavansaari. 

2.  Own  Situation: 

Nothing  of  importance  to  report  from  the  area  of  the  Command- 
ing Admiral,  Defenses,  Baltic  Sea.   As  reported  by  Group  North,  dock 
Bruno  will  be  transferred  from  Kiel  to  Gdynia  on  4  Aug.  and  the  GRAF 
ZEPPELIN  will  be  transferred  from  Gdynia  to  Kiel  on  13  Aug.  (See  Tele- 
gram 0826.) 

The  Naval  Staff  is  not  yet  clear  as  to  whether  the 
GRAF  ZEPPELIN  should  be  left  in  the  eastern  Baltic  Sea 
for  the  time  being.   The  lack  of 'shipyard  workers  has 
created  a  new  situation  regarding  new  constructions  and 
repairs  in  the  order  of  priority  and  will  certainly  affect 
also  the  beginning  of  work  on  the  GRAF  ZEPPELIN.  A 
decision  on  this  matter  will  have  to  be  reached  shortly 
in  consultation  with  the  Quartermaster  Division,  Naval 
Staff  and  the  Naval  Construction  Division. 

The  steamer  LARSEN  was  repeatedly  but  unsuccessfully  attacked  off 
Windau  by  an  enemy  submarine,  both  with  torpedoes  and  gunfire.   A  sub- 
marine chase  has  been  ordered. 

Convoy  service  according  to  plan  without  major  incident.   Mine-sweeping 
activities  were  affected  by  weather  conditions. 


V.   Submarine  Warfare 

1.   Enemy  Situation: 

Reconnaissance  activity  over  the  northern  rendezvous  area  was 
lively,  probably  in  connection  with  an  arriving  convoy.   At  1530  a 
plane  reported  attacking  a  submarine  on  an  easterly  course  in  the 
middle  of  the  Bay  of  Biscay;  the  submarine  was  probably  hit  twice.  An 
additional  plane  was  dispatched  against  her.   A  British  vessel  was 


-fc4j- 


COITFIDLITTIAL 
27  Jul.  1942 

located  325  miles  west  of  Itockall  Bank.  In  the  Freetown  area  the 
British  tanker  TEKOA  (8,695  GRT )  gave  a  submarine  warning  signal  and 
reported  sighting  a  periscope. 

A  U.S.  stealer,  call*  letters  WJGQ,  was  torpedoed  approximately  500 
miles  south  of  the  Cape  Verde  Islands. 

2.    Own  Situation: 

Contact  with  the  convoy  east  of  Newfoundland  was  lost 
definitely  and  the  "V.'olf"  group  has  terminated  operations  against  it. 
Submarine  U  "582"  reports  sinking  a  new  steamer  of  0,498  GRT  about  500 
miles  south  of  the  Cape  Verdes.   Her  captain  and  chief  engineer  were 
taken  aboard. 

Additional  reports:  in  Supolement  to  Submarine  Situation,  V/ar  Diary, 
Part  B,  Vol.  IV. 


VI.   Aerial  '..arfare 

1.  British  Isles  and  Vicinity: 

Strong  German  forces  raided  Birmingham  during  the  day  and  the 
night  of  27  Aug.;  also  a  number  of  industrial  plants  and  airfields  were 
attacked  during  the  day  with  good  results.  For  details  see  daily  situa- 
tion report. 

A  few  enemy  planes  penetrated  into  German  territory  during  the  day 
reaching  Leer,  Bremen,  and  the  West  Frisian  Islands.    A  few  bombs  were 
dropped.   During  the  night  of  27  Jul.  45  enemy  planes  were  reported 
from  Belgium  and  northern  and  western  France. 

2.  Hediterranean  Theater: 

The  airfields  of  Lucca  and  Venezia  were  raided  during  the  day. 
9  enemy  planes  were  shot  down  during  missions  flown  in  support  of  the 
Panzer  Army,  Ilorth  Africa. 

3.  Eastern  Front: 

In  support  of  the  attacking  armies  48  enemy  planes  were  shot 
down  and  29  destroyed  on  the  ground.  A  gunboat  on  the  Volga  River  was 
damaged. 

Special  Items: 

a.    The  fact  that  British  planes  are  making  repeated  daylight 
attacks  and  score  bomb  hits  even  in  bad  weather  leads  the  Operations 
Staff,  Air  Force  to  conclude  that  the  planes  are  guided  by  radio  beams 
and  that  the  British  equipment  is  far  superior  to  that  of  the  Germans. 

.b.  The  Siebel  ferries  of  the  Air  Force  on  Lake  Ladoga  will  not 
be  ready  for  operations  until  the  end  of  August.  The  delay  is  caused 
by  training  difficulties. 

c.   German  raids  on  British  airfields  were  not  very  successful 
recently,  because  they  were  mostly  executed  by  new  and  inexperienced  crews, 
It  may  also  be  that  the  altitude  from  which  we  usually  attack  is  too  great, 


3  A  A- 


CONFIDENTIAL 
27  Jul.  1942 

The  tight  fuel  situation  contributes  largely  to  existing  training 
difficulties. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.  Enemy  Situation,  Mediterranean: 

The  French  steamer  MITIDJA  was  captured  by  a  British  sub- 
marine en  route  from  Oran  to  Marseille,  off  Cape  Palos.  The  French 
torpedo  boat  FOUGUEUX  went  out  to  her  assistance  during  the  night  of 
26  Jul. 

Photo  reconnaissance  again  revealed  3  submarines  in  the  harbor  of 
Valletta  at  noon. 

A  submarine  sighted  5  miles  west  of  Sidi  Barrani  confirms  the  suspic- 
ion that  a  systematic  fight  is  being  waged  against  our  coastal  supply 

shipping. 

Only  light  convoy  activity  was  observed  off  the  Syrian  coast. 

According  to  an  unconfirmed  Italian  report,  a  British  submarine  sank 
off  Haifa  on  22  Jul.  in  waters  110  m  deep. 

2.  Own  Situation,  Mediterranean: 

An  enemy  air  raid  on  Tobruk  during  the  night  of  26  Jul. 
caused  no  damage.   In  the  forenoon,  westbound  naval  barges  were  attack- 
ed unsuccessfully  by  enemy  planes  8  miles  west  of  Marsa  Matruh.   A 
convoy  of  3  steamers  escorted  by  2  corvettes  sailing  in  northerly  dir- 
ection was  attacked  by  a  German  submarine  15  miles  off  Jaffa;  no  hit 
was  scored. 

3.  Transport  of  Supplies  to  North  Africa: 

On  26  Jul.  the  steamer  ARGENTEA  arrived  at  Tripoli  from 
Palermo.  The  arrival  of  steamer  GUILIA,  due  at  Tripoli  this  afternoon 
has  not  yet  been  reported.   The  motor  ship  M ON VI SO  is  scheduled  to 
sail  from  Brindisi  to  Benghazi  this  afternoon.   Other  ship  movements 
according  to  plan  without  major  incident. 

During  26  Jul.  the  amount  of  material  unloaded  at  Tobruk  totalled  940 
tons,  at  Marsa  Matruh  72  tons. 

4.  Area  Naval  Group  South: 
Aegean  Sea: 

Nothing  to  report. 

31ack  Sea: 

Enemy  Situation: 

As  before  only  minor  movements  of  Russian  naval  forces  were 
observed  in  the  eastern  Black  Sea. 


-M- 


CONFIDENTIAL 
27  Jul.  1942 

Own  Situation: 

During  the  night  of  25  Jul.,  1  enemy  gunboat  and  1  PT  boat 
attacked  2  German  patrol  vessels  in  the  Sea  of  Azov.   1  patrol  vessel 
was  sunk,,  her  crew  is  missing.   During  the  same  night  light  enemy  air 
raids  took  place  on. Mariupol  and  Taganrog.   Mine-sweeping  operations 
off  the  Crimean  coast. had  no  results.   The  motor  mine  sweepers  R  "33" 
and  R  "164"  arrived  at  Sulina,  so  that  all  8  ships  of  the  3rd  Motor 
Mine  Sweeper  Flotilla  are  in  the  Black  Sea  at  present. 


VIII.  Situation  East  Asia 

On  23  Jul.  our  Military  Attache  at  Bangkok  reported  about  the 
situation  in  the  northeastern  Pacific  on  the  basis  of  information 
from  the  Japanese  India  Bureau: 

Japanese  naval  supremacy  extends  over  the  area  west  of  a  line  from 
Midway  to  the  Aleutian  Islands.   A  landing  attempt  on  the  Midway 
Islands,  staged  from  the  main  Japanese  island  of  Hondo  on  5  Jun. 
failed,  because  the  Americans  recognized  the  plan  at  an  early*  stage  aihd 
called  in  superior  air  and  naval  forces  from  Hawaii.   The  Japanese 
Army  units  suffered  no  losses,  because  the  troop  transports  withdrew 
in  time  and  returned  to  Japan.   The  strategic  importance  of  these 
islands  makes  it  necessary  to  repeat  the  operation.   The  occupation 
of  the  ice-free  Aleutian  ports  of  Kiska  and  Attu,  executed  on  the  same 
day,  was  launched  from  Hokkaido  and  succeeded  as  a  surprise  despite 
the  fact  that  it  took  2  weeks  to  get  there.   The  islands  had  no  forti- 
fications and  the  harbors  are  now  serving  as  Japanese  submarine  bases; 
enemy  air  raids  against  them  are  greatly  handicapped  by  the  prevail- 
ing fog.   Japanese  military  analysts  blame  the  failure  of  the  Midway 
operation  on  the  fact  that  the  forces  were  divided  in  order  to  carry 
out  the  Aleutian  operation  at  the  same  time. 


IX.  Army  Situation 

1.   Russian  Front: 

Army  Group  A: 

At  noon  the  enemy  began  to  withdraw  south  and  southeast  of 
Rostov.   A  German  spearhead  reached  the  Kagalnik  River  at  Kagalnitsk. i 
Our  forces  advanced  beyond  Bataisk  to  the  south.   Olginsk  was  captured. 
The  Manych  River  was  reached  and  bridgeheads  established.  Enemy 
attacks  on  the  Tsymlyansk  bridgehead  were  repulsed. 

Army'  Group  B: 

On  the  southern  sector,  the  Don  River  was  reached  north  and 
south  of  Chirskaya.   Increased  enemy  resistance  by  tank  forces  was  en-i 
countered  at  Kalach  and  on  the  heights  north  of  it.  The  rest  of  the 
front  was  comparatively  quiet,  following  the  heavy  attacks  of  the  last* 
few  days. 

Central  Army  Group: 

No  major  engagements. 


4346- 


CONFIDENTIAL 
27  Jul.  1942 

Northern  Army  Group; 

Southeast  of  Lake  Ilmen  the  enemy  attacked  the  Pola  River 
sector  following  an  artillery  barrage. 

2.  Finnish  Front; 
Nothing  to  report. 

3.  North  Africa; 

1  * 

During  the  night  of  26  Jul.  the  enemy  began  his  offensive 
on  the  northern  sector  after  an  artillery  barrage;  strong  infantry 
and  tank  forces  attacked  in  westerly  and  southwesterly  direction  and 
succeeded  in  breaking  into  our  positions  at  several  places.   These 
local  penetrations  were  sealed  off  in  the  course  of  %he   forenoon  by 
reserves  and  the  enemy  was  subsequently  thrown  back  by  a  counterattack 
.under  heavy  losses  of  personnel  and  materiel.   32  enemy  tanks  were  de- 
stroyed, over  1,000  prisoners  taken.   One  German  and  one  Italian 
battalion  suffered  severe  losses. 

Enemy  detachments  staged  a  harassing  attack  during  the  night  of  26 
Jul.  and  succeeded  in  reaching  the  Casaba-West  airfield  where  they  de4 
stroyed  several  German  planes.   The  detachment  was  thrown  back  into 
the  Qattara  Depression  by  a  German  unit.   German  and  enemy  air  forces 
took  very  active  part  in  the  operations. 

So  far  only  1  rifle  battalion  and  1  anti-tank  battalion  of  the 
Italian  Air  Landing  Division  have  arrived  at  the  front. 

Special  Items: 

On  25  Jul.  the  Military  Attache  at  Tokyo  submitted  a  report  stemming 
from  the  Soviet  Consulate  General  about  the  conference  of  the  Supreme 
War  Council  held  at  Kuibyshev  between  7  and  11  Jul.;  at  this  con- 
ference it  was  decided  to  hold  under  all  circumstances  the  line  running 
from  Leningrad  via  Moscow  and  Kuibyshev  to  the  Caucasus  and  to  go  over 
to  the  offensive  later  after  the  armies  have  been  reorganized  and  re- 
plenished. 

The  command  of  the  special,  so-called  protective  army  was  entrusted  to 
Voroshilov;  General  Koslov  with  strong  forces  was  ordered  to  Anapa 
against  potential  German  attacks  across  the  Kerch  Strait.   Large 
quantities  of  fuel,  reported  to  amount  to  20,000  to  30,000  tons  daily, 
are  shipped  from  the  Caucasus  up  the  Volga  River  for  the  supply  of  the 
northern  front. 


^HHre^XHKH&ttHMHHHttHKHKtt:-*} 


H34f- 


CONFIDENTIAL 
28  Jul.  1942 

Items  of  Political  Importance 

Concerning  the  establishment  of  a  Second  European  Front,  it  is 
learned  from  a  diplomatic  source  that  British  military  circles  be- 
lieve the  best  time  for  it  would  be  in  midwinter,  for  climatic  as  wel)l 
as  technical  reasons.   The  Allied  military  commanders,  however,  are 
said  to  be  willing  to  risk  an  earlier  start  of  the  operations,  al- 
though there  are  still  doubts  as  to  the  adequacy  of  the  Allied  forces 
concentrated  thus  far  on  the  British  Isles. 

According  to  French  reports,  informed  Washington  sources  state  that 
due  to  recent  developments  U.S.  military  leaders  have  changed  their 
minds  completely  with  regard  to  the  most  effective  war  measures. 
Attention  is  now  being  focused  on  the  problems  of  air  strength  and 
transportation .   The  destruction  of  German  industry  by  mass  air  raids 
offers  the  best  chances  of  success,  also  as  regards  an  invasion  of 
Europe. 

A  leading  French  socialist,  who  fled  to  De  Gaulle,  declared,  accord- 
ing to  British  reports,  that  the  entire  French  population  is  waiting 
to  join  the  Allied  troops  in  the  event  of  a  landing.  The  resistance 
movement  embraces  all  classes  with  very  few  exceptions.  It  is  grow- 
ing particularly  in  Brittany,  in  the  north  of  France,  in  Lyon  and 
Marseille. 

The  American  radio  commentator  Sullivan  declared  that  the  tonnage  re- 
quired for  the  invasion  of  the  European  continent  is  still  available. 
The  Naval  Staff  shares  this  opinion.   Also,  the  amount  of  troops  and 
materiel  on  British  soil  is  sufficient.  -Should  the  Allies  not  yet  be 
completely  prepared,  they  must  risk  immediate  action  even  with  lesser 
forces,  in  order  to  prevent  a  Russian  collapse.   It  may  safely  be 
assumed  that  an  offensive  in  the  west  would  result  in  a  Japanese  at- 
tack on  Siberia  or  Australia. 

France  and  Syria; 

Reports  from  Beirut  claim  that  serious  differences  have  arisen  be- 
tween the  De  Gaullist  General  Catroux  and  the  British  commander  for 
the  Near  East,  General  Spears. 

Great  Britain: 


Contrary  to  previous  expectations,  Churchill  will  make  no  statement  on 
the  war  situation  prior  to  the  summer  recess  of  Parliament. 

India; 

For  details  about   Gandhi's   article   in  Hari.jan  see    Political  Review 
No.    174,   paragraph  3. 

E£2P_t; 

A  Turkish  diplomat  reports  that  the  present  situation  is  desperate  as 
a  result  of  British  pressure.   The  country  as  a  whole  is  convinced 
that  the  loss  of  Egypt  would  mean  that  the  Empire  loses  the  war,  and 
that  therefore  the  Egyptian  campaign  Is  far  more  important  than  the 
Russian  campaign. 

Portugal; 

The  Portuguese  Government  vigorously  oppoBes  British  attempts  to 


-34g- 


CONFIDENTIAL 
28  Jul.  1942 

sponsor  a  plebiscite  among  the  white  population  of  the  Cofala  and 
Manize  Districts  (Mozambique)  in  order  to  decide  whether  these  areas 
are  to  remain  Portuguese  or  be  joined  to  Rhodesia.   The  area  in 
question  comprises  Beira,  the  principal  port  and  terminal  of  the  rail 
roads  to  Rhodesia  and  Nyasaland. 

Argentina; 

The  German  Embassy  at  Madrid  reports  about  a  conversation  with  Argen- 
tine diplomats,  according  to  which  Argentina  is  firmly  resolved  to 
remain  neutral.   The  population's  appreciation  of  this  policy  is 
growing.  The  pressure  exerted  on  Argentina  and  Chile  by  the  U.S.A. 
is  far  stronger  than  generally  believed.  For  this  reason  further  in- 
cidents created  by  submarine  warfare  should  be  avoided. 

Due  to  American  pressure,  a  parliamentary  investigating  committee 
'started  an  examination  of  the  situation  of  the  interned  crew  of  the 
GRAF  SPEE.   Of  1,054  internees,  130  are  reported  to  have  escaped, 
mostly  early  in  1940,  including  23  officers. 


Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

sir-  | 

I.  Report  of  the  Chief,  Operations  Branch,  Naval  Staff  Operations 
Division:   According  to  a  communication  from  the  Japanese  Naval  Attache, 
the  armament  of  the  light  cruisers  TIKUMA  and  TONE  was  altered  from 

12  15.5  cm  guns  to  8  20.3  cm  guns  in  4  turrets;  that  of  the  light 
cruisers  KUMANO,  SUZTJYA,  MOGAMI  and  MIKUT.IA  from  15  15.5  cm  guns  to 
10  20.3  cm  guns  in  5  turrets.   The  6  20.3  cm  guns  mounted  in  single 
turrets  of  the  heavy  cruisers  HURUTAKA  and  KAK0  were  replaced  by  6 
20.3  cm  guns  mounted  in  twin  turrets  in  order  to  gain  space  for  a 
catapult. 

II.  The  Chief  of  the  Naval  Construction  Division  reports  on  the 
extent  of  the  authority  of  Staatsrat  Blohm  in  his  capacity  as  chair- 
man of  the  Central  Board  for  the  Shipyard  Industry  with  regard  to  war- 
ship construction.   Staatsrat  Blohm  gave  the  assurance  that  he  will 
not  interfere  arbitrarily  with  the  assignment  of  construction  work  on 
warships  to  the  shipyards,  since  this  matter  is  not  subject  to  his 
authority.   The  Commander  in  Chief,  Navy  insists  on  adequate  guarantees 
that  this  assurance  will  actually  be  carried  out. 

Another  report  deals  with  platform  vessels  which  the  Army  plans  to  use, 
for  shipping  tanks.  The  Naval  Construction  Division  believes  that  the! 
usefulness  of  such  vessels  is  very  limited. 

With  regard  to  the  resumption  of  construction  work  on  the  GRAF  ZEPPELIN^ 
the  Chief  of  the  Naval  Construction  Division  points  to  the  advisabilitjy 
of  reviewing  Group  North's  order  of  13  Aug.  for  the  transfer  of  the 
ship  to  Kiel;  the  reexamination  is  necessary  in  view  of  the  present 
labor  situation  and  because  this  project"  ranks  5th  on  the  priority 
list.   The  Naval  Staff  has  already  taken  care  of  this  matter.  (See 
War  Diary  of  27  Jul.) 

The  labor  problem  at  the  Salamis  shipyard  is  difficult  but  can  best  be 
solved  by  permitting  the  Greek  workmen  to  be  fed  from  military  stores. 
This  would  also  obviate  the  complicated  system  of  sending  Greek  labor 
to  Germany  and  bringing  German  shipyard  workers  to  Greece.  The  Com- 
mander in  Chief,  Navy  issues  an  order  to  this  effect. 


W- 


CONFIDENTIAL 
28  Jul.  1942 

III.  The  Deputy  to  the  Chief,  Naval  Staff  Quartermaster  Division  re- 
ports that  the  conversion  of  10  naval  barges  into  gun  carriers  will 
be  completed  by  the  end  of  August.   In  addition,  the  Commanding  Ad- 
miral, Defenses,  West  receives  4  anti-aircraft  vessels  of  1,600  GRT 
each  from  the  Air  Force;  this  is  a  welcome  reinforcement  of  his  pro- 
tective forces. 

In  a-Veyy  Restricted  Circle 

IV.  The  Chief  of  Operations  Branch,  Naval  Staff  Operations  Division 
reports  as  follows: 

The  British  Gibraltar-based  forces  have  displayed  increasing  activity 
in  the  Western  Mediterranean;  this  is  confirmed  by  the  plane-ferrying 
operations  twice  a  month  within  the .last  3  months,  and  by  the  fact 
that  cruisers  are  operating  singly  and  also  heavy  and  medium  ships  are 
escorting  convoys  carrying  supplies  to  Malta.   In  view  of  this  situa- 
tion, the  Naval  Staff  instructed  the  Commanding  Admiral,  German  Naval 
Command,  Italy  to  examine  the  feasibility  of  committing  German  sub- 
marines to  operations  in  the  western  Mediterranean;  the  Commander, 
Submarines,  Italy  was  informed  of  this,  too.   According  to  the  Naval 
Staff's  observations,  British  naval  forces  regularly  penetrate  east- 
ward at  least  to  the  waters  between  Mallorca  and  Algiers  and  stay  there 
for  some  time.  The  Naval  Staff  sees  good  prospects  for  2  submarines. 

In  reply,  the  German  Naval  Command,  Italy  reported  that  onl^  4  sub- 
marines would  be  ready  for  operations  in  the  entire  Mediterranean 
theater  until  about  8  Aug.,  then  to  the  middle  of  August  a  maximum  of 
7,  and  during  the  latter  half  of  August  again  only  4  boats.   The  Naval 
Command  believes  that  it  would  be  best  to  concentrate  submarines  as 
well  as  all  other  means  of  warfare  in  the  eastern  Mediterranean,  in 
view  of  the  small  number  of  submarines  available  and  the  present  sit- 
uation at  the  front  of  the  Panzer  Army.  Operations  in  the  we stern 
Mediterranean  would  practically  eliminate  all  chances  of  success  in 
the  vital  area  and  could  be  justified  only  if  the  achievements  there 
had  a  direct  bearing  on  the  situation  in  the  eastern  Mediterranean. 
2  submarines  are  regarded  as  insufficient. 

