German Productive Capacity. Assumption of: Note by Secy., Circulating Draft Terms of Reference Prepared by Ministry of Economic Warfare

ENCLOSURE. DRAFT TERMS OF REFERENCE. 1. To instruct the Joint Intelligence Sub-Committee to report upon the maximum co-ordinated war effort of which Germany is capable during 1940, adding any relevant general observations possible in the light of information laid before them on the probable increase or decrease of that effort, should the war be prolonged into 1941. 2. That the basic assumption for this examination should be that German policy aims at developing the largest possible Navy, Army and Air Force, in the shortest possible time.