-2-
rate of production in the occupied countries of Europe
 
have, contrary to the expectations cherished, not improved markedly up to this time. The 
 
controlled government in the occupied countries of Europe have not provided any surplus
 
despite the employment of German military and civil administrative executives. In these occupied 
 
areas the Difficulties respecting foodstuffs, feeding stuffs and raw materials are felt more than in 
 
Germany, because there is a lack , to a great extent, of the positive economic conditions as to 
 
transportation, and adequate stocks of materials.   
 
     Thus the surplus in Germany's miliatary and economic potential thatw as 
 
calculated in the winter months of 1940-41 has turned out less than was expected and made the 
 
basis for miliatary decisions.
 
                    -3-
     For the sake of an orderly course of bussiness, portions of the valuable industrila plants 
 
of western, southwestern and northwestern Germany are constantly being moved to central and 
 
southern Germany and Austria, including Silesia and Bohemia-Moravia. Because of this, delays in 
 
production occur, overburdening of the railroads, difficulties in transplanting tha labor forces, ect. 
 
It has not been possible to conduct this shifting