On  the  whole,  the  Naval  Staff  agrees  with  this  analysis  of  the  German 
Naval  Command,  Italy,  but  considers  it  necessary  to  investigate 
whether  a  way  could  not  be  found  to  combat  both  the  British  naval 
forces  and  the  supply  traffic  in  the  western  Mediterranean.   The 
Fuehrer  is  greatly  interested  in  this  problem,  as  reported  by  the 
Permanent  Representative  of  the  Commander  in  Chief,  Navy  at  the  Fuehre " 
Headquarters;  also  the  supply  of  Malta  undoubtedly  has  a  very  direct 
effect  on  the  situation  of  the  Panzer  Army,  North  Africa  in  that 
German  supply  transports  are  threatened  by  operations  based  on  this 
island.   The  Naval  Staff  will  approach  the  German  Naval  Command,  Italy 
to  this  effect.   The  Chief,  Naval  Staff  consents. 

V.  Apart  from  the  probable  loss  of  7  submarines  previously  reported, 
the  additional  loss  of  2  more  submarines  is  feared. 

Submarine  U  "576"  (Lt.  Heinicke)  operating  last  off  Cape  Hatteras  and 
submarine  U  "751"  (Lt.  Bigalk)  which  left  St.  Nazaire  on  14  Jul.  have 
not  been  heard  from  since.   It  is   possible  that  they  were  sunk  by  a 
plane  or  a  mine. 

Submarine  U  "106"  sailing  from  western  France  was  attacked  by  an  enemy 
plane  and  is  unable  to  dive.   Help  is  on  the  way. 


-I35P- 


CONFIDENTIAL 


28  Jul.  1942 


'-VI.   The  Air  Force  General  Staff  declined  to  participate  in  operation 
"BV  222H  (raid  on  New  York). 

VII.  The  German  General  attached  to  Italian  Armed  Forces  Headquarters 
reported  on  26  Jul.  to  the  Operations  Staff,  Armed  Forces  High  Commands 
The  Italian  High  Command  instructed  the  Italian  Commander  in  Chief, 
North  Africa  to  hold  the  present  Alaraein  front  as  a  springboard  for 
future  operations  against  the  Nile  Valley  and  the  Suez  Canal  and  to 
fortify  the  position  for  defense. 

Parts  of  the-  Italian  forces  are  to  be  ferried  from  Italy  to  North 
Africa  on  ships  which  thus  far  were  reserved  for  operations  planned 
against  Corsica, 

Ships  for  this  and  similar  purposes  have  been  with- 
drawn from  the  supply  traffic  to  North  Africa.   In 
view  of  the  effects  produced  by  the  lack  of  supplies 
during  the  recent  African  operations,  this  is  most 
deplorable. 

The  Italian  High  Command  believes  that  the  facts  that  the  railroad  will) 
resume  operations  soon  and  coastal  shipping  by  means  of  naval  barges  i? 
functioning  already  will  ensure  adequate  supply  of  the  Panzer  Army. 

The  50:50  ratio  of  German  and  Italian  supply  shipments  from  Italy  to 
North  Africa  cannot  be  altered  in  favor  of  Germany  at  this  moment,  be- 
cause the  Italian  units,  almost  incapacitated  by  lack  of  trucks  and 
ordnance,  are  in  urgent  need  of  replacements.   However,  the  Italian 
High  Command  has  consented  to  make  special  provisions  for  transporting 
2  German  anti-aircraft  units. 

VIII.  The  Permanent  Representative  of  the  Commander  in  Chief,  Navy  at 
the  Fuehrer  Headquarters  reported  on  2  Jul.  that  Headquarters  was  con- 
sidering the  plan  of  handing  over  Crete  exclusively  to  the  Italians; 
it  was  argued  that  Crete  would  no  longer  be  menaced,  once  the  eastern 
Mediterranean  is  cleared  of  major  British  naval  forces  and  Egypt  and 
the  Suez  Canal  are  seized.   Although  this  matter  is  not  acute  yet  in 
view  of  the  temporary  standstill  of  the  Egyptian  offensive,  the  Naval 
Staff  considered  it  necessary  to  define  its  stand  on  the  question  of 
ceding  Crete.   See  1/Skl  I  b  (plan)  1381/42  Gkdos.  Chefs.   In  view  of 
strategic  considerations  during  the  war  as  well  as  political  consider- 
ations both  during  and  after  the  war,  the  Naval  Staff  feels  that  it  is 
of  vital  importance  that  Crete  remain  in  German  hands  during  the  war 
because  of  Suda  Bay  with  its  excellent  harbors  which  supplement  our 
bases  in  the  Black  Sea,  and  after  the  war  because  of  the  island's  de- 
cisive value  to  the  position  of  greater  Germany  in  the  southern  area. 

The  Chief,  Naval  Staff  agreed  with  this  analysis  which -is  forwarded  to 
the  Permanent  Representative  of  the  Commander  in  Chief,  Navy  at  Fuehrer 
Headquarters;  the  Naval  Representative  at  the  Operations  Staff,  Armed 
Forces  High  Command;  Naval  Group,  South;  and  the  Commanding  Admiral, 
German  Naval  Command,  Italy.   Copies  are  sent  to  the  Naval  Liaison 
Officers  at  the  Army  General  Staff  and  the  Air  Force  Operations  Staff. 
Copy  in  War  Diary,  Part  C,  Vol.  XIV. 


■Is*- 


CONFIDENTIAL 
28  Jul.  1942 

Special  Items 

I.  The  Naval  Staff  informs  Naval  Group  South  about  Fuehrer  Directive 
No.  45  (see  War  Diary  of  27  Jul.)  from  which  it  quotes  the  objectives 
of  the  planned  operations: 

Army;       "The  main  task  of  Army  Group  A  consists  in  seizing  the  en- 
"tire  eastern  Black  Sea  shore,  thus  eliminating  the  Black 
Sea  harbors  and  the  enemy's  Black  Sea  fleet." 

Air  Force;   "Shipping  on  the  lower  Volga  is  to  be  disrupted  by  mines. 
The  Air  Force  will  concentrate  its  efforts  on  cooperating 
with  the  forces  attacking  the  Black  Sea  ports;  apart  from 
directly  supporting  the  Army,  the  Air  Force,  in  coopera- 
tion with  the  Navy,  is  to  prevent  enemy  naval  forces  from 
interfering." 

Navy:       "The  Navy  is  charged  with  the  direct  support  of  the  Army  in 
crossing  the  Kerch  Strait;  moreover,  the  naval  forces 
available  in  the  Black  Sea  will  have  to  prevent  enemy  na- 
val action  against  the  operations  along  the  Black  Sea 
coast.   In  order  to  facilitate  bringing  up  Army 'supplies, 
a  number  of  naval  barges  are  to  be  transferred  through  the 
Kerch  Strait  to  the  Don  River  as  quickly  as  possible.   In 
addition,  the  Naval  High  Command  is  to  make  preparations 
to  operate  light  naval  forces  on  the  Caspian  Sea  in  order 
to  disrupt  enemy  sea  communications  (oil  transports  and 
the  communication  with  Anglo-American  forces  in  Iran)." 

Excerpts  from  the  Fuehrer  Directive  No.  45  are  sent  to  Naval  Group 
North,  as  follows: 

"The  Northern  Army  Group  is  to  prepare  for  the  capture  of   ; 
Leningrad  by  the  beginning  of  September  at  the  latest.  Code 
name  for  this  operation  is  "Feuerzauber".   For  this  purpose 
5  divisions  of  the  11th  Army,  heavy  artillery,  and  other 
troops  required  will  be  transferred  to  the  Group." 

Conforming  with  Directive  No.  45,  both  Naval  Groups  are  strongly  im- 
pressed with  the  necessity  of  keeping  this  information  absolutely  secret 

II.  For  his  personal  information,  the  German  General  at  Tokyo  is 
notified  of  the  conference  on  24  Jul.  between  the  Chief  of  the  Naval 
Staff  Operations  Division  and  the  Japanese  Military  Attache.   Copy  of 
the  Telegram  l/Skl  I  op  a  1839/42  Gkdos.  Chefs,  is  in  War  Diary,  Part 
C,  Vol.  XV. 

III.  It  was  established  some  tim4  ago  that  shipping  from  Vladivostok 

to  Kamchatka  Peninsula  has  increased  in  volume.   Since  it  is  practically 
impossible  to  transfer  cargo  from  anti-Axis  ships  to  Soviet  ships  at 
Petropavlovsk,  it  must  be  assumed  that  this  traffic  has  some  connection 
with  the  northern  shipping  route.   The  Naval  Attache  at  Tokyo  confirmed 
this  assumption  in  reply  to  an  inquiry  addressed  to  him.   He  reported 
on  16  Jul.  that  approximately  20  ships  coining  from  the  U.S.  arrived  at 
Kamchatka  in  groups  between  25  Jun.  and  15  Jul.;  the  Japanese  Navy 
assumes  that  they  are  destined  for  a  convoy  sailing  by  way  of  the 
northern  route.  This  tallies  with  statements  made  by  war  prisoners  and 
reported  on  6  Jul.  by  the  Commanding  Admiral,  Bal  tic  Cotmtries,  accord- 
ing to  which  a  convoy  was  to  sail  in  June  from  Vladivostok  for 
European  Russia  over  the  northern  route. 


-£52- 


CONFIDENTIAL 


28  Jul.  1942 


Group  North,  which  v/as  notified  of  these  facts  by  the  Naval  Staff,  re- 
quested information  whether  we  may  expect  that  such  convoys  will  be 
stopped  and  searched  by  Japan,  possibly  on  the  basis  of  suspected  con- 
traband shipments  to  China  or  Great  Britain,  in  which  case  routes  and 
timetables  should  be  ascertained.   An  inquiry  to  this  effect  by  the  Na-j- 
val  Staff  was  answered  by  the  Naval  Attache  with  the  information  that 
the  Japanese  Admiralty  does  not  intend  to  stop  the  convoys,  since  this 
min;ht  easily  lead  to  war  which  would  be  highly  undesirable  at  this 
moment  when  all  forces  are  otherwise  tied  up. 

The  Naval  Staff  sends  this  information  to  Group  North  on  28  Jul. 

IV.  In  the  course  of  discussions  between  the  Naval  Construction  Di- 
vision and  the  Naval  Staff,  Submarine  Division  about  intensification  of 
the  activity  of  operational  submarines,  the  actual  labor  requirements 
could  not  be  completely  clarified.   The  Naval  Staff  Submarine  Division 
tried  to  settle  the  question  by  writing  to  the  Chief,  Naval  Constructiqn 
Division  on  25  Jul.   For  copy  see  l/Skl  18314/42  Gkdos.  in  War  Diary, 
Part  C,  Vol.  IV. 

V.  Regarding  the  transfer  of  the  PT  boats  S  "151"  to  "158"  of  the  7th 
?T  Boat  Flotilla  to  the  Mediterranean,  the  Quartermaster  Division,  Na- 
val Staff  ordered  that  boats  S  "151"  to  "156"  should  start  from  Rotter- 
dam on  10  Sep.  and  the  remaining  two  should  follow  later.   The  route 

to  be  taken  is  identical  with  that  used  for  the  transfer  of  the  3rd  PT 
Boat   Flotilla. 

VI.  In  view  of  the  danger  to  which  the  submarines  are  exposed  in  the 
Bay  of  Biscay,  the  Chief,  Naval  Staff  Communications  Division  suggested 
to  the  Commanding  Admiral,  Submarines  that  he  assign  a  boat  equipped 
with  radar  interception  gear  to  the  Bay  of  Biscay  at  once;  this  sub- 
marine should  be  used  exclusively  for  this  task. 


Situation  28  Jul.  1942 

I.    War  in  Foreign  Waters 

1.   Enemy  Situation: 

North  Atlantic : 

According  to  intelligence  reports,  a  British  and  American  con- 
voy of  37  ships  with  25,000  troops  for  Egypt  sailed  from  Port  Rush  for 
Gibraltar  on  25  Jul.  and  will  probably  go  through  the  Mediterranean.  The 
convoy  has  a  heavy  escort  composed  of  1  aircraft  carrier,  1  battleship, 
and  several  heavy  cruisers. 

It  remains  to  be  seen  whether  the  British  will  actually 
dare  to  send  a  precious  convoy  like  this  one  through  the 
entire  Mediterranean. 


-»35j5- 


' 


CONFIDENTIAL 
28  Jul.  1942 

A  U.S.  troop  transport  sailed  from  the  U.S.A.  on  21  or  22  Jul.  and  is 
en  route  to  the  British  Isles. 

As  reported  by  the  Naval  Attache  at  Istanbul,  the  auxiliary  carrier 
ARCHER  has  been  assigned  to  duty  in  the  Atlantic  in  addition  to  the 
ARGUS . 

South  Atlantic ; 

On  board  the  captured  steamer  NANKIN  we  found,  a  report  from 
the  Wellington  communications  center  of  the  Allied  forces,  addressed 
to.  the  Commander  in  Chief,  Eastern  Fleet,  Colombo,  covering  the 
period  up  to  6  Apr.   According  to  this,  the  auxiliary  cruiser  BULOLO, 
operating  in  the  South  Atlantic,  is  to  be  converted  into  an  aircraft 
carrier. 

Indian  Ocean; 

According-  to  the  same  source,  the  following  auxiliary  cruisers 
are  operating  in  the  Indian  Ocean:  CANTON,  CHITHIRE,  CARTHAGE,  QUEEN 
OF  BERMUDA,  RANPURA,  and  WORCESTERSHIRE.   The  CARTHAGE  is  to  replace 
the  ASCAITIA  at  the  New  Zealand  station. 

It  is  reported  from  Istanbul  that  the  harbor  of  Mohammerah  has  been 
enlarged  and  refitted  as  part  of  the  Russian  air  program. 

Pacific  Ocean; 

According  to  the  above  official  Australian  source,  the 
following  vessels  are  engaged  in  pa  ;rol  duty  in  the  Australian  waters; 
ADELAIDE,  WESTRALIA,  KANIMBLA,  and  MANOORA.   Assigned  to  escort  duty 
between  New  Zealand  and  Australia  are  the  ACHILLES,  LEANDER,  and 
MONOWAI.   The  Anzac  squadron  which  includes  the  anti-aircraft  vessel 
AUSTRALIA  is  protecting  the  operation  of  U.S.  Task  Force  "13"  in  the 
New  Hebrides  area.   The  U.S.  cruisers  WHIPPLE  and  JOHN  D.  EDWARDS  are 
assigned  to  this  squadron.   In  addition,  U.S.  Task  Forces  "17",  "11", 
and  "8"  are  in  the  Australia-New  Zealand  area.   The  loss  of  the  naval 
base  in  the  Far  East  necessitates  the  use  of  depot  and  repair  ships. 
Since  the  lack  of  tonnage  does  not  permit  the  use  of  merchant  vessels 
for  these  purposes,  the  conversion  of  auxiliary  cruisers  was  ordered, 

probably  in  the  spring  of  1942.   The  AUSONIA,  ALAUNIA,  and  ASCANIA  are  /* 

being  converted  into  repair  ships,  the  MONT CLARE  into  a  submarine  de- 
pot ship.   The  CIRCASSIA,  CALIFORNIA,  and  DERBYSHIRE  are  once  more 
joining  the  merchant  fleet  and  will  be  replaced  by  new  ships.   In 
Canada,  the  PRINCE  DAVID,  PRINCE  HENRY,  and  PRINCE  ROBERT  are  in  ser- 
vice as  auxiliary  cruisers,  as  heretofore.   According  to  the  same 
source,  4  ocean-going  patrol  ships  have  been  reconverted  into  cargo 
vessels.   It  is  probable  that  the  PRETORIA  CASTLE  as  well  as  the 
DUNNOTTAR  CASTLE  will  be  converted  into  auxiliary  cruisers.   One 
auxiliary  cruiser  sank  at  an  unknown  port  due  to  a  depth  charge; 
sabotage  is  suspected. 

Up  to  6  Apr.  the  enemy  had  been  without  news  about  ship  "10"  for  a 
long  time.  It  was  assumed  that  she  might  be  in  the  vicinity  of  the 
Cape  of  Good  Hope  or  near  the  Brazilian  coast.   The  sinking  of  the 
Brazilian  steamer  CABEDELLO  and  of  the  U.S.  steamer  STEEL  AGE  was 
mentioned  in  connection  with  ship  "10". 

2.    Own  Situation: 

Nothing  to  report. 


-&L4)- 


CONFIDENTIAL 
28  Jul.  1942 

II.   Situation  West  Area 

1.  Enemy  Situation: 

According  to  Intelligence  reports  leaves  were  suspended  in  the 
British  Isles  as  of  17  Jul.   Norwegian  residents  of  England  doubt  the 
possibility  of  large-scale  landings  before  the  nights  grow,  longer  and  be 
11 eve-  that  the  tonnage  in  readiness  does  not  permit  larger  operations 
than  raids. 

At  noon  a  convoy  of  18  ships  with  5  escort  vessels  was  located  by  radio 
monitoring  800  miles  west  of  Brest  on  a  northerly  course. 

The  report  about  the  questioning  of  prisoners  from  the  motor  gunboat  "328** 
sunk  on  21  Jul.  contains  information,  about  the  activities  of  the  Dover 
Division  consisting  of  4  vessels;  this  formation  is  assigned  to  attack 
German  ships  on  patrol.   The  area  patrolled  ordinarily  extends  from 
Calais  to  Boulogne.   The  landmark  most  frequently  used  is  the  Gris  Nez 
beacon.   The  new  motor  gunboats  attain  a  speed  of  30  to  32  knots.   Their 
armament  consists  of  1  pom-pom  gun  at  the  bow,  1  twin  machine-gun  at 
starboard  and  1  at  port,  aft  of  the  bridge,  1  Rolls  gun  at  the  stern,  2 
single-barreled  Lewis  machine-guns  and  2  to  4  depth  charges.   Their  com- 
plement consists  of  3  officers,  3  or  4  stokers,  5  gunners,  1  radio 
operator,  1  signalman,  4  sailors  and  1  cook.   Apart  from  Dover,  they  are 
based  at  Newhaven,  Gorport  (Portsmouth),  Yarmouth,  and  Harwich.   Lowest- 
oft is  used  mostly  by  mine  sweepers. 

2.  Own  Situation; 

Channel  Coast: 

The  patrol  boats  VP  "202"  and  "203"  were  engaged  between  0225 
and  0240  by  2  enemy  destroyers  and  2  motor  gunboats  off  Cherbourg,  Patrol 
boat  VP  "202"  was  sunk;  the  captain  survived,  25  men  are  missing.  VP  "20^" 
lost  the  entire  bridge  personnel,  the  captain  and  the  first  watch  offi- 
cer included,  by  the  first  enemy  salvo.   The  burning  boat  was  brought  to 
port  but  cannot  be  repaired. 

On  account  of  the  moon-lit  nights,  our  PT  boats  did  not  operate. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea; 

Enemy  Situation; 

Air  reconnaissance  spotted  9  PT  boats  in  the  evening  on  an 
easterly  course  east  of  Lowestoft.  Convoy  operations  without  special  in- 
cident.  1  submarine  was  sighted  on  a  southerly  course  150  miles  north  of 
the  Faroe  Islands. 

Own  Situation: 

Another  mine  was  swept  off  Egmond-aan-Zee,  proving  that  this 
area  which  had  been  spared  up  to  now  is  being  mined  intentionally. 
Another  ground  mine  was  swept  at  the  Borkum  Riffgrund. 

Mine-sweeping  operations  had  to  be  curtailed  due  to  weather  conditions. 


-$5> 


CONFIDENTIAL1 
28  Jul.  1942 

In  the  afternoon  enemy  planes  dropped  bombs  on  the  Dutch  coast  and, the 
north  G-erman  coastal  area  as  far  as  Luebeck.   Our  pursuit  planes  en- 
gaged the  attackers  without  observed  results. 

Strong  enemy  air  forces  penetrated  In  the  evening  into  the  northwest 
German  coastal  area.   The  attack  concentrated  on  Hamburg. 

Naval  Station,  North  Sea  reports  that  the  Commander  in  Chief,  West  re- 
serves the  right  to  decide  about  the  destruction  of  vital  harbors  and. 
submarine  bases.   (See  Telegram  1740.) 

2.  Norway : 

Enemy  planes  were  active  on  the  north  and  west  coasts  and  in 
the  Oslo  area.   At  0130  2  enemy  flights  made  a  futile  torpedo  attack  on 
the  ships  with  LODY  and  RIEDEL  in  tow  off  Nyhelle.   The  ships  put  into 
Kristiansand  South  temporarily  and  then  continued  southward. 

3.  Arctic  Ocean; 

Enemy  Situation; 

According  to  intelligence  reports,  a  convoy  which  had  already 
reached  Greenland  with  troops  for  Murmansk  turned  back  to  Northern  Ire- 
land where  the  troops  were  disembarked,  following  the  annihilation  of 
convoy  PQ  17. 

This  recurring  report  about  troop  shipments  to  Murmansk, 
the  equipment  of  which  had  been  transported  on  convoy  PQ 
17,  does  not  sound  very  credible.   Other  intelligence 
reports,  however,  may  be  very  much  to  the  point;  accord- 
ing to  them  the  Norwegian  troops  stationed  in  Scotland 
have  recently  been  concentrated  in  the  Wick  area  and 
Mountbatten  is  preparing  for  a  number  of  small-scale 
raids  against  the  Norwegian  coast. 

Radio  monitoring  established  that  up  to  5  ships  were  located  between  the 
southern  entrance  and  the  middle  of  Gorlo  Strait  in  the  evening  and  dur- 
ing the  night  of  27  Jul.  Increasing  radio  communication  was  observed  in 
the  Archangel  area. 

