27. UNIT CONSTRUCTION
27.1 CONSTRUCTION COSTS
27.2 RESTRICTIONS
27.3 CONSTRUCTION LIMITS
27.4 PLACEMENT OF NEWLY CONSTRUCTED UNITS
27.5 FORCE POOLS AND INTER-THEATER TRANSFERS
27.6 NAVAL AIR CONSTRUCTION
27.7 NAVAL CONSTRUCTION AND REPAIR
27.8 INVERSION OF NEWLY CONSTRUCTED AIR AND NAVAL UNITS
27.9 CONSTRUCTION OF SW UNITS

27.1 CONSTRUCTION COSTS:
27.11 BRP COSTS: During the unit construction phase, subject to its construction limit (27.3), each major power may construct units at the following cost in BRPs per combat factor:
A. One BRP per factor: Infantry, replacements, naval air, kamikazes, flak.
B. Two BRPs per factor: Armor, partisans.
C. Three BRPs per factor:
D. Five BRPs per counter: Fortifications, railheads.
E. Five BRPs per two counters: Beach defenses.
F. Ten BRPs per counter: Ports.
27.12 These construction costs are summarized in the BRP Costs Chart in the player aids:

BRP Costs Chart - 27.12

Action

BRP Cost

Declarations of war:

 

Against a major power

35

Against a minor power

10

Full Offensive:

15

Limited or Participation Offensives:

 

Each ground or air factor used

1

Each destroyer or escort carrier factor used

1

Each 2-factor cruiser or named ship used

1

Unit Construction (per factor):

 

Airborne units, Chindits, marines, commandos, army air, jets, strategic bombers, interceptors, destroyers, cruisers, capital ships, carriers, transports, submarines, ASW

3

Armor, partisans

2

Infantry, replacements, naval air, kamikazes, flak

1

Fortifications, railheads (per counter):

5

Beach defenses (two counters):

5

Ports (per counter):

10


27.13 RECONSTRUCTION COSTS DOUBLED: The following units may be rebuilt in the turn they are eliminated at double the normal BRP construction cost or in a subsequent turn at the normal BRP construction cost:
A. Units rebuilt in the turn they are eliminated as set out below. Such units may be rebuilt in a subsequent turn at the normal construction cost:
B. Units built subject to construction oil effects (27.35).
27.14 RECONSTRUCTION COSTS TRIPLED: Isolated or voluntarily eliminated units (27.13A) which are rebuilt subject to construction oil effects (27.13B) are rebuilt at triple the normal construction cost.

27.2 RESTRICTIONS:
27.21 ONE TURN DELAY IN CONSTRUCTION: Specialized units may not be rebuilt in the player turn in which they are eliminated.
27.22 RECONSTRUCTION PROHIBITED: The following units may not be rebuilt if eliminated:
A. Dutch units in the Pacific.
B. Vlasov, Wang, and Indian National Army units (EXCEPTION: Indian National Army units added to the Japanese force pool due to Japanese control of Burmese and Indian objectives - 72.93A). This does not preclude the construction of additional such units if otherwise permitted.
C. Minor country naval units (EXCEPTION: Australian cruisers and destroyers).
27.23 NAVAL AIR UNITS: Naval air construction is subject to naval air training limits (17.353, 27.6). Elite Japanese NAS are rebuilt as normal NAS (17.352).
27.24 NAVAL UNITS: Special rules govern the construction of naval units, transports and ASW (27.7).

27.3 CONSTRUCTION LIMITS:
27.31 EFFECT OF CONSTRUCTION LIMITS: The number of BRPs each major power may expend each turn on the construction of air, ground, naval and SW units, fortifications, railheads, ports and partisans may not exceed its construction limit.
27.32 DETERMINING CONSTRUCTION LIMITS: Construction limits are determined as follows:
A. BASIC CONSTRUCTION LIMIT: The basic construction limit for each major power is one-third of its BRP base, rounded down. Russia includes the BRP value of ICs under its control.
B. REDUCTIONS: The basic construction limit for each major power may be reduced as set out in 27.33.
C. INCREASES: The basic construction limit for each major power may be increased as set out in 27.34.
27.33 REDUCTIONS IN CONSTRUCTION LIMITS:
27.331 TRANSPORT SHORTAGES, BOMBING AND AXIS UNITS ADJACENT TO MAPBOARD BOXES: For every three BRPs lost because of transport shortages, bombing and Axis units adjacent to mapboard boxes, the affected major power's construction limit is reduced by one BRP. When making this calculation, the BRP losses from these causes are totaled, divided by three and rounded down.
A. TRANSPORT SHORTAGES: Transport shortages affect only Britain and Japan (20.635).
B. BOMBING:
C. AXIS UNITS ADJACENT TO MAPBOARD BOXES:
27.332 IRON ORE (Germany only): If iron ore shipments from Sweden are cut off (86.42), Germany's construction limit is reduced by five BRPs. This effect is not cumulative and is negated if iron ore shipments are restored.
27.333 ROCKETS: For every BRP lost to rocket attacks on a key economic area, mapboard box or IC, the construction limit of the defending major power is reduced by one BRP.

