APPENDIX I.
 
  DECISION ON PRODUCTION REQUIREMENTS FOR MAJOR CATAGORIES OF
               MATERIALS RECOMMENDED BY THE NAVY.
                                
(A )
1. (Cont,d)
 
     f.   Naval Shore Establishment.
 
See Appendix I and Appendix II for the permanent naval shore establishmont program. To these
total requirements should be added temporary overseas naval base constructions equivalent to
25% of the authorized permanent overseas construction.  Emergency shipbuilding and
manufacturing equivalents are to be computed under subparagraphs d, e, and g.
 
     g.   Naval Munit ions Requirements for naval ships,
aircraft and bases.
 
     h.   Marine Corps Munitions Requirements.
 
2.   Foreign Navies.     Provide Naval forces and facilities for Associated Powers as     follows:
     
     a.   300,000 tons of naval combatant vessels for the British Commonwealth.
     
     b.   200,000 tons of naval combatant vessels for Latin-American countries.
 
     c.   Temporary facilities in the United States for the repair of 25% of British naval          combatant vessels.
 
(B ) ARMY PROGRAM, excluding aviation.
          No estimates under this heading are submitted by the Navy.
 
(C ) AVIATION PROGRAM, excluding U.S. Naval Aviation.
          No estimates under this heading are submitted by the Navy.