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two countries. Finland is unlikely, in present circumstances, to do more than try to maintain her precarious independence, while avoiding further hostilities by every means in her power.

Far East.

73. The Japanese have secured their main requirements regarding the stoppage of arms supplies from Indo-China, the French having agreed to prevent the passage of supplies and to allow Japanese commissions of inspection to supervise the working of the agreement. As the Hong Kong frontier has also been blocked by Japanese action, the only remaining point at issue regarding Chinese arms traffic is the Burma-Yunnan road.

General Review.

AIR SITUATION.

74. Bomber Command has been engaged in the reduction of the scale of air attack on this country. German attacks have continued, though not in great strength, and comparatively little major damage has been done. Our fighters have successfully operated over the French coasts. Coastal Command have continued their operations off the Norwegian and Dutch coasts and successfully attacked Scharnhorst. Our operations in the Middle East have continued and reports indicate that the Italian air effort in East Africa has virtually collapsed.

Great Britain.

75. There were extensive enemy raids over Great Britain on the nights of the 21st/22nd, 24th/25th, 25th/26th and 26th 27th June. On the first of these nights about 40 aircraft were engaged, coming from bases in France, Belgium and Holland. Bombs were dropped at points on the East Coast from Tyneside to Clacton and, while the enemy's objectives may have been aerodromes and R.D.F. stations, little damage was done except to small houses, to transport facilities at Grimsby and to electric pylons near Ravenscar. The raiders appear to have dropped bombs from about 10,000 feet, and there was considerable haze at lower altitudes; our fighters made only one interception, which had no conclusive result.

76. On the 24th/25th June bombs are reported to have been dropped by about 50 aircraft near various aerodromes in East Anglia, near Coventry, Lough- borough and Derby, and at Bristol. At Bristol considerable damage was done to a brewery, a soap works, Lysaght's works, and to a railway station and rolling- stock.

77. On the 25th/26th June about 70 enemy aircraft were active, and operated from bases in Germany and Norway as well as in France and the Low Countries; the coast was crossed at various points as far North as the Firth of Forth, and bombs were dropped in the neighbourhood of Perth, Edinburgh, Hull, Rugby, Portishead, Bristol and Newport. Two aerodromes were attacked and two aircraft were damaged. Considerable damage was done to oil storage at Newport, and bombs fell close to the British Aluminium Co.'s works there; a ship was damaged at Hull. It is believed that five of the enemy were shot down; one of our fighters is missing.

78. On the night of 26th/27th June some 70 enemy aircraft again came in at widely separated points of the coast, from Aberdeen to the Isle of Wight, and attacked R.A.F. stations and industrial objectives. At Billingham substantial damage was done to a timber yard and to the electric plant of the I.C.I. works; at Middlesbrough the Town Hall and an automatic telephone exchange were damaged. There were two confirmed and one unconfirmed enemy casualties.

79. Minelaying by aircraft has been suspected on various occasions during the week, but there has been little enemy activity over our coasts during the hours of daylight. One patrol of the new He. 113 fighters passed over Dover on the 23rd June and our own fighters claim to have shot one down.

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