The limits on the effects of bombing and rocketing the Australia, India and Urals boxes and having Axis units adjacent to them are cumulative. The Australian and India construction limits may be reduced by no more than three BRPs per turn from all three causes and the Russian construction limit may be reduced by no more than 15 BRPs per turn from all three causes.

27.334 BRP GRANTS: For every three BRPs (round down) granted by a major power, its construction limit is reduced by one BRP in the turn the grant is made (40.23A).
27.335 KEY ECONOMIC AREAS UNDER ENEMY CONTROL: If a key economic area which was originally controlled by a major power is under enemy control, the value of that key economic area is deducted from the originally controlling major power’s BRP base before determining its basic construction limit. If such a key economic area is also bombed in the turn in which it is captured (27.331), any BRP losses from bombing are deducted from the value of the key economic area before determining construction effects. The Commonwealth portion of the British base (40 BRPs, unless Australia or India has surrendered) is always included in the calculations to determine the British construction limit, regardless of lost key economic areas in Britain itself.
27.34 INCREASES IN CONSTRUCTION LIMITS: For every three granted BRPs (round down) received by a major power, its construction limit is increased by one BRP in the turn the grant is received (40.23B). The increase to the recipient’s construction limit is always the same as the reduction to the granting major power’s construction limit (27.334). Construction limit increases from BRP grants are taken into account after all reductions to the recipient’s construction limit are determined (27.33). American BRP grants to Canada, South Africa, Australia and India have no effect on the British construction limit (40.244).
27.341 GERMAN CONSTRUCTION LIMIT INCREASES: The German construction limit is increased by one BRP beyond its normal level for each BRP lost by Britain or Russia to German flying bombs and rockets. This effect is determined each turn; losses inflicted in previous turns have no additional effect.
27.35 CONSTRUCTION OIL EFFECTS: For each alliance faction, the number of oil counters expended to offset construction oil effects (33.61D) affects construction costs as follows:
A. Each oil counter used to offset construction oil effects allows 25 BRPs of units to be built at normal construction costs (27.11):
B. Units subject to construction oil effects are built at double the normal construction cost (27.13B).
C. Isolated or voluntarily eliminated units which are also built subject to construction oil effects are built at triple the normal construction cost (27.14).
D. Using oil counters to prevent construction oil effects avoids increased construction costs, but does not allow a major power to exceed its construction limit.
E. Britain and Russia are considered to have incurred the construction oil effect for resistance level purposes unless at least one oil counter was used to reduce unit construction costs.
F. German and Italian construction costs are combined when determining the effects of European Axis oil expenditures for construction purposes, although each major power has a distinct construction limit.
G. The Western Allies do not track oil consumption until the turn after the Fall of France (33.48), and the United States has unlimited oil. Western Allied oil expenditures are therefore only required for British construction.

