Destroyer HMS Whaddon launched.

Destroyer HMS Dulverton laid down.

Submarine HMS Saracen laid down.

London: The Labour MP Hugh Dalton is appointed political head of the Special Operations Executive.

FRANCE: The Vichy government deprives naturalised Jews of their French citizenship.

Germany expels 22,000 French citizens from Alsace-Lorraine, which it claims as part of the Reich.

GERMANY: Berlin: Hitler issues his directive no 16, "On the Preparation of a Landing Operation against England (Sealion)"

He talks of invading England with 20 divisions, to be put ashore on the south coast between Ramsgate and Lyme Regis. Hitler says that the aim is to "eliminate the English mother country as a base from which the war against Germany can be continued."

General Alfred Jodl says that the invasion should be seen as a river crossing on a broad front, and in place of bridging operations the navy would keep the sea lanes secure against British attacks. The Luftwaffe would knock out the RAF. Operation Sealion will be ready in nine weeks.

But the admirals in the Kriegsmarine are unhappy. In the absence of purpose-built landing craft, they say that they cannot guarantee to protect hundreds of river barges being towed slowly across the Channel, Among other things, the Wehrmacht’s famed mechanised army uses several thousand horses to pull its guns. How, ask the admirals, do you propose to get horses across the Channel under fire?

OKW issues Führer Directive #16. Plans for Operation Sealion. Despite Englands hopeless military situation, she shows no sign of being ready to come to an understanding, therefore we must prepare a landing operation against England, and if necessary carry it out. The aim of the operation is to eliminate the English homeland as a base for the prosecution of the war against Germany and if necessary occupy it completely. 
(i) The landing will be in the form of a surprise crossing on a wide front. Units of the Luftwaffe will act as artillery and units of the Kriegsmarine as engineers. Possible advantages of other limited operations (e.g. Isle of Wight or Cornwall) should be considered. Preparations should be completed by the middle of August. 
(ii) Preparations should create such conditions as to make the landing possible; the RAF must be reduced morally and physically to impotence, mine-free channels must be created, the Straits of Dover must be sealed off with minefields on both flanks, strong coastal artillery forces must protect the forward coastal area, the Royal Navy must be tied down shortly before the crossing, both in the North and Mediterranean Seas. Air attacks against home-based enemy naval forces should begin immediately. 
(iii) Under the Führer's overriding command, the Commanders-in-Chief will command the branches of the Wehrmacht for which they are responsible. One Army Group will be detailed to carry out the invasion. The Army will draw up the operational and crossing plans for the first wave of the invasion, and will lay down methods by which the invasion is to be carried out, forces involved, and selection and protection of points of embarkation and disembarkation. The Kriegsmarine will procure the means for invasion in accordance with the wishes of the Army, use will be made of captured shipping wherever possible. In addition the Kriegsmarine is responsible for coastal artillery, and in conjunction with the Luftwaffe, the defence of the crossing of the Channel on both flanks. The Luftwaffe will be tasked with preventing interference by enemy airforces, the destruction of enemy coastal fortresses, breaking the first resistance of enemy land forces, and the dispersal of enemy reserves on their way to the front. Opportunities for use of airborne troops should be investigated. 
(iv) Preparations for ensuring necessary communications between France and England will be handled by Chief, Wehrmacht Signals. Possible use of remaining length of the East Prussia cable should be examined. 
(v) Plans from all services should be submitted as soon as possible. (Marc Roberts)

PALESTINE: Italian bombers attack the British base at Haifa.

MEDITERRANEAN SEA: Submarine HM S/M Phoenix is sunk in the Mediterranean off Augusta by depth charges. After having attacked a tanker which was escorted by Italian Navy Albatros, the escort commander raced back down the track of the torpedoes and delivered 10 depth charges directly over the submarine. All submarine crew of 53 are lost. (Alex Gordon)(108)

RN and RAN ships bombard the Libyan port of Bardia, a key Italian position.

JAPAN: Tokyo: Military pressure forces the resignation of the Premier, Admiral Mitsumasa Yonai.

CANADA: MTB hull arrived Montreal, Province of Quebec, to become HMC MTB 1.