It is shown that there is evidence favouring molecular clouds being sources of γ-rays, the fluxes being consistent with expectation for ambient cosmic rays interacting with the gas in the clouds for the clouds considered. An estimate is made of the fraction of the apparently diffuse γ-ray flux which comes from cosmic ray interactions in the I.S.M. as distinct from unresolved discrete sources. Finally, an examination is made of the possibility of gradients of cosmic ray intensity in the Galaxy.
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