Pages 113 and 154 disagree about whether a declaration may appear in the body of a LABELS (or FLET or MACROLET). These forms do not bind variables, but I assume that page 154 is correct. Example: (LABELS ((FOO (X Y) (IF X (LIST X Y) Y))) (DECLARE (INLINE FOO)) (COND ((... (FOO 1 2) ...))))