On 1 September 1942, you had the 21st Armored Divisions stalled. The 15th Armored Division (we always translate the German to the English equivalent) was trying to execute the penetration and turn to the north. The British used artillery and air attacks against the German armored units. Montgomery was using infantry in the battle. He ordered the 2nd South African Brigade to move to spot north of Alam el Halfa. He alerted the New Zealand Division that they needed to be ready to attack to the south, across the enemy tracks.
By the end of the day on 1 September, the German reconnaissance units had been heavily attacked from the air and were had suffered. The 15th Armored Division was still a threat to Point 132. Fuel supply was a problem that was developing. There was only fuel for operations up to 5 September. The fuel situation actually forced the enemy forces to go into a defensive posture.
On 2 September, there was an opportunity for the British to use armor to hit the rear of the German armor. Montgomery opted to stick with infantry operations. He was going to use the New Zealand Division in the attack. The British now had the sense that they were in a strong position and would succeed. The attack would use the 5th and 6th New Zealand brigades and the 132nd (British) Brigade. The 132nd Brigade would attack on the right with the 5th New Zealand Brigade on the left. Both would have squadrons of Valentine tanks in support.
The attack may have been rushed somewhat while the enemy forces were reinforcing the "most vulnerable point". As it was, the 132nd Brigade started an hour late. They were still very inexperienced compared to the other units. The 5th New Zealand Brigade had more success and had reached their objective. They were able to repel to attacks against them. Montgomery and his staff talked with General Freyberg and agreed that they were better off withdrawing rather than making new attacks. The 5th New Zealand Brigade had "275 casualties" while the 132nd Brigade was worse off, having 697 casualties. The ground attack could wait, as the air attacks on the enemy were being effective. From the start of Alam hel Halfa, the enemy had lost 170 vehicles destroyed and had some 270 damaged. They had also used up a great deal of their fuel.
The enemy was content to withdraw, according to their plan from the start. The British were content to let the withdrawal proceed. The enemy still had a position that included the British minefields where they had lifted mines and were still holding Himeimat, a high point that dominated the area in the southern part of the El Alamein position. Brian Horrocks was not happy letting the Germans hold the land they took, but Montgomery did not want to take any risks, a point that Rommel had noticed. This is based on account in Vol.III of the Australian Official History.
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