Part I of this paper (Lg. 46.850–98, 1970) considered the relevance of coördinate conjoined structures in resolving the balance of power between the transformational component and the base component of a generative grammar; it presented and attempted to justify the PSR grammar of coördinate conjunction, each other constructions, and sentences incorporating respectively. Part II examines the interaction of the lexicon, the phrase-structure component, and the transformational component of a transformational generative grammar of the type presented in Part I. Gleitman's grammar, Lakoff & Peters' Conjunct Movement Hypothesis, and the PSR-Lexicalist Hypothesis are compared; the Lexical Insertion Rule, strict subcategorization features, selection restrictions, rule schema, and category labels are examined. Chomsky's bar notation is used to express certain generalizations that obtain among the categories.