CONFIDENTIAL

But a

concerned, I myself certainly see them as the minimum we can get away with. 'first step'? This, I think, is where we might have to be more cautious, at least in the short-term. The question and answer brief I am hoping to send across next week on the economic/financial implications of raising the public spending ratio may help in assessing the sheer scale of what is involved.

20 May 1976

AA

GH Dart

Economists Dept G 71B/G

C

Zol G.

Iße), 41

CONFIDENTIAL

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