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Full text of "War diary : German Naval Staff Operations Division"

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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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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 Ma tters 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 
Alexandria 1 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 "23 s 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 

l a 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 "202 n 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 "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 
H 97 fl 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 Front s! 

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. Battleshi ps 
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 d 1 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 "88 Y ' 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 d 1 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 Review 4 No. 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 Sea t 
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 "a 11 , 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 a b", 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 H 24", 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 H 251" 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,. 



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CONFIDENTIAL 



4 Jul. 1942 



V. Submarine Warfare 

1. Enemy Situation s 

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. 



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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- 



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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 "10 rt . 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 65 s . 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 



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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. 



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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. 



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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. 



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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. 



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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. 



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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. 



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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 



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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. 



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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 B U enos 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). 



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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. 



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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". 



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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. 



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CONFIDENTIAL 
6 Jul. 1942 

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

l a 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. 



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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. 



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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. 



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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. 



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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. 



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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 



-97- 



CONFIDENTIAL 



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 a traff 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 



-98- 



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. 



-99- 



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 "10 M 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 



-101- 



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 Coast s 

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. 



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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. 



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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 



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CONFIDENTIAL 
7 Jul. 1942 



and to proceed thereafter to an assigned position at the entrance 
to the White Sea. Submarine U "88 M 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 Situation s 

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 



107- 



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 X M 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 Sea t 

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

Black Sea t 

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. 



-110- 



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 units x 
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- 



-113- 



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 w 23 w 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 Situation s 

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 tha 4 : 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 n 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. 



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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 : Jul e 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°58.8 S E to 64°36.95 f N, 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?^^ f She^si a a-sd^-SHE'S^ 

2552 i8 -rr Ch 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 t S at after the Dad experiences 
when the Americans had charge of convoy PQ 17 the 

S^S^fS 11 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 

oesL e o ^rZlVnavrieViSSie 6 ^HFttT 2 * *^ «- 

zone of operations CJoSSn, r f thrust be y° nd the Planned 

of Ifst 2"" 1 * Si T no% a no U :ore e t T £„ P rout S Sff nf clnvoy . V SK""* 

oe in p^L?v e ; %£?&&& ^iit^'o? FFr ; % a 

area. (See Telegram 1549.) 7 BCa ttered over a very wide 

£t e nn? ta ^ r °^ 5 JU1 * wnich are befor * the Naval Staff 
tSzSSatSS'th?? Bu< * ^^ocal justification lor 

Ch™f Navfl sL?? e 2?i 10n - 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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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 on 4 



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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 H 503 H , 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 



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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* 

************************* 



( 



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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 



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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. 



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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. 



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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 



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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. 



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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. 



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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 
"SSI 1 * 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. 



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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 n 90". 

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. 



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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. 



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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. 



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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 tward a 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 this 1 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 "Zaunkoenig 11 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. 



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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, 81 25*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 "376 11 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. 



r i 



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 circle t 

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 Staff t 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 adopted s 

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. 



£ 



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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 Item t 

According to a report of the German Armistice Commission, France dated 



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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. 



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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. 



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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 



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> 



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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CONFIDENTIAL 



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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CONFIDENTIAL 
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 



-191- 



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. 



-194- 



: 



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. 

2 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. 



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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, . 



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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. 



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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". 



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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. 



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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. 



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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. 



" 



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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 



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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. 



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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, 



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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 M 118", providing that 4 
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. 



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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 "201 M , 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 Vlclnity t 

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 



-219- 



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 "Aida w 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 - 



m 



D 



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 0740 1 . 

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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m 



m 



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.) 



- 229 - 



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. 



- 231 - 



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 h 7 ilhelmshaven,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 con fidential 

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 3 and 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 



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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. 



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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 "30 H 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, "17 M . 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. 



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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 Shippin g 

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. 



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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 sei z ure 
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. 



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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. 



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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". 



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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 '*601 M 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 B t 

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.iTTA L 
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- 
d itions . 

-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. Aeri al 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 Reconnai ssa nc e on - thc rout e 

-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 losse r 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 with 1 
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. O wn 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, as 1 
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 . Ow n 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 



-fe8fc- 



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 



-|29tL- 



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 the 1 
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- 



CONFIDENTI AL 
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 A I 
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 Sltuation t 
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 *151 1 ' 
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 n 28 n is planned too, and that additional information will 
follow, since it is dependent on supplying ship M 23 M . 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 "28 n 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 "10 w , arrived at Yokohama on 22 Jul. with 
12,000 tons of crude oil. 

Ship n 10 M is informed by Radiogram 1017 that her prize, the steamer 
NANKIN, arrived at Yokohama on 18 Jul. (See War Diary of 22 Jul.) 

Ship H 10" 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*- 



CONFID ENTIAL 
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. 

Spain t 

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 "74 n 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 "28 rt 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. 

Radio gram- 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. 

Chan nel 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 w 20 n 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 discussion 1 
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 
br e akdown of on o 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 ll n 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 "28 n 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 Fron t; 

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 Britai n: 

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-2 34 4 of 2 5 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 weather 3 

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 battl e I s 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- 



CONFID ENTIAL 
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- 



C OITFIDLITTIAL 
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- 



CONFIDENTI AL 
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.ja n 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 222 H (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 Ger man 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 Atlanti c : 

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> 



CONFIDENTIAL 1 
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 
M 59 n 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 
si ght ed were positively identi f i ed -as-of-fehe RAMILLIES— e-let&s- or wh e ther 

^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 Afric a : 

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. 
S pecial 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. 

Chile r 

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$- 



CONFIDENTIA L 
29 Jul e 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 L e 
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 sweepers c 

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 " ¥'' iw i»' 



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 Front t 

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^r J 



*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. 

Centra l Army Group ; 

* 

German forces advanced east of Velizh and reached the lake 
chain near Chepli. 

Northern Army Group ; 

Nothing to report. 

2. F innish 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- 



CONFIDE N TIAL 
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- 



CONFI DENTIAL 
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- 



coiiFiD i': - 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 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, B a ltic 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 May r 

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. 

Ajue rhflhn 

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. 



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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. 



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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). 

-400- 



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. 



-401- 



\