At daybreak the same day, the Germans counterattacked the New Zealand positions with elements of three divisions; the 23rd Saxon Division, 16th and 4th Bavarian Infantry Divisions. The counterattack was supported by four A7V tanks which attempted to make for Frémicourt but then returned to their own lines. Mistaken for British armour, they were fired on by their own infantry. Two of these tanks were captured by the New Zealanders as they tried to evade the attentions of their countrymen. Although the German attack, later described as having "insufficiently preparation", did cause the New Zealanders to cede ground, they regained it later in the day.
On 1 September, IV Corps began operations designed to capture Bancourt Ridge and allow the advance to continue. Under the cover of an artillery barrage, the 42nd Division, New Zealand Division, and 5th Division, from right to left respectively, would begin advancing at 4:55 am. As had frequently happened during the battle, the New Zealanders found themselves ahead of the flanking divisions. The New Zealand Rifle Brigade swiftly made the crest of the ridge, taking 70 prisoners. The 1st Infantry Brigade was a little slower; the 1st Wellington Battalion made the crest and consolidated itself there. The other battalion, 2nd Auckland, despite the assistance of two tanks, was unable to do the same. Operating on the extreme flank of the New Zealand Division's sector of the front, it suffered the most from the lack of progress of the 42nd Division and was unable hold its portion of the crest. That evening, the 2nd Infantry Brigade moved into the line, replacing both the New Zealand Rifle Brigade and 1st Infantry Brigade. The 2nd Infantry Brigade took over the vanguard of the advance on 2 September, tasked with clearing the Germans from their positions overlooking Haplincourt. This they did after overcoming numerous machine gun nests, plus the guns of two disabled tanks being used as outposts. Over 350 prisoners of war were taken, along with 80 machine guns plus a field gun. Their advance was not as quick as that of the 42nd Division, making a corresponding move forward, which had made good progress and the British, until the New Zealanders caught up, had to lay down heavy suppressing fire on both flanks. The New Zealand Division now halted for a few days as pressure was being placed on the German lines elsewhere and the emphasis for IV Corps was now to pursue the enemy to the Hindenburg Line.
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