18 AUGUST 1967, Page 3

The Chancellor to the Prime Minister

Dear Harold, Thank you for your letter. I now see things in a slightly different light. However, I would like to suggest a modification of one of your ideas. How would you like it if I gave sole credit for our economic performance to you? This, I am sure, would go down like a bomb

with the party conterence. I hope to discuss this in more detail later.

I am' now back at No 11, and feel I ought Id tell you that the dog his turned up next door. here is, however no sign either of Tommy Balogh or of George Wigg. Do you suppdse 'hat any harm has befallen them?

Alice Bacon is also loitering around the Home Office in a suspicious manner. Do you think she ought to be told?

Audrey sends her love.

Yours, Jim.