English Translation

8V - 3 - You agreed with me, Mr Staatsekre- tür, in my presentation, that a supervision by Mr. Schowanek can only be carried out if corresponding provisions are included in the social contract. According to the previous social contract, every decision of the Generel meeting is subject to a qualified majority. So it is practical that Mr Schowanek, with his 5 %, if the Czech partners do not want to do so, cannot determine anything. My proposal, which you approved on the occasion of my proposal, goes to the point that, unless the law prescribes otherwise, the single majority is sufficient for each resolution of the General Assembly. Furthermore, it belongs to the actual supervising authority that no subscription of communications or orders of the company may be made without the co-signation of Mr. Schowanek or his agent. According to the current provisions of the Company Agreement, the Czech managing directors can draw alone without the participation of Mrs. Schovanek. If, therefore, Mr Schowanek's supervision, as recognised by the Czech partners, is not to be an empty phrase, then it is essential that these two points be taken into account in the recasting of the social contract. Since the Czech partners have already agreed that the interpretation of the term "supervision" is carried out by the clerk of the Reichsprotektor -4-