27.4 PLACEMENT OF NEWLY CONSTRUCTED UNITS:
27.41 ELIGIBLE LOCATIONS: The placement of newly constructed units is subject to the following limitations:
27.42 HOME COUNTRY: Units may only be constructed in the constructing major power's home country (EXCEPTIONS: 27.47), subject to the following qualifications and restrictions:
A. GERMANY: East Prussia is an integral part of Germany.
B. ITALY: Sicily is an integral part of Italy. Italy may not construct units in Sardinia.
C. JAPAN: Only Kyushu, Shikoku, Honshu and Hokkaido are considered Japan's home country; Japan may not construct units in Karafuto, the Kuriles or Okinawa.
D. BRITAIN: Ulster is an integral part of Britain. Certain British naval units may be built in Canada (70.15). Otherwise British units may be built in Canada only if Britain has surrendered and the British resistance level is zero or less or if all hexes in Britain are isolated or under Axis control (59.82).
E. FRANCE: France may not construct units in Corsica. The French colonial 1-3 infantry units must be rebuilt in their respective colonies (75.61).
F. RUSSIA: Russia may not construct units in eastern Europe or the Urals box. For unit construction in Siberia, see 27.476.
G. U.S.: American units may be constructed in either U.S. box.
H. CHINA: Nationalist and Communist China may not construct units in Manchuria.
27.43 SUPPLY:
A. GENERAL: Units may not be constructed in isolated or partially supplied hexes. The supply and oil status of a newly constructed unit is considered to be the same as that of the hex or mapboard box in which it is constructed.
B. RUSSIA: Russian units, including fortifications, may only be constructed in hexes which can trace a supply line from the Urals box (30.225).
27.44 ENEMY ZoCs: Units may not be constructed in hexes which are in an enemy ZoC. If two countries are not at war, units may be constructed in a border hex despite the ZoC of a future enemy's armor unit.
27.45 HEX CONTROL: Units may only be constructed in hexes which were controlled by the constructing major power at the beginning of the player turn of construction. Units may not be constructed on hexes which are recaptured from the enemy until the player turn following their recapture.
27.46 STACKING LIMITS: Stacking limits must be observed during placement.
27.47 UNIT CONSTRUCTION OUTSIDE HOME COUNTRIES: Unit construction outside a home country is permitted as follows:
27.471 JAPAN: Japan may construct up to three factors of infantry (only) each turn in Korea and Manchuria. This three factor limit applies to the total number of factors constructed, not the number of factors constructed in each location.
27.472 SOUTH AFRICA:
A. LOCATION: South African units are built in the South Africa box.
B.COST: The cost of constructing South African units may be paid by:
27.473 AUSTRALIA:
A. LOCATION: Australian units may be constructed in Australian hexes or in the Australia box.
B. PER TURN LIMITS: The Australian construction limit is nine BRPs per turn and is subject to the following per turn limits:
C. COST: The cost of constructing Australian units may be paid:
27.474 INDIA:
A. LOCATION: Indian units may be constructed in Indian hexes or in the India box.
B. PER TURN LIMIT: The Indian construction limit is three BRPs per turn.
C. COST: Britain must pay for Indian unit construction. The cost of Indian unit construction counts against the British construction limit.
D. CHINDIT: The Chindit may be constructed in any eligible Indian hex or in the India box. The BRP cost of constructing the Chindit counts against the British, but not the Indian, construction limit.
27.475 CANADA:
A. LOCATION: The Canadian 4-5 armor unit and Canadian 3-4 infantry units are constructed in Canada.
B. SHIPBUILDING: Subject to the limit of the Canadian shipbuilding capacity, Western Allied ASW and transports, and British destroyers, submarines, cruisers and two-factor named ships, may be constructed in Canada.
C. COST: The cost of unit construction in Canada may be paid by:
27.476 RUSSIA: Russia may construct up to six BRPs of ground and/or air units in Siberia each turn at the normal BRP cost. Russian units may not be constructed in Mongolia or Tannu Tuva.
27.477 FRANCE: The French 1-3 infantry units represent French colonial forces and may only be rebuilt in the colonies in which they began the campaign game (75.61).
27.478 FORTIFICATIONS: See 32.1.
27.479 RAILHEADS: See 28.65.
27.48 PARTISANS: For the rules relating to the construction of partisans, see 11.3.

27.5 FORCE POOLS AND INTER-THEATER TRANSFERS:
27.51 GROUND UNITS MAY NOT BE ALTERED: Britain, the U.S. and Russia may transfer units from one theater to another. Ground units may not be broken down into smaller denominations or combined into larger denominations when transferred between theaters. The movement factor (ground units) and range (air units) for both theaters is indicated on the unit counters.
27.52 AMERICAN CONSTRUCTION: American units may be constructed in either U.S. box, regardless of where they were lost. American ground and air units may also be transferred from one theater to another by SRing them from one U.S. box to the other (28.751A, 28.752A) or by using Indian Ocean transports (28.753-28.755).

27.6 NAVAL AIR CONSTRUCTION:
27.61 NAVAL AIR TRAINING RATES: The number of factors of naval air which may be built each turn is limited for all major powers as follows: the U.S.: 4; Japan: 3; Britain: 2; Germany: 1; Italy: 1. These limits apply to both the construction of new force pool additions and the rebuilding of naval air units which have been eliminated. American construction of CVEs is limited by, but not counted against, naval air training rates (17.353B). Naval air training rates may be increased by the investment of RPs in production (42.23D). France, Russia and China may never build naval air units.

