Enquiry from C.-in-C. Middle East. Note by Secy.

Three (a) Oil situation continues strained. At beginning 1942 campaigning season stocks reduced to point where little margin available allow of any consumption in excess new supplies. (b) Military requirements met during summer only by reducing civilian and industrial supplies substantially below efficiency level. Although flexibility oil industry should have prevented any serious shortage any particular range products, recent reports indicate failure meet certain Service needs. (c) Over-all production increasing, and position being further alleviated by development substitute fuels such as producer gas.