The Union Government’s latest assessment of the situation in Andhra Pradesh following the Telengana agitation is that the worst is over and that there are enough indications to show that the movement for a separate State is losing momentum slowly but steadily. The general expectation is that if the agitation continues for some more time, it would even become counter-productive. Already, some members of Parliament coming from Telengana have expressed surprise and reacted sharply to the reported demand of Dr. Chenna Reddi that there should be a referendum immediately to ascertain the views of the people of Telengana on the demand for a separate State. At least one M.P., said in an interview that it was a strange demand and if it was conceded, it was bound to have significant political repercussions in the rest of the country. Enquiries show that nobody here has taken this demand seriously and it is regarded as one made in utter desperation at a time when the movement itself is losing ground. The Centre is, of course, closely watching the situation but it is satisfied that so far the agitation is confined only to a few urban areas. The various expert committees set up under the eight-point plan presented by the Prime Minister as a solution to the Telengana tangle, are going about their work seriously and the general expectation is that the two committees — one headed by Mr. K. N. Wanchoo on constitutional remedies and the other headed by Mr. Justice V. Bhargava to decide the surpluses allocable to Telengana are expected to submit their reports in another two weeks. The Services Committee presided over by the UPSC Chairman is also submitting its report soon. In view of this the Prime Minister would like to await the outcome of their recommendations before taking the next step.