A. The world over—
(1) There was a critical shortage of ocean tonnage which promised to become more critical as time passed on account of the success of German submarine operations.
B. In France and England—
(1) The output of factories was being seriously curtailed and limited by lack of raw materials and semifinished products.
(2) If an adequate supply of raw materials and semifinished products could be made available, the factories had a substantial surplus manufacturing capacity which could be placed at the disposal of the United States.
C. In the United States—
(1) A surplus of raw materials and semifinished products for transport to France and England could quickly be made available.
(2) It would be impossible, within less than a year, to build up additional manufacturing capacity in the United States sufficient to supply a large army.
The lack of ocean tonnage was recognized by all as the vitals of the problem. France, Italy, and the United States had comparatively little merchant tonnage. England's vast tonnage was suffering rapid depletion by submarine losses and was totally inadequate to meet allied needs. Ships were the biggest single deficiency in the interallied program.