-4-
 
     Aircraft production was further shifted during the
 
winter months of 1940-41, as for example Messerschmidt, 
 
Augsburg-Regensburg, etc. For example, Junkers and Heinkel 
 
have compact production, enters (building of engines and
 
assembling) at Dessau and Restock. The rate of production 
 
has been reduced by decentralization.
 
5.
 
     Operations at sea. Besides the known crossing boats,
 
there are newly built fighting boats and assault boats with 
 
the most modern defensive and offensive weapons for sea and
 
coastal fighting.  Special significance is attached to the
 
torpedo arm, which is being developed at Eckernforde, north-
 
west of Kiel, the only experimental and testing establishment.
 
II.
 
The Generally Operating Forces of a Military
and Strategic Nature.
 
     The demands made on the German army, air force and Navy
 
to an increasing extent since January of this year are due to:
 
1.
 
     The dropping out of the Italian army, including the
 
air force and the navy; this means an unexpected tying up
 
of rather strong German forces in the Mediterranean area
 
(including North Africa), as well as in the Balkans facing