Own  Situation; 

In  connection  with  the  operations  of  submarine  U  "601"  off  the 
west  coast  of  Novaya  Zemlya,  Group  North  submits  to  the  Admiral,  Arctic 
Ocean  a  compilation  of  the  anti-aircraft  artillery  emplacements,  war- 
ships and  merchant  vessels  in  the  waters  of  Matochkin  Strait  and  Moller 
Bay,  as  reported  since  17  Jul.  (See  Telegram  1546. ) 

Submarine  U  "601"  reported  destroying  a  2-engine  Consolidated  plane  on 
27  Jul.  and  destroying  the  Karmakuly  radio  station  on  the  same  day, 
probably  without  the  enemy's  being  able  to  send  a  message  first. 

Submarine  U  "209"  rescued  8  survivors  from  the  sunken  steamer  H0N0MU  of 
convoy  PQ  17. 

8  submarines,  forming  the  "Nebelkoenig"  group,  will  have  assumed  posi- 
tions between  Iceland  and  Jan  Mayen  by  about  30  Jul. 


-ioi- 


CONFIDENTIAL 
28  Jul.  1942 

IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation: 

A  submarine  was  sighted  again  off  Windau. 

2.  Own  Situation: 

Nothing  to  report  from  the  area  of  the  Commanding  Admiral,  De- 
fenses, Baltic  Sea.   The  order  issued  by  the  Commander,  Mine  Sweepers, 
Baltic  Sea,  according  to  which  merchant  vessels  between  Danzig  Bay  and 
point  "Braun  60"  were  allowed  to  proceed  only  under  escort  v/as  cancelled 
as  of  25  Jul.   Naval  Station,  Baltic  Sea  wishes  to  know  whether  this 
order,  issued  without  notification  of  the  Naval  Station,  is  effective. 
(See  Telegram  1712.) 

Anti-submarine  patrols,  mine-sweeping  and  convoy  activities  in  the  area 
of  the  Commander,  Mine  Sweepers,  Baltic  Sea  according  to  plan. 


V.   Merchant  Shipping 

Brief  report  No.  22/42  of  the  Naval  Intelligence  Division,  Foreign 
Merchant  Marine  Branch  deals  with  the  following:   Ore  shipments  from 
Lulea  up  to  4  Jul.  1942,  curtailment  of  the  construction  of  7,000  GRT 
Liberty  ships  with  a  speed  of  11  knots  in  favor  of  faster  2,000  to  4,000 
GRT  freighters,  establishment  of  a  British  shipping  office  at  Archangel, 
curtailment  of  British  exports  to  South  Africa,  construction  of  concrete 
vessels  in  the  U.S.A.,  etc. 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

According  to  an  intelligence  report  from  Portugal,  corvette 
M59n  and  5  steamers  identified  by  name,  totalling  approximately  12,000 
GRT,  which  belonged  to  the  convoy  sailing  from  Gibraltar  to  the  British 
Isles  on  8  Jun.,  were  sunk. 

Radio  monitoring  revealed  that  the  aircraft  carrier  ARGUS  will  sail  from 
Greenock  on  the  morning  of  29  Jul. 

1  British  ship  was  observed  360  miles  southwest  of  Vigo  and  another  one 
in  the  vicinity  of  the  Azores.   A  submarine  warning  signal  v/as  inter- 
cepted 180  miles  south  of  Freetown. 

A  number  of  messages  reporting  the  sighting  of  submarines  were  inter- 
cepted from  the  American  East  Coast  and  the  West  Indies. 

2.  Own  Situation: 

Submarine  U  "IBS"  reported  infrequent  air  and  sea  patrols  in 
quadrants  AP  48,  AE  65,  and  AL  32  in  the  Iceland  Passage.  Submarine  U 
"171"  very  probably  sank  a  4,500  GRT  steamer  in  the  Gulf  of  Mexico. 

Submarine  U  "564"  was  instructed  to  report  whether  the  2  battleships 
sighted  were  positively  identified  -as-of-fehe  RAMILLIES— e-let&s-  or  whether 

^5t7- 


CONFIDENTIAL 
28  Jul.  1942 

they  might  have  been  the  NELSON  aid  RODNEY. 

The  'Greenland'1  circuit  will  henceforth  be  known  as  "America"  circuit, 
effective  31  Jul.  at  1000. 

Submarine  U  "157"  is  considered  missing  as  of  16  Jun.,  U  "701"  as  of  11 
Jul.,  and  U  "751"  as  of  18  Jul. 

Additional  reports  in  Supplement  to  Submarine  Situation,  War  Diary, 
Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity: 

For  details  referring  to  the  German  air  raid  on  Birmingham 
during  the  night  of  28  Jul.  see  daily  situation  report.  Interesting  is 
the  low  altitude  of  900  m  from  which  this  attack  was  made. 

East  of  the  Faroe  Islands  one  patrol  vessel  was  sunk  during  the  day  and 

1  trawler  strafed. 

2  patrol  boats  were  damaged  off  Eastbourne.   During  the  night  of  28  Jul 
11  planes  flying  singly  executed  nuisance  raids  on  armament  plants  in 
southern  and  central  England. 

During  the  same  night  strong  formations  of  eremy  planes  raided  the 
northwest  German  coastal  area,  concentrating  their  attack  on  Hamburg. 
Preliminary  reports  indicate  16  enemy  planes  shot  down  by  anti-aircraft 
artillery  and  20  by  fighter  planes, 

2.  Mediterranean  Theater: 

Raids  on  Malta  continued.   The  superiority  of  the  enemy 
fighters  makes  itself  felt  very  badly  in  daytime.   3  Ju  88' s  were  lost 
on  28  Jul.   The  forces  of  the  X  Air  Corps  attacked  the  roadstead  of 
Suez  in  2  waves.   1000  kg  BM  bombs  were  dropped  between  the  ships  with- 
out scoring  a  direct  hit. 

In  support  of  the  Panzer  Army,  North  Africa  our  Air  Force  raided  enemy 
tanks  concentrated  for  an  attack. 

3.  Eastern  Front: 

1362  sorties  were  flown  in  support  of  the  advancing  armies  and 
40  enemy  planes  shot  down. 

Special  Item; 

In  complying  with  a  suggestion  of  the  Naval  Staff,  the  Commander  in 
Chief,  Air  Force  instructed  the  3rd  Air  Force  to  extend  reconnaissance 
flights  to  the  harbors  of  the  Bristol  Channel,  the  Irish  Sea  and  the 
North  Channel.   See  Telegram  1135. 


-$53- 


CONFIDENTIAL 
28  Jul.  1942 

VIII.  V.'arfare  in  the  Mediterranean  and  the  Black  Sea 

1.    Enemy  Situation,  Mediterranean: 

In  the  forenoon  the  CHARYBDIS  left  dock  at  Gibraltar.   The 
French  torpedo  boat  FOUGUEUX  picked  up  the  steamer  MITIDJA  which  had 
been  captured  by  a  British  submarine.   The  latter  submerged  when  the 
torpedo  bbat  came  in  sight.   A  destroyer  arriving  subsequently  from 
Gibraltar  did  not  interfere.   After  dark  the  MITIDJA  continued  on  her 
run  to  Marseille.   The  Italian  reported  sighting  or  locating  submarines 
west  of  Navarino,  northeast  of  Brindisi,  off  Otranto  and  off  Trieste. 

Only  moderate  convoy  traffic  was  observed  in  the  eastern  Mediterranean 
off  the  Palestine  coast. 

2.  Own  Situation,  Mediterranean: 

During  an  enemy  air  raid  on  Tobruk  in  the  night  of  26  Jul., 
1  Italian  motor  mine  sv/eeper  was  sunk  and  1  Italian  'subchaser  damaged. 
During  the  night  of  27  Jul.  another  air  raid  resulted  in  the  sinking  of 
motor  ship  GABRIELA  v/ith  110  tons  of  cargo  assigned  to  the  air  forces. 
One  barge  was  damaged  by  bomb  fragments. 

The  6th  Motor  Mine  Sweeper  Flotilla  is  scheduled  to  transfer  to  Tobruk 
on  1  Aug. 

3 .  Transport  of  Supplies  to  North  Africa  : 

The  motor  ship  GIULIA  arrived  at  Tripoli  on  27  Jul.   5  German 
naval  barges  en  route  from  Palermo  to  Tripoli  put  into  Lampedusa  for 
the  day.   The  motor  ship  M0NVTSO,  escorted  by  2  destroyers,  sailed  fror, 
Brindisi  for  Benghazi  on  27  Jul.   At  noon  of  28  Jul.  she  was  attacked 
by  enemy  planes  15  miles  south  of  Navarino;  damaged  by  a  bomb  hit,  she 
was  towed  into  Navarino. 

On  29  Jul.  the  LERICI  convoy  will  sail  under  escort  of  2  torpedo  boats 
from  Benghazi  to  Brindisi  with  3,500  war  prisoners. 

8  Italian  naval  barges  are  scheduled  to  sail  for  Tobruk  at  midnight  of 
28  Jul. 

1  auxiliary  sailing  vessel  and  2  naval  barges  engaged  in  coastal  supply 
shipping  arrived  at  Tobruk  on  27  Jul.  and  3  naval  barges  departed  from 
there.   Steamer  SICILIA  sailed  from  Benghazi  to  Tobruk  on  27  Jul.  and 
is  expected  to  arrive  in  the  morning  of  29  Jul.   Steamer  OSTIA  has  beer 
en  route  to  Tobruk  from  Marsa  Katruh  since  27  Jul.   3  naval  barges 
arrived  at  Marsa  Matruh. 

3  naval  barges  proceeding  from  Solium  to  Marsa  Matruh  have  not  been 
seen  since  noon  of  28  Jul.   2  PT  boats  were  dispatched  in  the  evening 
to  search  for  them. 

1,455  tons  were  unloaded  at  Tobruk  on  27  Jul.  and  1,682  tons  on  28  Jul.. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

4  German  and  8  Italian  naval  barges  left  Piraeus  for  Suda  on 
28  Jul. 


4^9- 


CONFIDENTIAL 
28  Jul.  1942 

Black  Sea: 
c bhing  to  report. 
Special  It ens : 

a.  Naval  Group  South  reports  that  the  larding  barges  assigned  ; 
supply  service  in  the  Sea  of  Azov  will  be  able  to  attempt  the  bre 
through  of  the  Kerch  Strait  early  in  August.   The  foiloY/ing  steps 

be  taken  to  ensure  their  slipping  through  undetected: 

Enemy  air  reconnaissance  must  be  kept  off  during  the  daytime  voyage  r 
Feodosiya  till  nightfall. 

Diversionary  operations  will  be  undertaken  on  Taman  Peninsula  and  en- 
gine noises  drowned  out  by  planes  operating  over  Taman  Peninsula  dui :  - 
the  night. 

ike-laying  planes  will  operate  over  the  northern  part  of  the  strait , 
re  the  force  will  be  most  exposed  to  the  enemy's  artillery  due  to 
navigational  difficulties  and  the  fact  that  the  column  is  about  2,000 
m.  long. 

Our  guns  v/ill  engage  the  enemy's  coastal  batteries  and  will  use  smoke 
shells  in  the  northern  part  of  the  strait. 

It  v/ill  be  attempted  -to  slip  about  12  naval  barges  with  adequate  escort 
forces  through  the  strait  during  the  first  breakthrough.  The  Group  re- 
quests that-  the  Armed  Forces  High  Command  be  asked  for  adequate  assist- 
ance by  the  Air  Force;  if  this  cannot  be  provided,  the  operation  v/ill 
have  to  be  postponed  in  case  the  enemy  situation  remains  as  it  is.  (See 
Telegram  1250.)  This  matter  will  be  taken  up  directly  by  the  Naval 
Liaison  Officer  to  the  Army  High  Command, 

b.  Group  South  reports  about  the  progress  of  the  laying  of  tele- 
graphic lines,  between  Bucharest  and  NIkolayev  and  points  out  that  the 
entire  staff  of  the  Commanding  Admiral,  Black  Sea  cannot  be  transferred 
to  Nikolayex-  until  the  connections  have  been  tried  out  and  proved  satis- 
factory.  See  Telegram  1340. 

c.  The  Naval  staff  asks  the  Naval  Attache  at  Rome  and  the  Italian 
Admiral  with  the  German  Naval  Staff  to  find  out  from  the  Italian  Naval 
High  Command  whether  the  Italian  Navy  agrees  to  the  transfer  of  the 
Italian  naval  forces  now  engaged  in  the  Black  Sea  to  the  Caspian  Sea  in* 
eluding  the  small-type  submarines,  if  the  situation  should  so  require. 
See  l/Skl  18493/42  Gkdos .  In  War  Diary,  Part  C,  Vol.  XlVa. 


IX.   Situation  East  Asia 

A  belated  report  of  26  Jul.  states  that  a  Japanese  submarine  shelled  a 
British  steamer  190  miles  south  of  Sydney. 

A  Portuguese  troop  transport  was  stopped  by  a  Japanese  submarine  In  the 
Mozambique  Strait. 

•euter  and  the  Vichy  Telegraph  Service  report  about  fighting  in  south 
China  between  Japanese  and  Chinese  forces,  in  which  the  latter  scored 
some  success. 


■46  d>- 


CONFIDENTIAL 
28  Jul.  1942 

X.   Army  Situation 

1.  Russian  Front : 

Army  Group  A; 

The  enemy  is  withdrawing  from  Kagalr.itsk  in  a  southerly  dir- 
ection.  German  forces  advancing  from  the  Rostov  area  reached  the 
Kagalnik  River  on  a  broad  front  and  established  several  bridgeheads 
against  weak  enemy  resistance.    Units  advancing  southward  from  the 
Melchovsk  area  crossed  the  Manych  River  at  several  points  and  are  clos- 
ing in  on  Protsikov.   Tank  units  advancing  from  the  Orlovka  bridge- 
head threw  the  enemy  back  about  30  km  north-northwest  of  Prolefarskaya. 
Enemy  attacks  in  the  I.'arinovsk-Tsymliansk  area  were  repulsed. 

Army  Group  B; 

Minor  enemy  attacks  west  and  northwest  of  Kalach  were  re- 
pulsed.  A  further  advance  depends  on  the  receipt  of  fuel  and  ammuni- 
tion.  The  enemy  is  reinforcing  north  of  Voronezh  and  southeast  of 
Yelets.   Attacks  at  both  places  were  repulsed. 

Central  Army  Group: 

East  of  Velizh  we  advanced  our  positions  to  the  northeast. 

Northern  Army  Group: 

A  strong  attack  southwest  of  Leningrad  was  repulsed,  the 
enemy  suffering  heavy  losses. 

2.  Finnish  Front: 

Local  enemy  thrusts  on  the  isthmus  were  repulsed.   On  the 
northeastern  sector  enemy  partisan  activities  in  the  area  back  of 
Kestenga  and  Alakurtti  were  suppressed;  this  required  the  use  of  con- 
siderable forces. 

5.   North  Africa: 

Reconnaissance  and  artillery  activity  along  the  entire  front. 


-bell- 


< 


CONFIDEIITIAL 
29  Jul..  1942 

Items  of  Political  Importance 

The  Problem  of  a  Second  European  Front; 

The  Swedish  Foreign  Office  does  not  expect  any  operation  against  northern 
Norway  or  Finland  during  the  northern  summer.   This  opinion  y/ould  have 
to  be  revised  only  if  Russia  should  force  the  Allies  to  keep  the  Arctic 
supply  rou\e  open  by  all  means. 

Vernon  Bartlett  declared  Great  Britain's  position  desperate.   Should  an 
invasion  of  Europe  prove  impossible,  the  nation  would  have  to  suffer  a 
long-drawn-out  war  of  attrition. 

In  this  connection  it  is  interesting  to  see  the  determined  attitude  of 
British  left-wingers  in  favor  of  vigorous  aid  to  Russia;  these  circles 
threaten  to  force  the  establishment  of  a  second  front  by  means  of 
strikes  and  they  intimate  that  Churchill's  capitalistic  government  is 
purposely  refraining  from  an  offensive  in  v/estern ^Europe  in  order  to 
cause  the  collapse  of  the  Soviet  regime. 

Discussions  in  the  press  reflect  the  wide  range  of  arguments  for  and 
against  the  establishment  of  a  second  front;  however,  the  dominating 
voices  are  those  of  the  influential  British  and  American  papers  which 
play  up  the  arguments  against  the  plan.   Great  importance  is  given  to 
the  conditions  supposedly  necessary  in  order  to  fulfill  the  pledge  givaf 
to  Molotov,  namely: 

a.  The  availability  of  sufficient  shipping  space. 

b.  The  weakening  of  Germany  by  mass  air  raids. 

c.  The  establishment  of  Allied  air  superiority. 

d.  The  certainty  that  the  operations  on  the  second  front  would 
not  be  affected  by  the  tie-up  of  forces  at  other  war  theaters. 

The  risk  involved  in  an  operation  not  adequately  prepared  is  also  pre- 
sented as  an  excuse. 

There  can  be  no  doubt  that  the  opposition  will  gladly  take  advantage  of 

the  display  of  power  which  Germany  is  purposely  making  in  the  west  area  (m 

as  a  new  argument  against  a  second  front. 

For  a  more  extensive  account  of  these  typically  British  arguments  see 
Political  Review  No.  175,  paragraph  1. 

The  Shipping  Situation  of  the  Enemy  Powers: 

Fortune  magazine,  published  in  the  U.S.A.,  believes  that  it  is  no  longer 
possible  to  solve  the  problem  of  sufficient  shipping  space.  Y/ithout 
sufficient  ships,  however,  American  war  production  is  an  effort  made  in 
a  vacuum.   Twice  as  many  ships  are  needed  than  are  available.   Even  if 
demands  are  cut  to  the  barest  minimum,  20/b  more  cargo  space  is  needed 
than  can  possibly  be  made  available.   Even  the  shipbuilding  program 
cannot  change  the  situation  appreciably.   In  April  alone  4  times  as  many 
ships  were  sunk  than  were  built. 

Great  Britain: 

The  Minister  of  Agriculture  addressed  another  appeal  to  the  farmers  for 
increased  output  of  agricultural  products  in  view  of  the  shipping  situa+ 
v  i  on . 

k2$2- 


CONFIDENTIAL 


29  Jul.  1942 


Indian 

Political. Review  No.  175,  paragraph  3  contains  details  of  Cripps' 
radio  address  to  the  U.S.A.  about  the  necessity  of  preserving  India  as 
a  base  for  the  war  with  Japan  and  the  reply  of  the  President  of  the 
Indian  Congress. 

Chiler 

The  Chilean  Ambassador,  upon  his  return  to  Washington,  declared  that 
Chile  is  sincerely  cooperating  with  the  U.S.A.  in  the  Pan-American 
Defense  program.   Chile  will  honor  her  obligations  undertaken  at  the 
Havana  Conference  to  the  fullest  extent.   Chile  is  "non-belligerent" 
but  not  neutral. 


The  conference  on  the  situation  with  the  Chief,  Naval  Staff  does  not 
take  place  due  to  his  absence  from  Berlin  on  an  inspection  trip  to 
Muerwik .  . 


Special  Items 

I.  In  view  of  the  maneuvers  which  will  probably  be  held  in  September 
after  reconditioning  of  the  SCHARNHORST  and  the  NUERNBERG  and  their 
subsequent  transfer  to  Norway,  the  Fleet  Commander  intends  to  go  to 
Germany  for  August;  there  he  will  look  after  the  activities  of  the 
training  unit  and  the  PT  boats  and  then  take  a  short  leave. 

The  Commander  in  Chief,  Navy  orders  that,  in  view  of  the  relief  of 
Admiral  Schmundt,  the  Fleet  Commander  is  to  arrange  that  the  duties  of 
the  Admiral,  Arctic  Ocean  be  taken  over  either  by  himself  or  by'the 
Commanding  Admiral,  Cruisers  until  the  newly-appointed  Admiral,  Arctic 
Ocean  is  able  to  assume  his  post.   Should  the  Commanding  Admiral, 
Cruisers  be  designated  as  substitute,  the  Fleet  Commander  would  have  to 
embark  on  the  TIRPITZ. 

II.  The  Naval  Ordnance  Division,  War  Economy  Branch  in  consultation 
with  the  Chiefs,  Naval  Ordnance  Division,  Naval  Construction  Division, 
General  Administration  Bureau,  Naval  Quartermaster  Division  and  Naval 
Submarine  Division  prepared  the  materials  for  a  report  to  the  Fuehrer 
by  the  Permanent  Representative  of  the  Commander  in  Chief,  Navy  at  the 
Fuehrer  Headquarters  about  the  special  measures  to  provide  labor  for  the 
immediately  needed  warship  repairs,  conversions  and  new  constructions. 

For  copy  see  1/Skl  18401/42  Gkdos.  in  War  Diary,  Part  B,  Vol.  V. 

III.  The  recurring  enemy  discussions  during  the  last  months  about  the 
use  of  poison  gas   require  a  check  of  our  preparations  for  gas  pro- 
tection and  anti-gas  defenses. 

The  Quartermaster  Division,  Naval  Staff  therefore  issued  a  directive  to 
all  branches  of  the  Navy  and  pointed  to  the  possibility   that  the  enemy 
may  initiate  gas  warfare  at  a  moment  considered  propitious  when  he  feels 
that  his  military  strength  is  exhausted. 


-06$- 


CONFIDENTIAL 
29  Jule  1942 

IV.   For  the  directive  to  restrict  the  use  of  planes  for  courier  pu 
poses  on  account;  of  the  .fuel  scarcity  see  l/Skl  I  Lc  25400/42  geh.  ii 
War  Diary,  Part  B,  Vol.  V. 


Situation  29  Jul.  1942 

I.    War  in  Foreign  Waters 

1.  Enemy  Situation: 

Indian  Ocean; 

The  British  steamer  BLACKHEATH  sent  a  QQQ  signal  from   Le 
Gulf  of  Bengal  (80  miles  east  of  Masalapatam)  reporting  an  attacl  , 

Pacific  Ocean: 

An  American  tanker  passed  Punt a  Arenas  on  23  Jul.  an  I  a 
British  tanker  on  24  Jul.,  both  in  the  direction  of  the  Pacific. 

