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PEAM WIRELESS AND CABLE COMPANTES.

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Reference: Cabinet 29 (28), Con- clusion 6.)

4. The Cabinet had before them the Secret Report

of the Imperial Wireless and Cable Conference

(Paper C.P.-216 (28)) containing recommendations

the salient features of which are as follows:-

The formation of a Merger Company to acquire, as from 1st April, 1928, all the Ordinary Shares of the Eastern, Eastern Extension and Western Tele- graph Companies, and all the Ordinary and Preference Shares and Debentures (if any) of the Marconi Wireless Telegraph Company:

The formation of a Communications Company which will hold all the Communication Assets of the Cable and Marconi Companies, except in so far as these belong to the Sub- sidiary Companies in which the Cable and Marconi Companies' holding is less than 100 per cent, the Communications Company to acquire the holdings of the Cable and Marconi. Companies in those Communications Companies in which the Cable and Marconi Companies' holding is less than 100 per cent:

The Communications Company to acquire also the Government Cables and to hold the lease of the Post Office Beam stations the capital of the Communi- cations Company not to exceed at its inception £30,000,000:

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The Communications Company to take over, as from the 1st April, 1928. the Pacific Cable Board's cables, the West Indian and Wireless System worked by the Pacific Cable Board, the Imperial Atlantic Cables and the lease of the Post Office Beam services on terms details of which are contained in the Report:

The Board of Directors of the Merger Company, the Communications Company, theCable and Marconi Companies to be identical. Two of the Directors, one of hom shall be Chairman of the Communications Company, to be persons approved by His Majesty's Government on the suggestion of the Cable Com- panies:

A standard net reveme of £1,865,000 (exclusive of non-telegraphic investment revenue) from the Communications Company services to be fixed to the purposes of the Company; all net Pererne in excess of that sum to go as to 50 per cent. to the Company,

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