27.7 NAVAL CONSTRUCTION AND REPAIR:
27.71 SHIPBUILDING: Each major power may use its shipbuilding points to construct naval units as set out in 27.711 and 27.712. The capture of a shipyard (27.73) by an opposing alliance faction displaces ships on the "2" or "Launch" row of the Naval Construction Chart for that shipyard (21.23) and eliminates all other ships being built at that location, but does not affect the capability of the major power which originally owned the shipyard to build submarines, ASW and transports in other ports. Naval units may be constructed in the following locations:
27.711 Submarines, ASW and transports may be constructed in the following locations:
A. Any controlled, fully supplied port in the constructing major power's home country.
B. Either U.S. box (U.S. only).
C. Canada (Britain only).
27.712 Destroyers, CVEs, cruisers and named naval units may be constructed in the following locations:
A. Any controlled, fully supplied port in the constructing major power's home country which contains an anchor symbol.
B. Either U.S. box (U.S. ships and British CVEs).
C. Canada (British destroyers, cruisers and two-factor named ships).
D. Australia (Australian destroyers and cruisers). No more than two Australian destroyer factors and two Australian CA2s may be in play at any time.
27.713 USE OF CAPTURED SHIPYARDS: Enemy shipyards may be used to repair cruisers and named ships, but not to build new ships, if the hex containing the shipyard is controlled by the alliance faction wishing to use it and the originally controlling major power has surrendered. The Naval Construction Chart for that shipyard is used to keep track of repairs. Each captured shipyard has a shipbuilding rate of one and a shipyard capacity of two. If a shipyard is recaptured by its owning nation, the full shipyard rates and capacity are restored. If recaptured by an ally after the original country has surrendered, it is treated as a captured shipyard, with a shipbuilding rate of one and a shipyard capacity of two.
27.72 SHIPBUILDING AND BRP COSTS: Each naval factor requires one shipbuilding point and three BRPs to construct.
27.721 REPAIR AND CONSTRUCTION TIMES:
A. SUBMARINES, ASW AND TRANSPORTS: Submarines, ASW and transports are launched immediately, at a cost of one shipbuilding point and three BRPs for each factor. Transports are repaired immediately at no shipbuilding or BRP cost when they return to base.
B. DESTROYERS and CVEs: Destroyers and CVEs are launched in the turn following their construction, at a cost of one shipbuilding point and three BRPs for each factor.
C. CRUISERS AND NAMED SHIPS:
The number of turns and shipbuilding cost to build and repair cruisers and named ships are set out below.

Naval Repair and Construction Costs - 27.721

Status:

Damaged

New Construction

Unit:

Turns

SB

Turns

SB

Transports

immediate

no cost

immediate

1

Subs, ASW

not applicable

immediate

1

DDs, CVEs

not applicable

1

1

CAs

1

no cost

2

2

2-factor ships

2

1

4

2

3-factor ships

2

1

8

3

4-factor ships

2

1

12

4

5-factor ships

2

1

16

5

Named ships which are sunk in port may be repaired by first expending one shipbuilding point and three BRPs to raise them to damaged status, after which they may be transferred to a shipyard for repairs in the normal manner. Cruisers, destroyers and CVEs which are sunk in port are permanently eliminated.

With the exception of transports, which are repaired at no cost, one-factor naval units are never damaged.

The construction of three-factor and larger ships may be accelerated (27.7272B); the construction and repair of naval units may be deferred (27.7272C).

