ANNEX ESTIMATE OF ENEMY SITUATION IN EUROPE Report by Combined Intelligence committee. CONCLUSIONS 1. Germany's fundamental situation is relatively weak and deteriorating in comparison with the basic military and economic resources of her enemies. However, by skilfully applying available resources in selected efforts, Germany's leaders can, in favourable circumstances, achieve a local and temporary superiority of immediately available strength. 2. The Germans intend to conduct an active defense on interior lines with a view to preventing a concerted attack upon the Reich and to launch an all-out submarine assault against Allied shipping.