The attack on the Litsa River line was planned for the morning of July 6 but it was delayed until late that day because the 2nd Division assembly area was subjected to heavy Soviet artillery fire and the 3rd Division, because of difficult terrain, had problems getting sufficient forces in place on the west bank of the river. The attacks, when they began, met fierce resistance. By the end of the day the 2nd Division had only one battalion across the river while the 3rd Division had managed to get two battalions into a 1.5 kilometer-wide bridgehead.
The Soviets now launched a serious flank threat to Mountain Corps Norway. Two Soviet transports, escorted by a cruiser and two destroyers, had steamed into Litsa Bay and landed two battalions, one on each side of the bay. The threat from the amphibious landing forced the 2nd Division to send a battalion to screen its left flank.
The Mountain Corps Norway’s chief of staff, Lieutenant Colonel von Le Suire, informed Falkenhorst’s headquarters that the Soviet amphibious landings threatened the corps flank and operations across the Litsa had to be suspended. The troops on the east bank of the river held their positions on July 7 but after repelling strong Soviet counterattacks during the night they were ordered to the west bank of the river in the morning of July 8. In a situation report to Falkenhorst, General Dietl demanded increased air support and reinforcements. He asked for at least one additional regiment.
Hitler now intervened indirectly in the operations of Mountain Corps Norway. He was again becoming fixed on the danger of a British landing in north Norway and demanded immediate strengthening of the defenses there as well as around Pechenga. The land forces for Pechenga’s defense—one battalion of mountain troops and three artillery batteries—were stripped from Dietl’s Mountain Corps.
The offensive strength of Mountain Corps Norway was slowly being frittered away. First, it had to provide two battalions to seal off the Rybachiy Peninsula. Then it had to detach one battalion to screen the left flank of the corps against the threat posed by the Soviet amphibious landing. Finally, a reinforced battalion was sent back to the Pechenga area to act as a defensive force. These detachments represented 30% of Dietl’s striking power.
It did not take OKW long to respond to Dietl’s urgent request for reinforcements. OKW ordered Falkenhorst on July 7 to transfer troops from the XXXVI Corps—the main effort. Falkenhorst was also asked to contact Mannerheim and request help for Dietl so he could again gather his forces for offensive operations. Falkenhorst provided one motorized machinegun battalion from his own resources and prevailed on Mannerheim to make the 14th Infantry Regiment, minus one battalion, available to Mountain Corps Norway. When it arrived it was used to relieve the German troops sealing the Rybachiy Peninsula.
Dietl had toyed with the idea of resuming the offensive almost immediately after the troops were withdrawn behind the Litsa. This time he intended to use only the 3rd Mountain Division, again in the vicinity of the bridge and along the road. It is not known why he waited until he had withdrawn his troops to the west bank of the river before he decided to resume the offensive. The plan was aborted on July 10 after a dispatch rider carrying the attack orders missed his turnoff to a regimental headquarters near Kutovaya and drove straight into the Soviet lines and was wounded and captured. Because of supply difficulties, it is doubtful if the operation could have succeeded. The divisions were supplied by pack mules but many of them had died from exhaustion. Those left could barely transport rations let alone the large amount of ammunition needed for offensive operations.
On July 12 Dietl shifted the weight of the attack to the left flank of the corps. The 2nd Mountain Division was to attack eastward from its present positions near the Litsa village to the chain of lakes lying in a rough arc about 10 kilometers behind the river. Then it would turn south into the rear of the Soviet forces defending the river’s west bank—thereby allowing the 3rd Mountain Division to launch its attack on the river line. With the two divisions advancing along the road the corps hoped to push about 12 kilometers to where the road passes between two lakes—Lake Kuirk and a lake the Germans named Traun.
By the evening of July 13, the first day of the renewed attacks, the 2nd Division had seven battalions on the east bank of the Litsa River and had advanced about three kilometers. Enemy resistance stiffened on July 14 and there were reports of additional amphibious operations not only on the north side of Litsa Bay but at several other points along Motovskiy Bay. Mountain Corps Norway concluded on July 15 that the threats to its left flank would have to be eliminated before the offensive could proceed. The German attacks continued throughout the day of the 15th and one German column succeeded in penetrating the area between Lakes Kuirk and Traun. However, the outlook was not promising. The Soviets launched heavy counterattacks against the German bridgehead from the south and southwest. At the same time, in what appeared to be part of a coordinated effort, the Soviets attacked the German force that held the neck of the Rybachiy Peninsula.
The determined resistance by the Soviet troops on the Litsa line and the amphibious landings on Mountain Corps Norway’s undefended left flank presented the Germans with almost insurmountable problems. Instead of having to defend the six-kilometer neck of the Rybachiy Peninsula and a 20-kilometer front on the Litsa River, they now had to worry about a front of almost 70 kilometers from Kutovaya in the north almost to Motovka in the south.
The German logistical situation continued to deteriorate as troops previously used in the supply effort were used in the beachhead to maximize combat power. Dietl informed the Army of Norway on July 17 that he could no longer continue his advance against Murmansk. He intended, instead, to reduce the size of the bridgehead and use the troops thereby freed to mop up Soviet forces that had landed north of Litsa Bay. In summary, Dietl did not believe it would be possible to resume the offensive until he received, as a minimum, one additional division.
On July 18, the 2nd Mountain Division withdrew its troops in the Litsa bridgehead back to a line extending from a point three kilometers south of the Litsa village to a waterfall about six kilometers to the south. The 3rd Mountain Division settled into a line on the west bank of Litsa from the waterfall to a point west of Traun Lake, about five kilometers south of the bridge over the Litsa.
A meeting between General Falkenhorst, his chief of staff Colonel Buschenhagen, Admiral Hermann Boehm (commander of German naval forces in Norway), and General Dietl took place on July 21. They all agreed that with winter approaching, Mountain Corps Norway could not be left where it was. Either it had to be withdrawn to Finland or it had to push through to Murmansk. Falkenhorst favored pushing on to Murmansk and believed that three regiments could be quickly brought to Dietl provided Hitler would allow such a switch. Admiral Boehm, who had already stationed a flotilla of five destroyers at Kirkenes, promised that two submarines would be added to that force. However, he cautioned that there was not much the navy could do to assist Dietl because of Soviet naval superiority east of Varangerfjord (the bay where Kirkenes is located). The danger to the German Navy in the north was also brought home on July 30 when British carrier-based aircraft bombed Kirkenes, Liinahamari, and Pechenga.
Dietl was informed on July 23 that he would receive two battalions from Norway and the Army of Norway ordered him to resume the offensive. Dietl was pessimistic after assessing his situation. He had started the offensive on June 29 with two mountain divisions of two regiments each. The fighting since then had seriously depleted his fighting units to a point where all his regiments were seriously under-strength. Three battalions from these regiments were involved in a desperate attempt to cope with the threat to his left flank and one reinforced battalion acted as a mobile reserve for the defense of the Pechenga area. The 3rd Mountain Division was already behind the Litsa River line and the 2nd Mountain Division, fighting off repeated heavy Soviet attacks on its bridgehead, had recommended that it be withdrawn to the west bank of the river. Dietl informed the Army of Norway on July 24 that the only thing he could accomplish after receiving the two-battalion reinforcement was to eliminate the threat to his left flank.