In Burma... Japanese forces trapped in the Pegu Hills, estimated to number 5000, suffer heavy losses in attempts to breakout eastwards to the Sittang river. 

In China... The American Far East Air Force attack Japanese air bases and shipping in the Shanghai area with 300 planes (including the new Douglas A-26 Invader light bomber). The Japanese news agency later reports that the Shanghai area was bombed by about 100 bombers and fighters and claims the Japanese shot down 4 planes and damaged 7 others.

In Japan... US Task Force 92 bombards Paramushiro in the Kurile Islands. During the night (July 22-23), 9 American destroyers penetrate Tokyo Bay under the cover of a storm and attack a Japanese convoy. Other Allied task forces are being resupplied in the largest resupply at sea operation of the war.

From Tokyo... The Japanese government announces that it is open to peace negotiations but not to threats.

In Occupied Germany... The Potsdam Conference continues. Churchill, Truman and Stalin confer on politics and strategy, in a town near Berlin.