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198, it must remain there. We cannot increase our naval strength; for all of our navy yards and shipbuilding plants on the Atlantic seaboard are in the hands of the enemy. Whatever the duration of the war, Mr. President, the command of the sea will remain with the Germans; and they will be free to bring over the whole German Army, should they wish to do so."

He was followed by the Chief of Staff, who said:

"As to the military situation, Mr. President, the conditions are easily stated.

"The enemy is in undisputed possession of the richest, most valuable, and most densely populated section of the United States. He holds all that part of the country north of the Potomac lying between the Alleghanies and the Atlantic Coast. Being in command of the sea and possessing ample transport, he is free to