formed in Bermuda.

American Russian Cosmos Ltd. (ARC) has been set up to create, operate and market a satellite communications system for businesses and governments.

It is a joint venture between American-owned, Bermuda-based firm Friends Trading Co. and a Russian business association called Inform-Cosmos.

The company's Bermuda incorporation was handled by local law firm Hall, Duncan and Trott.

Partner Mr. Perry Trott said: "We are delighted to have been involved with such an interesting and important project.'' A spokesman for ARC said: "In concert with the dramatic changes caused by the restructuring of the USSR into the Commonwealth of Independent States, so also have great opportunities become available.

"In the opinion of ARC Ltd., Russia's progress will be dependent upon reliable, price effective communications with the West (and the East).

"ARC, through its American and Russian personnel and assets, is uniquely positioned to provide those services now and, to a greater degree, on an ongoing basis in a very profitable mode for its owners.'' ARC is in the process of organising Russian and American companies to carry out its business in their respective countries.

These two subsidiary companies will be wholly-owned by ARC. All contracts, billings and collections will be carried out through the parent corporation in Bermuda.

The parent will be the recipient of all revenues and the dispersing agent for all expenses of the company.

ARC's system is designed to initially provide telephone, facsimile, data transmission and telex services.

Later, it plans to add E-Mail, a digital phone service, video tele conferencing, commercial data bases (e.g. Russian Stock Exchange), advanced facsimile services and multiple copy delivery at end source.

ARC's spokesman said: "The company recognises an overwhelming demand in the marketplace for high quality, reasonably priced communications capabilities.

"One immediate area under development is the installation of high speed, high resolution facsimile transmission capability coupled with high speed multiple copy xerox receivers.

"This service will provide those users such as accounting firms, law firms and governmental agencies the capability to transmit lengthy documentation at high speed in a confidential mode.'' Mr. Perry Trott.