To the unnaturally small size of that group within the German
population
 
    2. The extension and maintenance of a 2,000-mile front, at increasing distancs from German
centers of production, has created a disproportionate demand for railway equipment and other
transport facilities.
    3. Since German plane losses have been principally in bombers, they are somewhat more
serious than the over-all figures would indicate. In view of reserves and the current production
rate, however, plane losses are not to be regarded as a major German cost in the present
campaign.
    4. The magnitude of oil consumption in Germany and occupied countries when combined with
military consumption, seems definitely to create, at least temporarily, a.situation in which
consumption is at a greater rate than production.
 
                                        I I I. The German Economic Position
 
A. GERMAN MANPOWER RESOURCES
 
    1. As early, as 1935 the present regime in Germany began to extend a system of controls over
employment; by 1936 a large-scale plan for the control of employment and the inventory, training,
re-training, and allocation of labor was in effect. As a result of the carrying out of this plan
Germany is in an extremely good position to make the most flexible and efficient use of her labor
supplies.
    2. At the outbreak of the war in 1939 the potential manpower resources of Greater Germany
were already utilized to an extraordinarily high degree. It is estimated that employment in 1939
was 20 percent higher than in the prosperous year1929.
    3. Before the outbreak of the war in 1939, 2,500,000 men were withdrawn from employment
into the armed services. At the outbreak of the Russian campaign this number had been increased
by approximately 7 million.