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July 23rd, 1940 (TUESDAY)

UNITED KINGDOM: RAF Bomber Command: 4 Group (Whitley). Bombing - road and rail communications at Osnabruck, Hamburg Docks and an aircraft factory at Kassel.

77 Sqn. Ten aircraft to Kassel. Nine bombed. One hit by flak and landed at Bircham Newton.

78 Sqn. Three aircraft to Osnabruck. One returned early, one bombed primary, one bombed alternate.

102 Sqn. Ten aircraft to Hamburg. Seven bombed.

2 Group ( Blenheim). Three aircraft raided airfields around Wilhelmshaven.

The Local Defence Volunteer force is renamed the "Home Guard".

Submarine minelayer Narwhal (instructed to proceed on the surface) is attacked and sunk by a Dornier flying boat in the Norwegian Sea at 55 30N 01 10E. All crew of 59 are lost. (Alex Gordon)(108)

London: Dr. Eduard Benes, the Czech leader, has formed a provisional Czechoslovak government in London with the approval of the British government. It is probable that a British minister will be accredited to Dr Bene’s government. Mgr Sramek is appointed prime minister.

Dr Benes, who becomes president, said today: "Our main effort will be the organisation of our forces on land and in the air so that our share in the defence of Britain and the defeat of Nazism will be as effective as possible.

An emergency budget today ushered in tough new taxes, including 24% on luxuries such as furs, real silk stockings and cosmetics. "In the hard circumstances of the times we can do without them," said Sir Kingsley Wood, the Chancellor of the Exchequer. He also announced all-round tax increases, including an extra shilling on income tax. This will be 8/6 in the pound from next January. (42.5%)

In future income tax will also be compulsorily deducted at source. People will "pay as they earn" instead of the present system with lump sums paid twice a year.

U.S.S.R.: Soviet submarine M-99 commissioned.

COMMONWEALTH OF THE PHILIPPINES: Quezon awards Marquat the Philippine Distinguished Service Star for his work in establishing the Philippine Army Coast Artillery School at Fort Wint from 1938 to 1940.

U.S.A.: A British Purchasing mission is given permission to buy 40% of the USA’s production of aircraft.

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