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Reports of German troop concentrations in Slovakia have not been confirmed, and it is thought that the only German personnel in the country, apart from the Military Mission and a few staff officers, are specialists engaged on improving communications. There is no further information regarding the reported formation of a new Army Group in Austria.
18. There are no indications that an expeditionary force is being concen- trated on the Baltic Coast for action against Scandinavia. A recent report that units stationed in the Lubeck area had been transferred to the interior tends to confirm this view, as it is a normal procedure in the German Army for new units, after attaining a certain stage in their depot training, to be sent to camps for field training in co-operation with other units of the division. It is thought that the forces in this area do not exceed those normally stationed there in time of peace.
The Railway Situation.
19. The German railways have been worked at high pressure for the last three years, but rolling-stock and the permanent-way have not been maintained on a corresponding scale. As a result there is a shortage of locomotives and goods wagons, and axle failures are showing a significant rise. There is also evidence of an acute shortage of skilled railway labour.
On the other hand, there is no reason to presume that the railway system is on the verge of collapse. The closing down of retail enterprise and the immobiliza- tion of merchant shipping have given Germany a pool of labour, admittedly unskilled at railway work, but available to replace railwaymen now in the fighting forces. Moreover, Germany can borrow large numbers of wagons from adjoining countries and, so long as armaments wastage remains at a low level, material and workshop space can be readily made available for repairs and overhauls..
The most critical period is likely to be the remaining winter months, while the staff is suffering from fatigue and the canals and rivers are out of operation.
Slovakia.
20. Reports have been received indicating the Slovak Government's desire to increase the army to six or eight divisions. Though the necessary equipment for at least six divisions was at one time available after the Czecho-Slovak army was disbanded, it is doubtful if this is the case to-day, as the Germans seized all surplus Czecho-Slovak material some time ago. The present strength of the Slovak army is estimated at about 40,000-60,000, all ranks.
Hungary.
No credence is to be given to the rumours which persist concerning the arrival of Italian troops in Hungary. The presence of Italian officers on attach- ment to the Hungarian army is, however, admitted. It is possible that they are acting as instructors.
Soviet Russia.
22. Great care has evidently been taken to prevent the circulation of news from Finland. Except in Leningrad, the occupied provinces of Poland and, to a lesser extent, in Moscow, there are no signs of any serious misgivings. In Moscow and Leningrad rumour is rife and grave food shortages have made the population apprehensive; the mood, however, appears to be one of apathy rather than of open dissent. The unrest in Poland is probably more serious and appears to have affected units of the army of occupation. Reports, both from Poland and the Baltic States, suggest that the Finnish campaign is far from popular with the rank and file. Sensational press reports of purges of Red Army commanders and leading political personalities cannot be confirmed and are thought to be much exaggerated.
Further reports from Estonia help to explain the exemplary attitude of the Soviet troops towards the population, which is in marked contrast to their rather defiant attitude to their own officers. In one case the Estonian police arrested a drunken Russian sailor and telephoned to the Soviet Naval Command to ask what they should do with him. The answer was shoot the dog." In another case
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