By late July 1941, the counter-battery fire operation was in place and operating. Direct phone lines were a prominent feature of the organization. They were now able to very promptly fire on enemy guns when they were noticed.
The ammunition supply situation had improved enough that by 17 July, artillery commanders were allowed to increase the rounds fired per gun per day to 20 rounds, if there was a need. Once this was permitted, the ammunition used per day increased immediately. This actually was an indication that the guns were allowed to fire on targets as they were seen, and allowed the British guns to be more effective.
The captured Italian guns continued to have problems that made them a danger. The 75mm guns worked well, but the 100mm guns were very troublesome. All but one were abandoned. The 149mm guns were considered dangerous, but they were fired by very long lanyards by men protected by sangers.
At a time when moving supplies was a priority, there was what now seems to have been a mistake, to reduce the base area staff. In addition, personnel resources for use by the engineers was being reduced. That was at a time when they were called upon to perform tasks such as preparing beaches for embarkation, in case of a need to abandon Tobruk. The engineers were also required to plan and implement a demolition scheme to be fired in case of a withdrawal. Ironically, when Tobruk fell in 1942, none of these plans were implemented, because by the time there was a need, the people who had done the planning and implementation were long gone.
Along with the other preparations, large amounts of Italian ammunition were either detonated or were dumped into the sea. The latter practice was very dangerous, because some of the ammunition that was dumped exploded and killed and injured men.
Work continued on implementing defenses in greater depth. Units that were supposedly in reserve were diverted very quickly into digging defenses. These included adding more to the inner defensive line, the "Blue Line", and other "Switch Lines". These were additional defensive lines beyond those in the outer perimeter and inner defenses.
The area to the southeast, outside the perimeter, was occupied by Italian units. They had moved into position as early as April 1941. They had built defensive positions that blocked the Bardia Road. During June and July, soldiers from the Trento Division held this area. Further south was largely unoccupied. A greater amount of work was done by men from the Pavia Division starting after 10 June. This is based on the account in Vol.III of the Australian Official History.