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THE WESTERN HIGHLANDS STEAMER

SERVICES.

18. The Secretary of State for Scotland brought

to the notice of the Cabinet, as a matter of

urgency, a Memorandum (Paper C.P.-241 (28)) in

regard to the Western Highlands Steamer Services.

This Memorandum dealt with a scheme which had

been laid before the Select Committee of the

House of Commons on behalf of the L.M.S. Railway

Company and Coast Lines, Limited, under which

those Companies would jointly undertake the

services hitherto performed by contract with the

Government by Messrs David MacBrayne, Limited.

Particulars were given both of the new proposal

and of the MacBrayne Agreement. The proposal of

the L.M.S. Railway Company, however, was subject

to a condition that they should be absolved of

all cost of obtaining any powers necessary to

enable them to co-operate in the undertaking,

and as the Select Committee's further proceedings

would depend on the decision of this point the

Secretary of State asked, as a matter of urgency,

whether his colleagues would authorise him to say

that the Companies would be absolved of the costs

of obtaining powers if a scheme involving legisla-

tion should ultimately be agreed upon.

The Secretary of State for Scotland informed

the Cabinet that he could not give an exact

estimate of the amount of the costs involved,

but from such enquiry as he had been able to make

it appeared to lie between £500 and £2,000,

according to the extent of the opposition.

The Cabinet approved the proposal of the Secretary of State for Scotland, provided that

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