Met Nichols at Hotel Savoy, London May 7, 19350. Sone Nichols Armstrong us = copy to of Later a SST: AU L A ORTRT OW 0 C FN } VICI erates a § ae ATARI ase a Pg We Li he nk: ONG & Aa seemed confident that cet hauanpabe sign the which is agreement enclosed. substantially as submitted he stated that Vickers could Armstrong had to progressed so far with their own 40 m/m gun that they would not sera xp it, and that necessitated modification of clause 7 which denies them the right to offer an arm competitive in type with our 37 m/m It was Suggested as compromise that agreement bind them to offer our m/m alone with higher 37 than their their 40 forty.in m/m, any Nichols new markets, thought new and at markets price would no be a far as we could go with the restrictions, for the reason that the British Govrt had shown some interest in the 40 m/m and we could not ask Vickers Armstrong to give up chances of business which had already been developed, The question of minimum price control vested in Colt's in non exclusive terr itory was discussed. Our conclusions were that such control limited to non exelusive territory would not be dangerous tec Brownings interest. Nichols admitted that Colt's might never make the 37 m/m gun, that manufacture by Colt's us sign the could see was entirely conting sent, as far as could be seen now, upon an order from U.S. which would jus tify & plant. It appeared, therefore, that there is a strong proba bility that the manufacture will be limited to Vickers Armstrong, in which event Colt's would have no incentive te exercise price control; themselves not being competitors. It seemed a small matter anyhow, so long as Vickers Armstrong were given a free hand in exclusive territory which included most of the markets of promise. ALSO, Browning as joint sub-licensor with Colt's will have a say in the matter. Nichols at first seemed desirous of next told having agreement sent to 5 by Spees, copy of which is enclosed, which would sive Colt unrestrict power to make sublicenses, but stated that he moula be ¥ Ling to co it any way we suggested, We thought it reason should why not a letter, to show sotiate; over that night the right of be exercised copy enclosed, to Vickers and Nichols and which Armstrone made as no 8) ten days or so, when he hopes to the signing point, and it of the final draft, and that satisfied us, sign “ite Armstrong day sublicensine by ~rowning. we jointly we had figured him would vidence of his ection. He is 1 “have wa: we ie reported that V-A claim to | Thitworth 30. caliber plant, we with. the prepared be emple authority going no Colt Co. the draft to of for Nichols to ne- Brussels in the matter here concluded up that he should bring a copy meet him there and, if it have serapped tlhethe entire and to have bui it @ new one