disposed in the Eastern Baltic and are likely to remain there. In the Mediterranean, Allied sea and air operations have reduced the effective strength of Germany's surface and submarine fleet to almost negligible proportions. 12. Dwindling supplies of materials vital for the war effort, such as oil and non-ferrous metals, an overall fall in production due to bombing and other causes, and transport shortages and dislocation have reached a point where the operational efficiency of the armed forces is being directly affected.