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http://homepage.ntlworld.com/andrew.etherington/month/thismonth/26.htm

July 26th, 1941

UNITED KINGDOM: London: People are flocking to ‘Target for Tonight’, a new, authentic kind of war film made by Harry Watt and the film-makers of the Crown Film Unit (formed from the pre-war GPO film unit). The film is an understated, unemotional account of an RAF bombing mission over Germany by a Wellington bomber code-named “F for Freddie”.

The “actors” are real aircrew from Mildenhall airfield, in Suffolk, performing their real-life roles. After bombing the target in heavy flak, the plane is hit and has to limp home in dense fog. It is piloted by Squadron-Leader Pickard.

British notice of denunciation of commercial agreements with Japan and freezing of Japanese assets.

Minesweeper HMS Deloraine launched.

Corvette HMS Rockrose launched. (Dave Shirlaw)

FRANCE: The British ships HMS Cattistock, HMS Mendip and HMS Quorn bombard Dieppe.

GERMANY:

U-116, U-134 commissioned.

U-251, U-437 launched. (Dave Shirlaw)

FINLAND: The Battle for Bengtskär. One of the epic small unit actions of WWII (Cris Wetton)

POLAND: Vilna: This morning the Germans arrested members of the ghetto’s Judenrat [Jewish council]. They demanded five million roubles for their release, of which two million must be found by tomorrow morning. Failure to pay will mean their execution.

As the news spreads through the ghetto, the Jewish community is trying desperately to raise the money to save their lives. Men are donating watches and women jewellery.

PORTUGAL: In Lisbon the transport USS West Point (AP-23, ex SS America), embarks American and Chinese diplomatic personnel and their families from consulates in Germany, German-occupied countries and Italy and sets sails for the New York. Also on board are 21 US ambulance drivers who had been passengers on the Egyptian ship SS ZAMZAM which had been sunk the German auxiliary cruiser ATLANTIS on 17 April. (Jack McKillop)

MALTA: Italian E-boats’ make an intrepid attempt to penetrate Grand Harbour and Marsamxett and destroy ships in harbour and submarine base at Manoel Island. Radar cover effective. Guns from St Elmo and Ricasoli in action. Coastal batteries and Hurricanes later engage. Force wiped out. Eighteen Italians taken prisoner.

MEDITERRANEAN SEA: Submarine HMS Cachalot rammed and sunk NW of Benghazi by Italian torpedo boat Generale Achille Papa. (Dave Shirlaw)

CANADA: Fairmile depot ships HMCS Preserver and Provider ordered Marine Industries Ltd, Sorel, Province of Quebec.
Corvette HMCS Weyburn launched Port Arthur, Ontario. (Dave Shirlaw)

U.S.A.: Roosevelt incorporates the armed forces of the Philippines into the US Army and sends General Douglas MacArthur to take up the command of US forces in the Far East. MacArthur says that he is confident that the Philippines can be defended if war should spread to the Far East.
US General MacArthur recalled to duty as a Lieutenant General and is appointed Commander of USAFFE (US Army Forces in the Far East, a name MacArthur detested — he had wanted the new command known as the Far East Command). The Army of the Commonwealth of the Philippines is called into Federal service contemporaneously.

MacArthur continues as military advisor to the Philippine President. MacArthur upon learning of the mobilization of the Philippine National Army but before learning of his own recall to active duty and of the creation of USAFFE, requests payment of the stipend of $50 per soldier serving in the Philippine National Army . This was provided for in his contract with the Commonwealth Government and had been approved by both Secretary of War Dern and President Roosevelt in 1936.

The money was paid to MacArthur on Corregidor during the siege. A few other US Army officers had similar arrangements with the Commonwealth but one of them, Dwight Eisenhower, declined to accept his payment. (Marc Small)

Washington: In an executive order issued last night Roosevelt brought all financial transactions involving Japanese interests under the control of the US government. In effect freezing Japanese assets worth at least GBP 33 million. This is in response to the Japanese occupation of northern French Indochina on 24 July.
He has also closed the Panama Canal to Japanese ships.

Today the British treasury and Dutch governments announced similar restrictions on all orders affecting Japanese holdings in Britain and the Dominions. By request of the Chinese government, the freeze is also applied to Chinese assets in order to thwart Japanese attempts to abuse its position as the occupier of key Chinese financial centres.

At a stroke, Japan has lost
88% of its oil imports and most of its supply of wheat, cotton, zinc, iron ore, bauxite and manganese. Its two biggest export markets, for GBP55 million worth if silk to the US and GBP40 million worth of cotton cloth to Britain, have disappeared.

Japan hit back by freezing US and British assets in Japan. These are believed to be small.

JULY 26, 1941, MESSAGE TEXTS:

a) (MARSHALL to MacARTHUR):

EFFECTIVE THIS DATE THERE IS HEREBY CONSTITUTED A COMMAND DESIGNATED AS THE UNITED STATES ARMY FORCES IN THE FAR EAST STOP THIS COMMAND WILL INCLUDE THE PHILIPPINE DEPARTMENT COMMA FORCES OF THE GOVERNMENT OF THE COMMONWEALTH OF THE PHILIPPINES CALLED INTO THE SERVICE OF THE ARMED FORCES OF THE UNITED STATES FOR THE PERIOD OF THE EXISTING EMERGENCY COMMA AND SUCH OTHER FORCES AS MAY BE ASSIGNED TO IT STOP HEADQUARTERS UNITED STATES ARMY FORCES IN THE FAR EAST WILL BE ESTABLISHED IN MANILA COMMA PHILIPPINE ISLANDS STOP YOU ARE HEREBY DESIGNATED AS COMMANDING GENERAL COMMA UNITED STATES ARMY FORCES IN THE FAR EAST STOP YOU ARE ALSO DESIGNED AS THE GENERAL OFFICER UNITED STATES ARMY REFERRED TO IN A MILITARY ORDER CALLING INTO THE SERVICE OF THE ARMED FORCES OF THE UNITED STATES THE ORGANIZED FORCES OF THE GOVERNMENT OF THE COMMONWEALTH OF THE PHILIPPINES DATED JULY 26 COMMA 1941 STOP ORDERS CALLING YOU TO ACTIVE DUTY ARE BEING ISSUED EFFECTIVE JULY 26 COMMA 1941 STOP REPORT ASSUMPTION OF COMMAND BY RADIO END.

b) (MARSHALL TO GRUNERT):

THE PRESIDENT HAS ISSUED A MILITARY ORDER THIS DATE CALLING INTO THE SERVICE OF THE ARMED FORCES OF THE UNITED STATES FOR THE PERIOD OF THE EXISTING EMERGENCY ALL OF THE ORGANIZED MILITARY FORCES OF THE GOVERNMENT OF THE COMMONWEALTH OF THE PHILIPPINES STOP

AA cruiser USS San Diego launched. (Dave Shirlaw)

SOUTH AMERICA: Peru and Ecuador declare a truce in the border war.

ATLANTIC OCEAN: At 0328, U-141 attacked Convoy OS-1 and Schüler thought the he has scored one hit on each of three ships. The first vessel was seen being abandoned, the second exploded and the third, which had four masts, was seen to develop a heavy list. In fact, the Botwey was sunk and the damaged Atlantic City was abandoned, but later reboarded and salvaged. (Dave Shirlaw)