On 3 September, Cléry and Guillemont to the north, fell, a severe blow to morale; Hindenburg and Ludendorff ended the policy of defending ground at all costs on 5 September and ordered the construction of the (Hindenburg Line) to the east. Falfemont Farm was held by Infantry Regiment 164 of the 111th Division, with Guard Grenadier Regiment 4 of the 2nd Guard Division to the south-east. Fusilier Regiment 73, on the right of the 111th Division, was distributed in depth, the II Battalion and a machine-gun company in Guillemont and the III Battalion between Leuze Wood and the Quadrilateral. The I Battalion was caught by the British bombardment of the village and overwhelmed by the III Battalion being prevented from counter-attacking by the British barrage. A gap appeared between Infantry Regiment 164 and Fusilier Regiment 73, I Battalion being taken by surprise and almost "annihilated"; more than were captured and many were killed. The II and III battalions of Fusilier Regiment 73, attempted a morning counter-attack from Leuze Wood but were stopped by British artillery. The I and III battalions of Infantry Regiment 76 held the trench between Leuze Wood and the Quadrilateral and gained touch with Fusilier Regiment 73 during the night, when part of the III Battalion of Reserve Infantry Regiment 107 of the 24th Reserve Division arrived to fill the gap.