2.  Own  Situation: 

For  additional  instructions  to  ship  "28"  regarding  ' 
tured  DS  code  of  which  the  Naval  Staff  intends  to  have  copies  ; 
up  from  the  SCHLIEMANN  by  several  of  the  next  blockade  runners  sail- 
ing from  Japan    see  Radiograms  0153  and  0401. 

Ships  "28"  and  "23"  are  instructed  by  Radiogram  2012  that  no 
operations  are  planned  for  the  Gulf  of  Guinea  at  the  time  being,; 

Ship  "23"  is  asked  whether  the  order  for  2  ship-borne  planes  of    c 
Arado  196  type  stands  de.spite  the  fact  that  such  a  plane  weighs  3, 
tons,  while  the  ship's  derrick  can  lift  only  2  tons.   See  Radio  . 
1658. 

The  Naval  -Staff  intends  to  keep  ship  "10"  in  the  zone  of  operations. 
The  Naval  Attache  at  Tokyo  is  instructed  to  ship  the  equipment  re- 
quired by  ship  "10"  and  also  a  prize  crew  on  the  TANNENFELS ,  if  st 
possible  without  unduly  delaying  the  TANNENFELS.   (See  Radiogram  ll 

Information  about  the  enemy  situation  to  all  ships  in  foreign  waters 
Is  sent  by  Radiograms  0748  (concerning  secret  call  signal  BNDT 
captured  HERB0RG),  0502,  0615,  1356,  and  2241. 


II.   Situation  West  Area 

1.   Enemy  Situation: 

The  British  steamer  LIVLAND  (2,254  GRT )  broke  down  on  28  Jul. 
at  2300  at  buoy  54D;  2  ships  were  ordered  to  her  assistance.  Reports  cf 
2  more  emergencies  at  sea  were  intercepted  on  28  Jul.  at  1533  and  on 
29  Jul.  at  0635. 


-fe6]4- 


CONFIDENTIAL 


29    Jul.    19  42 


Reconnaissance  planes  sighted  approximately  35  steamers  on  a  westerly 
course  south  of  Portland  and  3  ships,  probably  cruisers,  10  to  15 
steamers,  several  patrol  boats  and  mine  sweepers  (altogether  about  35 
to  40  vessels)  on  an  easterly  course  off  Shoreham. 

2.    Own  Situation: 

Atlantic  Coast; 

2  ground  mines  were  swept  off  Lorient  by  mine-exploding 
vessels,  a  third  one  by  a  mine-sweeping  plane  and  still  another  one  in 
the  Gironde  estuary  by  mine  sweepersc 

Channel  Coast : 

Mine  sweepers  cut  2  Mark  III  mines  off  Cape  Ferret  on  route 
"Herz". 

The  4th  Motor  Mine  Sweeper  Flotilla  was  strafed  and  attacked  with 
fragmentation  bombs  by  enemy  planes  at  0125  west  of  Calais;  motor  mine 
sweeper  R  "50"  suffered  slight  damage. 

During  the  night  of  28  Jul.  enemy  fighter  planes  made  a  futile  attack 
on  the  36th  Mine  Sweeper  Flotilla. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.   North  Sea: 

Enemy  Situation; 

Little  air  activity  over  the  northern  North  Sea.   15  steamer? 
escorted  by  7  patrol  vessels  on  a  northerly  course  were  observed  off 
the  Humber  mouth.   6  mine  sweepers  proceeding  on  a  southerly  course 
were  sighted  off  Orfordness. 

Own  Situation: 

A  third  mine  was  swept  off  Egmond-aan-Zee  by  the  17th  Mine 
Sweeper  Flotilla.   4  more  mines  were  swept  by  mine-exploding  vessels 
and  another  one  in  the  area  of  Terschelling  and  Vlieland  by  the  Harbor 
Patrol  Flotilla.   3  vessels  of  the  13th  Patrol  Boat  Flotilla  had  an 
engagement  with  10  enemy  motor  gunboats  on  route  "Rot"  between  points 
"8"  and  "Herz  202"  during  the  night  of  28  Jul.;  4  motor  gunboats  were 
sunk  and  a  fifth  one  set  afire. 

During  the  same  night  naval  anti-aircraft  artillery  in  t he  coastal  area 
of  the  German  Bight  accounted  for  10  and  on  the  Dutch  coast  for  2  enemy 
planes  shot  down.  A  low-flying  plane  was  shot  down  over  the  Elbe  Riveif 
by  a  mine  sweeper. 

The  raid  on  Hamburg  caused  no  damage  to  the  shipyards. 

Mine-sweeping,  convoy,  and  patrol  activities  proceeded  according  to 
plan  without  major  incident. 


-*6d- 


CONFIDENTIAL 

29  Jul.  1942 

2.   Norway  and  Arctic  Ocean: 

Enemy  Situation: 

Radio  monitoring  revealed  that  British  radio  messages  are 
being  transmitted  since  27  Jul.  by  the  staff  of  the  Russian  Arctic 
Fleet  to  unidentified  Russian  commands. 

Own  Situation: 

Enemy  air  activity  on  27,  28,  and  29  Jul.  ranged  over  the 
Arctic  coast  and  the  northern  and  western  coasts.   Raids  by  2  Russian 
planes  off  Havningberg  caused  minor  damage  on  2  German  motor  mine 
sweepers.   Army  Coastal  Battery  3/288'  in  Homsdal  Fjord  will  be  out 
of  commission  for  a  few  days. 

Groxip  North  has  no  objection  to  the  withdrawal  of  the  6th  PT  Boat 
Flotilla,  since  its  usefulness  for  offensive  missions  is  limited  and 
an  enemy  landing  is  no  longer  expected.   The  Group  requests,  however, 
that  the  return  of  the  flotilla  be  considered  if  operation  "Wiesen- 
grund"  is  carried  out;  that  the  tender  not  be  withdrawn  prior  to  the 
arrival  in  the  Arctic  area  of  another  radio  transmitter  station;  and 
finally  that  the  6th  PT  Boat  Flotilla  be  assigned  to  the  Gulf  of  Fin- 
land if  the  situation  there  should  further  deteriorate. 

The  Naval  Staff  decided  on  28  Jul.  to  transfer  the  6th  PT  Boat  Flotilli-i 
from  the  Norwegian  area  to  Germany,  and  will  make  a  decision  concern- 
ing its  next  assignment  in  due  course.   It  is  planned  to  assign  the 
flotilla  to  the  west  area.   Its  tender  will  remain  at  Kirkenes  until  a 
replacement  for  the  radio  station  is  available  there.   The  Naval  Staff 
Quartermaster  Division  and  the  Naval  Communications  Division  are  in- 
vestigating whether  the  completion  of  the  land  radio  station  can  be 
speeded  or  whether  the  assignment  of  another  vessel  for  this  purpose  ia 
possible* 

Nothing  to  report  from  the  Arctic  Ocean. 


IV.   Skajrerrak.  Baltic  Sea  Entrances.  Baltic  Sea 

1.  Enemy  Situation: 
Nothing  to  report. 

2.  Own  Situation: 

The  RIEDEL  and  LODY  have  reached  the  Baltic  Sea  in  tow. 

For  report  about  the  bomb  damage  in  Schleswig-Holstein  during  the  night 
of  28  Jul.  see  Telegram  2325. 

Convoy  and  transport  services  according  to  plan. 

Nothing  to  report  from  the  area  of  the  Commander,  Mine  Sweepers,  Baltid 
Sea. 

1  "¥''iwi»' 


436l6- 


CONFIDENTIAL 
29  Jul.  1942 

V.    Merchant  Shipping 

On  25  Jul.  the  Naval  Staff  called  the  attention  of  the  Reich 
Commissioner  of  Maritime  Shipping  to  the  fact  that  the  relief  granted 
to  German  shipping  by  revoking  the  convoy  regulations  and  the  change 
of  regulations  for  sailing  within  Swedish  territorial  waters  is  of 
little  practical  value,  because  Swedish  ore  shipments  are  carried  by 
Swedish  vessels  for  the  most  part. 

It  is  thus  left  to  the  discretion  of  the  Reich  Commissioner  of  Mari- 
time Shipping  whether  Sweden  should  be  asked  to  take  the  same  steps. 


VI.   Submarine  Warfare 

■■■■-■■'        ■ ■  i    ■      '    ■■-        ■  '  ■■ 

1.  Enemy  Situation: 

Lively  reconnaissance  activity  in  the  rendezvous  area.   A 
plane  circling  over  a  submerged  submarine  was  located  at  1725  in  a 
position  62°  42«  N  (the  longitude  was  not  identified).   The  British 
subchaser  IMPERIALIST  was  located  at  0850  40  miles  west  of  Cape  St. 
Vincent,  another  British  ship  150  miles  north  of  the  Azores  at  0630. 
The  British  steamer  SUFFOLK  (11,145  GRT)  flashed  a  QQQ,  signal  at  2212 
but  revoked  it  2  minutes  later. 

Southwest  of  the  Bermuda  Islands  a  message  of  a  submarine  attack  was 
broadcast.   Trinidad  was  notified  on  27  Jul-,  that  the  U.S.  tanker  WEST 
CELINA  (6,187  GRT)  was  doing  better  than  7.5  knots  and  was  returning 
to  Trinidad  unescorted.   In  the  same  message  the  British  steamer  DAL- 
HANNA  (5,571  GRT)  was  mentioned  in  connection  with  convoy  PAB  IX. 

2.  Own  Situation: 

At  2317  submarine  U  "210"  established ' contact  with  a  convoy 
of  15  steamers,  sailing  on  a  westerly  course,  in  quadrant  AK  59.   5 
more  submarines  are  operating  against  this  convoy. 

Group  "Wolf*  is  ordered  to  replenish  supplies  and  to  continue  opera- 
tions against  convoys  from  quadrant  BC  34. 

Submarine  U  "132"  intercepted  a  convoy  of  25  vessels  off  the  American 
East  Coast  in  quadrant  BB  87,  sailing  in  a  general  westerly  direction, 
and  with  her  last  2  torpedoes  scored  2  hits  on  an  8,000  GRT  steamer. 

Submarine  U  "89"  sank  a  Canadian  trawxer  in  the  West  Indies  on  25  Jul. 
On  26  Jul.,  while  attacking  another  trawler,  she  was  driven  off  by  an 
intervening  plane;  it  was  established  beyond  doubt  that  the  submarine 
had  been  detected  by  underwater  detection. 

On  22  Jul.  submarine  U  "505"  sank  the  Colombian  sailing  vessel  ROMA 
which  did  not  heed  a  warning  shot. 

The  Commanding  Admiral,  Submarines  correctly  remarks  that  the  gain  fro; 
this  sinking  is  out  of  proportion  with  its  potential  political  implica 
tions. 

Submarine  U  "160"  sank  a  12,000  GRT  steamer  in  the  Orinoco  estuary. 

No  successes  were  reported  from  the  submarines  in  the  South  Atlantic 
and  the  Mediterranean. 


43^7- 


CONFIDENTIAL 
29  Jul.  1942 

Upon  Inquiry  by  the  Naval  Staff  (see  War  Diary  of  24  Jul.),  the  Com- 
manding Admiral,  Submarines  replied  that  he  is  not  planning  to  operate 
submarines  in  the  Gulf  of  Guinea,  as  suggested  by  ship  "28  ;  however, 
the  submarines  U  "68",  "156",  "172",  "504",  and  "459"  are  sailing  from 
western  France  on  18  Aug.  for  a  concerted  surprise  operation  off  Cape- 
town where  they  are  .expected  to  arrive  by  the  end  of  September.   The 
Commanding  Admiral,  Submarines  requested  freedom  of  action  in  the  South 
Atlantic  east  of  longitude  15°  W  in  addition  to  the  areas  already 
assigned. 

The  Naval  Staff  asked  that  detailed  operational  orders  referring  to 
this  assignment  be  submitted  and  will  define  the  limits  of  the  zone  of 
operations  in  the  South  Atlantic  at  the  proper  time. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Daylight  raids  were  staged  on  a  number  of  localities  and  air- 
fields in  southern  England.   A  heavy  night  raid  was  made  on  Birmingham. 

• 

Out  of  a  total  of  80  enemy  incursions  50  penetrated  into  German,  the 
rest  into  occupied  territory.   Night  fighters  shot  down  6  of  the 
attackers.   The  raids  concentrated  on  Saarbruecken,  where  considerable 
damage  v/as  inflicted  on  industrial  and  traffic  installations.   For  de- 
tails see  daily  situation  report. 

2.  Mediterranean  Theater: 

No  planes  were  active  at  the  African  front. 

3.  Eastern  Frontt 

Since  21  Jul.  the  Volga  River  near  Stalingrad  has  been  mined 
continually.  None  of  the  mines  were  observed  to  explode  on  account  of 
the  low  water  level  as  had  been  feared. 

In  connection  with  future  Army  operations,  the  Navy  Liaison  Officer  at 
the  Air  Force  Operations  Staff  has  called  attention  to  the  importance 
of  having  the  Air  Force  attack  Batum,  the  main  commercial  port,  Poti, 
the  principal  fleet  base  and  the  submarine  base  at  Ochemchiri;  he 
strongly  recommended  that  aerial  mines  be  laid  in  these  3  harbors. 

German  fighters  are  shooting  down  a  large  number  of  the  many  enemy 
planes  at  the  6th  Army  front.   It  seems  that  the  training  and  the 
quality  of  the  Russian  flyers  has  greatly  deteriorated. 

Special  Items: 

In  a  conference  with  the  Inspector  at  the  Air  Force  General  attached  tc 
the  Commander  in  Chief,  Navy  about  the  development  of  nev;  ship  planes, 
'it  has  been  agreed  to  abandon  construction  of  the  planned  series  of 
Arado  196C  planes.   Furthermore,  for  reasons  of  weight  series  A5  or  anj 
future  series  cannot  be  equipped  as  planned  with  one  machine-gun  type 
151  in  the  fuselage  and  2  machine-guns  type  17  in  the  wings. 


-£6> 


COrT-FlDBHTIAI 
29  Julo  1942 

Development  of  a-6  ton  ship-borne  hydroplane   with  BMW  engine  model 
(Bavarian  Engine  Works)  is  abandoned,  because  the  Naval  Staff  be- 
that  the  Navy  does  not  need  such  a  plane. 

comply  with  the  Naval  Staff's  demand,  it  is  thus  necessary 
begin  immediately  with  the  development  of  a  substitute   for  the 
L96  plane  to  be  used  as  a  ship-borne  reconnaissance  plane. 


11.  Y/arfare  in  the  Mediterranean  and  the  Black  Sea- 

1.    Enemy  Situation,  Mediterranean; 

Nothing  to  report. 

Own  Situation,  Mediterranean; 

During  an  enemy  air  raid  on  Tobruk  in  the  night  of 
G-reei:  motor  ship  NICOLATJS,  an  Italian  magnetic  mine  sweeper,  am 
.an  naval  barge  were  struck  by  bombs  and  sank.   In  the  same  nig 
an  Italian  hospital  ship  en  route  from  Derna  to  Tobruk  was  unsuccess 
•  attacked  by  planes.   An  enemy  submarine  attacked  an  Italian 
-r  unsuccessfully  with  torpedoes  on  28  Jul.  between  Bari* and 

Meanwhile  a  report  was  received  about  the  3  naval  barges  mis 
since  noon  of  20  Jul.  between  Solium  and  Marsa  Matruh.   The 
barges  were  attacked  at  0645  by  2  enemy  planes  20  miles  southwest  of 

Barrani.  Barge  "348"  was  hit  and  caught  fire,  had  to  be  beached 
and  burned  out.  During  a  second  attack  at  1230  by  gunfire  and  demo- 
ition  bombs  5  miles  southwest  of  Sidi  Barrani,  one  of  the  attackers 
was  shot  down  and  the  crew  captured;  another  plane  was  probably  shot 
dovm.  Barge  "351"  was  damaged  by  gunfire  and  had  to  be  beached;  she 
can  be  salvaged.   Barge  "349"  returned  to  Bardia  undamaged. 

Si  )marine  operations  in  the  western  Mediterranean;   The  Naval  Staff's 
vie    on  this  matter  as  contained  in  the  report  to  the  Chief,  Naval 
Staff  (see  V/ar  Diary  of  28  Jul.)  are  transmitted  to  the  German  Naval 
Command,  Italy  with  copy  to  the  Commander,  Submarines,  Italy.   Whilt. 
agreeing  with  the  viewpoint  of  the  Naval  Command  about  the  fact  that 
submarine  operations  should  be  concentrated  in  the  eastern  Mediter- 
ranean at  the  present  tine,  the  Naval  Staff  points  out  that  any  success 
ach  eved  against  enemy  forces  operating  in  the  interest  of  reinforcing 
Malt  has  an  immediate  bearing  on  the  situation  in  the  eastern  Medi- 
terranean, since  our  supply  shipments  to  North  Africa  are  increasingly 
threatened  by  Malta-based  enemy  forces. 

The  Naval  Staff  therefore  orders  that  up  to  3  submarines  that  become 
ready  for  operations,  over  and  above  the  4  planned  for  that  area,  be 

in  the  near  future  in  the  western  Mediterranean.   Due  to  the 
u  ficulties  encountered  by  submarines  in  the  waters  west  of  longitude 

E,  the  boats  are  to  operate  approximately  along  the  line  running 
from  Iviza  to  Algiers.   It  is  desirable  that  German  and  Italian  sub- 
marines operate  jointly;  the  Italians  should  primarily  take  charge  of 
reconnaissance,  upon  which  the  German  boats  would  then  base  their  op- 
erations.  The  German  Naval  Command,  Italy  is  requested  to  submit,  its 
plans. 

3    Transport  of  Supplies  to  North  Africa: 

5  German  naval  barges  arrived  at  Tripoli  from  Palermo  on  the 


4ed- 


co::riDL'.r 

29  Jul.  19  42 

evening  of  28  Jul. 

The  motor  ship  MOIIVISO  was  damaged  on  28  Jul.  by  an  aerial  torpedo  not 
by  bomb  hits  as  previously  reported. 

Departure  of  the  steamer  ARGENTEA  from  Corinth  to  Benghazi  was  post- 
poned to  1  Aug.   Other  transports  and  coastal  supply  shipping  proceed* 
according  to  plan  with  no  major  incident  reported. 

4.    Area  Naval  Group  South: 

Aegean  Sea:- 

Due  to  interruption  in  communications,  no  reports  have  been 
received. 

Black  Sea; 

Enemy  Situation: 

Radio  monitoring  located  only  light  vessels  and  a  few  sub- 
marines in  the  eastern  Black  Sea. 

Own  Situation: 

An  enemy  air  raid  on  Kerch  on  28  Jul.  destroyed  part  of  Naval 
Field  Hospital  I.   The  chief  medical  officer  was  killed. 

Mine-sweeping  proceeded  uneventfully.   Convoy  operations  on  schedule. 

Special  Items: 

a.  The  Naval  Liaison  Officer  with  the  Army  General  Staff  sul 
mitted  a  request  of  the  Quartermaster  General  that  transports  from  J 
Rumanian  Black  Sea  ports  'should  be  directed  to  Sevastopol  as  soon  as 
possible  in  order  to  facilitate  the  supply  of  the  operating  forces  and 
in  order  to  assemble  stocks  of  winter  supplies  well  ahead  of  time. 
Thereafter -as  soon  as  it  becomes  possible,  the  transports  should  sail 
exclusively  to  Rostov.   Following  the  capture  of  Novorossisk  it  will 
become  necessary  that  a  few  ships  call  at  this  harbor,  too.   Akhtarsk 
should  be  considered  as  alternate  port.   The  Quartermaster  General  re- 
quests moreover  that  all  naval  barges  available  in  the  Black  Sea  be 
transferred  as  soon  as  possible  to  the  Sea  of  Azov,  where  supplies  will 
have  to  be  shipped  from  Mariupol  to  Azov.   It  is  also  requested  that  an 
additional  20  to  50  barges  for  the  supply  traffic  in  the  Black  Sea  be 
made  available. 

For  copy  of  the  corresponding  telegram  see  l/Skl  18502/42  Gkdos.  in  Uar 
Diary,  Part  C,  Vol.  XlVa. 

This  matter  is  referred  to  the  Shipping  and  Transport  Branch  of  the  Na- 
val Staff  Quartermaster  Division  and  Naval  Group  South. 

b.  Group  South  proposed  the  transfer  of  4  training  companies  of 
the  naval  anti-aircraft  gunnery  school  to  the  Crimea  during  the  de- 
cisive stage  of  the  Black  Sea  operations,  because  neither  the  Army  nor 
the  Air  Force  have  troops  available;  this  proposition  is  turned  down 
by  the  Naval  Staff  Quartermaster  Division,  Fleet  Branch,  Air  Defense 
Section,  because  anti-aircraft  protection  must  be  furnished  by  the  Air 
Force. 


-$7p- 


CONFIDENTIAL 


29  Jul.  1942 


The  Naval  Liaison  Officer  on  the  Air  Force  Operations  Staff  is  noti- 
fied of  the  above. 

c.  The  Commanding  Admiral,  Group  South  orders  all  subordinate 
commanders  and  departments  to  postpone  all  leaves  for  10  to  IT  weeks, 
in  view  of  the  all-important  tasks  in  connection  with  the  imminent 
decisive  operations  in  the  Black  Sea.   See  Telegram  1245. 

d.  The  Chief,  Naval  Staff  Operations  Division  directs  the  Naval 
Staff  Quartermaster  Division,  Fleet  Branch  to  assist  Naval  Group  South 
in  preparing  the  transfer  of  motorboats  suitable  for  towing  and 
equipped  with  mine-sweeping  gear  from  the  Sea  of  Azov  to  the 'Caspian 
Sea;  and  requests  that  the  Armed  Forces  High  Comnand  be  as'red  to  al- 
locate 25  landing  boats  and  12  Siebel  ferries  for  use  in  the  Caspian 
Sea.   The  Naval  Staff  Quartermaster  Division,  Fleet  Branch  is  also  in- 
formed of  the  Naval  Staff's  request  to  the  Italian  Haw;  that  they  per- 
mit the  Italian  naval  forces  now  in  the  Black  Sea  to  be  used  in  the 
Caspian  Sea;  see  l/Skl  I  op  18496/42  Gkdos.  in  'Jar 'Diary,  Part  C, 
Vol.  XI Va. 

