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negotiations at once and to press them as matters of urgency, in order to give effect to the Govern ment's intention that all practicable economies should be put into effect as early as possible.

(ii) It should not be assumed that the proposals made by Departments necessarily represent, in every instance, the limit to which they can go in curtailment of services and in administrative economies. All are subject to further scrutiny by the Treasury, under the direction of the Chancellor of the Exchequer. While Departments should act now on the proposals already made, they should be ready to discuss with the Treasury any steps that can be taken to modify or add to these proposals in order to increase the savings, present and prospec tive, that may be achieved.

4. The possibilities will naturally vary between Departments, according to the nature of the proposals made by each. Detailed action will be taken by the Treasury with each Department, on the basis of the facts and figures furnished by Departments in response to my memorandum of 4th August.

5. Separate arrangements are being made with the Ministers concerned for carrying out the measures in the economy programme which were not proposed under paragraph 3 of my memorandum of 4th August, but which follow from the major decisions of Government policy taken by the Cabinet.

10 Downing Street, S. W. 1,

26th October, 1949.

C. R. A.