At a Special Board Meeting on 30th August 1997 a report was heard from a delegation who had met with Mike Hart of the Ffestiniog Railway. The meeting heard a report on the discussions that took place. It was agreed to hold an Extraordinary General Meeting as soon as reasonably practicable to seek approval for the main points of a settlement with the FR prior to the Public Inquiry into their application for Transport and Works Act Order.

A resolution was passed as follows:

  • That the Board agrees in principle to the reports presented of a suggested agreement with the FR, which contains the following principles:
    • 1.1 That the FR allows the construction of the Railway to Pont Croesor by the WHR Ltd.
    • 1.2 That the FR grants Running Powers over the whole route to WHR Ltd.
    • 1.3 That the Welsh Highland Railway Ltd. supports the FR's T.W.A. Order application.
    • 1.4 That the Welsh Highland Railway Ltd. allows the FR use of the Welsh Highland Station at Porthmadog.
    • 1.5 That the name Welsh Highland Railway is licensed to the FR
    • 1.6 That a joint management Committee be established between the two organisations.
    • 1.7 That the above points be subject to a legally binding contract.
  • That an E.G.M. be held to discuss the matters with members.
  • That a further meeting should take place between FR and W.H.R. reporting back to Board before the E.G.M. on some issues raised.
  • That the points of principle contained in 1 above be commended to the membership as a settlement with the FR