The  Naval  Staff  Quartermaster  Division,  Plans  and  Schedules  Branch  is 
directed  to  prepare  Makhachkala  as  a  base  for  the  naval  forces  in  the 
Caspian  Sea.   See  l/Skl  I  op  18495/42  Gkdos.  in  War  Diary,  Part  C, 
Vol.  XlVa. 

e.  According  to  recent  information,  oil  was  shipped  on  the 
Caspian  Sea  in  peacetime  exclusively  from  Baku;  the  bulk  went  to 
Krasnovodsk,  with  Makhachkala   and  Astrakhan  next  in  line.   Only  small 
quantities  went  to  Guryev.   After  Volga  traffic  is  cut  off  at  Stalin- 
grad, oil  may  still  be  shipped  by  rail  via  Astrakhan  to  Saratov.   (Lim- 
ited capacity. )   If  Baku,  too,  is  eliminated,  the  routes  from  the 
Persian  ports  of  Pahlevi  and  Bandar  Shah  to  Krasnovodsk  remain  the 
only  ones  of  importance.   The  Chief,  Naval  Staff  Operations  Division 
informs  Naval  Group  South  and  the  Commanding  Admiral,  Black  Sea  of  the 
above.   The  Naval  Staff  Quartermaster  Division  was  notified  directly 
by  the  Chief,  Naval  Staff  Intelligence  Division. 

f .  The  propc  •  .  of  Naval  Group  South  regarding  reorganization 
of  the  Black   ea  area  is  accepted  by  the  Naval  Staff  Quartermaster 
Division  i  y    der  of  29  Jul.  in  agreement  with  the  Chief,  Naval  Staff 
Operations  Division.   Thus,  the  Rumanian  naval  forces  are  under  the 
direct  administrative  command  of  the  Rumanian  High  Command,  but  under 
the  operational  command  of  the  Commanding  Admiral,  Black  Sea.   The 
authority  of  the  Commander,  Naval  Training  Detachment  remains  as  here- 
tofore.  The  Commanding  Admiral,  Black  Sea  puts  the  Commanding  Admiral, 
Rumanian  Naval  Forces  in  charge  of  naval  supply  shipments  from  Ruman- 
ian ports  to  NiKolayev.   The  Commanding  Admiral,  Black  Sea  will  dir- 
ectly dispose  over  naval  combat  forces  if  the  necessity  arises. 

For  the  time  being,  Rumanian  coastal  defense  remains  in  Rumanian  hands, 
it  ibct  to  approval  by  the  Armed  Forces  High  Command,  battery  "Breslaii" 
will  be  transferred  to  Rumania.   Battery  "Tirpitz"  will  be  transferred 
to  the  Crimea  after  the  Army  High  Command  has  given  consent. 


and  represents  the  liaison  of  the  latter  and  the  Commanding  Admiral, 
Black  Sea  with  Rumania.   The  Chief  of  the  Liaison  Staff,  Rumania  will 
be  in  ^hsrge  of  all  German  naval  forces  ope  :  ing  in  Rumania  and  Bul- 


g^rJ 


*3*L- 


CONFIDENTIAL 
29    Jul.    1942 

Situation  Turkey: 

As  reported  by  the  Naval  Attache  at  Istanbul,  the  Turkish  Navy  has 
located  mines  at  the  spot  where  submarine  ATTILA  sapk  at  the  entrance 
of  the  Dardanelles.   Group  South  reports  in  this  connection  that  there 
are  German  anti-submarine  barrages  outside  Turkish  territorial  v/aters 
in  the  approaches  to  the  Dardanelles.   Further  developments  must  be 
awaited. 


IX.   Situation  East  Asia 
Nothing  to  report. 


X.   Army  Situation- 

1.  Russian  Front; 

Army  Group  A: 

Advancing  south  of  the  Don  River,  our  troops  reached  the 
railroad  from  Krasnograd  to  Stalingrad  north  and  south  of  Proletarsk 
and  blew  it  up  at  several  points. 

Army  Group  B; 

The  western  bank  of  the  Don  River  south  of  Chir  was  cleared 
of  isolated  enemy  units.   An  enemy  column  attacking  north  of  Chirskaya 
was  destroyed.   Motorized  forces  and  tanks  are  engaged  in  battle  with 
approximately  100  enemy  tanks  west  of  Kalach.  North  of  Kalach  40 
enemy  tanks  succeeded  in  breaking  through  from  the  west  to  the  rear  of 
our  lines  and  captured  the  field  headquarters  of  the  XIV  Panzer  Corps.. 
Enemy  attacks  on  Voronezh  were  repulsed.   Strong  enemy  troop  concen- 
trations were  observed  south  of  Yelets. 

Central  Army  Group; 

* 

German  forces  advanced  east  of  Velizh  and  reached  the  lake 
chain  near  Chepli. 

Northern  Army  Group; 

Nothing  to  report. 

2.  Finnish  Front; 
Nothing  to  report. 

3.  North  Africa; 

Normal  reconnaissance  and  artillery  activity  along  the  en- 
tire front.   Enemy  air  activity  was  light. 

Enemy  forces  in  the  coastal  sector  were  reinforced  by  units  of  the  1st: 
Armored  Division  transferred  from  the  central  sector  and  by  newly  ar- 
rived heavy  artillery.  In  addition,  1  Australian,  1  South  African  and 


+3M2- 


CONFIDENTIAL 
29  Jul.  1942 

1  British  Infantry  Division  are  concentrated  in  the  area.   The  Panzer 
Army,  North  Africa  reports  that  a  total  of  2,514  enemy  tanks,  armored 
scout  cars,  and  other  armored  vehicles  were  destroyed  or  captured  durr 
ing  the  period  from  26  May  to  25  Jul. 


• 


• 


-&&- 


CONFIDENTIAL 
30  Jul.  1942 

Items  of  Political  Importance 

The  Problem  of  a  Second  European  Front ;   This  problem  continues  to  be 
discussed  at  great  length,  but  no  new  arguments  have  been  introduced. 

For  details  see  Political  Review  No.  176,  paragraph  1. 

France; 

Vichy's  new  Ambassador  at  Ankara,  Bergery,  reports  that  Laval's  con- 
dition following  the  attempt  on  his  life  is  still  unsatisfactory. 

Great  Britain: 

Violent  differences  of  opinion  occurred  in  the  Hou.se  of  Commons  during 
the  debate  about  the  Government's  new  pension  bill.   1,500  Communists 
who  had  gained  admission  to  the  House  of  Commons  staged  a  demonstra- 
tion demanding  that  the  ban  on  the  Daily  Worker  be  lifted. 

India: 

Opposition  against  Gandhi's  disobedience  campaign  was  announced  by  tho 
leaders  of  90,000,000  Moslems  and  by  the  Christian  Hindus,  the  Indian' 
Liberal  Federation,  a  great  number  of  Untouchable  groups  and  hundreds 
of  thousands  of  Indian  civil  servants. 

Finland : 

The  Finnish  News  Agency  denies  rumors  according  to  which  Finland  is 
willing  to  get  out  of  the  war  with  American  aid. 

U.S.A.  ; 

Under  the  heading  "Russia  and  China  fighting  back  to  back"  the  Ameri- 
can Life  magazine  writes  that  these  two  nations  are  in  the  center  of 
the  deadly  struggle,  while  Britain  and  the  U.S.A.  are  fighting  only  at 
the  sidelines.   Russia  is  in  danger  of  losing  her  two  principal  supply 
routes,  and  China's  resistance  is  being  overcome  slowly  but  surely. 
The  U.S.A.'  has  no  prospects  of  disrupting  or  eliminating  the  Japanese 
lines  of  communication  in  Asia  and  the  southwestern  Pacific. 


Conference  on  the  Situation  With  the  Chief,  Naval  Staff 

i-  'm  •         .    .      r  "  I  -*"  i  m  -  ■  ... 

I.  The  Naval  Staff  Quartermaster  Division  reports  that  repairs  on  the 
GALSTER  will  take  at  least  until  25  Sep.,  those  on  the  RIEDEL  3  months 
and  those  on  the  LODY  at  least  6  months.   The  crew  of  the  LODY  is 
transferred  to  torpedo  boat  T  "24". 

The  fact  that  these  3  destoyers  ran  aground  thus  has 
very  disagreeable  consequences  which  are  of  a  Very 
serious  nature  considering  the  small  number  of  destroyejrs 
available, 

II.  The  Chief,  Naval  Communications  Division  reports  that  captured 
documents  revealed  that  the  British  are  in  possession  of  regular  op- 
erational orders  of  the  Commanding  Admiral,  Submarines,   Judging  from 
the  dates  of  the  covering  letters,  they  were  probably  captured  with 
submarine  U  "HO". 


-.1741- 


CONFIDENTIAL 
30  Jul.  1942 

III.  According  to  preliminary  information  received  from  the  Permanent 
Representative  of  the  Commander  in  Chief,  Ilavy  at  Fuehrer  Headquarters, 
the  report  concerning  the  required  increased  allocation  of  shipyard 
workers  resulted  in  complete  fulfillment  of  the  Navy's  demands.   The 
Chief  of  the  Quartermaster  Division,  'Naval  Staff  is  going  to  make  a 
full  report  about  this  subject  on  31  Jul. 

IV.  The  Commanding  Admiral,  German  Naval  Command,  Italy  commented  ex- 
tensively on  the  case  of  Lt .  Commander  Oehrn.   Nevertheless,  the  Com- 
mander in  Chief,  Navy  upholds  his  rebuke. 

In  a  Very  Restricted  Circle: 

V.  The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division  re- 
ports that  complying  with  the  Naval  Staff's  directive  (see  War  Diary  of 
22  Jul.),  Group  North  reported  its  plans  for  mining  operations  as  fol- 
lows: 

a.  The  northern  passage  of  Novaya  Zemlya  is  to  be  mined. with 
about  260  EMF  mines  by  the  mine-laying  vessel  ULK  as  was  done  during 
the  auxiliary  cruiser  operation.   If  necessary,  the  UL1.I  may  wait  for 
favorable  weather  conditions'  in  the  Franz  Josef  Land  area.   The  area 
Narvik-Harstad  would  serve  as  jumping-of f  base.   The  operation  is  to  be 
carried  out  by  the  end  of.  August.   The  cruiser  operation  in  the  Kara 
Sea  will  have  to  be  carried  out  before  the  mines  are  laid  and  cannot  be 
repeated  later  on. 

b.  At  the  western  approach  to  Yugor  Strait  20  to  30  TUB  mines 
will  be  laid  by  a  type  VII  submarine  immediately  after  the  mines  arrive 
in  the  north  area. 

c.  Both  approaches  to  Pechora  Bay  will  be  mined  with  Tl.IB  mines 
by  a  type  VII  submarine  after  receipt  of  mines. 

d.  The  western  approaches  to  I.Iatochkin  Strait  v/ill  be  mined  with 
TMC  mines  by  a  type  VII  submarine;  subsequently  quadrant  AT  4610  will 
be  mined  by  the  HIPPER  and  2  destroyers  with  120  to  140  EMF  mines  and 
the  same  number  of  EMC  mines  in  the  latter  part  of  August. 

e.  Destroyers  will  mine  the  areas  north  and  south  of  Kolguyev 
Island  and  the  lower  2/3 's  of  quadrant  AW  2200  with  a  large  number  of 
EMF  and  EMC  mines  and  cutter  floats;  some  mines  will  also  be  laid  in 
the  lower  2/3 »s  of  quadrant  AW  2300.   Russian  minefields  are  suspected 
in  quadrant  AW  2600,  because  sailing  instructions  directed  convoy  PQ,  17 
to  proceed  close  to  the  coast  of  Kola  Peninsula  after  Svyatoi  Nos.   The 
mineswill  be  laid  in  the  second  part  of  August. 

f    Kara  Strait  and  the  entrance  to  the  White  Sea  will  be  mined 
with  SitfA  mines,  following  their  release  for  operational  use. 

g.   The  request  to  have  Dvina  Bay  and  Onega  Bay  extensively  mined 
by  the  Air  Force  is  renewed. 

The  Nav.  ">  Staff  agrees  with  these  plans  as  such.   It  must  be  remarked, 
however,  that  the  HIPPER  is  not  equipped  as  a  mine  carrier  (deck  too 
high),  and  should  better  be  replaced  by  the  K0ELN. 

For  the  mining  of  the  northern  passage,  mines  \»ith  timing  devices  should 
be  used  exclusively  because  the  mines  should  be  spread  "widely  over  the' 
area  in  order  to  produce  best  results,  and  without  such  devices  future 
German  operations  would  be  impossible. 


.fazb- 


CONFIDENT IAi 
30  Jul.  1942 

Group  North  was  instructed  accordingly  and  received  orders  to  make  the 
final  requisition  of  mines  with  due  consideration  for  the  type  of  deto- 
nators best  suited  to  the  existing  local  magnetic  conditions  after  con- 
sultation with  the  Mining  and  Barrage  Inspectorate;  the  Group  is  also 
to  make  sure  whether  mines  with  timing  devices  can  be  made  available  in 
time.   The  final  decision  on  the  matter  will  depend  on  the  result  of 
these  investigations. 

The  Chief,  Naval  Staff  agrees. 

VI.   The  Chief,  Operations  Branch,  Naval  Staff  Operations  Division 
further  reports  on  the  account  rendered  by  the  Naval  Liaison  Officer  at 
the  Army  High  Command  to  the  Chief  of  Staff,  Naval  Staff  on  26  Jul. 
about  the  situation  at  the  Russian  front.   The  Army  General  Staff  con- 
siders the  beginning  of  supply  operations  by  way  of  the  Sea  of  Azov  as 
of  decisive  importance  for  the  continuation  of  the  current  operations; 
this  refers  particularly  to  the  route  from  Taganrog  to  Rostov  and  up 
the  Don  River  to  Tsymliansk.   The  Army  has  already  made  all  preparations 
for  the  Don  shipping.   The  Naval  Liaison  Officer  suggests  examining  the; 
possibilities  to  transfer  tugboats  to  the  Sea  of  Azov  in  addition  to 
naval  barges,  in  order  to  utilize  better  the  available  lighters. 

The  offensive  against  Leningrad  is  contemplated  for  the  early  part  of 
September.   Contrary  to  previous  orders,  it  is  now  intended  to  invade 
the  city  proper.   The  demand  contained  in  the  report  that  the  shipyards 
be  spared  from  destruction  so  that  they  could  be  utilized  for  our  pur- 
poses was  already  taken  care  of  by  the  Naval  Staff  Quartermaster  Divi- 
sion.  Kronstadt  is  to  be  dealt  v/ith  depending  on  the  strength  of  the 
Russian  resistance,  possibly  later  over  the  ice. 

The  analysis  of  the  situation  by  the  Naval  Staff  Operations  Division 
with  regard  to  enemy  landings  in  the  west  conforms  fully  to  the  view- 
point of  the  Army  General  Staff,  particularly  as  regards  the  conten- 
tion that  the  British  will  operate  primarily  to  further  their  own  in- 
terests by  eliminating  the  submarine  bases.  The  British  have  already 
succeeded  to  some  extent  in  establishing  a  second  front  by  forcing  us 
to  transfer  4  tank  divisions  and  1  infantry  division  to  the  west. 

With  respect  to  North  Africa,  it  is  assumed  that  Rommel  will  have  to 
remain  on  the  defensive  for  approximately  another  4  weeks.  The  goal 
there  remains  as  heretofore,  the  capture  of  Alexandria. 

The  Army  General  Staff  is  afraid  that  the  Japanese  might  attack  Russia; 
this  would  not  conform  to  the  over-all  plans  since  it  would  tie  up 
Japan's  forces  in  the  north  and  either  weaken  her  defensive  strength  iri 
the  south  or  preclude  any  offensive  operations  there.  We  are  not  in- 
formed about  Japan's  real  plans,  neither  is  the  Fuehrer..  For  copy  of 
the  report  see  1/Skl  1455/42  Gkdos.  Chefs,  in  War  Diary,  File  "Barbar-4 
ossa'*. 


Special  Items 

I.  For  information  about  shipyard  overhaul  of  TIRPITZ  and  HIPPER  dur- 
ing the  winter  1942-43  and  copy  of  the  respective  directive  to  the  Na- 
val Staff  Quartermaster  Division  see  1/Skl  I  op  18512/42  Gkdos.  in  War 
Diary,  Part  B,  Vol.  V. 

II.  Group  North  intends  to  withdraw  the  LUETZOW  between  8  and  12  Aug, 
The  operational  order  will  be  issued  by  the  Fleet,  the  execution  will 


43^6- 


CONFIDENTIAL 
30  Jul.  1942 

be  under  the  operational  command  of  the  Fleet  as  far  as  Skudesnaes  and 
from  there  on  under  the  command  of  Group  North.   The  LUETZGU  will  be 
escorted  from  Trondhein  by  torpedo  boats  T  "15"  and  "7"  and  escort 
vessel  F  "1",  and  from  Stavanger  on  also  by  torpedo  boats  T  "9"  and 
"12".   The  Naval  Staff  is  requested  to  release  the  last  named  torpedo 
boats  irrespective  of  the  decision  about  the  open  water  firing  prac- 
tice, and  to  inform  the  Air  Force  Operations  Staff  about  the  demands  or, 
the  5th  Ai*1  Force,  the  Fighter  Command,  Norway,  and  the  Air  Force 
Commander,  Center  with  regard  to  reconnaissance  and  fighter  protection. 
A  decision  should  be  made  at  once  about  the  shipyard  for  the  LUETZOW . 

In  compliance  with  above  demands,  the  Naval  Staff  places  torpedo  boats 
T  "9"  and  "12"  at  the  disposition  of  Group  North  and  informs  the  Air 
Force  Operations  Staff  about  the  transfer  plans  and  Group  North's  re- 
quirements for  reconnaissance  and  fighter  protection. 

A  compilation  of  enemy  radio  communications  intercepted  and  deciphered 
between  20  and  26  Jul.  1942  is  contained  in  Report  No.  30/42  of  the 
Radio  Intelligence  Service.   It  contains  a  survey  of 'the  convoy  traffic 
along  the  American  East  Coast,  on  the  northern  and  southern  transatlan- 
tic route,  also  a  report  about  the  decoded  British  secret  coramunicatior. 
of  18  May,  according  to  which  a  British  vessel  was  attacked  on  15  May 
by  a  "raider"  southwest  of  the  Cocos  Islands  and  that  Keeling  Island  was 
bombed  and  strafed  by  a  plane. 


Situation  50  Jul.  1942 

I.    War  in  Foreign  Waters 

1.    Enemy  Situation; 

Middle  and  South  Atlantic: 

Due  to  the  illness  of  a  British  escort  officer,  the  Italian 
tankers  ARCOLA  and  TAIGETE,  which  supply  the  Italian  ships  carrying  re- 
patriates from  East  Africa,  had  to  call  at  Trinidad  and  are  proceeding 
from  there  to  Freetown. 

The  former  Chief  of  the  Chilean  Army  stated  that  Chile  is  supplied  at 
the  moment  from  Australia  because  Japanese  submarines  are  not  likely  to 
be  encountered  on  this  route.   The  route  Magallanes-Capetown  will  prob- 
ably gain  importance  shortly.   (Compare  the  report  of  2  tankers  passing 
Punta  Arenas  in  the  direction  of  the  Pacific  in  War  Diary  of  29  Jul.) 

Radio  monitoring  established  that  auxiliary  cruiser  ROYAL  ULSTERMAN  is 
probably  in  the  Freetown  area  assigned  to  troop  transport  duty.   The 
auxiliary  cruiser  ALCA'.ITARA  and  the  ASTURIAS  which  recently  made  her  re- 
appearance were  located  approximately  300  miles  northv/est  of  St.  Helena!, 

An  agent  reported  encountering  a  convoy  escorted  by  1  destroyer  on  a 
northwesterly  course  on  24  Jul.  at  01°  S,  08°  E. 

Indian  Ocean; 

According  to  a  report  of  the  Lourenco  Marques  Consulate,  6 
light  cruisers  and  1  aircraft  carrier  are  anchored  off  Inhaca  in  Dela- 
goa  Bay.   A  convoy  sailing  north  was  escorted  by  1  MALAYA-class  battle- 
ship and  1  aircraft  carrier  (no  date  v/as  given). 


43*- 


CONFIDENTIAL 
30  Jul.  1942 

According  to  an  intelligence  report,  the  battleship  QUEEN  ELIZABETH  wai 
shifted  from  Alexandria  to  Aden,  where  she  is  to  wait  for  an  escort  to 
Durban.   However,  in  reality  the  ship  reportedly  remained  in  the  north- 
ern part  of  the  Red  Sea  in  the  vicinity  of  Suez. 

On  29  Jul.  the  British  steamer  LIAS  I  RAH  and  the  U.S.  steamer  STEEL 
TRAVELER  were  attacked  by  a  submarine  in  the  Gulf  of  Bengal. 

2.    Own  Situation: 

Radiogram  1605  informs  all  ships  in  foreign  waters  about  the 
valuable  information  gained  by  the  report  from  the  Wellington  intelli- 
gence center  of  the  Allied  Forces  to  the  Commander  in  Chief,  Eastern 
Fleet,  Colombo  which  was  found  on  the  captured  vessel  NANKIN  (see  War 
Diary  of  28  Jul. ) . 

Additional  report  on  enemy  situation  by  Radiogram  2240. 


■II.   Situation  West  Area 

1.  Enemy  Situation; 

The  German  Embassy  at  Dublin  reported  on  24  Jul.  that  the 
news  about  the  large  scale  on  which  training  of  airborne  troops  is 
conducted  and  about  the  construction  of  glider  transport  planes  is  grow- 
ing more  frequent.   It  is  reported  that  planes  towing  as  many  as  8 
gliders  have  been  observed  over  Northern  Ireland.   A  U.S.  officer  from 
Northern  Ireland,  on  leave  at  Dublin,  allegedly  stated  that  the  Ameri- 
cans would  land  at  places  where  the  Germans  would  least  expect  them,  in 
his  opinion  somewhere  behind  the  northern  wing  of  the  Westwall.  Tank 
carrying  assault  craft  are  said  to  have  been  sighted  off  Belfast.   The 
Embassy  report  also  mentions  the  disposition  of  U.S.  and  British  forces 
and  the  location  of  airfields  and  munitions  factories  in  Northern  Ire- 
land. 

