j T.N.T. Production outside the United States is
practically stationary during 1942. U.S. schedules indicate that
quarterly production will be approximately doubled during 1942.
Even with this expansion, presently scheduled production is inade-
quate to meet requirements. Early in 1942, U.S. quarterly produc-
tion is approximately 50% greater than U.K. plus Canada, and reaches
three times their combined production by the end of 1942.
k. Naval Vessels
(U.S., U.K., AND CANADA)
Production
On Hand 1s 2d 3d 4th On Hand*
1/1/42 Quarter Quarter Quarter Quarter 12/31/42
Battle Ships & Battle Cruisers 33 0 3 1 2 39
Aircraft & Seaplane Carriers 14 1 0 0 0 15
Cruisers & AA Ships 108 4 5 4 3 124
Destroyers 447 29 39 42 41 598
Submarines 203 16 14 17 20 270
Convoy Escort Vessels** 217 (8) (5) (7) (11) 248
*Assumed no losses
**50 on order for U.K. under Lend-Lease on which no schedules are
available. No orders placed for this type ship for the U.S. Navy.
4. What has been discussed above is based upon the existing
production schedules of the United Kingdom, Canada and the United States
for 1942. The present proposal is to increase the productive capacity of
the means of warfare in the United States in 1942 by approximately
13 billion dollars. There exists at present a list of supplies required
beyond the existing production schedules. Based on this list, and a
consideration of 1942 production possibilities as they are now envisaged
by O.P.M. and S.P.A.B., it is planned to utilize this additional U.S.
productive capacity as discussed below (also, see attached list.) However,
the production of these supplies is still in the planning stage and does
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