The most serious consequences of the Russian war for the German position have been the following: 1. Manpower losses, especially within the age group 21-28. 2. The strain on transport, especially the railways. 3. The reduction of petroleum stocks, as a result of the high military consumption rate on the Eastern front. B. GERMAN ECONOMIC POSITION Prior to June 1941 the German industrial machine exhibited few signs of strain, having been bolstered by the stocks and resources acquired in the campaigns of 1940. These minimized the consequences of the Allied blockade.. The large scale and prolonged operations in the East, however, have evoked three types of strain on the German economic system. First, pressure on total manpower and transport resources has been measurably increased, causing further incursions into the supply of civilian goods and services and some net decrease in the efficiency of the industrial machine. Second, the continuance of the war at its present level of intensity has accentuated the problem of depreciation, with respect to tlm railways, industrial equipment, and durable consumer's goods. Third, the large demands of the present campaign have exposed and accentuated certain specific German weaknesses: 1. The further withdrawal of manpower of military age, from agriculture and industry, has necessitated the substitution of less efficient over-age workers, women, foreigners, and war prisoners. In addition to this general dilution of the labor supply, shortages exist for special types of workers, notably industrial technicians, railway workers, and administrators of all types. 2. The large foodstuff demands of the Army have accentuated somewhat the underlying German weaknesses with respect to meats, fats, and oils; although the consequences of that weakness will be greater in 1942-43 than in the current harvest year. 3. The necessity for maintaining military production at a maximum level has caused withdrawals from stockpiles in the following instances: Tin, copper, antimony, and the steel-hardening alloys taken as a whole. |