A system of rules for transforming programs is described, with the programs in the form of recursion equations An initially very simple, lucid. and hopefully correct program IS transformed into a more efficient one by altering the recursion structure Illustrative examples of program transformations are given, and a tentative implementation !s described Alternative structures for programs are shown, and a possible initial phase for an automatic or semiautomatic program manipulation system is lndmated KEY WORDS AND PHRASES program transformation, program mampulatlon, optimization, recursion CR CATEGORIES' 3 69, 4 12, 4 22, 5 24, 5 25 1.