COLT'S PATENT FIRE Herttord, ARMS MANUFACTURING Connecticut, Mareh 1, CO, U.S.A. 1940. Mir, Wal Browning, President, J.oM. & M.S. Browning Company, First Security Bank Building, Ogden, Dear Utah. Val: A rather the furnishing the British the Sale of unusual situation 1OOO water-cooled been in has arisen Caliber with 13.2 respect mm. guns to for Navy. We have of a substantial negotiation number of with our the British Caliber .50 Navy guns; for and we learned only very recently that. Fabrique Nationale had at the same time been negotiating with the Navy for the sale of their 13.2 mm. guns. AS you know, F.N. has no license to sell or offer machine guns in Great Britain entirely unjustified us or even consulted and their as they us. negotiation had not for obtained this any business was permission from A Tew days ago they informed us that they had actually quoted prices for 1000 water-cooled guns, and it therefore appeared that the situation had reached a point where we were quite helpless and could not do otherwise than permit F.N. to accept this business We decided to give F.N. the necessary authorization, subject, however, to the definite condition that, in addition to the regular royalty of $100 per gun, they pay us an additional $100 per gun which is to be regarded as partial sompensation to us for their unauthorized entry into our exclusive territory. .N. will get the formed as to that We you may have accepted business this, are presenting fully this condition althoughwe understand all of the have not the facts and yet situation we been to you in which presume they definitely in- promptly so we been have placed. the royalty of $100 per gun to be paid by #.N. will of course be divided with you in the usual manner. ‘the additional $100 however, is not royalty and shouldbe retained by us, as it isa payment in the nature of liquidated damages to partially compensate us for we had Manner loss of the manufacturing been permitted to take Of handling the matter profit this will which we might have business. We trust that be entirely satisfactory had if this to you.