expense of bombers in order to meet increased requirements for
 
defense against the UNITED NATIONS bomber offensive.
 
The EUROPEAN AXIS is faced with a.n air war on three
 
fronts. The combined UNITED NATIONS bomber offensive may
 
reasonably be expected to create favorable conditions for
 
It is significant that AXIS air power has not increased
 
in proportion to her ground and sea forces. This may be
 
attributed to:
 
     (1) Production limitations.
 
     (2) Increasing the number of ground force units.  This
 
is being done because.
 
          (a) The AXIS cannot expect to move ground forces
 
     freely to and from the Eastern Front because of the
 
     strategical situation.
 
          (b) Preparations are being made to bolster Italian
 
          and satellite resistance.
 
b.   Economic. GERMANY'S military effort was somewhat im-
 
paired by air attack in 1942. In 1943 the increasing bombing 
 
offensive expected and the greater precision of air attack
 
will bring about further substantial decline in AXIS armament
 
production. For aircraft, destructzon of output will be felt
 
almost immediately in first line operations. For other munitions,
 
 destruction of facilities will produce a more gradual
 
effect on Military operations. However, except for aircraft,
 
it is probable that the AXIS can increase somewhat in 1943 the
 
scale of Military effort but only at the expense of an ac-
 
celerated decline in economic potential.
 
     ITALY and her satellites are dependent on GERMANY for
 
munitions and raw materials. GERMANY depends on the satellItes
 
for some strategic raw materials of a high priority.
 
                              -5 -