However, if difficulties should arise in the delivery to the Armed Forces with aluminum, then the Reichministry for Economy is ready to take up negotiations again.

MW [initials in pencil]

Inclosure

Textile and Leather Requirements of the Armed Forces

Raw materials Requirement in
the year 1936
in tons 		Requirement in
the year 1937
in tons 		Required additional
cash foreign exchange
Requirements in millions
of marks
Sheared wool 7 200 18 152 24
Wool scrap [Reisswolle] 1 040 4 900 3
Combings 11 42 --
Mohair wool -- 260 0.75
Wool from tanned hides
[Gerberwolle] 		761 1236 --
Silk 23 72 0.5
Cocoons[4] 72 72 --
Silk yarns[4] 48 48 --
Cotton of which quality cotton
Portiers and shelter halves (Egypt) 		8 600 16 200
about 4 000 4
Cotton scraps 560 835 --
Artificial silk 310 670 --
Cellulose wool 1 080 3 130 --
Cleaned flax [Schwingflachs] 3 600 4 800 --
Flax scrap 7,070 10 500 --
Jute 2 100 2 100 --
Soft hemp and hard fibers 1 100 1 635 0.25[5]
of which hard fiber about 200
Sleek leather 11 000 24 000 --
Skins for uppers 7 100 13 900 --
Tanned leather 4 100 --
Leather for soles 9 500 22.5[6]
Total 55.00

[4] figures by Reichministry for air

[5] for 400 tons soft hemp and 200 tons Manila and Sisal

[6] for 22 500 tons hides corresponding to 11 200 tons leather

It must be considered in the calculation of the foreign exchange requirements for the upkeep of the export of woolen goods, that the wool industry cannot stand more than a 10% decrease of the present amount, if it is to retain its export capability. Instead of Australian wool, one must reach back to about 50% of the available South-African wool for exports. The wool available through the limitations of value of the clearing agreement is entirely used for export. The calculated amount of foreign exchange and the most urgent requirement within Germany of 12 million marks only applies under the condition that there are until the end of September still 2 million marks in cash foreign exchange available.