4 - for a bargain. Again, the 60's report had a perfectly valid conclusion. There was more to be done overseas, but this was the wrong kind of approach. Let me digress for some history. We've gone through several approaches to our international business. IGE at the beginning was almost a separate company. Swope had many, many offshore acquisitions which he cut back or abandoned in the late 30's because of antitrust implications. The business almost a compartment all to itself. In late 50's and early 60's began to re-look what we could do. Recognize that we have three kinds of offshore activities: - wholly-owned subsidiaries - subsidiaries where we have a majority or minority interest - export activity (At this point an explanation of the four area divisions within the group. New dimension added whereby domestic operations will take cognizance where they have most to contribute and where international will take cognizance where overseas business environment expertise is needed. There will be combinations. Description here of internal joint ventures, using service shop business as example. Case of lamp operation in Brazil, clearly dependent on Cleveland and therefore attached to Nela. Obversely Manila lamp plant where Nela couldn't make it work and it was given to International.) We've arrived. At this point we're far more flexible. Burlingame will give you more on this. It's important to note that we are getting better people in the international business and making good use of foreign nationals. Q. What effects will the Utah merger have? A. It will just make it larger. Aside from making GE the largest taxpayer in Australia, I don't think it impacts on the total international scene. Specifically, it provides us with closer ties to the Japanese steel industry... they might become more interested in our steel mill drives, etc. Q. Can that be translated into a specific purchase of capital equipment? A. It could influence purchasing decisions. It improves our position with Toshiba and Hitachi from the licensing point of view. They realize the worth of the association. (More discussion on how Utah might bring us closer to Japanese customers. Also discussion of the international surge in 1976, with high order rate of 1975 pointed out...fact that we may still be on the crest of an export wave.)