Paraphrase of Code Cablegram                  
                Received at the War Department
                at 09:41, July 9, 1941
 
London, filed 14:38, July 9, 1941.
     
          The report on the situation in Soviet given below has as
its source the Intelligence Division of the British Royal Air Force.
 
            1. The General Staff of the U.S.S.R., together with the 
Commander of the Air Force, appear to be full of confidence and the 
impression given out is that the situation is completely under 
control.
 
           2. The British Military Mission in the Soviet believe
that the initial stages of the German offensive have ended. Officers 
of the Soviet General Staff imply that large counterattacks may be 
launched in the near future. 
 
          3. Around Leningrad the counterattack staged by the Soviet 
troops has been successful. The claim that Murmansk had fallen to 
the Germans is false. Rear supply and communication lines of the 
Soviet Army are functioning very well.
 
          4. German prisoners exhibit lower morale than they did
ten days ago.
 
                                                  LEE
 
Distribution:
    THE PRESIDENT
    Secretary of War
    State Department                                                     
    Assistant Chief of Staff, G-2
    Assistant Chief of Staff, G-3
    War Plans Division                                                                
    Office of Naval Intelligence
    GHQ