I’m new to the game and at the moment, the manual seems like it can be interpreted any which way.

Scenario:

Great Britain has lost All of it’s Naval fleet. However, GB still possesses The actual island eg., tanks, infantry.

Germany has inserted 1 submarine into the sea-zone surrounding Great Britain and leaves it there.

Does this mean Great Britain is barred from producing any Naval forces around Great Britain?

Help would be appreciated.