t LETTERHEAD OF COLT*S PATENT HARTFORD, FIVE ARMS COR! OP IOUR February 7, re We Je Me CO. 1927. Ae Browning, Mei, @ Browning Coe, Utahs Ogden, Dear MPG. “re Brownings Referring to your letter of January 21, te Pabrique Nationale Company have eabled, recommonding a decision now regerding royalties involved in the event of their engaging upon the manufacture @f rifles. We are unable to state whether they have in hand a prospedtive mrket which will necessitate firm quotations or whether they are compiling facets and figures that wi}l enable them to act speedily if oceasion Under tho cilroumstances, a definite proposal on the subjest dein’ account on rifies they would requires. it is quite proper that we should make of reyalty to be paid for your and our mamufacture. thom : The proposal mde originally was for a joint royalty of $50.00 to be shared equally between your Company and our own. Knowing what the competitive conditions «re in ERPOPO » all of which we believe you fully understand through reports from Mrs Val Browning and the late Mre J, ie Browning, wo feel that wo are all agreed that royalties, profits and all expenses mist be reduced to the lowest minimum possible if FP, %, is to be in a position to competitively re Jo ‘le Browning at one time onter the expressed market for automatic mehine rifles. the suggestion thet a emall loaf was vory much better than no loaf at all and, to you ané us from the European mrket during be considered as cream or clover. Wath these drastic out in the thoughts amount in mind, of royalty in fact, any returns coming times like the present, could we are to be paid presuming by Fe to suggest Ne for you and a use it is the Judgneet of our Myre Nichole, who as you know has spent much time with P, Ye during the last year or two, aleo investigating Continental Bupepean markets Jointly with them that the traffic will not »-ear a gross royalty exceeding 5% of the net sales price, which amount however should be safeguarded with the stipulation that the net amount of royalty per rifle shail not at any time be less than $10.00. ‘This would insure for division equally between your Company and our Company e minimum of $10.00 and probably @ groater amount in the event of sales of amall lots. You know there is little probability of doing any important amount of business on the Suropean continent with rifles made in the United Stetes at presont manufacturing costes Therefore, is it not better for all of us to help FP, N, influence business which we can share in at least modestly? Tnasmuch as we want to cable decision to PF, ,, we should very much appreciate an early reply. I¢ you can approve our recommendatim, a telegram civing approval would help. Yours vory truly, COLT¢S PATENT FIRE ARMS MG. ©. (SIGHED) s. M.@Ton