I shall be more than satisfied if I succeed in giving him a clear insight into the manner in which the delicate task of making State interference with the business of the people not only harmless but beneficial has been set about.

It is obvious that the fulfilment of this object must depend upon the soundness of the economic policy pursued, and upon the establishment and maintenance of mutual confidence between the central authority and the popular representative bodies through which the people utilise the new facilities afforded by the State.
I think the best way of giving the information which is required for an understanding of our somewhat complicated scheme for agricultural and industrial development under democratic control is first to explain the line of demarcation which we have drawn between the respective functions of the Department and the people's committees throughout the country; and then I must give a rapid description of some of the most important features of the Department's policy and programme.

I shall add a sufficiency of detail from the actual work accomplished in these organising and experimental years, to illustrate both the difficulties which are incidental to such a policy, and the manner in which these difficulties may be surmounted.
When it became manifest that both the country and the Department were anxious to drive ahead, the first thing to do was to lay down a _modus operandi_ which would assign to the local and central bodies their proper shares in the work and responsibilities and secure some degree of order and uniformity in administration.

This was quickly done, and the plan adopted works smoothly.

The Department gives the local committee general information as to the kind of purpose to which it can legally and properly apply the funds jointly contributed from the rates and the central exchequer.