German Situation in Italy. Report by J.I.C.

5. Naval and Shipping. Italian fleet has followed Allied terms as faithfully as possible and, so far as at present known, only warships remaining under German control are those repairing, refitting, or building and number of small craft which, for one reason or another, did not escape. Greatly increased freedom now given to our Naval forces in Mediterranean and Adriatic should do much to prevent enemy maintenance by see even if contemplated. Extent to which merchant shipping has fallen into German hands not yet known, but number of ships in Gulf of Genoa Parts and North Adriatic known to have been seized and some scuttling carried out.