APPENDIX 1.
                                
  DECISION ON PRODUCTION REQUIREMENTS FOR MAJOR CATAGORIES OF
               MATERIALS RECOMMENDED BY THE NAVY.
                                
(D)  MERCHANT SHIPPING PROGRAM, for completion by December 31, 1944.
 
     1.   Increase United States merchant shipping to a continuing total of 18,000,000 gross
     tons, including 600,000 gross tons for the U.S. Navy, additional to the present program.       This merchant is to be manned by the United States.
 
     2.   Supply the British Commonwealth with merchant shipping of a total of 6,000,000  gross tons.
 
     Note:     An analysis of shipping requirements is as follows:
 
     a.   For United States Industry and Latin-America, including sea-going and coastwide           ships of over 1,000 gross tons               --   6,000,000 gross tons
 
     b.   For support of U.S. Army forces in Europe, Africa, and South America, estimated           at 1,500,000 troops.                         --   2,400,000 gross tons
 
     c.   For transporting annually 12,000,000 tons of munitions for the support of       Associated armed forces in Middle East, Russia and Asia, (estimated as the           munitions requirements of 2,000,000 troops)  -- 5,000,000 gross tons
 
     d.   For support of population, industry and armed forces in United Kingdom, (annual           delivery of 15,000,000 tons)                 --   4,000,000 gross tons
 
     e.   For transports for U.S. Navy for support of overseas naval forces and U.S. Army           overseas garrisons                      --   600,000    gross tons
 
               Total required by 1944             --   18,000,000 gross tons
 
               Loss of U.S. Flag vessels
               expected by 1944                   --   3,000,000 gross tons