Air  reconnaissance  on  30  Jul.  observed  14  vessels,  probably  motor  mine 
sweepers,  putting  into  Dover,  south  of  Middlehampton  4  steamers  and  2 
patrol  vessels;  in  the  river  mouth  at  Dargness  25  steamers,  off  Falcombe 
60  assault  boats  at  about  1100;  at  the  same  time  1  PARIS-class  battle- 
ship, 1  aircraft  carrier,  2  cruisers,  probably  light,  3  destroyers,  7 
escort  vessels,  140  assault  landing  craft,  and  3  small  steamers  off 
Plymouth. 

South  of  Lizard  Head  15  steamers  were  observed  on  a  westerly  course. 
Between  Portland  and  Start  Point  photo  reconnaissance  disclosed  little 
change  of  the  ship  situation  on  the  coast  since  28  Jul. 

2.  Own  Situation; 

Atlantic  Coast; 

Nothing  to  report. 

Channel  Coast; 

A  German  convoy  was  attacked  at  1420  north  of  Morlaix  by  20 
enemy  fighter  planes;  1  net  tender  and  1  mine  sweeper  v«rere  sunk.   1 
enemy  fighter  was  shot  down  by  a  mine  sweeper.   Battery  "Todt"  and  anti - 


43_2l8- 


30  Jul.  1942 

aircraft  batteries  were  likewise  attacked  during  the  afternoon  by  20 
Spitfires  and  suffered  casualties.   1  enemy  plane  crashed  and  another 
one  made  a  forced  landing. 

The  3rd  Torpedo  Boat  Flotilla  is  scheduled  to  transfer  from  Le  Havre 
and  St.  Malo  to  Cherbourg  and  the  5th  PT  Boat  Flotilla  from  Hook  of 
Holland  to  Boulogne  during  the  night  of  30  Jul.   3  vessels  of  the  2nd 
PT  Boat  Flotilla  are  assigned  to  reconnaissance  in  the  area  Cherbourg- 
Guernsey. 

Special  Item; 

The  Fleet  Commander  reports  that  due  to  seasonal  weather  conditions  the 
open  water  torpedo  firing  exercises  will  not  be  concluded  before  the 
end  of  September,  if  the  torpedo  boats,  mine  sweepers  and  submarines 
are  made  available  according  to  plan,   For  this  reason  it  is  necessary 
to  replace  the  torpedo  boats  T  "7"  and  "15"  which  urgently  require 
shipyard  overhaul  around  the  middle  of  August  by  the  torpedo  boats  T 
"9"  and  "12".   This  eliminates  the  possibility  of  increasing  the  3rd 
Torpedo  Boat  Flotilla  in  the  west  area  to  5  or  6  boats. 


III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea: 

Enemy  Situation; 

Nothing  to  report. 

Own  Situation; 

Mine-exploding  vessels  swept  3  mines  off  Terschelling  and 
Borkum.   Mine  field  No.  2  has  been  completed.   The  completion  of  mine- 
field No.  3  and  various  minesweeping  operations  were  handicapped  by  bad 
weather.   During  the  night  of  29  Jul.  1  Boeing  was  shot  down  off  Texel 
by  naval  anti-aircraft. 

The  cutter  float  barrage  "Southwest  107"  (code  name  "Alba")  is  scheduled 
to  be  laid  during  the  night  of  30  Jul. 

2.  Norway; 

At  1905  on  27  Jul.  2  torpedo  planes  unsuccessfully  attacked  a 
westbound  convoy  off  Svaerholthavet ,   At  2310  3  Russian  planes  unsuccess- 
fully attacked  the  convoy  of  patrol  boat  "6101"  in  the  Sylte  Fjord. 
Otherwise  nothing  to  report. 

3.  Arctic  Ocean: 

Enemy  Situation; 

Group  North  assumes  that  the  reports  about  enemy  plans  to 
conduct  convoy  PQ  18  as  a  large-scale  operation  under  escort  of  heavy 
forces  and  aircraft  carriers  appear  plausible  in  view  of  the  grave 
Russian  situation.   The  Group  believes  that  convoy  SC  91  reported  on  12 
Jul.  on  a  course  of  46°  in  quadrant  BD  7610  and  the  convoys  located 
south  of  Iceland  on  23  and  24  Jul.  are  parts  being  brought  up  to  form 


+319- 


CONFIDENTIAL 


30  Jul.  1942 


convoy  PQ,  18.   There  Is  no  indication  yet  that  the  latter  has  left 
Reykjavik. 

The  Group's  assumption  sounds  very  likely. 

A  German  submarine  sighted  2  U.S.  CALIFORNIA- class  battleships  on  28 
Jul.  about  60  miles  west  of  Reykjavik;  they  v/ere  proceeding  on  a  course 
of  70°  and  had  an  escort  of  6  destroyers. 

tfhis  report,  too,  may  mean  that  convoy  PQ,  18  will  de- 
part soon. 

Own  Situation: 

Nothing  to  report. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.   Enemy  Situation: 

Radio  monitoring  located  1  submarine  depot  ship  and  9  sub- 
marines at  sea.   On  19  and  20  Jul.  several  drifting  M  12  and  M  08  mines 
not  covered  with  marine  growth  were  detonated  by  gunfire  off  Peipia  and 
Rennisaari.   On  the  morning  of  30  Jul.  3  FUGAS-class  mine  sweepers,  2 
other  mine  sweepers,  approximately  11  patrol  vessels  or  motor  mine 
sweepers,  and  1  gunboat  sailed  from  Lavansaari  in  a  westerly  direction, 
The  formation  withdrew  in  a  southeasterly  direction  after  running 
against  the  east  flank  of  the  Rukarjaervi  minefield  and  following  3 
mine  detonations. 


2. 


Own  Situation: 


Nothing  to  report  from  the  area  of  the  Commanding  Admiral, 
Defenses,  Baltic  Sea. 

Mine -searching  and  convoy  operations  in  the  area  of  the  Commander,  Mine 
Sweepers,  Baltic  Sea  proceeded  according  to  plan.  ^Owing  to  the  lack  of 
escort  forces,  the  requirements  of  the  Reich  Commissioner  of  Maritime 
Shipping  can  be  met  only  with  great  delay.   The  German  steamer  KAETHE 
was  torpedoed  by  an  enemy  submarine  and  sank  at  0750  off  Steinort. 

The  Ontarjaervi  minefield  was  laid  according  to  plan. 


V.    Submarine  Warfare 

1.   Enemy  Situation: 

Submarines  were  reported  by  planes  approximately  180  miles 
west  of  the  Faeroe  Islands  (depth  charge  attack  with  unobserved  result), 
70  miles  northwest  of  Land's  End  and  100  miles  west  of  Brest.  A  fourth 
submarine  sighted  600  miles  west  of  Cape  Vilano  was  the  "Kirschbluete'', 

The  subchaser  SCOTTISH  was  located  90  miles  west  of  Cape  St.  Vincent. 


-JasJb- 


CONFIDENTIAL 


30    Jul.    1941 


Reports  from  off  the  American  Bast  Coast  and  from  the  West  Indies  con- 
cern a  submarine  attack  60  miles  south  of  Sable  Island  and  several  sub- 
marines sighted. 

According  to  a  report  of  the  Haval  Attache  at  Buenos  Aires,  some  mer- 
chant vessels,  too,  are  equipped  with  U.S.N,  direction  finders  for  wavei 
lengths  of  5  to  65  m. 

2 .    Own  Situation : 

Contact  with  the  convoy  in  the  middle  North  Atlantic,  which  is 
probably  convoy  ON  115,  was  maintained  at  first  by  2  and  later  by  4 
submarines  with  only  short  interruptions.   So  far  no  reports  of  any 
successes  have  been  received. 

Unfortunately,  nothing  was  accomplished  against  the  battleship  force 
sighted  60  miles  west  of  Reyk janes,  except  a  futile  attack  by  submarine 
U  "609"  on  a  destroyer  group  detached  from  the  main  force. 

However,  satisfactory  results  were  reported  from  the  West  and  South 
Atlantic;  submarine  U  "155"  sank  a  BAEREIJFELS-class  steamer  (7,500  GRT ) , 
the  Brazilian  steamer  PI AVE  (2,547  GRT),  the  Norwegian  steamer  BILL 
(2,445  GRT),  the  U.S.  steamer  CRANF0RD  (6,096  GRT),  the  captain  of  which 
was  taken  aboard,  all  in  the  vicinity  of  Trinidad.   In  the  same  area  a 
6,500  GRT  steamer  was  sunk  by  submarine  U  "66".   In  the  vicinity  of 
Freetown,  the  British  steamer  DANMARK  (8,591  GRT),  a  5,000  GRT  Steamer  and 
one  of  6,000  GRT  were  sunk  by  submarine  U  "752";  submarine  U  "130"  sank 
the  new  steamer  ALFY/00D. 

In  addition,  submarine  U  "132"  reported  the  very  probable  sinking  of  a 
8,000  GRT  freighter  torpedoed  on  29  Jul.  out  of  a  convoy  60  miles  south 
of  Sable  Island. 

Thus  the  enemy's  ship  losses  were  increased  through  the  sinkings  of  a 
single  day  by  59,636  GRT. 

To  this  must  be  added  5  cargo  sailing  ships  sunk  by  different  submarines 
in  the  Mediterranean  and  the  damaging  of  destroyer  II  "29"  east  of  Cyprus 
by  torpedo  hits  from  the  submarines  U  "375",  U  "77"  and  U  "565". 

Details  and  additional  reports  in  Supplement  to  submarine  situation,  War 
Diary,  Part  B,  Vol.  IV. 

Special  Items; 

a.  The  Commanding  Admiral,  Submarines  proposes  to  the  Chief 
Meteorological  Branch,  Naval  Staff  Hydrogranhic  and  Meteorological  Di- 
vision that  he  assign  2  or  3  experienced  meteorologists  beginning  in 
August  for  the  operations  against .Atlantic  convoys;  such  experts  have 
proved  very  valuable,  if  familiar  with  the  conditions  on  submarines. 

b.  The  Second  Admiral,  Submarines  has  assigned  submarine  U  "211" 
to  leave  Kiel  on  8  Aug.  for  one-week  tests  with  search  gear  equipment  as 
planned  by  the  Naval  Staff  Submarine  Division. 


Mi- 


UONFIDENTIAL 
30  Jul.  1942 

VI;   Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Armed  reconnaissance  planes  sank  a  3,000  to  4,000  GRT  steamer 
out  of  a  convoy  south  of  Middlehampton.   During  the  night  of  30  Jul. 
considerable  German  forces  raided  Birmingham. 

During  the  day,  the  enemy  raided  airfields  in  the  occupied  western  area 
and  lost  at  least  10  planes  which  were  shot  down.   A  few  other  planes 
raided  the  Cuxhaven  area;  1  Spitfire  was  shot  down. 

Only  a  snail  number  of  enemy  raids  in  the  occupied  area  were  reported 
during  the  night  of  30  Jul.  and  one  incursion  into  German  territory  to 
Nordhausen;  no  bombs  were  dropped. 

In  addition  to  the  above  enemy  losses,  15  planes  were  shot  down  for  sure 
and  3  others  probably  in  free-lance  fighter  patrols  on  30  Jul. 

During  a  night  raid  on  Hamburg  on  29  Jul.  the  enemy  made  a  futile  at- 
tempt to  eliminate  German  night  fighters  by  attacking  their  airfields 
prior  to  the  raid. 

The  Times  aeronautics  expert  reports  mass  production  of  the  Mustang, 
the  fastest  plane  type  of  the  army;  it  is  described  as  particularly 
suited  for  reconnaissance  and  low-level  operation  because  it  is  almost 
noiseless . 

2.  Mediterranean  Theater; 

3  enemy  planes  were  shot  down  in  raids  on  Malta.   In  North 
Africa  our  air  forces  attacked  tank  and  truck  concentrations  and  raided 
airfields  near  Cairo.   Moreover,  escort  flights  were  carried  out  for 
North  African  supply  transports,  during  which  a  submarine  was  attacked 
with  an  SC  250  bomb,  reportedly  with  good  results. 

2  planes  were  shot  down  during  an  enemy  raid  on  Tobruk  in  the  night  of 
29  Jul. 

3.  Eastern  Front; 

Our  air  forces  supported  the  operations  of  Army  Group  A  and 
the  Northern  Army  Group.   The  airfield  and  enemy  ships  at  Lavansaari 
were  attacked  v/ith  observed  good  effect. 

Ju  52  planes  carried  large  amounts  of  supplies  for  German  army  units  at 
Tsymliansk. 

Photo  reconnaissance  over  Astrakhan  revealed  the  presence  of  6  paddle 
steamers,  11  motor  launches,  24  oil  lighters,  8  freight  barges,  3 
floats,  40  medium  and  small  harbor  craft,  and  60  other  small  vessels. 


VII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.    Enemy  Situation,  Mediterranean; 

Accord!  ng  to  an  Italian  communication,  the  LIVERPOOL-class 
cruiser  left  the  Gibraltar  dock  on  30  Jul.   Air  reconnaissance  in  the 
aastej?-n-Medi-terranean  re-vealed  only  slight  convoy  traffic^ 

43&J2- 


CONFIDENTIAL 
30  Jul.  1942 

2.  Own  Situation,  Mediterranean: 

1  boat  of  the  3rd  PT  Boat.  Flotilla  is  en  route  from  Tobruk 
to  Suda. 

During  an  enemy  night  air  raid  on  Tobrul:  on  29  Jul.,  the  German  steamer 
DALOS  was  damaged  a  second  time  by  a  bomb  hit.   The  steamer  SAN  MARCO 
had  to  be  beached  after . running  aground. 

3.  Transport  of  Supplies  to  North  Africa: 

The  steamer  OSTIA  was  attacked  by  enemy  planes  west  of  Marsa 
Matruh  while  proceeding  west.   The  Italians  had  not  provided  for 
fighter  protection, 

17  Italian  naval  barges  are  proceeding  from  Suda  to  Tobruk.   8  more 
naval  barges  sailed  from  Piraeus  to  Suda. 

The  steamer  SIBILIA  arrived  at  Tobruk  on  29  Jul.   The  MILANO-AVENTINO 
convoy  is  en  route  from  Suda  to  Benghazi. 

Supply  and  coastal  traffic  on  schedule. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

Enemy  air  raids  on  Suda  and  Ma,  1  ernes  carried  out  on  the  even- 
ing of  28  Jul.  caused  no  damage. 

Black  Sea: 

Enemy  Situation: 

12  submarines  were  located  at  sea  by  radio  monitoring.  On  the 
evening  of  28  Jul.  an  enemy  ship,  probably  a  mine  layer,  was  fired  upor 
and  forced  to  withdraw  3  miles  south  of  Yalta. 

Own  Situation: 

During  the  night  of  29  Jul.  the  3rd  Motor  Mine  Sweeper  Flo- 
tilla executed  an  undetected  exploratory  sweep  in  the  southern  sector 
of  the  Kerch  Strait;  no  mines  were  swept.   A  mine-sweeping  operation 
was  conducted  south  of  Yalta. 

3  Jttalian  submarines  and  2  PT  boats  sailed  fron  Constanta  via  Sulina  in 
in  easterly  direction. 

4  naval  barges  were  towed  down  the  Danube  from  Linz  on  29  Jul.  6  more 
naval  barges  were  delivered  at  Linz. 

An  Army  Siebel  ferry  sank  on  28  Jul.   6  miles  south  of  Mariupol  outside 
the  channel,  probably  due  to  striking  a  mine.   There  were  a  number  of 
casualties. 

Repeated  enemy  air  raids  on  Mariupol  during  the  night  of  29  Jul.  caused 
no  damage  to  naval  installations.  1  enemy  plane  was  shot  down  by  naval 
anti-aircraft . 

Convoy  activities  were  hampered  by  bad  weather. 


l3a!3- 


coiiFiDi':  -  I.-.: 

30    Jul.    1942 

Special  Items; 

a.  The  comment  of  Naval  Group  South  on  the  transport  demands  I 
mltted  by  the  Naval  Liaison  Officer  to  the  Army  General  Staff  (see  '..;.. 
Diary  of  29  Jul.)  contains  among  other  items  a  request  to  ensure  the 
coordination  of  the  demands  made  by  the  Amy  Quartermaster  Division  '..<  . 
Army  Group  A.   For  copy  see  1/Skl  18638/42  Gkdos.  in  7/ar  Diary,  Pa 
Vol.  XlVa. 

For  the  report  of  Group  South  regarding  the  possibilities  of  using  the 
harbor  o£   Sevastopol  for  supply  operations  see  Telegram  2020. 

b.  The  directive  of  Group  South  regarding  measures  for  the  trt 
fer  of  Italian  naval  forces  to  the  Caspian  Sea  in  accordance  with  ,' 
Naval  Staff's  request  to  the  Italian  Admiralty  provides  that   naval 
warfare  in  the  Black  Sea  must  suffer  no  interruption  and  that  it  must 
remain  possible  to  use  Italian  subchasers  against  Russian  naval  forces 
until  all  of  the  Black  Sea  ports  are  in  German  hands.   3  Italian  sub- 
marines are  to  be  assigned  to  the  Caspian  Sea,  while  2  are  to  remain 
the  Black  Sea.   For  copy  of  telegram  see  1/Skl  18629/42  Gkdos.  in  War 
Diary,  Part  C,  Vol.  XlVa. 

These  measures  conform  to  the  Naval  Staff's  viewpoint. 


VIII.  Situation  East  Asia 

No  reports  have  been  received. 


IX.   Army  Situation 

1.   Russian  Front; 

Army  Group  A; 

Enemy  artillery  fire  in  the  Kerch  area.   German  forces  advanc 
ing  in  the  Kuban  area  to  the  south  have  reached  the  Y©isk  river.  Spear- 
heads advanced  as  far  as  Novo  Rogalsk  and  Salsk.   Due  to  floods  caused 
by  explosives  in  the  Manych  River  section,  ferry  operations  across  the 
Don  River  at  Rostov  had  to  be  suspended  temporarily,  and  the  16-ton 
bridge  thrown  across. 

Army  Group  B; 

At  the  southern  wing  the  rest  of  the  enemy  forces  on  the 
western  bank  of  the  Don  were  driven  across  the  river. 

Successful  fighting  occurred  in  the  area  north  of  Kalach  against  enemy 
tank  units,  parts  of  which  had  been  newly  thrown  into  the  battle.  An 
enemy  attempt  to  cross  the  Don  River  south  of  Kazansk  failed.  At  v 
onezh  we  repulsed  enemy  forces  which  had  crossed  the  Voronezh  River* 

Central  Army  Group ; 

The  enemy  succeeded  southwest  of  Staritsa  in  breaking  through 
our  lines  with  strong  tank  forces;  the  breakthrough  was  sealed  off  eas- 
of  Rzhev.   3  enemy  divisions  attacked  north  of  Rzhev;  here,  too.  a 


-in4- 


CONFIDENTIAL 
30  Jul.  1942 

penetration  had  to  be  sealed  off. 
Northern  Army  Group: 
Concentrations  of  enemy  forces  were  dispersed. 

2.  Finnish  Front: 
Nothing  to  report. 

3.  North  Africa: 

No  report  has  been  received  yet. 


» 


X 


#.) 


43J5- 


CONFIDENTIAL 
31  Jul.  1942 

Items  of  Political  Importance 

The  Second  European  Front; 

British  and  American  industrial  workers  and  seamen  submitted  petitions 
to  their  Governments  demanding  the  establishment  of  a  second  European 
front . 

The  British  believe  that  the  SS  troops  are  being  transferred  to  France 
in  order  to  keep  the  French  population  in  line  in  the  event  of  an  in- 
vasion. 

Another  argument  against  establishing  a  second  front  is  that  £h  this 
case  further  war  material  deliveries  to  Russia  would  have  to  be  stoppeq 
Stalin,  however,  is  more  interested  in  the  latter  than  in  the  second 
front. 

France : 

The  French  Government  protested  in  London  against  the- danger  to  the 
French  fishing  industry.   The  Navy  Ministry  denied  the  British  report 
according  to  which  German  crews  are  taking  over  20  to  30  French  sub- 
marines at  Toulon  and  Villefranche. 

The  German  Consul  General  at  Tangier  reports  that  the  De  Gaulle  move- 
ment in  French  Morocco  is  not  nearly  as  strong  as  generally  assumed. 
His  supporters  are  supposedly  the  British,  whose  influence  has  vanished 
to  a  great  extent.  American  influence  is  of  far  greater  importance  and| 
ought  to  be  checked. 

In  Tunesia,  German  military  successes  are  the  best  antidote  to  Anglo- 
American  propaganda  among  the  Arabs,  who  are  generally  friendly  to  Ger- 
many,  but  cool  or  even  hostile  to  Italy. 

Great  Britain: 

Beveridge  delivered  an  address  calling  for  the  establishment  of  an 
Economic  General  Staff  to  prepare  for  post-war  reconstruction;  he 
further  demanded  that  the  Government  agree  in  principle  to  his  proposed 
social  measures  as  a  means  of  strengthening  the  nation's  morale. 

India: 

The  executive  committee  of  the  Indian  Congress  Party  voted  a  resolution 
calling  for  the  immediate  withdrawal  of  the  British  Administration.  Thi: 
was  rejected  by  the  Secretary  of  State  for  India  who  pointed  out  that 
the  Cripps  proposal  is  as  far  as  Great  Britain  will  go.   The  Crown 
Council  at  Delhi  considered  the  possibility  of  an  Allied  guarantee  of 
India's  independence  after  the  war  and  the  establishment  of-  an  interim 
Government  until  such  time. 

Iran  : 

The  Cabinet  has  resigned. 

U.S.A.: 

The  trial  of  8  arrested  German  agents  has  begun. 

In  the  opinion  of  Time  magazine,  the  training  of  American  pilots  lags 
behind  aircraft  production. 


