Even as its pilots were scoring victories, a growing rift between the Kwantung Army and the army general staff in Tokyo was intensified by the air war. Without prior knowledge or approval of the high command in Tokyo, the Kwantung Army unleashed major bombing raids on June 27 against Tamsag and Bain Tumen air bases, deep in the Soviet rear. Infuriated by such rank insubordination, the officers in Tokyo delivered a blistering rebuke. Orders were issued forbidding attacks upon airfields in Soviet rear areas. The incident illuminated the deep division within Japanese army leadership at the highest levels. Deeply concerned about commitment of Japanese forces in China, the army general staff in Tokyo was beginning to view the escalating conflict in Mongolia with growing alarm.

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While Japanese leaders squabbled over their commitment of forces in Mongolia, Zhukov and others began to focus on overcoming the daunting logistical challenges of maintaining a sizable defensive force in the region. In an impressive effort that would provide valuable lessons for future operations, Russian truck convoys drove day and night over desert tracks, a grueling round trip of 868 miles. The Soviets employed 3,800 trucks and 1,375 fuel tankers in their supply organization. Those trucks transported 18,000 tons of artillery shells, 6,500 tons of bombs and 15,000 tons of liquid fuel, as well as troops and weapons. Much of the credit for that remarkable feat of logistics must go to a veteran Soviet general, Grigori M. Shtern, commander of the Trans-Baikal military district.

Unwilling to back down, the Japanese unleashed a major two-pronged ground offensive at the beginning of July. On the left, an attack spearheaded by a mechanized brigade would drive the Soviets back to the Halha. Meanwhile, an attack on the right would cross the river to the north and then sweep south, cutting off the subsequent Soviet retreat.

The mechanized brigade stationed with the Japanese army in Manchukuo was in the process of organization. Only one of three planned medium tank regiments had been fully formed. Production of new Type 97 medium tanks was just underway. The brigade had not yet incorporated integral infantry and artillery components. Three infantry battalions were now hastily withdrawn from other formations and assigned to the brigade for the forthcoming operation.

Only four of the new Type 97 tanks had come into the hands of the 3rd Medium Tank Regiment. That unit was therefore compelled to rely upon 26 of the older Type 89B machines. Weighing 13 tons, the Type 89B was powered by a 120-hp engine and could only make 15.5 mph. Main armament was a low-velocity 57mm gun with limited range and penetration capability. The 4th Light Tank Regiment comprised 35 Type 95 light tanks and eight Type 89A mediums. The Type 95 attained a speed of nearly 28 mph, but its 37mm gun had an effective range of only 700 meters.

In comparison, the main Soviet tank, the 13.8-ton BT-7, featured a powerful 450-hp engine and Christie suspension, giving the machine a speed of 33 mph. Its main armament was an excellent 45mm high-velocity gun, with a range of 2,000 meters. Tanks on both sides were highly vulnerable to anti-tank guns, of which the Soviets possessed an overwhelming majority. A Soviet tank brigade at full strength possessed 128 tanks and 24 self-propelled 76mm howitzers. An armored brigade in the Red Army was a team of tanks, truck mounted infantry and self-propelled artillery. The self-propelled 76mm cannons were mounted on turntables in heavy trucks, and protected with armored shields.

On July 2, 7 1/2 Japanese infantry battalions crossed the Halha and seized the Bain Tsagan Heights. They quickly encountered the 11th Soviet Tank Brigade, which, along with the 7th Armored Brigade, was hurled by Zhukov into a quickly organized counterattack. Possessing few anti-tank guns, the Japanese were compelled to rely on Molotov cocktails and other inadequate explosive charges flung against the Soviet armor. After fierce fighting the Japanese were dislodged from the ridge and forced to withdraw across the Halha. In the subsequent Japanese counterattacks, the infantry failed to work effectively with their armor. Forty-four Japanese tanks were destroyed or damaged. The brigade was withdrawn from the theater on July 10.

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