Weather prevents operations by the USAAF's IX Bomber Command; 47 fighters escort troop carriers and fly sweeps in the Vire area where about 20 fighters bomb tactical targets.

GERMANY: U-822, U-2322 commissioned.

DENMARK: The German authorities proclaim a state of emergency because of the general strike.

HUNGARY: RAF Liberators of No. 205 Group are active during the night.

Twenty two aircraft drop mines in the Danube River while one aircraft drops leaflets over Budapest.

FINLAND: This day is the first day of the Ihantala-phase of the Battle of Tali-Ihantala. The Finnish IV Corps (Lt. Gen. Taavetti Laatikainen) has succesfully straightened its right flank and settled down into defence. The new line is practically unfortified, but the rugged and rocky terrain favours the defender.

Commander of the Finnish 6th Division, Maj. Gen. Einar Wihma gives orders to the forces under his command. Right flank between Hoikkala and Vakkila is to be defended by Col. S. Laaksonen's detachment (II/IR 35, IR 48 minus its III battalion, and I/IR 30), and left flank between Pyöräkangas and Lake Ihantalanjärvi by Col. Y. Hanste's detachment (IR 12, Separate Battalion 16 and 16th Mortar Company). Gen. Wihma's reserves are comprised of IR 30 (minus its I battalion) and III/IR 35. AT-defence is provided by the 9th, 11th and 23rd AT-gun companies, 1st Separate AT-detachment and German Sturmgeschütz-Brigade 303.

The Soviet main effort is made at Ihantala. According to a Soviet officer captured a few days later, their aim is to reach the border of 1940 and then advance towards Helsinki, the Finnish capital. Early this morning the Soviet forces, supported by tanks, ground-attack aircraft and artillery, attack the Finnish II/IR 12 which holds the Village of Ihantala. The attack is repelled with the aid of artillery and mortar fire.

Another attempt is staged in mid-morning. The Soviets forces, supported by some 20 tanks and artillery, again attack the II/IR 12. However, as the Soviet attack commences, a stroke of good luck comes to help the Finns. The bridge across a stream running south from the Lake Ihantalanjärvi was left intact yesterday, when the engineers assigned with blowing up the bridge were all killed. A Finnish artillery officer, Capt. Urho Karhula, decides to try to destroy the bridge this morning with one heavy artillery piece. He starts directing the fire, and finally a hit is scored, which also detonates the charges left in the bridge. Three enemy tanks are knocked out in the explosion, and seven are left stranded between the Finnish positions and the destroyed bridge, while the Finnish artillery and infantry fire drives the enemy infantry away.

After these unsuccessful attempts the Soviets try to penetrate the Finnish defences at Vakkila, west of Ihantala. At 1 pm the Soviet air forces bomb the 6th Division's positions, and immediately afterwards the Soviet artillery fires a furious barrage at the Finnish positions around Vakkila. But the attack is aborted soon after its start when the Finnish artillery and mortars disperse the advancing Soviet formations. Obstlt. Kurt Kuhlmey's German aircraft also bomb the advancing Soviets, destroying several tanks.

At 6 pm. the Red Army once again attacks Ihantala, supported this time by some 30 tanks, but is again repelled. An hour later the Soviet forces attack west of Ihantala in several waves, but suffer heavy losses in Finnish infantry and artillery fire. At 9 pm. the Soviet aircraft bomb the positions of the I/IR 12 around Pyöräkangas, and are soon joined by the Soviet artillery. The Soviet ground forces start forming for an attack after 10 pm, but are dispersed by Finnish artillery, and the attack is aborted.

Gen. Wihma's forces have today successfully repelled the Soviet attempts to break through all along their front. Finns claim 19 Soviet tanks destroyed around Ihantala.

At Bay of Viipuri the recently arrived Soviet 59th Army (Lt. Gen. I. Korovnikov) starts its attempts to cross the bay and reach the western shore. They manage to land forces on several islands, but are driven back by the forces of the Finnish V Corps (Maj. Gen. Antero Svensson).

ITALY: The US 5th Army captures Cecina. British X and XIII Corps push German units back in their sector.

Udine: Despite a vicious crackdown by occupying Germans, thousands of Italian patriots, mainly communist-led, have taken to the hills in the north of Italy and are taking a major part in disrupting German communications. Meanwhile, the British Eighth Army is training and equipping Italian brigades - often composed of former enemies - who have been fighting alongside most Allied armies since the beginning of the year. "We had both sympathy and contempt for the Italians in the desert," said one commander. "Now we see them as real and dedicated fighters. We have given them pride again."

GREECE: An RAF Liberator of No. 205 Group drops leaflets over Athens during the night.

YUGOSLAVIA: Forty four RAF Liberators of No. 205 Group drop mines in the Danube River; four aircraft are lost.

MARIANAS ISLANDS: Seventh Air Force P-47s fly bombing and strafing missions over Saipan, Tinian, and Rota Islands. Seventh Air Force B-24s, staging through Eniwetok Atoll, Marshall Islands, hit Truk Atoll, Caroline Islands, during the night of 1/2 July and follow up with another raid during the day. Makin Island, Gilbert Island-based B-25s bomb Ponape Island, Caroline Islands.
The new US aircraft carrier USS Franklin (CV-13), with Carrier Air Group Thirteen (CVG-13), joins Task Group 38.2.

JAPAN: At dawn in the Kurile Islands, four Eleventh Air Force B-24s radar-bomb southern Shimushu Island and Kurabu Cape Airfield, Paramushiru Island through overcast.