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THE WESTERN HIGHEANDS STEA MER SERVICES.

(Previous

Reference: Cabinet 39 (28). Con- clusion 18.)

11.The Cabinet had before them Memoranda by the Secretary of State for Scotland (Paper C.P.- 259 (28)) and by the Postmaster-General Paper C.P.-263 (28)) in regard to the recommendations of the Select Committee House of Commons Paper

No.117) on the subject of the Western Highlands

Steamer Services.

The Secretary of State for Scotland stated

in his Memorandum that, after preliminary confer-

ences with the representatives of the L.M.S. and

Coast Lines and with the Treasury and other

Departments concemed, he was disposed to prefer

the first scheme proposed by the Select Committee.

which provided for an annual subsidy of £50,000

for ten years. He asked the Cabinet's general

authority, however, to make the best bargain he

could within the commitments of one or other of

the schemes, subject to consultation with the

Treasury.

Sir John Gilmour also asked in his

Memorandum for authority for the introduction next Session of a Bill to confer the necessary powers

and to give the necessary undertaking to indemnify the new Company for any expenditure incurred in

anticipation of the scheme going through. It was

also mentioned in the Memorandum that the Minister

of Transport wishes to make it clear that a Bill

of this kind, enabling a Department to confer

powers normally conferred only by Parliament, Would

be an innovation and may arouse criticism though

he did not dissent from the proposal, which

appeared to be the only alternative. Finally, the Secretary of State for Scotland asked for a free

hand to decide whether there should be Government

Directors on the Board of the new Company.

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