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DISCUSSION: Dr. Heinz Hartmann began the discussion by recalling that Freud hinted at the similarity between dream and psychosis, and agreed that a study of their differences is very appropriate. Dr. Katan's effort to understand psychosis from early development is a development of Freud's wish to understand early development from psychosis. The destination of the energy withdrawn in dreams is a puzzle. If it is withdrawn from all systems, where does it go, in view of the constant sum total of mental energy? Is there a theoretical third form of energy, or is the function itself cathected? When we speak of the ego 'trying', 'using', etc., would it not perhaps be helpful to identify the specific function involved? Dr. Katan's concept of the distinction between primary and secondary projections and introjections has been made clearer here, and may find wider uses; it is significant to know whether a process occurs before or after differentiation. The normal withdrawal in dreams can be subsumed under the well-known 'regression in the service of the ego'. The distinction drawn between reality testing and contact with reality is useful; the former may be impaired in