Spitfires and Hurricanes, warned by RDF tore into the Germans and a tremendous dogfight started. Machine-gun fire could be clearly heard in coastal towns. The fury of the RAF attack drove off the attackers who succeed in hitting only one ship in the convoy. Two Bf109s are lost for 6 RAF aircraft, including a Hurricane which crashed into the Channel after colliding with a Do17 which also crashed. This part of the country is becoming known as Hellfire corner.

German bombers also raid Swansea and Falmouth docks, and convoys in the Bristol Channel.

SS Waterloo 1,905 GRT) Canadian bulk canaller was bombed and sunk by Luftwaffe aircraft in the North Sea off Great Yarmouth, England, in position 52.53N, 002.19E. Waterloo was transiting alone in ballast along the coast from Yarmouth to the Tyne estuary when she was attacked by level-bombers from high altitude. In an impressive display of bombing accuracy, the small ship was hit by two of six bombs, which struck Number 1 hold just aft of the bridge. The ship was stopped and all twenty crewmembers safely abandoned the ship in her lifeboats. For 15 minutes it appeared as though the ship may stay afloat but then the bulkhead between Number 1 and 2 holds collapsed and the ship went down by the bow in shallow water, struck the bottom, and slowly sank out of sight. The crew rowed to the nearby shore.

The Fascist organisation now calling itself the British Union was effectively outlawed tonight. Sir John Anderson, the Home Secretary, signed an order under Regulation 18A of the new Defence Regulations. This makes it an offence to call or attend a meeting of the Union, distribute leaflets about any such meeting, or otherwise invite support.

Sir Oswald Mosley, the leader of the organisation, which changed it's title last year to the 'British Union of Fascists and National Socialists' (normally shortened to British Union), was interned last month along with 700 others who had been in the BUF. His wife Diana, a sister of Hitler’s doting admirer the Honourable Unity Mitford, was detained a fortnight ago. There is little evidence that any of these internees were actively interested in a German victory and, indeed, the great majority of British Fascists who have not been interned are serving in the armed forces.

There is a strong suspicion that to some degree Mosley's extended internment was motivated by the hatred felt for him by the Labour Home Secretary, Herbert Morrison, who regarded Mosley as a traitor to the Labour Party (Mosley had been a Minister in Ramsey MacDonald's second government). Certainly Churchill, who knew and despised Mosley, was very uneasy about keeping him locked-up without trial long after the threat of a German invasion had receded. (Adrian Weale)

RAF Bomber Command: 2 Group ( Blenheim). 107 Sqn. 6 aircraft bombing the satellite airfield near Amiens. 4 aircraft FTR.

FRANCE:

VICHY FRANCE: The Third Republic has been replaced by the ‘Etat Francais’ [French State], based in Vichy. The "Head of the French State" and Prime Minister will be Marshal Philippe Petain.

The National Assembly today voted by 569 to 80, with 17 abstentions, to grant Petain the power to promulgate a new constitution. Petain will be aided by Pierre Laval, the vice-premier.

Darlan asks the Italian Admiralty to join him in a naval attack on Alexandria in order to liberate the French fleet encircled there. He also proposes a French raid on the British colony of Sierra Leone in West Africa and a bombing assault on Gibraltar.

MEDITERRANEAN SEA:

Believing the Italian Fleet has returned to Augusta, 9 Swordfish I aircraft from HMS Eagle deliver a torpedo attack on the Augusta roads. While no capital ships are present, the destroyer Leone Pancaldo is hit and sunk (it is later salvaged) and a motor ship is damaged. (Mark Horan)

GERMANY:

The prototype Bf 109F makes its maiden flight.

Berlin: Franz Rademacher, the official in charge of Jewish affairs at the foreign office, has proposed moving the estimated four million Jews expected to be living under German rule after the war to the French Indian Ocean Island of Madagascar. In the document ‘The Jewish Question after the Peace Treaty’ he says that putting the Jews on Madagascar - which France will hand over to the Reich - rather than in the Lublin area of Poland, as planned at present, will make them easier to control.

U-128 is laid down.

AUSTRALIA: Minesweeper HMAS GOULDBOURN is laid down.

U.S.A.: Baseball.

Washington: Roosevelt asks Congress for a $4,848 million defence budget to fund a 1.2 million man army and 15,000 new planes. (US$55.724 billion in year 2000 dollars )

ATLANTIC OCEAN: At 1426, the Petsamo was hit in the engine room by one torpedo from U-34, broke in two and sank within 20 minutes. Four stokers on watch below were killed. The U-boat had needed six hours to get into a favourable firing position and sank the ship in sight of the Irish Coast.

The Alwaki had joined Convoy OA-179 on 6 Jul 1940. At 1306 the ship is hit by two torpedoes fired by U-61 from just over 200 meters distance. The torpedoes hit the ship, penetrated the hull but did not detonate. The Alwaki was shaken and immediately started to list to port, because a bulkhead could not be closed and was slowly flooded. A British freighter came alongside and took off all 41 crewmembers and ten passengers. They are landed at Cardiff on 15 July. Tug HMS Bandit tried to salvage the ship, but she sank after 22.00 hours 10 miles NE of Cape Wrath. The absence of the explosion led to the erroneous conclusion by the Admiralty that sabotage was the cause of her loss.