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Now it is hereby agreed as follows : 1. The Board shall from time to time make recommendations to the Government and to the National Body on the following matters relating to their external telecommunications systems {a) The formulation and execution of the joint telecommunication policy of the Partner Governments, including the fixing of rates (terminal, transit and parcours proportions) ; (b) Co-ordination of the development of the cable and wireless systems of the British Commonwealth and Empire ; (c) Extensions to and alterations of any portion of the telecommunication systems of the National Body which does, or might, form part of the Empire network ; (,d) Co-ordination with the appropriate authorities on telecommunication matters affecting the defence of the British Commonwealth and Empire or any part thereof ; (e) Co-ordination of research in telecommunication matters to be conducted by the Board, the National Body and other National Bodies operating in the territories of the other Partner Governments ; (/) The exchange of personnel between the Board, the National Body and other National Bodies operating in the territories of the other Partner Governments ; (g) Any other telecommunication matter which may be referred to the Board by the Government or the National Body. 2. The Board shall, at the request of the Government or the National Body, conduct negotiations with foreign telecommunication interests on their behalf. 3. The Government and the National Body agree to use the Board as a means of consultation on all or any of the matters mentioned in the foregoing clauses and on any other matters substantially affecting the external telecommunication services of the Partner Governments and will give due consideration to the recommendations and advice given by the Board. 4. (1) Before making any extension or alteration to any portion of its telecommunications system which does, or might, form part of the Commonwealth and Empire network the National Body will furnish to the Board — (a) Particulars (together with plans where appropriate) of the extensions or alterations proposed, and (b) An estimate of the expenditure involved. (2) The Board will forthwith consider any such particulars and estimates and will make recommendations thereon and the National Body will give due consideration to the recommendations of the Board. (3) If schemes are submitted which involve expenditure by two or more Partner Governments the Board will make recommendations as to the proportions in which the expenditure is to be borne by the Partner Governments concerned or the National Bodies operating in their territories. 5. (1) The National Body will furnish to the Board a budget of its expenditure in respect of each financial year (including its-programme of capital expenditure) on any portion of its telecommunication system which does, or might, form part of the Empire network. (2) The Board will forward for the consideration of the National Body such comments as they think fit with respect to the budget so furnished.