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release to all National Service men called up after 1st January, 1947.

This sum, will not, of course, cover the full cost of a civilian outfit and we shall probably be urged to increase it. We shall have to make it plain that the sum is intended to be no more than a 'grant in aid' and, on the arguments set out in paragraph 4, maintain that the claims of the post-1947 National Service men in this matter cannot reasonably be equated with those of men called up during the war. We think we can hold this position.

g.

The proposed concession would, it is true, involve a heavy and continuing charge to Service Votes. The cost in the next financial year would, indeed be over £Ml. The cost in subsequent years would be lower.

The views of the Chancellor of the Exchequer

10. The Chancellor the Exchequer is very dubious about the merits of this proposal. In his view it is questionable whether in the main these men will be unable to make use of their civilian clothing on their return to civil life. He thinks it is also problematical whether, once the Government have accepted the principle of providing National Service men with civilian clothing on discharge, a grant of £5 for this purpose would be accepted as sufficient. There might well be demands for the grant to be increased to £15 or even £20. would bring the total cost up to £3M or £AM a year. The Chancellor points out also that the sum of £760M allocated for defence for the year 1949/50 is already a very large slice out of the national income. He is strongly opposed to any addition to this total sum in respect of the cost of a civilian clothing provision for National Service men.

therefore, the Cabinet decide to approve my

This

If, proposal in principle he considers that it should be strictly conditional upon the cost being met from

within the provision already made in 1949/50 Estimates, i.e. by a corresponding reduction in the cost of some other projected service.

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