ANNEX II. MEMORANDUM BY THE WAR OFFICE. THE GERMAN ARMY. A total of 158 divisions were believed to exist on 3.3.40. We think, however, that more divisions are now being formed. It is difficult to make an estimate but we consider that there is fairly ample evidence that a total of 176 divisions may exist in April and that even this number may be exceeded before long. The armament of these divisions will depend on the output of the German armament factories, about which information is meagre. 2. Developments in the German tank arm are taking the following form:(a) the creation of new armoured divisions.