4. Owing to the diversity of allocation systems, it is not possible to lay down any precise method for carrying this policy into effect and Production Departments must, it seems to me, be left discretion to apply it in what they consider the most appropriate way. I suggest, however, that the action taken might be along the following lines:— (a) Production Departments should see that a special reserve of materials is kept available to supplement the quotas of firms in umemployment areas which, if they had more material, would be able to absorb more labour.