Only the U.S. may build CVEs


27.722 RESTRICTIONS ON NAVAL CONSTRUCTION:
27.7221 ONE-FACTOR NAVAL UNITS:
A. Each turn no more than half (round up) of each major power's shipbuilding rate may be used to construct destroyers, CVEs, submarines, ASW and transports. This limit applies separately to each major power shipyard.
B. There is no restriction on the proportion of major power shipbuilding which may be used to construct cruisers and named ships.
27.7222 FAST CARRIERS:
A. The U.S. and Japan may build CVs, CVBs and CVLs.
B. Germany, Italy and Britain may build only CVLs.
C. Russia, France and China may not build fast carriers.
D. For restrictions on American pre-war fast carrier construction, see 27.7325.
27.7223 CVEs:
A. Only the U.S. may build CVEs.
B. The U.S. may build British CVEs once USAT reach 28, with the cost of construction counting against the American BRP grant limit. Construction of British CVEs is limited by the British naval air training rate.
C. The U.S. may build American CVEs once USAT reach 35. Construction of American CVEs is limited by the American naval air training rate.
27.7224 NOT LIMITED BY COUNTER MIX: The construction of naval units is not limited by the available counters.
27.723 THE NAVAL CONSTRUCTION CHART: The construction of destroyers, CVEs, cruisers and named ships, and the repair of cruisers and named ships, is tracked using the Naval Construction Chart on the owning major power's scenario card. Each port or mapboard box in which cruisers and named ships may be repaired and constructed has its own Naval Construction Chart.
27.724 USING THE NAVAL CONSTRUCTION CHART: Each Naval Construction Chart sets out the following essential features of the port or mapboard box it represents:
A. SHIPBUILDING RATE: The shipbuilding rate represents the number of shipbuilding points which may be expended in that port or mapboard box in a single turn. The American prewar shipbuilding rate is determined by the extent to which it mobilizes its shipyards as USAT and USJT increase (36.34).
B. SHIPYARD CAPACITY: The shipyard capacity represents the number of destroyers, CVEs, cruisers and named ships which may be undergoing repair or construction in that port or mapboard box at any given time. Ships waiting for repairs do not count against shipyard capacity or the basing capacity of the port in which the shipyard is located. Submarines, ASW and transports do not count against shipyard capacity. The shipyard capacity is equal to twice the shipbuilding rate for each location (EXCEPTION: The starting shipyard capacity for each U.S. box is ten, even though the starting shipbuilding rate for each U.S. box is only one. Once the shipbuilding rate for a U.S. box exceeds five, the shipyard capacity of that U.S. box increases normally).
C. SHIPBUILDING LEVELS: Shipbuilding levels are used to track the progress of naval repairs and construction. As a naval unit nears completion, it is moved down the Naval Construction Chart towards the "Launch" row.
D. WAITING FOR REPAIR: Damaged ships are placed in the "Waiting for Repair" box until repairs are begun by placing them on the appropriate box of the Naval Construction Chart.
E. STARTING FORCES: The Fall 1939 status of partly-built ships is indicated on each Naval Construction Chart. After the counter corresponding to each such ship is placed on the Naval Construction Chart, these starting positions are ignored.
27.725 BEGINNING NEW CONSTRUCTION:
27.7251 A major power must expend one shipbuilding point and three BRPs to begin construction on a ship, regardless of the ship's size or type:
A. Named ships are placed on the applicable Naval Construction Chart in the row corresponding to their size and in the column for that turn. Thus a 3-factor ship laid down in spring would be placed in the "3" row in the "Spring" column.
B. Cruisers are placed in the "2" row two columns from the column for the turn in which construction is begun. Cruisers must be constructed in two factor increments. Thus a cruiser laid down in spring would be placed on the "2" row in the "Fall" column.
C. Destroyers and CVEs are placed in the "Launch" row one column to the right of the column for the turn in which construction is begun. Destroyers and CVEs constructed in winter turns are placed in the "Launch" row of the spring column.
27.726 BEGINNING REPAIRS:
27.7261 DAMAGED SHIPS: Damaged cruisers and named ships may not be repaired until they are moved or redeployed to a location capable of carrying out their repairs. They are subject to interception while en route to their repair location and are sunk if they incur any additional hits. Once they arrive, they are placed in the “Waiting for Repair” box of the Naval Construction Chart for that location.
27.7262 SHIPS SUNK IN PORT: Named ships which are sunk in port may be repaired by first expending one shipbuilding point and three BRPs during a unit construction phase to raise them to damaged status, after which they may be transferred to a shipyard for repairs in the normal manner. Otherwise ships sunk in port may not move. Repairs may not be started on a ship in the same player turn in which it is raised to damaged status. Cruisers, destroyers and CVEs which are sunk in port are permanently eliminated.
27.7263 SOURCE OF SHIPBUILDING POINTS TO RAISE SHIPS: The shipbuilding point used to raise a ship sunk in port, which represents the transfer of technicians and workers to the ship's location, is taken from any shipyard controlled by the owning major power. American Atlantic shipbuilding may only be used in the European theater; American Pacific shipbuilding may only be used in the Pacific theater. British shipbuilding may be used in either theatre. A major power may not use its shipbuilding points to raise a ship belonging to another major power.
