3. The demand for coal for war a derived demand through gas, electricity, chemicals. The direct demand from the engineering and allied industries for heating and driving purposes is relatively unimportant in the total coal picture. Changes in programme which involve the substitution of one product for another will not change the total demand for gas and electricity to any significant extent. The main possibility of change lies in changed demands for steel and chemicals. 4. As the programmes develop, the proportion of resources devoted to naval and merchant shipbuilding and to aircraft is likely to rise.