4ssl6- 


CONFIDENTIAL 
31  Jul.  1942 

Conference  on  the  Situation  with  the  Chief,  Naval  Staff 

I.    The  Chief,  Naval  Staff  Quartermaster  Division  reports  on  his  re- 
port to  the  Fuehrer  about  the  problem  of  shipyard  workers.   (See  War 
Diary  of  29  Jul.,  Special  Items,  no.  II.)   The  Fuehrer,  referring  ex- 
pressly to  the  saving  of  lives,  of  Army  personnel  which  could  be 
achieved  by  submarine  warfare,  granted  in  full  all  of  the  proposed  de- 
mands.  It  will  thus  be  possible  to  provide  the  lacking  shipyard 
workers  required  for  all  of  the  0  items  on  the  priority  list  if  the 
order  already  issued  by  the  Fuehrer  to  the  Armed  Forces  High  Command  can 
be  carried  out  successfully.   The  Minister  of  Armaments  and  War  Pro- 
duction as  well  as  the  Deputy  for  Labor  will  be  heard  in  this  connec- 
tion by  the  Fuehrer  only  if  the  execution  of  the  above-mentioned  dir- 
ective should  run  into  difficulties. 

The  Fuehrer  also  stated  that  no  plans  are  to  be  submitted  for  battle- 
ships with  less  than  45  cm  guns.   The  Naval  Staff  highly  welcomes  this 
attitude  toward  the  battleship  problem.   The  Naval  Construction  Divi- 
sion has  been  informed  accordingly. 

The  Fuehrer,  moreover,  blames  the  Navy  for  the  fact  that  the  explosive 
hexogen  has  not  been  introduced  thus  far. 

The  Chief  of  the  Naval  Ordnance  Division  clarifies  the  situation,  show- 
ing that  industry  has  been  unable  to  deliver  the  new  explosive  in  the 
quantities  required  by  the  Navy.   The  Chief,  Naval  Staff  Quartermaster 
Division  is  ordered  to  give  the  Fuehrer  the  exact  facts  on  the  next 
occasion  on  the  basis  of  the  actual  documents.   It  would  also  be  very 
interesting  to  find  out  from  whom  the  Fuehrer  received  this  false  in- 
formation which  placed  the  Navy  in  a  bad  light. 

II.-  The  Chief,  Naval  Ordnance  Division  reports  on  various  new  regula- 
tions concerning  armament  and  on  the  construction  of  conrete  vessels  for 
which  a  special  commission  is  being  created.   It  is  discussed  whether 
it  would  be  desirable  to  increase  the  influence  of  the  Navy  by  changing 
the  Special  Board  for  Warship  Construction  (Sonderausschuss )  into  a 
Central  Board  (Hauptausschuss ) ;  the  Commander  in  Chief,  Navy  orders  the 
Chief,  Naval  Construction  Division  to  report  on  the  value  of  the  Board 
for  Warship  Construction. 

III.  The  Naval  Staff  Submarine  Division  is  directed  by  the  Commander  in 
Chief,  Navy  to  see  that  the  Second  Admiral,  Submarines  takes  up  his 
office  as  soon  as  possible  in  the  Diederichs  villa,  recently  purchased 
by  the  Navy.   Thus  the  ERWIN  iVASSHER,  used  at  present  as  living 
quarters,  will  become  available  as  a  target  ship. 


Special  Items: 

I.  The  Naval  Staff  Operations  Division  replies  to  the  inquiry  of  the 
Fleet  Commander  about  the  disposition  of  the  SCIIEER  (see  War  Diary  of 
21  Jul.  under  Norway).   See  l/Skl  I  op  1473/42  Gkdos.  Chefs,  in  War 
Diary,  Part  C,  Vol.  I. 

II.  The  original  suggestion  to  use  a  pocket  battleship  in  the  Kara  Sea 
v/as  made  in  the  Naval  Staff's  survey  of  the  situation  of  6  Mar.  1942, 
entitled  "The  Operations  of  Surface  Forces  in  the  Arctic  Ocean";  the 
prospects  for  successful  operations  were  emphasized  first  by  the  Naval 
Staff  on  5  May  and  subsequently  also  by  Group  North  on  2  Jun.   In  the 
course  of  preparing  for  them,  the  Chief,  Naval  Communications  Division 


-138*- 


CONFIDENTIAL 
31  Jul.  1942 

was  requested  to  examine  the  operational  possibilities  Tor  surface 
forces  in  the  eastern  Barents  Sea  and  the  waters  of  Novaya  Zemlya  on 
the  basis  of  reports  from  the  Radio  Communication  Intercept  Service; 
he  was  also  requested  to  survey  the  Russian  direction  finding  system. 
(See  War  Diary  of  19  Jun. ) 

On  27  Jul.  the  Chief,  Naval  Communications  Division  complied  with  the 
above  requests  and  submitted  the  evidence  which  indicates  that  a 
Russian  direction  finding  system  exists  in  the  Arctic  Ocean  to  the 
Operations  Division,  Naval  Staff,  with  copy  to  Group  North.   See  Ski 
Chef.  MND  1450/42  and  1458/42  Gkdos.  Chefs,  in  file  "Operation  SCHEER 
in  Kara  Sea,  Summer  1942". 

III.  The  Chief  of  the  Naval  Construction  Division  requested  the  Quarter- 
master Division,  Naval  Staff  to  submit  suggestions  regarding  the  fleet 
torpedo  boat  model  1942.   In  this  connection,  the  Chief  of  the  Opera- 
tions Division,  Naval  Staff  comments  as  follows:   The  1942  model  fleet 
torpedo  boat  is  between  a  torpedo  boat  and  a  destroyer  and  must  be  able 
to  maintain  a  speed  of  36  to  37  knots.   The  1942  model  is  the  first 
ship  of  this  type  to  be  equipped  with  motor  propulsion  and  therefore 
its  range  will  be  greatly  increased.   The  Chief,  Naval  Staff  Operations 
Division  expects,  moreover,  that  the  advances  made  and  the  experience 
gained  by  the  German  motor  manufacturers  will  make  it  possible  to  de- 
velop a  reliable  and  durable  propulsion  system  which  could  not  be 
achieved  with  high  pressure  steam  engines.   For  this  reason  alone  the 
Chief  Naval  Staff  Operations,  Division  consents  for  the  time  being  to 
the  development  of  the  proposed  type  in  spite  of  its  unsatisfactory 
speed  of  only  34  knots  and  other  deficiencies,  as  for  instance,  the 
unfavorable  ratio  between  armament  and  range  of  operation.   In  the 
future  development  of  this  type  the  speed  must  be  increased.   Only  the 
necessity  imposed  by  war  conditions  (restriction  of  the  use  of  copper) 
can  justify  building  the  new  1942  model  fleet  torpedo  boat  before  the 
preceding  model  has  been  tried  out.   The  Chief  Naval  Staff  Operations 
Division  therefore  suggests  starting  with  an  initial  order  of  3  or  4 
vessels  and  going  into  mass  production  only  after  these  have  been 
thoroughly  tested. 


Situation  31  Jul.  19  42 

I.    War  in  Foreign  Waters 

1.   Enemy  Situation: 

North  Atlantic: 

According  to  an  intelligence  report,  a  Newfoundland  convoy 
sighted  off  New  York  was  escorted  by  a  former  British  freighter  con- 
verted into  an  aircraft   carrier. 

Indian  Ocean: 

The  U.S.  steamer  SANTA  MONICA  gave  a  QQQ  signal  40  miles  east 
of  Durban.   All  ships  in  Africa  and  Australia  other  than  British  and 
American  are  reported  to  have  received  orders  to  proceed  to  the  U.S.A.; 
this  was  communicated  by  the  German  Naval  Attache  at  Buenos  Aires 
without  disclosure  of  origin.   The  northbound  convoy  reported  by  the 
Lourenco  Marques  Consulate  on  30  Jul.  as  being  escorted  by  the  MALAYA 
and  an  aircraft  carrier  was  sighted  on  27  Jul.;  it  consisted  of  65 
ships . 


43EJ8- 


CONFIDENTIAL l 
31  Jul.'  19  42 

2.    Own  Situation: 

Ship  "45'*  arrived  at  Kiel  for  the  completion  of  repairs. 

All  ships  in  foreign  waters  are  informed  by  Radiogram  0359  about  the 
raids  on  Hamburg,  which  are  being  played  up  by  enemy  propaganda. 

According  to  our  records,  the  ships  AUSONIA,  DERBYSHIRE,  and  V/ORCESTER- 
SHIRE,  mentioned  in  the  official  Australian  reports  (see  Y/ar  Diary  of 
28  Jul.),  were  already  sunk  in  September,  February,  and  April  1941  re- 
spectively. t  The  CARINTIIIA  was  sunk  as  early  as  1940.   It  must  there- 
fore be  assumed  that  the  Australian  documents  are  old  ones,  'or  else 
other  ships  have  been  given  those  names,  which  appears  unlikely. 

Information  concerning  this  fact  and  other  enemy  intelligence  is  trans-1 
mitted  to  all  ships  in  foreign  waters  by  Radiogram  0628. 


II.   Situation  West  Area 

1.  Enemy  Situation: 

According  to  an  intelligence  report  from  Liverpool,  t?he' KING- 
GEORGE  V  sailed  from  Liverpool  on  10  Jul.  after  completion  of  repairs. 

Preliminary  interpretation  of  an  aerial  photo  revealed  a  cruiser  in 
dock  at  Plymouth.   The  aircraft  carrier  reported  on  30  Jul.  turned  out 
to  be  a  merchant  vessel. 

2.  Own  Situation: 

Atlantic  Coast: 

2  ground  mines  were  swept  on  route  "Herz"  and  1  off  Le  Verdon 
and  1  on  the  approach  to  La  Pallice. 

Channel  Coast: 

During  the  night  of  30  Jul.  the  3rd  Torpedo  Boat  Flotilla 
transferred  to  Cherbourg,  and  the  5th  PT  Boat  Flotilla  to.  Boulogne; | the 
2nd  PT  Boat  Flotilla  reconnoitered  the  area  Cherbourg-Guernsey.   During 
the  night  of  31  Jul.  the  2nd  PT  Boat  Flotilla  is  to  be  transferred  from 
Guernsey  back  to  Cherbourg,  12  vessels  of  the  4th  and  5th  PT  Boat 
Flotillas  will  be  transferred  from  Boulogne  to  Guernsey,  and  4  to 
Cherbourg.   In  addition,  the  8th  Mine  Sweeper  Flotilla  will  be  shifted 
from  Le  Havre  to  Cherbourg. 

The  5th  PT  Boat  Flotilla  had  a  brush  with  3  enemy  PT  boats  directly  off 
Boulogne  at  0305,  in  the  course  of  which  an  enemy  vessel  was  probably 
damaged;  none  of  our  vessels  suffered  damage  or  casualties.   For  short 
report  see  Telegram  1740. 

At  1540  15  to  20  enemy  planes  operated  over  the  area  Le  Touquet-Plage 
de  Quend.   At  1900  St.  Malo  was  raided;  steamer  H2  was  damaged  and  had 
to  be  beached. 


-|38J9- 


CONFIDENTIAL 
31    Jul.    1942 

i 

III.  North  Sea,  Norway,  Arctic  Ocean 

1.  North  Sea; 

Enemy  Situation; 

Reconnaissance  planes  sighted  8  medium  sized  steamers  at 
anchor  off  Great  Yarmouth.   Lively  patrol  activity  was  observed  between 
Folkestone  and  Margate. 

Own  Situation: 

Mining  operation  "Alba"  was  executed  according  to  plan.  Dur- 
ing the  night  of  30  Jul.  a  German  convoy  was  vainly  attacked  with  bombs! 
and  1  torpedo  by  enemy  planes  in  quadrant  AN  8312.--A  patrol  boat  had"  & 
half -hour  engagement  with  3  enemy  PT  boats  in  quadrant  AN  8558,  ap- 
parently without  result  on  either  side. 

Ground  mines  were  swept  off  Schiermonnikoog  and  again  off  Egmond-aan- 
Zee.   Channel-sweeping  and  convoy  operations  in  the  area  of  the  Com-  ( 

manding  Admiral,  Defenses,  North  Sea  proceeded  according  to  plan.  Min- 
ing operation  "Alba"  will  be  continued  during  the  night  of  31  Jul. 

In  the  afternoon  enemy  planes  were  active  over  the  area  east  of  Emden. 
German  fighters  encountered  no  enemy  planes.   Enemy  reconnaissance 
planes  flew  over  the  German  coastal  area. 

On  21  Jul.  the  British  Government  reiterated  its  warning  not  to  fre- 
quent the  waters  of  the  North  Sea,  the  English  Channel,  and  the  Bay  of 
Biscay,  referring  to  the  area  declared  on  18  Mar.;  this  v/arning  moti- 
vated the  Danish  Government  to  issue  an  urgent  appeal  through  the  In- 
spector of  Fishing  to  all  Danish  trawlers  operating  in  t  he  North  Sea  tc 
put  into  port  on  23  Jul.   This  step,  had  been  previously  approved  by 
the  German  plenipotentiary.   The  Naval  Staff  informed  Group  North,  the 
Commanding  Admiral,  Norway  and  Group  West  accordingly  and  also  notified 
the  Naval  Representative  on  the  Operations  Staff,  Armed  Forces  High 
Command, 

2.  Norway  and  Arctic  Ocean; 

Enemy  Situation;  (  ( 

According  to  an  intelligence  report,  preparations  for  the 
assembly  of  a  convoy  to  Murmansk  or  Archangel  are  being  made.   5  or  6 
older  cruisers  are  said  to  be  camouflaged  as  freighters  and  the  larger 
freighters  are  to  be  equipped  with  anti-torpedo  nets.   The  sailing  will 
probably  take  place  soon  after  8  Aug. 

Own  Situation: 

On  29  Jul.  there  was  some  enemy  air  activity  over  the  Arctic 
and  northern  coastal  areas  and  bombs  were  dropped  on  Vardoe  without 
causing  damage.   Convoy  operations  in  the  area  of  the  Commanding  Ad- 
miral, Norway  proceeded  according  to  plan. 

In  view  of  operation  "V/iesengrund",  the  Commanding  Admiral,  Norway  re- 
quests permission  to  lay  a  minefield  by  the  middle  of  September,  to  ex- 
tend from  69°  44.75'-  N,  31°  20.7'  -E  to  69°  42.3'  N,  31°  32.8'  E.    For 
details  see  Telegram  1820. 


f3<}0- 


CONFIDENTIAL 
51  Jul.  1942 

The  anti-torpedo  net  defense  in  the  inner  Skjomen  Fjord  will  probably 
be  completed  by  8  Aug.,  following  completion  of  the  third  net  enclosure 
in  Bogen  Bay  on  3  Aug. 

Regarding  the  executive  order  of  Group  North  for  the  transfer  of  the 
6th  PT  Boat  Flotilla  to  Germany  see  Telegram  1043. 

As  directed  by  Group  North,  the  22nd  Mine  Sweeper  Flotilla  will  proceed 
to  Norway  following  the  completion  of  minefield  No.  3  in  the  southern 
North  Sea. 

The  5th  I.Iine  Sweeper  Flotilla  will  return  to  Germany  for 
shipyard  overhaul  at  about  the  same  time.   This  exchange 
conforms  to  the  Grouo's  plans  as  approved  by  the  Naval 
Staff. 


IV.   Skagerrak,  Baltic  Sea  Entrances,  Baltic  Sea 

1.  Enemy  Situation; 

The  Military  Attache  at  Budapest  relayed  the  following  in- 
telligence report  from  Stockholm  dated  12  Jul.:   Submarines  leaving 
Kronstadt  are  under  orders  to  harass ■ German  shipping  until  their  tor- 
pedoes are  exhausted  and  to  put  into  Swedish  ports  if  unable  to  break 
through  to  the  British  Isles.   They  are  to  evade  capture  by  Germany 
under  all  circumstances. 

2.  Own  Situation: 

Convoy  and  patrol  activities  in  the  area  of  the  Commanding 
Admiral,  Defenses,  Baltic  Sea  proceeded  according  to  plan  without 
major  Incident. 

The  Air  Force  General  attached  to  the  Commander  in  Chief,  Navy  entrust* 
Commander  Kamp  of  the  Naval  Air  Reserve  Training  Group  (Fl.  Erg.  Gr.  Se|c ) 
with  air  protection  for  the  transfer  of  dock  Bruno.   For  order  see 
Telegram  1444. 

Naval  Station,  Baltic  requests  that  the  Commander  in  Chief,  Air  Force 
be  asked  to  extend  the  area  of  fighter  protection  at  least  to  the  lati- 
tude of  the  southern  tip  of  Bornholm,  since  the  present  range  extending 
only  as  far  as  Gjedser  is  considered  inadequate. 

The  Naval  Staff  will  comply  with  this  request. 

Mine-sweeping  activities  in  the  area  of  the  Commander,  Mine  Sweepers, 
Baltic  Sea  were  hampered  by  the  weather.   The  mine-laying  operations 
"Seehund  1"  and  "Na shorn  12"  are  scheduled  for  1  Aug.   Convoys  proceeded 
according  to  plan. 

The  Commanding  Admiral,  Baltic  Countries  requests  that  the  crews  of  the 
5  withdrawn  Arado  squadrons  be  supplied  with  planes  equipped  for  instru 
went  flying,  in  view  of  the  lengthening  nights  and  frequent  fogs;  6 
planes  are  required  for  the  eastern  and  3  for  the  western  sector  of  the 
area.   The  Commanding  Admiral,  Baltic  Countries  considers  sea  planes 
with*  trained  crews  indispensable  in  view  of  past  experiences.   Group 
North  supports  this  request  emphatically.   (See  Telegram  1410  and  19  V).) 
The  Naval  Staff  will  approach  the  Operations  Staff ,  Air  Force  n   ■; 
matter. 


49*- 


CONFIDENTIAL 


51    Jul.    1942 


Group  North  reports  that  the  Cellarius  group  was  placed  under  the 
operational  command  of  the  Commanding  Admiral,  Baltic  Countries,  v/ho 
will  consult  with  the  Commander,  Mine  Sweepers,  Baltic  Sea  and  the 
Finnish  Naval  Staff  regarding  its  commitment.   Code  name  "Iwankonning 


V.    Merchant  Shipping 

1.   The  British  Admiralty  announced  that  a  total  of  6,178,681 
GRT  of  German  and  Italian  merchant  vessels  were  seized,  sunk,  or  damaged 
up  to  30  Jun.  1942;  this  figure  does  not  include  losses  inflicted  by 
the  Russians  which  are  estimated  at  750,000  GRT f  nor  the  44  German  and 
Italian  ships  totalling  256,079  GRT  tied  up  in  Central  or  South  Ameri-f 
can  ports,  the  use  of  which  the  Axis  Powers  are  deprived  of.  Neither 
are  the  losses  inflicted  on  the  Japanese  merchant  marine  included  in 
the  above  figure.  • 

Actually,  German  losses  up  to  31  Hay  1942  amount  to  a  total  of  565 
ships  of  1,659,118  GRT;  of  these,  514  vessels  totalling  1,456 ,'820  GRT 
were  lost  due  to  enemy  action,  29  with  88,386  GRT  due  to  accidents, 
while  22  ships  of  135,912  GRT  were  either  sold  or  scrapped.   Exact 
figures  of  the  losses  suffered  by  the  Italian  merchant  marine  are  not 
available.   However,  even  the  addition  of  the  Italian  losses  would  not 
nearly  approximate  the  figure  given  by  the  enemy. 


:ording  to  Japanese  observations,  20  Russian  ships  carried 
of  material  to  Vladivostok  since  January  1942.   The 


2.    Acci 
113,124  tons 
cargoes  consisted  exclusively  of  foodstuffs. 


VI.   Submarine  Warfare 

1.  Enemy  Situation: 

Enemy  planes  reported  attacks  on  2  submarines  with  depth 
charges  approximately  200  miles  south  of  Reyk janes,  scoring  one 
probable  hit.   Another  plane  reported  sighting  a  periscope  160  miles 
southwest  of  Jan  Ilayen.   Lively  reconnaissance  activity  also  over  the 
Bay  of  Biscay  between  8°  and  12°  W.   The  U.S.  steamer  AMERICAN  BUILDER 
observed  a  suspicious  looking  reflection  of  fire  about  450  miles  west 
of  Freetown. 

A  number  of  reports  concerning  the  sighting  of  submarines  were  inter- 
cepted from  off  the  American  East  Coast  and  from  the  West  Indies. 

2.  Own  Situation : 

The  "Nebelkoenig"  group  consisting  of  7  submarines  stationed 
between  Iceland  and  Jan  Mayen  was  assigned  to  a  zone  of  operations  30 
miles  across  in  each  of  the  quadrants  AA  89,  AA  97,  AE  22,  and  AE  23. 

Submarine  U  "601"  is  returning  to  Kirkenes  from  quadrant  AT  4855  via 

AT  74.  "  ■ 

Contact  with  the  convoy  located  in  quadrant  BD  12  was  lost  since  our 
submarines  were  driven  off  by  the  destroyer  escort.   Contact  could  not 
be  reestablished  during  the  day.   The  fi  submarines  operating  awinst 


-M- 


CONFIDENTIAL' 
31;  Jul.  1942 

this  convoy  were  combined  into  the  "Pirat"  group  and  ordered  to  take  up 
positions  at  0900  of  1  Aug.  on  a  line  extending  from  quadrant  BC  5-395 
to  quadrant  BC  5979. 

Group  "Wolf"  was  dissolved.   After  refueling,  its  boats  are  to  join  the 
"Pirat"  group  and  occupy  the  gaps  in  the  patrol  lines  held  by  "Pirat". 

Contact-- w 3«th  the  convoy  spotted  by  submarine  U  "132"  south  of  Nova 
Scotia  could  not  be  reestablished.   Submarine  U  "754"  reports  sinking 
a  modern  fishing  steamer  by  gunfire  in  quadrant  BB  7768  on  28  Jul. 
Submarine  U  "600"  encountered  17  drifting  mines  in  the  Iceland  Passage. 

Additional  reports  in  Supplement  to  Submarine  Situation  in  War  Diary, 
Part  B,  Vol.  IV. 