27.7264 LOCATION OF REPAIRS: Ships may be repaired in any fully supplied port which contains an anchor symbol and is controlled by the owner's alliance faction. Western Allied ships may also be repaired in Australia, Canada and, if the U.S. is at war with Germany or Japan, in either U.S. box. The cost of repairs is paid by the owner of the shipyard, or in the case of a captured shipyard, by the owner of the ship.
27.7265 VICHY FRENCH REPAIRS: Vichy French ships may be repaired or completed in the Marseilles shipyard prior to Vichy activation. There is no BRP cost for such repairs unless Vichy France has associated or activated.
27.7266 RESTRICTIONS ON REPAIRS:
A. ONE-TURN DELAY: Repairs may not be started on cruisers and named ships in the player turn in which they are damaged.
B. RUSSIA: Russian named ships and cruisers in the Pacific theater may not be repaired.
C. MINOR COUNTRIES: Minor country cruisers may be repaired in a shipyard belonging to a major power in their alliance faction, even if this would violate normal geographical restrictions for basing. Once repaired, such cruisers must again base in accordance with their geographical restrictions.
27.7267 INITIATING REPAIRS: During its unit construction phase, a major power may, by expending a shipbuilding point and three BRPs, transfer a damaged named ship from the "Waiting for Repair" box of a Naval Construction Chart to a space which reflects the time required to effect repairs. For example, in the unit construction phase of a spring turn, a damaged named ship (which takes two turns to repair) would be placed in the "Launch" row in the "Fall" column. Cruisers, which may be repaired at no shipbuilding or BRP cost (and which take one turn to repair), are placed in the "Launch" row of the column for the turn following their repair. Shipbuilding capacity may impede the repair of damaged named ships and cruisers.
27.727 CONTINUING CONSTRUCTION AND REPAIRS:
27.7271 Once construction or repairs have begun, no distinction is made between naval units which are under construction and naval units which are being repaired.
27.7272 During each unit construction phase, the moving player has four options (27.7272A - D) for each naval unit which appears in the column for that turn on each of his Naval Construction Charts. Naval units in columns for other turns are ignored unless they are scuttled (27.7272E):
A. CONTINUING CONSTRUCTION: Construction or repair of a naval unit may be continued, at the cost of one shipbuilding point and three BRPs, by moving the naval unit down one row in the same column.
B. ACCELERATING CONSTRUCTION: The construction of three-, four- and five-factor ships may be accelerated by spending an extra three or six BRPs beyond the normal three BRP cost of using a shipbuilding point (27.7272A). The expenditure of a total of six BRPs (including three BRPs for acceleration) and one shipbuilding point moves the accelerated ship down one row and one column to the left, so the next opportunity to advance the ship comes one turn earlier than would otherwise be the case. The expenditure of a total of nine BRPs (including six BRPs for acceleration) and one shipbuilding point moves the accelerated ship down one row and two columns over in either direction (a "knight's move", in chess terms), so the next opportunity to advance the ship comes two turns earlier than would otherwise be the case. Acceleration is subject to the following restrictions:
C. DEFERRING CONSTRUCTION: Construction or repair of a naval unit may be deferred, at no shipbuilding or BRP cost, by moving the ship counter along the same row one column to the right. Naval units in the “Winter” column are moved to the “Spring” column. Completion of construction or repairs is thereby delayed one turn. The voluntary deferring of naval construction is subject to the following restrictions:
o An Italian declaration of war against Britain or France;
o The first Axis full offensive on the western front; or
o The first German declaration of war against a minor country on the western front.
D. LAUNCHING SHIPS: Ships are launched from the "Launch" row of the Naval Construction Chart.
E. SCUTTLING: A player may voluntarily eliminate a naval unit, whether or not it is in the column for that turn, in order to free shipyard capacity for other uses. Scuttling is subject to the same restrictions as deferring naval construction (27.7272C; EXCEPTION: France may never scuttle ships).
27.7273 DESTROYERS: Construction of new destroyers requires one shipbuilding point and three BRPs. After one turn, they are launched automatically, without further expenditure.
27.7274 CVEs: Construction of new CVEs requires one shipbuilding point and three BRPs. After one turn, they are launched automatically, without further expenditure. The number of American and British CVEs which the U.S. may construct each turn is limited by the American and British naval training rates (17.353B).
27.728 STATUS OF SHIPS UNDER REPAIR OR CONSTRUCTION:
27.7281 Ships in the "Waiting for Repair" box of a Naval Construction Chart may move or redeploy from their port. Partially-completed and damaged ships on a Naval Construction Chart in the "2" or "Launch" rows may not voluntarily move or redeploy from their port, but are displaced if their port is occupied by enemy ground units. In both cases, such ships may be intercepted by enemy air and naval units and the ships are considered to be damaged prior to resolving combat arising out of interception by enemy air or naval units. Ships which move or redeploy from a "Waiting for Repair" box or which are displaced from the "2" or "Launch" row of a Naval Construction Chart are treated as damaged ships and are placed in the "Waiting for Repair" box of any shipyard they enter.
27.7282 Partially-completed ships in the third or higher row of a Naval Construction Chart may not move and are eliminated if their shipyard comes under enemy control.
