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Aachen, Bremen, Hamburg and Kiel. The damage to date in Berlin has been
 slight, however. Should this bombing by the English continue to increase, 
the inhabitants in some of the above enumerated cities may not be able to 
stand it much longer, and will decamp.
 
     It is obvious that German workmen, to say nothing of indentured work-
men, will not continue indefinitely to produce under the present high 
pressure conditions. This fact is evidenced by the noisy protest meetings 
held in numerous factories last month, in addition to serious revolt at the 
Junkers works at Dessau and Leipzig, and at the shipyards in Hamburg and 
Bremen. Such grumblings cannot be curtailed without placing a substantial 
percentage of available work, hen in prison camps, which would result in a 
serious stoppage of production. Even though serious consequences might 
follow if such a step were taken, it would not mean that German morale would 
crack. The German rulers try to avoid shooting those who interfere with the 
production schedule, but would not hesitate to do so if they felt conditions 
warranted such steps.
 
IV. Intelligence information on Italy. (Source - Adelchi Serena)
 
     Italian people no longer believe in German victory, but cannot get 
out of Germangrip. The morale is low and there is a longing for peace, but 
nevertheless there have been no strikes or sabotage in factories.
 
            Hitler asked for ten more Italian divisions for Russia, but I1 Duce re-
fused on the grounds that Italian soldiers were not inured to the Russian 
climate. The Axis is training many Germans and Italians in Sicily, while 
at the German Colonial School in Rome, there are being brained 2,200 young 
Germans for colonial police.
 
          Bombardment of Naples toward the end of August hit a big munitions
train of 98 cars which all exploded. Missed, however, were two large cruisers 
and three destroyers in the harbor. These were protected by a smoke screen. 
The ships mentioned were still there about the tenth of September.
 
             The Italians are working hard on fortification of the Italo-Austrian 
frontier.
 
             The Italian government no longer believes that Japan can be relied on
as an axis partner.
 
V. Military Intelligence.
 
     Germany has great need of manganese, rubber, cotton, and nickel. 
Their supply of copper seems to be sufficient for about one year, and they 
have enough gasoline for the time being.
 
            During the past six months some twenty auxiliary cruisers have been 
completed and equipped. In part, these cruisers have been converted from 
large freighters seized from Holland, Belgium, and Norway, and bought from 
Denmark. Four 18,000 ton cruisers of a new secret type are now under
 
 
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