VII.  Aerial  Warfare 

1.  British  Isles  and  Vicinity; 

Armed  reconnaissance  off  the  English  coast  had  no  important 
results.  German  fighters  shot  down  17  enemy  planes  during  a  raid  on 
v/est  German  territory. 

A  bombing  raid  on  Tynemouth  was  carried  out  with  observed  good  results. 
A  small  force  raided  Hull  during  the  night  of  31  Jul.   During  the  same 
night  strong  enemy  forces  penetrated  into  German  and  Danish  territory. 
The  attack  centered  on  Duesseldorf  and  caused  very  considerable  damage. 
For  details  see  daily  situation  report.   19  attacker's  were  destroyed. 

2.  Mediterranean  Theater: 

3  enemy  planes  were  shot  down  in  raids  on  Malta.   Other 
missions  included  reconnaissance  and  escorting  of  North  African  supply 
convoys.   The  Air  Commander,  North  Africa  reported  1  Wellington • shot 
down  by  free-lance  fighter  patrols.   Anti-aircraft  artillery  shot  down 
1  plane  during  an  enemy  raid  on  Tobruk.   The  2  anti-aircraft  regiments 
v/ith  the  African  Corps  reported  101  enemy  planes  shot  down  since  26  Mayr 

i 

3.  Eastern  Front; 

Our  planes  attacked  shipping  on  the  Volga  River.  Otherwise 
nothing  to  report. 


VIII.  Warfare  in  the  Mediterranean  and  the  Black  Sea 

1.   Enemy  Situation,  Mediterranean: 

The  EAGLE,  CIIARYBDIS  and  a  number  of  destroyers  held  maneu- 
vers lasting  a  few  hours  east  of  the  Strait  of  Gibraltar.   The  Italian 
Navy  reports  that  submarines  were  located  off  Pola,  on  the  western 
Peloponnesian  coast  and  north  of  Bomba  Gulf. 


-m- 


CONFIDENTIAL 
31  Jul.  1942 

Photo  reconnaissance  of  Valletta  revealed  2  destroyers,  2  submarines, 
2  patrol  vessela,  2  mine  sweepers,  and  2  steamers  in  the  harbor. 

No  reconnaissance  reports  have  been  received  from  the  eastern  Medi- 
terranean. 

2.  Own  Situation,  Mediterranean: 

Only  2  German  PT  boats  are  ready  for  operations  at  Marsa 
Matruh. 

Strong  enemy  forces  raided  Tobruk  during  the  night  of  30  Jul.  without 
damage  to  harbor  installations.   PT  boat  S  "GO"  which  had  to  be  dis- 
missed from  Marsa  Matruh  on  30  Jul.  on  account  of  engine  trouble 
arrived  at  Suda  on  the  v/ay  to  Italy. 

3.  Transport  of  Supplies  to  North  Africa; 

An  Italian  transport  submarine  arrived  at  Tobruk  on  30  Jul. 
Other  transport  operations  on  schedule.   1,331  tons  of  material  were 
unloaded  at  Tobruk  on  30  Jul. 

4.  Area  Naval  Group  South: 

Aegean  Sea: 

No  situation  report  was  received  due  to  interruption  of 
communicatione. 

Black  Sea: 

Enemy  Situation: 

During  the  night  of  29  Jul.  and  on  30  Jul.  enemy  planes 
dropped  bombs  and  strafed  targets  in  the  Kerch  area. 

Own  Situation: 

4  boats  of  the  1st  PT  Boat  Flotilla  with  the  Commanding  Ad- 
miral, Black  Sea  on  board  arrived  from  Constanta  at  Ivanbaba.   The 
Admiral' s-  operations  staff  is  moving  to  Kerch. 

The  transfer  of  naval  barges  from  Constanta  and  Balaklava  to  the  east 
has  begun. 

Due  to  weather  conditions,  3  Italian  submarines  returned  to  Constanta} 
2  Italian  PT  boats  left  Sulina  in  an  easterly  direction. 

The  new  Yalta  minefield  was  completed  on  29  Jul.   A  17  cm  battery  at 
Cape  Takil  at  the  western  entrance  to  Kerch  Strait  is  ready  for  action, 

Convoy  operations  proceeded  according  to  plan. 

i 

As  reported  by  Group  South,  the  Turks  definitely  established  the 
presence  of  a  deep  anti-submarine  minefield  in  front  of  the  entrance 
to  the  Dardanelles.   Turkish  political  circles  are  said  to  be  con- 
vinced that  it  is  a  German  barrage  violating  Turkish  sovereignty.  The 
British  adviser  to  the  Turkish  submarine  arm  reportedly  took  part  in 
the  investigation. 


■13914- 


CONFIDENTIAL 


31  Jul.  1942 


In  this  connection  it  is  reported  by  Group  South  that  the  German  miner 
field  was  definitely  laid  outside  of  Turkish  territorial  waters,  since 
the  Turkish  light  beacons  were  in  full  operation.   In  the  Group's 
opinion  Turkey  should  be  reminded  of  the  fact  that  the  Aegean  Sea  was 
declared  a  zone  of  operations  and  should  be  notified  through  diplomatic 
channels  that  the  sweeping  of  German  mines  in  the  zone  of  operations 
and  beyond  Turkish  territorial  waters  v/ill  not  be  tolerated;  such 
action  constitutes  interference  with  and  restraint  on  German  warfare. 

Group  South  requested  the  Naval  Attache  at  Istanbul  to  find  out  the 
exact  place  where  the  Turkish  submarine  ATTILA  was  sunk. 

The  Commanding  Admiral,  Aegean  Sea  was  instructed  by  Group  South  to 
call  attention  to  the  German  declaration  of  the  existence  of  a  zone  of 
operations  if  and  when  it  is  observed  that  the  Turks  engage  in  mine- 
sweeping  outside  their  territorial  waters,  and  to  demand  cessation  of 
such  activities.   He  is,  however,  not  to  use  force  but  to  report  the 
Turkish  attitude.   (See  Telegrams  1330  and  1830.) 

The  Chief  of  the  Quartermaster  Division,  Naval  Staff  conferred  with 
the  Chief  of  the  Air  Force  General  Staff  concerning  assistance  to  be 
rendered  by  the  Air  Force  in  getting  naval  barges  through  the  Kerch 
Strait.   The  protection  requested  will  be  furnished.   The  4th  Air 
Force  will  take  the  necessary  steps.   Group  South  is  informed  of  the 
above  by  Telegram  1717. 

Regarding  an  inquiry  of  Group  South  as  to  the  assignments  for  small 
coastal  mine-laying  craft  and  the  completion  of  the  auxiliary  patrol 
vessels  under  construction  in  the  Aegean  Sea  see  Telegrams  2015  and 
1831.   This  matter  v/ill  be  attended  to  by  the  Quartermaster  Division, 
Naval  Staff. 


IX.   Situation  East  Asia 

The  press  reports  fighting  of  extreme  violence  in  the  interior  of 
Hupei  Province. 

It  is  reported  from  Chungking  that  Japan  has  1,132,000  men,  equal  to 
75-|-  divisions,  deployed  in  China,  Soj*   divisions  in  Manchukuo  and  2 
divisions  in  Korea. 


X.   Army  Situation 

1.   Russian  Front; 

Army  Group  A; 

In  the  northern  Caucasus  we  have  reached  Aleksandrovsk;  tank 
forces  have  crossed  the  Yeya  River.   Southwest  of  Salsk  the  railroad 
Krasnodar-Stalingrad  was  reached  at  Peshanokopskoye  and  was  crossed 
by  other  tank  units  on  either  side  of  Salsk.   Units  advancing  from  the 
bridgeheads  of  Nikolayevsk  and  Tsymliansk  broke  through  enemy  defense?1 
and  reached  the  area  north  of  the  Sal  River. 


J-3^5- 


31  Jul.  1942 


CONFIDENTIAL 


Army  Group  B; 

South  of  Chirskaya  the  enemy  attacked  an  infantry  division 
with  3  regiments  and  brought  up  reinforcements  into  the  areas  north 
and  west  of  Kalach.   Attacks  on  our  spearheads  were  repulsed.   Further 
to  the  north,  encircled  enemy  forces  tried  to  break  through  to  the 
east,  but  were  halted  by  converging  attacks  of  German  infantry  and 
tanks.   An  enemy  tank  attack  in  the  Don  River  bend  northeast  of 
Pleskaya  was  repulsed.   The  enemy  attacked  unsuccessfully  northwest 
of  Kazansk.   The  8th  Italian  Army  deployed  in  the  area  Starobelsk- 
I.Iillerovo-Voroshilovgrad  advanced  in  a  northeasterly  direction.   In 
the  Voronezh  area  and  north  of  it  heavy  artillery  fire  and  strong 
enemy  troop  concentrations. 

Central  Army  Group: 

An  enemy  attack  following  an  artillery  barrage  between  Kiro^ 
and  Sukhiniehi  was  repulsed.   Continual  rain  caused  flooding  of  de- 
fense positions  and  quarters  of  the  3rd  Panzer  Army.   East  and  north 
of  Rzhev  the.  enemy  tried  to  widen  the  point  where  he  had  penetrated 
our  defenses  and  brought  up  tanks  under  cover  of  fog  to  our  positions 
northwest  of  Rzhev.   Also  in  the  Byeloi  area  and  at  our  new  lines 
south  of  the  Dvina  River  at  Velizh  enemy  attacks  resulted  in  de- 
fensive fighting. 


Northern  Army  Group: 

The  enemy  was  repulsed  with  heavy  losses  in  front  of  the 
Spanish  Division  north  of  Lake  Ilmen.   He  succeeded,  however,  by 
massed  attacks  in  penetrating  on  a  narrow  front  into  our  bridgehead 
south  of  Soltsy.   A  counterattack  is  in  progress.   Enemy  troop  con- 
centrations south  of  Leningrad  were  taken  under  gunfire. 

2.  Finnish  Front ; 

Nothing  of  Importance  to  report. 

3.  North  Africa: 

No  situation  report  has  been  received. 


■5KHHHHHKHHKHHHHHHHKKHHWHH5- 


-$9j- 


cohfieemtial 
glossary 

Alba 

Cover  name  for-  minefield  SW  107  laid  between  S20  47'  N,  03°  17'  E 
and  52°  53'  N,  03°  13'  E. 

Anton 

Code  n&iBe  for  the  operation  to  seize  unoccupied  France  in  coopera- 
tion vith  Italian  forces. 

Ajuerhflhn 

Cover  name  for  transfer  of  the  KOELN  and  ECKOLDT  from  Kristiansand 
South  to  Trondhelm  escorted  by  destroyers  IHN  and  Z  "24".  ' 

Earbarossa 

Cover  name  for  the  invasion  of  the  U.S.S.F.  begun  in  19^'j.. 

Bluecher 

Cover  name  for  the  crossing  of  the  Kerch  Strait  by  German  forces 
and  capture  of  the  eastern  shore. 

» 

Brahma 

Cover  name  for  minefield  laid  between  490  56.4'  N,  00°  27. 7?  W  and 
49°  58'  N,  000  21.7'  W. 

Cerberus 

Code  name  for  the  operation  involving  the  transfer  of  the  SCHARN- 
HORST,  GNEISENAU,  and  PRINZ  ETJGEN  through  the  Channel  in  February 
19^2. 

Duesseldorf 

German  reference  point  on  route  "Gelb",  located  at  24°  00'  S,  99° 

00*  E. 

Dahlem 

German  code  name  for  Sunda  Strait  in  reference  to  route  "Gelb". 

Eispalast 

Operation  against  convoys  PQ  18  and  QP  14. 

EMC 

Standard  mine,  type  C;  a  contact  mine  agamst  surface  vessels. 

EMF 

Standard  mine  type  F;  a  moored  influence  mine. 

Etappe 

Secret  German  naval  organization  for  providing  German  naval  units 
with  information  and  supplies  from  foreign  bases.  Etappe  Japan 
was  of  great  importance  for  German  blockade-running  activities. 

Feuerzauber 

Code  name  for  the  planned  capture  of  Leningrad  by  the  Northern 
Army  Group  early  in  September  19^2. 

Gruen 

Code  name  for  minefield  laid  between  50°  13-5'  M,  00o  26 »  40"  E 
and  500  15»  N,  00©  32.5*  E. 

Herkules 

Code  name  for  the  planned  capture  of  Malta  in  cooperation  with 
Italian  forces. 


-397- 


CONFIDENTIAL 

Rasper,  Kaspar 

Code  name  for  mine  laying  operation  by  the  KAISER,  ULM,  and  BRTJMMER 
involving  minefields  SW  9,  10,  and  11  in  the  North  Sea.   560  EMC, 
100  cutter  floats,  and  400  explosive  floats  were  used. 

Kirschbluete 

German  cover  name  for  voyage  of  Japanese  submarine  I  30  to  Europe. 
The  submarine,  under  Commander  Endo,  left  Japan  the  middle  of  April 
and  arrived  in  Lorient  in  the  beginning  of  August.  She  crossed  the 
equator  on  18  Jul.  at  20o  w.  she  had  expected  to  reach  Prance  in 
the  middle  of  July  but  was  delayed  en  route. 

Kobold 

Cover  name  for  minelaying  operation  by  the  KAISER  and  the  ULM  in- 
volving minefields  SW  7  and  8  in  the  North  Sea.  440  EMC  and  400 
explosive  floats  were  used. 

Kunigunde 

Code  name  for  minelaying  operation  and  minefields  XHIa  a,nd  b  in 
the  Skagerrak.  The  operation  was  carried  out  by  the  KOELN,  El, 
and  minesweeper  M  1907. 

• 

Lachs 

Code  name  for  minefields  laid  in  the  coastal  island  waters  north  of 
Hogland  in  the  Eastern  Baltic  Sea. 

Lachs fang 

Code  name  for  operation  by  the  20th  Mountain  Army  and  the  5th  Air 
Force  to  capture  the  Murman  railroad  at  Kandalaksha  in  an  attempt 
to  cut  Russia's  supply  lines; 

Mark  XVI 

A~l$ritish  contact  mine.  It  consists  of  a  center  belt  4  1/2  inches 
wide  and  two  hemispheres  40  inches  in  diameter,  which  are  welded 
to  the  former. 

Na shorn 

Code  name  for  a  series  of  German  mine  barrages  designed  to  keep 
Russian  submarines  from  breaking  out  of  the  Gulf  of  Finland  into 
the  Baltic  Sea.  They  extended  from  Nargen  on  the  Estonian  side  to 
Porkkala  on  the  Finnish  side. 

News  Analysis  "Foreign  Navies"  (Nachrichtenauswertung  "Fremde  Marinen") 
A  daily  analysis  of  foreign  newspaper  reports  concerning  foreign 
naval  news,  compiled  by  the  Naval  Staff  Intelligence  Division 
(3/Skl). 

Political  Review  (Politische  Uebersicht) 

A  daily  review  of  political  developments  abroad  published  by  the 
Naval  Staff  Intelligence  Division  (Vskl). 


P£ 


Designation  of  convoys  proceeding  eastward  from  the  United  Kingdom 
to  northern  Russia. 


Putra 

Cover  name  for  minefield  laid  between  490  51.9'  N,  00O  33. f*   W  and 
49°  53.7'  N,  00O  27.9*  W. 

QQQ  signal 

Distress  signal  sent  by  ship  when  sighting  or  under  attack  by  armed 
raider.  QQQ  was  also  used  when  suspicious  merchant  vessels  were 


sighted. 


-398- 


CONFIDENTIAL 

Designation  of  convoys  returning  to  the  United  Kingdom  from  northern 
Russia. 

Rack  mine,  type  A 

Tne  German  TMA  mine.  A  moored  influence  mine  dropped  from  a  specially 
constructed  minelaying  submarine.  Its  charge  weighed  approximately 
350  kilograms.  This^Toine  was  designed  for  waters  of  50  m.  to  300  m. 
depth. 

Reseda 

Cover  name  for  minefield  laid  between  50°  20  •  N,  00°  3**'  40"  E  and 
50°  17'  20"  N,  00°  30*  40"  E. 

Rhein 

Cover  name  for  minefield  laid  between  50°  34'  N,  00°  58'  E  and 
50o  31. 5»  N,  00O  51 t  e. 

Roesselsprung 

Code  name  for  operation  against  convoy  PQ  17. 

Rose 

One  of  the  names  for  reference  point  1  on  route  "Gelb",  located 
at  24o  00'  S,  99°  00'  E. 

Route  "Anton" 

A  German  shipping  route.  Its  geographical  borders  were:  The 
French  coast  at  47°  30'  N;  47°  30'  K,   29°  W;  43°  N,  400  W;  37©  H, 
40©  W;  continued  on  37°  N;  the  southern  and  eastern  borders  of 
route  "Anton"  were  defined  by  the  borders  of  the  operations  zone 
of  the  submarines  in  the  South  Atlantic. 

Route  "Gelb " 

Route  taken  by  German  vessels  to  Japan,  via  Indian  Ocean  and  Sunda 
Strait.  The  points  touched  on  this  route  are  given  below,  with 
their  usual  designations.  On  occasion  the  designations  for  these 
points  were  changed. 

1.  "Duesseldorf " 

2.  "Dahlem" 

3.  "Danzig" 

4.  "Darmstadt" 

5.  "Duisburg" 

6.  "Doeberitz" 

Route  "Rollbahn" 

This  route  touched  the  following  points: 

Saale 

Altmuehl  - 
Regen 
Hunte 

Persante  - 
Neckar 

RRR  signal 

Distress  signal  sent  by  ships  when  sighting  or  under  attack  by 
enemy  warship. 

Saale 

A  German  reference  point  in  the  Indian  Ocean.  It  was  located  at 
24o  s,  99°  E. 


-399- 


24® 

00 ' 

s, 

99°  < 

)0» 

E 

Sunda  Strait 

09°  15* 

H, 

110° 

30* 

E 

20° 

50' 

N, 

120° 

00  ■ 

E 

26° 

00' 

H, 

128° 

40» 

E 

34° 

00' 

N, 

139°  50' 

E 

24° 

00' 

s. 

99°  < 

D0« 

E 

Sunda  Strait 

09°  15 f 

N, 

110° 

30* 

E 

20° 

50' 

N, 

120° 

00 » 

E 

26° 

00 » 

N, 

128°  40' 

E 

34° 

00  ■ 

H, 

139° 

50' 

E 

CONFIDENTIAL 

Satan 

Code  name  for  nine  laying  operation  carried  out  by  the  KAISER  and 
the  ULM.  The  barrage  laid  vas  SV  6  in  the  North  Sea.  250  EMC 
mines,  400  explosive  floats  and  200  cutter  floats  were  used. 

Sauna 

""Minefield  in  the  eastern  Baltic  Sea. 

SC  bombs 

Thin- she 11  high  explosive  bombs. 

Schubert 

German  reference  point  located  at  25°  S,  220  w. 

Seeigel 

Code  name  for  German  minefield  from  the  island  of  Aspoe  to  600  o4»  N, 
270  09*  E j  590  54 f  N,  270  20.5'  E,  via  Vigrund  to  Cape  Kurgalski. 

Seeloeve 

Cover  name  for  the  planned  invasion  Of  England. 

Siebel  ferry 

A  double-hull  ferry  boat  developed  by  Special  Command  Siebel 
(Sonderkommando  Siebel).   It  consisted  of  two  steel  hulls  connected 
by  means  of  wooden  platforms;   there  was  a  turret  in  the  center. 
The  Siebel  ferry  could  be  used  as  a  gun  platform,  troop  carrier,  or 
supply  carrier. 

SMA_mine 

Rack  mine,  type  A.  A  moored  influence  mine  dropped  from  a  specially 
constructed  minelaying  submarine.  'Its  charge  weighed  350  kilograms. 
This  mine  was  designed  for  waters  of  50  m.  to  300  m.  depth. 

SSS  signal 

Distress  signal  sent  when  sighting  or  under  attack  by  a  submarine; 
could  also  indicate  being  damaged  by  a  mine. 

Standard  mine,  Type  C 

EMC,  a  contact  mine  against  surface  vessels. 

Standard  Mine,   trrae  F 


ard  Mine,  type  F 

EMF,  a  moored  influence  mine. 


Stein 

"Code  name  for  minefield  laid  between  50©  29'  N,  00°  43*  E  and  50© 
29»  N,  00O  51 »  E. 

Thusnelda 

Code  name  for  minefield  6a  of  the  Vestwall  barrage  laid  by  the 
ROLAND  in  the  North  Sea. 

Type  VII  C 

A  500  ton  sea- going  submarine.  It  was  67*1  meters  (221.43  ft.) 

in  length,  had  diesel-electric  propulsion,  and  wad  armed  with  4  bow 

tubes  and  one  stern  tube. 

Type  3XC 

A  740  ton  ocean-going  submarine  of  earlier  construction.  It  was 
76.76  meters  (237.18  ft.). in  length,  had  diesel-electric  propulsion, 
and  was  armed  with  4  bow  tubes  and  two  stern  tubes. 

Type  X  B 

A  1600  ton  minelaying  submarine.  It  was  89.8  meters  (296.3^  ft). 

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CONFIDENTIAL 

in  length  and  had  normal  diesel-electric  propulsion.   It  vaa 
equipped  with  30  nine  shafts  and  tvo  stern  torpedo  tubes. 

Walter  submarine 

Submarine  designed  by  the  Walter  firm,  Kiel,  distinguished  by  the 
addition  of  a  turbine  drive  to  the  standard  Diesel  and  electrical 
drives.  The  turbines  were  to  be  driven  by  a  fuel  obtained  from 
the  decomposition  of  hydrogen  peroxide  and  were  to  give  the  sub- 
marine a  high  underwater  speed.  The  hull  was  completely  streamlined, 

Westwall 

A  system  of  mine  barrages  in  the  North  Sea  and  off  the  coast  of 
Norway.  Geographically  it  constituted  an  extension  of  the  Westwall 
fortifications  on  land. 

Wiesengrund 

Cover  name  for  the  planned  capture  of  Rybachi  Peninsula. 

Zaunkoenlg 

Code  name  for  minelaying  operation  and  minefield  extending  from 
490  53.9'  N,  OOo  51.9*  W  to  49o  56.4'  N,  OOo  37.9'  W. 


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