27.7283 Damaged ships in the "Waiting for Repair" box that are attacked by enemy air units while in port are considered to be damaged prior to resolving enemy air attacks. Partially completed ships and those presently undergoing repairs may only be attacked by strategic bombing (26.76).
27.73 SHIPBUILDING RATES:
27.731 The shipbuilding rates at the start of the game are set out below. These shipbuilding rates may be increased by the allocation of RPs to shipbuilding:
A. GERMANY: 2 (Kiel)
B. ITALY: 2 (Genoa, Trieste: 1 each)
C. JAPAN: 3 (Tokyo)
D. RUSSIA: 2 (Leningrad, Sevastopol: 1 each)
E. BRITAIN: 6 (Glasgow (4), Canada (1), Australia (1))
F. FRANCE: 2 (Lorient, Marseilles: 1 each)
G. UNITED STATES: 2 (Atlantic (1), Pacific (1))
27.732 AMERICAN PREWAR SHIPBUILDING:
27.7321 The United States has a starting shipbuilding rate of one and a shipyard capacity of ten in each theater. The U.S. may increase its shipbuilding rate either by mobilization (36.34) or by production (42.23E):
A. American shipbuilding increases from mobilization must be assigned to the U.S. box in the theater in which tensions triggered the mobilization. No more than one shipbuilding increase may be generated by each mobilization.
B. American shipbuilding increases from production may be assigned to either U.S. box. American shipbuilding may not be increased through production in a theater until the U.S. is either at war in that theater or the U.S. tension level for that theater is 50 or greater.
27.7322 TRANSPORTS: The U.S. may use its shipyards to build transports prior to the outbreak of war between the U.S. and Germany as follows:
A. CASH AND CARRY: Until USAT are over 25, the U.S. may build Western Allied transports only in turns in which more than five transports were lost during the previous Axis player turn (EXCEPTION: Transports lost to Japan - 27.7322C).
B. LEND LEASE: Once USAT are over 25, the U.S. may build Western Allied transports regardless of how many transports were lost during the previous Axis player turn.
EXAMPLE: In Fall 1940, the effective USAT level is 21 and Britain loses six transports in the Atlantic. Some of the transports may be rebuilt in the U.S. at Britain's expense, using cash and carry, provided American shipbuilding points are available (the U.S. must continue the construction of existing ships - 27.7272C).
In Winter 1940, the effective USAT level is 29, and Britain loses five transports in the Atlantic. One transport may be rebuilt in the U.S. at American expense, as a BRP grant to Britain (the maximum grant level is 29 - 25 = 4 BRPs, which is enough to build one transport at a cost of 3 BRPs).
In Spring 1940, the effective USAT level is 33, and Britain loses seven transports in the Atlantic. Two transports may be rebuilt in the U.S. at American expense, and a third transport may be rebuilt in the U.S. with the U.S. paying 2 BRPs of the cost as a BRP grant, and Britain paying the remaining BRP as cash and carry (the maximum grant level is 33 - 25 = 8 BRPs, which is enough to build two transports at a cost of 6 BRPs and part of a third transport). The Western Allied player also could have Britain pay for more or even all of the American transport construction, if he wished to preserve American BRPs.
C. WAR WITH JAPAN: If the United States and Japan go to war before the United States and Germany go to war, transports sunk by Japan may be rebuilt in the Pacific U.S. box without regard for the USAT level and do not count against the American BRP grant limit to Britain.
27.7323 American ships built in the Pacific U.S. box prior to the outbreak of war with Japan do not become part of the Pacific Fleet if they are redeployed to the Atlantic U.S. box in the turn they are launched.
27.7324 If only one theater is being played, mobilization and production increases in that theater govern the American shipbuilding rate.
27.7325 RESTRICTIONS ON AMERICAN FAST CARRIER CONSTRUCTION: Prior to the outbreak of war between the U.S. and Japan, American construction of fast carriers is prohibited except as permitted by the events set out below. This restriction does not affect the continued construction of American fast carriers laid down prior to the start of the game. For each of the following events, the U.S. may begin the construction of one American fast carrier of any type:
A. The launch of the Hiryu (Fall 1939), Shokaku (Spring 1941) and Zuikaku (Summer 1941) (one fast carrier for each launching);
B. The laying down of any other Japanese fast carrier (one fast carrier for each Japanese fast carrier placed on the Japanese Naval Construction Chart).
27.733 EUROPEAN SCENARIOS: In a European scenario, the U.S. may begin the construction of one American fast carrier of any type for each fast carrier laid down by the Axis (one fast carrier for each German or Italian fast carrier placed on the German or Italian Naval Construction Charts).
27.74 SHIPYARD CAPACITY:
27.741 The total shipyard capacity for each location capable of building destroyers, CVEs, cruisers and named ships or repairing cruisers and named ships is twice the shipbuilding rate for that location. The number of destroyers, CVEs, cruiser and named ship counters on the Naval Construction Chart at any moment for each shipbuilding location may not exceed the shipyard capacity for that location. New ships may not be laid down, and repairs may not be started of damaged ships, in excess of this limit.
27.742 When the completion of naval construction or repairs results in the transfer of a ship from a Naval Construction Chart to the board, the construction of a new ship or repair of a damaged ship may be started in the same unit construction phase.
27.743 AMERICAN PREWAR SHIPYARD CAPACITY: Prior to American entry into the war, the American shipyard capacity in each U.S. box is ten, unless the American shipbuilding rate for that U.S. box is more than five, to reflect the availability of shipyards, even though the tension effects on domestic politics govern mobilization and the American shipbuilding rate.

