The situation of china clay industry in the South-West England immediately after the World War II is illustrated based on three official reports as a case of the Labour Government’s supply-side policy to a small but special industry. The short-term remedy measures were partly executed by the government, but the long-term policy for improving productivity were virtually achieved by one dominant company. The priority appears to have been given to international competitiveness rather than to cautiousness against the harm of monopolistic power.