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The manual very plainly states that a unit that cannot trace a line of supply to a friendly port or city, will trace one to a naval unit on the coast.

My question is, does this apply to invasion supply as well?

If it does, it doesn't appear to be working, or I'm missing something.

Infantry, Cav and Artillery units in a foreign country are not being supplied by naval ships on the coast even tho a very clear line of unbroken controlled hexes lead all the way back to the coast and ultimately the naval units themselves.

Is this a bug or did the manual tell an untruth?

I was told there is no naval supply in Napolean, the game engine was used for a WWII era game so when they wrote up the manual for this game they thought it was still active.

Is this actually the case?
 
Is there supposed to be 'minimal' Naval Supply or no?
 
Thanks!

No naval supply since this would be too easy. In CNAW it take 3 turns for units to run out of supply so by then you should have captured a City. In CEAW supply ran out instantly so for that game it was better to have a minimum supply if havig boats nearby