27.8 INVERSION OF NEWLY CONSTRUCTED AIR AND NAVAL UNITS:
27.81 AIR AND NAVAL UNITS INVERTED WHEN CONSTRUCTED: All air and naval units are inverted when they are constructed or repaired.
27.82 EFFECT OF REDEPLOYMENT:
A. AIR: Newly constructed air units may be uninverted at the end of the player turn in which they are constructed if the air oil effect has been offset (33.9), unless they are redeployed to a new base during the redeployment phase, in which case they remain inverted through the following opposing player turn.
B. NAVAL: Newly constructed or repaired naval units may be uninverted at the end of the player turn in which they are launched if the naval oil effect has been offset (33.9), unless they are NRed to a new base during the redeployment phase, in which case they remain inverted through the following opposing player turn.

27.9 CONSTRUCTION OF SW UNITS:
27.91 TIMING: SW units may be constructed as follows:
A. INTERCEPTORS AND STRATEGIC BOMBERS: Newly produced interceptors and strategic bombers enter the owning major power's force pool at the end of the research phase and may be constructed immediately, prior to the resolution of SW during both the Axis and Allied player turns. When newly produced interceptors or strategic bombers are constructed in this manner:
B. SUBMARINES, ASW AND TRANSPORTS: Submarines, ASW and transports may only be built during the unit construction phase. Submarines redeployed on the mapboard in the player turn of construction remain inverted in the same manner as naval units (28.81).
27.92 PLACEMENT OF AIR UNITS: Newly constructed strategic bombers and interceptors are placed as follows:
A. GERMANY: In the Atlantic SW box, on any front.
B. JAPAN: In the Pacific SW box, on any front.
C. BRITAIN: In the Atlantic SW box, on any front.
D. U.S.: In either the Atlantic or Pacific SW box, on any front, once the U.S. is at war in the applicable theater. Newly constructed American strategic bombers and interceptors are placed in the U.S. box for a theater in which the U.S. is not at war.
E. RUSSIA: In either the Atlantic or Pacific SW box, on the eastern or Asian fronts.
27.93 PLACEMENT OF NAVAL UNITS: Newly constructed submarines, ASW and transports are placed as follows:
A. GERMANY: In any port in Germany (submarines only).
B. ITALY: In any port in Italy or Sicily (submarines only).
C. JAPAN: In any port in Japan.
D. BRITAIN: In any port in Britain or Ulster.
E. CANADA: In Canada.
F. U.S.: In either the Atlantic or Pacific U.S. box.
27.94 TRANSFER OF NAVAL UNITS TO AN SW BOX: After construction, submarines, ASW and transports may be redeployed to an SW box as follows:
A. ATLANTIC SW BOX: Submarines, ASW and transports built in Europe or the Atlantic U.S. box may redeploy to the Atlantic SW box.
B. PACIFIC SW BOX: Submarines, ASW and transports built in Japan or the Pacific U.S. box may redeploy to the Pacific SW box.
C. INDIAN OCEAN SW BOX: Japanese submarines built in Japan may redeploy to the Indian Ocean SW box.