e@ « a August ARMY SERVICE FORCES OPRINGFIELD ORDNANCE 95 State Street Springfield 3, 30, 1944 : DISTRICT Mass. Attention: Brig. Gen. G.H. Re: No. 072/104, Drewry, U.S.A. Gentlemens S.0.D. Machine Gun Small Arms Branch, Section. With reference to your letter of 24 August 1944, subject: the Colt's Patent Fire Arms Mig. Company to J.M. and M.S. The Colt Company desires to object to the proposed action ing reasons: "Royalty paid by Browning Company", due to the follow-— . Colt's is obligated by Contracts to make certain payments to J.M. & M.S. Browning Company on account of all sales to the Government of Caliber .30 ana Caliber .50 Browning Machine Guns and also of Browning Automatic Pistols. The required Caliber .50 payments Gun and are $5.00 $.25 for for each each Caliber Automatic for Spare Parts. According to the language be continued notwithstanding the expiration In position view to of the agree, contractual either for .30 Gun, Pistol, of of but $10.00 there the contracts, patents. stated above, we are future retroactively, to the or each no payments payments provisions the for are not are now to in discontinu- ance of the Browning payments nor to the elimination of such payments as elements of our costs. For guns and pistols delivered since 10 May 1944, some of the amounts payable to Browning have already been paid or have at least been accrued on our records. 2 several weeks ago, recognizing the changed Situation and anticipating a possible request such as you have now presented, we suggested to the Browning Company that a conference be had to consider the elimination or radical reduction of these contractual payments. Due to other engagements of the parties the conference september. could We not therefore be immediately respectfully held ask but that it the is now scheduled proposal in for your 12 letter be held in abeyance until the matter can be discussed in detail with Browning representatives at the. time stated. We will write..you further and wore definitely after the conference. | In the meantime, we invite your attention to the fact that since 10 May we have reduced the price of GCaliber .50 Guns by $10.00 each and have reduced the price of Caliber .45 Pistolsby $2.00 each. These reductions equal or exceed the Browning payments, but in view of the Browning contracts we were not able to eliminate these payments as actual: elements of our costs. You can be assured however that if and when we can effect ing payments, such reductions will be reflected tions additional to those already made. A careful by Browning justified, investigation upon for which they as to payment hawe made services of no and/or royalty such any in reduction valuable should be contribution Yours very COLT'S PATENT in corresponding the Brown- price reduc- considerations equitably since made prior to rendered cannot World truly, FIRE ARMS MFG. President COMPANY be War Two.