Yes basically the idea is this:
we combine Italy for the axis with a lend lease for the Allies.
Germany loses southern europe, lybia, and the balkans=10 IPC and all the units that start in this these territories.
To compensate germany who was at 40 IPC … Germany itself ( the territory) is increased by 10 IPC so now you have the axis with a net 10 increase…
to offset this against the allies… The allies ( actually USA) gets 10 more IPC per turn and it must go as aid to either UK or USSR. The USA player decides in advance each turn how much he will loan to each nation. The money is transported by transport at the rate that would be equal to what a transport can carry… thus the amount to loan would be from 3 to 8 IPC ( 2 infantry, one tank-one infantry, one artillery one infantry)
Lastly, Italy plays concurrent with the German player.
We have not worked out Victory conditions for an individual Italyian victory… but soon.